BusinessMirror March 2, 2015

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three-time rotary club of manila journalism awardee 2006, 2010, 2012

U.N. Media Award 2008

BusinessMirror A broader look at today’s business

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TfridayNovember 2014Vol. Vol.1010No. No.144 40 Monday, March18, 2, 2015

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P25.00 nationwide | 7 sections 40 pages | 7 days a week

MVP: 2 common stations inefficient

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By VG Cabuag

PANGILINAN said it will make more sense for the government to pursue a single station that would link the competing shopping malls.

usinessman Manuel V. Pangilinan said building two common stations linking the elevated railways in Metro Manila will prove to be an inefficient exercise.

Pangilinan, chairman of Metro Pacific Investments Corp., told reporters that having two stations just a few meters apart to linking the Metro Rail Transit (MRT) Line 3 and the Light Rail Transit (LRT) Line 1, and possibly even the MRT 7, will defeat the purpose of a common station. He said it will make more sense for the government to pursue a single station that would link the compet-

ing shopping malls. “They can have one exit to TriNoma, one exit to SM. So it’s settled,” Pangilinan said, citing the design of Hong Kong’s MTR Corp., among the most successful railway operators in the world. He added that the government can ask the two developers to shoulder the cost of the common station, since both would benefit from the foot traffic coming from the facility.

The MRT 3 and the LRT 1 serve some 900,000 commuters daily. That number is expected to increase once the MRT 7, which has yet to begin construction, starts its operations some two or three years from now. The MRT 7 will be operated by San Miguel Corp. No formal proposal has been made by the government, but earlier talks involved creating two Continued on A2

ART IMMERSION Visitors pose beside

artworks inside the Art in Island Museum in Cubao, Quezon City. The sprawling twostory interactive art museum holds more than 200 paintings, including reproduction of works of masters, animals, Egyptian ruins and others, most of them rendered to create an optical illusion. AP/Aaron Favila

CHINA FACTORY GAUGE More British retail brands SIGNALS CONTRACTION set to enter PHL this year

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Chinese factory gauge signaled contraction again in February, a day after the central bank’s decision to step up support for the economy with its second cut to benchmark interest rates in three months. The government’s manufacturing Purchasing Managers’ Index (PMI) was 49.9 last month, from 49.8 in January, according to the statistics bureau and the China Federation of Logistics and Purchasing in Beijing. Numbers below 50 signal contraction. An interest-rate reduction announced late on Saturday comes days before an annual gathering of China’s lawmakers, who will approve the budget and announce a 2015 growth goal that most economists expect will be lowered to about 7 percent. The move to join global counterparts with more easing reflects

deepening concern over an economy squeezed by a property slump, tighter controls over local government debt and capital outflows. “With the property markets deflating and the economy in desperate need of interest-rate relief because of the high stock of debt, the PBOC [People’s Bank of China] has been forced to take the recent actions,” said Stephen Jen, cofounder of SLJ Macro Partners Llp. in London and a former International Monetary Fund economist. “China continues to decelerate.” Nonmanufacturing PMI, a gauge for services and construction, rose to 53.9 in February, from January’s 53.7. China’s economic data in the first two months of the year are often distorted by the Lunar New Year holidays, which stall manufacturing and affect spending patterns. See “China,” A16

PESO exchange rates n US 44.0870

By Catherine N. Pillas

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irms from the United Kingdom are committed to continue investing in the Philippines, according to the British ambassador to the Philippines, who also disclosed plans of foreign retail brands to enter the country this year. Speaking to members of the media during the GREAT British Festival at the Bonifacio High Street on Friday, British envoy Asif Ahmad expressed optimism that two-way trade between the Philippines and the UK would remain robust. “We’re seeing more brands and franchises in the Philippines. Two [from the UK] would enter the country—one in homeware and another in food and beverage,” Ahmad said. While he declined to identify the supermarket brand, he said that the British firm will partner with a local company to distribute the

AHMAD: “We’re seeing more brands and franchises in the Philippines. Two [from the UK] would enter the country— one in homeware and another in food and beverage.”

products. Ahmad said the entry of one of two retail brands would be announced in May. In the energy sector, Ahmad said oil giant Shell is willing to invest in a liquefied natural-gas (LNG) terminal, but is in the process of determining reception of the market to LNG as a power source. “What the country desperately needs, and this is the opportunity now, is gas. It’s a good time for the Philippines to go into the market, as

the prices have gone soft. The country will lose the opportunity when the market tightens up again because you have countries like [South] Korea who are massive importers and China,” he said. LNG is a natural gas that has been converted into liquid for easier storage and transportation. Upon reaching its destination, LNG is gassified, so it can be distributed through pipelines as natural gas. Shell is now talking to the government and power generators to see if conditions are right in the Philippines to pursue the LNG import terminal as such an undertaking will require a long-term investment. The interest of Shell to build an LNG facility near its refinery in Tabangao, Batangas, has been floated as early as 2012, following a memorandum of agreement it signed with the Department of Energy (DOE). See “Retail brands,” A2

SM Prime to expand at pace set by market

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roperty giant SM Prime Holdings Inc. said it will open up to five new shopping malls this year, while expanding its convenience-store venture under Alfamart brand, but at a pace determined by the market. Hans T. Sy, company president, said the new malls would include its SM Megacenter branch in Cabanatuan City in Nueva Ecija, the mall it had acquired sometime late last year. Sy said the expansion activities also involve buying existing malls, such as the Megacenter the Mall, but quickly rebrand them. The said mall, a five-story commercial building, was previously owned and operated by CHAS Realty and Development Corp., and started operating in 1998. See “SM Prime,” A16

n japan 0.3691 n UK 67.9425 n HK 5.6840 n CHINA 7.0439 n singapore 32.4575 n australia 34.7881 n EU 49.3686 n SAUDI arabia 11.7559 Source: BSP (27 February 2015)


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