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Trump policies may force central banks to keep rates elevated

FEDERALRESERVE.GOV

By Luisa Maria Jacinta C. Jocson, Reporter

INTEREST RATES may need to be kept higher for longer as US President-elect Donald J. Trump’s policies could delay the US Federal Reserve’s rate cuts and forcing other central banks to do the same, analysts said.

“The inflation problem in the US is likely to last a little longer and be persistent, therefore really the Fed cannot lower interest rates as quickly as Mr. Trump would like it to,” University of the Philippines (UP) School of Economics Professor Maria Socorro Gochoco-Bautista said at a forum on Monday.

“(This) means that all the rest of us also have to more or less toe the line and keep interest rates high,” she added.

Economies around the world are bracing for potential inflationary pressures arising from Mr. Trump’s proposals of import tariffs, tax cuts and tighter immigration measures. He is set to assume the presidency on Jan. 20.

“The dominance of the United States and the US dollar may be threatened by increased uncertainty, perceived erosion of the rule of law and credibility of institutions, an anticipated larger budget deficit and expected higher inflation that will necessitate higher interest rates,” Asian Financial Regulatory Committee Chair Martin Young said at the same event.

The US central bank began its rate-cutting cycle in September, slashing rates by a cumulative 100 basis points (bps) last year.

The Bangko Sentral ng Pilipinas (BSP), which cut ahead of the Fed in August, delivered a total of 75 bps worth of rate cuts last year.

The Monetary Board cut rates for three straight meetings, bringing the benchmark to 5.75%. BSP Governor Eli M. Remolona, Jr. has said the current policy rate is still in “restrictive territory.”

“As we can see, the dollar is appreciating. Studies have shown that whenever the US dollar appreciates, there are negative effects on the rest of the world,” Ms. Gochoco-Bautista said.

Ms. Gochoco-Bautista also noted the impact of currency depreciation on inflationary pressures and effects on output growth.

“The dollar isn’t just used as a means of transactions — it’s actually an asset, so in a world where there is so much uncertainty, there is already a natural tendency for countries to want to hold and acquire dollar assets,” she said.

“That also in and of itself, contributes to the strength of the US dollar independently of the fact that interest rates remain high in the US and somehow have to maintain the usual interest rate differential to prevent very large depreciations in our currency, which would compromise the inflation targets,” she added.

The peso closed at P58.70 per dollar on Monday, weakening by 34 centavos from its P58.36 finish on Friday.

This was its weakest finish in more than three weeks or since its P58.81-per-dollar close on Dec. 20.

“The market euphoria in the US following Trump’s election and persistent high inflation will likely keep interest rates high and the US dollar strong. As other currencies weaken, inflationary pressures will rise and hinder economic growth in those countries,” Mr. Young said.

Philippine headline inflation averaged 3.2% last year, settling within the 2-4% target band.

However, the central bank has warned that risks remain tilted to the upside for the inflation outlook from 2025 to 2026.

Meanwhile, Ms. Gochoco-Bautista said that Asian countries were individually affected by the first Trump administration.

“The welfare losses in terms of inflation, output growth, and tariff revenues, were negative in almost all Asian countries except Singapore,” she said.

Among Mr. Trump’s proposals are a 60% tariff on Chinese goods and a 10% universal tariff.

“Using blanket and higher tariffs to contain China could harm it but may not significantly benefit the US. It will also impact other countries, especially in Asia,” Mr. Young said.

He said the proposed tariff on Chinese imports “could disrupt global supply chains and increase US inflation.”

“These tariffs will affect other Asian nations directly and indirectly,” he added.

The United States is the Philippines’ top destination for exports, typically accounting for around 17% of overall export goods.

“It’s going to be harder to have a united ASEAN (Association of Southeast Asian Nations) response to the tariffs because the effects on individual countries also vary to a great degree. There are winners and losers,” Ms. Gochoco-Bautista said.

“But in general, we know countries grew by being open economies, open to trade and investment. And anytime you have policies that restrict trade, in the end, nobody gains.”

Philippine bond bourse to start forward contracts in reform push

PHILIPPINE STOCK EXCHANGE — BLOOMBERG

PHILIPPINE REGULATORS have given the green light for market structure services firm PDS Group to offer trading of government bond forward contracts as the nation works to deepen its capital market.

A market framework and infrastructure for the instruments was approved by the country’s Securities and Exchange Commission on Jan. 2, said Antonino A. Nakpil, president of Philippine Dealing & Exchange Corp. (PDEx).

PDEx, the trading-services arm of PDS, operates Manila’s bond exchange and will run the new mechanism.

The bond forward contracts — which set a fixed price for a debt security on a future date and allow market participants to hedge interest rate risks — will be traded, cleared and settled through the PDEx fixed-income market. The forward buyer and seller may choose to settle obligations by offsetting their purchase and sales contracts.

“We made it non-deliverable so you can just keep rolling,” Mr. Nakpil said in an interview at a central bank event on Friday.

He said the mechanism will use a bilateral netting system — a legally enforceable arrangement between a bank and counterparty — rather than central clearing the way the US and some other markets do.

This will be the first Philippine peso interest rate hedge that mimics bond futures contracts, which trade on exchanges and are settled daily, Mr. Nakpil said. PDS is looking to launch it next month, he added, and trading will be in lots of P50 million ($853,000).

The Philippines is looking to bolster its capital market, preparing for increased demand in an economy posting one of Asia’s fastest growth rates. Bangko Sentral ng Pilipinas (BSP) last year expanded the list of derivatives products that banks may transact in to include forward contracts and any financial derivatives traded in an organized market.

The launch of the bond forward contracts will come just months after the Bankers Association of the Philippines, backed by the BSP, introduced a peso interest rate swap facility. Bond forwards will complement those to help firms manage rate risks, Mr. Nakpil said.

“The pieces of the puzzle are in place” for the capital market to develop, he said. — Bloomberg

DoF still pushing for key tax reform measures

PHILIPPINE STAR/KRIZ JOHN ROSALES

THE DEPARTMENT of Finance (DoF) is hoping several tax reform measures will be approved by Congress this year despite the upcoming midterm elections.

“The legislators have the option to do public hearings during the break. We can do the work then do just one committee meeting during the resumption to pass the committee report,” DoF Revenue Operations Group Director Euvimil Nina R. Asuncion told reporters on the sidelines of an event on Jan. 8.

“We will continue working with the leadership of the House and the Senate to pass the measures.”

The 19th Congress resumes session on Jan. 14, but will adjourn on Feb. 8 as lawmakers prepare for the start of campaign period. The campaign period for national elective posts starts on Feb. 11, while the campaign for local posts starts on March 28. The elections are scheduled for May 12.

Lawmakers will resume session on June 2 and will adjourn sine die on June 13, formally closing the 19th Congress.

Ms. Asuncion said the DoF is pushing for the approval of the excise tax on single-use plastics (SUPs), the proposed Government Revenues Optimization through Wealth Tax Harmonization (GROWTH) bill, and reforms for the fiscal regime for the mining industry.

“Instead of doing the CMEPA (Capital Markets Efficiency Promotion Act), we want the GROWTH bill [passed] instead since it covers both capital markets and financial intermediates. Actually, all of the items that are in CMEPA are also in the GROWTH bill. The GROWTH bill is the new Passive Income and Financial Intermediary Taxation Act (PIFITA), basically,” she added.

Ms. Asuncion also said the DoF hopes Congress will approve the bill imposing an excise tax on single-use plastics.

“We’re pushing for that as well. Not just because of revenues, but we really have to start looking at our commitments on climate change… We really see it as causing plastic pollution, especially in our cities. We really have to push for a revenue measure that will really discourage the use,” she said.

The House of Representatives approved its version of the bill in November 2022, while a similar measure is pending with a Senate committee.

Ms. Asuncion said these measures should have been approved last year, and could be deliberated on by the 20th Congress, which will open on July 28.

“That’s a new Congress again. We will have to explain the measures again and convince different people, depending on who wins in the elections,” DoF’s Ms. Asuncion said.

Albay Rep. Jose Maria Clemente “Joey” S. Salceda, who chairs the House Ways and Means Committee, said in a Viber message that tax reforms would not be delayed by the elections.

“I am not that worried about the elections. We were able to pass significant reforms during the lame duck session last time,” he said.

He noted the CMEPA bill is “well on the way,” while the proposed mining fiscal regime reform bill has a “strong chance” of getting passed before the 19th Congress ends.

“My preference is we get the Motor Vehicle Road User’s Charge done before the 19th Congress ends. The rates have not been updated since 2004, and it could yield substantial revenues of up to 52 billion for public transport, road projects, and other transport improvements,” Mr. Salceda said.

TAX AMNESTY
Meanwhile, DoF’s Ms. Asuncion said the department is looking to introduce a general tax amnesty measure.

“So right now, the estate tax amnesty is still effective. The delinquencies are down. But this is what we will look at if we were to have general tax amnesty,” she said.

“Hopefully we get to introduce it this year. Whether this Congress or the next, that is the question,” she added.

In 2019, then President Rodrigo R. Duterte signed Republic Act 11213 or the Tax Amnesty Act but vetoed the provision for a general tax amnesty due to loopholes. Mr. Duterte only retained the provisions for estate tax amnesty.

“Tax amnesty is but a one-off measure but can result in tax decline in the long run as taxpayers would think they could always avail themselves of amnesty in the future,” Action for Economic Reforms Coordinator Filomeno S. Sta. Ana III said in a Viber message. — AMCS 

Listed companies must disclose external auditor fees — SEC

ALL COVERED companies should present fee-related information in a two-year comparative format as a supplement to their annual financial statements. — BW FILE PHOTO

THE SECURITIES and Exchange Commission (SEC) is requiring publicly listed companies (PLCs) and other public interest entities to disclose fees paid to their external auditors to improve transparency.

The corporate regulator issued Memorandum Circular No. 18 on Dec. 26 last year. This circular includes rules on disclosing fee-related information of external auditors, the SEC said in an e-mailed statement on Monday.

“To enhance transparency relevant to external auditors’ independence and align with the commission’s rules on fee disclosure requirements with the Code of Ethics for Professional Accountants duly adopted in the Philippines, the commission resolved to issue these guidelines,” the SEC said.

The guidelines will apply to the annual financial statements (AFS) of covered entities for the period ending Dec. 31, 2024, onwards.

Entities covered by the guidelines include PLCs, issuers that have sold a class of securities pursuant to a registration under Republic Act No. 8799 or the Securities Regulation Code (SRC), and public companies or firms with assets of at least P50 million and 200 or more holders of at least 100 shares of a class of equity securities each.

The rules also apply to companies filing their financial statements for the issuance of any class of instruments in a public market; holders of secondary licenses issued by the SEC, Bangko Sentral ng Pilipinas, and Insurance Commission; and other corporations that the SEC may consider in the future as public interest entities.

Under the guidelines, all covered companies should present fee-related information in a two-year comparative format as a supplement to their AFS.

“The required disclosure covers fees paid or payable to, or as agreed with, the external auditor/audit firm and network firms for the audit of financial statements on which the external auditor expresses an opinion,” the SEC said.

Fees charged to the company and its controlled entities, consolidated in the financial statements, will be presented in a two-year comparative format.

The new disclosure guidelines also cover fees charged to any other related entities directly or indirectly controlled by a covered company for services by the external auditor/audit firm or a network firm.

If applicable, the guidelines also state that total fees received by the external auditor/audit firm from the covered company that represent over 15% of the total fees received by the external auditor for two consecutive years, and the year this situation first arose, should also be disclosed in the two-year comparative format.

Meanwhile, the SEC said covered companies are not required to adhere to the guidelines if the information relates to a parent entity or an entity directly or indirectly wholly owned by another public interest entity that is also preparing consolidated financial statements which already include the supplementary schedule.

The SEC warned that those who fail to comply with the guidelines will face penalties as prescribed under the Revised SRC Rule 68 and the commission’s consolidated scale of fines and penalties.

“This is a commendable measure to enable regulators and the investing public to better assess the independence of external auditors,” China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message.

“The hope is that higher transparency will strengthen corporate governance and help address ethical concerns around fee dependency,” he added. — Revin Mikhael D. Ochave

The King (of Philippine Nightlife)

STARDUST VIP AREA

By Joseph L. Garcia, Senior Reporter

FOR AN epic party, it’s always nice to have a hand to hold. In Manila, Louie Y (Luis Miguel Ysmael) has long held the city’s collective hand, having founded or been a partner to some of the hottest clubs in the city since opening Stargazer back in 1979.

Of that first club he wrote in the book Good Morning, Time To Sleep: The Adventures and Misadventures of Manila’s Nightlife Legend*: “It was a beautiful place, most especially at night. There’s nothing like towering over city lights and listening to good music… The music was the best of the ’70s and ’80s.”

Louie Y has not stopped partying since.

On Jan. 8, Mr. Ysmael took us to his latest venture (he’s a co-owner along with actor Alden Richards, Michael Chung, Manolet Dario, Angelo de Dios, André Kahn, Peter Hager, Nick Camcam, Vincent Lao, and Charlie Carmona) — Stardust, in Jupiter St. in Makati.

It’s class all the way: one enters through a mirrored hallway with a light fixture made of disco balls — more disco balls are found inside, including a central one that spins. One can see the difference between a cheap disco ball and these expensive ones: these have smaller shards of mirror, the better to diffuse light.

We asked Mr. Ysmael how many clubs he had opened since 1979’s Stargazer, at the top of the Silahis Hotel in Manila (the 19th floor, to be exact). Turns out there were more clubs than he has fingers.

There was that first club, then Louie Y’s, Pare (a members’ only club concept), then Euphoria in 1987, then Venezia (which became V Bar), then Nouveau. In the 2000’s, he entered into a partnership with the group of Erik Cua, joining the ventures that opened Prive, 71 Grammercy, Opus, and the present Palace club complex. By his count, he’s either founded or been a part of about 19 clubs. That means that for every generation since 1979, directly or indirectly, Mr. Ysmael’s finger has been on Manila’s partying pulse.

“It’s good synergy,” he said about his younger partners. “My name, my experience, my network of older… combined with Erik’s new market, new network, plus their energy. Galing (it’s great).”

His latest ventures are forays into the older market that still likes to go out. “This is the second one that I did for an aged market like that,” he said, recalling Pare. Another is his jazz club in Baguio, Louie Y’s at The Lodge. “Good food, personal service. Fantastic sound system. Good choice of music,” he said. “We want to go back to that time,” he said about Stardust, which is probably the reason for the disco interiors, and the disco music playing during our interview (but then, disco is immortal).

‘I LOVE THE NIGHTLIFE’
Mr. Ysmael discussed why parties in Manila simply hit different — and he knows whereof he speaks since he studied on the US East Coast and Europe, and was partying it up the whole time. “For Southeast Asia, we have the coolest and the hippest people. We speak English, we relate to American music better, compared to all the other… medyo (who are a bit) trying-hard, you know? Pretentious.

“The other countries that I would say that compare to the Philippine nightlife are Tokyo, and maybe at that time, Hong Kong. Pero wala na (but that is gone),” he said. “Thailand’s picking up. But No. 1 talaga ang Philippines pag dating sa nightlife (but No. 1 is really the Philippines when it comes to nightlife),” he said.

“We are a musically inclined people. Even the live bands all over the world, puro Pinoy iyan (those are all Filipinos).”

Discussing how different parties are now, he noted that “There’s more people partying now.” He remembers being asked if the girls at parties now are prettier than the girls in the parties before: “No, there’s just a lot more.”

“The influx of those coming in (to) a young club is bigger and heavier than the older ones who are slipping away slowly,” he said. “Somebody turns 18 every day. That’s new material, new customers for the clubs.

“People get older every day too. Somebody turns 65 every day… the market thins out on the older end.”

‘STAYIN’ ALIVE’
When we met him, he was dressed in a powder blue shirt, with matching suede loafers. A gold chain with a pendant lay on his chest, complimenting a rather battered Cartier Love bracelet on his wrist (the dents make it look chicer, if you ask us). More or less a senior citizen, we ask where he still gets his energy.

“The energy — I guess I’m blessed. See, I’m only 48…1948,” he joked.

“I’m losing the energy too. It’s not the same as before. But it’s my passion. It’s what I do. Some people like to paint, some people like to gamble. For me, this is fun and work at the same time. It keeps you going. It’s better than sitting around at home. I have time to do what I want,” he said.

A society scion — his father was steel heir Johnny Ysmael; his mother was the daughter of statesman Claro M. Recto, Chona Recto, a formidable name in her own right — he talked about how his background influences his approach to life and parties. “My mom was — she passed away when I was just opening Euphoria. She was very happy about my success. She knew — at that time, I had already been around, and I knew what I was doing. She was my mom, my sister, my best friend, all together. We traveled a lot together when things weren’t going well with my stepfather,” he said.

“She was a big influence on who I am and my outlook on life,” he said. “Just being true to yourself. Have good friends who will support you. Have a family that loves you and that you love, and just believe. Believe in what you’re doing.”

‘DON’T STOP ’TIL YOU GET ENOUGH’
We talk about the fast living that comes with clubs: drugs, drinking, sex, late nights, etc. “I’ve done it all. And I’m not dead,” he noted.

“That was a lifestyle of those times. If you can maintain, do all those (things), and drinking, and staying up late, and still remain on two feet, and with your brain in order – you’re good,” he said, but admitted: “I think I passed that already.”

“If it feels good, do it. That’s what I always say. But always know when it’s not feeling good. Right?”

He continued: “Health is wealth. Remember that. And the only two best things in life are health and happiness. Wealth is good too, but it might fuck up your health and happiness.”

There’s a 1969 song sung by Peggy Lee, “Is That All There Is?” There, she meditates on death: “Oh, no, not me/I’m not ready for that final disappointment,” then she encourages everybody to keep dancing, and to “break out the booze and have a ball/If that’s all there is.”

Time, of course, takes its toll, even on the King of Manila’s Nightlife.

“Well, I have health issues,” said Mr. Ysmael, pointing to his back. “Sciatica.” He’s not as active in sports anymore, when he used to play badminton three times a week. “Slowing down, because I’m ageing. But — I see some of my friends, sometimes, my age,” and then here he makes a bit of a wince. “Ooh. I’m lucky.”

“Pursue retirement? It’ll just happen. I’m retiring slowly. You don’t just say, ‘that’s it, goodbye,’” he said.

“Hanggang kaya (while I still can). So long as I’m happy, and healthy.”

* Good Morning, Time To Sleep: The Adventures and Misadventures of Manila’s Nightlife Legend, by Louie Ysmael with Enzo Teodoro and GP Reyes

Stardust is at 58 Jupiter St., Makati. It is open from Tuesdays to Saturdays. Call 0917-167-5800 for reservations and inquiries or e-mail reservations@stardust.ph.

PHL real estate to soar with major infrastructure projects — analysts

PHILIPPINE STAR/MICHAEL VARCAS

By Aubrey Rose A. Inosante, Reporter

THE PHILIPPINE government’s ambitious infrastructure program is expected to reshape the real estate market, driving up land values and office lease rates, according to analysts.

“Massive public investments in infrastructure should stoke Philippine property, benefiting developers with condominium projects across the country,” Joey Roi Bondoc, director and head of research at property consultancy group Colliers Philippines, said in an interview with BusinessWorld.

“Buyers of luxury projects will likely gravitate towards residential developments near public infrastructure projects,” he added.

Transport infrastructure projects, such as the Metro Manila Subway, expected to be completed in 2028, are seen to benefit major central business districts (CBDs) like Quezon City, Ortigas, Fort Bonifacio, Pasay, and Valenzuela.

Other projects awaited by property developers include the Mass Rapid Transit (MRT)-7 and 4, the Manila-Clark Railway, the New Manila International Airport in Bulacan, and the Light Rail Transit Cavite Extension Phase 2. The Cavite-Batangas Expressway, the Central Luzon Link Expressway, the Bataan-Cavite Bridge, and the rehabilitation of the Ninoy Aquino International Airport are also in the pipeline.

“Proximity to infrastructure is a normal amenity these days, and developers can command premium prices and rents for properties situated near infra projects,” Mr. Bondoc said.

He noted that from 2016 to 2023, house and lot prices in these regions rose by an average of 3.6 to 7.2% per annum.

Meanwhile, lot-only developments saw price increases of between 6.7% and 15.4% per year during the same period.

For the office market, Mr. Bondoc said the increase in rents and values of properties near new transportation hinges on the attractiveness of locations to tenants and the current vacancy rates.

“Aboitiz InfraCapital’s Economic Estates and Aboitiz Land’s residential communities are strategically positioned to capitalize on the transformative effects of new infrastructure developments,” Aboitiz Land, Inc. said in an e-mail to BusinessWorld.

Aboitiz InfraCapital, the infrastructure arm of the Aboitiz Group, includes LIMA Estate in Batangas, TARI Estate in Tarlac, West Cebu Estate in Cebu, and the Mactan Economic Zone Processing 2 in Lapu-Lapu City in its roster of economic estates.

The firm said the estates are designed as “industrial-anchored townships” strategically linked to essential infrastructure like major highways, airports, and seaports, ensuring efficient supply chains and strong connectivity.

For example, LIMA Estate is located near the Southern Tagalog Arterial Road (STAR) tollway and will soon benefit from the upcoming Southern Luzon Expressway (SLEX) Toll Road (TR) 4 project, reinforcing its status as Southern Luzon’s leading industrial and business hub.

Similarly, the TARI Estate is accessible through the North Luzon Expressway (NLEX), Subic-Clark-Tarlac Expressway (SCTEX), Tarlac-Pangasinan-La Union Expressway (TPLEX), and Central Luzon Link Expressway (CLLEX).

“Enhanced connectivity through infrastructure projects like the Metro Manila Skyway Stage 3, SLEX TR4, TPLEX, CLLEX, and the NLEX-SLEX Connector Road has significantly boosted demand and property values across our developments,” Aboitiz Land said.

It cited that the 800-hectare LIMA Estate’s location and accessibility have driven growth, with housing developments such as The Villages at Lipa seeing a 145% value appreciation since its launch in 2019.

Masterplanned communities Ajoya Cabanatuan and Ajoya Capas have seen value appreciation of 181% and 86%, respectively, since their launches in 2018, it said.

“Through strategic investments in infrastructure, sustainable housing solutions, and long-term planning, we continue to support locators, property seekers, and communities — ensuring ongoing growth and expansion beyond today’s developments,” the firm said.

The efforts are all aligned with the Build, Better, More agenda, which targets infrastructure investment of 5% to 6% of the country’s gross domestic product, it said.

This infrastructure flagship program is set to roll out 186 infrastructure flagship projects with a combined value of P9.6 trillion, or approximately $163 billion.

Nigel Paul C. Villarete, a senior adviser on public-private partnerships at Libra Konsult, Inc., said that the traditional real estate mantra of “location, location, location” is not entirely accurate. Instead, a more fitting mantra would be “access, access, access,” he said, noting that from a planning perspective, “land use and transport” are inherently linked.

Mr. Villarete also said the infrastructure projects have a “turbocharger” role in promoting sustainable urban growth in the country.

He noted the Cordova-Cebu Link Expressway (CCLEX), which has boosted not only the linked local government units of Cebu City and Cordova but also the entire Metropolitan Cebu and Central Visayas (Region VII) economies.

Meanwhile, DMCI Homes, Inc. President Alfredo R. Austria said building transit-oriented developments (TODs) benefits not only the value of properties but also future residents of housing developments.

“Think about it 10 years or five years from now. You can see the traffic there; that’s a lot of vehicles added every year,” he told BusinessWorld.

Mr. Austria also noted that Metro Manila is one of the densest cities in the world and cannot survive without a good mass transit system.

“We have a lot of developments near train stations, so transit-oriented. This one, [The Crestmont], then there’s Erin Heights, the Infina [Towers]. There are a lot of them. It’s all within 300 meters [train stations],” he said.

The Crestmont condominium is located along Panay Avenue in Quezon City, steps away from the MRT-3 Quezon Avenue Station, and accessible via major road networks like EDSA.

DMCI said the property’s future residents are expected to benefit from ongoing infrastructure projects such as the Metro Manila Subway Project, the MRT Line 7, and the Unified Grand Central Station in North Edsa, Quezon City.

Meanwhile, the Infina Towers along Aurora Boulevard is near the Anonas Station of the upcoming Metro Manila Subway project, indicating the area’s significant investment potential.

He also said that similar to other major cities globally, buying property near a train station, the value increase is “contagious.”

Regarding transit-oriented developments, Mr. Bondoc said transit-oriented retail is now becoming the norm.

“Beyond 2025, we see the development of more masterplanned communities that are developed near public projects such as airports, railways, bus rapid transits, and toll roads,” he said.

The consultancy group sees property firms banking on the capital appreciation potential of their residential projects that will be developed near these “game-changing infrastructure projects.”

Colliers recommends developers align their future residential developments in provinces with upcoming infrastructure such as Cavite, Laguna, Bulacan, Tarlac, Pampanga, Cebu, and Davao, as these public projects have the potential to raise land values and property prices.

“Among the developers likely to benefit from being near public projects are Rockwell Land, Inc., Megaworld Corp., Ayala Land, Inc., Robinsons Land Corp., Sta. Lucia Land, Inc., Vista Land & Lifescapes, Inc., Brittany Corp., Shang Properties, Inc., etc.,” Mr. Bondoc said.

He added that property firms should further ramp up their presence near transportation projects or even build their own TODs to take advantage of the property sector’s growth post-pandemic.

“For both office and residential segments, one thing is certain: developers’ strategies even beyond 2025 are likely to be dictated by the government’s infrastructure push,” Mr. Bondoc said.

He said the firm sees infrastructure projects eventually raising the attractiveness of office spaces and their lease rates.

However, the consultancy company remains cautious about the overall outlook for rental appreciation potential, especially as there are about 2.6 million square meters of available office space across Metro Manila.

TheKoolPals Bar blends stand-up comedy, live podcast recording

(L-R):James Caraan, Muman Reyes, Ryan Rems, GB Labrador, and Nonong Ballinan making the crowd laugh.

THERE is no greater joy than doubling over from laughter with friends, especially if the jokes at the root of the chaos are fun and irreverent. Powerhouse comedy ensemble The KoolPals, consisting of stand-up comics GB Labrador, James Caraan, Nonong Ballinan, Ryan Rems, and Muman Reyes, specializes in recreating this exact atmosphere — be it live on a comedy stage or online through their podcast.

Since 2019, The KoolPals have generated belly laughs among Filipinos in various establishments while their virtual community thrived, Spotify even named them the Top Comedy Podcast in the Philippines of 2024.

At The KoolPals Bar, located in The Cellar at the Century Park Hotel Manila, the shared experience of a live stand-up venue and the exclusivity of listening in on a new podcast episode are combined.

“We’ve always dreamed of putting up our own bar,” founding member Mr. Labrador told the media at the official launch last week. “We imagined this, the bar area, and the space in the back being the studio. After a year, it came to life.”

Deemed an “entertainment and live podcast hub,” it is open on Sundays, when the five members are in the studio to record their three episodes for the week, all livestreamed for bargoers to see on a projected screen. In between recordings, The KoolPals go out to the bar space to perform live sets.

While this was not BusinessWorld’s first time hearing jokes from the five, it was still a memorable experience to sample unfamiliar material as well as old stuff told in new ways. Fan favorites include Mr. Ballinan’s hilarious impressions of Filipino Transformers robots (jeepneys, UV Express vans, and e-bikes), and Mr. Labrador’s pitch for a TV commercial promoting the Philippines’ exorcism center.

“Noong 2019, naisip namin gumawa ng podcast para ma-promote ang stand-up shows. Kaya solid ang mga set namin, kasi nagsisimula sa mga batuhan at kwentuhan namin bilang KoolPals (In 2019, we thought of creating a podcast to promote our stand-up shows. That’s why our sets are solid, because they stem from the exchanges and stories we share as KoolPals),” said founding member Mr. Caraan.

THE SPACE
The KoolPals Bar, tucked away in a hallway behind the hotel’s ground floor escalators, has a welcoming atmosphere befitting a comedy venue. Aside from the five hosts’ podcast recordings and live sets, it will occasionally be open to other comics and even musicians.

JJ Tan, managing director of Century Park Hotel Manila, told the press that the area where the studio and bar are now used to be a storage space. As a KoolPals fan, he was glad to help out.

“Bodega lang ito dati. Twelve years nang di ginagamit, at ngayon punung puno na ng tao at tawa. (It used to be storage space. Unused for 12 years, now filled with people and laughter),” Mr. Tan said.

Already set apart from its contemporaries by being the only venue in the Philippines that offers both a live podcast studio and a comedy stage in one, The KoolPals Bar aims to feature “Pinoy stand-up comedy’s finest performers.”

“This is a comedian’s playground,” Mr. Labrador said. “It’s a space where good food, drinks, and comedy come together. It’s where people can relax, laugh, and make memories.”

NATIONWIDE TOUR
In addition to launching the comedy hub, The KoolPals are also set to start a nationwide tour.

This will bring their live shows across the Philippines, including Pampanga, Tagaytay, Baguio, Cebu, and more. The tour will culminate in the recording of their very first comedy special, which they hope to stream on global platforms in the near future, the hosts told the press. Arcade Film Factory and director Marius Talampas will helm the production.

As for the podcast, they are working on securing top TV comedians as guests in response to fan requests. Their latest format, filled with interactive games and chaotic fun, is “Noontime Show,” which airs on Sundays at 4 p.m. via Facebook Live.

Mr. Caraan revealed that they have come a long way from recording in a cramped room with minimal equipment. “The community we’ve built has been incredible, and we’re excited to see where 2025 will take us,” he said. — Brontë H. Lacsamana

Cebu Landmasters enters co-working space market

LISTED property developer Cebu Landmasters, Inc. (CLI) has entered the co-working space market with the launch of WorkNook in Cebu City.

WorkNook caters to freelancers, small businesses, and students, CLI said in a regulatory filing on Monday.

CLI’s first co-working space is located at the Base Line Center mixed-use development along Juana Osmeña Street.

WorkNook features private offices for teams and groups, co-working spaces for individuals, and meeting rooms for discussions or presentations.

Citing a study by digital communications technology company Cisco, CLI said that 37% of Filipino workers feel that traditional office setups limit their potential, underscoring the need for co-working spaces.

“Our goal is to support professionals seeking alternatives to working from home in a modern, positive work environment,” CLI Senior Vice-President for Marketing and Leasing Joanna Marie Soberano-Bergundthal said.

“WorkNook reflects our vision of creating spaces where today’s professionals can thrive,” she added.

CLI said the flexible workspaces are priced at introductory rates starting at P250 for half a day, P350 for a whole day, P1,800 weekly, and P5,500 monthly.

The private office spaces are available for P9,000 monthly, dedicated seats at P7,500 monthly, and meeting rooms of various sizes for four-hour use designed for professionals and teams.

CLI said the launch of WorkNook will contribute an additional 32,196 square meters (sq.m.) of leasable space to the company’s pipeline.

The property developer saw a 47% increase in leasing revenue from January to September 2024, reaching P144 million, led by 9,219 sq.m. of new leasable space in its portfolio.

WorkNook is open Monday to Saturday, from 8:00 AM to 6:00 PM, with 24/7 access to private offices.

Meanwhile, CLI said in a separate regulatory filing that the Securities and Exchange Commission on Jan. 10 approved a move to increase the number of its board directors to 11 from 9. 

For the first nine months of 2024, CLI grew its net income by 7% to P2.3 billion as revenue climbed by 9.2% to P14.1 billion on strong demand across residential, mid-market, and economic housing segments, along with commercial lot sales.

CLI shares fell by 0.76% or two centavos to P2.62 per share on Monday. — Revin Mikhael D. Ochave

iACADEMY launches 2nd edition of film project lab

TWO short films about the displacement of communities from the perspective of the youth have been made after undergoing a project lab and winning production grants worth P500,000 each under iACADEMY’s iNDIEGENIUS program.

This year, the second edition of the program aims to empower more filmmakers with regional backgrounds to bring their films to life.

Launched in 2023, iNDIEGENIUS is part of a greater commitment to “foster film education and support the next generation of filmmakers,” in partnership with the Film Development Council of the Philippines (FDCP) and the Directors Guild of the Philippines (DGPI).

The short film Bisan Abo, Wala Bilin (Even Ashes, Nothing Remains) by Kydylee Torato, one of the two finalist grantees from the first edition, recently premiered at the Sinag Maynila Film Festival among other regional film festivals. Meanwhile, Muli Ka Na, Merlie (Uwi Ka Na, Merlie) by Shane David, the other winner, is set to premiere this year.

At a screening of the two films last week at the Power Plant Mall in Makati, iACADEMY president Raquel Perez-Wong said that the iNDIEGENIUS film lab is one of the best in the Philippines.

“We’re a school that specializes in software engineering, game development, film, and multimedia, and we try to make it accessible to the next game changers and creative storytellers. But there are students who, for different reasons, are not able to go to school or complete a degree. This led to the birth of iNDIEGENIUS,” she said.

Building on the success of last year’s inaugural event, which was open to all, the second edition will focus on younger filmmakers, aged 18 to 35. The call for applications runs until Jan. 27.

Ten projects will once again be selected to undergo the film lab, two of which will win P500,000 production grants. Meanwhile, the program has expanded its scholar slots (those filmmakers  whose projects are not ready for production but who will still join workshops) from two to 10.

The two scholars last year were Cedrick Labadia and Sophia Velonza, who went on to create their own films and also represented the Philippines at the Busan International Film Festival.

“This expansion means that up to 20 projects in development will benefit from the project lab,” said Keith Sicat, program director of iNDIEGENIUS. “The whole point is to open the door and make sure it’s accessible. We don’t want to be gatekeepers. We want to open the floodgates for everybody.”

Those interested in applying can do so until Jan. 27 via https://indiegenius.iacademy.edu.ph. iNDIEGENIUS will select 10 finalist projects and 10 scholars, all of whom will undergo intensive workshops in March. — Brontë H. Lacsamana

Three business trends SMEs should prepare for in 2025

FREEPIK

Last year brought significant challenges and developments for Philippine small and medium enterprises (SMEs). Access to financing remains an issue: banks only lent 4.52% of their loan portfolio to SMEs as of June 2024. In August and October, the Bangko Sentral ng Pilipinas (BSP) reduced its key policy interest rates after four years, making it easier for businesses and consumers to borrow and finance their spending due to lower interest rates.

The passing of the CREATE MORE Act (Corporate Recovery and Tax Incentives for Enterprises – Maximize Opportunities for Reinvigorating the Economy Act) and other landmark legislation also enhanced the ease of doing business by making tax incentives more competitive, reducing red tape, and providing better guidelines on business obligations.

These developments have set the stage for 2025 — a year poised to bring even greater transformation. In 2025, three key business trends will have a profound impact on how SMEs operate and compete. Keeping pace with these business trends will help SMEs maintain growth, profitability, and relevance in an increasingly dynamic and digital marketplace.

1. AI BECOMES STANDARD PRACTICE
Artificial Intelligence (AI) is no longer a futuristic concept — it’s now a standard business tool for many SMEs. By using ChatGPT and Canva AI to create their own marketing materials, SMEs have reduced marketing development costs; chatbots have also improved operational efficiency by enabling 24/7 customer support.

Last year saw tech giants like Google, Amazon, and Netflix, reinvent their business models through deep learning, causing widespread changes in industries, like online advertising, e-commerce, and streaming. In 2025, SMEs are expected to follow suit with generative AI at the forefront. Instead of simply embedding AI into their processes, forward-thinking SMEs will build entirely new products and services powered by AI. This shift will impact sectors like healthcare, manufacturing, and education — unlocking new possibilities and business models.

More SMEs will also use AI for automation, predictive analytics, and personalized customer interactions. Aside from transforming operations, this will create new opportunities for growth and differentiation. However, SMEs must not be too hasty in adopting AI-driven solutions at the expense of displacing employees. Balancing automation with human roles can create a more sustainable growth strategy and preserve workforce morale.

2. CUSTOMERS DEMAND A BETTER EXPERIENCE
Customers are constantly raising their standards. Today’s consumers are vocal on social media — and one poor experience can easily lead to a viral post that tarnishes a brand’s reputation. In 2025, businesses will face heightened expectations for seamless, efficient, and personalized experiences.

To stay relevant, businesses must prioritize customer experience (CX) as a core differentiator — executing it as a holistic approach that covers every touchpoint in the customer journey. Customers expect personalized interactions, frictionless transactions, faster deliveries, and lower delivery costs. Companies that meet these demands will emerge as market leaders.

Modern customers also expect brands to recognize their preferences and interactions across platforms, whether online or offline. In response, businesses must implement more sophisticated omnichannel strategies that ensure smooth transitions between online and offline interactions. For example, customers should be able to return a product bought online to a physical store without any issues, or receive personalized product recommendations online based on their in-store shopping history.

By 2025, CX will be a critical factor in customer retention and brand loyalty. Businesses that create a unified brand experience — whether through websites, mobile apps, or in-store touchpoints — will build stronger customer relationships. Agility will be essential as businesses respond to customer feedback, adapt to trends, and continuously improve their services.

3. RED TAPE HINDERS SMEs — AND ECONOMIC GROWTH
In the Philippines, navigating bureaucratic red tape remains one of the most significant hurdles for startups and SMEs. According to Acclime, the process of registering a business property in the Philippines takes 39 days on average; companies are expected to make 47 tax payments per year. Such regulations and bureaucratic processes can stifle SME growth and limit their contributions to the economy in 2025.

Policy reforms are underway to address these issues. Recent amendments to the Public Service Act, Retail Trade Liberalization Act, and Foreign Investment Act aim to simplify procedures and reduce foreign equity restrictions. Initiatives, like the Philippine Business Hub (PBH) and the Green Lanes for Strategic Investments, offer entrepreneurs more streamlined ways to start and manage their businesses. But in the meantime, entrepreneurs must stay up to date with regulatory changes and make do with available digital tools to comply with business and tax obligations.

For businesses that are able to navigate these regulatory hurdles, the payoff can be significant. Entrepreneurs that keep pace with digital government initiatives and compliance requirements will have a competitive edge. Government reforms, once fully implemented, could foster a more business-friendly environment, enabling growth in the startup ecosystem.

FINAL THOUGHTS
The three biggest business trends of 2025 — AI becoming standard practice, heightened customer experience demands, and the dual impact of bureaucratic red tape — will shape the future of businesses, particularly SMEs. Companies that embrace these trends will be better positioned to seize growth opportunities, while those that resist change may struggle to remain relevant.

The evolution of business trends calls for adaptability, innovation, and resilience. SMEs that stay ahead of the curve by leveraging AI, prioritizing customer experience, and navigating regulatory challenges will be poised for sustainable growth in 2025 and beyond.

To stay ahead of these emerging business trends, SMEs must have access to reliable financial support. A business credit line or flexible financing option can empower companies to invest in R&D, expand operations, and enhance processes. Entrepreneurs looking for financial flexibility can explore solutions like a revolving credit line, which provides accessible funds to seize opportunities and manage challenges as they arise.

This article reflects the personal opinion of the author and does not reflect the official stand of the Management Association of the Philippines or MAP.

 

Benedict S. Carandang is a member of the MAP ICT Committee and is the VP for External Relations of First Circle. This article was co-written with Jess Jacutan, content marketing consultant for First Circle, a fintech company that empowers SMEs through funding and free growth tools.

map@map.org.ph

benedict@firstcircle.ph

Maynilad says P4.84-B sewage facility 33% complete

WEST-ZONE CONCESSIONAIRE Maynilad Water Services, Inc. said its P4.84-billion water reclamation facility in Las Piñas City has reached 33% construction progress and is slated to start operations by July 2026.

Once operational, the facility will treat up to 88 million liters of wastewater per day, serving approximately 360,000 residents across 20 barangays in Las Piñas City, Maynilad said in a statement on Monday.

Treated wastewater from the facility will be discharged into the Zapote River, which flows into Manila Bay.

“Our construction timeline was unfortunately delayed by pandemic restrictions in 2020, but we resumed work in 2023 with renewed focus,” said Ramoncito S. Fernandez, president and chief executive officer of Maynilad.

“This project reinforces our commitment to providing reliable wastewater services for our customers and easing the pollution burden on Manila Bay,” he added.

Maynilad said the Las Piñas Water Reclamation Facility is part of its “larger program to accelerate the rollout of sewerage and sanitation services in Metro Manila.”

The project is financed through a partnership with the Japan International Cooperation Agency and the Development Bank of the Philippines.

The company said it has invested over P46.4 billion in enhancing the wastewater infrastructure across its concession area since 2007.

At present, Maynilad operates 22 sewerage treatment plants, two sewage and septage treatment plants, and one septage treatment plant, with a combined treatment capacity of approximately 724,000 cubic meters per day.

“This latest facility is a testament to Maynilad’s continued dedication to environmental sustainability and public health through improved wastewater management,” it said.

The company serves certain portions of Manila, Quezon City, and Makati. It also operates in Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas, and Malabon. It also supplies the cities of Cavite, Bacoor, and Imus, and the towns of Kawit, Noveleta, and Rosario, all in Cavite province.

Metro Pacific Investments Corp., which has a majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and 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

Entertainment News (01/14/25)

Paolo Sandejas releases debut album

FILIPINO singer-songwriter Paolo Sandejas has released his debut album which is out now via Sony Music Entertainment. Titled the world is so small, the eight-track album is an exploration of love, loss, and self-discovery, particularly within the formative years of one’s 20s. The album is divided into four thematic arcs, each representing a different phase of a relationship.

Medical drama Doc out on AXN ASIA

THE brand-new medical drama Doc has debuted in the Philippines, exclusively at AXN Asia. It centers on the brilliant Dr. Amy Larsen (played by Molly Parker), Chief of Internal Medicine at Westside Hospital. After a brain injury erases the last eight years of her life, she must navigate an unfamiliar world where she has no recollection of patients she’s treated, colleagues she’s crossed, the man she loves, or the tragedy that caused her to push everyone away. Based on the globally acclaimed Italian series Doc – Nelle Tue Mani, the new show airs every Monday at 8:50 p.m. on AXN Asia, available at Cignal on Channel 121, GSAT on Channel 60, and Sky Cable on Channel 49.

Barbie Almalbis drops 5th studio album

ICONIC Pinoy rock musician Barbie Almalbis has released her new album, Not That Girl. It aims to offer a fresh direction in her evolving sound. Its themes are emotional healing, resilience, and the challenges of navigating mental health. Not That Girl is out now on all digital music streaming platforms.

Three movies opening on Jan. 15

THE midpoint of January will see three movies out in Philippine theaters. Paramount Pictures’ Sonic the Hedgehog 3, starring Jim Carrey, Ben Schwartz, James Marsden, Tika Sumpter, Idris Elba, and many others, will see the beloved Team Sonic take on a new enemy. Universal Pictures’ Wolf Man, directed by Leigh Whannell and starring Christopher Abbott and Julia Garner, offers an Oregon-set horror drama where a young family moves to the countryside and confronts a dangerous creature. Finally, the Ayala Malls Cinemas-exclusive 4DX concert experience, Tomorrow x Together: Hyperfocus, gives a glimpse of the K-pop boy group Tomorrow x Together’s latest performance with immersive visuals.

Little Mix’s JADE releases new single

POP star JADE has kicked off 2025 with the release of her song, “IT girl.” The bass-heavy, bold, electro pop track is written by JADE with Cirkut and Lostboy. The sharp lyrics reflect her experiences in the music industry and the often ruthless and complex nature of fame. It was first teased at the end of the music video for her previous song, “Angel of My Dreams.” It is out now on all digital music streaming platforms.

FDCP, Taskovski Films launch #DocsConnect film lab

THE Film Development Council of the Philippines (FDCP) has announced its partnership with the international documentary production company Taskovski Films. Together, they will bring the intensive documentary film lab #DocsConnect to the Philippines. From Jan. 16 to 20, 18 filmmakers will be chosen to develop their 10 documentary projects in a course designed to equip participants with the tools needed to bring their vision to life.

Global boy group search to premiere on TV5

In February, Be the Next: 9 Dreamers, a global collaboration between MLD Entertainment PH and TV5, is set to air. It is a talent survival show which brings gifted individuals from across Asia to showcase their potential. From the global auditions held in 2024, the aspirants have been narrowed down to 74 young men who must fight their way to debut as part of a new nine-member boy group. The show features 2NE1’s Sandara Park as the show’s emcee, with EXO-CBX’s Chen, MOMOLAND’s Hye-bin, AB6IX’s Woo-jin Park, Ye-dam Bang, and HORI7ON’s Vinci as the celebrity mentors. Leading K-pop choreographer Bae Wan Hee and producer Bullseye will participate as dance mentors. Be the Next: 9 Dreamers will air on TV5’s Weekend Trip block at 7:15 p.m. starting Feb. 8.

Pinoy rock queens reunite for concert

DUE to insistent public demand, Pinoy rock queens Acel Bisa, Aia de Leon, Barbie Almalbis, Hannah Romawac, Kitchie Nadal, and Lougee Basabas are restaging their sold-out concert, TANAW. The show will take place at the Newport Performing Arts Theater in Pasay City on Feb. 9, 8 p.m. The six Filipina alt-rock icons will be performing never-before-heard arrangements of their 1990s  hits and early 2000s songs with the help of The Manila String Machine. There will also be collaborations and new material. Tickets are available via https://tanawtherepeat.helixpay.ph.

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