Israel says it will let food into Gaza after announcing new ground assault

May 19, 2025 | 10:06 am

CAIRO/JERUSALEM – Israel will ease its blockade and let limited amounts of food into Gaza, Prime Minister Benjamin Netanyahu’s office said on Sunday, after the military announced it had begun “extensive ground operations” in the northern and southern parts of the enclave.

Facing mounting pressure over an aid blockade it imposed in March and the risk of famine, Israel has stepped up its campaign in Gaza, where Palestinian health officials said hundreds have been killed in attacks in the past week, including 130 overnight.

“At the recommendation of the IDF (Israel Defense Forces), and out of the operational need to enable the expansion of intense fighting to defeat Hamas, Israel will allow a basic amount of food for the population to ensure that a hunger crisis does not develop in the Gaza Strip,” Netanyahu’s office said.

Eri Kaneko, a spokesperson for U.N. aid chief Tom Fletcher confirmed the agency had been approached by Israeli authorities to “resume limited aid delivery,” adding that discussions are ongoing about the logistics “given the conditions on the ground.”

Israel made its announcement after sources on both sides said there had been no progress in a new round of indirect talks between Israel and the Palestinian militant group Hamas in Qatar.

Netanyahu said the talks included discussions on a truce and hostage deal as well as a proposal to end the war in return for the exile of Hamas militants and the demilitarization of the enclave – terms Hamas has previously rejected.

The Israeli military suggested in a later statement that it could still scale down operations to help reach a deal in Doha. Military chief Eyal Zamir told troops in Gaza that the army would provide the country’s leaders with the flexibility they need to reach a hostage deal, according to the statement.

Israel’s military said it had conducted a preliminary wave of strikes on more than 670 Hamas targets in Gaza over the past week to support “Gideon’s Chariots”, its new ground operation aimed at achieving “operational control” in parts of the enclave. It said it killed dozens of Hamas fighters.

Gaza’s Health Ministry said in the week to Sunday alone, at least 464 Palestinians were killed.

“Complete families were wiped off the civil registration record by (overnight) Israeli bombardment,” Khalil Al-Deqran, Gaza health ministry spokesperson, told Reuters by phone.

The Israeli campaign has devastated Gaza, pushing nearly all of its two million residents from their homes and killing more than 53,000 people, many of them civilians, according to Gaza health authorities.

Israel has blocked the entry of medical, food and fuel supplies into Gaza since the start of March to try to pressure Hamas into freeing its hostages and has approved plans that could involve seizing the entire Gaza Strip and controlling aid.

International experts have warned of looming famine.

QATAR TALKS

Asked about the Qatar talks, a Hamas official told Reuters: “Israel’s position remains unchanged, they want to release the prisoners (hostages) without a commitment to end the war.”

Hamas was still proposing to release all of its Israeli hostages in return for an end to the war, the pull-out of Israeli troops, an end to a blockade on aid for Gaza, and the release of Palestinian prisoners, the Hamas official said.

A senior Israeli official said there had been no progress in the talks so far.

Israel’s declared goal in Gaza is the elimination of the military and governmental capabilities of Hamas, which attacked Israeli communities on October 7, 2023, killing about 1,200 people, mostly civilians, and seizing 251 hostages.

In Israel, Einav Zangauker, mother of hostage Matan Zangauker, said Netanyahu was refusing to end the war in exchange for the hostages for political reasons.

“The Israeli government still insists on only partial deals. They are deliberately tormenting us. Bring our children back already! All 58 of them,” Zangauker said in a social media post.

TENTS ABLAZE

One of Israel’s overnight strikes hit a tent encampment housing displaced families in Khan Younis in southern Gaza, killing women and children, wounding dozens and setting tents ablaze, medics said.

Later on Sunday, Gaza’s health ministry said the Indonesian Hospital, one of the largest partially functioning medical facilities in northern Gaza, had ceased work because of Israeli fire.

Israel’s military said its troops were targeting “terrorist infrastructure sites” in northern Gaza, including in the area adjacent to the Indonesian hospital.

Hamas neither confirmed nor denied reports on Sunday in Arab and Israeli media that its leader, Mohammed Sinwar, was killed in last week’s airstrikes on a tunnel below another hospital further south in Gaza.

Gaza’s healthcare system is barely operational and the blockade on aid has compounded its difficulties. Israel blames Hamas for stealing aid, which Hamas denies.

“Hospitals are overwhelmed with a growing number of casualties, many are children,” said Al-Deqran, the health ministry spokesperson.

The Palestinian Civil Emergency Service said 75% of its ambulances could not run because of fuel shortages. It warned that within 72 hours, all vehicles may stop. – Reuters

Britain poised to reset trade and defense ties with EU

May 19, 2025 | 10:03 am

london-5297395_1280 — STOCK PHOTO | Image by Pierre Blaché from Pixabay

LONDON – Britain is poised to agree the most significant reset of ties with the European Union since Brexit on Monday, seeking closer collaboration on trade and defense to help grow the economy and boost security on the continent.

Prime Minister Keir Starmer, who backed remaining in the EU, has made a bet that securing tangible benefits for Britons will outweigh any talk of “Brexit betrayal” from critics like Reform UK leader Nigel Farage when he agrees closer EU alignment at a summit in London.

Mr. Starmer will argue that the world has changed since Britain left the bloc in 2020, and at the heart of the new reset will be a defense and security pact that could pave the way for British defense companies to take part in a 150 billion euros ($167 billion) program to rearm Europe.

The reset follows U.S. President Donald Trump’s upending of the post-war global order and Russia’s full-scale invasion of Ukraine, which have forced governments around the world to rethink ties on trade, defense and security.

Britain struck a full trade deal with India earlier this month and secured some tariff relief from the United States. The EU has also accelerated efforts to forge trade deals with the likes of India and deepen partnerships with countries including Canada, Australia, Japan and Singapore.

Negotiations between the two sides continued into Sunday evening, before European Commission President Ursula von der Leyen and European Council President Antonio Costa were due in London on Monday morning. One EU diplomat cautioned that “nothing is agreed until everything is agreed”.

From the issues up for discussion, Britain is hoping to drastically reduce the border checks and paperwork slowing down UK and EU food and agricultural exports, while access to faster e-gates for UK travelers at EU airports would be hugely popular.

In return, Britain is expected to agree to a limited youth mobility scheme and could participate in the Erasmus+ student exchange program. France also wants a long-term deal on fishing rights, one of the most emotive issues during Brexit.

LIMITED ROOM FOR MANEUVER

Britain’s vote to leave the EU in a historic referendum in 2016 revealed a country that was badly divided over everything from migration and sovereignty of power to culture and trade.

It helped trigger one of the most tumultuous periods in British political history, with five prime ministers holding office before Mr. Starmer arrived last July, and poisoned relations with Brussels.

Polls show a majority of Britons now regret the vote although they do not want to rejoin. Farage, who campaigned for Brexit for decades, leads opinion polls in Britain, giving Mr. Starmer limited room for maneuver.

But the prime minister and French President Emmanuel Macron have struck up a solid relationship over their support for Ukraine, and Mr. Starmer was not tainted with the Brexit rows that went before, helping to improve sentiment.

‘BREAK THE TABOO’

The economic benefit will be limited by Mr. Starmer’s promise to not rejoin the EU’s single market or customs union, but he has instead sought to negotiate better market access in some areas – a difficult task when the EU opposes so-called “cherry picking” of EU benefits without the obligations of membership.

Removing red tape on food trade will require Britain to accept EU oversight on standards, but Mr. Starmer is likely to argue that it is worth it to help lower the cost of food, and grow the sluggish economy.

Agreeing a longer-term fishing rights deal will also be opposed by Farage, while the opposition Conservative Party labelled Monday’s event as the “surrender summit”.

One trade expert who has advised politicians in both London and Brussels said the government needed to “break the taboo” on accepting EU rules, and doing so to help farmers and small businesses was smart.

Trade experts also said Britain benefited from the greater focus on defense, making the deal look more reciprocal, and said improved ties made sense in a more volatile world.

When “trade disruption is so visible and considerable” anything that reduced trade friction with a country’s biggest trading partner made sense, said Allie Renison, a former UK government trade official at consultancy SEC Newgate. – Reuters

FDA approves Novavax COVID vaccine with new conditions

May 19, 2025 | 10:00 am

The U.S. Food and Drug Administration approved Novavax’s COVID-19 vaccine, but limited its use to older adults and people over the age of 12 with conditions that put them at risk due to the illness.

The vaccine’s prospects were thrown into doubt after the FDA missed its April 1 target to approve the shot, which is a more traditional protein-based vaccine unlike its messenger RNA-based rivals. U.S. Health and Human Services Secretary Robert F. Kennedy Jr., a long-time vaccine skeptic, also raised concerns about the efficacy of the shot in a CBS interview.

Novavax Chief Corporate Affairs and Advocacy Officer Silvia Taylor said in an interview that the company had been notified of its approval late on Friday night after substantial back-and-forth with regulators.

She said the company was not concerned about the limited approval, because the population was in line with those who generally seek out the shots.

“I think there’s a growing consensus that you don’t need a universal recommendation anymore, and the U.S. is an outlier in terms of having that,” Ms. Taylor said.

She noted that the outside expert panel that advises the CDC on vaccines has discussed tightening the recommended population of who should receive annual shots.

“It’s just presaging where this is probably going from a policy standpoint,” Ms. Taylor said.

The company, along with competitors Moderna and Pfizer, will also need to file for an additional approval if it needs to change the strain of the virus its vaccine targets for the upcoming COVID-19 immunization season.

That change will be discussed at a meeting of FDA vaccine advisers later this week.

The approval restricts the use of the vaccine, sold under the brand name Nuvaxovid, to individuals aged 65 and older, and those between 12 and 64 who have at least one underlying condition that increases their risk of developing severe illness from COVID.

According to the U.S. Centers for Disease Control and Prevention, a wide list of conditions constitutes an additional risk, ranging from various illnesses, such as diabetes and heart disease, to behaviors like physical inactivity and substance abuse.

Novavax CEO John Jacobs said in a statement that the approval was a “significant milestone” that solidifies a path for people to access the vaccine. The company missed out on the pandemic vaccine windfall due to manufacturing issues and regulatory hurdles.

Former FDA Chief Scientist Jesse Goodman said the agency appears to have overstepped by limiting its approval for Novavax, depriving some people of an opportunity to make a choice about what vaccine they wish to receive.

“The FDA approval process is intended to assess safety and efficacy, and allow access to approved vaccines. It is not the place to make policy recommendations for how to use approved vaccines,” Mr. Goodman said. – Reuters

PSE hikes capital-raising goal to P170B

May 19, 2025 | 12:34 am

By Revin Mikhael D. Ochave, Reporter

THE Philippine Stock Exchange, Inc. (PSE) is increasing its capital-raising target this year to P170 billion from P120 billion and from P82.4 billion in actual capital raised last year, amid an easing trade war between the world’s two biggest economies that had fed fears of a global recession.

The new goal is based on capital-raising activities that have been applied for and does not yet take into account GCash’s planned initial public offering (IPO), PSE President and Chief Executive Officer Ramon S. Monzon told a virtual news briefing last week.

“We expect this year to be a very high capital-raising year, a very successful year for PSE,” he added.

Mr. Monzon said capital raised at the PSE had reached P42.42 billion as of May 14.

Some of the big IPOs expected include those from west zone water concessionaire Maynilad Water Services, Inc. and mobile wallet operator GCash.

“I’m really looking at IPOs, follow-on offerings, stock rights offerings and private placements because after all, the exchange is the platform where companies are supposed to raise capital,” the PSE chief said.

Mr. Monzon hinted that GCash might end up proceeding with its IPO later this year but said it had not yet applied.

“GCash has been talking to us,” he said. “While there has been no formal application yet, I know they are preparing to do an IPO later this year.”

“As to the actual timing, we don’t know when it will be. There are some issues that they are trying to resolve, mainly the valuation and determining what size of IPO they should have that can be absorbed by the market,” he added.

Globe Telecom, Inc., which has a 36% stake in Globe Fintech Innovations, Inc. (Mynt), which owns GCash operator G-Xchange, Inc., last month said its IPO for the e-wallet would proceed, but the timing remained uncertain due to market volatility caused by US tariffs.

The US and China last week announced a 90-day pause on most of their recent tariffs on each other, fueling hopes of a cooldown in their trade war.

The combined US duties on Chinese imports will be cut to 30% from 145%, while China’s levies on US imports will fall to 10% from 125%.

But some analysts have noted that tariffs remain far higher than before Mr. Trump regained office, suggesting that prices of many consumer goods — from cars and food to clothing — would still go up.

Maynilad is targeting a July 17 listing for its P45.8-billion IPO, based on its latest prospectus dated May 14. It is required to offer at least 30% of its outstanding capital stock to the public by January 2027 under its legislative franchise.

Jarrod Leighton M. Tin, an equity research analyst at DragonFi Securities, Inc., thinks the PSE’s capital-raising target this year is attainable.

“It is achievable since Maynilad is required by law to list on the PSE,” he said in a Viber message. “The stock right offerings and follow-on offerings should be straightforward.”

“Now is a better time to conduct IPOs since the US markets have bottomed out with the de-escalation of the trade war,” he added.

Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., also cited better stock market conditions locally and in the US.

“It follows that more fund-raising is possible locally, as companies that will sell shares will be able to sell at a higher price and maximize the proceeds that they would be able to raise,” he said in a Viber message.

PDS INTEREST
Meanwhile, Mr. Monzon said the PSE is seeking to increase its stake in the Philippine Dealing System Holdings Corp. (PDS) to as much as 97% as the market operator awaits developments on three government banks that are selling their interest.

“We’re talking to three government institutions that still own shares in PDS,” he said, referring to Development Bank of the Philippines with 3%, Land Bank of the Philippines with more than 2.5% and Philippine Deposit Insurance Corp. with less than 1%.

“It’s taking a long time for us to acquire this because being government banks, they’re subject to certain rules before they can dispose of their investments,” the PSE chief said. “Right now, they’re trying to get an exemption to go into another public bidding before they can sell to PSE.”

Last week, the PSE increased its beneficial ownership stake in PDS to 91.6% after it closed accession deals for the 17,500 PDS shares held by two members of the Bankers Association of the Philippines (BAP) equivalent to a 0.28% stake.

The PDS operates the Philippine Dealing and Exchange Corp. (PDEx), Philippine Depository and Trust Corp. and Philippine Securities Settlement Corp.

After the market operator’s acquisition of PDS, Mr. Monzon said the PSE had agreed to sell part of its ownership in bond trading platform PDEx to BAP.

“After some serious negotiations, we finally reached an agreement that PSE would be willing to sell part of the PDEx ownership to BAP, but PSE would remain in control at 51%,” he said.

“It’s the banks that do a lot of the trading and generate the revenues for PDEx,” he pointed out. “You want to have them as a partner, not as an adversary.”

“Being the primary stakeholders of the fixed-income market, I think they would be very helpful in coming up with new products that they could trade and offer to their clients,” he added.

In December, the PSE reached a P2.32-billion deal to acquire a 61.92% stake in PDS. The deal involved the acquisition of 3.87 million shares at P600 each.

On Friday, the bellwether PSE index shed 0.02% or 1.33 points to 6,465.53, while the broader all-share index added 0.02% or 0.93 point to 3,769.37.

Election-tied spending may shield growth from tariffs

May 19, 2025 | 12:33 am

election tarpaulins — PHILIPPINE STAR/MIGUEL DE GUZMAN

HOUSEHOLD CONSUMPTION during the election period and state expenditures once the ban on spending on certain infrastructure projects is lifted are expected to cushion the effects of higher US tariffs on Philippine economic growth.

“We project that the impact of US tariffs can be offset by election spending activities and lifting of the ban on certain public works after the elections,” Budget Secretary Amenah F. Pangandaman told BusinessWorld in a Viber Message last week.

Ms. Pangandaman, who heads the Development Budget Coordination Committee (DBCC), said government capital spending is likely to accelerate in the coming quarters.

The Commission on Elections’ 45-day ban on public works spending started on March 28 and ended with the May 12 elections.

The Philippine economy grew slower than expected in the first quarter at 5.4% from 5.9% a year earlier. It was below the government’s 6-8% target for the year.

The slowdown was partly attributed to heightened uncertainty from US President Donald J. Trump’s reciprocal tariffs announced in April. The higher duties, including a 17% tariff on Philippine exports, were suspended for 90 days pending negotiations.

Ms. Pangandaman expects election-related spending to lift economic growth after the 18.7% increase in state expenditures as agencies front-loaded ahead of the election ban.

Department of Economy, Planning, and Development Undersecretary Rosemarie G. Edillon said state spending could moderate in the second quarter since it was covered by the ban in April and parts of May.

Ms. Pangandaman said disbursements are expected to pick up toward the latter part of May to June after the election ban is lifted.

However, analysts warned the boost could be short-lived.

Election-related spending could only provide a “short-term” boost, said John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies.

“This may partially offset the drag from external headwinds like the US tariffs, especially if government agencies frontload infrastructure projects and political campaigns sustain high levels of economic activity,” he said in a Viber Message on Sunday.

He said the momentum from election spending might not be enough to sustain growth beyond the second quarter if export-facing sectors suffer losses or investment slows.

The benefits are “transitory,” while higher tariffs could have longer-term structural effects such as reduced export competitiveness, supply-chain shifts and investor uncertainty, he added.

Philippine export growth slowed to 6.2% in the last quarter from 8.1% a year earlier as companies remained cautious about trade.

Reinielle Matt M. Erece, an economist at Oikonomia Research and Advisory, Inc., said relying on government spending to drive growth is unsustainable and could exhaust the state budget and trigger more borrowings.

He urged the government to pursue trade deals and improve the investment climate instead.

Trade Secretary Maria Cristina A. Roque, Special Assistant to the President for Investment and Economic Affairs Frederick D. Go and Philippine Ambassador to the US Jose Manuel D. Romualdez met with US Trade Representative (USTR) Jamieson Greer in Washington on May 2 to discuss tariffs.

Ms. Roque earlier said the meeting “went very well,” adding that they expect more meetings.

Ms. Pangandaman said they would continue to monitor agencies’ budget use rates, while catch-up plans for delayed programs would be prioritized post-election. — Aubrey Rose A. Inosante

Philippine potential in focus at BusinessWorld Economic Forum 2025

May 19, 2025 | 12:32 am

THE PHILIPPINES is on track to build a bigger and more competitive economy, with government initiatives, private sector investments and international interest coming together to create more opportunities for millions of Filipinos.

The progress will be in focus at the BusinessWorld Economic Forum 2025 at the Grand Ballroom of the Grand Hyatt Manila in Bonifacio Global City, Taguig on May 22.

With the theme “Unlocking Philippines’ Potential,” the forum will bring together policymakers, economists, top executives and business leaders from various industries.

Participants will engage in a full day of discussions about where the country’s economic growth is heading and what challenges must be addressed. The forum will also serve as a platform for open dialogue on critical strategies for sustainable development.

The opening keynote session titled “The Philippines at an inflection point” will be delivered by Arsenio M. Balisacan, secretary of the Department of Economy, Planning, and Development. His presentation is expected to cover both risks and opportunities tied to internal policies and global trends.

Andrew Tsang, country economist for the Philippines at the ASEAN+3 Macroeconomic Research Office (AMRO), will talk about how the Philippines can keep pace with evolving global conditions with a keynote titled “Redefining the Philippines’ role in a changing global economy.”

Special Assistant to the President for Investment and Economic Affairs Frederick D. Go will deliver the second keynote titled “The roadmap to a high-growth economy.” He is expected to provide an overview of economic reforms and how these can spur inclusive development.

Several panel discussions and fireside chats will focus on the challenges affecting Philippine industries and society and offer perspectives from experts and leaders across sectors.

The first panel discussion titled “Building an inclusive and resilient future for the Philippines” will examine ways to strengthen the country’s economic foundation so it can better respond to challenges such as financial disruptions, health emergencies and natural disasters.

Panelists include Francis C. Gotianun, senior vice-president at Filinvest Hospitality Corp.; Monica L. Trajano, vice-president for commercial strategy at Aboitiz InfraCapital Economic Estates; and Robert Dan J. Roces, an economist at SM Investments Corp.

A panel discussion on “Elevating energy transition in the Philippines” will explore the country’s growing electricity demand and the shift to renewable energy. Guests will examine how the Philippines can move away from conventional energy sources and rely more on renewable alternatives.

Among the speakers are Energy Undersecretary Rowena Cristina L. Guevara, Energy Regulatory Commission Chairperson and Chief Executive Officer Monalisa C. Dimalanta, ACEN Corp. Chief Operations Officer for the Philippines Miguel G. de Jesus and First Gen Corp. Chief Revenue Officer Vincent Martin C. Villegas.

The third panel discussion, “Tariffs, trade and Trump: How a second term could hit the Philippines,” will examine how the Trump administration could influence trade and investment flows between the US and the Philippines. Panelists include Allan B. Gepty, undersecretary of the International Trade Group at the Department of Trade and Industry; Danilo C. Lachica, president of the Semiconductor and Electronics Industries in the Philippines, Inc.; and Diwa C. Guinigundo, country analyst at GlobalSource Partners Philippines and former deputy governor at the Bangko Sentral ng Pilipinas.

The last panel discussion titled “Vision 2030: Accelerating the nation’s competitiveness toward economic success” will map out how different sectors can collaborate to boost the Philippines’ position on the global stage by the next decade.

Joining the panel are Alfredo S. Panlilio, president at the Management Association of the Philippines; Eduardo V. Francisco, president at BDO Capital and Investment Corp.; and Ruben J. Pascual, secretary-general at the Philippine Chamber of Commerce and Industry.

Discussions will cover investments in technology, education reforms, infrastructure improvements and the policy changes needed to make the country more attractive to investors and businesses.

Over the years, the BusinessWorld Economic Forum has consistently attracted major names in business and policy, providing attendees with valuable insights and discussions on the nation’s economy.

The event will offer knowledge that can help guide personal decisions, professional plans and broader national strategies. As the Philippines faces new opportunities and challenges, this year’s economic forum is expected to provide fresh ideas and meaningful conversations about the country’s trajectory.

This edition of the BusinessWorld Economic Forum is presented by Ayala Corp. and ACEN and is supported by gold sponsor Metro Pacific Investment Corp.; silver sponsors BDO Capital, DigiPlus Interactive Corp., Federal Land NRE Global, Inc., First Gen Corp., GT Capital Holdings Inc., Megaworld Corp., SM Investments Corp. and SM Supermalls; and bronze sponsors United Coconut Planters Life Assurance Corp., Development Bank of the Philippines, Filinvest Development Corp., FWD Life Insurance Corp., Globe Telecom, Inc., Global Business Power Corp., Manila Electric Co., Meralco PowerGen Corp., National Grid Corp. of the Philippines, San Miguel Corp., SGV & Co. and Toyota Motor Philippines Corp.

The forum is also supported by partner organizations Asian Consulting Group, American Chamber of Commerce of the Philippines, Bank Marketing Association of the Philippines, British Chamber of Commerce of the Philippines, European Chamber of Commerce of the Philippines, Financial Executives Institute of the Philippines, JLCG Creative and Marketing Solutions, Management Association of the Philippines, Philippine Chamber of Commerce and Industry, Philippine Franchise Association and Philippine Retailers Association; and media partners One News and The Philippine STAR.

Philippine banks’ March bad loan ratio softens

May 19, 2025 | 12:31 am

PHILIPPINE BANKS’ bad loan ratio eased to a three-month low in March as total loans increased, according to data from the Bangko Sentral ng Pilipinas (BSP).

The industry’s gross bad loan ratio dipped to 3.3% from 3.38% in February and 3.39% a year earlier.

Bad loans inched up 0.5% to P516.12 billion at end-March from a month earlier and climbed 11.1% from a year ago.

Loans are considered nonperforming once they remain unpaid for at least 90 days after the due date. They are risky assets because borrowers are unlikely to pay.

The loan portfolio of the Philippine banking system rose 3% to P15.63 trillion as of end-March from a month earlier and by 14.2% from a year earlier.

Past due loans were up by 1.3% to P646.37 billion as of March from a month earlier and 9.8% more than a year ago. This brought the past due loan ratio to 4.14% from 4.2% in February and 4.3% a year earlier.

Restructured loans edged up 0.1% to P311.48 billion in March from February and by 5.7% year on year.

Restructured loans accounted for 1.99% of the industry’s total loans from 2.05% a month earlier and 2.15% a year ago.

Banks’ loan loss reserve hit P490.56 billion in March, up 0.2% month on month and 4.9% year on year. This brought the loan loss reserve ratio to 3.14% from 3.23% at end-February and 3.42% in March 2024.

Lenders’ bad loan coverage ratio, which gauges the allowance for potential losses due to bad loans, slipped to 95.05% in March from 95.36% in February and 100.66% a year ago.

Reinielle Matt M. Erece, an economist at Oikonomia Advisory and Research, Inc., attributed the lower nonperforming loan (NPL) ratio to faster bank lending growth.

“As the NPL ratio is simply dividing the NPL amount to total loan growth, faster lending growth may reduce the ratio,” he said in a Viber message.

Outstanding loans of universal and commercial banks rose 11.8% to P13.19 trillion from a year ago, the central bank earlier said.

Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said the double-digit growth in bank loans “effectively expanded the denominator, thereby mathematically reducing the NPL ratio.”

Earlier BSP data showed bank lending rose 11.8% year on year to P13.19 trillion in March.

Mr. Ricafort said rate cuts by the central bank reduced financing costs and improved borrowers’ ability to pay back their loans.

“Possible further rate cuts by the BSP, especially additional rate cuts of 75 basis points (bps) for the rest of 2025 would further reduce borrowing costs,” he said. “That would help improve the payment of loans and debts, thereby helping the easing trend of banks’ NPL ratio.”

BSP Governor Eli M. Remolona, Jr. has said they are open to cutting rates by 75 bps more this year amid easing inflation.

The Monetary Board last month resumed its rate-cutting cycle with a 25-bp cut, bringing the benchmark to 5.5%. The BSP has reduced rates by 100 bps since it kicked off its easing cycle in August last year.

“It is still important to note that despite 2025 posting faster growth in lending compared with 2024, it is starting to lose momentum compared with its fastest growth in January,” Mr. Erece said.

“This is where monetary policy easing may help in boosting lending as well as economic activity,” he added. — Luisa Maria Jacinta C. Jocson

ASEAN Centre for Energy launches acceleration program for clean energy startups

May 19, 2025 | 12:15 am

The ASEAN Centre for Energy (ACE), with funding support from the Government of Japan through the Japan-ASEAN Integrated Fund (JAIF), announced an acceleration program targeting aspiring startup founders and innovators across Southeast Asia: ASEAN Sparks.

ASEAN Sparks is a program designed to address climate and energy pressures by accelerating the growth of climate tech enterprises. The program empowers early-stage startups with the tools, expertise, and networks needed to scale while fostering a gender-inclusive environment that drives impactful clean energy solutions across the region.

Partnering with the United Nations Industrial Development Organization (UNIDO), ASEAN Sparks is designed as a measurable and structured journey through three program phases: Ignite, Catalyze, and Elevate.

The ASEAN Sparks will start with the Ignite phase, which focuses on nurturing early-stage solutions and equipping the founders with the essential skills to scale their business ideas effectively. Most promising participants will then advance to the Catalyze phase, where startups receive targeted mentoring, market-readiness training, and strategic business development support.

The journey culminates in the Elevate phase, during which top-performing startups will pitch their refined solutions on the Grand Pitching Day at the 25th ASEAN Energy Business Forum (AEBF-25) in Kuala Lumpur, Malaysia. These participants will then gain exposure to potential investors, corporate partners, and government stakeholders to explore funding, partnerships, and cross-border scaling opportunities.

Accelerating innovation to address climate challenges

In response to growing climate-related challenges across ASEAN, the program will center around six key energy pillars, which include Energy Efficiency, Renewable Energy, Smart Grids, Energy Storage, Clean Mobility, and Other Climate & Energy Technologies.

“This program is aligned with APAEC (ASEAN Plan of Action for Energy Cooperation), especially in increasing the role of private sector and financial institutions,” Dr. Zulfikar Yurnaid, acting manager of Energy Efficiency and Conservation (CEE) Department of the ASEAN Centre for Energy, said.

“By fostering innovation and entrepreneurship in clean energy, ASEAN Sparks directly supports the development and adoption of energy-efficient solutions across ASEAN.”

Beyond capacity-building, ASEAN Sparks also aims to strengthen the regional ecosystem by connecting diverse stakeholders — from experts and mentors to startups and policy makers — within a collaborative and inclusive environment.

To ensure consistency and alignment throughout the program, all participating experts will receive a certification tailored to the ASEAN Sparks framework. This step supports a shared understanding of the program’s methodology, tools, and impact goals — enabling experts to deliver guidance that is cohesive and high-impact across all stages.

Startups and solutions will be assessed on the technology and business readiness level which includes team credibility and commitment, product impact, as well as market potential and scalability.

The ASEAN Sparks is a dynamic and inclusive platform for energy innovators to synergize in advancing global climate goals, contributing to achieving the Sustainable Development Goals (SDG) 7: Affordable and Clean Energy, and SDG 13: Climate Action. Throughout the program, participants will be accompanied by mentors and trainers to develop their solutions in various areas from technology, business, and impact.

Running from June to October 2025, the ASEAN Sparks program invites aspiring founders, researchers, and innovators to submit their applications for ASEAN Sparks: Ignite by May 22, 2025.

SparkUp is BusinessWorld’s multimedia brand created to inform, inspire, and empower the Philippine startups; micro, small and medium enterprises (MSMEs); and future business leaders. This section will be published every other Monday. For pitches and releases about startups, e-mail to bmbeltran@bworldonline.com (cc: abconoza@bworldonline.com). Materials sent become BW property.

EU-Philippines partnership targets green growth for Filipino food MSMEs

May 19, 2025 | 12:13 am

Working with the European Union (EU), the Department of Trade and Industry’s Center for International Trade Expositions and Missions (DTI-CITEM) will launch an initiative aiming to push for a more resilient Philippine food industry.

The Sustainability Solutions Exchange (SSX) Exhibition and Conference 2025, CITEM’s flagship initiative promoting sustainable practices and resources, will debut as a physical event on May 22-24 at the World Trade Center in Pasay City.

It will be located at the Sustainability Hall within the International Food Exhibition (IFEX) Philippines 2025, the country’s premier international food trade show. This move is set to underscore the country’s commitment to sustainability and circularity in the food industry.

The SSX exhibition will connect entrepreneurs with industry leaders and sustainable solutions providers, showcasing innovations in sustainable food production, packaging, and distribution. It will also feature business matching and pitching sessions to prompt collaborations among industry stakeholders.

The conference will run in parallel at the neighboring Pasay City headquarters of the Philippine Trade Training Center (PTTC). The PTTC Global SME Academy (PTTC-GMEA) is CITEM’s Training and Event Partner for SSX 2025.

Sessions will explore topics aligned with this year’s theme, “Green Innovations: Navigating Sustainability Solutions to Future-Proof the Food Industry.” Discussions will focus on building a circular food system, and tackle challenges and opportunities such as food security, social responsibility, packaging, and sustainable waste management.

The two-day conference will feature local and international experts, including EU Delegation Head of Cooperation Marco Gemmer.

The EU is supporting SSX as part of the EU-Philippine Green Economy Partnership under the Global Gateway — the European strategy for engaging with partners globally to promote investments around shared priorities. The partnership focuses on achieving sustainable and inclusive growth through policy dialogue, championing of local initiatives, investments and the creation of green and decent jobs.

Organized by CITEM, SSX launches with the objective of helping micro, small, and medium enterprises (MSMEs) transition to a circular economy. The event aims to boost entrepreneurs’ global competitiveness and promote adherence to the United Nations Sustainable Development Goals (SDGs).

Interested innovators, policy makers, and advocates are encouraged to visit sustainability.ph now to access the program and register as a delegate to SSX 2025.

Xinyx Design launches flexible learning platform for future microchip designers

May 19, 2025 | 12:11 am

Xinyx Design, one of Southeast Asia’s largest companies in microchip development, has launched what it calls the Philippines’ “first flexible learning platform,” focused entirely on integrated circuit (IC) design, a field at the core of modern electronics.

The platform, LABS by Xinyx, was officially unveiled on May 9 at Colegio de Muntinlupa (CDM). Designed for engineering students and professionals, the program aims to build local talent in IC design and microelectronics — critical components found in everything from smartphones and laptops to medical devices and electric vehicles.

The launch was attended by Muntinlupa City Mayor Ruffy Biazon, CDM President Dr. Teresita Fortuna, DTI-BoI Director Corieh Dichosa, TESDA Deputy Director-General Nelly Dillera, and representatives from the Private Sector Advisory Council, Asian Development Bank, and several academic institutions offering or planning to offer IC design programs.

LABS by Xinyx supplements the traditional BS Electronics Engineering curriculum and offers a new pathway for senior high school students, university students, STEM graduates, educators, and industry professionals to gain hands-on training, expert mentorship, and globally-aligned coursework in IC Design. Courses are delivered through flexible formats such as online, in-person, or hybrid to allow learners from various backgrounds to build real-world engineering skills tailored to current industry demands.

“LABS by Xinyx is the Philippines’ first premium, flexible platform focused on IC Design and Microelectronics. It’s designed to close the skills gap that limits the growth of our semiconductor industry,” Charade Avondo, president of Xinyx Design, said.

The platform aligns with President Ferdinand Marcos, Jr.’s 2024 directive prioritizing the development of the semiconductor and electronics sector. Despite growing global demand, a shortage of IC Design talent persists locally, partly due to outdated curricula and limited access to specialized training in higher education.

Ms. Avondo noted that this will build on the reputation of Filipino workers abroad. Multinationals in Europe and the US, she pointed out, already hold Filipino workers, including engineers, in esteem for their creativity, resilience, and innovation. “Filipino engineers are already trusted leaders in R&D teams abroad. It’s time we bring that level of innovation home,” she said.

IC Design is a vital yet often overlooked component of the global semiconductor value chain, creating and enabling innovations in AI, aerospace, healthcare, renewable energy, automotive tech, defense, and more. LABS by Xinyx sets to position the Philippines as a competitive player not just in electronics manufacturing but in design-led innovation by nurturing Filipino talent and steering young engineers towards this lucrative field.

Mapúa University pushes for creative thinking in Business Education

May 19, 2025 | 12:09 am

In partnership with Arizona State University (ASU), Mapúa is offering students a more interdisciplinary learning experience through courses that blend creativity, critical thinking, and technical skill.

Led by Prof. Corinne Romabiles, the initiative aims to equip future professionals with both analytical rigor and creative fluency, preparing them for a fast-changing world where storytelling, empathy, and culture are increasingly valued alongside strategy and execution.

The programs at Mapúa University E.T. Yuchengco School of Business, in collaboration with ASU, train students to develop agile, creative, and critical thinking skills to succeed in the rapidly changing tech-enabled business industry.

Prof. Romabiles noted this approach to business education is critical for students to develop a foundation that understands the importance of the arts and humanities. “I developed the art-science course to allow students who have probably not gotten so familiar with the humanities to know more about what the liberal arts is about,” she said.

As a business professor at Mapúa University E.T. Yuchengco School of Business, she teaches art-science thinking, or the meeting of art and science, to instill in her students the practice of combining both disciplines in crafting new ideas and innovations in their business strategies.

Through art-science, Prof. Romabiles aims to expose business students to art history, art theory, and art criticism in ways that they could apply to business practice. The ability to think outside the box, read between the lines of literature, comprehend trends in the past, and examine art forms critically hones their innovative thinking and decision-making.

“Art-science reintroduces creative thinking and artistic thinking to students. In courses that are not so familiar with humanities, sometimes, there is so much emphasis on math, science, or history that they forget that there is an intellectual side to the art,” she said. “Art-science is art studies at the service of the hard sciences.”

The university will also apply similar principles with its Global Classroom, which provides students with access to globalized and internationalized learning sessions at ASU. This enables them to immerse themselves in a different culture and hone their soft skills, encouraging them to go beyond conventional thinking and widen their perspectives on business knowledge and strategies.

“The course uses arts to develop critical thinking, so business students have better decision-making skills, and they can sharpen their higher order thinking skills,” Prof. Romabiles explained. She shared that it is also equally important to teach art-science in other programs, like Science, Technology, Engineering, and Math (STEM) courses.

In developing future business professionals, the Mapúa University’s E.T. Yuchengco School of Business collaboration with ASU trains students to find the balance between technical competence, and cultural and creative literacy. While financial models and statistical analysis will always be fundamental to business, the collaboration ensures that the value of the arts is never lost.

Maynilad trims IPO size, eyes July 17 listing

May 19, 2025 | 12:07 am

Maynilad water storage_ — MAYNILADWATER.COM.PH

By Revin Mikhael D. Ochave, Reporter

PANGILINAN-LED water concessionaire Maynilad Water Services, Inc. has reduced the size of its planned initial public offering (IPO), with the listing now scheduled for July 17.

Based on its latest prospectus draft dated May 14, Maynilad’s IPO is now expected to raise up to P45.8 billion, slightly lower than the up to P49 billion indicated in its initial prospectus.

The revised IPO comprises up to 2.29 billion common shares, lower than the earlier maximum of 2.46 billion shares. The indicative maximum price remains at P20 per share.

This offering is also smaller than the country’s largest IPO to date — the P48.6-billion market debut of food and beverage producer Monde Nissin Corp. in June 2021.

The updated structure includes a primary offer of up to 1.66 billion common shares, an overallotment option of up to 249.05 million primary common shares, an upsize option of up to 354.7 million secondary common shares, and 24.9 million primary common shares to be offered to Hong Kong-based investment holding firm First Pacific Co. Ltd., which is also led by Manuel V. Pangilinan.

This compares with the previous allocation of up to 1.78 billion primary common shares, an overallotment option of up to 266.31 million primary common shares, an upsize option of up to 379.29 million primary common shares, and 36.31 million primary common shares for First Pacific.

The latest timetable shows that the listing date has been moved to July 17 from the earlier target of July 10.

The notice of final offer price to regulators is scheduled for July 1, while the offer period will run from July 3 to July 9.

Maynilad is required to offer at least 30% of its outstanding capital stock to the public by January 2027 under the terms of its legislative franchise.

Net proceeds from the IPO will be used to fund Maynilad’s capital expenditure requirements for its water, wastewater, and customer service and information system projects through 2026. A portion of the proceeds will also be allocated for general corporate purposes.

Maynilad’s market debut is one of six IPOs anticipated this year. However, the Philippine Stock Exchange has so far recorded only one: the April offering of Cebu-based fuel retailer Top Line Business Development Corp.

Mr. Pangilinan, chairman of Maynilad, previously said the company would proceed with its IPO despite external uncertainties, including tariff risks under the Trump administration.

“We have to go public by the early part of 2027. We just want to probably finish and comply with the franchise law of Maynilad. I’d like to encourage them to proceed,” he said.

Maynilad appointed BPI Capital Corp., HSBC, Morgan Stanley, and UBS as joint global coordinators and joint bookrunners for the offering. BPI Capital Corp. will also serve as the domestic lead underwriter.

Metro Pacific Investments Corp., which holds a majority stake in Maynilad, is one of three Philippine subsidiaries of First Pacific Co. Ltd., alongside Philex Mining Corp. and PLDT Inc.

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

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