Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 39

Notice of the Delisting Tender Offer to Common Shareholders of Keppel Philippines Holdings, Inc. (“KPHI” or the “Company”)



Click to enlarge

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.

Philippines raises alert level at restive volcano after eruption

Philippine Institute of Volcanology and Seismology (PHIVOLCS), Public domain, via Wikimedia Commons

MANILA – A restive volcano in the central Philippines spewed a column of ash as high as 4.5 km (2.8 miles) into the sky on Monday morning, prompting authorities to raise the alert level at Mount Bulusan and warn residents to stay out of a 4-km danger zone.

The Philippine Institute of Volcanology and Seismology (Phivolcs) raised Bulusan’s alert status from 0 to 1 on its five-level scale, signalling low-level volcanic unrest and warning of possible phreatic eruptions.

Prior to the eruption, which occurred between 4:36 a.m. and 5:00 a.m on Monday, the institute had recorded 53 volcanic earthquakes over a 24-hour period and local officials reported rumbling sounds.

Phivolcs also urged vigilance within an extended 2-km danger zone on the volcano’s southeast sector due to the risk of rocks and other debris being ejected by the volcano, as well as rock falls and avalanches.

Civil aviation authorities were advised to warn pilots against flying close to Bulusan’s summit.

Bulusan is one of 24 active volcanoes in the Philippines. The country lies is in the Pacific “Ring of Fire,” where volcanic activity and earthquakes are common. — Reuters

Car plows through Vancouver Filipino festival, killing at least 11

Police officers work at the scene, the morning after a vehicle was driven into a crowd at a Filipino community Lapu Lapu Day block party, in Vancouver, British Columbia, Canada April 27, 2025. -- REUTERS/Chris Helgren

VANCOUVER – At least 11 people aged between 5 and 65 were killed and dozens injured when a man with a history of mental health issues rammed an SUV through a crowd at a Filipino community festival in the western Canadian city of Vancouver, police said on Sunday.

Police arrested a 30-year-old Vancouver man at the scene of the incident on Saturday evening, describing him as having had a “significant history” of interactions with authorities involving mental health. They said there was no evidence of terrorism.

“This is the darkest day in our city’s history,” Vancouver Interim Chief Constable Steve Rai told reporters at a Sunday press conference.

He said dozens of people were injured, some critically, and warned that the death toll could rise in coming days and weeks. As of Sunday afternoon, Rai said he did not believe there were any ongoing threats to the community.

More than 100 police officers joined the investigation, as local officials worked with provincial and federal authorities to provide support services. Messages of condolence and support came from across the globe.

“The community will feel this for a long time,” RJ Aquino, chair of the community advocacy group Filipino BC, told reporters. “We want to tell everybody that we’re grieving. We want to tell everybody that we see and hear the support from around the world at this point.”

The attack on Saturday evening took place two days before Canada’s federal election on Monday. A spokesperson for Canadian Prime Minister Mark Carney said he would be traveling to Vancouver on Sunday.

Carney’s campaign movements were delayed on Sunday morning but he resumed campaigning after making a statement in which he expressed his condolences to the country’s Filipino community.

“Last night, families lost a sister, a brother, a mother, a father, a son or a daughter. Those families are living every family’s nightmare,” he told reporters in Hamilton, Ontario.

“I join all Canadians in mourning with you. I know that Canadians are united with you,” he said.

British Columbia Premier David Eby said at a press conference near the site of the attack on Sunday afternoon that it was hard not to feel rage towards the man who “murdered innocent people” for reasons that were not yet known.

“I want to turn the rage that I feel into ensuring that we stand with the Filipino community, that we deliver what they need, that we stand with those families who have lost loved ones,” he told reporters.

“I know it’s hard to believe it in this moment, but I know we will come back stronger.”

More than 12 hours after the incident, police still did not have a motive for the attack at the festival, which took place without a dedicated police presence or heavy vehicle barriers.

“There were no known threats to the event or to the Filipino community,” Rai said.

The suspect was initially chased down and held by festival-goers until police arrived, witnesses said. The injured were taken to multiple hospitals, police said.

The incident happened shortly after 8 p.m. (0300 GMT) in Vancouver’s Sunset neighborhood, an area known for its large Asian population, where the Lapu-Lapu Day Block Party, celebrating a Philippine national hero, was taking place.

One witness told CTV News he saw a black vehicle driving erratically in the area of the festival just before the crowd was struck. A photo of the aftermath posted online showed a dark Audi SUV with both front fenders crumpled and the hood pushed up toward the vehicle’s windshield.

While mass casualty attacks are far less common in Canada than in the United States, such incidents have occurred with some regularity north of the border.

At least two of those attacks involved motor vehicles. In 2021, a man killed four members of a Muslim family by running them over with a pickup truck. In 2018, a man drove a rented van into a lunch-hour crowd in Toronto, killing 10 people and injuring 15 along a sidewalk thronged with pedestrians.

‘HORRIFIC’

Online images from the scene in Vancouver showed the bodies of victims on the pavement alongside a row of colorful food trucks as others attended to them on a roadway littered with debris including what appeared to be a motorized scooter.

A witness who did not wish to be identified said he had seen about 15 people lying on the ground after the SUV plowed into the crowd. The witness said the driver tried to run but was chased down and held against a fence for about 10 minutes until police arrived.

“I didn’t get to see the driver, all I heard was an engine rev,” Yoseb Vardeh, co-owner of food truck Bao Buns, said in an interview with Postmedia.

“I got outside my food truck, I looked down the road and there’s just bodies everywhere,” said Vardeh, his voice breaking with emotion. “He went through the whole block, he went straight down the middle.”

The attack came at the end of the festival, following a concert headlined by Filipino-American rapper Apl.de.ap of the Black Eyed Peas, according to Mable Elmore, a member of the British Columbia Legislative Assembly, who attended the event.

“Everybody was happy and getting ready to go. And that’s when, that’s when the incident happened,” Elmore told reporters through tears.

“We are in incredible pain,” she said. “We will come together out of this catastrophe through the support and the love from the broad community.”

The festival, celebrated especially in the central Philippines, honors Datu Lapu-Lapu, a Filipino chieftain who defeated Spanish forces led by Ferdinand Magellan in the Battle of Mactan in 1521.

The government of British Columbia officially recognized April 27 as Lapu-Lapu Day in 2023, acknowledging the cultural contributions of the Filipino-Canadian community, one of the largest immigrant groups in the province.

The centerpiece of the festival is a multi-block street party featuring Filipino food and traditions, live performances and cultural displays. — Reuters

SEIPI eyes modest exports growth

A worker miniature is placed among printed circuit boards with semiconductor chips in this illustration picture taken on July 5, 2023. — REUTERS/FLORENCE LO/ILLUSTRATION

By Justine Irish D. Tabile, Reporter

THE Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) is hoping to see at least a modest growth in exports this year as more investments are expected to come in amid improved incentives and lower US tariffs.

“We have contracted for two years in a row. Now we have projected flat growth, but we are optimistic that we might see some modest growth,” SEIPI President Danilo C. Lachica told reporters on the sidelines of an event on Friday.

“It could be a single-digit growth, maybe 1-2% growth, just not flat,” he added.

Electronic products were the top commodity export of the Philippines last year, accounting for 53.4% of its total exports.

In 2024, the Philippines exported $39.1 billion of electronic products, down 6.7% from $41.91 billion a year prior.

Mr. Lachica said that the sector is quite optimistic this year as there is growing interest from foreign firms to locate in the Philippines due to the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act.

“There was a lot of interest because CREATE MORE is a big upgrade… but the first thing to overcome is if the country we will go to knows about the Philippines, so we have to advertise our country,” he said.

“And then the second thing is… we need to show improvements in our operating costs, whether that is power or logistics.”

However, he said even if investments are much higher, it will not translate to an increase in manufacturing exports immediately.

“But the good thing is, you’re fueling the growth engine with these investments, which will eventually generate employment and generate the supply chain. So, we’re looking forward to that,” he added.

At the same time, Mr. Lachica said that the 17% tariff rate to be imposed by the US could encourage some companies in other countries with higher tariffs to look at the Philippines for expansion.

Philippine exports to the US face a 17% tariff, the second lowest among Association of Southeast Asian Nations (ASEAN) member countries after Singapore’s baseline rate of 10%. The higher tariff has been suspended until July.

“While we’re enjoying that sweet spot, what’s concerning is the intrinsic value of our exports. We’re in the back-end assembly test and packaging. That’s why my hope is to see a commercial wafer fab,” he said.

SEIPI previously proposed to the government the establishment of a lab-scale wafer fab, which is estimated to cost around $10 million.

“A lot of people still believe that we do not need a wafer fab… Our proposal is a tabletop wafer lab [because] we are trying to grow our integrated circuit design industry,” he said.

“We need a government agency to help us out, someone who understands. And then, it’s going to be a combination of government funding and bank funding,” he added.

According to Mr. Lachica, SEIPI will be sending a proposal to the Department of Science and Technology as early as the end of May.

While the 17% tariff is lower compared with those imposed on other ASEAN members, Mr. Lachica said the Philippines should still negotiate a lower rate.

“We want to work on reducing it further. Because… we don’t know if it’s going to remain at 17%. When all is said and done after negotiations, maybe later other countries will even out,” he said. “That’s why we cannot leave anything on the table. We have to take this opportunity sooner rather than later to negotiate.”

Trade Secretary Ma. Cristina A. Roque and Special Assistant to the President for Investment and Economic Affairs Frederick D. Go will be in Washington from April 29 to May 2 for tariff talks with their US counterparts.

Mr. Lachica said the Philippines will have to tread carefully as the electronic sector imports 30% of its raw materials from China.

“If China is slapped with an exorbitantly high tariff, then their form of retaliation might be holding back on materials that they export. For example, the rare earth and rare metals, already one of our members cannot get their supply of magnets,” he said.

“So, if this escalates, the 30% we import from China might be severely impacted,” he added.

If it happens, he said that the Philippines will have to develop other sources.

Aboitiz InfraCapital Head of Economic Estates Rafael Fernandez de Mesa said that the tariffs will bring uncertainty and volatility, which could be “good for the Philippines.”

“Why do I think it’s good? Because as a business, you are trying to manage that risk and that volatility, and in an industrial sector where it’s really a global landscape, you need to have your risk diversified, and that’s where the Philippines comes into play,” he told a panel discussion.

“In a world of uncertainty and volatility, I think there’s going to be more movement towards the Philippines. That’s what we’re starting to see over the month and a half: renewed and more accelerated interest,” he added.

PHL banks continue to fall short of lending quota for MSMEs

A VENDOR waits for customers at a market in Marikina City. — PHILIPPINE STAR/WALTER BOLLOZOS

By Luisa Maria Jacinta C. Jocson, Senior Reporter

THE PHILIPPINE banking system continued to miss the mandated lending quota for micro, small and medium enterprises (MSMEs) as of end-December 2024, Bangko Sentral ng Pilipinas (BSP) data showed.

Loans granted by the banking sector to MSMEs amounted to P546.22 billion at end-December, accounting for just 4.86% of their total loan portfolio of P11.25 trillion.

This is well below the 10% overall requirement under the Magna Carta for MSMEs. Under the law, banks must allot 8% of their loan book to micro and small enterprises. Banks need to allocate 2% of their loan portfolio to medium-sized businesses.

Under the Magna Carta, an enterprise is typically considered micro if its total assets are not more than P3 million while a small enterprises’ assets would range from more than P3 million to P15 million. A medium enterprise’s assets would be from over P15 million up to P100 million.

Most banks have opted to incur penalties for noncompliance with the MSME lending quota instead of taking on the risks associated with lending to small businesses.

Broken down, credit disbursed to micro and small enterprises stood at P217.1 billion during the period, equivalent to just 1.93% of their total loan book, falling short of the 8% quota. However, this was higher than the 1.86% share logged at end-September.

Meanwhile, loans to medium enterprises reached P329.1 billion at end-December. This accounted for 2.93% of their total portfolio, exceeding the 2% requirement. It also rose from the 2.69% posted in the previous quarter.

By type of bank, universal and commercial banks extended P138.07 billion worth of loans to micro and small enterprises at end-December, or 1.46% of their total loans worth P10.29 trillion.

Big banks’ loans to medium enterprises amounted to P270.7 billion or 2.63% of the total.

Thrift banks allocated P37.7 billion in loans to micro and small enterprises, representing 3.83% of their P699.01-billion loan book. Credit to medium enterprises reached P37.64 billion or 5.44% of the thrift banks’ portfolio.

Only rural and cooperative banks met the overall MSME lending quota. They extended P40.91 billion to MSEs (16.75% of their portfolio) and P20.71 billion to medium enterprises (8.83% of their portfolio).

Loans disbursed by digital banks to the micro and small enterprise sector stood at P445 million at end-December, accounting for 1.82% of their lending portfolio of P24.48 billion, while they lent P50 million to medium enterprises or just 0.21% of the total.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said banks’ failure to hit the MSME lending quota may have to do with “asymmetric information” on the credit of small businesses in the country.

“Though banks have increased efforts to tap more of the MSME loan market in recent years, as partly supported by loan guarantees to encourage more lending to this market.”

“There were even incentives during the pandemic such as allowing lending to MSMEs as part of compliance with required reserves, though this was only temporary during the pandemic,” he added.

The BSP allowed banks to count MSME loans as alternative reserve compliance with the reserve requirements to help support the sector during the pandemic, but this relief measure expired in June 2023.

However, it was extended for thrift banks and rural and cooperative banks until Dec. 31, 2025.

Mr. Ricafort also noted banks were likely pricing in more risk when they consider lending to small enterprises.

“Given the higher credit risk involved, there are also higher risk weights on riskier lending activities in view of tighter capitalization standards adopted by regulators and required on banks in recent years,” he added.

FX intervention targets inflation, not capital flows — BSP

IN EARLY APRIL, the central bank lowered its forecast for risk-adjusted inflation to 2.3% this year from the 3.5% prediction it made in February. — BLOOMBERG

THE PHILIPPINE central bank said its periodic intervention in currency markets would be aimed at stemming inflationary pressures if the peso was to weaken, but that it’s not trying to manage capital flows into and out of the country.

“We don’t like to do capital flow management — we stay away from that, and we continue to stay away from that,” Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona, Jr. said in a panel discussion at the International Monetary Fund meetings in Washington on Friday. “We intervene when we see that the peso is swinging to a point where it becomes inflationary, and then we try to slow down that trend.”

The unusually explicit comments about currency intervention come as export-oriented Southeast Asia grapples with the fallout from US President Donald J. Trump’s tariff policies. The Philippines has fared better than many other emerging markets, with the peso advancing about 2.8% against the dollar this year even as the central bank lowered borrowing costs.

Southeast Asia’s biggest economy, Indonesia, has the region’s worst-performing currency, with the rupiah declining 4.3% this year. Bank Indonesia has repeatedly intervened to smooth out volatility as capital flowed out of the country.

Mr. Remolona said global factors rather than domestic ones are often the key drivers of volatility in emerging market currencies.

“The single biggest risk factor that distinguishes emerging markets from advanced economies is the exchange rate,” he said in the discussion that was moderated by Bloomberg Television’s Lisa Abramowicz. “What happens in the Philippines is the peso swings up and then it swings down, it appreciates and depreciates. And usually it’s a dollar story: It’s the dollar responding to geopolitical factors.”

Investor concern about the Trump administration’s policies has recently reduced the attractiveness of the dollar, alleviating some pressures on emerging market currencies.

On April 10, when the BSP cut rates, Mr. Remolona told a briefing that “like the rest of the world, we’re looking at slower growth, but unlike the rest of the world, we’re looking at lower inflation.”

That allows the bank to have an accommodative monetary stance, he said at the time. The Philippine government has said it wants growth to accelerate to at least 6% this year from 5.6% in 2024, when multiple typhoons ravaged farm crops.

In early April, the central bank lowered its forecast for risk-adjusted inflation to 2.3% this year from the 3.5% prediction it made in February. But in his Friday panel, Mr. Remolona made it clear that the BSP stands ready to act if exchange rate moves were to fuel price gains.

“If you look at the experience of inflation targeting, there’s a compelling reason to do that,” he said. “You’re using foreign exchange (FX) intervention for purposes of managing inflation, and that’s okay. That’s perfectly okay.” — Bloomberg

MB-approved foreign borrowings more than double in Q1

TIMA MIROSHNICHENKO-PEXELS

MONETARY BOARD (MB) approvals for public-sector foreign borrowing more than doubled in the first quarter, the central bank said.

Data from the Bangko Sentral ng Pilipinas (BSP) showed approved public-sector foreign borrowing soared to $6.29 billion in the first quarter from $2.87 billion in the same period a year ago.

Broken down, the approvals consisted of bond issuances worth $3.33 billion, five project loans ($1.46 billion) and three program loans ($1.5 billion).

“The approved foreign borrowings have medium- to long-term maturities,” the BSP said.

It said the proceeds of the bond issuances will be used to “fund various budget requirements of the National Government (NG), including socioeconomic programs and projects, as well as settlement of maturing financial obligations.”

“The program loans are meant to fund projects on economic development and finance initiatives, while the project loans will fund initiatives in the areas of transportation and infrastructure,” it added.

Under the Constitution, the Monetary Board is required to approve any foreign loan agreements entered by the NG.

The BSP must also approve in principle any foreign borrowing proposals by the National Government, government agencies and government financial institutions before actual negotiations.

The Monetary Board must submit a report of its decision on these applications for loans within thirty days from the end of every quarter of the calendar year.

The central bank said this is in line with its task of “ensuring that the country’s foreign debt remains manageable.”

Latest data from the BSP showed the Philippines’ outstanding external debt rose by 9.8% to $137.63 billion as of end-December 2024 from $125.39 billion a year ago.

This brought the external debt-to-gross domestic product (GDP) ratio to 29.8% at the end of 2024, higher than the 28.7% at end-2023.

The NG’s gross borrowings rose by 4.92% to P213.14 billion in January from P203.15 billion a year prior, latest Treasury data showed.

Of this, gross external debt dipped by 1.14% year on year to P60.94 billion in January. This consisted of program loans (P56.29 billion) and project loans (P4.65 billion).

This year, the government’s financing program is set at P2.545 trillion, where 20% will be sourced from foreign sources. The Finance department is seeking to gradually adjust the borrowing mix to rely less on external borrowings to mitigate foreign currency risk. — Luisa Maria Jacinta C. Jocson

Financially securing Filipinos across life stages

To take full advantage of life’s potential, individuals need to be secured from the possible impacts of health emergencies and other unprecedented events. Several financial solutions aim to secure consumers and their families from the unprecedented, as seen in life insurance offerings available in the market today.

Life insurance has been serving as a safety net that empowers people to lead more comfortable lives and secures their future by financially protecting them from several types of risks.

“Even the best of plans can get waylaid due to unforeseen events. The value of life insurance in financial planning is that it provides individuals and families with a safety net in the event of crises or tragedies,” Maria Floraida C. Endozo, first vice-president and deputy head of the Actuarial Division at Cocolife, told BusinessWorld. “It eases the financial burden that often follows an unexpected death or disability and provides a source of income replacement, helping maintain financial stability.”

Maria Floraida C. Endozo, first vice-president and deputy head of the Actuarial Division at Cocolife

Select firms in the country are committed to improve the means they financially protect Filipinos. Among them, Cocolife, the biggest Filipino-owned stock life insurance company, continues to significantly progress to deliver the best insurance solutions at affordable costs.

In its endeavor to help clients achieve a future free from financial worries, Cocolife’s comprehensive and unique offerings are designed to meet clients across life stages, from fresh graduates and young professionals to retirees.

“Cocolife has a diverse range of life insurance products tailored to support individuals at every stage of life. We carefully consider each person’s financial capacity and goals, ensuring that our products are both practical and accessible,” Ms. Endozo said.

For those just starting out in life, whether embarking on a career or building their family, the Cocolife Term Shield and Cocolife Protect are fitting plans to protect their finances. These are affordable entry-level term insurance products with substantial benefits to help safeguard individuals from unexpected life events.

Older individuals, meanwhile, can look into endowment plans and investment-linked plans. These include Cocolife LifeMax, Cocolife LifeVest, Cocolife Flexi, Money Accumulator Classic, Money Accumulator Preferred, Money Accumulator Preferred Plus, and Cocolife Zenith. Cocolife has designed these plans to help parents and professionals build their wealth, fund their futures, and achieve their goals and dreams.

Cocolife Aruga, a health and life insurance plan, stands out by offering protection for individuals facing critical illnesses and other health conditions. It is designed to cover medical expenses and provide the insured and their dependents with financial assistance for their future needs. By providing benefits based on actual conditions regardless of the specific illness or event, it eliminates the need to navigate a lengthy list of covered illnesses and exclusions, making the coverage easier and more accessible.

This groundbreaking approach earned Cocolife Aruga the Health Insurance Initiative of the Year-Philippines at the 2024 Insurance Asia Awards and the Most Innovative Inclusive Health Insurance Plan-Philippines at the 2025 Annual Global Economics Awards.

Ma. Rowena J. Asnan, first vice-president and head of the Marketing and Research Department at Cocolife

All these offerings are a result of Cocolife’s efforts to understand the current financial needs of Filipino families. According to Ma. Rowena J. Asnan, first vice-president and head of the Marketing and Research Department at Cocolife, the company conducts research studies and gains insights on the latest market needs, aspirations, and consumer behavior. This is made possible by the Cocolife Idea Hub, a research community that helps deliver and shape insurance products and services tailored to market needs and demands.

Through its latest study, titled “Cocolife Moneyfest: The Financial Futures,” Cocolife mined important insights into the financial behaviors, priorities, and insurance preferences of policyholders.

“By understanding short-term and long-term financial goals, analyzing purchase decisions and motivations and identifying areas for improved business operations, Cocolife is able to design products and services that are truly responsive to the customers’ evolving needs,” Ms. Asnan shared.

Moreover, Cocolife has developed its customer service portal Just Ask Live (JAL), an omnichannel platform that creates a seamless face-to-face customer interaction — through audio or visual communication — ensuring their every need and expectations are consistently met.

With a sustained commitment to quality life insurance that champions all Filipinos, Cocolife plans to expand their life insurance products and services to underserved regions and demographics.

“Moving forward, Cocolife remains committed to advancing the life insurance sector by continuing to innovate and develop products that meet the changing financial needs of Filipinos. We aim to empower more individuals and families by making insurance products more accessible, inclusive, and affordable, regardless of their income level or location,” Ms. Endozo said.

Beyond serving customers with the most fitting plans, Cocolife seeks to champion financial literacy among Filipinos.

“Financial constraints and the lack of understanding on the value of insurance coverage remain as major barriers in the purchase of insurance of the market,” Ms. Asnan shared. “With these caveats, Cocolife will continue to educate Filipinos on the importance, benefits, and beauty of insurance through financial literacy programs. These programs are designed to help them realize that insurance is a necessity and a smart investment in improving their quality of life.”

Know more about Cocolife’s quality insurance and healthcare products by visiting www.cocolife.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.

Netbank and JuanHand sign partnership for a financially inclusive future

In the photo from left to right: WeFund Lending Corp. President and CEO Francisco “Coco” Mauricio, Netbank Head of Lender Amiel De Sotto, Netbank Co-Founder and CEO David Paulo Dela Paz, WeFund Lending Corp. Business Development Officer Maxine Isabell G. Juan, and FinVolution Chief Executive Officer Tiezheng “Tim” Li

Netbank, Inc., a leader in rural banking, has partnered with JuanHand, the country’s leading pure fintech lending app, to broaden its reach to the unbanked and underserved communities across the nation.

The partnership between the fintech companies will assist Filipinos of all ages in achieving their dreams and financing businesses by offering innovative lending solutions tailored to their specific needs. Attendees at the event include representatives from both organizations, such as Netbank’s Co-Founder and CEO David Paulo Dela Paz and Head of Lender Amiel De Sotto. Key figures from FinVolution and WeFund Lending Corp. are also present, including FinVolution Global CEO Tiezheng “Tim” Li, and WeFund Lending Corp. President and CEO Francisco “Coco” Mauricio.

“Through embedded finance, we’re enabling JuanHand to better serve more underserved Filipinos,” said Amiel de Sotto, Head of Lender at Netbank. “Our goal is to empower partners like JuanHand to scale faster and deliver financial services directly to those who need them the most.”

JuanHand, operated by WeFund Lending Corp., has disbursed over P40 billion in loans and over 12 million users. The app is famous for its fast approval, minimal requirements, and easy-to-use interface. JuanHand’s innovation, compliance, and accessibility to customer service earned it the title of the leading loan app in the country.

“We are delighted that Netbank chose JuanHand to be its lending partner,” said Francisco “Coco” Mauricio, President and CEO of WeFund Lending Corp. “This partnership will benefit millions of Filipinos and provide financial assistance anytime and anywhere they need it. With Netbank, we will continue to break boundaries serving every Juan.”

Download the JuanHand app from Google Playstore or iOS Appstore. For more information, visit www.juanhand.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.

A progressive start for the Philippine auto industry

standret | Freepik

As vehicles of various sizes continue to serve multiple purposes on the road and thus keep the economy on the move, the local automotive industry has kick-started its growth in the previous quarter, revving up its engines for further growth in the months ahead.

Maintaining its momentum, the Philippine automobile market started 2025 on a positive note in terms of vehicle sales and growth. According to a joint report from the Chamber Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA), vehicle sales accelerated at the beginning of the year, showing a 10.4% year-on-year increase, leading to 37,604 units of vehicles sold. With such growth, the industry projected an overall 8% rise in vehicle sales, aiming for 512,000 sold units in 2025.

“Car sales in January 2025 likely reflected a combination of strong consumer demand, improved supply chain conditions, and continued economic recovery,” John Paolo R. Rivera of the Philippine Institute for Development Studies, was quoted as saying in a previous BusinessWorld report.

Based on the shared data, commercial vehicles are driving this month’s sales with a 16% increase and 29,875 units sold. These, then, are followed by a 17.8% increase in light commercial vehicle sales, and a 13% increase from the Asian utility vehicles (AUV) sales. Each have ultimately reached 22,350 units and 6,698 units sold, respectively.

While overall vehicle demand is high, month-on-month sales growth has slowed down since December 2024. Adding to this is a decrease in passenger car sales, which fell by 23.7% month on month, and 8.5% year on year.

Meanwhile, truck vehicle sales marked progress. Specifically, light truck sales climbed up by 20.6% with 497 units sold; while heavy trucks saw 9.5% growth in sales with 69 units sold.

Despite the steady progression in the first of month of the year, February experienced slow growth, recording a 4.1% year-on-year increase and 37,604 units sold.

The growth was primarily driven by commercial vehicles, AUVs, trucks, and buses. Still leading year-on-year vehicle sales were commercial vehicles, posting 9.1% growth, including 10.2% increase for light commercial vehicles. Alongside this, sales for AUVs rose to 5% and those for new vehicles to 2.9%.

However, passenger cars remained in a downturn, showing a 15.4% decrease in vehicle sales, from 9,638 units sold in 2024 to only 8,154 units this year. This decline is derived from consumers’ shifting preferences to commercial vehicles, as said by experts from Rizal Commercial Banking Corp. (RCBC) and Regina Capital Development Corp. in previous statements.

On a more positive note, month-on-month sales for passenger cars grew by 5.5%, resulting in 7,729 units sold compared to the previous month.

Trucks and buses saw notable gains last February. Heavy-duty trucks and buses increased at 39.3% with 85 units sold. This was followed by medium-duty trucks and buses at 9.6%, with 286 units sold, and light-duty trucks and buses at 7.4%, with 554 units sold.

Alongside these numbers, industry and experts observed shifting preferences and rising demand for vehicles that are designed for utility and passenger transport, and to be climate-resilient. The vehicles that have gained more popularity by the aforementioned month are AUVs and sport utility vehicles (SUVs).

“There has been a notable consumers’ preference for connected and personalized driving experiences, alongside a shift towards sustainability and environmental concerns,” CAMPI President Rommel R. Gutierrez said in a statement.

“Technological advancements in artificial intelligence, sensors, and infotainment systems, among others, are showing potential to transform the industry over time. These factors will contribute to the overall positive sales trends in 2025,” he added.

In March, the auto industry continued its upward trajectory with notable growth across several segments. During this month, the report highlighted that automotive vehicle sales grew by 7.6%.

Overall vehicle sales climbed by 2.9%, bringing total sales to 40,306 units. Commercial vehicles still performed strongly with a 16.5% increase year on year, as well as light commercial vehicles sales with 18.2%. Also contributing to the growth of vehicle sales were AUVs, up at 9.9% (7,057 units sold), and passenger cars, at 3.16% (8,154 units sold).

Sales of trucks and buses have continued their upward trend last month. Heavy-duty trucks and buses soared at 122.2% (100 units sold), and light-duty trucks and buses rose at 40% (447 units sold). Sales for medium-duty trucks and buses, however, dropped by 3.4% (320 units sold).

While passenger cars had 21% of the market share, it experienced a significant 16.6% decline in growth, falling from 10,127 units to 8,449 units compared to the previous year. Medium-duty trucks and buses also struggled, with a 3.9% increase, a slight drop from 333 units last year to 320 this year.

Vehicle sales remain dominated by market leaders. At the top rank is Toyota Motor Philippines Corp., holding 47.42% of the market share. In the last three months, it sold 55,513 units alone. The second player leading in automotive sales is Mitsubishi Motors Philippines Corp., with a 20% of the market share, and at least 23,382 units sold over the past three months. These manufacturers were followed by Nissan Philippines, Inc., with 6,722 units sold; Suzuki Phils., Inc., at fourth place with 5,441 units sold; and Ford Motor Co. Phils., Inc., with 6,722 units sold.

Charging roads ahead with EVs

Furthermore, the automotive industry is not only powering up roads but is also progressing with sustainability as manufacturers respond to the rising demand for electric vehicles (EVs) in Southeast Asia.

According to the 2025 Global Consumer Study by Deloitte, consumers in various global markets, including the Southeast Asia, are looking at EVs as their next vehicles. In particular, 17% of them prefer hybrid electric vehicles (HEVs), 13% for plug-in hybrid electric vehicles (PHEVs), and 11% for battery electric vehicles (BEVs) for the type of engine in their next vehicle. The survey also pointed out key reasons for choosing EVs as their next vehicles, such as lower fuel costs (64%), concern for the environment (55%), and driving experience (51%).

The growing interest for EVs sped up the development and preference of EV charging stations in many markets. For instance, Southeast Asian consumers are more in favor of charging their EVs at home (62%), in public (28%), and at work (10%). Unfortunately, access to these charging stations is not widely accessible. The survey reported only 32% have charging stations at home, 8% that share with others, and 58% with no access at all.

Within the Philippine market, EV adoption is projected to keep up the pace, starting with EV sales that showed significant growth in recent months.

At the beginning of the year, data showed EV sales escalated to 1,600 units, which included 1,445 hybrid EVs, 146 battery EVs, and nine plug-in hybrid EVs. In February, a total of 1,816 units were sold, and then sales rose further to a total of 1,895 units in March. As a result, the automotive industry accumulated a total of 5,311 EV units in the last three months, capturing 5.73% of the market share. — Angela Kiara S. Brillantes

Economic forces shifting automotive industry’s gears

storyset | Freepik

The Philippine automotive industry has been a bright spot for the Philippine economy, accounting for 19% of the country’s gross domestic product (GDP). This significant contribution includes motor vehicle assembly, importation and distribution, rebuilding, and the manufacturing of parts and components. 

As a vital driver of economic activity, growth in the industry correlates with an increase in GDP. In 2024, vehicle sales reached 475,094 units, marking a 7.64% increase from the previous year. Meanwhile, the economy expanded at a similar pace of 5.6% last year. However, this growth is not without underlying economic influences that also affect the automotive industry. 

Rising inflation had a noticeable impact on car buyers’ purchasing decisions when it was volatile a few years ago. With higher prices for fuel, food, and basic goods, consumers became more cautious with big purchases such as properties, gadgets, and even vehicles. As a result, many buyers begin to lean toward more fuel-efficient, practical, and cost-effective models. This can be observed in 2023 when headline inflation in the country was at 6% for the year and the best-selling cars for the year were sedans, subcompact SUVs, and crossovers. 

Economic conditions have also influenced a shift in consumer automobile preferences. The Philippine middle class has seen significant growth, particularly from 1991 to 2018, with its share of the population increasing from 28.5% to 43.5%. The still-rising segment, with its increasing income and purchasing power, has led to a higher demand for passenger cars, according to online data firm Statista. Additionally, consumers from the middle-income segment, who prioritize both affordability and utility, have driven strong demand, particularly for compact vehicles, sedans, and budget-friendly SUVs that offer a practical mix of price and functionality. 

Another economic factor contributing to industry growth is the accessibility of auto financing. Banks and financing companies have been offering competitive loan packages, low down payments, and extended payment terms, making car ownership more attainable even for first-time buyers in the Philippines. 

Latest numbers from the Philippine Savings Bank (PSBank) show high demand for car loans, as the institution earned P2.56 billion in the policy alone. The figure represents an 18% jump from last year’s P2.17 billion. 

Furthermore, car manufacturers and banks have started partnering up to encourage more purchases through exclusive promos, discounted interest rates, and bundled insurance packages, which can be seen in the ventures of Mitsubishi Motors Philippines Corp. and Security Bank Corp., as well as Tesla Philippines and Rizal Commercial Banking Corp. 

Government initiatives have also played a key role in shaping the sector. In May 2024, the Philippine government extended its zero-tariff policy on electric vehicles (EVs), hybrid vehicles, and e-motorcycles until 2028 to accelerate the country’s transition to sustainable mobility and reduce dependency on fossil fuels. 

The Comprehensive Automotive Resurgence Strategy (CARS), which aims to upgrade and create globally competitive manufacturing industries, and the Motor Vehicle Development Program, designed to provide the automotive sector with comprehensive industrial policy and development direction, have further laid the groundwork for long-term growth in the sector, and potentially, cheaper cars for Filipinos. 

The Philippine automotive sector stands at a dynamic intersection of consumer evolution, government policy, and economic momentum. While inflation, global supply chain issues, and fluctuating fuel prices remain potential headwinds, the market’s long-term outlook remains positive. 

Automakers that adapt to economic shifts — by offering affordable and fuel-efficient models, exploring electrification, and embracing digital retail — are poised to thrive. As the country’s economy continues to expand and diversify, the auto industry’s ability to respond to these forces will determine its role not only as a contributor to GDP, but also as a catalyst for inclusive growth and innovation in the years ahead. — Jomarc Angelo M. Corpuz

The Filipino’s guide to insurance at every stage of life

jakubzerdzicki / unsplash

Events of recent years in the Philippines have driven Filipinos to realize the value of insurance.

In 2021, the Philippine Life Insurance Association, Inc. reported that 67% of Filipinos were more likely to buy health insurance online during the coronavirus disease 2019 (COVID-19) pandemic, while 66% preferred pruchasing life insurance. More recently, the Manulife Asia Care Survey 2024 found that nearly 80% of Filipinos are looking to expand their insurance coverage and benefits in response to the rising costs of goods, services, and healthcare.

While a willingness to become insured is surely a welcome sight for Filipinos, understanding that insurance isn’t a one-size-fits-all solution is key to having the right coverage in every age. From the first insurance bought to the golden years of retirement, each stage of life influences the type of insurance coverage needed, the cost of premiums, and the most suitable policy options.

Laying the groundwork early

Many believe that the right time to avail of insurance is in one’s 20s to 30s. However, it may be smarter to invest as early as possible. With generally better health and fewer medical risks, younger individuals are considered low-risk by insurers, leading to more affordable premiums and a wider range of policy choices.

Starting young with insurance offers several advantages. Locking in a policy early means enjoying low rates that stay affordable over time. With the younger generation placing greater importance on mental health and overall well-being, having peace of mind through financial protection can ease the stress of unexpected expenses.

Additionally, insurance plans with investment or savings features, like variable universal life policies, can help lay the groundwork for future financial goals, which can be extremely beneficial for fresh graduates and young professionals. By starting early, they not only protect themselves but also take a smart step toward building a more secure financial life.

When commitments expand

By the time one reaches the age of 30, many Filipinos may have already started building their own families, bought their own homes, or are moving up in their careers. This means that adults of this age are more financially secured and can afford to get insurance with better coverage and better premiums.

At this stage of life, a few insurance options become increasingly important. Term life insurance is crucial for income protection, especially for those who are the primary earners in their families. This guarantees payment of a stated death benefit to the insured’s beneficiaries should something happen within a specified term.

Health plans with family coverage should also be a priority for those starting a family. Maternity benefits, children’s medical needs, and regular checkups can be pricy, making comprehensive coverage a need. Protecting property and car investments helps prevent significant financial setbacks in case of accidents or natural disasters.

Educational plans can also be a consideration at this stage. Starting early ensures that your child’s tuition is covered no matter what happens in the future, giving the insured a head start on saving for their kids’ education without the burden of financial stress in the future. Investment-linked insurance can also be an excellent choice as it helps protect loved ones while simultaneously building savings for long-term financial goals.

Once at the financial midpoint

Filipinos usually experience the peak of their careers during their 40s. At this point, they earn the most while also having greater financial commitments. One’s midlife can be a financial checkpoint, a good time to sit down with a financial advisor to review and possibly update their insurance portfolio.

Expanding life insurance is recommended to match a changing lifestyle, whether it is to cover bigger loans or provide extra protection for loved ones. Critical illness coverage may be of importance as well. Age-related health risks start to become more of a reality at this point in one’s life. Planning for long-term care and future medical expenses can go a long way in avoiding unexpected burdens later on. Protecting assets, such as a home, business, or other investments, is also prudent to prevent major setbacks from accidents, disasters, or legal claims.

Preserving wealth into legacy

As retirement approaches in one’s 50s and 60s, the focus inevitably shifts from building wealth to preserving it. Insurance at this point plays more of a protective role. Medical needs tend to grow with age, and so does the desire for peace of mind and financial stability for their children and maybe even grandchildren. It’s also a good time to reassess what’s still necessary. For example, large life insurance policies might no longer be needed if children are already financially independent.

Comprehensive health insurance becomes top priority, especially plans that cover age-related conditions and possible hospital stays. Long-term care coverage becomes more important, offering support in case caregiving or assisted living services are needed.

Most at this age also start thinking about what they will leave behind. Life insurance thus becomes a tool for wealth and estate planning, helping with estate taxes and providing a safety net for loved ones. Some insurance plans even offer retirement payouts, providing a steady stream of income to supplement savings.

For those in their 70s, insurance becomes less about growing wealth and more about preserving dignity, independence, and leaving a legacy. The needs are different, but the value of having the right coverage remains high.

Hospitalization and final expense insurance can help cover medical bills and funeral costs, easing the financial burden on loved ones. Even modest legacy planning policies can be meaningful, giving seniors a way to leave something behind.

At this age, simplified or guaranteed-issue plans become attractive, especially for those with pre-existing health conditions, as they typically require fewer medical checks. Many providers now offer plans tailored specifically for seniors, focusing on what matters most at this life stage.

Age plays a big role in how insurance works. The younger a person is when they get insured, the lower the premiums — thanks to lower health risks and more time to grow investments. As people get older, premiums tend to increase, and some options may no longer be available. Seniors, for example, might face limits on the types of policies they can apply for or how much coverage they can get.

This is why starting early isn’t just smart; it can be the key to unlocking better rates, broader choices, and long-term financial security. Age changes the conversation, but insurance remains a constant need throughout every stage of life. — Jomarc Angelo M. Corpuz

1...383940...12,617Page 39 of 12,617
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube