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Andresons Group raises stake in Emperador

EMPERADORBRANDY.COM

THE ANDRESONS GROUP, Inc. has increased its stake in listed brandy and whisky maker Emperador, Inc. after acquiring P160 million worth of shares.

In a regulatory filing on Monday, Emperador said the Andresons Group, an affiliate of the company, purchased 10 million Emperador shares at P16 apiece on June 20.

Following the transaction, the Andresons Group now holds a 0.86% stake in Emperador, equivalent to 135 million shares. Both companies are controlled by tycoon Andrew L. Tan.

In May, the Andresons Group acquired 125 million Emperador shares through five separate transactions.

This year, Emperador has allocated P4 billion in capital expenditures, mainly for the ongoing expansion of its Dalmore distillery in Scotland, which is scheduled for completion in the second half.

The company is also doubling the size of its whisky maturation complex at the Invergordon distillery to 92 hectares from 45.4 hectares. The expansion will enable the facility to store an additional 1.5 million casks of maturing whisky.

For the first quarter, Emperador’s attributable net income rose by 6.5% to P1.85 billion, as revenues and other income increased by 0.6% to P13.21 billion.

On Monday, Emperador shares fell by 1.52% or 24 centavos to close at P15.50 apiece. — Revin Mikhael D. Ochave

A story of hope and tenacity in Superman

(L-R) David Corenswet, Rachel Brosnahan, director James Gunn, and co-producer Peter Safran visit Manila for the first stop of the Superman global promotions tour.

Iconic superhero gets new movie in July

THE 2025 iteration of the beloved comic book/movie/TV character Superman — this time played by David Corenswet — has him embark on a journey to reconcile his Kryptonian heritage with his human upbringing as Clark Kent.

Superman, which premieres in regular and IMAX theaters on July 9, is produced by Warner Bros. Pictures and DC Studios. It is the first film in DC’s freshly reimagined cinematic universe.

Co-starring in the film are Rachel Brosnahan as Lois Lane and Nicholas Hoult as Lex Luthor. Supporting actors include Edi Gathegi, Anthony Carrigan, Nathan Fillion, and Isabela Merced.

Mr. Corenswet, Ms. Brosnahan, movie director James Gunn, and co-producer Peter Safran kicked off the Superman global promotions tour in the Philippines, speaking to fans on June 19 at the Mall of Asia in Pasay, and to Asia Pacific press on June 20 at the Grand Hyatt Manila in Taguig.

BECOMING SUPERMAN
“The gym was the first place I started,” Mr. Corenswet said of his journey to become Superman — a journey that he called “isolating.”

“Whether you’re going to get that extra rep in, or do that extra set, or stay those extra 20 minutes to do your shoulders at the end of a long push day, at that moment, you feel very alone, even while you’re at the gym with other people,” he explained. “And so that was the first moment that I felt like I tapped into a central thing about Superman.”

The film follows the orphaned superhero grappling with the consequences of his mission to save humanity and yearning to find belonging on Earth.

For Mr. Gunn, who served as writer, director, and co-producer, this makes it “a story about humanity, about what it means to be a hero in a world that doesn’t always make it easy to be one.”

“What drew me to this film is Superman’s goodness at heart. He exists in a world that isn’t always kind, and he’s a symbol of hope — not just for the world, but especially for the Philippines. I’m used to writing flawed characters, but Superman is different. He’s not perfect, but he’s a truly good person,” he said.

EVOLVING CHARACTER
Meanwhile, Ms. Brosnahan pointed out that her take on Lois Lane is proof of “how much the character has evolved in the history of comics.”

“One of the first questions I asked James [Gunn] before the audition was, where does she fit into the canon of this character that is so familiar to so many of us?” she said. “And we really talked about the importance of her journalism.”

In Superman, Lois Lane balances her role as a love interest and as a superhero in her own right. This meant the actress had to speak with a lot of journalists and do her research on what would make one tick.

“Like Superman, she’s not knocked off balance easily. She can logic her way around just about anything. She’s 10 steps ahead of everyone else — and then along comes this thing she couldn’t have seen coming and it totally knocks her off her feet,” Ms. Brosnahan said.

LOVE OF THE COMICS
As for what longtime Superman fans can expect from the movie as a whole, Mr. Gunn shared that it is built on his own love of the comics as a child.

“I started reading the comics when I was around three or four years old. With this movie, I wanted to see the Superman I fell in love with from the comic books,” he said.

“I wanted to create that feeling I had as a kid, but also a version of Superman grounded in real stakes — real people who have issues and problems in relationships, and who could change themselves.”

Superman premieres in regular and IMAX theaters in the Philippines on July 9. — Brontë H. Lacsamana

Seeing opportunities beyond global economic uncertainties

CRECENCIO I. CRUZ

At the open forum of the recent Annual Stockholders’ Meeting of SM Investments Corp. held on April 30 at the Conrad Hotel in SM MOA, I was asked what I believed to be question of the day, if not the question of the year: “What would be the effects of the US tariffs on the company?”

I understood the genuine concern as the ripple effects of the new US policy were being felt on a global scale, not sparing even their staunch allies like the Philippines. It was important to analyze its possible repercussions against the backdrop of the Philippines’ own economic structure in recent years, and to understand not only how a company like SM can weather the headwinds of such a policy but also why the Philippines might be in a better position to rise up to the challenge.

The Philippine economy continues to post sound macroeconomic fundamentals in terms of continued GDP (Gross Domestic Product) growth, declining inflation and robust demand that is supported by resilient remittances.

The good news is inflation has been on a steady decline. The last figure was 1.4% in April from 1.8% in March. Notably, this is the lowest inflation rate since November 2019, which was 1.2%, thus bringing the national average inflation rate in the four-month period to 2%.

If we look closely at the structure of the economy, consumption accounts for over 70% of GDP. Manufacturing accounts for less than 20% of GDP. Trade with the US accounts for 17% of the Philippines’ total goods exports. A large part of the country’s dollar earnings come from services, like business process outsourcing and remittances, which are not subject to goods tariffs. This structure gives us a certain degree of protection, making us less vulnerable. We may be less open than other countries, but in this current environment, it provides us some insulation from potential adverse effects coming from external developments.

At SM, we remain conscious that the environment is changing and we should be alert to the changes, both in terms of what is happening on the trade side as well as what is happening in the markets that we serve.

Generally, to be resilient, we need to be flexible in shifting conditions and protecting long-term growth.

An article by Dunigan O’Keeffe, Karen Harris, and Austin Kimson in the Harvard Business Review pointed out that to succeed in an era of volatility, we need to invest in prediction, adaptability, and resilience. The article explored how vulnerable businesses can become when strategic foresight and operational flexibility are low on the list of priorities for boards and leadership teams. In order to tackle challenges, we need to factor in prediction, or the capability to generate beliefs about the future of our industry with enough precision and conviction to create opportunities for competitive advantage; secondly, adaptability, which means changing the business faster than competitors are changing; and lastly, resilience, where companies with superior resilience survive shocks better than their competitors do. This requires pressure-testing chosen strategies and business models.

In the case of SM, the core businesses — retail, banking, and property — are closely tied to the domestic economy and the everyday needs of Filipinos. These sectors continue to show stability and relevance even as market conditions change.

As consumption patterns continue to evolve, which form part of adaptability, we are positioning ourselves to meet new demands, while preserving the strengths that have anchored our group over the decades.

Our focus remains steadfast: to be agile and disciplined in our finances in order to stay well-positioned for sustainable long-term growth.

 

Amando M. Tetangco, Jr. was named the “MAP Management Person of the Year 2015” by the Management Association of the Philippines. He is the Chair of the SM Investments Corp. or SMIC.

map@map.org.ph

tetangcoa@gmail.com

BTr partially awards Treasury bills at mixed rates

BW FILE PHOTO

THE GOVERNMENT made a partial award of the Treasury bills (T-bills) it offered on Monday with mixed rates as risk sentiment took a hit due to the escalation of the war between Iran and Israel.

The Bureau of the Treasury (BTr) raised just P24.6 billion from the T-bills it auctioned off on Monday, short of the P25-billion plan, even as the offer was more than twice oversubscribed, with total bids reaching P65.47 billion. However, the demand seen was lower than the P74.205 billion in tenders recorded on June 16.

The Treasury partially awarded the three-month tenor as it rejected high bids, it said in a statement. The BTr awarded only P4.4 billion in 91-day T-bills on Monday, well below than the P8-billion plan and even as total tenders for the tenor reached P20.49 billion. The three-month paper was quoted at an average rate of 5.53%, 1.9 basis points (bps) lower than the 5.549% seen in the previous auction, with tenders accepted by the Treasury having yields of 5.45% to 5.555%.

Meanwhile, the government raised P11.2 billion from the 181-day securities it offered on Monday, higher than the P8-billion program, as bids amounted to P25.125 billion. The average rate of the six-month T-bill was at 5.557%, up by 3.4 bps from the 5.523% fetched last week, with accepted rates ranging from 5.522% to 5.588%.

Strong demand prompted the BTr to double its acceptance of non-competitive bids for the six-month T-bill to P6.4 billion, it said.

Lastly, the Treasury raised P9 billion as planned via the 364-day debt papers as demand for the tenor totaled P19.855 billion. The average rate of the one-year T-bill inched down by 0.2 bp to 5.655% from 5.657% previously. Accepted bids carried yields of 5.55% to 5.695%.

At the secondary market before Monday’s auction, the 91-, 182-, and 364-day T-bills were quoted at 5.4714%, 5.6213%, and 5.6842%, respectively, based on PHP Bloomberg Valuation Service Reference Rates data provided by the Treasury.

The T-bill auction saw mixed results for the second straight week despite the latest rate cut delivered by the Bangko Sentral ng Pilipinas (BSP) “largely due to and overshadowed by the recent Israel-Iran war and the surprise US attacks on Iran’s nuclear facilities,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The latest developments in the Middle East caused broad market uncertainty, leading a flight to safe-haven assets like the dollar, and also drove global oil prices higher, which could stoke inflation anew and affect the outlook for monetary easing at home and abroad, he said.

“Despite the rate cut, some are cautious with the inflationary impact of the geopolitical tensions in the Middle East,” a trader likewise said in a phone interview.

On Thursday, the BSP lowered benchmark borrowing costs by 25 bps for a second straight meeting, bringing the target reverse repurchase rate to 5.25%, as expected by 15 out of 16 analysts in a BusinessWorld poll.

It has now reduced benchmark borrowing costs by 125 bps since it began its easing cycle in August last year.

BSP Governor Eli M. Remolona, Jr. said they could deliver at least one more 25-bp cut this year, but noted that they remain watchful of emerging risks and their impact on prices, including the conflict in the Middle East and the uncertainties brought about by trade policy shifts among the world’s largest economies.

The Monetary Board has three more policy meetings this year.

Iran said on Monday that the US attack on its nuclear sites expanded the range of legitimate targets for its armed forces and called US President Donald J. Trump a “gambler” for joining Israel’s military campaign against the Islamic Republic, Reuters reported.

Tehran, which denies its nuclear program is for anything other than peaceful purposes, launched a volley of missiles towards Israel in the aftermath of the US attack, wounding scores of people and destroying buildings in Tel Aviv.

But it has not acted on its main options for retaliation, to attack US bases or choke off the 20% of global oil shipments that pass through the Strait of Hormuz.

Attempting to strangle the strait could send global oil prices skyrocketing, derail the world economy and invite conflict with the US Navy’s massive Fifth Fleet based in nearby Bahrain.

Oil prices jumped on Monday to their highest since January. Brent crude futures were up $1.11 or 1.44% to $78.12 a barrel as of 0653 GMT. US West Texas Intermediate crude advanced $1.08 or 1.45% to $74.87.

On Wednesday, the government will offer P40 billion in reissued Treasury bonds in a dual-tranche auction — P20 billion in seven-year bonds with a remaining life of two years and 10 months and P20 billion in 25-year notes with a remaining life of 24 years and seven months.  — Aaron Michael C. Sy with Reuters

Victoria Industrial Park eyes up to 20 new locators by 2026

VICTORIAINDUSTRIALPARK.COM

VICTORIA INDUSTRIAL PARK (VIP) in Tarlac expects up to 20 locators to establish or expand operations within the facility by 2026, which could generate up to 10,000 jobs, its top official said.

“We are anticipating the expansion of approximately 15 to 20 locators in VIP within this year or the next, depending on the scale of each operation,” VIP Chief Executive Officer Melissa Yeung-Yap said in an e-mail.

“The majority of these are expected to come from the manufacturing and BPO (business process outsourcing) sectors, in line with our focus on attracting labor-intensive industries to promote job creation in the province,” she added.

The 30-hectare Victoria Industrial Park, located in Victoria, Tarlac, is the country’s first pharmaceutical-focused special economic zone. It was launched on May 1, following its declaration as a special economic zone last year.

The industrial park is located near the Tarlac–Pangasinan–La Union Expressway and is accredited by the Philippine Economic Zone Authority (PEZA).

Ms. Yeung-Yap said the park may be expanded by 60 to 100 hectares over the next two to three years to accommodate potential investors.

To attract more foreign investors, VIP is working to further streamline business entry processes and enhance incentives, she said.

“As a PEZA-accredited industrial park, VIP offers foreign locators access to a comprehensive suite of fiscal and non-fiscal incentives, significantly reducing operational costs and accelerating RoI (return on investment),” Ms. Yeung-Yap said.

VIP will also host a dedicated satellite laboratory of the Food and Drug Administration (FDA) to facilitate faster product market entry.

“This significantly de-risks and accelerates the often-lengthy product registration and facility licensing processes, particularly beneficial for pharmaceutical, food and beverage, and medical device manufacturers,” Ms. Yeung-Yap said.

She added that the park’s proximity to major highways, ports, and airports ensures reduced transport costs and shorter transit times. VIP also offers a skilled talent pool and concierge services to support ease of doing business.

“Attracting foreign locators to Philippine industrial estates hinges on creating an ecosystem that prioritizes efficiency, regulatory ease, and strategic advantages,” Ms. Yeung-Yap said.

The 30-hectare park is positioned to become a hub for investment, innovation, medical research, and inclusive growth. — Beatriz Marie D. Cruz

Danny Boyle uses iPhones to revive 28 Days zombie film franchise

AARON TAYLOR-JOHNSON and Alfie Williams are being chased by zombies in this scene from 28 Years Later. — IMDB

LONDON — More than two decades after the release of his zombie apocalyptic horror hit 28 Days Later, director Danny Boyle has returned to the franchise with a fresh set of eyes and a twist on a new technology.

The original film was set against the background of a “rage virus” that destroyed Britain and forced residents into quarantine. It was followed by the sequel 28 Weeks Later, directed by Juan Carlos Fresnadillo.

Even more time has passed in 28 Years Later, which was released last week and reunites Mr. Boyle with the original film’s writer, Alex Garland.

Starring Aaron Taylor-Johnson, Jodie Comer, Ralph Fiennes, and newcomer Alfie Williams, the movie follows a young boy’s journey with his father from a closed-off community on an island to the mainland to kill his first zombie.

His mother grapples with an illness which isolates her from the rest of her community and threatens to tear the family apart.

“There’d be occasional screenings of (28 Days Later) and… it hadn’t really dated,” Mr. Boyle told Reuters at the world premiere of 28 Years Later last Wednesday.

“More importantly, the people’s reaction to it felt like they were watching something very present day… and that led us to start thinking, should we introduce something else into this world?”

One of the innovations was the camera setup. Mr. Boyle got in close to the action by sometimes using up to 20 iPhones at a time on special rigs.

“Smartphones, they will now shoot at 4K resolution, which is cinema resolution. So you can use them,” Mr. Boyle said.

“They are incredibly light. You can go somewhere with a very light footprint and you can also build special rigs with them, which is what we did for some of the violent action in the movie.”

Mr. Taylor-Johnson said the technique gave the film a “visceral and immersive” texture. “It would make me feel a bit vulnerable at times because it’s very invasive.”

The film — which is now showing in Philippine cinemas with an MTRCB rating of R-18 — will also be first of a new trilogy of movies, with the second, 28 Years Later: The Bone Temple, due in January. — Reuters

Being the odd one out is working for the Philippines

BW FILE PHOTO

By Daniel Moss

GIVE the Philippines its due. The country could emerge as one of the winners from the trade war. Ironically, this reflects shortcomings from an earlier chapter in Asian commercial history.

Victory in the tariff era is relative. Few countries, if any, will come out ahead. Confidence was badly shaken by the vast scale of duties imposed by the White House in April, even if many were suspended for several months after a market swoon. The Philippines has a decent shot at being harmed least. The levy thrust on Manila by US President Donald Trump was 18%; within Southeast Asia, only Singapore fared better. 

It can count its lucky stars that manufacturing never really took off. When supply chains, particularly for electronics, began winding through Singapore, Malaysia, and Thailand in the last decades of the 20th century, the archipelago was largely overlooked. While the autocrat Ferdinand Marcos — father of the current president — was overthrown in 1986, big problems that discouraged investment remained. Infrastructure was shoddy, corruption was rampant, budgets were shaky, and political instability lingered. (The armed forces mounted a number of failed coup attempts, the most recent of which, in 2007, ended in a shootout in a top hotel in the capital’s business district.)   

The failure to become an industrial powerhouse may have held back growth during the region’s boom years, but now leaves the Philippines less exposed. Shipments of goods and services accounted for around 27% of gross domestic product in 2023, according to the World Bank. That compares with Vietnam’s 87.2% and Thailand’s 65.4%. Executives are sensing opportunity. “When buyers compute and see lower tariffs on the Philippines, they will start’’ to buy from us, George Barcelon, head of the Philippine Chamber of Commerce and Industry, told Bloomberg News shortly after Trump rolled out the levies. “Everybody in business has their eye on this.”

Not that the Philippines is invulnerable. The lack of opportunity at home has long meant that the country is a big exporter of human capital. Its citizens perform vital roles in the global economy. Singapore is offering bonuses to retain Filipino nurses, a street near Rizal Park in central Manila has long buzzed with agents hiring for some of the world’s biggest shipping lines, and Filipinos are a big source of foreign recruitment for the US military. Not to mention teachers, construction workers, and nannies. They wire a lot of money home. Remittances have climbed to around 8% of GDP and last year amounted to a record $38.4 billion. Those in the US might be vulnerable to the immigration crackdown launched by Trump, but the diaspora is not dependent on America for employment.

The country notched a fairly strong performance in 2024, with the economy expanding 5.6%. Inflation is under control and interest rates are coming down. But the downgrading of world growth forecasts won’t leave the Philippines unscathed. The peso has weakened this month along with a handful of other Asian currencies. Officials have adopted a pragmatic approach. “It’s futile to intervene when it’s a strong-dollar story driven by safe-haven flows,” Bangko Sentral ng Pilipinas Governor Eli Remolona told Bloomberg News. The good news is that the economy seems to be on its own, more positive track.

Manila still has formidable challenges. While infrastructure has improved, every visitor still has horror stories about traffic. The government also needs to use its declining birthrate wisely.* Officials know they have to invest in education and find ways to boost productivity, as peers did when families started becoming smaller. Tensions between Washington and Beijing in the South China Sea are also a negative. The Philippines, a former US colony and contemporary security partner, has rubbed up against Chinese vessels in recent years.

Politics serve as a distraction. Vice-President Sara Duterte, herself the child of a former leader, faces impeachment proceedings in the Senate over allegations of a plot to kill President Ferdinand Marcos, Jr. Her father awaits trial at the International Criminal Court for crimes against humanity allegedly committed in his deadly war against illegal drugs.

In large part, though, the country does seem to have put the “sick man of Asia”  label behind it. Shrewd leaders and executives will seek advantage from the window Trump’s tariffs have opened.

BLOOMBERG OPINION

*The Philippines’ total fertility rate declined to 1.9 in 2022 from 2.7 in 2017. While this is still high compared with Japan, South Korea, and Singapore, it’s significantly less than the 3.0 recorded in 2013.

Sun Life Philippines names former AF Payments exec as new president

SUN LIFE of Canada (Philippines), Inc. President Jonathan Juan “JJ” D. Moreno — SUN LIFE OF CANADA (PHILIPPINES), INC.

SUN LIFE of Canada (Philippines), Inc. (Sun Life Philippines) has appointed former AF Payments, Inc. (AFPI) chief executive Jonathan Juan “JJ” D. Moreno as president of its insurance business.

“JJ Moreno’s appointment is a significant step in our journey, as we strive to further elevate Sun Life’s impact in the lives of Filipinos. His proven track record of achieving results with integrity, combined with his transformational leadership, will be instrumental as we continue to evolve to meet the changing needs of our clients and advisors,” Sun Life Philippines Chief Executive Officer (CEO) and Country Head Benedict C. Sison said in a statement.

Mr. Moreno has over 20 years of leadership experience across various industries, the life insurer said.

“A graduate of the Philippine Military Academy, Moreno is known for his ability to drive strategy execution and lead organizational transformation. He has consistently demonstrated a results-driven, values-centered, and client-focused leadership style,” it added.

Prior to his latest role with Sun Life Philippines, Mr. Moreno was the president and CEO of financial technology company AFPI, the company behind beep cards or the contactless cards used for transport fare payments.

“I am deeply honored and excited to embark on this new chapter with Sun Life Philippines. In a rapidly changing world, we are accelerating our transformation to be a future-ready and client-centric leader in the industry. The possibilities are endless, and Sun Life is ready to lead the way,” Mr. Moreno said.

Sun Life Philippines remained the top life insurer in the country in terms of premium income in the first quarter with P15.13 billion, it earlier said.

The life insurance industry’s premium income rose by 13.96% year on year to P99.9 billion in the first quarter, driven by variable life products, latest Insurance Commission data showed. — A.M.C. Sy

Sipcor says Siquijor plant back to dependable capacity

BW FILE PHOTO

SI POWER Corp. (Sipcor), the sole power generator in the province of Siquijor, said it has fully restored the guaranteed dependable capacity of its power plant.

In a statement on Monday, Sipcor said it had implemented a series of corrective measures in recent weeks to address the power supply shortfall caused by “maintenance issues in both generation and distribution.”

The company said it completed repairs on one generation set and deployed two rental generating sets to provide additional capacity, increasing the plant’s total dependable capacity to 10,800 kilowatts.

Sipcor supplies power to the Province of Siquijor Electric Cooperative, Inc. (Prosielco), which serves as the power distributor in the province.

“Sipcor continues to intensify its technical operations and strengthen its daily evaluation and assessment to ensure that they will continue to provide a steady and reliable power supply in all their served areas in the province of Siquijor,” the company said.

Earlier this month, the provincial government of Siquijor declared a state of calamity due to ongoing power interruptions.

President Ferdinand R. Marcos, Jr. visited one of Sipcor’s power plants on June 11 and directed authorities to permanently resolve the power outages within six months.

The Energy Regulatory Commission issued an order last week requiring Sipcor, Prosielco, and the National Power Corp. to appear and explain the power crisis at a public hearing scheduled on July 3. — Sheldeen Joy Talavera

F1 movie star Pitt finally gets to drive a Formula One car

BRAD PITT in a scene from F1: The Movie. — IMDB

BRAD PITT, whose new F1 movie is out this week, has now driven a Formula One car for real after testing a McLaren at Austin’s Circuit of the Americas.

F1: The Movie opens in Philippine theaters on June 25. It has an MTRCB rating of PG.

The reigning world champions confirmed the Hollywood A-lister drove a 2023 McLaren MCL60 car at the Texas track on Thursday.

Media reports said the British-based team had been carrying out a private test with F1 regular Lando Norris and F2 driver Alex Dunne.

It was the first time 61-year-old Mr. Pitt, who plays the fictional racing driver Sonny Hayes in the Apple Originals movie, had driven a real Formula One car on track.

The cars used in the making of the film were Formula Two cars, modified by Mercedes to look like real Grand Prix racers.

Champions McLaren had teased the drive on Thursday with a social media post of overalls with the initials BP and the caption “It’s a Sonny day in Austin.”

Seven-times world champion Lewis Hamilton, a co-producer of the movie, said in March that Mr. Pitt had shown real speed while testing the F2 cars.

“Watching Brad drive around at speeds over 180 miles an hour was really impressive to see because it’s not something you can just learn overnight,” he said.

“The dedication and the focus that Brad put into this process has been amazing to witness.” — Reuters

10 points about online gambling

STOCK PHOTO | Image from Freepik

Online gaming like online music, online food delivery, and online lectures and seminars, has become more popular in the Philippines. There are positive and negative effects of the proliferation of these online transactions. Here is my list of 10 important points about online gambling.

1. It has grown big in revenues. It reached P112 billion in 2024, with e-games and e-bingo accounting for P48.8 billion. And in the first quarter of 2025 alone, gross gaming revenues (GGR) reached P104.1 billion, with the e-games and e-bingo segment contributing P51.4 billion. This data comes from the Philippines Amusement and Gaming Corp. (Pagcor).

2. News about gambling addiction, dirty money, and calls for outright bans have surfaced at more pronounced levels. See these reports in BusinessWorld this year: “Filipinos battle addiction amid online gambling boom” (Jan. 14), “PHL urged to monitor dirty money risks from online gambling, crypto” (Feb. 25), “Pagcor warns BSP regulation could hold back e-gaming growth” (Feb. 27), “Proposed local online gambling ban to hurt NG revenues” (March 4), “Pacific Online weighs expansion amid PIGO uncertainty” (May 2), and, “E-games dislodge casinos as Pagcor’s top earners” (May 7).

3. What was previously casual digital entertainment has expanded into a wide ecosystem that includes among others: mobile gaming with in-app purchases, online betting and digital casinos, play-to-earn platforms and crypto-integrated games, and remote gambling services including e-sabong and international POGOs.

4. This evolution has driven innovation and economic activity but it also created new risks especially for less-mature members of the population. These include: lack of consumer awareness, with many users unable to distinguish between entertainment and gambling; financial risk and addiction that can lead to overspending, debt accumulation, and addictive behaviors, especially among low-income users or minors; and, fragmented regulation, with existing regulations being either outdated or inconsistent across sectors, leaving users exposed to predatory practices and non-compliant operators.

5. New regulations should include: clear distinctions made between entertainment and gaming and gambling so that distinct and not uniform regulations can apply; having age and identity verification, with mandatory user verification to protect and exclude minors and enforce age-appropriate access; and, consumer protection mechanisms like limits on spending, self-exclusion options, behavior monitoring tools, and transparency in digital game design.

6. Pagcor, which is at the same time the regulator and one of the gaming players seems to have a good cash flow. Among the dozens of government-owned and -controlled corporations (GOCCs) and government financial institutions (GFIs), Pagcor was No. 4 in 2024 when it came to cash flow (see Table 1).

7. Proposals for outright prohibition or banning online gambling are not advisable as they will only lead to illegal gambling — underground, unregulated, and non-transparent so victims cannot complain. Government regulatory oversight on consumer safeguards would be gone, and government revenues would decline and approach zero. With regulatory oversight, licensing fees and taxes can be collected to support public infrastructure and public campaigns on digital literacy and responsible use.

Data on dividends remitted to the National Government show that Pagcor dividends are declining. I am not sure if this is an indicator of there being more illegal platforms and/or that other players are becoming more dominant (see Table 2).

8. Gambling is here to stay. It is part of human nature and is enjoyed by most people. This includes fun betting among friends, young kids betting on spider fighting and having fun in Timezone, the adult passion for cockfighting, and even deriving pleasure from potentially dangerous or risky behavior like drinking, smoking, vaping, downhill cycling, mountain climbing, sky jumping, etc.

9. Appropriate regulation is the middle ground between illegal and legal-but-unregulated gambling, one that recognizes the widening digital economy and ease of participation, respects people’s desire for entertainment or an itch for quick money. Regulation protects vulnerable and gullible players, and respects government regulatory authority. Cross-sector collaboration among regulators, fintech providers, gaming companies, civil society, and the players themselves can help attain ethical and safety standards.

10. Like taxation of “sin products” (alcohol, tobacco, sugary drinks, mining products), appropriate regulatory fees and tax rates should prevail over nanny-state taxation that goes through the roof and which tends to drive people to patronize underground or illegal, unregulated activities and players.

 

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

minimalgovernment@gmail.com

Rezoning and revitalizing Makati CBD

STOCK PHOTO | Image Dmitry Berdnyk from Unsplash

THE MAKATI central business district (CBD) continues to enjoy its stature as the Philippines’ primary financial district. Major outsourcing, multinational, and large Filipino companies gravitate towards the country’s premier financial hub. This has been compelling national developers to expand in the business district despite the obvious lack of developable land in the business hub.

What’s interesting is that there are proposals to amend the zoning ordinance of Makati CBD. Among the Makati Central Estate Association, Inc.’s (MACEA) proposed changes include increasing the allowable floor area ratios (FAR) for office and retail developments. All lots will now be mixed-use. The new zoning ordinance also establishes the “superblocks” system, and a bonus FAR of 1.5 for lot owners that will incorporate breezeways and civic plazas into their developments.

Meanwhile, the Makati local government, major developers, and other stakeholders should also take into account the viability of expanding retail spaces; the city’s sustainability initiatives — given the popularity of healthy and sustainable workspaces; and the efficiency of mass transit systems (especially now that the construction of Makati subway has stalled) and parking spaces across the business district.

TAKING ADVANTAGE OF MAKATI CBD’S DWINDLING AVAILABLE OFFICE SUPPLY
From 2025 to 2029, Colliers projects the delivery of nearly 2 million square meters of new office space in Metro Manila, with Makati CBD accounting for 15% of the new supply. Among the new office towers likely to be completed during the period are Calistoga Office Building, Mckinley Exchange Corporate Center 2, PHC Buendia, The Gentry Corporate Plaza and the redevelopments of BDO, BPI, Metrobank and Chinabank HQs.

Assuming current market conditions continue, Colliers projects that Makati CBD may shift to a landlord’s market as early as next year, due to limited new supply over the next two years. While several major banks are developing new headquarters in the CBD, most of these are expected to be completed by 2029 onwards. The duration of a potential landlord’s market may be protracted unless a substantial portion of space in these HQs is made available for lease to the market.

With office availability dwindling and many existing buildings aging, redevelopment is becoming increasingly imperative to meet evolving demands. Colliers sees the MACEA’s proposed zoning amendments as a key catalyst in driving the redevelopment of the Makati CBD. These proposed changes include increasing the allowable FAR for office developments in Legazpi and Salcedo Villages, as well as permitting mixed-use developments along major thoroughfares. Colliers recommends incentivizing redevelopment projects — particularly those that integrate sustainability — as a critical step in future-proofing the CBD.

NEW CONDOMINIUMS LIKELY TO REPLACE OLD BUILDINGS
From 2025 to 2029, Colliers expects the completion of 20,700 condominium units in Metro Manila, with Makati CBD likely accounting for 12% of the new supply. Majority of these are luxury projects including Arthaland’s Eluria, Alveo Land’s Parkford Suites, and SMDC and Federal Land’s The Estate. Due to the lack of developable land in Makati CBD, property firms have been redeveloping old and existing properties into new residential projects. For instance, Ayala Land Premier redeveloped the Mandarin Oriental Hotel and LeParc Apartments into Park Central Towers and Park Villas respectively. Meanwhile, the Dela Rosa Carpark 2 will be converted into an ultra-luxury project called Laurean.

The proposed Condominium Redevelopment Act, a measure that was seen to complement new office and retail projects in Makati CBD failed to hurdle the last Congress. The bill is likely to be refiled in the next Congress which starts in July. We see Makati CBD benefiting from the measure’s enactment.

Makati CBD’s residential segment remains a cut above the rest. Its share to total unsold ready-for-occupancy (RFO) condominium units is only less than two percent of total unsold RFO across Metro Manila. Secondary and pre-selling condominium projects within Makati CBD are among the more expensive in the metro, especially those along Ayala Avenue and those located in Legaspi and Salcedo villages.

With the proposed rezoning and new projects in the pipeline, Makati CBD is definitely a hub to watch for in the years to come.

 

Joey Roi Bondoc is research director, and Kevin Jara is director and head of tenant representation at Colliers Philippines.

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