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LPA likely to become tropical depression

PHILIPPINE STAR/MIGUEL DE GUZMAN

One of the low-pressure areas (LPAs) being monitored has a ‘high’ chance of developing into a tropical depression within 24 hours, but its effect on the country is not expected, the state weather bureau said on Wednesday.

At a 5 a.m. briefing, the Philippine Atmospheric, Geophysical, and Astronomical Services Administration (PAGASA) said that the LPA is likely to be the first tropical cyclone in September and will be named “Kiko.”

It was located 1,190 kilometers east-northeast of Northern Luzon and is expected to exit the Philippine Area of Responsibility (PAR).

“It is already quite far from our landmass, and at present, it no longer has any effect or direct effect on any part of the country,” Loriedin Dela Cruz-Galicia said in a press briefing in Tagalog.

Meanwhile, PAGASA said the southwest monsoon (Habagat) is still expected to affect large parts of the country, bringing heavy rains, particularly in the western section. — Edg Adrian A. Eva

Peso to rise as Fed woes drag dollar

BW FILE PHOTO

THE PHILIPPINE PESO is expected to end the year stronger against the US dollar as the greenback remains under pressure due to US President Donald J. Trump’s continued attacks against the US Federal Reserve.

MUFG Global Markets Research said they expect the peso to rise to the P56 level in the coming months as global investors remain bearish on the US dollar.

“We have adjusted our PHP forecast slightly stronger and see USD/PHP moving towards the P56 levels (from P56.50 levels previously). The key reason for the forecast change is mainly global rather than local, with our G10 team now seeing more US dollar weakness with increasing concerns around President Trump’s attack on Fed independence,” it said in its Foreign Exchange Outlook report for September.

On Tuesday, the peso closed at P57.51 versus the dollar, plunging by 35 centavos from Monday’s finish of P57.16. This was its worst showing in nearly a month or since it ended at P57.63 against the greenback on Aug. 5.

Year to date, the local unit is still up by 33.5 centavos or 0.58% from its end-2024 close of P57.845.

According to its latest forecasts, the research firm expects the peso to close this quarter at P57 versus the dollar and strengthen further to end 2025 at P56.50. It sees the local unit then rising to P56 against the greenback in the first half of 2026.

MUFG Global Markets Research said concerns over the Fed will continue to be a key focus for investors.

“The decision of President Trump on Aug. 25 to fire Fed Governor Lisa Cook has dramatically escalated the risks associated with threats to Fed independence… Whatever the outcome, it is clear that Mr. Trump is willing to act aggressively and that to us underlines the need for investors to price this risk into US assets. The financial market indifference so far is unlikely to last and this is likely to be a prominent theme throughout the remainder of Trump’s term in office… We have therefore lowered our US dollar forecasts to reflect these increased risks,” it said.

Mr. Trump has been exerting relentless pressure on the Fed to cut interest rates and publicly discussed firing Fed Chairman Jerome H. Powell, whom he called a “numbskull” and a “moron,” for not giving in to his demands, Reuters reported.

Upping this battle, Mr. Trump last month attempted to fire Ms. Cook, setting off a critical legal test over the Fed’s ability to function without political interference, the cornerstone of modern central banking.

Mr. Trump is demanding lower rates to boost investment and give mortgage borrowers relief over some of the highest interest rates in the developed world.

But politically motivated rate cuts would signal that the Fed is willing to tolerate higher inflation, eroding trust among investors, who hold trillions of dollars of US assets, banking on policy certainty from the Fed.

Such a loss of confidence could then push up longer-term borrowing costs, which are more relevant than short-term central bank rates for mortgages and business loans, potentially undoing any Fed effort to ease the financing burden.

Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera said that while Mr. Trump’s continued efforts to undermine the Fed could weigh on the dollar and benefit the peso and other emerging-market currencies, this may not be felt unless the market sees “concrete Fed policy shifts or political pressure affecting rate cuts.”

“For now, the peso remains anchored near P57 due to cautious investor sentiment and persistent trade and fiscal pressures. A sustained shift to P56 level would require both global US dollar weakness and improved local macro signals, including moderating inflation and consistent FDI (foreign direct investment) or remittance flows,” Mr. Rivera said.

DOMESTIC SUPPORT
MUFG Global Markets Research likewise said that the peso will be supported by a broadly positive economic environment.

“From a domestic perspective, many of the positive factors we mentioned have not changed, and as such, we remain comfortable in our view for PHP to strengthen modestly against the dollar,” it said.

Inflation is expected to remain benign amid modest rice prices and “low upside risks” to transport and electricity costs, it said.

“The recent temporary ban on rice imports is a key risk, but with domestic rice inventories still high, the impact should be manageable.”

Philippine headline inflation averaged 1.7% in the first seven months, well below the Bangko Sentral ng Pilipinas’ (BSP) 2-4% annual target and matching its forecast for the year.

Rice inflation has been decelerating amid the government’s measures to curb rising prices of the staple, including lowering tariffs.

The 60-day suspension of rice imports started on Sept. 1 and will end on Oct. 30. It covers imports of regular milled and well-milled rice but excludes varieties that are not commonly produced locally.

It added that it sees the BSP cutting benchmark interest rates by 25 basis points (bps) again in the fourth quarter to bring the terminal rate to 4.75%.

The BSP last week cut the target reverse repurchase rate by 25 bps for a third straight meeting to 5%. It has now slashed borrowing costs by a total of 150 bps since the start of its easing cycle in August 2024.

BSP Governor Eli M. Remolona, Jr. said the latest move puts the policy rate at a “sweet spot” in terms of both inflation and output, signaling that the central bank is nearing the end of its rate-cut cycle.

Still, he left the door open to one last reduction within this year to support the economy if needed.

“Second, we expect actual FDI to improve, reflecting the surge in FDI approvals already seen especially in the renewable energy space,” MUFG Global Markets Research said. “Third, the pipeline of public and private infrastructure projects remains strong.” 

It added that the effect of the 19% “reciprocal” tariff rate on Philippine exports to the US is to be minimal as the levy was mostly at par with those slapped on competitors, and with the economy being domestic oriented.

“Details of upcoming sectoral tariffs on semiconductors will nonetheless be important for the Philippines’ exports given the country’s focus on lower value-added testing and assembly activity.”

Mr. Trump has threatened to impose a 100% tariff on semiconductors.

In June, the United States was the top destination for Philippine-made goods amounting to $1.22 billion, 35.2% higher from the same month a year ago. Around 53% of the Philippines’ total exports to the US were semiconductors and electronics. — BVR with Reuters and a report from K.K. Chan

Economic losses from anomalous flood control projects likely hit up to P119 billion, Recto says

PHILIPPINE STAR/MIGUEL DE GUZMAN

By Aubrey Rose A. Inosante, Reporter

CORRUPTION related to flood control projects have cost the Philippines up to P118.5 billion in economic losses since 2023, Finance Secretary Ralph G. Recto said on Tuesday.

“Due to ‘ghost’ projects, our economy lost between P42.3 billion and P118.5 billion from 2023 to 2025,” Mr. Recto said in his presentation during a Senate Finance Committee hearing.

These estimated average economic losses are based on information from “anecdotal accounts” that put the extent of corruption in the Department of Public Works and Highways’ (DPWH) flood control projects at around 25% to 70% of the total project cost, the presentation showed.

These could have translated to 95,000 to 266,000 jobs for Filipinos, Mr. Recto said.

These allegedly anomalous projects not only drained public funds but also stunted economic growth in the previous years, the Finance chief said.

Philippine gross domestic product (GDP) grew by 5.5% in 2023 and 5.7% in 2024.

“We just learned that the extent of the problem with flood control is this big. Maybe if that money was spent better, we could have grown by 6%,” Mr. Recto told reporters.

“It’s a waste. The economy would have grown at a faster rate. If the money wasn’t wasted, more jobs would have been created.”

He added that the controversy could also dampen investor confidence in the Philippines.

Still, the economy remains on track to meet the government’s 5.5%-6.5% growth target for 2025 despite higher tariffs and adverse weather conditions, Mr. Recto said.

Philippine GDP grew by 5.5% in the second quarter, bringing the first-semester average to 5.4%, a tad below the state’s goal.

The government has launched a widespread probe into alleged anomalies in multibillion-peso flood control programs, which have long been flagged for irregularities as the Philippines faces more weather disturbances.

The DPWH is among the largest recipients of the national budget, securing more than P900 billion this year, a substantial share of which is earmarked for flood control projects nationwide.

President Ferdinand R. Marcos, Jr. earlier said that some P100 billion of the total P545 billion in government funds that were allocated for flood control projects nationwide since 2022 were cornered by just 15 contractors.

Over the weekend, Mr. Marcos appointed former Transportation Secretary Vivencio “Vince” B. Dizon as the new Public Works chief after the resignation of Manuel M. Bonoan.

The President also set up an independent commission to investigate flood control anomalies to further reinforce accountability.

Mr. Recto said the government’s tax collecting agencies are ramping up their probe into the contractors that benefited from these allegedly anomalous projects.

The Bureau of Customs on Tuesday issued a search warrant for the luxury vehicles of the Discayas in Pasig City, but only two out of 12 cars were found during the search.

Among the top 15 flood-control contractors earlier identified by Mr. Marcos were Omega & Alpha Construction and St. Timothy Construction, both reportedly linked to former Pasig mayoral candidate Cezarah Rowena “Sarah” Discaya.

“The Bureau of Customs takes the issue of the missing luxury cars of Discaya with utmost seriousness. We will ensure that these vehicles are located without delay, and if discrepancies are uncovered, all taxes and duties will be collected in full,” Customs Commissioner Ariel F. Nepomuceno said in a statement.

Mr. Nepomuceno has warned that hiding or abetting the concealment of these cars will be punished to the “fullest extent of the law.”

Meanwhile, the Bureau of Internal Revenue has served letters of authority to the tagged contractors.

Analysts have long flagged corruption as one of the biggest risks to Philippine economic growth.

Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera said corruption is not just a governance issue but also a direct economic cost.

“Losses in flood-control projects represent funds that could have gone to infrastructure, jobs, and social services,” Mr. Rivera said in a Viber message.

He described Mr. Recto’s estimate as “realistic,” citing the multiplier effects of efficient public spending.

“The challenge now is to tighten transparency and accountability so that public funds truly translate into inclusive growth,” he added.

Foundation for Economic Freedom President Calixto V. Chikiamco said all kinds of corruption end up as economic losses.

“Corruption exists everywhere, but it hasn’t stopped Vietnam from growing fast,” Mr. Chikiamco said in a Viber message.

Meanwhile, Filomeno S. Sta. Ana III, coordinator of Action for Economic Reforms, called Mr. Recto’s statement “hypocritical” and “deceiving” as fund transfers from state-run agencies — some of which were stopped by the Supreme Court — were approved under his watch.

“Find the link between the infra projects tainted with corruption and the transfer of PhilHealth (Philippine Health Insurance Corp.) and PDIC (Philippine Deposit Insurance Corp.) funds that enabled the funding of these highly questionable projects,” he said in a Viber message.

In 2024, the government initiated the transfer of P89.9 billion from PhilHealth to the National Treasury, labeling these as “excess funds.” The money was supposed to fund various projects, including infrastructure and social services.

The High Court in October issued a temporary restraining order to stop the last tranche of transfers worth P29.9 billion.

Meanwhile, in January, the PDIC remitted excess funds amounting to P107.23 billion to the Treasury.

PHL attracting more investments from ASEAN neighbors — BoI

PHILIPPINE STAR/ MICHAEL VARCAS

By Justine Irish D. Tabile, Reporter

INVESTMENT PLEDGES from Association of Southeast Asian Nations (ASEAN) countries have reached P251.98 billion since 2020, reflecting the region’s increasing confidence in the Philippines, the Board of Investments (BoI) said.

“As we build stronger trade and investment ties with our ASEAN neighbors, these numbers reflect the growing confidence of foreign investors in the Philippines as a place for business growth,” Trade Secretary and BoI Chairperson Ma. Cristina A. Roque said in a statement on Tuesday.

“We will keep working to create a stable and welcoming business environment, one that brings in more investments and opens up real opportunities for Filipinos,” she added.

According to the BoI, Singapore has been the biggest source of investment pledges since 2020, accounting for P245.97 billion of the total. The other top sources were Thailand with P4.34 billion, Malaysia with P1.65 billion, and Indonesia with P12.27 million.

In terms of industries, around P170 billion of these investments went to the information and communication sector, while P74.2 billion went to the power sector.

“The BoI-approved projects from ASEAN investors, particularly those in the information and communication and the renewable energy sectors, align with the Philippines’ push for smart and sustainable manufacturing and services,” said BoI Executive Director Evariste M. Cagatan.

The other top sectors were manufacturing (P5.58 billion), administrative and support services (P1.41 billion), and agriculture, forestry, and fishing (P930 million).

“Collectively, these projects are projected to generate 15,358 new jobs for Filipinos from 2020 up to July 2025,” the BoI said.

Meanwhile, from January to July this year, total approved investment pledges from the ASEAN region reached P58.07 billion, according to the agency.

Citing a report from the Bangko Sentral ng Pilipinas, the BoI said there is also a sustained growth in foreign direct investment (FDI) inflows from Southeast Asian countries.

In the first seven months, net FDI from ASEAN reached $95.78 million, with investments from Singapore accounting for $63.61 million and Malaysia accounting for $31.56 million.

Moving forward, the BoI said the country’s participation in the ASEAN Investment Forum in Kuala Lumpur next month will help to further boost investments from the region.

The event is expected to showcase investment-ready projects under the ASEAN Regional Investment Promotion Action Plan 2025-2030 spanning biofuels, carbon capture and storage, medical devices, solar photovoltaic equipment, and regional supply linkages.

High production costs and labor shortages in their own countries are causing ASEAN economies to invest in the Philippines, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

He said the Philippines’ large and young population of over 114 million and leadership in the business process outsourcing sector also make it a viable market for ASEAN investors.

“The Philippines can also be an alternative, lower-cost destination for heavy industries such as shipbuilding, due to being cheaper and having a greater labor supply, such as engineers at a lower cost,” he said.

“It is also the 10th largest market in terms of sales for some of the world’s largest consumer goods companies, making it viable for production facilities, especially for perishable products.”

Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera said the increasing investments from ASEAN countries reflect deepening regional integration and confidence in the Philippines as part of intra-ASEAN supply chains.

“The relocation of production capacities, regional hedging against global uncertainties, and proximity advantages are likely drivers,” he said in a Viber message.

The US is imposing sweeping tariffs on goods coming from its major trading partners, including the Philippines and other ASEAN member states.

Mr. Rivera said ongoing infrastructure development in the Philippines under the “Build Better More” program has also enhanced the country’s attractiveness to regional investors.

“Additionally, the Regional Comprehensive Economic Partnership and ASEAN-Australia-New Zealand Free Trade Area frameworks make it easier for ASEAN firms to view the Philippines as a strategic node for manufacturing, logistics, and services expansion,” he said.

“However, these may be negated by hounding corruption issues.”

Socialized housing remains unaffordable despite expanded 4PH program — study

PHILIPPINE STAR/ BOY SANTOS

By Beatriz Marie D. Cruz, Reporter

POOR FILIPINOS will likely remain unable to afford housing even under the government’s expanded flagship program due to low wages and the lack of job security, according to a research paper published by the University of the Philippines Center for Integrative and Development Studies. 

“While the Expanded 4PH provides diverse housing options, it may still fall short in improving affordability and accessibility for the poorest and is unlikely to address broader structural barriers without broader structural reforms,” according to the study authored by Rafael Vicente V. Dimalanta, Vincent Eugenio, Abigail Roa, and Jay-R Panagsagan.

“The diversification of modalities has yet to resolve the core accessibility and affordability challenges of social housing for the poorest, shaped by broader structural issues such as low wages, precarious work, and weak land governance,” it said.

The study estimated that it would cost a total of P8,324.06 monthly to avail oneself of a housing unit under the expanded Pambansang Pabahay Para sa Pilipino (4PH) Program.

This comes as a mid-range high-rise unit under the 4PH Program that costs P1.5 million will require a monthly amortization of P6,324.06 for the first 10 years, according to government data. The researchers said a 4PH beneficiary may incur further additional expenses related to high-rise living, such as maintenance and operational fees, which could amount to P2,000.

Citing data from the Philippine Statistics Authority, the study noted that Filipino households belonging to the bottom 30% of income deciles — the “primary beneficiaries” of 4PH — earn monthly incomes of only P11,940. (first decile), P15,217.50 (second decile), and P17,369.17 (third decile), respectively.

“Based on these figures, the housing payment for a mid-priced Expanded 4PH vertical unit would consume 59.35% of total household expenditures for the bottom 10% income earners, 49.06% for the bottom 20%, and 43.99% for the bottom 30%,” according to the study.

Many of these poor households work in the informal economy, receiving low or irregular wages while working under a short-term or contractual tenure.

The bottom 30% segment is also linked to informal settler families who cannot afford to enter the formal housing market, it added.

“Given the income and expenditure profiles of the poorest households in the lowest 30% income deciles, it is evident that the combined costs associated with the Expanded 4PH significantly exceed the financial capacity of the program’s priority beneficiaries,” according to the researchers.

Launched in 2022, the 4PH seeks to end the country’s housing backlog by building six million housing units by 2028. However, only 1,900 units have been completed under the program since its launch, Human Settlements and Urban Development Secretary Jose Ramon P. Aliling told congressmen on Monday.

The government has kept a “manageable” goal of building 300,000 houses by 2028, Mr. Aliling said, but noted that it cannot hit the target if the 4PH program itself is not strengthened.

To better support beneficiaries, the expanded 4PH program allowed both vertical and horizontal or subdivision-type housing options.

It also included rental and incremental housing to consider beneficiaries’ financial situation and revived the community mortgage financing program by the Social Housing Finance Corp.

To become a 4PH beneficiary, an individual must be a member of the Home Development Mutual Fund or Pag-IBIG Fund.

However, the study noted that this poses a barrier, especially for informal workers with stagnant and low wages.

“The program’s financing structure and restrictive criteria thus reinforce exclusion undermining its stated goal of prioritizing the poorest who are most in need of housing,” the researchers said.

The study recommended aligning the program’s socialized housing amortization and rent with the financial capacity of the poorest households to ensure that their basic needs are not compromised.

It also cited the need to increase the government’s housing budget and lessen its dependence on the private sector in constructing 4PH units to make them more affordable to poor beneficiaries.

The government must also make its eligibility criteria more flexible for irregular or informal workers, ensure the participation of urban poor groups in planning and implementation processes, and address bureaucratic delays, it said.

“These recommendations should be complemented by strengthened land governance to control speculation and the rapid escalation of land prices, which significantly hinders the government’s ability to make land available for social housing, and eventually undermines the affordability of land for social housing for the poorest.”

Maynilad’s Oct. IPO decision signals investor confidence, analysts say

MAYNILADWATER.COM.PH

By Sheldeen Joy Talavera, Reporter

THE DECISION of Maynilad Water Services, Inc. to proceed with its planned P45.77-billion initial public offering (IPO) in October signals renewed investor confidence in the local capital markets, analysts said.

“Maynilad’s decision to push through with its IPO is a welcome development that signals renewed investor confidence in local capital markets,” Peter Louise D. Garnace, equity research analyst at Unicapital Securities, Inc., told BusinessWorld on Aug. 30.

“We see healthy demand from both institutional and retail investors, viewing it as a defensive play,” he added.

Based on the company’s latest preliminary prospectus, Maynilad has set the offer period from Oct. 16 to Oct. 22. Listing on the Philippine Stock Exchange is targeted for Oct. 30.

Maynilad’s IPO consists of up to 1.66 billion common shares, including up to 24.9 million primary shares and 249.05 million overallotment option shares, priced at up to P20 apiece.

The secondary shares will be sold by the water provider’s principal shareholder Maynilad Water Holding Company, Inc.

Proceeds from the primary offering are allocated for capital expenditures and general corporate purposes. Maynilad will not receive proceeds from the sale of secondary shares.

“As one of the largest IPOs in the local bourse, we see Maynilad’s listing to boost trading activity in a rather anemic market,” Mr. Garnace said.

“The success of Maynilad’s listing could act as a catalyst, potentially unlocking a pipeline of companies waiting for more favorable market conditions.”

Juan Paolo E. Colet, managing director at China Bank Capital Corp., said positive investor interest in Maynilad’s IPO is expected to translate into “healthy demand once the offer has been set.”

“Orders should be particularly strong if the final IPO price implies a dividend yield of around 4.5 to 5%,” Mr. Colet said.

“Maynilad is a defensive stock that should do well across market cycles. It also helps that rival Manila Water’s stock price has been performing well, so many investors have a favorable view of the sector,” he added.

The company moved the listing date of its IPO to no later than end-October from the initial schedule of July 17, citing potential demand from cornerstone investors.

In July, Maynilad Chairman Manuel V. Pangilinan said the company had secured a firm commitment from one of its two intended cornerstone investors to participate in the IPO.

Under the terms of its legislative franchise, Maynilad is required to offer at least 30% of its outstanding capital stock to the public by January 2027.

Maynilad’s IPO will be the second for the year, following Cebu-based fuel retailer Top Line Business Development Corp.’s P732.6-million offering in April.

Pangilinan-led conglomerate Metro Pacific Investments Corp., which holds a majority stake in Maynilad, is one of three Philippine subsidiaries of First Pacific Co. Ltd., alongside Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls.

SMC disburses P471 million from bond proceeds for Bulacan airport

SAN MIGUEL CORP.

SAN MIGUEL CORP. (SMC) has invested P471.12 million from its P20-billion fixed-rate bond issuance in the New Manila International Airport (NMIA) project in Bulacan.

In a disclosure to the stock exchange on Tuesday, the conglomerate said the disbursement represents an additional investment in the airport project.

To date, SMC has released a total of P16.91 billion from the bond proceeds, leaving a balance of P2.82 billion from the net proceeds of the offering.

The bond issue is part of the company’s fundraising program to finance infrastructure projects, including its flagship NMIA, which is targeted to help ease congestion at Ninoy Aquino International Airport.

SMC, through its unit San Miguel Aerocity, Inc., is developing a P740-billion airport project spanning 2,500 hectares in Bulacan. The company said it aims to build a world-class aerotropolis that can accommodate up to 100 million passengers each year.

SMC earlier said that the airport’s commercial opening has been pushed back to 2028 because of construction delays.

In a separate disclosure on Tuesday, SMC said its board had approved the redemption of 223.33 million Subseries “2-F” preferred shares at P75 apiece.

The company said the redemption, approved on Aug. 7, will take effect on Sept. 21, which is an optional redemption date under the terms of the issuance and also marks the 10th anniversary of the securities’ issuance.

“Under the terms and conditions of the offering of the Preferred Shares, the Board of Directors of the Company may redeem the Preferred Shares commencing on the seventh anniversary of the issue date, which is September 21, 2022, and on the last day of any subsequent dividend period thereafter,” SMC said.

Proceeds from the redemption will be paid on Sept. 22, as Sept. 21 falls on a Sunday, to stockholders of record as of Sept. 10.

The company added that the last dividend payment for holders of the Series 2-F preferred shares, with record date Sept. 22, will be paid on Oct. 3.

SMC shares fell by 2.35% at P58.30 apiece on Tuesday. — Alexandria Grace C. Magno

ABC Impact closes initial tranche of investment in Ayala’s AC Health

ACHEALTH.COM.PH

INVESTMENT FIRM ABC Impact Fund II LP has closed its initial tranche investment in the Ayala group’s healthcare arm Ayala Healthcare Investment Holdings, Inc. (AC Health).

ABC Impact finalized its investment by subscribing to 121.09 million common shares and 208.28 million redeemable preferred shares in AC Health, Ayala Corp. said in a disclosure on Tuesday.

“The transaction is aligned with AC Health’s vision of transforming healthcare for every Filipino, by building a seamless and integrated healthcare ecosystem,” it said in a statement.

Singapore-based ABC Impact operates under Temasek Trust Asset Management and is supported by Temasek Trust, Temasek, the Asian Development Bank, and other institutional investors.

The subscription made on Monday is part of ABC Impact’s initial committed investment tranche, giving it an estimated 16% economic interest in the company.

“The investment supports AC Health’s expansion across its core pillars of hospitals, multi-specialty clinics, and retail pharmacies — through a combination of organic initiatives and targeted acquisitions,” Ayala Corp. said.

As part of its growth strategy, AC Health intends to expand its network by 2027 to at least 10 hospitals, 300 clinics, and 1,150 pharmacies, with support from the recent investment.

AC Health, the healthcare unit of Ayala Corp., is structured around two core segments — provider and pharma. Its businesses include Healthway Medical Network, Generika Drugstore, pharmaceutical distributors IE Medica and MedEthix, and the St. Joseph Drug pharmacy chain.

Ayala Corp. shares closed at P543 on Tuesday, down P3 or 0.55%. — Alexandria Grace C. Magno

Vitarich eyes 8% breeder output boost from Davao farm deal

PHILSTAR FILE PHOTO

LISTED poultry integrator Vitarich Corp. (VITA) aims to increase its breeder output by 8% with the P280-million acquisition of breeder farm facilities in Davao del Sur.

In a stock exchange disclosure on Tuesday, Vitarich said its board had approved a memorandum of agreement (MoA) with Broilers Club, Inc. (BCI) and its shareholders.

“After exhaustive discussions in several meetings, the Board of Directors of the Corporation, upon the recommendation of the Organizational and Business Development Committee, approved the terms and the execution of the MoA,” it said.

The deal covers Vitarich’s acquisition of breeder farm facilities — including land, improvements, equipment, 125,000 common shares of stock, and advances of BCI shareholders.

BCI is a private domestic corporation engaged in poultry and egg production, among others, with operations in Davao. The transaction will be subject to a due diligence review, which will begin after the signing of the MoA and must be completed within 90 days from the submission of all documents requested from BCI and its shareholders.

“Should the conditions be fully satisfied and the intended transactions eventually materialize, the above-mentioned facilities will be used as VITA’s breeder farm, while BCI will become a subsidiary of VITA,” it said.

Vitarich said the acquisition is not expected to have any adverse impact on its operations.

“Rather (assuming conditions are met), the transaction is a strategic step to the current breeder farm operations of VITA,” it added.

Vitarich shares closed flat at 55 centavos apiece on Tuesday. — Beatriz Marie D. Cruz

Plays and musicals to watch during the ‘ber’ months

JUST as the year enters the home stretch (and starts the Philippines’ extended Christmas season) the theater scene heats up even more, closing the year with a wide variety of plays and musicals from September to December.

There are new shows, and for those who missed them the first time, some restagings set to fill up theater lovers’ calendars until the end of 2025.

Dear Evan Hansen
Sept. 4 to Oct. 5

GMG Productions presents the Manila run of the UK touring production of Tony Award-winning musical Dear Evan Hansen at The Theatre at Solaire in Parañaque. It tells the story of Evan, an anxious high school student longing for a sense of belonging, and features music by Benj Pasek and Justin Paul and a book by Steven Levenson. It stars Ellis Kirk in the titular role. Tickets are available through TicketWorld.

Kaliwaan
Sept. 5-7

Stages Production Specialists, Inc., with MusicArtes, Inc., presents an adaptation of Betrayal by Harold Pinter. Titled Kaliwaan, it is a Filipino translation by Guelan Varela-Luarca, directed by Loy Arcenas and starring Missy Maramara, Nor Domingo, and Ron Capinding. Its final weekend, an extension from its August run, will be staged at The Mirror Studio Theater, SJG Bldg., 8463 Kalayaan Ave., Makati City. Tickets can be purchased through the Google Form here: https://bit.ly/KaliwaanMNL2025.

Walang Aray
Sept. 5-Oct. 12

Two years after its debut, the original Filipino musical Walang Aray is back at the PETA Theater Center, running until Oct. 12. It is centered on the love story between Julia and Tenyong, set during the Philippine revolution of 1896. Many of the award-winning lead cast from 2023 are returning: Shaira Opsimar and Marynor Madamesila who alternate in the role of Julia, and Gio Gahol and Jon Abella as Tenyong. They are joined by a new cast member, Lance Reblando who also plays the role of Julia. Tickets are available through Ticket2Me.

Alice in Wonderland
Sept. 7-Dec. 14

Repertory Theater for Young Audiences presents the fantastical world of Alice in Wonderland. Based on the book by Lewis Carroll, with music and lyrics by Janet Yates Vogt and Mark Friedman, it is directed by Joy Virata and Cara Barredo. As Alice follows the rabbit into Wonderland, the production highlights audience participation with kids in attendance. It runs at the REP Eastwood Theater in Quezon City. For ticket inquiries and showbuying opportunities, message REP’s pages @repertoryphilippines, call 0962-691-8540 or 0966-905-4013, or e-mail info@repphil.org or sales@repphil.org.

Juan Tamad and Other Ballets
Sept. 12-14

Alice Reyes Dance Philippines (ARDP) brings Juan Tamad and Other Ballets to the Hyundai Hall, Areté, Ateneo de Manila University, Quezon City, for one weekend. The program presents four works that blend classic stories with modern ballet. The titular “Juan Tamad” is directed by Erl Sorilla with music by Toto Sorioso, following the adventures of Juan Tamad and his monkey friend, Matsing. Complementing it are three pieces from ARDP’s repertoire: “Nocturne,” “C’est La Cie,” and “Moon.” Inquiries can be sent through Viber (0967-153-6173) or e-mail (ardancephilippinesinc@gmail.com).

Para Kay B
Sept. 12-28

Based on National Artist Ricky Lee’s bestselling novel of the same name, Para Kay B weaves together five interconnected love stories, as written by Eljay Castro Deldoc and directed by Yong Tapang, Jr. The production initially ran in March and returns to the Doreen Black Box Theater, Ateneo de Manila University, Quezon City, this month. Returning cast members include Ava Santos, Liza Diño, Martha Comia, Sarah Garcia, Via Antonio, AJ Benoza, Esteban Mara, Jay Gonzaga, Aldo Vencilao, Divine Aucina, and Vincent Pajara. Joining the cast are Mario Magallona, Sarina Sasaki, Maria Alilia “Mosang” Bagio, Ingrid Joyce, Phi Palmos, Manok Nellas, Drew Espenocilla, and Air Paz. Tickets are available through Ticket2Me.

Pingkian: Isang Musikal
Sept. 12-Oct. 12

Adjudged the Best Musical at the 2024 Aliw Awards, Tanghalang Pilipino’s Pingkian: Isang Musikal will be restaged this month. The full-length musical follows the journey of Emilio Jacinto (played by Vic Robinson), a young revolutionary who navigates the complexities of leadership in the final years of the Philippine Revolution and the beginning of the Philippine-American War. It stars Vic Robinson as Emilio Jacinto/Pingkian. Also in the cast are Gab Pangilinan, Tex Ordoñez-De Leon, Kakki Teodoro, Paw Castillo, Almond Bolante, Joshua Cadeliña, Marco Viaña. Directed by Jenny Jamora and written by Juan Ekis with music by Ejay Yatco, it will run at the Tanghalang Ignacio Gimenez, CCP Complex, Pasay City. Tickets are available at TicketWorld and Ticket2Me.

Dagitab
Sept. 20-28

Following a debut run in July, Scene Change is bringing back Dagitab, a stage adaptation of the award-winning Cinemalaya film of the same name by Giancarlo Abrahan. Written and directed by Guelan Varela-Luarca, the story examines the longtime marriage of two professors, Issey and Jimmy, who are on the brink of separation. The original cast returns: Agot Isidro, Jojit Lorenzo, Elijah Canlas, and Benedix Ramos. They are joined by Sam Samarita. The limited two-weekend run takes place at the Power Mac Center Spotlight Blackbox Theater in Circuit, Makati. Tickets are available through Ticket2Me.

Shorts & Briefs
Sept. 20-Oct. 5

First-time theater creatives and performers will grace the stage for Eksena PH’s 11th edition of Shorts & Briefs, a theater festival for newbies. This year, the lineup of entries boasts of adult themes: Ang Babae at ang Mangga, Josefino at ang Statwa, The Red Hotel; Reklamasyon Headquarters, Shit, and Warla Arena. The theater festival will run for three weekends, with 2 and 7:30 p.m. shows, at Café Shylo at the Skyway Twin Towers Condominium, 327 Capt. Henry P. Javier St., Pasig. For tickets send inquiries via Eksena PH on Facebook and Instagram.

The Bodyguard The Musical
Sept. 26-Oct. 19

The Bodyguard The Musical is 9 Works Theatrical’s latest production. It is an adaptation of the 2012 stage musical with a book by Alexander Dinelaris, which in turn was based on the 1992 film The Bodyguard with songs by Whitney Houston. Directed by Robbie Guevara, and with musical direction by Daniel Bartolome, it will be the first theater production staged at the brand-new Proscenium Theater in Rockwell, Makati City. Telling the story of a musical superstar and her bodyguard as their relationship develops while she is under threat, the musical features West End stars Christine Allado and Matt Blaker as the leads, alongside Sheena Palad, Elian Santos and Giani Sarita, Tim Yap, John Joven-Uy, Vien King, Jasper Jimenez, CJ Navato, Paji Arceo, and Radha. Tickets are available at TicketWorld.

Anino sa Likod ng Buwan
Oct. 17-Nov. 9

IdeaFirst Live, the theater arm of IdeaFirst Company, will be presenting filmmaker Jun Robles Lana’s award-winning play, Anino sa Likod ng Buwan, which was initially staged 30 years ago and last staged in March this year. This time, it will be performed at the PETA Theater Center in Quezon City. Set in a remote village in the rebel-wracked countryside of the 1990s, it revolves around the relationship of a couple and a soldier. The play is directed by Tuxqs Rutaquio, and stars Martin del Rosario, Elora Españo, and Ross Pesigan. Tickets are available through Ticket2Me.

Dedma twin bill
Oct. 17-26

Theatre Titas is bringing back its twin bill Dedma, last staged in April. It is made up of two plays — Let’s Do Lunch (directed by Maribel Legarda) and The Foxtrot (directed by Paul Alexander Morales) — both penned by Theatre Titas co-founder Chesie Galvez-Cariño. It follows members of Manila’s elite whose beautiful pretenses are mixed with ugly truths. The play runs at the Mirror Studio Theatre 2, with 8 p.m. performances Fridays through Sundays and 3 p.m. matinées on Saturdays and Sundays. Issa Litton, Ash Nicanor, Naths Everett and Mayen Cadd star in Lets Do Lunch while Royce Cabrera and Jackie Lou Blancostar in Foxtrot. Tickets are available through Ticket2Me.

Bar Boys: The Musical
Oct. 24-Nov. 23

The Barefoot Theatre Collaborative will restage last year’s hit Bar Boys: The Musical. This is a new production helmed by Mikko Angeles, and it will run at the Power Mac Center Spotlight Blackbox Theater in Circuit, Makati. The musical follows four friends and aspiring lawyers as they navigate friendship, dreams, and the doubts in between. The cast includes Benedix Ramos, Alex Diaz, Jerom Canlas, Omar Uddin, Sheila Francisco, Juliene Mendoza, Lorenz Martinez, Nor Domingo, Gimbey dela Cruz, Carlon Matobato, Natasha Cabrera, and Gio Gahol. Tickets can be purchased through Ticket2Me or bit.ly/barboystickets.

Shrek The Musical
Oct. 31-Dec. 6

Full House Theater Company’s final production of the year is Shrek The Musical, a Broadway comedy-fantasy musical created especially for the Newport Performing Arts Theater stage. It is based on the DreamWorks Animation film and book by William Steig. The show features the swamp world of Shrek the ogre — played by theater stalwart Jamie Wilson — with a vibrant roster of characters like his best friend Donkey (Topper Fabregas) and spunky love interest Fiona (Krystal Kane). Tickets are available via Ticketworld, the Newport World Resorts Box Office, and Helixpay.

Gregoria Lakambini: A Pinay Pop Musical
Nov. 14-Dec. 14

Tanghalang Pilipino’s second musical based on a hero of the Philippine Revolution is the new production, Gregoria Lakambini: A Pinay Pop Musical. It stars Marynor Madamesila in the titular role of Gregoria de Jesus. Modeled after the sound and energy of P-pop, the musical follows her journey of love and revolution as written by Nicanor Tiongson and Eljay Castro Deldoc, with music by Nica del Rosario and Matthew Chang. It is directed and choreographed by Delphine Buencamino. It will run at the Tanghalang Ignacio Gimenez, CCP Complex, Pasay City. Tickets are available through TicketWorld and Ticket2Me. — Brontë H. Lacsamana

Ayala Land Premier launches 65-storey Makati dev’t for high-end buyers

LAUREAN RESIDENCES — AYALA LAND PREMIER

AYALA LAND PREMIER (ALP), the flagship luxury brand of Ayala Land, Inc. (ALI), is banking on demand in the luxury residential segment with sustainability features for its latest ultra-luxury development in Makati City.

The 65-storey Laurean Residences will rise on a land area of 3,853 square meters (sq.m.). Construction is scheduled for completion by Mar. 31, 2033, according to ALP’s website.

“Conceived for a discerning niche within the luxury market, the development reimagines urban living as both sophisticated and connected — an address that resonates with the rhythm of the city while offering an intimate sanctuary at its heart,” ALP said in a statement.

The development will have 388 units, comprising 72-sq.m. suites, bi-level villas, and two- to four-bedroom units ranging from 127 sq.m. to 402 sq.m.

International design firms HB Design, Joyce Wang Studio, and Landscape Tectonix were engaged to design the project, alongside inputs from local designers, ALP said.

Over half of its exclusive amenities will be managed by Ayala Land Hospitality, the company added.

The project also holds an EDGE (Excellence in Design for Greater Efficiencies) certification, featuring electric vehicle (EV) charging stations and EV-ready parking slots.

“More than a collection of homes, it is an urban sanctuary where timeless architecture, purposeful amenities, and meticulous craftsmanship come together to elevate everyday life,” ALP President Michael Z. Jugo said.

Located along Dela Rosa Street in Barangay San Lorenzo, the property sits at the heart of the Makati Central Business District, near malls, weekend markets, schools, hospitals, and community events.

The Dela Rosa Walkway also provides access to green spaces such as the Ayala Triangle Gardens, Washington Sycip Park, Legazpi Active Park, and Jaime Velasquez Park.

On Tuesday, ALI shares rose by 0.7%, or 20 centavos, to close at P28.70 apiece. — Beatriz Marie D. Cruz

Treasury fully awards reissued bonds after BSP rate reduction

STOCK PHOTO | Image by iiijaoyingiii from Pixabay

By Aaron Michael C. Sy, Reporter

THE GOVERNMENT fully awarded reissued Treasury bonds (T-bonds) on Tuesday at lower yields, as investors placed strong bids after the Bangko Sentral ng Pilipinas’ (BSP) latest policy rate cut and signals that its easing cycle might end soon.

The Bureau of the Treasury (BTr) raised P30 billion as planned from the reissued 10-year bonds, with tenders reaching P66.69 billion — more than double the offer. This brought the outstanding volume for the series to P485.6 billion.

The securities, which have a remaining life of seven years and 13 days, were awarded at an average rate of 5.939%. Accepted yields were 5.9% to 5.95%.

The average rate dropped by 18.9 basis points (bps) from July 8 and was 81.1 bps below the 6.75% coupon. Still, it was slightly higher than secondary market levels — 2.1 bps above the 5.918% yield for the same series and 3.4 bps over the 5.905% rate for seven-year debt as of Sept. 1, based on PHP Bloomberg Valuation Service reference rates.

A trader said demand was solid, with a bid-to-cover ratio of 2.22.

The T-bond’s yield fell from its last auction “likely due to the after-effects of BSP’s rate cut last week, as well as the threat of more rate cuts before the year ends,” a trader said in a text message.

Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., noted that the seven-year bond yield was among the lowest in eight-and-a-half months, reflecting market optimism after the BSP move.

“BSP Governor Remolona gave less dovish signals on a possible one 25-bp BSP rate cut for the rest of 2025 if economic data remained weak, or even no more rate cut for the rest of 2025 if the economic data remained the same,” he said in a Viber message.

He added that expectations of sustained liquidity, benign inflation and possible inclusion of Philippine sovereign bonds in the JPMorgan Global Emerging Market Bond Index might be supporting demand.

Such index inclusion could draw more foreign investor flows into peso-denominated government securities.

The BSP on Thursday delivered its third straight 25-bp cut this year to 5%. Since August 2024, the central bank has slashed benchmark borrowing costs by 150 bps.

BSP Governor Eli M. Remolona, Jr. said the central bank could still implement one more 25-bp cut within the year to support the economy if needed, though this might also mark the end of the easing cycle.

He added that the likelihood of additional moves would depend on economic data in the coming months. The Monetary Board has two remaining meetings scheduled for October and December.

The Treasury aims to raise P220 billion from the domestic market this month — P100 billion in T-bills and P120 billion in T-bonds — to help fund the budget deficit, capped at P1.56 trillion or 5.5% of gross domestic product this year.

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