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Peso falls to P59 vs dollar

PHILIPPINE STAR/ MIGUEL DE GUZMAN

THE PHILIPPINE PESO on Thursday hit a record-low P59-a-dollar level for the first time in more than two years as the dollar continued its rally.

The peso closed at P59 against the greenback at the end of trading, weaker by nine centavos from its P58.91 finish on Wednesday.

This marked the first time the peso returned to the P59-a-dollar level since Oct. 17, 2022.

The peso opened Thursday’s trading session at P58.93 versus the dollar. Its intraday best was P58.92, while its weakest showing was its close of P59.

Dollars traded dropped to $842.68 million from $1.09 billion on Wednesday.

“The USD/PHP weakness reflects the recent rise in (10-year US Treasury yields), reflecting Trump 2.0 policies and causing the dollar to rise,” Jonathan L. Ravelas, senior adviser at professional service firm Reyes Tacandong & Co., said.

Economists have been warning that US President-elect Donald J. Trump’s proposed tariffs and tax cuts could stoke inflation and potentially hamper the US Federal Reserve’s easing cycle. 

Reuters reported that markets are pricing in a 52% chance of a 25-basis-point (bp) cut at the Fed’s December meeting, down from 82.5% a week ago, according to CME’s FedWatch Tool.

A Reuters poll showed most economists expect the Fed to cut rates at its December meeting, with shallower cuts in 2025 than expected a month ago due to the risk of higher inflation from Mr. Trump’s policies.

The first trader said the peso slump was also due to the “function of a stronger dollar and uncertainty of the Fed direction under Trump, plus mixed signals from the Bangko Sentral ng Pilipinas (BSP).”

“This also reflects expectations of rate cuts by BSP. This could persist in 2025. The near-term risk is P60,” Mr. Ravelas added.

BSP Governor Eli M. Remolona, Jr. this week gave mixed signals, saying the Monetary Board can either keep or cut rates at its Dec. 19 policy meeting.

He said inflationary pressures would warrant a pause, while weaker-than-expected growth would pave the way for another rate cut.

Since August, the BSP has delivered a total of 50 bps worth of rate cuts, bringing the benchmark to 6%.

“The peso continued to depreciate, closing at the 59 level, with the ongoing uncertainty on the composition of Trump’s economic team,” the second trader said.

Mr. Trump’s pool for a Treasury secretary pick widened to include Apollo Global Management Chief Executive Marc Rowan and former Federal Reserve Governor Kevin Warsh, Reuters reported.

Mr. Trump said he would nominate Howard Lutnick, chief executive of Wall Street brokerage firm Cantor Fitzgerald, as head of the Commerce Department.

The second trader also noted “escalating tensions between Russia and Ukraine exert increased safe-haven demand for the greenback.”

Russia launched an intercontinental ballistic missile from its southern Astrakhan region during a morning attack on Ukraine on Thursday, Reuters reported, citing Kyiv’s air force. It was the first time Russia has used such a powerful, long-range missile during the war.

The air force reported the launch after Ukraine fired US and British missiles at targets inside Russia this week, despite warnings by Moscow that it would see such action as a major escalation in the 33-month-old war. — Luisa Maria Jacinta C. Jocson with Reuters

BSP monitoring lenders behaving like digital banks

FREEPIK

SOME LENDERS behaving like online banks might be required to obtain digital banking licenses to curb arbitrage and improve oversight, the Bangko Sentral ng Pilipinas (BSP) said.

“We’re busy right now determining which among the digi-centric institutions that we have right now can already be considered as operating like a digital bank,” BSP Director for Technology Risk and Innovation Supervision Department Melchor T. Plabasan told reporters on the sidelines of an event in Mactan, Cebu on Wednesday.

He said lenders operating like online banks might be obliged to also undergo the process of securing digital bank licenses.

“If the BSP has a basis for us to convert their license, then we will require them. That means all the requirements for digital banks will have to be complied with by these institutions,” he said.

In August, the Monetary Board lifted the moratorium on new digital banking licenses starting Jan. 1, 2025.

The BSP will now allow four more digital banks to operate in the country, which would bring the total to 10. These can either be new applicants or banks that will convert their existing license to a digital one.

Mr. Plabasan said the BSP could also convert the license of a rural or thrift bank into one for a digital bank.

“Because if you’re already behaving like a digital bank, you should be regulated like a digital bank, not a rural bank. That’s why the intention really is to minimize the arbitrage,” he added.

Once applicants secure approval from the central bank, they can begin operations as soon as their technology and infrastructure are ready, Mr. Plabasan said.

“Normally, the chartering is completed within three to four months, assuming that they have already submitted all the requirements,” he added.

BSP Governor Eli M. Remolona, Jr. earlier said these applicants must “bring something new to the table.”

Applicants will also undergo a “rigorous” licensing process that will evaluate their value proposition, business models and resource capabilities.

They must also comply with the standard licensing criteria, which cover capital adequacy and corporate governance and risk management, among others.

The BSP also said applicants must have the potential to reach untapped or underserved markets and push credit inclusion.

“We will not complete the four (licenses), just to say we granted all four licensees. If no one meets the additional requirements, then we will stay with the existing number,” Mr. Plabasan added.

So far, he said there has been equal interest from both new entrants and existing players seeking to convert their licenses.

“There are also foreign players that have signified interest to enter the Philippine market. We have already received some queries about certain legal requirements, regulatory requirements… By Jan. 1, probably we also will have done some assessment of the existing players there,” he said.

In 2021, the BSP capped the number of digital banking licenses at six to boost regulatory capacity and supervision of the sector.

The six digital lenders in the country are Tonik Digital Bank, Inc.; GoTyme Bank of the Gokongwei group and Singapore-based Tyme; Maya Bank of Voyager Innovations, Inc.; Overseas Filipino Bank, a subsidiary of Land Bank of the Philippines; UNObank of DigibankASIA Pte. Ltd.; and UnionDigital Bank of Union Bank of the Philippines, Inc.

The BSP defines a digital bank as a lender that offers financial products and services that are processed end-to-end through a digital platform or electronic channels with no physical branch. — Luisa Maria Jacinta C. Jocson

PHL breaks ground on world’s largest solar and battery storage facility

PRESIDENT Ferdinand R. Marcos, Jr. (left) and Manila Electric Co. (Meralco) Chairman and Chief Executive Officer Manuel V. Pangilinan hold the time capsule during the groundbreaking ceremony of the MTerra Solar Project. Also in photo is Meralco Vice Chairman Lance Y. Gokongwei (right). — PHILIPPINE STAR/NOEL PABALATE

THE PHILIPPINES on Thursday signaled the start of construction of a P200-billion solar and battery storage project that is expected to supply power to over two million households by 2027.

President Ferdinand R. Marcos, Jr. led the groundbreaking of Meralco Terra (MTerra) Solar project, which consists of a 3,500-megawatt-peak (MWp) solar power plant and a 4,500-megawatt-hour (MWh) battery energy storage system in Nueva Ecija and Bulacan.

Once fully operational by 2027, the project would deliver 3,500 megawatts of solar power to the Luzon grid, Mr. Marcos said in a speech, adding that it would become the “largest integrated solar and battery storage facility in the world.”

“A 13-kilometer, 500-kilovolt transmission line will connect this project to the power grid, ensuring that clean energy reaches Filipino homes and businesses with efficiency,” he added.

Once completed, the MTerra Solar is expected to supply clean energy to about 2.4 million households through a 20-year, 850-MW mid-merit power supply deal with Manila Electric Co. (Meralco).

The project is being developed by Terra Solar Philippines, Inc., a unit of SP New Energy Corp. (SPNEC).

The initial block with 600 MW of capacity is scheduled for delivery by February 2026, while the remaining 250 MW will follow in 2027.

“Numbers alone fail to articulate the full significance of this project, we are making a statement today that the Philippines is not only keeping pace with the global energy transition but more so express our intention — the Philippines’ intention — to lead the migration from thermal to renewables,” Meralco Chairman and Chief Executive Officer Manuel V. Pangilinan said.

In his speech, Mr. Marcos said the project would also “reduce carbon emissions by more than 4.3 million metric tons annually.”

“To put that into perspective, it is equivalent to removing three million gasoline-powered cars from our roads — a decisive action towards helping address global warming and climate change,” he added.

Energy Secretary Raphael P.M. Lotilla said major investments in energy such as the MTerra project will help the Philippines reach its renewable energy goal faster.

“The major investment in solar and energy storage technology is a crucial step toward achieving our goal of increasing the share of renewables in the energy mix, reducing our carbon footprint and addressing electricity demand in Luzon,” he said.

The project aligns with the Philippines’ goal of increasing the share of renewable energy in its power generation mix to 35% by 2030 and 50% by 2040.

The MTerra Solar was certified by the Energy department as an “energy project of national significance” and secured “green lane certification” from the Board of Investments, enabling it to benefit from streamlined and expedited permit processing.

OPPORTUNITIES
“The country should be quick to capitalize on opportunities towards green transition, such as the Nueva Ecija MTerra Solar project, particularly as there is a real demand for cheaper electricity and the current prices proposed by these renewable energy (RE) facilities can actually compete with traditional base load plants,” said public investment analyst Terry L. Ridon, who started InfraWatchPH.

“We should however be allowed to transition at our own pace, based on the actual conditions of the economy,” he said in a Facebook Messenger chat.

Mr. Ridon said public support for the green transition would get stronger as the prices of electric vehicles are expected to be cheaper than internal combustion engines due to lower production costs and advanced manufacturing methods.

Mr. Marcos said the MTerra Solar project, which features five million solar panels, is expected to create as many as 10,000 jobs.

“It will stimulate local economies and open countless opportunities for growth and development in those communities,” he said.

“Over the next decade, it is poised to generate nearly P23 billion in financial benefits — resources that will pave the way for even greater progress.”

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly  owned by PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Kyle Aristophere T. Atienza and Sheldeen Joy Talavera

Storm barrage threatens growth after crops flattened

RICE FIELDS are flooded after water rose in Laguna de Bay due to recent typhoons. — PHILIPPINE STAR/RYAN BALDEMOR

SIX POWERFUL STORMS late in the season that ravaged crops and drenched vast areas of the Philippines have put the nation on track for record rice imports and raised concerns over elevated food inflation.

From the end of October to mid-November, the storms repeatedly dumped heavy rain over northern regions grappling with widespread flooding and saturated soil that couldn’t absorb any more water. The onslaught caused at least $131 million of crop losses, with rice bearing the brunt of the damage.

The last time six tropical cyclones hit the Philippines over a three-week period was in 1946, according to President Ferdinand R. Marcos, Jr., who said rice imports might climb to a record 4.5 million tons this year to fill supply gaps. The peak of the nation’s typhoon season is typically July through October.

“We don’t have anything to harvest anymore because of the storms,” said Jespher Villegas, a rice farmer in the town of Gonzaga in Cagayan province. His entire crop was submerged in floodwaters and rain is continuing in the region, he added, with his corn and tilapia fish farm also affected.

The Philippines is on the frontline for typhoons in the Asia-Pacific region, with about 20 tropical cyclones forming each year near the archipelago. Some storms make landfall, and some can track toward other countries in the region, soaking coffee crops in Vietnam and shutting stock trading in Taiwan.

Warm seas helped to fuel the most active season in the Western Pacific in seven decades this month, stirring up four typhoons, all of which made landfall in the Philippines. Even before the latest string of tropical cyclones, storms had sapped third-quarter growth and reduced rice production.

RUINED RICE
Nearly 600,000 tons of rough rice crops have been ruined by storms this year, according to the Department of Agriculture’s disaster management center. Over half was destroyed by Severe Tropical Storm Trami, which hit the major rice-growing region of Cagayan Valley in October.

Cagayan Valley and Central Luzon, which account for a third of the nation’s rice output, are two regions that were heavily drenched by the six storms. Prolonged rainfall can lead to a favorable environment for “grain-sucking rice bugs” that can attack at any time, the weather bureau warned.

The main rice crop is harvested in the last quarter of the year, and Agriculture Undersecretary Christopher Morales estimates annual output in 2024 may dip by about 1 million tons from a year ago to about 19 million tons. Still, imports are expected to remain elevated next year.

Overseas purchases could be between 4.5 million and 5 million tons next year to cover crop losses and higher consumption from a growing population, said Oscar Tjakra, a senior analyst for Rabobank in Singapore. The Philippines imported 3.6 million tons in 2023, according to government data.

“There’s high potential for more rice imports given disruptions to local rice production, which poses upside risk to food inflation and downside risk to economic activity,” according to Angelo Taningco, chief economist at Security Bank Corp. in Manila. The storms have also affected tourism, construction, manufacturing, transport and retail trade, he said.

Gross domestic product growth this year would likely come in below the Marcos government’s target of at least 6%, Taningco added.

Other crops have been destroyed by weather this year, including more than 350,000 tons of corn and over 112,000 tons of vegetables, according to figures from the government. Warmer temperatures caused by El Niño earlier in 2024 contributed to the damage, which has been exacerbated by recent storms.

Supply shortfalls risk boosting inflation, which accelerated in October on price gains in rice and other food items. To combat further hikes, the government is considering importing fish and vegetables, Agriculture Assistant Secretary Arnel de Mesa said on Tuesday.

“There’s a lot of rice and other crops that have been destroyed and we just have to compensate for that,” Mr. Marcos said on Friday. — Bloomberg

PHL has over 1 million working children — PSA

Students help teachers clean the classroom at a school in Marikina. — PHILIPPINE STAR/ WALTER BOLLOZOS

THE NUMBER of children working in the country fell by 26% to 1.09 million in 2023, the Philippine Statistics Authority (PSA) said on Wednesday.

PSA data showed the number of working children, aged between five and 17 years old, dropped by over 383,000 in 2023 from about 1.48 million in 2022.

The share of children doing work fell to 3.5% of the child population in 2023, lower than 4.7% in the previous year.

The term “working children” covers all children engaged in any form of economic activity regardless of their age or the nature of the work, PSA said.

Out of the 1.09 million working children, boys made up 59.1% of the total, while girls accounted for 40.9%.

The service sector employed 50% of the working children, slightly higher than 49.5% in 2022.   

The agriculture sector’s share of child workers went up to 43.7% in 2023 from 43.2% in 2022.

Industry had the smallest share of working children at 6.3% in 2023, slipping from 7.3% in 2022.

In 2023, 73.7% of working children logged 20 hours or less of work each week, PSA said. This was lower than 75.6% a year earlier.

Meanwhile, the number of working children involved in “child labor” was estimated at about 678,000 in 2023, dropping from about 828,000 a year earlier.

Child labor is defined by the PSA as working children who are engaged in hazardous work or whose work exceeds 40 hours.

The statistics agency estimated that 62% of the total number of working children in 2023 were engaged in child labor. The ratio was 56% in 2022 and 68.4% in 2021.

Of the estimated 678,000 working children engaged in child labor in 2023, 62.1% or 422,000 were boys, while 37.9% or 257,000 were girls.

Agriculture had the highest share of child laborers at 65.3%, followed by services (30.7%) and industry (4%).

Earlier, Labor Undersecretary Benjo Santos M. Benavidez said the agency is working to eliminate child labor and prevent child labor practices. — Aubrey Rose A. Inosante

Resiliency and adaptability in the Philippine property market

Freepik

According to recent reports from Leechiu Property Consultants, the economy, which showcases a gross domestic product growth rate of 6.3%, is a significant factor driving property demand in the Philippines. The said figure positions the Philippines as the second fastest-growing economy in the region, just behind Vietnam, which recorded a growth rate of 6.9%.

The country’s economic performance provides a foundation for sustained interest in the real estate sector. As the Philippines gears up to achieve upper-middle-income status by 2025, anticipated investments in the property market are expected to rise, reflecting growing confidence in the country’s economic prospects.

Investors and homebuyers alike are increasingly looking beyond Metro Manila to tap into the opportunities presented by these dynamic regions. The improvements in transportation infrastructure, such as new expressways and public transit systems, have made these areas more accessible and investor-friendly.

Stabilized demand amid declining launches

According to Colliers Property Market Report published for the third quarter of 2023, the demand for residential properties in Metro Manila remained tempered due to elevated mortgage rates. While the Bangko Sentral ng Pilipinas has initiated rate cuts, their immediate impact on consumer lending is limited.

Only 9,300 pre-selling units were sold in the first nine months of 2024, a 53% year-on-year decline. Colliers projects an annual average increase of 4,980 units in pre-selling take-up from 2024 to 2028, with a full-year growth of 6,830 units expected by the end of 2024.

Interestingly, there has been a growing preference for upscale and luxury units, which are now accounting for a larger share of overall pre-selling take-up. This trend reflects a shift in buyer profiles, as investors and high-income earners continue to fuel demand despite the economic headwinds.

Meanwhile, the supply in the Metro Manila condominium market remains constrained, with completions in the third quarter of 2024 amounting to just 830 units, bringing the year-to-date total to 9,860 units lower than the previously forecasted 11,290 units due to project delays.

The vacancy rate in Metro Manila’s secondary residential market increased to 17.4% in the third quarter of 2024, up from 17.2% in the previous quarter. The exit of Chinese Philippine Offshore Gaming Operators (POGOs) workers significantly contributed to this trend, particularly in the Bay Area.

On the rental front, recovery remains sluggish. In fact, residential rents grew marginally by 0.2% quarter-on-quarter (QoQ) and are expected to rise by 1.0% year on year by the end of 2024. Annual growth is forecasted at 2.1% from 2024 to 2028, with rental rates returning to pre-pandemic levels by the second quarter of 2028.

Capital values for residential properties grew by 0.5% QoQ in the third quarter of 2024, with an annual growth projection of 2.1% for the year.

One of the key elements sustaining demand in the residential market is infrastructure development, particularly in areas outside Metro Manila. Provinces such as Cavite, Laguna, and Batangas have emerged as focal points for growth, benefiting from enhanced connectivity and ongoing urban development projects.

Decline in office market growth

The office market experienced its first negative net take-up since 2021, recording a net absorption of -33,000 square meters (sq.m.) in the third quarter of 2024. This contraction was driven by the vacated spaces of POGOs following the government’s ban, coupled with rightsizing among outsourcing firms.

Notably, the vacancy rate in Metro Manila rose to 18.5% in the third quarter of 2024 from 18.3% in the previous quarter. However, demand for office space in the provinces outperformed Metro Manila, with provincial transactions accounting for 23% of total office deals during the period. Cebu and Davao emerged as key hot spots, with substantial leasing activity from outsourcing firms.

New office supply remained limited, with only 9,500 sq.m. completed in the third quarter of 2024. For the first nine months, total completions amounted to 176,400 sq.m. — a 47% drop compared to the same period in 2023. Colliers attributes this decline to construction delays, muted pre-leasing activity, and high vacancy rates in certain submarkets.

While average rents in Metro Manila declined by 0.6% QoQ, primary central business districts (CBDs) like Makati, Fort Bonifacio, and Ortigas demonstrated resilience with marginal increases. In contrast, secondary markets are likely to experience further rental declines.

Despite challenges, traditional firms drove demand in Metro Manila, accounting for 53% of transactions during the first nine months of 2024. Banking institutions, government agencies, and flexible workspaces were among the key contributors to this segment.

Shift to leisure-oriented developments

According to Leechiu Property Consultants, the full recovery of hotel, tourism, and leisure segment to pre-pandemic levels is projected by 2026, as the government and private developers invest heavily in infrastructure and accommodations.

Nationwide, the private sector has committed to 158 new hotel projects, totaling 40,084 rooms, generating P250 billion in investments, and creating 57,000 jobs.

Luzon accounts for 50% of the total pipeline, with key projects in Clark and Metro Manila. Visayas comes next with significant developments in Boracay, Mactan Island, and Panglao; while Mindanao contributes 8% of the pipeline, with notable projects in Davao City, Cagayan de Oro, and Siargao.

In response to tepid demand in Metro Manila, developers are shifting focus to leisure-oriented projects outside the capital, according to Colliers. Golf communities are gaining traction as lifestyle-oriented investments. These projects, priced between P175,000 and P590,000 per square meter, report take-up rates ranging from 43% to 100%.

Surge in retail demand

Colliers highlighted that mall operators are strategically refreshing retail spaces to entice more visitors and extend their dwell time, particularly in the run-up to the festive fourth quarter. In the third quarter of 2024, 104,800 sq.m. of retail space was absorbed, with food and beverage (F&B) brands leading the charge.

Expansion by foreign retailers, including brands from the home furnishing and personal accessory sectors, further amplified demand.

The market also saw the delivery of 86,900 sq.m. of new retail space during the quarter, including prominent developments like Opus Mall in Quezon City and expansions of SM City Caloocan and SM Bicutan.

On the other hand, developers are increasingly focusing on redeveloping existing malls to align with consumer demands for more immersive and experiential spaces.

Retail rents exhibited modest growth due to the influx of new supply, with a QoQ increase of 0.2%. Premium rents were observed in business hubs and malls with low vacancy rates.

Vacancy rates improved slightly to 15.1% in the third quarter, driven by robust retailer take-up. By yearend, vacancy is projected to inch up to 15.3% as new supply comes. — Mhicole A. Moral

ADB backs Ayala’s EV charging network with $100-M loan

ACMOBILITY

THE Asian Development Bank (ADB) has approved loans of up to $100 million, or around P5.9 billion, for Ayala Corp. subsidiary AC Mobility Holdings, Inc. (AMHI) to build an electric mobility (e-mobility) ecosystem in the country.

The loan application was “approved” on Nov. 20, the multilateral development bank said on its website on Thursday.

The Ayala Electric Mobility Ecosystem Project sought an $85-million ordinary-capital-resources loan and a $15-million concessional loan from the ADB.

“Subsidiary AC Mobility Holdings, Inc. (AMHI) will be utilizing the ADB’s loan proceeds to support the procurement and installation of electric vehicles charging network (EVCN) nationwide of up to 1,700 EVCS (electric vehicle charging stations) to develop an e-mobility ecosystem in the country,” the uploaded loan document said.

AMHI aims to drive the country’s transition to EV over the next five to seven years by expanding its product offerings.

The project began its pre-construction phase this year and is expected to fully operate in 2032, the document said.

“The typical rated power capacity of one EVCS is at least seven kilowatts (kW) for AC output and a maximum of 120 kW for DC output,” it added.

AMHI said it has already installed 35 charging stations registered with the Department of Energy within the National Capital Region, Cordillera Administrative Region, and Regions III, IV-A, VI, VII, and XI.

“The project will cover the proposed new EVCS installations of AMHI… The location of proposed new EVCS installations for January 2024 to July 2025 [is] expanding AMHI’s EVCN coverage to five additional regions,” it said.

These locations include the Ilocos Region, Central Luzon, Bicol Region, Eastern Visayas, and SOCCSKSARGEN (South Cotabato, Cotabato, Sultan Kudarat, Sarangani, and General Santos City), while other sites for installation are yet to be identified by AMHI.

AMHI also said it is considering installing EVCS in non-Ayala properties, provided that the sites meet its criteria.

This initiative aligns with Republic Act 11697, also known as the Electric Vehicle Industry Development Act, which sets quotas for EV adoption in organizations with vehicle fleets to support domestic manufacturers and encourage EV adoption.

One key component of the law is the comprehensive roadmap for the EV industry, which aims to establish the Philippines as a producer and exporter of EVs by 2040.

Under this, the baseline scenario target is a 10% EV share of the vehicle fleet by 2040. Under the clean-energy scenario, the target is at least a 50% EV share.

Ayala Corp. has integrated EVs into its portfolio. It became the official distributor of Kia, Volkswagen, and BYD EVs in the Philippines in 2023. — Aubrey Rose A. Inosante

How Metro Pacific Water is addressing Iloilo’s rising demand

METRO PACIFIC WATER President and Chief Executive Officer Andrew B. Pangilinan

By Sheldeen Joy Talavera, Reporter

METRO Pacific Water (MPW) is deploying new water solutions in Iloilo City to address the increasing demand, according to the company’s president.

“We have a long way to go in terms of providing the basic water needs for every Filipino, but that is our main objective — we want to give each Filipino an adequate supply of treated water,” MPW President and Chief Executive Officer Andrew B. Pangilinan said in an interview with BusinessWorld.

“We will continue to have discussions with local government units, even on the commercial side, and we will look for ways to come up with new solutions, such as desalination, in providing water and wastewater services to the country,” he added.

MPW is set to develop a P5-billion desalination plant in Iloilo City in partnership with France-based water and wastewater management solutions provider Suez.

The desalination plant is designed to produce 66.5 million liters of water per day.

Mr. Pangilinan said they are targeting to commence construction of the project in January next year, with completion slated for early 2027.

MPW earlier said that Metro Iloilo is “undergoing rapid economic and population growth,” which is putting a “strain” on the existing water resources.

The company signed a joint venture agreement with Metro Iloilo Water District in 2018 for the 25-year concession for the rehabilitation, expansion, and improvement of the water distribution system and wastewater management facilities.

The joint venture, Metro Pacific Iloilo Water, serves Iloilo City and the municipalities of Pavia, Leganes, Sta. Barbara, Cabatuan, Oton, San Miguel, and Maasin.

“Admittedly, for the past few years that we’ve been there, there’s really a water shortage. So right now, the most viable solution, the fastest solution, is putting up a desalination plant,” Mr. Pangilinan said.

He said desalination is the most viable option since other traditional sources, such as surface water and groundwater, are no longer viable in Iloilo due to pollution.

“We still have several groundwater sources being maintained, but they are already showing signs of degradation, so we really need to find a better water source, and right now, desalination is the most viable one,” he said.

A desalination plant is designed to take seawater and remove the salinity to produce fresh water, Mr. Pangilinan said.

Once successful, the company is open to using the project as a guide to replicate it in other areas.

MPW is the water infrastructure investments subsidiary of Pangilinan-led conglomerate Metro Pacific Investments Corp. (MPIC).

MPIC is one of the three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority share in BusinessWorld through the Philippine Star Group, which it controls.

PHL’s DigiPlus edges closer to Brazil market entry

FOR THE FIRST nine months, DigiPlus posted a 314% growth in net income to P8.75 billion from P2.1 billion in 2023, led by its retail games, new product offerings, and cost efficiencies. — DIGIPLUS.COM.PH

DIGITAL GAMING company DigiPlus Interactive Corp. is nearing its Brazil expansion after a subsidiary passed the gaming license qualification stage.

DigiPlus Brazil Interactive Ltda., a subsidiary of DigiPlus Interactive, has successfully passed the initial requirements for obtaining a federal gaming license from the Brazilian Ministry of Finance’s Secretariat of Awards and Bets (SPA), the listed company said in a regulatory filing on Thursday.

“This milestone advances DigiPlus into the final stages of the licensing process, bringing it closer to participation in Brazil’s newly regulated iGaming sector, one of Latin America’s most dynamic and rapidly growing gaming markets,” the company said.

DigiPlus has 30 days to complete post-qualification regulatory requirements, including platform certification and license fee payments.

Once completed, the SPA will issue the final list of operators authorized to operate from Jan. 1, 2025 onwards.

“As we navigate the final steps of the licensing process, we remain confident in our ability to align with Brazil’s regulatory requirements and introduce world-class gaming experiences to this dynamic market. This underscores our dedication to expanding into a new region while maintaining our focus on the Philippines as our core market,” DigiPlus Chairman Eusebio H. Tanco said.

DigiPlus filed for the gaming license in August, citing Brazil’s population of over 200 million as well as its potential as one of the fastest-growing gaming markets in Latin America.

Last year, Brazil passed legislation that formed a regulatory framework for its online betting market, which included a condition that operators should have a Brazilian partner with at least a 20% stake in the business.

DigiPlus President Andy Tsui said in a recent virtual briefing that the gaming license in Brazil, valid for five years, will cost around $6 million.

“We understand that Brazil has a big population, which is about two times that of the Philippines, and also has a deep-rooted passion for sports. We understand that the market size is about $2 billion for 2024 and is expected to grow about 15% to 20% over the next five years, so the market size may reach around $4 billion by 2029,” he said.

“We can leverage our existing platform and make necessary changes to meet the local compliance requirements. We’ll continue to explore different options to enter the market. We are also exploring options to work with a local partner so that we can kick-start a little faster,” he added.

For the first nine months, DigiPlus posted a 314% growth in net income to P8.75 billion from P2.1 billion in 2023, led by its retail games, new product offerings, and cost efficiencies.

Revenue increased by 223% to P51.56 billion from P15.98 billion in 2023.

On Thursday, DigiPlus shares rose by 1.3% or 26 centavos to P20.20 apiece. — Revin Mikhael D. Ochave

Eddie Romero’s legacy celebrated for his birth centennial

EDDIE ROMERO with his son Joey Romero on a film set.

IN 1976, the film Ganito Kami Noon, Paano Kayo Ngayon? by director Eddie Romero – much later proclaimed National Artist for Film – was released, eventually becoming a beloved classic due to its take on Filipino identity and culture set in the Spanish colonial era.

At recent talks about the film’s legacy, family, friends, and scholars of Mr. Romero’s works discussed the humor, drama, and historical insight that made his filmography so memorable.

Filmmaker Joey Romero told attendees about his father’s invaluable contributions to film as well as his enduring spirit as a storyteller.

“You can be anything you want to be as long as you like what you’re doing and strive to be good, if not the best at it. You can be a carpenter but be darn good at it and like it,” the younger Mr. Romero recounted his father’s words to him at the centennial celebration on Nov. 20 in Makati City.

Marking what would have been his 100th year, the event honored the life and legacy of Eddie Romero. It was prefaced on Nov. 15 by a screening of Ganito Kami Noon, Paano Kayo Ngayon? at the University of the Philippines Diliman in Quezon City, where students got to discuss it with film historian and author Nick Deocampo.

Mr. Deocampo posited that Ganito Kami Noon, Paano Kayo Ngayon? captures the spirit of Filipino culture, identity, and resilience, so much so that it is the only document in the UNESCO Memory of the World National Register for the Philippines, at least as of now.

“I would call it a masterpiece of Philippine cinema because of its powerful themes — from the portrayal of social and regional personalities to the representation of women navigating gender norms — and the holistic depiction of the birth of the Philippine republic,” he said at the Nov. 20 event.

This sensitivity to his country’s sense of identity recurs throughout Mr. Romero’s works, including the epic Aguila (1980), which spans generations to explore the impact of colonization and war on the Filipino spirit.

Both films, restored by ABS-CBN’s Sagip Pelikula and FPJ Film Archive, respectively, have been screened throughout the year.

“It’s important that Filipinos, especially students and younger generations, get to experience how film doesn’t just tell a story; through semiotics, or the language of signs, it can embody a legacy, a piece of history, and make a statement about Filipino culture and spirit,” Mr. Deocampo said.

In addition to these, Eddie Romero’s Kamakalawa (1981), while still unrestored due to extensive damage to its surviving copies, also represents the Philippines — this time from a pre-colonial perspective, immersing viewers in indigenous mythology and social structures.

Beyond his films, Mr. Romero was also involved in advocating for Philippine cinema through the Movie Workers Welfare Foundation (Mowelfund).

“The most important thing he instilled in us was putting others above oneself,” his son Ancel Romero recalled at the tribute. He added that his father “didn’t believe that true success was about fame or wealth,” instead putting emphasis on strong values.

For Mr. Deocampo, celebrating the elder Romero’s legacy does not end at centennial celebrations. “His film’s inclusion in the UNESCO Memory of the World National Register is but one part of preserving humanity’s cultural treasures. There are many other films and cultural documents that need to be properly archived and preserved,” he said.

“Without these, how will we remember what it is to be Filipino?” — Brontë H. Lacsamana

Robinsons Retail plans to boost store count over next 5 years

JGSUMMIT.COM.PH

ROBINSONS Retail Holdings, Inc. (RRHI) targets to ramp up its store openings over the next three to five years as part of its strategic growth initiatives, a company official said.

“In the next three to five years, we plan to accelerate our store openings and increase the top line,” RRHI Vice-President for Corporate Planning and Investor Relations Gina R. Dipaling said during a virtual briefing on Wednesday.

“On margins, it’s largely driven by changes in category mix, increasing the share of private label products and imported products in our stores, and also leveraging our size,” she added.

Ms. Dipaling said that RRHI is expanding its pet retail business, adding that it has seen higher sales.

“Our pet retail business is actually one of the fastest-growing businesses that we are operating right now. We’ve seen strong sales traction,” she said.

“We actually plan to further improve our pet retail business by enhancing the products that we offer, such as grooming services. We are also looking at opening more new stores in 2025,” she added.

She said RRHI is also boosting the expansion of its mini-mart store Robinsons Easymart and hard discount store O!Save Trading Philippines Corp.

“We are also accelerating the expansion of our neighborhood supermarket called Robinsons Easymart. We carry around 3,000 to 6,500 stock keeping units (SKUs) in Robinsons Easymart, so you can actually fulfill your full shopping list versus that of the hard discounters, where they only offer around 500 to 600 SKUs,” she said.

“O!Save is actually accelerating its expansion. By the end of this year, there will be 400 stores in Luzon. There’s a plan to open another 200 to 300 stores next year,” she added.

Founded in 2021, O!Save is a hard discount supermarket chain operated by HD Retail Holding Pte. Ltd., in which RRHI has a 23% stake.

Ms. Dipaling said RRHI is also pushing for lower rents to improve the operations of underperforming stores.

“On the cost side, we just have to negotiate with our vendors to lower the rents so we can turn around the business. But we are actually operating efficiently. We just have to negotiate with our vendors for nonperforming stores to have rent concessions,” she said.

As of the end of September, RRHI has 2,413 stores consisting of 758 food stores, 1,101 drugstores, 50 department stores, 225 DIY stores, and 279 specialty stores. It also has 2,163 franchised stores of The Generics Pharmacy.

RRHI shares were unchanged at P36.50 per share on Thursday. — Revin Mikhael D. Ochave

IC says only agents with regular license can sell insurance cover

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THE Insurance Commission (IC) has stopped issuing provisional licenses to insurance agents to protect consumers from fraud.

Only agents with regular licenses may sell policies to the public, Insurance Commissioner Reynaldo A. Regalado said in a circular on Thursday.

“Considering the procedure and evaluation period for the issuance of agents’ licenses under the Enhanced Licensing System, there is no longer a need for these provisional licenses,” he said. “The issuance of this circular letter is also part of the IC’s initiatives on consumer protection.”

Licenses of insurance agents are processed within seven working days based on the Ease of Doing Business and Efficient Government Service Delivery Act of 2018 and issuances by the Anti-Red Tape Authority.

The IC circular said life and nonlife insurers’ applications for an insurance agent’s license must be submitted with the required documents and correct licensing fees so they could be processed.

“We remind the insuring public to only transact with duly licensed insurance agents,” Mr. Regalado said, adding that payment of commissions to unlicensed agents is punishable under another IC circular.

He also urged public to report people without a license who transact or try to do business with them.

The Philippines had 261,422 life insurance and 16,274 nonlife insurance agents with active licenses as of Nov. 21, according to data posted by the commission on its website. — Aubrey Rose A. Inosante

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