News Articles

ROBINSONS LAND
- Robinsons Land Profit Soars to P3.3 Billion
- JG Summit Holdings Bond Float Get PRS AAA Nod
- JG Summit Seen Raising P5B from Bonds Sale
- JG Summit Earns Nearly P4B in H1
- Robinsons Land Eyes P586 Million from Vimana Verde Condo Project
- Robinsons Land's P10-Billion Bond Issue Gets Highest Rating
- RLC Bonds Oversubscribed, Raised Issue to P5B
- Robinsons Land Mulls P10-Billion Complex at Old Magnolia Plant
- Robinsons Land’s Bond Issue Gets Top Rating
- Robinsons Land Income Up 11% in First Half
- Robinsons Land to Continue Building Residential Projects
- RLC Reports Earnings of P680 Miliion For the First Quarter of FY 2009
- RLC Reports Earnings of P3.15 Billion for the Fiscal Year 2008
- Robinsons Land to Develop Magnolia Lot
- Robinsons Land Oct - June Net Profit Up 17%
- Straight From the Top — Tips for Investing in Philippine Properties
- Interview with Leading Developer Robinsons Land
- Robinsons Land, Security Land and Taganito Mining Sign JV to Develop Mixed Use Complex in Ayala Ave.

PHILIPPINE REAL ESTATE AND ECONOMY
- 5% GDP Growth Seen Due to Poll Spending Boost
- Moody’s Upgrades the Ratings of RP Banks’
- CB Richard Ellis Bullish on RP Property in ‘10
- American Investors Bullish on RP Economy
- RP’s Ranking in World Bank Trade Survey Soars
- FDI Inflows Post Double-Digit Growth in January-October
- More Vibrant Markets Seen: PSEi Seen Challenging 3,800 Record Posted in ’07
- Driven by Electronics: This Year, RP May Expect Up to 15% Rise in Exports
- GIR Hit All Time High of $45.03B in 2009
- World Bank Hikes RP Growth Forecast to 1.4%
- Higher RP Growth Seen Despite ‘Ondoy’
- RP in Top 10 List for UK Investors
- Reserves Rise to Fresh Peak of $41.3 Billion
- Fitch Keep 'Stable' Outlook on RP Banks
- RP, 4 Companies Get Moody’s Upgrade
- RP Likely to Avoid Recession - NEDA
- RP Will Not Go Into Recession, Says Palace
- PSE is Region's Top-Performing Bourse in Q1
- RP Improves 5 Spots in Corruption Survey
- Poll Says RP, Indonesia to Evade Asian Contraction
- Feb. BOP Surplus at $469M, Jan. Remittances at $1.27B
- RP 'Good News' Road Show in US
- Philippines: One of Asia's Bright Spots
- RP Property Sector Optimistic
- Remittances Up to $16.4B in '08
- Positive RP Outlook Affirmed by Moody’s
- Moody’s Forecasts ‘Decent’ 3.3% Growth for RP this Year
- RP Banks Stable But Profits to Slide — Fitch
- RP Economy Grew 4.6% in 2008, Q4 GDP Growth at 4.5%
- RP Economy to Grow 4.7% in 2009
- Remittances in First Eleven Months Reach US$15B
- S&P: RP Looks Less Vulnerable to Global Downturn
- RP Less Vulnerable to Crisis Says Fitch
- 60,000 OFWs Hired Last Month
- RP Real Estate to Profit from Crisis
- Philippine Properties ‘Hottest’ in Southeast Asia

5% GDP GROWTH SEEN DUE TO POLL SPENDING BOOST
Ronnel Domingo, Philippine Daily Inquirer, January 29, 2010

The Philippine economy will grow by 5 percent this year, driven by a rebound in the first half due to election spending and the “lagged effects of a still loose” monetary policy, according to a Swiss investment research firm.

Edward Teather, an economist with UBS Securities, said in a report released Friday that current monetary policy was expected to push a significant recovery in credit.

“A recovery from the weakness induced by last year’s devastating storms should also help lift activity,” Teather added.

UBS’ forecasts are far higher than the government’s projected range of 2.6 to 3.6 percent as well as market analysts’ consensus of 3.8 percent.

“We believe the rebuilding effort following the storms should spur activity growth in the first half of 2010,” Teather said, referring to the damage inflicted by weather disturbances “Ondoy” and Pepeng.”

“Non-government election related spending by candidates ahead of the May 2010 elections should also boost activity,” he said.

The National Economic and Development Authority, based on a study of the 2007 elections, estimates that candidates’ spending pushes domestic output growth by 0.34-percentage point

Teather said that without a boost from election spending, and the economy increases as it has in the past 10 years, growth in 2010 would settle at 4.3 percent.

Also, Teather said global demand indicators remained supportive of remittances and a near-term recovery in export and manufacturing.

These will, in turn, further drive up consumer spending, which grew 5.1 percent year-on-year in the fourth quarter of 2009, and boost investment, which dropped 1.6 percent.

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MOODY'S UPGARDES RATINGS OF RP BANKS’
GoodNewsPilipinas.com, January 27, 2010

New York-based Moody’s Investors Service upgraded from ‘negative’ to ‘stable’ its fundamental credit outlook for the Philippine banking system due to improving economic conditions.

The Philippine banking system was one of the 12 banking systems upgraded by Moody’s in its latest “Asian Banking System Industry Outlooks.”

Aside from the Philippines, other countries whose banking systems were upgraded ‘from negative’ to ‘stable’ included Australia, China, Hong Kong, Indonesia, India, Korea, Malaysia, New Zealand, Singapore, Taiwan, and Thailand.

Moody’s senior credit officer John Tham and Moody’s senior analyst Youngil Choi stated in the report that improved economic conditions underpin the change in the Philippine banks’ industry outlook from negative to stable.

Tham and Choi pointed out that the strong overseas Filipino workers’ remittances would continue to boost private consumption while the country’s export industry would recover this year after contracting last year.

“We expect domestic consumption, helped by robust remittances, a better export outlook, and election spending – against a backdrop of stabilizing global conditions – to benefit the banking industry over the next 12 to 18 months,” they said.

The New York-based credit rater sees the country’s gross domestic product (GDP) growing by three percent this year from about one percent last year. The country’s GDP growth would be the slowest in Southeast Asia compared with Vietnam’s 5.7 percent, Indonesia’s 5.6 percent, Malaysia’s 4.3 percent, and Thailand’s four percent.

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CB RICHARD ELLIS BULLISH ON RP PROPERTY IN ‘10
GoodNewsPilipinas.com, January 26, 2010

The year 2010 promises to be another eventful year as economies are poised to recover from the adverse effects of the financial crisis.

Leading commercial property and real estate services adviser CB Richard Ellis (CBRE) recently made its forecast on the possible state of the Philippine property market in the coming year, saying that in spite of the volatile situation expected, the country still has much to gain with minimal risk in the medium to long term as long as cards are played right.

The country’s strength remains to be in the office sector, with continued demand in the BPO, offshoring, and outsourcing shared sectors, which have caused traditional businesses to expand.

Economies such as the US and Europe will continue to rely on cost-effective destinations for back-end processes.

“As the Philippines remains to be at the forefront of offshoring destinations with cheaper but good quality services and talent, it can further take advantage of this demand from recovering economies,” said CBRE chairman Rick Santos.

The growth in the offshoring sector, according to the firm, contributes to growth in the bricks and mortar businesses which paves the way for more buildings – developments in both the residential and tourism sectors sprouting up because of increased employment rates.

Meanwhile, the residential sector remains firm as banks remain liquid and continue to lend. Demand also continues from OFWs and from international and local banks.

Finally, highly competitive development firms are expected to continue to do well in 2010, including companies such as: Ayala, SM, Robinson’s, Megaworld, Greenfield, Filinvest, Daichi, The Kwok Group, JTKC, Rockwell, Vicsal of the Gaisanos, Ortigas, Anchor Land, Ascendas, DMCI Homes, Eton and Vistaland. These companies have shown themselves capable of competing regionally and internationally across all property segments with continuous production of cutting-edge developments.

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AMERICAN INVESTORS BULLISH ON RP ECONOMY
GoodNewsPilipinas.com, January 19, 2010

Investors from the United States are looking at better prospects for the Philippines in 2010, with strong interests in outsourcing, infrastructure, agriculture, manufacturing, tourism, creative industries, and power.

Robert Sears, executive director of the American Chamber of Commerce of the Philippines (AmCham), said the local economy is coming out already from the recession and the Philippines is on the radar screens of investors.

“I think were going to have a better year than last year and even better than 2008,” he added.

“Despite the elections, American investors are still looking at the Philippines because everything is competitive here when you benchmark against Indonesia, Singapore and Cambodia,” Sears stressed.

In particular, he said, American investors are looking into the BPO sector that is why it is necessary for Congress to pass the Department of Information Communications and Technology bill to build on the existing related laws like the E-Commerce law.

“There are 400,000 workers in the ICT sector and that is huge number of votes,” Sears said taking a hint for the presidentiables to push for the bill’s passage.

He, however, said that American investors not only look at the BPO sector but a good mix of interests from agriculture, infrastructure, tourism, power, credit industries and manufacturing.

“But the mining sector was a turn off at the moment because of concerns with policies especially with the LGUs. I think that is something that the government can help with legislation,” he added.

He said that investors tend to adopt a wait and see attitude during an election year, but said they are encouraging investors to come before the elections for their feasibility studies then come back after the elections.

He said that some American investors have renewed interests in the Philippines.

“We encourage them to come look now before the elections so they are in a better position to do more after the elections,” he said.

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RP’S RANKING IN WORLD BANK TRADE SURVEY SOARS
GoodNewsPilipinas.com, January 18, 2010

The Philippines stature as global trading nation rose in 2009. In the latest World Bank logistics survey that measures how efficiently countries trade their goods around the world, now ranks the country 44th and considered one of the over performers.

Germany emerged on top and Singapore second while Sweden was adjudged the next most trade-friendly nation in the study hailed by the Washington-based institution as “the most comprehensive world survey of international freight forwarders and express carriers.”

“Economic competitiveness is relentlessly driving countries to strengthen performance, and improving trade logistics is a smart way to deliver more efficiencies, lower costs and added economic growth,” said bank chief Robert Zoellick.

High income economies dominated the top logistics rankings, with most of them occupying important places in global and regional supply chains, the 155-nation “Logistics Performance Indicators” study showed.

By contrast, the 10 worst performing countries were all from the low and lower income groups.

“Although the study shows a substantial logistics gap between rich countries and most developing countries, it finds positive trends in some areas essential to logistics performance and trade,” the World Bank said.

“Some of them include the modernization of customs, use of information technology, and development of private logistics services,” it said in a statement.
Aside from the Philippines, other most significant “over-performers” among developing countries are China, which emerged 27th in ranking, India (47), Uganda (66), Vietnam (53), Thailand (35), and South Africa (28).

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FDI INFLOWS POST DOUBLE DIGIT GROWTH IN JANUARY-OCTOBER
The Philippine Star, January 13, 2010

MANILA, Philippines - Foreign direct investment (FDI) inflows posted a double digit growth in the first 10 months of last year due to stronger equity capital inflows and higher reinvested earnings, Bangko Sentral ng Pilipinas Governor Amando M. Tetangco Jr. reported yesterday.

Tetangco said FDI inflows jumped by 17.9 percent to $1.328 billion during the first 10 months of last year from a year-ago level of $1.126 billion as both equity capital and reinvested earnings recorded net inflows.

He pointed out that equity capital net inflows soared by 28.3 percent to $1.36 billion in the first 10 months of last year from $1.06 billion in the same period in 2008.

Data showed that equity capital placements jumped by 22.4 percent to $1.503 billion from $1.228 billion while withdrawals fell by 14.9 percent to $143 million from $168 million.

Tetangco said the bulk of the investments came from the US, Japan, Hong Kong, and the Netherlands.

He added that investments were made in the manufacturing, real estate, construction, services, financial intermediation, mining, trade or commerce as well as transportation, storage, and communications sectors.

The BSP chief also reported that reinvested earnings amounted to $125 million from January to October last year, a complete turnaround from the $131-million net outflow registered in the same period in 2008.

“Investors were encouraged to retain part of their earnings in local enterprises or corporations given the Philippine economy’s resilience amidst challenging global economic conditions,” Tetangco said.

Data also showed that other capital account including intercompany borrowing or lending between foreign direct investors and their subsidiaries or affiliates in the Philippines reversed to a net outflow of $157 million from a net inflow of $197 million.

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MORE VIBRANT MARKETS SEEN: PSEI SEEN CHALLENGING 3,800 RECORD POSTED IN ’07
Philippine Daily Inquirer, January 11, 2010

THE STOCK MARKET INDEX IS EXpected to be more vibrant this year, with the PSEi, buoyed by the low interest rate environment, seen challenging the 3,800 record posted in 2007.

According to First Metro Investment Corp., the local bourse will grow further consistent with the anticipated recovery of the global and domestic economies from the recent turmoil.

“Stronger-than-expected recovery and low interest rates will stretch the rally of the equities market this year. We see the PSEi challenging the 3,800 seen in 2007,” Eduardo Banaag Jr., vice president of FMIC, said in a press conference yesterday.

Despite a tough economic climate, the Philippine Stock Exchange saw improvements in share prices last year as the domestic economy managed to avoid a recession.

The PSEi last year stood at 3,052.68, up 63 percent from 1,872.85 in 2008.

FMIC officials said the low interest rate regime would prompt investors, who exercised some caution last year amid the global turmoil, to invest more in the equities market this year.

Low interest yields on fixed-income instruments, including government securities, encourage investors to place funds in equities.

Given this, FMIC president Francisco Sebastian said listed companies could easily attain a 15-percent earnings per share.

“Although the share prices have already recovered from pre-Lehman levels, we still see these increasing further,” Sebastian said in the same press conference.

Sectors that are expected to lead growth this year are power and other utilities, broadcast and mining, FMIC officials said. They said the financial sector would likely remain stable.

These projections are in line with the forecast made earlier by the Bangko Sentral ng Pilipinas.

BSP Governor Amando Tetangco Jr. said liquidity in the economy would be manifested strongly this year through higher investments in the equities market. Investments in bonds will still be substantial, but not enough to surpass the projected investments in stocks.

Analysts said the rising risk appetite of the market would benefit the stock market.

Sebastian, however, said there were risks to the projected surge in stock prices this year—such as faster inflation, which may prompt the central bank to raise interest rates, and a less-than-ideal election situation.

He said the rosy stock market forecast was hinged on the assumption that the elections would be peaceful and credible.

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DRIVEN BY ELECTRONICS: THIS YEARS, RP MAY EXPECT UP TO 15% RISE IN EXPORTS
Philippine Daily Inquirer, January 11, 2010

AFTER A SHARP SLUMP LAST year, the country’s exports are expected to pick up in 2010, registering growth of between 12 and 15 percent, fueled by the anticipated recovery of the global economy that may translate to higher demand for electronics and other goods.

The projection was made by First Metro Investments Corp. and University of Asia and the Pacific (UA&P), in their monthly publication Market Call.

Victor Abola, professor at UA&P, said in a press conference yesterday that the global recovery from a crippling crisis, described to be the worst since the Great Depression of the 1930s, would mean higher demand for goods coming from the Philippines and other emerging economies.

Demand for electronics, such as computers and cellular phones will pick up, thereby boosting the country’s exports earnings. Electronics exports are the country’s major dollar earner, accounting for about 60 percent of total export revenues.

Latest data from the National Statistics Office showed that Philippine exports reached $31.3 billion in January to October last year, down 27 percent from $42.89 billion in the same period the previous year.

Analysts said the drop in exports was mainly due to sluggish demand for electronics. During a crisis, consumers tend to focus expenditure on food and other basic goods, spending less on non-essential items.

Decline in exports came when the United States and other industrialized nations—major export markets of the Philippines and other developing nations—fell into a recession.

Weak exports were blamed for the slowdown of the Philippines’ own economy. The domestic economy is projected to have grown by only 0.8 percent last year from 3.9 percent the previous year and 7.2 percent in 2007.

“Recovery was earlier than expected because of combined monetary and fiscal policies,” Abola said, referring to most governments’ efforts to pump-prime their respective economies.

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GIR HIT ALL TIME HIGH OF $45.03B IN 2009
Philippine Daily Inquirer, January 8, 2010

THE country's Gross International Reserves (GIR) surged to an all time high of $45.03 billion in 2009, partly lifted by sustained growth in remittances and income from investments offshore.

At the end of 2008, GIR stood at $37.55 billion.

The BSP said in a report released Thursday that the 2009 GIR was enough to cover 9.1 months worth of imports and 4.2 times its external debt maturing within a year.

“There has been a substantial accumulation of reserves. GIR rose to a record high,” said BSP Governor Amando Tetangco Jr. in a speech during Thursday’s meeting of the Rotary Club of Manila.

He also said the country performed relatively better than most of its neighbors, as shown by the record GIR.

Gross international reserves is an indicator of a country’s ability to engage in commercial transactions—such as import and pay debts in foreign currencies—with the rest of the world. It is the total amount of foreign currencies managed by the BSP.

Foreign exchange inflows in the form of remittances, export income, revenue from investments in foreign instruments, as well as borrowings denominated in currencies other than the peso, help boost the GIR.

Remittances for 2009 were estimated to have reached over $17 billion, up by at least 4 percent from $16.4 billion the previous year.

Remittances continued to grow last year despite the global economic crisis.

The BSP said the GIR also saw a rise in income from its foreign exchange operations and foreign investments.

Borrowings made by the government and state-owned Power Sector Assets and Liabilities Management Corp. were also credited for the rise in GIR.

“Also contributing to the higher year-end GIR level were allocations of Special Drawing Rights (SDR), which were made available by the International Monetary Fund to its member countries,” the central bank said in the statement.

SDR, whose value is based on the values of selected currencies, is the currency used by the IMF.

The IMF gave its member-countries SDR allocations last year to help them cope with the ill effects of the global economic turmoil. The Philippines got $1 billion from the IMF.

Tetangco said the latest GIR indicated that the country’s external liquidity position was healthy. He said the Philippines need not borrow as much—as some countries had—just to boost its GIR.

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ROBINSONS LAND PROFIT SOARS TO P3.3 BILLION
January 19, 2010

ROBINSONS LAND CORPORATION (RLC) posted total revenues of P10.73 billion and a consolidated net income of P3.27 billion for fiscal year 2009. Net profits were up by 4% compared to the previous fiscal year, but excluding extraordinary items, RLC’s income grew by 10%.

Amidst a global financial crisis in the year 2009, RLC’s performed very well and above expectations. “RLC’s various business units managed to outperform because of our deep understanding of the market, commitment to operational efficiencies and a healthy balance sheet,” said Frederick Go, RLC President and Chief Operating Officer.

In its submitted audited financial statements, RLC’s Commercial Centers Division accounted for P4.21 billion of the real estate revenues for the year versus P3.69 billion last year. The 14% increase in revenues was principally due to the newly opened malls, specifically Robinsons Place Tacloban, Robinsons Cabanatuan, Robinsons Pulilan, and Robinsons Place Davao. Significant rental growths came from Robinsons Place Manila, Robinsons Place Iloilo, Robinsons Sta. Rosa Market, and Robinsons Otis. The division remains one of the company’s top growth drivers with a contribution of 39% of total Company revenues. Enterprise-wide average occupancy rate for the malls remained steady at 93%.

From October to December 2009, RLC opened four new malls, namely Robinsons Place General Santos, Robinsons Place Dumaguete, Robinsons Place Ilocos Norte and Robinsons Cybergate Cebu. The latter is a mixed-use structure housing a shopping center, medical clinics, and BPO tenants. These developments have been very well received by the market and are major catalysts of job creation, business generation, and lifestyle uplift in their localities. The Commercial Center Division currently has a total of 29 malls nationwide.

The Office Buildings Division, a leading provider of space to voice-based and non-voice based BPOs in the Philippines, reported gross revenues of P1.1 billion, representing a 26% growth over the same period last year. This increase was due mainly to new office space availability in Robinsons Cybergate Towers 2 and 3.

Accounting for 10% of total company revenues, the Division’s operating profit grew substantially by 20% to P738 million. The Division enjoys a stable recurring lease from its six office buildings, namely Robinsons Cybergate Towers 1,2,3, Robinsons Summit Center, Robinsons Equitable Tower, and Galleria Corporate Center. Due for completion this quarter is the Robinsons Cybergate Plaza, a strategically located office building along the EDSA corridor, which will add another 25,000 sqm in leasable area.

A significant new legislation, specifically Republic Act 9856 or the Real Estate Investment Trust Act, is a welcome development by the larger real estate companies. RLC’s commercial centers division and office buildings division are believed to be prime candidates for REITs because of their stable and large revenue base.

RLC’s Hotels Division posted revenues of P1.04 billion as against last year’s 1.14 billion. The decrease in revenues was principally due to the global travel slowdown. The Division’s net income before income tax finished the year at 130.49 million.

The Company successfully introduced its Summit Hotel Brand with last year’s opening of the premier 108-room Summit Ridge Hotel Complex in Tagaytay City. The new hotel enjoys a magnificent and commanding view of Taal Lake and the entire Tagaytay ridge. The complex includes a wide promenade and a top-notch learning facility.

Due for completion by 2nd quarter of this year, RLC will introduce its budget hotel chain - - GO Hotels. The first project will be a 220-room budget hotel situated at Robinsons Pioneer Cybergate Complex. GO Hotels is aimed towards the growing budget-conscious and no-frills business traveler.

The Residential Division’s combined realized gross revenues amounted to P4.37 billion while net income before tax stood at 1.36 billion for FY 2009. During the year, the Residential Buildings Division realized gross revenues of P3.81 billion, mainly from the progress of construction completion in projects such as McKinley Park Residences, East of Galleria, Gateway Garden Heights, Otis 888 Residences, Gateway Garden Ridge, and Fifth Avenue Place. Though the Division’s realized revenues contracted by 20%, it remains a major contributor in the company’s top line with a share of around 41% on the total revenues.

For FY 2009, RLC successfully pipelined three (3) residential condominium projects: the second tower of the iconic Sonata Private Residences located in the Ortigas Business Center, the first tower of the The Magnolia Residences located in New Manila, Q.C. and the first tower of the country’s first and only designer residences, Signa Designer Residences, in Makati with Security Land Corporation.

The Housing Division realized revenues of P560 million and income before income tax of P180 million. In the past year, the Division launched 5 new projects, including provincial residential subdivisions and low to mid height residential communities in Metro Manila.

Going forward, RLC has segmented its residential business into four brand categories - The Luxuria Portfolio, Robinsons Land, Robinsons Communities, and Robinsons Homes. The Company believes that this segmentation will allow its various divisions to focus on their respective markets and will enable them to better serve their customers. Despite the extremely challenging real estate markets globally, RLC’s residential business continued to generate quality revenues and profits last year. The general outlook for the sector is one of caution because of a seeming over supply situation. The Company, however, remains committed to the industry, and intends to launch several new and expansion projects under the various brands this fiscal year.

RLC operates on a diversified business model, allowing it to ride the cycles with proper resource allocation. For fiscal year 2009, Robinsons Land total assets stood at P51.48 billion, a growth of 27.7% from total assets of P40.31 billion in 2008. This was substantially due to two successful bond offerings totalling P10 billion. Stockholder’s Equity for the period stood at P25.57 billion, up by 11% from P22.99 billion last year. Total cash dividends declared by the Company last year was P686 million.

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WORLD BANK HIKES RP GROWTH FORECAST TO 1.4%
Ted Torres, The Philippine Star, November 05, 2009

MANILA, Philippines - The World Bank has upgraded its growth forecast for the Philippines this year, reversing an earlier estimate of a 0.3-percent contraction to an expansion of 1.4 percent, as it noted that an expected global economic recovery would further lift the inflow of remittances, boost exports and encourage consumer spending.

In its latest East Asia and Pacific update, the World Bank said the anticipated growth falls within the range of the Philippine government's official forecast of a gross domestic product (GDP) growth of between 0.8 percent to 1.8 percent in 2009.

"Remittances are staying strong. Government consumption and public construction will continue to benefit from the National Government’s spending in the remaining months of 2009. So, based on new data, we believe the government growth forecast for 2009 to be entirely feasible," World Bank country director Bert Hofman said yesterday.

Money sent home by overseas Filipino workers are expected to rise by four percent to a record $17.1 billion this year, the Bangko Sentral ng Pilipinas (BSP) said.

The World Bank initially projected GDP growth in the Philippines this year at 1.9 percent, scaling it down to –0.3 percent as the economy was teetering into a recession. But a stronger than expected output in the second quarter – boosted by government spending on infrastructure and social services – sparked renewed growth expectations.

The World Bank is the second multilateral agency to revise its growth projections for the Philippines. Last month, the International Monetary Fund said the country will grow by one percent, also reversing an earlier estimate of a one percent contraction.

Hofman pointed out that had it not been for the damages brought by the recent typhoons, the World Bank would have reverted back its 2009 growth forecast to the original 1.9 percent.

World Bank senior economist for the Philippines Eric Le Borgne said despite the positive outlook, the challenges remain daunting for the Philippines, especially on the fiscal side.

"The Philippine economy is still far from reaching its potential," Le Borgne said, adding that the Philippines must address the long-standing bottlenecks that depress growth and poverty alleviation.

He said the business climate remains one of the major stumbling blocks as both domestic and foreign investors continue to rank the Philippines as among the nations with the worst business climate.

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JG SUMMIT HOLDINGS BOND FLOAT GET PRA AAA NOD
Positive News Media, 10/09/2009

JG Summit Holdings, Inc. (JGSHI), in its disclosure to the Philippine Stock Exchange, announced its proposed P5-billion bond issue has received the highest rating possible from Philippine Rating Services Corporation (PhilRatings).

The bond, which has optional oversubscription notice of P5 billion, was rated PRS Aaa by Philratings.

It has a maturity period of five years and one day.

JGSHI stated a PRS Aaa rating denotes that such obligations “are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligation is extremely strong.”

The rating reflects the following key strengths of JGSHI: an investment portfolio which provides diversity in growth and earnings, thus mitigating the impact of a downturn in a particular industry; established market position of major subsidiaries; strong management team; sound liquidity; and improving profitability.

PhilRatings will continue to monitor developments in relation to JGSHI and can adjust its credit rating for the bonds should circumstances warrant a rating change.

JGSHI is one of the largest and most diversified conglomerates in the Philippines.

It is a holding company for a group of companies which includes: Universal Robina Corporation (branded consumer foods, agro-industrial and commodity food products), Robinsons Land Corporation (property development and hotel management), Digital Telecommunications Philippines, Inc. (telecommunications), Cebu Air, Inc. (air transportation), JG Summit Petrochemicals Corporation (petrochemicals), and Robinsons Savings Bank (banking services).

The company’s other business interests also include power generation and insurance.

JGSHI’s diversified portfolio provides flexibility to the company’s strategic direction, allowing JGSHI to focus its resources on industries which show attractive growth prospects.

Funding has been mostly internally-generated, with cash from operations amounting to P12 billion in the first semester of 2009.

PhilRatings expects an improvement in JGSHI’s earnings performance going forward, as signs of stabilization in the global financial markets temper the impact of market and foreign exchange (forex) risks.

Mark-to-market gains in the first half of 2009 amounted to about P782 million as compared to a loss of P1.8 billion recorded in the same period of 2008.(PNA)

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HIGHER RP GROWTH SEEN DESPITE ‘ONDOY’
Ronnel Domingo, Philippine Daily Inquirer, 10/06/2009

MANILA, Philippines - The Philippine economy can expect a growth rate higher than previous expectations despite the damage from tropical storm “Ondoy,” which may in fact drive expansion of domestic output, according to an investment research unit of UBS.

UBS Securities Pte Ltd., which is part of the Swiss bank group, said recovery efforts would mean a boost to economic activity mainly through government spending.

Also, UBS Securities said in its latest report on the Philippines that the country could afford to incur a budget deficit at more than half the P250-billion government target for the year.

The study, penned by economist Edward Teather, said that while business confidence and regional data suggest there is more to come for the Philippines in terms of the recovery, the human calamity caused by Ondoy could disturb the growth path of the economy.

“However, while disrupted economic activity along with damage to corporate and household balance sheets are both human and economic negatives, the rebuilding effort—probably led by the public sector—could provide a temporary lift for economic growth in coming quarters,” Teather said.

“We retain our forecast for 4.6 percent growth in 2010, but edge up our 2009 real gross domestic product forecast to 1.3 percent (from 0.8 percent)—less than we would have done in the absence of Ondoy,” he added.

Teather said that in the wake of the storm, precautionary buying of basic goods and services could cause a lift to inflation despite government price controls.

He said that even then, the Bangko Sentral ng Pilipinas should see this as temporary and thus play down risks to long-term inflation expectations and keep monetary policy settings easy for now.

Further, Teather argued that while any extra public expense would come on top of an already sharp deterioration in government finances, the Philippines can sustainably run a wider budget deficit in the range of 4 percent to 5 percent of GDP without pushing the debt-to-GDP ratio higher in 2010 and beyond.

Finance Secretary Margarito B. Teves last week expressed commitment to keeping the deficit at P250 billion or 3.2 percent of the total output of goods and services within the country this year, partly due to concerns that the country’s debts already represent some 56 percent of GDP.

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RP IN TOP 10 LIST FOR UK INVESTORS
Good News Pilipinas, September 20, 2009

The Philippines ranked ninth among 12 countries picked as key emerging markets for global investors in 2009, according to new research published by UK Trade & Investment.

The survey, titled “Which of the following emerging countries are you considering to invest in the next few years,” listed the Philippines among 12 countries now favored by investors.

Last year, a similar survey was conducted among several countries and the Philippines ranked 23rd.

In the Philippines, local and foreign chambers highlighted the need for continued reforms despite significant progress.

Despite the economic downturn, emerging markets support global profitability. Emerging market economies, on the back of the continued high growth and market size of China and India, have outperformed those of developed countries in 2009.

“It’s clear that many British businesses have been able to hedge their recession performance thanks to a strong presence in the emerging economies. And they do see a long game in which WTO-membership and improving legal and commercial environments will make it easier to do business there,” he said.

British Ambassador Stephen Lillie said he was very upbeat about the Philippines as an exciting investor haven in Asia.

“The global recession was a wake-up call for companies to diversify their export base and seek out new opportunities in the emerging world. We are encouraging UK business to look to the Philippines and find new business in this exciting new market.”

The United Kingdom is the top net Foreign Direct Investment (FDI) investor in the Philippines, investing $298.17 million last year. There are currently around 200 British companies active in the Philippines, ranging from big multi-nationals to small and medium enterprises (SMEs).

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RESERVES RISE TO FRESH PEAK OF $41.3 BILLION
Paolo Luis G. Montecillo, Business World, September 9, 2009

THE PHILIPPINES’ gross international reserves (GIR) hit a fresh record high in August, benefiting from an International Monetary Fund (IMF) liquidity boost, the central bank yesterday said.

The Bangko Sentral ng Pilipinas (BSP), in a statement, said the country’s foreign currency holdings — which serve to cushion against external shocks — increased to $41.312 billion as of the end of last month.

This topped the previous peak of $40.2 billion hit a month earlier.

“The large increase in the preliminary end-August GIR level was due mainly to the general allocation of Special Drawing Rights (SDR) which was made available by the IMF to its members, including the Philippines,” the BSP said.

The move aimed to boost the reserves of IMF member countries amid the global economic downturn.

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JG SUMMIT SEEN RAISING P5B FROM BONDS SALE
Doris Dumlao, Philippine Daily Inquirer, 09/07/2009

THE GOKONGWEIS’ JG SUMMIT Holdings Inc. may soon raise about P5 billion from the sale of domestic retail bonds to boost its working capital.

Taking off from the successful issuance by property unit Robinsons Land Corp. of P10 billion worth of domestic bonds recently, as well as the P3-billion sale of corporate notes by food unit Universal Robina Corp. early this year, JG Summit senior vice president and head of corporate planning Bach Johann Sebastian confirmed that JG Summit has been consulting with banks about a potential retail bond offer.

He said JG Summit has yet to name arrangers for the issuance. “We’re talking to a number of banks,” he said.

Other sources from the banking industry said that Dutch banking giant ING and Security Bank’s investment banking unit SB Capital Investment Corp. could be among those mandated to handle the offering.

Sebastian said plans for the retail bond offer could be finalized in the next two weeks as the conglomerate would like to see first the outcome of the Bureau of the Treasury’s offering of as much as P25 billion in retail treasury bonds (RTBs) starting on Sept. 15.

“This [RTB auction] will influence the trend on local interest rates,” Sebastian said, noting while there was ample liquidity in the domestic financial system, JG Summit would like to see where borrowing costs were going.

Asked how JG Summit intended to deploy potential proceeds from the issuance, Sebastian said: “As a holding company, we’ll always need fresh liquidity for various investments or we can use it to pay down some existing debts.”

The Bangko Sentral ng Pilipinas has slashed key interest rates by 200 basis points since December 2008, making it attractive for corporations to tap the local bond market for their commercial funding requirements. There has also been a strong appetite among retail investors for these instruments. Other corporations that issued retail bonds earlier this year were San Miguel Brewery Inc. (P38.8 billion) and SM Investments Corp. (P10 billion).

JG Summit has sounded off interest to tap the financial market months ago but was previously uncertain on whether to take the faster route of selling corporate notes to selected institutional investors rather than offering retail bonds to a wider investor base.

It was earlier reported that JG Summit has set aside P28 billion for capital spending this year, with most going to its telecommunications unit Digital Telecommunications Philippines Inc.

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FITCH KEEP 'STABLE' OUTLOOK ON RP BANKS
Michelle Remo, Philippine Daily Inquirer, 09/07/2009

MANILA, Philippines—Fitch Ratings is maintaining a "stable" outlook on Philippine banks, saying the financial institutions have shown resiliency amid the global economic crisis.

In its latest assessment of banking sectors of Asian countries, Fitch said it did not see banks in the Philippines suffering from any major rise in loan delinquencies. It also said the country's banking sector would maintain comfortable levels of capital and good quality of assets.

"Rise in delinquencies for most Philippine banks may continue to be modest and asset quality is likely to remain manageable. In view of this, banks' earnings are expected to be adequate to absorb rising credit losses," Fitch said.

The credit rating agency noted a slight increase in the Philippine banking sector's non-performing loans or the NPL ratio, from 4.5 percent as of end-2008 to 4.6 percent as of end-June. Fitch said, however, that the increase was minimal, adding that any further increase in defaults could be absorbed by banks given their continued profitability.

The NPL ratio is the proportion of soured loans to total outstanding loans extended by banks. Loans are considered sour if these have remained unpaid at least 90 days upon maturity.

"This [comfortable NPL ration] partly reflects the improved health of the Philippine corporate sector, compared with the more leveraged position of several companies during the last Asian financial crisis," Fitch said.

The Philippines, like neighboring countries, has adopted reforms in the regulation of its banking system following the Asian financial crisis of 1997, which led to rising loan defaults. The Philippine banking sector's NPL ratio peaked at 18 percent in 2001.

Fitch said banks in the country, contrary to their counterparts in the Western economies particularly the United States, have maintained prudent lending standards since the Asian financial crisis, thereby helping keep their NPLs at comfortable levels.

"Banks... have since become more prudent and have mostly confined their credit exposure to familiar top-tier names (typically conglomerates), which may have better resilience in a downturn," Fitch said.

Banks in the Philippines are assigned below-investment grade ratings by Fitch. Corporate entities cannot be given credit ratings higher than that of the national government. The Philippine government's rating with Fitch is two notches below investment grade.

Fitch said chances of delinquencies on bank loans rising have declined given improvements in the global economic environment. In other countries, falling income levels were blamed for the rise in loan defaults and thus lower profitability of banks.

Even if the crisis is not over, economists said the global economy has already moved past the worst of the global turmoil and is on its gradual way to recovery.

The Philippines grew by only 0.6 percent in the first quarter due to the ill-effects of the global crisis, which led to steep decline in the country's export income. In the second quarter, however, growth already accelerated to 1.5 percent.

The government expects the economy to further grow in the next two quarters, thereby posting an average growth for the full year of between 0.8 and 1.8 percent. Economic managers said the economy would recover further next year and grow by 2.6 to 3.6 percent.

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JG SUMMIT EARNS NEARLY P4B IN H1
Business World, August 15, 2009

JG Summit Holdings, Inc.’s profits surged by more than five times in the first half, with the Gokongwei-led holding firm citing the stabilization of global financial markets.

The firm said net income reached P3.87 billion, after the second quarter brought in a record P3.01 billion in profits. JG Summit said it recorded P1.14 billion in profits from financial assets alone, from a loss of P1.78 billion last year. Foreign exchange losses were likewise reduced by almost three-fifths to P1.07 billion.

JG Summit, however, noted that its improved performance was not solely due to financial assets. "Even excluding the effects of the financial and foreign exchange markets, our company still showed marked improvement as our core earnings for the first six months increased 12.3% from P4.90 billion in 2008 to P5.50 billion in 2009," the company said.

Cash flow grew by 26.6% to P13.31 billion during the period. The listed holding firm said consolidated revenues expanded by 15.5% to P53.34 billion, driven by the continued growth in sales and revenues of its core businesses: foods, airline, and telecommunications.

Consolidated cost of sales and services for the first half increased by 8.5% to P32.26 billion as the food business incurred higher costs due to increased sales volumes and more expensive raw materials. The airline and the telecoms businesses also incurred higher costs.

JG Summit’s snacks and beverage unit Universal Robina Corp. reported that revenues grew by 21.4% to P25.69 billion until June, due mainly to strong domestic sales and exports of branded products.

The Gokongweis’ property arm, Robinsons Land Corp., reported a P1.6-billion net income on P5.1 billion in revenues.

Telecommunication subsidiary Digital Telecommunications Philippines, Inc. had P6.69 billion in revenues, 35.9% higher from last year. The telco’s wireless segment said revenues grew by 62.4% to of P4.78 billion during the six-month period.

Cebu Air, Inc. generated P11.39 billion in sales, a 21.3% growth from last year, due to more routes and flight frequencies as well as bigger capacity. These and reduced foreign exchange losses and fuel hedging gains allowed the company to reverse a P15.66-million loss last year and post a net income of P1.82 billion in the first half

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RP, 4 COMPANIES GET MOODY'S UPGRADE
Good News Pilipinas, July 26, 2009

The Philippines and 4 local corporations had their credit ratings with Moody’s Investors Service upgraded.

The Philippines’ sovereign credit rating was raised by a notch—from B1 to Ba3—because of its resiliency in the face of a global downturn. The local firms are benefiting from the increase in the Philippines’ own credit score.

Moody’s said it upgraded the credit ratings of National Power Corp. (Napocor), Power Sector Assets and Liabilities Management Corp. (PSALM) and CE Casecnan Water and Energy Co.—all state-owned firms—from B1 to Ba3.

Ba3 is three notches below investment grade, while B1 is four notches below.

The outlook assigned by Moody’s to all four corporate entities is “stable,” which means that the existing credit ratings are free from risk of downgrades for at least a year.

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ROBINSONS LAND EYES P586 MILLION FROM VIMANA VERDE CONDOMINIUM PROJECT
Zinnia B. Dela Peña, The Philippine Star, July 28, 2009

MANILA, Philippines - Robinsons Land Corp. (RLC), the property development unit of the Gokongwei Group, is eyeing sales revenues of about P586 million from Vimana Verde Residen-ces, an exclusive mid-rise residential condominium development in Pasig City.

Situated on a 5,255- square meter property near the posh Valle Verde subdivision, Vimana will consist of three seven-story residential condominium buildings, offering a total of only 80 condominium units. The lot was acquired by RLC from Banco de Oro.

Frederick Go, president and chief operating officer of RLC, said Vimana is “an excellent starter home for young couples or start-up families given its strategic location, being close to the ortigas central business district.”

He said construction of the first building already started, with the target date for completion slated in the first quarter of 2011.

RLC vice president for operations and special projects Christopher Narciso added the project is targeted at upper to middle class families. Investors have an option to choose from two bedroom units and three bedroom units with sizes ranging from 72 square meters to 155 square meters. Each unit comes with a parking slot .

Unit price is pegged at P70,638 per square meter or around P5.1 million for a 72 square meter unit.

“At Vimana Verde Residences you have the freedom to customize, innovate and leave your distinctive style in your new home as customers have the option to buy bare unfinished units,” Narciso said.

Go said RLC is expected to post slightly better results in the third quarter of its fiscal year ending September this year compared with the January - March 2009 period.

RLC is building three more new malls, located in Davao, Tacloban and Gen. Santos, which will increase net leasable area by 71,000 square meters or 10 percent from previous year. This should increase RLC’s total mall network to 26 by the end of September this year from 21 in the same period a year earlier.

The mall in Davao is scheduled to be operational by end-September 2009.

For next year, the company intends to complete another three malls – in Cebu, Dumaguete and Laoag which will provide an additional net leasable area of about seven percent.

RLC, a member of the JG Summit Group of Companies, has set aside P8.7 billion for its capital expenditures this fiscal year, with 38 percent going to residential buildings, 37.7 percent for commercial centers, 14.4 percent for office buildings, six percent for housing and land development, and 3.9 percent for hotels.

For 2010 and 2011, the company is spending P5 billion each or a total of P10 billion for the construction of ongoing and new high-rise residential projects which include the first tower of its joint venture with Security Bank in Ayala Avenue, the second tower of Sonata Private Residences in Ortigas Center, the second tower of Trion Towers in Bonifacio Global City, an additional building in Woodsville and the first tower of the Magnolia Residences.

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ROBINSONS LAND'S P10-BILLION BOND ISSUE GETS HIGHEST RATING
Zinnia B. Dela Peña, The Philippine Star, July 23, 2009

MANILA, Philippines - Philippine Rating Services Corp. (PhilRatings) has maintained its highest rating of PRS Aaa for Robinsons Land Corp.’s proposed P10-billion bond issue.

“Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligations is extremely strong,” said PhilRatings, the sole domestic credit rating agency accredited by the Bangko Sentral ng Pilipinas.

The amount includes RLC’s initial issuance of P5 billion in July and a proposed second issuance of an additional P3 billion, with an oversubscription option of P2 billion. Proceeds from the issue will be used to fund the real estate firm’s capital expenditures.

In retaining its rating, PhilRatings reviewed RLC’s revised projections in relation to the increase in issue size. Based on its reevaluation, the business and financial profiles of RLC continue to be extremely strong, with minimal credit risk.

“While some financial ratios have slightly changed with the higher amount of the planned issue, measures of profitability, liquidity and leverage remain generally strong and sound,” PhilRatings said.

PhilRatings noted that RLC’s net and operating margins for the first half of fiscal year 2009 were higher compared with similar ratios the previous year-period as almost flat revenues were offset by lower expenses. RLC posted a net profit of P1.6 billion on revenues of P5.1 billion.

The company’s company’s initial P5- billion bond issue was more than four times oversubscribed. The bonds carried a yield of 8.5 percent per annum and a term of five years and one day.

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RP LIKELY TO AVOID RECESSION - NEDA
Marvin Sy, The Philippine Star, July 23, 2009

MANILA, Philippines - With recent forecasts of major world economies moving out of recession and the revised outlook on the US economy, the Philippine government has become even more confident the country would avoid a recession this year.

National Economic and Development Authority deputy director general Rolando Tungpalan, in his presentation before the Cabinet as part of the regular global recession impact monitoring news reporting, noted that the International Monetary Fund has indicated that the global economy is now moving out of recession.

The United States Federal Reserve has also upgraded its outlook on the US economy from a contraction of 1.3-2 percent to a slimmer negative growth of 1-1.5 percent.

Tungpalan also cited a report released by a US-based independent research firm Global Source, which indicated that the Philippines will not go into recession.

The latest data on overseas Filipino workers remittances coming from the Bangko Sentral ng Pilipinas also showed continued growth in this sector.

OFW remittances in May this year grew 3.7 percent, contrary to predictions made by several analysts that this would suffer from a contraction this year.

Tungpalan noted that the BSP expected a flat growth for OFW remittances this year in spite of the global economic slowdown. In contrast, the World Bank and IMF both forecast a four-percent contraction.

“So this clear evidence of positive developments do point out that recession is out of the question,” Tungpalan said.

Tungpalan cited Several other external factors to back up the government’s optimism on attaining its 0.8-1.8 percent growth target for this year.

He noted that China’s impressive 7.9-percent growth in the second quarter provides a huge opportunity for the Philippine economy in terms of expanding trade and investments.

China is among the major trading partners of the Philippines and with relations between the two countries continuing to be very strong, the country hopes to ride on the strength of China to move the economy forward.

“China continues to post strong growth. We reiterate the importance of engaging China for more trade, investment and tourism,” Tungpalan said.

In the domestic front, Tungpalan cited the positive outlook on retail trade, specifically the growth of car loans by the banks and the expansion of the major malls in the country.

Tungpalan said auto loans grew 48 percent in May, up from a negative 6.6 percent growth last year.

“We expect positive growth. We will not adjust our own expectations until we see the second quarter GDP performance which will be released on Aug. 27,” Tungapalan said.

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RLC BONDS OVERSUBSCRIBED, RAISED ISSUE TO P5B
Philippine Stock Exchange, July 8, 2009

Robinsons Land Corporation (RLC) has decided to increase the size of its maiden peso-denominated retail bond issue to P5 billion after receiving substantial demand from both retail and institutional investors.

James L. Go, Chairman and Chief Executive Officer of RLC, said that the company was very pleased with the overwhelming and positive reception by investors to RLC’s debut in the local bond market. He added that the issue was more than four times oversubscribed. Go added that the strong support from bond investors highlighted the impressive credit standing of RLC and showed the market’s confidence with the company.

RLC originally announced an issue size of P3 billion, and has opted to exercise its oversubscription option to issue an additional P2 billion worth of bonds to meet investor demand.

The bond issue has been assigned the highest credit rating of PRS Aaa by Philippine Ratings Services Corporation (PhilRatings), indicating that the debt issue is of the highest quality with minimal credit risk and that the issuer’s capacity to meet its financial obligations is extremely strong. In assigning the rating, PhilRatings took into account RLC’s consistent robust operating profit and strong cash flow from a diverse portfolio of real estate assets.

On the first half of its fiscal year ending September 2009, RLC registered an 11-percent growth in net earnings to P1.62 billion primarily due to the strong revenues from its mall operations. Total revenues reached P5.1 billion, of which P2 billion came from RLC’s commercial centers division, posting an increase of 10 percent from the previous level.

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RP WILL NOT GO INTO RECESSION, SAYS PALACE
Paolo Romero, The Philippine Star, May 30, 2009

MANILA, Philippines – The Philippines will not go into recession despite the slow growth registered in the first quarter of the year, Malacañang said yesterday.

Deputy Presidential Spokesman for Economic Affairs Rolando Tungpalan issued the statement following warnings from the National Statistics Coordination Board (NSCB) the country was on the verge of recession with the 0.4 percent gross domestic product (GDP) growth from January to March this year.

Tungpalan, who is also deputy director general of the National Economic Development Authority (NEDA), however, refused to openly dispute the NSCB statement.

He said that while the NSCB is under NEDA, the latter agency would want to keep the statistics board as independent as possible. An economy is considered in recession if it posts two consecutive quarters of negative growth.

“We don’t see why the April to June (economic) performance will not be better,” Tungpalan told a news briefing. “In simple terms, from January to March, there was a lot of uncertainty and that was the pervasive atmosphere felt by the business community and families.”

“The President was concerned and wants to stress that we are not in a recession,” Deputy Presidential Spokesman for Economic Affairs Prof. Gary Olivar said in the same news briefing.

He said “real spending” by the government for infrastructure programs is taking place this quarter after President Arroyo ordered the frontloading of at least 60 percent expenditures for 2009 be done in the first half of the year to pump prime the economy under the P330-billion Economic Resiliency Program.

He said the process took some time due to procedures like bidding. A check with the Department of Public Works and Highways showed the about 95 percent of the funds have already been “obligated,” Tungpalan said.

He said the business community is also expected to increase spending towards the middle of the year. He cited the announcement of officials of mall giant SM that they are rolling out billion-peso investments this year.

Families relying on remittances from relatives abroad are also expected to spend after saving in the first few months of the year due to the economic uncertainty.

Tungpalan said there are also signs that the slowing down of exports is starting to taper off while the business process outsourcing industry continues to grow along with the deployment of Filipino workers abroad.

“The President calls on the people to maintain their optimism and be assured that the government is doing everything it can. Let us not go overboard by this adverse news, let’s look at the long haul and work together for the long term,” Olivar said.

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ROBINSONS LAND MULLS P10-BILLION COMPLEX AT OLD MAGNOLIA PLANT
Zinnia B. Dela Peña, The Philippine Star, May 14, 2009

MANILA, Philippines – In a move aimed at further fortifying its presence in Metro Manila, residential and shopping mall builder Robinsons Land Corp. (RLC) is spending P10 billion to develop the old site of the Magnolia ice cream plant in New Manila, Quezon City into a self-contained, fully-integrated community.

In a statement, RLC said the project, The Magnolia Town Square, will rise on a five-hectare lot bounded by Aurora Blvd., Doña Hemady Ave. and N. Domingo St.

The project involves the construction of four residential towers between 36 to 38 storeys high, as well as a retail area and leisure facilities.

Trina B. Cipriano, RLC assistant vice-president, said The Magnolia Town Square is the first master-planned high-rise mixed-use complex in the upscale New Manila neighborhood, and is shaping up to be a choice destination for young couples and start-up families who have always made Quezon City their home.

Of the five-hectare property, 1.7 hectares are devoted to the residential component to be called The Magnolia Residences, which will house a total of 1,500 units. The first tower, consisting of 434 units, will be launched this year and is targeted for completion in June 2014.

A one-bed room unit will sell at a minimum of P2.8 million while a two-bedroom unit is priced at P4.6 million to P6.2 million. Three-bedroom units, on the other hand, will sell at P9.6 million.

The remaining three hectares of the New Manila property will be dedicated to a shopping center to address the lifestyle needs and interests of residents.

When completed, the whole community will be filled with all sorts of indoor and outdoor amenities and facilities, among which are swimming pools for children and adults, game rooms, multi-purpose rooms, a Zen garden, a library, a fitness center, and children’s indoor and outdoor playgrounds.

The construction of the second tower, according to Cipriano, will depend on the sales take-up of the first tower and prevailing market conditions.

“We’re very excited about the project’s great location. We think it’s a good product,” Cipriano said, adding that once completed, The Magnolia Town Square will not only enhance the market value of the property around it but also transform the New Manila landscape.

She said the project is strategically located and easily accessible to various transport services including the Light Railway Transit, as well as various schools and hospitals.

RLC has commissioned master-planner RTKL to draft conceptual drawings for the commercial complex and Asya Design Partners to draft designs for the residential component.

The Magnolia Town Square is RLC’s sixth mixed-use development after Robinsons Galleria in Ortigas, Robinsons Otis and Robinsons Ermita in Manila, Forum Robinsons Mandaluyong and Woodsville City in Parañaque.

RLC has so far delivered 11 residential condominium buildings, with three more to be turned over by yearend and 10 in various stages of construction. Another five towers are currently in the pre-selling stage.

To date, the RLC portfolio includes 29 residential buildings located in key urban cities in the metro, and four hotels. The company also owns and operates 24 shopping malls and will be opening five more this year while its housing and land development division continues to expand in the regions, bringing its total to 33 developments.

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ROBINSONS LAND'S BOND ISSUE GETS TOP RATING
Daxim Lucas, Philippine Daily Inquirer, 05/18/2009

MANILA, Philippines—The proposed bond issue of real estate developer Robinsons Land Corp. has been given the top credit rating by Philippine Rating Services Corp., citing the issuer’s strong financial standing.

In a press statement, PhilRatings said it had assigned a rating of “PRS Aaa” the property firm of the Gokongwei family, which is planning to issue as much as P5 billion in bonds.

The bond issue, with tranches maturing in five and seven years, will initially amount to P3 billion, with an option to increase by an additional P2 billion.

“Obligations rated ‘PRS Aaa’ are of the highest quality with minimal credit risk,” PhilRatings said. “The obligor’s capacity to meet its financial commitment on the obligation is extremely strong.”

According to PhilRatings, Robinsons Land’s rating is due to the fact that the company has “consistently reported robust operating profit and strong cash flow from a diverse portfolio of real estate assets.”

“Using conservative assumptions, projected cash receipts of RLC are expected to comfortably service debt obligations over the term of the rated issue,” the credit watcher said. “Its capital structure is similarly expected to remain conservative.”

PhilRatings likewise noted the “solid” track record of the Robinsons Land management team in the real estate industry, saying that the company “derives positive synergy from its mixed use development strategy.”

“While the formerly optimistic outlook for the real estate industry over the next few years has been tempered due to the global credit crisis, Robinsons Land is expected to remain resilient even in such an environment given its conservative financial policy and its prudent approach to pursuing various projects,” PhilRatings said.

Earlier, Robinsons Land reported an 11-percent increase in its earnings for the first half of its 2009 fiscal year due to strong revenues from its mall operations, with income for the first six months of its current fiscal year hitting P1.62 billion.

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ROBINSONS LAND INCOME UP 11% in FIRST HALF
Philippine Daily Inquirer, May 16, 2009

MANILA, Philippines—The Gokongwei Family’s real estate arm reported Friday an 11-percent increase in earnings for the first half of its 2009 fiscal year due to strong revenues from its mall operations.
In a press statement, Robinsons Land Corp. said its income for the first six months of its current fiscal year hit P1.62 billion.

“The company continues to perform well despite the challenges the industry faces,” said Robinsons Land president Frederick Go.

Its commercial centers division contributed 40 percent, or P2 billion, to the company’s gross revenues, posting a 10-percent growth.

Go said significant growth contributors were the Metro Manila malls led by the Midtown wing of Robinsons Place Manila. Other provincial malls also reported growth in rental revenues, while significant rental increment was also contributed by the newly opened mall in Cabanatuan City, Nueva Ecija.

The company has several new malls in the pipeline scheduled to open this year in Laoag, Cebu, Dumaguete, Tacloban and General Santos City.

Robinsons Land’s high rise residential buildings division accounted for 34 percent of the company’s revenues.

The business unit’s six-month performance resulted in realized revenues dropping by 15 percent to P1.74 billion.

Revenues were realized from recently launched projects such as East of Galleria, Gateway Garden Heights, Woodsville Viverde Mansions, Otis 888, Gateway Garden Ridge, Fifth Avenue Place and Bloomfields.

The company said it intends to launch five projects this year, including the Magnolia Residences and Sonata Private Residences 2.

Meanwhile, its office buildings division contributed 10 percent, or P503.1 million, to Robinsons Land’s revenues, which went up by 33 percent from last year’s P379.3 million.

The company’s hotels division showed a decline in revenue by 16 percent, from P581.3 million last year to P491 million this year.

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PSE IS REGION'S TOP-PERFORMING BOURSE IN Q1
Business World, 04/14/2009

The Philippine Stock Exchange (PSE) emerged as Southeast Asia’s top-performing bourse in the first quarter, bringing optimism to analysts who were optimistic yesterday that the market would be able to sustain gains.

In a statement yesterday, the bourse said the benchmark Philippine Stock Exchange index or PSEi went up by 6.05% to 1,986.22 from January to March, outperforming stock exchanges in the ASEAN region.

"We are not spared from the wrath of the contagion yet our strong fundamentals have kept our heads above-water where others have sunk in the recession whirlpool," PSE President Francis Ed. Lim said.

Except for the Jakarta composite index, which closed higher by 5.8% in the first quarter, the rest of the region reported losses.

The Vietnam Stock Index for instance plunged by 11.07%, while the Stock Exchange of Thailand index declined by 4.1%.

The Straits Times Index of Singapore also fell by 3.5% along with the Kuala Lumpur composite index which slipped by 0.48%.

In March alone, the PSEi closed higher by 6.09%, its biggest month-on-month gain in almost a year and a half. As of yesterday, the market has already gained 9.1% to 2,043.20.

The domestic market capitalization of listed companies reached P2.66 trillion as of end-March, the highest level since October 2008’s P2.61 trillion.

The bourse said value turnover has also been steadily growing to almost P2.5 billion a day last month from the P1.49 billion average turnover per day in January.

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RP IMPROVES 5 SPOTS IN CORRUPTION SURVEY
Good News Pilipinas, 04/13/2009

Indonesia and Thailand are perceived as Asia’s most corrupt economies, with last year’s cellar-dweller the Philippines making a marked improvement, an annual survey of foreign business executives.

Singapore and Hong Kong retained their top two rankings as the region’s least corrupt economies, although there are concerns about private-sector fraud, according to the survey by the Political and Economic Risk Consultancy (PERC), made available to Agence France-Presse.

Perceived as Asia’s most corrupt country in the 2008 survey, the Philippines had a score of 7.0 to rank sixth from the bottom this year. The country’s customs and tax bureaus, police and politicians have the meanest reputation for corruption in the country, the consultancy said.

1. Singapore, 1.07
2. Hong Kong, 1.89
3. Japan, 3.99
4. South Korea, 4.64
5. Macau, 5.84
6. China, 6.16
7. Taiwan, 6.47
8. Malaysia, 6.70
9. Philippines, 7.0
10. Vietnam, 7.11
11. India, 7.21
12. Cambodia, 7.25
13. Thailand, 7.63
14. Indonesia, 8.32

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POLLS SAYS RP, INDONESIA TO EVADE ASIAN CONTRACTION
Reuters, Business World, March 19, 2009

BANGKOK — Singapore will be Southeast Asia’s weakest economy, shrinking nearly 5% this year, while Thailand faces its worst recession in 11 years, reflecting a collapse in exports across Asia, a Reuters poll shows.

SINGAPORE is expected to be the hardest hit economy in Southeast Asia.

The Philippines and Indonesia will be the only economies in the region to record growth this year but that growth will be sharply slower than in previous years, with Indonesia hit by falling prices of commodities, the bulk of its exports.

Singapore’s gross domestic product (GDP) is set to shrink 4.9% in 2009, according to the median forecast of the Reuters quarterly poll.

It would be city-state’s worst-ever economic slump and mark a sharp a turnaround after averaging 6.4% annual growth over the past five years.

As a small, open economy Singapore is being badly hit by the global downturn although analysts foresee it rebounding 3.9% in 2010 as fiscal stimulus kicks in.

In contrast, Southeast Asia’s biggest economy, Indonesia, is poised to expand by 4.0% this year and 5.1% in 2010 as exports contribute only about a third of GDP, making it much less dependent on trade than its neighbors.

Still, the growth forecast is well down from a 4.8% estimate in a poll three months ago. Weak exports and falling commodities prices weigh on growth, and analysts said the government needs to take further steps to support the economy on top of last month’s $6.1-billion fiscal stimulus package.

In Malaysia and Thailand, demand is hurt by crumbling exports. Thailand’s economy is set to shrink 1.5% this year while Malaysia will see a 1.2% contraction. Malaysia launched a $16-billion stimulus after January exports fell 28%, the biggest drop in nearly 30 years.

The poll forecast Malaysia would pick up slightly next year, with GDP growing 2.8% while Thailand is set for a 2.9% expansion in 2010.

First-quarter Thai GDP data due next month is expected to confirm that Southeast Asia’s second-largest economy is in recession after growth crashed by a record 6.1% in the fourth quarter of 2008 and exports plunged 25% in January. The forecast that the economy will shrink 1.5% this year reverses a 2.8% growth forecast three months ago and an actual 2.6% expansion in 2008.

"We see downside risks to remain with the advanced economies that might continue to slide deeper. In such a scenario, all export-led Asian economies including Thailand will likely be dragged down from this projection," said Pimonwan Mahujchariyawong, an economist at Kasikorn Research.

With tens of thousands laid off by exporters and tourism suffering from Bangkok airport’s closure amid political protests in November, aggressive stimulus spending by Prime Minister Abhisit Vejjajiva’s government and interest rate cuts will not spur demand enough to offset export falls, analysts said.

For the Philippines, the poll forecast growth of just 2.3% this year, lower than a 3.3% estimate in a similar poll in December and below government expectations for at least 3.7%, as a global recession chokes exports and slows remittance inflows.

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ROBINSONS LAND TO CONTINUE BUILDING RESIDENTIAL PROJECTS
Jose Bimbo F. Santos, Business World, 02/19/09

GOKONGWEI-LED Robinsons Land Corporation’s residential building division sees no letup in its construction projects this year, even as the slowing global economy continues to drag down growth.

"So far, none of our projects are on hold and neither are we downsizing any projects," Robinsons Land Senior Vice-President Raoul Littaua told a press briefing on Tuesday.

The property arm of the Gokongwei group will continue launching new luxury and mid-level projects this year.

Robinsons Land also does not expect a substantial decline in the high-end market, which it said is "less susceptible to the global slowdown since it’s a small niche market composed of high net value investors."

"[Investors] still have to put their money somewhere and while real estate may not always provide high returns immediately, these investments are considered safer and more stable," Mr. Littaua said.

Robinsons Land credits growth amid the global slowdown to its "mixed-use development concept, innovative pricing strategy, and nondependence on a single market or geographical segment."

While sales from the US market may decline, Mr. Littaua noted that this might be offset by sales to foreign investors from other Asian countries and Europe.

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FEB. BOP SURPLUS AT $469M, JAN. REMITTANCES AT $1.27B
Philippine Daily Inquirer & Business World, 03/16/2009

The country recorded a balance of payments surplus of $469 million in February after a surplus of $1.735 billion in January, the central bank said on Monday.

In January, the National Government issued $1.5 billion worth of commercial bonds, covering the government’s foreign borrowing needs for the rest of the year.

The proceeds of the offering made up the bulk of the January BoP surplus.

The central bank has predicted a BOP surplus of $700 million in this year. The cumulative surplus in the first two months of the year has reached $2.204 billion.

Remittances from overseas Filipino workers totalled $1.266 billion in January, marginally higher from $1.264 billion in January 2008, the Bangko Sentral ng Pilipinas (central bank) said on Monday.

The inflows in January fell from $1.4 billion in December, despite a central bank forecast on Friday that they would climb.

But University of Asia and the Pacific Economist Victor A. Abola said the slower growth in remittances was not worrying, especially because the peso’s depreciation has mitigated the negative impact.

"Since there is a depreciation of the peso from last year, the actual money that came in may be 15% higher [in value]," he said in a phone interview.

He said the slowdown is not an indication of a trend for the rest of the year either, saying that remittances are likely to pick up in the second quarter.

Remittances are seasonally at their lowest in the first few months of the year, with inflows picking up mid-year during school enrollment period and in the holiday season towards the end of the year.

The central bank also said that remittances, a key pillar of the domestic economy, will likely stay flat in 2009 over 2008's $16.4 billion. But, according to the median of a Reuters poll of 10 economists, remittances will fall 6.0 percent this year from 2008.

The BSP said the government has also "forged" hiring agreements with Canada, Australia and other countries in the Middle East, particularly in the health-care, education, power and real estate sectors.

The government has also sent labor teams to crisis-affected host nations, which include South Korea, Taiwan and UAE, to help displaced OFWs there find employment in the same countries or in other countries.

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RP 'GOOD NEWS' ROAD SHOW IN US
Philippine Daily Inquirer, 03/05/2009

CALIFORNIA, United States -- The Philippines is no longer the “sick man of Asia,” Philippine Cabinet Secretary Edgardo Pamintuan declared in a series of dialogues with Filipino-American community leaders in the United States.

“It used to be that when America sneezes, the Philippines is already suffering from pneumonia. But as the US, Japan, and many other countries slide deeper into recession, the Philippines has still been registering respectable economic growth,” Pamintuan said.

Pamintuan, chairman of the Subic-Clark-Alliance for Development, is head of a four-man delegation from the Philippines on a “good news” road show about the economic performance of the country in the face of the global crisis; the developments of key infrastructure projects; as well the progress of the conversion of Clark and Subic from military to economic bases.

With Pamintuan, who is also development champion for the Luzon Urban Beltway super region and presidential adviser for external affairs, are Alexander Cauiguiran, executive vice president and chief operating officer of the Clark International Airport Corporation, Undersecretary Danilo De Austria Consumido, and Leonardo Kirk Galanza, director of
the Office of External Affairs of the Office of the President.

Pamintuan and his team met with leaders of the Filipino-American community in New York, Chicago, and Los Angeles. They will meet with Filipino-American leaders in San Francisco this weekend.

Noting that infrastructure development is key to mitigating the impact of the global crisis, Pamintuan enumerated several key infrastructure projects being implemented in the Luzon Urban Beltway super region, which covers Central Luzon, Metro Manila, and the Southern Luzon provinces.

He said these projects are mainly road and highway networks, rail systems, airports, and seaports that are aimed to interconnect the production and industrial enclaves of Southern Luzon to the commercial and consumption centers of Metro Manila, and to the rest of the world through the freeports of Clark and Subic.

“We are trying to create a seamless network of multi-modal transport-oriented infrastructures that would promote greater efficiency in the movement of goods, services, people, and information,” Pamintuan said, adding that these projects would greatly
reduce the cost of doing business.

“Because of the global crisis, companies would now be locating to areas where there are efficient facilities and where the cost of doing business is lower. Add to this the availability of highly-skilled Filipino labor, I believe we can even take advantage of the
opportunities offered by the global economic situation,” he explained.

Consumido, meantime, presented the measures being put in place by government to mitigate the impact of the global economic meltdown. He cited the optimism of global financial institutions and credit rating agencies on the chances of the Philippines in even benefiting from the situation.

For his part, Cauiguiran presented the dramatic development of Clark and Subic as freeport zones where major global economic players are now among their locators. He also cited the record growth in passenger traffic of the Diosdado Macapagal International Airport (DMIA) in Clark, which, he said, is fast developing to be the main international
gateway of the country.

He said the DMIA has better runways and radar systems that can accommodate the biggest airplanes in the world, including the gigantic Airbus 380. The DMIA has since become a hub for budget international airlines catering to overseas Filipino workers from Central and Northern Luzon.

On the issue of human rights, Pamintuan said that the recent US State Department country assessment on human rights in the Philippines is “more or less fair.” He said the report noted that the necessary policies, laws, and institutions are in place to protect human rights, but their implementation has to be more strictly ensured.

He declared that the human rights situation has greatly improved in the Philippines in the last two years, particularly on the issue of unexplained killings. He said that from a high of 145 verified cases in 2006, the figures went down to six in 2007 and to five in 2008.

“We should have zero tolerance on political killings, but there is still a long-running insurgency in some parts of the countryside, and a Moro rebellion in the south. These are dirty little wars, and the combatants of both sides are accusing each other of committing certain atrocities,” said Pamintuan, a human rights lawyer imprisoned during
Martial Law.

“There is no country in the world that can claim a perfect human rights situation,” he said. “Not even the US can lay claim to that.”

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PHILIPPINES: ONE OF ASIA'S BRIGHT SPOTS
The Good Balita, 02/16/2009

The Paris-based International Chamber of Commerce said the Philippines remains one of the economies in the region insulated from the effects of the global economic downturn.

This was the observation of Dr. Victor Fung, chairman of the ICC.

Dr. Fung is the first chairman from Hong Kong of the ICC, the largest, most representative business organization in the world with hundreds of thousands of member companies in over 130 countries spanning every sector of private enterprise.

“I think the Philippines is one of the economies in the region that has been relatively insulated from this tsunami. I am very impressed with the way the Philippine economy has functioned,” Dr. Fung said.

“So I think it (Philippines economy) is terrific, is one of the brightest spots in the whole region,” he added.

Although the Philippine exporting industry has been affected by the global recession, Fung said this would be temporary due to the uninterrupted remittances from Overseas Filipino Workers (OFWs) and other robust businesses, such as the business process outsourcing (BPO) industry.

The continuing reforms and policies have firmly put the Philippines on a path to stability and growth which, Fung said, has maintained the momentum in foreign investment.

“Obviously your exports have been somewhat affected but still going on very strongly. That is not a major part of your economy. I think that remittances have kept up and your BPO has really been developed very strongly due to the very good policies of the government that started a few years ago,” Fung said.

“In today’s environment it is absolutely essential that we maintain the flow of trade. Trade is the lifeblood of the international economy. In my capacity as chairman of the International Chamber of Commerce (ICC) which is the voice of global business, I think the idea of making sure that we keep each other informed of our respective presence in keeping the global trading system open, it is very important,” Fung said.

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RP PROPERTY SECTOR OPTIMISTIC
Tessa Salazar, Philippine Daily Inquirer, 01/17/2009

IF the seers are bullish in the year of the ox, so are realtors and property developers. And as property analysts see the bright and gloomy spots, real estate players and real estate-related companies are seeing the gray areas as opportunities.

Alejandro S. Mañalac, president of the National Real Estate Association, said the recent movements of more experienced developers, which he described as those who have been in the business for at least 20 years and have experienced at least 3 economic “cycles” and worse crises, suggest that the latest financial situation is still “almost business as usual.”

He added that these experienced developers are still launching “new but carefully conceptualized projects focused on very specific end-user target markets.”

Mañalac said the difference between the Philippines and its first world counterparts is that “we are more experienced, if not ‘experts’ when it comes to crises. With each crisis under different periods and different administrations, we have had valuable learnings that have caused reforms in our banking and economic policies.”

He added that "unlike the most recent economic turmoil (in 1997) when the Philippines got the ‘flu’ almost the day after our neighbors had it, catching us unprepared, now we are seeing it approaching and giving us time to prepare.”

Manalac said that while it is true that sales for investor-oriented projects have slowed down, the “real” need for housing, especially for the middle to low-end markets, is very much present.

“It is the availability of financing for these first homebuyers that will move this market. Investors now should actually look at buying end-user oriented projects, either to flip or to have them leased in the future,” he said.

Usual tendency
“The usual tendency of investors is to look at properties/projects/units from their own perspective, from their high standards, from their personal tastes. But actually, a rich buyer can consider investing at low-cost projects and even buy several units since the demand will always be there for these type of projects,” he added.

According to Mañalac, another market that can be considered are the foreign investors who are looking for alternatives other than the United States and Europe. He said that Asia appeals to them as a good choice and the relatively stable economy in the Philippines is definitely an attraction for them.

“Even Fitch’s ratings show a positive and stable outlook for the Philippine economy and real estate has always been proven as the safest investment. In fact, real estate is the only investment where there are no mistakes which cannot be corrected by time because of appreciation.” He advises players to “go for the end-user market.”

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REMITTANCES UP TO $16.4B IN '08
Business World, 02/16/2009

Money sent home by overseas Filipino workers (OFW) continued to post strong growth last year despite the global financial downturn that has resulted in massive job loss abroad.

In a statement Monday, the Bangko Sentral ng Pilipinas (BSP) said OFWs sent $16.4 billion through legal channels in 2008, 13.7% higher than the total remittances recorded by the BSP the previous year.

This is slightly higher than the BSP's 13% growth forecast or $16.3 billion in remittances for the year.

"Amidst the challenges posed by the global financial market strains and the economic downturn experienced by most host economies, remittances from overseas Filipinos remain a dependable source of foreign exchange for the economy," BSP Governor Amando M. Tetangco said in a statement.

Preliminary government data showed that the number of Filipinos deployed abroad in 2008 rose considerably by 27.8% to 1.37 million, from 1.1 million the year before.

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ROBINSONS LAND CORPORATION REPORTS EARNINGS OF P680 MILLION FOR THE FIRST QUARTER OF FY 2009
Business World, 02/17/2009

Robinsons Land’s net income was unchanged at P680 million during the same period, despite a 3% increase in revenues to P2.38 billion.

This was due to the decline in revenues from its hotel, which tempered the 6% growth in the rental and sale of commercial properties.

"Our balanced mix of investment and development components ensures Robinsons Land of stable recurring revenue even during down cycles," the company said.

Revenues from the property arm’s commercial center division went up by close to a tenth to P1 billion.

This division accounted for almost half of the total revenues due to the rental contributions of Robinsons Galleria in Ortigas, Robinsons Place Ermita in Manila, and newly opened malls in Cabanatuan, Nueva Ecija and Pulilan, Bulacan.

Office buildings accounted for more than a tenth. Revenues from this division went up by more than a third to P253 million, mostly from the rental of six office properties to call center and business process outsourcing operations.

Robinsons’ residential division meanwhile accounted for 30% of total revenues.

But sales from this division went down by more than a tenth to P703 million due to a decline in sales of condominium units in East of Galleria in Ortigas, Gateway Garden Heights in Pioneer, Mandaluyong, and Woodsville Viverde in Parañaque, among others.

Revenues from the hotel division went down by 5% to P281 million.

The company blamed the global slowdown for lower occupancy rates since December.

For its 2008 fiscal year which ended in September, Robinsons Land increased profits by 29% to P3.15 billion.

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POSITIVE RP OUTLOOK AFFIRMED BY MOODY'S
Reuters, Business World, 02/13/2009

INTERNATIONAL debt watcher Moody’s Investors Service yesterday affirmed its "positive" outlook on the Philippines’ sovereign ratings, citing the country’s resiliency amid a global economic and financial crisis.

"[Moody’s] notes that the Philippines has so far demonstrated a remarkable degree of resiliency to the global financial and economic crises, and has largely preserved gains achieved in recent years in improving the country’s economic, external payments and financial fundamentals," the debt watcher said.

Moody’s raised its outlook to "positive" from "stable" in January 2008.

A "positive" outlook indicates the possibility of a ratings upgrade in the short term. Philippine ratings are presently below investment grade and a higher rating will lower the cost of borrowing.

For the rating to be raised, Moody’s said the country’s balance of payments must continue to be strong and the government improve revenue collections.

Finance Secretary Margarito B. Teves said Moody’s move represented "a vote of confidence" amid the global downturn.

"We are pleased with this vote of confidence from Moody’s especially since it comes amid these challenging times. We will endeavor to further increase revenues to help us improve our credit ratings," he said in a statement.

Mr. Teves reiterated his call that Congress pass revenue-generating measures, saying these are necessary to support vital infrastructure and social programs.

"We hope that Congress will support us in pending measures, particularly the proposed rationalization of the excise tax on tobacco and alcohol to further improve tax collection. We need additional tax revenues to fund critical infrastructure and social services for our people and help us reduce our reliance on debt."

Moody’s Senior Vice-President Tom Byrne, in a statement, said: "The Philippines’ balance of payments and banking system have held up well to the global inflationary and credit market shocks of 2008."

"This situation, together with the current steady deceleration of inflation towards the central bank’s 2.5% to 4.5% formal targeting range in 2009, should help ease pressure on the exchange rate this year and provide the central bank with additional scope to relax policy to cushion the effects of the global recession."

Moody’s said a stable peso was important in containing the government’s debt service payments, given that more than half of public debt is denominated in foreign currency. This in turn would give the government more leeway to invest in infrastructure and finance fiscal stimulus programs.

It said the government’s decision to widen the deficit this year to 1.2% of gross domestic product (GDP) from 1% last year — instead of balancing the budget — would not impair what it saw as an "improving trend in the government’s debt metrics."

The government wants the deficit capped at P102 billion this year, from P75 billion last year.

But Moody’s stressed the need for the government to improve revenue collections through better tax administration and additional tax measures. It said fiscal sustainability could not be achieved through "expenditure control" and "Treasury debt management" alone.

"For the rating to move up, Moody’s will assess the prospects for the continued resiliency of the country’s balance of payments and the government’s ability to limit revenue slippage."

However, the amount of remittances Filipinos working abroad send back home this year is a "key concern."

Moody’s noted how remittances amounted to $15 billion in the 11 months to November last year, propping up the current account. Mr. Byrne told Reuters he saw remittance growth slowing to just 5-10% this year as a result of a slowing global economy.

"It’s one of the biggest risks," he said. "It’s real important to the balance of payments, to economic growth, to household consumption, even residential investment and also to the stability of the peso, which is a key thing."

The central bank expects remittances to grow by 6-9% this year. At worst, remittances will stay flat, the bank has said.

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MOODY'S FORECASTS 'DECENT' 3.3% GROWTH FOR RP THIS YEAR
Gerard S. dela Peña, Business World, 02/11/2009

THE TOP THREE credit ratings firms all expect the Philippines to miss official growth targets for the year but the last debt watcher to declare so said the 2009 result would be "decent" and better than most neighbors’.

In its "Asia Spotlight" report released yesterday, Moody’s Investor Service said it saw growth in gross domestic product (GDP) — the total amount of goods and services produced in the country — hitting 3.3% this year.

While lower than the government’s target of 3.7-4.7% and last year’s actual 4.6% rise, Moody’s outlook was the most optimistic among other credit ratings agencies. London-based Fitch Ratings’ has the lowest forecast of 2% while Standard & Poor’s offered a just slightly higher 2.2%.

Moody’s also said that the Philippines was in a better position compared to its Asian neighbors: Singapore, for instance, was forecast as likely experiencing a 4.4% contraction this year from a positive 1.2% in 2008.

Malaysia, meanwhile, could border on recession due to output drops and rising unemployment, while Thailand will still be under pressure as its tourism-driven economy will have a hard time wooing visitors due to local political problems.

"The Philippines, branded the ’sick man of Asia’ because of its relatively slow growth in recent years, will outperform many of its neighbors, with growth of 3.3% expected in 2009," Moody’s said.

"This year will probably be the most interesting for Southeast Asia since the Asian financial crisis. We expect tradition to be turned on its head and ASEAN members to undergo a role reversal."

The Philippines is expected to be outdone only by Indonesia, seen growing by 3.9%.

Moody’s said Indonesia and the Philippines may have been less stable compared to its peers but the economic slowdown will not push it into recession.

"Chances of recession [for Philippines and Indonesia] are low," it said.

Moody’s currently rates Philippine debt paper as B1, or four notches below investment grade, with a "positive" outlook.

While the global slowdown is not expected affect the country’s creditworthiness, debt watchers have noted that the government should boost revenues to be able to pump-prime the economy.

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RP BANKS STABLE BUT PROFITS TO SLIDE — FITCH
Gerard S. dela Peña, Business World, 02/11/2009

PHILIPPINE banks are likely to see poorer profits and higher nonperforming loans as a result of slower economic growth this year, said global debt watcher Fitch Ratings.

Compared to their peers in the region, however, they have a very good potential to weather the economic slump.

"The prospects for [Philippine] banks are considered to be negative with weaker profitability and asset quality anticipated amid the economic slowdown," Fitch said in the report "Banks in Asia (Excluding Japan): Outlook 2009" released last Jan. 20 and used as basis for a teleconference late Monday.

"However, the outlook is still stable as those operating environment-related risks are generally well-supported by the local banks’ capital position."

Fitch said the central bank might cut rates further in 2009 to spur economic growth but this would result in lower net interest margins for banks, although profit from trading would rise.

Net interest margin is difference between the interest income derived from loans and investments and interest paid on deposits. The difference is a key measure of a bank’s profitability.

"However, ROA (return on assets) on a net basis is expected to trend downwards further to 0.6%-0.7% for 2009 due to higher credit costs and a much lower level of economic activity," Fitch said.

The credit rater noted that ROA had been high over 2005 to 2007 as a result of healthy profits from trading government securities. High inflation last year, however, spurred interest rate hikes and lowered bond prices, cutting banks’ trading profits.

Fitch also said that while local banks’ non-performing loans (NPLs) are at a fraction of total loans, disposal of foreclosed properties had been slow despite the adoption of the risk-weighting framework under Basel II and passage of the Special Purpose Vehicle Act.

"Fitch estimates that a complete write-off of foreclosed assets would impair capital by 40% and the impact for the lower-rated banks would be close to twice the average," it said.

"NPLs are now likely to rise in 2009 amid the challenging market conditions with the vulnerability arising from a concentrated loan book — corporate loans account for 60%-70% of total loans," it added.

Fitch painted a bleak global economic outlook for 2009 with growth at just 0.9%, as a result of recessions in the US, Europe and Japan.

It expects Philippine economic growth at just 2-2.5% this year, lower than the 4.6% achieved last year and the government’s target of 3.7-4.7% for 2009.

David Marshall, Fitch managing director and head of financial institutions Asia-Pacific during the teleconference said "for banks in 2008, results were still good... but 2009 will not be as good as they start to feel the impact of [of the global economic turmoil]."

He said the outlook for Korean and Thai banks is negative but stable for Philippine banks.

"Our outlook on Philippine banks is stable. Most banks are ’BB,’ the same as the sovereign rating,"he said, singling out bank leaders Bank of the Philippine Islands, Metropolitant Bank & Trust Co., and Banco de Oro Unibank, Inc. as likely to "weather the storm."

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RP ECONOMY GREW 4.6% IN 2008, Q4 GDP GROWTH AT 4.5%
Agence France-Presse, Reuters, Inquirer, 01/29/2009

The Philippine economy grew by 4.6 percent in 2008, down from a 30-year high of 7.2 percent the previous year, the government said Thursday.

Gross domestic product (GDP) growth in the last quarter of the year was 4.5 percent, above market expectations.

Vincent Tien You Tsui, economist at Standard Chartered Bank, said that although the economy slowed in the fourth quarter, and may slow further in 2009, the Philippines could escape outright recession.

"Overall, the Philippines will be better insulated from the collapse of external demand compared with other Asian economies" as exports account for just 32 percent of GDP.

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ROBINSONS LAND CORPORATION REPORTS EARNINGS
OF P3.15 BILLION FOR THE FISCAL YEAR 2008
Philippine Stock Exchange, 01/23/2009

Robinsons Land Corp. reported Friday a 29-percent rise in consolidated net income to P3.15 billion in the financial year ended September 2008 with a 26-percent growth in revenues to P11.18 billion.

Revenues were boosted by a 35-percent rise in rental and sales, which compensated for flat revenue growth in the hotel business and a drop in interest income.

Investments contributed 51 percent of revenue and development properties, 49 percent.

The Residential Buildings Division accounted for 43% of total revenues. This division grew revenues by 69% to P4.76 billion, brought about by higher realized sales of condominium units in East of Galleria in Ortigas, Gateway Garden Ridge and Gateway Garden Heights in Pioneer, Mandaluyong and Otis 888 Residences in Manila.

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RP ECONOMY TO GROW 4.7% IN 2009
Agence France-Presse, Philippine Daily Inquirer, 01/16/2009

MANILA, Philippines -- Economic growth of 4.7 percent in the Philippines is possible this year as long as the government spends money to get it through the global turmoil, a senior economics minister said Friday.

The Philippines posted about 4.6 percent growth in 2008 despite high oil and rice prices the world credit crisis, said Economic Planning Secretary Ralph Recto.

This year, the economy is projected to grow by between 3.7 and 4.7 percent.

"If we do the plan, we can hit the higher end of the (growth) range," Recto said at a business forum on economic prospects.

President Gloria Arroyo has asked Congress to approve a P300-billion ($6.4-billion) stimulus package to help the Philippines spend its way out of the downturn.

Recto and other Arroyo economic aides said the country was weathering the global crisis well, with surpluses in the balance of payments and gross international reserves, while remittances from overseas workers growing.

The banking system remained secure and inflation was going down as the price of fuel and food also fell, the officials remarked.

The government plan for sustaining growth this year includes large-scale public spending in the first half of the year, particularly on infrastructure and social services.

Recto said there would be 150 billion pesos in public investment this year alone, mostly in the first half so the money could trickle down faster.

Finance Secretary Margarito Teves said revenue collection efforts would be stepped up, with a crackdown on tax evaders and smugglers, while improving the efficiency of the internal revenue and customs bureaus.

Teves also urged Congress to pass a bill raising the excise taxes on tobacco and liquor products to help finance the spending plan.

Trade Secretary Peter Favila said that despite the crisis, which has seen exports in the key electronics sector plunge, food and marine product shipments as well as investment in outsourced businesses were still growing.

Citibank country manager Sanjiv Vohra said the government's plan had a great chance of success, adding that compared with other countries, "the Philippines is in a position of strength."

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REMITTANCES IN FIRST ELEVEN MONTHS REACH US$15B
Bangko Sentral ng Pilipinas, 1/15/2009

Remittances of overseas Filipinos (OF) coursed through banks continued to be above the US$1 billion mark in November at US$1.3 billion, posting a year-on-year growth of 10.5 percent. Cumulative remittances for the eleven-month period reached US$15 billion, 15.1 percent higher than the level recorded in the comparable period a year ago. This level is only US$1.3 billion short of the BSP’s projection of a full year 2008 OF remittances coursed through the banks of US$16.3 billion.

“The steady stream of remittances from overseas Filipinos continues to provide the economy with much needed foreign exchange liquidity in the midst of a challenging external environment,” BSP Governor Amando M. Tetangco, Jr. said. Factors contributing to sustained remittance flows were the continued demand for Filipino workers abroad, specifically professional and skilled workers, as well as greater accessibility of overseas Filipinos and their beneficiaries to a wide array of financial services by banks that facilitated funds transfer.

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S&P: RP LOOKS LESS VULNERABLE TO GLOBAL DOWNTURN
Reuters, ABS-CBN, 01/13/2009

The Philippine economy is in better shape than most of its neighbours and the country should hit the low end of its 3.7 to 4.7 percent growth target this year helped by continued, although slower, remittance flows, rating agency Standard & Poor's said on Tuesday.

Record-high foreign reserves and an external payments position that remains in surplus would help keep the Southeast Asian country on stable ground despite the global downturn, it said.

But weak revenue collection and delays in the passage of the government's 2009 budget could trip up a planned pump-priming this year aimed at boosting growth, said Agost Benard, associate director for sovereign ratings at Standard & Poor's.

Stable outlook
"The Philippines actually looks less vulnerable, and its rating more stable than is the case for many other countries in the region," Benard told Reuters.

"We currently do not see any reason for changing the ratings on the Philippines, and that is clear from the stable outlook attached to it."

Standard & Poor's affirmed its "BB-" rating on the Philippines' foreign currency sovereign debt, or three notches below investment grade, in April last year.

Fitch rates Philippine sovereign debt at two notches below investment level while Moody's has it at four rungs below.
At the end of 2008, the Philippines accumulated record foreign reserves of $37.059 billion despite its aggressive defence of the weak peso, helping to keep its balance of payments (BOP) at a surplus of around $500 million.

While the estimated end-2008 BOP surplus fell to a four-year low and is expected to shrink further this year, the deterioration is not worrisome, Benard said.

"The current account and the balance of payments is still in surplus and the reserves position continues to improve -- it reached a record high last year when most other countries lost a lot of reserves."

Benard said the Philippines will continue to be an attractive investment as long as the BOP remained in surplus.

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RP LESS VULNERABLE TO CRISIS, SAYS FITCH
Reuters, Philippine Daily Inquirer,01/09/2009

MANILA, Philippines — The Philippines is vulnerable to the global financial crisis but less so than other countries in the region, as its banks and external financial position are sound, the London-based credit watchdog group Fitch Ratings said Wednesday.

Speaking to Reuters before the government launched an offer for an international bond, James McCormack, managing director of Asia-Pacific sovereign ratings at Fitch, said he saw no reason to change the country's “BB” credit rating and “stable” outlook.

"We are comfortable with the rating where it is," he told Reuters in an interview.
He said the country's healthy fundamentals should help keep its ratings outlook from being downgraded, but added that slow growth in government revenues posed a risk.

"It looks to us that when we cast our eyes around the region, at economies that are vulnerable to what is going on internationally, the Philippines is certainly included but it is not one of the countries that we are most concerned about," he said.

"The banking sector is reasonably isolated from what's been going on internationally, that includes both exposure to subprime and other assets with questionable values."

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60,000 OFWS HIRED LAST MONTH
Philippine Star, 01/09/2009

More than 60,000 overseas Filipino workers (OFWs) were hired in various countries abroad in the last month of 2008 despite the financial crisis, the Philippine Overseas Employment Administration (POEA) reported yesterday.

POEA chief Jennifer Manalili said OFWs filled at least 61,000 of the 450,000 existing overseas job vacancies abroad last December.

“We now have a current balance of 389,000 active job orders from the previous 450,000,” Manalili said, noting that the POEA posted a total of 650,563 new job orders from January to December 2008.

Manalili said the remaining job orders can be filled by qualified overseas Filipino workers this year.

According to Manalili, it takes time for the country to fill the job vacancies abroad, not due to a shortage of workers but because of the strict requirements in securing visas from the embassies of countries employing the OFWs.

Labor Secretary Marianito Roque has expressed confidence that the country’s overseas deployment last year could reach 1.3 million.

“We have already recorded over 1.2 million deployment as of November so if we will add those who left in December, the figure could hopefully hit a record high of 1.3 million,” Roque said.

Meanwhile, Philippine labor attaché to Kuwait Josephus Jimenez said the hiring of Filipino workers in the Arab country could reach as many as 70,000 this year even with the prevailing financial crisis.

“On the average, I approve 200 employment contracts daily so we could easily fill a minimum 12,000 job vacancies and even exceed 30,000 based on our current trend,” Jimenez pointed out.

Jimenez noted that Kuwait is a cash economy and therefore unlikely to be affected by the current financial crisis.

He added that Arab employers continue to prefer Filipino workers over other nationalities.

“Filipino workers are the highest paid professionals in Kuwait,” he said.

Jimenez said the government is also exerting efforts to veer away from so-called “five Ds” – dirty, difficult, dangerous, degrading, and deceptive – jobs being offered.

Of the 140,000 Filipinos currently employed in Kuwait, Jimenez said, 60,000 are domestic helpers.

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RP REAL ESTATE TO PROFIT FROM CRISIS
Agence France-Presse, Philippine Daily Inquirer, 12/24/2008

MANILA, Philippines -- The Philippine real estate market could be a safe haven and even a source of profit in the world financial crisis, a global property consultant said Wednesday.

After many financial instruments proved unstable this year, investors will shift in 2009 to more traditional investments such as real estate, CB Richard Ellis said in a statement.

"Previously, the diversity of portfolio investments lured most equity funds to invest in high-risk, high-yielding liquid assets and financial instruments. Now real estate remains a safe bet for investment," the statement said.

Investors could look to opportunities in "companies which have a physical presence that offers face-to-face customer experiences," Rick Santos, CB Richard Ellis chairman for the Philippines, was quoted as saying.

The Philippines also has a large population and is not overly dependent on export revenues, allowing the country to rely on its human resources and large domestic market to tide it over in the face of falling export demand.

The global crisis has caused values of properties to fall to "more realistic levels," while both the local real estate and banking industries were capable of financing and developing projects, the consultant said.

Tourism, the outsourcing industry and the millions of Filipinos working overseas will be the main sources of growth for the real estate sector, CB Richard Ellis said.

"Investments into these real estate segments will see the Philippine real estate sector through this global financial crisis."

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ROBINSONS LAND TO DEVELOP MAGNOLIA LOT
Philippine Daily Inquirer, 12/20/2008

Robinsons Land Corp., a unit of tycoon John Gokongwei’s JG Summit group, announced it would develop a 5.22-hectare lot in Quezon City that it has bought from San Miguel Properties Inc., a unit of the beverage and food group San Miguel Corp., into a residential and commercial complex.

The company said in statement it planned to develop a master-planned gated community on the lot, which previously housed the head office of the Magnolia dairy operations of Nestlé Philippines.

Robinsons Land bought the land for about P1.5 billion, sources said.

“Robinsons Land is very optimistic about the prospects of the project,” said company president Frederick Go said. He and other Robinsons Land officials declined to give details of the project, saying it was still in the planning stage.

Robinsons Land recently commissioned master-planner RTKL to draft conceptual drawings for the complex and Asya Design Partners to draft designs for the residential component.

The project is envisioned to be the first high-rise development in the New Manila area of Quezon City. The site is bounded by Aurora Boulevard, residential access roads of Doña Hemady Avenue and N. Domingo Street.

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ROBINSONS LAND OCT-JUNE NET PROFIT UP 17%
Reuters, Philippine Daily Inquirer, 08/15/2008

MANILA, Philippines -- Property firm Robinsons Land Corp. said its net income from October 2007 to June 2008 was P2.1 billion, up 17 percent from P1.8 billion during the same period one year before.

Revenue during the nine months in review was P8.2 billion versus P6.6 billion.

Robinsons Land is a unit of conglomerate JG Summit Holdings Corp., which has interests in malls, hotels, housing, and residential and office building developments.

The company's fiscal year ends in September.

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PHILIPPINE PROPERTIES 'HOTTEST' IN SOUTHEAST ASIA
Tessa Salazar, Philippine Daily Inquirer, 07/04/2008

MANILA, Philippines—We may have hot weather and hotheaded drivers, and “hot” money pocketed by some corrupt government officials, making life a little bit more difficult here in the Philippines. But looking at the brighter side, one “hot” item may bring back the word “pearl” in Asia’s struggling Pearl of the Orient.

The Philippines was recently declared as a popular real estate hub in Southeast Asia by international commercial real estate services firm CB Richard Ellis Philippines.

It further cited that “investment opportunities in tourism, infrastructure, mining and real estate remain high” here.

In its July 2 news release sent to Inquirer Property, CBRE Philippines general manager Trent Frankum even used the superlative “hottest” in his description of how foreign investors took up properties in the Philippines. He enumerated the positive effects of the stable Philippine peso, increasing tourist arrivals, the BPO boom, and the influx of overseas Filipino workers’ dollar remittances on the property market.

Frankum’s declaration was heard in the recently held SMART Investment and International Property Expo at the Hong Kong Convention and Exhibition Centre June 21 and 22.

Not yet overpriced
In a recent phone interview with the Inquirer Property, Joey Radovan, vice chair of CBRE Philippines, said the reason for the country’s popularity among property investors was that “we’re not yet overpriced, we’re still cheap.” He cited, for instance, that Singapore is three to four times more expensive than Manila.
Rodovan, who also heads the global corporate services, said the developers are seriously looking at the European and Middle East markets.

Rodovan singled out business process outsourcing, tourism and OFW money as major drivers putting the Philippines in the map of Southeast Asia’s most sought-after business locations.

Colliers
“Broadly agree” was the term used by Colliers International Philippines’ managing director David A. Young, when asked to react on CBRE Philippines statement that the country is the “hottest” real estate hub in Southeast Asia.
Said Young: “The Philippines’ real estate market is attracting unprecedented levels of investor from investors, most visibly in hospitality and tourism projects. A virtuous circle is evident. Capital investment in new infrastructure and tourist-related facilities is enhancing the Philippines’ offering to new markets and generating increased visitor spending.

Despite this wave of new investment the Philippines is still playing catchup relative to its regional competitors. When it completes in 2011, Kingdom’s Fairmont Hotel will be the first new luxury hotel to open in Makati for 15 years.

Tourists, hotels, condos
CBRE Philippines cited that last year, tourist arrivals broke the two-million mark for the first time since 2004, with arrivals rising to 3.091 million. CBRE said it is expecting new markets, such as Russia, Middle East, China and Korea, to help sustain tourism growth. CBRE is also projecting arrivals to increase to 3.4 million this year and generate US$5.8 billion in international tourism receipts.

Hotel room occupancy rates rose to 73.06 percent in 2007 from 71.95 percent in 2006. “New hotel and resort developments are currently in strategic business locations such as Makati City, Fort Bonifacio and the Bay Area as well as top tourist destinations such as Cebu and Boracay, further enhancing industry prospects,” Frankum said.
New development projects include the US$153 million Kingdom Hotel, a combined hotel and residential condominium that will rise in Makati City.

“We expect 18,143 units to be provided from 28 upcoming residential condominiums in Makati that are targeted for completion between 2008 and 2013. Likewise in Fort Bonifacio, 11,652 units are expected to come on the market from 33 residential condominiums being constructed from 2008 to 2012,” Frankum said.
Meanwhile, the offshoring and outsourcing (O&O) boom in the Philippines has created new opportunities for the real estate market, Frankum stressed. “Major investors and businesses are looking at the Philippines because it is one of the largest English-speaking nations in the world and has 33.5-million Filipinos in the workforce,” he noted.

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STRAIGHT FROM THE TOP
Tips for Investing in Philippine Properties

Selecting the best condominium to fit your needs and your budget may seem like a daunting task. So, how can one proceed with caution when investing in condominiums in the Philippines? RLC Deputy Chairman, Lance Gokongwei, offers solid pointers as embodied in RLC’s two successive projects within the Bonifacio Global City, the Fifth Avenue Place and the McKinley Park Residences.

A prime consideration is TIMING: In making any business decision, timing your investment to the economic upswing makes all the difference. Gokongwei firmly believes the Philippine economy is on the rebound. “Last year, the country’s gross domestic product and gross national product reached its highest level since 1997,” he said.

The second consideration is the developer’s REPUTATION. Gokongwei noted that investing in a condominium is no different from buying any major consumer item like a computer or a car. It is enticing to buy on the basis of a marketing promise but it would save you a lot of trouble if you check out the developer's track record. “RLC is backed by the strength of the JG Summit Group, a leading Philippine business conglomerate, and has a solid reputation for completing projects on time and on specifications, meeting all expectations of buyers,” he said.

Third is LOCATION. A reputable developer assumes full assessment of the location of its project. As an individual investor, you have to be certain the property you want to buy offers a real hedge against uncontrollable factors like inflation. A great location, such as in the premium portion of the Bonifacio Global City, offers that kind of hedge, taking note that the long term value of the land in the area is expected to rise as its development continues.

“Previous investors were clamoring for RLC to come up with a condominium development in the Makati/Fort Bonifacio area,” noted Gokongwei. “Future tenants will find the location we chose for Fifth Avenue Place (FAP) highly desirable, not only is it just walking distance from the best lifestyle establishments in town, but also highly accessible from major areas of the metropolis through Fort Bonifacio’s strategic entry points,” he added. The same is very true for RLC’s subsequent project, the “All-Loft” McKinley Park Residences (MPR), which was immediately launched after FAP’s successful take-up. MPR is situated in neighborhood of the world class St. Luke’s Medical Center, Price Smart, MC Home Depot, Sports Kamp recreational facility, the Market! Market! Mall, and a host of international schools.

The fourth, and ultimately the most definitive consideration, is VALUE. RLC’s expertise is in value engineering. “RLC is attuned to the needs of its buyers,” he explains, adding “we made it a point not only to satisfy these needs but exceed them.”

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INTERVIEW WITH LEADING DEVELOPER ROBINSONS LAND
The New York Times Magazine, 02/25/2007

‘We always study the market: What it needs, wants, has and does not have’

Frederick D. Go, President and COO of Robinsons Land Corporation (RLC), speaks about catering to the Filipino market at home and abroad, how the company is revolutionizing the concept of shopping malls, and what the future holds.

Where are the company’s current major projects catering to the Filipinos living abroad?
We have several projects in Fort Bonifacio Global City. We also have a venture in Woodsville in Paranaque City, a resort development in Tagaytay and Cebu, all aimed at attracting Filipinos who are living in other countries.

How are you reaching the Filipino-America market in the USA?
We have a coordinating office there, and we go on what we call property roads shows which move around the United States regularly, as well as the rest of the world. About four times a year we try to visit the Filipino communities in the U.S. We are very successful there. The popularity of the Robinsons name, perhaps due to our malls and numerous retail formats, makes quite a difference in overseas markets.

RLC’s signature is that each commercial center in the chain is created from a vision, developed into a concept. How are you revolutionizing the mall concept?
That has always been answered on a case-to-case basis. Every time we go into a locality, we study the market: what the market needs, what the market wants, what it does and does not have. Every mall is a completely unique proposition. We pride ourselves on each mall that we build because no two are the same. Each is unique to the market it serves. The sector, however, is becoming more competitive, and we have to put even more planning into every project. We also employ a lot of foreign consultants, mostly from the U.S. and Singapore, particularly for master planning, architecture and engineering.

How would you explain the time that Filipino people spend in shopping malls?
I would say that for one, it’s because of the absence of major national attractions like parks, lakes, and lagoons. We do not have many of those in Metro Manila. Second is the weather. Filipinos find the shopping malls climate-controlled and therefore more comfortable. We want our malls to be safe, secure, convenient and comfortable for all our patrons. They are quite big and thus quite complete, with restaurants, all types of services, supermarkets, appliance stores, etc. They are a one-stop shop.

What has been your greatest satisfaction working for RLC so far?
I feel privileged to have built landmarks because they will last beyond my lifetime. I am a business development kind of guy; I like building things, especially from scratch. Before, we had only one shopping mall and one office building. Today we have 18 malls six office buildings, dozens of residential condominiums and housing subdivisions, etc. It gives me a lot of satisfaction to have accomplished something that you can actually see and touch.

Is there a final message you would like to pass on?
The Philippines is on the right path, a trend that I see continuing for a long time. The government is really making a big push in marketing the nation as a retirement destination. The quality of life here is really excellent, and our company is taking advantage of this time to provide the real estate to make this happen. In a few more years you will see why the Philippines is the world’s preferred retirement destination.

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ROBINSONS LAND, SECURITY LAND AND TAGANITO MINING SIGN JV TO DEVELOP MIXED USE COMPLEX IN AYALA AVE.

Robinsons Land Corporation (RLC), one of the county’s largest diversified real estate conglomerates and the leading office landlord for call centers and BPO companies, has entered into a real estate joint-venture with Security Land Corporation (SLC) and Taganito Mining Corporation (TMC) to develop the most strategic available property in the country’s financial capital at the corners of Ayala Avenue, Rufino St. and Valero St. in Makati City.

In its disclosure filing, the sprawling 5,567 sqm Makati property is owned by SLC, a subsidiary of Security Bank Corporation, and will be developed by RLC and TMC into a premiere mixed office-residential project. The office building along Ayala Avenue, in particular will be RLC’s second one along the prestigious block. This will also solidify RLC’s leading position in the office sector.

“RLC is very excited about the prospects of developing with highly reputable partners the most strategic available premiere address along Ayala Avenue,” says RLC President and Chief Operating Officer Frederick Go.

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