Inflation holds steady at 1.7% in Oct.
By Katherine K. Chan
PHILIPPINE HEADLINE inflation steadied in October as slower price increases in vegetables and meat offset higher utility costs during the month, the Philippine Statistics Authority (PSA) said on Wednesday.
PSA data showed that the consumer price index (CPI) stood at 1.7% in October, unchanged from September’s print but eased from 2.3% a year ago.
This was a tad slower than the 1.8% median forecast from a BusinessWorld poll of 17 analysts conducted last week, but within the Bangko Sentral ng Pilipinas’ (BSP) 1.4-2.2% forecast.
October also marked the eighth straight month that inflation fell below the central bank’s 2-4% target band.
In the 10 months to October, average inflation matched the BSP’s full-year target of 1.7%.
Meanwhile, core inflation, which discounts volatile prices of food and fuel, eased to 2.5% from 2.6% in September. Still, it was slightly faster than the 2.4% print in October 2024.
This brought year-to-date core inflation to 2.4%, easing from the 3.1% clip seen in the comparable year-ago period.
Housing, water, electricity, gas and other fuels contributed most to the CPI during the month and posted a 2.7% inflation rate, National Statistician Claire Dennis S. Mapa said.
Electricity alone posted a 4.1% inflation in October, accelerating from the 1.2% clip seen in September.
In October, the Manila Electric Co. hiked the overall electricity rate by P0.2331 per kilowatt-hour (kWh) to P13.3182 per kWh. This means residential customers consuming 200 kWh had to pay an additional P47 in their bill last month.
Meanwhile, inflation for water supply also quickened to 5.7% in October from 5.3% a month earlier.
In September, the Metropolitan Waterworks and Sewerage System okayed the proposed P0.14 per cubic meter (cu.m.) hike for Maynilad and a P0.15 per cu.m. rollback for Manila Water for the October-December period.
Department of Economy, Planning, and Development Secretary Arsenio M. Balisacan said the government’s efforts to manage supply conditions and ensure price stability helped inflation hold steady in October.
“The steady headline inflation rate shows that our coordinated interventions are helping to maintain adequate supplies and keeping essential goods affordable,” he said in a statement. “We remain vigilant in managing risks from weather disturbances, global market volatility, and other domestic factors that may affect prices in the coming months.”
Meanwhile, slower inflation for food and non-alcoholic beverages tempered inflationary pressures in October.
The heavily weighted food and nonalcoholic beverage index eased to 0.5% in October from the 1% clip logged the month earlier.
“Our food basket, food and non-alcoholic beverages, has the biggest weight in the inflation basket at 37.75% more or less,” Mr. Mapa said.
Food inflation slowed year on year to 0.3% from 0.8% the previous month and 3% in October 2024.
This came as inflation for vegetables, tubers, plantains, cooking bananas and pulses eased to 16.6% from 19.4% in September.
Likewise, the PSA recorded slower inflation for meat and other parts of slaughtered land animals in October at 5.2% from 6% a month ago.
However, Mr. Mapa noted that inflationary pressures from food remain as prices of fish and other seafood picked up to 8.2% from 7.9% in September.
RICE PRICES
Rice inflation remained in the negative for the tenth month in a row at -17% in October from -16.9% in September.
Mr. Mapa said rice prices continued to decline amid increased unmilled rice production in the last quarter of the year.
“Our production is high, but of course, prices in the world market are also starting to drop. So that actually affected, in a good manner, our retail rice prices, because it continues to decline,” he said in Filipino.
Citing PSA data, Mr. Mapa said a kilo of regular-milled rice was sold at an average price of P40.09 in October, dropping by 20.2% from P50.22 a year ago. Well-milled rice was also cheaper at an average P46.49 per kilo, down 15.9% from P55.28 last year. Meanwhile, special rice was priced at P56.39 per kilo last month, falling by 11.8% from P63.97 in October 2024.
“Despite the import ban on rice, the price of the grain was largely stable while meat and dairy prices eased, offsetting the increase in utility rates,” Aris D. Dacanay, economist for the Association of Southeast Asian Nations at HSBC Global Investment Research, said in an e-mailed note.
Earlier, President Ferdinand R. Marcos, Jr. ordered a 60-day freeze on regular and well-milled rice imports from Sept. 1 to Nov. 2 to support local farmers amid the harvest season and to stabilize rice prices.
The suspension has been extended until yearend, with the government eyeing to open an import window in January before reimposing the ban from February to April.
Meanwhile, PSA data also showed that inflation in the National Capital Region (NCR) picked up to 2.9% in October from 2.7% in the previous month and 1.4% in the same month in 2024.
Outside NCR, inflation eased to 1.3% from 1.5% in September and the 2.6% clip a year ago.
Central Visayas still saw the highest inflation print among other regions at 2.6%, while prices in Bangsamoro Autonomous Region in Muslim Mindanao declined the fastest at -1.3%.
Inflation for the bottom 30% of income households declined at a faster pace of -0.4% in October from -0.2% in September. For the 10-month period, it averaged 0.3%, slower than 4.5% a year ago.
INFLATION AHEAD
The BSP still sees inflation settling below its 2-4% target by yearend, citing the recent easing of rice prices in the country.
“Inflation is projected to average below the low end of the target range in 2025, primarily due to the easing of rice prices in previous months,” it said in a statement. “The risks to the inflation outlook are limited as price pressures are expected to ease amid stabilizing global commodity prices.”
However, the central bank said the outlook for domestic economic growth has weakened.
“This outlook reflects in part the impact on business confidence of governance concerns about public infrastructure spending. Indications of slowing demand also reflect lingering uncertainty from the external environment,” the BSP said.
For November, Mr. Mapa said fuel prices will likely drive up inflationary pressures following the latest pump price adjustment.
Oil firms in the country implemented fuel price hikes on Tuesday, amounting to P1.70 per liter for gasoline, P2.70 per liter for diesel and P2.10 per liter for kerosene.
Mr. Mapa said they will continue to monitor the impact of recent typhoons on consumer prices, as well as Mr. Marcos’ earlier directive to impose a price freeze on basic and prime commodities until yearend.
“There are threats to overall food inflation. Some items are increasing, (such as) the price of fish (and) vegetable,” Mr. Mapa said, noting vegetable prices are sensitive to weather conditions.
In a note on Wednesday, Chinabank Research said inflation will likely remain low in the coming months, but noted that pump price adjustments and the weather’s impact on food prices still pose risks.
“We expect overall inflation to remain low for the rest of the year, though upward price pressures may arise from energy — a hefty increase in local pump prices was announced this week — as well as from weather-sensitive food prices,” it said.
Meanwhile, HSBC’s Mr. Dacanay said the benign inflation and clearer rice policies could push the BSP to cut rates by 25 basis points (bps) in December.
“All in all, we think October inflation plus the clarity over rice policies strengthen the case for a December rate cut by the BSP,” he said. “With no issues in inflation, monetary policy has the runway to pump the economy to, hopefully, offset the fiscal fallout brought by a sharp drop in public infrastructure spending.”
Since it began its easing cycle in August 2024, the Monetary Board has cut its key policy rate by 175 bps to a three-year low of 4.75%.
BSP Governor Eli M. Remolona, Jr. has signaled further easing until early next year to support the economy as the ongoing flood control anomalies have hit business sentiment, clouding their growth outlook.
The Monetary Board will hold its last rate-setting meeting this year on Dec. 11.
Wave of telco investments seen as Konektadong Pinoy IRR finally released
By Ashley Erika O. Jose, Reporter
THE Philippines expects a wave of investments in the telecommunications sector, as the government on Wednesday released the implementing rules and regulations (IRR) of its open access law.
Department of Information and Communications Technology (DICT) Secretary Henry Rhoel R. Aguda said that about six to seven foreign companies plan to enter the Philippine telecommunications sector once the IRR of the Konektadong Pinoy Act takes effect. He did not name the firms.
Mr. Aguda told reporters that two of these players are expected to come in sooner.
“These are reputable companies. Out of the seven, two of these will hit the ground running,” he said.
The government is still in talks with the foreign players, Mr. Aguda said, noting that these companies will provide a variety of services particularly mobile, fiber and satellite services.
“Most of them are fiber. They will have to go through their due diligence. It is easy to say that they are interested. The rubber meets the road when they start digging the fiber and building the tower,” Mr. Aguda said.
The Konektadong Pinoy Act, or the Open Access in Data Transmission Act, lapsed into law on Aug. 24, while the IRR was signed on Wednesday.
The law streamlines the licensing process for new entrants, boosting competition in data transmission.
“We need the type of telco industry that is vibrant. The IRR will be effective within 15 days after we publish it,” Mr. Aguda said.
Expanding connectivity from 30,000 to 100,000 cell sites and achieving full fiberization will require investments that are at least equal to previous benchmarks, Mr. Aguda said.
“A typical telco company invests around a billion US dollars to $1.5 billion annually when expanding its network,” Mr. Aguda told a Palace briefing in Filipino. “If they’ve been investing about one to $1.5 billion every year, I think that’s the minimum amount of investment that should come in,” he added.
Mr. Aguda said the IRR addresses the concerns of the telecommunications companies, particularly on the issue of cybersecurity and a level playing field.
The IRR provides transparency in pricing and the timely regular publication of updated pricing information to ensure fair trading within and between each data transmission.
Data transmission industry participants (DTIPs) will be allowed to construct, install, establish, maintain, lease or own, networks or facilities without the need of a legislative franchise, while also promoting asset sharing between current and new players.
The DICT, through its ICT Industry Development Bureau, will develop and issue guidelines outlining minimum cybersecurity standards and requirements, aligned with the DTIP’s risk profile for each data transmission segment
“The State shall promote data transmission infrastructure sharing and co-location to eliminate the uneconomic duplication of these facilities in the data transmission industry,” according to the IRR.
Mr. Aguda said the DICT will be the primary policy, planning and coordinating body of the government for the Konektadong Pinoy Act. It is tasked to formulate plans and policies to implement an open access mechanism in the industry.
The DICT will implement initiatives to encourage DTIPs to adopt and deploy new and next-generation technologies, prioritizing unserved or underserved areas, including educational institutions.
Incentives include income tax holidays, value-added tax exemptions, zero-rating from the date of registration, and duty exemption.
For Samuel V. Jacoba, founding president of the National Association of Data Protection Officers of the Philippines (NADPOP), the IRR addresses the concerns of telcos, particularly with the IRR remaining firm on requiring entrants to secure cybersecurity certifications after two years of operations.
“Within two years from registration or authorization, DTIPs shall secure a cybersecurity certification or cybersecurity compliance from the DICT Cybersecurity Bureau,” the IRR said.
Mr. Jacoba said two years will be enough time for new operators to establish baseline cybersecurity compliance anchored on global standards.
He noted incumbent telco operators should already have baseline cybersecurity compliance, so this requirement should not be an issue.
“Incumbent telco operators at this time should already have baseline cybersecurity compliance, so they need not look into this requirement as an issue,” Mr. Jacoba said.
Sought for comment, PLDT Inc. and Smart Communications, Inc. Chairman and Chief Executive Officer Manuel V. Pangilinan said: “It is probably not as bad as we expected, is my impression.”
However, Mr. Pangilinan declined to further comment on the Konektadong Pinoy, noting that he has not personally read it. He added that this will make PLDT evaluate and change its strategy.
LOWER PRICES?
Mr. Aguda said the DICT, in partnership with the Australian government, has completed a real-time mapping of all fiber optic lines nationwide.
This will guide efforts to expand connectivity to 100% of households, supporting the government’s goal of providing every Filipino with fast, stable and reliable internet access.
Mr. Aguda also expects internet prices in the country to drop further and service quality to improve with the entry of new players.
While the IRR has yet to set out specific fees for new entrants, he said the DICT has already begun easing regulatory requirements to encourage participation.
For instance, the operating licenses of tower companies have been extended to 15 years from five years at no additional cost, he noted.
Mr. Aguda also noted that even before the IRR was released, existing telecommunications companies had already lowered rates.
“Right now, you can already get unlimited data for less than P500 — a substantial drop from last year,” he said.
The IRR would also further enhance competition, leading not only to lower prices but also to improved internet quality.
“What we want is not just cheaper service, but reliable service. With the same amount, you’ll get more data and better quality once the IRR is fully implemented,” Mr. Aguda said.
Incumbent telecommunications players are expected to expand and improve their services beyond urban centers with the expected entrants of more foreign players in the telco industry with the Konektadong Pinoy Act, Digital Pinoys said.
“We do anticipate increased investment in the connectivity sector as a result of the Konektadong Pinoy law. It provides predictability and policy direction — two major factors that investors look into before committing capital to infrastructure, particularly in underserved and far-flung areas,” Ronald B. Gustilo, a national campaigner for the Digital Pinoys said via Viber.
Konektadong Pinoy will drive growth because it will expand the market base, he said, adding that when more Filipinos gain reliable access to the internet, the demand for digital service such as e-commerce and financial technology rises.
“For telcos already operating, they will have to see the law as both a challenge and an opportunity. It will push them to move beyond the urban centers and improve their service quality, while also opening doors for public-private partnerships, shared infrastructure, and alternative connectivity models, he said,
Despite being a national priority since 2022, the Philippines’ digital transformation has progressed slowly due to weak broadband infrastructure and outdated policies that hinder competition and investment, a World Bank report from July said.
Only 28% of households had fixed broadband access in 2023 — far behind neighboring countries — and the country accounts for over half of the region’s unconnected mobile broadband users.
The digital divide is also widening, with internet access rising much faster among wealthier households than poorer ones. — with Chloe Marie A. Hufana
Recto firmly against online gambling ban
By Aubrey Rose A. Inosante, Reporter
FINANCE SECRETARY Ralph G. Recto is opposing a total ban on online gambling, saying the sector can benefit the economy if its social harms are curbed.
At the same time, Mr. Recto said he supported the Department of Economy, Planning, and Development’s (DEPDev) push for stricter regulations on the electronic gaming (e-gaming) industry.
In a Viber message to BusinessWorld, Mr. Recto said the Department of Finance (DoF) remains firm in its position favoring tighter oversight of the e-gaming industry over a blanket ban.
“(The DoF’s position) is based on our cost-benefit analysis that shows that the industry can have a net benefit impact on the economy if certain negative externalities are controlled through more stringent regulations,” he said on Oct. 31.
Mr. Recto’s response followed DEPDev’s statement last month supporting tighter regulation and a possible ban on online gambling, as the sector’s huge social costs outweigh its “minimal” economic contribution.
DEPDev estimates showed the e-gaming industry contributed just P81.6 billion or 0.37% to real gross domestic product last year.
Online gambling has emerged as a growing concern in the Philippines amid rising cases of addiction, prompting lawmakers to file multiple bills in Congress seeking to either ban or tighten its regulation.
“We reiterate that DoF will follow the policy direction of the President. We will implement the administration’s stance on this issue,” Mr. Recto said.
Mr. Recto called for a “holistic” approach to gambling regulation, one that imposes stringent safeguards without tipping into overregulation.
This would encourage legitimate industry players to remain compliant and contribute their fair share of dues, he said.
Sought for comment, the Philippine Amusement and Gaming Corp. (PAGCOR) said it does not support a total ban.
“Our focus remains on regulating the entire Philippine gaming industry and not on any specific segment,” PAGCOR told BusinessWorld in a Viber message on Oct. 29.
In the first seven months, PAGCOR said it collected P37 billion from e-gaming platforms.
In October, Cavite Representative and Chairman Antonio A. Ferrer said the House Games Committee will release a technical report by yearend to guide a consolidated bill proposing either a total ban or stricter industry rules.
The Legislative-Executive Development Advisory Council included the proposed online gambling regulation as one of its 44 priority measures, though specific details remain limited.
‘TRIPLE BLOW’
Analysts warned that delays in the government’s definitive stance on online gambling risk worsening addiction and allowing illegal operators to flourish.
Reyes Tacandong & Co. Senior Adviser Jonathan L. Ravelas said indecision invites a triple blow: economic uncertainty for gaming firms, social harm to minors, and governance gaps that erode public trust.
“The longer we wait, the harder it gets to clean up the mess,” he said in a Viber message.
Mr. Ravelas said there’s no need to shut down online gambling.
“Clear rules, strong safeguards, and fast action will protect kids and keep the economy moving,” he added.
Foundation for Economic Freedom President Calixto V. Chikiamco said regulating online gambling is better than a ban.
“Banning will only drive online betting underground where government cannot get its share of tax revenues and where consumers are more exposed to exploitation,” Mr. Chikiamco said in a Viber message.
“It will deter investments in online gaming and allow gray market operators more freedom until regulations are fixed and stable.”
Digital Pinoys national campaigner Ronald B. Gustilo said the government should focus its effort on eradicating illegal online gambling.
“The illegal activities connected to online gambling — allowing minors to play, predatory gameplay design, low betting amount, refusal to pay winnings — are all connected to illegal online gambling,” he said in a Viber message.
“More Filipinos are at risk of worsening addiction while the government is also losing more revenue because the illegal operators make gambling more enticing,” he added.
Corruption unlikely to derail PHL growth — economist
THE PHILIPPINES’ growth goals are unlikely to be hindered by ongoing corruption scandals, an economist said.
“Corruption is unjust, is evil, is morally condemnable, but it really does not stop us from growing at 5-6%,” University of Asia and the Pacific economist Bernardo M. Villegas said during the Economic Briefing for Diplomats on Wednesday.
He cited World Bank projections showing the Philippines is on track to grow by an average of 6% over the medium term.
The government targets the gross domestic product (GDP) to grow by 5.5% to 6.5% this year and 6-7% until 2028. In the first six months, the economy grew by 5.4%.
He noted that other countries are still riddled with corruption yet have become first-world nations.
“I’m not saying that we should not fight corruption. But corruption is not an obstacle to becoming first world,” he added.
President Ferdinand R. Marcos, Jr. had flagged anomalous flood control projects during his State of the Nation Address in late July. This sparked several investigations into alleged corruption involving lawmakers, government officials, and private contractors.
For this year, Mr. Villegas also said he expects fourth-quarter economic growth to exceed 6%, citing resilient household consumption during the holiday season. Household consumption accounts for about 70% of gross domestic product.
“We’ll be back at 6% by the last quarter, because the last quarter (as) Christmas, is the most attractive time for Filipinos,” he said.
“You have a lot of the OFWs (overseas Filipino workers) coming back, bringing in more money, being more generous to their relatives. So, there will be more purchasing power.”
Meanwhile, the economist said the GDP may have grown by 5.3% in the third quarter following the disruptions to public spending linked to a corruption probe and the impact of natural calamities.
This matched the 5.3% median forecast of 18 economists and analysts polled by BusinessWorld. However, this would be slower than the 5.5% expansion in the second quarter but slightly faster than the 5.2% print in the July-to-September period of 2024.
The Philippine Statistics Authority will release the third-quarter GDP data on Nov. 7.
At the same time, Mr. Villegas said the country is poised to graduate to upper middle-income country (UMIC) status by next year, citing faster economic growth at 6% and improvement in agriculture sector.
“It’s been going on for the past 15 years. There’s no reason why we are afraid that the political problems will stop that. We have had similar political problems for the last 20 years, but we’ve been growing,” he said.
The Philippines is currently classified as a lower middle-income economy as its gross national income per capita stood at $4,470 in 2024, missing the World Bank’s $4,496-$13,935 UMIC threshold.
To meet the government’s AmBisyon Natin 2040 goal of a predominantly middle-class society, Mr. Villegas said reforms must deliver results in agriculture, anti-corruption efforts, and foreign direct investment. — Aubrey Rose A. Inosante
Metro Manila office vacancy to stay near 20%
By Beatriz Marie D. Cruz, Reporter
METRO MANILA’S office vacancy rate will remain high through 2027 as new supply continues to outpace demand, according to real estate consultancy KMC Savills, Inc.
“The capital’s office market will remain under pressure from high vacancies and structural oversupply through 2027, keeping rental growth subdued,” KMC Savills said in a third-quarter report.
Vacancy rates are projected to hover around 20% in the next three years, weighed by high inventory in key districts such as the Bay Area and Alabang Central Business District (CBD).
The vacancy rate stood at 20.6% last quarter, almost unchanged from 20.7% in the second quarter. The slight improvement was offset by the completion of new buildings in Makati and Taguig, the firm said.
The Alabang CBD recorded the highest vacancy rate at 36.6%, followed by the Bay Area — which includes Manila, Pasay and Parañaque — at 35.9%. In contrast, Bonifacio Global City (BGC) continued to post tight occupancy at 8.3%, while Makati CBD, Ortigas Center and Quezon City had modest declines in vacant space.
“This sustained high vacancy suggests a structural mismatch between available supply and current tenant demand, which is further impacted by client nonrenewal,” KMC Savills said.
Among business districts, BGC remains the biggest with 2.26 million square meters (sq.m.) of office stock, followed by Makati CBD (1.75 million sq.m.), Ortigas Center (1.33 million sq.m.), Bay Area (1.25 million sq.m.), Quezon City (907,000 sq.m.) and Alabang (667,000 sq.m.).
Net office take-up dropped 15.65% year on year to 37,800 sq.m. in the third quarter, and fell 32.35% from the previous quarter’s 55,879 sq.m. Leasing activity was concentrated in BGC and Ortigas Center.
New supply is expected to rise sharply next year after a quiet year for completion. Only 10% of the 338,000 sq.m. expected new supply for 2024 was delivered as of the third quarter.
While demand from information technology-business process management (IT-BPM) firms and traditional tenants remains steady, KMC Savills said it is not enough to absorb the upcoming inventory.
“The incoming supply pipeline, coupled with the lingering impact of vacant spaces, means that demand absorption is currently insufficient to significantly reduce the overall vacancy rate in the short to medium term,” it said.
From 2025 to 2030, Quezon City is expected to account for the biggest share of upcoming office space with 220,000 sq.m., followed by the Bay Area (204,000 sq.m.), BGC (146,000 sq.m.) and Makati (103,000 sq.m.).
Landlords are expected to roll out aggressive incentives and concession packages to attract tenants amid the glut.
Average monthly prime office rents declined 1.7% quarter on quarter to P833.4 per sq.m. in the third quarter, dragged by softening rates in Makati and BGC.
Rental declines are expected to bottom out near P800 per sq.m. per month by end-2026 as landlords in top-grade buildings become less flexible on pricing, KMC Savills said.
D&L eyes stronger 2025 as profit growth nears 10%
D&L INDUSTRIES, INC. said it is on track to meet, or possibly exceed, its 10% profit growth target for 2025 amid solid demand and export expansion despite high coconut oil prices.
“We’re at 8% year on year for nine months versus nine months last year,” D&L President and Chief Executive Officer Alvin D. Lao told a virtual news briefing on Wednesday. “So it’s not far from the 10% target. We’re going to try our best to hit that.”
Third-quarter earnings at the listed food ingredient and oleochemical producer rose 12.37% to P554 million from a year earlier, supported by steady volumes despite surging raw material costs. Revenue climbed 40% on stronger coconut oil prices, which rose 78% year on year, while sales volume grew 11%.
“In terms of revenues, admittedly, the bulk of the increase is really coming from higher prices, particularly coconut oil,” Mr. Lao said. “Almost 30% of our revenue increase is due to higher prices.”
Coconut oil prices peaked at almost $3,000 per metric ton, almost triple 2023 lows, cutting blended margins by 3.2 percentage points in the first nine months, the company said in a regulatory filing. Prices have since eased 17% from the peak but remain historically high.
Mr. Lao attributed the spike to rising demand and limited supply. Unlike palm oil, which comes from mechanized plantations, coconut production remains largely manual and stagnant, he said.
Even with higher input costs, D&L said its exports continued to perform strongly, with revenue up 20% and gross profit rising 22%. Export margins reached 17.2%, compared with 11.4% for domestic sales.
“If the coconut oil price wasn’t that high, we would have sold more — we could sell much more,” Mr. Lao said.
He added that the company’s resilience amid volatile commodity markets underscores its strong fundamentals. They can’t control price swings, but they can control how they respond and where they focus their efforts, he said, citing continued investment in research and development.
For January to September, D&L posted a 7.73% increase in net income to P1.95 billion from a year earlier.
Mr. Lao said he expects business conditions to improve in 2026 as borrowing costs decline globally. “Interest rates are coming down, not just in the Philippines but in the US and other markets as well. From that perspective, 2026 should be better,” he said.
Shares of D&L fell 1.76% to P4.46 each on the local bourse. — Alexandria Grace C. Magno
SM Investments bags Platinum Award for sustainability reporting
SM INVESTMENTS CORP. (SMIC) has received the Platinum Award for Asia’s Best Materiality Reporting at the 11th Asia Sustainability Reporting Awards at the Grand Hyatt Singapore last month.
“We see sustainability as an ongoing journey of creating impact that endures,” SM Investments President and Chief Executive Officer (CEO) Frederic C. DyBuncio said in a statement on Wednesday. “This recognition strengthens our resolve to remain transparent and accountable as we work to deliver meaningful value to our customers, partners and communities across the country.”
The company’s Integrated Report 2024 was also a finalist for Asia’s Best Integrated Report in the large company category.
Rajesh Chhabara, founder of the Asia Sustainability Reporting Awards and head of CSRWorks, said the recognition highlights SM Investments’ commitment to transparency and long-term value creation.
“This award demonstrates SM Investments’ excellence in sustainability reporting while embracing transparency as a cornerstone of responsible business,” he said. “Their report reflects a deep understanding of how sustainability performance connects to long-term value creation and stakeholder trust.”
Organized by Singapore-based CSRWorks International, the awards drew entries from 17 countries and recognized the best sustainability reports in Asia across several categories.
In an interview with BusinessWorld in September, Mr. DyBuncio said the company continues to boost investments to make its businesses more resilient to climate risks, describing sustainability as a crucial part of future growth, not just an expense.
He said SM Prime Holdings, Inc., the group’s property arm, allocates about 10% of its capital spending for disaster-resistant and eco-friendly designs, while the group is also expanding renewable energy projects such as solar and geothermal initiatives.
SMIC shares were unchanged at P722 each on the Philippine Stock Exchange. — Alexandria Grace C. Magno
Monde Nissin posts 13% rise in Q3 profit despite higher edible oil costs
MONDE NISSIN CORP. posted a 13.4% yearly increase in third-quarter net income to P2.3 billion, supported by foreign exchange gains and steady growth in its core branded food business despite continued pressure from its meat alternative segment and rising edible oil costs.
In a stock exchange filing on Thursday, the listed food and beverage manufacturer said the profit figure was partially offset by a noncash loss of P285 million from the fair value adjustment of its meat alternative guaranty asset.
Consolidated revenue rose 3.8% to P21.8 billion, while gross income slipped 2.4% to P7.24 billion. Core attributable net income increased 4.6% to P2.5 billion.
“The improvement was further supported by a foreign exchange gain, compared with a foreign exchange loss in the same period last year,” Monde Nissin said.
The Asia-Pacific branded food and beverage segment posted a 4% rise in net sales to P18.42 billion, driven by stronger biscuit sales and other product categories.
“Our Asia-Pacific branded food and beverage business delivered modest topline growth in the third quarter, supported by volume growth in biscuits and other categories,” Monde Nissin Chief Executive Officer Henry Soesanto said.
Meanwhile, meat alternative sales under Quorn Foods inched up 2.5% to P3.39 billion in the July-to-September period, while gross margin expanded by more than 500 basis points year on year due to lower input costs and efficiency gains.
“We are encouraged by the continued easing of year-on-year declines and the significant gross margin improvement this quarter,” Mr. Soesanto said.
For the nine months to September, Monde Nissin’s reported net income rose 9.6% to P6.7 billion, while consolidated revenue grew 3.5% to P63.3 billion. Gross profit slipped 1.5% to P21.04 billion, and core attributable net income fell 3.5% to P7.19 billion.
Net sales from the meat alternative business declined 1.2% to P9.98 billion.
“While higher edible oil costs continue to put pressure on our gross margins, we are beginning to see the benefits of our pricing adjustments and cost-saving initiatives, such as reformulation,” Mr. Soesanto said.
He added that the company expects gradual gross margin recovery in the coming quarters, although the full-year margin will remain lower than last year.
Monde Nissin shares fell 4.55% or 30 centavos to P6.30 each on the local bourse. — Beatriz Marie D. Cruz
A quiet Thai sibling
WHERE UMA NOTA, Alex Offe and Michael J. Needham’s 2024 offering is grand and glamorous, Sabai, a new outlet from this partnership, is quiet and cozy.
BusinessWorld went to a tasting at Sabai on the Ground Floor of Shangri-La The Fort on Oct. 27. It’s right beside its glamorous older sister, which bids you to go down a staircase to partake of fun not to be seen in the light. At Sabai, launched at lunchtime, sunlight streamed into the windows and overall had a more casual vibe.
Mr. Offe, co-founder of Uma Nota in Paris and Hong Kong (since closed) brought gathered media guests around the three private rooms (two of which have karaoke sound systems). We made a stop around the kitchen, where he pointed out that six of their staff are Thai: the head chef, the sous-chef, and four chefs de partie. “If you ask me to cook Chinese food, I can probably do an okay job, but there are things you just can’t teach,” he said about the chefs. “Only a well-trained palate is able to make adaptations on a recipe, on the spot.”
Leading the kitchen is Head Chef Puwadol Assavadathkamjorn, a native of Southern Thailand. He brings experience from Michelin-starred Le Normandie by Alain Roux and Pru Restaurant, and Sühring in Bangkok, with two Michelin stars.
Sabai (meaning “relaxed” or “comfortable” in Thai; and a homonym for Filipino’s “together”) doesn’t have all the heated flourishes we’ve become accustomed to when it comes to Thai food. If anything, the meal served to us on the launch proved its name, tasting like something straight out of a Thai household.
The Pork Belly with Five Spices (braised pork in Chinese five-spice broth, slow cooked over two nights) tasted like the Philippines’ humba (similar, but with the addition of black beans or nuts, depending on where you are) and was strangely comforting. We could say the same about the Spicy Dry Fish Broth with bangus (milkfish) and mushrooms, infused with herbs like kaffir lime and Thai basil — it amounted to a familiar, clean-tasting sinigang (a soup of proteins in a sour broth) with a little bit more zing.
That’s not us being unappreciative; that’s us forming a bond with our Southeast Asian neighbors, but also proving the Thais right when they say “same same, but different.” There was a Crispy Fermented Pork, which tasted like a complex adobo (albeit the kind fried in its own fat), and the shrimp paste relish (our bagoong, but served with vegetables). This we paired with something uniquely theirs, that has no analog within our shores, the Crispy Catfish Salad, served looking like a cloud, and breaking apart in the mouth with an audible crunch.
Mr. Offe said that he spent months in Thailand to really get a taste of what that country has to offer. “The food is the same approach: trying to be as authentic and true as possible.” The spice levels have been adjusted to local palates, but otherwise, the chefs keep it as close as possible to the flavors back home. More importantly, a large part of the ingredients comes from Thailand. What couldn’t be brought here, or would be otherwise compromised during shipping, they’ve decided to plant here in local farms, with the seeds coming from Thailand.
As Mr. Offe’s second venture in the Philippines, he talks opening perhaps another restaurant next year. Asked how Uma Nota and Sabai fit together despite their radically different personalities, he said, “We’re trying to create a collection of memorable dining experiences. Different priorities, different ways to celebrate.”
Coming from more cosmopolitan cities like Paris and Hong Kong, he also discussed what he likes about Manila for him to keep opening restaurants here: “It’s a city that’s up and coming.”
This was a few days before Uma Nota’s bartender Benjamin Leal won the Exceptional Cocktails Award at the first Philippine Michelin Awards. Uma Nota itself was included in the list of Selected Restaurants for the country’s 2026 Michelin Guide. “It’s about time that Manila is recognized, and the Philippines is recognized for its energy and opportunities.” — Joseph L. Garcia
PLDT eyes higher Q3 revenue, boosted by Maya, home, enterprise units
PLDT INC. expects to report higher third-quarter revenue, driven by its digital bank Maya and its home and enterprise businesses, Chairman and Chief Executive Officer Manuel V. Pangilinan said on Wednesday.
“Our third quarter is slightly better than the previous two quarters,” he told reporters on the sidelines of an event. “Maya helps, although [it was] slightly affected by the linking from the gaming sites. Profits for the third quarter were up.”
The Pangilinan-led telecommunication company will release its third-quarter results next week.
In the first half, PLDT’s attributable net income fell 1.47% to P18.14 billion from a year earlier, as higher expenses outpaced revenue growth.
Despite this, its second-quarter attributable net income rose 6.05% to P9.11 billion, supported by steady performance in its core segments. Total revenues for January to June inched up 1.85% to P109.57 billion.
Mr. Pangilinan said the company is still searching for a replacement for Anastacio R. Martirez, who stepped down as Smart Communications, Inc. chief operating officer (COO) last month to pursue entrepreneurial ventures.
He said the next Smart COO could come from outside the company and might be from a younger generation.
“I wish [he] were a Gen Z, or a younger fellow or even a Millennial. The future belongs to them,” Mr. Pangilinan said.
Mr. Martirez, who had served as COO since September last year, cited plans to explore business opportunities after his resignation.
At the local bourse, PLDT shares rose 0.71% or P8 to close at P1,137 each.
Hastings Holdings, Inc., a unit of the PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., holds a majority stake in BusinessWorld through the Philippine Star Group. — Ashley Erika O. Jose
Abacus Global Technovisions, Inc. to hold its Annual Stockholders’ Meeting on Nov. 27 via Zoom
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Matsusaka: This P23k/kilo beef literally melts in your mouth
“WAGYU” has been thrown about as a buzzword to connote a certain quality of beef, due to the popularity of Kobe beef and its sisters, which includes Matsusaka beef, cows for which are bred in the Matsusaka region. While one should know that there’s a grading system for wagyu (which basically just means “Japanese cattle”), one of its premier examples, the aforementioned Matsusaka, just arrived in the Philippines.
Lorenzo Vega, chief executive officer of Doubleday Enterprises, unveiled its partnership with Ito Ranch, Japan’s most awarded Matsusaka producer, during an event on Oct. 16 at the Shangri-La Plaza mall. The ranch, founded in 1953, has over 35 competition wins, including a historic three-year Grand Champion streak (2017-2019) at the prestigious Matsusaka Beef Carcass Competition. Ferran Adrià of El Bulli, one of the world’s best restaurants before closing in 2011, singled out the beef from Ito Ranch for its quality.
On Prime Cuts by Doubleday’s website, which will sell the beef, Ito Ranch’s Matsusaka A5 Japanese Wagyu Tenderloin can go up to P22,990 per kilogram. This is due to its intricate marbling and low melting point (12°C, which means it really does melt in your mouth).
There are several factors for the price, one of which is its rarity: “Matsusaka beef is quite controlled by distributors in Japan,” said Mr. Vega during the launch in a Q&A session. He notes that with other sellers in the Philippines claiming to have Matsusaka beef, they offer it in small quantities, which implies unofficial importation status. “Distributors in Japan, frankly, they keep to themselves, and to other first-world countries.”
He also talked about how to serve it: “However you want.”
While he said some people might prefer it as an entire steak, served thinly, torched above sushi, or swirled in a sukiyaki broth, he prefers his sliced and grilled thinly Teppanyaki-style. “Only salt and pepper, none of the other stuff.”
“Because it’s a very fatty cut of beef, I would say medium is very good,” he said about the beef’s ideal doneness. “The fat melts, and it becomes a very luxurious taste.”
Ito Ranch’s Overseas Sales Manager Kunio Kosaka, meanwhile, discussed what made their beef win so many awards. It stands on four pillars: pedigree (he compared breeding their cows to raising racehorses), a stress-free environment for the cows, a long fattening period (around 13 months longer than their competitors), and a feeding program that includes rice and beer: “Each farm’s family secret,” he told BusinessWorld.
Ito Ranch Matsusaka Beef will be available at partner restaurants including Teppanya and Sicilian Roast (of which Mr. Vega is a partner), with more establishments to be announced soon.
For more information, visit dprimecuts.com or contact Prime Cuts by Doubleday at sales@dprimecuts.com. — JL Garcia