Firm sets aside P4B for projects

By Katlene O. Cacho

Sunday, August 26, 2012
CEBU-BASED property developer Cebu Landmasters Inc. is setting aside P4 billion as capital expenditure budget to finance four new projects in 2013.
These four projects include a 10-hectare property in the south of Cebu and a five-hectare property in Consolacion.

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The company will also build next year Park Central, a 20-storey office condominium in Cebu IT Park, and the second tower of Baseline Residences, which will have a commercial component, on Juana Osmeña St.
“The best time to make decisions for developers to build properties and for buyers to buy homes is now,” Cebu Landmasters Inc. president and chief executive officer Jose Soberano III said in an interview on Friday.
“Strike while the iron is hot,” he said.
Soberano said the low interest rate, strong domestic liquidity, huge housing backlog and strong inflows of remittances prompted them to be aggressive in building projects in Cebu, which he described as an ideal destination for employment and education.
He said at no point in the country’s history has there been credit as “readily available to the market at low interest rates” as now.
No bubble
He said talks of a glut in the housing sector are just speculations triggered by fear, considering that the country still has “a huge backlog” in the economic and middle market segments or houses within the range of P150,000 to P3.5 million.
The Bangko Sentral ng Pilipinas (BSP) earlier said there is no basis yet to concerns that a bubble is forming in the housing market. Last week, however, the BSP said it will impose additional controls on the exposure of banks to the real estate sector.
The maximum allowable “real estate exposure” of a bank under the BSP guidelines is set at 20 percent of its total loan portfolio.
Under the new rules, even investments by banks in securities issued by property firms, housing loans to individual borrowers, and loans to support development of socialized and low-cost houses are now included in the computation of “real estate exposure.”
Soberano believes the move of BSP in imposing stringent regulations for banks in granting real estate loans is a step in the “right direction.”
“A regular review is needed on the bank’s real estate account portfolio especially its
receivables mix. We are experiencing the best of times in the real estate industry and the banks have important roles in ensuring the continued success by policing their own ranks,” Soberano said in a text message yesterday.
Cebu buyers
According to Soberano, the country still has 3.5 million underserved households nationwide, of which five percent or 175,000 are in Cebu.
Unlike other buyers in the country who buy houses or condo units for investment or multiple ownership, Soberano said 70 percent of buyers in Cebu are new or first-time owners.
“The challenge for developers now is to make their product irresistible to the market,” he said.
He also urged developers to ensure the delivery of their project, otherwise failures will affect the reputation of other industry players.
Cebu Landmasters Inc. has been in the real estate industry for eight years. Since its incorporation in 2003, the company has ventured into developing residential homes in the countryside.
In 2010, the company launched Asia Premier Residences, a 17 high-rise condominium project at the Cebu IT Park. This was followed by the 18-storey residential condo development Baseline Residences on Juana Osmeña St. last year.
Soberano said he also plans to venture into leasing commercial properties in the future.

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

2 new industries included in investment priorities plan ‘12

By Mia A. Aznar Thursday, August 30, 2012
THE new investment priorities plan (IPP) for 2012 has added two new industries in the preferred activities list.
Iron and steel and hospital and medical services have been included in the new IPP, which was approved last June.

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Activities listed in the IPP are entitled to fiscal and non-fiscal incentives such as tax holidays and waived fees from the government to entice investors to invest in such industries, said Board of Investments (BOI) Governor Gerardo Sta. Ana.
The government has scheduled a series of roadshows throughout the country to inform local business organizations and local governments about the IPP so they can do their part in promoting these sectors. The show for Central Visayas will be held in Bohol in October.
For the region, the focus will be on tourism, information technology, metalworks and processed food.
The Philippine IPP lists 13 industries in the preferred activities list, which include agriculture, agribusiness and fishery; creative industries and knowledge-based services; shipbuilding; mass housing; iron and steel; energy; infrastructure; research and development; green projects; motor vehicles; strategic projects which exhibit high social economic returns that can contribute significantly to economic development;
hospital and medical services; disaster prevention, mitigation and recovery projects.
Iron and steel covers basic iron and steel products, long steel products like billets and reinforcing steel bars and flat hot or cold rolled products.
Hospitals
As for medical and hospital services, the IPP covers establishment and operation of
primary and secondary hospitals.
Existing laws also require the government to include in the IPP those in industrial tree plantation; exploration, mining, quarrying and processing of minerals; publication or printing of books; refining, storage, marketing and distribution of petroleum products; ecological solid waste management; clean water projects; rehabilitation, self-development and self-reliance of persons with disability; renewable energy and tourism.
For tourism, the IPP covers tourism enterprises that are outside of the tourism enterprise zones (TEZ) and are engaged in tourist transport services, establishment and operation of accommodations, convention and exhibition facilities, amusement parks, adventure and ecotourism facilities, sports and recreational facilities, theme parks, health and wellness facilities, agri-tourism farms and tourism training centers. It also covers the development of retirement villages and the restoration or preservation of historical shrines, landmarks or structures.
In support of exporters, the IPP will also cover the manufacture of export products, services exports and activities.
In his message for the IPP, President Aquino said this year’s IPP plan was crafted to focus on job creation, enhanced delivery of social services, international
competitiveness and climate change mitigation and adaptation.
He said the IPP plan is a commitment to the business community that his administration wants to sustain a predictable, reliable and efficient investment landscape for the country.
In 2011, the BOI posted investment approvals of over P368 billion.

Published in the Sun.Star Cebu newspaper on August 31, 2012.

Country ‘can sustain growth’

By Katlene O. Cacho

Monday, August 27, 2012
A TOP official of an investment bank is confident the Philippines will be able to maintain its economic achievements after the country posted a strong 6.4 percent growth in the first quarter this year, the second fastest in the region after China.
Speaking before an economic forum last Friday, First Metro Investment Corp. (FMIC) president and chief executive officer Roberto Juanchito Dispo said the Philippines is well positioned to sustain its economic growth.

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“From the business standpoint, we have a high degree of optimism the country’s economic surge is going to be sustainable,” said Dispo.
Dispo gave the talk “Asia’s Capital Market Star: Can the Philippines Sustain the Momentum,” during the 3rd Financial Executives (Finex)-Cebu General Membership Meeting and The Philippines’ Resurgent Economy forum at the Cebu City Marriott Hotel.
Astonishing growth
Dispo said there is reason for optimism because the growth of Asia and its emerging markets, including the Philippines, is “astonishing.” He said Asia’s emerging markets comprise 52 percent of the world’s total economy.
Dispo said the VIP (Vietnam, Indonesia and the Philippines) acronym was coined to highlight Asian countries that remained resilient despite the economic recession in 2008-2009. After a year, economic forecasters identified three Asian countries TIP (Turkey, Indonesia and the Philippines) whose economies will be driving growth in Asia in the coming years.
Dispo said there are numerous factors that would help sustain the economic growth of the country.
He said that if the country uses its high gross international reserve (GIR), now at $76 billion, to pay for the country’s foreign debt of $63 billion, the Philippines will be a debt-free nation.
Dispo said the country has sound and stable fiscal policy and he is confident it will be able to get its credit rating upgrade by financial institutions in the second semester this year.
Overseas remittances, on the other hand, will also keep the country afloat. He pointed out that the World Bank has ranked the Philippines as the fourth largest in terms of remittances. Some 3,000 Filipinos leave the country daily to work overseas.
Dispo believes the search for “greener pastures” abroad will continue, given the demand for Filipino workers. He said countries like the Philippines, which has a rising supply of young workers, will soon run the economies of fastest-aging countries in the world like Japan and China.
“Filipino workers will be the first to be hired because they are multi-skilled,” Dispo said.
Thriving industries like business process outsourcing (BPO) and tourism will continue to be the country’s top investment attraction. He said the Philippines will need to revitalize its Philippine Economiz Zone Authorities locations and industrial zones to make it more attractive to business locators.
He said mining is expected to bring “wonders” to the country.
“The Philippines is literally sitting on top of gold,” said Dispo. The Philippines is ranked top five in the world for overall mineral reserves. The government estimates the country has at least $840 billion in gold, copper, nickel, chromite, manganese, silver and iron.
Dispo said clear policies should be put in place to maximize the industry and make it a big contributor to the national coffers to finance critical infrastructure programs.
Savings rate
Savings rate of the Philippines as percentage of GDP is growing “decent and is fast catching up” in Asia at 35 percent.
Dispo said the country needs to address some cultural defects in order for the savings rate in the country to improve. He said Filipinos spend P7 million on skin-whitening products. He also said a large amount of money is spent on text messaging and even buying “ukay-ukay” or used clothing.
When asked on the factors that would pose challenges in sustaining economic growth, Dispo cited the government’s low and slow infrastructure spending, the peso appreciation that could harm sectors like BPO, exports and remittances; and the various political reforms that can make or break the country’s current economic standing.
He, however, said, “We are confident of the new leadership and its fresh mandate and thrust on good governance.”

Published in the Sun.Star Cebu newspaper on August 28, 2012.

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Carnival vibe highlighted at the soon-to-rise Rio Tower

Tuesday, 07 August 2012 15:27

ANOTHER upscale residential development along E. Rodriguez Sr. Avenue in Quezon City is set to make condo living a richer experience. The Rio Tower, which is the third installment of Federal Land’s The Capital Towers, promises a carefree and vibrant lifestyle in the tradition of one of the world’s most festive cities.

Inspired by Brazil’s Mardi Gras city of Rio de Janeiro, the Rio Tower replicates the celebratory mood of the famous Carnival by giving homeowners, their relatives and friends continuous fun and excitement whether they are inside their luxurious condo unit or in the indoor and outdoor amenities.

“The Rio Tower, just like the Rio Carnival, is a symbol of people coming together and enjoying each other,” said Federal Land President Alfred V. Ty.

Rio has its own amenities on the seventh floor that guarantee residents and guests zero boredom. The swimming pool and poolside deck bring out the resort-type spirit by offering relaxation or serving as a party venue.

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There’s also a function room, which can accommodate a family gathering. Children can have fun all day in their own play area while adults can enjoy billiards and table tennis in the game room.  Other first-class amenities are a jogging path, gym, day-care center, commercial arcade and view deck.

Rio’s 23- to 26-sq-m studio units; 36- to 39-sq-m one-bedroom units and 41- to 42-sq-m two-bedroom units are perfectly snug and functional for startup families or professionals. Each Rio unit has a bedroom, living and dining area with laminated wood plank flooring, while the kitchen, toilet and bathrooms have ceramic tile floors.

At 42 stories tall, the Rio Tower affords high-zone residents a view of Antipolo in the east, Manila Bay in the west, northern Manila in the north and the Makati skyline in the south. There are four elevators to serve all residents. The building is also equipped with an automatic fire suppression system, fire detection alarm system, emergency power generator and sewage treatment plant.

Location enhances the Rio Tower’s festive offerings with bar-hopping and gig-watching options in the nightlife strip of nearby Tomas Morato and Timog avenues. Shopaholics also have easy access to the Gateway and Ali Mall in Cubao and the Greenhills Shopping Center in San Juan. Everything else is near, from hospitals to schools.

The Rio Tower will be the culmination of The Capital Towers, which comprises two other residential buildings perched on podiums: the Athens and Beijing. The Athens Tower has been completed, while construction of the Beijing Tower is currently in full swing, which is scheduled for completion in 2013. The 35-story Beijing Tower is also offering bigger units and the innovative myHOBS concept or units that can be converted into a home, an office or a shop.

The Rio Tower is scheduled for construction by mid-2013 and is targeted for completion in 2016, when Rio de Janeiro in Brazil hosts the 31st Olympiad.

www.thecapitaltowers.com.ph

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In Photo: Façade the Rio tower (perspective)

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Sundays like no other at Alveo

Tuesday, 14 August 2012 19:30 Christine V. Tupaz

FILIPINO families love to spend weekends together, and weekend mornings may be best spent at home, but for the Makati urban dwellers, taking a trip to the dynamic Legaspi Weekend Market is a weekend habit that is a joy and should not be missed. As a weekly venue for today’s budding entrepreneurs, the Legaspi Weekend Market creates a destination where international cuisines, hand-made products, organic finds and other local products can be found. The iconic morning souk started the tradition in 1860 and continues to thrive, incessantly exciting both sellers and buyers alike.

With its exceptional lifestyle concept, the Legaspi Weekend Market further strengthens Makati’s dynamism as the country’s pioneering leisure destination. As a city that emerges with an array of lifestyle possibilities, amplifying activities like the Legaspi Weekend Market helps showcase the best of what Makati has to offer.

Alveo Land—being the benchmark of real-estate innovation—now partners with its organizers to launch the first and largest artisanal street market in the country. Dubbed as the Makati Street Market, it is set to further enliven Legaspi Village with more concept stalls and activities for four Sundays starting August 19.

With the verve of the renowned Sunday Helsinki Market in Finland, the Makati Street Market will be adapting the idea of artisanal market concepts in an open-air venue, allowing people to enjoy fresh dining and shopping options amid the vibrant Makati city setting.

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To also further foster the thrilling vibe of living in Legaspi, a specific theme will be set each Sunday, ranging from culinary grilling competitions and an adobo festival, to salsa dance events and biking workshops that highlight the easy accessibility to a distinct Makati lifestyle.

The Makati Street Market will truly be a remarkable opportunity to experience a grand selection of the best unique finds in the city. It’s a great reason why weekends in Makati for the whole family or special friends and relatives are worth waking up for.

Essentially, the Makati Street Market is designed to heighten the lifestyle convenience in the area, where two of Alveo Land’s major projects are poised to carve their own residential niches.

The Lerato is a three-tower condominium development situated in Makati North, known to many as the creative hub of the city. It is a representation of Alveo Land’s commitment to enrich the work-life balance of Makati’s urban achievers, while reinforcing the district’s artistic thrust. The development will also feature a signature destination with its 2,800-sq-m Shops at The Lerato. Designed to provide future residents with diverse cosmopolitan lifestyle options, this two-story retail piazza will offer various shopping, dining and leisure choices, all while hosting the latest event and recreational happenings in the metro.

Kroma Tower, on the other hand, is Alveo Land’s latest residential venture in Legaspi Village. Envisioned to become the urban base in the heart of the city, this newest development offers prime connections to the Makati Central Business District, as well as key destinations that set the trend in convenience, cuisine and culture. With its sleek amenities and space-efficient unit choices, Kroma brings its own sense of cosmopolitan distinction to the core.

With both projects offering ease and accessibility within the city, The Lerato and Kroma Tower are pivotal to the burgeoning lifestyle hubs in Makati, and offer the ideal living experience for today’s modern urbanite. 

Christine V. Tupaz

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In Photo: A representation of Alveo Land’s commitment to enrich the work-life balance of Makati’s urban achievers, while reinforcing the district’s artistic thrust.

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Flood-free living on higher ground at Sandari Batulao

Tuesday, 21 August 2012 16:41 Lizzie Radam Lazo

ONCE again, many places in Metro Manila were transformed into lakes and pools when monsoon rains fell in powerful torrents in many places. It was not even a tropical storm that slammed hard into the metropolis, but the devastation unleashed by the rains was almost as bad as that of powerful typhoon Ondoy.

The government is addressing the problem, but it is doubtful that there will ever be a flood-free Metro Manila for the current generation to see.  No matter how grand a property may be, the threat of flooding persists. Metro Manila, after all, is a catch basin for three rivers: Marikina, Napindan and Pasig. What many unfortunate families have been through in these calamitous times should make prospective property buyers more careful with their investment. Clearly, if the flooding problem in Metro Manila will not be addressed for a long time to come, the best thing to do for those living in flood-prone areas is to move out of the metropolis.

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Luckily for the younger couples about to start a family, there is a newly rising community south of the metropolis that offers sanctuary from floods—Sandari Batulao.

With its naturally elevated terrain, Sandari Batulao means one big worry less for its homeowners. The 800-hectare property on the slopes of Mounts Talamitam and Batulao in Nasugbu, Batangas, promises flood-free living amid nature.

Just 10 minutes west of Tagaytay, Sandari Batulao with its lush vegetation and rich forest lands combines nature’s gifts with the conveniences of world-class resort amenities.

Sandari Batulao offers a vantage point for a glorious view of the West Philippine Sea from its slopes lush with greenery, ornamental plants and trees, as well as fruit-bearing trees. It is also blessed with abundant clear water from its own water reservoir, guaranteeing year-round supply. Pockets of fresh spring water and an extensive network of rivers and streams also surround the property.

For the family with young children, Sandari Batulao is a delightful playground for an active lifestyle. Mountain-climbing, forest treks and river walks, horseback riding and camping on its undulating grounds are only some of the delightful family-bonding activities to enjoy.

Work is ongoing on the construction and development of luxury amenities that add to that resort feeling, like the multifunction events hall, a spa pavilion and a 25-meter infinity lap pool.

With its natural topography and the resulting cool climate as well as the installation of top-of-the line facilities and amenities for modern living, Sandari Batulao gives its mountainside dwellers the resort feel of a vacation right in their own backyard.

Sandari Batulao is an hour-and-a-half drive from Makati via the South Luzon Expressway through the city of Santa Rosa. For inquiry call +639173236123. 

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In Photo: Mount Batulao viewed from Sandari and Tranquil mountainside living.

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Marco Polo Residences endears itself to Cebuanos

Tuesday, 21 August 2012 16:44 Tet Andolong

WITH its beautiful beaches, tropical climate and relaxed urban lifestyle, Cebu City, the Queen City of the South and the oldest city in the Philippines, has become a much sought-after haven for foreign retirees, drawing the international crowd like bees to flowers. Cebuanos are known to be the most hospitable and caring people in the country. No wonder that a lot of foreigners now live in the city for business and leisure. Add here the Mactan International Airport, which has international flights to Singapore, Hong Kong, Kuala Lumpur, Taipei, Korea, Japan and China.

Now, another industry that is growing in the city is real estate. Over the years, more people are moving to Cebu due to the presence of new developments like the prestigious Marco Polo Residences and the Southern gem, which have made Cebu an even more attractive place to live in.

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On top of the beautiful and overlooking city of Cebu located at the Nivel Hills in Apas is the famous Marco Polo Plaza Hotel. The establishment opened in 2006 after Metrobank, the biggest bank in the country, acquired the property from the owners of the Cebu Plaza, which ceased operations in 2003. Since its inauguration, the Marco Polo Plaza Hotel has become the favorite venue for family events and vacation destination for both the locals and foreign visitors.

Now, five residential buildings next to the hotel are being built and they will rise in the next few years—The Marco Polo Residences. The units in Tower 1 have been sold out two months after they were launched, while 75 percent of Towers 2 and 3 have been sold. The investment on this project is between P15 billion and P20 billion, according to Alfred Ty, president of Federal Land.

“The Marco Polo Hotel is very dear to the Cebuanos. It’s sentimental to them. This is where they had their special and memorable events. The intention of the residences is to have the hotel amenities for the home­owners,” said Ty. “The unending stories I hear are nostalgic, and the Marco Polo Residences will make us closer to the community.”

Ty further shared, “We are encouraged by the strong market response. It was exciting to see the response of foreign and local retirees from abroad.”

With a name that is globally prominent in the hotel and hospitality sector, the Marco Polo Residences has since become an ideal investment among foreign retirees and expats settling in Cebu. Following the successful unveiling of its first two towers, a third structure will soon rise within the premises of the Marco Polo Residences.

The third tower, dubbed as the Marco Polo Parkview Residences, is a highly anticipated addition to this exclusive community located at Nivel Hills in Cebu. Federal Land Inc., the premier property developer behind this luxury development, is pleased to report a favorable take-up since its launch.

The Marco Polo Parkview Residences is envisioned to become a fancy retreat for the upscale market. Its members-only club shall serve as a playground for the cosmopolitan crowd. Here, they can indulge to their heart’s content in the pleasures of appointed features such as a lap pool, fully equipped fitness center, spa, private theater and tennis court.

The Marco Polo Residences sets itself apart from its peers in the local property sector with its world-class facilities and services that synthesize Asian hospitality with Western innovations. The legendary brand of Marco Polo also gives it a unique distinction from other luxury high-rise developments in the market.

Residents of the Marco Polo Residences can enjoy access to the Marco Polo Hotel and its hotel amenities and services. These include food and beverage signing privilege; concierge, room, business center and laundry services; apartment cleaning, servicing and maintenance; and priority access to the swimming pool, gym and the wellness zone. Apart from the stunning view, the charm of the Marco Polo Residences lies in its five-star hotel-like amenities, well-appointed units and first-class services. Each unit was designed to exude contemporary, stylish living suited for the distinct tastes of its residents.

The hotel-like ambiance cascades to the common areas with its grand ground floor lobby and drop-off. Security is a top priority with CCTV system, automatic fire suppression system, fire detection alarm system, stand-by generator for both common and residential units, and 24-hour security and maintenance personnel.

Visit www.marcopoloresidences.com.ph for more information or see its showroom in Manila at GT Tower International, 6813 Ayala Avenue corner H.V. de  la Costa Street in Makati. For Project Inquiry, call +639173236123. 

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In Photo: Marco Polo Parkview Residences and Dining area

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How to make your money grow

Monday, 20 August 2012 20:15 Kendrick Chua / Personal Finance

SAVE a little each day, every day and see small things grow big,” says Bam Aquino, a social entrepreneur in a Sun Life advertisement. Yet, long before those words were popularized in a television commercial, the Japanese were already living that principle, which they call Kaizen.

The word Kaizen comes from two words: “Kai” which means “to change” and “zen” which means “for the better.” Both words embody the philosophy of making continuous improvements in all aspects of life.

With a gross domestic product (GDP of $5 trillion), Japan is the world’s second-largest economy next to the United States. Yet Japan didn’t achieve its status as a global economic leader dramatically; it took them 60 long years to recover and rebuild their country from the ravages of World War II. And one of the crucial factors that made Japan’s momentous growth possible was the application of kaizen, a strong desire to be better and to be the best.

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The principle of continuous improvement can likewise be applied in financial planning. So diverse is the field that we can always find something to improve on. In asset allocation, for instance, portfolios can be regularly rebalanced for us to maximize gains and opportunities and minimize losses and risks. In debt management, we can look for institutions that offer lower interests and more flexible terms. And in financial literacy, we can be wiser and smarter about the environment today than yesterday.

One of my greatest frustrations as a financial planner is that most of the people I have talked to do not want to undergo the process of financial planning. They feel it’s boring, old-fashioned and down-right slow. Guess what? They are right. It is boring, old-fashion and down-right slow. That’s why it is effective.

But others who heeded the advice, reaped the rewards. One of my clients, Celine Salazar, a single mother of two who works in the training and development department of a business process outsourcing company started 2009 with nothing in savings. But I worked with her through a formal financial plan. She diligently saved P2,000 every pay day. Within a year, her savings grew to more than P50,000. Considering all her obligations and the environment she was in, it was a great accomplishment.

Salazar will be the first to agree that it wasn’t an overnight success. It did take her quite a while to accumulate that amount. But she was steadfast in her commitment and even when she was on maternity leave, she still saved that up. Yes, P2,000 may not be much. But when added to the other P2,000 she saved before, it becomes significant.

Then there’s another client of mine who invests regularly in mutual funds. Not even the financial crisis that struck the world two years ago stopped him from investing. As a result of this practice, he was able to buy shares at lower prices. The result: huge gains when the market rebounded.

The Kaizen principle can also help us in being keener in spotting opportunities to make our money grow legitimately.

Randell Tiongson, one of the most respected financial planners in the Philippines, noted this paradox, “For a conservative country like the Philippines, a lot of people are getting scammed.”

True.  Several years ago, a financial organization was offering lucrative returns for its investors. Enticed by the potential of growing money exponentially, a lot of people were lured into it. Despite tell-tale signs of its being a pyramiding scheme, nobody bothered questioning its legitimacy. As long as the investors were paid, everyone was happy.

A crackdown ensued and it was proven that the institution was indeed a scam. When the dust settled, the investors were bewildered. The masterminds were nowhere to be found, taking with them millions and millions of pesos along with the dreams of the investors.

Several years after, another organization offered the same thing. Although it was a Ponzi scheme instead, the result was the same: Investors lost money.

Financial planning never advocates get-rich quick schemes but rather a consistent saving and investing approach to achieve financial independence.

Kaizen is all about improvements.  No matter how small, they are still improvements. Vincent Van Gogh once said, “Great things are not done by impulse but by a series of small things brought together.”

The philosophy is applicable to money management as it is to any facet. Even if one is contented with their financial status, there is always a way to improve it further, to make it better, to look for a higher yielding investment, to spend a little less, to save a little more, and to dream a bigger dream.

Kendrick Chua is a Registered Financial Planner of RFP Philippines. To learn more about personal financial planning, join the RFP program Batch 29 on October 13 to December 8. For more details, e-mail info@rfp.ph or visit www.rfp.ph.

BSP retains 20 percent ceiling on real-estate loans

Thursday, 23 August 2012 20:35 Jun Vallecera / Reporter

FINANCIAL regulators on Thursday cast a wider net to capture much more real-estate transactions than was possible under earlier rules which now include a ceiling not just on loans but investments as well.

Also, Bangko Sentral ng Pilipinas Gov. Amando M. Tetangco Jr. kept unchanged at 20 percent the ceiling on real-estate loans that banks and financial institutions must observe at all times. The BSP, however, served notice that such may be reset higher should the observation period now in effect warrant a change in the ceiling down the line.

“The new guidelines provide a more comprehensive measure of a bank’s real-estate exposure. It now includes loans as well as investments in debt and equity securities, the proceeds of which shall be used to finance real estate activities,” Tetangco said just before he spoke before a crowd of bank treasury and finance officials gathered at the Makati Shangri-la Hotel.

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The treasury and finance summit was hosted by the Bank of the Philippine Islands.

Tetangco said the Monetary Board agreed to freeze for the moment the maximum exposure any bank may extend to the real-estate sector at 20 percent but vowed to “review the ceiling after we get the reports from the banks to see if there is a need to adjust.”

This new restriction was announced just a day after the BSP reported a huge jump in the balance of payments surplus from only $14 million in June to $3.18 billion in July.

Tetangco previously reported a huge chunk of that surplus may be traced to “hot” money inflows also known as portfolio investments.

Of net portfolio inflows of $963 million reported in July, a total $823 million were invested in debt or equity securities bought and sold at the Philippine Stock Exchange while another $175 million were for the purchase of peso-denominated government securities.

Tetangco said the new guidelines “amend the previous policy of excluding loans granted to individuals to finance the acquisition and/or construction of residential real estate for own occupancy and those extended to land developers/construction companies for the development of socialized and low-cost housing, among other things.”

Tetangco tempered concerns the expanded real-estate guidelines arose from a dramatic rise in asset prices in recent months, particularly real estate, saying real-estate loans were at only 14 percent of the banks’ total loan exposure based on latest data.

“In terms of loans, it is comfortably below 20 percent. If I am not mistaken, it is more or less 14 percent [based on] the latest that I’ve seen,” he said.

Singapore: Wealthies in 2012 wealth Report

Thursday, 23 August 2012 20:29 Wilma C. Inventor-Miranda / Free Enterprise

THEY say if you want to be successful, learn from the people who are successful.  If we want to be a rich and prosperous country, we should take lessons from countries that are prosperous.

The 2012 Wealth Report released by Citibank Private Wealth and Property Consultancy Knight Frank listed  Singapore as the wealthiest nation in the world by gross domestic product per capita measured by purchasing power parity,  beating Norway, the US, Hong Kong and Switzerland and predicted as the wealthiest in 2005 over Hong Kong, Taiwan and South Korea with the US (the only non-Asian nation) sliding back to No. 5.  We can observe from the list that the present top five wealthy nations except for Singapore and Hong Kong are non-Asian but in 2050 the top four are all Asian countries.

And mind you, Singapore will continue to hold its No.1 title up to 2050! Oneevidence is the presence of many millionaires in the country.  The report also predicts that there will be a 67-percent increase in Singapore in the next four years in centa-millionaires.  Centa-millionaires are those super millionaires with over $100 million in disposable wealth.

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Citi’s List of Global Growth Generators or what they call “3G” countries lists China, India, Bangladesh, Egypt, Indonesia, Iraq, Mongolia, Nigeria, Philippines, Sri Lanka and Vietnam.  Except for China and India (which are included in the so- called BRIC nations together with Brazil and Russia) the rest are “key countries with promising chances for growth that do not necessarily match the traditional assumptions about where future growth will emanate from,” quoting the Report.  Brazil and Russia were not included in the list and the other countries included here aside from India and China are poor countries that can look forward to catch-up with growth though it will take decades.

It is encouraging to see the Philippines as among those countries in the 3G list.   Our economy is one of those who had opened up and had reached, in the words of Citi’s Chief Economist Willem Buiter “the modicum of institutional quality and political stability that are needed for fast growth and rapid catch- up.”  To grow, the Philippines can learn from the wealthiest in emerging markets, The Report shows that they are generating their wealth from natural resources, manufacturing and construction based on a statement made by James Lawson, director at Ledbury Research. As we can see, agriculture is not one of them, the area where our country is mostly focus on. Increase in construction is a by-product of a growing economy—what we should work more is developing our manufacturing sector.

How can Filipinos become millionaires or multimillionaires just like the wealthy in Singapore? The study shows that individuals attain such status through their earnings (which is commonly seen in more developed and established economies).  But those who are really very wealthy, except for those who became rich by inheritance (with assets of $10 million or more) are the entrepreneurs or business owners.  The risk is bigger than just being an employee but the returns if you become successful is tremendous as to catapult a person to being not just a millionaire but a centa- millionaire.  It is easier said than done but anyone can begin somewhere and even if you have not reached the “centa” status, improving oneself not only in terms of financial capacity but developing one’s  character in the area of discipline, good stewardship, fortitude, perseverance that are required of a good entrepreneur are enough reasons to take the risk of entrepreneurship.

What else can we learn from affluent countries such as Singapore? CNN World mentioned an interview in the Wealth Report with the super rich about their “favorite things” (or hobbies?).  Indians responded cars and gadgets, Latin American said traveling and Africans said safaris.  The wealthy in Singapore’s most favored things? “Books and reading materials.” In other words, to be prosperous read more....

(Wilma Miranda is the Chairman of the Publications Committee of Finex, the treasurer of KPS Outsourcing Inc. and a partner of Inventor, Miranda & Associates, CPAs.  The views expressed herein do not necessarily reflect the opinion of these institutions.  Email wilma_517@yahoo for comments).

In Sync with the new face of Central Business District

(The Philippine Star) Updated August 24, 2012 12:00 AM 

These business parks, both of which are recognized as the most sought-after addresses in Cebu, are being amalgamated to be addressed as the Cebu Park District (CPD). ALI and Cebu Holdings Inc. (CHI) are working at the forefront of this P10-B redevelopment project. | Zoom

MANILA, Philippines - Every central business district (CBD) that thrives in cities signifies growth and development. As the nucleus of a burgeoning urban landscape, this site is geographically identified by the major concentration of commercial land use, diversified by high percentages of offices, and services like banking and finance. And when we talk about cities that present such vibrant epicenters, global destinations Hong Kong, Tokyo, Paris, Singapore, New York, and London are the leading cities that present such aggressive cityscapes.
Nonetheless, these urban giants flourish not only in terms of business activities, but also in lifestyle and cultural facets as they all present clusters of residential developments, retail shops, and other leisure spots where urban denizens converge. Ayala Land is essentially mirroring these facets, through continuously building CBDs regionally. Hence, we find cities much closer to home that are evolving with pensively master-planned epicenters that significantly prompt financial, commercial and cultural escalation.
In the Philippines, the Makati CBD and Bonifacio Global City are the most notable high-ranking business, commercial, and lifestyle hubs. In those cases, Ayala Land Inc. (ALI) has aggressively poured its efforts in renewing and improving landscapes through infrastructure, offices, leisure centers, and mixed-use hubs. Fueled by the success of these cities, the company is in fact expanding its footprint regionally as it is now at the helm of heightening Cebu’s primacy.

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Live-work-play possibilities

It was reported in December 2011 that the business process outsourcing (BPO) industry is poised to shoot up in the area in the coming years, clearly giving a positive impact to Cebu’s economic trajectory. Such progress will soon become more evident in Cebu I.T. Park and Cebu Business Park, as there is an expected 20 percent increase in the 50,000 person workforce recorded in the area earlier this year. These business parks, both of which are recognized as the most sought-after addresses in Cebu, are being amalgamated to be addressed as the Cebu Park District (CPD). ALI and Cebu Holdings Inc. (CHI) are working at the forefront of this P10B redevelopment project.
“Given that both commercial squares are geographically aligned and strategically located at the heart of the city, addressing them as a single destination will solidify and strengthen their potential as business centers,” explains Tony Aquino, President of Ayala Land and Chairman of Cebu Holdings, Inc. “Mirroring the synergy of both parks will practically provide a larger environment for BPOs and even for other businesses that will spur growth in the region.”
However, Aquino recognizes that today’s worldwide trends and lifestyles suggest that CBDs are way past just having office buildings or retail centers. With the rising number of commercial conglomerates in the area, Cebu Park District is further bolstering its urban convenience, thus, more CBD developments and amenities must be endowed.
“There is already an existing lifestyle destination in the area—Ayala Center Cebu. This defining lifestyle centerpiece is set to expand in the coming years, not only in terms of shopping, dining and entertainment, but even with residential towers and hotel that will be integrated in its overall masterplan,” says Aquino.

Learn real estate investment opportunities with Citigold Conversation Series

(The Philippine Star) Updated August 24, 2012 12:00 AM 

Citibank branch banking director Judith Go and Jones Lang LaSalle Leechiu regional director and country manager David Leechiu. | Zoom

MANILA, Philippines - Citibank recently treated its clients to an exclusive briefing on investment opportunities, this time focusing on real estate trends. Dubbed the Gold Conversation Series, the by-invitation only affair was for clients of Citigold, Citibank’s premier wealth management service.
Judith Go, branch banking Director, welcomed clients to the event and related Citigold’s commitment to addressing a wide range of topics relevant to growing and preserving wealth. “In addition to regular market outlook updates, we also bring in experts on other fields to help you in your financial decisions. As your wealth manager, we take this responsibility seriously,” Go said.
In this Gold Conversation Series, property expert David Leechiu, regional director and country manager of Jones Lang LaSalle Leechiu, was invited to give a preview on the growth and prospects in the real estate industry. “Very high net worth individuals buy assets and real estate,” he said.
The office space market continues to grow in Metro Manila with more demand from business process outsourcing firms, Leechiu said. While rental rates are increasing it is still one of the most affordable office markets in Asia Pacific.

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Leechiu also talked about residential condominium development in the country that today affords quality housing for the middle class. He also said people are moving closer to their workplace which makes condominiums appealing to the professionals.
Citibank introduced Citigold Wealth Management in the Philippines in the early 1990s providing premium banking experience to the affluent market. As the preferred financial partner, Citigold helps clients grow, manage and protect their wealth and secure their financial future with its team of professionals, unmatched research services, world-class products, global access, and exclusive privileges and rewards.
“We are committed to providing you our award-winning service and as we celebrate our 200 years, Citi will be with you every step of your financial journey,” said Go.   

Cebu honors Joseph M. Yap of Filinvest with Garbo sa Sugbo award

(The Philippine Star) Updated August 24, 2012 12:00 AM 

| Zoom

MANILA, Philippines - The provincial government of Cebu has recently marked its 443rd founding anniversary in celebrations held at the Cebu International Convention Center .   Among the significant events lined-up to commemorate this milestone was the Governor’s Ball which was highlighted by the Garbo sa Sugbo (Pride of Cebu) Awards.  These awards are given to Cebuano individuals or institutions for excellence in their fields of endeavour, and for their outstanding contribution to the growth and development of Cebu as a Province.
One distinguished award is the Corporate Leadership Award, an award for outstanding leadership in a business endeavour and for substantial development projects in Cebu .  This year, the Garbo sa Sugbo Award for Corporate Leadership was awarded to Filinvest Land Inc. CEO and President Joseph M. Yap, a distinguished Cebuano who exemplifies excellence in leadership and whose company contributes to shaping Cebu ‘s economic landscape through its various property developments.
Yap accepted the award from Gov. Gwendolyn Garcia and Cebu 3rd District Representative Pablo John Garcia during the ball. 

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“I thank the Cebu Provincial Government for this honor.  The award recognizes the contribution that Filinvest Land and the Filinvest Group have accomplished here in Cebu. Today, we are proud to report that we already have 10 projects in Cebu and we will be investing at least P25 billion more in the Province in the next 10 years to develop our various projects,” Yap said in a speech during the awarding ceremony.
 Filinvest was one of the earliest Metro Manila-based groups to invest in Cebu for its business-friendly environment.  One of its major projects is the P6-billion business process outsourcing (BPO) complex that will soon rise in Barangay Lahug, Cebu City as a joint venture between the Province of Cebu and Filinvest Land Inc. Filinvest won the bid under a Build-Transfer-Operate scheme with the province of Cebu for its 1.2 hectare property along Salinas Drive near the Asiatown IT Park.  The first P1.7-billion building will stand on a 15,000-sq. meter lot, which the Bagong Buhay Rehabilitation Center (BBRC) and the Cebu Center for the ultimate rehabilitation of drug dependents once stood.  The entire project will be developed over five years and is expected to generate 15,000 to 20,000 jobs.
 Aside from the BPO project, Filinvest Land is developing a hefty portion of Cebu ’s 300-hectare south road properties. Known as Citta di Mare, a 40-hectare joint venture residential project with Cebu City that features Il Corso, a 10-hectare lifestyle mixed use development.  Also in the SRP, the projects will provide thousands of new jobs for Cebuanos as well as generate millions of pesos worth of revenues for the city and the Province of Cebu .
 These projects represent the company’s bullishness in Cebu‘s economy and confidence in the provincial government.
 Filinvest has been in the property development business for almost 50 years. Its diverse property portfolio all over the country caters to more than 135,000 Filipino families. To learn more of our Cebu Project, contact at +639173236123.

Lawmaker bats for ‘localized’ payment of VAT and ITRs

Wednesday, 22 August 2012 19:50 Fernan B. Marasigan / Reporter

TAXPAYERS with business branches in the regions should pay their value-added tax (VAT) and file their returns in revenue districts within those regions.

This was contained in the proposal of Assistant Minority Leader Ferdinand Martin Romualdez even as he sought the amendment of Republic Act (RA) 8424, or the National Internal Revenue Code of 1997.

In filing House Bill 6424, Romualdez said the wisdom for his proposal is that those business branches are enjoying the local services of the local government units (LGUs).

“Thus, it should follow that the VAT should be paid in the location of the business branches for the mutual benefit of LGUs,” said Romualdez.

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In his explanatory note of the bill, Romualdez said: “Taxes are the lifeblood of government, without which the government will become anemic. Hence, the revision, amendment and modification thereof are the order of the Filipino people.”

In particular, Romualdez wants to amend Section 114 (B) of RA 8424 so that: “Except as the Commissioner otherwise permits, the return shall be filed with and the VAT paid to an authorized agent bank, Revenue Collection Officer or duly authorized city or municipal Treasurer in the Philippines located within the revenue district where the taxpayer is doing business.”

At present the law provides that the VAT payment and filing of tax returns shall be done within the revenue district where the taxpayer is registered or required to register.

The law also provides that in general, every person liable to pay the VAT shall file a quarterly return of the amount of his gross sales or receipts within 25 days following the close of each taxable quarter prescribed for each taxpayer. Furthermore, VAT-registered persons shall pay the VAT on a monthly basis.

Government developing medical tourism roadmap

By Katlene O. Cacho

Wednesday, August 22, 2012
THE government is crafting the roadmap on medical tourism to help advance key cities like Cebu in terms of offering high quality medical services and facilities.
Two hospitals from Cebu, the Perpetual Succour Hospital (PSH) and Cebu Doctors University Hospital (CDUH), were initially included in the development of the roadmap, according to Department of Trade and Industry Cebu Provincial Office (DTI-CPO) Director Nelia Navarro.

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Navarro said the DTI Board of Investments (BOI), Department of Health (DOH) and the Department of Tourism (DOT) met in Manila to come up with the medical tourism roadmap.
Navarro, who is an officer of the Cebu Health and Wellness Council (CHWC), said the move by the agencies to include Cebu in the survey in preparation for the roadmap is a welcome sign, given the province’s goal to become the preferred medical tourism destination in the country.
Measures
“We will come up with a tag line and various measures that would help boost the country’s footing in the medical tourism industry and action plans that would address issues faced by the industry,” she said.
Before the roadmap will be finalized and presented to President Benigno Aquino III, Navarro said a feedback session will be held this month. She said Chong Hua Hospital, PSH and CDUH have been invited to participate in the session.
“Once (the roadmap) is certified by the president this year, some funding will be given to the sector as far as marketing is concerned,” said Navarro.
She said Cebu will benefit from the roadmap. Cebu offers light medical and dental services, which Navarro said are within the services identified in the roadmap. She said Cebu also has an organized medical community that is easy to gather in time for the feedback session.
“The advantage here is that with the roadmap, we now have a clearer direction, support from Manila and the convergence of different agencies and the government,” she said.
Foreign patients are not the only market for Cebu for medical tourism, said Latvian consul Robert Joseph, who is also chairman emeritus of the National Association of Independent Travel Agencies.
Joseph said the 10 million to 12 million overseas Filipino workers (OFWs) are a captured market for the industry.
Joseph said the country needs to improve its infrastructure and employ right policies to improve the country’s positioning as a medical tourism destination.
Strong market
He said the country has a strong market for medical tourism because of its highly-qualified English-speaking medical professionals, competitive pricing in medical services and numerous tourist attractions like beaches that are ideal for recuperation.
“When these OFWs will retire, they would seek medical services here,” Joseph said.
The Philippines targets $3 billion revenues from medical tourism by 2015.

Published in the Sun.Star Cebu newspaper on August 23, 2012.

Pag-ibig collects P1.6B in housing payments

By Mia A. Aznar

Thursday, August 23, 2012
SOME P1.641 billion in housing payments was collected by the Home Mutual Development Fund (Pag-ibig) Visayas for the first half of the year, about 45 percent of its full-year target of P3.6 billion.
Last year, the agency collected P3.326 billion in housing payments, higher than the P2.865 billion collected in 2010. The Pagibig Visayas office covers two Cebu branches, Iloilo, Bacolod and Tacloban.

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Figures from Pag-ibig’s consolidated operations and performance report faxed to Sun.Star Cebu showed that the agency had 1.247 million active members in the Visayas as of June 2012, with 313,305 active members belonging to the Pag-ibig Cebu City North office and 385,913 active members under the Pag-ibig Cebu City South office.
In 2011, they saw 1.163 million active members while in 2010, there were 1.083 million active members.
The agency managed to meet 97 percent of its target active membership level of 1.285 million, needing just 35,112 to meet its target for the year.
Membership contributions reached P1.576 billion as of June this year, with Cebu offices leading in the amounts collected. The Cebu City North office collected P366.043 million while the Cebu City South office collected P470.739 million. The 2012 target for membership contributions has been set at P2.977 billion.
For short-term loans, the agency collected P3.410 billion for the first half of the year. Availment of multi-purpose loans reached P3.809 billion, with 166,528 borrowers.
Some 2,398 units have been approved for financing, 693 of which are from the Cebu City North office and 366 are from the Cebu City South office.
With the target set at 7,333 units, they have a balance of 4,935 units. They have accomplished 32.7 percent of the target.
Housing financing reached P1.641 billion for the first half of the year.

Published in the Sun.Star Cebu newspaper on August 24, 2012.

Economist encourages Filipinos to venture into tourism businesses

By Katlene O. Cacho

Thursday, August 23, 2012
ONE of the country’s leading economists is urging Filipinos to venture into tourism-related businesses and take advantage of the growing domestic sector.
Economist Bernardo Villegas of the University of Asia and Pacific, in a recent economic forum, said domestic tourism is another source of growth in the country.

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He said that aside from building high-end hotels to cater to foreign tourists, Filipino entrepreneurs can build bed and breakfast facilities similar to those found in Europe to cater to Filipinos who travel to various areas in the country.
“If the government will fall short in achieving the number of foreign arrivals, domestic tourism would be the country’s source of growth,” Villegas said.
He said most Filipino travelers opt to stay in a 10 to 15-room hotel and demand only clean linens as well as toilet and bath and a good breakfast.
Villegas said the industry should not underestimate the spending power of Filipinos when it comes to travelling and shopping.
The Islands Group of Companies president Jay Aldeguer said low air fares and packages have given Filipinos the opportunity to travel. The increased domestic air connectivity, especially in regional areas, has also made travel more convenient.
Passenger volume totaled 11.02 million from January to June, up by 13.37 percent from the 9.72 million recorded last year, data from the Civil Aeronautics Board (CAB) showed.
Aldeguer said social networking sites have also triggered growth in domestic tourism.
He said the presence of modern channels now such as Facebook have encouraged Filipinos, especially the youth, to visit various areas in the country. He said Facebook is one of the effective channels to promote various attractions in the Philippines, especially those located in far-flung provinces.
The Aquino government has set a target of 10 million foreign tourists and 35.5 million domestic travelers by 2016. The government has adopted the “pocket open skies” policy to allow international carriers to land in secondary airports outside Metro Manila to boost economic development in the regions.
The Department of Tourism said they are also coming up with various and “fun” activities in the regional level to entice Filipinos to travel within the country.
Villegas said the tourism target is achievable, considering the on-going efforts of both the public and private stakeholders in improving tourism infrastructure such as roads and airports.

Published in the Sun.Star Cebu newspaper on August 24, 2012.

From zero to raking in millions

PropNex high-flier was a weak student but now leads 1,100 property agents

The Sunday Times - July 15, 2012
By: Wong Kim Hoh

 

Together with family members, Mr Kelvin Fong has invested in 10 commercial and residential properties, like The Sail in the Marina Bay area. Rentals of these contribute to his more than $70,000 a month income. -- ST PHOTO: ASHLEIGH SIM

One is quite likely to walk right past Mr Kelvin Fong in a crowd.

Slight of build and pleasant-faced, he does not quite possess the self-assured bearing or assertiveness one associates with a leader.

But appearances can deceive.

The 37-year-old heads a team of more than 1,100 real estate agents who chalked up about $41 million in sales commission from private property transactions last year.

For the past few years, Mr Fong has won the Champion Team Leader title at PropNex, the second biggest real estate agency in Singapore. The accolade is the highest given to a team leader in the company.

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Playing the general was something the mild-mannered man never saw himself doing.

'I really didn't have any ambition when I was young. All I wanted was a job where I could wear office attire, you know, a long- sleeved shirt and proper trousers,' he says.

His early years suggested he would end up the ubiquitous Everyman, bound for a life of ordinariness.

He is the only child of a photographer and a waitress. When he was 40 days old, his parents sent him to live with his maternal grandparents in their three-room flat in the Commonwealth area.

'My parents had to work and had no time to take care of me. I only saw them on Sundays when they would come over to my grandparents' home,' says Mr Fong, who moved in with his parents when he was 21.

He recalls a fairly lonely childhood. 'I had no one to play with or talk to. I often talked to myself,' he says. 'I guess I learnt to do things for myself from a very young age but I'm not sure if that's necessarily a good thing.'

He did not do well in school, and nobody monitored his academic progress.

'There was no one to turn to, even if I failed,' he says. He attended New Town Primary School and his poor grades landed him in the Normal stream at Ghim Moh Secondary School.

'I did okay for my N levels but had to take my O levels twice. My English was terrible. Two of my English teachers gave me extra lessons and I also had private tuition before I passed the subject,' says Mr Fong, who now betrays no sign of his struggles with the language.

He had hoped to study business and marketing but his results got him into an electrical engineering course at Singapore Polytechnic instead. In his third year, in 1997, he signed up with the Republic of Singapore Air Force (RSAF).

What prompted him to do so was the cash incentive of more than $40,000.

'I did my calculations. Although there was a six-year bond, I thought it was a good deal because I would not get that sum of money working elsewhere,' says Mr Fong, who studied part-time for a business degree from Melbourne's La Trobe University while in the RSAF.

Money, he lets on, has always been important to him.

'I started worrying about money from a very young age. I think it stemmed from not having my parents around me to make me feel secure.'

One incident in his childhood added to this anxiety.

Plagued by poor business and his ailing mother's hospitalisation bills, his father asked the 12-year old boy to hand over his savings of $1,500.

'I had saved it by not spending my hongbao money for many years. It was everything I had. At that time, I felt it was really unfair. I told myself I would never let my bank account go empty again,' he says.

But it did, when the Asian financial crisis struck in 1997.

Hoping to grow the $40,000 from the RSAF, he had ploughed it into the stock market. The crisis reduced that dream to rubble.

He even had to borrow $5,000 from his father-in-law as downpayment for a four-room flat in Woodlands when he got married in 2001 to Janet, a former air stewardess.

'Some of our friends who were also getting married were spending $40,000 or $50,000 on renovations. We didn't do anything. We painted the flat ourselves and had to pay for our bedroom furniture in instalments,' he says.

To help pay the bills, he and his wife - who quit flying after marriage - decided to go into part-time telemarketing for real estate agents.

'We'd call to prospect, and ask those we called whether they were keen to sell their property. If they were, we would send marketing managers to see them,' he says. 'We were paid $7 an hour.'

Being an introvert, talking to strangers on the phone did not come naturally to him.

'I was very nervous initially and people could be very rude. But I wanted to learn, and I told myself I had to get at least one or two appointments a day.'

The way he sees it, effective telemarketing is all about timing and consistency.

'It really depends on when you get a person. When you get him in a good mood, he will talk more. So you have to keep at it. The more you call, the higher your chances of securing an appointment,' he says.

It was hard work.

'We realised we were working from Monday to Sunday and the real estate agents were earning a lot more than us.'

Sensing the potential, his wife took the plunge and became an agent herself.

He joined her at Dennis Wee Realty after completing his bond with the air force a year later, in 2003. They specialised in selling Housing Board (HDB) flats.

They made a good team.

Because of their telemarketing experience, both were very conversant with property prices.

He adds: 'My wife's very good in opening and closing deals. I provided the backend support and I'm very good with calculations and other financial-related stuff.'

On weekends, the couple would wake up at 6am to put advertisements on lift landings in HDB blocks. 'We could do between 50 and 80 blocks. After that, we would go home and arrange viewings when the calls came.'

The hours were long, and the work exacting.

'We spent many nights talking to aunties and uncles, sometimes staying up until 2am,' he says. 'With HDB transactions, there are lots of policies to remember. You also have to remember every single client, and when they need to shift out or move in because you do not want them stranded with no place to live.'

Their hard work paid off.

In the first nine months, they earned a combined income of $150,000. 'To us, that was fantastic. We started setting higher targets,' he says.

They joined PropNex shortly after and saw their income more than double to $350,000 a year.

'Subsequently, we earned between $400,000 and $500,000,' says Mr Fong, adding that they were closing more than 10 deals a month.

At PropNex, he started building a team.

'I told myself I needed to have a dual career path. I thought it'd be good if I could still have a good passive income from managing a team if I stopped selling one day.'

He started with just a few friends and relatives, but the team soon ballooned to nearly 300 people.

He laughs nervously when asked why so many people chose to join him. 'I really don't know how I built the team. Many people lead by commanding and controlling. But I told myself that people would choose to follow me if I could add value,' he says simply.

He did that by emphasising teamwork and the open sharing of information and experiences, which went against the self-protecting, to-each-his-own nature of the industry.

'I've never been afraid of giving or sharing and I'm not afraid of people copying me. I figured if the head were like this, everyone would be like this too.'

He was right. Within one year, his team became one of the top teams at PropNex.

In 2007, Mr Fong decided to venture into the private property market which had fewer restrictions and was more lucrative.

'It was a stressful decision because it was new to all of us and if we didn't do it well, our sales would come down.'

He introduced new systems and practices to help his team members make the transition.

'We met once a week to discuss problems and issues and share ways to improve. The practice then was not to share and reveal data such as units on sale but I introduced an internal system which allowed everyone to do just that.

'We were not afraid of people undercutting us. I told my guys, 'Let's just focus on closing the deal, not undercutting. If others want to do that, let them.' The openness made everyone sing the same tune and that's when our sales jumped.'

He proudly reels off the numbers.

'We went from $2 million in sales commissions doing HDB flats to more than $10 million when we switched to private property in 2007. In 2008, when the market was bad, we did $13 million.

'In 2009, we did $28 million; in 2010, we did $38 million. And last year, we chalked up $41 million.'

Mr Fong believes that real estate agents today need to evolve to stay relevant.

'It's not all about sales any more. You can't go to someone and say, 'You want to sell your property? I can sell it for you.'

'It's about restructuring and helping people understand how they can make property work for them, how they can use their assets to grow their wealth. It's not telling people to speculate; it's teaching them to invest.'

His approach, he says, probably explains his own success.

He is not your typical salesman, glib and slick.

'But I know how to make a person feel good by thinking for them. I make them secure because I tell them how they should be buying and selling, and I can explain how the right financing can work for them.'

There is something very modest and grounded about Mr Fong, probably because he's always had to work hard to perfect skills - teaching, leading and explaining - which come naturally to many people.

PropNex's chief executive Mohamad Ismail, 48, says: 'I've had team leaders whose feet quickly outgrew their shoes. But Kelvin's never tried to throw his weight around.

'He is a quiet worker, very down to earth and humble. He joined as a nobody but he learnt, he applied and he grew. In fact, I'm amazed at how entrepreneurial he has become.'

Two years ago, Mr Fong set up Zest Academy with three partners to offer professional training for

real estate agents. It now boasts five trainers, including Mr Fong, and three administrative staff.

Turnover exceeded $1 million last year.

'The margins are not huge but we have benefited so much, honing our public speaking skills and learning how to run a business.'

In the pipeline are plans to set up companies to develop social media software and applications for the real estate and other industries.

For a man once resigned to being ordinary, the father of two young girls, aged three and six, has done very well for himself.

Together with family members, he has invested in about 10 residential and commercial properties in Malaysia and Singapore, including condominiums in the upscale Balmoral and the Marina Bay areas.

Each month, he rakes in more than $70,000 from rental as well as sales and overriding commissions from his team. His wife, who continues to be a top agent, hauls in an extremely handsome income too.

Although he has no reason to, he sheepishly confesses he still worries about money.

'I guess I don't want my children to go through what I did. But if you asked my daughters, I'm sure they would prefer me to work less and to spend a lot more time with them.'

He adds: 'Technically, I can slow down a lot. But I'm only 37, I am not stopping.'