June 2013 – Page 6

Kuok unit sees robust Phl sales

Economy

Jun 272013

MANILA, Philippines – The local property unit of Malaysia’s Kuok Group said it expects to sustain a healthy profit growth for the rest of the year as demand for its residential projects remains robust. At the same time, Shang Properties Inc. will put up a new residential project next year to take advantage of the booming property sector, a company official said. “We anticipate the remainder of the year to also show very robust growth because sales for One Shangri-La Place and Shang Salcedo Place are doing very well,” said Wilfred Woo, Shang Properties director and executive assistant to the chairman. He said the property firm has so far sold 82 percent of One Shangri-La Place and 22 percent of Shang Salcedo Place. In the first quarter, Shang Properties earned 20 percent more at P358.3 million while consolidated revenues surged 54.9 percent to P1.32 billion, driven by higher sales from One Shangri-La Place. One Shangri-La Place, the company’s largest development to date, is targeted for completion in 2014. It comprises twin skyscrapers housing 1,304 units above the six-level Shangri-La Plaza mall. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 One Shangri-La Place is expected to be completely sold out in the next six to eight months while existing inventory for Shang Salcedo Place will be sold in the next 24 months. The 64-story Shang Salcedo Place is located on a 3,045-square meter lot in Makati’s Salcedo Village. Estimated to cost around P5 billion, the project offers a total of Read More …

PAL beats PSE deadline on 10% public float rule

Economy

Jun 272013

PAL beats PSE deadline on 10% public float rule

MANILA, Philippines – The parent firm of flag carrier Philippine Airlines (PAL) – jointly owned by taipan Lucio Tan and diversified conglomerate San Miguel Corp. (SMC) – has complied with the 10-percent minimum public float requirement of the Philippine Stock Exchange (PSE). In a disclosure, PAL Holdings Inc. assistant corporate secretary Ma. Cecilia Pesayco said the company has issued 2.415 billion common shares with a par value of P1 per share, or a total consideration of P2.415 billion to certain investors via private placement. Pesayco said the total amount of the transaction was placed at P2.415 billion or about 34.5 percent of the planned P7- billion increase in the company’s authorized capital to P30 billion from P23 billion. The PSE suspended the trading of seven firms including PAL Holdings last January due to their failure to meet the required minimum public ownership level of 10 percent. It has given these companies until the end of the month to comply with the public float requirement otherwise they would be delisted from the bourse. PAL has a public float of just 0.55 percent. With the private placement, the company’s public float is now over 10 percent. PAL Holdings is seeking the green light from the Securities and Exchange Commission (SEC) to beef up its capital stock to comply with PSE’s minimum public ownership requirement. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Pesayco said the additional capital would be sold to investors to comply with the 10-percent minimum public ownership set Read More …

JG Summit allots record $1.03 B for capex

Economy

Jun 272013

JG Summit allots record $1.03 B for capex

MANILA, Philippines – Tycoon John Gokongwei’s investment vehicle JG Summit Holdings Inc. is jacking up its capital spending to a record $1.03 billion this year to support the expansion program of its operating units. Bulk of the capital expenditures would be taken up by property unit Robinsons Land Corp. (RLC) to take advantage of the property boom. “Capital spending for 2013 is budgeted to reach over $1 billion with RLC accounting for the biggest share of 31 percent or $320 million,” JG Summit president and chief operating officer Lance Y. Gokongwei said during the company’s annual stockholders meeting. Gokongwei said it would be the largest capital spending of JG Summit thus far. Last year, the conglomerate spent $926 million for the expansion program of its subsidiaries. Gokongwei said RLC would build four new shopping malls, two office buildings and three Go Hotels. It would also support the completion of at least eight condominium buildings. Airline firm Cebu Air Inc., which owns and operates budget carrier Cebu Pacific, would take up $275 million for the acquisition of five new Airbus aircraft as it lines up new routes. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Snacks and beverage giant Universal Robina Corp. would spend $120 million while JG Summit Petrochemicals Corp. is backed by $300 million in capital. “We are gaining traction for our food products in other countries such as Malaysia, Singapore, China, Hong Kong and Indonesia,” Gokongwei said. JG Summit would start commissioning its naphtha cracker plant late Read More …

Tiger Airways sets massive Phl refleeting

Economy

Jun 272013

Tiger Airways sets massive Phl refleeting

MANILA, Philippines – Low-cost carrier Tiger Airways Philippines, a unit of Singapore’s Tiger Airways, is undertaking a massive re-fleeting program as it initially intends to triple its revenues and increase its market share in the local aviation industry starting this year. Tiger Airways Philippines president and chief executive officer Olive Ramos said in a press conference yesterday that the budget airline intends to beef up its existing fleet of five aircraft to 25 within the next three to five years. Ramos said the airline would acquire at least three to four aircraft per year over the next three to five years as it intends to increase its flights to existing destinations and mount flights to more destinations. She pointed out that the airline would lease the additional aircraft as part of its existing model instead of acquiring new aircraft. “It is normally our business practice to lease aircraft rather than be trapped in huge investments,” she added. Tiger Airways Philippines has an existing fleet of three Airbus A320s with a seating capacity of 180 and two A319s with a capacity of 140 or about 10 to 20 seats less than competitors to offer passengers more leg room. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Funds for the re-fleeting program, she explained, would come from internally-generated funds. The additional aircraft would be used mainly for regional as well as domestic routes. This year, Ramos said the airline has earmarked $15 million for its working capital. She revealed that the Read More …

The state of our nation

Economy

Jun 272013

Last June 19, Francis Estrada, former president of the Asian Institute of Management (AIM), spoke before the Financial Executives Institute of the Philippines (FINEX). It was vintage Francis… incisive and to the point. He talked about the Philippines today… what is right with it… what are the challenges. I have served in a board of judges with Francis to help select the Employer of the Year some years ago. I respected his insights during our discussions. Going through the text of his Finex speech, I think Francis has pre-empted P-Noy’s SONA, assuming P-Noy’s Palace staff is capable of such analysis. I will liberally pick up whole chunks from Francis’s speech because that is the only way the reader can appreciate his message. I hope the President will skip the good news part covered by Francis and just go on to the second part about the challenges. Most of the good part was due to external factors anyway. What the nation must know is how P-Noy intends to meet the challenges in the remaining three years of his term. P-Noy’s SONA must deliver a strong message that he has not given up delivering the infra projects that his DOTC officials no longer care to deliver. Francis opened his speech declaring that “we live in dangerous times.” But he also pointed out that “in an unstable global economy, conventional economic metrics suggest that the Philippines has never been stronger.” Business ( Article MRec ), pagematch: 1, sectionmatch: 1 These are the good Read More …

Aquino OKs 6 PPP projects worth P76.5 B

Economy

Jun 272013

MANILA, Philippines – President Aquino approved on Wednesday six public-private partnership projects with a combined total of P76.5 billion among five government agencies, but two of the National Economic Development Authority-approved projects carried “conditions.” The P27.5-billion proposed Philippine Rural Development Program of the Agriculture department under Secretary Proceso Alcala was put on hold, and so was the P5.9-billion Philippine Ports and Coast Guard Capability Development project of the DOTC. The project from the office of Transportation Secretary Emilio Joseph Abaya was for the procurement of four brand new 24-meter patrol boats and one 82-meter patrol boat that would be used by the Philippine Coast Guard, an agency under the DOTC. The rural development project under the Department of Agriculture was for increasing “farm and fishery productivity in 16 targeted regions and 80 provinces all over the country, thru “adoption and integration of climate-smart agricultural support.” Among the four approved NEDA projects that the government’s Investment Coordination Committee endorsed were from the Departments of Energy (DOE), Education (DepEd) and Public Works and Highways (DPWH). There were two DPWH projects – the P6.7-billion post-Ondoy and Pepeng short-term infrastructure rehabilitation project and P5.5-billion Phase II of the Pasig-Marikina River Channel Improvement project. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The two others were from DOE’s P21.6-billion market transformation thru energy-efficient e-vehicles and DepEd’s P9.4-billion Basic Education Sector Transformation, giving focus on “improving teaching and learning” and “strengthening systems.” All in all, the six projects have a combined value of P76.5 billion. Read More …

Stocks extend rally as global markets recover

Economy

Jun 272013

Stocks extend rally as global markets recover

MANILA, Philippines – Hefty recoveries in global and regional markets spread to the local bourse yesterday, allowing the main index to rally for the second straight day en route to returning to the 6,300 level. The Philippine Stock Exchange index climbed 3.42 percent or 209.06 points to end at 6,328, while the broader All Shares index jumped 3.14 percent or 117.94 points to 3,877.61. Justino Calaycay Jr., an analyst at Accord Capital Equities Corp., said investors kept an eye on overseas development amid lack of market-moving news locally. “With share prices in Europe posting decent gains and US stocks extending a triple-digit advance to day two, local counters joined its regional peers in the green,” Calaycay said. On Wednesday, Wall St. rose for the second straight day on the back of a downward adjustment in US first quarter economic growth, which might prompt the Federal Reserve to keep its stimulus program longer. The Dow Jones industrial average picked up one percent or 149.83 points to 14,910.14 while the broader Standard & Poor’s 500 index gained one percent or 15.23 points to 1,603.26. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 In regional markets, Japan’s Nikkei 225 added 2.96 percent or 379.54 points to 13,213.55 while Hong Kong’s Hang Seng index inched up 0.52 percent or 104.80 points to 20,443.35 on easing worries over the credit crunch in China. Locally, all counters were in positive territory, led by holding firms that rallied 4.15 percent or 225.81 points to 5,669.50.

Phl needs $600-M investment for energy efficiency, says ADB

Economy

Jun 272013

Phl needs $600-M investment for energy efficiency, says ADB

MANILA, Philippines – The Asian Development Bank (ADB) is eyeing to accelerate investments in end-user energy efficiency to help Asia Pacific economies meet the growing demand for power. At the 8th Asia Clean Energy Forum organized by the ADB, Bindu Lohani, ADB vice-president for knowledge management and sustainable development, said the Philippines needs $601 million in investments for energy efficiency from now up to 2020. He said there is huge potential for saving energy by making buildings, vehicles, machinery and water pumps more energy efficient to the benefit of consumers and the environment, and the time is right for ADB to do more in the area. “We want to promote demand-side energy efficiency through public and private sector partnership with ADB taking a lead role in providing customized policy advisory services, technical assistance and innovate financing support in developing member countries,” Lohani said. In a new ADB study, the multilateral lender noted the booming demand for power in developing Asia. In the study, the ADB said the region’s share in primary global energy consumption is set to rise to 56 percent in 2035 from only 34 percent in 2010. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 By then, the ADB said most Asian countries will produce less than half of the energy they need, forcing substantial fuel imports. The ADB study said if governments push for more energy efficiency investments, there would be less need to build power plants. This would free up government funds for spending elsewhere. Read More …

Public service

Economy

Jun 272013

Having just returned from an extended trip abroad, I am shocked at the headlines regarding Department of Labor personnel accused of “sex for fly”. Even assuming they are guilty, I hasten to confirm that those instances are the exception rather than the rule. It may not be as newsworthy but there are individuals who have served the nation with dignity and commitment to excellence which greatly outnumber the sorry lot that give public service a bad name. I would like to cite two examples of individuals who have made immense contribution to our national interest and yet have managed to keep under the radar despite their very senior positions in government and the private sector. Tomas I. Alcantara He cannot be categorized as a career public servant although he continued to serve the public interest long after his brief stint in government. Tommy belongs to a prosperous Davao family. He graduated from Ateneo de Manila, went to Harvard for his MBA and then to Columbia for an Advanced Management Program. He then went into private business as was expected of him. In 1986, he was invited to join the government of President Cory Aquino as undersecretary of Trade and Industry, a position he occupied for nine years. I first met him in 1992 when I was in DFA. He impressed me as a driven individual, politely aggressive but fiercely stubborn if prevented from getting the job done. During my first trip to Japan, he volunteered to join my delegation. It Read More …

Solicitor General: Drug case belatedly filed should still keep suspect jailed

News

Jun 272013

Solicitor General: Drug case belatedly filed should still keep suspect jailed

The Office of the Solicitor General has insisted that a drug suspect who has been incarcerated for the past five years without formal charges, until recently, should remain behind bars. In a petition filed with the Supreme Court, the OSG, which represents the government in cases, asked that a recent Court of Appeals ruling ordering the release of Joan Urbina be reversed. Urbina and her boyfriend Ben Bryan Chua were arrested in December 2007 for alleged use of illegal drugs and possession of drug paraphernalia, in violation of the Comprehensive Dangerous Drugs Act of 2002. In January 2008, the Quezon City Prosecutor’s Office dismissed the drug complaints against Chua for lack of evidence, while those against Urbina remained and were forwarded to the Department of Justice for automatic review. She was locked up at the Philippine Custodial Center in Camp Crame. It took the DOJ five years to finally file a formal complaint at the Quezon City Regional Trial Court just last May 9. In its ruling, the CA granted Urbina’s petition for the issuance of a writ of habeas corpus and struck down the drug case filed against Urbina for being lodged way too late. “The Information filed before the Regional Trial Court of Quezon City, Branch 227 is hereby declared null and void for having been filed way beyond the period prescribed under pertinent rules of the Department of Justice,” the CA said in its 18-page ruling penned by Associate Justice Noel Tijam. In its petition with the Read More …

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