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First Gen eyeing pumped storage, solar projects rollout this year

FIRSTGEN.COM.PH

LOPEZ-LED First Gen Corp. is advancing towards its goal of expanding its portfolio to 13 gigawatts (GW) by 2030 as it is working to roll out renewable energy projects this year.

First Gen targets the implementation of its Aya pumped storage hydropower project in the second half of the year to store and release electricity with a potential capacity between 100 megawatts (MW) and 120 MW, based on its 2024 Integrated Report.

“The detailed engineering design for the electromechanical works has been completed, while the design for civil and hydromechanical works is still in progress,” the company said.

Most of the necessary permits and endorsements have already been secured, paving the way for the next phases of development, it said.

Located within the Pantabangan-Casecnan complex in Nueva Ecija, the facility was previously estimated to cost P6 billion. The project forms part of the company’s goal to grow its renewable energy portfolio capacity to 9 GW by 2030.

To further diversify its portfolio, First Gen said it would pursue a first phase 50-MW solar facility in Batangas this year and “to be followed by an additional 100-MW expansion.”

“First Gen’s solar and wind business units will continue to invest in the feasibility of the concessions that were awarded to the company,” the company said.

“Leveraging on a capability to implement multi-projects on a concurrent basis, the concessions are undergoing prioritization and evaluation, to accelerate projects into the development stage for the solar and wind assets,” it added.

Currently, First Gen has a total of 3,668 MW of combined capacity from its portfolio of plants that run on geothermal, wind, hydropower, solar energy, and natural gas.

In an interview last year, First Gen President and Chief Operating Officer Francis Giles B. Puno said the company had set a capital expenditure budget of around P35 billion for 2025. Approximately 90% of this will be allocated to the drilling activities and growth projects of its renewable energy subsidiary, Energy Development Corp.

For 2024, the company’s attributable net income declined by 19%, totaling $252.92 million, due to lower revenues and higher expenses.

“First Gen is forging ahead on many fronts to crystallize the uniqueness and value of our clean and renewable portfolio. We are committed to find solutions to help address the country’s critical issue of energy security.” Mr. Puno said. — Sheldeen Joy Talavera

20th MIAS draws 170K visitors

The Manila International Auto Show (MIAS) 2025 featured new brands even as some regulars were notably missing. — PHOTO BY KAP MACEDA AGUILA & JOYCE REYES-AGUILA

Chinese brands dominate summer automotive spectacle

By Kap Maceda Aguila

ANOTHER YEAR, another MIAS (or Manila International Auto Show, of course); except that this year wasn’t any other year, but a milestone 20th staging for the annual summer spectacle. While last year had the SMX Convention Center as a second venue, this year’s staging confined MIAS to its usual haunt, the World Trade Center Metro Manila.

To accommodate the expected foot traffic, organizers saw it fit to reduce the booth sizes of the participants — particularly since there were no less than 29 car brands on display at the World Trade Center Main Hall. “Velocity” was there on opening day as people very early in the day flocked to the venue. Many of the participating brands are headquartered in China, while some of the usual marques weren’t in this year’s staging.

When the four-day automotive exhibition packed up, organizers said they had counted a visitor count of 170,900 — surpassing last year’s total by 8,900. The turnout was realized “despite several challenges surrounding the venue, such as roadworks causing vehicular traffic in the area.”

Aside from being a selling exhibit, MIAS has traditionally been a venue to test-drive vehicles, and auto loans partner BPI was on hand to provide special deals on car financing. Meanwhile, the MIAS Custom and Classic Car Competition, sponsored by Petron, “featured some of the best restored and modified vehicles.” This and after-market brands helped to serve up a complete experience for automotive fans of all ages.

Surfshark: Philippines 24th most breached country in Q1 2025

The Philippines ranked 24th among 250 countries and territories, with a total of 224,731 breached accounts in the first three months of 2025, based on the latest data from Surfshark’s Data Breach Statistics. This figure represented a 73.5% decrease from the fourth quarter of last year, which recorded 848,911 breached accounts. Meanwhile, the country ranked fourth among its peers in the East and Southeast Asian region for the same period.

Surfshark: Philippines 24<sup>th</sup> most breached country in Q1 2025

How PSEi member stocks performed — April 16, 2025

Here’s a quick glance at how PSEi stocks fared on Wednesday, April 16, 2025.

Peso may climb on strong US data

PHILIPPINE STAR/ MIGUEL DE GUZMAN

THE PESO could strengthen against the dollar this week following positive US data released over the trading break.

The local unit closed at P56.80 per dollar on Wednesday, weakening by three centavos from its P56.77 finish on Tuesday, Bankers Association of the Philippines data showed.

Week on week, however, the peso strengthened by 17 centavos from its P56.97-per-dollar close on April 11.

Philippine financial markets were closed on April 17-18 in observance of Maundy Thursday and Good Friday.

A trader said the peso’s movement this week will depend on the data released over the long weekend.

“If US retail sales come in higher, we expect further recovery to test the P56.50 level. Should the data show some weakness, the peso could depreciate to P56.70,” the trader said.

For his part, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the peso could range from P56.50 to P57 versus the dollar this week.

The dollar ticked up on Thursday as investors took some heart from trade talks between the United States, Japan and Italy, though the positive mood was curbed by US Federal Reserve Chair Jerome H. Powell saying the US central bank would be cautious about cutting interest rates, Reuters reported.

The dollar has been a major casualty of the turmoil stemming from tariffs and their impact on economic growth. Against a basket of six other currencies, the dollar has fallen to its lowest in three years this month, but it was slightly firmer on Thursday.

US retail sales increased by the most in more than two years in March as households stepped up purchases of motor vehicles and a range of other goods to avoid higher prices from tariffs, likely barely keeping the economy afloat in the first quarter.

With the stock market selling off and consumer sentiment tanking amid a darkening economic outlook wrought by President Donald J. Trump’s constantly changing tariff policy, the robust sales pace reported by the Commerce department on Wednesday will probably fizzle in the months ahead as consumers hunker down.

Retail sales increased 1.4% last month, the largest gain since January 2023, after an unrevised 0.2% rise in February, the Commerce department’s Census Bureau said. Economists polled by Reuters had forecast retail sales, which are mostly goods and are not adjusted for inflation, accelerating 1.3%.

Consumer sentiment is near three-year lows, with 12-month inflation expectations the highest since 1981. Mass layoffs of public workers as part of an unprecedented campaign by the Trump administration to downsize the federal government are also weighing on morale and could be a potential drag on spending.

Economists said the current economic environment could spur precautionary saving, potentially undercutting spending.

Meanwhile, the number of Americans filing new applications for unemployment benefits fell to a two-month low in the week ended April 12, suggesting labor market conditions remained stable in April, though uncertainty around tariffs is making businesses hesitant to boost hiring.

Initial claims for state unemployment benefits dropped 9,000 to a seasonally adjusted 215,000 for the week ended April 12, the lowest level since February, the Labor department said.

Economists polled by Reuters had forecast 225,000 claims for the latest week. There are still no signs mass firings of federal government workers have significantly impacted the labor market.

The data suggested companies had not yet responded with layoffs to Mr. Trump’s April 2 “Liberation Day” tariff announcement, but the White House’s trade policy has constantly shifted, which economists said made it difficult for businesses to plan ahead.

Mr. Trump has slapped duties on virtually all foreign goods, igniting a trade war with China, the biggest source of US imports. The hit from tariffs, together with the drag from tightening financial conditions, could still come. — AMCS with Reuters

Stocks may drop on growing US-China trade war

REUTERS

PHILIPPINE STOCKS could decline this week due to the growing trade war between the United States and China.

On Wednesday, the Philippine Stock Exchange index (PSEi) fell by 0.83% or 51.48 points to close at 6,134.62, while the broader all shares index rose by 0.28% or 10.34 points to 3,656.99.

Week on week, the PSEi went up by 0.86% or 52.18 points from its 6,082.44 finish on April 11.

The market was closed on April 17-18 in observance of Maundy Thursday and Good Friday.

“Steady movement above the 6,000 zone characterized the shortened trading week amid quiet activity ahead of the Lenten break,” online brokerage 2TradeAsia.com said in a market note.

For this week, First Metro Investment Corp. Head of Research Cristina S. Ulang said volatility may welcome back investors from the trading break following the latest developments in the US-China trade war.

“Downside risks lurk as the market digests the adverse trade and economic growth fallout for emerging markets following the fresh port container fees recently slapped by US President Donald J. Trump on Chinese exports,” Ms. Ulang said in a Viber message.

The Trump administration shielded on Thursday domestic exporters and vessel owners servicing the Great Lakes, the Caribbean and US territories from port fees to be levied on China-built vessels, aiming to revive US shipbuilding, Reuters reported.

The Federal Register notice posted by the US Trade Representative was watered down from a February proposal for fees on China-built ships of up to $1.5 million per port call that sent a chill through the global shipping industry.

Still, the fees on Chinese-built ships add another irritant to swiftly rising trade tensions between the world’s two largest economies as Mr. Trump seeks to draw China into talks on his new tariffs of 145% on many of its goods.

The revisions tackle major concerns voiced in a tsunami of opposition from the global maritime industry, including domestic port and vessel operators as well as US shippers of everything from coal and corn to bananas and cement.

Unicapital Securities, Inc. Research Head Wendy B. Estacio-Cruz said in a Viber message that the PSEi is expected to trade within the 5,800 to 6,300 range this week.

For his part, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in an e-mail that the market’s support is pegged at 6,000, while resistance could be at 6,230-6,490.

2TradeAsia.com placed the PSEi’s support at 6,000 and resistance at 6,400.

“A global backdrop of rate path uncertainty, persistent push-pull forces in tariffs and trade policy, and sticky real yields continue to weigh on valuations despite a relatively benign domestic inflation setup,” it said. — Revin Mikhael D. Ochave with Reuters

Subway RoW purchases seen completed by Q1

PHILIPPINE STAR/ MICHAEL VARCAS

THE Department of Transportation (DoTr) is targeting to complete the acquisition of right of way (RoW) for the Metro Manila Subway project by the first quarter of 2026.

Transportation Secretary Vivencio B. Dizon said last week that the DoTr is now expediting the project by addressing RoW issues, which is estimated at 59.12% to date.

The DoTr said in a message to BusinessWorld, that it is hoping to acquire up to 80% of the needed RoW by end of 2025, with the remainder completed by the first quarter.

The DoTr is also hoping to award the three remaining contract packages of the Metro Manila Subway project within the year. The remaining contract packages are valued at between P10 billion and P15 billion each.

Contract package (CP) 105 covers the construction of the station in Kalayaan Avenue and Bonifacio Global City; CP 108 covers the Lawton and Senate-DepEd stations; and CP 109 is the Ninoy Aquino International Airport (NAIA) Terminal 3 station.

The DoTr has said that it is now expecting subway operations by 2032. It had initially targeted partial operations by 2030.

Nigel Paul C. Villarete, senior advisor at technical advisory group Libra Konsult, Inc., said the DoTr must set a realistic target, given the many obstacles in the way of completion.

“We do not have a good record of meeting deadlines as far as RoW acquisition is concerned… It is a better idea to set realistic timelines for project implementation, considering past performance levels, and attempt to drastically improve them and finish projects ahead of schedule, rather than promise a very early timeline which may be repeatedly delayed,” Mr. Villarete said via Viber.

Rene S. Santiago, former president of the Transportation Science Society of the Philippines, said: “2032 is a big aspiration, devoutly to be wished but iffy.”

The subway will ultimately link Valenzuela City to Parañaque City, with a spur line connecting to NAIA.

The subway is 33 kilometers long with 17 stations. The goal is to cut travel time between Quezon City and NAIA to 35 minutes from over an hour currently. It is expected to accommodate up to 370,000 passengers daily. — Ashley Erika O. Jose

PHL upper middle-income status by 2026 seen requiring 6% growth

A VIEW of residential condominium buildings in Mandaluyong, Metro Manila, Aug. 22, 2016 — REUTERS

THE PHILIPPINES needs to sustain 6% growth until next year to achieve upper middle-income status by 2026, according to National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan.

“I think the upper middle-income status is challenging, but I think if we get 6% this year, 6% next year, we should achieve that upper middle-income status next year,” Mr. Balisacan told reporters during a briefing last week.

The Marcos administration is hoping to be reclassified as an upper middle-income economy this year or by 2026.

Growth of 6% matches the lower end of the government’s 6-8% growth target band for 2025-2028. It would exceed the 5.7% gross domestic product (GDP) posted in 2024, and the 5.5% in 2023.

The World Bank classifies countries by their gross national income (GNI). The four categories are low income, lower middle income, upper middle income and high income.

The Philippines is currently a lower middle-income country with GNI per capita of $4,230 in 2023, up from $3,950 in 2022.

Upper middle-income status is expected to require GNI per capita of between $4,516-$14,005.

Reinielle Matt M. Erece, economist at Oikonomia Advisory and Research, Inc. said upper middle-income status by next year is “still possible.”

“But it became more difficult as the economy takes a hit from heightened geopolitical risks especially in trade, remittances, and foreign investment,” he told BusinessWorld via Viber.

US President Donald J. Trump on April 9 paused his new reciprocal tariffs for 90 days, although the baseline 10% tariff on almost all US imports remains in effect.

The Philippines faced a 17% reciprocal tariff, the second lowest in Southeast Asia.

Mr. Erece said Philippine GDP must expand by 6-7% annually, though he expects growth to be at the lower end of the target.

Peter Lee U, dean of the University of Asia and the Pacific’s School of Economics, said should the tariffs cause a global recession, it could prevent the Philippines from moving up the income category.

Such a recession can “cause our GDP/gross national product to shrink and our GNI per capita to fall. It’s anybody’s guess whether that will happen. Also, if a global economic slowdown happens, it may take until 2026 before we feel the full effect,” he said via Viber.

JP Morgan estimates a 60% probability of the world economy going into recession by year’s end, up from 40% in March.

Jose Enrique A. Africa, executive director at think tank IBON Foundation said even if Mr. Trump backtracks on the tariffs, inflation is expected to slow growth this year and the next.

“The reputational damage to the US has been done and countries will start adjusting to a world of even more uncertain supply chains, fiscal austerity to accommodate security spending from the vacuum being left by the US, and more volatile finances from a shaken dollar,” he said via Viber.

“These make it unlikely for the Philippines to rise to upper middle income this year — the only question really being how long this reclassification is going to be delayed,” he added.

Before the tariff announcement, World Bank Country Director for the Philippines, Malaysia, and Brunei Zafer Mustafaoğlu said in February that the Philippines is likely to reach upper middle-income status by 2026.

However, Mr. Balisacan said instead of the fixation on income status, the more significant indicators are employment, poverty, literacy and hunger and living standards, rather than GDP or GNI.

Mr. Africa said the Marcos administration instead should prepare to cushion the economic disruption on the vulnerable members of society.

“It should expand public education, health, housing and social protection services, and give redoubled support to domestic food production to moderate prices. The backsliding on the sustainable development goals… risks getting even worse,” he said. — Aubrey Rose A. Inosante

FTI starts purchasing 500 pigs daily for slaughter

REUTERS

FOOD TERMINAL, INC. (FTI) has begun purchasing 500 pigs daily from large farms and delivering them directly to slaughterhouses.

“The move is intended to ensure consistent supply and reinforce compliance with the established maximum suggested retail prices (MSRPs),” the Department of Agriculture (DA) said in a statement.

The DA on March 10 started implementing an MSRP scheme for pork, with a price of P300 per kilo for fresh carcasses, P350 a kilo for kasim (shoulder) and pigue (rear leg), and P380 per kilo for liempo (belly).

The DA said pork industry representatives vowed to police their ranks in the face of “alarmingly low compliance” with the pork MSRP.

The DA said less than 10% of sellers were found to be observing the price ceilings.

There is a need to uphold the “gentleman’s agreement” reached in earlier consultations to avert “more disruptive market interventions,” the DA said, citing Agriculture Undersecretary for Livestock Dante Palabrica.

The MSRPs aim to balance the interests of producers, traders, retailers, and consumers “in light of continued inflationary pressures.”

On April 1, the DA said the level of compliance with the pork MSRP was low at 30% after monitoring 170 stalls.

The compliance rate was 20% during the first week of implementation. It rose to 25% as of March 22.

Meanwhile, the DA said it will roll out a P1-billion swine repopulation program.

It plans to distribute around 30,000 gilts (female pigs that have not produced litters) to large farms which, in turn, will supply reared pigs for distribution to backyard farmers. — Kyle Aristophere T. Atienza

Hong Kong garment company exploring expansion in PHL

Image via IndustriALL Global Union/Flickr/CC BY-NC-ND 2.0

THE Department of Trade and Industry is set to meet with a garment manufacturer from Hong Kong by the end of the month to discuss plans of expanding its production in the Philippines.

“They are already thinking of strengthening and adding more production in the Philippines because of the 17% US reciprocal tariffs,” Trade Secretary Ma. Cristina A. Roque told reporters last week.

“I will talk to them about their plans to grow here in the Philippines. They’re going to expand their production here,” she added.

She said that the Hong Kong manufacturer’s decision is based on the assumption that the US reciprocal tariff for Philippine products will stay at 17%, the second lowest tariff in the Association of Southeast Asian Nations (ASEAN).

ASEAN member countries are facing some of the highest duties. Cambodian goods must pay a 49% tariff, followed by Laos (48%), Vietnam (46%), Myanmar (44%), Thailand (36%), Indonesia (32%), Malaysia (24%), and Brunei (24%).

Singapore was assigned the baseline tariff of 10%.

Last week, US President Donald J. Trump announced a 90-day pause on the higher reciprocal tariffs on most of its trading partners.

While the 90-day pause is in place, most countries will be charged the 10% duty until July.

“(The Hong Kong manufacturer is) thinking that it will stay at 17%. But it’s hard to say; it is hard to speculate,” Mr. Roque said.

“The best thing to do is really to just wait. But now, (investors) are already talking to us,” she added.

Foreign Buyers Association of the Philippines President Robert M. Young said the Philippines should upgrade its capabilities and reduce the cost of doing business as more companies explore Philippine expansions to get around stiff US tariffs in their home countries.

“We have been telling people that we just have to invite investors to come in and open new factories, modernized factories, updated factories, and state-of-the-art factories that can stitch fashion items. We only have basic ones, and that is the problem,” he said by telephone.

“There are factories here, but they are dedicated to the companies’ own production; they do not have the capacity to accept additional orders,” he added.

He said that the Philippines lost a lot of investments to Vietnam due to the high cost of doing business here.

Meanwhile, Mr. Young said that he expects US reciprocal tariffs to disrupt trade activity globally as economies turn protectionist.

“There will be a policy shift towards protectionism,” he said.

He said that this could result in lower orders from US companies, with the Philippines raising prices due to higher prices of raw materials.

“As you know, the Philippines is just relying on imported materials, almost in all industries. Prices will definitely increase because the other countries that are supplying the Philippines will be affected as well by this tariff,” he added.

According to the World Trade Organization’s (WTO) Global Trade Outlook, world trade is expected to decline 0.2% in 2025 due to a surge in tariffs and trade policy uncertainty.

The WTO said that if the US imposes the currently suspended reciprocal tariffs, world merchandise trade growth will be reduced by an additional 0.6 percentage points. 

Earlier this year, the WTO projected Asia’s exports to register 3.3% growth in 2025, with imports expected to grow 3.2%. However, WTO economists revised these projections in April to 1.6%.

Meanwhile, Asia’s commercial services exports are expected to grow 4.4% this year based on April projections, from 5.5% previously.

Mr. Young said that he expects a significant decrease in Philippine exports compared to other ASEAN economies due to higher prices.

“Originally, we had higher prices than them. For instance, in denim jeans our price is at least 15% higher than that of Bangladesh or Vietnam, or sometimes even 20%. Philippine jeans will be the last to be picked up because they now have this perception that the Philippines is charging more,” he said.

“Definitely the demand for the Philippine exports will be less as compared to the other ASEAN countries,” he added.

He said the government should be aggressive in reducing the cost of doing business through subsidies for power costs and other such measures.

“We are now all in survival mode. Because all in all, the Trump tariff reduces global merchandise activity. International economic growth will definitely be stunted,” he said.

“Our buyers are suggesting cost-cutting to us to offset or somehow assist in the reduction of prices,” he added.

According to the WTO report, world gross domestic product growth is now projected at 2.2% in 2025, down from 2.8% previously.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that the US tariffs and other protectionist measures can slow global trade, investment, employment, and world economic growth.

“This would lead to slower Philippine exports, including supply chains and overall economic growth,” he said.

He said the Philippines should diversify export markets while leveraging its free trade agreements (FTA), adding that the US remains its biggest export market with a 17% share.

He added that the Philippines should also try to reduce US tariffs through an FTA and diversify beyond electronics. — Justine Irish D. Tabile

Clark food hub development to start with initial 12-hectare site

CIAC

THE Department of Agriculture (DA) said on Sunday that it has identified the 47-hectare site for a future food hub in Clark, of which 12 hectares are set for initial development.

The site was agreed with Clark International Airport Corp. (CIAC), the landowner, it said, with initial development costs estimated at about P2 billion, the DA said.

“Access to the entire area remains challenging,” Agriculture Secretary Francisco Tiu Laurel, Jr. said. “But a 12-hectare section could be sufficient for initial development, considering our current budget and timelines.”

The proposed Clark hub, which will be the main distribution center for produce from the north of Luzon, is modeled on a 50-hectare Thai agricultural distribution center.

Transportation Secretary Vivencio B. Dizon, who chairs the CIAC, said the food hub’s location is strategic, with access to Subic port via the Subic-Clark Expressway.

He also cited its proximity to the Clark International Airport.

The DA said the food hub concept was originally proposed by Semmaris of France, operator of the Rungis International Market near Paris.

It said the initial plan stalled when Semmaris’s local partner withdrew due to high relocation costs associated with the original site.

The DA is also looking to establish food hubs at other sites, with the aim of stabilizing food supply and prices, while increasing farmer incomes. 

The DA has said a food hub could rise on 20-30 hectares in Quezon province. — Kyle Aristophere T. Atienza

Kawasaki IT enterprise to locate in Cebu ecozone

OAKRIDGE.COM

THE Philippine Economic Zone Authority (PEZA) said Kawasaki Motors Development Center Cebu, Inc. (KMDCI) has registered as an economic-zone information technology (IT) enterprise in Cebu.

In a social media post, PEZA said that KMDCI signed its registration agreement on April 15 to operate in Oakridge IT Center in Mandaue City.

“With the support of PEZA and its enabling business ecosystem, KMDCI is set to introduce advanced technological solutions, enhance local innovation, and contribute to a future-ready Philippine economy,” PEZA said.

PEZA Director General Tereso O. Panga said KMDCI’s operation will help boost Cebu’s standing as an IT and research and development (R&D) hub while promoting inclusive and sustainable economic development across the regions.

“It is also their way of testing the waters in preparation for the setting up of a manufacturing facility in the country,” he said via Viber.

Oakridge IT Center Towers currently hosts three locators generating 32 jobs and $884,345.66 in exports.

Aside from Kawasaki, the IT center is also expecting the entry of an US firm, DIS Tech Philippines.

According to Mr. Panga, the US company will offer knowledge-based and computer-based support services, including engineering and architectural design services, consultancy, and the design of printed circuit boards and substrate interfaces for the semiconductor industry.

In the first quarter, PEZA approved P58.947 billion worth of investment pledges, representing an almost four-fold increase from a year earlier.

It approved 66 new and expansion projects involving investment that was 294.3% higher year on year.

For this year, PEZA hopes to approve P250 billion worth of investment pledges. If realized, it would be a 16.7% increase from the P214.18-billion pledges approved in 2024. — Justine Irish D. Tabile

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