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Pangilinan says Meralco on track to hit P50-billion profit target

MERALCO.COM.PH

PANGILINAN-LED MANILA Electric Co. (Meralco) reported a 14% increase in its consolidated core net income to P40.02 billion for the first nine months, driven by revenue growth and stronger results from its distribution utility segment despite flat energy sales.

“Based on the growth of our power generation and the steady performance of our core distribution in the past nine months, we stay positive that we will achieve our full-year core profit guidance of P50 billion,” Meralco Chairman Manuel V. Pangilinan said in a statement on Monday.

The distribution utility business accounted for P21.94 billion of the company’s total core income for the period, while power generation contributed P14.71 billion and the retail electricity supplier and service subsidiaries added P3.37 billion.

Consolidated revenues rose 4.6% to P371.77 billion for the January-to-September period from P355.42 billion a year earlier, mainly driven by electricity sales.

“We are relying on the contribution of power generation which has helped us cover any distribution utilities shortfall. Although overall we are also looking at contributions from our subsidiaries,” Meralco Senior Vice-President and Chief Finance Officer Betty C. Siy-Yap said during the company’s financial and operational briefing on Monday.

Operating costs and expenses increased 4.16% to P332.26 billion from P318.99 billion last year.

Meralco’s system-wide power sales volume reached 50,880 gigawatt-hours (GWh) in the first nine months, up 0.5% from 50,641 GWh a year ago.

The distribution utility segment accounted for 41,358 GWh, power generation arm Meralco PowerGen Corp. (MGEN) contributed 20,226 GWh, and the retail electricity business 5,524 GWh.

“We were hoping for a normalization of weather patterns but we see worsening weather patterns. So that actually and the flooding brought by the rains impeded the mobility of both residential and commercial customers,” Meralco Senior Vice-President and Chief Revenue Officer Ferdinand O. Geluz said.

Meralco has revised downward its energy sales growth forecast to 0.4%-0.8% by yearend from an earlier projection of 1-2%.

“We somehow changed our forecast to 0.4 or 0.8% by the end of the year,” Mr. Geluz said.

At the local bourse on Monday, Meralco shares slipped by P4 or 0.69% to close at P575 apiece.

Meralco’s majority owner, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.

Hastings Holdings, Inc., a unit of the PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose

Gov’t hikes T-bill award as rates go down with Fed seen to ease further

BW FILE PHOTO

THE GOVERNMENT hiked its award of the Treasury bills (T-bills) it offered on Monday as yields dropped across all tenors on expectations of a rate cut by the US Federal Reserve this week, as well as further monetary easing at home.

The Bureau of the Treasury (BTr) raised P25 billion from the T-bills it auctioned off, above the P22-billion plan, as the offer was nearly four times oversubscribed, with total bids reaching P85.365 billion. However, this was lower than the P95.17 billion in tenders recorded on Oct. 20.

The Auction Committee hiked its T-bill award as all tenors fetched average rates that were lower than those quoted at the previous auction and at the secondary market, the BTr said in a statement.

Broken down, the Treasury borrowed P7 billion as planned via the 91-day T-bills as total tenders for the tenor reached P29.555 billion. The three-month paper was quoted at an average rate of 4.858%, dropping by 2.6 basis points (bps) from 4.884% in the previous auction. Yields accepted were from 4.8% to 4.878%.

Meanwhile, the government upsized the award for the 182-day securities to P10.5 billion, above the P7.5-billion plan, as the tenor drew demand amounting to P33.45 billion. This prompted the BTr to double its acceptance of noncompetitive bids for the tenor to P6 billion, it said.

The average rate of the six-month T-bill was at 5.044%, down by 1.4 bps from the 5.058% fetched last week, with accepted rates ranging from 5% to 5.058%.

Lastly, the Treasury sold the programmed P7.5 billion in 364-day debt as tenders for the tenor totaled P22.36 billion. The average rate of the one-year T-bill inched down by 0.4 bp to 5.093% from 5.097% previously. Bids awarded carried yields from 5.02% to 5.128%.

At the secondary market before Monday’s auction, the 91-, 182-, and 364-day T-bills were quoted at 4.9263%, 5.0977%, and 5.1626%, respectively, based on PHP Bloomberg Valuation Service Reference Rates data provided by the Treasury.

The government fully awarded its T-bill offer as rates continued to go down, a trader said in an e-mail.

“The sideways downward movement is likely due to the FOMC (Federal Open Market Committee) rate cut this week being extremely likely because of the US CPI (consumer price index) results last week, as well as the light local market data releases for the next few weeks,” the trader said. “Furthermore, the low market activity this morning was another factor as well.”

“T-bill average auction yields were mostly lower ahead of the widely expected 25-bp Fed rate cut on the next rate-setting meeting on Oct. 29, 2025 after dovish signals from most Fed officials recently,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The Fed is widely expected to lower its current benchmark interest rate of 4% to 4.25% by another quarter percentage point when it decides on policy on Wednesday, a view supported by tamer-than-estimated inflation data on Friday, Reuters reported.

With that rate move already factored into asset prices, markets are likely to be more sensitive to any forward-looking language from Fed Chair Jerome H. Powell, with the central bank expected to cut rates further at its next meeting in December.

Possibly clouding the Fed’s decision-making ability is the lack of data provided by the government since its shutdown began on Oct. 1, including delays in employment releases at a time of simmering worries about the health of the labor market.

Mr. Ricafort added that expectations of more rate cuts from the Bangko Sentral ng Pilipinas (BSP) also helped pull T-bill yields down.

Monetary Board member Benjamin E. Diokno said in a Bloomberg Television interview on Monday that a fifth straight 25-bp cut is likely in their Dec. 11 meeting, with further reductions also possible until next year, amid the economic fallout from a widening corruption scandal related to government infrastructure projects.

Tuesday’s auction was the last for the month. The government raised P183 billion from the domestic market in October, above the P180-billion plan, as it made full awards at all its T-bill and Treasury bond (T-bond) auctions and hiked its awarded volume on Tuesday.

For November, the BTr is looking to raise P158 billion from the local market, or P88 billion via T-bills and P70 billion through T-bonds.

The government borrows from local and foreign sources to finance its budget deficit, capped at P1.56 trillion or 5.5% of gross domestic product this year. — A.M.C. Sy

Here’s why more SMEs are going solar, and why waiting could cost you

STOCK PHOTO | Image from Freepik

The Philippines is one of the most attractive markets for solar energy, blessed with abundant sunlight year-round to make solar installations highly productive. For business owners, this natural advantage — combined with improved solar technology and supportive government policies — has created an unprecedented opportunity to revolutionize how they power their operations.

Many businesses remain cautious about switching to solar, often due to perceptions that it’s expensive, complex, or uncertain in returns on investment. In many cases, it’s simply because much of solar’s potential remains unknown. But as technology, financing, and installation processes have evolved, solar has become an accessible, cost-stable solution that is worth a closer look for SMEs seeking stability and long-term savings.

TRADITIONAL ELECTRICITY
In general, electricity rates for Philippine businesses are over 34% higher than the Asian average. According to Global Petrol Prices, the average cost of electricity for Philippine businesses in 2024 is $0.146 (P8.323) per kWh. In Southeast Asia, we pay the second-highest rate after Singapore.

For most small and medium enterprises (SMEs), electricity ranks among the top operational expenses alongside rent and payroll. The structural factors driving these costs make future increases almost inevitable. Over 50% of the Philippines’ power plants rely on imported fuel, creating vulnerability to both global price volatility and peso devaluation. Recent geopolitical events and impacts of climate change have also intensified this unpredictability, making it nearly impossible to budget accurately for electricity costs.

But cost isn’t the only problem, so is reliability. Power interruptions, unstable supply, and price fluctuations are now common pain points for SMEs. Each power outage may disrupt operations, delay sales, and even hurt productivity. These losses compound quietly over time. To avert these risks, more SMEs are exploring alternatives that offer not just savings, but also stability and control over their energy supply in the long run.

Some SMEs remain hesitant, driven by outdated notions that it’s expensive or complex. Yet, the smarter, future-focused SMEs are already taking advantage of financing options that make solar adoption easier than ever. For these SMEs, solar is a strategic investment in innovation and long-term stability.

The millions of pesos paid on electricity bills are more than just an expense; they are also missed opportunities for investment. These funds could fuel business growth, employee development, or market expansion — creating a compounding opportunity cost that grows larger for businesses every year.

Solar power offers a novel solution by relying on the Philippines’ most abundant and free resource: sunlight. Once installed, solar systems have virtually no fuel costs and operate independently of global energy markets or peso devaluation. This creates a fixed cost structure that delivers immediate savings and long-term price certainty, insulating businesses from the unpredictable factors that drive traditional electricity costs higher.

ELIMINATE UPFRONT COSTS
Historically, solar adoption faced two major barriers: significant upfront capital requirements, and the complexity of managing installation processes. Quality commercial solar installations needed a substantial investment. Businesses also had to navigate permits, contractor selection, system design, and ongoing maintenance — all requiring time and expertise that most business owners lacked. This created multiple challenges for businesses, which often lacked the capital for installation and the bandwidth to manage complex implementation processes.

But comprehensive financing solutions, such as solar financing, have completely eliminated both barriers. These solutions typically handle everything, from permits, installation, monitoring, and maintenance — requiring minimal involvement from business owners. More advanced financing programs, such as First Circle’s, also eliminate upfront costs entirely. Payments are structured in terms of up to 12 years, making monthly utility payments fixed and predictable while building towards eventual system ownership.

After the system has been fully paid for, it becomes a long-term asset that continuously generates value — reducing grid reliance, lowering operating costs, and shielding the business from future rate hikes. Over time, these savings strengthen profitability while turning solar into a self-sustaining, revenue-generating investment. In addition, solar also delivers environmental impact by cutting carbon emissions and dependence on imported fuels which reinforces both sustainability goals and brand reputation among eco-conscious customers and partners.

COMMERCIAL MATURITY
Today’s solar technology has advanced far beyond its earlier generations. Modern photovoltaic systems can now cover up to 70% of your electricity, supported by warranties of up to 30 years. With continuous improvements in efficiency, durability, and design, today’s solar systems often outperform traditional power in reliability and long-term cost stability, making them one of the smartest energy investments a business can make.

The reliability factor has been transformative for Philippine businesses. Contemporary solar installations include sophisticated monitoring systems that track performance in real-time, predictive maintenance capabilities that prevent downtime, and robust designs engineered to withstand our climate’s challenges — including intense UV radiation and typhoon-force winds.

Battery storage technology has also reached commercial viability. For businesses requiring uninterrupted power supply, solar-plus-storage systems can now provide reliable backup power at costs increasingly competitive with diesel generators, but without the noise, emissions, or fuel price volatility.

GOVERNMENT POLICIES
The Philippine government is actively driving the country’s shift toward renewable energy (RE) making solar adoption increasingly attractive for businesses. The RE Act of 2008 provides various incentives for qualifying projects, such as income tax holidays and duty-free importation of RE equipment. Net metering regulations under RA 9513 also allow businesses to sell excess power back to the grid, turning solar installations into potential revenue generators.

The Department of Energy’s National RE Program has also set ambitious targets to plan, build, and finance the country’s RE infrastructure. It’s a signal that the current solar incentives provided by the government aren’t temporary — they are long-term commitments that can even scale over time.

Local government units (LGUs) are also joining the movement. Many LGUs, such as Pasig and Makati, now offer streamlined permitting processes for solar panels, fast-tracking installations in an effort to encourage more businesses to adopt RE.

For business owners evaluating solar adoption, the analysis has shifted from “Does solar make sense?” to “What’s the optimal approach for my situation?” Key considerations include current electricity consumption patterns, roof space availability, grid connection stability, and cash flow preferences.

The Philippines has reached an inflection point where RE adoption is a sound business strategy rather than an idealistic environmental gesture. Business owners who recognize this shift and act accordingly will enjoy lasting competitive advantages as the country transitions toward a cleaner, more cost-stable energy future.

The question isn’t whether your business will eventually adopt solar power — it’s whether you’ll be among the early beneficiaries, or among those playing catch-up in an increasingly energy-conscious marketplace.

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

 

Benedict S. Carandang is a member of the MAP Technology Committee and is the VP for External Relations of First Circle, a fintech provider that helps SMEs grow through partnership, financing, and free tools to find opportunities.

map@map.org.ph

benedict@firstcircle.ph

The K in K-pop is already silent, and that’s OK

A SCENE from KPop Demon Hunters.

By Juliana Liu

ANYONE with children endlessly rewatching KPop Demon Hunters might assume that South Korean content has already taken over the world. In fact, K-pop has enormous room to grow in a global music industry expected to be worth just under $200 billion in 10 years. As it does, it should shake off any concerns about abandoning its roots. Like hip hop, there’s no reason why the genre can’t have a similarly inclusive trajectory while remaining true to its core.

A co-production partnership between Warner Bros. Discovery Inc. and CJ ENM Co. announced earlier this month is just the latest example of the strong international demand for Korean movies and TV shows. According to Netflix, Inc., an early mover which arrived in 2016, over 80% of subscribers watch K-content. It’s part of a larger cultural movement of exports including music, beauty, food, and fashion that was worth more than $31 billion last year. For comparison, that’s just under half the value of all automobiles sold overseas.

As a longtime observer of hallyu, or Korean wave, it has been fascinating to see it evolve from the 1990s, when shows were made almost entirely for local consumption with limited exports to Japan and Taiwan. Then came the 2000s when the musician Rain and TV series Jewel in the Palace won fans across Asia.

Things really started to take off in the 2010s. Films and TV shows were marked by splashier, more expensive productions often taking place overseas. Space travel romance My Love From Another Star and military drama Descendants of the Sun were the smash-hit exemplars of this time. The programs were so popular there were regular reports of fans suffering health problems after overindulging. BTS and Blackpink debuted in this era; Parasite won the Oscar for Best Film.

Since the beginning of the current decade, we’ve been firmly in a “made beyond Korea” moment, according to Bernie Cho, president of DFSB Kollective, a Seoul-based artist and label services agency. The content is anchored in the culture, but the hands that make it may not belong to someone who is ethnically Korean or has a Republic of Korea passport.

Blackpink’s Lisa, winner of numerous industry firsts and Labubu’s fairy godmother, is the most famous example. Born in Thailand, she moved to Seoul in 2011 as a teenager after being scouted by YG Entertainment, Inc., one of the Big Four record labels. Bandmate Jennie was born in Seoul and lived in New Zealand. Rosé was born a Kiwi and raised in Australia. Only Jisoo has lived in South Korea all her life.

Because growth is limited at home due to a shrinking population, it’s imperative for the K-culture industry to pivot abroad. Instead of fighting over scraps in the way so many Chinese industrial companies are doing, it makes sense to look beyond a 50-million fan base at home to the eight billion potential fans outside.

In terms of music consumption, K-pop is already on that path. Audience data shows that there are now far more fans outside South Korea than at home. According to Chartmetric, the largest group of fans as measured by followers on Instagram and YouTube came from Indonesia, followed by the US and the Philippines. South Korea came in only fourth, just ahead of Thailand and Brazil.

For decades, there were just three countries — the US, UK, and Sweden — consistently exporting more music than they imported. South Korea has emerged as the fourth, according to Pivotal Economics. On YouTube, for every Korean subscribed to an overseas musician, there were 17 foreign fans watching a homegrown artist.

This trend is reflected in the content. A Bloomberg News analysis of song lyrics last year showed that for the first time, almost half of K-pop singles released had English lyrics. The idea that the genre should drop the “K” in order to conquer the overseas market has been repeatedly popularized by Bang Si-Hyuk, founder of Hybe Co., the man behind BTS and the world’s fourth-largest record label.

The concept has upset many fans, but he’s not talking about erasing what’s unique about the K-pop sound or ditching a business model where hopefuls undergo long periods of training before starting their careers. It’s a tonal shift to acknowledge the genre’s inclusiveness. Hybe and rival record labels are exporting that time-tested, quintessentially Korean system. K-pop isn’t being colonized. It’s the other way around.

When first watching KPop Demon Hunters, I was confused. Here was a Westernized story told in English, set in Seoul, and starring animated Korean characters. I wanted to put it in a box. Is it Kung Fu Panda or Ne Zha 2? Well, like K-pop itself, it’s a hybrid — a blend of a North American perspective underpinned by a Korean soul. And as the WBD-CJ ENM deal suggests, the way of the future is with people of different backgrounds involved in production. Being able to succeed in so many countries isn’t a problem, it’s a privilege. — Bloomberg Opinion

GCash says systems secure as privacy commission probes alleged data leak

PHILSTAR FILE PHOTO

ELECTRONIC WALLET platform GCash said its systems remain secure following a forensic investigation that found no breach after reports emerged claiming that user data were being sold on the dark web.

“Initial forensic analysis shows no compromise in GCash systems; data under circulation does not match official records or customer information,” the company said in a statement on Monday.

GCash, operated by G-Xchange, Inc., said it immediately launched an investigation with cybersecurity experts and relevant authorities to verify the authenticity of the claims.

“The security and privacy of our users remain our highest priority. We take these allegations seriously and immediately launched an investigation with our cybersecurity experts and relevant authorities to verify the authenticity of these claims,” the company said.

According to GCash, its initial findings showed that the alleged dataset did not match the structure used within its systems and contained entries from individuals who are not GCash users. Many of the records, it said, were “incomplete, inconsistent, or invalid.”

“These findings strongly indicate that the material being circulated did not originate from GCash. At this time, there is no evidence of any breach in GCash systems. All customer accounts and funds remain secure,” the company said.

GCash said it continues to coordinate with the Bangko Sentral ng Pilipinas, the National Privacy Commission (NPC), and the Cybercrime Investigation and Coordinating Center to verify the reports and further strengthen its systems.

Meanwhile, the NPC said it has launched its own investigation to determine whether personal data of GCash users have been compromised.

“Should the investigation confirm that the personal data of GCash users have been compromised, the NPC will take regulatory and enforcement action within its mandate,” the commission said. — Ashley Erika O. Jose

Peso sinks near record low on dovish BSP hints

PHILIPPINE STAR/WALTER BOLLOZOS

THE PESO plunged against the dollar on Monday to log its weakest close so far this year following signals of further easing from a Monetary Board member to help cushion the Philippine economy from the impact of a widening graft scandal on growth prospects.

The local unit closed at P58.90 versus the greenback, sinking by 27.5 centavos from its P58.625 finish on Friday, Bankers Association of the Philippines data showed, extending its slide to an eighth consecutive session.

This was an over 10-month low for the peso as this marked its worst close since it finished at its record low of P59 on Dec. 19, 2024.

The peso opened Monday’s session slightly stronger at P58.60 versus the dollar. It climbed to as high as P58.50, while its weakest showing was at P58.92 against the greenback.

Dollars exchanged rose to $1.6 billion on Monday from $1.39 billion on Friday.

The peso sank on Monday following dovish comments from Benjamin E. Diokno, who is a member of the Bangko Sentral ng Pilipinas’ (BSP) policy-setting Monetary Board, amid growth concerns, the first trader said in a Viber message

“The pair closed higher on a weaker peso due to former BSP Governor Diokno’s statement saying that he sees more easing this year, alongside dollar demand on stronger US-China trade deal expectations,” the second trader said in a phone interview.

“Local market sentiment is partly weighed by political noise in recent weeks as a potential distraction from the economy and reforms,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The Philippine central bank may cut its key interest rate again in December and further next year, as the economic fallout from a corruption scandal may linger through the end of 2026, an official said, Bloomberg reported.

“I would expect another 25-basis-point cut” at the next meeting in December, Mr. Diokno said in an interview with Bloomberg Television’s Avril Hong on Monday.

Further rate cuts are possible “maybe sometime next year,” as policymakers assess economic growth and employment data, with inflation under control, according to Mr. Diokno.

The BSP reduced its benchmark interest rate by a quarter point this month as a corruption scandal in the government’s flood control projects has threatened the country’s economic outlook. Its next rate-setting meeting is scheduled for Dec. 11.

Mr. Diokno, who once helmed the central bank as well as the finance and budget departments, said the economy may “slow down a bit” due to the corruption controversy and trade uncertainties. He said 2026 will be “a transition period” as President Ferdinand R. Marcos, Jr. fixes the problem.

In July, Mr. Marcos exposed corruption in flood-control projects worth billions of pesos. Many of the projects were either substandard or nonexistent, leading to investigations that have implicated key public works officials and several lawmakers, who have denied wrongdoing. The allegations fueled a broad exit by foreign investors in the stock market.

“We will probably be able to recover from this mess by the end of next year. And 2027 and 2028, we’ll be back on track,” Mr. Diokno said.

For Tuesday, the first trader said the peso could rebound on profit taking and before an expected rate cut by the US Federal Reserve.

Both the first trader and Mr. Ricafort see the peso moving between P58.75 and P59 per dollar on Tuesday, while the second trader expects it to range from P58.60 to P58.90. — A.M.C. Sy with Bloomberg

The gold FOMO trade is too late

STOCK PHOTO | Image by Rawpixel.Com from Freepik

By Nir Kaissar

WHEN I can’t listen to a podcast without someone trying to sell me gold, when money managers tell me clients are jonesing for the shiny metal, and when friends call to ask what I think about buying it, I know without looking at a single chart that the price of gold has gone vertical and that FOMO has set in.   

And wouldn’t you know, the price of gold has skyrocketed this year, in one of the biggest rallies since its price began to float freely in 1968. Predictably, Google searches for “how to buy gold” are at a record high. Net flows to US-based gold mutual funds and exchange-traded funds have topped $35 billion this year through September, according to Morningstar, Inc., the largest nine-month haul since at least 2005.

Which begs the question: Should investors own gold? I have no doubt that Wall Street, which never misses an opportunity to peddle a hot asset, suddenly thinks so. Morgan Stanley’s Mike Wilson has suggested that investors in a traditional 60/40 stock/bond portfolio move half the bond allocation to gold, rejiggering their portfolio into 60/20/20 stock/bond/gold.

At first glance, this looks like an upgrade. The gold-infused portfolio would have beaten a 60/40 comprised of the S&P 500 Index and a basket of US government and corporate bonds by 0.7 percentage points a year from April 1968 through September, including dividends.

But there are devils in the details. For one, gold and bonds are not interchangeable. Gold was more than three times as volatile as bonds over the past six decades, as measured by annualized standard deviation. Gold paid investors 8.5% a year over that time, 2.1 percentage points better than bonds for its additional volatility. Investors who swap bonds for gold can expect higher returns but should also brace for a bumpier ride.

Gold resembles stocks more than bonds in terms of risk, although stocks have been better performers. Since 1968, gold has been about 20% more volatile than the S&P 500 while trailing it by 2.3 percentage points a year. Investors looking to boost their 60/40 portfolio with gold can do just as well — and possibly better — by allocating more to stocks instead.

Stocks have another advantage over gold: They are more reliable performers. Most investors don’t have six decades to invest, so what happens in shorter periods is often more consequential. This is where gold loses its luster.

Over rolling 10-year periods, stocks and bonds have beaten gold most of the time. That’s because, unlike stocks or bonds, gold has experienced long lulls — the price of gold was the same in 2007 as it was nearly three decades earlier in 1980 — interrupted occasionally by quick bursts, like the one now underway. In that regard, gold has more in common with its digital alternative Bitcoin than traditional assets.

Of course, not everyone buys gold based on cold calculation. Many gold bugs are famously motivated by fear. Leaving aside the strange fact that a metal more volatile than stocks is widely viewed as a safe haven, it’s worth examining how previous fear-inspired gold trades have turned out.

In the past two decades, flows to gold funds spiked around the 2008 financial crisis, President Donald Trump’s first inauguration in 2016, and the 2020 COVID pandemic. Each time, the gold rally fizzled when fears subsided, and stocks ultimately kept pace or outperformed, even after accounting for gold’s recent surge.

This time, many gold investors seem to fear a tariff-induced collapse of the dollar and higher inflation. Bond markets don’t share those inflation concerns, at least for now. Treasury yields have declined this year, and inflation expectations remain anchored around the Federal Reserve’s 2% target.

And even if the dollar is set to decline, it’s not obvious that gold will offset those losses. There’s been a relatively weak inverse correlation between gold and the US dollar since 1968 (-0.29 counted monthly). There were only three big dollar declines in that time, and gold’s record is mixed. It surged when the dollar declined during the 1970s and in the years leading up to the financial crisis, but it was mostly flat from 1985 to 1992.

A surer way to hedge against a declining dollar is to own a broad basket of non-US currencies. This is where stocks come in handy yet again. A globally diversified portfolio of companies allows investors to simultaneously profit from growing businesses while gaining exposure to every currency in the developed world and those of many developing countries.

I suspect the fears now driving gold will pass and that this rally will fade with them. But go ahead and buy gold if you want. Just don’t expect a windfall. The time for that was before this rally started.

BLOOMBERG OPINION

Entertainment News (10/28/25)

SB19 wins big at first Filipino Music Awards

P-POP boy group SB19 took home the most trophies at the inaugural Filipino Music Awards. Their six wins include Artist of the Year, People’s Choice Award, Pop Song of the Year, and People’s Song Choice Award for “DUNGKA!,” and Concert of the Year and Tour of the Year for the Simula and Wakas tour. OPM band Cup of Joe was the second most-awarded, bringing home Album of the Year for Silakbo and Song of the Year for “Multo.” Sony Music Philippines won Music Company of the Year, while legacy awards were given to Jose Mari Chan, the late Pilita Corrales, and Ang Misyon, Inc.

HBO Max launches IT: Welcome to Derry

THE HBO Original series IT: Welcome to Derry is now on HBO Max. As part of promotions for the show, activations of red balloons can be found in major cities worldwide physically and virtually, including New York, Los Angeles, Madrid, Paris, and Cappadocia, as well as locally in Bangkok, Singapore, Taipei, Hong Kong, and Manila. Based on Stephen King’s 1986 novel It, the new series serves as a prequel to the films It (2017) and It: Chapter Two (2019).

Pop group FINIX’ music film raises rehab funds

P-POP girl group FINIX has released their newest single and music film, “Thanks for the Rain,” a cinematic, self-directed piece that turns the pain of loss into a call for empathy and accountability. The release, which forms Chapter 2 of their ongoing “aRCHIVE_404” anthology, shines a spotlight on the resilience of Filipinos affected by flooding and the systemic failures that let tragedy repeat. All music video proceeds will be donated to the Philippine Red Cross in support of flood relief and rehabilitation efforts. “Thanks for the Rain” is out now on all digital music streaming platforms.

Neocolours returns to City of Dreams’ CenterPlay

OPM BAND Neocolours is set to light up City of Dreams Manila’s CenterPlay once again, headlining its concert series on Oct. 29, starting 9 p.m. The one-night-only performance aims to take fans on a journey through the 1990s era of Filipino pop rock music. Their hits include “Tuloy Pa Rin,” “Say You’ll Never Go,” “Kasalanan Ko Ba,” and “Hold On.” Live band and DJ performances alternate from 8 p.m. to 1:30 a.m. Seats start at P2,500, inclusive of consumables such as bar bites, burgers, fries, and beverages. VIP Couch Seats for groups of eight are available at P20,000, while VIP Small Tables for groups of four are priced at P10,000, both inclusive of consumables.

Tyla releases new single and music video

GRAMMY-WINNING superstar Tyla has dropped her latest single “Chanel.” Accompanied by a music video directed by Aerin Moreno, the song arrives as she prepares to embark on her first headlining tour through Asia next month. She is set to perform in Tokyo, Bangkok, Hong Kong, Jakarta, Manila and Singapore.

Henry Moodie releases debut album

POP STAR Henry Moodie has released his debut album, mood swings, out now via Robots & Humans (UK) and Columbia Records (US). On mood swings, Moodie explores his story so far, examining everything — love, heartbreak, relationships, friendship, sexuality, mental health, and growing up. The album chronicles his journey since he first started releasing music in 2023. The album is out now on all digital music streaming platforms.

Spotify Tatak Pinoy Live invites fans to vote online

SPOTIFY has launched Spotify Tatak Pinoy Live, a fan-powered stage. In partnership with TV5’s music countdown program Vibe, Spotify Tatak Pinoy Live lets listeners decide which Filipino artist headlines the stage each month. For each cycle, three tracks from the Tatak Pinoy playlist will be nominated and listeners can vote directly on Spotify to decide which artist will take the stage. Each user may only submit one entry. Entries for the current cycle will be accepted until Nov. 4, 11:59 p.m. The three nominees are pop-alternative rock band Over October with “Dahan,” indie-alternative band Dilaw with “BLACK N’ WHITE,” and pop artist Arthur Miguel with “Sulyap.” Fans can cast their votes and stream through the Vibe with Tatak Pinoy playlist on Spotify.

Arkin Magalona releases debut single as BARQ

ARKIN MAGALONA has joined Sony Music Entertainment under the moniker BARQ. To celebrate, the rookie rapper has launched his official debut single, “Shake Dat Thang.” Produced by Kyleaux, the upbeat banger is a Y2K revival. The youngest son of the late rapper Francis Magalona revealed that he picked “Shake Dat Thang” as his lead single because it embodies his intent to “disrupt, redefine, and celebrate modern hip-hop with authenticity and flair.” The single is out now on all digital music streaming platforms.

Spotify introduces RADAR Creators Philippines

SPOTIFY has unveiled RADAR Creators Philippines, spotlighting emerging Filipino podcasters redefining the local podcasting scene. It includes Kim Atienza’s Ano Ba Talaga? With Kuya Kim, Karylle Tatlonghari-Yuzon’s K’s Drama, Chariz Solomon and Buboy Villar’s Your Honor, Sophie Prime’s DAGOK TIME!, and Yani Villarosa’s yani’s room. Each represents a different facet of Filipino storytelling. The program provides on-platform editorial promotion, marketing support, and mentorship opportunities. These podcasts can be found on Spotify’s RADAR Creators Philippines playlist.

Jake Vargas frontman for new band Dear Dina

ACTOR and singer Jake Vargas is the frontman of Dear Dina, a six-piece band that just made their official debut with the single “Nabighani.” Dear Dina aims to bring “a fresh, heartfelt, and youthful sound to OPM.” The track tells a story of love, shyness, and connection, inspired by Mr. Vargas’ real-life love story with his girlfriend, actress Inah de Belen. “Nabighani” is out now on all digital music streaming platforms.

Bacolod filmmaker bags Best Director at Active Vista

BACOLOD filmmaker Vincent Joseph Entuna has won the Best Director Award at the Active Vista Human Rights Film Festival. He earned the award with his short film Sa Pwesto ni Pistong (The Barber’s Chair). The film, set during the Martial Law era, follows a humble barber, Teopisto, and his nephew, Carlos, as they witness the gradual decay of freedom and the consequences of remaining neutral within their community. The Active Vista Human Rights Film Festival, organized by DAKILA, is one of the country’s leading platforms for socially conscious cinema.

The Bloomfields drops new single

INDIE BAND The Bloomfields is back with “Balikan,” a new track that yearns for the beauty of simpler days. Produced by Lakan Hila, the band’s keyboardist and lead guitarist, “Balikan” contains rich, lush textures and melodic sensibilities that recall George Harrison’s timeless sound and the dreamy hues of late 1960s and early ’70s psychedelia. It is out now on all digital music streaming platforms.

League of Legends: Wild Rift marks anniversary with collab

HIT GAME League of Legends: Wild Rift is celebrating its 5th anniversary with a collaboration with NINGNING of the K-pop girl group aespa. Riot Games teamed up with the pop artist on “Miss This Life,” an electro-pop anthem inspired by players’ journeys and in-game champions. The song debuted in-game and across major streaming platforms as part of the anniversary celebration, with a music video highlighting memorable champion moments and fan nostalgia. In addition, Nidalee, the iconic huntress from the original League of Legends, has joined the Wild Rift edition, adding a dynamic new jungle experience for players.

Filipino filmmaker brings short films to global stage

THE short film Bakit Ako Sinusundan ng Buwan? (Moon Under My Feet), written and directed by Richard Soriano Legaspi, has garnered international acclaim after being officially selected to compete at the CAM International Festival for Documentary and Short Films in Egypt this December. The film follows a man (Jemuel Satumba) who finally returns to his hometown after years of working overseas. Also competing at the CAM international film festival is Legaspi’s short documentary Maliliit na Hakbang (Small Steps), which follows the You-Kalele Kids Zambales, a group of children from San Felipe, Zambales, who dream of a future in music despite facing individual limitations and challenges.

Margin pressures, external headwinds temper CIC’s Q3 profit

CONCEPCION.PH

CONCEPCION Industrial Corp. (CIC) reported a 24.74% decline in its third-quarter attributable net income to P107.2 million, as rising costs and external headwinds weighed on profitability despite higher revenues.

Gross revenues for the quarter rose by 2.36% to P3.88 billion from P3.79 billion a year earlier, driven by stronger sales in refrigeration, laundry, and other appliances, as well as commercial products. The increase, however, was partly offset by weaker demand for residential air conditioners, the company said in a stock exchange disclosure on Monday.

“While revenue growth continued, margin pressures and external headwinds tempered profitability. We are actively managing costs and optimizing operations to preserve profitability,” Chief Finance and Operating Officer Rajan Komarasu said in a statement.

Gross expenses rose by 4.62% to P3.72 billion from P3.56 billion last year.

For the January-to-September period, Concepcion Industrial’s attributable net income grew by 15.65% to P641.46 million from P554.66 million in the same period in 2024.

Total group revenues, including contributions from Concepcion Midea, Inc., rose by 2.57% to P13.95 billion from P13.60 billion.

The company said it continues to generate revenue through its subsidiaries Concepcion-Carrier Air Conditioning Company, Concepcion Durables, Inc., Cortex Technologies Corp., and Tenex Services, Inc., which sell and service air conditioners, refrigeration, and laundry and kitchen appliances. It also operates Concepcion-Otis Philippines, Inc., which handles elevators and escalators, and Teko, its appliance repair and maintenance platform.

“Our third-quarter performance reflects our commitment to serving our customers in a soft market,” Chief Executive Officer Ariel Fermin said. “We continued to enhance brand relevance and deliver superior value across our product portfolio, demonstrating the resilience of our diversified business model.”

On Monday, shares in Concepcion Industrial fell by 1.92%, or 26 centavos, to close at P13.30 apiece at the local bourse. — Alexandria Grace C. Magno

PNB books higher net income as revenues increase

BW FILE PHOTO

PHILIPPINE National Bank (PNB) saw its net income rise by 25.79% to P6 billion in the third quarter from P4.77 billion, backed by higher revenues.

This brought its earnings for the first nine months to P18.51 billion, up by 22.91% from P15.06 billion a year prior on the back of an 8% increase in its revenues, it said in a disclosure to the stock exchange. Its financial statement was unavailable as of press time.

The bank’s net interest income increased by 8.68% to P13.53 billion in the third quarter from P12.45 billion.

Its net service fees and commission income also went up by 7.69% to P1.4 billion from P1.3 billion.

Meanwhile, other income declined by 36.93% to P1.11 billion from P1.76 billion amid lower gains from trading and investment securities and foreign exchange.

This brought PNB’s total operating income for the third quarter to P16.05 billion, rising by 3.48% from P15.51 billion a year prior.

On the other hand, the bank’s operating expenses climbed by 8.55% to P8 billion from P7.37 billion.

PNB’s total assets stood at P1.25 trillion at end-September, with total liabilities at P1.02 trillion.

Total equity was at P233.99 billion.

“We expect steady business growth with a strong plan in place to grow corporate, commercial and consumer businesses. The bank’s plan for digitalization will further expand opportunities across all areas of the business as the bank prepares itself for advancing innovations that will prioritize improving service to the bank’s customers,” PNB President Edwin R. Bautista said in a statement.

“The bank is now harvesting the benefits from focusing on the improvement in the quality of the lending portfolio through deliberate acquisition of quality customers and improvements in the credit and lending processes and policies,” PNB Chief Financial Officer Francis B. Albalte said.

The bank’s shares rose by P1.10 or 2.17% to end at P51.70 apiece on Monday. — AMCS

ARROW Act to unlock infrastructure projects, boost property values — analysts

Workers are seen mixing cement at a construction site in Quezon City, May 19, 2020. — PHILIPPINE STAR/ MICHAEL VARCAS

By Beatriz Marie D. Cruz, Reporter

LONG-DELAYED infrastructure projects in the Philippines could gain momentum with the passage of the Accelerated and Reformed Right-of-Way (ARROW) Act, according to analysts.

Republic Act No. 12289, signed last month by President Ferdinand R. Marcos, Jr., amended the Right-of-Way Act of 2016 to make property acquisition faster, more transparent, and predictable.

Under the new law, agencies and private concessionaires must make upfront deposits on properties slated for acquisition — including crops, trees, and improvements — equivalent to 15% of their market value.

“By standardizing compensation and requiring upfront deposits, both landowners and developers gain greater transparency and security,” said Jamie S. Dela Cruz, research manager at KMC Savills.

“For the property sector, this translates into clearer growth corridors and faster value appreciation in areas near planned infrastructure,” she added.

“Developers, investors, and businesses can plan with more certainty, while landowners benefit from more predictable compensation.”

Joey Roi H. Bondoc, director and head of research at Colliers Philippines, said the amended RoW Act will support real estate expansion outside Metro Manila.

“You cannot achieve both infrastructure implementation and decentralization if you cannot acquire the properties needed to build infrastructure,” he said.

Analysts have noted developers’ growing interest in regional areas such as Pampanga, Cebu, Bacolod, and Davao, amid favorable economic conditions and talent pools.

However, Ms. Dela Cruz cautioned that uneven implementation at the local level and potential speculative price surges in acquisition areas remain risks.

Right-of-way bottlenecks have long hindered infrastructure projects, affecting property developers’ expansion plans.

Beyond solving RoW bottlenecks, the government should strengthen urban planning and zoning to prevent congestion and ensure that infrastructure projects support balanced growth, she said.

She also stressed the need for more efficient permits, land titling, and property registration, as well as affordable housing for middle-income and working-class households.

“It should also ensure that public-private partnerships in key growth areas align infrastructure with commercial, industrial, and residential demand,” she added.

“If these issues are addressed together, the ARROW Act could become a genuine catalyst not only for infrastructure delivery but also for a more competitive, resilient, and inclusive Philippine property market,” Ms. Dela Cruz said.

ASEAN summit for prosperity, Philippines’ fiscal condition

Big events were happening in Kuala Lumpur at the ASEAN Summit, which opened on Oct. 26 and ends today, the 28th. Last Sunday saw the 47th ASEAN Summit and President Ferdinand R. Marcos, Jr. attended. Then came the ASEAN-US Summit with US President Donald Trump, and the ASEAN-Japan Summit with Japan’s new prime minister, Sanae Takaichi.

The 28th ASEAN Plus Three (with China, Japan, and South Korea) Summit was held yesterday, then the 20th East Asia Summit, the ASEAN plus India, Australia, New Zealand, the US, and Russia. Brazil and South Africa attended as observers. Today will see the handing over ceremony of the ASEAN Chairmanship from Malaysia to the Philippines, to begin on Jan. 1, 2026.

In honor of the ASEAN Summit, I gathered some basic economic data about the major economies of ASEAN — six countries out of the 11 members — then their major trade partners in the region, America, and Europe.

In GDP size at purchasing power parity (PPP) values, the top five are China, the US, India, Russia, and Japan. When it comes to power generation in terawatt hours (TWh), the same countries are in the top five.

Looking at the GDP growth average for 2022-2024, the top three fastest growing countries were India, Vietnam, and the Philippines. The slowest were Germany, Japan, and France. When it comes to inflation rate, the highest are Russia, the UK, and Brazil; the lowest are China, Taiwan, Thailand, and Malaysia.

In merchandise exports, despite Trump’s tariff hikes which kicked off in April, all of East Asia have actually experienced expansion in exports; India’s exports were flat, and Australia’s are declining, as are the US’ and Europe’s (see Table 1).

We should focus on industrialization, investment, trade expansion, and economic prosperity, not war mongering. The ASEAN is a good venue for this long-term goal.

THE STATE OF OUR CASH
Last week, the Bureau of the Treasury (BTr) released the cash operations report and fiscal condition for September this year. Here I compare the totals for January-September of the last four years.

The budget deficit by end-2025 may exceed the programmed P1.6 trillion as it was already P1.1 trillion by September (see Table 2).

The allotment to local government units (LGUs) via the National Tax Allotment (NTA) keeps rising, from P871.4 billion in 2024, the programmed P1.03 trillion in 2025, and P1.19 trillion in 2026. The Department of Finance (DoF) has targeted that LGUs would fund services in health, education, agriculture and environment, roads and infrastructure, technology, and security and social protection (HEARTS).

DoF secretary and LANDBANK Chairman Ralph G. Recto also delivered cash assistance, particularly to the earthquake-damaged provinces of Cebu and Davao Oriental. In addition, he unveiled higher tax-free benefits for Filipino workers nationwide, including higher tax-exempt monetized unused vacation leave credits for private employees from 10 to 12 days. Good move there, Secretary Recto.

Yesterday I attended the 2025 Fiscal Policy Conference organized by the Department of Budget and Management (DBM), held at the UP College of Law. The plenary speakers in the morning included University of the Philippines (UP) National College of Public Administration and Governance (NCPAG) Professor Emeritus Alex Brillantes, UP School of Economics Professor Emeritus Winnie Monsod, University of Asia and Pacific Professor Emeritus Jess Estanislao, and Jose Syquia of the Asian Development Bank. The plenary discussion was moderated by DBM Undersecretary Margaux Salcedo. The Keynote Address before lunch was given by DBM Secretary Amenah F. Pangandaman.

The afternoon panel speakers included DoF Undersecretary Renato Reside, Jr., Department of Economy, Planning, and Development Undersecretary Joseph “Dockoy” Capuno, academics from Ateneo, De La Salle, UP NCPAG, other government agencies like the Bangko Sentral ng Pilipinas and Congressional Policy and Budget Research Department.

From the abstract of the paper “Select Application of Data Science in Public Finance: The Case of the Philippines,” by Reside, Ortillan, and Bonico, they focused on two important DoF operations — forecasting of flows of public revenues (including taxes and customs duties), and explaining local tax effort ratios across the country.

From the abstract of the paper “Catching them at first light: Predictors of project restructuring in the Investment Coordination Committee” by Capuno, Cambel, and Gonzalvo, they wanted to identify via regression methods projects that are likely to be delayed and restructured causing higher costs.

Public fora like this are important, help engage the public (especially the economics and public finance researchers) to find ways to control the rising public debt and rising interest payment that add pressure for the avoidance of tax cuts, if not future tax hikes.

 

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

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