CCCI expects to start over on Cebu ecozone bill: head

By Debra Magallon-Estero



FOLLOWING the cancellation of the public hearing of House Bill 1319, which seeks to create the Cebu Economic Development Zone (CEDZ), the Cebu Chamber of Commerce and Industry (CCCI) believes there is no longer enough time to push for the passage of the bill under the present administration.

“We’ll have to start all over again with some amendments,” said CCCI president Samuel Chioson after admitting that the remaining time available until the 14th Congress goes on recess on Feb. 5, is “no longer workable,” especially when HB 1319 is not among the priority bills that the Senate wants to push.

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Legislators will resume sessions as the 15th Congress in June under a new administration following the May elections.

The House Bill is now pending before the Senate Committee of Economic Affairs chaired by Sen. Pia Cayetano after it was passed in the House on Feb. 24, 2009 and transmitted to the Senate on Feb. 26, 2009.

Should the CEDZ bill fail to make it through the Senate, Chioson said it will be the second time that the bill will be re-filed.

The CEDZ bill was born out of researches made by the CCCI economic zone study group formed in April 2006 under the leadership of then CCCI president Francis Monera.

CCCI said the creation of an economic zone out of the whole Cebu Province would make the province a self-sustaining industrial, commercial and investment center.

A year later, in July 2007, eight Cebuano congressmen collectively filed House Bill 1319.

At the same time, Rep. Eduardo Gullas (Cebu, 1st district) also filed House Bill 14, which creates the Cebu Economic Development Zone Authority (Cedza).

Chioson also said that considering this development, the chamber is now again studying what particular amendments to the bill will be made.

Former chamber president Anastacio Muntuerto Jr. now sits as the chairman of the CCCI core group that will be studying the potential changes that can be included once the CEDZ bill is re-filed.

Much to expect in 2010

Written by Margaret Jao-Grey / Not Business as Usual

Sunday, 03 January 2010 20:32

There’s much to expect this year. Here are a few: • Expect cheaper goods from China with the implementation of the China-Asean Free Trade Agreement. Basically, this means that China and the five founding members of Asean, one of which is the Philippines, will allow the free trade (read: zero tariff) on  7,000 commodities or 90 percent of goods traded with China for the next three years. The other Asean countries will share the same benefits only in 2013. Okay, okay, so China isn’t including what it considers sensitive products such as textiles and electronics. This also means China will give Asean companies preferential access into China’s services market (read: think tourism, English teaching as well as ecomedical and retirement care services). • Expect a realignment in the country’s top largest banks with the entry of the soon-to-be-merged Philippine National Bank and Allied Bank. Said another way, one of the country’s current top three banks will have to move down at least one notch. The current largest banks in the bank at the moment are Banco de Oro (BDO) Universal Bank, Bank of the Philippine Islands (BPI) and Metropolitan Bank and Trust Co. (Metrobank). BDO is majority owned by Henry Sy, the country’s richest man; BPI is owned by the Zobel de Ayala family, whose patriarch—Jaime Zobel de Ayala—is the country’s second-richest man; Metrobank is controlled by George S.K. Ty; while PNB-Allied is owned by Lucio Tan. • Expect more capital market activity with the implementation of the Personal Equity Retirement Account (Pera) Law. Naturally, government financial institutions (GFI) such as the Development Bank of the Philippines and Land Bank of the Philippines will be at the forefront of Pera. Basically acknowledging that current pension funds—the Social Security System for private employees and the Government Service Insurance System for public employees—will not generate enough for retirees to live comfortably by, Pera is a savings investment alternative that individuals, including overseas Filpino workers, can  use to save and put away money for their future or retirement. The maximum annual contribution for an individual is P100,000 and for overseas Filipino workers, P200,000. The minimum investment holding period is five years. Aside from GFIs, other government agencies can be accredited as administrators of Pera funds too. • Expect public schools to teach some subjects in the regional dialect rather than in English as part of the Department of Education’s pilot lingua franca program. This means schoolchildren in the Ilocos region to be taught in Ilokano and the children in the Visayas to be taught in Cebuano, using instructional materials in major regional dialects starting June. By using the language they use at home, it is hoped that children will learn more and will stay in school instead of dropping out. • Expect a lot more construction work (read: more jobs, more suppliers) with about P530 billion in still-unreleased funds that has been programmed in the 2010-2013 budgets. This amount is for the implementation of 71 projects worth P131 billion and for the civil works of 39 projects worth almost P400 billion—most of which are still in the preconstruction stage. These are, of course, on top of new projects listed in the 2010 national budget.

Pre-need firms see ‘brighter days’ with passage of law

Companies

Written by Miguel Camus / Reporter

Sunday, 03 January 2010 20:34

The passage of a new law that will govern the operations of pre-need companies—and impose sanctions on erring firms—is being hailed by industry players as the start of “brighter days” for the sector. On December 4, President Arroyo signed into law Republic Act 9829, also known as the Pre-Need Code of the Philippines. Federation of Pre-Need Plan Companies Inc. (FPPCI) president Caesar T. Michelena believes that the pre-need business—which suffered a string of controversies since 2005—is on the road to recovery. “The Pre-Need Law provides stability to the industry because it legitimizes and puts into place the necessary measures needed by the industry, Michelena said in a statement, as he noted that the law will lay to rest fears of instability in the pre-need industry. The code seeks to protect planholders and ensure the viability of an industry that has been weakened by a spate of bankruptcies and failures fueled by the worldwide economic slowdown. Sales of the industry have been on a downward trend for the past four years due to loss of investor confidence. A key provision in the law is the transfer of regulatory jurisdiction over pre-need firms from the Securities and Exchange Commission to the Insurance Commission (IC). Michelena said the federation welcomes the transfer of regulatory jurisdiction to the IC, pointing out that the latter is more technically qualified to oversee the operations of the multibillion-peso industry. Among the other notable provisions of the law is the adoption of the fit and proper rule which gives the IC the power to prescribe the qualifications and disqualification of directors of pre-need companies. To avoid conflicts of interest, the code prohibits directors and their relatives within the fourth degree of consanguinity in their personal capacity to have direct or indirect investments in excess of P5 million in any corporation or undertaking in which the pre-need firm’s trust has an investment. To safeguard the interest of planholders, no part of the assets in the pre-need firm’s trust fund can be used for any purpose other than for the exclusivebenefit of investors. To ensure the delivery of the guaranteed benefits and services of a pre-need plan contract, a trust fund will be established for every plan category. A portion of the installment payment will be deposited by the pre-need company in the trust fund, the amount of which will be based on a viability study of the pre-need plan. The law states that pre-need companies must have a minimum paidup capital of P100 million to lessen the risk of instability. The code also imposes strong criminal and administrative penalties on directors and officers for self-dealing and conflict of interest transactions. “No pre-need company shall refuse, without just cause, to pay or settle claims arising under coverages provided by its plans nor shall any such company engage in unfair claim settlement practices,” the law states. In case the insolvency or bankruptcy is a mere coverup for fraud or illegality, the planholder may institute the legal action directly against the officers and/or controlling owners of the pre-need company. For transparency, a pre-need firms is required to publish in two newspapers of general circulation a full synopsis of its annual financial statements, including the trust fund annual statement showing fully the conditions of its business, and setting forth its resources and liabilities in a standardized format to be designed by the IC. The code also requires disclosure of the investment of the company’s trust fund.

Atiga for Asean-6

Written by Estrella Torres / Reporter

Sunday, 03 January 2010 21:41

SIX member-countries of the Association of Southeast Asian Nations (Asean) can now trade 99.11 percent of all their products across their borders at zero tariffs, with 7,881 tariff lines having gone down to zero rates beginning on January 1 under their regional trade deal. The Asean secretariat in Jakarta announced these countries are the Philippines, Brunei, Indonesia, Malaysia, Singapore and Thailand—the founding members—bringing the total tariff lines traded to 54,457 or 99.11 percent. The tariff regime for Asean-6 is part of the Common Effective Preferential Tariffs for the Asean Free Trade Area (CEPT-Afta) signed in 1993. The deal, now known as the Asean Trade in Goods (Atiga), was amended in November 2007, implementation beginning this month. Dr. Surin Pitsuwan, Asean secretary-general, said the tariff elimination by Asean-6 is part of the members’ commitment to fully open intra-Asean trade and that it is also a step toward establishment of a single market economy by 2015 under the Asean Economic Community (AEC) Blueprint. He said the actual impact and how much this final installment will be translated into savings for consumers depends on the market dynamics of the respective countries. “We sincerely hope that all parties will act to ensure that the man on the street will benefit from these reductions in tariffs.”   He assured downstream producers they stand to gain in the tariff regime. “Lower cost of inputs will allow the business community a wider choice of goods, and in the process, they will move toward becoming more competitive globally, as envisaged in the AEC Blueprint.” With the tariff reduction, the average tariff rate for these six countries is expected to further decrease from 0.79 percent last year to just 0.05 percent this year. In 2008, intra-Asean import value of commodities for these 7,881 tariff lines amounted to $22.66 billion or 11.84 percent of Asean-6 import value within the bloc. The tariff lines newly covered include final consumer products such as air conditioners, chili, fish and soya sauces; as well as intermediate materials such as motorcycle components and car cylinders, iron and steel, plastics, machinery and mechanical appliances, chemicals, prepared foodstuff, paper, cement, ceramic and glass. The Atiga allows tariffs to be reduced to zero only in 2015 for the remaining four member-countries—Cambodia, Laos, Burma (Myanmar) and Vietnam.  This year, these four members will see tariff reductions under the CEPT-Afta commitments to 5 percent, where the average tariff rate will decrease from 3 percent in 2009 to 2.61 percent. Meanwhile, Surin said Asean is now working to formulate streamlined and simplified customs procedures for clearance of goods and eliminating nontariff measures. Surin said the regional bloc also seeks to establish a better intellectual-property rights (IPR) regime as well as the removal of all the hurdles to the movement of professionals and skilled workers across the region.

Vista Land starts 2010 with residential condo milestones

(The Philippine Star) Updated January 03, 2010 12:00 AM

WIL Tower behind ABS-CBN will be Vista Residences anchor project in 2010.
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MANILA, Philippines - Property holding company Vista Land and Lifescapes, the country’s largest home builder which has built more than 200,000 homes, starts 2010 with the consolidation of its residential condominium projects under a new brand name, Vista Residences.

Demonstrating dynamism and efficiency, Vista Residences is set to accomplish a series of milestones early in 2010, with four of its projects to be topped off in January and February, consisting of Mosaic in Greenbelt, Avant at the Fort, the first tower of Laureano di Trevi on Chino Roces in Makati, and Crown Tower in Manila. A fifth project, WIL Tower in Quezon City, will be launched shortly with its site excavation already underway. Recently, the first tower of another project, Symphony in Quezon City, was topped off in November 2009. Still another development, Madison Place also in Quezon City, was presented and turned over to buyers in December 2009.

“Vista Land debuted in residential condos only in 2006. After three short years, it takes pride in its line-up of 11 condo projects that are now completed, under construction

, or expected to rise in the near future,” said company president and CEO Jing Serrano.

“Bringing all these projects under Vista Residences, as a corporate brand name, is a timely move signifying our commitment to assume a leading role in residential condo development. With brand consolidation, our residential condo projects will have a clearer and stronger market identity, projecting the size and scale of our offerings. Vista Land will be better positioned to penetrate the residential condo segment,” Serrano added.

“Even as all Vista Land projects in various property segments are ongoing full-blast, residential condos are becoming increasingly attractive to the market. This segment will continue to be a key growth area in the medium term, and Vista Land is well-situated to address rising demand,” Serrano said.

Strategic locations of Vista Residences

Makati. At present, Vista Residences is offering four condominium developments in Makati: Mosaic in Greenbelt , which is the group’s first residential condo; KL Mosaic in Legaspi Village , now under construction; and Laureano de Trevi across Don Bosco on Chino Roces, with its first tower just about completed. The group has also penetrated Salcedo Village with The Gallery along LP Leviste St.

Quezon City. Adding their silhouettes to the Quezon City skyline are four developments of Vista Residences: Symphony Towers behind the GMA compound; Pine Crest in New Manila, which is undergoing construction; Madison Place in Cubao; and WIL Tower behind ABS-CBN, which will be Vista Residences’ anchor project in 2010, the brand’s latest development to be launched.

Ortigas. In the vibrant Ortigas Business District, Vista Residences is the first to offer both office and residential units with the Currency on Julia Vargas Ave.

Bonifacio Global City. Availing of new opportunities in areas where condo developments are increasingly a winning proposition, Vista Residences has Avant at the Fort in Bonifacio Global City, set to top off this month.

Manila. Addressing the growing needs of halfway homes for students, the Crown Tower at the University Belt in Manila is also in the advanced phase of construction.

Housing expertise applied to residential condos

“Vista Land brings to residential condo developments our expertise and track record accumulated from building the most number of homes among all the country’s real estate

companies,” Serrano said.

“We know how to make condos that are not only aesthetically rewarding but perhaps, more importantly, are also “homey”, so buyers will appreciate that they are designed to be lived in, providing comfort and enduring value. A key aspect is our wealth of experience in planning the use of space, so that despite limitations, it is maximized for functional and comfortable living.” she explained.

Competitive value

With its participation in various residential segments ranging from entry level to high-end projects, Vista Land ‘s total portfolio consists of 127 projects nationwide, located in 18 provinces and 42 cities and municipalities, its sheer number and geographical spread of existing developments unmatched by any other property developer in the country.

More than 60 percent of Vista Land buyers are overseas Filipino workers (OFWs), with markedly greater ability than the rest of the population to amortize home acquisitions, and who have consistently patronized Vista land projects over the past several years. Given that it has the widest product range and owns the most geographically diverse properties

in the industry, Vista Land is able to offer projects to families of OFWs in areas of the country where its competitors have no presence. At the same time, Vista Land ‘s development locations correspond closely with the geographical distribution of OFWs.

Most recently, a report by Leo Venezuela of CLSA Asia-Pacific Markets released in November, 2009 said that Vista Land stock has the highest potential upside based on a price target of P3.54 over the next 12 months.

Similarly, a report by analyst Gilbert Lopez of Credit Suisse released in October, 2009 maintained an “Outperform” rating of Vista Land . An “Outperform” rating is given if the analyst believes that the stock’s total return is expected to exceed the industry average by at least 10 - 15 percent or more, depending on perceived risk, over the next 12 months. The Credit Suisse report also stated a potential upside based on a price target of P3.63. The report said that Vista Land remains the most attractively valued among property companies.

“Proceeding from its sound fundamentals as a publicly listed company, Vista Land’s initiatives in the residential condominium segment are part of a strategic direction that will generate significant value-added in the next few years for its stakeholders, specifically property buyers, shareholders and brokers. Increasing participation in the segment through the Vista Residences brand is one of our planned, concrete steps in that direction,” Serrano concluded.