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Ayala Land secures SEC approval for merger with 29 subsidiaries

AYALALAND.COM.PH

LISTED property developer Ayala Land, Inc. (ALI) has secured approval from the Securities and Exchange Commission (SEC) to absorb 29 corporations as part of its internal restructuring efforts.

The real estate company received the SEC’s approval of the articles and plan of merger on March 31, which subsequently took effect on April 1, ALI said in a regulatory filing on Wednesday.

“The merger is an internal restructuring to simplify the ownership structure and is expected to result in operational synergies, efficient funds management, and simplified reporting to government agencies,” ALI said.

The companies absorbed by ALI were Ayala Hotels, Inc., Buendia Landholdings, Inc., HLC Development Corp., Crimson Field Enterprises, Inc., Red Creek Properties, Inc., Prima Gaedi Development Corp., ALI Triangle Hotel Ventures, Inc., Arcasouth Hotel Ventures, Inc., and Seda College, Inc.

Also included were Asiatown Hotel Ventures, Inc., North Ventures Commercial Corp., Westview Commercial Ventures Corp., Circuit Makati Hotels Ventures, Inc., Primavera Towncentre, Inc., Hillsford Property Corp., Sunnyfield E-Office Corp., Southportal Properties, Inc., Regent Horizons Conservation Co., Inc., Amorsedia Development Corp., and Five Star Cinema, Inc.

The real estate developer also absorbed ALO Prime Realty Corp., Enjay Hotels, Inc., One Makati Hotel Ventures, Inc., Integrated Eco-Resort Inc., Ecoholdings Company, Inc., Whiteknight Holdings Inc., AyalaLand Medical Facilities Leasing, Inc., Altaraza Prime Realty Corp., and Cebu Leisure Company, Inc.

ALI secured board approval for the merger in March 2024, with a plan to absorb 34 subsidiaries that are wholly owned directly by the real estate developer or through AyalaLand Estates, Inc. and AyalaLand Hotels and Resorts Corp.

For 2024, ALI recorded a 15% increase to P28.2 billion as revenue surged by 21% to an all-time high of P180.7 billion due to higher residential and estate lot bookings.

The company aims to launch P100 billion worth of property development projects this year, supported by a P95-billion capital expenditure budget.

ALI shares rose by 3.91% or 90 centavos to P23.90 per share on Wednesday. — Revin Mikhael D. Ochave

How PSEi member stocks performed — April 2, 2025

Here’s a quick glance at how PSEi stocks fared on Wednesday, April 2, 2025.

US OKs $5.6-B jet deal with Philippines

Photo shows F-16 fighter jets from last year’s "Thunder" US-Philippines joint military exercise at Basa Air Base. The United States announced on Tuesday that it had approved the sale of $5.58 billion worth of 20 F-16 fighter jets and related equipment to the Philippines, reinforcing its support for the treaty-bound ally amid rising tensions with China. — PHILIPPINE STAR/WALTER BOLLOZOS

By Kenneth Christiane L. Basilio, Reporter

THE US Department of State on Tuesday approved the possible sale of F-16 jet fighters and munitions worth $5.58 billion to the Philippines, a deal that could boost the Southeast Asian nation’s air combat capabilities amid rising tensions with China.

The US government greenlit the Philippines’ request for 20 units of F-16 fighters from Lockheed Martin Corp., according to the Defense Security Cooperation Agency (DSCA), an office attached to the US Defense department.

The proposed arms deal includes missiles, bombs, radar units, backup jet engines and engineering and technical support services for the planes, the DSCA said in a statement posted on its website. It has informed the US Congress of the potential deal.

Foreign military sales by US defense manufacturers require US government approval to ensure that weapon acquisitions of other nations align with Washington’s foreign policy and security interests.

The Philippine Defense department has yet to receive an “official notice” about the deal from the US, its spokesman Arsenio R. Andolong told BusinessWorld by telephone.

“This proposed sale will support the foreign policy and national security of the United States by helping to improve the security of a strategic partner that continues to be an important force for political stability, peace and economic progress in Southeast Asia,” the DSCA said.

The announcement comes days after the visit of US Defense Secretary Peter Brian Hegseth to Manila, during which he spoke with Philippine President Ferdinand R. Marcos, Jr. and Defense Secretary Gilberto C. Teodoro, Jr., vowing to help arm the US’ oldest treaty ally in Asia with deterrence capabilities by deploying advanced weaponry, such as an anti-ship missile system and unmanned sea vessels to counter China’s aggression in the South China Sea.

Philippine and US forces will also hold military drills in the northernmost province of Batanes island near Taiwan.

“The proposed sale will enhance the Philippine Air Force’s ability to conduct maritime domain awareness and close air support missions and enhance its suppression of enemy air defenses and aerial interdiction capabilities,” the DSCA said.

The deal could also help the Philippine military protect its “vital interests and territory” while also expanding interoperability with US forces, it added. “The Philippines will have no difficulty absorbing this equipment into its armed forces.”

Philippine forces have frequently sparred with Chinese ships and aircraft in the South China Sea over competing sea claims. Beijing asserts sovereignty over almost the entire waterbody based on its 1940s nine-dash line, which overlaps with territorial claims from the Philippines, Brunei, Malaysia, Taiwan and Vietnam.

A United Nations-backed tribunal based in The Hague in 2016 voided China’s claim for being illegal.

The Philippines is seeking to modernize its military and deepen security ties with other nations as it tries to counter China’s military might in the region, buying warships from South Korea, a missile system from India, all while letting a US missile battery that could hit the Chinese mainland stay in the country.

Manila is also eyeing much needed upgrades to its aging air force, whose arsenal mostly consists of turboprops. The Philippine Air Force only has 11 Korean-made FA-50 light fighter jets, its most advanced aircraft, after one crashed in early March.

The deal would advance the Philippines’ air defense capabilities, said Justin Keith A. Baquisal, national security analyst at FACTS Asia.

“The problem now is that our air defense primarily relies on FA-50s, so this is very necessary to add to the fleet mix,” he said in an X message.

CHEAPER DEALS
Maintaining the F-16 jets won’t be difficult for the Philippines due to the US’ sprawling supply chain, he added. “America’s supply chain is global… The logistics industry around it can be sourced from NATO (North Atlantic Treaty Organization) countries too,” he added, referring to the military coalition of European nations.

Mr. Teodoro last year said the military had allotted as much as $6.9 billion for the acquisition of 40 advanced military jets.

The Philippines should consider diversifying its planned purchase of multi-role fighter aircraft and not rely on one manufacturer if it could get cheaper deals with others, said Joshua Bernard B. Espeña, who teaches international relations at the Polytechnic University of the Philippines.

The cost of the F-16 deal could still decrease, according to the DSCA.

Philippine authorities should strike a balance in buying affordable jets with its air force’s need to seamlessly work with its allies, he said in a Facebook Messenger chat. “We also need to consider how these systems might become integrated into the AFP’s (Armed Forces of the Philippines) combat management systems at the operational level.”

“We shouldn’t just diversify our combat systems and assets for the sake of diversifying,” Mr. Baquisal said. “Our assets need to be interoperable too, and by and large the AFP uses US and US-allied equipment from South Korea and Israel.”

The US State Department approved the sale of a dozen F-16 jet fighters worth $2.43-billion to the Philippines in 2021.

Meanwhile, the chiefs of Philippine and Canadian military forces on Wednesday met in Manila, where they discussed ways to deepen security ties.

AFP Chief of Staff Romeo S. Brawner, Jr. met with Canada’s Chief of Defense Staff Marie Annabelle Jennie Carignan during her courtesy visit to Camp Aguinaldo, the military headquarters in the Philippine capital, according to an AFP statement.

Both reaffirmed their commitment to maintaining regional peace and pledged to continue joint military training drills.

“The visit underscored the AFP’s efforts to strengthen its defense ties with like-minded nations, and to solidify its shared commitment to regional peace and security,” the AFP said.

Manila and Ottawa last month finalized negotiations on a pact enabling military personnel from both countries to conduct joint training exercises in each other’s territories. It provides immunity from criminal and civil liability to visiting forces if the act was done during official duty. The privilege is also extended to Filipino soldiers visiting Canada.

PHL buildings not ready for ‘The Big One,’ experts say

INTERAKSYON/SCREENGRAB FROM THE FAULTFINDER SERVICE OF THE DOST WEBSITE/PHILSTAR FILE PHOTO

By Beatriz Marie D. Cruz, Reporter

BUILDING EXPERTS are concerned about the readiness of buildings and the lack of public spaces in case of a major earthquake in Metro Manila, after a 7.7-magnitude quake killed thousands in Myanmar on March 28.

A magnitude 7.2 quake — also called “The Big One” — could happen soon, they said.

“I recommend an architectural and structural audit, as well as a mechanical, electrical, plumbing, sanitary engineering, and fire protection audit of all buildings that were built before 2015,” Felino A. Palafox, Jr. a veteran architect and founder of Palafox Architecture Group, Inc., told BusinessWorld by telephone.

It was only in 2015 when the National Structural Code of the Philippines was updated, he pointed out.

The code, published by the Association of Structural Engineers of the Philippines, Inc., is a comprehensive set of regulations for the design, construction and maintenance of structures in the Philippines. It guides structural and civil engineers and incorporates advancements in structural engineering and lessons from past disasters.

Experts have warned that a 7.2-magnitude earthquake triggered by the movement of the 100-kilometer West Valley Fault along Metro Manila, also called “The Big One,” could lead to thousands of deaths and cause widespread damage to infrastructure.

A strong earthquake along the West Valley Fault recurs about every 400 to 600 years, according to the Philippine Institute of Volcanology and Seismology (PHIVOLCS). Its last recorded movement was in 1658 or 367 years ago.

“The Big One could occur before the 400-year mark or after 600 years,” Ma. Mylene M. Villegas, chief science research specialist at PHIVOLCS, told BusinessWorld in an e-mail. “Given that stress has been accumulating along this active fault for the past 367 years, an earthquake could occur at any time.”

Mr. Palafox likened the fragility of Metro Manila’s buildings to a paper clip, which can break if damaged several times.

“You bend the paper clip once, it will not break, but if you bend it several times, it will break,” he said. “So, if your building has survived several earthquakes, maybe your steel bars are already tired.”

A 2004 joint study by the Japan International Cooperation Agency, Metropolitan Manila Development Authority and PHIVOLCS noted that a 7.2-magnitude quake on the West Valley Fault could kill 33,500 people.

The major quake could heavily and partially damage 38% of Metro Manila’s residential houses and 35% of its public buildings, it added.

The West Valley Fault passes through the cities of Taguig, Muntinlupa, Parañaque, Quezon, Pasig, Makati and Marikina, and the provinces of Rizal, Laguna, Cavite and Bulacan.

The Philippines is also situated in the Pacific Ring of Fire, a seismically active belt that could trigger earthquakes, volcanic eruptions and tsunamis.

Nigel Paul C. Villarete, a civil engineer and senior advisor at technical advisory group Libra Konsult, Inc., said Presidential Decree No. 1096 or the National Building Code of the Philippines contains the latest provisions on earthquake-resistant design. 

“We belong to the highest category (IV), which considers the more probable and stringent earthquakes, so we can be assured our building should have been designed with the most recent and strict standards,” he said in a Viber message.

‘MORE READY’
“Of course, design is one thing, construction is another, so we must also ensure that our buildings are built with the highest standards and without unnecessary deficiencies that may be caused by carelessness, or worse, cost-cutting or corrupt practices,” he added.

If the country’s structural and building codes are followed, the Philippines should be “comparatively more ready than most countries” against earthquakes, Mr. Villarete said.

However, some contractors lower building specifications to cut costs, said Paulo G. Alcazaren, an urban planner and landscape architect.

“Anecdotally, there have been a good number of public buildings and infrastructure that were adequately designed by registered and licensed civil and structural engineers, but contracting firms have had to shortcut or reduce specifications to bring down costs to create enough profit to pay off government officials and ensure margins,” he said in an e-mailed reply to questions.

Mr. Alcazaren, the co-founder of PGAA Creative Design, also cited the lack of open spaces such as parks or sidewalks in Metro Manila, where people can safely evacuate.

“In our very congested business and condominium residential districts, there is obviously not enough area to stay clear of falling debris, shattered glass and also to seek refuge,” he said.

He also noted that billboards on top of buildings could fall during a major earthquake, causing significant damage.

“Even if they are well designed, who maintains and inspects them? I have never seen these being repainted, inspected or repaired,” Mr. Alcazaren said.

Mr. Palafox said it is more cost-efficient for the government and private sector to invest in disaster prevention than rehabilitation.

“It’s 90% less expensive to address the hazards before they become disasters, and they should be addressed by good planning, design, architecture and engineering solutions,” he added.

Meanwhile, the Department of Public Works and Highways (DPWH) said it has assessed 21,000 public buildings for earthquake readiness and compliance with the building code.

“As of today, we have assessed more than 21,000 public buildings, and many of them are recommended for retrofitting,” Public Works Undersecretary Maria Catalina E. Cabral told a news briefing at the presidential palace.

“We have also completed several retrofitting projects. Essentially, retrofitting raises a building’s standard to comply with international earthquake standards,” she added.

She cited the agency’s 2020 deal with the World Bank to retrofit and upgrade 425 buildings in Metro Manila, including schools and health centers, to ensure they can withstand high-magnitude earthquakes.

Ms. Cabral said DPWH regional directors were assessing the structural integrity of buildings and bridges as part of the agency’s yearly efforts to look after local infrastructure.

“This is an ongoing effort — not just now, and not solely because of the incident in Myanmar, but as part of our annual program,” she said.

“Every year, all bridges, national roads and especially national bridges must be assessed to evaluate their structural integrity. This allows us to plan whether they need repairs, rehabilitation, replacement or retrofitting,” she added.

At the same briefing, Civil Defense Undersecretary Ariel F. Nepomuceno said President Ferdinand R. Marcos, Jr. had ordered his agency to craft long-term solutions for The Big One and ensure Metro Manila is ready for quakes similar to the one in Myanmar.

“If we start doing things correctly today, the process will still take time because it involves millions of houses that may need retrofitting and structural integrity audits,” he said. “So, it’s not hard to do; it just takes time.” — with John Victor D. Ordonez

Israel pushes cybersecurity, counter-terrorism partnership with PHL

ILAN FLUSS — NEW.EMBASSIES.GOV.IL

By Adrian H. Halili, Reporter

ISRAEL is looking at working with the Philippines to improve the Southeast Asian nation’s cybersecurity and counter-terrorism programs, according to its envoy.

“We are pushing to have more exchanges in the area of counter-terrorism and cybersecurity,” Israel Ambassador to the Philippines Ilan Fluss told BusinessWorld in an interview. “There are ongoing talks, but again, we are basically waiting for the Philippine government to decide if there is an interest in these sectors.”

He said the consulate might partner with the Department of Information and Communications Technology (DICT) on programs involving cybersecurity.

“Cybersecurity is certainly an area that we are offering to collaborate closer,” he said. “Israel has a very advanced cybersecurity ecosystem. We have offered to have a collaboration with the DICT on cybersecurity and it’s on the table.”

Mr. Fluss said international cooperation and information-sharing would help mitigate cyberattacks.

“Only when you collaborate and share information can you get better solutions,” he said. “Other countries may have the same experience and could give advice. Only by international collaboration can you serve your country better.”

He said information-sharing between the government and private sector could also improve the Philippines’ cybersecurity protocols.

“Sharing information helps in countering those attacks and in mitigating them, and from every attack, you can learn and improve the system for everybody,” he added.

The Philippines faced about 17.1 million cyberthreats last year, 36.8% of users in the country, according to Kaspersky.

Separately, the Cybercrime Investigation and Coordinating Center logged 10,004 cybercrime complaints in 2024, a sharp increase from 3,317 cases a year earlier.

In 2023, ransomware group Medusa hacked into the systems of the Philippine Health Insurance Corp. and leaked sensitive data, including the bank details of about 42 million members when the government refused to pay a $300,000 ransom.

Mr. Fluss said they had also offered to collaborate with the Philippines on counter-terrorism initiatives.

“These are two very sensitive, very important areas… and we are looking forward to collaborating with the Philippine government,” he said. “It depends of course always on the Philippine government’s interest and priorities.”

The Philippines is among the most affected by terrorism in the Asia-Pacific region after Myanmar, according to the 2025 Global Terrorism Index released last month.

Comelec starts distributing voters’ info sheets for midterm elections

PHILIPPINE STAR/EDD GUMBAN

THE Commission on Elections (Comelec) on Wednesday started distributing voters’ information sheets (VIS) ahead of the May 12 midterm elections.

The VIS is a four-page document that provides essential information, including voters’ designated polling station, instructions for using vote-counting machines, and the list of national and local candidates, along with 155 party-lists.

“Everyone should remember that the VIS is very important because not everyone has access to the internet… so how can they get information from our precinct finder?” Chairman George Erwin M. Garcia said in Filipino during an ambush interview.

“[The VIS will show that] we are all equal in this country because we will only receive the same kind of document,” he added.

To avoid politicizing the process, the Commission opted to hire temporary employees instead of barangay officials to distribute the VIS. The distributors, who will carry Comelec-issued identification (ID) cards, will be required to personally deliver the VIS to each voter. 

If the voter is unavailable at their registered address, an authorized representative may receive the VIS on their behalf. 

According to the poll chief, several regions, including the Cordillera Administrative Region, northern Mindanao, Davao region, Soccsksargen, and the Bangsamoro Autonomous Region in Muslim Mindanao, have also started distributing the VIS, with the Comelec aiming to complete the process by April 30.

Mr. Garcia also said the Comelec will reopen its precinct finder two weeks before the May 12 elections, enabling voters to locate their designated voting centers or precincts in advance.

The Commission printed a total of 68 million VIS for 68.4 million voters in the Philippines.

Meanwhile, during the Management Association of the Philippines’ General Assembly on the same day, Mr. Garcia said the business community plays a crucial role in shaping the economy, not just through investments and job creation but also through their words and sentiments.

Their statements have a direct impact on economic confidence, making their voices matter in national conversations, he said.

“The business community’s contribution to the economy is significant, but it would be for nothing if they do not trust our processes and systems. How can our economy improve if they don’t trust it? Trust begins when they trust the elections themselves,” he told reporters in Filipino.

MYANMAR VOTING
Also on Wednesday, the Commission said Filipino voters in Myanmar will be casting their votes through postal voting, instead of online voting, after a 7.7-magnitude earthquake struck the Southeast Asian nation last March 28.

This means they will receive an envelope containing their ballot, which they will then send back to the Philippine embassy.

Once the ballots are received at the embassy, they will be counted using the machines provided by Comelec.

“There are only about 320 voters in Myanmar, and most of them are concentrated in the capital. It’s a small number, but every vote matters,” the poll chief said.

Some 1.2 million Filipinos registered to vote overseas, according to Comelec. Overseas voting will begin on April 13 until May 12.

The upcoming midterm elections will determine the composition of the Senate, House of Representatives, and local government positions. — — Chloe Mari A. Hufana

PhilHealth may cover 18% of bills

PNA/JOAN BONDOC

THE Philippine Health Insurance Corp. (PhilHealth) said it is eyeing to cover 18% of hospital bills of Filipinos in 2025 to fulfill its mandate of healthcare accessibility under the Universal Healthcare (UHC) Act.

In a hearing on PhilHealth lawsuits on Wednesday, Supreme Court (SC) Associate Justice Jhosep Y. Lopez questioned PhilHealth Senior Vice-President Renato L. Limsiaco, Jr., on what would be the ideal case rate that would allow the agency to adhere to its mandate in the UHC Act — to not have any Filipino family suffering as a consequence of one’s sickness.

Mr. Limsiaco said in mixed English and Filipino, “PhilHealth’s target for the year 2025 is 18%, your honor, it would cover 18%.”

The magistrate countered, “Should it not be 50%? Would we not be able to reach that point?”

“As we progress with the implementation in the coming years, [PhilHealth] has a national health financing strategy set up through our Department of Health,” Mr. Limsiaco said. “PhilHealth is going to cover, if I’m not mistaken, 28% by 2028.”

Case rate refers to the portion of one’s hospital bill covered by PhilHealth.

PhilHealth is facing lawsuits questioning the transfer of P89.9 billion of its funds to the national Treasury.

Mr. Lopez, who suffered from esophageal cancer two years ago, shared that he incurred a P7-million bill after over two months of confinement in a hospital.

PhilHealth only covered P50,000 despite his being a contributor since 1985, he noted. This is only less than 2%, he added.

According to Mr. Limsiaco, the average case rate of Filipinos varies per patient, but the average is P10,000.

The high court will continue its fifth hearing on April 3, 2025, Thursday.

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 transfer faced legal challenges, with the plaintiffs arguing that PhilHealth’s funds, taken from member contributions and specific taxes, should be exclusively used for health-related purposes, as mandated by the UHCA.

In the same hearing, Justice Ricardo R. Rosario asked Finance Secretary Ralph G. Recto what would be the outcome if the high court ordered the return of the funds to PhilHealth and the P100 billion, fully transferred from the Philippine Deposit Insurance Corporation (PDIC) to national coffers.

Mr. Recto said: “If the government were to tell the executive to return the money, we will include that in the National Expenditure Program for 2026.”

“Assuming if the ruling works for 2025, that will add a fiscal pressure to our deficit and that would entail us not hitting our deficit targets this year,” Mr. Recto added. “And if we miss that, then we may not attain our coveted credit rating upgrade that we foresee in the next 18 months.” — Chloe Mari A. Hufana

PCO denies hiding Duterte arrest

IMEE R. MARCOS — FACEBOOK.COM/SENATEPH

THE PALACE on Wednesday said the Cabinet officials did not hide any information about former President Rodrigo R. Duterte’s arrest after Senator and presidential sister Maria Imelda “Imee” R. Marcos questioned the details provided before a Senate probe.

“There is nothing to hide, as the lengthy time allotted during the first hearing was sufficient for our Cabinet officials to provide the necessary information regarding the surrender of former President Duterte to the International Criminal Court (ICC),” Presidential Communications Office (PCO) Undersecretary Clarissa A. Castro told a Palace briefing.

“The administration believes that the information provided during the previous hearing was sufficient.” The Senate Committee on Foreign Relations, which was led by Ms. Marcos, on March 20 launched an inquiry into the arrest of Mr. Duterte citing questions on the jurisdiction of the ICC over the Philippines.

Local police arrested Mr. Duterte after the ICC ordered his arrest and sought the help of the International Criminal Police Organization (Interpol). The tough-talking leader was arrested shortly after arriving from Hong Kong and was put on a chartered plane to the Netherlands on March 11. 

Ms. Marcos has withdrawn from administration-backed Alyansa Para sa Bagong Pilipinas, citing differences in the administration’s actions regarding the arrest of the tough-talking leader.

Allies of Mr. Duterte have questioned the validity of his arrest, citing the country’s withdrawal from the Rome Statute.

During the firebrand leader’s six years in office, 6,200 suspects were killed during anti-drug operations, by the police’s count. Human rights groups say the deaths could be as many as 30,000. — John Victor D. Ordoñez

San Jose del Monte city gov’t approves new site of MRT stop

PHILSTAR FILE PHOTO

THE Department of Transportation (DoTr) said the city government of San Jose del Monte, Bulacan agreed last month to the new location of the Metro Rail Transit Line-7 (MRT-7) station in that city.

“The alignment agreed in September 2024 has also been reaffirmed by the San Jose del Monte government in March 2025,” Michelle De Vera, assistant secretary for communications and commuter affairs at the DoTr, said via Viber on Wednesday.

Ms. De Vera said the realignment will not impact the projected start of MRT-7 operations.

The San Jose del Monte stop will now be located near the boundary of San Jose del Monte and north Caloocan, instead of the initial site, which was near the Muzon-Tungkong Mangga Road intersection, according to Philippine Information Agency.

According to the NEDA Central Luzon office website, the project is now 78.63% complete and is targeted for partial operations by 2026 and full operations by 2027.

Last year, the DoTr said the MRT-7, a project of San Miguel Corp. (SMC), is experiencing delays due to the right-of-way (RoW) issues in San Jose del Monte.

MRT-7, which will have 14 stops, will run from Quezon City to San Jose del Monte, and is expected to carry 300,000 passengers daily in its first year, and up to 850,000 passengers a day by the 12th year.

SMC is financing the construction and will operate the 23-kilometer commuter rail system under a 25-year concession agreement.

The commuter rail line’s stations are Quezon/North Avenue Joint Station, Quezon Memorial Circle, University Avenue, Tandang Sora, Don Antonio, Batasan, Manggahan, Doña Carmen, Regalado, Mindanao Avenue, Quirino, Sacred Heart, Tala, and San Jose del Monte.

In 2024, the DoTr said it is looking at operating the Quezon City leg or the Quezon/North Avenue Joint Station up to Tandang Sora station. — Ashley Erika O. Jose

Pork MAV set for overhaul to make allocations more fair, DA says

PHILSTAR FILE PHOTO

THE Department of Agriculture (DA) on Wednesday said it is looking to overhaul the minimum access volume (MAV) allocation system for pork to make the process more fair.

MAV rules were formulated almost three decades ago and have been “exploited by a small number of accredited importers,” it said in a statement.

The DA’s Policy and Planning Office will come up with a recommendation by October, the department said.

“Our MAV rules were written in 1996 and when I read them, I found a lot of room for improvement. So, we have to revise the MAV,” Agriculture Secretary Francisco Tiu Laurel, Jr. was quoted as saying.

The MAV is a feature of the World Trade Organization system. Members must commit to open their markets to a minimum quantity of imports that are charged reduced tariffs.

Pork imports falling within the MAV quota are subject to a tariff of 15%, against the regular rate of 25%. The MAV allocation for pork is 55,000 metric tons (MT), with 30,000 MT going to meat processors.

Mr. Laurel said of the 130 quota holders, 47 account for 80% of the total; of the 47, 22 have cornered 70% of the volume of the top importers.

“In reality, 22 MAV quota holders account for 55% of the total volume,” he said.

“The sad part about this is that consumers don’t benefit from the reduced tariff,” he said.

Asked to comment, Meat Importers and Traders Association (MITA) President Jess C. Cham said via Viber: “The licensees who have retained their allocations have all done so in accordance with MAV guidelines. We should not fault them for that.”

Mr. Cham said to accommodate more importers, the MAV volume should be increased.

“It has been 30 years after all.”

Mr. Cham said the DA “refuses to see the main problem” which is the lack of hogs, noting that due to the African Swine Fever outbreak in 2019, pork production dropped to 1 million MT in 2024.

Pork production pre-MAV was 1 million MT in 1995. It peaked at 1.9 million MT in 2019, he noted.

“With a production drop of 900,000 tons, MITA proposed to increase the MAV to 500,000 tons,” Mr. Cham said. “This is still not enough to cover the deficit.”

The DA is projecting pork production in 2025 to increase to 1.15 million MT.

National Federation of Hog Farmers, Inc. Vice-President Alfred Ng said giving a big part of the MAV to processors may benefit consumers more.

“Traditional MAV importers which are traders will not (pass on the) benefits to consumers,” he said via Viber.

The DA said as initially planned, it is considering increasing allocation to meat processors to 40,000 MT.

It said Food Terminal, Inc. will also be given an allocation — initially set at 15,000 MT — to allow it to intervene in the market should pork prices increase.

MITA has been calling on the DA to issue the MAV allocation as soon as possible to avoid trade disruptions that could lead to a spike in pork prices.

Mr. Laurel in February said meat processors will be allowed to import 35,000 MT of pork. — Kyle Aristophere T. Atienza

RE industry frets about rates should Trump stoke inflation

By Sheldeen Joy Talavera, Reporter

THE Trump administration’s policies could cause inflation to remain elevated, which would have a major impact on the renewable energy (RE) industry because it depends heavily on borrowed capital, ACEN President and Chief Executive Officer Eric T. Francia said.

“Ninety percent of our capex (capital expenditure) is cost of capital and that remains elevated and more than offsets the low solar panel prices,” Mr. Francia said.

Mr. Francia said President Donald J. Trump’s preference that the US exploit its own fossil fuels to minimize dependence on foreign energy “is causing a lot of uncertainty with regard to mid- to long-term global supply and demand… There is a risk of stranded assets if you overbuild gas resources.”

Mr. Trump withdrew the US from the Paris Agreement, which has been taken as a declaration of intent to lean more on fossil fuels. The resulting resistance by the US to the clean-energy transition has raised concerns that the industry’s progress could stall.

Mr. Francia said in response, the Philippines should explore regional opportunities.

“These global policies are driven by US… (they are) only part of the equation. You need to look at the impact of local and regional policies. And that is where we have a great silver lining, to unlock opportunities in these challenges,” he said.

Mr. Francia added that opportunities also lie in greater efficiency and falling prices of RE equipment, making renewables more competitive.

Energy Undersecretary Rowena Cristina L. Guevara, speaking at the Renewable Energy Forum 2025 on Wednesday, said the US reluctance to pursue RE aggressively means the Philippines can turn to regional partners to achieve its RE goals.

“We can have partnerships among us. And we do have leaders in Asia, like China, Japan, South Korea, and India leading the renewable energy market.”

Citicore Renewable Energy Corp. President and CEO Oliver Tan said investment in energy transition has been “flattish” even before the return of Mr. Trump to office.

“At the end of the day, smart money will eventually find its way to areas where there’s compelling investment (propositions). And the Philippines today is a very compelling investment for funds that will eventually come,” Mr. Tan said.

The Philippines is seeking to increase the share of renewable energy in the power mix to 35% by 2030 and 50% by 2040.

Ms. Guevara expressed optimism in achieving the end-of-decade goal.

“We saw that with the developments happening in the Philippines, we will actually hit 35% by 2030,” she said.

WB approves $800-M energy transition loan

REUTERS

THE WORLD BANK (WB) on Wednesday said it approved an $800-million financing package to support the adoption of clean energy technology and the enhancement of water management in the Philippines.

“Focusing on renewable energy sources and using energy more efficiently can help the country reduce electricity costs, improve energy security, and cut down on pollution,” Zafer Mustafaoğlu, World Bank division director for the Philippines, Malaysia, and Brunei, said in a statement on Wednesday.

“Using more affordable renewable energy in the energy and transport sectors is crucial for the Philippines to build a strong economy,” he added.

This First Energy Transition and Climate Resilience Development Policy Loan aims to bolster efforts to scale up clean energy technologies, enhance the security and flexibility of electricity markets, and improve water management.

The bank said the project will increase the share of renewable energy in installed generation capacity from 30% in 2023 to 42% by 2027.

It will also fund the procurement of 1,000 megawatts of new offshore wind capacity and implement energy efficiency measures saving five gigawatt hours annually.

“By strengthening RE markets, and unlocking private sector investment, the program will contribute to scalable, transformative impact beyond 2030, placing the Philippines on a sustainable trajectory,” the World Bank said.

Additionally, the project will introduce policy reforms to improve governance and cohesiveness in the water sector, aiming to enhance water resources management and water supply and sanitation services.

“These reforms in the water sector are expected to increase access to safely managed water supply and sanitation services; raise funding and financing for water and sanitation projects; and improve the financial sustainability of local government-run water service providers,” World Bank Senior Water Supply and Sanitation Specialist Maria Fiorella Fabella said.

Ms. Fabella noted that such support is a first for the Philippine water sector, and will promote more effective coordination, planning and management across sectors and governments. — Aubrey Rose A. Inosante

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