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Meralco 2025 energy sales decline by 0.65%

PHILIPPINE STAR/ MICHAEL VARCAS

MANILA ELECTRIC CO.’s (Meralco) energy sales volume declined last year due to soft demand in residential and commercial segments, a company executive said.

Indicative figures showed energy sales within Meralco’s franchise area fell 0.65% to 53,257 gigawatt-hours (GWh) in 2025 from 53,606 GWh in 2024, Meralco Senior Vice-President and Chief Revenue Officer Ferdinand O. Geluz said in a Viber message.

Residential and commercial sales dropped 2% and 0.5%, respectively, while the industrial segment grew by 1%.

Meralco has yet to consolidate figures from Clark Electric Distribution Corp. and other distribution utilities. Clark Electric, 65% owned by Meralco, serves the Clark Special Economic Zone.

This year, the power distributor is targeting 3% growth in energy sales, supported by higher customer connections and normalizing temperatures.

The distribution business contributed 55% of Meralco’s consolidated net income in the first nine months of 2025, which rose 14% to P40 billion. The company remains confident of meeting its full-year core profit guidance of P50 billion.

“Based on the growth of our power generation and steady performance of our core distribution in the past nine months, we stay positive we will achieve our full-year core profit guidance of P50 billion,” Meralco Chairman Manuel V. Pangilinan told a briefing in October.

Shares of Meralco gained 1.37% to close at P593 each on the local bourse on Tuesday.

Beacon Electric Asset Holdings, Inc., Meralco’s controlling stakeholder, is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of the PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group. — S.J. Talavera

ACEN powers Schneider Cavite plants with RE

ACENRENEWABLES.COM

AMERICAN POWER CONVERSION CORP. (APC), a flagship brand of French company Schneider Electric SE, has tapped the retail electricity supply unit of Ayala-led ACEN Corp. to power its manufacturing facilities in Cavite using renewable energy (RE).

In a statement on Tuesday, ACEN said APC and Schneider Electric entered into an RE supply agreement with ACEN RES under the government’s Green Energy Option Program, which allows electricity end-users with an average monthly demand of at least 100 kilowatts to choose renewable energy as their power source.

The agreement covers five facilities in Cavite, which are mainly engaged in semiconductor manufacturing. These sites began operating on renewable energy in December and include both office and production locations.

“This collaboration sets in motion our transition to 100% renewable energy at the Cavite Smart Factory — a bold stride in our journey toward net zero,” Antonio Cheng, Jr., plant director for the Cavite Cluster at Schneider Electric Philippines, Inc., said in the statement.

He added that the Cavite facility is set to become the first plant inside a government economic zone in Luzon, and the first Schneider Electric factory in East Asia, to run entirely on renewable energy.

ACEN President and Chief Executive Officer Eric T. Francia said the partnership shows how big industrial players could advance the country’s energy transition. ACEN RES accounts for 57% of the Green Energy Option Program market and obtains power from the company’s solar, wind and geothermal assets.

ACEN has about 7 gigawatts of attributable renewable energy capacity and has completed its shift away from conventional power generation.

The company earlier said it had transitioned its entire generation portfolio to renewable energy after divesting its conventional power assets. — Sheldeen Joy Talavera

RLX, SPX Philippines sign leasing deal

An interior shot of the Robinsons Logistix and Industrial Facilities’ warehouse. — COMPANY HANDOUT

ROBINSONS LOGISTIX & Industrials, Inc. (RLX) said it has signed its second warehouse leasing agreement with SPX Philippines, Inc., the logistics partner of e-commerce platform Shopee, Inc., as both companies seek to expand their distribution network across Luzon.

“RLX’s modern facilities in strategic locations like Calamba support our continued growth as we serve customers nationwide through our multi-partner logistics network,” SPX Philippines head Martin N. Yu said in a statement on Tuesday.

The deal expands the companies’ partnership, which began with the opening of SPX’s biggest sorting center within RLX’s property in Calamba, Laguna in 2024. The facility serves customers in the National Capital Region, South Luzon, the Visayas and Mindanao.

The renewed partnership aligns with both companies’ push to improve speed, efficiency and reliability in the domestic logistics sector.

“It also reinforces RLX’s position as a leading provider of future-ready, scalable logistics solutions built on innovation and operational excellence,” RLX said.

SPX offers services such as pick-up, drop-off, cash-on-delivery and register-as-a-service point, and operates across Southeast Asia, Taiwan and Brazil. SPX Express Philippines is a unit of Singapore-based Sea Group.

“Our collaboration with SPX Philippines highlights RLX’s commitment to delivering Grade A logistics facilities that help partners scale and grow,” RLX Senior Vice-President and Business Unit General Manager Cora Ang Ley said.

RLX, the industrial and logistics arm of Robinsons Land Corp. (RLC), operates 13 facilities across Calamba, Laguna; Sucat and Muntinlupa City; Pampanga; and Rizal. Its warehouses feature modern specifications and flexible layouts.

RLX posted a 2% increase in nine-month revenue to P661 million. Parent firm RLC reported a 19% rise in attributable net income to P3.3 billion for the period.

Shares of RLC rose 1.1% or 18 centavos to close at P16.58 on the Philippine Stock Exchange. — Beatriz Marie D. Cruz

Updates to REIT rules, rate cuts may attract listings, says ICCP

RICHMONDE Tower in Iloilo Business Park

THE Securities and Exchange Commission’s (SEC) proposed updates to real estate investment trust (REIT) rules, alongside possible interest rate cuts by the central bank, could encourage more REIT listings, the Investment & Capital Corporation of the Philippines (ICCP) said.

“If interest rates come down, that would be good for REITs because issuers would be more encouraged to come to market as they would not have to offer very high dividend yields,” ICCP President and Chief Operating Officer Jesus Mariano P. Ocampo said in a statement on Tuesday. “REITs are a dividend story at the end of the day.”

Under the updated REIT rules, the SEC has expanded the definition of income-generating assets to include sectors such as power, infrastructure and telecommunications.

The rules, which took effect this month, also extend sponsors’ reinvestment deadlines and strengthen disclosure and governance requirements.

Mr. Ocampo said the changes could attract billion-peso REIT offerings from tollway operators, water concessionaires, fiber optic network providers, cell tower operators and data-center developers.

He added that the timing of the regulatory changes aligns with a more accommodative monetary environment.

The Bangko Sentral ng Pilipinas (BSP) has cut interest rates by 200 basis points since August 2024.

BSP Governor Eli M. Remolona, Jr. has said another rate cut remains possible at the central bank’s February policy meeting, citing subdued inflation and weak economic growth last year.

The central bank ended 2025 with an additional 25-basis-point cut on Dec. 11, bringing the key policy rate to 4.5%, the lowest in more than three years.

Mr. Ocampo cited the surge in REIT activity from 2020 to 2021, noting that low interest rates during that period helped spur listings.

As rates decline, pressure on issuers to offer elevated dividend yields eases, making public listings a more viable and attractive capital-raising option, he said.

However, Mr. Ocampo said actual listings would still depend on issuer readiness, asset valuation and broader market conditions.

ICCP is a medium-sized group with businesses spanning investment banking, venture capital, industrial-estate development and township development.

The Philippines has eight listed REITs — AREIT, DDMP REIT, Inc., Filinvest REIT Corp., RL Commercial REIT, Inc., MREIT, Inc., VistaREIT, Inc., Citicore Energy REIT Corp. and Premier Island Power REIT Corp. — Beatriz Marie D. Cruz

Civic mindedness is a must to fight corruption

STOCK PHOTO | Image from Freepik

(Part 1)

Filipinos of all social levels are strongly demanding that corrupt officials from the Government — especially from the Senate, the House, the departments of Public Works and Highways (DPWH) and of Health (DoH), and the Bureau of Internal Revenue (BIR) — are actually sent to jail, together with private contractors and other business people involved in the flood control scandal that exploded before Christmas of 2025. They are disappointed that only “small fry” are actually being imprisoned.

Our efforts to minimize corruption in both the public and private sectors (after all, “it takes two to tango”) will not prosper unless we strengthen our weak institutions that directly address the problem of corruption. At this time, the highest priority should be assigned to the passage of four pending bills addressing the challenge of eliminating or at least reducing corruption. They are the Anti-Dynasty Bill, the Independent People’s Commission (IPC) Act, the Party-List System Reform Act, and the Citizens Access and Disclosure of Expenditures and National Accountability Act. President Ferdinand Marcos, Jr. has given his full support to the passage of these legislative measures.

The appropriate strong institutions are necessary for any socio-economic reform, as is very well documented with strong empirical evidence in the book Why Nations Fail by James Robinson and Daron Acemoglu, winners of the Nobel Prize in Economics. For example, the Philippine inflation rate is at a record low of below 3% today because of the expert management of the best Central Bank in the ASEAN. Institution building has also been evident in the former NEDA (the National Economic and Development Authority, now the Department of Planning, Economy, and Development), the departments of Trade and Industry, of Agriculture, Foresty and Fisheries, of Finance (with the exception of the still corrupt BIR), and the Department of Environment and Natural Resources. Much still has to be done to get rid of corruption and inefficiency in the DPWH, which is at the center of the ongoing corruption scandal, the Department of Education, and the DoH.

Strong institutions, however, can only do so much if they have no support from the majority of the population. Unfortunately, most Filipinos lack the virtue of civic mindedness, the concern for the common good of the entire society. The loyalty and the love for others stops with most of us at the level of the extended family system. We are still mostly a feudal society inherited from our pre-colonial era. Each of us still belongs to a “family dynasty” which is what the extended family system boils down to. It is telling that the ongoing attempts to pass a bill that will ban political dynasties are being stalled by the difficulty of determining the degree of consanguinity at which an individual should be banned from running for an elective position at the same time and same political constituency as a relative.

To understand better the type of concern for the common good or the love we call “patriotism,” let us review the classic definition of the different types of love (or seeking the good of another) as defined in the classic book of British writer C.S. Lewis entitled The Four Loves.

Borrowing from the Greek philosophers of ancient times, C.S. Lewis suggested that there are four loves: storge in Greek (affection in English); philia (friend); eros (romantic); and agape (charity or divine love).

The most common and natural form of love (which is always the attraction of the human will to an object perceived as good) is affection. It is the most natural and common love. There is no effort of the will involved here; it is instinctive, such as the love of parents for their children. It is warm, familiar, and humble. It often grows quietly from daily life and shared experiences. As a rule, Filipinos are known to be affectionate people even to strangers. That is why our call center agents in the BPO-IT industry are highly appreciated, because of the affectionate manner that they deal with their customers. The same can be said of Filipinos or Filipinas who work here or abroad in the hospitality industry or in the nursing and caregiving profession.

Then there is the love of friendship (philia in Greek or amistitia in Latin). This is the love that exists between two individuals, regardless of gender, who share common interests, values, or pursuits. It is based on mutual respect and companionship and is considered by C.S. Lewis as a most rewarding form of love.

Some of the most outstanding forms of friendship in the Philippines is the bond that ties individuals who shared the same educational experiences in grade school or high school and are in touch with one another for the rest of their lives — even if they reside in different countries. Especially among middle class women, it is common for them to celebrate the 50th anniversary of their graduation from high school or college.

Fortunately, this form of human is still deeply entrenched in Filipino society, in contrast with some other societies in the West where the bond of friendship among individuals has weakened to the extent that, especially among the youth, lonesomeness or loneliness has become a sort of a social disease. This trend has been abetted by the advent of Artificial Intelligence in which applications like ChatGPT have taken the place of real human friends. The breakdown of the family in some developed societies has also led to the declining role of friendship in human fulfillment since it is in the family that the bond of friendship is first developed.

As any human relationship, friendship has both its positive and negative features. Among the strengths of friendship are its being built on shared truth, values, and purpose. It is, in this most elementary form of human relations, where the individual is nurtured in virtue, honesty, and intellectual growth. Friendship is freely given, not compelled by nature. That is why, in some relationships, friends are treasured more than blood relatives.

There are, however, some perils in the love called friendship. It can become exclusivist or elitist, fostering group pride or moral blind spots. Friends in exclusive fraternities, especially among the economic elite, may foster group pride or moral blind spots. They may reinforce each other’s errors. There should be efforts to prevent bonds of friendship from being used for conspiratory loyalty, especially among soldiers.

C.S. Lewis notes that friendship groups can become dangerous when they see themselves as morally superior.

(To be continued.)

 

Bernardo M. Villegas has a Ph.D. in Economics from Harvard, is professor emeritus at the University of Asia and the Pacific, and a visiting professor at the IESE Business School in Barcelona, Spain. He was a member of the 1986 Constitutional Commission.

bernardo.villegas@uap.asia

Artistic experimentation focus of brand-new Rift Gallery

OPEN CITY banner by Carla Gamalinda — BRONTË H. LACSAMANA

A PATCHWORK banner representing generations of women, paintings that stitch together memory and trauma, and sculptures and video works depicting ecological crises are just some of the pieces on view at the newly opened Rift Gallery, located along EDSA.

Titled rift / making through the cracks, the gallery’s inaugural exhibit features works by Laura Abejo, Aiess Alonso, Nathalie Dagmang, Carla Gamalinda, Nicolei Buendia Gupit, Solana Lim Perez, and Kestrel Reyes.

They can be found on the second floor of the historic V.V. Soliven Building, one of the first structures built along EDSA, just a few steps away from the Santolan-Annapolis MRT station. Those who regularly traverse the capital’s expansive avenue may find it strange to finally enter an old building that they usually ignore, but the works of art that await in the quaint gallery space are worth it.

Carla Gamalinda’s banner Open City greets guests with a large sign made of stitched-together fabric of various colors. According to the artist, she put it together from pieces in her grandmother’s wardrobe, using her great-grandmother’s 1920s sewing machine left in their ancestral home.

Ms. Gamalinda explained that she had to “relearn how to use the old machine,” which required help from her mother. This means the work involves four generations of women, reflecting a politics of care.

“I cut up the fabric and stitched together a process of destruction and reconstruction,” she said in her artist’s statement. “When you study the stitches, you can see my learning curve: some of them are shabby while some show that I have gotten a grip on the machine already.”

The banner becoming the sort of centerpiece of Rift Gallery’s first show was very important, according to Carissa Pobre, one of the gallery’s owners and the curator of the exhibit.

“A few months ago, we put together a call for different artists who might want to join our inaugural exhibition, with a prompt centered on the concept of ‘a rift,’” she told BusinessWorld during a visit in December.

“I started to notice that it was women artists who were gravitating towards the concept, which was interesting. The show ended up showcasing seven women artists, and I felt the urgency of how each of them reflected back something in the political and ecological climate at the end of the year,” Ms. Pobre added.

Another approach to the concept is a documentation of personal feelings of crisis through mixed-media paintings. Laura Abejo’s Safety Breach, for example, involves threads sewn into the canvas, to separate different images of places and people.

Ms. Abejo said in her artist’s statement that the technique is “a metaphor for making amends even when there are things unheard and words unsaid.

“Despite the rift, we try to hold it all together and set boundaries,” she explained. “The rift can be felt in the patches cut out and mended from the canvas, as well as the patches that don’t fix anything. They just obscure the layer underneath. I wanted to emulate the feeling of uncertainty and tension we’re experiencing these days in light of recent events.”

A similar effect occurs in Solana Lim Perez’s smaller paintings, Awakenings and A Landscape of Tidings, which are collages of watercolor and pen and ink. For her, they are a record of “memory-hallucinations as paintings,” which became an anchor point for the artist’s personal shifts in identity at an uncertain time in her life.

ARTISTIC EXPLORATION
As the curator, Ms. Pobre told BusinessWorld that the gallery prioritizes younger artists and artists who might not be welcomed by a conservative art market.

“We’re hoping to build a culture that’s based on artistic exploration and cultural education,” she said. This will include events held at the space, such as film screenings, workshops, bazaars, book launches, and live music performances.

The exhibit’s launch on Dec. 14 saw people come together to watch Habitat, a short film by Aiess Alonso, which depicts the struggle of fishermen in the aftermath of Typhoon Yolanda. Her video work is also projected on the wall in a corner of the gallery.

“The issues of climate emergency and flooding … are still very relevant issues today, and [Alonso] had done [the film Habitat] in the wake of Yolanda,” said Ms. Pobre.

The other work being projected in the video installation corner is Nicolei Buendia Gupit’s video which contains voiceover anecdotes of people from a community concerned about water sanitation.

“I explore ecological and geographical rifts as sites of time-space rupture shaped by the intertwined forces of climate change and global capitalism. These ruptures create fault lines in histories and environments, disrupting the lives of coastal, migrant, and diasporic communities,” Ms. Gupit said in her statement.

In front of the wall where the videos are projected are sculptures of water jugs strewn across the floor. What makes them unique are how they are covered with news print that references climate issues.

“Recognizing climate change as the defining crisis of our era, I focus on recording narratives from the ground, stories from frontline communities whose knowledge and lived experiences challenge dominant understandings of our climate,” she added.

Nathalie Dagmang’s paper collages, inspired by her ethnographic research on soil in riverside farms, as well as Kestrel Reyes’ paintings, inspired by tectonic surfaces, atmospheric patterns, and cellular networks that she studies as a chemical engineer, also present unique approaches to the “rift” concept.

Ms. Pobre pointed out that the gallery, even in its construction, is meant to be a contrast to traditional art spaces. Instead of a white cube, it is a gray cube, harkening to a brutalist, industrial feel.

Even its location is meant to be “a fissure within the capital’s corridors of power: proximate to the EDSA Shrine, Camps Crame and Aguinaldo, and mall-ified mausoleums of surplus, all of which scaffold hegemonic lifeways in the mega-urban sprawl,” says the gallery’s manifesto which can be found on its walls.

It maintains that to rift is “to break away in perspective, discourse, movement, or form, so as to make space for experimentation,” and “to break free from the prestige-driven onus of the mainstream cultural establishment.”

“We thought about what kind of identity we wanted a new gallery in the city to be,” Ms. Pobre said. “We’re ending 2025 in a really strange time where the rift is literally what we’re in, and we don’t know how or we’re thinking of ways to create while we’re in this.”

The exhibit rift / making through the cracks is on view until Feb. 1 at the Rift Gallery, located at the second floor of 2112 V.V. Soliven Building, EDSA, San Juan City. — Brontë H. Lacsamana

Gov’t fully awards dual-tranche T-bond offering

BW FILE PHOTO

THE GOVERNMENT made a full award of the dual-tranche Treasury bonds (T-bonds) it offered on Tuesday at mixed rates as players moved to buy securities at the start of the year.

The Bureau of the Treasury (BTr) raised a combined P50 billion as planned via its dual-tenor T-bond sale as total bids reached P124.747 billion, or more than double the amount placed on the auction block.

Broken down, the Treasury borrowed P20 billion via the reissued seven-year bonds, with total bids reaching P52.082 billion or more than double the amount on offer.

This brought the total outstanding volume for the bond series to P295.6 billion, the BTr said in a statement.

The bonds, which have a remaining life of two years and seven months, were awarded at an average rate of 5.467%. Accepted yields ranged from 5.375% to 5.489%.

The average rate of the reissued papers fell by 31.2 basis points (bps) from the 5.779% fetched for the series’ last award on April 19, 2022, but was 171.7 bps above the 3.75% coupon for the issue.

This was 1.5 bps higher than the 5.452% fetched for the same bond series but 4.9 bps below than the 5.516% quoted for the three-year bond, the benchmark tenor closest to the remaining life of the papers on offer, at the secondary market before Tuesday’s auction, based on PHP Bloomberg Valuation Service (BVAL) Reference Rates data provided by the BTr.

Meanwhile, the government raised P30 billion from the reissued 10-year T-bonds, with total bids for the tenor reaching P72.665 billion or over twice the auction volume.

This brought the total outstanding volume for the bond series to P522.6 billion.

The reissued papers, which have a remaining life of nine years and three months, were awarded at an average rate of 5.985%, with tenders awarded carrying yields from 5.973% to 5.99%.

The 10-year bond’s average rate rose by 10.9 bps from the 5.876% fetched for the series’ last award on Dec. 2, but was 39 bps below the 6.375% coupon for the issue.

This was also 0.3 bp below the 5.988% seen for the same bond series and 7.3 bps lower than the 6.058% quoted for the 10-year debt at the secondary market before Tuesday’s auction, PHP BVAL Reference Rates data showed.

The government fully awarded its T-bond offer as it saw strong demand as players are loading up their portfolios, and with rates fetched near secondary market levels, a trader said in a phone interview.

The trader added that appetite for the bonds stayed strong even as December inflation came out higher than expected.

Philippine headline inflation picked up to 1.8% last month from 1.5% in November, but slowed from 2.9% in December 2024.

The December clip was within the Bangko Sentral ng Pilipinas’ (BSP) 1.2-2% forecast for the month, but was above the 1.4% median estimate in a BusinessWorld poll of 14 analysts.

For 2025, the consumer price index averaged 1.7%, the slowest in nine years or since the 1.3% recorded in 2016. This was slightly above the BSP’s 1.6% forecast for the year but below its 2%-4% target.

Meanwhile, T-bond yields ended mixed as the market remains hesitant about locking in their cash in longer tenors due to lingering risks here and abroad, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

He said the peso’s recent weakness against the dollar could stoke inflation anew, while uncertainty over the US Federal Reserve’s policy path is also driving up long-end yields globally.

On Tuesday, the peso slid by eight centavos to close at a fresh near one-month trough of P59.21 against the dollar, just a shade stronger than its record low of P59.22.

The dollar index, which measures the currency against a basket of those three rivals and three more major peers, edged down 0.2% to 98.238, Reuters reported. It had popped as high as 98.861 on Monday for the first time since Dec. 10.

The closely watched US monthly employment report, due on Friday, will be key in shaping expectations for the outlook for monetary policy.

Traders currently expect two Federal Reserve interest rate cuts this year, showed LSEG calculations based on futures.

The nomination of a new Federal Reserve chair in early January is also a key event. Incumbent Jerome H. Powell’s term expires in May.

US President Donald J. Trump has pressured the Fed to cut rates, bringing central bank independence into question.

The BTr is looking to raise P180 billion from the domestic market this month, or P110 billion via Treasury bills and P70 billion through T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at P1.647 trillion or 5.3% of gross domestic product this year. — Aaron Michael C. Sy with Reuters

Rockwell Land eyes P10B for expansion

E-ROCKWELL.COM

By Beatriz Marie D. Cruz, Reporter

ROCKWELL LAND CORP. plans to raise as much as P10 billion from a bond offer to help fund the expansion of its retail and residential portfolio.

The proposed issuance will have a base offer of P7 billion, with an oversubscription option of as much as P3 billion, the company said in a stock exchange filing on Tuesday. The bond sale represents the initial tranche of Rockwell Land’s P20-billion shelf registration program.

The Philippine Rating Services Corp. (PhilRatings) assigned the proposed bonds a PRS Aaa rating with a stable outlook, indicating the highest credit quality and minimal credit risk. A stable outlook signals that the rating is expected to be maintained over the next 12 months.

PhilRatings said the rating reflects Rockwell Land’s established brand, solid management team and support from its parent company, sustained growth, strong liquidity position and conservative capital structure.

“The bond issuance could anchor Rockwell’s expansion into the retail and hospitality sectors given that recent deals — especially the acquisition of Alabang Town Center (ATC) — require extensive cash [outlays],” Shawn Ray R. Atienza, an AP Securities, Inc. equity research analyst, said in a Viber message.

The bond offer is likely to attract strong investor interest, particularly after ATC in Muntinlupa City was added to the company’s asset portfolio, said Juan Paolo E. Colet, managing director at China Bank Capital Corp.

Rockwell Land recently acquired a 74.8% stake in Alabang Commercial Corp., which owns and operates ATC, for P21.6 billion.

ATC, a 17.5-hectare retail and office complex south of Metro Manila, is a prime asset with significant redevelopment potential, Mr. Colet said in a Viber message, adding that investors are likely to expect the mall to contribute to Rockwell Land’s financial performance over time.

Since December 2024, Rockwell Land has launched three premium residential projects in provincial locations, betting on demand for luxury developments outside Metro Manila.

Its expansion pipeline also includes a second Power Plant Mall in Angeles City, Pampanga; additional retail space within Rockwell at IPI Center in Cebu City; and Power Plant Mall Bacolod in Rockwell Center Bacolod.

PhilRatings said the company’s land bank of more than 500 hectares supports its growth outlook.

For the first nine months of 2025, Rockwell Land posted a 7% increase in consolidated revenues to P15 billion, driven by strong performance from its high-end residential projects.

Shares of Rockwell Land rose 1.62% or three centavos to close at P1.88 each, according to data from the Philippine Stock Exchange.

Corruption’s economic costs

STOCK PHOTO | Image from Freepik

The great takeaway for 2025 was that corruption is not only a moral and political issue, but an economic one. Filipinos are acknowledging the fact that governance problems such as the flood control scandal that exploded in the second half of the year have very real economic consequences.

First, people’s livelihoods are affected by unmitigated flooding. Floods destroy crops and compromise the mobility of people and goods. As a result, people experience real economic losses. They cannot go to work; small businesses are affected; their expected harvests do not materialize. Economic activity halts.

Second, the multiplier effects of sound infrastructure are not realized. When taxpayer funds intended for critical infrastructure are diverted into the pockets of a few, the resulting substandard projects fail to protect communities and deliver public value. The benefits that these projects are supposed to yield are not achieved.

Third, corruption dampens consumers’ confidence. The latest Consumer Expectations Survey of the Bangko Sentral ng Pilipinas (BSP) for the 4th quarter of 2025 shows that consumer sentiment has become more pessimistic. Survey respondents answered that their weaker confidence in spending is due to graft and corruption in the government, higher inflation, lower household income, and unfavorable weather conditions, and other natural calamities.

Consumers were also concerned about the effective delivery of government services amid public discontent over governance-related issues. Lower confidence among consumers carries significant economic implications: as a consumption-driven economy, the Philippines is highly exposed to declines in household spending, translating directly into slower growth and weaker economic momentum.

Finally, corruption spooks investors, especially those from abroad.

From an investment perspective, governance quality remains a key differentiator. Inclusive governance — ensuring that policies, resources, and opportunities benefit a broad spectrum of society — reinforces stability, builds public trust, and strengthens the overall investment climate. Clear policies and consistent regulations boost investor confidence and encourage investment. On the other hand, uncertainty, corruption, and weak enforcement discourage investment, as reflected in lower capital formation and reduced foreign inflows.

The latest survey numbers bear this out. Pulse Asia’s latest Ulat ng Bayan, conducted on Dec. 12-15, 2025, showed that economic issues remain to be Filipinos’ most urgent national concern.

Some 59% of Filipinos find that controlling inflation remains to be the topmost urgent national concern, followed by increasing the pay of workers (39%), reducing poverty (22%), and creating more jobs (19%).

It is important to note that 48% are also greatly concerned about fighting graft and corruption in the government.

These concerns are further reinforced by the latest Stratbase-commissioned survey conducted by Pulse Asia on Dec. 12-15, 2025. It shows that 38% of respondents identified making food prices more affordable as the most urgent action government leaders should take. This was followed by reducing or eliminating corruption to improve service delivery (31%) and creating more jobs and livelihood opportunities (21%).

Thus, strengthening transparency, accountability, and regulatory coherence is not only a governance imperative but an economic one — essential to sustaining growth, attracting long-term investment, and ensuring that economic gains are broadly felt across sectors in Philippine society.

The fundamentals of economics are no longer just confined to the usual indicators. To gauge where the economy is going, a vital clue is how the government is run by its stewards. If it is not being run well and transparently, if there are long festering issues that are not being addressed, and if leaders act like entitle masters rather than hardworking public servants, investors will find it difficult to put their trust in the system.

The consequences are immediate and measurable: reduced investment leads to fewer jobs, weaker household incomes, and rising pressure on the cost of living. With economic concerns remaining at the top of mind of the Filipino people, inclusive and accountable governance is not optional — it is central to sustaining growth, protecting livelihoods, and ensuring that economic gains benefit all sectors of society.

Now that a new year is beginning, our leaders must remind themselves why they are in office in the first place. Serving the nation means serving only the nation — not their own interests, not their allies’. Performing their duties with utmost transparency will benefit the country in numerous ways.

In the end, investors will flock to countries whose pronouncements are matched by actual circumstances on the ground. If we say, for instance, that we want to be a digitally empowered country, our actions must reflect this intention in terms of the priority we give to digital transformation. And if we say we are a nation that is bent on addressing the corruption problem, all its actions — by the national and local executives, by legislators, and by the judiciary — must show that everyone is on board.

Businesses thrive in an environment of transparency, consistency, and predictability. This year and onward, let us move toward this ideal, not only in select geographical areas or sectors, but across the entire Philippines.

 

Victor Andres “Dindo” C. Manhit is the president of the Stratbase ADR Institute.

PXP gets nod to continue Galoc field operations

PXPENERGY.COM.PH

PXP ENERGY CORP. and its partners have secured approval to continue production at the Galoc Oil Field off northwest Palawan after getting a fresh petroleum service contract from the Philippine government.

In a regulatory filing on Tuesday, the upstream oil and gas company said the field’s operator, NPG Pty. Ltd., has received a copy of petroleum service contract 88, which was executed on Dec. 18.

The contract replaces service contract 14C-1, which expired on Dec. 17 and covered the exploration, development and production of petroleum resources at the Galoc field.

PXP said the Galoc field has produced more than 25 million barrels of oil since operations began in October 2008 and remains commercially viable despite natural production decline, allowing operations to extend beyond the previous contract’s term.

To enable continued production, the Galoc consortium — composed of NPG, Philodrill Corp. and Forum Energy Philippines Corp. — filed an application last year for a development and production petroleum service contract.

PXP holds an indirect 3.21% interest in the Galoc field through its unit Forum Energy Philippines Corp.

While the company acknowledged that Galoc is a mature and depleting asset, it said the replacement contract “provides a framework to extend operations and maximize value from remaining resources, subject to technical and commercial considerations.”

Service contract 88 adds to PXP’s portfolio of recently awarded petroleum contracts.

Last year, the company and its joint venture partners secured service contracts for the Sulu Sea blocks service contracts 80 and 81, as well as service contract 86 covering the Octon Block in northwest Palawan.

PXP said these contracts strengthen its position in oil and gas exploration and support the Philippine government’s objective of increasing domestic energy production.

For the third quarter, PXP posted a wider attributable net loss of P15.17 million, compared with P7.54 million a year earlier, as operating revenues declined.

PXP shares rose 0.81% to close at P2.50 apiece on the Philippine Stock Exchange. — Sheldeen Joy Talavera

Paris’ Louvre museum opens but some parts stay closed as staff resume strike

FLICKR/DENNIS JARVIS

PARIS — The Louvre museum in Paris — hit by a jewel heist in October and by a workers’ dispute — opened on Monday after a three-hour delay but some parts remained closed due to the strike.

Staff had met earlier in the day to decide whether to resume a rolling strike, to protest against pay and working conditions. The strike started last month but was called off on Dec. 19 ahead of the Christmas holidays.

The Louvre is the world’s most visited museum but it has been left reeling by last October’s robbery, when four burglars made off with jewels worth $102 million. The jewels are still missing.

It has also been hit by recent infrastructure problems, including a water leak that damaged ancient books, which have highlighted the museum’s deteriorating state.

Unions have said that staff at the Louvre are overworked and mismanaged, and they are calling for more hiring, pay increases and better use of how the museum’s money is spent. — Reuters

PDIC studying return of P107-billion remittance after Supreme Court ruling

PHILSTAR FILE PHOTO

THE PHILIPPINE Deposit Insurance Corp.’s (PDIC) legal team is now reviewing whether it can get back the over P107 billion in funds it remitted to the government after the Supreme Court struck down the special provision under the 2024 budget that enabled the transfer.

“In light of the Supreme Court decision, the lawyers are going back and looking at these issues again and seeing whether the PDIC can get the money back. So, it’s under consideration,” Bangko Sentral ng Pilipinas (BSP) Governor and PDIC Chair Eli M. Remolona, Jr. said on Tuesday.

In January 2025, the PDIC remitted P107.23 billion to the Bureau of the Treasury as “unrestricted retained earnings” under a special provision of the 2024 General Appropriations Act (GAA) and a circular from the Department of Finance (DoF).

Under the special provision, government-owned or -controlled corporations were authorized to return their excess reserve funds to the Treasury to finance unprogrammed appropriations in the 2024 budget.

The Philippine Health Insurance Corp. (PhilHealth) also remitted P60 billion in excess funds under the same policy.

However, the Supreme Court last month ruled that the GAA provision and DoF circular were void as both were carried out “with grave abuse of discretion amounting to lack or excess of jurisdiction.” The decision was for petitions specifically on the PhilHealth transfer.

Mr. Remolona said the PDIC only remitted the funds to the government after its lawyers confirmed that the law allowed the transfer.

“And then there was an analysis of how — is the buffer sufficient to cover deposits that would be lost? And analysis suggested that yes, it was,” he added. “In fact, the remaining buffer was enough for the PDIC to raise the [deposit insurance] threshold to P1 million from P500,000.”

Groups have been calling for the return of PDIC’s remittance, saying these funds are needed to protect depositors’ savings and ensure the stability of the banking system. — Katherine K. Chan