Can Erap, Filinvest, Ayala, SM & Megaworld economically revive old Manila?

What is the city but the people?  —William Shakespeare

After the stunning political comeback of former President Joseph “Erap” Estrada as newly elected mayor of Manila, with Harvard-trained former actor Isko Moreno as vice-mayor, the whole nation and many businessmen are waiting for what bold reforms they will implement to cleanse and economically revive the Philippines’ historic capital city.

I broke the story on Erap’s plan to run for mayor here in The Philippine STAR on July 17, 2011, which he didn’t deny in media interviews.

Three days after the recent May 13 election, a huge fire gutted the Divisoria Mall on Tabora and Comercio Streets in downtown Manila. In September last year, a big two-day fire also hit the nearby Tutuban Mall.

Sources told me some good news: the country’s most visionary business groups are reportedly now planning to help redevelop Manila’s centuries-old Chinatown (reputedly the world’s oldest) with the most beautiful, modern mixed-use projects in the commercial districts of Binondo and Divisoria.

Mayor Erap should help support these and other investors with decisive political will and strategic vision to impose order in the streets, cleanliness and traffic efficiency, resettling of any urban slums, improving peace, and delivering better social services.

Filinvest, Ayala, SM & Megaworld to revive Chinatown?

Sources told this writer that the low-key but successful Filinvest Group of the Gotianun family is planning to develop a prime three-hectare property along Juan Luna Street and near the phenomenally successful 168 shopping mall led by former textile trader Basilio Tan.

Founded by visionary self-made couple Andrew and Mercedes Gotianun, and led by their daughter Josephine Gotianun-Yap, the Filinvest Group is the developer of the booming Filinvest City in Alabang, Muntinlupa City. They also control the fast-growing East West Bank.

Also near this Filinvest venture is reportedly the Ayala Group’s proposed project along downtown Manila’s Jose Abad Santos Avenue and near the 90-year-old top Chinese-language school Philippine Cultural College (formerly Philippine Cultural High School). The reported new Ayala project is estimated to be two hectares and said to be the site of a government-run public school.  If this project will be developed, it will also be the Zobel Ayala clan’s comeback to their original roots in downtown Manila, since their original headquarters was in Calle Echague (now Carlos Palanca Sr. Street) of Quiapo district and their Bank of the Philippine Islands (BPI) started in Binondo, Manila.

Sources also told me that the SM Group of the Henry Sy family is reportedly interested in going back to its roots in downtown Manila and possibly redeveloping the Tutuban mall in nearby Divisoria, Manila.

Another group well-positioned to help in old Manila’s urban redevelopment is Megaworld of self-made billionaire Andrew Tan, with their already ongoing Lucky Chinatown Mall run by his hardworking son, first vice president and head of Megaworld Commercial Division Kevin Tan. Megaworld also has new condominium projects there in downtown Manila.

By the way, congratulations on the forthcoming May 25 tieng-hun or engagement celebration of Kevin Tan and his fiancée Michelle See.

Sustain Tourism & Realty boom, encourage more SME entprepreneurs

I recently asked Landco president and CEO Alfred Xerez-Burgos III, whose family is developer of the Punta Fuego leisure communities, how long will the ongoing Philippine real estate boom last? The young businessman replied: “I think I can speak for the next three years on the realty boom continuing. But in fairness, even during the time of then President Gloria Macapagal Arroyo starting in 2001, Philippine real estate and our economy sustained steady growth.”

Xerez-Burgos is a great-great-great-grandnephew of the famous martyred Father Jose Burgos of the historic Gomburza priests victimized by the Spanish colonial regime; his great-great-great-grandmother was the sister of Father Burgos.

Landco, 19 percent owned by Metro Pacific Group led by Manny V. Pangilinan and the rest owned by the Xerez-Burgos family, is bullish about Philippine tourism. Landco is developing the Playa Azalea in Samal Island, Davao, with the land-owning billionaire Floirendo family as joint venture partner, also Playa Laiya in San Juan, Batangas, with landowners the ALC Group and Norwegian investors as joint venture partners, and Playa Calatagan with the land-owning Palacio family as a joint venture partner.

Suggestions to boost the rise of Philippine tourism? Alfred Xerez-Burgos III says, “We need better infrastructures and improved power supply at affordable rates.”

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Eric Alberto, executive vice president and head of Enterprise, International and Carrier Business of PLDT, recently told the STAR that they have partnered with Samsung Electronics Philippines Corp., led by president Chung Lyong Lee, “to deliver innovative business solutions for the Philippines’ expanding small-and-medium enterprises (SME) market.”

How big is the SME segment, which for many years government and even the major banks seemed to have neglected in terms of more incentives and genuine support? Eric Alberto said: “The SME market is considered as the biggest business segment in the Philippine economy today, comprising 99.6 percent of all registered firms and they employ 70 percent of the country’s labor force.” Wow!

Banks known to espouse the needs and focus on the niche of SME entrepreneurs are Planters Development Bank and the now defunct Asiatrust Bank. Who else?

The SME entrepreneurs who own Caltex gas station in Malhacan, Meycauayan Exit, Bulacan wrote me to thank the office of Energy Secretary Jericho Petilla for the efficiency of their Department of Energy (DOE) bureaucracy.

I urge government (especially local officials and the Bureau of Internal Revenue or BIR) to please extend more support to SMEs.

Who among our legislators will truly champion more reforms to support and encourage SME entrepreneurs to invest and create more new jobs nationwide?

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