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Philippines, U.S. hold joint maritime drills in South China Sea

PHILIPPINE COAST GUARD/HANDOUT VIA REUTERS

MANILA – Coast Guard vessels of the Philippines and the United States have taken part for the first time in joint maritime exercises with naval and air force units in the contested South China Sea, Manila’s armed forces said on Wednesday.

The exercises, held on Tuesday in waters off Palawan and Occidental Mindoro, involved the Philippine Navy, Air Force, and Coast Guard, alongside the U.S. Coast Guard Cutter Stratton and a U.S. Navy P-8A Poseidon maritime patrol aircraft.

The “maritime cooperative activity,” which was the second for the year and sixth overall since the allies launched the joint activities in 2023, included communication drills and search-and-rescue scenarios, the military said in a statement.

“Joint activities like the MCA reaffirm the Armed Forces of the Philippines’ commitment to modernizing its capabilities and strengthening defense partnerships to secure our national and regional maritime interests,” AFP Chief Romeo Brawner said.

Relations between the Philippines and China have been strained by disputes over sovereignty in the South China Sea, a conduit for more than $3 trillion of annual ship-borne commerce.

China claims most of the strategic waterway despite a 2016 ruling by an international arbitral tribunal that found Beijing’s claims have no basis under international law. China does not recognize the decision. – Reuters

Real estate risks need closer scrutiny

High-rise buildings dominate the Metro Manila skyline. — PHILIPPINE STAR/EDD GUMBAN

EVEN as the Philippine banking system has remained resilient, the International Monetary Fund (IMF) said risks in the real estate sector and consumer credit still require closer monitoring and could prompt the central bank to intervene.

“Financial stability risks remain contained. The banking system has sufficient liquidity and capital buffers, and nonperforming loans (NPL) are low,” an IMF spokesperson told BusinessWorld in an e-mail.

Latest data from the Bangko Sentral ng Pilipinas (BSP) showed the banking industry’s NPL ratio eased to a three-month low of 3.3% in March.

“However, parts of the commercial real estate sector have seen persistently high vacancies and falling rents, and NPLs for housing loans remain elevated,” the IMF said.

Property consultant Colliers Philippines expects the vacancy rate for residential property in Metro Manila to hit 26% by yearend, while office vacancies are projected at 22% this year amid condominium oversupply and slow take-up of unsold units.

The BSP in its latest Financial Stability Report noted the “rising NPLs in the real estate sector.”

The NPL ratio for residential real estate was at 6.82%, while commercial real estate NPLs were 2.18% as of September 2024. The bulk (62.5%) of the real estate loan portfolio consists mostly of commercial loans.

The BSP also earlier said the mid- and low-cost housing segments, which account for a large part of residential real estate loans, have driven the rise in NPLs.

Consumer loans are also another area that the BSP needs to keep an eye on, the IMF said.

“The rapid growth in consumer credit, though a relatively small portion of banking assets, warrants close monitoring,” it said.

BSP data showed outstanding loans of universal and commercial banks rose by 11.8% to P13.19 trillion in March from a year ago.

Consumer loans to residents increased by 23.6% in March to P1.64 trillion, mainly due to the 28.8% jump in credit card loans to P959.43 billion.

The central bank must also be prepared to step in, when necessary, the multilateral institution said.

“The BSP should be ready to adjust macroprudential policy in line with developments in the financial cycle to preempt the buildup of vulnerabilities,” the IMF said.

In the same Financial Stability Report, the BSP said that the financial system’s real estate loan exposure will require “closer monitoring amid evolving market conditions.”

Banks’ real estate exposure ratio rose to 19.75% as of end-December from 19.55% at end-September.

This as total investments and loans extended by Philippine banks and trust departments to the real estate sector grew by 5% to P3.31 trillion as of end-December from P3.15 trillion in 2023.

The BSP monitors lenders’ exposure to the real estate industry as part of its mandate to maintain financial stability. — Luisa Maria Jacinta C. Jocson

DoF eyes at least $200M from CBK privatization

CBKPOWER.COM

By Aubrey Rose A. Inosante, Reporter

THE DEPARTMENT of Finance (DoF) is looking to generate at least $200 million from the privatization of the Caliraya-Botocan-Kalayaan (CBK) hydroelectric power plant (HEPP) complex in Laguna.

“Pricing of CBK is anywhere from $200 million to $600 million (P11.14 billion to P33.43 billion) or higher depending on whether (Energy Regulatory Commission) will issue a price for the Kalayaan offtake,” Finance Undersecretary Catherine L. Fong told BusinessWorld in a Viber message.

The bidding price estimate came from the Asian Development Bank, the transaction advisor that helps the Power Sector Assets and Liabilities Management Corp. (PSALM) to monetize its asset.

Finance Secretary Ralph G. Recto earlier said CBK would likely generate at least P50 billion ($897.99 million).

PSALM is conducting a new bidding process for the 796.64-megawatt (MW) hydroelectric power plant complex, although it has yet to set a minimum bid price. The date for proposal submission is set for June 16.

Experts said the sale of the county’s only operational pumped-storage hydroelectric facility could depend on market appetite.

“Now for what the market is willing to pay is a different story and the beauty of open competition. NAIA (Ninoy Aquino International Airport) was a good example of the market willing to give more revenue share to government than expected,” Finance Assistant Secretary Michael Peter A. Alejandro said in a Viber message.

Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce said market appetite for renewable energy assets, regional energy demands, and interest rate environments will decide the feasibility of the bidding price.

“The $200 million to $600 million range appears reasonable if the plant offers solid financial performance, a favorable market outlook, and strategic value to potential buyers. However, these factors must align to achieve a price at the higher end of the estimate,” he said in a Viber message.

Meanwhile, John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said the proceeds from the potential sale of CBK can help ease the National Government’s fiscal pressures amid a widening deficit.

The National Government’s budget deficit ballooned to P478.8 billion in the first quarter, higher by 75.62% from the P272.6-billion gap in the same period in 2024.

Mr. Rivera said proceeds from the sale of CBK plants would help generate much-needed revenues for the government’s infrastructure projects and social programs.

“Ultimately, the sale should balance three objectives: fiscal relief, operational efficiency, and alignment with the country’s clean energy roadmap,” he said in a Viber message on Tuesday.

Mr. Arce also noted firms that are looking to expand their renewable energy offerings could be interested in making a bid for the CBK complex. Investors seeking long-term results could also be keen on participating in the rebidding.

San Miguel Global Power Holdings Corp., Prime Infrastructure Capital, Inc. and Hexa Philippines Holdings, Inc. have earlier expressed interest in participating in the rebidding for the CBK plants.

CBK is currently under a 25-year build-rehabilitate-operate-transfer contract and power purchase agreement between CBK Power Co. Ltd. and National Power Corp. that ends in February 2026.

The facility includes the 39.37-MW Caliraya in Lumban, 22.91-MW Botocan HEPP in Majayjay, and 366-MW Kalayaan I and 368.36-MW Kalayaan II pump storage power plants in Laguna.

BusinessWorld reached out to the Energy Regulatory Commission for comment, but no reply has been received so far.

PRIVATIZATION EFFORTS
Separately, Ms. Fong said the DoF’s Privatization and Management Office (PMO) office supports the planned P45.8-billion initial public offering of the Pangilinan-led water concessionaire Maynilad Water Services, Inc.

“We’re supporting that because it has the potential to bring in foreign direct investment, and of course, we always support the capital market,” she said.

In addition, Ms. Fong said the PMO is currently in the process of selling the Ecology Villages in Makati City to the occupants.

“There’s no closed sale yet because we’re dealing with the homeowners as a group. It’s still a long process. We’re determining the metes and bounds, we need to subdivide the title, negotiate on the common areas, etc. But it’s an ongoing process. We’re closely focused on this,” Ms. Fong said in mixed English and Filipino.

In February, the privatization office published its revised guidelines for auctioning government assets which allows unsolicited bids, particularly for small properties.

Ms. Fong earlier told reporters that there are 28,000 titles in the database, which include properties as small as 200 square meters, making the acquisition process attractive to ordinary citizens.

Asked if the privatization goal is still pegged at P101 billion, she said the this is a “fluid number.”

“We’ll have more clarity later when the other revenues come in. I always just try to sell as much as I can,” she said.

She also noted that these idle assets incur maintenance costs without generating economic value for the government.

Philippines falls in global startup index for 4th year in a row

The Philippines extended its four-year decline in the 2025 Global Startup Ecosystem Index rankings, falling to 64th place out of 100 countries. — PHILIPPINE STAR/MIGUEL DE GUZMAN

By Beatriz Marie D. Cruz, Reporter

THE PHILIPPINES dropped four spots in the 2025 Global Startup Ecosystem Index amid persistent gaps in infrastructure and regulations, according to global research firm StartupBlink.

In this year’s index, the Philippines slipped to 64th place out of 100 countries with a score of 2.237.

This was the fourth straight year of decline for the Philippines, which ranked 52nd in 2021, 57th in 2022, 59th in 2023 and 60th in 2024.

Philippines continues to fall in Global Startup Ecosystem Index“The ecosystem growth of the Philippines is around 0.56% this year, and it’s being overtaken even by locations that are also decreasing in the rankings,” StartupBlink Head of Data & Consulting Ghers Fisman said in a virtual briefing on Tuesday.

The Philippines’ annual ecosystem growth rate was the lowest in Southeast Asia.

To increase the Philippines’ score, Mr. Fisman said the process of establishing a startup at the business level should be easier. He also noted the importance of faster and wider internet access for Philippine entrepreneurs.

The Global Startup Ecosystem Index evaluates startup ecosystems across 100 countries and 1,000 cities, using scores that assess the quantity and quality of startups and their existing business environment.

“The Philippines is making progress toward becoming a formidable startup ecosystem in the Asia-Pacific region,” StartupBlink said in the report.

The Philippines received total funding of $273.6 million (around P15.22 billion) last year, according to the report.

“The Philippines’ startup ecosystem is anchored by robust sectors such as fintech (financial technology), e-commerce, healthtech, edtech, and software-as-a-service. This diversification is propelled by a large digital consumer base and increasing regional demand,” it said.

StartupBlink noted the Philippines’ attractiveness to foreign entrepreneurs and digital nomads “should allow for successful ecosystem growth — provided more of the local population embraces entrepreneurship.”

The Philippines has six cities in the global top 1,000, led by Manila.

Manila ranked 112th globally, dropping 11 spots from the previous year. It also dropped to 6th place in Southeast Asia rankings and was the only city to see a decline.

“The Philippines’ startup scene remains centralized in Manila, whose ecosystem is twelve times larger than Cebu City’s. This gap has more than doubled since 2020,” StartupBlink said.

However, Manila had the lowest ecosystem annual growth rate among cities in the Philippines at 2.6%.

Cebu City fell 10 spots globally to rank 469th, with an annual growth rate of 9%.

Davao City rose 163 spots to 580th spot globally, as its startup ecosystem grew by 97.7% last year.

Cagayan de Oro and Naga climbed the global rankings at 693rd and 767th, respectively.

New entrants to the global rankings include Iloilo City (744th), Cauayan City, Isabela (1,040th), and Solana City in Cagayan (1,170th).

“The Philippines stands as Southeast Asia’s fastest-growing digital economy, reflecting a dynamic consumer market ripe for innovative startups,” StartupBlink  said.

However, the Philippines faces several challenges that are hampering its development as a mature startup ecosystem.

“The lack of infrastructure is a limiting factor to the country’s economic growth, and entrepreneurs struggle with slow regulatory support for their startups,” it added.

John Paolo R. Rivera, senior research fellow at the Philippine Institute for Development Studies, said the country’s continued decline in the global startup rankings reflect structural gaps in the ecosystem.

“Improving our rank will depend not on isolated programs but on building a dynamic innovation ecosystem with strong interlinkages across the government, academe, industry, and startup founders themselves,” he said in a Viber message.

Key gaps in the local startup scene include poor early-stage funding support, uneven regional startup development, regulatory bottlenecks, and a “brain drain” of digital and entrepreneurial talent, Mr. Rivera said.

To address this, the Philippine government must adequately fund and fully implement the Philippine Startup Development Program, reduce bureaucratic red tape, and harmonize startup registrations and incentives, he added.

Venture capitalists and the private sector should also expand early-stage funding, mentorship, and link Filipino startups to global markets. Academic institutions can support student-founded ventures through incubation, intellectual property protection, and seed grants, Mr. Rivera said.

PHL banks’ profit up nearly 11% in first quarter

PHILSTAR FILE PHOTO

By Luisa Maria Jacinta C. Jocson, Senior Reporter

THE PHILIPPINE BANKING industry’s combined net earnings jumped by 10.6% in the first quarter as both interest and non-interest income rose, data from the Bangko Sentral ng Pilipinas (BSP) showed.

Central bank data showed the banking industry’s net profits climbed to P101.9 billion at end-March from P92.11 billion in the same period a year ago.

This as net interest income went up by 11.6% to P276.23 billion in the first three months from P247.41 billion in the same quarter in 2024.

Interest income increased by 11.1% to P395.99 billion in the first quarter from P356.43 billion a year ago, while interest expense rose by 9.6% to P119.32 billion at end-March from P108.86 billion last year.

Meanwhile, banks’ non-interest income stood at P60.67 billion in the January-March period, higher by 14.5% from P52.98 billion a year earlier.

Earnings from fees and commissions increased by 19.2% to P44.59 billion as of end-March from P37.42 billion a year ago.

However, trading income registered a net loss of P1.17 billion in the first quarter, a reversal of the P1.5-billion gain a year ago.

Lenders’ non-interest expenses rose by 13.1% to P191.01 billion in the period ending March from P168.95 billion year on year.

Meanwhile, the industry’s losses on financial assets widened to P29.83 billion in the first three months of 2025 from P21.81 billion a year ago. Provisions for credit losses likewise grew to P34.89 billion from P25.11 billion last year.

“Faster loan growth this 2025 relative to last year may have driven higher income growth for the banking industry this year,” Reinielle Matt M. Erece, an economist at Oikonomia Research and Advisory, Inc. said in a Viber message.

Latest data from the BSP showed bank lending rose by 11.8% year on year to P13.19 trillion in March.

“This increased the volume of products they were able to sell, i.e. financial products, as interest rates are expected to go down,” he added.

Alfred Benjamin R. Garcia, research head at AP Securities, Inc., said the higher profits are “partly volume-driven,” noting the growth in high-yielding consumer loans.

Earlier BSP data showed consumer loans to residents jumped by an annual 23.6% to P1.64 trillion in March.

“This helped keep net interest margins high even though interest rate levels are lower than where they were at the same time last year,” Mr. Garcia said.

The central bank began its easing cycle in August last year and has reduced borrowing costs by a total of 100 basis points (bps) so far, bringing the key rate to 5.5%.

The Monetary Board has delivered 25-bp rate cuts at each of its policy meetings in August, October, December last year and April this year.

Mr. Erece added that while lower interest rates reduce the margins of banks, it can also spur higher demand for financing services.

BANKING SYSTEM ASSETS
Separate BSP data showed the banking industry’s total assets amounted to P27.64 trillion as of end-March, higher by 7.8% from the P25.65 trillion in the same period in 2024.

Banks’ assets are mainly supported by deposits, loans, and investments. These include cash and due from banks as well as interbank loans receivable (IBL) and reverse repurchase (RRP), net of allowances for credit losses.

The banking sector’s total loan portfolio inclusive of IBL and RRP jumped by 14.5% to P15.14 trillion as of end-March from P13.22 trillion a year ago.

Net investments, or financial assets and equity investments in subsidiaries, increased by 12% year on year to P8.23 trillion.

Net real and other properties acquired stood at P119 billion, up 11.2% year on year.

Banks’ other assets went up by 1.9% to P2.06 trillion as of end-March.

On the other hand, cash and due from banks fell by 29% to P2.1 trillion at the end of the first quarter.

“The continued growth in banks’ total resources may still be largely attributed to the growth in loans and in investments,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“Also supported by the continued growth in bank deposits that partly helped fund the growth in loans and investments,” he added.

Meanwhile, the total liabilities of the banking system grew by 7.4% to P24.18 trillion at end-March from P22.53 trillion a year earlier.

MGen nears halfway mark in P200-B MTerra solar project

TERRA-SOLAR.COM.PH

MERALCO POWERGEN CORP. (MGen), the power generation subsidiary of Manila Electric Co. (Meralco), is nearly halfway toward the completion of the P200-billion MTerra Solar Power Project, with 700 megawatts-peak (MWp) of solar panels targeted for installation by end-July, its president said.

“Probably around 44 to 45% completion,” MGen President and Chief Executive Officer Manuel V. Rubio told reporters on the sidelines of Schneider Electric Innovation Day Philippines 2025 on Tuesday.

Mr. Rubio was referring to the status of what is expected to be the world’s largest integrated solar photovoltaic and battery energy storage system (BESS) facility.

Spanning over 3,500 hectares across Nueva Ecija and Bulacan, MTerra Solar is developing a 3,500-MWp solar power plant and a 4,500-megawatt-hour (MWh) energy storage system.

Mr. Rubio said the company is on track to complete the first phase of the project by the first quarter of 2026.

MGen has already installed 90-100 MWp of solar panels.

Once operational, MTerra Solar will supply clean electricity to approximately 2.4 million households and displace an estimated 4.3 million tons of carbon dioxide per year.

For the planned MTerra Solar 2, Mr. Rubio said the company will execute the project once it secures the necessary land.

Mr. Rubio said MGen is also looking to develop up to a 40-MWh BESS in Cardona, Cebu.

The project is targeted to be operational by the third quarter of 2026.

With MGen’s pipeline projects, the company is expected to surpass its goal of 1,500 MW of renewable energy capacity by 2030.

Meanwhile, Mr. Rubio said MGen has held initial talks with energy solutions company Schneider Electric to integrate predictive analytics and distributed control systems into its coal plant units that are more than 10 years old.

“But I think one of the major opportunities is to actually use AI (artificial intelligence) in how we operate the Terra Solar 1,” he said.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by 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. — Sheldeen Joy Talavera

Innovative financing seen to boost PHL just energy transition

LAWRENCE ANG — LINKEDIN.COM

By Ashley Erika O. Jose, Reporter

CLIMATE SMART VENTURES Pte. Ltd. is optimistic that the Philippines can meet — and potentially exceed — its just energy transition goals through innovative financing mechanisms and stronger corporate commitments to sustainability.

“We were founded at the height of the pandemic, basically as a response to figure out ways to accelerate the shift from fossil fuels to renewables,” Climate Smart Ventures Founder and Managing Partner Lawrence Ang said in an interview with BusinessWorld.

Established in 2020, Climate Smart Ventures is a transition and transaction advisory firm assisting energy companies in Asia in decarbonizing their operations. It provides strategic guidance on financial mechanisms and transition pathways, including the development of environmental, social, and governance (ESG) policies and decarbonization roadmaps.

The firm currently operates in the Philippines, Vietnam, Singapore, Indonesia, and India.

“In emerging markets like Asia, coal is something you love to hate and hate to love. We realized that we need to do this in a just, managed, but also commercially viable way,” Mr. Ang said.

He said Climate Smart Ventures supports companies in designing business models that enable a transition from coal to renewable sources, while taking into account prevailing market conditions and regulatory structures.

“Particularly, how power purchase agreements are structured. You still have to find ways to work with that. Understanding increasing demand for power in these different jurisdictions and also understanding how financing can be used as a tool and other capital market solutions,” he said.

Some local energy firms are also exploring opportunities under a memorandum of understanding signed by the Philippines and Singapore in 2023, which seeks to jointly develop carbon credit mechanisms under Article 6 of the Paris Agreement.

The accord aims to help both countries meet their climate goals by promoting carbon markets and exchanging best practices.

The Paris Agreement commits signatories to limit the rise in global temperatures to well below 2°C from pre-industrial levels, with efforts to keep the increase below 1.5°C.

Transition credits are one example of financing mechanisms being considered. These instruments leverage carbon finance to accelerate the retirement of fossil-fuel assets and their replacement with clean energy, while promoting a just transition.

The Philippines aims to raise the share of renewable energy in its power generation mix to 35% by 2030 and to 50% by 2040. Fossil fuels continue to dominate the current energy mix.

“It is also worth recognizing that these power plant owners have ambitions to decarbonize,” Mr. Ang said. “The target is probably achievable and can even be surpassed with the right mechanism in place.”

“We help them execute a transaction that is feasible. We then come up with the correct financing structure and frameworks,” he added.

Mr. Ang said Philippine energy companies are showing greater willingness to adopt transition tools and shift to clean energy technologies.

“I think you’d be hard-pressed to find companies who aren’t committing to some kind of decarbonization. If you look at all the big companies in the Philippines, at least the big ones, the ones that are driving the power market, everyone is committed to some kind of a net-zero or a clean energy target,” he said.

He also cited the Philippines’ move to open the renewable energy sector to full foreign ownership as a major draw for global investors.

“This kind of policy openness is crucial to attracting capital and technology that will help the country meet its clean energy goals,” he said.

Revisiting the first all-female Everest traverse

Pinay mountaineers share their journey in newly launched book

THE TRIUMPH of three Filipina mountaineers — Noelle Wenceslao, Carina Dayondon, and Janet Belarmino — who conquered the legendary Mt. Everest in 2007, is the focus of a new book titled Live the Dream 2: The First and Only Traverse of Mt. Everest by Women.

A sequel to Live the Dream, which chronicled the first Philippine Mt. Everest expedition in 2006, the second book honors the legacy of the all-Pinay traverse and the vision that fueled it.

Expedition leader Art Valdez authored both books, and he shared that this one documents what was objectively “the more ambitious goal.”

“These women climbed from Tibet in the north side, crossed the summit, and extended their journey into Nepal. It was really a full traverse of the mountain,” Mr. Valdez said at the May 17 book launch in Makati City.

“Against all odds, these incredible women achieved the first and only female traverse of Mt. Everest in the world, a record-breaking feat that remains unmatched to this day,” he added.

For the team, the expedition set out to “capture the hearts and imaginations of Filipinos,” which they are proud to say they achieved. Ms. Wenceslao, Ms. Dayondon, and Ms. Belarmino, all members of the Philippine Coast Guard (PCG), continue to be invited as motivational speakers to talk about their journey, even today.

“For so many years, our story has lived in memories. Today, it finally lives in the pages of a book that can be passed on, not just to mountaineers, but including all dreamers of every kind,” said Ms. Dayondon at the launch.

The PCG commander went on to say that the book captures “the grit and the fears, the cold that bit into our bones, and the courage that brought warmth.”

“Many people think climbing Everest is about strength and skill, but what carried me up that mountain is a purpose. It’s the belief that we Filipinas belong in the highest places in anything we want to do,” she said.

The book, aside from detailing Mr. Valdez’s account of how the expedition went for his three mentees, also delved into the personal journeys of the women.

It tackled Ms. Dayondon’s struggle as a responsible sister and breadwinner, Ms. Belarmino’s unexpected situation as a new mother amid training for the expedition, and Ms. Wenceslao’s challenge of moving forward as a grieving daughter.

For Mr. Valdez, looking back at that eventful year for the book brought no doubt in his mind that “Filipinas are capable of greatness.”

“With a shared vision, good leadership, and a united team, they could overcome any challenge and achieve anything they set their mind to,” he said.

He also explained the allure of Mt. Everest — the book launch was held three days after the death of Filipino mountaineer Philipp “PJ” Santiago II, who perished on the mountain on May 14, the first casualty at Everest this climbing season. The following day, May 15, Ric Rabe summited the mountain, becoming the first Filipino to do so since 2008.

“There’s always a risk in climbing Everest. But why are we still doing it? Because it is symbolic,” Mr. Valdez said. “For us, Everest is a symbol of dreams and passion, not just a mountain climbing activity.

“It could have happened to us, because every climb has risks,” he added.

Climbing Mt. Everest, which stands at 29,031 feet above sea level, is considered highly perilous due to its extreme climate, thin air, and potential avalanches. Leo Oracion became the first Filipino to reach its summit in 2006.

Mr. Valdez concluded: “Climbing the tallest peak is seemingly impossible, but we do it because it gives us a good feeling, that we believe that we can do anything.”

For the three women whose adventure is now immortalized in the pages of the newly launched book, the hope is for Filipinas to “see themselves in their journey and be inspired to persevere.” — Brontë H. Lacsamana

JFC plans further store rollouts in Southeast Asia

JFC eyes expansion in Southeast Asia through new franchise partnerships.

JOLLIBEE Foods Corp. (JFC) is planning to expand the footprint of its flagship brand in Southeast Asia, even as the group reported an 8.1% decline in first-quarter (Q1) net income to P2.41 billion due to higher non-operating expenses.

In a statement on Tuesday, JFC said the Jollibee brand will continue growing its store network in Southeast Asia as part of its five-year strategy to triple attributable net income.

Systemwide sales from Jollibee’s operations in Southeast Asia — excluding the Philippines — rose by 27.8% in the first quarter. The brand operates in Vietnam, Malaysia, Singapore, and Brunei.

Last year, the brand opened 51 new stores in the region, including its 200th outlet in Vietnam.

“Our continued strong growth across our international markets, particularly Southeast Asia, is a testament to the hard work of our team and commitment to our five-year strategy of tripling attributable net income,” Jollibee Group Chief Executive Officer and Global President Ernesto Tanmantiong said.

Jollibee continues to see strong demand across Southeast Asian markets, particularly for its Chickenjoy fried chicken and Spicy Chickenjoy in Singapore and Malaysia.

The brand has also introduced regional menu items such as Chili Chicken in Vietnam and Spicy Spaghetti in Malaysia.

“Our commitment to delivering superior taste has fueled our growth in Southeast Asia, and we’re grateful to have passionate franchisees and partners who share in this mission,” Jollibee Europe, Middle East, Asia, and Australia President Dennis M. Flores said.

The group is also seeking new franchisees in untapped Southeast Asian markets.

As of end-March, JFC operated 9,935 stores globally — 3,393 in the Philippines and 6,542 overseas.

Its international store network includes 560 stores in China, 361 in North America, 393 in Europe, the Middle East, and Africa, 865 with Highlands Coffee, 1,246 with The Coffee Bean and Tea Leaf, 340 with Milksha, 2,700 with Compose Coffee, and 77 with Tim Ho Wan.

JFC shares rose by 0.83% or P2 to close at P242 apiece on Tuesday. — Revin Mikhael D. Ochave

NY’s ‘chaotic’ mega auction season ends on a mixed note

GERHARD RICHTER’S Korsika (Schiff)

By James Tarmy

AS SOTHEBY’S contemporary evening sale wound down last Thursday night, Charles Stewart, the company’s chief executive officer (CEO), stood in the back of the room with a look of undisguised relief.

Up until that evening, New York’s (NY) spring auction week, during which Christie’s, Phillips, and Sotheby’s planned to move more than $1 billion worth of art, had been a grind. Most of the art was selling, but often with notably meager bidding, particularly when prices were over the $5-million mark. On Thursday, though, the room came alive with real, aggressive competition for works from the estates of the dealer Barbara Gladstone and the artist Roy Lichtenstein. “This has been, I think, the high point of the week,” Mr. Stewart said. “If you want to feel good about the art market, this is the night, and this is the sale.”

A less encouraging evening session had occurred in that very same room just two nights before.

That Tuesday, during Sotheby’s modern evening auction, the most expensive lot of the sales series — a painted bronze bust by Alberto Giacometti that carried a $70-million estimate — flamed out in spectacular fashion. Over three excruciating minutes, the auctioneer Oliver Barker tried to solicit a winning bid, but finally he’d had enough. The work failed to sell (“a pass,” in auction parlance), immediately setting off audible chatter throughout the otherwise hushed salesroom. “Obviously, we would have preferred that it be [sold],” says Mr. Stewart. “But it was a real auction moment.”

A ‘CHAOTIC’ WEEK
Needless to say, this week did not exactly herald the return of a frenzied art market. “The Giacometti moment doesn’t necessarily speak to any kind of wider trend, it’s really a one-off moment,” says Matthew Newton, an art advisory specialist at UBS. “But it was a sort of punctuation mark on what has been two years of a really tough cycle for the auction houses.”

Yet there were signs the market may have turned a corner. “This season our totals are higher than last May, and we’re on target to beat November,” says Christie’s CEO Bonnie Brennan. “So the doom and gloom of ‘Oh, the market’s down’? Well, the numbers tell a different story.”

Overall, it was a week that was neither good nor bad, with success or failure varying from lot to lot. “It’s really hard to come up with one real, driving theme behind all of this — it all feels pretty chaotic,” Mr. Newton says. “You saw individual collectors choosing to buy individual works and willing to skip out on others.”

Christie’s estimated it would sell between $600 million and $811 million worth of art over the week, and it managed to total a solid $693 million. (Estimates don’t include auction house fees known as buyer’s premiums, but totals do, making it easier for auction houses to hit those projections.) Thanks in large part to the $70-million hole made by the Giacometti, Sotheby’s had a tougher time. It sold at least $400 million worth of art last week, a total that would increase after its Friday contemporary day sales were completed; its pre-week estimates were $485 million to $673.5 million. Phillips, meanwhile, totaled about $73.5 million, just missing its low estimate of $74.7 million.

THE TOP LOTS
The market for $10-million-plus artworks is always thin, but last week it felt particularly emaciated.

“The greatest depth of bidding that we saw this week was in the [lower-priced] day sales, in the $1-million to $10-million range,” says Ms. Brennan. “We have a much more cautious audience at the $20-million-plus level, and it really requires strategic and thoughtful pricing, strong marketing, and really managing expectations.”

Expectations, apparently, were managed. Not only did Christie’s yield the highest totals of the week, but it also dominated the peak of the market, selling nine of the week’s top 10 lots. With the sale of Claude Monet’s Peupliers au bord de l’Epte, crépuscule, it set a new record for the artist’s Peupliers series; and with the $13.6-million sale of Marlene Dumas’ Miss January, it set the record for a living female artist at auction.

But Ms. Brennan isn’t taking a victory lap just yet. “As we look to build future sales for the balance of the year, I think we’re going to be really careful about the composition, the size of the sales and the number of lots at certain price points, to make sure that we are being good listeners,” she says. “There’s a fair amount of uncertainty in the world right now, and our market is one that thrives on stability.”

You can see last week’s top 10 lots, which totaled about $279 million, in the list. — Bloomberg

 

1. $15.2 million for Gerhard Richter’s Korsika (Schiff) from 1968. Sold at Christie’s

(https://tinyurl.com/388pa5yx)

2. $15.9 million for René Magritte’s Les droits de l’homme from 1947-1948. Sold at Christie’s

(https://tinyurl.com/23dddyua)

3. $16.3 million for Jean-Michel Basquiat’s Untitled from 1981. Sold at Sotheby’s

(https://tinyurl.com/4fr8tnu3)

4. $17.6 million for Alberto Giacometti’s Femme de Venise I, cast in 1958. Sold at Christie’s

(https://tinyurl.com/529u2zhv)

5. $23.4 million for Jean-Michel Basquiat’s Baby Boom from 1982. Sold at Christie’s

(https://tinyurl.com/2h895u4s)

6. $28 million for Pablo Picasso’s Femme à la coiffe d’Arlésienne sur fond vert (Lee Miller) from 1937. Sold at Christie’s

(https://tinyurl.com/nersy87x)

7. $34.9 million for René Magritte’s L’empire des lumières from 1949. Sold at Christie’s

(https://tinyurl.com/3xwe4yfk)

8. $37.7 million for Mark Rothko’s No. 4 (Two Dominants) [Orange, Plum, Black] from 1950-1951. Sold at Christie’s

(https://tinyurl.com/2rstpa23)

9. $42.9 million for Claude Monet’s Peupliers au bord de l’Epte, crépuscule from 1891. Sold at Christie’s

(https://tinyurl.com/yc2fftj8)

10. $47.5 million for Piet Mondrian’s Composition with Large Red Plane, Bluish Gray, Yellow, Black and Blue from 1922. Sold at Christie’s

(https://tinyurl.com/3ud77wey)

DMW breaks ground on its biggest office development in Aseana City

DMWAI.COM

LISTED property developer DM Wenceslao and Associates, Inc. (DMW) broke ground on the first phase of its Aseana Plaza office project in Parañaque City.

Situated within the 107.5-hectare Aseana City development, Aseana Plaza will feature a total gross leasable area (GLA) of 130,000 square meters (sq.m.), making it DMW’s largest commercial undertaking to date.

The initial phase is set to offer approximately 70,000 sq.m. of GLA, the company said in a statement on Tuesday. Upon completion, DMW’s commercial portfolio will expand to over 300,000 sq.m. of GLA.

DMW aims to meet the growing demand for modern office spaces within an integrated urban community. Aseana Plaza will cater to global logistics and shipping firms, business process outsourcing companies, and traditional corporate headquarters.

It will include a central al fresco plaza connected to the adjacent Parqal greenway.

The project will also link to Aseana City’s forthcoming skywalk system, enhancing walkability and connectivity across the estate.

“We have always envisioned Aseana City as more than just a business district — it’s a community where work, leisure, and daily life intersect,” said DMW Chief Executive Officer Delfin Angelo C. Wenceslao.

“Breaking ground on Aseana Plaza is a major step toward realizing that vision, creating a destination where global industry players and local communities converge.”

For the first quarter, DMW reported a 2% increase in net profit to P562 million. Recurring revenue from rentals of land, commercial buildings, and other leasing sources rose 14% to P899 million.

Commercial building revenue grew 27% to P406 million, driven by higher occupancy, while residential revenue increased 13% to P167 million.

DMW shares closed unchanged at P5 per share on Tuesday. — Revin Mikhael D. Ochave

Arts & Culture (05/21/25)

National Museum unveils marker in Rizal Park

FOR International Museum Day, the National Museum of the Philippines (NMP) unveiled a historical marker at the renovated Sentinel of Freedom Monument in Liwasang Rizal, located at the southern section of the Rizal Park Complex. The event also marked the reopening of the main gates at Maria Orosa St. which had been closed since 2021. It now offers direct access to the National Museum Complex from Maria Orosa St. and Rizal Park – Luneta. The new marker commemorates the revised foundation date of the National Museum, acknowledging the Aug. 12, 1887 royal decree that established the Museo-Biblioteca de Filipinas as the genesis of the first museum-library of national scope, and recognized as the precursor of the NMP.

Walang Sugat staged at Paco Park

ON MAY 23, the National Parks Development Committee, in collaboration with Sound Experience Manila, brings Walang Sugat, the iconic sarswela by Severino Reyes and Fulgencio Tolentino, to the historic Paco Park in Manila. The special one-hour program in celebration of National Heritage Month begins at 6 p.m., and is open and free for everyone. At its core, Walang Sugat is a story of the love and sacrifice of Julia and Tenyong, the push and pull of the heart’s destiny and a daughter’s duty, and importantly, the perseverance of the Filipino spirit through and beyond adversity. The presentation is directed by Dr. Alegria O. Ferrer and features performances by Daniella Silab, Diego Alcudia, Abet Guande, Vianca Yu, Archibald Dalupang, and Bettina Hernandez, with Samuel Silvestre playing the keyboard. Music and additional composition are arranged and provided by Josefino Toledo.

Young artists support World Vision

WORLD VISION has teamed up with Raya Gallerie and DryBrush Gallery for Next Gen: The New Faces of Art, an exhibit and auction that supports the “Bawat Batang Pinoy Malusog” (Every Filipino Child is Healthy) campaign. It aims to rehabilitate 7,700 undernourished children by giving them access to life-saving nutrition and provide more than 919,700 individuals with access to clean drinking water by 2026. Set to happen at Dry Brush Gallery MOA in MOA Square, Mall of Asia, Pasay City, the invitation-only auction will be on May 24, at 2 p.m., with proceeds going to the campaign. An art workshop for kids is scheduled on May 25, 1 to 3 p.m. Public viewing of the exhibit is ongoing until May 30. Featured artists include Junevy Formentera Llosa, Morris Labana, and Katelyn Ann de los Santos Miñoso, among others.

Judy Sibayan at Calle Wright

JUDY FREYA SIBAYAN returns to Calle Wright with the exhibit Early Philippine Contemporary Art (1969-1985), Works and Documents from the Collection of Judy Freya Sibayan. It will run from May 25 to Aug. 31. There will be a “Reframing Art” performance with the audience during the opening reception on May 25. The performance will be at 4:30 p.m., while the reception itself will be from 5-8 p.m. Revolving around the works of Huge Bartolome, Roberto Chabet, Ray Albano, and Johnny Manahan, the exhibit features a collection of gifts from these artists who were critical in Sibayan’s early years of artmaking. Also included are Sibayan’s own works. The five artists were often involved in the same exhibitions and projects at the Cultural Center of the Philippines Art Museum in the 1970s and early ’80s. Materials from her self-archive document these interconnections. Also on view will be works by Nap Jamir II, Fernando Modesto, Bencab, Marciano Galang and Ben Maramag who, together with Albano, Bartolome, Manahan, and Sibayan, were all recipients of the Thirteen Artists Award. Calle Wright is an art house at 1890 Vasquez St., Malate, Manila. It is an initiative of Isa Lorenzo and Rachel Rillo of Silverlens.

Galerie Jose marks 1st anniversary

A BROAD coalition of young, mid-career, and seasoned practitioners, with various approaches to art, have contributed works now on display at Galerie Jose, marking the gallery’s first anniversary. Titled COALESCE, the group exhibit highlights a range of critiques on the state of humanity, politics, and social interactions. It features works by Lydia Velasco, Ram Mallari, Jr., Richard Buxani, Hermes Alegre, Jose Tence Ruiz, Cid Reyes, Rico Lascano, Otto Neri, Emmanuel Nim, Marko Bello, Ted Peñaflor, Ambit Mendoza, Nestor Abayon, Jr., Lara Latisa, Meneline Wong, Cezar Arro, Edwin Martinez, Nino Cris Odosis, Govinda Jean, Mary Christie, Nemesis Manahan, Obet Tiaño, Vincent Diñoso, Krishnamurti, Win Castillo, Adrian Trijo, Efren Carpio, and Eduardo Perreras. Galerie Jose is located at 22 Yale St., Brgy E. Rodriguez, Cubao, Quezon City. COALESCE is on view until May 30.

Silverlens opens Collectors Plus

THE 6th edition of Collectors Plus, featuring a selection of works from the 1980s up to the present, is now on view at Silverlens Gallery. Highlights of the exhibit include Pacita Abad’s Baguio Fruit, one of her earliest trapuntos; Corinne de San Jose’s prints from 2013 showing the influence of sound in her artistic practice; a collaboration between Gregory Halili and Nona Garcia that is a dialogue in response to the shared call of the seas; and Ryan Villamael’s works made of paper tackling colonial and contemporary mapmaking. Also on view are paintings by Jonathan Ching, Mariano Ching, Paolo Icasas, Geraldine Javier, Hideaki Kawashima, Yayoi Kusama, Maya Muñoz, Elaine Navas, and Rodel Tapaya; mixed media works by James Clar, Gregory Halili, Bernardo Pacquing, and Luis Antonio Santos; and a lithograph by Yoshitomo Nara. Collectors Plus runs until June 7 at the Silverlens Gallery, Chino Roces Ave. Ext., Makati.

14 artists explore time in MCAD exhibition

MOMENTS OF DELAY, the forthcoming exhibition of the Museum of Contemporary Art and Design (MCAD) of the De La Salle-College of Saint Benilde, brings together the diverse practices of 14 interdisciplinary artists, who navigate the tensions and contradictions in response to the fluidity of time, plural realities, and urgent concerns of the present. Curated by Arianna Mercado and James Tana, the exhibit builds upon the 2015 exhibition The Vexed Contemporary. The participating artists are: Neo Maestro, Christian Tablazon, Allan Balisi, Miguel Lorenzo Uy, Christina Lopez, Corinne de San Jose, Lesley-Anne Cao, artist collective Tambisan ng Sining, Ronyel Compra, Rocky Cajigan, Uri de Ger, Tropikalye (led by Nice Buenaventura), Joar Songcuya, and Celine Lee. Moments of Delay opens on May 27, 5:30 p.m., and runs until Aug. 24. The exhibition and its public programs are free and open to the public at MCAD located at De La Salle-College of Saint Benilde (DLS-CSB) Design + Arts Campus, Dominga Street, Malate, Manila.

The M holds masterclass in relief printing

THERE will be a three-day workshop on the basics of relief printing at the Metropolitan Museum of Manila. The step-by-step, guided process will see participants create their very own original prints — professionally executed, in both editions and color variations. Facilitated by Ambie Abaño, a multi-awarded Filipino artist and printmaker, the workshop will take place on June 7, 14, and 21, from 1 to 5 p.m., at the 3rd floor art studio of The M. It is open to participants ages 13 and above. The workshop fee is P12,500, inclusive of all materials and tools, snacks during the workshop, and access to all the museum’s exhibits. The M is at the MK Tan Center, 30th St., BGC, Taguig, Metro Manila.

Patis Tesoro to host a special lunch

A LUNCH titled “BLOOM” will be held by cultural icon Patis Tesoro at her garden café in Laguna on June 15. The couturier, who specializes in Filipiniana and is a great supporter of the traditional crafts behind it, will be welcoming visitors to step into her garden of heritage and creativity in an intimate gathering starting at 10 a.m. The day of art and conversation — with sketching and painting inspired by Philippine flora, guided by botanical artist Hazel Scott – includes a traditional Filipino lunch. Guests will also be able to explore her atelier and shop. Materials for the art session will be provided. Limited seats are available. For details, message patisboutique@gmail.com. The Patis Tito Garden Café is located in San Pablo, Laguna.

The Mind Museum launches ‘Cool Learning Adventures’

UNTIL June 29, visitors to The Mind Museum can enjoy all-day access for four persons for a special price of P2,300. This is part of the museum’s new lineup of activities called “Cool Learning Adventures.” Residents and workers of Bonifacio Global City can get an exclusive rate of P500 for all-day access to the museum upon presentation of valid proof of residency or employment. Tickets must be booked via www.themindmuseum.org/buy-tickets or at the onsite Ticket Booth. Mind Moving Studios is also presenting Why does the Philippines have only two seasons?, a show on how weather and atmosphere affect everyday life through lively demonstrations and experiments led by The Mind Museum’s resident scientists, the Mind Movers. This is open on all Fridays, Saturdays, and Sundays of May and June, at 11 a.m., 2 and 5 p.m.

Circuit Makati welcomes back Bawat Bonggang Bagay

FOR Pride Month, The Sandbox Collective is restaging Bawat Bonggang Bagay, which is Palanca awardee Guelan Luarca’s Filipino adaptation of Duncan Macmillan and Johnny Donahoe’s Every Brilliant Thing, starring Jon Santos. The one-man play tackles the unspoken truths about mental health, especially within the LGBTQIA+ community, where struggles remain alarmingly prevalent. The limited run, to take place at the Power Mac Center Spotlight Blackbox Theater in Circuit, Makati, runs from June 14 to 22. Tickets will be available soon at Ticketworld.

Japan presents TOKYO Before/After exhibit

AT Estancia Mall, TOKYO Before/After, a traveling photography exhibit, is enjoying its debut in Manila. Curated by photography critic Kotaro Iizawa, the free exhibit features approximately 80 works that capture life in Tokyo from the 1930s to 1940s, juxtaposed with images taken after 2010. The comparison of these two distinct periods brings Tokyo to life in the past, present, and future lenses. The “Before” section includes shots from photography magazine KOGA, the NIPPON photobook, and Kineo Kuwabara’s snapshots of downtown Tokyo. Featured in the “After” section are works by celebrated Japanese photographers Nobuyoshi Araki, Mika Ninagawa, Natsumi Hayashi, and Shinya Arimoto, among many others. The exhibit is on the third floor East Wing of the Estancia Mall at Capitol Commons, Pasig City, until July 31.

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