Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 9816

Discovering Davao City’s gems

Sprawled beautifully on the southern Philippine island of Mindanao, Davao City prides itself for having a wealth of picturesque sceneries, a variety of natural attractions and a host of fun activities that attract both local and foreign tourists.  The city is now considered as one of the country’s top tourist destinations, offering a mix of urban and rural living experience.

Data from Davao City Tourism Operations Office (CTOO) shows a steady increase in the number of tourist arrivals in the city in the last three years, wherein majority of the visitors were domestic tourists and returning overseas Filipinos.

In 2018, the city attracted some 2.39 million tourists, surpassing its record of two million visitors in the previous year. American visitors topped the list of Davao City’s international visitors with 21,324, followed by Japanese, Chinese, Korean and Australians. Other nationals included in the top 10 international arrivals were Indians, Canadians, Singaporeans, British and Emiratis.

The city of Davao comes with a good mixture of both man-made and natural attractions. Tourists can visit and stroll at the city’s museums, try different adventures in parks and resorts, or indulge in the beauty of nature.

Davao Museum of History and Ethnography — Wikimedia Commons

For one who wants to know the rich history of Davao, visiting the Davao Museum is the best way to start. This two-storey building, located in Insular Village Phase 1 in Lanang, showcases the cultural heritage of Davao which rooted from the large variety of tribes that populated the region.

The museum houses photographs of the city’s historic events, large-scale versions of old maps of Mindanao and the country, centuries-old Asian trade jars, antique religious artifacts, burial urns, weaponry, musical instruments, tribal clothing, handicrafts and pottery, among others. It also features life-size dioramas depicting Davao’s diverse culture, including weaving and healing ritual.

Museo Dabawenyo or the “Museum of the People of Davao” is the other museum located in Davao City, specifically and originally situated along Fr. Selga Street going to Pichon Street. The museum is divided into four rooms: the Indigenous People’s Gallery, the Moro People’s Gallery, the Contemporary Gallery, and the Memorabilia Gallery.

The management of Museo Dabawenyo, however, announced that the museum is closed temporarily to give way to the construction of the new City Engineer’s Office (CEO) building. The museum will be relocated inside the People’s Park — one of the most visited tourist attractions in Davao today — with a bigger building. The new structure will have five floors and will be inspired by the iconic durian fruit.

Aside from visiting the said museums and the People’s Park, a four-hectare wide cultural-theme park featuring a mini-forest, man-made falls, a dancing fountain at night, fish ponds, children’s playground and a giant durian dome, tourists can also explore the Davao Crocodile Park.

As the name implies, the park houses hundreds of cultured Philippine crocodiles. The Davao Crocodile Park showcases a ‘state of the art’ crocodile farming system, equipped with modern facilities and equipment. Apart from crocodiles, the park is a home of other animals, including birds, tigers, wild boars, apes, and pythons.

Philippine Eagle Center — ARMAND DOMINGUEZ | philippineeaglefoundation.org

To complete one’s animal sightings experience, tourists can also drive their way to the Philippine Eagle Center (PEC), located at the foothills of Mt. Apo in Malagos, Baguio District, Davao City and situated within the Malagos Watershed. The PEC primarily operates as a conservation breeding facility for the critically endangered Philippine Eagle and other birds of prey. A number of other birds, mammals and reptiles — most of which are endemic to the country and some are considered rare —can be also sighted in the center.

For tourists looking for a secluded place where the gifts of nature abound, Loleng’s Mountain Resort is probably one of the best options. The resort is located at Eden-Bayabas in Toril, and is just a 20-minute ride from the heart of Davao City. It offers superb accommodation, places for recreation, and luscious yet affordable meals, which make it a perfect getaway from the bustling city life.

For those longing for more, they can also visit the Gap Orchard Resort, a sprawling 10-hectare farm orchard, dedicated to durian, rambutan, pomelo and other tropical fruits.

The farm is a popular destination in the city frequented by many tourists to spend leisure time. Tropical trees and fruits, exotic flowers, plants, and colorful flora and fauna are the main things that can be seen in the farm. There are also some landmarks scattered throughout the farm, including the old World War II Japanese carved tunnel, a Santo Niño chapel and Mother of Perpetual Help, as well as mystical statues. — Mark Louis F. Ferrolino

A thriving investment hub

Serving as the center of commerce, trade, tourism, and finance in the Southern
Philippines, the city of Davao positions itself as one of the country’s leading investment hubs.

The city government’s investment primer, published online, presents the city as the best option to invest. “Locating in Davao City means accessing the 25-million market of Southern Mindanao. It also serves as a prime entry to over 500 million people in the ASEAN region and East Asian economies,” the primer wrote.

Several factors make Davao a viable place to invest. As the primer discussed, Davao City provides a favorable business climate “with vast land area for growth and development, abundant supply of raw materials, affordable power and utility rates and highly-skilled and job-ready workforce”.

The city also offers convenient accessibility, where people and goods move efficiently through arterial roads connecting major inter-provincial routes, an international airport with daily domestic flights plus regular flights to Singapore, and ports serving both inbound and outbound passenger traffic and domestic and foreign cargo.

Davao City also has a flourishing economy that “continues to indicate strong performances in trading and investments”. Recent figures shared in Davao City’s investment website indicated that the Davao Region, or Region 11, earned a GRDP (gross regional domestic product) Growth Rate of 9.4%. Value of investments grew by 6.3%, while the number of establishments increased by 6.1%.

Another noteworthy factor is the city’s government initiatives “to ensure easy business start-up and local legislations to support its bustling business environment.” The first local investment promotion unit in the country came from this city in the South, the Davao City Investment Promotion Center, which “provides convenient business start-up services and assistance”.

An area where peace and order are assured makes for a trustworthy investment center. This has been true in Davao with its low crime rate, which made the city one of the “Most Peaceful and Safest Cities in Southeast Asia.” The city also boasts of its Public Safety and Security Command Center, which houses the city’s traffic management, disaster risk reduction management, and safety and security systems.

Thriving investments

The past year was a witness to the competence of Davao City as an investment hub. Aside from the aforementioned economic figures, the Philippine News Agency reported that Region 11 procured investment projects worth P14.8 billion as of January to November of 2018, the majority of which are allocated to the city (14.1 billion).

As of November last year, the Department of Trade and Industry in that region recorded 10,334 new business registrants. It also tallied a thriving infrastructure, with major projects last year consisting of water supply, sewage and water management worth P13,324.67 billion; real estate activities with P665.30 million; human health and social science with P376.5 million; agriculture, forestry and fishing with P325.97 million; administrative and support services with P121.25 million; and accommodation and food service activities with P14.8 million.

Finance Secretary Carlos Dominguez III recognized the large part infrastructure investments play in Davao City. “The forthcoming infrastructure investments will catalyze the region’s growth potential. It will make the city a center for manufacturing and agro-industry,” Mr. Dominguez said in a report of the Philippine Information Agency.

Among the infrastructure projects currently implemented in the city include the Davao International Airport Development Project (to be completed in 2022); the Davao City Coastal Road Project (to be completed in 2021); the Mindanao Logistics Infrastructure Network (to be completed next year); and the Davao Public Transport Modernization Project. Other projects, in line with the administration’s “Build, Build, Build” program, include a major railway project and several road projects that are expected to be implemented in the near future.

As investments keep on rolling in Davao City, the city government has been working at reviewing its Investment Incentive Code and modifying it to offer new incentives. According to a BusinessWorld report last February, the city will release the new Code within the 1st half of this year as the draft undergoes a review for approval by the board of the Investment Promotions Center.

Aside from a streamlining of the 10 priority areas of investments, the new proposal enhances incentives for some of those areas, while others are either split or eliminated.

Davao City currently has 10 preferred investment areas, namely agribusiness; tourism and recreational facilities; property development; light manufacturing and assembly; information and communications technology; generation of new sources of energy; health and wellness, educational, and sports facilities; environmental protection or green projects; transportation and infrastructure; and public-private partnerships.

The current incentives offered to new, expanding, or diversifying enterprises under any of the preferred investment areas are a three-year business tax exemption and two-year real property tax exemption. A five-year tax holiday is also offered to investments in located in preferred districts of Calinan, Baguio, Marilog, and Paquibato. — Adrian Paul B. Conoza

Duterte bares third narco-list

By Arjay L. Balinbin, Reporter
President Rodrigo R. Duterte on Thursday finally made public the third batch of his narco-list, saying the “drug personalities” in the list were validated and charges have been filed against them before the Office of the Ombudsman.
“My decision to unmask these drug personalities was anchored on my trust in the government agencies that have vetted and validated the narco-list,” he said in his remarks during the meeting of the National Peace and Order Council in Davao City on Thursday evening, March 14.
Mr. Duterte released the list ahead of the 2019 midterm elections. “Remember that ‘public office is a public trust’; an official’s right to privacy is not absolute and there is a compelling reason to prioritize the interest of the state and the people,” he also said.
For its part, the Department of the Interior and Local Government (DILG) said in a statement that it filed “administrative charges” on Thursday against “46 incumbent government officials” included in the list “for their alleged involvement in illegal drug trade and activities.”
Mr. Duterte said the Anti-Money Laundering Council (AMLC) and the Presidential Anti-Corruption Commission (PACC) were also conducting their respective investigations. He said the results of such investigations “will aid us in filing airtight cases against them.”
The President read out several names in the list, including dismissed Iloilo City Mayor Jed Patrick E. Mabilog and Daanbantayan Mayor Vicente A. Loot whom he has repeatedly criticized and accused as “narco-politicians” on various occasions.
“I’m not really interested in releasing it before or after the elections because I do not have the slightest intention to hurt anybody or to be a cause of the failure of an election of a certain man who wants to serve the public,” he said.
The DILG said, “The initial list released to the public by the President includes 35 mayors, seven (7) vice-mayors, one (1) provincial board member, and three (3) members of the House of Representatives.”
MEDIA ‘ETHICS’
Last week, at least seven media organizations expressed “grave concern about the likely breach of professional ethics and adverse legal implications of the publication and broadcast of the Duterte Administration’s list of public officials allegedly involved in the illegal-drugs trade.”
A March-7 statement posted on the Philippine Center for Investigative Journalism (PCIJ) website, which was signed by six other media groups such as National Union of Journalists of the Philippines (NUJP), Philippine Press Institute (PPI), Center for Media Freedom and Responsibility (CMFR), Mindanews, Center for Community Journalism and Development (CCJD), and Freedom for Media, Freedom for All Network, said: “Instead of rushing to print or air, we now urge all our colleagues to exercise utter prudence and fastidious judgment in evaluating this ‘story.'”
“Verify, verify, verify. And do so independently. That is the first thing that the news media can and should do, before running a list that tags and links people to hateful crimes, on the mere say-so of the President and his political lieutenants,” the statement also said.

Duterte signs law on simulated birth records

By Arjay L. Balinbin, Reporter
President Rodrigo R. Duterte has signed a law that grants amnesty to those who simulated birth records and allows rectification of such records through a simplified adoption process.
Malacañang released on Thursday a copy of Republic Act No. 11222, or the “Simulated Birth Rectification Act,” which Mr. Duterte signed on Feb. 21.
Simulation of birth records, according to this law, refers to the “tampering of the civil registry to make it appear in the record of birth that a child was born to a person who is not such child’s biological mother, causing the loss of the true identity and status of such child.”
The new law grants amnesty and allows rectification of the simulated birth of a child “where the simulation was made for the best interest of the child, and that such child has been consistently considered and treated by the person or persons who simulated such birth as her, his, or their own daughter or son.”
Also, one of the major objectives of this law is “to exempt from criminal, civil, and administrative liability those who simulated the birth record of a child prior to the effectivity of this Act: Provided, That a petition for adoption with an application for the rectification of the simulated birth record is filed within ten years from the effectivity of this Act.”
Hence, this law provides for and allows a “simpler and less costly administrative adoption proceeding where the child has been living with the person or persons who simulated her or his birth record for at least three years before the effectivity of this Act.”
Senator Risa N. Hontiveros-Baraquel, the principal sponsor of the bill, said in her sponsorship speech: “To remedy the problem of a lengthy and financially restrictive adoption proceedings, this bill likewise proposes a simpler and less costly administrative adoption process without compromising the safety and integrity of the child.”
The Senate Bill 2081 was introduced by Senator Mary Grace Natividad S. Poe-Llamanzares.
In a press release, Ms. Poe was quoted as saying: “It is also in the best interest of the parents and the children to have the records rectified for possible future uses such as medical or DNA purposes or for other legal matters.”

Remittance impact on peso flagged

SLOWING growth of remittances from Filipinos abroad is not likely to cause a significant dent in overall economic expansion, although it will make the peso “more vulnerable to sudden shifts in global risk appetite” through a widening current account deficit, Capital Economics said in a March 14 note.
“Remittances, which are money sent by overseas workers to their families back home, have been slowing over the past 15 years,” the economic research outfit said in its note, titled: “Philippines: is the slowdown in remittances a concern?,” noting that the dollar value of these inflows last year — at $28.943 billion — increased by 3.1% which was “the weakest pace since 2001.”
Capital Economics attributed slowing growth of these inflows to an improving Philippine economy “which has made it easier for people to find employment at home and reduced the need for them to go overseas in search of work” and an economic downturn in the Middle East, which is the source of a third of remittances to the Philippines.
“These factors are likely to continue to weigh on remittances,” Capital Economics said, adding that it expects the dollar value of these inflows to sustain a three-percent pace “over the next few years”, or half the average rate seen in the past decade.
With remittances equivalent to around a tenth of gross domestic product (GDP), weakening of these inflows is “likely to act as a drag on consumption and investment” which, in turn, are key drivers of Philippine economic expansion.
“However with fiscal and monetary policy set to be loosened this year, economic growth should remain fairly strong.”
Philippine GDP has so far grown by 6.45% in 2017 and 2018, the first two years of the administration of President Rodrigo R. Duterte. The government has a 6-7% growth target for this year that was a downgrade from an original 7-8%. In its meeting on Wednesday, the inter-agency Development Budget Coordination Committee also slashed GDP growth target next year to 6.5-7.5% — also from 7-8% previously — and maintained the 7-8% goal for 2021 and 2022, when Mr. Duterte ends his six-year term. Those targets compare to a 6.3% actual annual average in 2010-2016 under former president Benigno S.C. Aquino III.
“We are more worried about the implications of the slowdown for the balance of payments,” Capital Economics said, noting that the component current account “has gone from a surplus to a deficit over the past couple of years and is likely to widen further over the next couple of years”.
Weakening remittances, it noted, has added to a surge of capital goods and raw materials importation for the government’s stepped-up infrastructure drive in growing the current account deficit.
The current account, which measures fund flows from goods and services trading, posted a $6.47-billion deficit in the nine months to September last year. The central bank expects this level to have held until December at $6.4 billion, equivalent to 1.9% of GDP, amid a steadily rising import bill. As of its mid-December estimates, the BSP sees the current account gap growing further to $8.4 billion this year, equivalent to 2.3% of GDP, as it expects even more imports of raw materials and capital goods for the government’s infrastructure drive.
That, in turn, makes the peso “more vulnerable to sudden shifts in global risk appetite” — “a big worry” since the Philippines’ foreign currency-denominated debt is equivalent to around a fourth of GDP.
The peso on Thursday ended at P52.60 to the greenback, just 0.04% weaker than its end-2018 finish of P52.58.
The DBCC saw fit in its Wednesday review to maintain the peso-dollar exchange projection at P52.55 annually until 2022. — KANV

Sales of imported cars increase in February but down year to date

SALES of imported automobiles increased by 12% year-on-year in February, although year-to-date sales still dropped, according to data released on Thursday by the Association of Vehicle Importers and Distributors, Inc. (AVID).
Sales by AVID members totaled 7,876 units last month compared to 7,017 units in February 2017.
Still, auto sales dropped eight percent to 14,499 units as of February from 15,712 units in last year’s first two months.
Sales of passenger cars dipped by one percent to 2,843 units last month from 2,881 units a year ago.
Accounting for 62% of February’s total, light commercial vehicle (LCV) sales increased by 22% to 4,905 units from 4,028 units in February last year.
YEAR-TO-DATE
The first two months of the year saw 15% drop in passenger car sales to 5,140 units from 6,065 a year ago, with Hyundai Asia Resources, Inc. (HARI) topping the list with 3,490 units sold, 12.8% less than the year-ago 4,002 units. In a separate statement on Thursday, HARI reported that total sales increased by 38.6% to 3,715 units in February, driving two-month sales up 16.2% to 6,537 vehicles. Suzuki Philippines, Inc. (SPI) followed with 1,204 units sold, slighly less than the year-ago 1,280.
The same comparative two-month periods saw LCV sales dip three percent to 9,146 units from 9,434 units. Ford Group Philippines, Inc. topped in this segment with 3,596 units sold, 19% down from 4,456 units in last year’s first two months. HARI followed with 2,893 units sold, 87% more than last year’s 1,550; while SPI sold 1,680 units, a fourth less than 2,202 last yar.
The annual growth was driven by increased consumer spending and the launch of new products.
“We are encouraged by the good sales performance of AVID for the month which signals stronger consumer confidence as well as preference for top-notch products. While we are still in the early part of the year, we… expect a robust recovery for the automotive industry,” AVID President Ma. Fe Perez-Agudo said in a statement.
AVID is the auto industry association whose members import their products. — JCL

‘Investor optimism’ makes hot money rebound in Feb.

FOREIGN portfolio investments — referred to also as “hot money” for the ease by which these funds enter and leave the economy at the slightest stimulus — turned around in February from a year ago on the back of sustained “investor optimism” even as they were more than halved from January, according to latest data which the Bangko Sentral ng Pilipinas (BSP) released on Thursday.
February bared $339.57 million in net hot money inflows that reflected a rebound from the year-ago $528.53-million net outflow but were still 55% less than January’s $762.82-million net inflows.
Gross inflows increased by 34.9% to $1.41 billion in February from $1.045 billion a year ago but were still 31.6% less than January’s $2.062 billion.
In comparison, gross outflows fell by 32% to $1.071 billion in February from $1.574 billion a year ago, and by 17.6% from January’s $1.299 billion.
About 77.4% of investments registered with the BSP in February went to securities listed on the Philippine Stock Exchange (PSE) — particularly to banks, holding firms, property companies, food, beverage and tobacco companies, and transportation companies — while 22.4% went to peso-denominated government securities and just 0.2% went to other peso-denominated debt instruments.
All these transactions yielded net inflows in February, BSP said, with those involving PSE-listed securities at $175 million, those of peso-denominated government securities at $162 million and those of other peso-denominated debt instruments at $3 million.
February saw the United Kingdom, the United States, Singapore, Luxembourg, and Norway were the top five hot money sources, accounting for 67%.
The central bank attributed that month’s net inflows “to investor optimism arising from developments on trade negotiations between the US and China and the passage of the tariffication law, which is expected to help boost the rice supply in the country and thereby temper inflation.”
President Donald Trump that month postponed “indefinitely” the US plan to impose $200 million in tariffs on Chinese goods, originally scheduled on March 1, citing “substantial progress” in bilateral talks.
Meanwhile, President Rodrigo R. Duterte signed on Feb. 14 the law liberalizing importation of rice by replacing quantitative restrictions on imports of the grain with tariffs: five percent for rice coming from within the Association of Southeast Asian Nations (ASEAN); 40% for imports within the 350,000 metric-ton minimum access volume (MAV), regardless of country; and 180% for above-MAV imports from non-ASEAN countries.
The latest flows brought the tally to a $1.102.39-billion net inflow in the first two months, a turnaround from a $366.37-million net outflow a year ago.
Sought for comment, Rizal Commercial Banking Corp. economist Michael L. Ricafort credited easing inflation and low interest rates for sustained investor interest.
“Lower inflation and interest rates fundamentally increase the incomes and purchasing power of consumers… and also increases the sales, profits and valuation of listed companies as well,” Mr. Ricafort explained in a mobile phone message.
Union Bank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said separately that foreign portfolio investments could post smaller net inflows in March “unless external environment gets better for good,” particularly significant gains in resolving the Sino-US trade spat.
This month’s first two days saw net inflows slashed significantly to just $49.13 million from $1.178 million a year ago, as gross inflows fell to $118.56 million from $1.329 billion and total outflows dropped to $69.43 million from $150.37 million. — Karl Angelo N. Vidal

Why the worst may be over for the global economy

LONDON — The world economy may be the rockiest it’s been since the financial crisis, yet there are reasons to expect the current slowdown will prove short-lived.
Bloomberg Economics, Deutsche Bank AG and Morgan Stanley are among those whose economists reckon the slide will bottom out in this quarter or next before an acceleration later in the year.
“Put the Federal Reserve pause, trade truce and China stimulus together and we’re looking for a trough in the first quarter and very moderate pick up ahead,” said Tom Orlik, chief economist at Bloomberg Economics.
CENTRAL BANKS TO THE RESCUE
Led by the Fed, many central banks have either held back on tightening monetary policy or introduced fresh stimulus, soothing investor fears of a slowdown.
Fed Chairman Jerome Powell says he and colleagues will be patient on raising interest rates again, while European Central Bank President Mario Draghi has ruled out doing so this year and unveiled a new batch of cheap loans for banks.
Elsewhere, authorities in Australia, Canada and the United Kingdom are among those to have adopted a wait-and-see approach.
China, at its National People’s Congress this month, signaled a willingness to ease monetary and fiscal policies to support economic expansion.
Having tightened at the end of last year — in part prompting the Fed to rethink the outlook — financial conditions have loosened up.
After touching a two-and-a-half-year low in December, the Bloomberg US Financial Conditions Index — which measures the overall level of financial stress in money, bond and equity markets — has since rebounded.
Reflecting a more positive investor view, there’s also been a rebound in stocks this year. The S&P 500 has gained almost 20% from its December low, while the Shanghai Composite is up about 22%.
An easing in US dollar strength versus 2018 has also given relief to emerging markets, taking some pressure off policy makers to guard against capital flight.
Credit numbers for China and Japan in February were up strongly from a year ago.
IHS Markit’s indicator of global growth rose in February from a 28-month low and, encouragingly, there was an improvement in the gauge of demand.
Its measure of worldwide services also picked up in February for the first time in three months.
Citigroup’s surprise index for the euro area — which has been one of the weak spots of the global economy — has rebounded to its best reading in almost five months.
In China, a measure of new orders in the manufacturing Purchasing Managers Index improved last month, and Germany got good news about an increase in water levels on the River Rhine.
A drop last year disrupted barge traffic, hitting industry and adding to the temporary factors that pushed the economy near a recession.
TRADING PLACES
Investors have been keen to blame political discord, and especially the global trade war, for prompting businesses and consumers to retrench.
One measure of unpredictability in 20 countries entered the year at a record level.
But US President Donald Trump decided against imposing another round of tariffs on China on March 1 and there are signs that he and Chinese President Xi Jinping may soon be able to strike a trade deal.
A model designed by the Institute of International Finance (IIF) to track US trade in real time showed signs of stabilizing from early this year.
“Global trade fears are overblown, as are concerns that global growth may slow significantly,” according to Robin Brooks, the IIF’s chief economist.
Even with February’s disappointing US employment report, the global labor market continues to tighten, providing reason to hope consumers will keep spending.
JPMorgan Chase & Co. estimates unemployment in developed nations is now at a 40-year low of five percent and set to fall further. That has the bank predicting wages will grow 3.2% in the final quarter of this year, the fastest for any point in the decade-long expansion and almost a percentage point faster than the same period of 2017.
The International Monetary Fund is still predicting global growth of 3.7% this year and 3.5% in 2019, a pretty good clip for this stage of the expansion.
Deutsche Bank strategist Alan Ruskin also argues there is reason to be more upbeat than the headlines suggest. China’s economy, for example, is five times its size in 2000, meaning a six percent growth rate now is equivalent to 30 percent back then.
“When making even longer-term comparisons, absolute levels and changes become even more important than the limited perspective provided by percentage changes,” he wrote in a note to clients this week. — Bloomberg

SMC recurring income flat in 2018

DIVERSIFIED conglomerate San Miguel Corp. (SMC) recorded flat earnings growth in 2018, mainly due to lower crude prices for its fuel business that was further dragged down by forex losses.
In a presentation to investors posted on its website, SMC said consolidated recurring net income hit P55.18 billion, one percent higher year on year. This came amid a 24% increase in consolidated revenues to P1.02 trillion.
“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 company said in a statement.
Petron Corp. saw its net income drop 50% to P7.07 billion last year, primarily due to inventory losses incurred in November and December. The company noted that global oil production supply surged during the fourth quarter, causing a nine-week plunge in international oil prices.
At the same time, revenues of the country’s largest refiner jumped 28% to P557.39 billion.
San Miguel Food and Beverage, Inc. (SMFB) delivered an eight percent profit increase to P30.53 billion, following a 14% increase in consolidated revenues to P286.38 billion.
The food and beverage giant benefited from strong sales from all units, but its bottomline was also tempered by elevated costs during the period. For instance, net income of San Miguel Pure Foods, Inc. went down by 15% to P5.89 billion, despite a 13% increase in sales to P132.23 billion.
The power unit through SMC Global Power Holdings Corp. registered a 37% increase in operating income to P33.17 billion. Consolidated revenues rose 45% to P120.10 billion after volume grew by 39% for the period.
“This was attributed to additional generation from the Limay, Malita and Masinloc power plants and better contributions from the Ilijan and San Roque power plants,” the company said.
Meanwhile, operating income of SMC’s infrastructure unit gained 13% to P11.83 billion, after revenues of P24.53 billion, nine percent higher year on year. The company benefited from more vehicles using its operating toll roads.
SMC said the construction of Skyway Stage 3 and Metro Rail Transit Line 7 remains on track, while its Bulacan Bulk Water project will be able to start providing potable water to six municipalities within the year.
Shares in SMC went down 0.23% or 40 centavos to close at P172 each at the stock exchange on Thursday. — Arra B. Francia

Megaworld and BCDA to jointly manage Bonifacio Capital District

By Arra B. Francia, Reporter
MEGAWORLD CORP. has partnered with the Bases Conversion and Development Authority (BCDA) for the property management of the 160-hectare Bonifacio Capital District (BCD) in Taguig City.
The listed property developer signed on Thursday a memorandum of agreement (MoA) with BCDA for the new district on the southern part of Fort Bonifacio, which will encompass Megaworld’s existing developments such as the 54.3-hectare McKinley Hill and the 34.5-hectare McKinley West.
BCD will also include properties owned by BCDA, namely the 26-hectare Philippine Navy Village, the 33.1-hectare Bonifacio South Pointe in partnership with the SM Group, the 10.1-hectare Consular property beside McKinley West, and a one-hectare lot.
Under the agreement, Megaworld and BCDA will create a Policy Review Board (PRB) that will set the policies and restrictions for the execution of BCD’s masterplan.
“The PRB is one of the most important, if not the most important body of any development,” BCDA President and Chief Executive Officer Vince B. Dizon said in a press briefing after the MoA signing in Taguig on Thursday.
“It is in charge of ensuring the right execution of the development. It’s in charge of the urban designs, ensuring that each and every locator in the property follows these guidelines, and is in charge of the short, medium, and long-term development of the entire property,” Mr. Dizon explained.
Mr. Dizon noted how the absence of a masterplan in most cities in the Philippines has given rise to “not so ideal conditions” for businesses, as well as for the people residing and working in those cities.
Megaworld Senior Vice President and Chief Strategy Officer Kevin Andrew L. Tan said the execution of the masterplan will include traffic management, landscaping of major roads, and security management, among others.
“In the next five years, after completing the road developments, utilities network and the subway project, we will be focused on traffic management, which includes development of bike lanes and pedestrian networks as well as deployment of traffic marshals,” Mr. Tan said in the same event.
The company will also expand the CCTV monitoring within the district, which will be incorporated into its Central Command Center in McKinley Hill.
Megaworld is currently developing commercial, residential, office, and institutional properties in McKinley Hill and McKinley West spanning about 1.26 million square meters (sq.m.) in gross floor area (GFA). The company expects to finish another 2.1 million sq.m. in GFA within the next 10 years from proposed mixed-use developments on undeveloped lots in the district.
BCD will also house several government institutions in the future, namely the Senate of the Philippines, the Supreme Court, and the Court of Appeals.
The company also noted that BCD will house one of the proposed stations, Lawton East Station, which will be part of the Metro Manila Subway to be completed by 2025.
Megaworld is the property arm of tycoon Andrew L. Tan’s Alliance Global Group, Inc., whose investments also include liquor, gaming, and quick-serviced restaurants.
Shares in Megaworld climbed 2.22% or 12 centavos to close at P5.53 each at the stock exchange on Thursday.

AC Health to increase stake in Generika

By Arra B. Francia, Reporter
THE health care unit of Ayala Corp. (AC) plans to subscribe to more shares in the Generika group of companies to fund the pharmacy’s expansion.
In a disclosure to the stock exchange on Thursday, the listed conglomerate said Ayala Healthcare Holdings, Inc. (AC Health) has signed conditional agreements to subscribe to an additional 2.5% stake in the Generika group, bringing its ownership to 52.5%.
The Generika group includes Actimed, Inc., Erikagen, Inc., Novelis Solutions, Inc., and Pharm Gen Ventures Corp.
Under the deal, AC Health will subscribe to a total of 970,412 shares in Generika, consisting of 706,579 shares in Actimed, 42,105 shares in Erikagen, 155,921 shares in Novelis, and 65,807 shares in Pharm Gen Ventures.
“We continue to see increasing demand for quality generic medicines and are excited about Generika’s growth potential. The additional capital will help us with our store and product expansion efforts,” AC Health President and Chief Executive Officer Paolo Maximo F. Borromeo said in a text message to BusinessWorld.
“We will also use it for operations and technology improvements which will be critical to support our store expansion,” he added.
The company did not disclose the exact value of the transaction, but noted that it is less than 10% of AC’s total equity.
AC Health first acquired a stake in the Generika Group back in 2015, following its partnership with the Ferrer family. The company has since targeted to increase its network to 1,000 stores by 2020, from its current portfolio of more than 800 stores.
AC President and Chief Operating Officer Fernando Zobel de Ayala earlier said that they invested in the Generika drugstore since generic medicines provide Filipinos up to 80% savings versus branded equivalents, allowing better access to communities.
AC Health also manages FamilyDoc clinics, which is seen to have 100 clinics by next year from more than 50 locations by end-2018. The company acquired a 75% stake in Negros Grace Pharmacy, Inc. last year, expanding its footprint in Visayas.
The company has previously invested in technologies related to the health care industry. This includes health app called Aide, which allows patients to book medical professionals who can provide services at home, as well as online pharmacy MedGrocer.
AC’s net income attributable to the parent went up by five percent to P31.8 billion in 2018, driven by its property, telco, and energy units. Revenues for the group stood at P274.88 billion, 13% higher year on year.
Shares in AC gained 0.6% or P5.50 to close at P925.50 each at the stock exchange on Thursday.

Sex, lies and video: K-pop world rocked by sex scandals

SEOUL — South Korea police were due to question two K-pop stars on Thursday over allegations of sex tapes, secret chat about rape, and deals facilitated by prostitutes, in a sex scandal that has rocked South Korea’s music world and hit entertainment stocks.
The allegations against the boyish stars who epitomize an industry that has put South Korean pop culture on the global stage has triggered a blame game with accusations the business has neglected young stars’ morality in the lust for fame and fortune.
Singer Lee Seung-hyun, better known by the stage name Seungri, said on Monday he was leaving the entertainment industry to fight accusations he paid for prostitutes for foreign businessmen to drum up investment in his business.
Police have said the 28-year-old singer is suspected of what is known as “sexual bribery.”
Lee, a member of the group BIGBANG and nicknamed South Korea’s “Great Gatsby” for his lavish lifestyle, denies any wrongdoing.
“Seungri has never provided prostitutes,” his lawyer, Son Byoung-ho, told Reuters.
Lee is due to appear at a Seoul police station on Thursday for questioning.
Another singer and TV celebrity, Jung Joon-young, is also in trouble.
Jung admitted on Wednesday to having shared videos he secretly took while having sex with women. Police are investigating.
Jung’s agency, MAKEUS Entertainment, has terminated his contract and he has been barred from leaving the country while police question him over suspicion he distributed the videos.
Lawyers for Jung could not be reached for comment.
Lee and Jung were both members of online chat groups where secret sex tapes were shared, and men joked about drugging and raping women, according to the broadcaster SBS.
K-pop had largely escaped scandals as South Korea’s anti-sexual harassment #MeToo movement ensnared political, sports, and other figures.
But that’s clearly changing.
‘WALKING TIME BOMB’
Industry commentators have taken aim at the business managers, notorious for demanding the strictest of training regimes and controlling every aspect of young stars’ lives.
The focus on finding the winning song and dance formula came at the cost of the performers’ “moral education,” said entertainment commentator Ha Jae-keun, adding that many companies covered up problems until it was too late.
“If the agencies do not give sufficient care to their stars, including education and stress management, they will end up raising walking time bombs,” said another industry commentator, Kim Sung-soo.
The South Korean public is demanding action and selling shares in the industry.
A petition calling on the president to crack down on predatory and corrupt practices the scandals have exposed has gathered more than 200,000 signatures.
Shares of Lee’s agency, YG Entertainment, fell more than 20% after his sex bribery scandal was first reported on Feb. 26, while shares of other top music companies have also taken hits.
YG said on Wednesday it would terminate Lee’s contract at his request. A company source told Reuters the future of BIGBANG as a group had not been decided.
But some fans are already walking away.
“What a scumbag. I am ashamed to say I used to be a BIGBANG fan,” said Jenny Eusden, an English teacher in South Korea.
“I just want people to know this is not OK.”
Kaori Kuwabara, a 52-year-old Japanese fan of BIGBANG said YG Entertainment should explain.
“My friends told me that I should stop being a fan of K-pop,” she said as she waited outside the company’s office in Seoul, hoping to put her demand for answers to company officials. — Reuters

1...9,8159,8169,817...12,820Page 9,816 of 12,820
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube