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Federal Land sees high demand for luxury condominiums in PHL

FEDERAL LAND, Inc. is aiming to take advantage of the increasing demand for luxury residential condominiums with its two-tower Grand Hyatt Manila Residences in Taguig City.

A 2019 Branded Residences Report by Knight Frank Global Research showed that the “preferences of the wealthy are diversifying offerings in the market.” It noted there are over 400 branded residences in the world, with 30% found in Asia.

The report attributed the rising interest in branded residences to several factors, such as “developer quality, services, physical amenities, building maintenance and management, and investment yield potential.”

To cater to this demand, the property unit of GT Capital Holdings, Inc. has been building luxury high-rise residences, partnering with internationally known hospitality brands.

Federal Land teamed up with Japanese financial services firm Orix Corp. and Chicago–based multinational hospitality firm, Hyatt Hotel Corp. for the Grand Hyatt Manila Residences, located in North Bonifacio Global City.

The Grand Hyatt condominium and hotel are located within Grand Central Park, Federal Land’s 10-hectare mixed-use development.

“The move to develop condominiums that solely carry the Grand Hyatt brand in Southeast Asia is a response to the next wave of luxury residents, going beyond the amenities and services and extending to 5-star experiences that separate this form of living into a completely new category,” Federal Land said.

Grand Hyatt Manila Residences South Tower, the second tower, offers “hotel-like living expressed in terms of the building’s design that melds style and functionality; spacious units; thoughtful amenities; and resident support such as concierge, housekeeping and security services for utmost comfort and convenience.”

The price of luxury and exclusivity is around P360,000 per square meter for a unit at the South Tower.

“Exclusivity increases as one goes higher — eight units for low zone, four units for mid zone, and two units for high zone. Residents can expect innovative eco-friendly functions and customized furnishings, European no less, within the space,” the company said in a statement.

Homeowners can also enjoy the offerings from the Grand Hyatt Hotel and a Globalist Membership to the World of Hyatt Loyalty Program, which gives the owner special privileges like priority bookings, and reservations to the hotel’s restaurants, such as The Grand Kitchen, The Cellar, The Lobby Lounge, No.8 China House, and The Peak.

Some of its facilities include a glass function room, pool deck and lounge, a teen entertainment zone, and children’s play area.

SSI profit surges 121% on strong 4th quarter sales

SSI GROUP, Inc., Philippine retailer of Gucci, Zara and Gap, reported a 121% surge in net profit to P608.43 million in 2018, fueled by robust fourth-quarter sales.

In a regulatory filing, the leading specialty store retailer said fourth-quarter earnings soared 362% year on year to P240.4 million, while recurring income rose 41% to P292.5 million.

Full-year recurring earnings grew 11% to P725.3 million.

“The Group’s fourth quarter results were driven by resilient mid and high end discretionary spending as well as by a rationalized expense base. While we saw increased macro economic volatility in 2018, the Group continued to leverage on the strength of its brand portfolio and store network.” Anthony T. Huang, SSI Group president, said in a statement.

Net sales increased 9.6% to an all-time high P20.2 billion in 2018, on the back of an 8% rise in fourth-quarter revenues to P6.4 billion.

“SSI continued to post healthy sales growth driven by the strong performances of its luxury and bridge, casual, and fast fashion categories. This increase was achieved despite a 7.1% year-on-year decline in its total selling space and the closure for renovation of several stores at the SM Mall of Asia during the second half of the year,” the company said.

As of end-2018, SSI had 596 stores covering a total gross selling space of approximately 120,305 square meters (sq.m.) located in 90 shopping malls. This is lower than the 638 stores with gross selling space of 129,486 sq.m. that SSI had in 2017.

In the fourth quarter, SSI opened eight stores covering 286 sq.m., and closed 14 stores with 1,885 sq.m.

The specialty retailer said its portfolio had 90 brands as of end-2018, with the acquisition of Shake Shack and Loewe and discontinuation of some brands. In 2017, it had 108 brands.

SSI said its same-store sales growth remained strong, with 11.9% in the fourth quarter and 12% for the full year.

SSI’s brand portfolio includes Gucci, Prada, Kate Spade, Zara, Marks & Spencer, Gap, Lacoste, Banana Republic, Muji, Lush, TWG and SaladStop.

SSI also said it will open the first Shake Shack in the country within the first half of 2019.

After going on international TV, the TNT Boys to tour America and Canada

IN AN EPISODE of The Late Late Show with James Corden, the TNT Boys — 14-year-old Kiefer Sanchez, 12-year-old Francis Concepcion, and 13-year-old Mackie Empuerto — were invited to the show and performed Jennifer Hudson’s “And I Am Telling You I’m Not Going” from the film Dreamgirls. As the boys were performing, pop singer Ariana Grande unexpectedly entered the stage to finish the song with them.

Sa backstage, sabi niya ang galing daw po namin, obsessed daw siya sa amin (She told us we were great and that she was obsessed with us),” Mr. Sanchez recalled, adding that they all got nervous during the performance.

After a sold out concert in November last year, the TNT Boys are set to go on an international concert tour titled TNT Boys Listen: The World Tour this month.

Before becoming the TNT Boys, the three boys were grand finalists as solo contestants in the “Tawag ng Tanghalan Kids” segment of ABS-CBN’s Showtime program. They were officially launched as a trio in 2017 after making an appearance in the show Gandang Gabi Vice, where host and comedian Jose Marie Viceral (Vice Ganda) requested that they sing Beyoncé’s “Listen” which gained an outstanding reception. They went on to perform in the US, UK, and Australia editions of the variety TV series Little Big Shots, as well as participated in The World’s Best, a reality talent show in the US.

For the young performers, the international concert tour is a dream come true.

“We really dreamed of going on a world tour. We’re thankful because it happened,” Mr. Concepcion said in a mixture of English and Filipino at last week’s press conference at ELJ Communications Center in Quezon City.

“It was unexpected that we would have a world tour. It has always been our dream to have a concert abroad.” Mr. Sanchez added.

The concert tour kicks off at Chabot College, Hayward, California on April 23; followed by The Theatre at Ace Hotel, Los Angeles, California on April 25; and at the Edmonton Expo Centre, Alberta, Canada on April 27.

Their special guests include Filipino-American artists such as America’s Got Talent Season 12 first runner-up Angelica Hale, R&B singer Cheesa, and musical director and producer Troy Laureta.

The group is also set to release its first single titled Together We Fly under TNT Records this month.

For information, visit www.thetntboys.com. — Michelle Anne P. Soliman

Jewel Changi Airport to officially open on April 17

JEWEL Changi Airport, a lifestyle complex located at the international gateway, is set to open to the public on April 17.

The 137,000-square meter (sq.m.) complex with a dome-shaped facade is designed by world-renowned architect Moshe Safdie.

“The vision for Jewel Changi Airport is to be a destination where ‘The World meets Singapore, and Singapore meets the World.’ The unique proposition of world-class shopping and dining, seamlessly integrated with lush greenery, fulfils the needs of increasingly discerning Filipino travellers for a meaningful and experiential journey, even for brief layovers,” Hung Jean, Jewel Changi Airport Development CEO, said in a statement.

Jewel will feature new-to-Singapore brands such as Emack & Bolio’s, JW360˚, Lavender, OYSHO, and Pokémon Center Singapore, as well as homegrown brands In Good Company, Supermama and Tiger Street Lab.

Attractions include the 40-meter HSBC Rain Vortex — touted as the world’s tallest indoor waterfall; and the Shisheido Forest Valley. Play attractions such as Manulife Sky Nets, Discovery Maze, hedge maze, and mirror maze will open on June 10.

The first YOTELAIR property in Asia will open at Jewel. The 130 smartly-designed cabins can be booked for a minimum of four hours, ideal for short daytime layovers or overnight stays.

With Jewel, Changi Airport expanded capacity of Terminal 1 by another three million passengers a year, bringing its total capacity to 85 million. Airport facilities such as early check-in counters and kiosks, a baggage storage service and the Changi Lounge can be found at the lifestyle complex.

“We are delighted to see the completion of Changi Airport’s new jewel, which we hope will contribute to many more memorable Changi experiences for our passengers. Jewel Changi Airport is a valuable addition to Singapore’s world-class tourism attractions and aviation facilities. We look forward to welcoming the world to Jewel, whether they are travelling to or through Singapore,” Mr Lee Seow Hiang, chairman of Jewel Changi Airport Development Pte. Ltd., and CEO of Changi Airport Group, said.

FEU, T.I.P. to create joint venture firm

FAR EASTERN University, Inc. (FEU) and Technological Institute of the Philippines (T.I.P.) are forming a new company to run a senior high school that will prepare students for work at industrial parks.

In a disclosure, FEU said its board of trustees approved the proposal to create a new corporation that will be jointly owned by T.I.P. “for the purpose of establishing and operating a school which shall offer, among others, a senior high school program.”

The listed company said the joint venture aims to establish “a work-ready Senior High School to be located within or near Technology Industrial Parks and to serve the personnel needs of Locators.”

With the deal, the FEU said it expects to expand its operations and provide skilled workers for locators of industrial parks.

“The School is targeted to start June 2020 upon approval of regulators, like DepEd (Department of Education), SEC (Securities and Exchange Commission) and others with respect to operational permits,” FEU said.

For its third quarter ending Feb. 28, FEU reported a net loss attributable to the owners of the parent company of P69.62 million versus a profit of P161.7 million a year ago. Nine-month attributable net income dipped 1.2% to P384.63 million. FEU’s fiscal year starts on June 1 and ends on May 31.

The group’s operating income surged to P436.04 million for the nine-month period, from P59.7 million a year ago. Revenues went up 27% to P2.3 billion, with the return of freshman enrollees in tertiary schools.

However, operating expenses jumped 29% to P1.9 billion due to a non-recurring local tax expense worth P209.28 million as well as increased student population and the start of FEU-Alabang’s operations.

“With the improvement in tertiary freshmen enrollment, resulting to a 40,000-first semester student population of the FEU system, completion of various facilities construction and improvements, and a continuous effort to attain operational cost efficiency, the Group is confident that it will maintain steady operations and meet its budget for the year,” the listed company said in its regulatory filing.

Aside from its Manila campus, FEU operates campuses in Diliman, Quezon City; Cavite; and Alabang, Muntinlupa. It also operates Roosevelt College, Inc.

T-bills partially awarded ahead of break

THE GOVERNMENT made a partial award of the Treasury bills it placed on the auction block yesterday, rejecting all bids for the longest tenor, as market participants stayed on the sidelines ahead of the Lenten break.

The Bureau of the Treasury (BTr) borrowed just P7.264 billion out of the P15 billion it intended to raise at its auction on Monday. This, even as the offer was oversubscribed, with total demand reaching P24.784 billion.

Broken down, the Treasury borrowed P4 billion as planned out of P9.587 billion in tenders for the 91-day papers. The tenor’s average yield climbed marginally, inching up 0.2 basis point (bp) to 5.614% from the 5.212% fetched last week.

For the 182-day T-bills, the BTr borrowed P2.76 billion out of the programmed P5 billion even with total bids amounting to P7.819 billion. It fetched an average yield of 5.987%, up 0.5 bp from 5.982% during the previous auction.

The government meanwhile rejected all bids for the 364-day tenor even with tenders reaching P7.378 billion, more than the P6 billion it intended to raise. Had the government proceeded with a full award, the debt papers would have fetched an average rate of 6.131%, 7.9 bps higher than last week’s 6.052%.

Based on the PHP Bloomberg Valuation Service Reference Rates, the three-month, six-month and one-year papers were quoted at 5.727%, 5.971% and 6.093%, respectively, yesterday.

Following the auction, Deputy Treasurer Erwin D. Sta. Ana said the government rejected all bids placed for the one-year T-bills as market participants sought rates higher than what it was willing to pay..

“We made the full rejection on the 364-day (papers) because the committee actually deems it quite high at this level given the shortened work week,” Mr. Sta. Ana told reporters Monday.

“Of course the banks need liquidity over the long holidays.”

Financial markets in the Philippines are closed on Thursday and Friday for the Holy Week break.

“We feel that we’ll just await the 364-day auction next week where we will be able to make sure that this is not because of the long holiday,” Mr. Sta. Ana explained.

He added that the demand was focused on the shortest T-bill tenor as investors stayed cautious amid a lack of fresh leads for this week. “I think it’s safer for them to park it at the shortest tenor.”

Sought for comment, a trader said the auction results were within expectations as investor demand was tepid ahead of the break.

“Despite a good turnout, the BTr chose to partially award today’s T-bill auction as bulk of market interest was seen in the 91-day and 182-day papers,” Kevin S. Palma, Robinsons Bank Corp. peso sovereign debt trader, said in a text message on Monday.

“Demand may have waned for the longest paper on the lack of new catalysts and ahead of the Holy Week break.”

Government borrowing from the domestic market is programmed at P315 billion for this quarter, broken down into P195 billion in T-bills and P120 billion in Treasury bonds.

PANDA BONDS
Meanwhile, Mr. Sta. Ana said the government can issue yuan-denominated or “panda” bonds in tranches, as it has a 6-billion renminbi shelf program with the National Association of Financial Market Institutional Investors (NAFMII) in China.

“That’s a possibility because it’s a shelf. So we can actually do takedowns in two years’ time,” Mr. Sta. Ana said.

National Treasurer Rosalia V. De Leon previously said the government is seeking to sell panda bonds within the second quarter amounting to $300-500 million with a tenor of either three, five or seven years.

This is lower than the $230 million or 1.46 billion renminbi in panda bonds offered by the government last year, marking its first foray into the Chinese capital market. The three-year papers offered in May fetched an average rate of five percent.

“You can actually do a number of drawdowns or takedowns from the shelf. So in this case, we are working on a transaction potentially as early as next week or maybe it can move depending on the approvals that we will be obtaining especially from NAFMII and PBoC (People’s Bank of China),” the deputy treasurer said.

The government plans to borrow P1.189 trillion this year — 75% of which will be sourced domestically while the remainder will be from foreign creditors — to fund its budget deficit, which is expected to widen to as much as 3.2% of the country’s gross domestic product. — Karl Angelo N. Vidal

The eagle has landed

By Susan Claire Agbayani

HUNTING and deforestation are the two major causes of the decline in the number of Philippine eagles, said Philippine Eagle Foundation (PEF) Director for Research and Conservation Jayson Ibañez during the Q&A portion following a screening of the multi-awarded documentary Bird of Prey at Cine Adarna of the University of the Philippines recently.

The Philippine eagle cannot live outside the forest, declared Mr. Ibanez, who added that, “A hundred years ago, the Philippines had 90% forest cover (which is) now down to less than 20% of the country’s land area.” Deforestation leads to the loss of the eagles’ nesting sites.

“We found out that Philippine eagles are very loyal to the places where they breed. These are nesting sites that (have been) occupied by pairs of eagles from different generations,” Ibañez said.

To date, there are “no more than 400 eagle pairs across the Philippines.”

Through its work, PEF found out that indigenous communities live closely to these ancient nesting sites, and these eagles — sometimes, however rarely — end up on the dinner table.

Thus, a great part of the work the Foundation does is to organize communities to serve as local forest guards.

“We’re trying to push professionalizing forest guarding, so that it becomes decent work for our indigenous peoples. This is one way of (engaging indigenous communities and) incentivizing a conservation lifestyle among them (for instance, raising tree nurseries), generating conservation outcomes while also address their need for income,” Mr. Ibañez said.

Interestingly, the Philippine eagles are “safe” in areas of conflict. Or so PEF Executive Director Dennis Salvador noted.

FIRST FILMED IMAGES
Also in town for the screening was world-renowned cinematographer Neil Rettig and his wife, Expedition Coordinator Laura Johnson. According to docutah.com, “In 1977… Rettig captured the first filmed images of the Philippine Eagle in the wild, transforming the bird into a national symbol.” This eagle is found only in the Philippines and is “the world’s largest and rarest eagle.”

In 2013 — nearly four decades after first filming the eagle — Mr. Rettig returned to the Philippines “to embark on a grueling expedition alongside the next generation of Filipinos determined to save the eagle.” The team followed a family of nesting eagles “from hatch to fledge in hopes of re-establishing the species not as a vanishing relic, but as a living symbol of the Philippines’ future,” according to the site. The result is a documentary directed by Eric Liner that runs for a little over an hour and a half.

“We filmed the eagle because it’s an icon, and a symbol and a magnificent creature. The habitat of the Philippine eagle encompasses the flora and fauna of the forest…” Mr. Johnson said during the Q&A in UP. (See the documentary’s trailer here: https://www.facebook.com/watch/?v=240469673166803)

Mr. Rettig recalled that in their “very first and very, very long project in the 1970s, we were in Mindanao for 18 months. We’d be in the field two to three weeks at a time and go back to Davao to our headquarters for a day or two, and back in the field. We would occasionally go to Davao to download footage and to resupply our camera.”

He also recalled that trucks carrying logs were going up and down the mountain all day back in the 1970s when they first “landed” in Davao, he told BusinessWorld following the film screening.

It was not an easy shoot. The search for a nest took some time. Once one was identified, they sought out trees that were pretty close to the nesting site. “We started exploring different trees that were closer to the nest. In the end — once the eagles were habituated to us enough — we were only 20 meters away; basically 62 feet from the nest.” That enabled their team to get breathtaking videos of the family of eagles, Mr. Rettig told the audience in UP.

Just watching the documentary on the Philippine eagle and seeing how close the filmmakers were to the animals, one might get the impression that it is easy to see the birds up close — but it is not. “If you watch a film (about wildlife), you’re probably watching one hour of what possibly took two years” worth of someone’s or a group’s work. Understandably, Mr. Rettig said, “sometimes, tourists are disappointed because they can’t get close enough, and they’re not able to see some of the animals (the way they did watching nature films).”

While he thinks that overall “ecotourism is good,” he cautions that “tourists would have to be very careful not to be too close to an eagles nest, or to the Philippine eagle. And that applies to many other animals around the world, especially once they are endangered. In many cases, the animals do not like the presence of humans, because humans are a natural enemy,” he said. (Watch the eagle fly here: https://www.facebook.com/cornellbirds/videos/vb.142914269087072/406927706743449/?type=2&theater)

Mr. Rettig said that their next film project will be a profile on the work being done by the Foundation.

“When Neil and I were filming the eagle for this project — spending every day watching and monitoring this family of eagles — it became very, very personal to us. We really hope the images Neil captured so beautifully of your amazing, regal, incredible national symbol — these eagles in the wild — will also make you… do whatever you can to help…” said Mr. Johnson.

“I hope that 10, 20, 30 years from now, young children would walk into the beautiful rainforests of the Philippines and be able to see the Philippine eagle,” Mr. Rettig said.

Echoing the words of the late UP College of Science Dean Perry Ong, Mr. Rettig concluded, “The Philippine eagle may be found only in the Philippines, but it is property of the world. It is the magnificent creature that we can’t afford to lose.”

(Read more about the movie here: https://www.facebook.com/207815396432231/posts/219791668567937/).

BPI makes push to finance ‘green’ buildings despite developers’ worries over cost

By Vincent Mariel P. Galang
Reporter

MOST developers may think that turning their buildings “green” would be expensive, without seeing the long-term benefits for their business and society as a whole.

Since its launch in 2008, Bank of the Philippine Islands (BPI), through its Sustainable Energy Finance (SEF) Program, has helped over 300 companies, including property developers, pursue more environment-friendly but cost-efficient projects.

As of end of 2018, the program has disbursed P52.6 billion for energy efficiency, renewable energy, and climate resiliency projects. Of this, 20% of the funds were allocated for Green Building projects.

“The green building initiatives of the private sector were triggered by the law because we have a very important business consideration as different project owners build or construct new buildings, we say if you do not comply with the law, you will not be able to get a building permit. You will perpetually be in violation,” Jo Ann B. Eala, head of sustainable energy finance and specialized lending of BPI, told BusinessWorld after the company’s event held at Makati City on April 4.

The Philippine Green Building (GB) Code of 2016 covers hospitals, offices, hotels, and schools with a minimum of 10,000 square meters (sq.m.) floor area, malls over 15,000 sq.m., and residential condominiums over 20,000 sq.m. This sets standards for these infrastructure related to energy efficiency, water and wastewater management, solid waste management, site sustainability, and indoor environmental quality.

Ms. Eala said after the implementation of the law, the number of green buildings in the Philippines more than doubled in terms of the company’s portfolio. For green building projects alone, BPI disbursed P9.6 billion as of end of 2018. The Ayala-led bank is targeting to further grow the program in order to reach more businesses.

“We target to grow at a much faster rate than regular loans … Definitely, more than 10%. If we can 15% (a year)… With the momentum of the green building take-up, I think we could go at a really much faster rate than the regular loans,” she said during the event.

“In terms sustainable energy and sustainable development, we’re looking at probably between 15 to 20% in terms of our target growth. I think it will be accelerating compared to where it was previously because we are seeing increased consciousness among borrowers… and we think that will continue to grow as time goes on,” Eric Roberto M. Luchangco, senior vice president and head for corporate credits products group of BPI.

GREEN BUSINESS
Just like any other green initiative, BPI’s green financing program also faced challenges such as businessmen’s perceptions that these types of projects will be very costly.

“The initial challenge was resistance because of the perceived cost without knowing the benefits. Remember, a businessman still looks at the bottomline, so if they are not aware of how much they are to gain also in terms of profitability then it becomes hard,” Ms. Eala said.

In order to encourage more businesses to join, BPI made itself the example. At its head office Makati City, 30-year old chillers were replaced which resulted in annual savings of about 990 megawatt hour (MWh) or about P12 million since 2012. Furthermore, it was able to avoid emission of greenhouse gases (GHG) at 431 total carbon dioxode (tCO2) per year.

Another project is Imperial Homes Corp.’s Via Verde Village in Sto. Tomas, Batangas. It is touted as the first solar-powered with lithium battery, low-cost housing subdivision in the country. It is able to generate 529 MWh per year or P5 million per year. It also has an estimate GHG avoidance at 2,380 tCO2 per year.

“What we hope to do, knowing that there is so much potential in the business sector, is to educate first and encourage more and more private sector participation in sustainable initiatives. This as a whole is mobilizing and boosting private sector participation in protecting the environment but making sure as it is done, it is done in a very successful, well-studied way so that the project will definitely yield the results expected… and will encourage the business sector to continue and make it a sustainable venture,” Ms. Eala said.

San Miguel net income declines 18% in 2018

SAN MIGUEL Corp. (SMC) reported an 18% drop in net income attributable to equity holders of the parent company in 2018, as an increase in revenues failed to offset higher expenses.

In a regulatory filing on Monday, the diversified conglomerate said its net income attributable to equity holders of the parent company stood at P23.077 billion last year, from P28.225 billion in 2017.

Revenues reached P1.025 trillion last year, 24% higher from P826.086 billion the previous year, due to “higher volumes and favorable selling prices across all major businesses.”

However, SMC noted the cost of sales spiked 28% to P825.748 billion as the increase in crude prices and excise taxes, as well as operations of new facilities weighed on the bottom line.

“Cost of sales increased…mainly due to the increase in crude prices and effect of excise tax of Petron Corp. (Petron); higher sales volume of San Miguel Brewery Inc. (SMB) and the Food Segment; increase in excise tax by 4% per case of the domestic operations of SMB and operations of the newly acquired Masinloc Power Partners Co. Ltd. (MPPCL or the Masinloc Group) and the new Greenfield power plants in Bataan and Davao,” the conglomerate said.

On top of operating expenses, SMC also recorded 22.8% rise in financing charges at P38.304 billion due to “higher level of loans payable and long-term debt in 2018 compared to 2017.”

SMC also saw an increase in other charges to P5.6 billion “primarily due to the higher foreign exchange loss on the translation of the foreign currency denominated long-term debt and finance lease liabilities, partly offset by the higher gain on the translation of foreign currency denominated cash and cash equivalents with the peso depreciating by P2.65 from P49.93 in December 2017 to P52.58 in December 2018.”

Last month, SMC disclosed its consolidated recurring net income stood at P55.18 billion, up one percent, in 2018.

“Income growth for the conglomerate was tempered by the sharp decline in crude prices resulting in inventory losses for its fuels and petrochemical business during the 4th quarter of 2018. This was compounded by forex translation losses for the year,” the conglomerate said in a statement at that time.

Shares in San Miguel fell 4.24% or P7.70 to close at P173.70 each on Monday. — Denise A. Valdez

Asia’s tech firms posing challenge for traditional banks as clients go digital

HONG KONG — Asia’s internet firms are challenging the region’s traditional banks for consumer finances, tapping their massive user networks for business and following a trail blazed in China by tech giants Alibaba and Tencent.

The push into banking by companies better known for their messaging apps, cute emojis and online holiday bookings comes as regulators across Asia open up their banking sectors to a new breed of digital players.

The shift is in its infancy but contrasts sharply with the banking markets of Europe and North America, where change is slower and such startups tend to be backed by venture capital funds and financial sector incumbents, not tech firms.

Asia’s tech entrants see their advantage in the way they can seamlessly integrate banking services with their users’ regular online activities and the efficiency that comes from their technology.

“If you want to open a bank account (in Hong Kong) you need to go to a branch, answer questions for an hour, and you still won’t get the account opened without follow up calls,” said Wayne Xu, president of ZhongAn International, a unit of Chinese online insurer ZhongAn, setting up a virtual bank.

“However, all the information needed at the counter can already be collected on a mobile phone.”

Hong Kong’s banking regulator last month issued one of four so-called virtual banking licenses to ZhongAn in what could be the biggest shake-up in years in a city dominated by HSBC and Standard Chartered. Last week, the regulator said on it was making progress on four additional applications.

In South Korea, authorities have issued two online only bank licenses, one of them to Kakao Bank in 2017, which is operated by the company behind the country’s largest chat app.

“The 45 million monthly average users of our messaging app Kakao Talk is a huge plus for us when advertising our bank,” a spokesman for Kakao Bank said. He added the bank uses Kakao’s artificial intelligence technology for its automated customer support systems. The bank had 8.9 million users as of March.

Other Asian countries set to approve online-only banks include Taiwan — where a group led by a unit of Japanese messaging app operator Line Corp. has applied for a license — and Malaysia, which plans guidelines by the end of the year. Bank of Thailand Governor Veerathai Santiprabhob said the central bank was exploring the issue.

“Large technology companies are seeing this as a land-grab opportunity where they can build out new sets of financial services that can be cross-sold to their existing users,” said Jeff Galvin, a Hong Kong-based partner at McKinsey.

DIGITAL ASIA
Driving the shift in Asia is mobile technology’s deep penetration across all aspects of consumer life.

Such trends were forged by Alibaba and Tencent in China where the two upended financial services and drove a revolution in the cashless economy with their digital payment applications.

In contrast, US tech giants such as Amazon and Alphabet Inc.’s Google have focused their financial industry efforts on providing tech and consulting services to incumbents.

Asian consumers are far more willing to bank with tech firms than elsewhere in the world.

More than 90% of consumers under 35 in China and India would bank with a technology firm, according to Bain research, compared to 75% in the United States and just 51% in France.

The online-only banks in Hong Kong plan to start-off by offering services such as savings accounts, credit cards, personal loans and travel insurance.

“What we are seeing in Asia is technology companies moving sideways into finance, inspired by or even threatened by the examples of Alibaba and Tencent,” said James Lloyd, partner and APAC fintech leader at consultancy EY.

In Asia, the emergence of tech gains in the banking sector comes at a difficult time for the region’s incumbents who have begun reassessing the vast branch networks that, until recently, were seen as their competitive advantage.

The number of bank branches in Hong Kong, Japan, Malaysia, South Korea and Thailand has declined in the last couple of years, dropping by between 1% and 7% in 2017 from 2015, according to the International Monetary Fund. That compares with growth of as much as 8% a decade ago.

To be sure, legacy banks in Asia have their own plans to stay relevant in the changing space with some tying up with new rivals.

Among the new Hong Kong digital banking licensees is a joint venture between StanChart, Chinese holiday booking giant Ctrip and local telco PCCW.

“We think that the ecosystem we can build together will be a great integration of lifestyle into banking,” Mary Huen chief executive of StanChart Hong Kong, and chairman of the new virtual bank, said at a press conference. — Reuters

Subway project to boost demand for nearby condos

THE completion of Metro Manila’s first subway is likely to boost demand for a residential condominium being developed by DMCI Homes near two proposed subway stations.

“As early as last year, we have already observed big interest on our projects located along the proposed tracks of the subway project,” DMCI Homes Assistant Vice President for Project Development Dennis O. Yap said in a statement on Monday.

The Metro Manila Subway project, which broke ground last February, is expected to be operational by 2025. It is a 36-kilometer subway system that will run from Mindanao Avenue-Quirino Highway in Quezon City to the Ninoy Aquino International Airport Terminal 3 in Pasay City.

Mr. Yap cited DMCI Homes’ Infina Towers as one of the projects that has seen a spike in interest. Located along Aurora Boulevard in Quezon City, Infina Towers is near two proposed subway stations — Anonas and Katipunan Avenue.

Another project expected to benefit due to its proximity to the metro rail system is The Cresmont, located along Panay Ave., South Triangle, Quezon City. The single-tower development will be built adjacent to Quezon Avenue Station of Metro Rail Transit Line 3 (MRT-3).

“We are very positive about the future of the Manila property market with the construction of the subway project. We look forward to bright prospects ahead not just for the company but for the whole industry,” he said. — Vincent Mariel P. Galang

Star Wars: Rise of Skywalker sees return of emperor Palpatine

CHICAGO — The ninth film in the original Star Wars saga will be called The Rise of Skywalker, and will feature the return of the evil emperor Palpatine to threaten the young heroine Rey and the Resistance, Walt Disney Co. revealed on Friday.

Disney showed fans attending the Star Wars Celebration convention in Chicago the first footage from the movie, which will be released in theaters in December and will conclude the story that began in 1977.

A villainous cackle was heard at the end of the trailer, and the actor who played Palpatine in previous films, Ian McDiarmid, walked onstage to loud applause from an audience of roughly 10,000 fans, many waving colorful lightsabers.

As of Friday afternoon, the Rise of Skywalker trailer had been viewed online about 11 million times.

Director J.J. Abrams, speaking alongside a handful of cast members, said the movie takes place some time after the events of the 2017 film The Last Jedi.

The footage showed a hug between Princess Leia, played by the late Carrie Fisher, and Rey (Daisy Ridley). Fisher died in 2016, but Abrams said that in a “weird miracle,” he was able to piece together unused footage from Last Jedi to continue the beloved character’s story.

“Princess Leia lives in this film in a way that’s mind-blowing for me,” he said.

The director disclosed little about the plot, however.

“This movie is about this new generation, what they’ve inherited, the light and the dark, and are they ready?” he told the crowd.

In an interview, Mr. Abrams told Reuters that writers met with Star Wars creator George Lucas before they started to script the final chapter in one of the world’s most-celebrated movie franchises.

The goal was “to create something that gives a sense of surprise and thrill and heartbreak, and shock and awe, but also feeling like an inevitability,” he said.

The circumstances surrounding Palpatine’s return remain a mystery. The character appeared to die in 1983’s Return of the Jedi. In the trailer released on Friday, the voice of Luke (Mark Hamill) says to Rey that “no one’s ever really gone.”

Luke also tells Rey that “we have passed on all the knowledge,” and that the fight against evil is now hers.

Ms. Ridley, John Boyega, who plays Resistance fighter Finn, and Oscar Isaac, who portrays pilot Poe Dameron, all attended the event.

But the largest ovations came for Kelly Marie Tran, who plays mechanic Rose Tico, and Billy Dee Williams, who returns to the series as con artist Lando Calrissian after last playing the character in 1983.

“Lando never really left me,” Mr. Williams said.

Naomi Ackie, who joined as a new character named Jannah, said she could not confirm or deny speculation that Jannah was Calrissian’s daughter.

A new droid, D-O, also rolled onto the stage, joining BB-8 and R2-D2.

Fans were delighted.

“I got chills. I was pretty emotional from the panel leading into it and then when the trailer kicked off I was just so thrilled. I just can’t wait,” said Jon Barnes. — Reuters