01:09.1
To the board now, regional equity sinking in a sea of red, with the Nikkei 225 seeing the biggest cut.
01:15.2
It is down by over 3%.
01:17.2
On track to close lower for a seventh straight session.
01:21.1
The Hang Seng also down after ending the trade in the red for two consecutive days.
01:26.7
The Kospi index down by over a percent.
01:30.0
South Korea's economic growth missed expectations.
01:35.2
Let's take a look at the futures in Europe now.
01:38.0
They're set to join the global route with the French CAC 40 seen to open more than 4% lower.
01:43.5
Investors in the region also digesting a raft of earnings results, including from Astra, Seneca and Total Energies.
01:51.8
Consumer goods giant Unilever also reporting worse than expected underlying second quarter sales.
02:00.0
Features for Wall Street are a little changed after last night's sell-off.
02:03.4
Aside from earnings, key data are also on tap, including initial jobs claims or jobless claims and preliminary Q2 GDP numbers.
02:14.6
U.S. President Joe Biden issues his public remarks since abruptly exiting the White House race.
02:20.5
Biden bowed out of the presidential elections last Sunday after a disastrous debate,
02:24.9
which raised questions about his fitness to lead America for another four years.
02:30.0
He has since endorsed his vice president, Kamala Harris, for America's top post.
02:35.0
In a novel office address, Biden said backing out is the only way for him to unite the country and save democracy.
02:43.4
Biden is the first incumbent president not to seek re-election since 1968 when Lyndon Johnson was under fire for his handling of the Vietnam War.
02:56.7
I review this office.
02:58.5
But I love my country more.
03:01.6
It's been the honor of my life to serve as your president.
03:05.5
But in the defense of democracy, which is at stake, I think it's more important than any title.
03:11.2
It's become clear to me that I need to unite my party in this critical endeavor.
03:17.5
I believe my record as president, my leadership in the world, my vision for America's future, all merit at a second term.
03:28.5
But nothing, nothing can come in the way of saving our democracy.
03:34.2
That includes personal ambition.
03:37.1
So I've decided the best way forward is to pass the torch to a new generation.
03:43.9
Meanwhile, Republican presidential candidate Donald Trump attacked potential Democratic presidential candidate Kamala Harris in his first rally since Biden's departure.
03:56.1
If Kamala Harris gets in...
03:58.5
If she wins, she would be the most radical far-left extremist ever to occupy the White House times ten.
04:05.0
There's never been a lunatic like this in the White House.
04:09.3
And we've had some bad ones.
04:11.2
So now they bring in this one who's worse than him.
04:15.0
She's worse than him.
04:16.9
Because he's a fake liberal.
04:18.7
You know, he wasn't that liberal.
04:21.3
She's a real liberal.
04:22.4
She really is a real liberal.
04:23.9
She's much worse than him.
04:28.5
So the vice president confirms Sarah Duterte is abroad on a personal trip.
04:32.6
In a statement, the OVP says Duterte was given a travel authority as early as July 9th to go on a personal trip with her family to an undisclosed country.
04:42.8
It also described as unfortunate the timing of Duterte's trip coinciding with the floods brought about by Typhoon Karina on Wednesday.
04:51.6
But the OVP assures the public Duterte is ready to assist families affected by the calamity.
04:57.2
Duterte earned the ire of netizens after photos of her supposed departure for Germany circulated online.
05:06.5
Typhoon Karina left the Philippine area of responsibility Thursday morning.
05:10.7
However, Weather Bureau pag-asa warns of moderate to heavy monsoon rains over the western sections of northern and central Luzon until Saturday.
05:19.9
Karina, with international name Gamy, has already made landfall in Taiwan's east coast.
05:25.5
Taiwanese officials said,
05:27.2
Meanwhile, preparations are underway in China's southeastern province of Fujian ahead of the storm's arrival.
05:38.4
Typhoon Gamy is expected to make landfall in Fujian late Thursday.
05:44.7
The death toll from non-stop rains brought by Typhoon Karina and the southwest monsoon rises to 21.
05:51.4
This is according to the Philippine police, which said 15 others are injured,
05:56.4
while five are unharmed.
05:57.4
The official death toll from the country's disaster officials, however, stands at 14.
06:04.0
President Marcos Jr. now inspecting evacuation centers in Abota City and delivering aid to flood victims.
06:11.5
He urged agencies to immediately determine the assistance needed in areas hardest hit by inclement weather.
06:17.7
The state calamity has been declared in Metro Manila as well as the provinces of Oriental Mindoro, Batangas, Cavite, Bataan,
06:27.8
Thank you very much.
06:30.2
We can See for ourselves's that the marginalized Hanyung yung no system.
06:36.6
So where are we now?
06:39.2
Then explain what is the situation on the ground now?
06:42.7
Where is there still flooding?
06:46.1
Where are their still isolated communities?
06:49.0
That is what we need to know because battleκuhura ang lahat ng ang ating
06:53.2
mga agency we need to know where to go.
06:55.5
That's really what I need to hear from you.
06:57.1
Where do we go now? Which are the places that need the most help immediately?
07:02.7
We need to get as quickly as possible a good assessment of what the situation is and what it is that we need to do.
07:14.4
More senators criticizing government's inefficient flood control projects.
07:19.0
Senator J.V. Ercito said the floods that hit Metro Manila and surrounding provinces is proof the projects were not planned and executed well.
07:29.2
Ercito wants government to aim for big-ticket flood control projects like mega-dikes and huge water-impounding infrastructure.
07:37.1
Senator Sherwin Gachalian also suggesting that flood control projects be redesigned to consider the rapid urbanization and high population density of Metro Manila.
07:47.5
On Wednesday, Senator J.V. Ercito said the flood control projects were not planned and executed well.
07:49.0
Senators Juan Miguel Zubiri and Joel Villanueva slammed the Manila Bay reclamation project for causing flooding outside the Senate as well as in neighboring province of Bulacan.
08:02.0
Philippine House lawmakers meanwhile seek a probe on flood control projects in Metro Manila after the capital region was hit by widespread flooding from the enhanced southwest monsoon.
08:12.8
Let's get the details from Vivian Gulia who now joins us on the line. Viv, go ahead.
08:19.0
Finally, lawmakers are calling for a house inquiry into the government's flood control project and the massive flooding in parts of the country including Metro Manila during the onslaught of Typhoon Carina.
08:31.6
House Assistant Minority Leader and Gabriela Women's Party Representative Arlene Brosas wants an explanation on the persistent flooding despite the billions of pesos allocated by the government for flood control projects.
08:44.9
The lawmaker urged both the Senate and the House of Representatives...
08:49.0
...to conduct a comprehensive review of the existing flood control programs under the Department of Public Works and Highways.
08:56.0
Brosas vowed to scrutinize every peso of the budget for flood control projects.
09:01.5
House Committee on Metro Manila Development Chairperson and Manila Second District Representative Rolando Valeriano also called for the panel to convene on July 31st and assess the widespread flooding and extensive damage brought about by Typhoon Carina...
09:19.0
...especially in the National Capital Region.
09:22.0
Valeriano wants the DPWH and the Metro Manila Development Authority to explain why the existing flood control systems were not able to prevent the flooding.
09:31.2
He also urged relevant government agencies to present a plan to prevent flooding from typhoons.
09:38.2
House Speaker Martin Romualdez expressed support for the call saying it is part of the lower chamber's oversight functions to determine whether budget allocation for government projects...
09:48.1
...were used efficiently and demand accountability if there is failure to do so.
09:53.2
Romualdez gave assurances that funding for flood mitigation projects will be part of the proposed 2025 National Budget and that necessary budget adjustments will be implemented depending on lawmakers' assessment.
10:07.4
Typhoon Carina dumped heavy rains in the country's capital and nearby provinces on Wednesday, triggering floods, killing at least 12 people, and displacing over 600 people.
10:48.1
We will restore power back. We will immediately take it back. We are just ensuring that we are safe before we return the electricity service, especially in places where the water level is high.
11:00.3
Hopefully before the end of the day, the majority of these areas, once the water level is low, the electricity service will be able to return.
11:10.9
The Government Service Insurance System has set aside P18.5 billion pesos in emergency loans...
11:18.1
The funds to assist over 860,000 of its members and pensioners in Batangas, Rizal, and the Capital Region
11:27.6
who have been affected by the combined effects of Typhoon Carina and the Southwest Monsoon.
11:34.2
Members with existing loan balances may borrow up to 40,000 pesos
11:38.6
while those without existing loans may apply for up to 20,000 pesos.
11:44.9
Meanwhile, the Philippine Social Insurance Program offers calamity loans
11:51.5
for those affected by the unfavorable weather.
11:55.1
The Social Security System says members can borrow a loan
11:58.5
equivalent to their one-month salary credit or up to a maximum of 20,000 pesos.
12:06.0
To avail, members can visit SSS online platforms
12:09.3
and must have at least 36 monthly contributions,
12:13.2
six of which monthly.
12:14.9
Must be posted within the last 12 months
12:17.6
before the month of filing the application.
12:22.9
The Philippine Trade Department activates a monitoring team
12:26.6
to ensure that the price freeze is being observed
12:29.8
in Metro Manila supermarkets and groceries.
12:33.5
The DGI ordered the price control on Wednesday
12:35.9
to protect consumers from unjust price increases due to Typhoon Carina.
12:40.8
The order covers essential goods including rice, bread,
12:44.9
and fresh vegetables, among others.
12:50.2
Back with corporate stories today.
12:52.4
Aboid these equity ventures with flat earnings in the first half of the year.
12:57.6
Cornet income was at 11.4 billion pesos, up by just 2% from 2023.
13:03.9
In the second quarter, this stood at 6.6 billion from the previous 6.5.
13:09.3
A silver lining though.
13:10.7
It saw its F&B segment contributing 15 times higher
13:14.9
It saw its F&B segment contributing 15 times higher at 2.5 billion.
13:14.9
It saw its F&B segment contributing 2.8 billion pesos
13:16.3
from the 181 million year-on-year.
13:20.0
This was notably after its joint acquisition
13:22.6
with Coca-Cola Euro-Pacific Partners of Coca-Cola Philippines.
13:28.2
Next, to Philinvest Hospitality.
13:30.1
It signed earlier this week a deal to develop a prime property in Baguio City.
13:35.8
FHC previously won the six-year contract
13:38.3
from the Basis Conversation and Development Authority
13:42.0
and the John Hay Management Corporation.
13:44.0
Philinvest is naming the project Hay Diner
13:47.8
in its latest venture into the F&B sector.
13:51.6
It is seen as a valuable addition to Baguio's vibrant restaurant scene.
13:57.5
And finally, PXP Energy trims its losses in the first half.
14:01.3
This was down to 9.5 million pesos against the 13.4 million last year.
14:07.5
This, among others, is on the higher average crude oil price
14:11.3
and higher volume from its Gallup mine operation.
14:14.0
Petroleum revenue is also up 9% to nearly 43 million pesos.
14:21.1
Moving forward, PXP of the MVP Group says
14:23.7
it will assess and study other oil and gas projects in the Philippines.
14:32.2
The Philippine Benchmark Index joins the regional downswing as it returns to trade.
14:37.8
The PSEI closing at 66.70 after shedding over a percent.
14:42.7
Value turnover was...
14:44.0
at nearly 4 billion pesos.
14:48.2
Chloe Bolo of Regina Capital Development Corporation
14:50.9
now joins us to help us assess today's trading and more.
14:55.5
Hi, Stan. Thank you for having me.
14:57.4
It's good to have you here.
14:58.4
Now, that's 1.23% drop in share prices today
15:03.1
with the market probably pricing in Typhoon Karina.
15:06.1
What is it that the market is anxious about
15:08.5
during a destructive typhoon or weather calamity?
15:12.7
Is it impact growth?
15:14.0
What do you think?
15:16.0
Well, inflation is expected to spike,
15:19.4
especially in commodity prices and in the agriculture sector.
15:23.6
Especially since we've seen a reduction in rice import duties
15:27.4
in the past weeks down to 15%.
15:29.8
So, consequently, due to the typhoon,
15:32.8
there might be an increase in that again.
15:35.0
In terms of growth, definitely those areas are going to take a hit.
15:38.6
Alright, and when you talk about inflation,
15:40.3
will that be a significant factor in terms of,
15:44.0
you know, the way we're tracking inflation,
15:45.7
which is on a downtrend,
15:47.4
but we're talking not just about agriculture damage,
15:49.9
but even supply factors with the limited supply,
15:54.7
some businessmen may jack up their prices.
15:57.6
So, how significant do you think is that going to impact the inflation track?
16:04.5
So, the onslaught of Typhoon Karina severely affected the agriculture sector.
16:10.0
It resulted in several counts of losses in rice, corn,
16:14.0
HBCs, and livestocks.
16:15.8
And the typhoon heavily damaged production facilities.
16:19.5
With floodwaters lingering in key areas,
16:22.4
logistic networks could also delay the delivery of goods
16:25.3
and lead to increased input costs.
16:28.5
These factors could lead to supply shortage
16:30.8
and result to a spike in inflation.
16:33.6
Economists may need to tweak their inflation forecast for this month.
16:38.2
However, we are hopeful that the government is doing their job.
16:41.6
In fact, they pledged aid for farmers and farmers,
16:44.0
and plans to implement price controls to soften the inflationary blow.
16:48.9
All right, Chloe, let's go to the markets now.
16:51.2
What are on investors' minds right now when you talk about the index,
16:54.7
which has been hitting its near-term highs,
16:58.5
although today was quite a loss?
17:00.8
But what do people think about when you reach the price levels
17:06.1
that may seem uncomfortable already, like $6,700, $6,800?
17:14.0
because the momentum is really high,
17:16.8
we were expecting a slowdown.
17:18.9
So, since last Monday,
17:21.6
stocks have been trading cautiously sideways
17:23.7
as investors were just beginning to digest
17:26.8
the economic implications of the recent unfavorable nationwide news
17:32.9
and, as I've mentioned earlier, a slowdown in momentum.
17:36.2
The market is currently consolidating,
17:38.9
and it's taking a breather from the intense rally of the recent weeks.
17:45.3
down 82 points to $6,670,
17:49.1
although it is showing early signs of mild bearishness,
17:52.9
trading slightly lower than Monday's levels,
17:55.7
which doesn't necessarily point to a downtrend yet,
17:58.6
but given all factors, we are expecting it.
18:02.0
Also, Chloe, you know, since the sauna when Pogos were declared by President Marquez as illegal,
18:07.3
the property sector really took a hit.
18:09.9
Now, the counter continues to show price drops,
18:12.5
at least this afternoon or earlier,
18:14.0
this afternoon, it was down 1.38%.
18:16.5
This is clearly a sentiment problem against a property counter,
18:21.8
and knowing that Pogo ban can only affect a handful,
18:25.8
in fact, just three property names,
18:28.0
would you still give a buy recommendation for the others?
18:32.9
Despite the jitters around the Pogo ban,
18:36.2
our enthusiasm for the property sector remains undimmed.
18:41.6
We think this as a knee-jerk,
18:45.4
In fact, among the property giants in PSE,
18:48.0
only Megaworld has a 4% exposure to Pogos,
18:51.2
which we think is still pretty minimal.
18:54.4
We're still bullish on property, despite popular opinion.
18:58.9
After all, we see the real estate sales to remain steady,
19:03.8
with a resilient home buyer's appetite.
19:06.5
And not to mention, the rate cut is on the horizon,
19:08.7
which can positively impact property names.
19:11.5
And really, much of today's overcast,
19:14.0
in a lot of global markets,
19:16.0
U.S. stocks, following that lead from the United States,
19:20.3
stocks there fell,
19:21.9
saw a dampening of appetite,
19:23.5
particularly for tech and AI-driven stocks,
19:26.3
which led recent rallies in the past couple of months.
19:29.7
Are you seeing a trend reversal now
19:31.4
for preferences over U.S. tech stocks and AI?
19:36.7
It's a tough call.
19:39.0
Earnings were underwhelming,
19:41.2
given that everyone was betting on the tech space,
19:44.0
but we're hoping it'd be more of an aberration
19:48.0
instead of an actual trend.
19:51.7
Okay, lastly, Chloe,
19:52.9
we're closing the first month of the second half of 2024.
19:56.2
That's next week already.
19:57.5
What are your expectations for market behavior for August,
20:01.5
especially when the BSP rate cuts actually happen?
20:06.4
The index has risen nearly 600 points in a matter of weeks,
20:11.4
but has been consolidating,
20:14.0
around the 660 to 670 area.
20:19.1
Expecting more of the same
20:22.0
with less than a week's worth of trading
20:24.9
to close out for July.
20:26.8
Although for August,
20:28.0
we believe that local and U.S. CPI
20:30.9
will set the price action movement
20:32.5
at the start of the month.
20:34.5
And, you know, seasonally,
20:36.0
August is also a subdued month for the equities market.
20:38.9
Is there any catalyst
20:40.0
that you're expecting at least to supplement a possible rally?
20:44.0
Which could be sparked by the upcoming rate cuts,
20:47.5
if ever they happen?
20:50.2
Well, August is very data-heavy
20:53.0
in terms of quarterly earnings.
20:55.5
GDP and CPI, to mention a few.
20:58.5
In addition to that,
21:00.4
MSCI and PSEI released irregular rebalancing results.
21:05.3
we hope we could offset the traditionally laggard ghost month.
21:10.4
On that note, Chloe Bolo,
21:12.1
Equity Research at Regina,
21:14.0
Capital Development Corporation,
21:15.2
thank you so much for joining us this afternoon.
21:17.0
Hope to see you again soon.
21:20.4
We're stepping aside for a short break.
21:22.8
a search and rescue mission is ongoing
21:24.6
after an oil-carrying vessel capsized in Bataan.
21:28.5
This is the Business Roadshow.
21:44.0
We'll be right back.
22:14.0
We'll be right back.
22:44.0
We'll be right back.
23:14.0
Philippine Coast Guard was able to rescue 16 of the 17 crew of the tanker Terra Nova,
23:38.3
which was carrying 1.4 million liters of oil.
23:41.0
It was en route to Iloilo when the incident happened.
23:44.0
Pondang mga alas juice ng gabi,
23:51.1
daramdaman na nila na malakas yung alon.
23:55.2
Malakas yung alon.
23:56.9
At nag-decide yung kapitan na bumalik.
24:01.3
nahirapan sila sapagkat ang sabi nila ay pasalubong sila dun sa alon.
24:06.0
At ang term ng mga crew ay sumalok sila ng alon
24:10.2
at pinasok yung barko hanggang tuluyan silang nagkapsal.
24:14.0
Authorities are still investigating if the bad weather caused the ship to sink.
24:21.0
The Coast Guard has monitored an oil spill stretching two nautical miles.
24:26.9
Based on our experience from previous oil spill incidents, ang nauuna palaga ay yung working fuel ng barko na lumabas.
24:35.1
So very minimal lang yan kasi kung nag-leak na yung kapangke, baka marami na kaagad yan, hindi lang mga two nautical miles.
24:44.0
And hopefully we would be able to contain the fuel na nandun pa sa mga tanks niya.
24:49.9
So we are racing against time and we will try to do our best para makontain na kaagad at hindi na lumabas yung fuel.
25:00.9
The NIS Marine Environmental Protection personnel have been also mobilized by the PCG to combat the spill.
25:07.7
PCG also dispatched personnel to Nagbotas, Bulacan, and Pampanga to monitor and prepare for an oil spill.
25:14.0
Balilo is warning Manila and its shoreline could be affected if the industrial fuel carried by the tanker spreads.
25:20.3
The waters where the tanker sank are within Manila Bay.
25:24.0
PCG has coordinated with PDRMO and Governor Bataan for preparations of a possible oil spill.
25:29.9
The company who owns the tanker has hired a salver for salvage operations, the PCG said.
25:35.4
Meanwhile, President Ferdinand Marcos Jr. on Thursday ordered the Department of Environmental and Natural Resources,
25:41.0
the Department of Science and Technology,
25:43.1
and the PCG to assess the environmental impact of the spill.
25:47.1
The Philippine leader made the directive during a situation briefing held at the Presidential Security Command compound
25:52.7
shortly after the motor tanker capsized.
25:55.3
The President, however, noted that strong winds and high waves are making it hard for the government to contain the oil spill.
26:01.6
Transportation Secretary Jaime Bautista meanwhile said that they have already coordinated with the private sector
26:06.8
to deploy their resources as soon as possible.
26:10.6
Jeff Caparaz with that story.
26:13.1
After pandemic disruptions, investment management company Collier sees brighter days ahead for the local property market
26:22.2
thanks to pro-business and pro-investment reforms from the government.
26:26.5
But here to lay down more suggestions for the property sector, we have with us Joey Bondok,
26:31.3
Research Director of Collier's Philippines.
26:34.3
Joey, good to have you on the Business Roadshow.
26:36.9
Hi, good afternoon, Denise. Nice to see you again.
26:39.0
Now, I know you had quite a long wish list.
26:43.1
For, of course, President Ferdinand Marcos Sona.
26:46.5
But now, a couple of days after that, you know, how did the actual Sona address your expectations and concerns for the property sector?
26:56.9
Well, we're very optimistic, Denise, with what we heard during the President Marcos' Sona.
27:02.7
So, he highlighted, for example, the Build Better More initiative of his administration.
27:07.9
And, you know, at Collier's, we always say that infrastructure implementation,
27:13.1
it's very crucial in stoking demand interest in the property market.
27:18.3
He mentioned a lot of infrastructure projects, airports, bridges, the renaissance, rehabilitation of the railway network.
27:27.4
And that will be instrumental in reviving the Philippine property market post-pandemic.
27:33.6
And we believe that this infrastructure project and their direction will guide the developers,
27:40.7
especially as they try to develop.
27:43.1
More projects outside of Metro Manila.
27:45.6
I mean, it's good that you see it quite optimistically.
27:48.6
But, you know, with President Ferdinand Marcos, I mean, his last statement during his Sona address really was to end all POGOs.
27:56.4
And how is that affecting, you know, the sentiment of the property sector since a day after that?
28:03.0
You saw a lot of their stocks go down.
28:04.9
I mean, of course, not significantly, but how could we, how should we interpret that?
28:12.0
Well, definitely.
28:13.1
We are hearing a lot of news about this POGO exodus.
28:17.3
But we have to note that even before the order of President Marcos to totally ban POGOs in Metro Manila across the Philippines,
28:26.8
we are already seeing rising office vacancies, for example, in the Capital Region.
28:32.2
So that started to increase in 2020.
28:34.2
I would say that in 2020 and 2021, that was a double whammy for the property market, especially for the office sector,
28:42.2
because you have...
28:43.0
You have the detrimental impact of the COVID-19 pandemic and the POGO exodus.
28:48.9
That was a period when the offshore gaming employees from China started to leave the Philippines.
28:54.5
And that really raised office vacancy.
28:56.7
But I would like to highlight that the POGO sector in 2019, the office occupied by these companies reached about 1.3 million square meters of total office space.
29:10.8
In the Capital Region, that represents...
29:13.0
That represents about a 10, 10% of total leasable office space in Metro Manila.
29:17.5
That is now down to only about 3.5%.
29:21.7
And Chloe mentioned earlier that developers really have a marginal exposure when it comes to office leases
29:31.6
occupied by the offshore gaming companies from China, ranging from about 3 to 5%.
29:38.1
So again, we believe that overall, the POGO sector is no longer...
29:42.8
A major player in terms of office space take-up.
29:46.0
In fact, if you look at the deals that we have recorded so far for 2024, these POGOs only occupied about 16% of total office space deals right now.
29:57.0
And you have major traditional companies, BPOs, IT, BPM firms that occupied about 84% of total deals that were recorded in the Capital Region.
30:08.1
So that is a very optimistic, a very positive forecast for the office sector.
30:12.8
So far, I would say that the office deals we are seeing from the POGO sector have been sporadic at best.
30:21.0
And because of this optimism, I mean, we really want to understand where this is coming from.
30:26.0
Collier has also reported that the price correction in the residential market due to the total ban will create a new demand for developers.
30:36.0
Joey, could you explain why so?
30:38.2
Yes, we're seeing that it is because the demand is not just POGO.
30:42.8
We're seeing the shift to suburbia, meaning developers have really been launching more projects outside of the Capital Region.
30:52.3
You're seeing the likes of Megaworld, Philinvest, Rockwell that are aggressively launching horizontal, vertical projects outside of Metro Mila,
31:02.0
Pampanga, Bulacan, Cebu, Davao, Iloilo, Bacolod.
31:07.2
And these developers are aggressively launching master plan, integrated.
31:12.8
So we're now seeing the popularity, for example, of golf communities, horizontal projects, house and lot.
31:19.8
Lot only recorded growth in the prices of about 5 to 15 percent annually from 2016 to 2023.
31:29.8
And given that OFWs continue to remit more money to developing status, again, another major driver of demand, especially for horizontal units.
31:39.7
I mean, we're seeing a lot of news about POGO.
31:42.8
There's a lot of tension, a lot of concern.
31:45.6
But we are now seeing the major demand drivers, economic growth expansion.
31:52.2
You have a young millennial workforce, a demographic sweet spot.
31:56.4
So I hope that when the dust settles, we see the major factors that really help drive the property sector in the Philippines.
32:05.6
And, you know, overall, let's not go loco over POGO.
32:09.8
I mean, you just answered my question.
32:11.2
I was about to ask.
32:12.8
Regions where you're seeing the most optimism and what types of investments or development properties, you know, could maximize because of this.
32:21.5
But in your wish list, again, it was further intensified, the Build Better program.
32:25.5
Second is addressing business regulation bottlenecks.
32:28.9
So let's proceed with that.
32:30.2
I mean, how are they currently hindering the property sector?
32:34.2
And, you know, how should the government address these things to improve ease of doing business as what they have been, you know, repeating?
32:45.1
We really want to make sure that we streamline the process of doing business, registering businesses, the payment of taxes in the Philippines.
32:54.3
If other countries can register businesses in one, two, three days, three, five signatures, the Philippines should be able to do so.
33:02.9
Because we believe that this is very attractive proposition, especially for foreign companies that plan to invest here in the Philippines.
33:11.6
When you look at global...
33:12.8
Well, competitiveness surveys.
33:14.7
The Philippines is what?
33:15.8
Part of bottom 25%, part of bottom a third.
33:20.6
We want to make sure that we're part of top one third, top 25%, so that we attract a lot of foreign direct investments.
33:28.6
Philippines is already satisfied with $9 billion, $10 billion in FDIs.
33:34.0
When our neighbors in Southeast Asia, Vietnam, Indonesia, Singapore, Malaysia are attracting double, triple our annual FDIs.
33:42.8
So we believe that overall, if we further improve our manufacturing competitiveness, upskill our workforce in the Philippines,
33:52.2
definitely we will be able to attract more outsourcing and manufacturing investments so that we achieve a more inclusive economic growth.
34:00.3
Speaking of upskilling, you brought that up yourself.
34:03.0
I mean, what role should the private sector play in complementing government efforts right now?
34:09.4
You know, a lot have been saying that it is quite laggy.
34:12.8
There is still that there's a lack of that sense of urgency in comparison to how they have been pushing for this certain, I guess, objective.
34:24.4
So I think this is where the private partners come in.
34:27.1
So what should they do in efforts to upskill workers and how can collaboration be fostered?
34:33.6
How could this be easier or, you know, incentivize private companies?
34:38.3
Should the government do that?
34:39.7
Well, definitely.
34:41.2
We encourage that.
34:42.1
Because if you look at the outsourcing sector, for example, we need to make sure that we retain our advantage in terms of speaking English, writing in English,
34:52.9
because we want to make sure that we retain this BPO outsourcing competitiveness that we have here in the Philippines.
35:02.1
You want to corner a greater fraction of the global outsourcing price, especially the higher value knowledge process outsourcing sector,
35:11.3
which is a bigger and more lucrative segment of the outsourcing sector.
35:17.6
We are currently behind India.
35:19.5
But you want to make sure that we upskill, meaning our employees are not just call center, back office employees,
35:28.2
but are also able to handle health information management, medical coding, software engineering, legal transcription,
35:35.9
because you want to upskill them so that we won't be challenged.
35:41.3
So, I think this is a really important point.
35:42.6
And I think it's also important to make sure that we have a better understanding of the influence of the artificial intelligence,
35:44.3
which, according to a lot of industry observers, will really make outsourcing obsolete in the near future.
35:52.5
But the only way we can do that is if we further upskill our BPO employees.
35:58.8
And we can do that if we really fill and bridge that gap, the mismatch between what the outsourcing sector requires
36:07.3
and the quality of graduates that our universities and colleges have.
36:11.3
And that's something that we can continue to do every year.
36:13.0
Now, your fourth bullet point in your wish list, of course, is the greater push for tourism.
36:19.2
With that, what types of property developments do you think or are you anticipating seeing more demand for?
36:28.5
I mean, in the business sector, you're seeing the boom of MSMEs.
36:32.4
Are you seeing more local boutique hotels, Airbnbs, being more patronized by consumers?
36:40.6
Or, you know, you still got to love that whole big luxury resort feel here in the country?
36:47.4
Well, looking at President Martos' last zone, we're happy that he mentioned tourism and experiential tourism to be specific.
36:57.1
Because tourism, of course, you want to make sure that it becomes a major plan of the government's recovery post-pandemic.
37:03.7
We're currently attracting, what, 5.45 million, and then this year, 7.7 million.
37:11.2
That's the forecast of the Department of Tourism.
37:13.3
That is below the 2019 peak arrivals of about 8.2 million here in the Philippines.
37:19.1
Again, we are paling in comparison when it comes to Southeast Asian foreign arrivals, Thailand, Indonesia, Vietnam.
37:29.3
They are attracting more, double, triple our foreign arrivals.
37:33.2
And hopefully, when we attract more, given that we are building and modernizing our airports,
37:40.3
this will entice investors, foreign players, to look at investing in the Philippines, opening more foreign-branded hotels.
37:49.2
Sofitel in Manila is closing, but there will be a new Sofitel in Ply, and Cebu Citizens, Ascot, other brands, Marriott, are aggressively expanding.
37:58.1
Tagayang Dioro, Davao, Bacolod, Iloilo, these are major tourist destinations.
38:02.9
We want to attract more of these hotel players because currently, the foreign hotel brand penetration in the Philippines is low compared to our ASEAN neighbors.
38:12.6
So you want to make sure that tourism competitiveness is at par with our Asian, Southeast Asian neighbors so that we attract more foreign tourists and attract more tourism-related businesses and investments.
38:24.8
For the next point in your wish list, it took me by surprise, and this is what I would want from you, of course, an explanation.
38:30.3
But why do you think?
38:32.9
Why do you think this is important for the boom of the property sector?
38:37.7
Continued support for migrant workers, how does that, I mean, such as OFWs, influence the property market, particularly in terms of residential real estate demand?
38:50.8
Oh, OFW market plays a substantial role in fueling the demand for the property market.
38:57.2
Because OFWs, as President Marcos mentioned in his last State of the Nation address,
39:02.9
they sent in $37 billion in remittances last year.
39:07.1
That's a record high for the Philippines in terms of cash remittances, $33, $34 billion.
39:13.0
And the projection is that they will increase by about 3% annually.
39:17.3
That's a forecast of the Banco Central na Pilipinas.
39:20.2
I would say that the OFW segment is a major driver for the property market because the sweet spot for the OFW segment is the 2.5 to 7 million pesos per unit.
39:32.0
These are horizontal.
39:32.9
House and lot and lot only projects that we're seeing.
39:36.8
And OFWs continue to purchase these residential projects across the Philippines.
39:42.3
After all, every Filipino family's aspiration is to own a home, a residential unit.
39:48.8
So that will continue to propel the residential requirements across the Philippines coming from this OFW segment,
39:56.3
which remit about $37 billion in remittances, about a tenth of our country's GDP.
40:02.9
Call your Philippines Research Director, Joey Bondo.
40:06.1
Joey, always good talking to you. Hope to talk to you soon.
40:08.3
Thank you, thanks.
40:12.1
U.S. Fortune 500 companies, excluding Microsoft, seen facing over $5 billion in financial losses from the recent global tech outage.
40:22.0
That's according to Insure Parametric, citing the scale of the disruption.
40:26.9
It also predicts financial losses globally could total around $15 billion.
40:32.8
In CrowdStrike's quality control system, crashed computers powered by Microsoft,
40:38.8
disrupting internet services and affecting many industries, including airlines, banking, and healthcare.
40:47.2
Microsoft said about 8.5 million Windows devices had been affected by the outage.
40:56.2
With the Philippine e-commerce market estimated to reach $24 billion by 2025,
41:01.8
more financial losses.
41:02.8
The Philippines are now vulnerable to scams and other fraudulent activities.
41:08.0
Tom Tavar, CEO of cybersecurity firm Appdome, says,
41:11.8
the Philippines is among the world's mobile-first countries,
41:15.9
with Filipinos using up to 18 to 20 mobile applications a day.
41:21.9
Tavar says around 40% of Filipinos faced some form of scam in the last year.
41:26.8
Tavar says more consumers now expect app developers to help keep their online apps,
41:32.8
online experience, safe.
41:37.3
On the early days of the mobile explosion,
41:40.3
the responsibility was on the user, sort of buyer beware, to protect themselves.
41:44.3
These days, a lot like what you're talking about,
41:47.3
the consumer is really looking to the brand, the provider of the application,
41:52.3
to deliver the protections that are needed to keep their experience safe.
41:57.3
So about 98% of consumers globally say it really is the brand's responsibility,
42:02.8
not only to protect their privacy and their data and their login,
42:06.4
but also protect them from the more advanced threats like malware, fraud, and so forth.
42:14.3
The Philippine government's debt payments went down at the end of the first half of the year.
42:19.2
The Treasury Bureau reports the debt service bill in June amounted to 66 billion pesos.
42:26.1
This figure is 25% lower year-on-year and 4% lower month-on-month.
42:31.8
The year-to-date?
42:32.8
Debt service bill, however, stands at 1.28 trillion pesos,
42:37.8
which is 41% higher than the 900 billion pesos recorded from January to June last year.
42:46.8
The Philippine government's budget deficit falls in June
42:49.8
as revenue collection grew faster than government expenditures.
42:53.8
Data from the Treasury Bureau show government posted a 209.1 billion pesos shortfall last month.
43:01.8
This is lower than the 225 billion pesos recorded a year ago.
43:06.8
Revenue collection, meanwhile, climbed by nearly 11% year-on-year to 296 billion pesos.
43:14.5
Expenditures also increased by more than 2%.
43:17.0
For the first half of 2024, the national government's budget gap stood at around 2.15 trillion pesos.
43:25.9
That's 15.6% higher year-on-year.
43:31.8
In today's numbers that matter, something on the world's richest 1%.
43:37.7
According to a study by Oxfam, these extremely wealthy individuals
43:42.3
increased their fortunes by a total of $41 trillion in the past decade.
43:48.4
The group says this comes as taxes on the rich have plummeted to historic lows.
43:53.8
It warns of obscene levels of inequality with the rest of the world
43:57.9
who are left to scramble for crumbs.
44:00.3
The study was released ahead of the G20 summit in Brazil
44:04.2
where taxing the super-rich tops the agenda.
44:08.2
At the summit in Rio de Janeiro, finance ministers are expected to make progress
44:12.7
on ways to raise levies on the ultra-wealthy
44:16.2
and prevent billionaires from evading tax systems.
44:21.7
We're going on another quick break, but stay tuned.
44:24.5
When we come back, the Pac-Man takes a huge bite out of ESPN's top Asian athletes.
45:00.3
The 57th ASEAN Foreign Ministers Meeting kicked off in Laos Thursday.
45:04.8
The meeting attended by diplomats from Southeast Asian nations
45:07.6
set to discuss so far fruitless efforts to end a crippling conflict
45:12.4
that has morphed into a civil war in military-run Myanmar.
45:17.4
It will be followed by two more summits in Laos on Saturday
45:20.6
which are aimed at addressing key global issues
45:23.6
and will be attended by officials from the U.S., European Union, Japan, China, Russia, and more.
45:30.3
Israeli Prime Minister Benjamin Netanyahu outlines his plan for a post-war Gaza
45:35.7
before American lawmakers.
45:37.6
In a speech to the U.S. Congress, Netanyahu sought to shore up support for Israel,
45:42.6
especially weapons supplies, in the face of growing international criticism
45:46.4
of the nine-month offensive.
45:49.1
He says Israel is actively engaged in efforts to secure the release of hostages.
45:54.4
Netanyahu also shared his vision of who should run Gaza after the war ends.
46:00.3
The day after we defeat Hamas, a new Gaza can emerge.
46:07.6
My vision for that day is of a demilitarized and de-radicalized Gaza.
46:14.2
Israel does not seek to resettle Gaza, but for the foreseeable future,
46:18.1
we must retain overriding security control there to prevent the resurgence of terror
46:23.9
to ensure that Gaza never again poses a threat to Israel.
46:30.3
Gaza should have a civilian administration run by Palestinians
46:41.8
who do not seek to destroy Israel.
46:44.6
That's not too much to ask.
46:47.5
It's a fundamental thing.
46:53.5
Dozens of Democratic lawmakers skipped his speech in protest of the thousands of civilian deaths
46:59.1
and the humanitarian crisis.
47:00.3
Netanyahu blames reports of hunger in Gaza and Hamas,
47:06.0
insisting Israel was protecting civilians in the enclave.
47:12.0
Before we go, Philippine boxing legend Manny Pacquiao leads ESPN's list of
47:17.4
top 25 Asian athletes of the 21st century.
47:21.6
The 8th Division world boxing champ bested the likes of Chinese basketball icon Yao Ming
47:27.5
and Japanese baseball superstar,
47:30.3
Ichiro Suzuki, who finished 2nd and 3rd, respectively.
47:35.0
Completing the top 5 are Korean football star Song Hong-min
47:39.0
and Japanese-American Naomi Osaka.
47:42.8
Also making the list, the Philippines' first-ever Olympic gold medal winner,
47:47.1
weightlifter, Heidelin Diaz,
47:49.4
and the PBA's seven-time PBA MVP, Junmar Fajardo.
47:58.4
And those are the latest.
48:00.3
I'm Denise Insay.
48:01.8
You can watch highlights, recaps, and exclusive content of our shows online.
48:05.8
And I'm Stanley Palisada.
48:07.3
Subscribe today and see YouTube channel.
48:09.0
Like us on Facebook, follow us on Twitter, and join us again tomorrow for another edition
48:13.7
of the Business Roadshow.
48:20.5
Mobility will be key to recovery because
