Facebook Instagram Linkedin X Youtube
Home Blog Page 219

Peso sinks back to P58 level on Middle East conflict

A US five-dollar note is seen in this illustration photo, June 1, 2017. — REUTERS/THOMAS WHITE

THE PESO slid back to the P58 level on Monday as the widening conflict in the Middle East drove safe-haven demand for the dollar and drove up oil prices, stoking inflation worries.

The local unit fell by 53.5 centavos to close at P58.20 against the greenback from its P57.665 finish on Friday, data from the Bankers Association of the Philippines showed.

This was its worst close in nearly three weeks or since Feb. 11’s P58.29. This was also the peso’s largest single-day drop since Sept. 25, 2025, when it lost 63.9 centavos.

The currency opened Monday’s trading session weaker at P57.85 per dollar, which was already its intraday high. Its worst showing for the day was its finish of P58.20 versus the greenback.

Dollars traded jumped to $2.24 billion from $1.504 billion on Friday.

“The dollar-peso closed higher over the escalating war in the Middle East following the recent drone attacks,” the first trader said in a phone interview.

“The peso weakened significantly amid safe-haven demand by market participants following US’ offensive on Iran and the death of the Iranian Supreme Leader,” the second trader said in an e-mail.

For Tuesday, the first trader said the peso could weaken further and trade between P58.10 and P58.50, while the second trader sees it ranging from P58.10 to P58.35.

“The local currency might remain weak as the spike in global crude oil prices could also exert downward pressure on the peso,” the second trader said.

Oil prices surged, the dollar jumped and shares slid on Monday as military conflict in the Middle East looked set to last for weeks, threatening to upend a global economic recovery and perhaps reignite inflation, Reuters reported.

Brent jumped around 10% to $79.90 a barrel, though it had briefly topped $82.00 at one stage, while US crude climbed 8.2% to $72.64 per barrel. Safe-haven gold rose 2.6% to $5,413 an ounce.

Israel launched new airstrikes targeting Tehran and expanded its military campaign to include attacks on Iran-backed Hezbollah militants in Lebanon on Monday, as US President Donald J. Trump signaled the US-Israeli military assault on Iranian targets could continue for weeks.

Meanwhile, Iran’s state media said a new wave of missiles was being launched from central parts of Iran towards “enemy locations.”

All eyes were on the Strait of Hormuz, through which around a fifth of the world’s seaborne oil trade flows and 20% of its liquefied natural gas. While the vital waterway has not yet been blocked, marine tracking sites showed tankers piling up on either side of the strait, wary of attack or maybe unable to get insurance for the voyage.

A prolonged spike in oil prices would risk reigniting inflationary pressures globally, while also acting as a tax on business and consumers that could dampen demand.

In currency markets, the euro and pound were each down around 1% at $1.1704 and $1.3347 respectively.

The dollar was by far the biggest gainer, rallying even on safe havens such as the Swiss franc and Japanese yen. It climbed 0.6% on the Japanese yen and 0.5% on the Swiss franc to ¥157 and 0.7733 francs.

The dollar’s traditional role as a global safe-haven currency had been challenged by erratic US policymaking. The energy moves were also relevant for currency markets given the US is a net energy exporter while both Europe and Japan rely heavily on imports. — Aaron Michael C. Sy with Reuters

From intent to empowerment in the workplace

FREEPIK

As more workplaces claim inclusivity as a core part of their mission and objectives, more important is the need to monitor, track, and evaluate how exactly inclusivity is achieved. In my previous article on male allyship published on Jan. 13, I mentioned that allyship means holding oneself accountable, tracking representation, setting measurable goals, and embedding inclusivity into policies and structures.

Having discussed the intent behind male allyship and its importance in the workplace, this article elaborates on the accountability necessary to institutionalize allyship through policies that empower women in the workplace. Moving beyond intent, what matters more is the execution and implementation of gender-inclusive and equitable policies, and how these can best assure long-term success.

‘BEYOND LIP SERVICE’
Intent must be translated into concrete and actionable policies and should go beyond “lip service.” Inclusivity is not just a well-meaning whim but should be an institutional blueprint and foundation with KPIs, diagnostics, reporting, and monitoring processes set in place. These are steps to guarantee that inclusivity becomes not just a buzzword, but that workplace gender equality and diversity, equity, and inclusion (DEI) are embedded into the corporate sustainability and business strategies.

Enhancing workplace gender equality and sustainability will require reporting guidelines and setting specific targets and commitments. According to a 2022 Census on Women in Executive Leadership Teams in Philippine Publicly Listed Companies (PLCs) published by the Philippine Business Coalition for Women Empowerment (PBCWE), only 2% of large firms and none of the small and medium-sized firms have set specific gender diversity targets. Most PLCs have broad diversity policies; however, these need to be complemented by concrete targets which are reported and publicized.

PBCWE is engaged with the Securities and Exchange Commission (SEC) to make sustainability reporting, especially gender reporting, relevant as we continue to work together in building a business case for Workplace Gender Equality (WGE) in the Philippine context. PBCWE’s advocacy work with the SEC has influenced two indicators that are now part of the data that companies are required to submit to the SEC, namely gender composition at all job levels and policies, and formal processes to address workplace harassment, discrimination, and bullying. The existence of formal metrics to measure gender inclusivity provides companies a basis to empower women and ensure gender equity and parity.

Furthermore, diagnostic tools, such as the Gender Equality Assessment, Results, and Strategies (GEARS) mentioned in my earlier article is a key aspect of institutionalizing policies. The assessment and training that GEARS offer facilitates the strategic alignment of gender equality with business priorities, leadership accountability, and gender pay equity.

Male allyship and the intent to support women can and should lead to the implementation of gender-inclusive policies, such as flexible workplace arrangements, comprehensive parental leave, and initiatives to boost women’s representation in leadership positions. Male allyship could be embedded in the training and workshops companies provide their employees on DEI. GEARS can assist companies in translating intent in transforming their workplaces to be gender-inclusive.

‘HAVING A SEAT AT THE TABLE’
With gender-inclusive policies in place, what is the next step? How do we make sure that these policies are actually being implemented and are helpful to women and the marginalized?

One good practice is to give women a “seat at the table” through appointments in executive leadership positions and boards where strategic decisions are made. The presence of women in leadership roles will also ensure that established policies are monitored and implemented.

While many women have broken glass ceilings, leadership positions are still dominated by men and their voices heard. Thus, male allyship is critical as they can use their privilege and roles to support women to rise and thrive creatively and economically.

It is time to move beyond inclusivity and gender equality as mere platitudes. Male allyship and intent are starting points. We have tools at our disposal to translate intent into impact; however, the use of such tools should be institutionalized. Allyship, whether male or female, also means embedding inclusivity so that women can secure a seat at the table. Women have proven that they can “make waves” even with the little that they are given. We must act now to ensure long-term support for them is realized. This year’s International Women’s Month theme of “Give To Gain” reminds us that we, who are in positions of power in the workplace, have the authority to give women a place of their own. Women’s gains are not just theirs, but of all of us. What else can we give to gain gender equality in the workplace?

 

Ma. Aurora “Boots” D. Geotina-Garcia is a member of the MAP Diversity, Equity & Inclusion Committee and the MAP Education Committee. She is founding chair and president of PhilWEN and chair of the Governing Council of the Philippine Business Coalition for Women Empowerment. She was the first female chair of the Bases Conversion & Development Authority. She is president of Mageo Consulting, Inc., a corporate finance advisory and consulting firm.

map@map.org.ph

magg@mageo.net

PSE net income climbs 1.4% on higher operating revenue

PHILIPPINE STAR/EDD GUMBAN

THE Philippine Stock Exchange, Inc. (PSE) posted a full-year 2025 net income of P1.22 billion, up 1.4% from P1.21 billion in 2024.

Operating revenues more than doubled to P2.84 billion from P1.40 billion, driven by the consolidation of Philippine Dealing System Holdings Corp. (PDS) into its financials. This included gains from elevated trading, capital raising, and depository income.

“Despite the negative impact on investor sentiment of political and economic headwinds, our markets still had commendable results. As the government continues to address corruption issues, we are hopeful that investor confidence in the market will be restored,” PSE President and Chief Executive Officer Ramon S. Monzon said in a statement on Monday.

Both PSE and Philippine Dealing & Exchange Corp. (PDEx) recorded higher trading activity, with PSE’s total value turnover up 19.1% to P1.78 trillion and PDEx’s trading value rising 60.8% to P15.91 trillion.

Listing revenues rose 39.8%, with listing fees reaching P764.50 million from P546.95 million. The PSE raised P144.13 billion in capital through two initial public offerings (IPOs), seven follow-on offerings, one stock rights offering, and 14 private placements, while the PDS oversaw 51 corporate bond listings totaling P454.18 billion.

The surge in revenue was offset by an 80.1% decline in other income to P166.20 million from P836.32 million, mainly due to the absence of 2024’s one-time gains on remeasurement and associate earnings. Total expenses also rose 62.6% to P1.40 billion from P861.67 million, driven by integration costs.

Mr. Monzon expressed cautious optimism about listing and trading prospects, noting a bullish start to 2026 with expectations of stronger earnings and dividends to boost market activity.

“However, geopolitical tensions in the Middle East have prompted investors to be on risk-off mode again, and the uncertainty from this recent development may linger for some time. Regardless of these headwinds, we will continue to implement our strategic plan, which includes developing products and pursuing sustainability initiatives to support interest in the market. We likewise have upcoming technology upgrades to ensure the operational efficiency and resiliency of our platforms,” he said.

He added that on the regulatory front, the PSE hopes to see positive effects from reforms in real estate investment trust and IPO float requirements, which could encourage more listings and attract additional investments.

The PSEi hit a 14-month high on Feb. 26, closing at 6,611.24 the next day, marking a 9.2% year-to-date gain.

Daily average value turnover rose 3.5% year to date to P7.59 billion, while foreign investors shifted to net buying of P25.31 billion from last year’s net selling of P14.52 billion. — Alexandria Grace C. Magno

Viral ice hockey romance Heated Rivalry returning in 2027

HUDSON WILLIAMS and Connor Storrie in a scene from Heated Rivalry.

LOS ANGELES — The second season of the viral, boundary-pushing ice hockey drama Heated Rivalry is officially on the way.

Show creator Jacob Tierney revealed on CBS Mornings last week that the fan-fueled phenomenon will return in April 2027.

Mr. Tierney shared that the writers’ room is already in full swing and cameras are set to roll in August.

“There will be more Heated Rivalry on your TVs, like, truly, as soon as humanly possible,” he told host Gayle King.

Based on Rachel Reid’s beloved book series, the Canadian drama exploded across social media for its electric mix of hockey intensity and heartfelt LGBTQ+ romance.

The story tracks rival hockey players Shane Hollander of the fictional Montreal Metros, played by Hudson Williams, and Ilya Rozanov of the Boston Raiders, portrayed by Connor Storrie.

Their simmering animosity and unexpected attraction have become a signature part of the show’s appeal, helping cement Heated Rivalry as a landmark in LGBTQ+ sports storytelling.

Mr. Tierney emphasized the importance of crafting a “faithful adaptation,” a commitment many fans credit for the show’s authenticity and emotional punch.

Since its debut in 2025, the series has blended bold romantic sequences with high-energy gameplay, captivating viewers far beyond traditional hockey audiences and even encouraging some athletes to come out as openly gay.

Season 2 will continue to stream on Canada’s Crave and air on HBO Max in the United States. — Reuters

South Luzon remains key to industrial expansion — Colliers

LAGUNA TECHNOPARK — TECHNOPARKS.COM.PH

(Conclusion)

Last week, we discussed the rising competitiveness of Central Luzon as an industrial hub, particularly Pampanga, Bulacan, and Tarlac. This piece now highlights South Luzon’s prominence as the most competitive industrial hub in the Philippines.

Southern Luzon has long been a major growth driver of the Philippine economy. The region is among the largest contributors to the country’s annual economic output, accounting for about 15% of gross domestic product (GDP) in 2024.

Improving infrastructure connectivity has led to an influx of large multinational exporters and manufacturers, further strengthening Southern Luzon’s viability as a major industrial and manufacturing corridor.

STABLE INDUSTRIAL VACANCY
Industrial vacancy in the Calaba (Cavite-Laguna-Batangas) corridor fell to 11.4% in H2 2025 from 16.9% in H1 2025 due to stable demand. Over the past 12 months, firms that took up industrial space included manufacturers of equipment, electronics, air conditioners, air fresheners, as well as printing and packaging solutions.

The region also hosts several modernized and PEZA-accredited facilities, which remain key considerations for some high-value manufacturers and e-commerce firms. Shopee Xpress (SPX) leased its second warehouse facility with Robinsons Logistix (RLX) in Calamba, Laguna.

The Grade A warehouse features flexible layouts and state-of-the-art specifications designed to support high-volume and time-sensitive operations. We believe the continued growth of the country’s digital economy, alongside the influx of high-value manufacturing investments, should sustain demand for these facilities in Southern Luzon.

MORE MANUFACTURING INVESTMENTS ON THE HORIZON
Data from the Philippine Statistics Authority (PSA) showed that Region IV-A, or Calabarzon, received the largest foreign investment allocation of P100.4 billion ($1.7 billion) in 2025, equivalent to 37% of total approved pledges during the period. We believe these pledges should support industrial land and warehouse space take-up in the Calaba corridor once projects materialize.

Fujifilm will establish a 500-square-meter (sq.m.) Circular Manufacturing Center (CMC) within Carmelray International Business Park in Laguna, which will produce remanufactured multifunction printers (MFPs). Other major manufacturing investments in Laguna include Samsung Electronics’ $1-billion expansion project in Calamba Premiere International Park, which is expected to generate at least 3,000 high-technology jobs. Panasonic has also begun construction of a P3-billion ($52 million) factory in Ayala Land’s Laguna Technopark. The 37,000-sq.m. facility will produce refrigerators and washing machines.

In Batangas, Taiwan’s Aromate Industries is investing $4.3 million to construct a 15,300-sq.m. facility in Aboitiz InfraCapital’s LIMA Estate. Singapore-based MNEX will set up a P180-million ($3 million) plant in Science Park of the Philippines’ (SPPI) Light Industry and Science Park 3 (LISP 3), which will manufacture molded parts for various industries.

In Cavite, ASE Co. Ltd. plans to expand by 26,000 sq.m. in Gateway Business Park. The company manufactures electronic and semiconductor products. Several firms are also expanding within the Cavite Economic Zone, including Acuvex Corp., which specializes in jigs and fixtures; CIXIN Precision, which will produce heatsink products, CNC components, electroplating, and surface treatments; and Philippine Newly Ever Rise, which will manufacture and assemble transformers, power supplies, batteries, robotics products, solar systems, and electric vehicle parts.

The Calaba hub continues to attract global manufacturing players due to its highly skilled workforce, improving infrastructure, and the availability of master-planned communities developed by national property firms that offer expansive industrial spaces.

In our view, further improvements in business registration systems and the consistent implementation of business policies could further enhance the region’s attractiveness to high-value manufacturers.

 

Julius Guevara is senior director and head of Capital Markets and Investment Services, while Joey Roi Bondoc is director and head of Research at Colliers Philippines.

A crisis lurks as Asians bring money back home

A person shows US dollars at a currency exchange stall in Manila, Philippines, Oct. 21, 2022. — REUTERS

By Shuli Ren

LAST MAY, the Taiwan dollar led historic rallies in Asia amid speculation that President Donald Trump would ask exporting nations to lift the value of their currencies as part of trade deals with the US.

The daily moves were so sharp that some investors said they had the feel of the late 1990s Asian Financial Crisis, when capital flight sank currencies from Thailand to South Korea. The big difference in 2025, though, was that the traffic was the other way around — waves of one-sided selling sank the greenback.

And it may get even weaker yet. This year, the threat of a disorderly depreciation of the dollar remains, even after the Supreme Court diminished Trump’s ability to use tariffs as trade negotiation tools. The catalyst may be different, but the outcome will likely be the same: North Asia’s dollar earnings are coming home.

South Korea’s exchange rate, for one, should be a lot stronger. Historically, the Kospi stock index and the won were largely in sync, simultaneously selling off during previous crises. But lately, that relationship has broken down — the Kospi’s blistering rally has been met with a won depreciation.

One explanation is capital outflows. Even though the country’s exports are at a record high, retail investors have been wading into the Nasdaq. Last year, they bought $32 billion in US stocks on a net basis, also a historical peak.

But will this outflow continue? Koreans, who for many years stayed away from domestic blue-chip stocks because of the Kospi’s chronic underperformance, are starting to purchase homegrown tech companies. If they offload their US holdings to fund local investments, the repatriation might cause a sharp appreciation of the won.

In the last two years, global trade imbalances have been on the rise, led by China, South Korea, and Taiwan. US Big Tech’s AI infrastructure built-out underpinned rising demand for chips from Samsung Electronics Co. to SK Hynix, Inc. and Taiwan Semiconductor Manufacturing Co. Meanwhile, a weak deflationary economy prompted Chinese exporters to seek better customers abroad. As a result, the region’s current account surplus as a percentage of their economy is ticking up again.

Until recently, the money that North Asia’s exporters earned was recycled into US assets. For instance, as China’s trade surplus ballooned, rising from roughly $820 billion in 2023 to $1.2 trillion last year, a vast pool of companies’ overseas sales were parked in Hong Kong, where dollar deposits grew by about $320 billion. Dollar-denominated money-market accounts earned higher interest.

But now that the S&P 500 has stopped delivering handsome returns and the greenback is languishing, some treasurers are converting their dollar holdings, betting on a strengthening of their home currencies instead. China’s exporters, for instance, are already doing this.

Last week, the yuan notched its longest winning streak against the greenback since 2010. It’s a sign that Beijing is warming up to the idea of a stronger renminbi. The government may have realized the glaring imbalance of its own books: A record trade surplus only increases vulnerability to US capital markets and the dollar.

During the Asian Financial Crisis, a sudden stop in capital inflows exposed how unsustainable some of the current account deficits were. Now, the tables have turned. The US has become the deficit nation. According to Goldman Sachs, just to stabilize its net international investment position — a measure of a country’s liabilities to the rest of the world — Washington has to halve its current account deficit to 2% of gross domestic product.

Going forward, repatriation, or the Sell America narrative, will be a key theme. For currency traders, the question is whether it might result in an avalanche. Buckle your seatbelt when that happens.

BLOOMBERG OPINION

Security Bank net profit rises to P11.63B

BW FILE PHOTO

SECURITY BANK Corp. posted a net income of P11.63 billion in 2025 as saw double-digit revenue growth.

This was 3% higher than its 2024 profit of P11.24 billion “as the bank balanced revenue growth with higher credit provisioning to reinforce balance-sheet resilience amid a challenging macroeconomic environment,” it said in a disclosure to the stock exchange on Monday.

Return on assets was at 1%, down from 1.12% in 2024. Return on equity also declined to 7.87% from 8.11%.

“We are seeing the benefits of the strong foundations we have built. Following a period of intentional investment and operating in a more challenging macro environment, we are refocusing on disciplined growth, delivering strong revenue momentum, improving asset quality, and maintaining a resilient balance sheet. This reflects our BetterBanking approach, focused on long-term value and serving our customers and all stakeholders responsibly,” Security Bank President and Chief Executive Officer Victor Lee Meng Teck said.

The bank’s revenues grew by 22% year on year to P66.9 billion in 2025, backed by its core banking businesses and diversified income streams.

Net interest income rose by 15.4% year on year to P50.457 billion from P43.722 billion, “supported by healthy asset yields and disciplined funding.”

This came as interest income went up by 23.44% to P77.528 billion, while interest expense increased by 41.9% to P27.071 billion.

“Full-year net interest margin stood at 4.66%, reflecting sustained margin resilience despite market volatility,” Security Bank said.

Meanwhile, non-interest income surged by 46.9% year on year to P16.5 billion as it saw better foreign exchange, trading, and securities gains.

“Service charges, fees, and commissions totaled P8.9 billion, slightly lower than the previous year due to the one-off bancassurance milestone fee recognized in the first quarter of 2024. Excluding this milestone fee, fee income increased 18% year on year, led by credit cards, bancassurance, payment services, and capital markets activities,” it said.

The bank’s operating expenses went up by 18.9% year on year to P39.325 billion.

Its cost-to-income ratio improved to 58.75% from 60.23%.

“In line with its disciplined risk management approach, the bank increased its provisions for credit and impairment losses and set aside P12.8 billion compared with P6.6 billion a year earlier,” Security Bank said.

Its gross nonperforming loan (NPL) ratio was at 2.89% last year from 2.85% in 2024. NPL reserve coverage stood at 85.61%.

Net loans grew by 3% year on year to P696.638 billion at end-2025. The bank said this came amid continued growth in its retail lending segment.

“Retail loans expanded 14% year on year, with auto loans up 24%, credit cards 16%, and home loans 9%. Retail loans now account for 32% of total loans, up from 29% a year ago,” it said.

On the funding side, deposits climbed by 16% to P930.503 billion, low-cost current account, savings account deposits rising by 9% year on year and making up 49% of the total.

Security Bank’s assets stood at P1.19 trillion at end-2025, up 6% from P1.13 trillion in the prior year.

Total equity grew 9% to P154.23 billion.

“Capital ratios remained resilient, with a common equity Tier 1 ratio of 12.33% and total capital adequacy ratio of 13.21%,” the bank said.

Security Bank’s shares went down by P2.85 or 3.86% to P71 apiece on Monday. — BVR

SMIC weighing exit from Atlas Mining

ATLASMINING.COM.PH

SM INVESTMENTS Corp. (SMIC) said it is considering exiting its stake in Atlas Consolidated Mining and Development Corp. to prioritize investments in renewable energy.

SMIC President and Chief Executive Officer (CEO) Frederic C. DyBuncio said the company is evaluating whether to divest from the listed miner to focus on businesses that align more closely with the group’s core operations.

“That’s something which will be discussed at the board level, whether we want to take out Atlas from the portfolio or not. But that’s something which could happen in the near future,” he said during a briefing on Monday.

The SM Group currently holds a 34.05% stake in Atlas Mining, while 42.14% is controlled by the Ramos Group, according to the mining company’s website.

Mr. DyBuncio added that SMIC is moving toward a mining-free portfolio while accelerating growth in renewable energy.

“Mining is actually an outlier because all the other businesses have synergy with the entire group. It’s the mining that is more or less outside the area,” he said.

Last year, SMIC announced plans to expand its renewable energy portfolio through new geothermal projects and potential ventures in wind energy.

“We are focused on geothermal energy production, which is baseload and runs 24/7. Production has been doing well, and with a new rig in place, we are building capacity to develop more sites,” Mr. DyBuncio said in an earlier statement. — Vonn Andrei E. Villamiel

Singer Olivia Dean wins big at BRIT Awards

MANCHESTER, England — Singer Olivia Dean was the big winner at Saturday’s BRIT Awards, picking up four prizes at Britain’s pop music honors.

Ms. Dean, who alongside singer Lola Young led nominations with five nods each, triumphed in the first award of the night, song of the year, for “Rein Me In,” a collaboration with rocker Sam Fender.

The 26-year-old, known for her soulful voice and music that blends R&B, pop and neo-soul, won pop act, artist of the year and album of the year for her second studio album, The Art of Loving.

“Making this album has changed my life,” said Ms. Dean, who earlier this month won best new artist at the Grammys. “This album is just about love and loving each other in a world that feels lovelessness right now.”

Mr. Fender also won alternative/rock act, while “Messy” singer Ms. Young won breakthrough artist.

WOLF ALICE SINGER THANKS PUBS, CLUBS
Rock band Wolf Alice won group of the year. In her acceptance speech, singer Ellie Rowsell thanked “all the pubs, clubs and grassroots venues across the country where we quite literally learned to play our instruments and write our songs.”

Organizers announced several winners ahead of Saturday’s ceremony, with Noel Gallagher named songwriter of the year and PinkPantheress crowned producer of the year. At 24, she is the youngest ever and the first woman recipient of the prize.

Ozzy Osbourne, the late frontman of heavy metal band Black Sabbath, was honored with a lifetime achievement award. Known to fans as “The Prince of Darkness,” Mr. Osbourne died in July aged 76, around two weeks after Black Sabbath’s emotional farewell gig.

“Ozzy was authentic, he was gifted, totally unpredictable, a wild man, he was a true artist,” Mr. Osbourne’s wife, Sharon Osbourne, said before singer Robbie Williams performed a musical tribute.

Among the international category winners was singer Rosalia, who won international artist of the year.

“I would love to share this with all my peers who also make music in Spanish,” Rosalia said. “Let’s keep celebrating the otherness, let’s keep celebrating different music, different cultures, different languages.”

This year’s BRITs took place in the northern English city of Manchester, the first time the awards ceremony was held outside of London. — Reuters

Palafox pushes smart cities plan, partners with Elsal Ventures

STOCK PHOTO | Image from Freepik

ARCHITECTURE and urban planning firm Palafox Associates said it remains optimistic about advancing its smart cities initiative despite governance and economic challenges.

“We’re busier this year than before the pandemic at the Palafox Associates and Palafox Architecture, which is a very pleasant surprise, despite all this negative news about our country,” Palafox Associates Founder and Managing Partner Felino A. Palafox, Jr. said in an interview with BusinessWorld.

“To me, if we address corruption in our economy, climate change, inequality, investments, and infrastructure incompetence, we should be in the top 10 economies of the world,” he added.

In an earlier statement, Mr. Palafox stressed the need to address inefficient land use, strengthen urban planning, and establish smart cities in the countryside as part of a long-term vision for national development by 2050.

He cited a previous projection by Goldman Sachs that the Philippines could become the world’s 16th largest economy by 2050.

The outlook aligns with Palafox Associates’ “Philippines 2050: A First-World Country, A First-World Economy” campaign, which envisions the country attaining first-world status by mid-century.

“Despite all our challenges, we have three foreign investors, and then maybe without the challenges, we can probably have more,” he said, adding that foreign investors are increasingly selective in choosing Filipino partners they consider trustworthy.

Details of the agreements with the three foreign investors were not disclosed due to non-disclosure arrangements.

Mr. Palafox said one project is advancing, while the other two are in the master planning stage.

Palafox Associates and real estate and land investment facilitation firm Elsal Ventures signed a memorandum of agreement on Feb. 2 to collaborate on integrated development projects across the Philippines.

Under the partnership, Palafox Associates will contribute its expertise in master planning, sustainable design, and resilient urban development, while Elsal Ventures will provide support in land aggregation, investment facilitation, and real estate sourcing.

The companies said the collaboration aims to advance responsible and future-ready projects.

Mr. Palafox highlighted the role of strategic collaboration in city-building initiatives.

“Partnerships like this allow us to align design excellence with smart land development, ensuring projects are not only profitable, but sustainable, inclusive, and resilient,” he said.

Elsal Ventures Chairman and Chief Executive Officer Ernesto L. Salas also expressed optimism about the agreement.

“This will be the first formal partnership, because it is a perfect fit. He can provide the land, design the land, and provide investors from the Middle East or even locals. Then, we can provide the land on the scale he wants,” Mr. Salas told BusinessWorld. — Alexandria Grace C. Magno

On the Iran war, energy, and economic implications

The US-Israel joint bombings of Iran are US President Donald Trump’s second regime change project this year. Venezuela’s President Nicolas Maduro was removed in early January, and now Iran’s supreme leader, Ayatollah Ali Khamenei, has been killed.

The US has military bases, facilities, and naval support in Middle East countries with huge oil-gas reserves — Saudi Arabia, Kuwait, Qatar, the United Arab Emirates (UAE), and Bahrain.

The US has been involved in several invasions and regime change projects in Middle East countries that have plenty of oil-gas reserves. There was the Iraq invasion in 2003, the airstrikes then partial occupation of Syria in 2014, and the bombing of Iran in 2025 and 2026.

In North Africa near the Middle East, the US bombing of Libya in 2011 also led to regime change. Last December, the US bombed Islamic militants in Nigeria.

When it comes to oil reserves, Iran has second largest in the Middle East and fourth largest in the world with 158 billion barrels. When it comes to gas reserves, Iran has the largest in the Middle East and second largest in the world with 32 billion cubic meters (bcm), trailing Russia.

Looking at the oil reserves/production (R/P) ratio, or the number of years before the reserves are depleted if current rates of production both for domestic use and exports (if any) continues, Iran is fourth in the world with 140 years, behind Libya, Venezuela, and Syria — the US’ R/P ratio is only 11 years.

Then there is the gas R/P ratio, where Iran is third in the world with 128 years, behind Iraq and Venezuela with 330+ years each. The US only has 14 years.

Looking at East Asia’s R/P ratios, China has only 18 years for oil and 43 years for gas. Of our neighbors, Vietnam has 58 years in oil and 74 years in gas, Malaysia has 12 years for both oil and gas, and Indonesia has nine years for oil and 20 years for gas (see Table 1).

The US continues its military involvement in the Middle East to pursue its oil-gas security interests. Regime change in Iran is part of this long-term goal.

The Philippines gets its oil mainly from Saudi Arabia and the UAE, two countries that also host many Overseas Filipino Workers (OFWs) especially in Riyadh and Dubai. But the oil coming from both those countries passes through the Strait of Hormuz and now the Strait is technically closed as cargo ships are avoiding it for fear of Iranian missiles.

THE US, CHINA, AND PHL
Now let’s consider the continuing economic and military rivalry between the US and China. Looking at the Philippines’ merchandise trade, especially imports, we see that China is gaining while the US is losing market share in the Philippines. The share of our total imports from China keeps rising, from 21% in 2022 to nearly 29% in 2025, and 29.2% in January 2026. In contrast, the US share decreased from 6.5% in 2022 to 6.1% in 2025, and down to 5.9% in January 2026 (see Table 2).

The overall impact of the ongoing US-Iran war will be negative economically. World prices for oil, gas, and petrochemical products (plastic, paint, fertilizer…) will increase, leading to higher overall inflation. Which will then adversely affect GDP performance as people tend to spend less when inflation is high.

I can think of two (among many) things that the Philippines can do, especially in the short-term.

One, do a partial reduction of the oil excise tax, to be compensated by a reduction of government spending like the subsidies and freebies that were created during the 2020 lockdown, and which continue until today. The budget deficit and annual borrowings should not increase when there is a partial tax cut.

Two, we should source more oil and gas from our neighbors in Asia no matter how small initially. After all, Brunei, Malaysia, Indonesia, Vietnam are fellow ASEAN members.

 

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 nets P9.94 billion in 2025

BW FILE PHOTO

UNION BANK of the Philippines (UnionBank) saw its net income drop by 16.67% in 2025 due to one-time costs at the subsidiary level that were partly offset strong revenues from the parent.

The bank’s attributable net income went down to P9.94 billion last year from P11.93 billion in 2024, it said in a disclosure to the stock exchange on Monday.

This translated to a return on average capital funds of 5% and a return on average resources of 0.9%.

UnionBank noted that its earnings for the second half surged by 108% from the first semester.

“Performance was driven primarily by the parent bank, including the acquired Citi consumer business, which continued to gain momentum during the year. Record topline revenues at the parent bank helped offset one-time costs, largely booked at the subsidiary level, as the bank took decisive actions to clean up and strengthen its balance sheet and position it for future growth,” it said.

“In 2025, we took deliberate steps to strengthen our balance sheet and lay the foundation for profitable, sustainable growth. Building on the strength of our core franchise, we are doubling down on our key competitive advantages in 2026. We expect continued improvement in topline growth and NIM (net interest margin), supported by an expanding customer base and a growing stream of recurring revenues,” UnionBank President and Chief Executive Officer Ana Maria Aboitiz-Delgado said. “As we move into 2026, our focus remains on disciplined growth, customer‑centric innovation, and delivering long‑term value for our shareholders.”

The bank’s net revenues stood at P83.2 billion in 2025.

“This growth was supported by an expanding customer franchise, with total customers rising to 18.6 million — up 9.7% year on year.”

UnionBank net interest income increased by 10.72% to P64.25 billion in 2025 from P58.03 billion the prior year, as interest income inched up by 0.74% to P84.36 billion while interest expense dropped by 21.78% to P20.11 billion from P25.71 billion.

As a result, net interest margin was at 6.4%, up from 6% in 2024.

Meanwhile, other income dropped by 4.28% to P18.98 billion from P19.83 billion amid lower trading gains and miscellaneous income. But fee income remained strong, with its fee income-to-assets ratio at 1.3%, more than twice the industry average, UnionBank said.

“Fee growth was driven by higher digital transaction volumes, including bills payments, funds transfers, interchange, and other card-related fees across the bank’s larger and more engaged customer base.”

Total operating income was at P62.07 billion, up from P59.95 billion in the prior year.

Meanwhile, the bank’s other expenses increased by 8.15% to P47.87 billion from P44.27 billion.

“Excluding one-time items, total cost growth would have been at 5%. This reflects the bank’s disciplined efforts to drive cost efficiency and realize the benefits of the bank’s digitization initiatives,” UnionBank said.

The bank set aside credit loss provisions amounting to P21.16 billion in 2025, up by 18.14% from P17.91 billion in 2024.

UnionBank’s net loans and receivables stood at P537.68 billion last year, rising from P522.66 billion in 2024.

“The parent bank’s unsecured consumer loans grew by 18% to P150.8 billion, driven by digital acquisition and cross-selling initiatives. Consumer loans accounted for 61% of the bank’s total loan portfolio, well-diversified across credit cards, mortgage loans, personal and salary loans, and vehicle loans.”

Its nonperforming loan ratio declined by 37 basis points to 6.8%, with provision coverage increasing to 70.8% from 58.2%. It said that its unsecured loans are “more than fully covered.”

“Credit costs rose by 18% year on year to P21.2 billion; however, asset quality indicators improved over the course of the year,” UnionBank said.

“Transaction banking volumes also increased during the year, contributing to a 12% year-on-year growth in low-cost CASA (current account, savings account) deposits. This improvement in funding mix helped reduce overall funding costs and supported margin expansion.”

Total deposits increased by 15.4% to P267.019 billion at end-2025 from P231.378 billion in the prior year.

UnionBank’s resources expanded to P1.16 trillion in 2025 from P1.145 trillion in 2024.

Total capital was at P202.06 billion, up from P195.21 billion in the prior year.

“Capital ratios remain well above regulatory limits, providing sufficient buffer to support future growth, with common equity Tier 1 ratio at 15.03% and capital adequacy ratio at 15.86%.”

UnionBank’s shares gained five centavos or 0.19% to close at P26.70 each on Monday. — A.M.C. Sy

1...218219220...14,237Page 219 of 14,237
ADVERTISEMENT
ADVERTISEMENT
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin X Youtube