Doing business based on reputation: Why brand building should top your to-do list

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Category: Properties

24 Jun 2014

 

Written by Amor Maclang

LAST week, I shared a couple of insights on the impact of choosing to invest in brand-building initiatives and strengthening sales-related initiatives. This week, however, I’ll be talking more about why establishing and enriching a unique sellable identity is key to reaping good business in the real-estate industry.

The business of real estate thrives primarily on the kind of reputation a particular developer enjoys. The success of every brand-building initiative in the course of property development goes beyond things like a logo, a signage, or a slogan because you create a more superior representation of your product through branding.

In all honesty, branding is as much a scientific process as it is a creative process. It involves a great deal of identifying who your target market is, understanding the range of behaviors that influence their mindsets (and purchasing patterns), creatively strategizing how you can best engage them through their interests, and talking to them by fueling their urge to fill a gap through selling the idea of your products. Strategic branding helps your brand establish and strengthen the kind of equity you envision. It all starts with developing a strong brand identity, market awareness, and positive reputation, all of which determine your brand’s business potential relative to competition.

Consistency is key

BRANDING initiatives should be genuine and must reflect the soul of the brand itself. It should stay true to your values as a developer, and should be connected to your sensibilities and your culture.

Let’s take a good look at the Mañosas for example. The reputation they have enjoyed as developers for decades was primarily built on the foundations of their legacy as real-estate builders. However, their name might not somewhat ring a bell for a good chunk of today’s property-buying market, unless you expound on the idea that they were responsible for iconic developments the local architecture scene have taken pride for, such as the Coconut Palace, Amanpulo Resort, the Banaue Rice Terraces-inspired San Miguel Corp. Building at the Ortigas Center, and Pearl Farm in Davao City. That alone will help paint a clear picture of the kind of brand the Mañosas stand for: innovators of bespoke community living.

Branding initiatives should also be responsible for improving quality of life and social perception toward specific values. We take pride in the success that the “Lola Techie” campaign we did for Bayan Telecommunications several years back was able to accomplish just that, same with all our tourism and provenance-building work for destinations like Bicol, South Cotabato, Bohol, Palawan and many more. Branding, if done right, should elevate the discourse and bring a greater awareness for things that often are not given much attention.

Branding is an enterprise approach

APART from determining the success of your brand’s marketing initiatives, successful branding also ensures the optimal operation of your entire business. It impacts significant elements like manpower hiring, personnel engagement, interior design, and even long-term relationships with other business partners.

Branding also helps you identify your path toward further growth by enabling you to address issues associated with your industry, take the necessary plans of action, and get back to business in about 30 days. That’s exactly what Ayala Land did in 2013 when it found itself mired in controversy following an explosion at Serendra in Bonifacio Global City.

All in all, branding is an efficient way for real-estate developers to foster new streams of profitable revenue growth. By creating a unique, impactful and relatable identity, branding successfully helps developers get their brands imprinted into the consciousness of a significant chunk of property buyers.

Entrepreneur Success Summit

SPEAKING of brand-building initiatives, I would like to express my heartfelt thanks to the organizers of the coming Entrepreneur Success Summit 2014 for inviting me to share valuable insights on how entrepreneurs from across different sectors—including real estate—can start and grow their businesses and ideas. With the Asean integration happening in 2015, new competition armed with new business concepts is coming in, which is why it is truly a must for us to help strengthen local business and provide a platform where business owners, real-estate developers and executives can showcase their innovative products and services.

I’d like to invite all of you, my dear readers, to know more about how branding and communications are transforming insights and growing businesses across different sectors as I, together with an entire cast of business professionals, grace the Entrepreneur Success Summit 2014 this coming Saturday, June 28, 1 p.m. at the SM Megamall Megatrade Hall Function Rooms.

France to lend P2.1B for BRT

By Princess Dawn H. Felicitas

Saturday, June 28, 2014

THE French Government’s agency for international development reaffirmed its commitment to provide P2.1 billion to help implement the Bus Rapid Transit (BRT) project in Cebu City.

The City Government, for its part, has committed to ensure that the BRT will be successfully implemented, especially by managing its social impact since the project is expected to displace some 3,000 jeepneys.

Mayor Michael Rama and City Traffic Operations Management (Citom) chief Atty. Rafael Yap met with seven Agence Francaise de Development (AFD) officials yesterday.

The officials who visited the city were AFD country director Luc Le Cabellec, incoming country director Christophe Blanchot, Director for Asia Gregory Clemente, Deputy Director Yves Gicquero, economist Bruno Vindel, and project officers Leonie Claeyman and Charlotte Gounot.

P10.6 billion needed

In an interview yesterday, Yap said the P2.1 billion that will be provided by the AFD forms part of the P10.6 billion needed for the BRT to be implemented in the city.

The other agency that will bankroll the project is the World Bank, through the Clean Technology Fund.

The P10.6 billion, Yap said, is a loan which will be paid by the National Government through the Department of Transportation and Communication (DOTC).

During their meeting, Yap said, the AFD emphasized the need for the City to manage the social impact of the BRT.

“The mayor assured them that the City’s foremost priority is to manage the jeepney industry that will be displaced and the road-right-of-way acquisition, among others.

It is the policy statement of the mayor to ensure that the potential impact of the project on the affected stakeholders will be mitigated by the City,” he said.

3,000 jeepneys to be affected

Yap said that according to a study by the University of the Philippines National Center for Transportation Studies, there will be an estimated 3,000 units of jeepneys that will be affected once the BRT system operates.

Asked how they will address this, Yap said among their plans is to reroute the jeepneys and use them as “feeders”.

This means that the jeepneys will ferry passengers from areas where the BRT cannot go, to the BRT stations.

Using the jeepneys as feeders is among the five options identified by the DOTC in their Social Management Plan Final Report for the BRT project.

The other options include allowing the jeepneys to stay in their route, open new routes for them, cancel their franchise and allow them to apply for open franchises for other transport services such as trucks-for-hire or school service, or to allow jeepney drivers and operators to participate in the BRT operations.

Not viable

DOTC said, though, that retaining the jeepneys alongside the BRT would not be viable, as it would not solve congestion on the roads.

DOTC also said competition for passengers along the corridor would reduce the viability of either or both the BRT and the jeepneys.

Using jeepneys as feeders, on the other hand, is most viable, DOTC said.

This is because jeepneys would be plying much shorter routes, which will translate to higher income and less fuel consumption.

Opening new routes, DOTC said, is also viable, saying that more areas will have access to public transportation.

Available franchises

As for awarding franchises to operate school buses or trucks-for-hire, DOTC said this can also be done because the Land Transportation Franchising and Regulatory Board said there are still available franchises for these services.

DOTC also said that the conversion of jeepneys to comply with the vehicle specifications of these services is low-cost.

As for allowing the jeepney drivers and operators to participate in the BRT operations, DOTC said this is also an option that can be considered, adding that it will eliminate the view that they have replaced or displaced.

DOTC, however, said this will require a large degree of social preparation so there will be proper coordination.

The BRT is a 16-kilometer project that will run from Bulacao to Talamban. It will have a total of 33 stations with 176 buses.

Jeep drivers

Sun.Star tried several times to contact Pinagkaisang Samahan ng Tsuper at Operator Nationwide Cebu coordinator Gregory Perez for his comment, but calls to his mobile phone went unanswered.

In random interviews, some jeepney drivers expressed opposition to the BRT system, which the National Economic Development Authority’s Board recently approved.

“Para namo mga driver, wa gyud na’y ayo kay maapektaran man among trabaho (Drivers oppose it because our jobs will be affected),” said Vergilio Gabales, a 14D driver (Ayala Terminal to Colon). He prefers to remain as a jeepney driver since he owns the vehicle.

Terso Suico, a 17B (Apas, Lahug to Carbon) driver, shared the same sentiment. He has been driving for six years now.

“Mawad-an ta ug panginabuhi. Ganahan ko magpabilin sa akong routa kay suhito na man ko ani (We will lose our source of livelihood. I prefer to stay in my route since I already know it well),” he said.

Vicente Maruya, a 13C driver (Talamban to Colon), says he is worried about losing his job. “Unsaon man ta na nga mao man naa sa balaod? Wa gyud ta’y mahimo ana (But there’s nothing we can do if that’s going to be pursued),” he said.

If given the option to change routes, Maruya said, “Kung di na kabuhi sa atong pamilya atong routa, balhin gyud ta sa laing routa kay importante man nga mabuhi ang pamilya (If I can no longer earn enough to sustain my family, I will transfer to another route. The important thing is to keep my family alive).” (With Andrea Denise H. Chua, USJ-R Mass Com Intern)

Ways to avoid being a victim of property scams

By Tessa R. SalazarPhilippine Daily Inquirer /12:03 am | Saturday, June 28th, 2014 /http://business.inquirer.net/173716/ways-to-avoid-being-a-victim-of-property-scams

Is it enough that government agencies such as the Pag-Ibig Fund, the Housing and Land Use Regulatory Board (HLURB) and the Register of Deeds (RD) have adopted strict measures to ferret out unscrupulous land developers to avoid another scam such as that of Globe Asiatique? 

The Globe Asiatique scam involved up to P7 billion of Pag-Ibig funds being lent to “buyers” of businessman Delfin Lee’s housing developments, 60 percent of whom turned out to be “ghost” borrowers, while the developer pocketed the proceeds and sold the units to other buyers, many of who were overseas Filipinos unaware that they were already buying “sold” units.

The biggest lesson to be learned from this grand scam is that buyers themselves must exercise due diligence in  acquiring properties, and not leave the background checking entirely on the government. Here are 12 prudent measures that every prospective buyer should take to avoid falling victim to property frauds.

1Check if the particular development you are eyeing has a License to Sell with the HLURB. A developer may undertake multiple projects, but each project must have a distinct HLURB License to Sell. Ask the seller or broker/agent of the developer for a copy of this License to Sell for the particular project. You can also verify this in the HLURB website (www.hlurb.gov.ph).

2Verify if the broker/agent is registered with the HLURB, and make sure that the property being eyed has not been sold to other buyers.

3Visit the project site. One way of checking if the the stated address of the project corresponds to the location of the project site is to Google Map the address, says Enrique M. Soriano III, Ateneo program director for real estate and senior adviser for Wong+Bernstein Business Advisory.

Lawyer Joan A. De Venecia, Pag-Ibig Fund’s vice president for public relations and information services, reminds buyers that it is not enough for one to transact with sales agents in malls. Buyers must conduct an ocular inspection of the project site to see if there are illegal settlers in the area, or if the site has safety issues.

4Standards of the structure. Check if the materials used to build the residential unit conforms with the development standards and approved construction specifications submitted to HLURB. Also check which party would have to shoulder the cost of the water and electric meters, the subdivision perimeter fence, etc. and who would eventually operate the subdivision/condominium building’s water system.

5 Do not sign blank Contract To Sell forms. “Overseas Filipinos are vulnerable to this method. Avoid signing any blank forms or housing contracts. Read thoroughly all the contents of the CTS, especially the terms and conditions in fine print. Secure a copy of the CTS and all other documents that you signed,” Soriano says.

Make sure also that the CTS would be registered by the owner/developer to the RD.

6Consult a trusted lawyer to guide you in the legal jargon and paperwork before you sign any contract.

7 Buy or invest from reputable developers who have had a long and solid history of delivering quality properties on time. Soriano stresses that “if it’s a start-up developer, make sure the company is known in the community.”

8If the Pag-Ibig Fund is the window of financing of the developer, buyers can check if the property they wish to acquire has already been mortgaged with the Fund.

Before developers can be approved for Pag-Ibig financing, the agency verifies documents of developers insofar as the project is concerned. Accrediting of development projects through the Pag-Ibig is pursuant to the agency’s loan processes only, De Venecia says.

9Find time to verify with the RD if the title to the property you intend to buy has encumbrances.

“Check with the RD if it has clean title,” stresses Florencio O. Galang, Pag-Ibig Fund’s department manager for public and media affairs. He adds that for other buyers whose project is not under the  Pag-Ibig Fund as the (financial) window of the developer, it would be more prudent to check with RD.

10If the project has a License to Sell, you may already enter into a contract to sell with the owner/developer. Things which must be checked before signing are:

• The date of completion of the project as indicated in the License to Sell;

• If the property has been mortgaged from the HLURB;

• The facilities and amenities represented in the advertisement flyers/brochures are in accordance with the approved subdivision and condominium plan on file with the HLURB.

11Get the services of an organic seller or licensed broker to guide you in the process of buying a property, especially for preselling projects. Before you complete the purchase, make sure you transact directly at the developer’s head office.

12Transact directly to the owner/developer or the marketing agent authorized by said owner/developer, and ask for official receipts on all payments, and keep these in your file.

Create a better plan for your Life..

"I find it fascinating that most people plan their vacations with better care than they plan their lives. Perhaps that is because escape is easier than change." -- Jim Rohn

Dear Partners,

What a nice Word from Jim, it is bull eye to most of us.

We are so exited every time we have Vacation Trips,

and really plan even to the most detailed things of our day to day activities for the trip.

So to maximize the day, and even spend late to get more worth of our Trip.

How about our Life Future, did we plan well our future 3-5 years from now?

Did you us yourself this questions, How i want to be 3-5 years from Now?

My life, my Financial stability, my relationship, and many more…

Sometimes it is better to spend vacation to remove ourself from familiar world.

So to find time for ourself and set down & see the future 3-5 years from now.

Remember this Time is important , you cannot buy back time.

and what are you doing today will determine your future.

Vision Board can also help, be creative put everything what you want & from there you plan your Goal.

Start from the end in Mind. Think long Term, and work backward.

I myself did not get my success in shortcut, this is a 5 years plan,

my own road map i created when i started my Real Estate Career last 2008.

from then onward, i am so focus to follow my Plan (my RoadMap).

RoadMap/Plan is so important so you have measurement for your Success.

and to avoid running to wrong roads, especially temptation is just surround us.

Your Personal Plan/Road Map will guide you monthly & yearly to your long term plan.

all business are good, but you always need to check & balance if this drive you towards your long term plan.

if not, learn to say NO. Focus your energy to certain plan, get result, never quit, never be tempted by other Opportunity.

bottom-line, all business opportunity are Good & end result is Money. 

But how can you serve 2 or more master, it will just delay your goal to get result.

roadmap can guide you from time to time, check regularly your activity, if you are still on track to your plan.

I hope this simple words of Jim Rohn, be our Guidance in our Business. 

Remember, 

- create long term plan / personal road map

- time is so important, you cannot buy back time

- your action today determine your future

- vision board is a good start

- start from the end in mind

- work you plan to Action, stop dreaming

- monitor your activity if you are still on track on your plan

- learn to say NO to some Opportunity

- Never quit, failure is part of the steps to Success

- keep positive Attitude

- seek HELP for Guidance

To YOUR Success & Prosperity.

Best Regards,

 

 

DR. SAMUEL ORTEGA LAO, REALTOR®

REBL #: 0001368

NAR #: 061232066

Jones Lang Lasalle: Philippines remains a challenge for foreign investors

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Category: Properties

27 May 2014

 

Written by Rizal Raoul Reyes

EVEN if its ranking improved by 25 points from 133rd spot in 2013 to 108th in 2014, the Philippines still has a lot of work to do to attract more foreign capital, according to brokerage and consultancy firm Jones Lang Lasalle (JLL) Philippines.

In a recent press briefing held in Makati City, JLL Philippines Country Head and Director David Leechiu said investors still find the Philippines a challenging area because of restrictions on ownership, limited leasing terms, high corporate and personal income-tax rates and absence of a substantial master planning.

“Although the country has achieved major strides in the ease of doing business based on the study of the World Bank, we still got a long way to go,” said Leechiu.

Singapore topped the list followed by Hong Kong. Other Asian countries which made the elite bracket are Malaysia (sixth), Taiwan (16th), Thailand (18th) and Japan (27th).

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 In the transparency index done in 2012, the Philippines achieved 2.86 points, which was under the transparent category—behind countries that made it to the highly transparent group. These are the United States (1.26), the United Kingdom (1.33), Australia (1.36), Hong Kong (1.76), Singapore (1.85), Malaysia (2.32), Japan (2.39), Taiwan (2.6) and China (2.83).

 Leechiu said the ownership restriction for foreign investors to 40 percent has become a major obstacle for the country to attract much-needed capital to stimulate the economy. To elucidate his point, Leechiu said countries that allowed 100-percent foreign ownership attracted huge amount of foreign capital in 2012. In the Association of Southeast Nations (Asean) bloc, Singapore was the biggest beneficiary with $56.6 billion followed by Indonesia ($19.6 billion), Thailand ($10.6 billion), Malaysia ($9.7 billion) and Vietnam ($8.3 billion). The Philippines received $2.7 billion.

Although Thailand generally limits a foreigner to 60-percent ownership, it allows 100-percent ownership based on treaties and other foreign investment acts. Foreigners are prohibited to own land in the Philippines.

He said there is also a need to review the corporate income-tax structure of the country currently at 35 percent of the taxable income, higher than the rate in bigger economies such as Australia (30 percent), China (21 percent) and Japan (25.5 percent).

To attract a bigger share of the foreign capital inflows, Leechiu said the country must allow foreigners a bigger stake in their investment. “We must increase foreign ownership of corporations to at least 50 percent,” he said.

“A 100-percent ownership would be unrealistic because of the strong opposition of the nationalist sector,” he added.

 The country, according to Leechiu, must increase length of lease to 80 to 90 years to enable foreign investors to stay for the long haul. He cited the case of Hong Kong where it continues to attract a huge number of investors even though it has been turned over to the Beijing government in 1997.

 Leechiu also stressed that the country must provide sensible master planning to maximize the value of the lands and achieve sustainability in the economy.

 Although the Philippines has been highly regarded in the international community, Leechiu said it still needs to implement reforms to get a bigger share of the investment pie.  In Asia Pacific, transactional values reached $127 billion in 2013.

“The Philippines should take advantage of the favorable climate to effect structural, economic and constitutional reforms that will lead to sustainable long-term growth,” said Leechiu.

Finding an opportunity in the midst of competition

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Category: Properties

27 May 2014

 

Written by Amor Maclang

HONESTLY speaking, I feel like I occupy sort of a strange niche in the world. I am a marketing communications specialist and have spent quite a number of years helping No. 1 and 2 brands across various segments establish viable business models.

At the same time, I am also somebody who helps develop businesses—property development included—from the ground up. And it’s because of that, that I see the world from two different directions. You might not think these worlds are very divergent from each other but in actual practice, the way marketing people think and the way that business development people think are very different. For example, let’s look at a big, looming, hairy issue coming up, which is the Asean Economic Community (AEC).

The year 2015 is slowly shaping to become a year of milestones for Asean countries, as we formally await the realization of the AEC. This is anchored on the provisions and policies set by Asean member-countries as one, unified regional economic bloc. Now we all know that the Asean Free Trade Area (Afta) is supposed to be a great boon to the regional economy because it’s going to liberalize trade by reducing taxes and tariffs. But like most blessings, this one is actually mixed because some of our most promising industries are just not geared for regional competition.

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A couple of months back, I actually discussed the implications of Afta to the Philippines based on a number of disciplines. Once the AEC formally takes effect, there will be a more liberalized trading among the Asean countries—Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. Such a development easily creates a vast economic market composed of 600 million people, which accounts for at least 8 percent of the global population, spread across 4.6 million square meters of prime real estate. This will be a direct result of the removal of both tariff and non-tariff barriers on both goods and services among the member nations, and is expected to facilitate the creation of deeper, better economic relationships with our partners in the region.

Aside from this, local developers will also get a more favorable access to a bigger resource—the regional workforce—that is eyed to play a significant role in fueling a stronger exchange of best industry practices and ideas among the AEC participants. There will also be a greater demand for skilled laborers to help the local property sector sustain the increased level of property development.

Cooperation over competition

Some property developers often find themselves intently studying the marketing strategies of their competitors, adapting the foundations of these strategies, and basically putting their own spin into what has actually been done.

When engaging in the business of property development, the traditional mindset has been to battle against competitors and engage them in all-out war. This way of thinking has been a cornerstone of capitalism and economics for so long that to think otherwise would be close to sacrilegious. However, this is a different time and what passed off as gospel in the past needs to be reassessed. In an increasingly global real-estate market with open borders and lowered tariffs, engaging in direct competition with foreign players might not be the most ideal scenario for any Filipino developer.

This particular thrust has been one of the key insights that we have been sharing to our real-estate clients—and to other brands from other fields, as well—as we help them prepare for the Asean integration. According to Yayu Javier, current president of the Philippine Marketing Association (PMA), what people need to understand about the Asean integration is that it seeks to “bring together the best of each country, its people, resources, companies, and make the Asean region more globally competitive…bringing together different players to work as one, and create a competitive offering to the global market.”

One thing we can also expect from the entry of other regional players can be the sudden surge in construction activity. With more industry players carrying more diverse concepts, we might see a host of mixed-use residential districts, retail, commercial and office hubs, and key infrastructures—airports, sea ports and many others more—racing to dot the skyline all at the same time. Also, there will be a significantly higher rate of consumer spending given the huge inflow of goods and services. This will then drive the development of more lifestyle-centric developments, such as malls, retail complexes and properties anchored on tourism, across the archipelago.

The impact of marketing

The role of marketing here is primarily focused on how the concepts and property developments can be best appreciated by the market.

Yes, one particular project can be appreciated because, say, for example, it is affordable, but it can also be appreciated because it speaks of the values that genuinely reflect the developer’s identity. Maybe also because it’s “packaged” differently. Or because the overall feel appeals to the design sensibilities of the market they serve. Or, maybe because of the simple reason that it’s classier. There are so many ways you can appreciate a development but what’s important is it all ties back to what you stand for.

The only message I would like to share is this: If we can teach our market to appreciate developments that truly speak of our values as Filipinos, as stewards of Mother Nature, as people who try to promote elements of sustainability in every way we can, then maybe we can teach the rest of the world to appreciate it, too. Before we open our gates to the rest of the Asean, and before you think you have to duplicate the sins of our neighbors in order to compete with them, maybe you should consider that we can teach people to appreciate and nurture the elements that make us who we are.

Experts: 6.5%-7.5% full-year growth rate still within reach

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Category: Top News

29 May 2014

 

Written by Catherine N. Pillas

WHILE the country’s first-quarter performance has proven “disappointing” and “below expectations,” the full-year outlook where local output could range from 6.5 percent to 7.5 percent is still within reach, provided further domestic reforms are pursued, according to a leading economist for Asia Pacific and some business organizations.

“The average for the [p]ast quarters has been at least 6-percent growth. We got spoiled with 7.2-percent growth. The consensus estimate is about 6.5 percent to 6.4 percent. So when you got 5.7 percent when everybody expect[ed] 6.5 percent, of course, it’s a bit of a disappointment.” Ramon del Rosario Jr., chairman of the Makati Business Club, said.

The performance places the Philippines just behind China and Malaysia, he quickly added.

The chief economist of IHS Global in Asia-Pacific, Rajiv Biswas, shared this view, saying the first-quarter GDP performance of the Philippines proved “somewhat below market expectations” and that for the first time growth dipped below 6 percent in nine quarters.

Biswas said the residual economic impact of natural disasters that hit the Philippines during the last quarter of 2013, particularly Supertyphoon Yolanda, was a key debilitating factor.

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He added the slowdown in private construction, which dipped 6 percent during the period, also contributed to the temperate first-quarter growth.

However, despite the underwhelming first-quarter growth, business leaders remain upbeat that the economy’s traditional growth drivers and the pursuit of more domestic reforms could still fuel continued economic progress down the line.

The economist said the outlook for the Philippines economy for the rest of the year until 2015 remains strong as private consumption and robust household spending proved robust in the first quarter of the year. Biswas similarly highlighted the spike in public construction, which rose 22 percent during the period, due to the pursuit of major public-infrastructure programs that are even now undertaken.

“Public-sector spending on post-disaster reconstruction work will also boost GDP growth over the next 18 months,” Biswas said in a commentary made available to news organizations.

Del Rosario backed Biswas’s sentiment, pointing out that the continuing post-Yolanda reconstruction effort should mean more vigorous growth in the future. He also said efforts should be taken to speed up the projects undertaken by the government.

Peter Angelo Perfecto, president of the influential Makati Business Club, said the country’s recent hosting of the World Economic Forum on East Asia and the anticipated trade missions that the event was thought to have encouraged, would only serve to boost the growth outlook.

Alfredo Yao, president of the Philippine Chamber of Commerce and Industry, however, took a more prudent stance, saying the first quarter is traditionally a slow quarter and that the second-quarter performance could be affected by the prevailing truck ban.

“The problem is the truck ban—this has a huge impact on GDP in the second quarter. It could be lower than 5.7 percent because majority of the volume of cargoes affected and industries are in Metro Manila. Hopefully, we can solve the truck-ban issue so that third-quarter growth won’t be affected,” Yao said.

Purisima: we’re still Asia’s No. 3

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Category: Top News

29 May 2014

 

Written by David Cagahastian

FINANCE Secretary Cesar V. Purisima downplayed the decline of the country’s gross domestic product (GDP) growth for the first quarter of this year, down to 5.7 percent from a high of 7.2 percent by the end of 2013.

Purisima said the slower growth rate factored in the major disasters that the country suffered last year, and has, nonetheless, put the Philippines as the third fastest-growing economy in Asia.

“The Philippines grew 5.7 percent in the first quarter of 2014 coming from a year of major disasters. Despite this, the Philippines ranked as the third-fastest growing economy in Asia, after China [7.4 percent] and Malaysia [6.2 percent],” Purisima said in a statement.

He said the country is still on track for its touted economic resurgence, with nine consecutive quarters of GDP growth registering above 5.5 percent to bring the average quarterly GDP growth under the Aquino administration to 6 percent.

“This announcement comes a week after the Philippines successfully hosted regional fora, such as the World Economic Forum and the Asean Finance Ministers’ Investors Seminar that showed that the regional and global economy is now setting its sights on the Philippines,” Purisima said.

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He cited other economic indicators that demonstrate the country’s stronger economic fundamentals, such as the growth of the manufacturing sector by an average of 6.9 percent; the increase in exports by an average of 5.5 percent; and the increase in fixed capital by an average of 8.8 percent.

“We have also been able to maintain high growth while keeping inflation within policy levels at 4.1 percent in the first quarter of 2014. On the fiscal side, government expenditures have increased by 12 percent over the same period last year supported by strong growth in revenue collections of 9 percent in the same period, with particularly strong performance in the Bureau of Customs, registering 26 percent year-on-year growth for the first quarter,” Purisima said.

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In Photo: President Aquino presides over the National Economic and Development Authority Board meeting at Malacañang on Thursday.   (Exequiel Supera / Malacañang photo bureau / PCOO)

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GMR-Megawide ready to spend more for MCIA

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Category: Top News

01 Jun 2014

 

Written by Lorenz S. Marasigan

LAPU-LAPU, Cebu—The concessionaire of the P17.5-billion Mactan Cebu International Airport (MCIA) may infuse more investments to expand the capacity of the planned international terminal in the next few years, a top official of the firm revealed.

GMR-Megawide Cebu Airport Corp. Chief Executive Advisor Andrew A. Harrison told reporters that his firm is keen on ensuring that the terminals at the Cebu-based gateway would not be congested even if the tourism sector here would post more robust growth.

The capacity augmentation is also based on the demand of airlines operating out of Cebu, such as Cebu Pacific and Philippine Airlines.

“Our expansion will be driven to meet the demands of the airlines on capacity. We will provide capacity ahead of schedule­—we will not be a constrained airport,” Harrison said.

He noted that GMR-Megawide is ready to pump in more investments should it see the need for the terminal’s capacity expansion.

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“We are ready to spend what is necessary prudently without burdening the consumer with the development that needs to be done,” Harrison stressed.

The tandem between GMR Infrastructures Ltd. and Megawide Construction Corp. bagged the multibillion-peso contract to develop the MCIA earlier this year.

“Within six months, people would start feeling the changes in the terminal. These include shorter queuing times for processing and reorganization of space and more comfortable seats,” Harrison said.

The firm will spend at least P30 billion three years from now, the official said, to build the new terminal. It involves the P14.4-billion premium that it offered to win the key infrastructure contract.

“Our aim is to make Cebu an international hub, for in doing so, we not only further promote the island, boost local business and draw in investors, but we also give an invaluable support to the country. And not only that—we make an even more significant mark on the Asian map,” GMR-Megawide President Louie Ferrer said.

The concessionaire should begin constructing the new passenger-terminal building by January 2015, which it should complete in three years, or by January 2018. This new terminal will be dedicated to international flights and will rise next to the existing passenger terminal building (PTB), to which it will be connected.

The existing PTB will then be renovated for completion in January 2019, when it will begin to serve the airport’s domestic clientele exclusively.