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Tag: Philippines

  • Industry Leader Rebuts Condo Oversupply Claims in the Philippines

    Industry Leader Rebuts Condo Oversupply Claims in the Philippines

    Recent reports suggesting a glut of condominiums in the Philippines—with units supposedly taking two to three years to sell—have come under scrutiny from Chris Malazarte, National President of the Accredited Real Estate Salespersons of the Philippines, Inc. (Acres Philippines Inc.).

    According to Malazarte, these conclusions overlook key considerations that shape unsold inventories.

    “The assessment oversimplifies the situation,” he said, emphasizing that variables such as location, price points, developer reputation, buyer preferences, amenities, and marketing strategies all play a part in determining sales outcomes.

    Malazarte cautioned that slower absorption rates in certain areas cannot be taken as a barometer for the industry at large.

    While some developments may experience lagging sales due to mismatched pricing or less strategic locations, numerous other projects have rapidly sold out, highlighting a steady demand for properties that align well with market needs.

    Malazarte also underscored that developers continue launching new projects precisely because their existing inventories are running low, an observation he says directly counters the notion of widespread oversupply.

    He called on analysts to adopt a more balanced perspective, noting that “real estate is not a one-size-fits-all industry.”

    Each project, he argued, requires a thorough examination of its unique circumstances and the macroeconomic trends driving local and national demand.

    Acres Philippines Inc. maintains that evidence-based, nuanced evaluations offer a more accurate reflection of the market’s condition.

    The organization remains optimistic about the industry’s long-term potential, citing the country’s robust economic fundamentals, the steady growth of the middle class, and ongoing urban development initiatives.

    These factors, Malazarte says, continue to bolster confidence in the Philippine real estate sector.

    BusinessNews.ph

  • Insight: The Philippines’ Bold Vision for Halal Industry Leadership

    Insight: The Philippines’ Bold Vision for Halal Industry Leadership

    The Department of Trade and Industry’s (DTI) establishment of the National Halal Industry and Development Office (NHIDO) signals the Philippines’ ambition to carve a significant niche in the global halal market, aiming to become a global leader by 2025.

    While ambitious, this initiative reflects the growing recognition of the halal industry’s potential as a driver of economic growth and international trade.

    A Shift in Halal Strategy

    The Philippines’ move to accelerate its halal industry development is a strategic pivot. Traditionally positioned as an emerging halal hub within the Asia-Pacific, the country now seeks to fast-track its aspirations on a global scale.

    This new focus aligns with the burgeoning demand for halal-certified goods and services worldwide, driven by a growing Muslim population and increasing adoption of halal principles by non-Muslim consumers for quality and ethical reasons.

    The NHIDO’s mandate to act as a central coordinating body underscores the need for streamlined efforts in a fragmented sector.

    Halal compliance spans food, pharmaceuticals, cosmetics, and even travel services. A unified approach is essential to integrate these industries and create a coherent value proposition for the Philippines on the global stage.

    Opportunities for MSMEs and Economic Growth

    A cornerstone of NHIDO’s strategy is simplifying halal certification and standards, particularly for micro, small, and medium enterprises (MSMEs).

    By addressing regulatory barriers, the DTI aims to empower smaller players to participate in the multi-trillion-dollar halal economy.

    This focus on MSMEs is significant, as they account for the majority of Philippine businesses and could unlock untapped potential in domestic and international markets.

    Furthermore, the “Halal-Friendly Philippines” campaign positions the country not only as a supplier of halal-certified products but also as a destination for halal-friendly tourism.

    This dual approach could boost both exports and inbound travel, creating jobs and stimulating sectors like hospitality, logistics, and retail.

    Infrastructure and Supply Chain Modernization

    The emphasis on halal-compliant infrastructure, including slaughterhouses, cold storage facilities, and regional trade hubs, addresses critical gaps in the halal supply chain.

    By establishing these facilities across Luzon, Visayas, and Mindanao, the NHIDO aims to ensure that products meet international standards while reducing logistical inefficiencies.

    These improvements will also enhance the competitiveness of Philippine halal products in export markets, particularly in Southeast Asia, the Middle East, and Europe.

    Countries like Malaysia and Indonesia have long dominated the halal industry; the Philippines’ efforts could challenge this status quo if executed effectively.

    Challenges to Overcome

    Despite its ambitious goals, the Philippines faces several challenges. Competing against established players in the global halal market requires significant investment in infrastructure, certification systems, and marketing.

    Gaining international recognition for Philippine halal standards will also be critical, as trust and credibility are non-negotiable in the halal economy.

    Another hurdle lies in fostering collaboration among stakeholders. The NHIDO’s success depends on partnerships with local government units, private enterprises, and international bodies.

    Ensuring these stakeholders are aligned on goals and standards will require careful coordination and effective governance.

    A Game-Changer for the Philippines

    The establishment of the NHIDO represents a pivotal moment for the Philippines’ halal industry. If the DTI’s vision materializes, the Philippines could position itself as a major player in a global industry that extends far beyond religious compliance into mainstream consumer trends.

    This initiative also underscores a broader narrative of economic diversification and resilience. By tapping into the halal market, the Philippines not only enhances its global trade portfolio but also reinforces its commitment to inclusive growth, leveraging cultural and geographic strengths to compete on the world stage.

    As the country embarks on this ambitious journey, the real test will be its ability to translate plans into action, ensuring that infrastructure, standards, and stakeholder collaboration come together to elevate the Philippines as a true leader in the halal industry.

    Business News Asia

  • DBM submits P5.024tr FY 2022 National Expenditure Program to Congress

    DBM submits P5.024tr FY 2022 National Expenditure Program to Congress

    The Department of Budget and Management has submitted the Duterte administration’s last full-year budget on August 23, 2021 to Congress for scrutiny and approval.

    With the theme, “Sustaining the Legacy of Real Change for Future Generations”, the FY 2022 National Expenditure Program (NEP) amounts to P5.024 trillion, which is equivalent to 22.8 percent of GDP and is higher by 11.5 percent than this year’s national budget.

    By Expense Class

    Bulk of the budget, in the amount of P1.456 trillion or 29.0 percent of the FY 2022 NEP, will go to Personnel Services expenditures to cover the hiring of healthcare workers and teaching personnel, the implementation of the third tranche of the Salary Standardization Law V, and the requirements of the 2018 Military and Uniformed Personnel pension arrears, among others.

    Capital Outlays are pegged at P939.8 billion while Maintenance and Other Operating Expenditures will reach P777.9 billion next year. Debt burden amounts to P541.3 billion, which corners 10.8 percent of the FY 2022 NEP and is lower by 3.4 percent year-on-year. The support to Government-Owned and -Controlled Corporations, composed of National Government subsidies and equity, sums up to P178.0 billion while Tax Expenditures remain the same with this year’s level at P14.5 billion.

    Finally, the allocation to Local Government Units (LGUs) will amount to P1.116 trillion. This includes the P959.0 billion National Tax Allotment share of LGUs, consistent with the Supreme Court ruling on the Mandanas-Garciacase.

    By Sector

    The Social Services sector will continue to receive the biggest chunk of the FY 2022 NEP with P1.922 trillion, which is higher by 15.2 percent compared to this year’s national budget. This will fund health-related services such as the continued implementation of the Universal Health Care Act, purchase of COVID-19 vaccines, procurement of personal protective equipment, and others. Education-related programs, including the implementation of the Universal Access to Quality Tertiary Education, will also be prioritized.

    This is followed by the Economic Services sector, which will receive P1.474 trillion or 29.3 percent of the proposed budget. This inched up by 11.4 percent compared to the FY 2021 budget and will largely support flagship programs under the Build Build Build Program.

    The General Public Services sector is allocated with P862.7 billion (17.2%), the Debt Burden with P541.3 billion (10.8%), and the Defense sector with P224.4 billion (4.5%).

    By Top Ten Departments

    The education sector covering the Department of Education (DepEd), State Universities and Colleges and the Commission on Higher Education (CHED), shall receive the highest allocation with P773.6 billion, higher by P21.9 billion or 2.9 percent compared to its share from the FY 2021 budget.

    This is followed by the Department of Public Works and Highways (DPWH) with P686.1 billion, Department of the Interior and Local Government with P250.4 billion, Department of Health and the Philippine Health Insurance Corporation with P242.0 billion, Department of National Defense with P222.0 billion, Department of Social Welfare and Development (DSWD) with P191.4 billion, Department of Transportation (DOTr) with P151.3 billion, Department of Agriculture (DA) and National Irrigation Authority (NIA) with P103.5 billion, The Judiciary with P45.0 billion, and the Department of Labor and Employment (DOLE) with P44.9 billion.

    In total, the budget of the top ten departments amounts to P2.71 trillion and comprises 53.9 percent of the FY 2022 NEP.

    Spending Priorities

    The FY 2022 NEP was carefully crafted to provide the necessary funding requirements to support the country’s resilience against the COVID-19 pandemic, to sustain the trajectory of economic growth, and to continue the legacy of infrastructure development.

    Building Resilience Amidst the Pandemic

    The government will continuously support the implementation of the National Health Insurance Program, with a budgetary support of P80.0 billion, to subsidize the health insurance premium of 13.2 million indigent families and 7.3 million Senior Citizens.

    To combat the spread of the COVID-19 virus, the intensified roll out of the Prevention, Detection, Isolation, Treatment and Reintegration (PDITR) strategy will be prioritized through the procurement of 758,700 complete sets of personal protective equipment (P819 million) and 11 million GeneXpert cartridges (P5.1 billion). Meanwhile, P17.0 billion will also be allotted for the continuous hiring and deployment of health service professionals through the Human Resources for Health Program.

  • Megaworld posts P2.6bn Q2 income, up 39%

    Megaworld posts P2.6bn Q2 income, up 39%

    Megaworld, the country’s largest developer of integrated urban townships, grew its attributable net income by 39% to P2.6-billion in the second quarter this year compared to P1.9-billion in the same period last year, as the company benefited from its strong office leasing business and the improved performance of its retail and hospitality businesses.

    Quarterly core revenues grew 20% as compared to the preceding quarter to P11.2-billion, highlighted by the recovery of all its business segments during the second quarter.

    The company’s rental income increased by 4% to P3.2-billion during the second quarter, with Megaworld Lifestyle Malls growing its rental income by 5% to P537-million, sustaining its recovery trend since the third quarter of 2020.

    The company’s lifestyle mall business rolled out initiatives to encourage foot traffic and expand online sales channels as the lockdowns were eased. It also continued its support to its retail partners in recovering from the impact of the pandemic by waiving rental fees since last year.

    Megaworld Premier Offices, on the other hand, registered a 4% increase in its rental income during the quarter to P2.7-billion. The company has been seeing bright prospects ahead on the back of the steady growth outlook for the BPO sector, which makes up the bulk of Megaworld’s office locators.

    Megaworld Hotels & Resorts, likewise, posted 16% growth in its hotel revenues to P389- million during the quarter, on the back of the stable performance of the company’s in-city hotels and the opening of Kingsford Hotel in Westside City last March.

    Real estate sales during the second quarter also grew 29% to P7.6-billion, as construction activities improved during the period.

    “We attribute the steady recovery of our businesses to our ability to identify opportunities amidst the pandemic, as we continue to focus our efforts to create products and services that meet the evolving needs of our customers. While everything remains uncertain as far as the impact of the Delta variant will affect business in the coming months, we remain hopeful that the increasing number of vaccinated Filipinos will help sustain consumer confidence henceforth,” says Kevin L. Tan, chief strategy officer, Megaworld.

    For the first six months of the year, the company’s attributable net income was slightly down by 7% to P5.0-billion year-on-year.

    Consolidated revenues reached P22.2-billion, but netting out the impact of interest and other income, the company’s core revenues registered at P20.6-billion. Rental revenues decreased by 13% to P6.3-billion during the first half of the year compared to P7.2-billion in the previous year.

    Real estate sales amounted to P13.5-billion, down 5% year-on-year, while reservation sales ended flat at P37.2-billion during the first half of the year. Hotel revenues also declined by 21% year-on-year to P724-million from P918-million as travel restrictions remained in place.

  • Petron closes H1 2021 with P3.87bn net income

    Petron closes H1 2021 with P3.87bn net income

    Petron Corporation sustained its positive performance as it ended the first half of 2021 with a consolidated net income of P3.87 billion, a remarkable rebound from the P14.24 billion net loss it suffered in the same period last year due to the pandemic.

    Oil prices steadily rose in the first semester this year with Dubai crude averaging US$72/bbl in June, up 44% from its December 2020 level. The bullish market was driven by the conservative stance of major oil producers in supply management, boosted by optimistic market sentiments with the global vaccination rollouts and gradual reopening of economies.

    With the continued recovery in prices, consolidated revenues of Petron’s Philippine and Malaysian operations for the first six months went up 14% to P174.13 billion from last year’s P152.36 billion despite lower sales volume.

    The Company’s overall sales volume was 7% lower versus the same period last year as the market continues to reel from the impact of the pandemic. The slowdown in sales to industrial accounts was however partially offset by the gradual improvement in the retail segment.

    Local sales in the service stations climbed by about 12% while volumes for lubes significantly improved by nearly 50%, reflecting the favorable performance of Petron’s world-class products in both the Philippines and Malaysia.

    Petron registered an operating income of P8.95 billion, from a loss of P14.54 billion a year ago. While regional refining margins remained suppressed, Petron – the only oil refining company in the country – resumed operations at its refinery in Bataan as crude prices steadily recover.

    Prices of petrochemical have likewise registered significant improvement on the back of higher demand. Savings on operating expenses and financing costs also helped the Company’s financial performance in the first semester of 2021.

    “Though we continue to face some challenges, we have seen tremendous progress this year. The increase in demand and continued improvement in international prices indicate that we are slowly but surely regaining lost ground as an industry. Our financial performance in Petron, due in no small part to our recovery efforts and prudent use of resources, is proving to be a complete turnaround from last year which we hope to sustain as we continue to move past the pandemic slump,” said Petron President and CEO Ramon S. Ang.

  • TOPS, one of Cebu’s top attractions, now open to tourists

    TOPS, one of Cebu’s top attractions, now open to tourists

    CEBU CITY – Tops Lookout, one of the top destinations in Cebu, is now open to tourists. However, only those 15 years old and above will be allowed in due to the strict health protocols of the Cebu City government.

    TOPS offers a 180-degree view of Metro Cebu, which includes the cities of Cebu, Mandaue, and Talisay as well as the island of Mactan where Lapu-Lapu City and the town of Cordova are situated. On the left side, one can also view a portion of Consolacion town.

    https://youtu.be/tlukJ6w-BHQ

    The area is top choice for lovers who want to get away from the hustle of the city but do not want to travel too far. In fact, Tops is in Cebu City!

    Located in one of the highest peaks in barangay Busay, Tops is less than 30 minutes away from the busy city traffic and crowd. One can go to the place via private vehicles, motorcycles, or taxis.

    Entrance fee is currently at P100. Food stalls are also operating inside for those who want to dine while enjoying the beautiful scenery.

    Visiting Tops at night is perfect as one gets to see the glimmering city lights and the beautiful Cebu-Cordova Bridge.

    (As of July 27, only those how are 16 years old and above are allowed to get inside TOPS).

  • Philippines and Vietnam reaffirm defense cooperation following 45 years of diplomatic relations

    Philippines and Vietnam reaffirm defense cooperation following 45 years of diplomatic relations

    The Republic of the Philippines and the Socialist Republic of Viet Nam marked their 45th anniversary of diplomatic ties on 12 July 2021. For the past 45 years, the two countries have shown notable developments of bilateral diplomatic relations through cooperation in various fields, including defense and security. Secretary Delfin N. Lorenzana and Minister of National Defense General Phan Van Giang have exchanged congratulatory letters to commemorate the anniversary.

    The Joint Statement on the Establishment of a Strategic Partnership, which was signed by former President Benigno Aquino III and Viet Nam’s Prime Minister Nguyen Tan Dun in November 2015, serves as a framework for the Philippines and Viet Nam to further develop confidence-building, boost friendly relations, and promote cooperation both at the bilateral and multilateral levels.

    In line with the Department’s policy thrust to prioritize defense engagements with the Philippines’ strategic partners, defense cooperation between the Philippines and Viet Nam have been developing throughout the years, particularly after the conclusion of the 2010 Memorandum of Agreement (MOA) on Defense Cooperation.

    The Department of National Defense of the Philippines and the Ministry of Defense of Vietnam conducted the inaugural Vice Ministers’ Defense Strategic Dialogue (VMDSD) in April 2015 in Hanoi, Viet Nam. Furthermore, the Defense Cooperation Working Group (DCWG) was established to monitor and evaluate existing defense cooperation activities, as well as explore other areas of defense cooperation. Personnel interaction have also been sustained through cultural and sports activities between the Philippine Navy and Vietnam People’s Navy.

    The conclusion of the said frameworks and establishment of cooperative mechanisms are manifestations of the shared commitment between the Philippine and Vietnamese defense sectors to enhance cooperation at all levels from policy consultations between the defense establishments to practical activities between the armed forces.

    As both defense establishments continue to work together, it is expected that the conduct of strategic dialogue, high-level visits, education and training exchanges, intelligence exchange, and defense industry and logistics cooperation, among others, will increase between the Philippine and Vietnamese defense sector in the coming years. (DND)

  • Remittances from Overseas Filipinos Drop 0.3% to $33.2bn in December 2020

    Remittances from Overseas Filipinos Drop 0.3% to $33.2bn in December 2020

    Personal remittances from Overseas Filipinos (OFs) dropped slightly by 0.3 per cent year-in-year to $3.205 billion in December 2020 from $3.216 billion in December 2019, according to data released by the Bangko Sentral ng Pilipinas (BSP).

    The slight decrease was attributed to the 0.7 per cent decrease in remittances from land-based workers with work contracts of one year or more to $2.494 billion from $2.512 billion recorded in December 2019.




    Meanwhile, remittances from sea-based workers and land-based workers with work contracts of less than one year rose slightly by 0.8 per cent to $647 million in December 2020 from $642 million in December 2019.

    The full-year 2020 personal remittances from OFs reached U$33.194 billion, lower by 0.8 per cent than the $33.467 billion recorded in 2019.

    Nonetheless, personal remittances remained a major source of the country’s foreign exchange inflows, with the 2020 level representing 9.2 per cent of the gross domestic product (GDP) and 8.5 per cent of the gross national income (GNI).

    Similarly, OFs’ cash remittances coursed through the banks fell slightly by 0.4 per cent to $2.89 billion in December 2020 from $2.902 billion in December 2019.

    Remittances from Land-based Workers Drop

    In particular, cash remittances from land-based workers fell by 0.7 per cent to $2.297 billion, while that of sea-based workers increased by 0.8 per cent to $593.2 million.

    The full-year OFs’ cash remittances amounted to $29.903 billion, lower by 0.8 per cent than the $30.133 billion registered in 2019. The actual annual decline in 2020 was, however, lower than the earlier forecast contraction of 2 per cent for the year.

    By country source, cash remittances from Saudi Arabia, Japan, the United Kingdom (UK), the United Arab Emirates (UAE), Germany, and Kuwait declined, while those from the United States (US), Singapore, Canada, Hong Kong, Qatar, South Korea, and Taiwan increased.

    The US posted the highest share of the total remittances at 39.9 per cent, followed by Singapore, Saudi Arabia, Japan, the UK, the UAE, Canada, Hong Kong, Qatar, and South Korea. The combined remittances from these countries accounted for 78.6 per cent of the total cash remittances. – BusinessNews.ph

  • Jollibee To Operate Yoshinoya Stores in the Philippines

    Jollibee To Operate Yoshinoya Stores in the Philippines

    Jollibee Foods Corporation announced that it will establish a 50/50 joint venture with Yoshinoya International Philippines to operate and expand the Yoshinoya brand in the country.

    Yoshinoya is a beef bowl business based in Japan and one of the largest and most recognized Japanese restaurant brands globally, with over 2,000 stores worldwide.




    The joint venture, which will be the franchisee for Yoshinoya in the Philippines, plans to open 50 stores in the country in the long-term.

    “We are very pleased to enter this joint venture with the largest foodservice company in the Philippines. Jollibee will certainly have a significant positive impact on Yoshinoya’s business in the country, with its extensive consumer knowledge, operational focus, and presence in the Philippines,” said Yasutaka Kawamura, CEO & President of Yoshinoya Holdings.

    Jollibee Chairman Tony Tan Caktiong said JFC will benefit from Yoshinoya’s experience and know-how in Japanese cuisine.

    The Philippines remains JFC’s most important market and Yoshinoya will be a strong addition to our presence in the country. I am confident that this is the beginning of a long-term and much larger partnership,” he stressed.

    Jollibee operates the largest foodservice and restaurant company in the Philippines with five wholly-owned brands – Jollibee, Chowking, Greenwich, Red Ribbon, Mang Inasal – which are market leaders in their respective segments.

    Yoshinoya is JFC’s first ever Japanese food chain. The Yoshinoya brand will be a strong addition to the foreign franchised brands currently being operated by JFC in the Philippines, namely: Burger King (with 98 stores), PHO 24 (1 store) and Panda Express (1 store). These brands contribute 3.5% to the Philippine business’ systemwide sales.




    Jollibee earlier announced plans to open more than 400 stores worldwide following a pandemic-hit 2020 that dragged sales and revenues to decline by double digits.

    Jollibee CEO Ernesto Tanmantiong said most of the planned 400 new stores will be outside of the Philippines, particularly in North America, Vietnam, and China.

    “We aim for very strong sales and profit recovery in 2021 versus 2020. In 2021 and the years ahead, JFC’s sales and profit growth will be driven by its international business. We believe that out of this pandemic, we will merge as a stronger business and organisation,” Tanmantiong said. – BusinessNews.ph