New company makes standard on microlending in PHL

Thursday, 24 May 2012 20:28 Jun Vallecera / Reporter

A GROUP of investors from California’s Silicon Valley has invested $8 million, more or less P350 million in local currency, in a homegrown company engaged in micro lending.

The money finances the lending activities of Lenddo Philippines, a start-up company that harnesses the power of internet-savvy Filipinos as financial consumer.

As lender, Lenddo extends loans as low as P5,000 up to P45,000 to anyone with a job, has online access and whose character make-up is such that others in a network can vouch for his capacity to pay.

Because everything in online and the default rate mirrors that posted by bricks-and-mortar micro lenders, Lenddo is able to pass on these cost savings in the form of very low interest rates on its loans.

According to Richard Eldridge, Lenddo co-founder and its chief executive officer, loans typically costs 0.99 percent up to 2.49 percent a month.

The typical neighborhood loan shark dishes out loans costing five to seven percent a month by comparison, Eldridge said.

Because these are in essence micro loans, terms mature in one, three, six months and up to one year.

 Eldridge said nine-month loans are typical and may be drawn for educational, medical and home-repair purposes.

A typical borrower is an employee with a monthly income of more or less P25,000 and with a network of friends, co-workers and family whose individual credit score affects everyone in the network.

The Lenddo lending model is based on network, in which one asks to be admitted to an online group of members whose behavior as borrower impacts the credit score of everyone in the group.

A borrower who slips up and forgets to pay on time immediately lowers the credit score of everyone in the group and this acts as a social lever for the borrower to pay up at once.

Eldridge said his investors include Accel Partners, Blumberg Capital, Omidyar Network, the Montreal-based iNovia, and New York-based Metamorphic Ventures.

Also forming part of his fund source are David Kidder of Clickable.com, Scott Heiferman of MeetUp and Barry Silbert of SecondMarket.

BSP: PHL can weather Euro crisis

Thursday, 24 May 2012 20:32 Jun Vallecera / Reporter

THE Philippines was seen to weather the after-effects of an economic storm resulting from the exit of any member of the 17-nation euro zone, the local central bank, the Bangko Sentral ng Pilipinas (BSP), said on Thursday.

According to BSP Governor Amando M. Tetangco Jr., the country’s macroeconomnic underpinnings are such that the likely exit of Greece from the European Union, for instance, should not prove disruptive.

“I think we’ll be able to absorb any shock that can arise from that because we have sources of resilience we have described in the past,” Tetangco said.

A Greek exit from the euro zone was certain to affect the Philippines via its trade and foreign exchange channels but their impact should not be very damaging, he said.

“From the standpoint of the Philippines, the euro zone can be likened to a pain in your shoulders. It’s there and you can feel it, but it doesn’t cripple you,” Tetangco said.

According to Tetangco, depending on how such exit plays out and the level of uncertainty it generates among the various market players, its after-effects should be limited to a confined space.

The euro zone was not likely to disappear, its problems will remain and some fear a likely contagion, he said.

“There will be hiccups here and there, but the core economies like Germany should still do well,” he said.

Tetangco also ruled out a collapse of the euro zone economy.

He said the euro-zone accounts for more or less 16 percent of total remittances sent by millions of overseas Filipinos to families in the Philippines every year and 12 percent of the country’s export receipts.

Even the banking system has basically shrugged off the zone’s economic woes.

“Our banks continue to be stable and continue to perform well in terms of asset growth, profitability and credit quality,” Tetangco said.

Loan default rates, for instance, is low at only 2.34 percent of total loans even as loan take-outs continue to rise to fund consumption as well as productive undertakings.

What being global really means

Sunday, 29 April 2012 15:36 Angel Cabrera

TODAY’S challenges demand global leaders. But what does “global’’ really mean? The old mantra “think global, act local’’ is woefully inadequate to describe the complex realities leaders face. Truly global leaders act as bridge builders, connecting resources and talent across cultural and political boundaries as they relentlessly seek new ways of creating value.

Arizona’s Thunderbird School of Global Management, where I serve as president, has conducted a broad study to find out how best to develop global leaders. My colleagues have conducted surveys of thousands of managers around the world and interviewed dozens of successful leaders. These efforts have helped us identify three critical skill sets for effective global leadership: global mindset, global entrepreneurship and global citizenship.

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A global mindset allows leaders to connect with individuals and organizations across boundaries; an entrepreneurial spirit equips them to create value through those connections; and their citizenship drives them to make positive contributions to the communities with which they engage.

Leaders who possess a global mindset are able to interpret and decode situations from multiple, even competing points of view. They have an insatiable interest to learn about other cultures. They are knowledgeable about global economic and political issues and can grasp the complexity of international affairs. They’re also able to nurture relationships with friends and associates from around the world and have a unique ability to cultivate trust across cultural barriers.

Global leaders utilize these connections and their understanding of cultural nuance to connect people and resources in novel ways, whether their goal is to create a better or cheaper product, access a new pool of resources or serve a new market.

But, true global leaders are defined not only by their knowledge and connections, or the global opportunities they seize, but by how they contribute to the improvement of the multiple contexts in which they operate. True global leaders don’t exploit one community to benefit another. They don’t see business as a zero-sum game, but as a mechanism to bring about prosperity for everyone.

Globalization has brought unprecedented benefits to many—but not all. Hundreds of millions have escaped the dehumanizing effects of hunger and poverty. But hundreds of millions more remain trapped. Our ability to build a sustainable and inclusive world economy will depend on how well we train a new generation of global leaders.

Angel Cabrera is president of the Thunderbird School of Global Management, and president-elect of George Mason University. He is co-author, with Gregory Unruh, of Being Global: How to Think, Act, and Lead in a Transformed World.

Health-care standard in the Philippines rises; four hospitals in Metro Manila get international accreditation

Thursday, 24 May 2012 19:31 Marianne T. Escanilla / Special Features Writer

THE health-care system in the Philippines is considered generally to meet global standards, with hospitals and other medical centers in the country able to pass accreditation tests given by international organizations.

Four Philippine hospitals have been cited by Joint Commission International (JCI) for rendering the best service to Filipino patients. They are Makati Medical Center, The Medical City in Pasig City, St. Luke’s Medical Center (SLMC) in Quezon City and Chong Hua Hospital in Cebu.

The honor is a recognition of the caliber of hospital staff in the Philippines, with Filipino medical practitioners being graduates from top universities in the country and many of them having also studied in medical schools in the United States. Some of these US-educated doctors had practiced medicine in America before returning to their native country. Filipino nurses, meanwhile, are internationally competitive, with thousands of them working in many hospitals in foreign countries.

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The JCI is a medical commission that helps international health-care organizations, public-health agencies and health ministries evaluate, improve and demonstrate the quality of patient care while at the same time accommodating specific legal, religious and cultural factors in a particular country. It has been accrediting health-care organizations since 1999 and, since then, have accredited approximately 450 public and private health-care organizations in 50 countries.

Its accreditation and certification process is acknowledged  by many medical organizations as essential in ensuring a safe environment for their patients, staff and visitors. The JCI Accreditation and Certification procedure is seen as a platform to consider when choosing a hospital or a medical center.

Accreditation

Hospital accreditation is a major factor that should be considered by a patient in picking a medical institution that will provide medical care to him. It is defined by R. Rawlins (R. Rawlins, BMJ. 2001 March 17; 322(7287):674) as a public recognition by a national or international health-care accreditation body of the achievement of accreditation standards by a health-care organization, demonstrated through an independent external peer assessment of that organization’s level of performance in relation to the standards. This means that an institution accredited by a credible accreditation body possesses high standards of health-care service and patient care that add up to the reliability of the institution.

“The demand for quality in delivering health-care services has continuously risen throughout the years. Both national and international accreditation bodies have initiated quality assurance mechanisms for patients to have access to better health-care services,” Dr. Benjamin N. Alimurung, medical director of Makati Medical Center, said.

“The level of confidence and trust of patients in a hospital increases through accreditation, especially by the JCI, since it ensures that the accredited hospital not only performs evidence-based practices but also gives importance to efficiency, quality and effectiveness of health-care delivery and ensures a safe environment for the patients, staff and visitors. It would establish excellence in the delivery of health care and promote continuous quality improvement,” he added.

Makati Medical Center acquired accreditation and certification from JCI in January this year. Alimurung said the center had conducted activities on education and understanding of standards and intent of the standards. Elements of each standard were measured to prepare the hospital for the accreditation process.

“The management made sure that everybody participated in these activities. JCI standards were cascaded from the top management down to frontliners through lectures and educational materials. The activities were kept interesting as well as informative [through] inter-department games and weekly puzzles to encourage and maintain enthusiasm throughout the hospital,” he added.

These preparations by the top management and the frontliners of the hospital earned them the JCI accreditation, which is based on the latest Joint Commission International Accreditation Standards for Hospitals 4th Edition. Though this accreditation improved the already high standards that Makati Medical Center has been known for, Alimurung said the biggest beneficiary would be the patients since they are the ones being served by medical staff with clinical excellence in mind.

“It [JCI accreditation] assures the patients and their families of their involvement in the health-care process as partners. It is an opportunity for the hospital to benchmark with the best hospitals in the world granted with the same level of recognition.”

Makati Medical Center is only one of the four accredited and certified by JCI in the Philippines together with SLMC, which was accredited by the commission in 2003,  affirming that the hospital meets the highest standards for patient care and organizational management.

SLMC has been surpassing expectations in medical excellence for over a century now,  proving that its health and patient-care standards have become world-class. With astounding success anchored on five pillars of expertise-expert doctors, state-of-the-art technology, guaranteed patient safety, excellent success rate and passionate customer service, SLMC was the first hospital in the country to be accredited by the JCI.

Now with a new hospital building in Fort Bonifacio Global City, St. Luke’s is expected to reach a larger number of Filipinos who needs medical assistance. With its mission to provide outstanding outpatient care, SLMC is reputedly now the most admired hospital in the Philippines and an acknowledged leader in Asia.

Another JCI-accredited hospital in the country is The Medical City in Pasig City, a private, tertiary-care hospital, which offers impressive facilities as staging areas for the delivery of its cutting-edge health services. The hospital was first accredited by JCI in 2006 for maintaining the highest international standards of quality for health-care organizations.

It was reaccredited by the commission in 2009 and is continuing to provide the best patient care through its distinguished medical staff of 1,100 physicians, all of whom are experienced and recognized experts in their various fields of specialization.

Chong Hua Hospital in Cebu City also takes pride in being an accredited medical institution by JCI. Its patient-focused concept earned it the accreditation from the commission. Chong Hua Hospital tailors its patient care to the needs of every patient. It was the third medical institution accredited by  JCI in 2009 after The Medical City in 2006.

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In Photo: Medical institutions in the Philippines improve patient care through advance medical technology.

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PSE still pushing for REITs implementation

By Ted P. Torres (The Philippine Star) Updated May 27, 2012 12:00 AM Comments (0)

MANILA, Philippines - The continued delay in the full implementation of the Real Estate Investment Trusts (REIT) is estimated to result in lost opportunities for investments worth at least $2.4 billion.
Philippine Stock Exchange (PSE) president and chief executive officer Hans Sicat said yesterday there is a huge amount of investor interest in the product.
“We are aware of the competitive landscape, but it is quite unfortunate however that all the potential issuers have decided to defer their REIT plans indefinitely,” Sicat added in press briefing after a dialogue with regulators, investors and developers.
The amount involved was actually a conservative estimate, and that there is huge interest especially in the Asia Pacific region.
The delay in the implementation of the REIT was due to issues on the tax structure including the value-added tax (VAT), transfer taxes, and the high minimum public offer (MPO) level.
Securities and Exchange commission (SEC) Commissioner Teresita Herbosa admitted that there remains a lot of stumbling blocks. “For example, the tax issues is a disincentive,” Herbosa said.
Other members of the PSE were more irritated.
“It is frustrating, the Department of Finance did not attend,” Vivien Yuchengco PSE directress said on her way to the elevator.

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Other representatives of financial institutions said that “there was nothing new or substantial that was discussed.”
The minimum public ownership or MPO required for a REIT to be entitled to the tax incentives is at least 40 percent in the first year, which should be increased to 67 percent by the end of the 3rd year.
“The proposed increase in the MPO to 67 percent is unappealing, because this merely creates a huge market overhang,” interested parties to REIT said.
REIT issuers raised concerns on being forced to unload prospectively a significant equity stake in the REIT company as it is uncertain whether or not the domestic market may be able to absorb this in the future.
“Most of our neighboring countries only require a float of 10 to 25 percent,” the PSE chief executive said.
The Bureau of Internal Revenue (BIR) last year imposed stringent rules related to the minimum public ownership, as well as the VAT imposition, and the requirement of escrow.
Meanwhile, Sicat admitted that the Philippine model has more disincentives while the rest of the Asian nations look for more incentives.
“In some Asian countries, there is no tax on the asset transfer. In other Asian nations, they are offering more incentives to individuals rather than increasing the burden on participants,” he admitted.
Foreign investors will only look to other countries in the region for opportunities if the Philippine REIT version continues to carry a lot of unwanted weight and disincentives.
The Asia Pacific Real Estate Association (APREA) estimates that it may be billions of dollars just waiting to move in on opportunities in the Philippines.

Heritage treasures in downtown Cebu

By Bernadette A. Parco

Sunday, May 27, 2012
SOME museums in Cebu City are repositories of heritage items related to the revolution against the Spanish regime and the creation of the Autonomous Catholic Church in the Philippines, or the Iglesia Filipina Independiente (IFI).
The Rizaliana Museum at the University of Southern Philippines Foundation (USPF) Mabini campus houses the original Katipunan flag, while the IFI church has 100-year-old religious statues.


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The two museums were opened to the public last Friday night as part of the Gabii sa Kabilin (Night of Heritage), which is an annual activity aimed at promoting culture and heritage appreciation and preservation.
On display
The flag, which is over 100 years old, was mentioned in the book of Adrian Cristobal titled “The Tragedy of the Revolution.”
The book is about the life and death of Andres Bonifacio (1863-1897), founder of the Katipunan and father of the Philippine revolution.
Bonifacio, inspired by Dr. Jose Rizal’s love for country, organized the secret revolutionary society of Filipinos.
“In a private museum hangs a century-old Katipunan flag, faded with age but still bearing traces of blood spilled once upon a time for one’s beloved country,” Cristobal wrote.
The Katipunan flag, he says, contains all the elements of the different Katipunan flags weaved during the Philippine revolution against the Spanish regime.
The brownish flag bears a large multi-rayed sun with the ancient Tagalog symbol for “K” in the middle. The letters “KKK MANB” over the sun stand for Kataastassan Kagalanggalang Katipunan ng Mga Anak ng Bayan (Highest and Most Honorable Society of the Sons of the Nation). The label for the flag reads “Original KKK Flag-1896, donated by Teodora Agoncillo.”
The brochure distributed to visitors of the museum states that Rizal’s family is related to the owners of USPF. Rizal’s sister Doña Lucia married Mariano Herbosa whose granddaughter (Concepcion Herbosa) married Escolastico Duterte, the nephew of Agustin and Beatriz Jereza.
The museum also holds authentic clothes of Rizal, a complete set of memorabilia post cards, a sketchbook with Josephine Bracken as model, among others.
Old records
The IFI, or the Aglipay Church, in Cebu was established by Vicente Yap Sotto and his brother Felimon, said Rev. Fr. Josephus Salado.
Despite a fire that struck the century-old church, the congregation was able to set aside marriage, burial and baptismal records dating back to the 1920s.
Life-size religious images of Mater Dolorosa and the crucified Christ that are over 100 years old remain well-preserved.
Salado said IFI founder Fr. Gregorio Aglipay visited the church sometime in 1903 and, in the following year, Gen. Emilio Aguinaldo also visited.
Salado also said the two men had close ties as the church was formed in the beginning of the 20th century as part of the struggle against Spanish and later American forces.

Published in the Sun.Star Cebu newspaper on May 27, 2012.

FLI to develop Capitol’s land

 

By Oscar C. Pineda

Sunday, May 27, 2012
A PROPERTY the Capitol owns in Barangay Apas used to hold Cebu City’s prison. In a few years, it will host enough space for some 15,000 to 20,000 jobs, a developer said.
Cebu Gov. Gwendolyn Garcia and officials of Filinvest Land Inc. (FLI) broke ground yesterday for a P6-billion project on 1.2 hectares that belong to the Province.

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“We are bullish about Cebu and its potential,” said FLI President and Chief Executive Officer Joseph Yap.
Under the joint venture, FLI will build a four-tower business process outsourcing (BPO) complex on the property, said Yap.
“He is Joseph the dreamer, but with this great development that will provide thousands of jobs, he is Joseph the doer as well,” the governor said in her speech.
The Capitol will earn through rentals and revenue shares. It will retain ownership of the 1.2 hectares, plus all buildings, since the project is being implemented as a build-transfer-and-operate (BTO) venture.
This would reportedly mean at least P115 million a year, in shares of FLI’s earnings alone.
“FLI will operate and manage the facility (BPO towers) for a period of 25 years, with a renewal option for another 25 years,” the memorandum of agreement stated.
Yap said this will be its first BPO complex outside Metro Manila, and that the first of the four towers will be completed in May next year. All four towers will be done in five years.
It was earlier reported that the first tower will cost almost P1.8 billion and is expected to generate about 2,000 BPO jobs.
“History (in Cebu) continues to be made, especially in the field of public-private partnership,” said the governor.
Boom
The president of the Filipino-Chinese Chamber of Commerce and Industry, Filomeno Lim, also witnessed the groundbreaking and welcomed the development.
“Daghan tao ma-employ dinhi, mogasto man jud na sila (employees) sa ilang sweldo, ang economy sa Cebu motubo (This will employ thousands, whose spending will also fuel Cebu’s economy),” said Lim. The chamber he heads has more than 500 members in retail, wholesale, and food and trading businesses.
It will also attract other investors, he added.
He expressed hope that government planners will also anticipate and prepare for challenges that come with urban development, like a possible rise in squatting and crime.
The governor, for her part, said the Province owes this project to the initiative of her father, the former three-term governor and now Rep. Pablo Garcia (Cebu Province, 2nd district).
During his administration (1995-2004), the Province had donated a hectare in Barangay Kalunasan to the city for the transfer of the city jail, formerly known as the Bagong Buhay Rehabilitation Center. That transfer gave the Apas property a new lease on life, this time as a prime commercial location.
Flexibility
“This gave me the chance and flexibility to optimize Capitol’s earnings through this lot,” the governor said.
“In Cebu, we saw the beginning of a public-private partnership 22 years ago,” the former governor said. He referred to a partnership between the Ayala Group and Cebu Province that led to the Cebu Property Ventures and Development Corp.
National government officials at that time had questioned the partnership, Congressman Garcia recalled, but they yielded as there was no law that prohibited the practice.
Now, two decades later, the national leadership is encouraging PPPs, he pointed out.
Capitol is also pursuing at least two other PPP ventures: the P702-million Cebu Bulk Water Supply Project with the Manila Water Consortium and the Ciudad commercial complex with Fifth Avenue Development Corp.
It is reportedly looking for investors to develop part of the military camp in Barangay Lahug, Cebu City into an area similar to The Fort, a former Armed Forces camp in Taguig, Metro Manila.

Published in the Sun.Star Cebu newspaper on May 27, 2012.

House approves bill converting gov't hospitals into GOCCs

By Paolo Romero (The Philippine Star) Updated May 26, 2012 12:00 AM Comments (0)

MANILA, Philippines - The House committee on health approved this week the Hospital Corporatization Bill that would convert state medical institutions into government-owned and controlled corporations (GOCCs) to help them be financially self-sustaining instead of relying on subsidies.
Bacolod City Rep. Anthony Golez, vice chairman of the panel, said House Bill 6069 or “An Act Creating National Government Hospital Corporations” seeking to boost the financial health of public hospitals was passed by the committee chaired by Negros Occidental Rep. Alfredo Marañon III.
The two lawmakers are authors of the measure.
“The corporatization of government hospitals will lead to better management of funds that in turn will result to more services for poor patients,” Golez said.
“The conversion of the hospitals into corporations shall promote said hospitals to be better managed and have more opportunities to expand their income and ultimately their services and facilities. When that happens, more and better services and facilities will be provided to indigent patients. This bill is likewise in consonance and will support the health agenda of President Aquino,” he said.
Also present when the panel approved the measures was Jossel Ebesate, president of the Alliance of Health Workers.
Ebesate warned the proposed bill might affect services to the poor and the security tenure of hospital employees.
Golez however gave assurances that the bill is not for privatization but to convert the 25 state hospitals in the bill to GOCCs.
He said the measure will give the hospitals more autonomy in their management and can conduct income-generating activities that will be primarily used for indigent patients.
Iloilo Rep. Janette Garin said it would be better to corporatize these hospitals for better management and to allow them to have more funding to expand their services and reach out to the poor.
Garin and Golez both stressed that employees of the hospitals will greatly benefit from the proposed measure since there is a provision that allows such hospitals to also give bonuses to their staff.
Health Secretary Enrique Ona expressed support for the bill.
Ona, who was present during the approval of the bill, stressed that when passed into law it will maximize efficiency in the hospitals.
Sen. Franklin Drilon filed a counterpart bill in the Senate.

The Padgett Place attracts Japanese, European buyers

By Grace Melanie I. Lacamiento (The Freeman) Updated May 26, 2012 12:00 AM 

CEBU, Philippines - As the construction of its 24-story condominium structure takes into full swing, The Padgett Place boasts of its earthquake-resistant designs, attracting buyers from the country and abroad.
The Padgett Place Marketing Consultant Gladys Ceniza said that Cebu Green Peaks Development, as its developer, is getting a strong interest from the Japanese and European citizens who are eager to migrate in Cebu to eventually reside in the city or to invest in Cebu.
Noting the trauma they had during the earthquake tragedy, she said that most of the Japanese love to stay in Cebu since it is not prone to such. While the emerging industries such as the business process outsourcing sector attracts a lot of European and Indian investors, Ceniza added that the booming economic hub fuels up the real estate industry.
“The thing that attracted our Japanese buyers is the earthquake-resistant design. As our engineer described it, the building will not break down as soon as the earthquake happens. It allows safe evacuation of the residents before it collapses, causing danger to the building but not to the lives of the people,” she stated.
With G&W Architects as its designer and Duros Development Corporation as its contractor, she further said that the connection of the steel bars, solid and concrete foundation and the site in its good soil are all planned out according to the intended design.
Meanwhile, Ceniza said that after its groundbreaking last year, the construction of the condominium reached 70% of completion, reaching until the 17th floor.
For every 10 days, she added that an additional level is put in place, having three additional floors completed every month.
She said that the construction progress within the schedule signifies their commitment to keep the deadline with their buyers.
She noted that the company is targeting the inauguration of the model units by the end of June or early July, the completion of the topmost level of the structure on October 2012 and the turn-over of units and entire completion on the last quarter of 2013.
With 65% of the units sold to date, she revealed that they added two floors, having an original number of 165 units to 185.
“We don’t have studios. We have lesser units in the floor. It’s a sprawling high-rise different from what we see. It’s contemporary in design but at the same time befitting Cebu as a place of history,” Ceniza said.
With the exclusivity in a strategic location in the city, she further said that most of the prospective buyers are successful Cebu businessmen, investors, chief executives, high-end families, foreigners from the European, Indian and Japanese market.
Sitting on one-third of the 3500 square meter-property, the tower is composed of a maximum of ten units in every floor with sizes from 45 square meters to 260 square meters and prices ranging from P4.7 million to P40 million with the 2-level unit garden villas as the most expensive.
Amenities of The Padgett Place include a lot swimming pool, poolside lanai, indoor and outdoor clubhouses, jogging trails and sky gardens from the 22nd to the 26th floor. For more information contact us at 0917.3236123.  —(FREEMAN)

Phl needs to implement PPP to realize a 7% GDP growth

By Ehda M. Dagooc (The Freeman) Updated May 16, 2012 12:00 AM

CEBU, Philippines - Although the Philippine economy is strengthened by the five resiliency factors, the government has to seriously implement the Public-Private-Partnership (PPP) to realize an ideal growth of at least seven percent GDP (Gross Domestic Product) by end of this year.Economist and PhilAm Asset Management Inc (PAMI) first vice president for equity fund management Eduardo R. Banaag, Jr., said that if the PPP were to be started this year, the Philippines will surely take off in terms of economic vibrancy.
In fact, although the country is still on the “resiliency” level, it has already attracted foreign inflows that brought the stock market into consistent upward movement.
 In a recent economic briefing held at the Cebu City Marriott Hotel, Banaag mentioned the five “resiliency factors” or five truths, why the Philippines is on its way to strong economic health. First, he said the Philippines has been able to lend money worth US$250 million to International Monetary Fund (IMF) to help the struggling European government late last year.
Second, he said that the country is undoubtedly being pushed by the strong growth of the Business Process Outsourcing (BPO) sector, which is expected to be stay for a long while and will double its growth every year.
The Philippine economy is now run by two legs—BPO and OFW (Overseas Filipino Workers) remittances. Despite this consistent growth in these twin growth engines, the Philippines still has to work on implementing the economic stimulus via PPP program.
The seven percent GDP growth goal, which is described by many as “ambitious” is attainable, if within this year, real projects in PPP will be rolled out, avoiding the hassles of bureaucracy and red tape.
Thirdly, he said that the real income of Filipinos or the per-capita-income has increased by 53 percent in the last five years.
The GDP on the other hand, is increasingly growing for more than a decade without fail since 1998. Because of this, banks have one of the most capitalized. And tier-capital ratio is double the global standard.

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Lastly, the Philippine economy is founded by the strong resiliency factor, with the low interest rate phenomenon. The reason why, amortization is affordable, “banks are friendlier,” while appetite of consumers to borrow has beefed up as interest rate become much more attractive.

Despite these fundamental truth, why the Philippines has continued to cushion itself from the effect of external economic hiccup, it has make PPP as its driving force to make it to the real “growth” condition.
At present, Banaag said “growth is still not here [yet],” but the way to go there is ready.
Banaag believes that if the government will not be able implement some PPP projects this year, 2013 must be the year for full implementation.
This is for the reason, that Banaag encouraged the public, to start investing right now, saying “we have witnessed the long running streak in the Philippine stock market.”
And in at least the next five years, this trend will continue, while the capital inflows are staying for long term, not already seen as “hot money.”
Overall, he said “things are looking good” for the Philippine economy in the long term. The Philippines, in fact, is now considered as one of the most expensive market for equity price.
He said the market now moves with earnings, not dependent on rating upgrade. “We are now experiencing years of positive returns.” (FREEMAN)

Phl banking sector braces to sustain healthy system

Click here

By Ehda M. Dagooc (The Freeman) Updated May 22, 2012 12:00 AM 

CEBU, Philippines - While the Philippine banking and financial system is regarded as one of the strongest in the world, players are up to protect its strength in order not to fall in the pit of “complacency”.Bankers Association of the Philippines (BAP) announced its three-point agenda to cushion the country’s healthy financial system, from outside poison and other factors that may contaminate its strength and vigor.
BAP president Alberto S. Villarosa said the players in the Philippine banking system is addressing the capital and liquidity issues, specifically in hitting a “basel 3” level, saying one of the ingredients in achieving economic success is to develop a good and strong capital market.
Second, he said BAP members are also committed to improve banking governance, including transparency, among others. At present, Villarosa said, despite its strength the industry still has to improve its governance.
Thirdly, the banking players in the Philippines are also strengthening its “risk management” program.
“Although, we are already regarded as very strong, But we can’t say that we are already there. When everything seems going right and we let our guards down—it is when we have to start being alert,” said Villarosa in his recent visit to Cebu, as the BAP president.
He said the players in the banking sector in the Philippines led by the BAP is not “resting” and still on its toes despite its strength, reiterating that “black swans” happen usually during good times.
“Everybody is talking about bullishness, that’s when complacency comes in,” he said assuring that the banking sector players are “guarding their back” all the time.
Aside from good economic standing of the Philippines, Villarosa attributed the strong financial health on the country’s experiences having been able to come up successfully in several crises that slapped the banking industry hardly in the past.


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While other countries like the United States, Europe are now struggling in their financial stability, Villarosa takes pride that the Philippines on the other hand is now running on the “solid ground”, although he reiterated the players’ commitment to be always on their guard.
Unlike in 2003 and 2004, when the Philippines had “credibility problems,” now he said the country is moving forward and banks are also moving forward together with the economy.
He said the banking sector is also strengthening its partnership with the government, as part of the PPP (Public-Private-Partnership) thrust of the Aquino administration.
The banks he said is now looking at releasing the excess liquidity within the system which is calculated to reach in an average amount of P1.7 trillion. This will be made available through loans and capitalization requirement across industry segment from big to micro entrepreneurs.
In fact, he said with the friendly interest rate, the banking system in the Philippines had been able to open up its arm to the market widely, having been able to post healthy growth in terms of loan portfolio.
He said the pricing of the loans right now, is at top end (in terms of corporate rate), which means that banks are extending their arms so widely, while competition to offer credit packages is too fierce.
Meanwhile, Villarosa added that along with the strong implementation of protecting the health of the strong financial system in the country, BAP is also intensifying its financial literacy education program, in order to push savings rate among Filipinos. (FREEMAN)

Maria Luisa completes 2nd largest residential project

By Grace Melanie I. Lacamiento (The Freeman) Updated May 23, 2012 12:00 AM 

CEBU, Philippines - Known as a pioneering real estate developer for gated residential communities, Maria Luisa Properties has now fully-completed the development of its second largest residential project – The Heritage.
Way back in December 2011, the company introduced its newest premier residential community situated in the rolling terrains of Jagobiao, Mandaue City, which was once the Osmeña family’s farm, Hacienda Mandaue.
The Heritage Marketing Consultant Gladys Ceniza said that the 13.6-hectare property development differs from other real estate properties since the former commonly practices pre-development selling, wherein the buyers can build their dreamhouses on the lots as soon as they want.
She added that Maria Luisa Properties General Manager Annie Osmeña-Aboitiz even described the Heritage as “what they see is what they get”.


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With the utilities and lots available and the titles clean, Ceniza further said that The Heritage boasts of its well-designed infrastructures and environment-friendly amenities such as the clubhouse, swimming pool, park, fishing pond and tree-lined streets which are already at its final stage of construction.
The 13.6 hectare development is divided into 242 lot-only offers from 250 square meters to 500 square meters and prices ranging from P2 – P5 million pesos.
She also said that the buyers’ acceptance is good, but the company is geared towards making people more aware of the development as the first phase of The Heritage is already 40% sold to date.
Selling in three phases, she added that hopefully the first phase would be fully sold out within this year, while the other two phases by 2013.
Ceniza also noted that the security, good engineering, effective drainage pipes, three access points, scenic views, fresh breeze, elevation and Palawan cherry trees can all be found in the ready-to-build residential community.
With a growing demand for gated subdivisions rather than condominiums, she said that they are already speeding up the release of the second phase and further revealed that it will soon have a portion of house-and-lots offer within this year.
With The Heritage as its latest residential project rooted in family history, Maria Luisa Properties has been branded a proud developer of its flagship development the 200-hectare Maria Luisa Estate Park, Maryville Subdivision, Maryville Heights, Casili Hills Subdivision, and Dancing Sun Subdivision. For more information about The Heritage, please contact us at 09173236123 | (032) 3181589  — (FREEMAN)

Gov't debt surpasses P5-T level

By Iris C. Gonzales (The Philippine Star) Updated May 23, 2012 12:00 AM 

MANILA, Philippines - The government’s debt stock surpassed the P5-trillion level in March, according to the latest data from the Bureau of the Treasury (BTr).
The national government’s debt rose to P5.088 trillion in March, 8.15 percent higher than the P4.705 trillion debt stock as of end-March 2011.
At this level, theoretically, each of the roughly 94 million Filipinos is indebted by P54,127.
The debt stock as of March 2012 was P176.23 billion or 3.59 percent higher than the end-February level of P4.912 trillion.
Of the total debt, P2.073 trillion or 40.75 percent is owed to foreign creditors while P3,015 trillion or 59.25 percent was secured from local lenders.
Domestic debt showed an increase of P188.03 billion from the recorded end-February 2012 level as the government issued more bonds that it redeemed.


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Similarly, foreign debt dropped by P11.80 billion from the previous month’s level
Officials attributed this to the depreciation of the yen and euro against the dollar which shaved off P12.78 billion from the debt stock.
On the other hand, the contingent debt of the national government, dropped to P549.50 billion from end-February level of P554.66 billion.
The contingent debt of the national government is composed mainly of guarantees issued by the government.
Officials attributed the P5.16 billion decrease in contingent debt to the combined effects of the P1.03-billion net repayments and to the depreciation of the yen and the euro against the dollar, which cut contingent debt by P5.15 billion.
The Aquino administration hopes to slash the budget deficit as a ratio of gross domestic product (GDP) to two percent in 2013 from the projected 2.6 percent this year.
This year, the deficit is projected to hit roughly P286 billion or 2.6 percent of GDP.

2013 Phl GDP forecast at 5.5%

By Lawrence Agcaoili (The Philippine Star) Updated May 23, 2012 12:00 AM

MANILA, Philippines - New York-based think tank Global Source Partners upgraded the country’s gross domestic product (GDP) growth forecast to 5.5 percent instead of five percent next year due to higher spending as well as the strong rebound in exports.
In a report, former Finance undersecretary Romeo Bernardo and economist Margarita Gonzales said the country’s GDP growth is expected to accelerate further next year on the back of higher export earnings as well as election spending.
“The outlook for next year should be better at about 5.5 percent growth, given that it is an election year and with possibly stronger export growth in view of moderate improvement in the world economy,” Bernardo and Gonzales said.
However, Global Source decided to stick to the GDP growth forecast of 4.5 percent this year due to the delay in the take off of major infrastructure programs under the public private partnership (PPP) scheme to economic growth uncertainties in advanced economies led by the US as well as the sovereign debt crisis in Europe.


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“Given the external uncertainties and the possible impact on exports and remittances, we temporarily keep our forecast at 4.5 percent this year, though taking note of strong business sector optimism and what looks to be robust domestic spending, even without the PPP,” Bernardo and Gonzales said.
Based on the latest World Economic Outlook (WEO) of the International Monetary Fund (IMF), the world GDP is expected to expand by 3.7 percent this year and 4.1 percent next year.
“Up until recently, it seemed like things were finally getting better for the world economy. But recent developments have shown how fragile the global economy really is, with troubles returning to the euro zone,” Global Source stated in the report dated May 21.
As such, the think tank retained this year’s GDP growth forecast of 4.5 percent but upgraded next year’s projection to 5.5 percent instead of five percent. “So far, the central scenario remains to be a moderately positive one about 4.5 percent growth this year and 5.5 percent the next, in our estimate-with bright private consumption and public spending as well as dark spots downside risks to the global economy and fragile export recovery,” Bernardo and Gonzales said.
Global Source said inflation is expected to ease to 3.6 percent this year before picking up to 4.5 percent next year or well within the target of three percent to five percent set by the Bangko Sentral ng Pilipinas (BSP).    

Ayala group to build P4B project

 

By Katlene O. Cacho

Sunday, May 20, 2012
AYALA Land Inc. (ALI) and affiliate Cebu Property Ventures Development Corp. (CPVDC) have earmarked P4 billion for the five-tower condominium development spread in the next four to five years at the Cebu IT Park.
A top official said the expansion of the Avida brand in Cebu was buoyed by the success of its first condominium project, Avida Towers Cebu, which has 1,045 units and was launched in 2010.

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“We had brisk sales for Avida Towers Cebu, prompting us to boost expansion with this new project, Avida Towers Riala,” said Avida Land Corp. president Christopher Maglanoc in a press briefing last Friday.

Biggest
Officials said Avida Riala, which sits on a 21,000-square meter property, will be the biggest residential development yet at the Cebu IT Park. It is located right across eBlock Tower 1, which is the home building of the American firm JPMorgan & Chase Co.
The five-tower condominium development will have a total of 3,300 units.
According to Maglanoc, the shift to a bigger residential community is due to the increasing demand for condominium properties in the area, which has a rapidly growing outsourcing sector.
Last Friday, Avida formally launched the first tower of Avida Riala, which has 621 units and 27 residential floors.
Maglanoc said the estimated project cost of Tower 1 is P800 million. It is targeted to be completed in the first quarter of 2016.
Seventy percent of Tower 1 are studio units at 23 sq. m; 20 percent are one-bedroom
units at 41 sq. m and the remaining ones are two bedroom units at 57 sq. m, with prices ranging from P1.8 million to P5.5 million.
Avida Riala project is a mixed-used development that is done in partnership with the landowners, VH Properties.
On top of the residential amenities, the company will also add shopping and dining outlets to the property and a 5,000-square meter amenity area that includes a grand lawn, lounge pool, shooting court and jogging trail.
Live, work, play
Maglanoc is confident Avida Riala would also get a similar reception as that of Avida Towers Cebu. He said Cebu has evolved into a cosmopolitan city.
“The acceptance (of the Cebu market) is already there. Given this, national players like ALI are coming here to offer condo products that are affordable to the middle-income market,” he said.
Maglanoc identified tourism, business process outsourcing and overseas remittances as key drivers that propelled the strong growth of the real estate sector, in addition to the low interest rates offered by banks.
According to CPVDC, the establishment of Avida Riala is part of its live, work and play concept. The project will complement eBloc 2 and 3 and other office buildings for the work component built within the Cebu IT Park.

Published in the Sun.Star Cebu newspaper on May 21, 2012.

Housing bill pushed

Tuesday, 15 May 2012 19:09 Tet Andolong 

 

THE Chamber of Real Estate and Builders Associations Inc. (Creba) has long been an advocate of the Department of Housing Bill, which was filed in 1993 in Congress.

The current Senate Committee on Housing, Urban Development and Resettlement led by Sen. Ferdinand R. Marcos Jr. has tirelessly deliberated upon the bill where the voice and participation of the business sector has been heard.

No less than the Housing Czar, Vice President Jejomar C. Binay, has openly acknowledged that the creation of the Housing Department is necessary to address the country’s long-term shelter needs. Yet, unfortunately, to date, the DHUD Bill remains to be passed into law.

The Housing and Urban Development Coordinating Council (HUDCC) has confirmed the staggering housing backlog of over 3.7 million units. Creba believes that addressing this problem should be a priority to reflect the country’s status as a growing economy; hence the urgent need to pass legislation that will benefit the underserved majority.

“This statistic cannot just be ignored,” said Charlie Gorayeb, Creba national president.

“Addressing the problem should be a priority to reflect the country’s status as a growing economy. [There is an] urgent need to pass legislation that will benefit the underserved majority. Creba has long been an advocate of the Department of Housing Bill, which we first championed in 1993. The bill was filed by the same personalities such as Rep. Rodolfo G. Valencia and Rep. Amado S. Bagatsing, who share our cause. Unfortunately, it remains to be passed into law. Our representatives from Congress have always approved the bill, but the Senate has consistently deferred its approval,” Gorayeb explained.

Gorayeb also shared that the latest version of the bill remains faithful to its first draft in 1993 and, essentially, the contentious issue here involves the status of the key shelter agencies (KSA) such as the National Housing Authority (NHA), the Housing and Land Use Regulatory Board (HLURB), the Home Development Mutual Fund (HDMF), the Home Guaranty Corp. (HGC) and the National Home Mortgage Finance Corp. (NHMFC).

According to the proposed housing bill, it states that the Act shall be known as the “Department of Housing and Urban Development and the National Policy shall be the policy of the State to promote social advancement, economic growth and the well-being of the Filipino people by providing the greatest possible number of homeless Filipino families adequate opportunities for affordable and decent housing pursuant to the Constitutional mandate, and ensuring the sound development of the nation’s urban communities.

“The purpose of creating the Department of Housing and Urban Development is: a) To undertake a just and comprehensive solution to the perennial housing problem; b) To ensure the optimum utilization of land resources in improving the quality of life of the Filipino people; c) To stimulate private homebuilding activity to levels that will promote and sustain economic growth and development in terms of expanded opportunities for employment, business and government revenues; d) To promote the orderly development and growth of urban and urbanizing communities nationwide; e) To ensure full coordination of various national activities which impact on housing, land use and urban development; and f) To ensure that the needs and interests of the nation’s communities and of the people who live and work therein are accorded full consideration in the formulation of national and local development plans.”

The proposed bill also seeks to retain the corporate status of KSAs, their corporate boards as well as the members of their board of trustees. They will just be under the direct supervision and control of the Department Secretary. Each agency has its own funds generated from within. The government will not have to set aside budgets for them even if the Department of Housing Bill is passed into law.

A separate housing department can also focus on a mandate of addressing issues on housing and environmental concerns. It can likewise prioritize the formulation of an effective and comprehensive national land-use plan, which is essential to the current rate of building construction and urbanization that the country is experiencing.

“We fervently hope that under the Aquino administration, both Houses can finally pass this bill so that the housing backlog can be effectively addressed and finally achieve the nation’s collective goal of providing every Filipino family, not only with a roof over their heads, but a decent home to call their own,” Gorayeb added.

Tet Andolong