Biz buzz: Foresight
With last Tuesday’s (Wednesday morning, Philippine time) shock victory of Donald Trump over Hillary Clinton, the Trump Tower project of real estate tycoon Jose Antonio is suddenly on everyone’s mind.
Recall, of course, that Antonio’s Century Properties Group launched “Trump Tower Philippines” in 2011 to some degree of skepticism, given that The Donald was still relatively unknown in the country then (apart from the reality TV-watching crowd). It also didn’t help that Century Properties seemed to be crowding—and perhaps cannibalizing—its market by putting too many high-end marquee projects on its plate at a time when no one was sure where the real estate market would go.
Well, what a difference five years makes. The candidate many people dismissed as a reality TV buffoon is now the President-elect of the world’s only superpower, and Century Properties (whose partnership with Mr. Trump in the project involves paying him a royalty fee for the right to use the “Trump” brand) is now an established player in the real estate industry.
Thursday, Century Properties congratulated Mr. Trump on his historic electoral victory.
“We see the significant movement in our stock (last Wednesday) as a natural reaction of the domestic market to the outcome of the US elections,” the company said, referring to the spike in Century Properties’ share price which was, at one point, up 20 percent during the trading day.
And how’s Trump Tower doing? Launched in 2011, it took a little longer to build the 57-story skyscraper, but the structure has since been topped off and Century Properties says it will finally be turned over to buyers by next year. The prices of its high-end condo units have risen by an average of 10 percent yearly, the company said.
Talk about having the foresight to forge a partnership with Trump long before he even thought of running for the US presidency. And you know who else had foresight? President Duterte for appointing Antonio as Special Envoy to Washington just days before the US elections. Perhaps both gentlemen knew something none of us knew? —Daxim L. Lucas
China pivot’s litmus test
Just a few weeks after President Duterte’s historic China pivot, the new alliance is facing its first litmus test due to alleged trading roadblocks and bureaucratic red tape.
A group of traders aired a complaint before the Office of the President against ranking officials of the Department of Trade and Industry (DTI) who were allegedly “moving heaven and earth” to delay, if not block, the entry and sale of China-made steel into the country.
These trade officials—one of whom is not even supposed to be involved in the issue of product certification—were reportedly exerting pressure against the issuance of the required import commodity clearance, even if the imported steel in question has been certified by an international testing agency for its compliance with Philippine product standards.
The same dynamic duo are reportedly backing amendments to Bureau of Product Standards rules that would require additional testing for imported steel which, critics claim, is tantamount to changing the rules in the middle of the game.
Aside from the additional burden and undue delays, the double testing is another form of red tape which the President personally vowed to eradicate.
According to scuttlebutt, repeated delays and the apparent singling out of China-made steel products are being closely monitored by Chinese authorities. While there is yet no official word from the Chinese Embassy, perhaps the Duterte administration should look into the matter before it becomes a full blown trade issue that could adversely affect the warming relations between Beijing and Manila. —Daxim L. Lucas
Uber, Grab
A long-running moratorium on new government licenses to operate public utility vehicles may soon come to end.
Transportation Secretary Arthur Tugade made a surprise announcement during an Inquirer roundtable when he said the Land Transportation Franchising and Regulatory Board was coming up with an “omnibus franchising policy.”
Its finalization date: around the end of this month.
Tugade said the policy would address issues on the PUV sector, including route capacity.
Moreover, it would reveal the regulatory direction for ride sharing apps like Uber and Grab. Both are lobbying heavily for government to lift a moratorium on new applications imposed last July.
Tugade declined to say more, as he did not want to preempt the LTFRB.
With regard to Uber and Grab, we’ve had our fair share of discussions with them and both are optimistic that the government will see things their way, given that demand was huge.
However, that’s not quite the sentiment we’re hearing from within the transportation department. Is the ride sharing sector in for a shocker when the new policy is out? Like we say here, abangan! —Miguel R. Camus
Anti-red tape point man
Finance Undersecretary Gil Beltran has his hands full in trying to make the Department of Finance more efficient, especially the two large revenue-collecting agencies under it, the bureaus of Internal Revenue and of Customs.
You see, Beltran has until the end of this year to formulate a plan to reduce red tape, with specific emphasis on these two bureaus.
In the Bureau of Customs, for example, it sometimes takes up to 53 signatures from officials of various government agencies to get a permit to import goods into the country. But making the importation process simpler by reducing red tape—and opportunities for graft and corruption—isn’t as simple as cutting down on these approval requirements. You see, some of these signatures are needed because of laws passed by Congress.
According to Beltran, some of these laws are old, some are redundant and some are no longer relevant. “Do you know that you need three separate signatures from various offices just to be able to import chocolates?” he asked.
In any case, Finance Secretary Carlos Domingez III wants Beltran to present to him a workable anti-red tape plan before the year is out, for implementation as soon as possible.
Will it work? And will the entrenched interests in the BIR and the BOC agree to their gravy train being taken away? Abangan. —Daxim L. Lucas
Christmas mall boom
Just when you think there are enough shopping malls in the metropolis, more retail centers are scheduled to open in the last quarter, just in time for the Christmas rush.
Based on data from Colliers Philippines, Ayala Land Inc. would have the fullest pipeline this year with the opening of Vertis Mall—a new high-end mall pitched as the Greenbelt of Quezon City. This development will have a gross leasable area (GLA) of 47,000 square meters.
In Pasig—not too far from rivals Megamall and Robinsons Galleria—ALI will open The 30th, a new shopping center with 28,000 sqm.
ALI is also set to open the remaining portion of BHS Central in Pasay City, adding a modest 1,000-sqm footprint.
Just as big as Vertis Mall will be ALI’s South Park District Mall in Alabang.
SM Prime isn’t opening in any new location in the metropolis, but the expansion of SM Mall of Asia will be completed, adding 200,000 sqms to its portfolio. Not too far from MOA, Federal Land will open a new shopping destination, Blue Wave Mall, with GLA of 34,000 sqms.—Doris Dumlao-Abadilla
