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PNB net profit climbs to P6.37 billion in Q1

BW FILE PHOTO

PHILIPPINE National Bank (PNB) posted a 5% increase in its first-quarter earnings as higher core and other income offset losses from trading and foreign exchange.

The bank’s net profit climbed to P6.37 billion from P6.09 billion in the previous year, it said in a disclosure to the stock exchange on Monday. “This was supported by steady growth in core income, driven by higher loan volumes, disciplined balance sheet management, and prudent expense control.”

“Despite global economic headwinds, we delivered solid first-quarter progress on the back of a strong balance sheet and growing core income. We are building momentum with focused growth, tighter cost control, and improving asset quality — while continuing to push forward our digital and AI initiatives, regardless of the market cycle,” PNB President and Chief Executive Officer Edwin R. Bautista said.

“Our return on assets remained solid at 1.91% in the first quarter, reflecting efficient asset deployment and the benefits of a balanced loan mix that continues to support consistent earnings despite an uncertain rate environment,” PNB Chief Financial Officer Francis B. Albalate added.

Meanwhile, return on equity was at 10.8%, reflecting sustained profitability, the bank said.

Net interest income climbed by 6% year on year to P13.46 billion from P12.71 billion.

Its net service fees and commission income also rose by 6% to P1.51 billion from P1.42 billion.

“Despite a volatile interest-rate environment, the bank continued to expand its revenue base in a measured manner,” PNB said.

Its total loan portfolio grew by 15% year on year to P755.87 billion.

“Asset quality remained stable, with the nonperforming loan ratio recorded at 4.78%.”

Meanwhile, deposits were at P1.008 trillion at end-March, with 80% being low-cost current and savings accounts.

On the other hand, PNB booked a P229.88-million loss from trading and investment securities and foreign exchange in the first quarter versus the P862.267-million gain recorded in the same period last year.

As a whole, its total operating income climbed to P16.67 billion from P16.07 billion.

Meanwhile, operating expenses went up to P8.3 billion in the three-month period from P8.07 billion in the prior year.

Provisions for impairment, credit, and other losses stood at P225.673 million, down from P277.108 million previously.

PNB’s assets stood at P1.33 trillion as of March, while total equity was at P238.51 billion.

Its shares dropped by 10 centavos or 0.17% to close at P59.45 apiece on Monday. — BVR

Entertainment News (04/28/26)

Rusty Machines’ Iggy San Pablo launches music project

IGGY SAN PABLO, best known for his work with Filipino alt-rock band Rusty Machines, is back as “simple socks,” a solo music project navigating the complexities of adult life and self-discovery through the lens of a migrant. Distinct from Mr. San Pablo’s earlier bedroom-pop outing thenils, simple socks is a more assured artistic voice. Now based in Toronto, Canada, he explores themes of domestic routines, career transitions, and the challenges of making connections in a new environment. His debut single, “Training Wheels,” is an indie rock track that captures the courage of stepping beyond his comfort zone. Simple socks’ “Training Wheels” is out now on all digital music platforms worldwide.

20th Century Studios’ Send Help streams on Disney+

STARTING May 7, Sam Raimi’s thriller Send Help from 20th Century Studios will be streaming exclusively on Disney+. The film depicts a literal workplace nightmare when a ruthless executive (played by Dylan O’Brien) and his overlooked employee (Rachel McAdams) are stranded on a deserted island following a plane crash. It flips traditional power dynamics into a volatile, darkly comedic fight for survival, as past grievances collide with a raw instinct for self-preservation.

Action comedy The Wonderfools goes on Netflix

STARTING May 15, a new Korean series will be hitting Netflix. Titled The Wonderfools, it’s an action comedy centered on a goofy group of townies who stumble into superpowers and must fight rising evil as doomsday panic grows. It stars big names in K-drama — Park Eun-bin, Cha Eun-woo, and Choi Dae-hoon — and is created by Kang Eun-kyung and directed by Yu In-sik.

XG returns to Manila for its 2026 world tour

FOR its 2026 world tour The Core, global girl group XG will be coming back to Manila in July. It is its second world tour promoting its first full album THE CORE, with Asian stops including Bangkok, Manila, and Taipei. Promoted by AEG Presents Asia and Ovation Productions, XG WORLD TOUR: THE CORE IN MANILA will be held at the SM Mall of Asia Arena in Pasay City on July 22. The general ticket sale will start April 30, 12 p.m. Tickets, with prices ranging from P3,500 to P16,500 plus ticketing charges, will be available via smtickets.com.

Simple Plan brings new tour to Manila

POP-PUNK icons Simple Plan will return to Manila with their new The Bigger Than You Think! tour on Nov. 25 at the Araneta Coliseum in Quezon City. Presented by Midas Promotions and Wilbros Live, the tour promises a night of nostalgia, energy, and fan-favorite anthems celebrating their 25 years as a band, with iconic hits such as “I’m Just a Kid.” Tickets will be available via TicketNet online and outlets nationwide starting May 5, 11 a.m.

Your data, your rights: Building full picture credit in the Philippines

STOCK PHOTO | Image by Vectorjuice from Freepik

For years, reformers have spoken of “Open Banking” and “Open Finance.” These are important ideas, but they sound technical and distant. What the Philippines truly needs is something clearer and more ambitious: What I call Full Picture Credit.

We need a system where a person’s creditworthiness is assessed not only through the existence of a bank account, credit card, or loan, but across the full range of their financial life. Responsibility and capacity to pay show up in many places: utility bills paid on time, prepaid mobile top-ups, subscription payments, remittance inflows, e-wallet transactions, gig platform earnings, loyalty programs, even rent payments. These everyday behaviors reflect financial discipline. They should count.

Imagine applying for a loan and being able, with your consent, to authorize the lender to access relevant financial data beyond traditional bank records, such as utility payments, mobile subscriptions, remittance history, e-wallet transactions, etc. Through secure application programming interfaces (APIs), the same technology that powers mobile apps, this data could be transmitted directly to financial institutions for credit evaluation.

With more complete information, lenders gain a fuller and more accurate view of an applicant’s financial behavior. For responsible borrowers, sharing more data could mean better outcomes: higher approval rates, larger loan amounts, and lower interest rates. Applying with limited information, by contrast, often leads to conservative credit decisions.

Without meaningful data sharing, lenders assess risk based on partial visibility. When individual risk cannot be measured accurately, pricing reflects the average risk of a broader pool. As a result, responsible payers effectively subsidize those whose risk profiles are unclear. Lenders price defensively. More granular data allows risk to be differentiated more precisely, so disciplined borrowers are not penalized by a system that cannot fully see them.

The Philippines has already laid much of the groundwork. In 2021, the Bangko Sentral ng Pilipinas (BSP) issued Circular No. 1122 adopting an Open Finance Framework built on consent-based data portability and inter-operability. In 2023, the BSP launched the Open Finance PH Pilot to explore API-enabled services and governance standards. The Securities and Exchange Commission (SEC) introduced regulatory sandbox mechanisms to encourage financial innovation. The Credit Information Corp. continues expanding access to credit data and strengthening reporting obligations.

These are critical building blocks. But they remain largely within traditional financial silos. Full Picture Credit means going further by recognizing alternative data that are evidence of responsible transacting and creditworthiness. In a modern digital economy, responsible non-bank behavior should matter.

The urgency is clear. According to the BSP’s 2024 Financial Inclusion Annual Report, 56% of Filipino adults now have an account, up from 29% in 2019. That is significant progress — but it still means roughly 44% remain unbanked. Of those with accounts, many rely on e-money rather than traditional banks, and most accounts are used primarily for payments rather than savings.

Globally, 76% of adults had an account in 2021, according to the World Bank’s Global Findex. The Philippines is catching up, but access to an account does not automatically translate into access to credit. Many Filipinos, especially informal workers and MSMEs, have steady incomes yet lack traditional credit histories. They are “thin file” borrowers: economically active but practically invisible to formal credit systems.

This is where alternative data becomes transformative and thankfully, international experience offers guidance.

In the United Kingdom, Open Banking allows consumers to authorize access to transaction histories for credit assessment. Lenders increasingly use cashflow-based underwriting to evaluate affordability in real time, particularly for thin-file borrowers. Open Banking has facilitated new market entrants and strengthened competition. Evidence shows meaningful entry effects and lower financing costs for certain borrowers, especially SMEs that benefit from improved data access.

Brazil has scaled this approach even further. Its Central Bank built a national Open Finance infrastructure designed to increase competition and improve credit allocation. Millions of consumers have provided consent for data sharing, enabling standardized exchange of account, credit, insurance, and investment data. The Central Bank reported average reductions in interest rates for borrowers whose scores improved with expanded data. Better information translated into better pricing.

Cambodia offers a different lesson. Through the National Bank of Cambodia’s Bakong digital payment system, millions of inter-operable digital transactions now occur daily. While alternative data is not yet fully integrated into credit scoring, the digitization of everyday payments creates the transaction records necessary for new credit models to emerge. Once payments become visible, they can become meaningful.

The connection between better credit data and financial literacy is crucial. When consumers can see that paying a utility bill on time strengthens their credit profile, financial literacy becomes tangible. Responsible behavior generates measurable benefits. This feedback loop reinforces budgeting, timely payment, and prudent subscription management.

Financial literacy is not just about knowledge. It is about visible consequences. If the system ignores responsible non-bank behavior, it discourages engagement. If it recognizes that behavior, it rewards discipline.

The Philippines is uniquely positioned for this reform. We are a mobile-first society. Mobile connections exceed the national population. Filipinos spend among the longest hours online globally, and most access the internet through mobile devices. E-wallet penetration is high. Remittances are increasingly digital. MSMEs transact through QR payments and online platforms. Every day, Filipinos generate rich digital financial footprints, yet most of this data remains unused in formal credit assessment.

Full Picture Credit would allow Filipinos, with explicit consent and strong safeguards, to share their broader financial footprint across regulated institutions. It would enable lenders to price risk more accurately, reduce overreliance on collateral, and compete for underserved borrowers. Most importantly, it would create a system where financial responsibility translates directly into financial mobility.

This reform aligns with the Philippines’ Data Privacy Act, modeled heavily on the EU’s General Data Protection Regulation. The law enshrines the rights of data subjects: the right to be informed, to access, to object, and, critically, the right to data portability. Full Picture Credit does not weaken these protections, rather it activates them. It gives Filipinos the practical ability to direct where their data goes and for what purpose.

This is not about forcing data to move. It is about empowering individuals to decide when and how their data works for them.

The Philippines has already built the regulatory scaffolding. The next step is to expand the spectrum of usable data in a safe, responsible, and inclusive manner.

If we want genuine financial inclusion, we must reform credit assessment to reflect how Filipinos actually live and transact. It is time to move beyond narrow banking reform and enable our citizens to exercise their data, their rights, for their credit.

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

 

Ira Paulo Pozon is the chair of the MAP Ease of Doing Business Committee. He is a senior partner at Pozon Recto Petrache and Laiz Law Offices. He previously served as the chief of staff and OIC director of the Better Regulations Office of the Anti-Red Tape Authority or ARTA. He is a Technology, Cyber, Sustainability and Risk Advisory Professional.

map@map.org.ph

i.pozon@salmon.group

Meralco says all bill charges are regulator-approved

HOUSEHOLDS CONSUMING 200 kWh will see their monthly electricity bill go up by P21. — PHILIPPINE STAR/KJ ROSALES

ELECTRICITY CHARGES collected from consumers for social programs are mandated by the government, Manila Electric Co. (Meralco) said on Monday, as it addressed claims circulating on social media about additional bill charges.

“Meralco, just like other electricity distributors across the country, operates under strict regulatory oversight that ensures all charges are lawful, transparent, and properly vetted,” Meralco Vice-President and Head of Corporate Communications Joe R. Zaldarriaga said in a statement.

He said every line item in consumers’ power bills has been approved by the regulator before being reflected and implemented.

The statement followed claims on social media regarding additional charges in electricity bills collected by Meralco.

These charges include subsidies such as the lifeline rate discount, senior citizen discount, feed-in tariff allowance and green energy auction allowance.

“These mandated charges are remitted to the government through the relevant agencies. To reiterate, these are not new charges and they are not exclusive to Meralco as these are implemented by all distribution utilities and electric cooperatives in the country,” Mr. Zaldarriaga said.

Meralco said that, like other pass-through charges such as generation and transmission costs and taxes, distribution utilities do not earn from these charges.

“We act solely as collection agents for these costs. These do not form part of our revenues in any way,” Mr. Zaldarriaga said. “Again, we are highly regulated, with all charges in electricity bills subject to rigorous review and regulatory clearance prior to implementation.”

The company added that its distribution charge has remained unchanged since it was reduced in 2022.

Meralco’s controlling shareholder, 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. — Sheldeen Joy Talavera

Analysts see short-term dip in office demand on WFH shift

STOCK PHOTO | Image by Dit26978 from Freepik

WORK-FROM-HOME (WFH)arrangements driven by rising fuel costs may dampen office take-up in the short term, but property consultants expect demand to remain broadly stable and vacancy pressures to stay manageable as the market continues to recover.

“While rising fuel costs and geopolitical tensions may prompt some companies to temporarily revisit work-from-home arrangements, we do not expect this to materially reverse the broader return-to-office (RTO) trajectory,” Joe Curran, chief executive officer of Savills Philippines, told BusinessWorld in an e-mailed reply to questions on Friday last week.

He said that most multinational firms and information technology and business process management (IT-BPM) occupiers continue to operate under structured hybrid models, with clear in-office requirements driven by productivity, collaboration, and client compliance.

“Any shift toward remote work in the near term is likely to be temporary until the current crisis subsides,” he added.

Kath Ryne A. Taburada, research manager for office services — tenant representation at Colliers Philippines, said office demand may soften in the short term amid uncertainty from the Middle East conflict.

“We are already seeing some companies delay or pause office decisions as they reassess their near-term business outlook. The wider use of WFH arrangements, largely driven by transportation challenges, could also weigh on office take up,” she said in a separate e-mail.

Mr. Curran said leasing activity is expected to remain steady despite near-term adjustments in workplace strategies, with firms continuing to expand and optimize their office footprints.

“In terms of office demand, leasing activity is expected to remain steady in the coming months, supported by ongoing expansions from traditional firms and sustained demand from the IT-BPM sector. External shocks such as fuel price volatility tend to influence workplace policies at the margin, but rarely lead to a meaningful reduction in overall space requirements. Instead, we are seeing companies focus more on optimizing location, prioritizing accessibility, proximity to talent, and cost efficiency, rather than reducing their footprint outright,” he said.

He added that the office market is showing early signs of recovery, with vacancy rates expected to gradually stabilize as demand improves, particularly in core central business districts (CBDs).

“Regarding vacancy, we anticipate gradual stabilization over the course of the year. While elevated supply in certain submarkets will continue to keep vacancy rates relatively high in the near term, improving absorption, particularly in core CBDs, such as Bonifacio Global City (BGC), should help ease overall pressure. The market remains tenant favorable, but early signs of recovery are emerging as demand normalizes and previously vacated spaces are reabsorbed,” Mr. Curran said.

“Overall, the office sector remains resilient. The current environment may accelerate workplace evolution, but it reinforces the role of the office as a critical component of long-term business strategy,” he added.

Ms. Taburada said companies are taking a cautious stance in the near term, prioritizing flexibility and employee welfare as they navigate uncertainty linked to geopolitical tensions and rising transport costs.

“Many firms are prioritizing employee welfare and retention while ensuring business continuity, and WFH provides flexibility during this period of disruption. As a result, some occupiers may take more time before committing to new or expanded office space,” she said.

She added that government measures, including temporary WFH arrangements for registered business enterprises (RBEs) registered with investment promotion agencies (IPAs), have provided clarity for firms adjusting their operations.

“On a positive note, the government has acted quickly by putting in place clear WFH guidelines, such as the temporary 90% WFH arrangement for IPA-registered RBEs. These measures give businesses immediate clarity on how to operate, allowing them to adjust work arrangements quickly even if longer-term office decisions are deferred,” she said.

Despite short-term headwinds, Ms. Taburada said demand from key occupiers such as third-party outsourcers (3POs) and global capability centers (GCCs) is expected to remain intact.

“Looking beyond the near term, we expect demand from 3POs and GCCs to stabilize, supported by the sector’s generally positive outlook. These occupiers tend to take a longer-term view, and their expansion plans remain intact despite short-term disruptions,” she said.

She noted that the full impact of the global oil crisis has yet to be reflected in first-quarter data but said vacancy risks remain contained due to a more disciplined supply pipeline.

“The full impact is still unclear as our first-quarter data does not yet capture the effects of the global oil crisis. In a worst-case scenario — similar to the early stages of the coronavirus disease 2019 (COVID-19) pandemic — office vacancy rates could rise and potentially go beyond 20% this year. That said, the market today is in a better position compared to the COVID-19 period. Office supply is much more controlled, with around 500,000 square meters (sq.m.) to come online this year and an average of about 300,000 sq.m. annually over the next four years,” she said.

“This is significantly lower than the 900,000 to 1 million sq.m. delivered during the Philippine offshore gaming operator (POGO) years, as well as the 400,000 to 700,000 sq.m. added each year right after the COVID-19 pandemic hit. This tighter supply pipeline should help cushion the market and limit the rise in vacancy rates, even if demand softens in the short term,” she added. — Juliana Chloe A. Gonzales

Peso slips to near 1-month low amid fading peace deal hopes

PHILIPINE STAR/IRRA LISING

THE PESO on Monday edged down to another near one-month low against the dollar as global crude oil prices went up as hopes for a definitive peace deal between the United States and Iran dimmed.

The local currency closed at P60.71 a dollar, slipping by a centavo from Friday’s P60.70 finish, according to Bankers Association of the Philippines data posted on its website.

This was the local unit’s worst finish since March 31’s P60.748, which is its all-time low.

The peso opened Monday’s session stronger at P60.65 against the greenback. Its intraday best was at P60.60, while its worst showing was at P60.80 versus the greenback.

Dollars traded went up to $1.41 billion from $1.38 billion in the previous session.

The peso inched down as global crude oil prices rose due to market uncertainty as traders continued to monitor developments between the US and Iran, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

For Tuesday, Mr. Ricafort sees the peso moving between P60.60 and P60.80 against the dollar.

The US dollar was steady on Monday as wavering hopes of a deal to end the Middle East war left investors on edge ahead of a slate of central bank meetings later this week, Reuters reported.

Sentiment got a lift overnight after Axios reported, citing sources, that Iran gave the US a new proposal through Pakistani mediators on reopening the waterway and ending the war, with nuclear negotiations postponed for a later stage.

Some analysts have argued that a potential nuclear deal remains the main sticking point, as any agreement that leaves Iran’s nuclear program largely unchanged could be politically damaging for the US President at home.

The Strait of Hormuz normally carries a fifth of global oil and gas shipments.

The dollar benefited in March from safe-haven flows as the war erupted but shed most of those gains on hopes of a peace deal this month. It has steadied in recent days after US-Iran talks stalled.

The dollar index, which measures the US currency against six major peers, was at 98.41, down 0.1% on day.

Oil prices jumped almost 3% on Monday as peace talks between the US and Iran stalled and shipments through the Strait of Hormuz remained limited, keeping global oil supplies tight.

The Brent crude benchmark rose $3 or about 2.9% to $108.36 a barrel by 0828 GMT, its highest in three weeks. US West Texas Intermediate (WTI) was up $2.45 or 2.6% at $96.85.

Brent and WTI gained nearly 17% and 13% respectively last week for their biggest weekly gains since the start of the war.

Hopes of reviving peace efforts receded over the weekend when US President Donald J. Trump said Iran could telephone if it wants to negotiate an end to their two-month war. — AMCS with Reuters

Anne Hathaway transforms into troubled pop icon in Mother Mary

LONDON — Oscar-winner Anne Hathaway spent years perfecting her vocal and dance skills to play a pop star in Mother Mary, a two-hander drama about a complex relationship.

Ms. Hathaway portrays Mother Mary, a global pop icon spiraling on the eve of her high-stakes comeback performance following a mysterious incident. Struggling, she travels to England and turns up at the doorstep of fashion designer Sam Anselm (Michaela Coel), requesting her once closest friend who she broke off contact with a decade ago, to make her a dress that truly represents her.

The reunion at Ms. Anselm’s countryside atelier unearths repressed anger and pain but also reminders of their tight bond.

Ms. Hathaway said she drew inspiration from superstar Beyoncé and took her training for the film “really seriously.”

“I didn’t want to just show up and do a good job, I wanted to do my absolute best and it took several years of being really committed to it,” Ms. Hathaway said at the film’s London premiere on Thursday.

Ms. Hathaway said she trained eight hours a day for months to nail a demanding key dance scene and practiced consistently while working on other projects, and also spent a year “crafting the voice in a specific way.”

The Hollywood star, who a day earlier premiered The Devil Wears Prada 2 in the British capital, said she could understand her character’s battles.

“A lot of her is based on the choices that I’ve actively tried not to make. I’m really lucky I’ve been in successful films since I was a teenager, but I also knew that I really wanted to be an artist and I never wanted to lose who I was as a person in the limelight,” she said.

The 43-year-old said she felt she’d reached an age “where I can appreciate it and enjoy it and not feel buried by it, the way Mother Mary feels buried by it.”

The A24 film is written and directed by The Green Knight filmmaker David Lowery and features original songs by Charli xcx, Jack Antonoff and FKA Twigs. Ms. Hathaway performs seven songs on the accompanying soundtrack album Mother Mary: Greatest Hits.

“We could have written top 10 hits, but she had to feel them,” said Mr. Lowery. “She had to sing them and she really pushed to make them as good as they are.”

Mother Mary is currently showing in Philippine cinemas with an MTRCB rating of R-16. — Reuters

Silicon Valley made AI powerful. Tokyo wants to make it work

VECTORJUICE/FREEPIK

By Catherine Thorbecke

THERE WAS A TIME when Tokyo felt light years ahead of the world. The flip phone I used in the 2000s was a marvel to every American I showed it to, packed with features far beyond anything on the US market.

But during the smartphone and internet era, Silicon Valley pulled ahead. Tokyo’s edge dulled as the country struggled through its lost decades and lagged in the shift from hardware to software. Now it’s trying something more ambitious than just catching up — it wants to become the most startup-friendly city in the world.

That push is led by Governor Yuriko Koike, who has run the world’s largest metropolitan area since 2016. A former defense minister and one of Japan’s most durable political figures, she’s now betting the city’s future on entrepreneurs.

The companies that have supported Japan up to now are the large established enterprises, she told me in an interview. Koike argues that younger Japanese are digital natives with a more global outlook. Her government wants to tackle startup bottlenecks alongside entrepreneurs rather than leave them to fend for themselves. Tokyo currently ranks 11th globally, according to benchmarking ranker Startup Genome’s most-recent ecosystem report, up from No. 15 in 2023. And it’s home to eight unicorns.

Tokyo’s inherent advantages sound mundane until you live elsewhere. After a decade in New York, returning felt like rediscovering a luxury I’d forgotten was possible in a big city: trains that arrive, streets that are safe, infrastructure that works. Koike thinks this reliability is a big part of the city’s economic appeal.

It attracts more top tech talent than outsiders may assume. Llion Jones, the former researcher at Alphabet, Inc.’s Google who co-authored the seminal paper that underpins all modern generative AI, moved to the city in 2020 after falling in love with it, according to the venture capital firm backing his Tokyo-born unicorn Sakana AI.

There’s no doubt Silicon Valley remains the world’s largest startup incubator. But the gap between its extraordinary wealth and visible urban dysfunction is getting harder to ignore. Tokyo offers a different model — a place where technology can improve life not just for founders, but for everyone else too.

The timing of the AI revolution may work in the city’s favor. If the last tech era mostly rewarded consumer internet platforms, the next may place greater value on what Japan already does well: robotics, industrial precision, and the emerging “physical AI” arena. It is home to some of the world’s leading robotics suppliers. Amazon.com, Inc., Microsoft Corp., and Google are spending tens of billions of dollars on data-center infrastructure in the country. The weak yen makes procurement and local hiring relatively cheap. And the country is also reasserting itself in advanced chips, from Taiwan Semiconductor Manufacturing Co.’s push into Kyushu to the government-backed effort to produce homegrown 2-nanometer semiconductors in Hokkaido.

Japan is full of contradictions on AI. People here are the least fearful in the world of the technology, perhaps because a shrinking population and labor shortages make automation feel less threatening than necessary. Yet adoption has been slow.

There are fewer places in the world where AI seems better suited to solving long-running productivity problems (as my colleague Gearoid Reidy has written) as well as helping its startups go global. Japan ranks 96th of 123 countries on a widely used English-language proficiency measure, creating friction for foreign founders and domestic entrepreneurs trying to expand abroad. AI is unusually good at reducing that barrier. It can also help with coding in a country long stronger in hardware than software.

Plenty of governments say they support entrepreneurship. Tokyo has attached real targets to the slogan, setting the goal of nurturing 10 times more startups, public-private partnerships, and unicorns. This week, the city is backing its fourth annual Sushi Tech conference, now one of Asia’s biggest startup gatherings. More than 700 companies are exhibiting and executives from giants like Nvidia Corp. are headlining.

Skeptics are right to question whether Tokyo’s ambitious goal-setting is enough. Japan is still notorious for bureaucracy and red tape. Much of that lies in the hands of the National Government, but Koike says she wants Tokyo to become a model of speed. “Innovation is moving extremely fast,” she explained, and city leaders can usually keep up at a better pace than their national peers.

Capital is another weak spot. Japan still trails peers in funding AI companies. But geopolitics may help — as a close US ally, it is an easier destination for investors increasingly constrained or uncertain about China.

Tokyo’s policymakers are right to focus on building an ecosystem, not just producing a few headline startups. But the harder task comes in helping founders scale. That means cultivating experienced management talent, perhaps by making it easier for mid-career workers to leave large companies for startups without treating the move as career-ending. Creating pipelines for both the young and experienced would broaden the city’s entrepreneurial base.

Some blame a cultural aversion to risk for holding back entrepreneurs. But foreign investors should recognize that Japan is not a monolith (Softbank Group Corp.’s Masayoshi Son, for example, has a borderline unhealthy attraction to big gambles).

Koike said she already uses AI extensively, pointing to how much it has improved for administrative work. The city is applying it to sewage systems, aging infrastructure, and disaster resilience. It’s a more compelling vision of AI; not as a spectacle but as a tool that can actually help people in daily life.

And that may be where Tokyo’s opportunity is greatest. If AI can supercharge the city’s startup ambitions, it can lead the world in creating an ecosystem built around solving real-world problems. Silicon Valley made AI lucrative. Tokyo could make it useful.

BLOOMBERG OPINION

Dominion Holdings says no approved plans for Tampakan investment

STOCK PHOTO | Image by Michael Fousert from Unsplash

DOMINION HOLDINGS, INC. said it is considering various potential and strategic investments but has not approved any specific plans involving the Tampakan copper-gold project.

The listed firm issued the clarification on Monday after the Philippine Stock Exchange requested comment on an April 26 InsiderPH report linking the company to developments related to the Tampakan project.

The report, citing an unnamed source, said the Sy family, alongside the Consunji and Alcantara groups, was exploring a more direct role in advancing the stalled mine.

It also said a possible merger of Tampakan-related entities into Dominion Holdings and a potential minority stake in Atlas Consolidated Mining & Development Corp. were being considered.

“Dominion Holdings, Inc. is currently considering various potential and strategic investments. However, to date, the Board has not approved any plans on any specific investment,” the company said in a disclosure.

The Tampakan project in South Cotabato is considered one of Southeast Asia’s largest undeveloped copper-gold deposits. It has faced delays due to regulatory and environmental issues, including a provincial ban on open-pit mining. — Vonn Andrei E. Villamiel

Megaworld to develop beach club in Ilocandia Coastown

MEGAWORLDINTERNATIONAL.COM

LISTED property developer Megaworld Corp. said it will build a beach club within its 84-hectare Ilocandia Coastown township in Laoag City, Ilocos Norte, as it expands developments in northern Luzon.

In a disclosure on Monday, the company said the Ilocandia Beach Club will be developed along the township’s 1.4-kilometer coastline and will feature direct beach access, dining outlets, retail spaces, and recreational amenities.

The planned facility will include swimming pools, a fitness center, and lounge areas, among other features, Megaworld said.

“Our goal is to offer a beachside township experience in Ilocandia Coastown,” said May Santos, head of sales and marketing for the township.

Megaworld said land development for the project is set to begin early next year.

The Ilocandia Coastown project is the company’s first township development in the Ilocos region and will include a town center, commercial and office spaces, hotels, and leisure facilities.

The township is located near the Fort Ilocandia Hotel, about 10 minutes from Laoag International Airport and within 30 minutes of Paoay Church, a UNESCO World Heritage Site.

Megaworld previously said it has started land clearing and infrastructure development in Ilocandia Coastown, including roads, utilities, and its first residential project, Ilocandia Beach Village.

The 19.4-hectare residential village will feature 446 lots ranging from 230 to 406 square meters, with amenities such as a clubhouse, swimming pool, and central park. The company said the project will also include underground cabling systems for utilities.

Lot turnover is scheduled for 2031, with expected sales of about P2 billion, based on earlier disclosures.

For 2025, Megaworld reported a 12% increase in attributable net income to P21 billion from P18.75 billion in 2024. Revenue rose by 4.4% to P79.12 billion from P75.77 billion, while expenses increased by 4.8% to P50.49 billion from P48.18 billion.

Megaworld shares closed at P2.05 on Monday, down 0.49%. — J.C.A. Gonzales

Global energy Trumpflation and the rising budget deficit

It has been two months now since the US and Israel attacked Iran on Feb. 28. So I reviewed the prices of energy and related products since the Middle East crisis started and here are the trends.

1. Crude oil prices peaked in late March then pulled back slightly, though they mostly stayed above $100 a barrel. The world is suffering from “Trumpflation” as a result of US President Donald Trump’s irresponsible and prolonged attacks on Iran and Iran’s counterattacks and choking of the Hormuz Strait.

2. The Japan Korea Marker (JKM) LNG prices are 55% higher than they were before the war but the price of coal has increased by only 10%. Indonesia and Australia, the main sources of coal in the Asia-Pacific region, are far from the conflict area.

3. Non-fossil fuels remain generally as “non-alternatives” to hydrocarbons.

4. The prices of naptha — the main feedstock for various petrochemical products — and fertilizer inputs  remain high, which explains point No. 3, since solar, wind, biomass, and nuclear power cannot produce petrochem products.

5. The local pump prices have reflected price changes in global crude oil (see Table 1).

The Philippines’ inflation rate increased year on year from 1.8% in March 2025 to 4.1% in March 2026. Among the major drivers of the inflation increase this year are Transport, prices of which increased 9.9%, and Electricity, Gas and Other Fuels that increased 7.2%.

What this shows is that our local power generation companies (gencos), especially those with coal plants that contribute 57-60% of total electricity production, were able to rein in the rise in electricity prices. Among these gencos which use considerable coal power are Aboitiz Power, Meralco PowerGen (MGEN), and SMC.

CASH AND DEBT
Last week, the Bureau of the Treasury (BTr) released the cash operations report for March 2026. We saw in it that the budget deficit was horrible at P350 billion in March alone as expenditures kicked high. So, I compared the January-March data over recent years and saw that the budget deficit this year of P356 billion is actually lower than last year’s P446 billion.

But given our continuously rising public debt level, our interest payment is high — P273 billion this year or an average of P3 billion/day, from P2.7 billion/day in 2025, P2.1 billion/day in 2024, P1.6 billion/day in 2023, and P1.2 billion/day in 2019 (see Table 2).

With the above data, the government and private sector should consider these short- to long-term measures.

1. Expand and accelerate exploration and development of more fossil fuels, more oil, gas, and coal instead of accelerating the development of wind and solar power. Even the resin, components of fiberglass and other parts of wind and solar power set-ups, are petrochem products.

2. Create new government subsidies and freebies or ayuda for the poor without resorting to more borrowing by cutting or shrinking some old and existing subsidies. Giving higher subsidies without cutting old subsidies means more borrowing that will require higher interest payments today and higher taxes tomorrow.

3. Suspend the excise tax on diesel and gasoline and discontinue cash aid for public transport and other subsidies. Tractors, harvesters, trucks, irrigation pumps, and fishing boats all use diesel so by suspending the excise tax there will be a decline in the cost of farming and fishing, contributing to lower food inflation.

4. Consider cutting or suspending irrigation subsidies made through the National Irrigation Administration’s big budget, instead of bowing to lobbying to give a fertilizer subsidy given the high prices of ammonia, urea, and sulfur, which are important inputs and fertilizer products.

5. On proposals to revive the domestic petrochemical industry through subsidies — the government should not rush towards this “industrial policy” lobby.

On the last point, I briefly chatted with Arnel Santos, a former Shell petrochemical executive and now COO of MGEN Thermal, and he said that “Base petrochemical investments that depend on imported feedstock and export markets remain structurally disadvantaged. Integration across refining and petrochemicals is only viable when it is connected to a system that provides access to feedstock, markets, and capital beyond what is available locally.”

 

Bienvenido S. Oplas, Jr. is the president of Bienvenido S. Oplas, Jr. Research Consultancy Services, and Minimal Government Thinkers. He is an internationa fellow of the Tholos Foundation.

minimalgovernment@gmail.com

UnionBank net income surges to P3.8B

PHILIPPINE STAR/KRIZ JOHN ROSALES

UNION BANK of the Philippines’ (UnionBank) net income surged by 167% in the first quarter, backed by the strength of its core businesses.

The bank’s profit jumped to P3.833 billion in the first three months of the year, it said in a disclosure to the stock exchange on Monday. This was also up by 8.7% from the prior quarter.

“We are carrying over strong momentum, building on the actions we took in 2025 to strengthen our balance sheet and lay the foundation for sustainable growth. First-quarter results provide an early indication that the bank is continuing its path to improved performance,” UnionBank Chief Financial Officer Manuel R. Lozano said.

“However, recent geopolitical developments introduced potential risks. In response, we took proactive measures to reinforce our portfolio and enhance credit risk management. Our immediate focus is to ensure we effectively navigate the impact of recent developments. We are strongly positioned in terms of capital and liquidity, and we remain focused on protecting earnings to maintain our good performance despite the heightened market volatility.”

The bank’s net revenues grew by 11.8% year on year to P21.7 in the first quarter amid the “solid” performance of its core business drivers.

“Total customers rose to 18.9 million, up by 7.6% year on year. This provides a broader base to support lending and to further enable cross-sell and upsell.”

UnionBank’s net interest income stood at P16.76 billion, with interest income at P21.21 billion and interest expense at P4.45 billion.

It said this was supported by continued growth in its loan book. Net loans and other receivables stood at P553.57 billion at end-March.

“Consumer lending, which made up 60% of the bank’s total loan portfolio, remained strong, particularly in unsecured products, which grew 19.2% to P153.1 billion,” UnionBank said.

“Institutional loans also expanded, increasing by 11.5% to P223.7 billion.”

Net interest margin rose by 34 basis points to 6.7%.

This was backed by the 7.8% growth in its current account, savings accounts (CASA), which came amid “the continued deepening of transaction banking relationships established in 2025.”

Deposit liabilities stood at P751.72 billion as of March.

Meanwhile, other income stood at P4.97 billion in the first three months.

“Fee income remained stable with a fee income-to-assets ratio of 1.3%, more than twice the industry average. Growth continues to be driven by higher digital transaction volumes, alongside increased contributions from wealth management and bancassurance,” UnionBank said.

Operating expenses stood at P12.48 billion. Loan loss provisions were at P4.499 billion in the period, down by 17.9% year on year but up by 19.1% from the fourth quarter.

“Asset quality strengthened as portfolios continue to season, particularly in the unsecured segment,” UnionBank said.

Key subsidiaries also demonstrated improvements, supported by lower credit costs after addressing legacy credit exposures in 2025 and further enhancements in risk controls.”

The bank’s total assets were at P1.18 trillion at end-March, while total capital funds stood at P202.096 billion.

UnionBank shares climbed by 20 centavos or 0.81% to finish at P25 each on Monday. — A.M.C. Sy

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