SM to build 36 OFW Global Pinoy Centers

Business Mirror reported today that SM group will build 36 Global Pinoy Centers, or OFW lounge facilities to attract overseas Filipino workers (OFWs) and their families to SM Supermalls. Hans Sy, president of SM Prime Holdings Inc., confirmed the Business Mirror report in a disclosure to the Philippine Stock Exchange.

The Global Pinoy Centers are intended to meet the needs of returning OFWs and their dependents when they go shopping.

Sy said providing OFWs and their families with more comfortable facilities is SM’s way of recognizing their contribution to SM’s growth through their continued patronage.

Sy said: 'Whenever I have trips abroad, I was always being asked by foreign investors what drives SM’s growth and I told them it’s because of the remittances of our overseas-based workers.'

He added: 'After having major involvements in environmental issues, education, empowering the handicapped among others, I asked the people in the group now to focus on the OFWs in recognition for their vital role in enhancing SM’s growth...'

As of August 2009, about 2 million OFWs had remitted $12 billion to their families.

SM will build three Global Pinoy Centers at the SM Mall of Asia, SM Megamall and SM North Edsa this year. The 36 centers will collectively cost P180MM.


The Global Pinoy Center will

• assist OFWs in finding information on investment opportunities and provide them easier access to the Department of Labor and Employment and other government agencies such as the Philippine Overseas Employment Administration, Overseas Workers Welfare Administration.
• enable dependents of OFWs to pick up remittances directly from their loved ones even on weekends and holidays.
• function as a contact point for the present and former OFWs, balikbayans and their relatives.

OFWs and their families will be issued Global Pinoy card which will entitle them to avail themselves of discounts and freebies from SM Supermalls and other partner establishments, Global Pinoy cardholders could get 20 percent and 15-percent discount tuition discount in Asia-Pacific College and National University, respectively.

SMDC Introduces Four New Condominium Projects

SM Development Corporation (SMDC) will launch four of its newest residential condominium projects.

The four SM Residences projects are

• the Jazz Residences near Jupiter Road in Makati City;
• the Sun Residences right beside the Mabuhay (formerly Welcome) Rotunda near the Quezon Avenue boundary of Quezon City and Manila;
• the Light Residences near Pioneer Street in Mandaluyong; and
• the Wind Residences along the Emilio Aguinaldo Highway in Tagaytay City.

Roger R. Cabuñag, SMDC president said, “Our four new offerings affirm SMDC’s vision of becoming one of the leading residential developers in the country. We will end this year with a menu of 12 different offerings for our clients who may choose their homes from the best locations in the Metropolis, plus a special offering in scenic Tagaytay. Upon completion, SM Residences will provide five-star homes to our buyers through topnotch amenities and facilities even as they are offered at affordable terms.”

Jazz Residences will occupy approximately 25,000 square meters (sqm) of land along Metropolitan Avenue, which interconnects with Jupiter Road near the central business district of Makati City. A total of four towers will rise on a five-storey podium; and will be done in four phases. Each 41-storey tower will have an estimated 1,228 one- and two bedroom units. The amenities of Jazz Residences include a lawn and garden, children’s playground, jogging path, swimming pools with shower rooms, lobby lounge, and a gym and spa, among others.

Sun Residences is located at España Boulevard in Quezon City, right beside one of Metro Manila’s famous landmarks, the Mabuhay or Welcome Rotunda. The area is highly accessible as it is along a primary transport route. Its total land area is approximately 11,832 sqm. Two 43-storey towers will rise on the property with each tower having 1,992 units for sale. As in all SMDC projects, the project will be done in phases with studios, one-bedroom, and two-bedroom units on offer. Sun’s amenities include a recreational area, garden and lawn, children’s playground, students’ lounge, swimming pools, and a jogging path, among others.

The third new project, Light Residences, is located at the corner of EDSA and Madison Street in Mandaluyong City, again making it a highly accessible location for residents who want to live close to the vibrant business districts of Makati, Mandaluyong, and Pasig. Light Residences will have three towers, with Tower 1 having 40 floors, and Towers 2 and 3 having 39 floors each. The first phase will offer a total of 1,386 studios, one-bedroom, or two-bedroom units. The whole project will occupy approximately 19,422 sqm of land and will have amenities such as swimming pools, a function room, jogging path, and a children’s playground, among others.

The only offering outside of Metro Manila is Wind Residences, which is in scenic Tagaytay City. It is located along the city’s major thoroughfare, the Emilio Aguinaldo Highway, occupying 15.45 hectares of land. Wind will have ten 20-storey towers rising in several phases over the medium term. Each tower will offer approximately 702 units for sale. Wind will have a clubhouse, badminton and basketball courts, swimming pools, children’s playground, and a jogging path, among others, as its amenities.

SMDC’s other on-going projects include Chateau Elysee in Paranaque City, Mezza Residences across SM City Sta. Mesa, the Berkeley Residences along Katipunan Avenue in Quezon City, the Grass Residences beside SM City North EDSA, the Field Residences in Parañaque City, the Sea Residences near the Mall of Asia Complex in Pasay City, and the residential subdivision Lindenwood Residences in Muntinlupa City. Last week, SMDC also unveiled Princeton Residences, located along Aurora Boulevard in Quezon City.


Source: PSE Disclosure 03 December 2009. Pasay City, Philippines.

METRO PACIFIC TOLLWAYS DEVELOPMENT CORPORATION SUBMITS PROPOSAL FOR SUBIC-CLARK-TARLAC EXPRESSWAY (SCTEX)

MANILA, Philippines, 16th September 2009 – Metro Pacific Tollways Corporation (MPTC) today announced that it has submitted an unsolicited proposal to the Bases Conversion Development Authority (BCDA) for the right to operate, maintain, and collect toll from the Subic-Clark-Tarlac Expressway (SCTEX). The proposal was made through Metro Pacific Tollways Development Corporation (MPTDC), a wholly-owned subsidiary of MPTC.
The proposal involves the assignment and transfer by the BCDA of all its usufructuary title, rights and interests in SCTEX to MPTDC. In exchange for such assignment, MPTDC has proposed to pay BCDA certain concession fees and a share in future revenues over the life of the concession.

“When accepted, the proposed acquisition of SCTEX will strengthen MPTC’s leadership position in the Philippine tollroad industry, increasing our share to approximately 67% in linear kilometers from the existing 33%. Ultimately, the motorists will benefit from the consolidation of the toll roads in Northern Luzon by providing them a seamless network of expressways, therefore reducing travel time and making ‘motoring’ all the more convenient.” said Ramoncito S. Fernandez, MPTC President and Chief Executive Officer.

BPI and Globe to Setup Mobile Microfinance Bank

August 26, 2009

The Ayala Group will setup the Philippine's first mobile micro-finance group to reach 10 million to 15 million people from the current three million borrowers of micro-finance institutions. The group will use Pilipinas Savings Bank, a BPI subsidiary, to provide small loans to institutions through cellular phones.

Bank of the Philippine Islands (BPI) president Aurelio Montinola, told reporters that the Monetary Board, the policy-making body of the Bangko Sentral ng Pilipinas, approved the conglomerate’s proposal early this month. He said BPI will put set aside P400 million under its wholesale lending program for microfinance institutions. The new entity will be owned by BPI ( 40% ), Globe Telecom Inc (40%) and Ayala Corp (20%).

In separate disclosures to the Philippine Stock Exchange, Globe Telecom and BPI said they await BSP approval for change in name and grant of electronic banking license. They are also seeking Securities and Exchange Commission approval of some amendments to the Articles of Incorporation and By-Laws of Pilipinas Savings Bank.

The mobile microfinance bank will be set up in Globe’s distribution centers, with the Ayala-led telco providing G-Cash to microfinance organizations and rural banks. An SMS-based technology, G-Cash allows money transfer and loan collections via text messaging.


Sources:

• Ayala group gets green light for new mobile bank
  Yehey Finance August 20, 2009
• Globe Telecom, BPI disclosures to the Philippine Stock Exchange

Metro Pacific Looking for Partners for Multiple Road Projects

Metro Pacific Tollways Corp. is looking for strategic partners for a 13-kilometer elevated road project that will link the North Luzon Expressway (NLEX) and South Luzon Expressway (SLEX).

Company president Ramoncito Fernandez said:
"We're open to discussing [the connector road] with any potential partners. [It will be a consortium] but we don't know yet the structure. We are in the process of finding a financial adviser."

Fernandez added that Metro Pacific Tollways and state-owned Philippine National Railways have completed a pre-feasibility study on the P16-billion project, which will span from Road C3 in Caloocan City to Sen. Gil Puyat Avenue in Makati City. Around 80% of the connector road will be built over existing rail tracks and will shorten travel time from NLEX to SLEX to only 15 to 20 minutes.

Metro Pacific Tollways is also eyeing to undertake Segments 9 and 10 or phase 2 of the NLEX:

• Segment 9 is a 4-lane, 3-km expressway linking NLEX to MacArthur Highway in Valenzuela City
• Segment 10 will extend NLEX to Port Area via a 4-lane, 5-km elevated road from MacArthur Highway.

Current projects include

• Segment 8.1, a 6-lane expressway from Mindanao Avenue to the NLEX, and
• Skyway Stage 2, a P10-billion 7-km elevated expressway connecting Bicutan to Alabang.

Source: ABS-CBN News
August 19, 2009

Innovation, New Products Boost Purefoods Revenues in 2008

San Miguel Pure Foods Company, Inc. (SMPFC), posted a record P71.1 billion in total revenues for 2008, a 15% growth from 2007 figures on the back of pricing measures that covered higher input costs. Steady volume and revenue increases in most of the core businesses and favorable selling prices boosted revenues amid steep raw material price increases and shrinking disposable incomes.

SMPFC Chairman Eduardo M. Cojuangco said:
"Our ability to maintain our market leadership in many different food categories relies on anticipating changing trends and understanding the consumer behavior from various income ranges. We constantly review our product portfolio and find ways to offer quality and affordable products that are relevant to their needs.”

Several innovations include products like Ulam King—an inexpensive, viand that is a complete meal in itself. and Mom’s Kitchen, prepared meals for middle-income consumers.

Also key to the company’s growth are its effective marketing strategies. One example is the Magnolia Chicken Station, which has enjoyed phenomenal success since its launch in 2004. With over 300 stations throughout the Philippines, this selling innovation has resulted in a 29% increase in volumes in the last year alone.

Another SMPFC innovation is the Community Partner Program launched last year. Small entrepreneurs or community partners have been enlisted in the effort to make SMPFC products available in sari-sari stores and wet markets which are beyond the reach of larger dealers due to inaccessibility or lack of economies of scale. With this, SMPFC penetrated close to 100 additional distribution networks.

Cojuancgco added:
“It’s a winning proposition all around: job creation or extra income for those that need it and wider reach for our products. This is the perfect example of how we have worked in partnership with our dealers and found an innovative solution to market in a way that both inspires and rewards.”

He also cited renewed focus on research and development (R&D) that underscore the Food Group’s emphasis on nutrition, value and taste. Facing a challenging 2009, Cojuangco concluded:
“To further drive cost improvements across the Food Group, we will continue working to improve margins by leveraging our scale to ensure we have a competitively advantaged cost base, improve manufacturing efficiencies, and improve the performance of our supply and distribution chains.”

“We are confident that we have adopted the appropriate strategies to successfully surmount the difficulties of the present. While there is still more work to do, we made reasonably good progress in creating a stronger, more resilient San Miguel Pure Foods Company for our consumers, business partners, employees and shareholders.”

Source: SMPFC Press Release, July 21, 2009

NSCB: Northern Mindanao’s economy records fastest growth in 2008

The Philippine National Statistical Coordination Board reported that Northern Mindanao’s economy posted the fastest growth rate among the country’s 17 regions at 5.3% in 2008. Northern Mindanao's robust performance was fueled by the 10.7% expansion of its agriculture, fishery and forestry sector which had a 31.2% share of the region’s output.


The top five fastest growing regions in 2008 were:

1. Northern Mindanao ( 5.3% )
2. National Capital Region (NCR) ( 4.9% )
3. SOCCSKSARGEN ( 4.6% )
4. Western Visayas ( 4.4% )
5. Bicol (4.3% )

Cordillera Administrative Region (CAR) registered the slowest growth at 1.8% in 2008, a deceleration from 7.1% a year ago.

Sixteen of seventeen regions posted slower growth in 2008. Eastern Visayas was the only region which grew, from 3.1% in 2007 up to 3.6% in 2008.

Region	2007	2008
Northern Mindanao	7.7%	5.3%
NCR	7.8%	4.9%
SOCCSKSARGEN	6.7%	4.6%
Western Visayas	7.7%	4.4%
Bicol	7.5%	4.3%
Central Luzon	5.9%	3.8%
Davao Region	6.6%	3.7%
Eastern Visayas	3.1%	3.6%
Central Visayas	8.6%	3.4%
Caraga	7.7%	3.2%
MIMAROPA	9.8%	3.1%
Zamboanga Peninsula	7.2%	2.2%
Cagayan Valley	6.4%	2.0%
CALABARZON	5.3%	2.0%
ARMM	5.4%	1.9%
CAR	7.1%	1.8%

NCR increased its share to the country’s total output with a 33% share in 2008 – up from 32.7% in 2007 and 32.5% in 2006. It is followed by CALABARZON with 11.9% and Central Luzon with 8.3% respectively. ARMM has the lowest percentage share of only 0.9% of the country’s GDP.

NCR, likewise, contributed 1.6 percentage points to the national GDP growth which stood at 3.8% in 2008, lower than its 2007 contribution of 2.5%. NCR was followed by Central Luzon, Western Visayas, and Northern Mindanao, each contributing 0.3 percentage point. ARMM and Caraga, on the other hand, have the least contribution with less than 0.1%.

Growth of the economies of all the major island groups (Luzon – excluding NCR, Visayas and Mindanao) were lower in 2007. Luzon’s economy slowed down from 6.2% in 2007 down to 2.7 percent in 2008, Mindanao decelerated from 7% down to 4% and Visayas plunged from 7.5% to 3.8%.

NCR continued to register the highest real per capita GRDP, increasing by 3.4% from P 40,241 in 2007 to P 41,624 in 2008. NCR’s level is almost three times the national per capita GDP of P 15,686. CAR and Northern Mindanao have higher real per capita GRDP than the national average at P 19,043 and P 17,050, respectively. On the other hand, ARMM posted the lowest real per capita GRDP at P 3,572. Three regions - CAR, CALABARZON and ARMM, posted a decline in their per capita GRDP from 2007 to 2008.

The gross regional domestic product (GRDP) measures the goods and services produced in each of the geopolitical regions of the country. It provides for an analysis of the regional distribution of the country’s gross domestic product (GDP), the industries and factors that contribute to the regional economies, and the pace at which these economies are moving. The National Statistical Coordination Board compiles the GRDP on an annual basis.

Copies of the 2006-2008 GRDP are available for sale at the National Statistical Information Center (NSIC) located at the Ground Floor, Midland Buendia Building, 403 Senator Gil Puyat Avenue, Makati City. For subscription and inquiries, please contact the NSIC at telephone numbered (632) 895-2767 or at e-mail address info@nscb.gov.ph.

Manila Water Acquires Water Concession in Laguna Province

Manila Water Company acquired water concession to provide water supply services to Sta. Rosa, Binan and Cabuyao in Laguna province by purchasing 100% ownership of AAA Water Corporation. AAA Water corporation owns 70% of Laguna AAA Water Corporation, a joint venture with the province of Laguna, Philippines.

Laguna AAA Water Corporation currently serves 120,000 customers out of the current 600,000 population, and is expected to grop to 1,100,000 in 15 years. The service area is home to the operations of Nestle, Coca-Cola and Ford Motors, and to a number of commercial/residential developments by Ayala Land, Vista Land and Eton Properties.

Manila Water has an existing concession in the East Zone of Metro Manila, serving 5.6MM people. Since 1997, it has increased 24 hour coverage from 26% to 99% and reduces water losses from 63% to less than 20%.

Manila Water recently took over water and wastewater operations in Boracay Island.

San Miguel To Participate In Expressway Project

San Miguel Corporation (SMC) announced last July 20 that it has entered into a non-binding agreement to acquire a significant stake of the Private Infrastructure Development Corp. (PIDC), a consortium of construction companies behind the Tarlac-Pangasinan-La Union Toll Expressway Project.

The 88-kilometer expressway project will extend from La Paz, Tarlac to Rosario, La Union. Once completed, it is estimated that the expressway will cut by half the travel time from Manila to Baguio.

The parties have agreed to execute and finalize a definitive agreement which shall be subject to government approval.

SMC has diversified its business interests to include a stake in power retailer Manila Electric Co. (Meralco), oil refiner Petron and Liberty Telecom.

Ramon S. Ang, SMC president and chief operating officer said:

"This is in line with our diversification plans and we’re happy to be a catalyst for the infrastructure needs of the country."

"The North to Central Luzon stretch is a potentially dynamic industrial corridor and the proposed expressway will make it easier and more cost effective to move goods and people from one point of Luzon to another. As a food and beverage conglomerate with one of the most developed distribution networks in the country, we have a strong interest in making it happen."

In the News:

June 2009

• Aboitiz Purchases Geothermal Plants
• Digitel Aims to Grab Postpaid Lead
• New Asia Pacific Gateway Cable System by 2011
• Fiber To The Home: PLDT Ups Ante for Broadband
• PETRON UPSIZES NOTES OFFER TO P10-BILLION

May 2009

• Energy Development Corporation Confirms Interest
• GLOBE TELECOM ANNOUNCES CORE NET INCOME OF P3.7 B
• SM Hits a Hundred Retail Outlets Nationwide

April 2009

• SMDC Reports 30-Fold Increase in Q1 2009 Consolidated Income
• RFM Sustains Income Growth to P245 M
• Manila Water In Joint Venture for Boracay Water Project
• PhilWeb doubles Net Income for first quarter 2009

March 2009

• AYALA Land, Manila Water Announce New Presidents
• Philex Now A Gold Mine
• Asean Stock Exchanges Agree to Electronic Linkage

February 2009

• Berong Nickel Stops Production
• Zamboanga 2008 Agriculture Production Down.
• Zamboanga 2008 Agriculture Production Up 5.5%
• GLOBE Telecom Posts Record High Revenues in 4Q 2008

January 2009

• Holcim to Shutdown Cement Plants on Weak Demand
• Jollibee Sales Increase 13%, But Lower Profits
• PhilWeb Corp. posts 90% increase in core Net Income
• SM Bags Best in Corporate Governance Award
• SM Opens SM City Fairview Annex
• Korean Electric Power Corporation (Kepco) and SPC...
• Yehey Projects Doubling of Revenues for 2009

December 2008

• Global Green Power (GGPP) Expands RP operations
• Megaworld expects P1.4B from new Greenbelt project...
• PayPal Integration Made Easier for Philippine Online
• iRemit Reports 47% Growth in Jan to October
• Qtel Sees “Huge Potential” for Expansion and Growth
• SM Retail Group Expands to 98 stores in 2008
• San Miguel and Qatar Telecom sign MOU
• SM Pursues Development of World Class Entertainment
• PNB Sells Equity Stake in Insurance Affiliate
• “The Annex” Makes SM City North Edsa the Largest Mall inb the Philippines
• SM Prime Opens SM City Baliwag
• Metropass to Sell ScratchIT Tickets
• San Miguel to Negotiate Purchase of 50.1% Stake
• Business Expectations Survey 4Q 2008