Economic Implications

1. Firms
2. Consumers
3. Government

PH needs long-term energy plan

By MST Business | Apr. 06, 2015 at 10:30pm
As news of higher power rates this summer puts a spotlight on the countrys long-standing energy woes, a think tank
cautioned the government against applying what it describes as merely band-aid solutions.
A paper by the Stratbase ADR Institute on Strategic and International Studies said while the interruptible load
program could potentially avert the much-feared rotating brownouts in Luzon, the bigger picture required a more
long-term energy security plan.
Augmenting the supply is the only long-term and viable solution to these persistent woes, a direction that requires
both enabling policy and political will, the paper said. While Congress and the executive scramble to find band-aid
solutions to avoid this looming power crisis, it does little to even begin solving the countrys power woes beyond
2015.
The government needs to be serious in implementing a more strategic solution to this problem, which has plagued
the economy for more than a decade now, Stratbase founder-managing director Victor Andres Manhit said. No
economy in the world has achieved true and lasting development without a secure and competitive energy sector.
The price of energy in the country, one of the highest in the region, has been cited as a barrier to attracting more
foreign investments, seen as key to job creation and, in turn, inclusive growth and poverty reduction.
According to the paper, entitled Beyond Band-Aid Solutions and Emergency Powers: The Need for a Long-Term
Energy Security Plan, one path to energy security is by attracting more investments in the power sector, which will
only take place if such investments make economic sense.
As it is, the lack of power players currently defeats the objectives of the Wholesale Electricity Spot Market, the paper
said.
Increasing the supply of dependable power and therefore the competition in the generation side of the industry will
also lower prices in the long term. The best way to do this is to attract more investments into generation.
Manhit added the state of the countrys power plants and the frequent shutdowns reflected the urgent need to revisit
the technology used in the plants and, if possible, facilitate the construction of plants that utilize updated
technologies that are more reliable and environment friendly.

Economic Implications
1. Firms
2. Consumers
3. Government

Ayala invests in Malaysia

By Jenniffer B. Austria | Apr. 06, 2015 at 11:00pm

Ayala Land Inc., one of the largest property companies in the Philippines, acquired a 9.16-percent interest in GW
Plastics Holdings Bhd. of Malaysia through a private placement amounting to $43 million (P1.9 billion).
The stake in the Malaysian company, to be renamed MCT Bhd., marked Ayala Lands first significant investment in
Southeast Asia.
Ayala Land president and chief executive Bernard Vincent Dy said in an interview after the annual stockholders
meeting the company was keen on expanding within Southeast Asia, one of the fastest growing economies in the
world.
Asean is the fastest growing region and we feel that there are also other opportunities in the region that we could
possibly participate in. One of those countries that is experiencing fairly food growth rates not only this year but also
in the previous two to three decades is Malaysia, Dy said.
We feel Malaysia is a market that shows a lot of opportunities for us to participate in, he said. Ayala Land will have
one board seat in MCT.
Established in 1999 as a construction company, MCT is a property development company specializing in mixed-use
projects that include retail, office, hotel and mid- to affordable residential units.
MCT, listed under the main market of Bursa Malaysia, has several ongoing projects in OneCitySubang Jaya and
Cyberjaya, as well as a land bank in Dengkil, 1.5 kilometers away south of Cyberjaya, all located in the Klang Valley
in Malaysia.
By teaming up with a company such as MCT Bhd., Ayala Land will be expanding its footprint in Southeast Asia in
line with diversification goals.
The investment will allow Ayala Land to enter the Malaysian market with an experienced team, benefit from
synergies of the partnership and further add value to MCT over the long term to enable it to become a key player in
the Malaysian real estate market, the company said.
Aside from Malaysia, Ayala Land is also looking at investment opportunities in Vietnam, Indonesia and Myanmar.

Meanwhile, Ayala Land chief finance officer Jaime Ysmael said the company was raising P7 billion from the
issuance of seven-year retail bonds by the end of the month.
The property firm hired BPI Capital Corp., PNB Capital, China Bank and Hongkong Shanghai Banking Corp. as
underwriters for the offering.
Ayala Land plans to use proceeds from the fund raising activity to partially finance the companys P100-billion
programmed capital spending this year.

Economic Implications
1. Firms
2. Consumers
3. Government

Megaworld hikes 5-year capex to P285.8 B

By Richmond S. Mercurio (The Philippine Star) | Updated April 7, 2015 - 12:00am
MANILA, Philippines - Megaworld Corp., the flagship property unit of tycoon Andrew L. Tan, has hiked its five-year
spending program by about a quarter to embark on more township projects nationwide.
Megaworld said it is beefing up its capital expenditure (capex) to P285.8 billion until 2019 from the previously announced
P230- billion budget.
We have adjusted our capital spending to pave the way for the expansion of offerings in our existing townships and for
the new additional township projects that we recently announced, said Francisco Canuto, Megaworld senior vice
president and corporate information officer.
For this year alone, Megaworld said it is earmarking P65 billion to build more residential and hotel projects, office buildings
as well as malls and commercial centers inside its integrated urban townships.
The property giant is allocating 74 percent of its capex this year for township development while the remaining 26 percent
is being allotted for land acquisition and property investments.
The Megaworld Group, which includes subsidiaries Suntrust Properties Inc., Empire East Land Holdings Inc. and GlobalEstate Resorts Inc., is set to launch 22 residential projects in Metro Manila, Laguna, Batangas, Boracay, Iloilo and
Bacolod this year.
The group also intends to launch three hotel towers in Boracay Newcoast, 10 office towers in McKinley West, McKinley
Hill, Eastwood City, Woodside City, Davao Park District, and Southwoods City; and three malls and commercial centers
across its townships around the country.
At the start of the year, Megaworld announced it is aggressively expanding its township footprint across the country as
well, with five to be launched this year.

Certainly, we have sufficient landbank and landholdings that will sustain our plans to further expand and grow our
townships all over the Philippines. While we continue to create and expand our mixed-use communities in Metro Manila,
we will also expand our presence in the provinces especially in major growth centers, Canuto said.
The company ended 2014 with 15 township developments across the country.
The Megaworld Group also completed 16 residential projects and five BPO office towers with retail components last year.
Megaworlds profits last year more than doubled to P21.6 billion from P9.03 billion the previous year, peaking at a new
high behind robust real estate sales and rental income.