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Chinese navy patrols South China Sea, says Philippines creating ‘disturbances’

AN AERIAL photo of Philippine-occupied Thitu Island, locally known as Pag-asa, in the contested Spratly Islands. — REUTERS

BEIJING/MANILA – China’s navy conducted a patrol in the South China Sea on Tuesday, saying that the Philippines has been creating “disturbances”, as the Filipino and U.S. air forces conducted their own joint mission above the disputed waterway.

China, which claims almost the entirety of the South China Sea, has been involved an increasingly tense stand-off with the Philippines in the waters there, as both seek to assert their sovereignty claims.

More than 14,000 Filipino and U.S. soldiers are participating in joint exercises which run from April 21 through May 9 for a “full battle test” in the face of shared regional security concerns. China has said the drills are provocative.

In a statement late on Tuesday, the Southern Theatre Command of China’s People’s Liberation Army said its forces had that same day carried out “routine” patrols in the South China Sea, without giving an exact location.

“Recently, the Philippines has been frequently carrying out maritime infringement provocations, creating disturbances and pulling in countries from outside the region to organise so-called ‘joint patrols’,” it said in a statement.

The command’s naval and air forces have monitored the situation and maintained vigilance, it added.

“Troops in the theatre of operations are maintaining a high level of alert, resolutely defending the country’s territorial sovereignty and maritime rights and interests, and resolutely safeguarding peace and stability in the South China Sea region.”

The Philippine military, in its own statement late on Tuesday, said the Philippines and U.S. air forces had conducted a joint patrol over the South China Sea that day as part of ongoing defence cooperation.

The maritime patrol involved three FA-50 fighter jets from the Philippine Air Force, along with two U.S. B-1B bombers, two F-16s and an F-18. — Reuters

Fitch Ratings affirms PHL ‘BBB’ rating

Fitch Ratings affirmed the Philippines’ investment grade rating at “BBB” with a “stable” outlook. — PHILIPPINE STAR/RYAN BALDEMO

By Luisa Maria Jacinta C. Jocson, Senior Reporter

FITCH RATINGS affirmed the Philippines’ investment grade rating and kept its “stable” outlook amid the country’s strong growth prospects and minimal exposure to trade tensions.

In a rating action commentary on Tuesday, the credit rater said it affirmed the Philippines’ long-term foreign currency issuer default rating at “BBB,” which indicates low default risk and reflects the economy’s adequate capacity to pay debt.

The debt watcher also kept the outlook on the rating at “stable,” which means it is likely to be maintained rather than lowered or upgraded over the next 18-24 months.

“The ‘BBB’ rating and ‘stable’ outlook reflect the Philippines’ strong medium-term growth, which supports a gradual reduction in government debt-to-GDP, and the large size of the economy relative to ‘BBB’ peers,” it said.

However, Fitch said this is “constrained by low GDP (gross domestic product) per head, despite an upward trend. Governance standards are weaker than those of ‘BBB’ peers, though Fitch believes World Bank Governance Indicator (WBGI) scores somewhat overstate this.”

Fitch expects the Philippines’ GDP to grow by 5.6% this year, below the government’s 6-8% target.

It noted Philippine economic growth is being driven by “large public investments in infrastructure, services exports and remittance-funded private consumption.”

“Private demand should be supported by easing inflation and interest rates. However, domestic political uncertainty could affect investment, while global trade tensions will likely drag on growth, in particular indirectly through weaker global demand,” it added.

Real GDP growth is still expected to expand to over 6% in the medium term, Fitch said.

“Our forecast reflects a payoff from investments in infrastructure and a series of structural reforms in recent years to liberalize the economy and foster trade and investment, including through public-private partnerships.”

“Technological change poses risks to the Philippines’ large outsourcing sector, although it is adapting,” it added.

Meanwhile, the credit rater also noted the Philippines is relatively unaffected by global trade uncertainties, citing its lower reciprocal tariffs compared with its neighbors.

“The Philippines is a relatively closed economy, with goods exports of only about 12% of GDP in 2024, mostly electronics and machinery, based on balance of payments statistic. Over 16% of goods exports were to the US.”

The US slapped a 17% reciprocal tariff rate on the Philippines, which was the second lowest in Southeast Asia. However, this higher tariff has been suspended until July.

Fitch said the relatively lower US duties could be an advantage compared with its regional peers.

“The Philippines’ terms of trade could benefit from lower commodity prices or diversion of Chinese exports,” it added.

The debt watcher also cited the country’s “success in taming inflation” and expects further monetary easing this year.

“We expect consumer price inflation to remain around 2% in 2025-2026, at the lower bound of the central bank’s target range,” it said.

“We continue to view the central bank’s inflation-targeting framework and flexible exchange-rate regime as credible,” it added.

BSP Governor Eli M. Remolona, Jr. welcomed Fitch’s reaffirmation of the country’s credit rating and stable outlook.

“The BSP took actions to help keep inflation manageable and promote sustainable economic growth. The BSP will continue to do so,” he said in a statement.

Inflation averaged 2.2% in the first quarter, well within the central bank’s 2-4% target.

“Monetary financing of the fiscal deficit during the pandemic was limited and reversed more quickly than in some peers. The government’s response to the commodity-price shock was measured, for example, in resisting calls for widespread fuel subsidies,” according to Fitch.

Fitch expects a slower fiscal consolidation path, given the “government’s overriding focus on growth and a less permissive domestic political environment.” 

The government is targeting to gradually bring down its deficit-to-GDP from 5.3% this year to 3.7% in 2028.

Fitch sees the country’s general government deficit narrowing to 3.6% next year and its central government deficit hitting 4.6% by 2026.

The general government debt-to-GDP ratio is also seen to remain mostly unchanged at 54% to 55% from 2025 to next year.

“Strong nominal GDP growth and narrowing fiscal deficits contribute to our forecast of a downward path for government debt-to-GDP over the medium term,” it added.

Meanwhile, Fitch also said the Philippines’ current account  deficit will remain “broadly unchanged” from this year to 2026.

“Strong domestic demand, partly related to public infrastructure development, will continue to drive import growth, offset by lower hydrocarbon import prices and growth in remittances and service exports.”

Fitch also cited factors that could individually or collectively lead to a negative rating action, such as the failure to maintain stable debt-to-GDP levels; reduced confidence in medium-term economic growth; and a deterioration in foreign currency reserves.

On the other hand, factors that could support an upgrade are sustained reductions in the government’s debt levels, stronger-than-anticipated economic growth and the strengthening of governance standards, among others.

The BSP said the Fitch investment grade rating “signals low credit risk and affordable access to funding.”

“This enables a country to allocate funds to socially beneficial initiatives and programs,” it added.

DoF withdraws proposal to hike capital gains tax

FINANCE SECRETARY RALPH G. RECTO — PHOTO FROM DEPARTMENT OF FINANCE FACEBOOK PAGE

By Kenneth Christiane L. Basilio, Reporter

FINANCE Secretary Ralph G. Recto has withdrawn the Department of Finance’s (DoF) proposal to increase capital gains tax, donor’s tax and estate tax, citing higher revenue collections in the first quarter.

At the same time, Mr. Recto in a statement on Tuesday said that the government is not seeking to impose new taxes or revenue measures amid the government’s “robust fiscal position.”

“The government is properly managing its finances, ensuring that public needs are met without burdening the citizenry with new taxes,” he said. “At the same time, the DoF will continue to explore and strengthen nontax revenue sources to meet the revenue targets.”

In a letter to House Ways and Means Committee Chairperson and Albay Rep. Jose Ma. Clemente S. Salceda, Mr. Recto said the DoF is no longer pushing for the proposed amendments to the Capital Markets Efficiency Promotion Act (CMEPA) “which primarily sought to introduce measures that would secure our path to fiscal consolidation.”

“The Department respectfully requests to withdraw consideration thereof in view of the better-than-accepted revenue performance during the first quarter of the year,” he said.

Mr. Salceda’s office provided a copy of the letter to the media.

The DoF had previously urged legislators to replace the CMEPA with the Government Revenues Optimization through Wealth Tax Harmonization (GROWTH) bill.

Under its draft GROWTH bill, the DoF proposed to temporarily increase the rates of capital gains tax on real property, donor’s tax, and estate tax to 10% from 2025 to 2030. These rates will be reduced to 6% starting 2031.

The DoF had estimated this could yield around P300 billion in revenues.

In the letter to Mr. Salceda, Mr. Recto said the proposed tax hikes were only intended as a buffer for higher government spending during “times of crisis and to provide the government with fiscal space in the worst-case scenario.”

“With double-digit growth in tax collection, the government is well on track in meeting its fiscal consolidation goals,” Mr. Recto said.

According to the DoF, total tax collections jumped by 13.55% to P931.5 billion in the first three months of 2025, citing stronger tax administration and enforcement.

The Bureau of Internal Revenue’s (BIR) collections jumped by 16.67% to P690.4 billion as of end-March. Revenues generated by the Bureau of Customs (BoC) rose by 5.72% to P231.4 billion.

“This was primarily due to both revenue agencies’ continued success in strengthening tax administration, digitalization, and enforcement efforts,” the DoF said.

This year, the government is projecting to collect P4.64 trillion in revenues. Of this, P3.23 trillion is expected to come from the BIR and around P1.1 trillion from Customs.

Mr. Recto said the National Government’s (NG) revenue levels are “more than sufficient to support the expenditure requirements.”

The government is also managing its deficit and debt levels, he added.

The government’s deficit ceiling is capped at 5.3% of gross domestic product (GDP) this year. It is seeking to bring this down further to 3.7% by 2028.

The International Monetary Fund  earlier said that the Philippines has space to further enhance its tax efficiency, particularly in excise taxation, value-added tax and tax incentives.

Latest data from the DoF showed that the NG’s revenues as a share of GDP reached 16.72% in 2024, up from 15.73% in 2023.

However, the DoF’s withdrawal of its proposed tax hikes is considered moot since the CMEPA was already ratified by Congress last February. The bill is set to be transmitted to Malacañang for the President’s signature.

“Raising these taxes could have risked discouraging property transactions, capital mobility, and intergenerational wealth transfers, which are crucial for sustaining domestic consumption and investment,” John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said in a Viber message.

The government should carefully evaluate which tax measures to implement, ensuring they do not result in revenue losses while maximizing potential gains for the state, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Mr. Salceda said the government should pursue taxes on luxury goods if it wants to generate additional revenues. 

“That is a better tax on the wealthy,” he said.

Nixing the proposed hike on capital gains tax was a disappointing move, as it could have been a “small step” towards taxing wealthy Filipinos, Jose Enrique “Sonny” A. Africa, executive director of think tank Ibon Foundation, said in a Viber message.

“Keeping the lower rates on capital gains, donor’s and estate taxes reinforces fiscal inequity to favor the wealthy,” he said. — with Luisa Maria Jacinta C. Jocson

Modest growth in farm output seen in 1st quarter

Palay production likely grew in the first quarter due to favorable weather conditions, analysts said. — PHILIPPINE STAR/MIGUEL DE GUZMAN

THE PHILIPPINES’ agricultural output may have posted modest annual growth in the first quarter, as the crops sector benefited from favorable weather conditions, analysts said.

Agriculture Secretary Francisco P. Tiu Laurel, Jr. on Tuesday said he is expecting to see growth in all farm sectors except for hogs in the first quarter.

“Growth except in pork. For chicken, slight (growth). For rice, slight (growth),” he told reporters.

Mr. Laurel did not elaborate, although the hog industry continues to be impacted by the African Swine Fever (ASF) outbreak.

Farm production in the January-to-March period could have expanded by around 1% year on year, former Agriculture Secretary William D. Dar said in a Viber message.

“It could have been better,” he added.

If realized, this would be an improvement from the 0.05% growth in the first quarter of 2024, and a turnaround from the 2.2% contraction in the fourth quarter of 2024.

In 2024, agricultural and fisheries output shrank by 2.2%, reflecting the impact of the El Niño weather pattern.

Federation of Free Farmers Raul Q. Montemayor said in a Viber message that the volume of agricultural production likely improved since it came from a low base.

“Value wise, (it) will be lower due to drop in palay prices… Many farmers were discouraged by the drop in palay prices and may temper production in the second semester/wet season,” Mr. Montemayor said.

Jayson H. Cainglet of the Samahang Industriya ng Agrikultura noted that farmgate prices of palay have declined to P16-P17 per kilo from a year ago.

In the first quarter, Mr. Dar said the crops sector likely saw a turnaround due to the good weather conditions and government assistance.

Crops production contracted by 0.3% in the first quarter and slumped by 4.2% for the full year.

Philippine Chamber of Agriculture and Food, Inc. President Danilo V. Fausto said the crops sector likely posted growth in the first quarter as the year-ago performance was affected by El Niño.

While there are good prospects for the palay (unmilled rice) sector, he said a contraction is likely in sugar, coconut and onion production.

“Lack of irrigation, better planting materials and soil management will affect productivity for crops,” Mr. Fausto said in a Viber message.

Former Agriculture Undersecretary Fermin D. Adrian said the crops sector will “post modest growth” driven by a rebound in palay production.

“[This] cannot be said of livestock due to the ASF, and fisheries [due to] continuing depletion of our coastal resources and little progress in development of aqua/mariculture,” he added in a Viber message.

Livestock output shrank by 3.5% in the first quarter of 2024, and by 4.3% for the entire year. This was led by hogs, which fell by 4.3% in the period ending March and by 5.1% for the full year.

ASF continues to plague hog farms in the country. According to the Bureau of Animal Industry (BAI), ASF has been detected in 54 villages as of April 11 update, up from 39 as of March 14.

Meanwhile, Mr. Dar said the poultry sector, which grew by 5.9% in the first quarter of 2024, may post minimal growth due to avian or bird flu. The poultry sector rose by 6.6% in 2024.

“While there will be growth in poultry, it will be very little due to avian flu,” he said.

The BAI last week said the country had two active cases of avian influenza in Pampanga province.

For fisheries, Mr. Fausto said he expects seaweed production to continue to decline. Seaweed output declined by 0.4% in the first quarter of 2024, and by 10.7% for the entire year.

“Lack of hatchery facilities and overfishing remain a problem for our fisheries sector,” he said. — K.A.T.Atienza

Philippines’ IT-BPM sector to cross $40B in revenues this year

INDUSTRY.GOV.PH

By Justine Irish D. Tabile, Reporter

THE Philippine information technology and business process management (IT-BPM) sector is projected to generate over $40 billion in revenues this year amid sustained global demand, according to an industry group.

“We should cross $40 billion by the end of the year,” Information Technology and Business Process Association of the Philippines (IBPAP) President and Chief Executive Officer Jonathan R. Madrid told reporters on Monday.

Growth will be driven by global demand, especially for banking, financial, and healthcare services, he said.

Mr. Madrid said demand is still mostly from North America.

“[What] we should be scared about is not being skilled enough. That’s the only thing I am concerned about. Because the demand is there, we have the brand. The Philippines is very strong; we are a world leader,” he said.

He said that the Philippines should ensure that its graduates will have the relevant skills for new work types.

“[This is] not just because of artificial intelligence. The nature of work always changes, and so we must adapt and make sure that we give our students and seekers a chance to continue to compete,” he said.

Mr. Madrid said the industry is hoping to employ around two million in the next two years.

“We’re already at 1.82 million digital workers. We want to cross two million soon… If your question is when we will cross two million, I would say in the next 12 to 18 months,” he added.

Mr. Madrid said that the industry is set to exceed its baseline targets under the Philippine IT-BPM Industry Roadmap 2028.

“We have different targets. We have an aggressive target, and we have a baseline target. We will exceed our baseline [targets]. But I’m not satisfied with that,” he said.

“I want us as a country to hit our aggressive target. It’s part of our commitment to performance excellence, going for aggressive targets,” he added.

Under the roadmap, the IT-BPM industry is projected to reach 2.5 million in employee count and generate $59 billion in annual revenues by 2028.

Meanwhile, Mr. Madrid is still optimistic about industry growth despite US President Donald J. Trump’s protectionist policies.

“The problem now is the uncertainty of it all… But I remain optimistic about the growth prospects of the industry. Because every week, my team and I talk to investors who want to increase their operations or establish new operations in the Philippines,” he said.

“We need to focus only on one thing, and that is to upskill, reskill, and cross-skill our talent. We have the demographics. We have 700,000 university graduates a year. We need them to be employable.”

Most IBPAP members are already investing in the upskilling of the existing workforce, he said.

Mr. Madrid recalled that the IT-BPM sector took a hit during Mr. Trump’s first term as the US President adopted an “America First” policy. He said this affected the industry growth in 2017 and 2018.

“But we live in a different world now. Technology has changed everything. Who is going to do this work? I do not think we can find Americans to do some of the work that we do,” he said.

“So, I remain optimistic about the growth of the industry… We are recalibrating and reviewing our projections on the roadmap. Our roadmap is a six-year roadmap, so at the midpoint, which is later this year, we will do a midterm review,” he added.

Navigating a real estate market ripe with opportunities

Freepik

By Bjorn Biel M. Beltran, Special Features and Content Assistant Editor

Real estate in the Philippines, even as it experiences short-term and medium-term challenges, is still expected to grow alongside continued economic expansion.

Global real estate firm Cushman & Wakefield (CWK), in their first market briefing for 2025, said that the country is currently experiencing unique challenges, unlike any previous cycles in that the current environment “is shaped by unprecedented factors such as the global pandemic, geopolitical tensions and rapid technological advancements.”

“Established CBDs (central business districts) remain resilient, and the diversification into multiple sub-markets offers new opportunities. Looking ahead, nouveau sectors such as technology, health care and logistics are expected to drive demand, supporting a gradual market recovery,” CWK said.

Multinational professional services firm Colliers Philippines supported this view, saying that property market is ripe with opportunities and will enjoy “stellar growth” in 2025, especially in the retail, residential, and industrial segments.

“In our view, these are the property sub-segments likely to benefit from interest rate cuts recently implemented by the central bank. The Philippines’ young and skilled workforce with constantly rising disposable incomes also support these sub-segments’ growth beyond 2025,” Joey Roi Bondoc, director at Colliers Philippines, wrote for BusinessWorld in a column.

It is clear, then, that the Philippine real estate can be a prudent investment in an environment of uncertainty and volatility, particularly as the sector pivots towards resilience and sustainability.

The future of property management

Property management has traditionally centered on the basic responsibilities that come with owning real estate as an investment, such as rent collection, occupancy monitoring, and maintenance coordination. It is part-and-parcel with real estate as an industry.

Yet, as real estate itself continues to change, so too must investors adapt and evolve. Today, digital transformation, environmental sustainability, and rising tenant expectations are reshaping the property landscape.

For instance, tenants have become much more discerning in what kind of residential properties they invest in. In Metro Manila, Colliers said the sizeable number of unsold pre-selling and completed or ready-for-occupancy (RFO) units right now “could take more than five years to absorb given the current take-up rates.”

The substantial number of unsold RFO units is constricting developers to launch new condominium projects in the capital region. As of the third quarter (Q3) of 2024, Colliers data showed that unsold inventory in Metro Manila (covering pre-selling and RFO) reached 75,300 units.

“It will take about 5.8 years to fully sell out all these unsold condominium units, about five times longer compared to the pre-pandemic period (2017 to 2019) where remaining inventory life (RIL) ranged between 0.9 and 1.1 years. Of the 75,300 remaining inventory, 27,200 are RFO valued at P154.4 billion ($2.8 billion). This is a sizable amount yet to be taken up,” Mr. Bondoc wrote.

“The lower to upper mid-income segments (P3.6 million to P12 million) accounted for 57% of remaining RFO inventory in Metro Manila as of Q3 2024. Meanwhile, among the submarkets with high level of unsold RFO units include Pasig City, Quezon City-South, Parañaque, Manila North, Makati Fringe, and Quezon City-North.”

Mr. Bondoc added that tenants are leaning towards leisure developments with more holistic, and master-planned with various land uses. He noted some of these leisure-oriented projects are dispersed across Batangas, Cavite and Cebu. Other locations likely to attract similar investments include Palawan, Boracay, Bohol, and Davao.

“The demand for these projects should also get a boost from the recovery of the country’s travel and tourism sector. Colliers also sees the revival of demand for golf communities within and outside Metro Manila,” he said.

Hence, property management for such tenants is no longer just about maintaining buildings; it is about enhancing the value of their assets, delivering more experiences aligned with their preferences, and feeding into broader sustainability goals for the industry.

Redefining resilience

Perhaps the most impactful of changing tenant values is the increased demand for environmental sustainability. For many industries, sustainability is no longer optional, but a competitive necessity as ESG (environmental, social, governance) standards continue to influence investment decisions all over the globe.

In the context of the Philippines, rising energy costs and increasing awareness of climate resilience are driving property owners and managers to rethink their strategies.

Energy-efficient retrofits, green building certifications (such as Leadership in Energy and Environmental Design or LEED and EDGE), and sustainable community initiatives like waste reduction programs are becoming selling points for tenants and investors alike. Developers who invest in sustainability now can future-proof their properties, differentiate themselves in a crowded market, and align with emerging government incentives for energy-efficient developments.

Areas like Bonifacio Global City (BGC) and Clark Global City illustrate how Philippine property markets are diversifying. Growth is also expanding beyond Metro Manila, with vibrant property markets emerging in Iloilo, Davao, and Pampanga. This creates opportunities for both large developers and small property management firms ready to adopt global best practices.

NEO, the owner, developer, and manager of the Philippines’ top certified green buildings in BGC, is one example of a developer leading this shift. Beyond focusing on sustainable construction, NEO emphasizes the long-term management of buildings as dynamic, people-centered ecosystems.

“For developers and managers like us, recognizing this human layer is critical,” Gie Garcia, co-managing director and chief sustainability officer of NEO, said. “Building a resilient, sustainable, and innovative development does not end at construction. It extends to nurturing the community that operates it, investing in their training, empowering their leadership, and embedding a shared sense of purpose in every part of the building’s daily life.”

The future of property management in the Philippines is a future of reinvention. As real estate continues to change, transformed by innovation and reshaped by shifting demands by both tenants and investors, property managers also must outgrow their previous roles of operational caretakers and evolve into more strategic enablers.

Those who invest in innovation, embrace sustainability, and adapt to changing market demands will be best positioned to thrive in a competitive and future-ready real estate landscape.

Trends and innovations shaping property management

creativeart | Freepik

Property management is an emerging industry set to make its mark on countries with a rapidly growing population, a robust economy, and a growing demand for housing and commercial spaces.

Consultancy firm Mordor Intelligence estimates the property management market size in the United States (US) to be $84.73 billion in 2025, and is expected to reach $102.79 billion by 2030, at a compound annual growth rate (CAGR) of 3.94% during the forecast period. In the same way, the number of property managers has been increasing yearly. In 2023, the US alone hosted 296,477 property management firms, marking a 2.1% rise compared to 2022.

With a booming real estate sector and an oversupply in some segments in the Philippines, the stage is perfectly set for property management companies in the country to join the trends and innovations that are transforming the industry today.

Technology is always a factor to consider when speaking about trends. The advent of artificial intelligence and blockchain technology has unlocked new possibilities for automating tasks, securing transactions, and delivering personalized services in the property management industry.

Artificial intelligence (AI) has transformed many industries and has the potential to advance the budding sector through its ability to exploit predictive analytics, anticipate property needs, and optimize the performance of an investment property. Service requests or, worse, emergency repair calls, are also made easier by using AI property management tools, as the technology can anticipate these expenses and forecast the most cost-effective way to handle them.

Meanwhile, blockchain technology has been utilized digitally as a means to make administrative processes more convenient. With digital finance solutions already speeding up rent collections and streamlining record-keeping, blockchain in property management can provide tenants with alternative payment methods, and use smart contracts to create secure, transparent lease agreements. Additionally, it can help reduce scams both for tenants and managers, as the technology makes identity verification and even background checks a whole lot easier.

Another trend that has affected property management is the rise of remote work and virtual assistants in the country. A PricewaterhouseCoopers (PwC) survey in 2024 indicates that 27% of Filipino workers do full-time remote work having no in-person contact at all with colleagues, teammates, managers, suppliers or customers, while more than half of all Filipino workers said that they are currently doing hybrid work or have a mix of in-person and remote working.

This wave of remote and hybrid work can change the way the property management industry operates, as companies may employ the use of remote teams and assistants to manage rental properties. Tasks that used to require a property manager to be present may now be accomplished from a distance, and virtual assistants can reply promptly to tenant inquiries and requests, making things easier for all parties involved.

Building on these technological advances, property managers are also reimagining how spaces are showcased to prospective tenants. Virtual tours are becoming more and more common in property marketing, but the next evolution lies in augmented reality (AR), which transforms flat walkthroughs into fully interactive 3D experiences.

While AR-capable platforms already exist, their adoption in property management remains limited. Despite this, renter demographics are shifting toward younger, more tech‑savvy audiences, which leaves the entire leasing journey poised to move online. Eventually, the first search to the final lease agreement can potentially be a fully virtual process in the near future. This allows prospective tenants to place virtual furniture in empty spaces, tour properties at their leisure, and adjust finishes on the spot in real time.

Beyond technological changes and immersive viewing experiences, another key trend in property management responds directly to today’s economic pressures and evolving lifestyles. Co-living spaces and flexible leasing make the most sense for Filipinos looking to survive the aftermath of high inflation in 2022 and 2023, which has led to ballooned rental rates.

In many areas, rental prices have risen faster than what most people can afford, and changing lifestyles among renters are creating a growing need for more flexible living options and shared spaces. Property managers can capitalize on this movement by introducing flexible leasing options and collaborating with owners to retrofit existing properties to suit the needs of digital nomads, remote workers, and those seeking community‑oriented living.

Like in any other industry, sustainability is becoming a demand in property management with tenants and regulatory bodies pushing for greener living spaces. Certifications like LEED (Leadership in Energy and Environmental Design) are gaining importance, showcasing a commitment to sustainability and drawing in eco‑minded tenants.

Additionally, water and energy conservation are also taking center stage. Energy monitoring systems and water-efficient fixtures help track and optimize usage, leading to cost savings on top of environmental benefits. Properties that meet these regulatory requirements and tenant expectations are positioning themselves for long‑term value creation in an increasingly eco‑conscious market.

As the industry forges ahead, property managers in the Philippines who weave together cutting‑edge technology, adaptable leasing options, and eco‑friendly practices can make challenges into opportunities. In doing so, forward‑looking firms will not only satisfy current market demands but also build resilient, future‑proof portfolios that allow them to take the mantle as industry leaders in the emerging real estate segment. — Jomarc Angelo M. Corpuz

Choosing the right property manager

pressfoto | Freepik

More Filipinos are investing in real estate either as a place to live in or to rent their properties for long-term gains. The Philippines Statistics Authority reports that approved investments in real estate activities reached P137.89 billion in 2024. This indicates a growing need for reliable property management services to help them maximize returns, ensure smooth operations, and maintain the long-term value of their real estate assets. 

However, knowing what property management firms do in detail is needed before hiring their services. These companies provide basic upkeep, such as managing day-to-day operations like tenant communications, rent collection and maintenance coordination, and other administrative tasks, including financial reporting, legal compliance, and more. 

For investors or Filipinos looking to rake in passive income from their properties, this means having a dedicated professional or team handle the complexities of property ownership, allowing them to focus on growth instead of administrative burdens. This is why choosing the right property managers is almost as important as buying the right property: because they can make or break the success of investments. 

There are many factors to consider when searching for a competent property manager. One of the most important is availability. Since emergencies and client concerns aren’t restricted to operating hours, choosing a property management company that offers support and responsive communication at any time of day can help ensure that residents are satisfied and that their needs are met. 

Another factor to consider is the company’s reputation. Handing over control of an investment worth years of hard work can be difficult to do, especially if there is a potential that it does not pay off. Making sure that the property management firm hired has a proven track record of success, positive client testimonials, and a portfolio of well-maintained properties can ease concerns and build confidence in their capabilities. 

It’s also important to verify their licenses and certifications, as these credentials indicate professionalism, compliance with industry regulations, and a commitment to best practices. In the Philippines, reputable property managers should be licensed real estate service professionals under the Professional Regulation Commission (PRC). Some notable certifications for individuals in the Philippines include the Certified Apartment Manager (CAM), Master Property Manager (MPM), and Real Property Administrator (RPA). 

Considering the value that a firm brings to the table can also be important in choosing the right company for your properties. While many are tempted to go for the lowest-cost provider, it is wise to evaluate the total value of services offered. Some property management firms, while a little more expensive, can help reduce risks, save on operational costs through vendor relationships, and improve efficiency across maintenance, insurance, and financial planning on one’s property due to their expertise. 

Finally, property owners should consider how well a property management company understands the specific needs of their community or investment. A one-size-fits-all approach rarely works in real estate management, as a property in Makati has different needs compared to one in Quezon City. The same is true for the difference between apartments and condominiums. The right property manager should be able to tailor their services based on property type and help get their clients more from their investments.

With the right property management partner, investors in the Philippines can enjoy peace of mind, knowing their assets are in good hands. In a real estate market that has been growing despite oversupply in certain segments, understanding what to look for — and whom to trust — can make all the difference. — Jomarc Angelo M. Corpuz

SM Prime Q1 profit climbs to P11.7B, fueled by malls and residences

PHILSTAR FILE PHOTO

SY-LED property developer SM Prime Holdings, Inc. posted an 11% growth in its attributable net income to P11.7 billion for the first quarter, compared to P10.5 billion a year ago, driven by its malls and residential segments.

Consolidated net income grew by 11% to P11.9 billion from P10.7 billion last year, SM Prime said in a statement on Tuesday.

Total revenue increased by 7% to P32.8 billion from P30.7 billion on higher rental income, revenue recognition of real estate sales, and other revenue.

Earnings before interest, taxes, depreciation, and amortization rose by 12% to P20.2 billion, while operating income went up by 13% to P16.7 billion.

“Our portfolio is off to a strong and promising start this year. Malls, offices, hotels and convention venues, and even residences, posted gains in the first quarter. This speaks to both the resilience of domestic demand and the strength of our integrated development strategy,” SM Prime President Jeffrey C. Lim said.

The malls business was the largest profit contributor, accounting for 69% of total earnings. It posted a 13% income growth to P8.1 billion on increased foot traffic, high occupancy, and growing interest in experiential offerings.

Residential earnings went up by 4% to P2.1 billion, equivalent to 18% of net income, led by higher revenue recognition from completed projects and prior-year sales.

Earnings of the office and warehouse segment rose by 15% to P1.2 billion, accounting for 10% of total net income, driven by improved occupancy and prudent cost management.

The hotels and convention centers business saw a 17% profit growth to P362 million on higher room bookings and a robust calendar of meetings, incentives, conferences, and exhibitions.

“While external uncertainties persist, our focus remains on disciplined execution and staying the course,” Mr. Lim said.

“We have a solid foundation, and we are confident in our capacity to generate long-term, sustainable value for our shareholders,” he added.

As of March, SM Prime’s total assets rose annually to P1.05 trillion. Capital expenditure reached P19.3 billion, with the majority allocated to development.

“We do not give full-year guidance but, if you look at the first-quarter results, we are confident and optimistic that we can sustain this, given the developments that we are planning in the next nine months,” Mr. Lim said during a separate briefing in Pasay City.

SM Prime shares fell by 1.29% or 30 centavos to P22.90 apiece on Tuesday. — Revin Mikhael D. Ochave

AIC expects up to 25 new locators for LIMA Estate in Batangas

ABOITIZECONOMICESTATES.COM

By Beatriz Marie D. Cruz, Reporter

ABOITIZ INFRACAPITAL, Inc. (AIC), the infrastructure subsidiary of the Aboitiz group, said it expects up to 25 new locators in its LIMA Estate in Batangas, from sectors such as electronics, automotive, and consumer goods manufacturing.

“Right now, we have about 120 operating locators, and about 20 to 25 more in different stages of construction,” Monica L. Trajano, vice-president for Business Development of Economic Estates, told BusinessWorld on the sidelines of the Aboitiz InfraCapital Economic Estates Industrial Summit 2025, a forum held last week.

“There are still over a hundred hectares in various stages of development, with locators coming in to construct and build.”

LIMA Estate is an 1,000-hectare (ha) mixed-use development owned by the Aboitiz group. It hosts about 4,000 households and is registered under the Philippine Economic Zone Authority.

Last year, AIC began its 40-ha expansion of LIMA Estate’s business hub, which will include commercial, retail, residential, and mixed-use spaces. It is slated for completion by 2027.

“In LIMA, because we’ve been consolidating land over the last 10 years, generally, we [bring to the] market between 50 to 100 hectares of industrial land per year,” Rafael Fernandez de Mesa, chief executive officer at Aboitiz Land, Inc., told reporters on the sidelines of the event.

“So, we anticipate that to continue for the next ten years.”

For its West Cebu Estate, the company has about 20 ha left in its 40-ha expansion plans, Mr. De Mesa said.

The 540-ha West Cebu Estate is dubbed the shipbuilding capital of the Philippines, AIC said. As of December last year, the estate hosts 17 locator companies from medium to heavy industries, generating over 14,908 jobs.

Mr. De Mesa also said a major food company is looking to set up in TARI Estate, AIC’s economic estate in Tarlac. The firm will take up 40 ha and plans to start construction this year.

Across its economic estates, about 70% of its locators are exporters, and 30% are domestic firms. By nationality, 60% are foreign, with Japan remaining the top investor.

“You also have local companies that have found a way to form part of the supply chain of these foreign exporters. So, they’re producing components that are utilized in the end products of these exporters,” Mr. De Mesa noted.

The Philippines remains a potential investment destination due to its strategic location and highly skilled workforce, he also said.

The company is also eyeing pharmaceutical locators and data centers in its economic zones, Mr. De Mesa said.

“We continue to look for opportunities, not just to expand those (economic estates), but to expand to new footprints. Our focus today is primarily on Luzon, but we’re also quite interested in the Visayas as well.”

Despite recent geopolitical uncertainties, including the US’ new tariff policy, it is “business as usual” for AIC, according to Ms. Trajano.

“I think what we’re seeing for us is still heightened interest, which is business as usual for us,” she said. “While it’s increased the calls and inquiries that are coming in, I think it’s status quo for us.”

To entice more investors into its economic estates, Ms. Trajano cited the need to focus on improving the ease of doing business, infrastructure readiness, transparency, sustainability, and workforce solutions.

“Our bigger purpose when we develop these estates is to really send a message out to global investors that the Philippines is a reliable and conducive hub for investment,” she said at the forum.

A key step toward sustainability is adopting green building standards. However, many companies are still hesitant to adopt green building standards due to the impression that they are expensive, said Christopher C. De La Cruz, chief executive officer at the Green Building Council.

“A shift of mindset from seeing green buildings as a cost to seeing them as an investment is critical,” he told the panel.

A legacy of peace through orchestral music

THE Manila Symphony Orchestra at their home rehearsal space in Circuit, Makati.

Manila Symphony Orchestra unveils concert lineup

AS A prelude to its centennial year, the 99-year-old Manila Symphony Orchestra (MSO) has prepared a slate of concerts that includes a repeat of one of its most famous performances.

Founded in 1926, the MSO is one of Asia’s oldest orchestras. Through the years it has remained steadfast in its goals, holding accessible concert tours for the people across the country and also supporting the education of young music scholars, said its artistic director, Jeffrey Solares.

“This institution has weathered wars and economic recessions, and it will be celebrating its 100th year come July 2026,” he said at a press conference on April 23 in Circuit, Makati. “If you visit the archives and look at the MSO’s old programs, you can still get surprised and get goosebumps to see what this orchestra went through.”

MUSIC TO MARK WAR’S END
Kicking off the 99th season concert series — titled In Pursuit of Excellence — is a concert commemorating one of the shining moments in the MSO’s history.

Between 1945 and 1946, in the aftermath of the Battle of Manila which devastated the city, the orchestra held several post-liberation concerts marking the end of World War II. For the 80th anniversary of these concerts, the orchestra will take on the music it performed in that period, in the aptly titled Music for Peace concert on May 24.

At the press conference, they gave a preview of the repertoire for the concert, which includes Dvořák’s Symphony No. 9 “From The New World.” They played the second movement of the soothing yet melancholy piece, but it was enough to ease any remaining discomfort from the summer heat.

“It was part of MSO’s first postwar concert on May 9, 1945,” explained Mr. Solares of the piece. That performance was held at the roofless Sta. Cruz Church in Binondo amid a crowd of survivors. “It served as a tribute to the soldiers who helped liberate the country from the Japanese occupation.”

The concert’s repertoire will also include Beethoven’s Violin Concerto in D, Op. 61, which will feature Berlin-based violin soloist Emanuel John Villarin, under the baton of MSO musical director and conductor Marlon Chen.

“We are calling it Music for Peace because, after 80 years, it seems peace is still a very relevant goal for humanity. We can still find so many places where that elusive peace is not yet present,” Mr. Solares added.

The orchestra then flexed their versatility for the rest of the afternoon’s press conference: Ennio Morricone’s beautiful film score for Cinema Paradiso, with Sara Maria Gonzales as violin soloist, Filipino composer Conrado del Rosario’s dynamic “Meditation for Orchestra,” a first for the MSO, and Pyotr Ilyich Tchaikovsky’s iconic “Waltz” from Sleeping Beauty.

They closed with a John Williams medley, playing the themes from Star Wars, Jaws, Superman, Indiana Jones, and E.T., to the joy of many guests in attendance.

Mr. Solares said that playing both traditional and more accessible kinds of music is the way to go when it comes to bringing the orchestra closer to the people. For him, there is no need to “look down on the audience.”

“We mix it up. People will want to hear pop music and movie themes, but they are also ready to listen to a movement of a symphony. We want to show people that we can do both,” he said.

CONCERT LINEUP
The 99th season’s kickoff concert Music for Peace will be held on May 24 at the Aliw Theater at the CCP Complex, Pasay City, which is where the majority of the season’s concerts will take place.

It will be followed by A Night in Hollywood on June 28. Conducting fellows from the Los Angeles Film Composers Intensive, American guest conductor Angel Velez and Hungarian cellist Zoltan Onczay, will join the MSO for the concert.

The next concert, Brazilian Guitar and Cello, will be held on Aug. 9. It will feature music by legendary Brazilian guitarist and cellist Heitor Villa-Lobos and Filipino composer Jeffrey Ching, and will showcase Brazilian soloists Fabio Presgrave on cello and Fabio Zanon on guitar, as well as Filipino soprano Stefanie Quintin-Avila.

Another milestone concert will be Butterfly Lovers Violin Concerto on Sept. 7, which will have violinist Monica Bacus and a Filipino children’s choir performing with the MSO. On Sept. 27, Dancing with Tchaikovsky will welcome cellist Damodar Das Castillo and guest conductor Alexander Vikulov to the concert, to bring to life Tchaikovsky’s Rococo Variations and the suite from the Sleeping Beauty ballet.

Closing the year will be The MSO 100th Anniversary Concert, to be held on Jan. 22, 2026. It is the only one with a different venue from the rest, as it will be held at the Samsung Performing Arts Theater in Circuit, Makati. The guests are pianist Muyu Liu and conductor Darrell Ang.

Through these concerts, the MSO hopes to raise funds for its attached organizations — the MSO Foundation, the MSO Music Academy, and the Manila Symphony Junior Orchestra.

The MSO will launch a commemorative book in 2026 chronicling the orchestra’s journey over 100 years. It will include contributions from its musicians and guest conductors.

Tickets for the upcoming concerts are available via TicketWorld. For more information, visit their social media pages. — Brontë H. Lacsamana

Meralco targets 2.1-GW supply contracts via CSP this year

PHILSTAR FILE PHOTO

MANILA Electric Co. (Meralco) will launch a series of competitive selection processes (CSPs) this year to secure over 2,100 megawatts (MW), or 2.1 gigawatts (GW), of capacity under its long-term supply procurement plan covering 2026 to 2046.

In a media briefing on Monday, Meralco Senior Vice-President and Head of Regulatory Management Jose Ronald V. Valles said the Department of Energy had approved the company’s 2025 power supply procurement plan (PSPP) in a letter dated April 11.

Following the approval, Meralco is set to initiate multiple CSPs beginning this month, in accordance with government policy requiring distribution utilities to procure power through transparent and least-cost mechanisms.

“We have an upcoming CSP for RE (renewable energy) baseload in April 2025 [for] 200 MW, and then we also have the 600 MW baseload for CSP scheduled in May 2025,” Mr. Valles said.

Under the 2025 PSPP, Meralco also intends to procure power supply with a capacity of 1.426-MW RE baseload in April, 450-MW mid-merit in May, and 900-MW baseload in September.

Baseload power plants are those facilities that can generate consistent electricity to meet daily demand, while mid-merit plants are those designed to operate during periods of intermediate power demand.

The PSPP was approved on the same day President Ferdinand R. Marcos, Jr. signed into law the franchise extension of Meralco, granting the utility 25 additional years of distribution authority.

The extended franchise allows Meralco to operate in Metro Manila, Bulacan, Cavite, Rizal, and select areas of Batangas, Laguna, Quezon, and Pampanga through 2053.

“The fresh franchise enables us to implement long-term energy infrastructure projects that will further improve the delivery of electricity to homes, businesses, and industries that fuel the country’s development,” said Meralco Chairman and Chief Executive Officer Manuel V. Pangilinan.

“It also allows us to continue investing in the modernization and expansion of our distribution network — making it more resilient to climate-related disruptions — while introducing innovations that enhance efficiency and raise customer experience,” he added.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.

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

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