Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 1911

Chinese ships gather near island disputed with Philippines, satellite images show

REUTERS

HONG KONG/MANILA – Satellite images obtained by Reuters on Thursday show a build-up of Chinese civilian vessels near contested Thitu Island, Manila’s key outpost in the South China Sea, but a senior Philippine navy officer said they are “not a cause for concern”.

One of the images taken by Maxar Technologies on Monday and reviewed by Reuters shows about 60 vessels, some within 2 nautical miles of Thitu, a strategically important island from which Manila monitors Chinese vessels and aircraft in the busy waterway.

Vice Admiral Alfonso Torres, chief of the Philippines’ Western Command, said it was common for “maritime militia” ships to gather in the area. Manila, the Pentagon and foreign diplomats say such vessels work with the Chinese coast guard and navy to strengthen Beijing’s presence in disputed waters.

Rear Admiral Roy Trinidad, Philippines Navy spokesman for the South China Sea, also said maritime militia ships were regularly in the area, adding that Manila was aware of the vessels, which he called an “illegal presence”, but there was no need for alarm.

“It’s not a cause for concern,” Trinidad said. “We don’t have to read every action and react to that… What is important for us is to maintain our posture.”

Online ship trackers show that many of the vessels in the satellite photos are Chinese-registered fishing craft.

The Chinese defense ministry did not immediately respond to a Reuters request for comment. China has never confirmed it has a militia of civilian vessels.

The island, which the Philippines calls Pag-Asa, is Manila’s biggest and most strategically important in the disputed South China Sea, which is largely claimed by China and through which billions of dollars worth of goods pass each year. A 2016 ruling by the Permanent Court of Arbitration in the Hague found that Beijing’s expansive claims had no basis under international law.

The build-up comes after months of clashes and rammings between Chinese coast guard and fishing vessels and Philippines ships, particularly at the Scarborough and Second Thomas Shoals.

Thitu is close to a Chinese naval base and runway on Subi reef, which has sometimes served as a port for large numbers of Chinese maritime militia vessels, Trinidad said.

“When you go in there (to Subi), when you go out, you will pass through the territorial sea of Pag-Asa,” he said.

Regional diplomats and security analysts are watching developments closely, with some noting the Chinese vessels had their transponders on this week, allowing them to be tracked.

Singapore-based security scholar Collin Koh said Beijing could be testing Manila’s reactions at a moment of domestic political tension in the Philippines.

Embattled Philippine Vice President Sara Duterte on Wednesday accused President Ferdinand Marcos Jr of seeking to remove her from office, after the national police filed a formal complaint accusing her of assault and coercion.

“This needs to be watched in the days ahead,” said Koh, of Singapore’s S. Rajaratnam School of International Studies.

If the militia presence continues, Koh said, it could be that China is hoping to delay Philippine construction work on the island.

A new aircraft hangar is reportedly due for completion in the next few weeks, the latest in a several moves to buttress the Philippines’ presence on Thitu and improve monitoring capabilities. — Reuters

PSE sets P120-billion capital target

Increased stock market activity is seen in 2025 as financial conditions become relatively looser. — COSTFOTO/NURPHOTO VIA REUTERS CONNECT

By Revin Mikhael D. Ochave, Reporter

THE Philippine Stock Exchange (PSE) is aiming to raise P120 billion in capital next year as it anticipates increased market activity.

“This year, we have P79 billion in capital raising. Next year, I think we can do about P120 billion in capital raising, about a 50% increase. These include follow-on offering (FOO), stock rights offering, and private placements,” PSE President Ramon S. Monzon told reporters on the sidelines of a forum in Makati City on Thursday.

Last month, Mr. Monzon said the PSE expects to have six initial public offerings (IPO) and to raise up to P150 billion in capital for 2025.

The PSE only had three IPOs this year, missing the market’s operator target of six. These were mining company OceanaGold (Philippines), Inc. as well as renewable energy companies Citicore Renewable Energy Corp., and NexGen Energy Corp.

The market operator also fell short of its goal to raise P175 billion in capital this year.

“We only had three IPOs — small ones. But we had big preferred FOOs,” Mr. Monzon said.

The PSE was supposed to have its fourth IPO this year with the public listing of Cebu-based fuel retailer Topline Business Development Corp. (Topline).

However, Topline announced on Nov. 18 that it opted to move its offer period to the first quarter of 2025 to accommodate institutional investors.

Mr. Monzon said there is some uncertainty next year as US President-elect Donald J. Trump assumes office on Jan. 20. Mr. Trump had vowed to implement higher tariffs on imports, conduct mass deportation of illegal immigrants and focus on domestic manufacturing.

“There is uncertainty. We don’t know what’s going to happen. (Mr. Trump plans to) deport the illegal immigrants. I think there are a few Filipino immigrants. If he does a massive importation, then our (overseas) remittances will drop. It’s a very important stabilizing factor for an economy,” he said.

“He’s also trying to penalize companies that go outside. Our information technology and business process management industry (IT-BPM) employs about 1.9 million employees. Those are the uncertainties that we don’t know what will happen,” he added.

The Philippines is one of US firms’ top destinations for outsourcing services.

An earlier report by the Center for Strategic and International Studies (CSIS) showed 395 US firms have invested $22.4 billion in the Philippines between 2003 and 2021, of which $7.8 billion or 35% went to the IT-BPM sector.

China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message that the PSE’s capital-raising target for 2025 is attainable.

“The PSE’s target is doable assuming market conditions are bullish for equity fundraising next year. For example, if SM Prime Holdings, Inc.’s real estate investment trust (REIT) and GCash will do their IPOs in the Philippines next year, then those two deals alone could easily raise P120 billion,” he said.

“At this point, the outlook for our stock market is very fluid given the anticipated challenges and opportunities from Trump 2.0, so the target may still change,” he added.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message that lower interest rates could help boost stock market activity.

“It is achievable amid better economic and market conditions, in view of possible further Federal Reserve rate cuts and local policy rate cuts that would reduce borrowing costs, increase demand for loans that would increase investments, create more jobs and more economic activities that would lead to more earnings of listed companies,” Mr. Ricafort said.

“If local stock market prices go up further in 2025, then that would make it more attractive for more share sales at the highest price possible, especially if those that deferred share sales would eventually push through,” he added.

Sy-led SM Prime’s REIT, Razon-led Prime Infrastructure Capital, Inc., Maynilad Water Services, Inc. and electronic wallet GCash are some of the big names said to be planning IPOs but with no definite timeline.

On Thursday, the bellwether PSE index dropped by 0.95% or 64.05 points to 6,638.54, while the broader all shares index retreated by 0.66% or 25.14 points to 3,734.94.

ACQUISITION
Meanwhile, Mr. Monzon said the PSE is hoping to finalize a move to acquire the Philippine Dealing System Holdings Corp. (PDS Group) before yearend.

“We’re still hoping. It’s just November. We still have a month to go. It is still a work in progress,” he said.

The PSE is looking to purchase up to 100% of the PDS, the operator of the Philippine Dealing & Exchange Corp., which caters to the fixed-income market by providing trading infrastructure.

Currently, the PSE has a 20.98% stake of the issued and outstanding capital stock of the PDS Group, while the Bankers Association of the Philippines members and institutions have a 21% stake.

Debt-to-GDP ratio unlikely to return to pre-pandemic level

REUTERS

THE PHILIPPINES’ debt-to-gross domestic product (GDP) ratio is unlikely to return to the pre-pandemic level as debt remains elevated in the medium term, the Bureau of the Treasury (BTr) said.

But the National Government’s (NG) medium-term fiscal consolidation plan will make sure it can continue to invest in its economic priorities while keeping debt obligations sustainable, the BTr added.

“It should also be said that an aggressive return to the pre-pandemic debt-to-GDP ratio of 39.6% is technically and politically infeasible,” BTr said in its annual report released on Nov. 27.

The Treasury said this would require a “more dramatic” fiscal adjustment where the government should have consistent budgetary surpluses.

But this approach would deprive the country of the needed public investments, it added.

The NG’s debt-to-GDP ratio stood at 61.3% at the end of September, higher than the year-earlier 60.2%.

This is still above the 60% threshold deemed by multilateral lenders as manageable for developing economies.

The government seeks to bring this down to 60.6% by the end of 2024, and below 60% by 2028.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the government incurs “relatively wider budget deficits” as it requires additional government borrowings that increase the outstanding debt.

“Faster GDP (gross domestic product) growth would also been an essential element to bring down the ratio below the 60% international threshold,” Mr. Ricafort said.

Mr. Ricafort said new tax and fiscal reform measures are needed to further narrow the budget deficit.

As of end-September, the deficit-to-GDP ratio stood at 5.14%, well below the 5.6% target for 2024.

“While debt-to-GDP will remain elevated compared with historical levels, the strong and sustained economic growth of 5.6%, coupled with steady reduction in budgetary deficits and a favorable negative real effective interest rate of 1.3% on the NG’s issuances will drive support for debt sustainability,” the Treasury said.

Foundation for Economic Freedom President Calixto V. Chikiamco said the government is “unlikely” to reduce the debt-to-GDP ratio since “the government has a spending plan to hit the GDP targets.”

“There are more uncertainties presently with Trump in office and launching a global trade war. Therefore, there are more uncertainties in the government reaching its debt-to-GDP ratio. However, if inflation is kept under control, more likely than not, the government can reach its GDP targets,” Mr. Chikiamco said.

Economic managers are targeting 6-7% GDP growth this year and 6.5-7.5% growth in 2025. — A.R.A.Inosante

Peso slide to 60 is possible — Remolona

The peso dropped this month as Donald Trump’s election victory sent the dollar higher, with investors worrying over potential tariffs and the impact on trade. — BLOOMBERG

PHILIPPINE CENTRAL BANK Governor Eli M. Remolona, Jr. isn’t ruling out the possibility of the peso hitting a fresh record low of 60 to a dollar, though monetary authorities will ensure that a fall to such a level won’t be abrupt.

“It could,” Mr. Remolona said late on Wednesday when asked about the prospects of the local currency hitting P60 per dollar. “But we want it to be orderly and not sudden. We don’t want a one-sided market.”

The exchange rate hitting a round number has a “psychological effect” and could spur a continuous move, Mr. Remolona said in an interview following an event in Manila. That also suggests the movement isn’t justified by fundamentals, he added.

The peso dropped this month as Donald J. Trump’s election victory sent the dollar higher, with investors worrying over potential tariffs and the impact on trade. The peso’s decline has been capped at the record-low P59 per dollar, a level that has acted as a key threshold in the past two years, as traders assess Bangko Sentral ng Pilipinas’ tolerance for a weak currency.

“The central bank does not want expectations of peso weakness to be self-fulfilling at these key levels, and especially during periods of low FX (foreign exchange) liquidity,” said Michael Wan, a currency strategist at MUFG Bank in Singapore. “But I don’t ultimately think any specific levels are sacrosanct by any means, including the 60 level.”

Mr. Remolona said he’s comfortable with the peso’s current level, adding the Bangko Sentral ng Pilipinas has intervened in the foreign exchange market in “small amounts” recently. The peso gained 0.1% to P58.64 on Thursday.

Mr. Remolona on Wednesday said the currency’s day-to-day movement “doesn’t figure into monetary policy.” The exchange rate could be considered if the swings are significant and happening over a few months, he said.

The BSP governor had said that policy makers will consider both a rate cut and a pause during their next meeting, with the central bank seeing 100 basis points (bps) in cumulative cuts next year.

Philippine monetary authorities are set to hold their next rate-setting meeting on Dec. 19. They reduced the benchmark interest rate last month by 25 bps for the second time this year to 6%. — Bloomberg

‘Business as usual’ for Cabinet amid political tensions, says Balisacan

The Philippine government is focused on upgrading infrastructure, boosting the country’s resiliency in the face of climate change, and diversifying its economy, the National Economic and Development Authority said. — PHILIPPINE STAR/MIGUEL DE GUZMAN

By Kyle Aristophere T. Atienza, Reporter

THE NATIONAL Economic and Development Authority (NEDA) on Thursday said rising political tensions in the Philippines will have minimal, if any, impact on the economy.

The Philippine government is focused on upgrading infrastructure, boosting the country’s resiliency in the face of climate change, and diversifying its economy amid geopolitical risks, NEDA added.

It’s “business as usual,” NEDA Secretary Arsenio M. Balisacan said at a Palace briefing after attending a Cabinet meeting that largely focused on the prospects for the 2025 national budget.

He said the business community is more concerned with the sustainability of the country’s economic agenda.

“As also seen in recent economic history, for so long the government stays in course within its development economic priorities and programs, this will continue to maintain their confidence in the economy,” he added.

“So, I think the impact of [political] noises such as what we have now, if there’s anything, will be quite minimal and the last 12 or so years bear on that.”

Due largely to the impacts of weather disturbances and slower government spending, the Philippine economy grew by 5.2% in the third quarter — the weakest in five quarters.

President Ferdinand R. Marcos, Jr. on Monday vowed to fight back and never to allow the country to be dragged into gutter-level politics. This after his erstwhile ally and Vice-President Sara Z. Duterte-Carpio claimed she hired an assassin to kill the President, his wife and  House Speaker Ferdinand Martin G. Romualdez.

Ms. Duterte on Wednesday said her broken ties with the President’s camp had reached a “point of no return.”

The country’s second-highest official has been grumbling amid congressional probes into confidential funds at the Office of the Vice-President and the Department of Education.

Mr. Balisacan claimed that since the late 1990s, the Philippine economy “continued to progress despite the political noises.”

“In this administration, we are so focused on ensuring that the goals and targets and strategies that we have outlined in the Philippine Development Plan will be achieved,” he said.

Mr. Balisacan said it is important for the public to know that economic momentum is sustained.

“We can do ‘business as usual’ amid conflicts between former political allies. Indeed, it may not translate to macroeconomic disturbances, but it would affect our image among global partners which could be potential sources of investment,” said Emy Ruth Gianan, who teaches economics at the Polytechnic University of the Philippines.

“More importantly, it adversely affects the morale of ordinary Filipinos. They would eventually choose to leave the country given petty political fights,” she said in a Facebook Messenger chat.

Leonardo A. Lanzona, who teaches economics at the Ateneo de Manila University, said amid all the dramas, the major issue remains the same — “that the root cause was the misuse of public funds, otherwise known as confidential funds.”

“Sure, the government is focused on the economy. But the key issue is trust,” he said via Messenger chat.

“The loss of P125 million of confidential money in 11 days should be already a cause of concern for the economic managers, and its consequences cannot be offset by future committed work especially if no one is being held accountable for it.”

Terry L. Ridon, a public investment analyst and convenor of InfraWatchPH, said rising political tensions can create an “atmosphere of instability” from the point of view of the international community.

“This may compel foreign investors to reconsider the Philippines as its next investment destination and rechannel their funds towards economies with a more stable political status quo,” he added.

“Nonetheless, Congress and the President should resolve this political instability in the soonest time, whether through impeachment proceedings or through legal proceedings being initiated by various government agencies.”

‘MORE STABLE’
Mr. Balisacan said the economic meeting with Mr. Marcos earlier in the day largely focused on the 2025 national budget and “the need to prioritize the funding of the high-priority projects.”

Mr. Romualdez and Senate President Francis Joseph “Chiz” G. Escudero were present at the meeting.

Mr. Balisacan said the Congress vowed to cooperate with the Executive branch in ensuring funding for its flagship projects for next year.

Asked whether this would mean new taxes, the NEDA chief said: “It’s the same. We haven’t changed the priorities with respect to new measures.”

He said the Legislative-Executive Development Advisory Council will convene in two weeks.

Mr. Balisacan said the President has instructed the economic team to “tighten our practices” in releasing rules and guidelines for infrastructure projects to ensure that they can withstand the floods and typhoons.

Aside from infrastructure, the economic team is also focused on the need to “diversify the economy and to strengthen its fundamentals,” the NEDA chief said, citing “threats of high tariffs and the possible responses of other countries to such tariffs.”

US President-elect Donald J. Trump seeks 60% or higher tariffs on all Chinese goods and a 10% universal tariff.

“I think that over the years, and I’m quite confident, that our economy now is more stable than any other time in the past, that it’s more diversified than actually in the past but we need to continue and improve working and developing other pillars of growth,” Mr. Balisacan said.

Also on Thursday, Mr. Balisacan said NEDA was set to submit its periodic review of the reduced tariff rate for rice on Friday.

“It basically presents the picture of the rice market at this time, providing an analysis of where we are, particularly with respect to production, to supply, to demand, to prices and what to expect in the coming four months and beyond,” he said.

PHL banking industry deposits hit P19.6 trillion

BW FILE PHOTO

By Luisa Maria Jacinta C. Jocson, Reporter

THE PHILIPPINE BANKING system’s total deposits hit P19.58 trillion as of end-September, data from the Bangko Sentral ng Pilipinas (BSP) showed.

The banking sector’s total deposits rose by 7% from P18.29 trillion recorded in the same period a year ago.

The number of deposit accounts jumped by 17.5% to 138.33 million as of end-September from 117.75 million a year prior.

Likewise, the number of depositors stood at 124.38 million, up by 14.8% from 108.34 million in the previous year.

Big banks’ deposits, which accounted for 93.8% of the total, rose by 6.9% year on year to P18.36 trillion at end-September from P17.18 trillion.

BSP data showed universal and commercial banks had a total of 91.39 million accounts and 83.72 million depositors.

Meanwhile, deposits of thrift banks increased by 5.5% to P804.12 billion from P761.96 billion a year ago. Thrift bank deposit accounts stood at 7.16 million, with 6.9 million depositors.

Rural and cooperative banks recorded deposits of P327.26 billion, rising by 15.5% from P283.23 billion. These banks had a total of 23.53 million deposit accounts and 23.2 million depositors.

Data from the central bank showed digital banks received P87.39 billion in total deposits at end-September, up by 34% from P65.18 billion a year ago.

The number of deposit accounts from digital banks hit 16.25 million with 10.55 million depositors.

By type, savings deposits comprised 43.4% of the banking sector’s total deposits, equivalent to P8.5 trillion.

This was followed by regular savings (P6.92 trillion), time certificate of deposits (P5.67 trillion), demand deposits (P5.38 trillion), kiddie and teen savings (P53.99 billion), and basic deposits (P28.52 billion).

“The increase in online business transactions led to the faster growth in online banking accounts and e-wallets, all of which led to greater financial inclusion and also led to the corresponding increase in deposit accounts, especially through digital banking channels,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

Earlier data from the BSP showed the share of online payments in the total volume of monthly retail transactions rose to 52.8% last year.

Mr. Ricafort also noted the boom in digital transactions and transfers through InstaPay and PESONet as an alternative to bank checks.

“This (necessitates) the creation of more deposit accounts to facilitate more e-commerce and digital banking transactions,” he added.

Separate data from the BSP showed the value of transactions done through the automated clearing houses InstaPay and PESONet jumped by 34.6% to P13.99 trillion as of October.

“On top of the rapid growth in digital business transactions in the local economy, the faster growth in deposits is also consistent with the much faster growth in bank loans,” he added.

Bank lending jumped by 11% year on year to P12.4 trillion in September, its fastest growth since the 13.7% posted in December 2022.

The BSP earlier attributed the growth in deposits to “strong depositor confidence, particularly from resident individuals and private corporations.”

This allows banks to have a reliable funding source that “shields the banking system from significant funding withdrawals arising from global financial market fluctuations and reduces banks’ exchange rate risk and vulnerability,” it said in its latest report on the Philippine financial system.

From gastronomic delights to unmatched experiences: SM Supermalls is your holiday haven

The holidays are a time of joy, indulgence and togetherness, and SM Supermalls is raising the bar with a festive lineup like no other. With a curated selection of world-class dining options, exclusive holiday menus and immersive culinary experiences, SM Supermalls invites you to celebrate the most wonderful time of the year in style.

SM Aura: Dining Elevated

For those with a refined palate and a passion for culinary artistry, SM Aura stands as the pinnacle of elevated dining this holiday season. With a trio of remarkable new concepts, this gastronomic haven promises to enchant discerning food enthusiasts and transform holiday celebrations into unforgettable feasts:

• Inari Sukiyaki: Experience Manila’s first sukiyaki bar, where every seat offers front-row access to a culinary spectacle. Watch skilled chefs prepare sukiyaki dishes featuring premium beef cuts like OMI Wagyu A5 and USDA Angus Ribeye, paired with vibrant vegetables and richly flavored broth. This is festive dining at its finest, blending tradition with artistry.

• Kodawari: This progressive casual-dining restaurant brings a nontraditional twist to Japanese-inspired cuisine. Famous for its gyudon, Kodawari started as a cult favorite during the pandemic and now stands out as a dining hotspot. Each dish reflects their dedication to quality, nostalgia and innovation, making it a perfect choice for your holiday gatherings.

• Burger & Lobster: Opening in December 2024, this London-based favorite introduces Manila to its celebrated menu of gourmet burgers and wild-caught lobsters. Whether it’s their juicy Original Burger or the indulgent Lobster Roll, every bite is a testament to simplicity and excellence.

Exceptional Taste and Sweet Pleasures at SM Podium

Next, step into a world of exceptional dining at SM Podium, where every meal is an experience to savor. Known for its impressive ambiance and diverse culinary offerings, SM Podium has become a haven for food enthusiasts seeking something special this holiday season. From expertly crafted dishes to indulgent sweet treats, each restaurant promises to elevate your festive celebrations:

• Wolfgang’s Steakhouse: This iconic dining destination sets the standard for luxury with its USDA Prime Dry-Aged Steaks, prepared to perfection. Whether you’re hosting a grand family celebration or enjoying an intimate holiday dinner, Wolfgang’s combines exceptional flavors with an inviting atmosphere.

• Nikkei: A feast for the senses, Nikkei fuses the best of Japanese and Peruvian cuisines into one extraordinary menu. From fresh Ceviches to artfully prepared Sushi Rolls, every dish is an adventure in taste, perfect for adding a touch of festive flair to your gatherings.

• Burnt Bean: Situated on Level 5, Burnt Bean is where innovation meets tradition. Known for its grilled specialties like Steak and Frites and its signature Pavé, this versatile restaurant is ideal for anything from leisurely brunches to evening cocktails with friends.

• Venchi Italian Chocolate: Just in time for the holidays, Venchi opens its doors to offer an irresistible array of Chocolates and Gelato, crafted with 145 years of Italian artistry. Indulge in their luxurious treats as you savor the warmth and sweetness of the season.

• Lusso: Coming soon to SM Podium, Lusso redefines comfort food with its decadent creations, such as the signature Foie Gras Burger and Truffle Pasta. Its chic yet welcoming ambiance provides the perfect backdrop for festive celebrations, combining elegance with heartwarming flavors.

Experience Kyoto in the Philippines at SM Mall of Asia

No need to travel far to enjoy authentic Kyoto-style gyukatsu! Visit Ganso Gyukatsu and Gyukatsu Kyoto Katsugyu at SM Mall of Asia, the first of its kind in the Philippines, and savor crispy, tender gyukatsu paired with traditional sauces for an unforgettable Japanese experience right at home.

SM Supermalls: Where Memories Are Made

This festive season, SM Supermalls is more than just a shopping destination — it’s a hub of world-class dining and unforgettable experiences. Whether you’re savoring Kyoto-style sukiyaki at Inari, enjoying the nostalgic flavors of Kodawari’s gyudon or indulging in a decadent Lobster Roll from Burger & Lobster, SM Supermalls is the ultimate holiday destination.

Celebrate the season with SM Supermalls, where culinary innovation meets festive tradition, and every meal becomes a treasured memory.

 

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

Join us on Viber at https://bit.ly/3hv6bLA to get more updates and subscribe to BusinessWorld’s titles and get exclusive content through www.bworld-x.com.

SMC taps Megawide for Boracay airport terminal

PHILIPPINE STAR/WALTER BOLLOZOS

San Miguel Corp. (SMC) has tapped the Saavedra-led Megawide Construction Corp. to design and construct a passenger terminal building at Godofredo P. Ramos Airport in Caticlan.

In a regulatory filing on Thursday, Megawide announced that it had secured the contract for the terminal building project at the Boracay airport, which is operated by Trans Aire Development Holdings Corp., a unit of SMC Infrastructure.

“This will be another exciting opportunity for Megawide — to be able to work with one of the country’s largest and oldest conglomerates, SMC, and help realize its vision of a world-class facility at the Caticlan airport,” Megawide Chairman and Chief Executive Officer (CEO) Edgar B. Saavedra told the stock exchange.

SMC, through its infrastructure unit, oversees the modernization of Godofredo P. Ramos Airport, also known as the Boracay airport.

“Our search for a partner-contractor who shares our vision of modernizing airports in the country has concluded with our partnership with Megawide,” said SMC Chairman and CEO Ramon S. Ang.

Megawide said the groundbreaking for the new terminal is scheduled for December.

Mr. Ang said previously that the construction of the new passenger terminal building might take up to three years to complete.

San Miguel plans to build a passenger terminal building with a capacity of seven million, with eight passenger boarding bridges.

“We believe that Megawide’s track record of building key infrastructure through efficient and sustainable practices will help us deliver a world-class facility within our committed deadline,” Mr. Ang said.

Megawide, together with its partner GMR Airports International BV, developed Mactan-Cebu International Airport (MCIA).

Megawide has since divested its stake in MCIA, allowing Aboitiz InfraCapital, Inc. to take full control of the Mactan-Cebu airport.

Further, Megawide is also one of the developers of the passenger terminal building of Clark International Airport, which is now operated and managed by Luzon International Premiere Airport Development (LIPAD) Corp.

San Miguel is also undertaking the development of the P740-billion Bulacan International Airport or the New Manila International Airport (NMIA), which it expects to start development work next year.

The company also leads the New NAIA Infra Corp., which took over the operations and maintenance of the country’s main gateway in September this year. — Ashley Erika O. Jose

How inDrive is building presence in Philippines

INDRIVE Marketing Director for Asia-Pacific Natalia Makarenko

By Ashley Erika O. Jose, Reporter

INDRIVE is betting big on the Philippines as it plans to expand its presence in the country to challenge the local ride-hailing market, according to its Marketing Director for Asia-Pacific Natalia Makarenko.

“InDrive just relaunched months ago. The business is getting great traction so far. We now operate in six cities in the Philippines. For 2025, we plan to expand to even more cities,” Ms. Makarenko said in an interview with BusinessWorld.

Prior to joining inDrive in 2022, Ms. Makarenko led strategy consultation for customer and marketing at Deloitte CIS and Jakala.

She also contributed to the digitalization of marketing for pharmaceutical and biomedical company Bayer CIS.

The mobility and urban services platform inDrive, operated by RL Soft Corp., relaunched its services in the Philippines in June. It currently operates in Metro Manila, Bacolod, Baguio, Iloilo, Butuan, and Cagayan de Oro.

So far, inDrive is seeing significant growth in both its passenger and driver base, she said, adding that its active users continue to expand as more Filipinos seek mobility services in the metro.

“Launching the business is always interesting because there are many unknowns in terms of marketing and business development. You have to invent new strategies to promote the business,” she said, adding that the company considers the Philippines one of its most important markets.

inDrive said that with the country’s long-standing battle with traffic congestion, it is crucial to understand public transportation needs while assessing road capacity to create effective and sustainable solutions for Filipinos.

The company recognizes the role of ride-hailing apps in bridging transportation gaps, especially as the Philippines offers a robust market for transport network vehicle services (TNVS), with strong demand not only in the capital but also in other key cities.

“It looks like the Philippines is a market where we can grow and achieve our goals because there are many underrepresented communities where we can make an impact. That’s what drives us even more than business results,” Ms. Makarenko said.

In Southeast Asia, inDrive operated in Indonesia, Malaysia, and Thailand before expanding its presence in the Philippines. To date, the company operates in 750 cities globally.

Currently, inDrive only offers car ride services in the Philippines but plans to expand its services soon, Ms. Makarenko said.

“For the Philippines, we are now focusing on car rides only, mainly because of the regulations and legislation we have to abide by. That is our priority,” Ms. Makarenko said.

For its expansion, the company is considering adding two-wheel services, freight delivery, and courier services in the Philippines.

“We are considering many options, including two-wheelers, freight delivery, intercity rides, and couriers. However, it will depend on the regulations,” she noted.

“I think in five years, inDrive will have a strong chance to dominate the ride-hailing industry globally,” she said.

For the year, the company aims to double its driver base from the current 8,000 to at least 16,000 by the end of 2024 in the Philippines.

Dacon completes tender offer of Cemex Philippines shares

PHILSTAR FILE PHOTO

THE CONSUNJI family’s private holding company Dacon Corp. has completed its tender offer of Cemex Holdings Philippines, Inc. (CHP) shares as part of DMCI Holdings, Inc.’s acquisition of the cement producer.

CHP received a certification from the tender offer conducted by Dacon from Oct. 23 to Nov. 21, which saw 12.88 million tendered shares, the cement producer said in a regulatory filing on Thursday.

With this, CHP’s public float dropped to 10.005% from the previous 10.1%, which is still compliant with the amended minimum public ownership requirement of 10%.

In April, DMCI, Dacon, and Semirara Mining and Power Corp. announced the acquisition of CHP for $305.6 million via a share purchase agreement.

Under the planned acquisition, Dacon has been appointed as the bidder for the mandatory tender offer to acquire the remaining 10.1% of CHP’s total issued and outstanding capital stock.

DMCI bought the entire share of Cemex Asia B.V. in Cemex Asian South East Corp. (CASEC), the majority owner of CHP with an 89.96% equity interest. DMCI will acquire a 56.75% stake in CASEC, Dacon will secure 32.12%, and SMPC will purchase the remaining 11.13%.

On Thursday, CHP shares rose by 1.22% or two centavos to P1.66 per share, while DMCI shares were unchanged at P10.52 apiece. — Revin Mikhael D. Ochave

Contemporary art center to rise in Circuit Makati

THE SCALE model unveiled at the launch, including the Pasig River in front and Ayala Malls Circuit behind the center

AFTER delays due to COVID-19 pandemic restrictions, the Ayala Group, through its social development arm, the Ayala Foundation, is pushing through with the construction of a world-class contemporary art center in Circuit Makati.

“Our hope is for this project to contribute to the growth of creative industries and fuel economic opportunities within the community,” said Antonio G. Lambino II, president of the Ayala Foundation, at a press launch on Nov. 26.

The center for contemporary art is scheduled to open by 2027.

Mr. Lambino highlighted the Ayala Museum, the Filipinas Heritage Library, the Samsung Performing Arts Theater, and the Power Mac Center as examples of how Ayala has supported Filipino visual and performing arts.

“Through these anchor institutions, we aim to continue nurturing a sense of imagination, national pride, and stewardship… which brings us to the next chapter in our journey,” he said.

The future art center, shaped like a palm frond, is designed by Thai architect Kulapat Yantrasast and his firm WHY Architecture, which previously did museum renovation projects like the Rockefeller Wing of The Metropolitan Museum of Art in New York and the new wing of The Louvre in Paris.

Their local collaborators are Lor Calma & Partners, led by architect Ed Calma, whose portfolio includes the Mind Museum in Bonifacio Global City and the Museum of Contemporary Art at the College of St. Benilde School of Design and Art.

A total of 2,200 square meters’ worth of gallery space will be available at the center. There will also be an outdoor area filled with trees and open spaces by the river, in alignment with the government’s Pasig River Esplanade.

“Our vision is for the center to be a pioneering environmentally conscious building. We aim to secure top sustainability certifications — including LEED (Leadership in Energy and Environmental Design), WELL (WELL Building Standard), and EDGE (Excellence in Design for Greater Efficiencies) — to meet the highest global standards for green architecture,” said Mr. Lambino.

The site, where Circuit Makati’s concert grounds are currently located, will retain half of the open space. However, concertgoers can look forward to a new section of Circuit being opened as part of an expansion area, providing more green open spaces and sidewalks.

THE VISION
Marlies Gustilo, senior director for arts and culture at the Ayala Museum, told the press that the project’s announcement coincides with both Ayala Corporation’s 190th anniversary and Ayala Museum’s 50th anniversary.

“It really depends on who the artistic director will be, but the ambition is really to be a regional presence and also a place for our Filipino artists,” she said.

Designed to engage visitors of all ages, the contemporary art center will be the “epitome of new,” a platform exclusively dedicated to new art and new ways of thinking and creating. It will welcome visual arts, immersive installations, performances, films, digital art, and interactive experiences.

Ms. Gustilo explained that the three main galleries will have double-height ceilings, to make space for contemporary pieces that can be hung from above. “And then there will be a lot of public art around in the open spaces,” she added.

As for the integration with the urban planning project of the public sector’s Pasig River Esplanade, Ayala Land Estate project development manager Misha Quimpo told BusinessWorld that the art center will be “Ayala’s part in the government’s plans.”

“We felt very fortunate that we already had this,” she said. “We actually earmarked a pad of land by the river, also beside the museum, for a ferry terminal. Plus, they’re going to build a bridge that goes across the river, for biking and pedestrians.”

Ms. Quimpo cited the public’s positive reception of the first 500 meters of the Pasig River Esplanade built in front of the Post Office in Manila, and the 9.29-kilometer Iloilo River Esplanade.

“Here, you have a positive review of the Circuit’s jogging area and recreational spaces. So, again, we’re just building on what’s already there,” she added. — Brontë H. Lacsamana

Globe secures P3-B loan for expansion, debt refinancing

BW FILE PHOTO

AYALA-LED Globe Telecom, Inc. has secured a P3-billion loan from the Bank of the Philippine Islands (BPI) to partly fund its capital expenditures (capex) and debt refinancing, the company said on Thursday.

In a regulatory filing, Globe said it had signed a term loan facility with BPI, which will be used for the company’s capex, debt refinancing, and other general corporate requirements.

The company has invested P41 billion in capex for the first nine months of the year, which is 24% lower than its capex in the comparable period a year ago.

The majority of Globe’s capex was allocated for data requirements, it said, noting that this ensures seamless and reliable connections for its users.

For 2024, Globe has set a $1-billion capex target and aims to reduce it further next year.

As of the end of September, Globe had built 685 new cell sites, upgraded 2,723 mobile sites to long-term evolution (LTE) technology, and deployed 55,076 fiber-to-the-home lines to strengthen its fiber infrastructure.

“These initiatives underscore Globe’s strategic focus on enhancing capacity utilization and maximizing network efficiency through prudent spending,” Globe said.

Proceeds from the loan will help Globe achieve its goal of providing connectivity across the country while also helping it attain a positive free cash flow position, it said.

At the local bourse on Thursday, shares in the company fell by P16, or 0.76%, to end at P2,100 apiece. — Ashley Erika O. Jose

1...1,9101,9111,912...13,824Page 1,911 of 13,824
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube