Myanmar military still bombing towns despite earthquake crisis, rebels say

March 31, 2025 | 11:12 am

Flag of Myanmar | STOCK PHOTO | Image by www.slon.pics on Freepik

An armed resistance movement against Myanmar’s military-run government criticized the junta on Sunday for conducting airstrikes on villages even as the country reels from an earthquake that has killed around 1,700 people.

The Karen National Union, one of Myanmar’s oldest ethnic armies, said in a statement the junta “continues to carry out airstrikes targeting civilian areas, even as the population suffers tremendously from the earthquake”.

The group said that under normal circumstances, the military would be prioritizing relief efforts, but instead is focused on “deploying forces to attack its people”.

A spokesman for the junta did not reply to queries from Reuters about the criticism.

Myanmar has been locked in civil war with multiple armed opposition groups since a 2021 coup, when the military seized power from the elected government of Nobel Peace Prize laureate Aung San Suu Kyi.

Shortly after Friday’s devastating earthquake, military jets launched airstrikes and drone attacks in Karen state, near the KNU headquarters, according to the Free Burma Rangers, a relief organization. Singapore’s Foreign Minister Vivian Balakrishnan called for an immediate ceasefire to help aid distribution, following a virtual meeting with his ASEAN counterparts on the disaster.

“(Balakrishnan) called for an immediate and effective ceasefire in Myanmar which would facilitate the efforts to deliver humanitarian assistance and longer term national reconciliation, peace and reconstruction,” Singapore’s foreign ministry said in a statement.

The epicenter of the 7.7-magnitude quake was in an area held by junta forces, but the devastation is widespread and also affected some territory held by armed resistance movements.

On Sunday, the opposition National Unity Government, which includes remnants of the government ousted in 2021, said anti-junta militias under its command would pause all offensive military action for two weeks.

Richard Horsey, the senior Myanmar adviser at Crisis Group, said some anti-junta forces have halted their offensives but fighting continues elsewhere.

“The regime also continues to launch airstrikes, including in affected areas. That needs to stop,” he said.

The regime was not providing much visible support in quake-hit areas, he added.

“Local fire brigades, ambulance crews, and community organizations have mobilized, but the military – who would normally be mobilised to support in such a crisis – are nowhere to be seen,” Mr. Horsey said. — Reuters

Peso rally to fade on Philippine balance of payments deficit

March 31, 2025 | 11:10 am

one-thousand — Philippines peso notes are displayed in an arranged photograph in Bangkok, Thailand, on Sept. 12, 2019. Photographer: Brent Lewin/Bloomberg

The Philippine peso’s rally may run out of steam after the central bank revised its projection for the nation’s balance of payments to a deficit from a surplus.

The currency may fall toward a record low of 59 per dollar next quarter from around 57.4 now, according to forecasters at Australia & New Zealand Banking Group Ltd. and Malayan Banking Bhd. Meanwhile, analysts at Wells Fargo & Co. and Standard Chartered Plc predict the peso will depreciate to just below 59 by June after gaining this month.

Bangko Sentral ng Pilipinas revised its balance of payments forecast for 2025 last week and predicted a bigger current-account shortfall, citing worries over international trade policy. The gap will mean that there’s less demand for the peso at a time when US tariffs are already weighing on global markets.

“The negative sentiment from tariff threats is likely to still guide the pair higher throughout the rest of first half. This would not dissipate in the second half,” said Saktiandi Supaat, FX research head at Maybank. “The country’s persistent twin deficit condition would also add to the currency’s weakness.”

The Philippine peso has gained 1.1% this month to beat all but one of its Asian peers. It climbed to a five-month high of 57.09 in March amid broad weakness in the dollar.

While the rally will likely lose steam, the Philippines’ reliance on consumption and service exports may temper the impact of tariffs and provide the peso some relief, according to Michael Ricafort, chief economist at Rizal Commercial Banking Corp. in Manila. A possible BSP rate cut in April may have also been priced in by the market, he added.

Traders now await a report on March inflation due Friday to gauge the outlook for monetary policy and gain more insight into the peso’s near-term direction. Economists surveyed by Bloomberg predict that consumer-price growth slowed to 2% year-on-year from 2.1% in February, backing the case for an interest-rate cut.

Investors should also be careful about underestimating the political risks in the Philippines, according to Barclays, which sees the peso falling to 59 per dollar by the fourth quarter. Concerns have been mounting with President Ferdinand Marcos Jr. locked in a feud with the family of his predecessor Rodrigo Duterte.

The challenges are “likely to see investors demand a higher political risk premium in Philippine assets over the medium term,” FX strategists Mitul Kotecha and Audrey Ong wrote in a note this month. — Bloomberg

Britain hosts key nations to coordinate fight against people smugglers

March 31, 2025 | 10:41 am

LONDON – Britain will on Monday host a meeting of more than 40 countries and organizations, including the United States, France and Vietnam, to try to coordinate internationally its fight against illegal migration and those who profit from it.

British Prime Minister Keir Starmer, like all his predecessors for more than a decade, is seeking new ways to stop migrants coming illegally to Britain, where immigration remains a key issue for voters who worry about the pressure it puts on scarce resources like healthcare and housing.

Monday’s Organized Immigration Crime (OIC) Summit looks to address every stage of the global industry in people smuggling, including the supply chains for the small boats used to travel from France to Britain, and the tech firms whose social media platforms are used to advertise such illicit crossings.

“This vile trade exploits the cracks between our institutions, pits nations against one another and profits from our inability at the political level to come together,” Mr. Starmer will tell the summit, according to advance extracts of his speech.

Representatives from Meta, X and TikTok will participate.

Migrants from North Africa, the Middle East, Europe and elsewhere pay thousands of pounds to traffickers for places in small inflatable boats that then try to cross one of the world’s busiest shipping channels to reach the English coast.

Mr. Starmer was elected last year, promising to “smash the gangs” behind the crossings. He immediately ditched the previous Conservative government’s policy to deter migrants by setting up a scheme to deport them to Rwanda.

More than 36,800 people made the crossing in 2024, 25% more than the previous year, according to British government data. More than 6,600 people have crossed successfully so far in 2025.

“I simply do not believe Organized Immigration Crime cannot be tackled. We’ve got to combine our resources, share intelligence and tactics, and tackle the problem upstream at every step of the people smuggling routes,” Mr. Starmer will say. — Reuters

[B-SIDE Podcast] Colorectal cancer: All you need to know

March 31, 2025 | 10:11 am

Follow us on Spotify BusinessWorld B-Side

March is National Colorectal Cancer Awareness Month. In this B-Side episode, we dive into everything you need to know about the disease.

Colorectal cancer is the fourth leading cause of cancer-related deaths in the Philippines, with an estimated one in 1,800 Filipinos at risk each year. To help understand its symptoms, treatments, and prevention, Dr. Dave Rennel L. Sebollena, Vice President of the Philippine Society of Gastroenterology, joins the conversation.

We also explore the financial and healthcare support available for patients with Dr. Israel Francis A. Pargas, Senior Vice President for the Health Finance Sector and Spokesperson of PhilHealth.

Interview by Edg Adrian Eva
Audio editing by Jayson Mariñas

Follow us on Spotify BusinessWorld B-Side

Trump says reciprocal tariffs will target all countries

March 31, 2025 | 8:36 am

ABOARD AIR FORCE ONE – US President Donald Trump said on Sunday that reciprocal tariffs he is set to announce this week will include all nations, not just a smaller group of 10 to 15 countries with the biggest trade imbalances.

Trump has promised to unveil a massive tariff plan on Wednesday, which he has dubbed “Liberation Day.” He has already imposed tariffs on aluminum, steel and autos, along with increased tariffs on all goods from China.

“You’d start with all countries,” he told reporters aboard Air Force One. “Essentially all of the countries that we’re talking about.”

White House economics adviser Kevin Hassett recently told Fox Business that the administration’s tariffs focus would be on 10 to 15 countries with the worst trade imbalances, though he did not list them.

Trump sees tariffs as a way of protecting the domestic economy from unfair global competition and a bargaining chip for better terms for the US.

However, concerns about a trade war are unsettling markets and creating fears of a recession in the US.

Trump has said he will impose a suite of reciprocal tariffs against nations that charge fees on US exports, promising to match those countries’ duties.

In February, Trump signed a memorandum that directed US trade officials to go country by country and put together a list of tailored counter-measures.

Last week, he suggested he might scale back his reciprocal plans, perhaps imposing tariffs in some cases at lower rates than countries charge the United States. — Reuters

Inflation likely eased further in March

March 31, 2025 | 12:33 am

Gas pump — FUEL PUMPS are seen at a gasoline station in Paco, Manila, Feb. 22, 2025. — PHILIPPINE STAR/NOEL B. PABALATE

By Luisa Maria Jacinta C. Jocson, Reporter

HEADLINE INFLATION likely eased slightly in March as prices of rice and fuel further dropped, analysts said.

A BusinessWorld poll of 18 analysts conducted last week yielded a median estimate of 2% for the March consumer price index (CPI).

If realized, this would be slower than the 2.1% in February and the 3.7% clip in the same month a year ago.

This would also be the lowest monthly inflation in six months or since the 1.9% print in September.

The Bangko Sentral ng Pilipinas (BSP) has not yet released its month-ahead inflation forecast for March.

The Philippine Statistics Authority (PSA) is set to release March inflation data on Friday, April 4.

“For March, I’m looking at 2% inflation as food prices will likely continue to slow down, driven by good weather and further softening in rice prices,” Sun Life Investment Management and Trust Corp. economist Patrick M. Ella said.

Security Bank Corp. Vice-President and Research Division Head Angelo B. Taningco gave a March inflation forecast of 2%, citing “low food inflation due to declining rice prices amid monthly price upticks in fish, meat, fruits, and vegetables.”

Rice inflation dropped to 4.9% in February from the 2.3% decline in January. This was the lowest rice inflation since the 5.7% contraction in April 2020.

The PSA had previously said rice inflation could remain in the negative for the rest of the year amid continued interventions by the government.

The government has slashed tariffs on rice imports to 15% starting July 2024.

“The reduction in rice tariffs will help bring prices lower than a year earlier,” Moody’s Analytics economist Sarah Tan said.

The Agriculture department in February declared a food security emergency on rice, which authorized the National Food Authority to release buffer stocks at subsidized prices.

In mid-February, the department also lowered the maximum suggested retail price (MSRP) of 5% broken imported rice to P52 per kilo from P55 previously. This was further slashed to P49 per kilo, starting March 1.

Apart from rice, pork prices are also seen to contribute to the lower inflation print.

“The key driver of the deceleration will come from the food category, especially in the prices of pork and rice,” Ms. Tan said.

She cited the Agriculture department’s move to cap the retail price of pork in March to “insulate the domestic market from rising prices due to the African swine fever that has disrupted supply chains.”

On March 10, the MSRP was set at P380 per kilo for liempo (pork belly) and at P350 per kilo for kasim (shoulder) and pigue (rear leg).

LOWER PUMP PRICES
Meanwhile, Nomura Global Markets Research analyst Euben Paracuelles noted the decline in energy prices, as well as stable core inflation in March.

In March, pump price adjustments stood at a net decrease of P1.50 a liter for gasoline, P1.10 a liter for diesel and P2.40 a liter for kerosene.

Aris D. Dacanay, an economist for ASEAN at HSBC Global Research, said retail fuel prices fell in March “on the back of softer global oil prices and a stronger peso.”

“Nonetheless, upward price pressures continue in the less-weighted goods and services. Electricity prices were hiked by more than 2%, while the prices of some food items, such as fish and eggplants, steeply rose,” Mr. Dacanay said.

Chinabank Research also said inflationary pressures “stemmed from higher costs of key food items such as meat, fish, and fruits, along with increases in electricity rates.”

In March, Manila Electric Co. (Meralco) raised the overall rate by P0.2639 per kilowatt-hour (kWh) to P12.2901 per kWh from P12.0262 per kWh in February,

Analysts also noted upward price pressures during the month.

Mr. Dacanay said risks to inflation are still tilted to the downside as rice prices still have room to ease.

“Though not our baseline scenario, it is still possible for inflation to breach the lower end target of the central bank’s 2-4% target band,” he added.

IMMINENT RATE CUT?
Ruben Carlo O. Asuncion, chief economist at Union Bank of the Philippines (UnionBank), said inflation is expected to ease further.

UnionBank’s nowcast models show that monthly inflation is seen settling below 2% until June.

“Without a doubt, the inflation forecasts with the key assumption that these would be close or in line with actual data, support a BSP rate cut of 25 basis points (bps) — 50 bps sooner than later,” Mr. Asuncion said.

“The fear of materially positive real interest rate setting taking root, posing deflationary threats to spending and growth prospects should prompt imminent BSP rate cuts,” he added.

The BSP’s baseline forecasts for inflation are at 3.5% for 2025 to 2026. Accounting for risks, inflation could reach 3.7% in 2026.

“Looking ahead, with inflation running near the lower end of the BSP’s 2-4% target range, we think the central bank could resume its easing cycle at its April 10 meeting,” Chinabank Research said.

“However, it will likely maintain its cautious messaging given persistent inflation risks and increasing global policy uncertainties,” it added.

Ms. Tan said inflation settling around the “low 2%” will support the case for a rate cut in April.

“Another month of subdued inflation gives BSP more than enough reason to finally pull the trigger on a rate cut in April,” Nicholas Antonio T. Mapa, chief economist at Metropolitan Bank & Trust Co., said.

Both Mr. Paracuelles and Mr. Ella also expect the BSP to deliver a 25-bp cut next month.

The Monetary Board had rescheduled its meeting to April 1 0 from April 3 previously.

“I’m sure that the Monetary Board will take this release into account for its next meeting in April and, if we’re right about it staying near the lower bound of the BSP’s target range, then members probably will have the all clear to go for another 25-bp rate cut,” Pantheon Macroeconomics Chief Emerging Asia Economist Miguel Chanco said.

“Of course, events could get in the way, as the planned announcement in Washington of potential worldwide reciprocal tariffs on April 2 could throw more uncertainty into the mix,” he added.

Mr. Taningco said the March CPI will be a crucial data point for the Monetary Board’s decision.

“Other factors to be considered for the upcoming meeting would include global tariffs, international oil prices, and the movement of the US dollar,” he added.

Markets are widely anticipating President Donald J. Trump’s announcement on reciprocal tariffs on April 2.

“The BSP will also have some time to consider the impact of the reciprocal tariffs by the US on the Philippine economy, which is slated to be rolled out from April 2,” Ms. Tan said.

“Further monetary policy easing in the country will help ease the pressure on households’ budgets, which will bring some relief to the domestic economy amid global uncertainties,” she added.

Reinielle Matt M. Erece, economist at Oikonomia Advisory and Research, Inc., also noted that the BSP could cut rates “to avoid faltering consumer demand and to boost economic growth.”

“I expect a 25-bp cut, which is a good compromise to boost market activity and to avoid extreme foreign exchange fluctuations,” he added.

On the other hand, Standard Chartered Bank economist and FX (foreign exchange) analyst Jonathan Koh Tien Wei said the central bank could opt to keep rates steady again amid persisting uncertainties.

“In our view, this uncertainty remains high even as USD-PHP is lower and we are still calling for the BSP to pause in April and only deliver the first rate cut in June,” he said.

“The risk to our view is, however, a 25-bp rate cut in April, given recent comments by BSP Governor [Eli M.] Remolona [Jr]. Key to watch will be USD-PHP movements given concerns over imported inflation and inflation expectations.”

Government debt service bill falls to P107B in Jan.

March 31, 2025 | 12:32 am

By Aubrey Rose A. Inosante, Reporter

THE NATIONAL GOVERNMENT’S (NG) debt service bill plunged in January as amortization on domestic debt declined, the Bureau of the Treasury (BTr) said.

Latest data from the BTr showed that the NG’s debt repayments fell by 32.97% to P106.51 billion in January from P158.9 billion in the same month a year ago.

Debt service refers to payments made by the NG on its domestic and foreign debt.

Amortization or payments on the loan principal plunged by 97.55% to P2.08 billion in January from P84.68 billion in the same month in 2024.

This was mainly due to the 97.92% drop in amortization on foreign debt to P1.76 billion in January from P84.54 billion a year earlier.

Domestic principal payments, on the other hand, more than doubled to P317 million in January from P138 million last year.

“The decrease in the debt service can be attributed to the lower external amortization paid by the government,” Oikonomia Advisory and Research, Inc. economist Reinielle Matt M. Erece said via Viber over the weekend.

Meanwhile, the bulk or 98% of January’s debt servicing went to interest payments.

Interest payments for the month surged by 40.71% to P104.44 billion from P74.22 billion in January 2024.

Broken down, interest paid on local debt went up by 48.06% year on year to P72.29 billion from P48.82 billion.

Domestic interest payments consisted of P63.67 billion in fixed-rate Treasury bonds, P3.58 billion in retail Treasury bonds (T-bonds), and P3.24 billion in Treasury bills (T-bills). Other payments stood at P1.8 billion.

Interest paid on external obligations jumped by 26.58% to P32.15 billion in January from P25.4 billion in the same month last year.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort attributed the lower debt service bill to seasonal factors.

“The sharp increase in interest payments may have to do with the still relatively higher interest rates since 2022 and the relatively weaker peso exchange rate in January 2025 that increased the peso equivalent of external debt interest payment as well,” Mr. Ricafort said.

The Bangko Sentral ng Pilipinas (BSP) kept the target reverse repurchase rate unchanged at 5.75% in February.

Meanwhile, Mr. Erece expects the debt service to go up in the next few months.

“I expect the debt service to grow in the following months, both as the result of the fiscal consolidation program that aims to lower the country’s outstanding debt, as well as the maturity of previously issued government securities, which are always oversubscribed,” he said.

Mr. Erece said the government is also planning to boost domestic borrowings.

“Moreover, the government plans to borrow more this year from the domestic debt market, i.e. T-bills and T-bonds, which can further increase the debt burden the NG may have to resolve,” he said.

The government is looking to borrow P735 billion from the domestic market in the second quarter, the BTr said on Thursday.

In 2025, the debt service program is set at P2.051 trillion, consisting of P1.203 trillion in principal payments and P848.031 billion in interest payments.

ERC rushes power supply deals for electric co-ops

March 31, 2025 | 12:31 am

Lineman-electric post — PHILIPPINE STAR/RYAN BALDEMOR

THE ENERGY Regulatory Commission (ERC) is ramping up the approvals of power supply agreements (PSAs) to minimize electric cooperatives’ (co-ops) exposure to the Wholesale Electricity Spot Market (WESM) as the summer season approaches.

“We are rushing all the approvals for power supply agreements for particularly our electric cooperatives that are exposed to WESM,” ERC Chairperson and Chief Executive Officer Monalisa C. Dimalanta told reporters.

“So that even if we’re entering the summer months… even if the WESM prices spike, their consumers can be insulated from the increase because they are charged under the power supply agreements,” she added.

The majority of the power supply deals lined up are for electric cooperatives in the Visayas, she said.

In June last year, the ERC chief said there were many distribution utilities, primarily electric cooperatives, that were nearly fully exposed to the WESM, pending bilateral contracts where the price is locked in.

WESM is where energy companies can purchase power when their long-term contracted power supply is insufficient for customer needs.

Last month, the Independent Electricity Market Operator of the Philippines (IEMOP), the operator of WESM, said that it is projecting an increase in spot market prices due to anticipated higher demand during the dry season.

Ms. Dimalanta said the Department of Energy (DoE) is coordinating with the power generators on the supply situation as it also approves the outage schedules.

“So, from our end, we coordinate with the DoE. The generators notify us if there is any expected maintenance,” she said.

The DoE recently urged Luzon power consumers to conserve energy as South Premiere Power Corp. (SPPC) and Excellent Energy Resources, Inc. (EERI) are scheduled to implement a scheduled shutdown of their gas-fired power plants from March 29 to 31.

“This temporary shutdown is necessary to facilitate mechanical activities at Linseed Field Corp.’s liquefied natural gas (LNG) terminal, a crucial step towards completing its first onshore LNG storage tank by the end of April this year,” the DoE said in a statement on Friday.

SPPC and EERI are jointly owned by Meralco PowerGen Corp. of Manila Electric Co., Therma NatGas Power, Inc. of Aboitiz Power Corp., and San Miguel Global Power Holdings Corp. of San Miguel Corp. These firms earlier this year sealed a $3.3-billion LNG deal to launch the country’s first LNG facility.

The DoE said the shutdown of the plants was strategically planned in coordination with the National Grid Corp. of the Philippines “to coincide with lower system demand, minimizing potential supply disruptions.”

No yellow or red alerts are expected during the period but a temporary increase in spot market prices could happen, according to the initial assessment of the IEMOP.

GREEN ENERGY AUCTION
Meanwhile, Ms. Dimalanta said that the ERC is drafting the proposed ceiling prices for the upcoming fourth round of green energy auction (GEA-4) this year.

“We are in the process of putting together the GEA-4 rates for public consultation so that we can set the GEAR (green energy auction reserve) price… We’ve had a lot of FGDs (focus group discussions) conducted already with the developers. And I think we are more aligned now in terms of the assumptions and expectations,” she said.

The ERC determines the GEAR prices, or the maximum price in peso per kilowatt-hour that will serve as the ceiling price in the auctions.

Under GEA-4, the DoE is set to auction off a total of 10,478 megawatts (MW) of renewable energy (RE) capacity, which includes some that will be paired with battery energy storage systems.

The government is planning to offer 3,940 MW of ground-mounted solar capacity, 48 MW of roof-mounted solar capacity, 3,000 MW of floating solar capacity, and 2,390 MW of onshore wind capacity.

Under the program’s setup, interested RE producers compete for incentivized fixed power rates by offering their lowest price for a certain capacity set by the ERC. — Sheldeen Joy Talavera

From military bases to economic hubs: A legacy of transformation

March 31, 2025 | 12:30 am

SF_Main-Clark-Freeport-Zone-OL — CLARK FREEPORT ZONE — BCDA.GOV.PH

It is easy to take for granted how much the country has changed over the last twenty years.

Take Bonifacio Global City (BGC), for instance. What was once the heart of a military complex has become one of the most vibrant and economically significant urban centers in the whole country. BGC, carved out of the former Fort Bonifacio military camp, stands today as proof of that transformation — a symbol of what the Philippines has achieved in a few short decades.

The Bases Conversion and Development Authority (BCDA) has been key to that unbridled success. As a government agency tasked with converting former military bases and properties into areas of urban development, BCDA has been instrumental in getting the country to where it is today.

BCDA is a development corporation vested with corporate powers under Republic Act (RA) 7227 (Bases Conversion and Development Act of 1992), signed into law by former President Corazon C. Aquino on March 13, 1992. The BCDA Charter was amended by RA 7917 in 1995, and further amended by RA 9400 in 2007.

BCDA operates at the intersection of public and private sector collaboration, leveraging public-private partnerships (PPPs) to deliver large-scale infrastructure such as expressways, airports, seaports, and real estate developments. It has been instrumental in the implementation of “Build, Build, Build,” the Philippine government’s flagship infrastructure program aimed at reducing congestion, generating employment, and improving cost efficiencies across the country.

Two of the agency’s most notable successes are the aforementioned BGC and the Newport City from the Villamor Air Base.

Covering 240 hectares in Taguig City, BGC is now a bustling financial and lifestyle district, home to corporate headquarters, embassies, luxury residences, and green public spaces. It serves as the base for some of the country’s largest conglomerates and a magnet for multinational companies, creative firms, and startups.

It also serves as a popular hub for foreign investors looking to do business in the country. US Fortune 500 companies like JP Morgan, Tesla, Wells Fargo, and international giants like Samsung all have established bases in the city. That many office spaces in BGC are also accredited by the Philippine Economic Zone Authority — providing incentives to businesses or investors who lease these spaces in the form of tax holidays, discounts and the like — also helps.

“Bonifacio Global City, more commonly referred to as BGC, is one of the most in demand office locations in Metro Manila. Premium leasable office spaces and commercial spaces in this business district are situated in technology-equipped establishments and workspaces capable of supporting top-grade amenities and office functions,” professional services firm KMC Savills noted on its website.

Meanwhile, directly across from Terminal 3 of Ninoy Aquino International Airport, Newport City occupies 25 hectares of what was once part of the military-run Villamor Air Base. Today, it thrives as a compact, high-value township.

Developed by Megaworld Corp., Newport City boasts attractions like Newport World Resorts, one of the country’s first integrated resorts, housing a casino, performing arts theater, hotel cluster, and upscale retail. Around this entertainment nucleus are residential towers, office buildings, and institutional facilities, creating a 24/7 environment for both travelers and residents.

The area’s strategic location has made it a natural hub for business process outsourcing (BPO) firms serving international clients as well, with the airport-adjacent lodging, being a convenient address for global hotel brands operating within or around its perimeter.

Notably, Newport City is also an important proponent of the Philippines’ sustainability agenda, with its Goal Zero Waste Management Program which targets a 90% reduction in landfill contributions. The initiative reflects a broader shift toward environmentally-conscious development, aligning with Metro Manila’s evolving urban priorities.

“Aiming for zero waste in Newport City is a very important achievement that we are eyeing to fulfill in the future. We hope that we all continue to strive to help create a healthier and more sustainable future for more Filipinos, something that we at Megaworld eyes to achieve through our MEGreen program,” Don Earl Caagbay, head of estate management group at Megaworld, had said during the initiative’s launch.

A blueprint for the future

Not to rest on the laurels of success, however, BCDA is today leading the charge in positioning the Clark area in Pampanga as a next-generation investment hub through transformative initiatives like New Clark City — a planned smart, green, and resilient metropolis — and the ongoing expansion of Clark International Airport.

Located across Pampanga and Tarlac, the Clark Freeport and Special Economic Zone (CFEZ) is currently positioning itself as a thriving hub for industries ranging from logistics and manufacturing to tourism and technology.

Clark’s transformation began in earnest in 1993, following the withdrawal of US forces and the designation of the area as a Special Economic Zone. Its strategic location, coupled with generous incentives and modern infrastructure such as the Clark International Airport, quickly made it an attractive destination for both local and foreign investors.

Fast-forward to the first half of 2024, Clark is already home to over 1,155 companies, including major US names such as Texas Instruments, FedEx, UPS, Hilton, and Marriott. Investments in the area have totaled up to $5.70 billion within the same period.

The upcoming Clark CBD is poised to be the largest and most modern central business district in the Philippines. Spanning 100 hectares, it will host commercial, financial, and lifestyle hubs designed to foster economic dynamism and promote a high quality of urban life — much like BGC before it.

As part of its broader mission to develop world-class economic zones and livable urban centers, BCDA is spearheading a portfolio of high-impact infrastructure projects within the area as well.

Positioned within the Clark Civil Aviation Complex, the planned 60-hectare Clark National Food Hub is envisioned as a modern, integrated food terminal, designed to strengthen the country’s agricultural exports, and address issues in food security by improving domestic food supply chains.

Then, there is the vision for the Philippines’ first smart, green, inclusive, and disaster-resilient city, New Clark City. It is projected to be home to over a million Filipinos, with about 60% of its land reserved for forests, green spaces, and public areas.

At 9,450 hectares, it aims to provide seamless connectivity via land, air (Clark International Airport), and sea (Subic Port), positioning it as a future-ready urban center. To support its smart city ambitions, BCDA is also developing future-proof digital infrastructure through an Open Access ICT model. This initiative will enable multiple data transmission providers to operate on shared, carrier-grade broadband infrastructure under equal terms, fostering healthy competition and ensuring affordable, high-quality digital connectivity.

Clark’s appeal also extends beyond its borders. The expansion of urban centers like Porac, as well as improved connectivity via ongoing infrastructure such as the NLEX-SLEX Connector Road and North-South Commuter Railway, has made the wider Pampanga region a focal point of Central Luzon’s economic activity. This makes Clark an integral part of the government’s efforts to decentralize economic growth from Metro Manila for a more financially inclusive country.

Taken together, BGC, Newport City, and Clark reflect the quiet but transformative legacy of the BCDA: converting the remnants of the past into the symbols of the future. — Bjorn Biel M. Beltran

Central developments driving the future of cities

March 31, 2025 | 12:28 am

SF_R1-New-Clark-City-OL — NEW CLARK CITY — BCDA.GOV.PH

In the modern day, cities have evolved into economic powerhouses that drive growth and transformation. These cities house numerous businesses, households, and institutions, which — together with well-rounded transit and spaces — are designed to provide individuals with the best of living.

As a builder of great cities, the Bases Conversion and Development Authority (BCDA) has put urban transformation into action as seen in Bonifacio Global City and Newport City in Metro Manila. Nonetheless, such transformation is much more seen in Clark, at the heart of Central Luzon.

Beyond the metro, BCDA has brought urban transformation in what was once Clark Air Base in Pampanga, turning it into a modern metropolis that has been named as one of the world’s “Cities of Legacy.”

While the Clark Freeport Zone is uniquely built as an economic zone, it previously played a significant role in military operations here in the Philippines. Established in 1920, it initially served as an air base for the US military, known as Fort Stotsenburg. Later, it was renamed Clark Field, in honor of Major Harold Clark, then Clark Air Base.

Today, known as the Clark Freeport and Special Economic Zone (CFEZ), it has transformed into a key economic hub, driving growth and development in the country. It hosts a diverse range of industries, including aviation, business, logistics, tourism, and many more. Managed by the Clark Development Corp. (CDC), the CFEZ continues to expand economic opportunities and activities in the region.

CFEZ has recently seen impressive growth. According to BCDA’s 2023 Annual Report, Clark recorded 3 million tourist arrivals, alongside 138,364 employees, 1,187 locators, and 8 completed infrastructure projects, among others.

The zone is also home to locators from various industries. These include batteries manufacturer StB Capital Partners (St Baker), which recently inaugurated the Philippines’ first manufacturing gigafactory for electronic vehicle batteries, StB Gigafactory, within the area; semiconductor assembly and test company SFA Semicon Philippines Corp.; hotel brands Hilton and Marriott; aircraft interiors and components supplier Jamco; boutique airline Sunlight Air; consumer goods company Luenthai; and logistics leaders FedEx and UPS.

The Clark Freeport Zone is currently envisioned to serve as a central hub for business, leisure, tourism, and more importantly, a home for the meetings, incentives, conventions, and exhibits (MICE) market.

Among the projects currently being undertaken towards this vision are the Clark International Airport Complex, Clark National Food Terminal, and the Clark Entertainment and Events Center. In addition, the zone will house an extension of the National Museum of the Philippines (NMP), the NMP Clark Museum, at the former Clark Air Base Hospital. Exhibiting the rich history of Clark, along with the natural and cultural heritage of the region, the museum will also showcase galleries for anthropology, archeology, and natural history.

Clark International Airport

Alongside economic zones, Clark is also home to the Clark International Airport (CRK), which aims to position Clark as a premier global aviation capital.

Located at the Clark Aviation Complex, CRK is leading the aviation industry by connecting both local and international arrivals. Currently, it hosts 17 airlines, 12 of which fly to international destinations, while five are flying to domestic locations. In 2024, CRK experienced significant passenger growth, welcoming 2.4 million passengers and 19,22 flights — an increase of 20% and 29%, respectively, compared to 2023.

As an aviation-centric business hub, the airport continues to expand to keep pace with aircraft movement, cater to more logistics operations, and enhance the overall airport operations and functions.

At present, the airport is focusing on the development of taxiways, aprons, landside access roads, and utilities. To further enhance convenience for travelers, CRK Direct Access Link is set to connect two expressways, the Subic-Clark-Tarlac Expressway and the North Luzon Expressway.

New Clark City

Adding to the modernization of Clark is the rise of New Clark City — a 9,450-hectare community in Bamban and Capas in Tarlac that will set the standard for a modern, smart, resilient, and sustainable metropolis.

New Clark City was first conceptualized in 2012, and development for the project began in 2016. Aiming to be “a place where nature, leisure and recreation, business and industry, culture and education converge,” New Clark City seeks to create a modern lifestyle for modern citizens with its world-class infrastructure, smart and green buildings, public transport, walkways, and green spaces.

Among the first notable locators were Filinvest Land Corp., which developed Filinvest New Clark City, and the Hann Development Corp., with Hann Reserve. Hann Reserve is a luxury mountain resort development that houses premier hotel brands and champions leisure, luxury living, and eco-tourism; while Filinvest New Clark is a township that combines nature, technology, and architecture within the city.

Other early key infrastructure developments within the city include the National Government Administrative Center and the New Clark City Athletics Stadium.

New Clark City is also home to many academic institutions, including the National Academy of Sport, the University of the Philippines-New Clark City, and the Virology and Vaccine Institute of the Philippines. The establishment of these institutions demonstrates New Clark’s commitment to academic excellence, which is essential for developing a skilled workforce necessary for economic growth.

New Clark City also boasts residential complexes that bring affordable housing to Filipinos. One notable initiative is the 34-hectare housing project, with key elements, such as parks, commercial developments, and convenient access to transport systems. In line with this vision, BCDA is partnering with a consortium of South Korean and local companies, namely Sta. Clara International Corp. (SCIC), Saekyung Realty Corp., and Korea Overseas Infrastructure and Urban Development Corp. (KIND), to develop a 6-hectare housing complex in New Clark City. The complex will feature 12 residential buildings, along with retail and commercial spaces, sports and leisure facilities, parks and other green spaces, and climate-resilient solutions. — Angela Kiara S. Brillantes

Advancing sustainable, future-ready communities

March 31, 2025 | 12:26 am

SF_R2---Affordable-housing-in-New-Clark-City-(Artist's-perspective)-OL — The affordable housing project in New Clark City aims to provide a stable living environment for employees working in the city. (Artist's perspective) — www.bcda.gov.ph

With nearly 70% of the global population expected to live in cities by 2050, the demand for housing, infrastructure, and public services continues to climb. Despite covering only 3% of the Earth’s land, cities consume up to 80% of the world’s energy and generate 75% of carbon emissions, according to the United Nations (UN).

The Bases Conversion and Development Authority (BCDA) is steering its projects toward sustainability by transforming former military bases into hubs built on sustainable principles.

The agency aims to create communities that balance economic growth with environmental responsibility, collaborating with other government agencies and private sector partners.

The blueprint of New Clark City (NCC) includes smart-city solutions to align with global green building standards. In turn, the developments create a city that can withstand natural disasters while promoting a high quality of life for its residents.

NCC also serves as a backup facility for government operations and a center for business and industry. Current projects are expected to attract more investors and tourists, further boosting economic activity in Central and Northern Luzon.

Building sustainable housing

BCDA is advancing its sustainability initiatives with a major affordable housing project in New Clark City. The development will provide 7,500 mixed-income housing units to provide a stable living environment for employees working in the city.

The project standardizes unit designs across all tenure types to eliminate visible differences between privately owned and subsidized homes. Government employees, private-sector workers, and families from Bamban and Capas, Tarlac, as well as Mabalacat and Angeles City, Pampanga, will have access to the housing community.

BCDA has also integrated sustainable design principles into the development to enhance climate resilience. The housing complex will feature infrastructure designed to withstand extreme weather conditions while maintaining energy efficiency and environmental sustainability.

This initiative is part of the Global Future Cities Programme, a technical assistance project spearheaded by the UK Foreign, Commonwealth, and Development Office. New Clark City has been selected as a pilot location for an urban expansion model that incorporates sustainability while integrating existing communities.

Prioritizing sustainable mobility

In October 2023, BCDA signed a memorandum of agreement with Japan-based Zenmov, Inc. and MC Metro Transport Operation, Inc. to introduce the Primary Rapid Transit (PRT) system. The initiative will serve routes across New Clark City, the Clark Freeport Zone, and the Clark Aviation Complex.

The system uses Zenmov’s Smart Mobility Operation Cloud, a platform that optimizes vehicle deployment based on real-time travel demand. This technology reduces the number of vehicles in operation while maintaining efficiency by tracking ridership patterns.

Zenmov and MC Metro will deploy low-carbon electric vehicles and bikes to cut reliance on fossil fuels. The project also includes smart poles, drones, and other infrastructure to collect and share real-time traffic data.

The initiative is part of the Clark Integrated Transport System, which aims to create a “15-minute city” where residents and workers can access essential services and workplaces within a short distance.

In addition, BCDA is seeking partners to conduct a feasibility study on Clark’s transport network. The study will assess various transportation modes within and beyond the Clark Freeport and Special Economic Zone, considering future travel demand and urban development.

Waste management, sustainable energy initiatives

Efforts to integrate sustainable waste management practices are a priority across BCDA’s developments to reduce waste and promote environmental responsibility.

One key initiative is the Goal Zero Waste Management Program, designed to cut residual waste by 90% annually. The program has been particularly effective in BCDA’s Newport City, a 25-hectare township in Pasay City.

The strategy identifies best practices in waste management, implements uniform standards across its locators, and establishes a monitoring and evaluation framework. Early implementation has already yielded significant results, reducing residual waste by 70% to 80%, primarily through enhanced segregation practices.

BCDA is also advancing plans to build a waste-to-energy facility in the Clark Special Economic Zone. The agency has designated a 40-hectare site for the facility, which will convert municipal and industrial waste into electricity and other by-products. The project is in its early stages, with BCDA seeking partners to conduct a feasibility study before construction begins.

Once operational, the plant is expected to process large amounts of solid waste, reducing landfill dependence and contributing to the region’s power supply. Officials have not disclosed a construction timeline but reaffirmed their commitment to advancing the project with industry partners.

Meanwhile, NCC could soon adopt a more energy-efficient cooling system as BCDA explores district cooling technology. In September 2023, the agency signed a memorandum of understanding with Qatar-based United District Energy International LLC and Japan-based Marubeni Corp. to assess the system’s feasibility.

District cooling uses centralized chillers, thermal energy storage tanks, and advanced control systems to regulate temperatures more efficiently than traditional air-conditioning units. The system can reduce energy consumption by up to 50% and lower greenhouse gas emissions by consolidating cooling production.

The system produces chilled water at a central plant and distributes it through underground pipes to multiple buildings, easing the burden on individual air-conditioning units and minimizing energy waste.

Marubeni Corp., BCDA’s power distribution partner in New Clark City, is expected to provide technical expertise for the study. If results confirm the system’s viability, BCDA may move toward large-scale adoption to promote energy efficiency.

Driving economic growth and development

Through its subsidiaries, BCDA is positioning Clark as a premier destination and a hub for business, tourism, and logistics while integrating sustainability into its major projects.

Clark Development Corp. (CDC) is leading efforts to expand the Clark Freeport Zone, focusing on the meetings, incentives, conventions, and exhibitions (MICE) market.

BCDA also aims to transform Clark International Airport (CRK) into a world-class gateway for logistics and passenger traffic. The first phase of the airport expansion focuses on airside development, including new taxiways, aprons, and landside access roads. These additions will enable CRK to accommodate more aircraft, reduce turnaround times, and improve operational efficiency.

The second phase of the expansion includes a second runway, increasing overall capacity and providing redundancy for flight operations. This upgrade will support business continuity and ensure uninterrupted logistics activities during maintenance or emergencies.

Within the Clark Civil Aviation Complex, a 60-hectare Clark National Food Hub is set to strengthen the country’s position in the global food trade. The facility will feature food storage warehouses, cold storage units, processing centers, and logistics infrastructure. These components will improve food preservation, reduce post-harvest losses, and support the export of Filipino agricultural products. The food hub is expected to stabilize food supply chains and improve market accessibility for local producers.

BCDA is also preparing to launch the Clark Central Business District (CBD), which is expected to become the country’s most modern business district. Spanning 100 hectares, the development will offer commercial spaces designed to accommodate various industries while promoting an active urban lifestyle. This project aims to ease congestion in Metro Manila and create a more balanced economic landscape in the region.

Meanwhile, the New Clark City Industrial Estates, a 9,450-hectare development in Central Luzon, is designed for industries such as pharmaceutical research, semiconductor and electronics manufacturing, and logistics. The industrial districts prioritize sustainability, integrating green infrastructure and disaster-resilient systems to establish a future-ready economic hub.

BCDA is dedicating 6,000 hectares, nearly 60% of the total area, to forests, public spaces, and parks to balance economic growth with environmental preservation. This allocation supports biodiversity, helps manage urban heat, and promotes a healthy living environment for its projected 1.2 million residents and 600,000 workers.

The industrial estates connect seamlessly to the North Luzon and Subic-Clark-Tarlac Expressways, Clark International Airport, and Subic’s deepwater port for efficient transport solutions for businesses setting up operations.

Legislative efforts

In August 2023, the House of Representatives passed an amendment to Republic Act No. 7227, the Bases Conversion and Development Act of 1992. If enacted, the amendment will allow the sale of up to 5% of land in economic zones managed by BCDA for residential use. The measure aims to address the country’s growing housing demand while fostering an inclusive community within Clark.

The proposal also seeks to extend BCDA’s corporate term by 50 years, ensuring continuity for ongoing and future development projects. This extension reinforces Clark’s long-term economic and environmental goals.

Clark’s expansion plans prioritize transit-oriented urban development. High-quality transit systems will improve connectivity and accessibility, supporting sustainable urban growth while reducing congestion and emissions.

In October 2023, Clark was named one of the world’s “Cities of Legacy” at the Asia Pacific Cities Summit and Mayors’ Forum in Brisbane, Australia. — Mhicole A. Moral

MG PHL eyes top-3 sales ranking by end of decade

March 31, 2025 | 12:06 am

VELO_PAGE1_image1 — There are high hopes for the MG G50 Plus people mover. — PHOTO BY KAP MACEDA AGUILA

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SAIC Motor PHL to expand offerings with this in mind

SAIC MOTOR PHILIPPINES (SMP), importer and distributor of MG vehicles in the country, isn’t coy at all about its aspirations. SMP President Felix Jiang declared recently that the company intends to crack the top-five sales ranking in three years, and get to third place by the end of the decade.

Historically, MG has cycled through three stewards in the country — Morris Garages Philippines before 2018; The Covenant Car Company, Inc. from 2018 to 2023; and SAIC Motor Philippines (controlled directly by parent company SAIC Motor Corp.) from July 2023 onward. From 65 units in 2018, MG posted healthy sales numbers in succeeding years: 4,745 (2019), 3,518 (2020), 5,209 (2021), 8,768 (2022), 5,679 (2023), and a high of 9,016 last year — with the newest figure enabling it to climb to ninth place on the 2024 Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and Truck Manufacturers Association (TMA) sales list.

Throughout our conversations over his time here, Mr. Jiang has always been consistent about what he considers the priority of SMP for the MG brand. “In the past several years, especially since SAIC Motor Philippines took over the distribution function, we’ve really focused on customer satisfaction and experience. We strengthened our supply chain in after-sales and also our customer service center, to make sure that every customer is satisfied with our product, with our service, and cost,” he maintained recently during a media drive to Tagaytay onboard MG G50 Plus units.

Launched here in January 2024, the multi-purpose vehicle (MPV) product is actually a rebadged Maxus (also a SAIC Motor-controlled brand). MG Philippines is giving the model the spotlight it deserves because, according to Mr. Jiang, “The MPV segment is really the biggest one in the Philippines, in the automotive industry. So we want to provide the best product in this segment to Filipino customers.”

While acknowledging that the segment is “very crowded already,” the executive is confident about the G50 Plus for its “very specific strengths and advantages,” noting its engine power, cabin space, driving experience, and comfort. “This product definitely can deliver more satisfaction to the customer and also drive more volume for the MG brand,” he stressed.

Replying to a question from “Velocity” on how the company expects to realize its lofty aspirations, Mr. Jiang continued, “The main driver for our success in the next three years, even five years, is really based on the portfolio of products we introduce. Currently, we are only participating in three segments out of the top five. We are only in the B-segment car, SUV, and MPV, and now in the other two segments we will launch new products very soon.”

He added, “This is the first thing we want to help us to improve our sales volume. The second one is making operational (changes) and working on customer satisfaction.” “Velocity” further prodded him on what’s on the horizon for MG in the Philippines — particularly with regard to its powertrain offering mix. “This is very good question,” Mr. Jiang replied. “Actually, for MG globally, we have a lineup of four powertrains. We have the ICE products with very competitive pricing. Also, we are now providing a very strong presence in hybrids. (As for plug-in electric vehicles) we were the first one to introduce the plug-in hybrid in China 12 years ago… And as far as EVs go, they’re already accepted globally for the MG brand. And this year, we will also introduce diesel powertrain (vehicles) in the Philippine market.”

Mr. Jiang said that the “very unique and very complex” local market will be best served by different powertrain solutions, and that MG will release products in two segments where it is still absent: the pickup and D-SUV categories.

Judging by its aggressiveness in filling in its portfolio to appeal to a wider array of buyers, MG Philippines is indeed keeping its eye on the prize. With an ever-growing cast of automotive brands though, the company definitely has its work cut out for it, so SMP will surely bank on the momentum MG has generated thus far.