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Central Luzon: A rising economic and property powerhouse

The 22-kilometer Metro Rail Transit Line 7 project, linking North Avenue in Quezon City to San Jose del Monte, Bulacan. — SMCINFRASTRUCTURE.COM.PH

CENTRAL LUZON is emerging as one of the fastest-growing regions in the Philippines, solidifying its role as a vital contributor to the country’s economic development. Based on latest government data, the region recorded a 6.5% gross domestic product (GDP) growth in 2024, an improvement from 6.1% in 2023. This expansion underscores the dynamism of Central Luzon’s economy, driven by construction, manufacturing, and services sectors. Notably, the region accounted for 11.1% of the national GDP, highlighting its strategic importance in the broader Philippine economy over the near to medium term.

Over the past few years, we have seen major developers aggressively landbanking and developing masterplanned communities in Central Luzon, especially in Bulacan, Tarlac, and Pampanga.  We expect proactive landbanking in other parts of the region as developers are gradually positioning and firming up their positions in a constantly evolving property market like Central Luzon.

INFRASTRUCTURE AS A REGIONAL GROWTH CATALYST
The backbone of Central Luzon’s economic surge lies in its massive infrastructure projects. The Central Luzon Link Expressway Phase 1, completed in 2021, has already enhanced connectivity within the region. Looking ahead, transformative projects such as the New Manila International Airport, expected beyond 2028 with a capacity of 100 million passengers annually, and the Manila-Clark Railway, slated for completion in 2028, promise to revolutionize mobility and trade within the region. Other projects, including the North Luzon Expressway–South Luzon Expressway (NLEX-SLEX) Connector (2026) and Metro Rail Transit (MRT) Line 7 (2027), will further integrate Central Luzon with Metro Manila, reducing travel times and boosting commercial activities.

Air transport is also being strengthened, with the expansion of Clark International Airport (completed in 2021) and the Bulacan Airport project, an ambitious airport project that will likely be at par with major airports in Southeast Asia such as Changi in Singapore. These developments will position Central Luzon as a future logistics hub, capable of supporting both domestic and international trade.

CONSTRUCTION AND SERVICES DRIVING GROWTH
The construction sector has been particularly robust, registering 13.7% growth in 2024, nearly doubling its 7.3% expansion in 2023. This surge reflects both public infrastructure spending and private real estate development in central Luzon. With national players positioning to capture office, residential, leisure, retail, and industrial demand in the region, we expect private construction to rise steadily.

Services, including information and communication, also contributed positively, with a 5% growth rate in 2024. The sub-segment is partly propelled by the attractiveness of the region’s outsourcing segment. Big outsourcing firms such as Majorel, Cloudstaff, Concentrix, Alorica, Asurion, Infosys, TaskUs, iQor, and Sutherland are already in the region.

Together, construction and services are reshaping the region’s economic landscape, creating jobs, and attracting investments which result in a more inclusive economic expansion.

REAL ESTATE APPRECIATION IN CENTRAL LUZON AND  ITS CENTRAL ROLE IN NATIONAL PROGRESS
Central Luzon’s economic momentum is mirrored in its real estate market. Lot-only developments have experienced healthy price increases, with projects launched in recent years showing strong compounded annual growth rates (CAGR).

Central Luzon’s growth story is not just regional — it is national. Its proximity to Metro Manila, coupled with massive infrastructure investments, positions it as a key driver of decentralization. By easing congestion in the capital and offering alternative hubs for business and industry, Central Luzon supports the government’s vision of balanced regional development.

AT THE CENTER OF PHILIPPINE PROPERTY’S TRANSFORMATION
Central Luzon’s trajectory illustrates how infrastructure, construction, and services can synergize to propel regional growth and eventually contribute to national progress. With its expanding share to the national GDP, booming real estate market, and transformative public projects on the horizon, the region is poised to become a cornerstone of Philippine economic progress.

As the country continues to pursue inclusive development, Central Luzon stands out as a model of how strategic property investments can unlock long-term prosperity.

Moving forward, Central Luzon’s role to national progress will be pivotal as its growth angle is national and not just regional.

 

Joey Roi Bondoc is the director and head of Research of Colliers Philippines.

joey.bondoc@colliers.com

Entertainment News (03/24/26)

Benilde hosts free film activities

A THREE-DAY event dubbed BenildeFilm Experiences Week, will be held at De La Salle-College of Saint Benilde. The public is invited to the event’s film screenings, masterclasses, and lectures. Film academic and Benilde faculty Ed Cabagnot will kick it off with a lecture on liminal cinema on March 24, followed by screenings of the 2024 QCinema Shorts, three of which were directed by BenildeFilm alumni: Refrain by Joseph Dominic Cruz, Alaga by Nicole Rosacay, and Supermassive Heavenly Body by Sam Villa-Real. The screening will include a talkback with the filmmakers. Benildean Film Works Day is slated on March 25, featuring screenings of women-led short films and a roundtable discussion with the filmmakers. Then, on March 26, Full Post Asia Chief Executive Officer John Wong is set to hold masterclasses on accelerated post-production, high-speed workflows, and pro techniques, plus viewings of short films. To cap off the affair, the audience can watch a directing showcase which features the short films of the students of director Dwein Baltazar. The event is free and open to the public. For tickets and the complete schedule of activities, visit tinyurl.com/BFXWeekMarch2026.

Thai pop star ALLY is coming to Manila

THAILAND’S rising pop star ALLY (real name: Achiraya Nitibhon) is launching her global push, with performances in Manila on March 24 to 26, the first stop of her international tour. The South Korean-trained artist will be using the tour to expand her Southeast Asian footprint. It follows the release of her first all-English single, “but you,” featuring JHIN. Aside from her music, ALLY is also a brand ambassador for Chanel and an actress in the Netflix series The Believers and upcoming K-pop thriller film Perfect Girl. The schedule of her performances in Manila can be found on her social media.

They Will Kill You now in Philippine cinemas

THE horror-action-comedy They Will Kill You is now showing in Philippine cinemas. Starring Zazie Beetz, Tom Felton, Heather Graham, and Patricia Arquette, it is produced by Andy Muschietti (the director of horror hits It, It Chapter Two, and Mama) and Barbara Muschietti. Set in The Virgil, a hellish place based on Dante’s Inferno, a young woman (played by Ms. Beetz) must survive the night and escape a demonic cult’s lair, each floor of which is literally a different circle of hell. Otherwise, she may become their next offering.

Imago releases new EP

FILIPINO alternative band Imago has dropped their new EP, Pasimple, a five-track collection that marks the band’s first official studio release under Sony Music Entertainment and their sixth overall. It continues their style of emotional introspection paired with expansive, guitar-driven arrangements. It was produced and arranged by the band alongside longtime collaborators Raymund Marasigan and Buddy Zabala. The EP’s focus track, “Lagi Na Lang,” captures the exhausting and repetitive patterns of a relationship in slow decay. It is out now on all digital music streaming platforms.

Kids’ summer fair now open for registration

SM SUPERMALLS’ The Podium will be holding TINY Tycoons, a fair where children get to experience being little entrepreneurs in a fun, safe, and empowering environment, this summer. As part of the program, children can sell their own creations or pre-loved items, join the SM Little Crew experience where they sell in actual stores in different time slots, and enjoy a clean concert at the end of each day. Entrance is free via the SM Online App. If they book on or before March 24, they get to attend a free Mario Galaxy movie screening on April 11 at The Podium.

Spotify holds BTS Music Quiz

ALONGSIDE the release of BTS’ comeback album, Arirang, Spotify has launched a feature called the “BTS Music Quiz,” now live in-app for Spotify Premium listeners globally. Inspired by the journey reflected in Arirang, the experience invites fans to revisit some of the defining moments that shaped BTS’ artistic legacy and flex their BTS knowledge. Under any BTS track, users can scroll down in the “Now Playing” view to find the Music Quiz banner. They can also share their quiz score and challenge a friend to take it as well. The quiz is available for Premium listeners globally in English, Indonesian, Korean, Japanese, Portuguese, and Spanish.

CA7RIEL, Paco Amoroso release new album

MUSICIANS CA7RIEL and Paco Amoroso have released their new album, Free Spirits, which stretches their blend of trap, rock, pop, and left-field spectacle into something bigger. The album is accompanied by a short film which offers a more detailed sense of the groundbreaking techniques employed at the Free Spirits Center. It features guests like Sting, Jack Black, Fred again.., and Anderson .Paak.

On hydropower and net metering

STOCK PHOTO | Image by Brgfx from Freepik

Iran has the fourth largest oil reserves in the world with 157.8 billion barrels, next to Venezuela, Saudi Arabia, and Canada. It also has the second largest gas reserves in the world with 32.1 trillion cubic meters (tcm), next to Russia’s 37.4 tcm. This information is not new.

But I was surprised to learn that Iran also has a large hydropower capacity. In 2019, their hydropower plants produced 33.9 terawatt-hours (TWh) of electricity while the Philippines’ hydro plants produced only 8 TWh that year. But their hydro plants lacked continuing investments and innovation, so by 2024 they produced only 18.9 TWh, which was still larger than our 11.9 TWh that year.

I checked the details on the world’s large hydropower producers. In terms of volume, the largest is China with 1,354 TWh in 2024 or 30% of total global hydro generation. It was followed by Brazil, Canada, the US, and Russia.

In terms of hydro to total generation ratio, the largest is Norway with 88% in 2024, followed by Venezuela with 87%, and Ecuador with 66%. The global ratio is 14% (see Table 1).

TOURING AMBUKLAO
The huge Philippine Electric Power Industry Forum (PEPIF) 2026 was held on March 12 in Baguio City, organized by the Independent Electricity Market Operators of the Philippines (IEMOP) and co-sponsored by four corporations — SN Aboitiz Power (SNAP), Meralco Power Gen Corp. (MGEN), ACEN, and Exist.

After the PEPIF, I asked SNAP if I could visit their nearest hydropower plant; they agreed and toured me through the Ambuklao hydro plant, which is just one hour from Baguio City. SNAP’s Kris Vargas accompanied me as we were brought around by Ambuklao’s Plant Manager, Hollis Fernandez, who gave me something like a brief Mechanical Engineering 101 course in one hour. He’s a cool guy.

Mr. Fernandez drove us deep below the huge water reservoir and showed me Ambuklao’s facilities — a penstock, the three turbines (which produce 37.5 MW each), the electricity generator, the transformer to boost voltage for transmission, the cooling system, the elaborate electrical cables, then a long steep stairs — hundreds of steps with no landings — all the way to the top of the water reservoir. We did not climb it of course; my senior citizen legs would never forgive me if I did, even if I was an active mountaineer in my younger days.

During the PEPIF, SNAP President and CEO Joseph Yu said that their company operates a total of 673 MW of hydro installed capacity in Northern Luzon. He also emphasized that while SNAP owns the hydro plant facilities, the dams, weir, and reservoir are still owned by the government via the National Power Corp.-Power Sector Assets and Liabilities Management  Corp. (NPC-PSALM) and the National Irrigation Administration (NIA).

I checked the Department of Energy website for information on the large hydro plants in Luzon. SNAP owns three of the nine plants — Ambuklao, Binga, and Magat. The good thing here as explained by both Messrs. Yu and  Fernandez, is that SNAP has significantly increased the capacity of these three plants. For example, Ambuklao’s capacity was increased from the original 75 MW to 112.5 MW, an expansion of 37.5 MW which was done without raising the height of the dam. It was done just through innovations and modernization of the facilities. Their Norwegian partner Scatec (formerly SN Power) provided the modern facilities and engineering innovations as Norway is the most sophisticated hydropower producer in the world.

Aboitiz Power (AP) is the largest hydro operator in the Philippines, especially with their purchase of the Caliraya-Botocan-Kalayaan (CBK) pumped storage hydro (PSH) via Thunder Consortium, AP’s partnership with Sumitomo Corp. and J-Power, both of Japan. Plus there are SNAP’s three plants and Bakun of Luzon Hydro, an AP subsidiary.

San Miguel Global Power (SMGP) is second largest hydro operator with their huge San Roque plant via subsidiary Strategic Power, and Angat Hydro (see Table 2).

The man responsible for the early expansion of SNAP’s business was Manny Rubio, its president in 2007 when SNAP acquired Magat, then Ambuklao, then Binga. He developed the project financing to acquire the three plants in a year — what a finance wizard! In 2007, Ambuklao was still non-operational after the big earthquake of 1990, Binga was running but degraded, and Magat he converted from a baseload to a merchant peaking plant. Within 18 months of operations, SNAP surpassed its financial targets, supported by effective trading strategies and disciplined operations and maintenance.

Mr. Rubio later became President and CEO of AP, from 2015 until his retirement in 2024. Then, the day after his retirement, Manny V. Pangilinan got him to head MGEN. MGEN is very lucky to have this engineer-finance whiz.

I also spoke to SNAP’s Mr. Yu and I listened to his presentation at PEPIF — the guy is another finance and tech wizard. He spoke not only about megawatts from hydro, megawatt-hours from battery energy storage systems, but also about digital transformation, data science, predictive analytics, and integrated remote operations. Topics that are Greek to me.

NET METERING
Meanwhile, a brief note about how net metering from rooftop solar owners are being paid by private distribution utilities (DUs) and electric cooperatives (ECs). Today it is paid at the average generation cost of DUs and ECs, which is higher than the average wholesale electricity spot market (WESM) prices. When the net metering policy was developed and enacted, WESM prices were high during the day, making the case of buying electricity at average generation cost valid. Also, solar panel costs were more than twice the current costs of around $0.11-0.13 per kWh peak.

Today, WESM prices are low and solar panel prices are low, so why pay the rooftop owners the average generation cost? This raises the rates of DUs and ECS, which are then passed on to customers who cannot afford rooftop solar. The business case for rooftop solar has changed, they do not need incentives like net metering anymore.

 

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

SEC says new reporting rules to improve transparency, trust

Francisco Ed. Lim — FACEBOOK.COM/PHILIPPINESEC

THE Philippines’ move to adopt International Sustainability Standards Board (ISSB) disclosure standards is expected to strengthen transparency and trust in markets, the Securities and Exchange Commission (SEC) said.

SEC Chairperson Francisco Ed. Lim said during the Economic Journalists Association of the Philippines’ sustainability forum on Monday that companies should not conceal forward-looking risks, as investors consider these in capital allocation decisions across global markets.

“These are questions that investors deem important, and eventually it will decide how investors, how capital will be allocated to the different markets globally,” he said.

“Because I think, as I said again, trust is an invisible currency for markets. The more you disclose and the more complete and clear your disclosure, the credibility to the market will be sustained,” Mr. Lim added.

The SEC last year issued a memorandum adopting the Philippine Financial Reporting Standards (PFRS) on sustainability disclosures, setting guidelines to help covered companies prepare and submit reports aligned with international standards.

Memorandum Circular (MC) No. 16, Series of 2025, implements PFRS S1, which sets general requirements for sustainability-related financial disclosures, and PFRS S2, which covers climate-related disclosures. It repeals MC No. 4, Series of 2019, which required only publicly listed companies (PLCs) to submit sustainability reports. 

“Trust depends on what can be verified. Sustainability claims must not run ahead of facts. They must be grounded, measured, and governed with discipline. Everything less does not just weaken disclosure; it weakens the markets,” Mr. Lim said.

He said traditional corporate reporting focuses on past events, such as material incidents affecting operations, while sustainability reporting requires companies to disclose potential future risks that may affect investor decisions.

“Based on my understanding, you as the listed company should disclose that. You can’t hide it… All that is to disclose what can affect or what will affect the decision of your investors,” Mr. Lim said.

He said regulators are not imposing additional burdens on companies but are encouraging greater transparency in the market.

From the private sector, Metro Pacific Investments Corp. (MPIC) Chief Finance, Risk, and Sustainability Officer Chaye A. Cabal-Revilla said companies view sustainability reporting as part of strengthening operations and preparing for long-term risks.

“We don’t look at it as a burden. We take it as our responsibility to look at our resiliency and future of our businesses because in the case of the Philippines, where we get 20-25 category four to five storms on a yearly basis, we get floodings, etc. If we do not do anything, if we do not do our work too hard in our assets or fortify our network… therefore our businesses will also be impacted negatively,” she said.

Under the memorandum circular, PLCs and large non-listed companies (LNLs) under Section 17.2 of Republic Act No. 8799 must attach board-approved sustainability reports to their annual reports, while other LNLs must submit these alongside audited financial statements.

The adoption of PFRS S1 and S2 will be phased in starting fiscal year 2026. Tier 1 PLCs with a market capitalization of more than P50 billion as of Dec. 31, or upon listing thereafter, must begin PFRS-based reporting in 2027 for fiscal year 2026.

Tier 2 PLCs with market capitalization of over P3 billion to P50 billion will adopt PFRS in 2028 for fiscal years beginning on or after Jan. 1, 2027.

Tier 3 includes PLCs with market capitalization of P3 billion or less, debt-listed PLCs on the Philippine Dealing & Exchange Corp., and LNLs with more than P15 billion in prior-year revenue. These entities will adopt PFRS in 2028 for fiscal years beginning on or after Jan. 1, 2028.

Covered companies may also use other recognized international frameworks alongside PFRS S1 and S2, provided these do not conflict with the standards, obscure material information, and are properly disclosed. — Alexandria Grace C. Magno

BSP bills fetch higher average rate on weak demand

BW FILE PHOTO

YIELDS on the Bangko Sentral ng Pilipinas’ (BSP) short-term securities climbed on Monday as the offer was met with weak demand.

The 28-day BSP bills drew only P42.501 billion in bids on Monday, lower than the P60-billion offer and the P70.788 billion in tenders for the same volume auctioned off on March 13. The central bank did not hold the auction on Friday due to the Eid’l Fitr holiday.

This translated to a lower bid-to-cover ratio of 0.7084 times from 1.1798 previously.

As a result, the BSP accepted all P42.501 billion in tenders for a partial award of its offering.

Accepted yields widened to the 4.4% to 4.6% range from 4.3875% to 4.545% in the previous auction. With this, the average accepted rate of the 28-day bills rose by 3.92 basis points to 4.4856% from 4.4464%.

The BSP has not auctioned off the 56-day bills since Nov. 3.

The central bank uses the BSP securities and its term deposit facility to mop up excess liquidity in the financial system and to help guide short-term market yields towards its policy rate.

BSP Deputy Governor Zeno Ronald R. Abenoja earlier said the central bank has reduced its issuance of short-term papers to enhance monetary policy transmission and encourage banks to better manage their liquidity.

Data from the BSP showed that around 50% of its market operations are done through its short-term securities.

As of mid-November 2025, the central bank’s monetary operations have siphoned off P1.5 trillion in liquidity from the market. Of this, 42.4% was absorbed through BSP securities, 34.6% from overnight reverse repurchase agreements, 17.6% via the overnight deposit facility, and 5.4% through the term deposit facility.

The BSP bills also contribute to improved price discovery for debt instruments while supporting monetary policy transmission.

The central bank began auctioning off short-term securities weekly in 2020, initially offering only a 28-day tenor and adding the 56-day bill in 2023. — Katherine K. Chan

Ayala Land rebrands flexible office offering as Click Space

AYALA LAND

AYALA LAND OFFICES, the office development and leasing arm of Ayala Land, Inc. (ALI), is rebranding its flexible office offering Clock In as Click Space, a plug-and-play workspace solution with build-to-suit options and enterprise support tailored for hybrid work, technology shifts, and evolving business needs.

“This evolution reflects our vision to go beyond providing space. We are building ecosystems that help businesses scale, stay resilient, and thrive in a world that is changing faster than ever,” Ayala Land Offices President and Chief Executive Officer Hamm E. Katipunan said in a statement on Monday.

The company said the new offering targets larger tenants in the technology, creative, and professional services sectors.

“While its identity and offerings have evolved, its core remains unchanged, continuing to deliver high-quality workspaces, foster a meaningful community, and uphold a steadfast commitment to customer care and operational excellence,” the company said.

Ayala Land Offices said it plans to launch a flagship location at One Ayala, featuring an updated design, additional services, and a new Deuces coffee branch. It added that it is scouting expansion sites in key business districts over the next one to two years.

At the local bourse on Monday, shares in ALI declined by 7.44% to P16.92 each. — Alexandria Grace C. Magno

BTS comeback show’s turnout falls short, sparking Hybe sell-off

WIKIMEDIA COMMONS

HYBE CO.’S shares plunged as much as 15% after a heavily promoted comeback concert by K-pop megastars BTS drew a smaller crowd than authorities initially expected.

Stock in BTS’ agency recorded its biggest intraday decline since June 2022. The group’s event at Gwanghwamun Square attracted 104,000 fans versus the 260,000 initially estimated by police, according to Chosun Ilbo. Stringent crowd control measures — reflecting in part the authorities’ focus on avoiding a repeat of the Itaewon incident years ago — may have played a part.

The concert was live-streamed by Netflix, Inc., which should release viewership figures later this week. The group performed 12 songs during the hour-long show, ranging from new tracks on their album Arirang to hits such as “Butter” and “Dynamite.” The event also drew more viewers on Netflix, topping daily charts in countries including South Korea over the weekend.

BTS is returning to the global stage after a near-four-year hiatus, when its seven members underwent mandatory South Korean military service. They’re embarking on their largest-ever tour, with 82-stops already sold out.

The preliminary reception to their new work was strong. The album quickly topped Spotify charts after its release. Several songs led rankings including on Spotify and iTunes, while the album sold 4 million copies on its first day.

The stakes are immense for both BTS and Hybe. The success of the group will dictate the future of Hybe, its management company and record label. Despite Hybe’s global expansion through the acquisitions of labels from Hollywood to Latin America, BTS remains the company’s core earnings driver. Profit growth had been sluggish during the group’s hiatus. — Bloomberg

BoJ’s narrative shift signals dogged commitment to rate hikes

THE Japanese national flag waves at the Bank of Japan building in Tokyo, Japan on March 18, 2024. — REUTERS/KIM KYUNG-HOON/FILE PHOTO

TOKYO — The Bank of Japan (BoJ) is laying the groundwork for tweaks to its policy language in April, keeping alive the chance of a near-term interest rate hike as the weak yen and Middle East conflict pile inflationary pressures on the economy.

While the central bank kept rates steady last week, Governor Kazuo Ueda signaled that the bank was shifting away from a focus on downside risks to the economy that required a slow, cautious approach in pushing up borrowing costs.

For one, Mr. Ueda said the board will debate next month tweaking guidance that rate increases would come “in accordance with improvements” in the economy — language seen by some analysts as ruling out the chance of a hike when growth was under pressure.

“Even if the economy comes under downward pressure, if we judge that such downward pressure would be temporary and will not affect underlying inflation, it would be possible for us to raise interest rates,” he said in unusually hawkish remarks that contrast with his typical emphasis on risks to growth.

Any such change would leave scope for the BoJ to hike rates, even if the board cuts its growth forecasts in new quarterly forecasts due at the April 27-28 policy meeting, analysts say.

CHANGING THE STORY ON INFLATION
Another tweak Mr. Ueda revealed was a plan to disclose by summer a new indicator on inflation and an updated staff estimate on Japan’s neutral rate of interest, a move he described as part of the BoJ’s efforts to enhance communication.

The new price gauge adds to data the BoJ looks at in determining Japan’s underlying inflation, or price moves driven by domestic demand rather than cost-push factors.

While the central bank already releases estimates of consumer inflation excluding the impact of fresh food and fuel costs, such indices have been swayed by various government steps to cushion the blow to households from rising living costs.

The new indicator will strip away the effect of such government steps that work to push down inflation, including subsidies to slash school tuition fees and gasoline bills.

The gauge is expected to help the BoJ argue that underlying inflation remains on track to stably hit 2%, even if headline inflation briefly slides below the level, analysts say. 

“All else equal, such new measures could potentially help the BoJ to navigate through short-term disinflationary measures and justify a faster pace of rate hikes,” said Naomi Fink, chief global strategist at Amova Asset Management.

The BoJ could start releasing the new indicator in April and revise up its price forecasts to account for rising import costs from a weak yen, said Mari Iwashita, executive rates strategist at Nomura Securities.

“The BoJ appears to be doing what it can, including on the communication front, to proceed with policy normalization. It seems well prepared for the next rate hike,” she said.

MONETARY POLICY AND POLITICS
With the escalation in Middle East tensions jolting markets, however, there is no guarantee the BoJ can convince markets and dovish premier Sanae Takaichi of the need for more rate hikes.

Mr. Ueda’s hawkish remarks failed to sustain a rebound in the yen, which fell near the key ¥160-per-dollar mark on Monday to the disappointment of policymakers fretting of rising import costs from the currency’s weakness.

Japan’s heavy reliance on imports makes its economy vulnerable to surging fuel costs caused by the conflict.

In a sign of her focus on propping up growth, Ms. Takaichi has signaled the chance of compiling an extra budget to ramp up stimulus. Her reservations over near-term rate increases have not budged, two government sources told Reuters, with one saying the government may not nod to an April hike.

Mr. Ueda played down the likelihood of a rift, saying the government’s view on underlying inflation likely did not deviate much from that of the BoJ. With the weak yen and rising fuel costs piling inflationary pressure on Japan, markets still see roughly a 60% chance of an April rate hike.

But former BoJ executive Akira Otani, who is currently managing director at Goldman Sachs Japan, expects the central bank to wait until July for evidence the hit to profits from the Iran war does not discourage smaller firms from hiking wages.

“Given uncertainty over Middle East developments and comments from the government, we see the hurdle for an April rate hike as quite high,” he said. “For the BoJ, deciding on an April rate hike won’t be as easy as markets expect.” — Reuters

South Asia’s Industrial Revolution is switching off gas

STOCK PHOTO | Image from Freepik

By David Fickling

OMER ASHRAF isn’t losing any sleep over the impact of the Iran conflict on his fleet of energy-hungry cement plants.

The Chief Financial Officer of Pakistan’s Fauji Cement Co. installed its first solar array in 2019 at Jhang Bhatar, about 50 kilometers west of the capital Islamabad. There are now 69 megawatts (MW) of panels across the company’s five main sites, at least twice what Tesla, Inc. appears to have on the rooftops of its gigafactories in Nevada and Texas.* They contribute about 23% of the company’s electricity, with a further 35% coming from recovering waste heat from its coal-fired clinker kilns.

The cost is just five to six rupees (about two cents) per kilowatt hour, around a fifth of grid prices, Ashraf told me. On-site gas-fired generators are available as back-up, but are barely used these days, given the cheaper options. There won’t be a major impact from the situation in the Strait of Hormuz, he said.

He’s not alone. In Pakistan and India, once key customers for the Persian Gulf’s liquefied natural gas exports, energy-hungry industries have been rapidly shifting away from both gas and grid power to make use of cheap, abundant solar energy.

Bangladesh, for years South Asia’s economic success story, made the opposite bet. That was the wrong decision. With the world’s largest LNG terminal, Qatar’s Ras Laffan, shut down and suffering extensive damage from Iranian attacks this week, a fifth of global supplies are now offline.

Solar’s advantages are most apparent in the textile business. Since the Industrial Revolution spread through England’s cotton mills in the 18th century, garment factories have been many countries’ first step toward development. Clean energy is speeding the process.

India’s apparel plants now derive about 28% of their electricity from renewables, according to a recent study by Moody’s Corp. affiliate ICRA ESG Ratings. Large factory roofs make installation of solar arrays straightforward.

Plenty are already surging ahead of rich-world companies in their clean power ambitions. Pakistan’s Nishat Mills Ltd. and Interloop Ltd., which supply Gap, Inc. and Hennes & Mauritz AB, respectively have 35 MW and 25 MW of photovoltaic panels, comfortably on a par with Tesla. Bengaluru-based Gokaldas Exports Ltd., whose customers include Adidas AG, derives 79% of its energy from solar, biomass and other clean sources.

Green motivations aren’t completely absent. Fashion companies have for many years been under pressure to clean up their supply chains. That trend is being accelerated by the European Union’s Carbon Border Adjustment Mechanism, which came into force this year and adds a sort of tariff onto imports equivalent to the carbon price they’d have paid if manufactured locally. Exporters who build out renewables will spare themselves those levies.

But the payoff in power bills is sufficient to justify the switch. Solar provided electricity equivalent to a fifth of Pakistan’s grid power in the year through March 2024, the most recent available data, according to Renewables First, a pro-energy transition group. This has left the country with less need for imported LNG.

About 35 gas shipments are now being diverted every year because they’re not needed, said a recent report by AKD Securities Ltd., equivalent to about a quarter of typical import volumes. This has already spared Pakistan about $12 billion of spending on imported LNG and oil and could save a further $7 billion this year, wrote Lauri Myllyvirta, co-founder of the Center for Research on Energy and Clean Air.

Countries that threw in their lot with LNG are in a tighter spot. Bangladesh, whose 4,000-odd garment factories are key suppliers for the global fast-fashion industry, has been far slower to switch to renewables. Just 1.6 gigawatts (GW) of solar has been connected nationwide, compared to as much as 34 GW in Pakistan. Import tariffs for photovoltaic equipment of nearly 30% deter businesses from deploying rooftop power. While Pakistan’s LNG imports have shrunk since the Ukraine war, Bangladesh’s have almost doubled.

With the crisis in Hormuz disrupting supplies of gas and diesel for back-up generators, the country’s utilities are now scrambling to get their hands on coal, which costs almost twice as much as gas on the grid. Those shortages, combined with the effect of energy-related inflation on garment worker wages, will erode Bangladesh’s longstanding cost advantage over rival apparel factories elsewhere in the region.

It’s a far cry from the banal truisms used to market gas to emerging economies. As missiles flew across the Persian Gulf and buyers scratched around for alternative supplies, Shell Plc’s annual LNG outlook hailed the fuel as a “stabilizing force in the energy system.” About 70% of demand growth out to 2040 will come from Asia, Shell wrote, “because it is versatile, flexible, and reliable.”

That’s a remarkable assertion amidst the chaos of 2026. In future, gas producers are going to need more than platitudes to convince customers they’re worth the risk. n

BLOOMBERG OPINION

*Tesla doesn’t disclose figures for its rooftop generation. We estimated a figure of about 13 megawatts at each facility, based on 2026 satellite photos of the plants.

Foxmont eyes to invest P4B in PHL startups, key sectors

STOCK PHOTO | Image by Rawpixel.Com from Freepik

FOXMONT CAPITAL Partners (Foxmont), a venture capital firm focused on tech-enabled startups, plans to invest P4 billion in Philippine companies over the next few years, focusing on heavy manufacturing, solutions-driven enterprises, and the health technology sector.

“In investing in the Philippines, there is a lot of interest. We have a lot of international investors that are making maiden investments, that means that investors that have not invested in the Philippines before are now increasingly allocating capital to the Philippines,” Foxmont Managing Partner Franco Varona told reporters during the 2026 Philippine Private Capital Report launch on Monday.

Foxmont has invested in 44 startups since 2018.

Foxmont said private capital funding in the Philippines grew 34% year on year to $490 million in 2025, supported by a surge in debt financing alongside moderate gains in equity activity.

It said financial technology (fintech) and health technology companies continued to attract strong investment interest.

“The increase was driven by larger transactions and a broader mix of financing structures, signaling sustained investor interest despite tighter regional and global capital conditions,” it said.

Foxmont said that while funding in the Philippines is rising, the country is undergoing a shift from a consumption- and labor-driven growth model to one led by productivity, where private capital will play a key role.

“The Philippines has long benefited from favorable demographics and resilient demand, but the next phase of growth will depend on productivity, capital formation, and stronger firms,” Foxmont Managing Partner Jelmer Ikink said in a separate media release.

China Bank Capital Corp. Managing Director Juan Paolo E. Colet said the private market is likely to remain resilient despite ongoing geopolitical tensions that could weigh on sentiment.

“So far, private markets appear to be resilient with a number of potential deals in the pipeline, but it’s a fluid situation given the effects of the Middle East war. Depending on the duration and scale of the conflict, some transactions might be reassessed or delayed because of rising financing cost as well as the war’s impact on certain business assumptions,” he said in a Viber message. — Ashley Erika O. Jose

PHL real estate seen buffering long-term investments from inflation — Cushman

STOCK PHOTO | Image by Bantersnaps from Freepik

THE PHILIPPINE real estate sector’s “strong fundamentals” may help cushion long-term investments from global inflation linked to the Middle East conflict, although higher construction costs remain a risk, according to real estate services firm Cushman & Wakefield.

“The recent geopolitical developments in the Middle East, particularly concerning energy transit routes, have introduced new inflationary pressures globally. While this may influence local construction and operational costs, the Philippine real estate sector’s strong fundamentals provide a substantial buffer for long-term investments,” Cushman & Wakefield Philippines Director and Head of Research, Consulting and Advisory Services Claro Cordero, Jr. said in the company’s fourth annual Southeast Asia Outlook report released last week.

In 2025, Southeast Asia’s real estate investment market recovered, with volumes rising 16% to $21.8 billion despite global economic challenges and policy uncertainty, the report said.

The increase came from stronger capital flows into industrial and digital infrastructure, as investors focused on sectors linked to supply chain shifts and artificial intelligence growth.

The report noted that global geopolitical risks persist, including unresolved trade agreements and potential tariff changes affecting transshipment and sectors such as pharmaceuticals and electronics. However, it said the Philippines has lower exposure than Vietnam, Thailand, or Malaysia due to its larger domestic market and lower reliance on US exports.

“Headwinds do not erase opportunity, they reveal it. In a dynamic global environment, the Philippine real estate market continues to surface strategic pockets of growth that are set to stand out in 2026 for investors and developers with a disciplined, long term view,” Cushman & Wakefield Philippines Country Head Dom Fredrick Andaya said.

Wong Xian Yang, head of research for Singapore and Southeast Asia and author of the report, said Singapore continues to provide core liquidity in the region, while Southeast Asia is positioned for the next phase of growth amid diversifying supply chains and expanding institutional-grade assets.

“The recovery in 2025 reflects more than cyclical momentum — it signals a structural shift in capital allocation. Investors are increasingly targeting sectors aligned with manufacturing expansion and digitalization, particularly logistics and data centers,” he added.

Industrial investment sales across the region reached $1.3 billion in 2025, up 48%, with demand centered on prime logistics and warehouse spaces supported by e-commerce growth, third-party logistics expansion, and Southeast Asia’s growing role in global manufacturing.

Singapore, Malaysia, Thailand, and Vietnam benefited from strong trade flows and manufacturing activity, while Indonesia and the Philippines were supported by steady domestic consumption.

Data centers led Southeast Asia’s property investments by volume in 2025, with Johor capturing spillover demand from Singapore. Thailand, Indonesia, the Philippines, and Vietnam remain underserved but are seen as having strong growth potential.

“SEA countries remain an attractive growth target for data centers development and remain underserved, though markets are at different stages of development,” the report said.

For 2026, Southeast Asia is projected to grow by 4.3%, reinforcing its position as one of the world’s fastest-growing regions.

Private consumption across Southeast Asia, excluding Singapore, is projected to reach $5 trillion by 2035, growing at about 8% annually, supported by easing inflation, lower policy rates, and stable unemployment.

“Southeast Asia’s momentum is being fueled not only by investor appetite, but by the region’s expanding consumer base, young workforce and ambitious infrastructure build-out,” Anshul Jain, chief executive – India & Southeast Asia & APAC Office and Retail at Cushman & Wakefield, said.

“We’re seeing stronger cross-border capital movement, deeper participation from global corporates, and growing demand for high-quality, sustainable space — particularly in data centers, where hyperscale expansion continues to accelerate across the region. These fundamentals are enhancing Southeast Asia’s competitiveness and will shape the next phase of real estate growth,” he added. — A.G.C. Magno

Kevin Spacey settles UK civil lawsuits over alleged sexual assault

KEVIN SPACEY in House of Cards

LONDON— Oscar-winning US actor Kevin Spacey has reached a confidential settlement with three British men who had filed civil lawsuits at London’s High Court accusing him of sexual assault between 2000 and 2013, according to a court order made public this week.

Two of the claimants were complainants who gave evidence during Mr. Spacey’s 2023 criminal trial in London, where the now 66-year-old actor was acquitted of all charges.

Mr. Spacey, one of Hollywood’s biggest stars before he was first accused of sexual assault in 2017, has consistently denied accusations of sexual misconduct and said the incidents alleged in the lawsuits did not happen or were consensual.

A court order dated March 13 said that the lawsuits have been stayed following the settlement, meaning a trial that had been scheduled for October will now not take place.

Mr. Spacey’s lawyers did not immediately respond to a request for comment. A spokesperson for the claimants’ lawyers declined to comment.

Mr. Spacey, who won Oscars for American Beauty and The Usual Suspects, was dropped from the TV drama House of Cards and removed from the movie All the Money in the World after the first allegations of sexual assault emerged.

A civil lawsuit against Mr. Spacey in the United States was dismissed by a jury in 2022, and he stood trial in London the following year, charged with sexually assaulting four men in Britain. He was acquitted of all nine charges. — Reuters

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