Home Blog Page 367

Meralco-First Gen gas supply contract extended until June

FIRSTGEN.COM.PH

THE Energy Regulatory Commission (ERC) has granted a five-month extension of the gas power supply contract between Manila Electric Co. (Meralco) and First Gen Corp., citing its role in supporting energy security, particularly with the summer months approaching.

In an eight-page order promulgated on Jan. 30, the ERC approved the joint motion filed by Meralco and First Gen unit First Gas Power Corp. (FGPC) to continue sourcing power from the Sta. Rita gas-fired power plant in Batangas until June 25, 2026.

The approval of the second interim extension comes ahead of the Jan. 31 expiration of the previous temporary extension of the 25-year power purchase agreement.

The ERC said the renewed arrangement will be implemented under the same terms and conditions as the earlier extension and will remain a pass-through charge to Meralco customers.

In approving the extension, the ERC reiterated that spot market prices could increase by around twofold if the Sta. Rita plant were to operate as a merchant plant, citing simulations conducted by the Independent Electricity Market Operator of the Philippines.

FGPC said it would likely be constrained to shut down the power plant due to the loss of offtake. This could, in turn, compel the Malampaya gas field operations and the liquefied natural gas terminal to cease operations because of “technical interdependencies” among the facilities.

“This situation presents a critical energy security risk in the Luzon Grid with dire consequences extending beyond power rate increases to rotating power outages that would disrupt household, business, and industrial activities,” the ERC said.

The agency also noted the Sta. Rita plant’s contribution to energy security through the frequent operation of its available units at full capacity, helping increase supply and stabilize spot prices.

“The Commission is cognizant that the reliable and flexible capacity offered by the Sta. Rita Plant is much needed during the summer months,” the ERC said.

“It is thus imperative that the power grids maintain sufficient capacity available to avert yellow/red alerts, power interruptions, or worse, widespread outage.”

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

Tanduay eyes Central and Eastern Europe markets

PHILSTAR FILE PHOTO/TANDUAY

TANDUAY is expanding its footprint beyond Western Europe by targeting markets in Slovenia, Slovakia, and Hungary as part of its push into central and eastern regions.

Following its debut in Denmark last year, the company said that it is in talks to enter these countries.

“Right now, we’re in the western part of Europe, but we’re also trying to penetrate Central and Eastern Europe,” Tanduay International Business Development Manager Roy Kristoffer Sumang told reporters on the sidelines of an event last week.

In December, Tanduay Distillers, Inc. announced a distribution partnership with Denmark’s Bastard Spirits to enter the Nordic market and expand its premium rum portfolio.

The deal targets wine shops, online retailers, bars, and potential future duty-free listings, capitalizing on Denmark’s openness to new flavors.

Last month, the company signed a distribution agreement with Spain’s Torres to bring its brandy to supermarkets nationwide, starting with Torres 5 Light, with additional products arriving in the first quarter as part of the latter’s Philippine market debut.

Tanduay is a rum brand produced by Tanduay Distillers, Inc., a subsidiary of the Tan-led conglomerate LT Group, Inc. — Alexandria Grace C. Magno

DMCI to break ground on Kalayaan, BGC subway stations this year

OJ SERRANO-UNSPLASH

D.M. CONSUNJI, INC. (DMCI) is preparing to break ground on a key portion of the Metro Manila subway project this year, its top executive said.

The project, known as contract package 105 (CP 105), covers the Kalayaan and Bonifacio Global City (BGC) stations, with construction expected to start this year, DMCI President and Chief Executive Officer Jorge A. Consunji told reporters last week.

The project includes a short tunnel and the two stations, which were originally scheduled for completion in 2029 but have faced delays because of earlier right-of-way issues.

DMCI is undertaking the work alongside Japanese firm Nishimatsu Construction Co. Ltd., its partner for another section of the subway covering Quezon Avenue and East Avenue stations.

Meanwhile, the company is pursuing another subway project and expects the award decision as early as next month.

“That’s just the award phase. The groundbreaking for that is possibly in March or April, depending on the department that handles it — we can’t control that. But it was bid out 18 months ago,” Mr. Consunji said.

Without giving details, DMCI said it is eyeing other major projects and possible partnerships with both public and private sectors.

DMCI is the construction arm of listed infrastructure and engineering conglomerate DMCI Holdings, Inc., which also has core investments in coal mining, water, off-grid power generation, and property development. — Alexandria Grace C. Magno

Arthaland forges partnership with Mitsui Fudosan (Asia) for a premium green development in Makati

In the photo during the signing ceremony are (from left to right): Cornelio S. Mapa, Executive Vice President and Treasurer of Arthaland Corporation; Marivic S. Victoria, Chief Finance Officer of Arthaland Corporation; Jaime C. Gonzáles, Vice Chairman and President of Arthaland Corporation; Daijiro Eguchi, Managing Director of Mitsui Fudosan (Asia); Sheryll P. Verano, Executive Vice President of Arthaland Corporation; and Takashi Sugiyama, Director of Mitsui Fudosan (Asia).

Arthaland Corporation (ARTHALAND) and Mitsui Fudosan (Asia) recently entered into a joint venture for the development of Sondris, a premium, multi-certified sustainable residential condominium that will rise along Arnaiz Avenue, Legazpi Village, Makati City.

This partnership marks a significant collaboration between Arthaland and Mitsui Fudosan (Asia), a wholly owned subsidiary of Mitsui Fudosan Co., Ltd., one of Japan’s largest real estate companies and a publicly traded company with approximately $62 billion (¥9.8 trillion, as of Dec. 2024) in assets. Mitsui Fudosan has pursued mixed-use neighborhood creation that integrates office buildings, retail facilities, logistics, hotels/resorts, and residentials across various areas in Japan. Mitsui Fudosan’s area of operations is not only in Japan; the Group has been conducting business in major cities in North America, Europe, China, Taiwan, Southeast Asia, Australia, and India. The Group is continuously pursuing business expansion through driving the evolution of neighborhood creation.

“We are honored to collaborate with Mitsui Fudosan to bring Sondris to life. By combining ARTHALAND’s deep local experience with a global perspective and Mitsui Fudosan’s distinct strength in truly people-focused neighborhood creation and global expertise, we created a development that delivers durability, functionality, and a new benchmark for refined living in the heart of Makati,” said Jaime C. González, Vice Chairman and President of ARTHALAND.

Sondris brings together two like-minded, best-in-class real estate companies with shared values centered on sustainability, green building, and long-term value creation. ARTHALAND leads the project’s development and operations, while Mitsui Fudosan contributes to global expertise in design, engineering, and value preservation.

“We express our appreciation and honor in collaborating and developing this project together with Arthaland, a partnership that reflects our shared vision for excellence and sustainability. Guided by this commitment, we take pride in making Sondris one of the pioneering residential developments in the Philippines to pursue multiple prestigious green certifications—underscoring our unwavering commitment to sustainability and future-ready communities. Together, we aspire to deliver a landmark project that harmonizes world-class standards with local insight, creating a destination designed to endure and inspire for generations to come.” said Daijiro Eguchi, Managing Director of Mitsui Fudosan (Asia).

Sondris offers a rare balance of cultural richness, business connectivity, and urban convenience. Its address along Arnaiz Avenue provides immediate access to EDSA and the Skyway, connecting residents to the metro’s key business and lifestyle destinations. Its location also allows its residents to enjoy unobstructed views of the San Lorenzo Village.

Inspired by Japanese sensibilities, Sondris brings together refined architecture, wellness, and environmental stewardship to create homes shaped by intention and balance. Designed by the internationally renowned architectural firm AEDAS, the 37-story tower features 252 thoughtfully designed residences, each crafted to maximize natural light, ventilation, and comfort.

As with other ARTHALAND developments, Sondris targets to achieve the highest sustainability and wellness standards from both local and global organizations. It aims to become multi-certified, targeting LEED, WELL, EDGE, and BERDE certifications from the US Green Building Council, International Well Building Institute, the International Finance Corporation and the Philippine Green Building Council, respectively.

ARTHALAND is the only real estate developer in the Philippines with a residential and commercial portfolio 100% certified as sustainable by local and global organizations. It has made its mark in the Philippine real estate industry by pioneering the development and management of exceptional best in-class properties that adhere to international and local standards.

For more information, visit www.arthaland.com.

 


Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

Join us on Viber at https://bit.ly/3hv6bLA to get more updates and subscribe to BusinessWorld’s titles and get exclusive content through www.bworld-x.com.

T-bill, bond rates may drop on BSP easing hopes

BW FILE PHOTO

RATES of the Treasury bills (T-bills) and Treasury bonds (T-bonds) on offer this week could decline as weak gross domestic product (GDP) data increased expectations of further policy easing by the central bank.   

The Bureau of the Treasury (BTr) will auction off P27 billion in T-bills on Monday, or P9 billion each in 91-, 182-, and 364-day papers.

On Tuesday, the government will offer P30 billion in reissued seven-year T-bonds with a remaining life of four years and 11 months.

T-bill and bond rates could mirror the week-on-week drop in comparable secondary market yields as weaker-than-expected fourth-quarter and full-year 2025 GDP growth heightened the odds of a sixth straight cut from the Bangko Sentral ng Pilipinas (BSP) this month, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“Expect bullish momentum to translate into [this] week as players price in a poor (economic) outlook,” a trader said in an e-mail.

At the secondary market on Friday, yields on the 91-, 182-, and 364-day T-bills went down by 8.38 basis points (bps), 6.34 bps, and 5 bps week on week to 4.6826%, 4.7725%, and 4.8412%, respectively, based on PHP Bloomberg Valuation Service Reference Rates data as of Jan. 30 published on the Philippine Dealing System’s website.

Meanwhile, the seven-year bond’s yield eased by 8.19 bps week on week to close at 5.8549%, while the five-year debt, the tenor closest to the T-bond’s remaining life, fell by 11.05 bps to fetch 5.6551%.

Philippine GDP growth slowed to 3% in the fourth quarter of 2025 from 5.3% in the same period a year prior and 3.9% in the third quarter. This brought the full-year average to 4.4%, well below the government’s 5.5%-6.5% goal.

Analysts said that the weak GDP report could prompt the BSP to cut rates further to boost domestic demand. The Monetary Board will hold its first policy meeting for this year on Feb. 19.

Last week, the government raised P37.8 billion via the T-bills, higher than the P27-billion plan as the offer was oversubscribed, with total tenders reaching P155.975 billion.

Broken down, the government awarded P12.6 billion in 91-day T-bills, above the P9-billion program, as demand reached P40.1 billion. The three-month paper fetched an average rate of 4.666%, down by 5.7 bps from the previous week. Yields accepted ranged from 4.64% to 4.673%.

The Treasury also borrowed P12.6 billion via the 182-day debt as tenders hit P57.55 billion. The average rate of the six-month T-bill was at 4.751%, easing by 6.6 bps. Tenders awarded carried yields from 4.73% to 4.763%.

Lastly, the BTr raised P12.6 billion from the 364-day securities as bids totaled P58.325 billion. The one-year paper’s average yield was at 4.827%, falling by 6.1 bps. Accepted rates were from 4.81% to 4.843%.

Meanwhile, the reissued seven-year T-bonds to be offered on Tuesday were last sold on Jan. 13, where the government borrowed P40 billion versus the P30-billion plan as it opened its tap facility. The reissued bonds fetched an average rate of 5.71%, below the 6.125% coupon rate.  

The government aims to raise P308 billion from the domestic market this month, or P108 billion via T-bills and up to P200 billion through T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at P1.647 trillion or 5.3% of gross domestic product this year. — A.M.C. Sy

BPI shares rise on PSEi rebalancing, performance outlook

BANK OF THE PHILIPPINE ISLANDS

By Isa Jane D. Acabal, Researcher

BANK OF THE PHILIPPINE ISLANDS (BPI) shares climbed last week on Philippine Stock Exchange index (PSEi) rebalancing and on improved investor sentiment following the bank’s announcement of its performance targets for this year, analysts said.

BPI was the fifth most actively traded stock from Jan. 26 to 30, with 14.09 million shares worth P1.65 billion, according to PSE data.

The stock closed at P124 per share on Friday, up 6.9% from P116 the previous week. This outpaced the financial sector’s 1.8% week-on-week gain and the 0.1% decline in the benchmark PSEi.

Year to date, BPI shares have risen 6.8%, ahead of the financial sector’s 5% growth and the PSEi’s 4.6% increase.

Franco M. Fernandez, equity research analyst at DragonFi Securities, Inc., said the stock’s gain was largely driven by “rebalancing-related flows” toward the end of the week.

On Jan. 27, the PSE announced changes to its indices, with RL Commercial REIT, Inc. (RCR) set to replace Alliance Global Group, Inc. (AGI) in the PSEi starting Feb. 2.

AGI will move to the PSE MidCap index, while Apex Mining Co., Inc. will be added and DoubleDragon Corp. removed. Meanwhile, Universal Robina Corp. will return to the PSE Dividend Yield index, which will also include OceanaGold (Philippines), Inc. as a new constituent.

“I expect prices to normalize next week, as sharp gap-ups during the run-off period, particularly those linked to PSEi rebalancing, have historically been followed by profit taking in the next session,” Mr. Fernandez said in a Viber message.

Unicapital Securities, Inc. Research Head Wendy B. Estacio-Cruz attributed the rise in BPI shares to positive investor sentiment as the market priced in the bank’s strong performance targets.

“This price movement is partly ahead of the release of its [full-year 2025] earnings, as investors anticipate strong performance driven by a rebound in borrowing demand,” she said in an e-mailed response to questions.

“Market sentiment may also have been supported by broader optimism in the banking sector amid easing inflation,” she added.

In an earlier interview with reporters, BPI President and Chief Executive Officer Jose Teodoro K. Limcaoco said the bank aims to exceed its 2025 performance this year, citing a rebound in demand for consumer loans.

BPI also started the public offer for its P5-billion Supporting Individuals Grow, Lead, and Achieve (SIGLA) Bonds, priced at 5.405% per annum, on Jan. 26.

In a disclosure to the stock exchange, the bank said this marked the second tranche of its P200-billion Bond and Commercial Paper Program, which will run until Feb. 4.

“BPI’s strategic shift toward higher-yielding segments is expected to boost profitability and help cushion any increase in provisioning, further reinforcing investor confidence,” Ms. Estacio-Cruz said.

In the third quarter of 2025, BPI’s attributable net income rose 0.6% to P17.53 billion, bringing its nine-month profit to P50.48 billion.

Ms. Estacio-Cruz projects fourth-quarter net profit at P16.9 billion and full-year earnings at P67.4 billion.

Mr. Fernandez forecasts BPI’s attributable net profit at P15 billion for the fourth quarter and P66 billion for full-year 2025. He placed support between P112 and P115 per share, with resistance at P125.

Goodbye arms control, hello nuclear anarchy

PRESIDENTS George H. W. Bush and Mikhail Gorbachev sign the Strategic Arms Reduction Treaty (START) in the Kremlin in Moscow, July 31, 1991. — PICRYL.COM

By Andreas Kluth

THE ERA of nuclear arms control officially ends this week. On Feb. 5, New START*, the last such treaty between the United States and Russia, will expire. That doesn’t necessarily mean that Washington and Moscow will begin deploying more than the 1,550 strategic warheads each that the treaty stipulated; both of them should, and probably will, observe the old limits for a while longer. Nonetheless, the moment is a milestone.

It marks the first time since the iciest Cold War when no formal arms-control regime will limit the two atomic superpowers. In that way the expiry of New START is yet another step out of a world in which the great powers restrained themselves with rules, and into a brave new world of anarchy, in which the only rules are the whims of strongmen.

On paper, a few vestiges of the previous era remain. Some 178 countries still abide by a multilateral treaty that bans the explosive (as opposed to computer-simulated) testing of fission or fusion bombs. And 191 states still subscribe, in theory, to The Treaty on the Non-Proliferation of Nuclear Weapons (abbreviated NPT), in force since 1970. The signatories include the five powers with the largest nuclear arsenals, who in Article VI explicitly commit to negotiate “in good faith” to achieve “general and complete disarmament.”

In practice, none of these long-standing promises is worth the paper it’s written on. America’s president, Donald Trump, and several of his advisers have mused about restarting nuclear testing. That would trigger competitive rounds of testing by China, Russia, and others and amount to a strategic own goal.

And Article VI of the NPT has become a joke. Instead of negotiating disarmament, all nine nuclear powers, including the five acknowledged in the NPT, are “modernizing” their arsenals. The US, for example, is projected to spend a staggering $1.7 trillion over 30 years to upgrade its nuclear missiles, submarines, bombers, and warheads. China is adding to its arsenal as fast as its can, striving for functional parity with the US and Russia within a decade. North Korea (which quit the NPT in 2003) is also growing its stash.

Worse yet, most of the nuclear powers are simultaneously investing in more exotic nukes — to be used in outer space, for instance, or mounted on deceptive torpedoes or “glide” vehicles as opposed to plain-vanilla ballistic missiles. As during the Cold War, they’re once again incorporating tactical nukes (which New START didn’t regulate at all) into their plans and scenarios.

Tactical nukes are bombs that may have “smaller” yields and can be launched at shorter ranges, at least when compared with strategic weapons, which are meant to take out entire cities in an adversary’s homeland. The theoretical purpose of tactical weapons is to win battles in a regional war, say, rather than devastating an enemy during an all-out nuclear holocaust.

Tactical nukes are inherently destabilizing, as Geoff Wilson, Christopher Preble, and Lucas Ruiz at the Stimson Center have shown. Their proponents like to argue that these bombs, because their fallout is limited, are more “usable.” But that’s exactly the problem. Once the nuclear taboo is broken, the idea that the ensuing escalation can be controlled is a “mirage,” as George Shultz, a former secretary of state, once told Congress.

For starters, all nuclear powers would have a so-called discrimination problem. Faced with an incoming volley, they wouldn’t know whether they were under a strategic or tactical attack. By the perverse logic of “use it or lose it,” states would feel they have to launch their own weapons while they still can.

The bewildering complexity and diffusion of these dangers are such that the Bulletin of the Atomic Scientists last week reset its famous Doomsday Clock to 85 seconds to midnight, where midnight represents catastrophe. That’s the closest to apocalypse the clock has ever stood since the metaphor was created in 1947 — closer even than during the Cuban Missile Crisis, say.

What should be done about this fiasco? Some experts, and parts of Trump’s MAGA movement, have concluded that the US, for one, must accelerate its nuclear build-out and grow its arsenal to match a coordinated attack from both Russia and China.

That doesn’t follow at all, says Richard Fontaine, a former national-security official and diplomat who runs the Center for a New American Security. In nuclear strategy, you don’t get safer by adding up the warheads of your adversaries and then matching the total, he told me. What matters is that even if Russia teamed up with China in a coordinated attack, “the US would retain a survivable second-strike capability.” In that sense, the old logic of deterrence survives, because any enemy contemplating a first strike on the US “would have to be prepared to be destroyed.”

The peril lies less in a first strike out of the blue (as in the movie A House of Dynamite, for instance) than in a spiral of miscalculations that could lead to uncontrolled, and possibly unintended, escalation. Paradoxically, even policies meant to be purely defensive could make the situation worse rather than better.

Trump’s beloved Golden Dome is an example. A continental anti-missile shield — even if it were technically feasible and affordable, which it probably isn’t — could invite disaster. America’s adversaries would fear that the US could feel immune to retaliation once the dome’s interceptors in space go live. They would then be tempted to destroy those interceptors and sensors with nuclear explosions in space. Or they might plan attacks that don’t go through space — with submarines or drones, for instance. However they react, America and the world would be not more but less safe.

Trump gets other things wrong too. By insulting America’s allies in Europe and Asia, he’s casting doubt on America’s nuclear “umbrella” and forcing them to consider building their own nukes. That would prompt their regional adversaries to do the same. More nuclear powers always means more risk; just think of the many times India and Pakistan have gone to the brink.

And yet Trump grasps the big picture as well as any of his predecessors did. He’s repeatedly called nukes the world’s greatest existential threat. “There’s no reason for us to be building brand-new nuclear weapons. We already have so many,” he has said; “You could destroy the world 50 times over, 100 times over. And here we are building new nuclear weapons, and they’re building nuclear weapons.”

The only way to reduce this existential threat is to return to negotiations, ideally three-way talks among Washington, Moscow, and Beijing which then include other nuclear powers over time. Russia’s Vladimir Putin, disingenuously or not, has indicated that he would be receptive. China’s Xi Jinping has so far made clear he’s not ready for talks, because his goal is parity with the other two.

That’s what Trump must set out to change. He claims to have good chemistry with Putin, so he should use it — but without mixing the fate of Ukraine into the conversation. He also thinks he has Xi’s ear. The problem is that Trump keeps distracting himself with problems of his own making, such as trade wars or the fate of TikTok, of all things.

If Trump and his advisers had any strategic bone in their bodies, they would invert this dynamic and emphasize the existential. He would invite all nuclear leaders to stipulate — as Ronald Reagan and Mikhail Gorbachev once did — that a “nuclear war cannot be won and must never be fought.” Then they would start talking about de-risking, discussing every weapon system in turn. Just in case this process should eventually lead to a modicum of trust, they could use that to haggle about everything else.

BLOOMBERG OPINION

*START stands for Strategic Arms Reduction Treaty.

Peso may be range-bound as market awaits inflation report

PHILSTAR FILE PHOTO

THE PESO may be range-bound against the dollar this week as players await the release of Philippine inflation data and assess the possible policy implications of the nomination of a new US Federal Reserve chair.

On Friday, the local unit closed at P58.86 per dollar, rising by 8.5 centavos from its P58.945 finish on Thursday, data from the Bankers Association of the Philippines showed.

Week on week, the peso jumped by 23 centavos from its P59.09 close on Jan. 23.

“The dollar-peso closed lower but traded mostly sideways, touching the P59 high amid selling on peso weakness due to lower-than-expected GDP (gross domestic product) figures,” a trader said in a phone interview, adding that there was profit taking in the afternoon session.

Philippine GDP growth slowed to 3% in the fourth quarter of 2025, bringing the full-year average to 4.4%, missing government’s 5.5%-6.5% goal.

The soft growth data raise the odds of a rate cut by the Bangko Sentral ng Pilipinas (BSP) at the Monetary Board’s Feb. 19 meeting, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The Monetary Board has reduced benchmark rates by a cumulative 200 basis points since its easing cycle began in August 2024, bringing the policy rate to an over three-year low of 4.5%.

For this week, the trader said the peso will move sideways as players await the release of January Philippine inflation data on Thursday (Feb. 5) and developments following US President Donald J. Trump’s announcement of his Fed chair pick.

The market will also monitor US economic data, the trader added.

The trader sees the peso moving between P58.80 and P59.10 per dollar this week, while Mr Ricafort said it may range from P58.65 to P59.15.

The choice of Kevin Warsh to lead the US Federal Reserve clears uncertainty on Wall Street about the central bank’s likely next chair, but leaves investors weighing how the former Fed governor’s past hawkish leanings will mesh with Mr. Trump’s insistence on far lower interest rates, Reuters reported.

Mr. Warsh, whom Mr. Trump nominated on Friday to lead the US central bank, ending a months-long process, had been one of four candidates widely tipped as potential successors to Jerome H. Powell, whose term as chair ends in May. A proponent of tighter monetary policy as a Fed governor from 2006 to 2011, Mr. Warsh said recently that Mr. Trump is right to press for interest rate cuts. — A.M.C. Sy with Reuters

PHL banana exports estimated to have grown 26% in 2025

REUTERS

PHILIPPINE BANANA exports likely surged by more than a quarter in 2025, helping make the country the world’s number two exporter, according to the Food and Agriculture Organization (FAO).

In a market review, the FAO said that preliminary data indicate that exports of Philippine bananas likely grew 25.6% to 2.93 million metric tons (MMT) in 2025.

Ecuador likely remained the world’s biggest banana exporter in 2025, with shipments projected at 6.41 MMT. Costa Rica, which was the second-largest banana exporter last year, likely slipped to fifth place, with shipments projected to decline 17% to 1.96 MMT.

According to the FAO, the rebound in Philippine exports was the result of favorable weather as well as a recovery from setbacks caused by disease in recent years.

In 2024, banana exports amounted to 2.33 MMT, slipping from 2.35 MMT a year earlier after infestations of Fusarium wilt, a soil-borne fungal disease that blocks a banana plant’s vascular system and deprives it of nutrients and moisture.

The FAO said the Philippines, the biggest banana exporter in Asia, also benefited from renewed investments in production.

“Industry sources reported that substantial investments had been made in boosting the production of bananas in Cagayan Valley, including through the provision of organic fertilizer and other inputs by the Department of Agriculture (DA),” the FAO said.

The FAO also reported stronger demand from major Asian markets in 2025, helping support the Philippine export rebound.

Banana imports by China, one of the world’s largest buyers, were estimated to have increased 17.02% to 2.04 MMT in 2025, with shipments from the Philippines expanding in the double digits during the first nine months.

Imports by Japan likely rose, with shipments projected to have grown 1.44% to 1.06 MMT in 2025. The Philippines accounts for around 75% to 80% of Japan’s total banana imports.

Agriculture Secretary Francisco P. Tiu Laurel, Jr. said he recently met with his Japanese counterpart to negotiate lower tariffs on Philippine bananas shipped to Japan.

He said the DA is seeking amendments to the Japan-Philippines Economic Partnership Agreement (JPEPA), under which Japan imposes seasonal tariffs on Philippine bananas.

Under JPEPA, bananas shipped from the Philippines face an 8% tariff between October and March and a duty of 18% between April and September. Mr. Laurel said the government is pushing to lower the duties to a fixed rate of between 5% and 8%.

“We requested a lower, flat rate to help our banana sector. This is because other countries like Vietnam, Thailand, and Mexico are already moving toward zero tariffs,” Mr. Laurel told reporters at a briefing.

He said the tariff negotiations are meant to serve as a temporary measure to keep Philippine bananas competitive, while the country works toward securing zero duties through its application for accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

The CPTPP is a free trade agreement among Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the UK, and Vietnam. It provides for more liberalized trade, including zero tariffs on a wide range of goods. — Vonn Andrei E. Villamiel

Are you really buying local?

TO BUY — and learn about — authentic indigenous Filipino weaves, Metro Manila residents can visit the regular DTI fairs held in SM Megamall. — ALICIA A. HERRERA

Or is that Filipiniana blouse or skirt you are eyeing actually from China?

WHILE it’s cool right now to sport local textiles, it’s becoming a little bit too cool — by that we mean fakes are being made of handwoven textiles by indigenous people.

During a press conference on Jan. 27 as part of the 2026 National Textile Convention (TELACon), Julius Leaño, Jr., director of DoST-PTRI (Department of Science and Technology – Philippine Textile Research Institute), discussed the Weavers’ Manifesto.

TELACon was organized by the DoST-PTRI at the Philippine International Convention Center, Pasay City, and ran from Jan. 27 to 29.

The manifesto was released in December last year during the Philippine Handloom Weaving Festival in Ilocos Norte. One of the points raised in the manifesto was the “opposition to the widespread use of counterfeit handwoven textiles and machine-made woven replicas as substitutes for the authentic handwoven fabrics of the Philippines.”

During the press conference, Mr. Leaño made clear that the PTRI’s job was to put together these sentiments, although the sentiments come from the weavers themselves, collected through a focus group discussion.

Ang number one na layunin noon ay talaga para ma-ipahayag na tumututol sila doon sa paggamit ng replica at iyong mga counterfeit (Its number one goal is to announce that they are against the use of replicas and counterfeits),” he said during the press conference.

According to him, the fakes come from China. They are of foreign make, and are machine-made, while claiming to be handwoven by indigenous people. He said that the fakes began to proliferate during the pandemic, beginning with prints claiming to be of Cordillera origin.

Maria Raquel Bullayao, a weaver from Lubuagan, Kalinga said, “Parang nadudurog ang mga puso namin (it’s like our hearts are being crushed),” she said about seeing fakes passed off as their work. “It is our labor of love… ilang araw mo siya gagawin (you would have been working on it for days). Tapos makikita po namin dito (Then we’ll see it here), mostly here also in NCR na may mga nagbebenta ng peke na Filipiniana na nabibili po sa Divisoria (that they’re selling fake Filipiniana that you can buy in Divisoria).”

Meanwhile, Mervin To-Ong, a weaver from the Binugao Bagobo-Tagabawa Women Association from Davao said, “Buhay namin ito eh (this is our life).”

Nakakahiya sa atin na gumamit tayo ng mga replica at mga pekeng hinabi (it is shameful for us to use replica and fake woven products),” he said.

Mr. Leaño said that as of now, the Intellectual Property Code of the Philippines isn’t sufficient to protect the intellectual property rights of the weavers. They are currently working with several agencies to fix the problem, as well as relying on a bill by Senator Loren Legarda regarding cultural protection, which has yet to be passed into law.

Legally speaking, there are no prohibitions against these machine-made textiles: “Okay lang naman kung binenta yan na sinasabi na (it’s okay to sell it if it says) ‘this is machine-woven.’ Wala namang problema doon (there’s no problem there). Pero huwag mo lang sabihin na ito ay (but just don’t say that it is) Kalinga weave, when in fact, it is not,” said Mr. Leaño.

As for DoST Secretary Renato U. Solidum, Jr., he said, “It is also important to do a lot of educational awareness for the buyer. Bilang buyer, hindi mo naman malalaman kung totoo o hindi (as a buyer, you wouldn’t know what’s real or not).”

For now, PTRI measures to combat fake textiles include education campaigns, but also the development of a covert marking. In normal light, textiles using the marking will appear the same color, but the mark will glow under blue light. They are also rolling out handwoven marks to be distributed only to their partner weavers. “There are ways,” said Mr. Leaño. “We just have to put them together.”

The onus is still on the buyer to buy the real thing. And where can we go to guarantee that what we’re getting is a true-blue handwoven product?

“Ideally, go directly to the communities,” he said.

And one can also visit the regularly scheduled Department of Trade and Industry (DTI) fairs which bring the makers and their products to Metro Manila. Not only will you be assured that what you buy is the real McCoy, but by talking to the weavers and getting a close up look at authentic weaves you learn to identify in the future if what you are offered comes from real hand weavers or should come with a warning: Made in China. — Joseph L. Garcia

CAMPI keys change hands

Changing of the guard: Outgoing Chamber of Automotive Manufacturers of the Philippines President Atty. Rommel Gutierrez (left) with incoming President Jose Maria “Jing” Atienza — PHOTO BY KAP MACEDA AGUILA

Atty. Gutierrez alights as president, Mr. Atienza takes the wheel

THE COUNTRY’S “foremost automotive industry organization” changes drivers, so to speak.

On its milestone 30th anniversary, the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) bade farewell to its president of 14 years, Atty. Rommel Gutierrez, who also retired from his post at Toyota Motor Philippines Corporation (TMP). Taking his place is TMP Executive Vice-President Jose Maria “Jing” Atienza.

“To say that this has been an interesting and rewarding experience is an understatement,” said Atty. Gutierrez to CAMPI members, the press, and guests during a formal turnover ceremony held last week at the Grand Hyatt Manila in Bonifacio Global City, Taguig. “A lot of the most wonderful people I have met in my entire professional life are in this room. You have all been mentors, advocates, supporters and friends.”

CAMPI has become a significant industry association, boasting 29 member companies. During its anniversary celebration last June, a “renewed strategy” for the group was conveyed – a strategy Mr. Atienza said he will continue to champion. The foundational pillars are: technology and innovation (promoting  the adoption of electric vehicles, autonomous systems, and digital platforms to deliver smarter, more efficient mobility solutions); sustainability (advocating for carbon neutrality through electrification, fuel diversification, and energy-efficient practices [to] address climate challenges), road safety (advancing industry-wide safety standards and international alignment to enhance protection for all road users), and industry development (focusing on regional integration, workforce development, and positioning the Philippine automotive sector to compete globally).

Atty. Gutierrez leaves a CAMPI that almost reached half a million units in consolidated sales last year – despite a 2025 marred by political, natural, and economic turmoil.

In a report from CAMPI and the Truck Manufacturers Association (TMA), total sales reached 491,395 in 2025 – a number that includes 26,122 units from Chinese auto brand BYD (not yet a CAMPI member). “The industry delivered a modest growth last year due to the overall unfavorable market environment during the second half, caused by a number of factors such as the reimposition of excise tax on pickup trucks and several natural calamities experienced across the country,” said an accompanying release. Nonetheless, member companies sold 47,371 vehicles last December – “the strongest monthly performance since 2017.”

Mr. Atienza attributed the sales rally to “aggressive promotional campaigns and new product introductions from the various car brands which expanded consumer options, especially in electrified and commercial vehicle segments.”

Electrified vehicles (xEVs) accounted for 12% of sales, up from 5.5% the previous year, with battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and hybrid electric vehicles (HEV) growing by a hefty 142.5% compared to 2024. Commercial vehicle sales went up by 7% (from 346,482 units to 370,722 units). However, passenger car sales dipped by 23.1% – for a total of 92,924 units from 120,770 units the year before.

“We did look into the numbers. Essentially, last year, the market was flat, but there was small market growth, thanks to a strong December market. We were still able to achieve (a sales increase),” said Mr. Atienza in a separate interview with members of the media. “There’s a big chance that the market can achieve 500,000 units this year… (basing) from the trend. If you look at the numbers last year, the first half was high, five to seven percent. The second half was either one or two (percent). But we’re still hopeful (about the 500,000 units).” Growth is expected to be modest at 2.4% or 2.5%. “In general, the market is quite sound. It’s just about when customer confidence comes in.”

He asserted that the “foundation of the market is still strong.” And while, as mentioned, pickup sales dropped (by 20%) because of excise tax changes, there were segments that did well (electrified automobiles and multipurpose vehicles).

Mr. Atienza paid tribute to Atty. Gutierrez and CAMPI leadership, saying that the chamber is in a good position and state of health owing to them and “members who have been very participative.”

Asked by “Velocity” on what the priorities are, particularly for its 30th year, he said, “We have four basic pillars as mentioned. It’s quite wide, but you sense probably that there’s a lot of things we have to do together with government… (These include) how to promote manufacturing, safe vehicles, education to improve programs under TESDA (Technical Education and Skills Development Authority) and the Department of Education to have a good pipeline of students. There’s quite a lot.”

The growth in electrified vehicles is expected to continue this year. “As an industry, we see the good trend going up. We don’t have an actual projection, because that one will depend on how many new models will be introduced. But as a trend, surely it will increase. It will be higher, the trend is very clear. If you look at the trajectory, it should increase. We are quite positive (about this).”

After a brief brouhaha on the funding for the Comprehensive Automotive Resurgence Strategy (CARS) strategy, government recently provided assurances that commitments will be honored this year. “We’re very thankful with the resolution of budget sourcing and payment for the CARS program,” Mr. Atienza maintained. “As you know, there were commitments by automakers which we’ve already done in the past years of the program, and we appreciate the move of the Department of Trade and Industry, Board of Investments, Department of Budget and Management, and Department of Finance for tax credits. Next is RACE (Revitalizing the Automotive Industry for Competitiveness Enhancement). We all know how important it is for automotive manufacturing. We’re always here to work with government and concerned agencies.”

Replying to a question from this writer on the possibility of greater local manufacturing activities for CAMPI members, Mr. Atienza averred, “First, we are, as a Filipino chamber, hopeful that the manufacturing industry will continue to grow in the Philippines. Of course, we all know the contribution of manufacturing in general – it can be cars, it can be anything. It’s a very big contribution to the economy and society; we hope that automotive can be part of it.”

There are ways to enhance the conduciveness for manufacturing, he explained, such as areas of competitiveness and costing. This is where “collaboration with agencies should come in on how to make Philippines a good environment for investments.” Speaking of, Mr. Atienza emphasized that establishing “a predictable environment” will also go a long way.

Does he think that RACE is not merely a contributing factor to realizing increased local auto production activities but a must as far as enticing players or participants go?

“It’s a must,” he declared. “But of course, it’s a transition into a longer future for manufacturing. So (we need to work) with government again to achieve that good environment for production.”

Villar Land says it will respond to SEC complaint

SEC.GOV.PH

VILLAR LAND Holdings Corp. said it has not yet received a copy of the complaint filed by the Securities and Exchange Commission (SEC) and will respond to all allegations once it does.

“Villar Land and its directors will answer all the allegations leveled against them after formal receipt of the alleged complaint,” the company said in a statement over the weekend.

Over the weekend, the SEC announced that it had filed a criminal complaint against Villar Land, its related entities, and their officers for market manipulation, insider trading, and misleading disclosures that the regulator said distorted the company’s share prices and misled investors.

The SEC filed the complaint on Jan. 30, charging Villar Land (formerly Golden MV Holdings, Inc.) with violations of Sections 24.1(d) and 26.3 of the Securities Regulation Code (SRC) for making false or misleading statements and engaging in acts that operated as fraud or deceit upon investors, according to the Commission.

Respondents named in the SEC complaint include Villar Land Chairperson Manuel B. Villar, Jr., former Senator Cynthia A. Villar, directors Cynthia J. Javarez, Manuel Paolo A. Villar, Camille A. Villar, and Mark A. Villar, as well as independent directors Ana Marie V. Pagsibigan and Garth F. Castañeda.

The SEC also named related entities Infra Holdings Corp. and MGS Construction, along with their officers Virgilio B. Villar, Josephine R. Bartolome, Jerry M. Navarrete, and Joy J. Fernandez, for alleged violations of Section 24.1(b) of the SRC.

According to the SEC, the charges stem from its investigation into Villar Land’s public disclosures and trading activities, which the regulator said misled investors and distorted the market price of the company’s shares.

2024 FINANCIAL STATEMENTS
Villar Land’s 2024 financial statements reported total assets of P1.33 trillion and net income of P999.72 billion, up from P1.46 billion the previous year. The company attributed the increase to a revaluation of its real estate holdings.

The SEC said these figures were disclosed to the public before the completion of the company’s external audit. The independent auditor later confirmed that the financial statements were not fully audited, particularly regarding the valuation of major properties. When audited statements were later submitted, total assets were reported at P35.7 billion.

The Commission’s complaint also cited trading activities by related entities, including Infra Holdings Corp. — owned by Virgilio B. Villar, brother of Manuel B. Villar, Jr. — and MGS Construction, which the SEC said appeared to create artificial demand and support Villar Land’s share price. Camille A. Villar was named for alleged insider trading after purchasing 73,600 shares in December 2017, shortly before a corporate disclosure that lifted the stock price.

“Building investor confidence in the Philippines is crucial in driving the inclusive and sustainable growth of our capital market and business sector for national development,” SEC Chairperson Francisco Ed. Lim said.

“In this light, the SEC is firm in addressing fraudulent and manipulative acts that mislead the investing public and distort our capital markets. The Commission likewise enjoins publicly listed companies to uphold the highest standards of good corporate governance to help strengthen and sustain investor confidence badly needed by our capital markets,” he added.

In November last year, the SEC revoked the accreditation of Villar Land’s appraiser, E-Value Phils, Inc., for failing to justify its P1.33-trillion valuation of the listed company’s properties. — Alexandria Grace C. Magno