...the Asia's most powerful women

Tessie Sy, Vivian Que among Asia's 50 most powerful bizwomen

byRappler.com
Posted on 02/27/2014                                               

SECOND-GENERATION WOMEN. Sy family's Tessie and Que family's Vivian are among Asia's most powerful businesswomen this year, according to Forbes magazine. Photo from Forbes website
MANILA, Philippines – Two Filipino women – one leading the Philippines' largest mall chain, and the other, the country's largest drugstore chain – made it to Forbes' 2014 list of Asia's 50 most powerful businesswomen.

Teresita Sy-Coson, 63, vice chairman of SM Investments Corporation, and Vivian Que-Azcona, president of Mercury Drug, are on the elite list of women who are "driving change across diverse industries" in the region, Forbes said.

A statement by Forbes and its print edition named the two, but its site only lists Sy-Coson. The online list shows 48 of the 50 women.

Sy-Coson is the eldest child and heir apparent of Henry Sy Sr, the Philippines' richest man. She has a net worth of $12 billion in 2013, also according to Forbes.

Before heading their holding company, Sy-Coson headed two of its most profitable units: SM's retail operations and its banking arm Banco de Oro Unibank Incorporated, the Philippines' largest bank by assets.

Aside from BDO and retail, SM Investments now proudly owns Southeast Asia's largest property firm, SM Prime Holdings.

SM Prime is the surviving entity in the mega merger of the SM Group's property firms last year. From just holding malls, SM Prime's portfolio now includes residential projects, hotels, and convention centers.

On the other hand, Que-Azcona is the daughter of Mariano Que, founder of Mercury Drug, which now has 900 stores nationwide.

Que-Azcona was listed as the highest taxpayer in the Philippines in 2012, and her family was number 19 on the Forbes' rich list with a net worth of $840 million.

Forbes describes the 50 women on the list as those "who are driving change across diverse industries" in the region.

The women were selected based on criteria such as company revenue, their position at their companies, and their involvement in the running of daily operations.

Women from 13 countries are represented on the list. Women from China and Hong Kong again dominated this year’s list with 16 listees, followed by India with 7. Singapore and Australia each have 4 women on this year’s list, while Indonesia, South Korea, and Vietnam each have 3.

Philippines, Japan, Thailand, and Taiwan each have 2 women on the list. Malaysia and New Zealand each have one woman on the list. – Rappler.com

...the retail hotspot

PHL retail industry seen as 'hot spot' in intl investment

 

   

Published on Saturday,

17 August 2013 20:14

Written by Bianca Cuaresma

The country’s retail industry is poised to become a “hot spot” for local and international retail investments with the current boom in consumer spending and economic growth, a global investment consultancy group said.

 

Oxford Business Group (OBG), in its economic update last week, said the Philippines represents “an important new market” in retail sales and investment as they expect the growth in the economy and the Filipinos’ purchasing power to continue in the next few years.

 

“Strong economic growth is boosting consumer purchasing power in the Philippines, driving retail sales and creating opportunities for investment by both local and international chains,” OBG said.

 

The report, titled “Retail in the Philippines set to soar and spread,” noted the Philippine Retailers Association’s (PRA) expectation of a double-digit growth in the retail industry to kick in this year, following the 10-percent growth in 2012.

 

Paul Santos, national vice president of the PRA, told OBG the country’s retail sector would be worth P1.61 trillion by 2016, up from P1.43 trillion in 2011.

 

OBG also said officials from international retailers have seen the benefits of investing in the Philippines.

 

“In July 2013 Ian Wade, executive advisor to Sainsbury’s, the UK’s second-largest supermarket chain, said the retail sector needs to market itself more to international brands, praising the Philippines as offering many advantages, compared to its nearby markets.” OBG said in its report.

According to OBG, Wade said the Philippines offers better value for money than its peer countries like Hong Kong.

 

“It has a greater variety of stores than most countries; some of the biggest malls in the world are all in one city. From a retail point of view, the Philippines has a lot to offer,” Wade said.

 

OBG also noted that international retailers expressed their interest in the Philippine market.

 

Earlier this year, the fashion chain H&M said it was in the final stages of penetrating the Philippine market to join other international clothing lines that already launched their brands in the country such as Forever 21 and Uniqlo. In domestic investments, OBG also cited the growth of one of the growing supermarket chains in the country, where the store openings exceeded the administrations’ expectations.

 

“We were supposed to have 200 stores across the country by the end of 2015, but now we’re predicting that for the end of this year,” Leonardo Dayao, Puregold supermarket chain president, told OBG.

 

The Philippines, however, has yet to improve on online shopping as about only 3 percent of Filipinos use e-commerce.

 

OBG said the challenge for online sellers is to find the right payment mechanism for the country.

“Growth in online shopping is just one important change in a rapidly changing retail market, as consumers continue their shift their purchases from informal outlets to chain stores, both local and international,” OBG said.

 

...the emerging retail destination

Time to promote Philippines retail to the world - British retail expert

Malaya Business

Category: Entrepreneur

Published on Tuesday, 23 July 2013

Written by Jennifer A. Ng

 

“The Philippines offers much better value for money than Hong Kong. It has a greater variety of stores than most countries, some of the biggest malls in the world are all in one city. From a retail point of view, the Philippines has a lot to offer, but you don’t tell the rest of the world,” - Ian Wade, Sainsbury

THERE has never been a better time than now to position the Philippines as one of the top destinations for shopping, according to a British retail expert who will deliver a keynote speech during the 22nd National Retail Conference and Stores Asia Expo (NRCE) organized by the Philippine Retailers Association (PRA).

 

 

Ian F. Wade, executive advisor of sainsbury’s—the second-biggest supermarket chain in the United Kingdom, said the Philippine retail scene has many advantages compared to its Asian counterparts.

 

 

“The Philippines offers much better value for money than Hong Kong. It has a greater variety of stores than most countries, some of the biggest malls in the world are all in one city. From a retail point of view, the Philippines has a lot to offer, but you don’t tell the rest of the world,” Wade emphasized.

 

 

Wade noted that five of the biggest shopping malls in the world where affordable and quality products can be sourced are in Metro Manila. “It’s time to promote the Philippines and make people more aware that it has a lot more to offer.”

 

 

The former group managing director/chairman of health, beauty and lifestyle retailer A.S. Watson Group has been visiting the Philippines for the past 27 years. Wade was instrumental in the setup of Watson’s stores in the country.

 

 

“The Philippine retail industry used to be sleepy. It has transformed itself from being ordinary a few years ago to pretty damn good today. Stakeholders are more knowledgeable and more aware of what they’re doing,” Wade explained.

 

 

Wade served as group managing director of A.S. Watson group from 1982 to 2006. Under his leadership, the number of Watson stores grew from 16 to around 7,700 stores, which are found in more than 30 countries worldwide.

...the Asia-Pacific retail congress host

Philippines wins bid to host Asia-Pacific retail congress

 

 

Business Mirror

Published on Tuesday, 19 March 2013 

THE Philippines has won the right to host again the Asia-Pacific Retailers Convention and Exhibition (APRCE) in 2015, the same event that placed the country on the global retail radar when Manila hosted it 22 years ago.

 

The Philippine Retailers Association (PRA), the country’s largest organization of retailers and suppliers/service providers and the prime movers in the retail industry, recently announced that it won the bid to bring the gathering of the region’s retail industry leaders to the country for the second time during the Heads of Delegations (HOD) meeting of the Federation of Asia Pacific Retailers Association (FAPRA).

 

PRA and Robinsons Recreation Corp. President Frederick D. Go headed the local association’s delegation that made the bid for the country’s hosting of the APRCE at the HOD Meeting of the FAPRA held in Turkey last year. The PRA delegation also included PRA Vice Chairman and Toby’s Sports Chairman Roberto Claudio, PRA Vice Chairman and Central Books President Ma. Alegria Sibal-Limjoco and PRA Secretary-General Evelyn Balmeo- Salire.

 

FAPRA is the regional organization of retailers composed of 17 member-countries, including the Philippines, Singapore, Indonesia, Thailand, Hong Kong, Malaysia, Vietnam, Australia, New Zealand, Japan, South Korea, Taiwan, China, Mongolia, Turkey, Fiji and India

 

“2015 is a perfect timing for us to host APRCE because it is the first year of the Asean economic integration. With Southeast Asia becoming a borderless single market by 2015, it is important that we show to the world that the Philippines can be the best entry point for global retailers in Asean,” Go said.

 

Turkey will host the 16th APRCE in September this year. APRCE is the longest-running regional retail conference and expo in the Asia-Pacific region.

 

“The country’s hosting of the event comes in time for the completion of several retail and entertainment projects in Manila and in the key cities around the country. By 2013, the first facilities of Manila’s centerpiece gaming venue, the Manila Entertainment City of Pagcor [Philippine Amusement and Gaming Corp.], are expected to be completed,” Go said.

 

By 2015, over 40 new malls will be added to the Philippine retail landscape—which will show delegates to the APRCE a clear picture of the progressive Philippine retail industry. They will also see firsthand the bevy of international brands that enjoy prominence in the country.

 

The APRCE is expected to draw over 4,000 local and foreign attendees from the Asia-Pacific region. Sponsorship and exhibit opportunities are already open.

 

In Photo: PRA and Robinsons Recreation Corp. President Frederick D. Go. (Nonie Reyes)

 

 

...the PH consumer confidence

PHL consumer confidence one of highest in world – Nielsen

 

GMA News

February 5, 2013

The Philippines is one of the most optimistic countries when it comes to consumer confidence, said a new survey released by international research firm Nielsen on Tuesday.

Nielsen's Fourth Quarter Global Survey of Consumer Confidence and Spending Intentions gave the Philippines a score of 119 for the last quarter of 2012, one point higher than its score in the third quarter.

The total ranks the Philippines second only to India in the global tally, with the latter scoring 121 to lead the pack for the second straight quarter.

The survey, which was conducted from November 10 to 27, 2012, tallied the online responses of 29,000 respondents from 58 countries. The survey's baseline is 100; countries scoring below that is seen as having a "pessimistic" outlook when it comes to consumer confidence.

Only 10 countries of the 58 registered an "optimistic" outlook; after India and the Philippines, the top 10 is rounded out by Indonesia (117), Thailand (115), the United Arab Emirates (113), Saudi Arabia (112), Brazil (111), China (108), Malaysia (103), and Norway (102).

The 10 countries with the lowest scores in consumer confidence are Bulgaria (61), Japan (59), Slovakia (57), France (52), Spain (46), Croatia (42), Italy (39), South Korea and Portugal (tied at 38), Hungary (37) and Greece (35).

“While consumers around the world struggled with increasing economic concerns, consumers in the Philippines continue to have a positive outlook. This optimism can be attributed to the strong performance of the economy in 2012 which was driven by real estate, construction, manufacturing, services, and trade sectors,” said Nielsen Philippines managing director Stuart Jamieson in a statement.

According to the study, in the fourth quarter of 2012 Filipinos felt confident about:

- local job prospects: 76 percent are optimistic about job prospects in 2013. The rate is four points higher than the rate in the previous quarter, and is one of the highest in the world; and

- personal finances: 77 percent feel confident about their personal finances, a one-percent drop quarter-on-quarter. 2013 will be a good time to buy products, said 51 percent.

Beefing up their savings was a priority for 65 percent of the respondents, but the rate is two points off from the percentage recorded in the third quarter.

Filipinos' top concern is job security, followed by work/life balance, health, the economy, parents' welfare and happiness, and increasing utility bills.

The top global concern is the economy.

Optimism dropped in eight of 14 Asia-Pacific economies on the survey — a sign of "an increasingly polarized Asia-Pacific region," said Cambridge Group chief economist Venkatesh Bala, that divides the region into high-population economies with robust domestic consumption and developed markets that are more export-dependent that are therefore more exposed to volatile international fluctuations.

Global consumer confidence in the fourth quarter of 2012 fell slightly to 91 from 92 in the third quarter. — BM, GMA News

 

 

...the booming PH real estate

EXPERTS’ 2013 FORECAST

Bullish PH economy to rouse real estate industry

By Tessa R. Salazar
Philippine Daily Inquirer

Friday, January 18th, 2013

CENTURY Properties’ Acqua Private Residences is expected to do well this year since residential demand will stay strong across all subsectors.

What’s in store for the country’s property industry this year?

Going by the fearless forecast of five property analysts, the outlook for 2013 is rosy.

Julius Guevara, associate director for advisory services and head of consultancy and research of Colliers International, said that in general, “the bullish performance of the economy is seen to continue” in 2013. He said 2012 “proved to be a very good year for the Philippine economy and specifically for real estate.” He continued that “an end-of-year GDP (gross domestic product) growth rate between 6 and 7 percent has been forecast by various analysts, and we saw the stock market hit all-time highs during the past few months.”

Guevara added, “the residential condominium market has also exceeded historical sales levels this year, as low interest rates and record overseas remittances continue to fuel the housing boom.”

Colliers International recently released 10 forecast statements on the economy and property sectors for 2013—a collection of insights from various industry experts and Colliers.

“Similarly, the business process outsourcing (BPO) industry continued to drive the office property sector, and current vacancy rates in the major CBDs are in low single digits. The retail sector has also done tremendously well; occupancy rates in regional and superregional malls in Metro Manila are in the 90s. All in all, 2012 exceeded most of our expectations,” Guevara added.

Best real estate market

Rick Santos, CBRE founder and chair, noted: “We are now experiencing the best real estate market in the Philippines in the last 20 years. The Philippine real estate sector will have bright prospects in 2013. We see sustained growth in the BPO/office, residential, gaming and leisure sectors.”

Enrique Soriano, Ateneo program director for real estate and senior adviser for Wong+Bernstein Business Advisory, said: “Five years after the financial crisis triggered by a housing bubble, the global economy is convalescing. The Philippine economy is poised to move up. Real estate markets in all segments will grow. Some developers will fail and others will do better because they have a strategy and they have found exactly the right position.”

Claro dG. Cordero Jr., Jones Lang LaSalle’s head for research, consulting and valuation, said an estimated 11,200 units is expected to be completed within 2013 for the residential segment. He also explained that, though “the residential demand will stay strong across all subsegments, there are also various externalities which may challenge the growth of demand over the near- to medium-term.”

The first indicator cited by Colliers showed the Philippine economy would grow by around 6 percent in 2013. The forecast was made by Japanese financial services group Nomura and the World Bank.

 

The World Bank raised its forecast for the Philippine GDP in 2013 to 6.2 percent, up from 5 percent. Nomura also raised its forecast for the GDP to 6.6 percent in 2013. “Growth is expected to tick even higher in 2013 because of the impact of the elections, fiscal improvement and governance reforms in private investments,” Nomura said.

Karlo Pobre, Colliers International’s analyst for research and advisory services, explained that the recent growth in GDP indicates that economic activities in the country have further expanded.

“The higher the GDP is, the more attractive we become, specifically to foreign investors. Investment opportunities should reflect on the property industry, considering the recent developments in the market. This should preferably materialize in the office and industrial sectors,” he said.

Sector contribution

Pobre added that currently the construction sector contributes roughly about 8 to 9 percent of the GDP, while real estate services is at 11 percent.

Soriano said: “the long anticipated growth trajectory will happen this year; something that we have not felt for a long time. We have had growth spurts in the past years but never a real, sustained momentum. This time it’s for real. Our economic fundamentals are getting better. The housing and construction market has assumed the lead role in this trajectory, domestic demand is growing, PPP (public-private partnership) infrastructure will continue its aggressive pace and the midyear local elections will boost spending.

“Overseas remittance will grow as the US economy continues to improve, albeit at an annualized rate of 1 percent and Europe’s crisis is apparently showing some signs of remission. With this I expect the economy to pick up steam and grow to 6.8 percent.”

...the PH consumers' purchasing power

Consumers lead the way as Philippine economy surges

 

By Karen Lema and Erik dela Cruz,

Reuters

11/30/2012

 

 

MANILA, Philippines - At the Abenson Appliance Store in central Manila, orders for flat-panel televisions are coming in fast.

 

"People have money to spend," says Jeremiah Santos, a salesman for Sony products at the store in Manila's Makati business district. "Sales are picking up."

Data this week showed why. The economy grew 7.1 percent in the three months to September from a year earlier, nearly the same breakneck pace as China and the best in Southeast Asia. Government spending was a big driver, accelerating to 12 percent year-on-year, nearly double the rate a year earlier.

But consumers are also a potent force in the economic renaissance of a country once derided as the "sick man of Asia".

Household spending, which accelerated to 6.2 percent year-on-year from 5.9 percent in the prior year, contributed 430 basis points to growth, more than three times as much as government spending, official data showed.

Part of that boils down to a youthful population. Half of the Philippines' 96 million people are less than 20 years old, many speak English -- a legacy of its past as an American colony that helps attract foreign direct investment - and the population is projected to double to 190 million by 2040.

Remittances from more than 10 million overseas workers are an increasing source of growth, pumping an average $1.7 billion every month into the $200 billion economy. Many are skilled engineers and nurses.

Philippine stocks scaled a record high this week, while the peso has appreciated more than 7 percent so far this year, making it the best performing emerging Asian currency. Economists say the buoyant growth outlook should give the currency room to climb further.

CREDIT BOOM

An unprecedented credit boom, which some worry could be close to a bubble, is also driving spending. Consumer loans grew by 17 percent in June from a year ago, based on latest available data from the central bank. Mortgage loans jumped 23 percent in that period to hit a four-year high.

"We are growing at a very satisfactory pace," says Leonardo Dayao, president of Puregold Price Club Inc., a grocer popular among the low- to middle-income classes. "While we have projected revenue growth of 25 percent this year, as of the third quarter we're already hitting 29 percent."
"We are confident that things will improve further."

Retailers are scrambling to open new stores to keep pace with the spending, said Stephen Cua of the Philippine Amalgamated Supermarkets Association.

"Stores are doing pretty much okay but not fantastically because the number of stores rose. There is more competition," he said, estimating that the major retail operators - Puregold, Robinsons, SM and Rustans -- added a total 60 to 70 new stores nationwide this year.

"People are starting to feel that there's a more continuous trickle of income. Unlike before when it was intermittent."

HAND-OUTS

Economists at Barclays expect consumer spending to remain strong into the first half of next year due to mid-term elections in May and associated "hand-outs." That means the central bank will likely keep interest rates unchanged at 3.5 percent in the December policy meeting and into 2013, they said.

Strong consumer spending has held up the services sector, which accounts for half of gross domestic product and expanded 7.0 percent from a year earlier. Construction and manufacturing growth pushed up the industry sector 8.1 percent. Agriculture, which accounts for a fifth of GDP, rose 4.1 percent.

Several construction projects that were stalled in 2011 are being revived, helping fuel a 24 percent rise in public construction year on year. Reconstruction work after floods in the capital and nearby provinces in August also played a part.

The robust economy, say economists, gives President Benigno Aquino III more flexibility to go beyond usual half-hearted attempts to crack down on corruption, fix a stifling bureaucracy and find new streams of revenue in a country whose earnings typically end up in the hands of a narrow, moneyed elite.

It is also stoking optimism among retailers such as Jollibee Foods Corp., the Philippines' largest fast food chain which outsells global heavyweights McDonalds and Yum Brands Inc. on its home turf.

Jollibee's annual gross profit margin of nearly 18 percent in the July-September period was its highest in the last six quarters.

SM Prime Holdings Inc., the country's largest mall operator, grew both its net income and revenues by 15 percent in the first nine months from a year ago. Shares of SM Prime are up around 36 percent this year, outpacing the main index's 28 percent gain -- among the strongest globally.

Annie Garcia, president of SM Supermalls, a unit of SM Prime Holdings, is seeing a rise in remittance money flowing into shopping malls. "We're seeing a rise in consumer spending in part because of these remittances," she said.

Puregold Price Club said its net sales in the third quarter jumped 45 percent from a year ago after it opened 38 new stores this year and acquired a rival supermarket chain. Its shares have soared more than 81 percent this year.

As Filipinos' wealth grows, their preference for pricey but high-quality electronics products is also rising.

"Obviously there is preference for LED TVs," said Santos, the Sony salesman at the Abenson Appliance Store. "We are ready for the peak season."

...the world's biggest fashion show

Philippines holds world's biggest fashion show

 

ABS-CBNnews.com

11/30/2012

 

MANILA, Philippines -- A fashion show held Thursday night in Makati City became the Philippines' 8th Guinness world record this year.

Coinciding with the launch of "a new Glorietta," the popular Makati mall set out to beat the current world record for "Most People Modeling on a Catwalk" through a fashion show dubbed "Move to the Vibe of Glorietta."

"The current record is 1,967 people modeling on the catwalk, and that is now held in Turkey, and that was just broken in May this year," Kirsty Bennett, adjudicator of the Guinness Book of World Records, told ABS-CBN News moments before the Glorietta fashion show broke the world record.

More than 2,000 professional and amateur models gathered at the event held at the new Glorietta Palm Drive. They showcased brands such as Bench, Penshoppe, Stores Specialists Inc., Mango, Folded & Hung and Lacoste.

Models waiting for their turn (rappler.com)

 

Models lined up backstage (rappler.com)

While waiting for Bennett's announcement (rappler.com)

 A screen on stage showed the count of the individual models who walked the five ramps. By the end of the show, the participating models numbered 2,255, beating a record earlier set by Turkey.

OFFICIALLY AMAZING. The Philippines now holds the Guinness World Record for the most number of people walking on a catwalk. All photos by Edric Chen (rappler.com)

The event turned festive -- confetti showered those in attendance -- as Bennett officially conferred the record.

Victoty toast (rappler.com)

9 world records in 2012

Nine Guinness world records have been set in the Philippines in 2012 alone.

In March, Camarines Sur scored the world record for most number of mangroves planted in one hour. The world record for the most number of consecutive haircuts by a team was set in Valenzuela City in May.

The saltwater crocodile named Lolong, meanwhile, was named by Guinness as the largest of its kind in captivity in the world in July. In the same month, the religious organization Iglesia ni Cristo scored three Guinness records for the country -- the largest dental health check, the most number of blood pressure readings taken in eight hours, and the biggest number of blood glucose level tests conducted in eight hours.

Early this month, Filipino Herbert Chavez made his way to the 2013 edition of the Guinness Book of World Records for having the largest collection of Superman memorabilia.

On Thursday, another world record -- the Philippines' ninth this year -- was announced to have been set by Gina Gil Lacuna of Tagaytay City.

Her collection of 1,028 different puzzles was recognized by Guinness as being the world's largest.

...the Asia's Shopping paradise

Manila outperforms 15 Asian cities in 'shopping' index

 

By Kim Arveen Patria

Yahoo! Southeast Asia Newsroom

Tue, Oct 30, 2012

Photo by Voltaire Domingo/NPPA Images

Tourists traveling in the Philippines not only visit the country for its natural wonders or historic sites but also to do some shopping, a new study shows.

The Philippine capital city of Manila outperformed almost 15 Asian cities in the Economist Intelligence Unit's new "Globe Shopper Index Asia-Pacific" report.

Manila was ranked 11th out of 25 overall, with a score of 51.5 index points on five categories deemed important to shopping travelers.

These are the variety of shops, affordability of products, convenience, hotels and transport, as well as culture and climate.

It followed the top 10 Asian-Pacific shopping cities namely Hongkong, Kuala Lumpur, Shanghai, Beijing, Singapore, Sydney, Bangkok, Tokyo, Seoul and Delhi.

"Geographically, spiritually and culturally set apart from mainland Southeast Asia, Manila can feel different than the rest of Asia," the report said.

"Shoppers will admire colonial architecture, stunning stone churches and lively town plazas as they stroll between shops," it added.

Manila's best performance is in affordability, where it ranked 8th. It also landed among the top Asia-Pacific cities in terms of convenience, sharing the 10th spot with Mumbai.

"Relaxed visa regulations make it easy to enter the country, while the city offers both affordable dining and public transport," the report said.

Manila posted a slightly weaker performance in the culture and climate sub-index, where it ranked 11th, and hotels and transport, 16th.

Its worst performance, however, is in the shops sub-index, where it ranked 18th. "Manila does not offer a wide range of international brands," the report said.

The study uses data from a variety of sources collected between January and February 2012.

Cities were scored based on the qualitative and quantitative assessments using standardized values on a scale of zero to 100.

"[S]hopping plays an integral part in Asian tourism," the report said, as it highlighted an "inherent dichotomy" in the emerging term "shopping tourism."

"Shopping, on the one hand, for all the activities associated with it, is fundamentally about the acquisition of goods or services... Tourism, on the other hand, is about obtaining experiences," it added.

"Shopping tourism, then, to put it at its most basic, is about what you get and how it feels to get it," the report noted.

...the growth momentum

PHL economic chief hopes Q2 GDP took the cue from Q1's 6.4% growth

August 1, 2012

GMA News

The gross domestic product's 6.4% growth in the first quarter of 2012 set the bar for the rest of the year, and the country's Socioeconomic chief hopes the economy sustained the momentum for the April-June period.

“We’re hoping we get close to 6.4 percent in the second quarter,” Socioeconomic Planning Secretary Arsenio Balisacan said on the sidelines of the 2013 budget hearing at the House of Representatives.

“Real GDP growth is projected to grow by 5 percent to 6 percent. The 6.4 percent growth in the first quarter gives us a sense that GDP growth [for the whole year] would hit the higher end of the range,” he said in his presentation.

He said growth would be driven by better labor and employment opportunities, strong dollar remittances from overseas Filipinos and the country’s growing retail sector among other sectors.

Balisacan cited several bright spots in the economy which could help cushion the economy from global risks.

"The government has enough fiscal latitude…. Beyond government statistics, we have reinforcing indicators such as governance and competitiveness indicators, credit rating agencies, upbeat private sector, and high stock market indices,” he said.

In the first quarter of the year, GDP grew by 6.4 percent from the revised 4.9 percent a year earlier, thanks to the strong performance of the services and industry sectors which grew 8.5 percent and 4.9 percent, respectively.

The latest forecast of the the interagency Development Budget Coordination Committee (DBCC) is that the economy would grow 6-7 percent in 2013, 6.5-7.5 percent in 2014, 7-8 percent in 2015 and 7.5-8.5 percent in 2016.

During Wednesday's hearing, Balisacan said the country needs to develop its own industries for economic growth to hit the 7 percent to 8 percent range. — BM/VS, GMA News

...the largest malls

15 largest shopping malls in the world

Yahoo! She Philippines

 

 

This is a list of the world's largest shopping malls based on their gross leasable area.

New South China Mal - Dongguan,  China

Gross Leasable Area (GLA) : 659,612 sqm
Photo: By David290, Wikimedia Commons

Golden Resources Mall - Beijing, China

Gross Leasable Area (GLA) : 557,419 sqm
Photo: By Frank Yu, Wikimedia Commons

SM City North Edsa - Quezon City, Philippines

Gross Leasable Area (GLA): 482,878 sqm

1 Utama - Petaling Jaya, Malaysia

Gross Leasable Area (GLA): 465,000 sqm
Photo: By Tee Meng at the English language Wikipedia

Central World - Bangkok, Thailand

Gross Leasable Area (GLA): 429,500 sqm
Photo: By User:Lerdsuwa

Persian Gulf Complex - Shiraz, Iran

Gross Leasable Area (GLA): 420,000 sqm

Mid Valley Megamall - Kuala Lumpur, Malaysia

Gross Leasable Area (GLA): 420,000 sqm
Photo: By Craig

Cehavir Mall - Istanbul, Turkey

Gross Leasable Area (GLA): 420,000 sqm
Photo: By Maurice07

Sunway Pyramid - Selangor, Malaysia

Gross Leasable Area (GLA): 396,000 sqm

Mall of Asia - Pasay City, Philippines


Gross Leasable Area (GLA): 390,193 sqm
Photo: By Mike Gonzalez

Jamuna Future Park - Dhaka,  Bangladesh

Gross Leasable Area (GLA): 380,000 sqm
Photo: By Chicken7

The Dubai Mall - Dubai, United Arab Emirates

Gross Leasable Area (GLA): 350,000 sqm
(Photo by Mike Hewitt/Getty Images)

West Edmonton Mall - Alberta, Canada

Gross Leasable Area (GLA): 350,000 sqm
Photo: By Simon Law

SM Megamall - Mandaluyong City, Philippines

Gross Leasable Area (GLA): 348,056 sqm

Berjaya Times Square - Kuala Lumpur, Malaysia

Gross Leasable Area (GLA): 320,000 sqm
Photo: By Cmglee

...the new Manila's CBD

ALI Investing P65B In QC CBD

10-Year Development

By JAMES A. LOYOLA

July 5, 2012

Manila Bulletin

MANILA, Philippines – Ayala Land Inc. (ALI) is investing P65 billion over the next 10 years for the development of the Metro Manila’s next central business district (CBD) in Quezon City (QC) called Vertis North beside its Trinoma mall.

In a press briefing, ALI president Antonino Aquino said half of the budget will be for office buildings while the other half is for retail spaces, residential condominiums and hotels.

He added that the integrated urban development masterplan calls for the construction of 45 towers on a 29-hectare lot owned by the National Housing Authority (NHA).

“Quezon City is fast becoming a center of gravity for economic developments as it works to be at par with international business standards,” said Aquino.

ALI will invest an initial P12 billion for the launch of Phase 1 of Vertis North which will mark the
 development of its office, retail, and hotel components within a 7-hectare land area, which is expected to be completed in the next three to four years.

This initial phase will put up a total gross floor area of 220,000 square meters, including business process outsourcing (BPO) establishments, hotel, and retail shops.

It will also generate close to 200,000 jobs during its entire development phase, 35,000 of which will be filled during the development stage of Phase 1.

Meanwhile, the national government, through NHA, also eyes to gain P11 billion worth of housing investments through its partnership with Ayala Land at Vertis North.

This will further boost the government’s efforts to reduce the national housing backlog, as it stands to benefit close to 50,000 families, said NHA general manager Chito Cruz.

Vertis North is strategically located at the northern tip of Quezon City as it is the convergence point of commuter rail lines and three major road arteries, particularly the Epifanio de los Santos Avenue (EDSA), Mindanao Avenue, and North Avenue.

It also serves as the gateway to the North given its connection to the North Luzon Expressway (NLEx). Ayala Land intends to capitalize on this huge upside by bringing an intermodal transport terminal facility at Vertis North.

...the modern shoppers

Filipino Shoppers Going Modern – Survey

 

Manila Bulletin 

 Sat, Jun 30, 2012

More and more Filipinos are purchasing goods in modern trade channels such as supermarkets and hypermarkets throughout the country but sari-sari stores still rule, a consumer survey by Kantar Worldpanel found.

SM Hypermarket

A study by Kantar Worldpanel, the world-leading provider of continuous, syndicated consumer panels and research solutions into shoppers' purchase and usage behavior, looked at the venues where Filipino households make their fast-moving consumer goods (FMCG) purchases.

It tracked 3,000 urban and rural households nationwide, predominantly from the DE market with an annual household income that is P800 billion more than the national budget.

Mercury Drugstore

Around 17 million homes comprise the DE market with FMCG purchases amounting to P434 billion.
Almost half of Filipino shoppers (47%) still buy from the sari-sari stores.

However, the Kantar Worldpanel study, "Philippine Households' FMCG Spending," reveals that Filipinos are now increasingly buying more goods in supermarkets and hypermarkets where promotions and affordable packs are becoming more available.

Watsons outlet

An upward trend in the growth of channel shares has been seen in modern trade channels, increasing from 26% to 28% in the past four years, compared to other channels like grocery stores, drug stores and market stalls, which registered flat or decreasing growth.

Filipino homes are also spending more on modern trade. The average FMCG spending in modern trade channels per household has increased to Php 9,495 in 2011 from Php 9,194 in 2010 (301-pesos increase). In fact, average spending on modern trade has also steadily increased in the past four years.

• Another key finding in the "Philippine Households' FMCG Spending" study is the expansion of modern trade retailers to reach more Filipinos. These retailers have been aggressive in opening more branches outside the National Capital Region (NCR). The likes of Mercury Drug, Watsons and SM have post the highest number of branches at 700, 218 and 144, respectively. Evidenced by its number of branches nationwide, Mercury Drug enjoys a market penetration rate of 30.4%, compared to SM at 25.9% and Watsons at 4.5%.

...the richest Filipinos

Henry Sy is PH's richest man--Forbes

 

By Ivy Jean Vibar,

ABS-CBNnews.com

06/21/2012

 

 

Henry Sy

MANILA, Philippines – Henry Sy is still the Philippines’ richest person, according to Forbes Asia, while Enrique Razon Jr. saw the biggest gain in wealth in the past year.

Sy, who owns SM Prime, one of the country’s largest mall developers, remains on top of the list of 40 richest people in the Philippines with a net worth of $9.1 billion. His net worth is up $1.9 billion from last year.

Second on the list is the Philippine Airlines’ Lucio Tan, with a net worth of $4.5 billion, up $1.7 billion from last year. Tan also has interests in beer production, tobacco and real estate.

At third place is Razon, whose net worth surged by $2 billion to $3.6 billion. He heads the International Container Terminal Services (ICTS), one of the largest port operators in Asia. He has expanded from shipping to gambling and resorts, holding a stake in Bloomberry Resorts, which had a public offering in May.

Former Trade Minister Roberto Ongpin ranked 9th with $1.5 billion. He has investments in property, gaming, mining and telecommunications. Last year, Ongpin was involved in a Senate inquiry over an allegedly behest loan given by the Development Bank of the Philippines.

Newcomers to the list include Puregold Price Club owners Lucio and Susan Co, who are number 13 on the list with a net worth of $1.2 billion; and Megawide Construction’s Michael Cosiquien, whose net worth of $150 million put him at the 39th spot.

Also in the list is real estate developer Senator Manuel Villar with a $720 million net worth. He is 18th on the list.

Media patriarchs Oscar Lopez, Gilberto Duavit, Menardo Jimenez and Felipe Gozon are also on the list.
Lopez, 31st on the list with a net worth of $245 million, is chairman emeritus of Lopez Holdings, which controls ABS-CBN.

Duavit (26, $270 million), Jimenez (27, $265 million) and Gozon (32, $240 million) meanwhile, hold shares in GMA Network.

There are now 15 billionaires in the Philippines, Forbes said, who benefited from an ongoing consumer boom, a surge in tourism and outsourcing, a stock market which gained 17% in the past year and economic growth of 6.4% in the last quarter.

Forbes’ list was compiled using shareholding and financial information obtained from the families and individuals, stock exchanges, analysts and other sources. Net worths are based on stock prices, and exchange rates as of the close of markets on June 8. Private companies were valued based on similar companies that are publicly traded.

The top 10 richest in the Philippines are:
1) Henry Sy; US$9.1 billion
2) Lucio Tan; $4.5 billion
3) Enrique Razon Jr.; $3.6 billion
4) John Gokongwei Jr.; $3.2 billion
5) David Consunji; $2.7 billion
6) Andrew Tan; $2.3 billion
7) Jaime Zobel de Ayala; $2.2 billion
8) George Ty; $1.7 billion
9) Roberto Ongpin; $1.5 billion
10) Eduardo Cojuangco Jr.; $1.4 billion
See the full list

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...the Sweet Spot

PH remains in 'sweet spot' of capital markets

ABS-CBNnews.com

06/18/2012

 

 

MANILA, Philippines - Amidst lingering overseas volatility, improving market liquidity, domestic investor participation and resilient local economic fundamentals, the Philippines remains to be in a so-called "sweet spot" of the capital markets.

 

“We should all look at today's scenario as very positive for the Philippines.The Philippines is back on the radar that wasn't the case a few years ago,” said Sanjiv Vohra, Citi Philippines chief executive officer.

Vohra, together with other financial market experts were resource persons at the Philippine Financial Market Forum organized by The Asset and the Financial Executives of the Philippines.

But while the Philippines is pretty much in a "sweet spot", Vohra however stressed investors were looking for companies that reflected the strong outlook on the Philippine economy.

Examples of these were the conglomerates, banks and to a certain extent, real estate firms that give exposure to the robust business process outsourcing (BPO) and retail businesses.

Vohra added the Philippines must address issues on foreign ownership restrictions as well as protection of minority rights.

Citi, which is commemorating its 200th year this month, is one of those firms bullish on the growth of the Philippine economy.

More than a century ago, when it was looking to expand in Asia, the Philippines was one of the first markets where it invested. It also made many firsts in banking in the country such as financing the Manila Electric Railroad and Light Company now known as MERALCO for the electric railway system and the first bank to reopen in Manila after World War II. It was also the first to set up a 24-hour phone banking and the first ever call center facility built in the Philippines.

...the rising FDI

BSP: First two mos. foreign direct investments up 154% to $850M

 

May 10, 2012

GMA News

 

 

Foreign direct investment (FDI) soared 154 percent in the first two months of the year, encouraged by strong macroeconomic fundamentals, the Bangko Sentral ng Pilipinas (BSP) said Thursday.
 
FDIs reached $850 million in January to February, up $515 million from $335 million a year earlier, BSP Gov. Amando Tetangco Jr. noted in a statement
 
“The respectable growth of FDI reflected favorable investor sentiment as the country’s macroeconomic fundamentals remained strong amid continuing concerns over the sovereign debt crisis in some parts of Europe and the moderation in global economic activity,” said Tetangco.
 
Equity placements surged 1,317 percent to $893 million from $63 million in the same comparable period, and withdrawals rose 266.7 percent to $77 million from $21 million.
 
Equity capital came from the US, Australia, Japan, and Kuwait and were placed largely in the manufacturing, wholesale and retail trade, real estate, financial and insurance services, mining and quarrying, information and technology sectors, Tetangco pointed out.
 
However, other capital account, largely inter-company borrowings between foreign direct investors and their subsidiaries or affiliates in the Philippines, dropped by 111 percent to a net outflow of $24 million in the first two months from a net inflow of $243 million, the Bangko Sentral noted.
 
Reinvested earnings went up by 20 percent to $60 million from $50 million as foreign direct investors retained parts of their earnings in local enterprises.
 
In February alone, Tetangco noted FDI inflows fell 30.6 percent to $84 million from $121 million a year earlier as other capital account posted a net outflow of $21 million from a net inflow of $94 million.
 
Equity investments in February, however, surged 389 percent to $132 million from $27 million. Withdrawals jumped 244 percent to $55 million from $16 million.
 
Reinvested earnings surged 75 percent to $28 million from $16 million.
 
Tetangco said the bulk of inflows–or $100 million–represented final payment for the acquisition of shares by a foreign firm in a beverage manufacturer.
 
Kirin Holdings of Japan bought a 43-percent stake in diversified conglomerate San Miguel Corp. (SMC) in 2009 for $1.06 billion and spent another $300 million in 2010 to acquire an interest in San Miguel Brewing International Ltd.
 
New York-based Standard and Poor's (S&P) recently raised the Philippines credit rating outlook to positive from stable, signaling a possible upgrade of the rating that is now two notches below investment grade.
 
Still, London-based Fitch Ratings rates the country's sovereign credit at one notch below investment grade while Moody's Investors Service and S&P rate the country's sovereign credit at two notches below investment grade with a stable outlook. —VS, GMA News

...the "coming out" party

Garment companies in China relocating to PH: Purisima

 

By Cathy Rose A. Garcia

ABS-CBNnews.com

04/26/2012

 

 

ADB meeting is "coming out party" for Aquino administration

 

MANILA, Philippines - Finance Secretary Cesar Purisima sees more foreign investments coming into the Philippines.

In an interview on ANC Headstart, Purisima said some garment companies are starting to relocate from China to the Philippines, due to rising labor costs in China.

He added electronics companies, which have been affected by the earthquake and tsunami in Japan and the flooding in Thailand last year are starting to look at the Philippines.

"The stock market is getting a lot of investments from foreign funds. Obviously we want the more productive type of investment and we're starting to see it. For example, garment companies that are starting to relocate from China, where the wage costs are increasing, back to the Philippines. Electronics companies realized last year that they cannot be just in one place... They're starting to look at the Philippines. The Department of Trade and Industry is managing a lot of inquiries right now. There are concrete plans for plants to be built in the Philippines," Purisima said.

This is why, Purisima said, the government has to improve the country's infrastructure to meet the standards of foreign investors.

"We are accelerating our efforts to build our infrastructure because infrastructure is important to make sure we're as efficient as our neighbors -- our ports, airports, power, mass transit, the whole work," he said.

"Coming out party"

Infrastructure will be the main topic in the upcoming 45th Annual Meeting of the Asian Development Bank (ADB), which will be held in Manila next week. Purisima said there will also be discussions on poverty alleviation, disaster management and climate change, which are all relevant for the Philippines.

Purisima said a record number of participants are attending the ADB event, which will be a "coming out" party for the Aquino administration.

"We're going to make this more fun," he said, referencing the Philippines' tourism slogan "It's more fun in the Philippines."

The ADB meeting in Manila, Purisima said, will be more personal than previous conferences.

"We're also going to make it true knowledge-sharing. I've attended other ADB conferences, and its very impersonal. We want this to be personal, an experience for all attendees... So far, we have 4,300 participants -- a record. This is the highest ever so far and over half will be coming from abroad. These are not just ordinary tourists, these are decision-makers, leading bankers, fund managers, leaders in the NGO community converging in Manila," he said.

The Finance Secretary expressed hope these opinon leaders, who will visit Manila, will spread the good news about the Philippines.

"When they go back home, hopefully they will spread the good word that finally, the Philippines has gotten its act together. We have a leadership that believes in good governance, truly cares and want to build a better Philippines," he said. - With ANC

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...The SM empire

SM receives Retail Asia's Hall of Fame award

November 28, 2011

Manila Bulletin

MANILA, Philippines — The SM Retail Group was recently inducted into the Hall of Fame of Retail Asia’s Asia Pacific Top 500 Awards during a gala dinner in Singapore, highlighting its leadership not only in the Philippines, but also in the Asia-Pacific region.

Considered the pinnacle of the Top 500 Awards, the distinction of being inducted into the Hall of Fame is given to retailers who have been awarded the Best of the Best Award over three consecutive years.

Spearheaded by Retail Asia, the prestigious Singapore–based magazine, the Top 500 ranks retailers in 14 Asia-Pacific economies on sales turnover and sales productivity. This includes retailers from Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, the Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam.

Drawing from Euromonitor International’s research and analysis of the retail industry around the world, analysts in the 14 Asia-Pacific economies featured did research for the 2011 edition. The ranking continues to highlight companies that have become the movers and shakers in the region’s retail sector.

The Best of the Best Award is presented to a select group of retailers who rank among the top three in their respective market, and whom an independent jury has assessed as the crème de la crème among their peers.

During the same event, SM received its Gold Award as the Philippines’ top retailer for the eighth year in a row.

“These are retailers whose sales turnover and productivity and sales performance have been superlative in their respective niches, and whose performance towers over industry norms,” says Steven HL Goh, Executive Chairman of Retail Asia Publishing. “We are proud to salute their performance and present them accolades for their achievement.”

As a Gold Awardee, SM is among the Asia-Pacific retailers who have “retained their respective exalted position on account of their business volume and market leadership.”

SM’s aggressive mall expansion program has allowed it to open more stores and communities outside the Metro. “Having pioneered bringing world class shopping extensively around the Philippines, we have become part of the communities we serve,” says SM Investments Vice Chairman Tessie Sy Coson.

...the BenCH

Bench bags international honors


The Philippine Star
November 06, 2011

Ben Chan at the 15th Asia-Pacific Retailers Convention in Singapore. Bench won the Best Marketing Campaign award for its series of underwear shows.|

MANILA, Philippines - When you think of a local retailer that has successfully gone global, top of mind would be Bench. Now with stores in Riyadh, Kuwait, San Francisco, Los Angeles, Saudi Arabia, Bahrain, and different cities in China (more than 27 company-owned stores and 19 franchises in this emerging superpower alone), Bench is now providing affordable and quality products to not just Filipinos based abroad, but also to fashion lovers who can’t resist the brand’s youthful, practical and trend-purveying products.

Bench’s international appeal, however, is not only consumer-reliant. Just recently the clothing and lifestyle brand proved that global success is not just based on sales or a particular number of stores when it bagged the Best Marketing Campaign Award at the 2011 FAPRA (Federation of Asia-Pacific Retailers Association) Awards.

Bench head honchos Virgilio Lim, Ben Chan, Nenita Lim and Bryan Lim

Once just a small booth at SM Department Store, Bench, founded by Ben Chan (a dreamer with an interior design education), first entered the retail scene by peddling T-shirts. A year later, Chan opened his first boutique and expanded the Filipino wardrobe by offering bottoms and more clothing options. In 1991, Bench pursued the possibilities of advertising and released a TV commercial featuring then local heartthrob Richard Gomez. Devoid of copy or voiceover, the black-and-white TVC showed Gomez rowing a banca to a soundtrack of Chopin’s Claire de Lune.

The audacious simplicity of this ad won the Best Cinematography Award in that year’s Philippine Advertising Congress and set an internal standard for succeeding Bench advertising and marketing campaigns. The success of this TVC also became a portent to other forms of marketing recognition, a fitting precedent to the FAPRA award it recently received.

Ben Chan, on behalf of Bench, receives the Best Marketing Campaign award from FAPRA Permanent Secretariat Secretary General professor Xiaoning Cao with Dr. Jannie Tay, FABRA chairman Lee Chul Woo.

Held annually during the Asia-Pacific Retailers Convention and Exhibition, the largest gathering of all retailers in the region, the FAPRA Awards honors Asian merchants’ most innovative and creative efforts in the selling,
marketing, customer service  and even training categories.

This year, the Philippine Retailers Association (PRA) nominated Bench and its series of underwear shows as a contender for the Best Marketing Campaign Award. The much-awaited event, which had its debut showing in 1997, is mounted every two years and attracts hordes of attendees, most of whom would probably give an arm, leg and any other available limb just for a ticket. Over the years, the Bench underwear event has grown from just being a show of skin or a celebrity stage gathering to a spectacle that incorporates international acts and globally-based Filipino designers — in 2008, Bench introduced their Mobo underwear line by London-based designer Lesley Mobo, and also wowed audiences with French acrobats hanging from the ceiling, tethered just by aerial silk; in 2010, the Bench Uncut show focused on Bench’s global undertakings and featured designs of Dubai-based designers Michael Cinco and Furne One, both now making waves in Hollywood.

PRA president Frederick Go with Ben Chan, Virgilio Lim and Robert Claudio