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Nuclear energy for sustained growth

This week I am attending two important energy fora. First is the “Power 101: Energy Security in times of La Niña and El Niño” seminar for media on April 21 and 22 at the Seda Hotel BGC, Taguig, which is sponsored by Aboitiz Power (AP) and the Department of Energy (DoE). The second is the “Giga Summit 2025: The Fusion of Power and Intelligence,” on April 24 and 25 at The Fifth at Rockwell Center, Makati, and sponsored by the Meralco Power Academy. It will feature over 30 local and international experts on nuclear power and AI.

On Day 1 of Power 101, Suiee Suarez, AP Vice-President for Corporate Affairs gave a welcome message with a realistic point of view, noting that “our energy supply is subject to stresses due to variability of weather, seasons and climate cycles; demand also varies but it is growing with our modern lifestyles and desire for more prosperous lives, so we need an energy system that can meet this rising demand despite the variability.”

In the DoE presentation, Mark Christian Marollano, Supervising Science Research Specialist at the Electric Power Industry Management Bureau (EPIMB), highlighted that energy security and stability should be secured during both El Niño and La Niña cycles. Continuous coordination and facilitation among the DoE, the Energy Regulatory Commission (ERC), the National Grid Corp. of the Philippines (NGCP), the Independent Electricity Market Operator of the Philippines (IEMOP), and other government agencies to bring more power plants, both thermal and weather-based like hydro.

The “Giga Summit” looks very interesting to me. On Day 1, four key messages are to be given by DoE Secretary Raphael PM Lotilla, PhilAtom sponsor Sen. Alan Peter Cayetano, ERC Chairperson Monalisa Dimalanta, and Meralco Chairman and CEO Manuel V. Pangilinan.

Topics on Day 1 are mostly about nuclear energy, like “France’s Flamanville 3, the biggest nuclear reactor in the world” by Alice Radjagobal of Electricite de France (EDF). Then there will be a panel on “Policy and regulatory blueprints to enable a nuclear-powered future” with Brian Fehrenbach of the Organization of Canadian Nuclear Industries (OCNI) and Dr. Kirsten Cutler of the US State Department. Moderators are Dr. Carlo Arcilla of the Philippine Nuclear Research Institute (PNRI) and Dr. Ike Dimayuga of the Canadian Nuclear Laboratories.

There will be another panel, “Nuclear power: the Operator’s perspective” with Brian Fehrenbach of OCNI, Yuzuru Yoshioka of the Japan Electric Power Information Center, Brian Meadors of Excel Services Corp., Victor Barrado Campos of EDF, and Jehyun Yoon of the Korea Hydro & Nuclear Power Corp. The moderators are also Dr. Arcilla and Dr. Dimayuga.

The last panel for Day 1 is “Strengthening nuclear partnerships for energy security in ASEAN countries” by James Voss, ASEAN Director of Excel Services Corp.

I reviewed some numbers on nuclear generation, derived the kWh per capita production, and there are some interesting results.

One, the US and Canada have rising overall nuclear generation but their nuclear per capita production is falling.

Two, most European nations are slowly moving away from nuclear power, both in total and per capita generation. These include France, Germany, the UK, Belgium, Spain, Sweden. Joining then in this trend are Japan and Taiwan.

Three, a few European nations are increasing their nuclear use like Russia and the Czech Republic. In Asia, China and South Korea are following this trend (see Table 1), as are India, Pakistan, and the United Arab Emirates.

Comparing the nuclear generation kWh per capita with GDP per capita at Purchasing Power Parity (PPP) values, the results are also interesting.

One, countries that have slightly declining nuclear per capita generation over two decades (lower than -25%) also have modest increases in GDP per capita, like the US and Canada.

Two, countries with a steep decline in nuclear per capita generation (more than -25%) also have a modest increase in GDP per capita, like Germany, the UK, Belgium, and Japan. An exception is Taiwan, which has a high expansion in GDP per capita because its overall power generation increased big time. It saw a reduction in nuclear power but increased its use of coal and gas.

Three, countries with rising nuclear power per capita have had a huge expansion in GDP per capita, namely Russia, the Czech Republic, China, and South Korea. China’s increases are phenomenal, outlier high (see Table 2).

There are many factors for countries’ fast or slow growth and their level of power generation is only one of them, but it is an important factor, including nuclear power.

I hope that the new partnership in LNG development by three big power companies — AP, Meralco Power Gen, and San Miguel Global Power — will be extended into developing big conventional nuclear plants. So far Meralco is far ahead in its nuclear power preparations, thanks to the leadership of Mr. Pangilinan.

Sustaining growth, continued increase in our per capita income yearly, the endless pursuit of human prosperity and modernity — these are fair goals and we must provide ample and abundant energy supplies to support these goals.

 

Bienvenido S. Oplas, Jr. is the president of Bienvenido S. Oplas, Jr. Research Consultancy Services, and Minimal Government Thinkers. He is an international fellow of the Tholos Foundation.

minimalgovernment@gmail.com

Former RCBC, DBP president Gil Buenaventura passes away

Former Rizal Commercial Banking Corp. President Gil A. Buenaventura — RIZAL COMMERCIAL BANKING CORP.

FORMER Rizal Commercial Banking Corp. (RCBC) and Development Bank of the Philippines President and Chief Executive Officer (CEO) Gil A. Buenaventura has died.

“It is with deep sorrow that the bank announces the passing of Mr. Gil A. Buenaventura, our director, today, April 21, 2025. Mr. Buenaventura was a valuable part of the organization being a director of the bank since 2016,” RCBC said in a disclosure to the stock exchange on Monday.

Mr. Buenaventura served as the listed bank’s president and CEO from 2016 to 2019 and stayed as a member of its board of directors after his retirement.

Prior to his stint at RCBC, he was state-run bank DBP’s president and CEO from 2012 to 2016.

He also held various leadership posts at other banks, including Bank of the Philippine Islands and Citibank NA.

Mr. Buenaventura graduated with an economics degree from the University of San Francisco in 1973 and received his Master of Business Administration in Finance degree from the University of Wisconsin in 1975. — Aaron Michael C. Sy

One Timog Center slated for Q4 2025 completion

PROPERTY developer Seven Generations Realty Corp. expects to complete its new office development in Quezon City, One Timog Center, by the fourth quarter.

The 14-storey building is located along Timog Avenue, Barangay South Triangle, Quezon City. It has a gross floor area of 14,593.78 square meters (sq.m.) and a floor-to-ceiling clearance of 2.70 meters.

“As a premier commercial landmark, it is set to elevate Quezon City’s real estate landscape, offering businesses a prestigious location with top-tier amenities,” PRIME Philippines, which has been appointed as the exclusive leasing agent for One Timog Center, said in an e-mail to BusinessWorld.

The office development features three elevators, 132 parking slots, and full back-up power. Ground-floor units are available in 72 sq.m., 175 sq.m., and 342 sq.m. configurations, while each floor from the sixth to the tenth offers 1,000 sq.m. of leasable space.

Other key features include a column-free layout, driver’s quarters, meeting and function rooms, an ensuite room, and 24-hour security.

One Timog Center offers flexible, spacious layouts designed to promote a balanced lifestyle, supporting operational efficiency and social interaction, according to the company.

“With its forward-thinking design, One Timog Center is more than just a workplace — it’s a destination for professionals looking for a location that fosters creativity and collaboration,” PRIME Philippines said.

Timog Avenue, a prominent entertainment and business district in Quezon City, makes the building ideal for tenants such as corporate offices, creative agencies, technology startups, IT-BPO firms, and government institutions, according to the real estate consultant.

“This ambitious project signals a new era in Quezon City’s commercial real estate landscape, offering a place where modern businesses can thrive in a dynamic, interconnected environment,” PRIME Philippines said. — Beatriz Marie D. Cruz

Philippines: Balance of Payments (BoP) Position

THE country’s balance of payments (BoP) position swung to a $2-billion deficit in March, the Bangko Sentral ng Pilipinas (BSP) said on Monday. Read the full story.

Philippines: Balance of Payments (BoP) Position

Balai ni Fruitas profit up 16% on expansion, higher revenue

PHILSTAR FILE PHOTO

LISTED counter-service bakery operator Balai ni Fruitas, Inc. said its net income rose by 16% to P68 million last year from P59 million in 2023, driven by expansion efforts and higher revenue.

Revenue grew by 25% to P668 million from P535 million in 2023, supported by better same-store sales and retail expansion initiatives, Balai ni Fruitas said in a stock exchange disclosure on Monday.

The company ended 2024 with 132 stores nationwide across its four brands: 63 Balai Pandesal, 39 Buko ni Fruitas, 28 House of Desserts, and two Sugarhouse stores.

Gross profit increased by 26% to P345 million, while earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 24% to P134 million.

“2024 was a defining year for Balai ni Fruitas, marked by sustained growth, strategic milestones, and strengthened brand equity. We continued to deliver solid performance across our core brands — Balai Pandesal, Buko ni Fruitas, and House of Desserts — while successfully integrating the Sugarhouse brand into our portfolio, allowing us to enter the premium cake segment and expand our production capabilities,” Balai ni Fruitas President and Chief Executive Officer Lester C. Yu said.

“Our exclusive distributorship of Polland Hopia in Cebu and Zamboanga opened new doors for regional growth and synergies within our community-based stores,” he added.

Balai ni Fruitas completed its acquisition of the Sugarhouse brand and its operational assets in April last year, signaling the company’s foray into the premium cake category.

In the second half of last year, Balai ni Fruitas also secured the sole rights to distribute the Polland Hopia brand in Cebu and Zamboanga under an exclusive distributorship agreement with brand owner D’ Famous Red Box Corp. Under the deal, Polland Hopia products will be featured in Balai Pandesal stores.

Balai ni Fruitas is a 75%-owned subsidiary of listed food and beverage kiosk operator Fruitas Holdings Inc.

On Monday, Balai ni Fruitas shares were unchanged at P0.36 per share. — Revin Mikhael D. Ochave

Rate cuts anyone? Anyone? Ferris Bueller’s tariff lesson

IN THE FILM Ferris Bueller’s Day Off, Ben Stein plays an economics teacher telling his languid students that the 1930 Smoot-Hawley Act, which erected a protectionist wall around the US, was a deeply flawed piece of legislation. He struggles to get a reaction from them. Anyone? Anyone, the instructor asks in an effort to get attention.

IT’S DISCOMFORTING to see the men and women who have saved the global economy numerous times be so flummoxed by the trade war. Even if they were less than fully convinced about what would ultimately be required, they tend to act decisively. Officials are feeling their way through the tariff drama, just like the rest of us.

This type of caution does, though, come with term limits.

The Bank of Korea (BoK) reached the defensible conclusion on Thursday that it’s better to hold fire while talks over the huge levies Donald Trump imposed on trading partners play out. As a major exporter, and firm US ally, South Korea had reason to hedge when it kept interest rates unchanged. It’s impossible to know what the White House will accept — or even if it will stand by any accords reached during the 90-day period when the most punitive duties are suspended. “Highly unpredictable,” was how the Bank of Canada chief put it charitably a few hours earlier. Federal Reserve Chair Jerome Powell, often in Trump’s bad books, sees potential risks to both price stability and employment. At some point, he may have to lean more toward one of those two mandates. Powell made light of the troubling times on Wednesday by referring to a line from the 1986 movie Ferris Bueller’s Day Off: Life moves pretty fast. (A day later, Trump mused about firing Powell.)

The collective sense of “we don’t know” will give way to either hiking or easing. In Asia, the bias appears to favor the latter. Bank of Japan (BoJ) Governor Kazuo Ueda demurs on a direct answer when questioned whether the rate increases the BoJ has embarked on can continue. But there is a distinctly dovish tone to his hesitancy. Of course, the bank is ready to lift rates again — from a very low level — if the reasonably positive outlook stays intact. “We will make an appropriate decision depending on the changing situation,” he told the Sankei newspaper.

If the tariffs do go into effect, Japanese growth is expected to take a decent hit; exports were already slowing in March. The more likely scenario is one similar to that flagged by Nomura Holdings, Inc., which pushed back forecasts for the next BoJ increase from July to early next year. The firm now sees just one move through March 2027, down from two.

There’s little doubt which way the BoK will jump. The bank’s statement showed an undeniable preference for resuming the rate reductions it began last year. All six members of the policy committee indicated they were open to a cut in the coming three months; one opted for a slice today. There’s a chance gross domestic product shrank in the first quarter, according to Governor Rhee Chang-yong. Inflation is under control. One local wrinkle: Confidence among businesses and consumers took a hit from the short-lived imposition of martial law in December, a mistake for which the-then president was impeached and removed from office. Rhee, for all intents and purposes, pre-announced a cut in May.

The Reserve Bank of Australia is lying low ahead of a May 3 election. When the RBA cut rates in February, Governor Michele Bullock went out of her way to discourage speculation there would be more. Trump has both changed the calculus and amplified the risks around going it slow, and more economists predict a reduction in May, perhaps even as much as half a percentage point. (The European Central Bank is projected to relax borrowing costs multiple times before yearend.)

Yes, “Liberation Day” was a shock to the global economy. Outside the US, bets are that it will harm growth and might constrain inflation. All those Chinese goods that may be prevented from finding buyers in America will have to go somewhere else.

Perhaps the scene most relevant today in Ferris Bueller’s Day Off, the John Hughes film whose hero — played by Matthew Broderick — is a truant, comes in economics class. The teacher tells the languid students that the 1930 Smoot-Hawley Act, which erected a protectionist wall around the US, was a deeply flawed piece of legislation. He struggles to get a reaction from them. Anyone? Anyone, the instructor asks in an effort to get attention. The Trump administration could learn something from watching this.

(The teacher is played by Ben Stein, whose father was a member of Richard Nixon’s Council of Economic Advisers when the former president quit the Bretton Woods system of fixed exchange rates, a ruction for the ages.)

We’ll be counting the cost of Trump’s salvo against the trading system for some time. Monetary policy in Asia seems headed in one direction, sooner rather than later.

BLOOMBERG OPINION

Arts events (04/22/25)


Robinsons Galleria celebrates Eid Mubarak

ROBINSONS GALLERIA is set to host “Mubarak, Hari Raya: A Celebration of Islamic Heritage in the Philippines and Beyond,” a special event that invites the public to experience Islamic traditions. The event kicks off with an opening ceremony today at 2 p.m., and runs until April 25. Located at Level 3, EDSA Wing, the event will feature a halal food bazaar offering a unique selection of traditional dishes, artisanal crafts, and exhibits from the Philippines, Brunei Darussalam, Indonesia, Iran, and Malaysia. This initiative is organized in collaboration with the National Commission for Culture and the Arts and made possible through the participation of various foreign diplomatic missions in Manila.


VIVA signs e-commerce MoU vs piracy

VIVA HOLDINGS, Inc., has signed an e-commerce memorandum of understanding (MoU) to strengthen protection of its content and retail products across digital platforms. The Intellectual Property Office of the Philippines facilitated the making of the MoU, which aims to encourage more creatives to protect their intellectual property rights. Vicente “Vic” del Rosario, Jr., chairman and chief executive officer of Viva Communications, said the move will help protect the company’s content assets against piracy which he estimates is threatening 80% of its potential revenue.


FDCP launches Behind the Reel series

THE Film Development Council of the Philippines (FDCP), supported by CineGang, Inc., has launched a YouTube series that gives an inside look at the film industry through roundtable discussions. The first episode was a discussion among “next generation” actors Elijah Canlas, Gabby Padilla, Paul Cedrick Juan, and Kakki Teodoro. The recently launched second episode showcased a conversation among five award-winning filmmakers: Antoinette Jadaone, Dwein Baltazar, Petersen Vargas, and Pepe Diokno. A new episode will be out on April 25.


Gary Valenciano, RJ Dela Fuente team up for a cover

POP BALLADEER RJ Dela Fuente has joined forces with Gary Valenciano on a heartfelt cover of Laura Story’s song “Blessings.” The duet offers a fresh take on the Christian ballad, which is a reminder of hope, healing, and unwavering faith in God amid life’s trials. The track was produced and arranged by Mon Faustino, Mr. Valenciano’s musical director for more than 35 years, in collaboration with recording consultant Mike Jamir. Considered by both as one of their favorite Christian songs, “Blessings” is a personal anthem for both singers. It is out now on all digital music streaming platforms.


Women docu filmmakers headline free screening

THE Museum of Contemporary Art and Design (MCAD) will be offering a free public screening of a collection of socio-political documentaries which highlight the crucial role of women filmmakers. The selection was curated by feminist scholar Eloisa May Hernandez, PhD of the Department of Art Studies of the University of the Philippines College of Arts and Letters. The films to be screened are Walang Rape sa Bontok (2014) written by Carla Pulido Ocampo and directed by Lester Valle; Aswang (2019) by Alyx Ayn Arumpac; and Maria (2023) by She Andes, each screening on April 23, 24, and 25, respectively. The screenings are free and open to the public and will be held at noon on the scheduled dates at the M320 Case Room of the De La Salle-College of Saint Benilde (DLS-CSB) Taft Campus in Malate, Manila.


PLDT Home Fiber offers Squid Game experience

THOSE who apply for any PLDT Home Fiber Netflix plan can get the opportunity to enjoy an immersive playground inspired by the hit Netflix series Squid Game in Seoul, South Korea. Visitors will be able to test their skills in games — minus the real danger. PLDT Home, in collaboration with Netflix, will take five winners and their plus ones, all chosen via electronic raffle, to “Squid Game: The Experience.” It includes free round-trip airfare for two, three-day/two-night hotel accommodation in Seoul, and travel allowance. The promo runs until May 15, and is open to all new subscribers of PLDT Home Fiber Netflix plans 1599, 2499, and 3199. The travel period is from June 23 to 25.


Korean series Good Boy to stream on Prime Video

STARRING Park Bo-gum, Kim So-hyun, and Lee Sang-yi, the upcoming Korean series Good Boy is set to premiere on Prime Video in the Philippines on May 31. It blends comedy, action, crime investigation, and romance in a story of former medal-winning athletes who become police officers and fight in a world full of criminals. The team is played by Park Bo-gum, Kim So-hyun, Kim Jong-hyeon, Ko Man-sik, and Shin Jae-hong.


HBO Original Harry Potter series reveals cast

REGULAR MEMBERS of the cast of the upcoming Harry Potter TV series have been announced. These are John Lithgow as Albus Dumbledore, Janet McTeer as Minerva McGonagall, Paapa Essiedu as Severus Snape, and Nick Frost as Rubeus Hagrid. Guest or recurring cast members include Luke Thallon as Quirinus Quirrell and Paul Whitehouse as Argus Filch. The series aims to be a faithful adaptation of the popular Harry Potter book series by author and executive producer J.K. Rowling. It will stream exclusively on Max globally, executive produced by Francesca Gardiner and with episodes directed by Mark Mylod.


Hong Kong Disneyland to celebrate 20th anniversary

STARTING June 28, Hong Kong Disneyland is marking its 20th anniversary with a year-long celebration across the resort titled “The Most Magical Party of All.” One of the showcases will be the Disney Friends live show with the theme “Party at the Castle!” and the newest “Friendtastic!” Parade. There will also be a special anniversary version of the Momentous nighttime light projection and fireworks show.

Fueling Filipino enterprises: How truck financing drives growth nationwide

By Jay Ann Bonghanoy

In the dynamic landscape of Philippine commerce, mobility is a crucial factor for success. For Filipino entrepreneurs, particularly those in logistics, trading, and distribution, a reliable truck isn’t just a vehicle — it’s the lifeblood of their business operations. Recognizing this essential need, Global Dominion proudly offers its truck financing services to help drive the growth of Filipino businesses across the country.

Whether it’s a brand-new unit or a trusted secondhand workhorse, Global Dominion’s Truck Financing enables Micro, Small, and Medium Enterprises (MSMEs) to invest in the vehicles critical for their expansion. From delivery vans to large cargo trucks, this loan service is designed with Filipino entrepreneurs in mind, providing competitive financing options, flexible terms, and a customer-first approach that fosters long-term business success.

At Global Dominion, we understand that when mobility is within reach, growth follows. Truck financing is more than just a loan — it’s a partnership that accelerates progress and empowers businesses to thrive.

“In every province, city, and municipality, we see businesses that just need a little boost to reach the next level,” says Joel Carmona, General Manager of the Truck Financing Division. “Through our Truck Financing loan services, we help bridge that gap — enabling businesses to expand their reach, serve more customers, and achieve sustainable success.”

The significance of MSMEs in the Philippine economy cannot be overstated. According to the Philippine Statistics Authority’s 2024 data, the country recorded approximately 1,100,781 business establishments:

  • Micro establishments (1-9 employees) accounted for 75.4%
  • Small establishments (10-99 employees) made up 23.8%
  • Medium establishments (100-199 employees) represented 0.5%
  • Large establishments (200+ employees) comprised 0.2%

Moreover, small establishments employed the highest number of workers, with 28,484 individuals, accounting for 50.6% of total regional employment. The average number of workers per establishment nationwide was recorded at 11.
(Source: Philippine Statistics Authority, 2024 List of Establishments and ASPBI)

Global Dominion’s commitment to empowering Filipino entrepreneurs goes beyond just financing. It’s about becoming a true partner in growth. By making truck ownership more accessible, Global Dominion helps businesses overcome challenges, seize new opportunities, and expand their potential. The company’s reach extends far beyond urban areas, making a significant impact in rural and underserved regions where enhanced mobility can transform livelihoods and create lasting economic benefits.

Global Dominion is not just powering vehicles — it is fueling the dreams and ambitions of Filipino business owners from Luzon to Mindanao, one truck at a time.

For more information about truck financing and other loan services offered by Global Dominion, visit www.gdfi.com.ph or visit the nearest Global Dominion branch today.

 


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PDIC enhances loan program for closed banks’ borrowers

THE PHILIPPINE Deposit Insurance Corp. (PDIC) has enhanced and extended its Closed Bank Loan Incentive Program (CLIP) to help borrowers of shuttered banks settle their debts.

“Now known as CLIP 3.0, the program, which was launched in 2021, aims to help borrowers of closed banks maintain their creditworthiness and prevent the foreclosure of their mortgaged assets, by making it easier for them to settle their outstanding debts through discounts and waivers on the amounts they owe, provided that the discounted or reduced loan obligation is paid in full through a one-time cash settlement,” the PDIC said in a statement on Monday.

“As the statutory receiver of closed banks, the PDIC collects loan payments from borrowers of closed banks to augment the liquid funds for the settlement of claims of the banks’ creditors.”

The program’s qualifying principal balance threshold has now been raised to P10 million from P5 million previously to service more borrowers of closed banks.

“Discounts and waivers are also available and vary based on the year the bank was closed, and on whether the loan is clean, secured by a chattel mortgage or pledge, or by a real estate mortgage,” the PDIC added.

These incentives include discounts on borrowers’ outstanding principal balance and waived or reduced interest, penalties, and other charges, among others. — AMCS

Filipino Fund, Inc. to hold Annual Stockholders’ Meeting on May 13 via Zoom


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How PSEi member stocks performed — April 21, 2025

Here’s a quick glance at how PSEi stocks fared on Monday, April 21, 2025.


Philippines, US start annual war games in locations facing regional flashpoints

FILIPINO activists burn a US flag outside the military headquarters near the Philippine capital to protest the annual Balikatan war games. — PHILIPPINE STAR/MIGUEL DE GUZMAN

By Kenneth Christiane L. Basilio, Reporter

ABOUT 14,000 Filipino and American soldiers kicked off their annual combat drills in the Philippines on Monday, with the war games to be staged near key locations facing regional flashpoints like the South China Sea and Taiwan.

The Balikatan (shoulder-to-shoulder) exercises will run for three weeks until May 9, and will showcase an array of US weapons that include the Navy-Marine Expeditionary Ship Interdiction System (NMESIS) anti-ship missile system and High Mobility Artillery Rocket System (HIMARS).

Military forces from Australia, Canada, France, Japan, South Korea and the United Kingdom will also participate in the drills, while 16 other nations including Malaysia and Singapore will act as observers, according to a statement from the Philippine military.

“We will train shoulder-to-shoulder so that we are prepared to operate shoulder-to-shoulder and, if called upon, to fight shoulder-to-shoulder,” US Lieutenant General James F. Glynn, exercise director for the US side, said in a speech during opening ceremonies at Camp Aguinaldo, the Philippine military’s headquarters near the Philippine capital.

Started in 1991, the Balikatan exercise has evolved into Southeast Asia’s premier combat rehearsal as the Philippines and US seek to strengthen security cooperation and enhance force interoperability in response to China’s growing assertiveness in the region.

The South China Sea has become a flashpoint for Southeast Asia as China continues to assert sovereignty over almost the entire sea, seen as a vital global trade route that is also believed to be rich in undersea gas and oil deposits.

Philippine and Chinese forces have repeatedly clashed over competing claims in the sea, with tensions flaring around disputed maritime features such as the Spratly Islands and Scarborough Shoal.

“More than 14,000 participants and over 20 nations are invested in what is now a signature exercise dedicated to maintaining a free and open Indo-Pacific region and ensuring the defense of the Philippines,” Mr. Glynn said. “Nothing builds bonds more quickly than a shared adversity.”

Beijing also claims self-ruled Taiwan as its own territory and has routinely staged air and naval military drills that has put Taipei on a war footing. China has not ruled out the use of military force in annexing the island, putting its 23 million citizens and the world’s most advanced semiconductor factories at risk.

About 9,000 US soldiers and 5,000 Filipino troops will participate in the drills.

An invasion of Taiwan is not “conducive to a free and open” South China Sea, Mr. Glynn told reporters after the opening ceremony. The Philippine-US drills are structured to address broader “regional security challenges” in the South China Sea rather than to counter a potential Taiwan conflict.

“Whenever we conduct exercises, we focus on defense, not attacks,” Philippine Major General Francisco F. Lorenzo, exercise director on the Philippine side, told the same news briefing.

Mr. Glynn said the US military would deploy its advanced missile systems for the drills, including a mobile anti-ship missile system, a portable artillery rocket system, a mid-range capability missile battery and a short-range air defense platform.

“[We will] introduce new capabilities, like the Navy-Marine Expeditionary Ship Interdiction System, Marine Air Defense Integrated System (MADIS) and the army’s medium range capability for the Typhon missiles,” he added.

US Defense Secretary Peter Brian Hegseth in late March vowed to help arm the Philippines with deterrence capabilities by deploying advanced weaponry, such as the NMESIS and unmanned sea vessels.

Outside the military headquarters, activists led by Bayan Muna burned a US flag to protest the war games. “Stop militarization,” according to one banner held by a protester, while another urged the US not to drag Filipinos in the war with China.

‘CREDIBLE COMBAT POWER’
Meanwhile, the intermediate-range missile system can launch missiles that could reach the Chinese mainland. It was flown to the Philippines for last year’s Balikatan drills and has since drawn sharp criticism from Beijing.

“[These] are all here to bring together our capabilities, to demonstrate and reassure to the region that while we remain committed to peace, we also possess credible combat power… to maintain a free and open Indo-Pacific,” Mr. Glynn said.

The military drills reaffirm the Philippine and US commitment to keeping regional peace and bolstering military preparedness for “future challenges,” Armed Forces of the Philippines Chief-of-Staff Romeo S. Brawner, Jr. said in a speech.

“Our operations span complex joint endeavors including missile defense, counter-landing live fires and man-tank strike capabilities, alongside humanitarian efforts and infrastructure projects that directly benefit our local communities,” he said. “These initiatives are not solely about demonstrating power. They epitomize partnership in action.”

This year’s drills will be mostly concentrated in northern Philippines and its west coast.

Two military exercises — one on the major Philippine island of Palawan near the South China Sea and another in Cagayan province facing Taiwan — will see forces rehearse how to repel an invasion and test the Philippine military’s coastal defense system, according to a handout.

Joint Philippine-US forces will also carry out exercises to assert control over “vital maritime regions” by securing key infrastructure including ports, straits and strategic islands in western and northern Philippines, aimed at refining military tactics for safeguarding crucial maritime assets in case of conflict.

They will also hold naval drills with Japan in the West Philippine Sea, where Philippine and Chinese forces have repeatedly clashed. A decommissioned Philippine Navy ship will be sunk in a separate exercise within the same waters.

Meanwhile, China’s Southern Theatre Navy said a Philippines frigate had “illegally intruded” into the waters of Scarborough Shoal on Sunday, “seriously violating” Chinese sovereignty and laws.

The navy monitored and drove the vessel away, it said in a statement late Sunday. It urged the Philippine side to immediately stop the “infringement and provocation,” its spokesperson said.

The Philippine Embassy in China did not immediately respond to a request for comment. — with Reuters