Yields on term deposits drop on BSP cut hopes

May 8, 2025 | 12:04 am

BSP-building — Bangko Sentral ng Pilipinas main office in Manila — BW FILE PHOTO

TERM DEPOSIT yields ended lower on Wednesday on expectations of further policy easing by the Bangko Sentral ng Pilipinas (BSP) after inflation cooled to an over five-year low last month.

The central bank’s term deposit facility (TDF) attracted bids amounting to P137.272 billion on Wednesday, above the P90 billion placed on the auction block and the P91.654 billion seen a week ago for a P100-billion offer. The BSP made a full P90-billion award of the papers as both tenors were oversubscribed.

Broken down, tenders for the seven-day papers reached P75.514 billion on Wednesday, higher than the P50-billion auctioned off by the central bank and above the P42.526 billion in bids for the same offer volume in the previous week. The central bank fully awarded the one-week papers.

Accepted yields ranged from 5.49% to 5.5575%, a narrower band compared with the 5.455% to 5.6% recorded a week ago. This caused the average rate of the one-week deposits to decline by 2.07 basis points (bps) to 5.5435% from 5.5642% previously.

Meanwhile, bids for the 14-day term deposits stood at P61.758 billion on Wednesday, higher than the P40-billion offering and the P49.128 billion in tenders for the P50 billion placed on the auction block last week. The BSP awarded P40 billion in two-week papers as planned.

Banks asked for rates from 5.5% to 5.625%, slightly lower than the 5.53% to 5.7% margin recorded a week ago. With this, the average rate for the two-week deposits declined by 2.92 bps to 5.5884% from the 5.6176% logged in the prior auction.

The BSP has not auctioned off 28-day term deposits for more than four years to give way to its weekly offerings of securities with the same tenor.

The term deposits and the BSP bills are used by the central bank to mop up excess liquidity in the financial system and to better guide market rates.

TDF yields declined on Wednesday amid dovish signals from the BSP chief following the April inflation data, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The Philippine central bank is open to cutting its key interest rate by a further 75 bps for the rest of the year as inflation continued to ease, according to BSP Governor Eli M. Remolona, Jr., Bloomberg reported.

“On the table, yes,” Mr. Remolona said in a mobile-phone message on Wednesday when asked if it’s possible for the Bangko Sentral ng Pilipinas to reduce the benchmark rate by 75 bps more this year after inflation further slowed in April.

The Monetary Board last month resumed its policy easing cycle after an unexpected pause in February, slashing benchmark borrowing costs by 25 bps to bring the target reverse repurchase rate to 5.5%.

Philippine headline inflation sharply decelerated to an over five-year low of 1.4% in April from 1.8% in March and 3.8% in the same month a year ago. This was within the BSP’s 1.3% to 2.1% forecast for the month and well below the 1.8% median estimate in a BusinessWorld poll of 14 analysts.

For the first four months, the CPI averaged 2%, at the low end of the BSP’s 2-4% annual target. — Aaron Michael C. Sy with Bloomberg

AMD forecasts $1.5-billion revenue hit from US curbs on China chip exports

May 8, 2025 | 12:03 am

Semiconductor chips-electronics — Semiconductor chips are seen on a circuit board of a computer in this illustration picture taken on Feb. 25, 2022. — REUTERS

ADVANCED MICRO DEVICES (AMD) on Tuesday forecast a $1.5-billion hit to revenue this year due to new US curbs on chips, which require the company to obtain a license to ship advanced artificial-intelligence processors to China.

But it issued a second-quarter revenue forecast that topped Wall Street estimates, which analysts attributed to customers buying more chips ahead of tariffs. Its shares were last up about 1% in after-hours trading after rising as much as 6% and falling as much as 3.5%.

Under the Biden and Trump administrations, the US has pursued increasingly aggressive curbs on artificial intelligence (AI) chip exports to China. These controls are aimed at hobbling China’s ability to build advanced AI models and applications that, according to the US, could have national security implications.

AMD Chief Executive Officer Lisa Su said on a conference call on Tuesday that most of the impact from the curbs would affect the second and third quarters this year. Despite the new controls, Ms. Su said she expects AI chip revenue from the company’s data center business to grow this year by “strong double digits.”

“It’s certainly a headwind, but one which we think is well contained given everything else that we have going on,” she said.

In April, AMD said it would record an $800-million charge from the new US tariffs on chip exports to China. On Tuesday, it forecast adjusted gross margin of 43%, which represents an 11 percentage-point drop from the gross margin excluding the charge.

Like AMD, Nvidia has also warned Wall Street that it will now need an export license to China. Nvidia faces a $5.5-billion charge as a result.

China accounts for roughly a quarter of AMD’s total revenue, and the impact of the export controls would shave nearly 5% off the Wall Street forecast for revenue of $31.03 billion per LSEG data.

AMD finance chief Jean Hu said in the conference call following the results that the $1.5-billion revenue hit for 2025 was due to the new round of export controls from April.

“The subtext is hard to miss; big hyperscalers would rather accelerate purchase order dates than risk export‑license roulette once the latest China rules bite,” said Michael Schulman, chief investment officer at Running Point Capital.

“The flip side is that, once those safety‑stock closets are full, Q3 could feel like the morning after a Red Bull binge… keep one eye on backlog burn rates and another on Washington’s next tariff tweet,” he said.

GROWTH DESPITE CHINA
Still, the optimistic forecast shows that demand for AMD’s advanced processors remains strong as they power complex AI systems for Microsoft, Meta Platforms and other customers. These cloud giants recently reinforced hefty spending plans for building AI infrastructure.

On the conference call, Ms. Su said the company had not seen a lot of “tariff-related activity” in the first quarter.

The company expects revenue of about $7.4 billion for the second quarter, plus or minus $300 million, compared with analysts’ average estimate of $7.25 billion.

In February, the company steered away from a practice of giving a specific sales forecast for its AI chips, but Ms. Su had said AMD expects “tens of billions” of dollars in sales “in the next couple of years.”

AMD reported data center sales jumped 57% to $3.7 billion, which topped estimates of $3.62 billion. The company includes much of its AI hardware in its data center segment.

Total revenue jumped a better-than-expected 36% to $7.44 billion. Adjusted profit of 96 cents a share was ahead of estimates by 2 cents a share.

Chip maker Marvell Technology and server maker Super Micro both disappointed investors on Tuesday. Marvell pushed back a planned Investor Day to a later date in calendar 2026, citing the uncertain economy, and Super Micro trimmed its 2025 revenue forecast, adding to concerns about its position in the AI market. Marvell shares were down 4.5% after hours and Super Micro were down 5%. — Reuters

Philippine Labor Force Situation

May 8, 2025 | 12:03 am

THE Philippines’ unemployment rate inched up to 3.9% in March from a month earlier, even as the number of jobless Filipinos fell by the tens of thousands from a month and a year earlier, according to the statistics agency. Read the full story.

BSP set to ease policy further but may stay cautious as Trump jitters linger

May 8, 2025 | 12:03 am

BENIGN INFLATION gives the Bangko Sentral ng Pilipinas (BSP) room to reduce benchmark interest rates further, but it could stay cautious due to the economic uncertainty caused by the United States’ protectionist policies, analysts said.

The slower April inflation print affirms that there is room for further easing, BSP Assistant Governor Zeno R. Abenoja also said on the sidelines of the 58th Asian Development Bank Annual Meeting in Milan, Italy on Wednesday, but the pace and size of rate cuts will still need to be studied.

“The BSP has the monetary space to do additional cuts because, number one, the actual inflation for the first four months of the year is 2% — just at the lower end of the target of 2-4%,” GlobalSource Partners Country Analyst and former BSP Deputy Governor Diwa C. Guinigundo said in a phone interview. “Based on actual first four-month average of 2%, and the next three years’ risk-adjusted inflation forecast, the BSP has the flexibility to do it.”

Mr. Guinigundo said he expects the BSP to cut rates by two to four more times this year.

“However, I’m sure the BSP will be more circumspect, more careful in doing further monetary policy easing for the reason that there is greater uncertainty in the global financial markets and in the global economy,” he said, noting the Trump administration’s evolving tariff, tax and immigration policies.

“All of this could translate into higher inflation and lower growth in the US. And since the US is the biggest economy in the world, chances are many of us will be affected in the process. So, I think the BSP will have to monitor what is happening in other economies and what the central banks are also or will be doing in the process.”

Philippine headline inflation slowed to 1.4% in April from 1.8% in March and 3.8% a year prior. This brought average inflation in the first four months to 2%.

Accounting for risks, the BSP expects inflation to average 2.3% in 2025 and 3.3% in 2026.

The central bank resumed its easing cycle last month with a 25-basis-point (bp) rate cut, bringing the policy rate to 5.5%.

The Monetary Board has four remaining meetings this year, with the next one scheduled for June 19.

BSP Governor Eli M. Remolona, Jr. told Bloomberg on Wednesday that they are open to cutting rates by a further 75 bps this year amid cooling inflation.

“The inflation number in April confirms or reaffirms the analysis that was done in the last meeting, that inflation will continue to be manageable moving forward this year,” Mr. Abenoja told reporters.

“At that time, the Monetary Board mentioned that there’s flexibility to support this shift to a more accommodative monetary policy stance. But perhaps the pace, the timing, and the magnitude, we have to look at the data in each meeting.”

Mr. Abenoja said the low inflation in April was partly due to the normalization of food inflation.

He added that cooling inflation is unlikely to be a signal of slowing consumer spending.

“It may not yet be evident that there is a significant slowdown of demand coming from the external shocks. We don’t think this is yet a reflection of that. It’s more of the supply issues resolving themselves, including for rice,” he added. “We could also be benefiting, including moving forward, from the reduction in international oil prices.”

The first-quarter gross domestic product (GDP) report to be released on May 8 (Thursday) will be a crucial data point for the BSP’s next policy decision, Mr. Abenoja said.

“It will be one of the major indicators that will be analyzed by the Monetary Board. So we will see,” he added. “The Monetary Board can discuss how much of that scope of flexibility can be undertaken in the remaining four meetings for monetary policy.”

INFLATION TO STAY LOW
For his part, Pantheon Macroeconomics Chief Emerging Asia Economist Miguel Chanco said he anticipates at least 75 bps more in cuts from the BSP this year following the April consumer price index (CPI) result as inflation is likely to stay within target for the rest of the year

“I wouldn’t be surprised if they went further with 100 bps, given how subdued inflation has been recently and will likely continue to be going forward,” Mr. Chanco said in an e-mail. “Our base case now is that inflation will hover just below the 2% lower bound of the BSP’s target range for the rest of this year, especially with global oil prices tanking amid the US’ trade war.”

“The real rate of interest in the Philippines is still very elevated as things stand, especially in the wake of the recent declines in inflation, so the Monetary Board has ample room to cut rates without overdoing it.”

Moody’s Analytics economist Sarah Tan likewise said they expect the CPI to stay at the lower bound of the BSP’s 2-4% annual target this year.

“Even if global inflation rises due to supply-chain disruptions stemming from evolving US trade policies, it is unlikely that inflation in the Philippines will exceed the upper limit of the target range,” Ms. Tan said.

“Continued progress on the inflation front will create room for further monetary policy easing over the remainder of the year. We anticipate at least one more 25-basis-point rate cut in the second half of 2025. A lower policy rate would help ease the financial burden on households and provide some relief to the domestic economy, offsetting the negative effects of a weakening trade environment as US tariffs increase,” she added.

Meanwhile, Ruben Carlo O. Asuncion, chief economist at Union Bank of the Philippines, Inc. (UnionBank), said they expect inflation to bottom out before accelerating anew by August amid the typhoon season.

Still, UnionBank expects the CPI to remain within target this year and next.

Mr. Guinigundo added that upside price risks could come from potential second-round effects like transport fare and wage hikes.

“Upside risks to inflation remain… At present, the low inflation, low oil prices and strong peso gives the BSP leeway to cut,” Jonathan L. Ravelas, senior adviser at Reyes Tacandong & Co., said in a Viber message. — Aubrey Rose A. Inosante and Luisa Maria Jacinta C. Jocson

Bilibid or not in Mindoro

May 8, 2025 | 12:03 am

middle-aged-man-spending-time-jail — FREEPIK

About a year ago, the Department of Justice (DoJ) formed a group to take the lead in constructing new prisons for people convicted of heinous crimes. This was about two years after a law was passed by Congress in 2022 for the construction of at least three new maximum-security prisons around the country.

This is considering that the New Bilibid Prison in Muntinlupa needs upgrading since it was built by the Philippine Commonwealth government in 1940 and is now 85 years old. Prior to this, convicts went to the Old Bilibid Prison or Bilibid Viejo, which was built by the Spanish Colonial Government in the 1860s. Bilibid Viejo is still in use today as the City Jail of Manila.

Just this week, US President Donald Trump ordered US officials to rebuild and enlarge Alcatraz prison island in California, which was built in the 1934 but was shut down in 1963 due to high operating costs. President Trump cited the need for a new prison to “house America’s most ruthless and violent offenders.”

To an extent, the Philippine government had something similar to Alcatraz in mind. With Republic Act No. 11928, or the “Separate Facility for Heinous Crimes Act,” the government is now building at least one high security jail each in Luzon, Visayas, and Mindanao to hold high-level offenders or those sentenced to life imprisonment.

The law provides that the new facility will host those convicted of treason; piracy in general and mutiny on the high seas and in Philippine waters; qualified piracy; qualified bribery; parricide; murder; infanticide; kidnapping and serious illegal detention; robbery with violence against or intimidation of persons; destructive arson; rape; human trafficking; and illegal drugs trafficking.

The law also provides that a new state-of-the-art jail will be built “in a suitable location to be determined by the Secretary of Justice, away from the general population and other PDLs [Persons Deprived of Liberty] and preferably within a military establishment or on an island separate from the mainland… to ensure that there is no unwarranted contact or communication from outside of the penal institution.”

Given these requirements, I am surprised that the government decided on Sablayan, Occidental Mindoro as the site for the first of three facilities to be built. While there is an existing penal farm in the area, frankly, I feel Sablayan is not isolated enough to hold those convicted of heinous crimes.

The original Sablayan Prison and Penal Farm was established in 1954 on the western side of Mindoro island. But, the prison has been undergoing improvements lately to also host a super maximum-security facility. Its redevelopment will finish by 2028, and by then, it will have one of three new jails to hold high-level offenders.

Since late 2024, about 300 inmates from Muntinlupa have already been transferred to Sablayan. The government wants all convicts in drug-related cases to be housed in a single high-security facility. The new high security prison, I believe, will be built adjacent to the existing facility.

Bidding for the second phase of the Sablayan project, with a budget of P300 million, was scheduled to be held last January. The government is looking for a design and build contractor to undertake the construction. The project should be completed within a year from the release of the notice to proceed.

The project will include a 3,000 square meter two-story dormitory that will house about 500 inmates. Also to be built around the dormitory is a three-meter-high concrete perimeter fence to cover a 50-hectare area. To date, however, it remains uncertain if the bidding last January was successful.

I doubt very much if there are local contractors specializing in prison construction. I guess we can expect the likes of Megawide, DMCI, San Miguel Corp., EEI, and other big contractors to have bid for the project. The bid is expected to be awarded to a winning contractor within this month.

My concern with Sablayan is that Occidental Mindoro is not exactly isolated. Sablayan town is a first-class municipality with a population of about 94,000 people (as of the 2020 census). A map of the area will show that the prison is just around 16 kilometers from the town center on the island’s western coast. About 10 kilometers south of the prison is the Pasugui Sub-Prison. And behind the Sablayan penal farm are Mt. Siburan, Mt. Baco, and the Iglit-Baco National Park.

I believe that any maximum-security prison should be some distance away from the general population and other prisons, maybe at least 25 kilometers away from any town with a population of more than 10,000. Mindoro, while an island, is populated by about 1.5 million people.

A maximum-security prison should also have controlled access. In Sablayan’s case, the penal farm is along the Mindoro West Coastal Road. Also, the Sablayan Penal Colony is about 17,000 hectares in size, which makes it difficult to secure. In comparison, Bilibid in Muntinlupa is only 375 hectares.

In my opinion, a maximum-security prison is preferably located within a military camp or on a small island under military control with restricted access. An island penitentiary is still ideal, like Alcatraz, on any of the uninhabited small islands in Manila Bay or off the coasts of Cavite, Zambales, Bataan, Palawan, or Quezon.

These include Carabao Island in Cavite, near Corregidor. I believe it is a former military installation and is presently uninhabited. It is also naturally isolated, but still within logistical reach of Metro Manila or Cavite. The same goes for the smaller Limbones Island, at the mouth of Manila Bay near the West Philippine Sea.

A solitary island prison is ideal if the government’s intent is to build specialized prisons to securely detain the most dangerous offenders, and to isolate them from other inmates so as limit their influence within the general prison population and curb illicit activities such as drug trafficking and organized crime.

Marvin Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippine Press Council

matort@yahoo.com

Ancient Cuban flatbread makes comeback as economic crisis bites

May 8, 2025 | 12:03 am

HAVANA — A bustling restaurant in old Havana offers diners a blast from the distant past — small circular flatbreads made from ground yucca served alone or topped with any combination of onion, tomato, pork, and garlic.

The dish, known locally as casabe, has been around for over a thousand years, historians said. More recently, it has mostly been relegated to field hands and Cuban country outposts.

Now it may be making a comeback.

Cuba’s dire economic crisis has vastly reduced the import and production of such basics as wheat flour, sugar, and salt.

This has prompted some to give the simple flatbread another look. Its only ingredient is locally grown yucca root, also known as cassava.

“In a time of food crisis like the one we’re currently experiencing, we believe cassava bread can help,” said Yudisley Cruz, co-founder of Yucasabi, a small business and restaurant that promotes yucca-based products.

Her small restaurant in touristy old Havana sells a single casabe for 15 pesos (4 cents), making it nutritious, delicious and affordable for both tourists and locals alike, she said.

Ms. Cruz’s restaurant — the only one in Cuba dedicated exclusively to yucca — is trying to popularize the flatbread in urban areas.

But in the countryside, peddlers on foot, bike, and moto-taxi sell casabe at even lower prices, a rare foodstuff nearly everyone can afford.

Its near universal appeal, simplicity, and cultural roots — it was first cooked on hot rocks by the indigenous Taíno people in Cuba and elsewhere in the Caribbean — prompted the United Nations last year to add the food to its intangible cultural heritage of humanity list.

Yucasabi, which features paintings of Taínos in Cuba’s lush countryside on its walls, has given the ancient bread a modern spin, in hopes of attracting a new and larger clientele.

“Casabe from Cuba, 100% artisanal, vegan, zero gluten,” reads its advertising on social media.

Simplicity, however, remains the flatbread’s top selling point, says Julio César Núñez, an 82-year-old traditional casabe producer who lives outside Havana.

Mr. Núñez oversees the harvest, peeling, drying, grinding of the yucca root. That is formed into tortilla-like discs and cooked on sheet metal over flames.

“Anyone who takes the time to learn can do it,” he said. — Reuters

D&L Q1 net income rises 10% on strong exports

May 8, 2025 | 12:03 am

LISTED D&L Industries, Inc. grew its first-quarter net income by 10% to P681 million from P618 million a year earlier, driven by stronger exports and the continued ramp-up of its Batangas plant operations.

Sales during the first quarter rose by 62% to P14.27 billion from P8.83 billion a year ago, the specialty food ingredients and oleochemicals producer said in a regulatory filing on Wednesday.

Export sales, which accounted for 34% of total sales, surged by 69% to P4.8 billion on higher volume. The company’s Batangas plant increased its net income by 35% quarter on quarter to P333 million, led by orders from both local and export customers.

“The year started with strong momentum. However, the increasing global uncertainties have led to a noticeable slowdown and dampening of global business sentiment,” D&L President and Chief Executive Officer Alvin D. Lao said in a separate media briefing late Tuesday.

According to Mr. Lao, there has been some hesitation among its United States customers amid uncertainties.

However, he said the US market accounts for only about 3% of D&L’s total revenue.

“Nonetheless, the Philippines may be one of the least affected countries given its import-heavy trade balance. In addition, the lower proposed reciprocal tariff for the Philippines versus its neighboring countries may put the Philippines in an advantageous position,” he said.

Total volume increased by 33%, as high-margin specialty products (HMSP) grew by 36% and commodities rose by 30%.

“The buoyant volume growth was driven by a combination of the strong exports, new customer wins, market share grab, and positive regulatory development with the increase in mandated biodiesel blend from 2% to 3% starting Oct. 1, 2024,” D&L said.

However, the growth was tempered by the increase in commodity prices such as coconut oil, which saw a 74% average increase for the quarter amid tight supply due to the effects of El Niño last year.

Among segments, the food ingredients division posted a 33% volume growth, led by HMSP and commodities.

Chemrez Technologies, Inc. recorded a 27% increase in earnings, driven by its biodiesel division following the higher biodiesel blend.

The specialty plastics division saw a 5% drop in earnings as tariff-related uncertainties hampered business sentiment in the global automotive industry.

The consumer products original design manufacturer division recorded a 30% decline in net income on lower margins, though volume increased by 23% amid easing inflation.

“While volatility is likely to persist in the near term, we remain unfazed and continue to focus on building resiliency and long-term growth strategies,” Mr. Lao said.

“We believe that with our product portfolio, the majority of which cater to basic and essential industries, we will continue to grow and be relevant in an ever-changing business environment and world trade order,” he added.

D&L shares rose by 1.05% or six centavos to P5.76 per share on Wednesday. — Revin Mikhael D. Ochave

Microsoft launches lower-priced AI laptops with Qualcomm chips

May 8, 2025 | 12:02 am

Surface-Pro-12-inch-Violet-Hero — BLOGS.WINDOWS.COM

SAN FRANCISCO — Microsoft on Tuesday said it will release a new laptop and tablet with chips from Qualcomm at lower prices than before, aiming to get new artificial intelligence (AI) features to a broader set of customers.

The newest Surface 13-inch laptop and Surface Pro 12-inch tablet will go on sale on May 20, with the laptop starting at $899 and the tablet starting at $799.

Both will feature Qualcomm’s Snapdragon X Plus chips, and they will be priced slightly between competing products from Apple such as its MacBook Air, which starts at $999 and its iPads, where Air Pro models start at $649 and $999.

But Microsoft’s new offerings will be its lowest-priced yet with support for what it calls “Copilot+” features that it introduced last year. That bundle of features includes things like the ability to ask how to change the computer’s settings as a natural language question rather than sifting through settings menus or the ability to ask for an AI-generated first draft of a word document.

Microsoft has set performance computing chip requirements for the new Copilot+ label, which has meant that most of those AI features are only available on machines that cost $1,000 or more.

Pavan Davuluri, corporate vice president of Windows and Devices at Microsoft, said the new Surface devices are aimed at getting those features to a broader set of users, especially students or young professionals at the start of their careers.

“We think these new Surface Pro and laptops are for a set of customers for whom affordability is going to be important,” Mr. Davuluri told reporters during a press briefing on April 28. — Reuters

Cooling inflation to drive demand for loans

May 8, 2025 | 12:02 am

BANK of the Philippine Islands President and Chief Executive Officer Jose Teodoro K. Limcaoco

BANK of the Philippine Islands (BPI) expects slower inflation to help drive loan demand as it gives the Bangko Sentral ng Pilipinas (BSP) room to cut benchmark borrowing costs further.

“They reported inflation (on Tuesday) at 1.4%. So, that really provides the central bank room to ease monetary policy, which will make consumers a little bit more confident and give corporates the reasons to borrow and to continue to invest,” BPI President and Chief Executive Officer Jose Teodoro K. Limcaoco said in an interview aired on Money Talks with Cathy Yang on One News on Wednesday.

Mr. Limcaoco said consumer confidence remains “very high” even amid the uncertainty caused by the Trump administration’s tariffs and their potential impact on global trade.

“So, it’s looking good for the Philippine economy. We should grow by maybe 5.5% this year given that we have the elections also. And that should be good for the banks.”

Philippine headline inflation eased to 1.4% in April, the slowest pace since November 2019, from 1.8% in March and 3.8% in the same month a year ago. For the first four months, the consumer price index (CPI) averaged 2%, at the low end of the BSP’s 2-4% annual target.

On Wednesday, BSP Governor Eli M. Remolona, Jr. told Bloomberg that the central bank is open to cutting key rates by 75 basis points (bps) more this year following the April CPI result.

The Monetary Board last month resumed its easing cycle after an unexpected pause in February, cutting benchmark rates by 25 bps to bring the policy rate to 5.5%. Its next meeting is on June 19.

“We believe that the Bangko Sentral has room to lower rates, which means there’s a likelihood that they will be cutting policy rates this June — if not this June, then certainly by the next meeting — given the very controlled inflation and the very strong Philippine peso versus the dollar,” Mr. Limcaoco said.

“For BPI, that means time deposit rates should come down in the immediate term, which will help us preserve our net interest margins. But over the long term, loan rates and asset yields will come up, which will shrink our net interest margins over the long run. But all in all, it looks good for credit quality. It looks good for net interest margins. And for the banks, you just need a very disciplined approach to preserving your margins and raising funds.”

Mr. Limcaoco said BPI aims to grow its loan book by 11-12% this year, with the bank expecting its consumer portfolio by about 20% to make up close to 30% of its total loans from the current 28.8% share.

“We’re making progress as a bank to shift our book towards the consumer sector and be more inclusive as a financial institution,” he said.

He added that there could be some asset quality risks as they continue to increase lending to the consumer sector and grow their customer base, like other Philippine banks, but the overall impact is “very manageable.”

BPI’s net income increased by 9% year on year to P16.6 billion in the first quarter.

Its shares closed at P138 apiece on Wednesday, down by P2 or 1.43% from the previous day. — A.M.C. Sy

Business isn’t just about growth — Do you have a scaling mindset?

May 8, 2025 | 12:02 am

If you’ve ever bought anything from Laz Mall or Shopee Mall — and who hasn’t? — you’ve bought from Steve Sy’s Great Deals. Unknown to most, the tech and practical knowhow that moves e-commerce in the Philippines comes from this entrepreneur’s company. Great Deals is involved in everything about e-commerce, from content, online shop creation and management, to warehousing and fulfillment, to analytics. In fact, the reach of Great Deals is so vast that it was recognized by the Financial Times as the fastest growing company in the Asia-Pacific region.

Recently, I had the good fortune to share a microphone with Steve Sy on my podcast. In our conversation, the founder and CEO of Great Deals eCommerce uncovered many of the secrets to his success as an entrepreneur. For Mr. Sy, business isn’t just about growth; it’s about having a scaling mindset.

How does one achieve a scaling mindset? He begins by riffing on a quote by the business speaker Simon Sinek. “Business is a game of endless possibilities,” he says. And harnessing the infinite possibilities of business is at the very center of the scaling mindset that Mr. Sy talks about. Read on, to learn more.

THE 4 Ps
Steve Sy is known as an industry disruptor. He revolutionized online retail when Lazada was starting to explode in 2012. But more than that, he is a business enabler who has helped countless entrepreneurs as well as big brands set up shop online.

What’s even more remarkable about this disruptor and enabler is that he continues to give to the business community through education and learning. You can check out his LinkedIn or his educational business book, Great Debt to Great Deals, which traces his history of being mired in debt to building a company worth over a billion pesos. In this book, he talks about the four Ps: Profitability, Purpose, People, and Planet.

Going back to basics is crucial for him, and he encourages entrepreneurs to examine the four Ps.

“People ask me, what’s the main mission of doing business?” he says. “So sabi ko (I said), there should be four Ps. Number one, the first P, is it needs to be profitable. [Business] needs to be profitable so that you will have sustainability. Number two is purpose.”

He believes that profitability and purpose are linked.

“Why did I put profitability first?” he asks. “Because even though you have a very good purpose, if you’re not profitable, it’s not going to be a business. So, profit can sustain our purpose. Monetary profit is the gas that brings us to our mission.”

For Mr. Sy, truly successful businesses are driven by more than just profit. They transcend functional purpose to embrace their mission.

He gives Great Deals as an example, saying, “Our mission is to uplift Filipino lives through the digital economy.” Segueing into the third and fourth P, he continues, “Number three is to be able to bless our people. And then last but not the least, the fourth P is our planet. Assist the planet, conserve our resources.”

As an example of the four Ps in action, Mr. Sy recalls how many companies like Google and Facebook were downsizing in 2022 and how Great Deals was being influenced by the board to do the same. But instead, they chose to retain their people.

He says, “We made this decision because we want to bless our people… Sometimes you don’t really need to maximize profit, but to optimize that. That’s why we have a lot of benefits for our employees in the company because we want to build the right culture also.”

GROWTH MINDSET VS SCALING MINDSET
With the basics in place, Steve Sy recommends pursuing a scaling mindset instead of a growth mindset.

“There’s a difference between a growth mindset and a scaling mindset,” he says. “Kasi growth mindset, ang sagot lang dyan, dagdag tayo ng tao. [Because with a growth mindset, the only answer is, let’s add more people.] Because when you’re growing your revenue, and sumasabay ang expense mo, that’s growth. [Because when you’re growing revenue, and your expenses are keeping pace, that’s growth.] But there’s no scale in it.”

Scaling is sustainable growth, and it has no limits.

Again, he gives Great Deals as an example. “Last year, we had 38% growth in our company,” he says. “But our OPEX [operating expense] stayed flat. So, it means we’re operating efficiently and scaling up.”

To achieve this, the company automated many of its processes.

“There are a lot of things that you can automate so that you don’t need to add additional cost to your operating expense,” he explains. “So with the use of AI, we are able to reduce 60% of chat support because we’ve used AI in our company. In a sense, even if we grew our company another 200%, we can have the same chat support.”

Balancing the four Ps and a scaling mindset, he says, “And that’s where the blended culture has to come in — the blended culture that you’re using AI and you yourself as the talent.”

In parting, Mr. Sy challenges entrepreneurs, saying, “Now, it’s for the entrepreneurs to look at those opportunities and find those pain points on how they can offer their services or their products so that you can build a very good business.”

RJ Ledesma (www.rjledesma.com) is a Hall of Fame Awardee for Best Male Host at the Aliw Awards, a multi-awarded serial entrepreneur, motivational speaker, and business mentor, podcaster, an Honorary Consul, and editor-in-chief of The Business Manual. Mr. Ledesma can be found on LinkedIn, Facebook and Instagram. The RJ Ledesma Podcast is available on Facebook, Spotify, Google and Apple Podcasts. Are there entrepreneurs you want Mr. Ledesma to interview? Let him know at ledesma.rj@gmail.com.

Dining In/Out (05/08/25)

May 8, 2025 | 12:02 am

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Elbert’s Collective is closing

THE restaurant Elbert’s Collective in Makati’s Salcedo Village has announced on a Facebook post that it will be closing down by the end of the month. “We are very sad, but we are also very grateful to have been given the opportunity to serve you,” the post says. The restaurant is found at the V Corporate Center, 125 LP Leviste St., Salcedo Village, Makati.

Unwind at Solaire Resort North’s Skybar

IN ANTICIPATION of Solaire Resort North’s first anniversary, the Skybar is introducing several new offerings with “Dusk and Drinks,” a happy hour inspired by the city skyline and the hues of the sunset that are visible from the bar on the 38^th floor. For P1,688 per person, guests get unlimited tapas, wines, cocktails, beers, and non-alcoholic beverages for two hours. It is available Monday to Saturday from 4 to 8 p.m. Midweek calls for celebration with “Ladies’ Night,” Skybar’s newest indulgence on Wednesdays from 8 p.m. to midnight. Enjoy an exclusive buy-one-get-one offer on Skybar’s signature cocktails by signing up for Solaire Rewards Lifestyle. Groups of five ladies will receive a complimentary bottle of Champagne Nicolas Feuillatte when each guest orders any alcoholic beverage. With skyline views as the backdrop, the bar comes alive with music each night, from live jazz and nostalgic retro hits to the electrifying beats of DJ sets by the industry’s finest. For more details, reservations, or inquiries, visit the Solaire Resort North website at sn.solaireresort.com, call 8888-8888, or e-mail sn.reservations@solaireresort.com.

Ascott menu to go 30% plant-based by 2027

HOSPITALITY group The Ascott Limited Philippines has committed to transforming 30% of its menu offerings to plant-based options by 2027, becoming the first in the country’s hospitality sector to formalize such a comprehensive dining initiative. This sustainability commitment begins with a 20% transformation this year across Ascott’s entire portfolio of over 17 properties nationwide. “This commitment to expand our plant-based offerings to 30% of our menus by 2027 reflects our dedication to sustainable hospitality and meeting evolving guest preferences,” said Caleb Han, food and beverage director of The Ascott Limited Philippines in a press release. “As part of our Ascott CARES framework, we recognize the significant environmental benefits of plant-based foods and are proud to lead this transition in the Philippine market. This initiative complements our broader sustainability goals and reinforces our position as an industry leader in responsible hospitality practices.” This commitment builds upon The Ascott Limited Philippines’ portfolio of sustainability initiatives, particularly through its Slow Food Community Linkages program at Citadines Bacolod City. Since October 2024, the property has forged partnerships with local producers, from coffee farmers and Criollo cacao growers to indigenous fruit cultivators. These collaborations have not only spotlighted local ingredients like rare bugnay wild berries and naturally grown coconuts but have also transformed them into signature culinary experiences — from specialty coffee offerings featuring local beans to creative plant-focused dishes using regionally sourced produce.

Dumplings mark Solaire’s Dragon Boat Fest

FEAST on gourmet rice dumplings at Red Lantern in Solaire Resort Entertainment City, exclusively crafted to mark the Dragon Boat Festival on May 31. Choose from six unique flavors of rice dumplings are now available for guests who are dining in or for gifting as packaged sets. There are three flavors of sweet sticky rice dumplings, filled with aged tangerine peel and red bean, honey dates, or a blend of black rice and eight treasure beans (red bean, mung bean, black eye bean, peanut, green pea, barley, and wheat). For a savory option, there are rice dumplings filled with 14-head abalone, dried scallop, mung bean, salted egg yolk, barbecue pork, and shiitake mushrooms; filled with braised pork belly, preserved green mustard, oyster sauce; and one filled with salted egg yolk and Chinese-preserved pork. The Dragon Boat Festival, observed on the fifth day of the fifth lunar month, is a remembrance of Qu Yuan, a Chinese poet and minister from the Zhou Dynasty Warring States period. In addition to exchanging rice dumplings, this tradition includes dragon boat races, wearing perfume pouches to protect oneself from illnesses, drinking Realgar wine for health, and tying five-color silk threads around the wrist to drive away bad spirits. Solaire Resort Entertainment City’s artisanal rice dumplings can be purchased at Red Lantern until May 31. For more information, visit https://sec.solaireresort.com/offers/dining/red-lantern-flavors-that-stick or call 8888-8888 for orders.

IMI turns profitable in Q1 with $3.3-million income

May 8, 2025 | 12:02 am

AYALA-LED chip manufacturer Integrated Micro-Electronics, Inc. (IMI) turned profitable in the first quarter (Q1), posting a $3.3-million net income compared to a $3.7-million net loss last year, driven by cost rationalization efforts.

First-quarter revenue dropped by 14% to $248 million, with its core businesses accounting for $220 million, amid softness in the electronics industry, IMI said in a regulatory filing on Wednesday.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) more than doubled to $16.1 million from $7 million, led by improved cost structures within the group.

“The cost rationalization program we implemented has been instrumental in this quarter’s positive financial results,” IMI Chief Executive Officer Louis Sylvester Hughes said.

“We successfully managed a 14% decrease in core fixed overhead and selling, general, and administrative (SG&A) expenses compared to the first quarter of last year through the consolidation of sites and decentralizing functions back into our operating facilities,” he added.

IMI said it spent $1.6 million in capital expenditure during the first quarter.

“A similar restructuring approach was taken in VIA, yielding an additional $6.3 million of cost reduction, mainly from SG&A. The euro’s appreciation against the dollar also contributed positively to the bottom line, with a group foreign exchange gain of $1.4 million,” IMI said.

Meanwhile, Mr. Hughes said IMI is seeing opportunities despite tariff-related uncertainties.

“Our broad geographic footprint enables us to work closely with customers and adapt supply chains to mitigate these pressures. We remain focused on securing new business and further improving profitability as market conditions stabilize,” Mr. Hughes said.

“With a more agile organization in place, we are better equipped to adapt to the dynamic market environment and further improve on the 6.5% EBITDA we achieved this quarter,” he added.

IMI shares rose by 8.57% or 18 centavos to P2.28 apiece on Wednesday. — Revin Mikhael D. Ochave