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PHL on track to become upper middle-income country by 2026

Mallgoers browse through an assortment of lucky bracelets and other charms inside a mall in Masinag, Antipolo. — PHILIPPINE STAR/MIGUEL DE GUZMAN

THE World Bank expects the Philippines to become an upper middle-income country (UMIC) by 2026 even as growth fell below 6% last year.

“Under our current baseline growth assumptions, average growth of 6% from 2025 to 2026, the Philippines is likely to reach upper middle-income status by 2026,” World Bank Country Director for the Philippines, Malaysia, and Brunei Zafer Mustafaoğlu told BusinessWorld in an e-mailed reply to questions.

The World Bank expects the country to grow by 6.1% in 2025 and 6% in 2026.

The Philippines grew by a weaker-than-expected 5.6% in 2024, slightly faster than 5.5% in 2023.

The Marcos administration expects the Philippines to reach UMIC status over the next two years (2025-2026).

The World Bank updates country classifications by income level on July 1 every year, based on the gross national income (GNI) per capita of the previous calendar year.

The World Bank computes a country’s GNI through the Atlas method, which serves as the basis of its income classifications — low, lower-middle, upper-middle and high. GNI refers to the total amount of money earned by its residents both within and outside its borders.

The Philippines remained a lower middle-income country even as GNI per capita rose to $4,230 in 2023 from $3,950 in 2022.

Under the World Bank’s classification, the threshold for a lower middle-income country stood at $1,146-$4,515 GNI per capita in 2023, while the threshold for an upper middle-income country stood at $4,516-$14,005.

Once the Philippines reaches upper middle-income status, the country will lose access to official development assistance loans that are typically long term and have low interest rates.

“As the Philippines transitions to upper middle-income status, sustaining growth and achieving its 2040 vision of consolidating a middle-class society and eliminating poverty requires a shift from investment-led to productivity-driven growth,” Mr. Mustafaoğlu said.

Mr. Mustafaoğlu identified four strategic actions that the Philippines can take once it achieves UMIC status.

“The country’s next strategic moves should focus on boosting productivity and innovation by enhancing competition, lowering business costs and accelerating digital and artificial intelligence adoption to drive high-value job creation,” he said.

Mr. Mustafaoğlu said the Philippines should also deepen regional integration.

“This entails reducing trade barriers, improving logistics and strengthening foreign direct investments spillovers to stimulate the tradeable sector,” he said.

Mr. Mustafaoğlu said the Philippines should invest in human capital by “reducing stunting and improving the quality of early education, as well as supporting the reskilling and upskilling of existing workers to help them adapt to technological disruptions.”

The Philippines should also strengthen climate and economic resilience, he added.

The country needs to invest in climate adaptation, green energy and infrastructure to mitigate any disruptions from adverse climate events, he said.

“It is crucial to undertake these actions while maintaining macroeconomic stability, which is a pillar for development,” Mr. Mustafaoğlu said. — Aubrey Rose A. Inosante

March airfares may go up following fuel surcharge hike

PHILSTAR FILE PHOTO

By Ashley Erika O. Jose, Reporter

AIRFARES are likely to increase after the Civil Aeronautics Board (CAB) raised the passenger fuel surcharge level for March.

In an advisory on Tuesday, CAB elevated the passenger fuel surcharge to Level 5 for March from Level 4 in February.

This is the first time CAB has increased the passenger fuel surcharge in the last five months, as the surcharge had remained at Level 4 since October of last year.

At Level 5, the fuel surcharge for domestic flights ranges from P151 to P542. For international flights, the surcharge is P498.03 to P3,703.11.

For airlines collecting the fuel surcharge in foreign currency, the applicable rate for the period is P58.46 to a dollar, CAB said.

Currently, at Level 4, the passenger fuel surcharge is between P117 and P342 for domestic flights and between P385.70 and P2,867.82 for international flights originating from the Philippines.

Cebu Pacific said that despite the increase in fuel surcharges for March, it will continue to offer the best-value fares for its passengers.

“With summer travel approaching, we encourage our passengers to book early and take advantage of our lowest fares,” Cebu Pacific President and Chief Commercial Officer Alexander G. Lao said in a statement.

Steve F. Dailisan, head of communications and public affairs at AirAsia Philippines, said that the higher fuel surcharge would have a minimal impact on travel costs for its passengers.

“Despite the adjustments, AirAsia remains fully committed to fulfilling our brand promise of making air travel safe, accessible, and hassle-free,” Mr. Dailisan said.

A fuel surcharge may be collected by airlines based on the movement of jet fuel prices, using a benchmark known as MOPS (Mean of Platts Singapore).

The global average jet fuel price rose by 0.5% week-on-week as of February 14, to $93.11 per barrel.

Year-on-year, the global average jet fuel price dropped by 3%, according to fuel price monitoring reports by the International Air Transport Association.

Meanwhile, air passenger volume ballooned to 59.91 million in 2024, nearing its pre-pandemic peak due to booming domestic travel, according to CAB.

Domestic passenger volume in 2024 grew to 32.13 million, marking an increase of 10.9% from the previous year, while international passenger volume rose by 12% to 27.78 million, CAB Executive Director Carmelo L. Arcilla said in an e-mail to BusinessWorld.

Data from CAB’s website showed that in 2023, domestic passenger volume stood at 28.97 million, while international passenger volume was recorded at 24.81 million. In 2019, CAB logged a peak of 60.07 million total passenger traffic, mainly driven by international passenger traffic.

Tonik targets Filipinos with no bank accounts

GREG KRASNOV — TONIKBANK.COM

By Beatriz Marie D. Cruz, Reporter

TONIK Digital Bank, Inc., the Philippines’ first licensed digital-only bank, seeks to broaden its presence in the country by targeting the unbanked population through strategic branding, according to its chief executive officer (CEO).

“I think branding is a very important issue that is being ignored by both the traditional banks and actually by most of our competitors in digital banking,” Greg Krasnov, founder and CEO of Tonik Bank, said in an interview with BusinessWorld.

Bank branding in the Philippines is “typically intimidating,” he noted.

“Our research shows that the Filipino mass market thinks banks are by the rich and for the rich,” he added, noting that this remains a significant barrier to building trust in banks and encouraging consumers to use their services.

About 76% of Filipinos remain unbanked and underserved — the highest percentage among five Southeast Asian countries. Indonesia followed at 67%, Vietnam at 47%, Malaysia at 40%, and Thailand at 25%, according to a 2024 report by Euromonitor International.

Latest data from the Bangko Sentral ng Pilipinas (BSP) showed that in 2022, the share of Filipinos with bank accounts reached 65% of the adult population.

To make digital banking more accessible to Filipinos aged 25 to 30, Tonik has positioned its brand as “approachable.”

“When we were creating Tonik’s branding, we were consciously trying to counteract that,” Mr. Krasnov said.

“Our brand is funny and approachable. We’re on a first-name basis with our customers. We want them to fall in love with us, so we are your financial girlfriend or boyfriend.”

For instance, Tonik’s “Luv Stash” allows users to invite their partners, friends, or family members to contribute to a shared savings “pocket” without opening a joint bank account. In celebration of Valentine’s Day, users who create a Luv Stash by the end of February can earn 5% interest per annum.

Around 57% of Filipino consumers said they would likely spend more on brands that provide personalized experiences, according to customer engagement platform Twilio.

To further enhance user personalization, Tonik also leverages alternative data to analyze consumer behavior and tailor its product offerings.

Tonik has onboarded more than two million users since its launch in 2021.

Customers can open a savings account, deposit funds, manage payments, and own a virtual debit card through the digital banking platform. Its key loan products include the credit builder loan and the shop installment loan.

Under its Tendo brand, Tonik also partners with employers to offer employee benefits such as life and health insurance, savings and cash loans, and employee rewards.

For 2025, Tonik is targeting more than 150% annual growth in its lending portfolio. Last year, its loan portfolio expanded by 110% year on year, driven by a rise in employer and retail partnerships offering its loan products, Mr. Krasnov said.

“We spent three years focusing on achieving unit profitability, and we’re now profitably lending to these unbanked and uncredited consumers.”

However, Mr. Krasnov acknowledged challenges in the widespread adoption of Tonik’s payroll lending product, which has only covered 10% of the market.

“This is a relatively new solution for employers in the Philippines,” he said. “The challenge is convincing large employers to partner with us because this is a very cost-efficient way to provide credit access to their employees.”

The Philippines also continues to lag behind its Southeast Asian peers in consumer lending penetration, Mr. Krasnov noted.

“We think the Philippines needs to grow consumer lending fourfold to catch up with the Southeast Asian average.”

Mr. Krasnov cited inflationary shocks as a potential risk to lending growth.

“We hope that this year won’t have as many inflationary shocks that impact consumer purchasing power,” he said. “When customers feel financial stress, it becomes more difficult for us to make decisions.”

The BSP expects inflation to average 3.3% in 2025, remaining within its 2-4% target range for the year.

Mr. Krasnov also emphasized the need for the mass deployment of the Philippine Identification System (PhilSys) card, or national ID, to help onboard more users and reduce lending fraud.

To expand consumer lending, Tonik plans to partner with more employers and retailers to increase accessibility to its loan products.

The digital bank is also set to accelerate the rollout of its credit builder loan, which encourages users to take a small cash loan to establish a credit history and eventually increase their credit limits.

“The concept of the credit builder is that users proactively build their credit history through our product.”

Tonik is also exploring expansion into car and mortgage loans.

“Over time, we will continue rolling out more products that fit into the customer’s lifestyle as they continue to upgrade their life,” Mr. Krasnov said.

The Philippine economy in 2025: Taking advantage of international economic chaos

FREEPIK

(Part 2)

As discussed in the first part of this series of articles, fortune is smiling on the Philippines in this Year of the Wood Snake. Because of a boom in consumer spending (partly stimulated by the coming May elections), very low rate of unemployment; muted inflation below 3%, lower rates of interest and a depreciating peso, Philippine GDP can expand at 6.5% to 7%. The Philippines will be largely exempt from the harmful effects of the protectionist policies of the Trump Administration because of our rather low export-to-GDP ratio; our being considered a close US ally by two of the most influential economic advisers of US President Donald Trump, i.e., Secretary of State Marco Rubio and billionaire Elon Musk; and a very timely campaign of the private business sector to promote enterprise-based upskilling, reskilling, and retooling of workers which can lead to even a lower unemployment rate. With all these favorable factors, we can retain our reputation as among the three fastest growing economies in the Indo-Pacific region, together with India and Vietnam.

As I have often reiterated, however, a growth rate of 6-7% is not sufficient for us to bring our poverty incidence down to a single-digit level from its high of 16% today. We have to grow at the upper limit of the Government’s target of 6-8%. Only growth of 8% or higher will give us the resources to combat mass poverty by spending more on rural and agricultural development, urban infrastructure, and public education (at least 6% of GDP). This present Government has only three years left to build the foundations for accelerating growth towards 8% or higher.

Thus 2025 is a critical year, halfway in the Marcos Jr. Administration. It is also a year when we can convert some global threats posed by the MAGA-inspired policies of the Trump Administration into opportunities to grow our manufacturing sector and our exports. The pity is we already could be growing at close to 8% if we had been able to prevent the massive corruption going on at both the national and especially the local government level (where most of the bribes and rigged public work contracts occur).

That is why we must significantly increase our rate of investment, especially Foreign Direct Investments, if we are to attain GDP growth of 8% or more. As mentioned in the first article of this series, Japan and the US have expressed their interest in helping to develop the Luzon Economic Corridor (extending from Batangas to Manila to Clark and Subic) as an alternative site for the numerous high-value semi-conductor devices and electronic components factories that their companies have built in China. Now that President Trump has intensified the US-China trade war, this plan could be accelerated, making possible massive investments in infrastructure like railways, toll roads, power plants, and water facilities that could make the Philippines sufficiently competitive with Vietnam which has practically monopolized these relocation moves in the past.

Indeed, as reported in this paper by Justine Tabile and Aubrey Inosante, there are very concrete recommendations from leading Filipino economists to present the Philippines as an alternative destination for export-oriented firms (especially high-value chips) amid the ongoing trade war between the US and China. A 10% tariff has already been imposed by the US on imports from China. Expect other countries with considerable exports to the US like Singapore, South Korea, Thailand, and Malaysia to also suffer from tariff imposition from the Trump Administration. There will be pressure for some of their exporting firms to relocate their operations to the Philippines because there is very little probability that President Trump will include the Philippines in his protectionist policies since we have very minimal exports to the US and, as mentioned above, we are considered a very strategic partner of the US in the Asia-Pacific region.

This year, 2025, could be an important watershed in our efforts to dramatically increase the inflow of Foreign Direct Investments (FDIs). As I have mentioned many times, we should target anywhere from $15-20 billion dollars in FDIs for the rest of the Marcos Jr. Administration. This figure is what Vietnam, the most comparable ASEAN economy to the Philippines, has been able to generate in the last 10 to 15 years.

In fact, in 2024, Vietnam attracted close to $30 billion in FDIs. It is not unrealistic for the Philippines to target half of that amount if we are able to put our act together. Indonesia’s FDIs are even more impressive at $50 billion last year. Unfortunately, in 2024 our FDIs, as reported by the Bangko Sentral ng Pilipinas, totaled only $9 billion, a very disappointing performance.

Now that the global economy is undergoing another major discontinuity as a result of the MAGA policies of President Trump, with a subsequent shaking up of the world economy that favors the Philippines in a major way, we should be confident that our FDIs can experience a very dramatic jump as the major investing countries all over the world look at the Philippines as an exceptionally attractive country because of our being largely exempt from the tariff war, our young and growing population, our rich mineral resources which are indispensable to the so-called Industrial Revolution 4.0 happening in all the First World economies.

(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

Filinvest Land gets SEC nod for P12-B bond issuance

FILINVESTLAND.COM

GOTIANUN-LED property developer Filinvest Land, Inc. (FLI) has secured the offer permit for its planned bond issuance worth P12 billion as part of the company’s fundraising plans.

The company received the permit from the Securities and Exchange Commission (SEC) on Tuesday, FLI said in a regulatory filing.

FLI’s planned issuance has a base offer of P9 billion and an oversubscription option of up to P3 billion worth of peso-denominated, fixed-rate bonds.

The offer comprises five-year bonds due in 2030 with an interest rate of 6.2916%, seven-year bonds due in 2032 with an interest rate of 6.6550%, and ten-year bonds due in 2035 with an interest rate of 6.8312% per annum.

The planned issuance will be the second tranche of FLI’s P35-billion shelf-registered bond program, which was registered with the SEC in 2023.

The first tranche was issued in December 2023, consisting of P11.4 billion worth of 3.5-year retail bonds with an interest rate of 6.983% per year.

The proceeds from the issuance will be earmarked for the property company’s capital expenditure program, as well as to repay existing debts.

FLI tapped BDO Capital and Investment Corp., BPI Capital Corp., China Bank Capital Corp., East West Banking Corp., First Metro Investment Corp., Land Bank of the Philippines, RCBC Capital Corp., and SB Capital Investment Corp. as joint lead underwriters and bookrunners for the issuance.

Metropolitan Bank & Trust Co. – Trust Banking Group was named trustee.

On Tuesday, FLI shares rose by 2.86%, or two centavos, to 72 centavos per share. — Revin Mikhael D. Ochave

Gov’t fully awards 10-year bonds at lower rates

BW FILE PHOTO

THE GOVERNMENT made a full award of the reissued 10-year Treasury bonds (T-bonds) it offered on Tuesday at a lower average rate amid good demand for higher-yielding longer tenors, with the Bangko Sentral ng Pilipinas (BSP) still expected to continue its easing cycle despite last week’s surprise pause.

The Bureau of the Treasury (BTr) raised P30 billion as planned via the reissued bonds it auctioned off on Tuesday as total bids reached P60.212 billion or more than twice the amount on offer.

This brought the total outstanding volume for the bond series to P336.9 billion, the Treasury said in a statement.

The reissued 10-year bonds, which have a remaining life of eight years and 11 months, were awarded at an average rate of 6.118%. Accepted bid yields ranged from 6.05% to 6.145%.

The average rate of the reissued papers declined by 13.3 basis points (bps) from the 6.251% fetched for the series’ last award on Jan. 21 and was 13.2 bps lower than the 6.25% coupon for the issue.

This was likewise 0.9 bp below the 6.127% quoted for the 10-year bond but 2.8 bps above the 6.09% seen for the same bond series at the secondary market before Tuesday’s auction, based on PHP Bloomberg Valuation Service Reference Rates data provided by the BTr.

The government fully awarded its bond offer as the average rate was lower than the yield fetched at the previous reissuance, the BTr said.

The BTr’s full award came as the offering fetched “decent” demand, which led to the bonds being awarded at yields close to last dealt levels, a trader said in a text message.

“Yields were within expected levels. Looks like there is still appetite for duration despite the BSP pause,” the trader added.

The reissued bonds fetched lower yields as the market continues to view the BSP’s monetary policy stance as dovish even as it opted to hold benchmark borrowing costs steady at its first meeting for the year, Rizal Commercial Banking Corp. Michael L. Ricafort said in a Viber message.

The Monetary Board last week unexpectedly held its key interest rates steady in a “prudent” move as global uncertainties cloud the outlook for growth and inflation.

At its first meeting for 2025, the BSP’s policy-setting body left the target reverse repurchase rate unchanged at 5.75%. Rates on the overnight deposit and lending facilities were also kept at 5.25% and 6.25%, respectively.

This was the central bank’s first pause following three consecutive 25-bp cuts since it began its easing cycle in August 2024.

The decision took the market by surprise as 19 out of 20 analysts polled by BusinessWorld had anticipated a fourth straight 25-bp cut at the meeting, while one analyst expected the BSP to keep rates steady.

BSP Governor Eli M. Remolona, Jr. said uncertainty over the trade policy of US President Donald J. Trump and its potential impact on the Philippines led to the decision to keep rates unchanged for now.

Mr. Trump’s plan to impose reciprocal tariffs on every country that charges duties on US imports has raised fears of a wider global trade war.

Since taking office in January, Mr. Trump has slapped tariffs on Chinese imports and a 25% tariff on steel and aluminum imports, while putting on hold duties on imports from Mexico and Canada.

Still, Mr. Remolona said the BSP continues to be in an easing cycle, with the pause letting the central bank hedge itself against the risk of policy reversal.

He added that the central bank will likely continue reducing interest rates by 25 bps at a time, with 50 bps in cut for this year still likely.

The Monetary Board’s next policy meeting is on April 3.

Analysts likewise expect the BSP to stay in monetary easing mode as weak economic growth, manageable inflation, and likely limited impact from Mr. Trump’s tariff policies giving the central bank ample space to cut rates further.

Mr. Ricafort added the 10-year bond fetched lower rates amid the recent decline in comparable US yields.

On Tuesday, Treasuries rallied on the soft sales numbers as markets swung back toward pricing in two Federal Reserve rate cuts this year rather than just one, Reuters reported.

Yields on 10-year Treasuries were holding at 4.478%, well off a top of 4.660% hit in the middle of last week.

The BTr is looking to raise P203 billion from the domestic market this month, or P88 billion from Treasury bills and P115 billion from T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at P1.54 trillion or 5.3% of gross domestic product this year. — A.M.C. Sy with Reuters

Kissflow helps companies digitalize without code

RADOWAN NAKIF REHAN-UNSPLASH

PHILIPPINE businesses should adopt low-code or no-code platforms to quickly develop apps as they digitize their systems, according to software-as-a-service Indian company Kissflow.

“The bigger challenge is that every business needs to digitize fast because you never have the luxury of decades to build the systems,” Dinesh Varadharajan, chief product officer at Kissflow, Inc., said in a video interview on Feb. 10.

“There is a need to build these systems very quickly with a limited skill set that is available in the market,” he added.

Using a no-code platform, users can customize apps without coding knowledge, while a low-code platform would need a bit of coding skills to create apps.

When using a no-code platform, tech professionals can just “drag-and-drop” to build their app, without writing code.

Kissflow specializes both in low-code and no-code platforms, using artificial intelligence (AI)-suggested fields based on the user’s ideal workflow.

It serves more than 50 companies in the Philippines and 362 globally from the banking, technology and insurance sectors.

“Traditionally, we look at building an application using a coding paradigm, and it takes six months,” Mr. Varadharajan said. “If you use Kissflow, you’ll be able to do it in matter of days or weeks.”

Despite this, low-code and no-code platforms still need human insight to ensure the accuracy and security of its apps, he added.

The Philippines’ rapid digital transformation makes it a key market for Kissflow, according to Mr. Varadharajan.

He noted that Western economies find it difficult to use extremely modern technology because they have invested a lot of money in legacy systems.

“But if you look at the Philippines, they don’t have to go through the same journey,” he said. “They can directly come to an extremely modern digital environment because they don’t have legacy systems.”

The Philippine digital economy’s potential and the push for increased internet penetration bodes well for Kissflow’s market expansion, Mr. Varadharajan said.

The country’s digital economy is expected to grow to as much as $150 billion in gross merchandise value by 2030 from $31 billion in 2024, according to a 2024 report by Google, Temasek Holdings and Bain & Co. — Beatriz Marie D. Cruz

From point A to point B: The DoTr is in capable hands

PHILIPPINE STAR/MIGUEL DE GUZMAN

Two days from today, former Bases Conversion and Development Authority President and Chief Executive Officer and former Presidential Adviser for Flagship Programs and Projects Vince Dizon will be at the helm of the Department of Transportation (DoTr).

This piece of news brings great confidence and optimism to us at the Stratbase Group. Mr. Dizon was with us when we founded our organization more than 20 years ago. Then as now, he was a strong advocate of infrastructure development, with a bias for efficient project execution and strategic public-private partnerships (PPP).

In the subsequent phases of his career, Mr. Dizon has demonstrated his deep and nuanced understanding of infrastructure policy. I have no doubt that he will drive transformative transportation initiatives that would enhance connectivity and consequently stimulate economic growth.

It’s not just us at Stratbase who are saying this. No less that Senator Grace Poe has been quoted as saying that she believes Mr. Dizon would fast-track reforms and projects that are urgently needed at the DoTr. His performance in his previous assignments has been stellar.

I wish Vince the best of luck in this new challenge.

THE ROLE OF PPP
Transportation has been a sore point in the Philippines’ growth story. Much has been said about the economic potential as well as the quality of life being compromised because of transportation woes. Here in Metro Manila, for instance, we are acutely aware of the debilitating effects of heavy traffic and the state of the public transportation system. Elsewhere in the archipelago, the movement of goods and people has been hampered by inadequate transport infrastructure.

This is not to say that these difficulties are being neglected. In response, the government has allocated P1.507 trillion for infrastructure projects this year, equivalent to 5.2% of our Gross Domestic Product. The amount is just slightly lower than the P1.51 trillion last year.

To close the gap, the government has been increasingly relying on PPP ventures.

In fact, over the past few years, our national leaders have been trying to realize the immense potential that investments and partnership brought by the private sector could contribute in this aspect. They have been taking concrete steps to bring this closer to reality.

Over the years, the private sector has been a steady and reliable partner as the country inches toward its objectives of driving the economy through building better, and more. As of this month, the PPP project pipeline has expanded to 176 projects worth P2.47 trillion.

These projects in the pipeline span several key sectors — transport, housing, water supply, and digital infrastructure.

Among these, however, transport projects hold a special significance.

The administration has signed contracts for five major transport initiatives. These include the concession agreement for the Bohol-Panglao International Airport with Aboitiz InfraCapital, Inc., which involves airport upgrades, expansion, and operations for 30 years; Transaction Advisory Services Agreements between the DoTr and the International Finance Corp. for the New Dumaguete and Siargao Airports, and the New Cebu International Container Port; and the Cebu Bus Rapid Transit project.

Additionally, the Civil Works Contract Package for the New Cebu International Container Port has been awarded to HJ Shipbuilding and Construction Co., Ltd.

Finance Secretary Ralph Recto described these projects as a “monumental gift” to Filipinos. The projects will no doubt increase the mobility of both people and goods, reduce travel time, and support economic activities within and across the regions.

INTERNATIONAL ASSISTANCE
On top of all these, the Asian Development Bank (ADB) is supporting the Philippines in bolstering its PPP capacity.

The ADB recently approved a $30-million loan that will replenish the Project Development and Monitoring Facility, enabling the government’s PPP Center to support up to 35 national and local projects from 2025 to 2029. These projects will focus on transport infrastructure, including railways and road networks, while ensuring climate resilience.

ADB is also funding capacity-building initiatives for implementing agencies and local government units, alongside the development of evaluation frameworks to enhance fiscal sustainability and project execution.

ADB Country Director for the Philippines, Pavit Ramachandran, also reaffirmed ADB’s commitment to supporting the country’s transportation infrastructure, emphasizing its role in the Build Better More agenda.

He highlighted the North-South Commuter Railway as a key priority, with ADB approving an additional tranche of funding exceeding $1 billion for the Malolos-Clark segment. He also noted that ADB is finalizing further transport-related loans for 2025, ensuring the completion of ongoing projects and the acceleration of infrastructure initiatives.

These new developments spell promising times for the Philippine transport sector. From a new secretary who champions PPP and who comes with a solid experience in infrastructure development and management, to a pipeline of PPPs in the administration’s agenda, to support from a multilateral institution that believes in the Philippine potential, we do not doubt that the Philippines will be able to move forward from where we currently are to where we intend to be.

 

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

Ayala Land says Santa Rosa Civic Complex to rise on Nuvali Estate

REAL ESTATE DEVELOPER Ayala Land, Inc. (ALI) has partnered with the city government of Santa Rosa in Laguna province for the establishment of a two-hectare complex in the Nuvali Estate.

The planned Santa Rosa Civic Complex within Nuvali will feature a convention center, a city one-stop shop, sports facilities, and a command center, ALI said in an e-mail statement on Tuesday.

“The presence of the Santa Rosa Civic Complex within Nuvali enhances access to government services while aligning with our vision of creating a world-class, future-proof development,” said Christopher B. Maglanoc, group head of ALI subsidiary Ayala Land Estates Inc.

ALI and the Santa Rosa City government signed a memorandum of understanding for the planned civic complex.

“This initiative not only enhances governance but also strengthens Santa Rosa’s position as a progressive city, ensuring a seamless and efficient experience for our constituents, promoting public-private partnership,” said Santa Rosa City Mayor Arlene B. Arcillas.

Nuvali is a 2,400-hectare estate covering the cities of Santa Rosa, Cabuyao, and Calamba in Laguna. It is home to residential developments, commercial hubs, educational institutions, and nature-centric recreational spaces.

“This partnership reinforces Nuvali’s position as the regional central business district of Calabarzon, further driving economic growth in the South,” ALI said.

“The addition of the Santa Rosa Civic Complex strengthens its position as a complete and future-ready economic hub — bringing governance, business, and lifestyle together in one dynamic location,” it added.

On Tuesday, ALI shares rose by 5.13%, or P1.15, to P23.55 apiece. — Revin Mikhael D. Ochave

Anscor’s Eduardo J. Soriano dies at 69

EDUARDO J. SORIANO — PSE.COM.PH

LISTED holding company A. Soriano Corp. (Anscor) announced on Tuesday the passing of its vice-chairman, Eduardo J. Soriano, at the age of 69.

“It is with deep sadness that we announce the passing of Mr. Eduardo J. Soriano, our vice-chairman and director, today, Feb. 17, 2025,” Anscor said in a regulatory filing on Tuesday.

“Our chairman, Mr. Andres Soriano III, the board of directors, and the entire Anscor group of companies extend our deepest condolences to the family and loved ones of Mr. Eduardo J. Soriano. We are profoundly grateful for his invaluable contributions and service to Anscor,” it added.

Mr. Soriano was Anscor’s director since 1980 and became vice-chairman in 1990. He was Anscor’s treasurer prior to his retirement in 2018.

He was also the president of the Andres Soriano Foundation, Inc. and a director of Phelps Dodge International Philippines, Inc.

Mr. Soriano held a bachelor’s degree in economics, majoring in history, from the University of Pennsylvania.

Anscor has business interests in various industries, including air transport, asset management, business process outsourcing, real estate, resort operations, and wire manufacturing.

Among its major investments are in Phelps Dodge Philippines Energy Products Corp., which produces building wires, power cables, and autowires, as well as Seven Seas Resorts and Leisure, Inc., which owns the Amanpulo Resort in Palawan. — Revin Mikhael D. Ochave

Enstack offers buy now, pay later option

ENSTACK, a business management app, now allows small and medium business users to offer buy now, pay later solutions to their customers through lending platforms GGives and BillEase.

Under the feature, micro, small and medium enterprises (MSMEs) using the Enstack app can offer installment plans starting at P1,000 that can be paid over 24 months through GCash’s GGives and BillEase.

This is expected to provide smaller firms with more flexible and secure payment options, while improving buyers’ access to credit, it said in a statement.

“Giving merchants access to installment payments is a game changer for their business,” said Macy Castillo, co-founder and chief executive officer at Enstack.

“By enabling merchants to offer trusted pay later solutions, we’re helping them expand their customer base, including those who may not have the cash up front but are willing to pay in installments.”

Ms. Castillo said smaller firms have been unable to offer installment plans due to the lack of credit infrastructure, complex approval processes and additional fees.

On the other hand, large retailers can offer installment plans given their partnerships with banks and finance providers.

“This puts small and medium businesses at a disadvantage, as customers seeking installment plans often turn to bigger players with more accessible financing options.”

Through the buy now, pay later option, merchants can increase their average order value, attract budget-conscious buyers, and build stronger customer relationships,” Ms. Castillo said.

“With this partnership, Enstack is democratizing access to buy now, pay later for Filipino sellers, allowing even the smallest online shops to compete with major e-commerce players,” the company said.

Both GGives and BillEase are exclusively available to qualified Enstack merchants, unlike in other e-commerce platforms.

“At Enstack, we make it easier for merchants to grow by offering seamless, AI (artificial intelligence)-powered business solutions,” Ms. Castillo added.

Since its launch in February last year, Enstack has onboarded more than 200,000 entrepreneurs and has as many as 40 partners.

There are about 1.24 million MSMEs in the Philippines, according to the Department of Trade and Industry. — Beatriz Marie D. Cruz

Viber plans to launch digital payment service in the Philippines next quarter

MESSAGING PLATFORM Rakuten Viber plans to launch its digital wallet and payments feature Viber Pay in the Philippines by next quarter.

“We already have a long list of over a million users in the Philippines that have enlisted for the wallet,” Rakuten Viber Chief Executive Officer Ofir Eyal said at a briefing on Tuesday.

The feature will allow users to transfer money within the messaging app, Mr. Eyal said. Initial services include peer-to-peer fund transfers, including user-to-user and user-to-business transactions. It will also allow transfers from banks and electronic wallets like GCash and Maya via InstaPay.

Viber Pay will eventually be expanded to include transactions via debit and credit cards, as well as QR codes, he said.

Rakuten Viber is also planning to launch a group payment feature, Mr. Eyal said, adding it is also open to expanding Viber Pay to include loan products and remittance services.

Viber Pay targets mainly micro, small, and medium enterprises that use the messaging platform to communicate with their customers, the official said.

“Our first aim is to allow the small businesses to start accepting payments in Viber because they’re already talking to their customers on Viber and then completing the purchase somewhere outside,” Ritesh Shah, general manager for FinTech and vice-president for Business Solutions at Rakuten Viber, told reporters at the same briefing. 

Viber saw a 194% increase in business accounts opened by small businesses in the Philippines in 2024, the company said.

The Philippines is one of Viber’s leading growth markets, with the platform’s user base in the country growing by about 20% annually, Mr. Eyal added.

For this year, the company plans to expand the messaging app’s advertising features to accommodate full screen ads, video ads, and generative response ads.

For business messaging, Rakuten Viber is set to launch list messages where firms can collect feedback or send delivery details, as well as create a mini catalog through carousel messages.

“All [of our] solutions serve the business in getting the exposure and awareness of new clients, to maintain their relationship with customers, and to boost their sales,” Noa Bar Shay, senior director, sales & partnerships at Rakuten Viber, said.

The platform also recently launched the Viber Dating feature. To provide users a secure experience, only verified Viber users with registered mobile numbers can create a dating profile. — Beatriz Marie D. Cruz

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