SCUTTLEBUTT

RSA’s Bridge to Paradise

A proposed massive bridge to be built by San Miguel Corp. (SMC), spanning the pristine island of Boracay and Malay, Aklan, has divided residents of the tourist paradise.

According to the conglomerate, the 1.2-kilometer bridge would decongest the island and spread development to other parts of Aklan. Tourists, for instance, could book hotels on the other end of the bridge instead of being cramped on the island.

“If I can decongest Boracay and move people to Caticlan, then Boracay will become more beautiful. Tourists can stay in Caticlan, instead of Boracay,” SMC Chairman and CEO Ramon S. Ang said.

Caticlan is on the northern tip of Malay and is the jump-off point to Boracay via boat.

An e-trike driver said he is in favor of a bridge, as it would help residents during medical emergencies.

“Medical facilities are sorely lacking on the island, and it is hard to cross to Aklan. It is particularly hard when an emergency strikes during the wee hours. So we need a bridge. During typhoons, it is hard to go to the Malay town proper because of the strong waves,” the driver said.

On the other side of the coin, the construction of the Boracay Bridge, at an estimated cost of P8.01 billion (which was the figure quoted by the Public-Private Partnership Center), could result in massive job losses, particularly for those working at the jetty port.

Caticlan Boracay Transport Multi-Purpose Cooperative consultant Godofredo Sadiasa, in an interview over local Radyo Todo Aklan, said a bridge will kill the jobs of around 500 boatmen and 40 boat owners.

Also, most of the boat owners took on huge debts to buy fiberglass boats to replace their wood-hulled boats in conformance with the regulation of the Maritime Industry Authority.

Horizontal shift

The cash-rich SM Group’s next foray, after expanding its mall chain to every region, will be in medium- and low-cost shelters using its successful model of being the catalyst wherever developments are found.

SM Prime Holdings Inc. plans to enter the horizontal housing market under its SM Residences brand.

Initially, over 1,000 hectares will be allocated for SM Residences projects over the next five years, with around 85 percent dedicated to horizontal housing.

SM Residences’ premium line will also debut early next year with a 200-hectare development. Houses priced from P25 million to over P100 million are in the pipeline.

SM Prime is banking on a recent policy to tap a broader market that would address the growing demand for affordable housing.

Joint Memorandum Circular 2024-001 of the National Economic and Development Authority and the Department of Human Settlements and Urban Development placed the guarantee ceiling for low- and medium-cost housing at P4.9 million and P6.6 million, respectively.

SM Prime will consolidate all its residential developments under the SM Residences brand next year, covering economic, medium-cost, premium and leisure segments, to enhance its presence nationwide.

The goal is to unlock the full potential of an extensive land bank through SM Residences and more integrated developments, as this will enable steady long-term growth.

Mall revenues continued to lead SM Prime’s growth in the third quarter, with revenues rising by eight percent, thanks to an eight-percent boost in rental income, coupled with a four-percent revenue increase in their cinemas and event ticket sales sub-segments.

Philippine malls’ operating income growth of nine percent is in stark contrast with China’s three-percent decline, as consumer demand there continues to be weak.

SM Prime is focusing on the domestic market, as shown by the recent mall launches in Caloocan and Cebu, which added roughly 200,000 square meters to its mall portfolio.

This remains the case next year, as plans are to open slightly more than 500,000 square meters of gross floor area in La Union, Laoag, Zamboanga and Sta. Rosa.