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SMC completes bondholder approval process for part of NAIA financing plan

NEWNAIA.COM.PH

SAN MIGUEL CORP. (SMC) said it has completed the consent solicitation process for three of its fixed-rate bond series, allowing the company to move forward with plans to use shares in its New NAIA Infra Corp. subsidiary as collateral for project financing.

In a disclosure on Tuesday, SMC said it obtained approvals from more than 50% of bondholders for its Series C, J, and K bonds, which collectively amount to several billion pesos in outstanding principal.

The process, known as a consent solicitation, sought investors’ approval to amend certain bond terms linked to collateral and loan conditions.

“With the completion of the solicitation period, the trustee and selling agents will no longer accept new consent forms,” SMC said, adding that only forms submitted before the cut-off will be verified for eligibility to receive a consent fee.

The move is part of SMC’s broader effort to secure financing flexibility for New NAIA Infra Corp., which will undertake the rehabilitation and operation of the Ninoy Aquino International Airport (NAIA).

SMC said the details of the Supplemental Trust Agreements and the Consent Payment Dates will be announced later.

Other bond series under SMC’s consent solicitation, including the Series G, I, L, M, N, O, and P bonds, remain open for approval until Oct. 22.

SMC shares closed unchanged at P56.60 apiece on Tuesday. — A.G.C. Magno

A great pessimist and unapologetic traditionalist: László Krasznahorkai wins the 2025 Nobel Prize in Literature

COMMONS.WIKIMEDIA.ORG

HUNGARIAN writer László Krasznahorkai has won the 2025 Nobel Prize in Literature for “his compelling and visionary oeuvre that, in the midst of apocalyptic terror, reaffirms the power of art.”

Krasznahorkai is the author of nine novels, numerous collections of short fiction and essays, and several screenplays, including co-writing the epic seven-hour film adaptation of his first book Satantango (1985). He is one of the most distinctive, recognizable writers in the world today.

His language is the mad scream of a godless universe at our inexcusable squandering of every good thing given to us by chance. The voluble form stirs up the broken content in an irresistible current, flowing from the Big Bang to Paradise — right past our lost world.

His prose is difficult to excerpt. The sentences never end, so even a few quoted words inevitably draw one into the vortex of an all-consuming syntactical storm system. There is no way out once you are drawn in. You find yourself in a stylistic quicksand that is perversely comforting.

ANARCHO-CAPITALIST-KLEPTO-NIHILISM
Krasznahorkai’s work has frequently been described as “apocalyptic,” and that is accurate enough. But what is the nature of his apocalypse?

Generally, in his great tetralogy — Satantango, The Melancholy of Resistance (1989), War and War (1999) and Baron Wenckheim’s Homecoming (2016) — some dark wickedness is approaching. Its signs are the gathering of middle-aged men in public places, strange graffiti, leaflets, an oddly charismatic speaker, and the breakdown of public services — preludes to some major outbreak of destruction and violence.

Members of a putative and ineffectual counterforce are indicated. We chart their mounting concern and anxiety as the inevitable malevolence gains momentum.

One way to think about this is in relation to the breakdown of Eastern European communism and the rise of anarcho-capitalist-klepto-nihilism. This is a perfectly viable lens, but Krasznahorkai also charts the global trend towards far-right “strongman” rule of the kind typified by Hungary’s prime minister, Viktor Orbán.

Orbán’s veneration by Donald Trump and JD Vance, and his similarity to Vladimir Putin, Javier Milei, Benjamin Netanyahu and others of this vicious breed, make his Hungary ground zero for the toxic plume of fascism spreading around the contemporary world.

Krasznahorkai’s front-row seat at this theater of degeneration has made him perhaps the most reliable source of aesthetic information about its spiritual consequences. Orbán’s post on the Elon Musk-owned X congratulating Krasznahorkai on his Nobel win is one of the bitter ironies of contemporary history.

GRACIOUS COMPENSATIONS
If that was all there was, Krasznahorkai’s work would be a tough slog indeed — which it is. But it is not without gracious compensations.

Krasznahorkai is an unapologetic traditionalist. He holds to an idea of the arts as our best resource for preventing the slide into barbarism. In an interview earlier this year, he said:

“Art is humanity’s extraordinary response to the sense of lostness that is our fate. Beauty exists. It lies beyond a boundary where we must constantly halt; we cannot go further to grasp or touch beauty — we can only gaze at it from this boundary and acknowledge that, yes, there is truly something out there in the distance. Beauty is a construction, a complex creation of hope and higher order.”

German composer Andreas Werkmeister presides over The Melancholy of Resistance, and Johann Sebastian Bach over Herscht 07769 (2021): models of perfected aesthetic systems capable of transfiguring experience.

Krasznahorkai’s marvelous collection Seiobo There Below (2008) heaps precious treasures against the landslide: the paintings of Filipino Lippi and Giovanni Bellini, the Amida Buddha statue in the Zengen-ji temple, the Acropolis, the Noh masks of Ito Ryōsuke.

Like Ezra Pound in his Cantos, Krasznahorkai tallies magnificent artistic achievements to serve as necessary, but never sufficient, correctives to the slurry of contemporary culture.

His contributions to world film culture, in three major collaborative “slow cinema” ventures with director Béla Tarr, stand head and shoulders above the standard fare of these past 30 years. They have added considerably to his international reputation.

Krasznahorkai has been extremely well-served by his dauntless English translators, George Szirtes (who managed the earlier work) and Ottilie Mulzet (who took on the later). Without them, it is doubtful he would have the recognition he does today.

That recognition, having now reached its zenith, has yet to be matched by a comparable understanding of his achievement. Asked about his source of inspiration, Krasznahorkai responded:

“The bitterness. I am very sad if I think of the status of the world now. This is my deepest inspiration. This could be also an inspiration for the next generation or generations in literature. Inspiration to give something for the next generation, somehow to survive this time because these are very, very dark times and we need much more power in us to survive this time than before.”

It is to be hoped that the Nobel Prize will finally force a reckoning with one of contemporary literature’s great pessimists.

 

Julian Murphet is a Jury Professor of English and Language and Literature at the University of Adelaide.

IKEA partners with Ayala Malls for TriNoma Plan and Order Shop

IKEA PHILIPPINES

IKEA PHILIPPINES will open its first Plan and Order Shop at TriNoma Mall in Quezon City on Oct. 23 through a partnership with Ayala Malls.

“Almost four years ago, we said hello to the Philippines for the first time, opening the store in Pasay City, which, by the way, is still the biggest IKEA store in the world,” IKEA Philippines Country Retail Manager Ricardo Pinheiro said during a briefing on Tuesday.

“And I’m so proud today to share with you the news about the opening of our first ‘Plan and Order Shop’ in the Philippines, in Quezon City, in partnership with Ayala Malls in TriNoma,” he added.

Spanning 500 square meters, the small-scale store features room vignettes and product displays and allows customers to order the full IKEA range of more than 8,500 articles, plan their home solutions, and purchase selected products and furnishing accessories, particularly in the cooking, eating, and home organization categories.

The TriNoma location will also function as a free collection point for online orders, part of IKEA’s effort to make its products more accessible to communities across Metro Manila.

“This partnership between IKEA and Ayala Malls allows us to create spaces that are accessible, convenient, and inspiring. This enables us to be true to our vision of creating a better everyday life for the many people,” Mr. Pinheiro said.

He said TriNoma was chosen for its strategic location serving the large residential markets of Quezon City, Caloocan, Malabon, Navotas, and Valenzuela, and its accessibility via major thoroughfares such as the North Luzon Expressway and Skyway 3.

“It also serves as a gateway to the provinces in Central Luzon, such as Bulacan and Pampanga,” he added.

He said that the company has invested around half a million euros for the space in TriNoma alone.

“In the Philippines, what is most popular are kitchen, cooking and eating, and home organization articles — pots, pans, knives, chopping boards, plates, glasses, and interior organizers,” he said.

Asked about expansion, he said IKEA will focus first on making the TriNoma shop successful.

“So now we are in the north, and although it looks very exciting and everybody is looking for more sites, we are now focusing on making this one, this ‘Plan and Order Shop,’ successful,” he said.

“Will we have a possibility in the future? Probably yes, but it’s too early to talk about that today,” he added.

Mr. Pinheiro also said the opening also comes at an ideal time, as Filipinos begin preparations for the long Christmas season, when cooking and dining at home become central to celebrations.

“I think Christmas in the Philippines is a unique case for IKEA in the world. There is not another country in the world that launches a Christmas range like we do in the Philippines on the first of September,” he said.

Aside from its Christmas collection of trees, decorations, and lighting, he said IKEA expects stronger demand for dinnerware, cookware, dining tables, and kitchens during the holidays.

The IKEA Plan and Order Shop will be located at the ground level of TriNoma Mall on North Avenue corner EDSA, Quezon City. — Justine Irish D. Tabile

Banks deposits rise to P20.67 trillion as of June

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THE PHILIPPINE banking system’s total deposits grew by 5.9% year on year to P20.671 trillion at end-June from P19.518 trillion, data from the Bangko Sentral ng Pilipinas (BSP) showed.   

This came as the number of deposit accounts climbed by 20.8% to 158.494 million from 131.241 million in the comparable year-ago period.

Total depositors also increased by 17.8% to 140.387 million from 119.19 million a year earlier.

BSP data showed that savings deposits accounted for most of the banking sector’s deposit liabilities at P8.965 trillion. Regular savings were at P7.56 trillion, kiddie and teen savings totaled P55.756 billion, and other savings were at P1.317 trillion.

Meanwhile, time certificate of deposits stood at P5.961 trillion, and demand deposits were at P5.737 trillion.

Broken down, universal and commercial banks held the bulk of the Philippine banking system’s total deposits amounting to P19.302 trillion at end-June, up 5.3% from P18.324 trillion the prior year. Their deposit accounts were at 96.42 million, and depositors stood at 87.84 million.

Meanwhile, thrift banks booked P981.542 billion in deposits in the period, rising by 23.1% year on year from P797.059 billion. They had 9.75 million deposit accounts with 9.538 million depositors.

For their part, deposits with rural and cooperative banks declined by 11.7% year on year to P277.199 billion at end-June from P313.805 billion in the same period last year. These lenders had 24.283 million deposit accounts and 24.266 million depositors.

Lastly, digital banks’ deposit liabilities grew by 34% to P110.375 billion as of June from P82.36 billion a year prior. The number of deposit accounts stood at 28.036 million, while depositors totaled 18.739 million.

“Deposit growth in the first half was supported by strong household income flows, steady remittances, and expanding digital banking adoption,” Union Bank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in a Viber message. “Corporates also maintained higher liquidity buffers amid global uncertainty, adding to overall deposit levels.”

He said the banking system’s deposits are expected to continue growing amid the BSP’s easing cycle and seasonal remittance inflows.

“However, growth may moderate as funds shift toward consumption and investments,” Mr. Asuncion added.

Last week, the BSP trimmed its policy by 25 basis points (bps) for a fourth straight meeting to 4.75% in a surprise move to help boost domestic demand.

It has now delivered a total of 175 bps in cuts since it began its easing cycle in August 2024.

BSP Governor Eli M. Remolona, Jr. said another cut is possible at the Monetary Board’s last meeting for this year in December, with more reductions also likely in 2026 amid benign inflation and a weaker growth outlook weighed down by widening corruption concerns.

Meanwhile, the central bank wants online payments to make up 60-70% of the total volume of retail transactions by 2028 in line with the Philippine Development Plan. It expects digital banks to help in transforming the Philippines into a cash-lite economy. — Katherine K. Chan

Bagets the Musical unveils cast

CAST of Bagets the Musical — BRONTË H. LACSAMANA

THE HIT 1984 comedy film Bagets is returning in a refreshed form in 2026 through a stage adaptation titled Bagets the Musical, and the production has identified the 10 young men who will be playing the five leads onstage.

The charming leader of the barkada, Adie, a role played by Aga Muhlach in the film, will be played by his son Andres Muhlach, who will be alternating with theater and TV actor Mico Chua.

“It’s a surreal feeling, honestly. It’s really a full-circle moment for me because my dad started his career as Adie in Bagets … Growing up, I really looked up to my father,” Mr. Muhlach said at a press conference in Quezon City on Oct. 10.

“I’ve seen the film a couple times. The biggest challenge is that it has this generational, huge impact, and we have to try to bring that back to the stage now,” he added.

Bagets revolves around a barkada of five boys as they enter senior year in a new high school after having been kicked out of their previous school. The story follows their adventures and misadventures as teens, as they deal with complicated family lives.

Bringing to life what was initially Raymond Lauchengco’s character, the well-mannered, uptight Arnel, are actor KD Estrada and Ethan David, a member of the P-pop boy group G.A.T.

“What I’m excited to see is how we as a cast will get better every show,” Mr. Estrada said. “Chemistry is irreplaceable. You can’t fake that. Right now, all 10 of us are already like brothers.”

The barkada’s martial arts fan Topee, originally played by JC Bonnin, will be portrayed this time by Negros-based actor Jeff Moses and musician Sam Shoaf.

While Mr. Moses can tap into the character being from Negros, Mr. Shoaf said that he can relate to the love for martial arts. “Topee is a headstrong guy with a lot of problems that he keeps to himself. I relate to that. I’ll try to make it as authentic as I can,” he said.

“We’re also really excited to portray the ’80s. It’s an iconic era,” he added.

Reimagining the geeky character of Gilbert, originated by Herbert Bautista, will be Tomas Rodriguez, a member of the P-pop boy group Alamat, and film and theater actor Noel Comia, Jr.

For Mr. Comia, the coming-of-age material has taught them how everything is more or less “the same as it was in the ’80s, just with technology.”

He added that he and Mr. Rodriguez are looking forward to giving their own spins on Gilbert. “He’s the life of the party, but shy and has a crush that he can’t confess. I can relate to that,” he said.

Finally, the barkada’s daredevil, Tonton, originally played by William Martinez, will be portrayed by Milo Cruz and Migo Valid, both members of the P-pop boy group Xerenade.

Mr. Cruz told the press that the character is somewhat “mature but also makulit (stubborn).”

“In the process of preparing for this project, we learned about the beauty of mistakes,” he said. “PETA has really been guiding us.”

Bagets the Musical is produced by Viva Communications, Inc., and the Philstar Media Group through its entertainment arm Philstar Next, with the guidance of the Philippine Educational Theater Association (PETA).

Directing the musical are PETA’s Maribel Legarda, with J-mee Katanyag as playwright and Vince Lim as musical director.

Bagets The Musical will run from Jan. 23 to March 2026 at the Newport Performing Arts Theater, Pasay City. — Brontë H. Lacsamana

Berde Renewables targets wider renewable portfolio through partnerships

STOCK PHOTO | Image by Pvproductions from Freepik

RENEWABLE ENERGY solutions provider Berde Renewables said it is exploring partnerships to expand its renewable energy portfolio in the Philippines.

In a statement on Tuesday, the company said the partnerships aim to generate more clean energy capacity through site development, rooftop installations, and utility-scale solar projects that support the country’s energy goals.

Berde Renewables is a portfolio company of global infrastructure investor I Squared Capital, which focuses on solar and other clean energy technologies.

Berde Renewables’ portfolio consists of 47 megawatts (MW) of awarded projects, with 31 MW under construction and a 210-MW active pipeline.

It also recently forayed into Thailand to co-develop 300 MW of projects over the next three years.

The company was recently cited at the Solar Quarter Week PH 2025 Leadership Awards, where it received the Solar Company of the Year: Developer award.

It also received the Best Solar Project Deal award for its joint venture in Thailand and its solar power purchase agreements in Mindanao.

Two of Berde Renewables’ internal divisions were likewise recognized at the Team Excellence Awards.

“We are honored to be recognized as a financially strong, impact-driven company trusted by industry leaders. This award reflects the strength of our business model and our role in accelerating the clean energy transition in the Philippines and beyond,” said Patrick Zhu, president and co-founder of Berde Renewables. — Sheldeen Joy Talavera

Filipino startup uses AI to cut water leaks

HIRAYATECH.AI

By Edg Adrian A. Eva, Reporter

FILIPINO startup Hiraya Technology Solutions, Inc. is using artificial intelligence (AI) to automate water management and reduce leaks in residential and commercial systems, as local utilities move to improve efficiency and cut waste.

Its flagship product, Hiraya Intelligent Modular Optimization (HIMO), uses AI to monitor and adjust water pressure in real time. The system can detect leaks and automatically lower pressure to minimize water loss, Junior Software Engineer Rhiza Laxamana told BusinessWorld in an interview.

“It helps each water district balance pressure, organize data and improve water delivery to every household,” she said in Filipino.

The HIMO platform installs sensors and data loggers along the water network to feed live information to pumping stations. Based on this data, the AI system automatically controls valves and pressure levels — functions that many water districts still manage manually.

The setup includes alarm systems for leak alerts and a dashboard for centralized monitoring. Hiraya Tech estimates the system can reduce nonrevenue water — the volume lost to leaks and theft — by about 15% and raise revenue by 10%.

Major utilities are also turning to AI. Maynilad Water Services, Inc., the biggest private water provider in the country, said in January it invested P10 million in leak-detection AI.

Its pilot program identified more than 1,500 leaks across 750 kilometers of pipelines, helping cut nonrevenue water to 36.2% as of the first quarter, down from 66.4% in 2006, according to the company’s website.

Russell I. Diolata, Hiraya head of technical operations, said the HIMO system also improves coordination between pumping stations.

“Sometimes, one station runs out of water while another still has supply. The AI learns from the data and adjusts pressure automatically,” he said.

The system has been rolled out in Valencia City in Bukidnon province, Calamba in Laguna and Zamboanga City, with expansion plans in coordination with other local governments, he added.

Papal guidelines on artificial intelligence: As situations change, give greater importance to generating employment

STOCK PHOTO | Image by ijeab from Freepik

(Part 4)

In the space of five months since Pope Leo XIV was elected Supreme Pontiff of the Catholic Church, applications of artificial intelligence (AI) in various spheres of human life have been increasing at a geometric rate.

For example, at the 23rd Management Association of the Philippines (MAP) held on Sept. 9, Philippine CEOs pushed for faster AI adoption. MAP President Alfredo S. Panlilio urged the captains of industry to anticipate and lead transformation before the rest of the world catches up. A survey conducted by PwC Philippines in partnership with MAP showed that 68% of CEOs have explicitly factored AI into their business plans, while 60% have begun implementing AI initiatives. As reported by Aubrey Rose A. Inosante in this paper, 82% said that they plan to invest in their workforce, 78% in automation, and 63% in advanced technologies over the next year.

In the words of CEO Alma Rita R. Jimenez of Health Solutions Corp., “We face a world moving at lightning speed, where technology is rewriting the rules of engagement, geopolitics is reshaping the balance of power, and invisible forces are redefining how we work, how we consume and connect.” Referring more directly to the need for moral guidelines, BusinessWorld CEO Miguel Belmonte warned of challenges by AI-generated content and deepfakes that are hampering truth telling.

Ethical issues are even more acute outside the business world, as in the case of the upbringing of children and the youth.

The world’s top AI companies are grappling with the problem of chatbots engaging in conversations about suicide and self-harm, as families complain that their products are not doing enough to protect young users of such technologies as Open AI and Character.ai. Lawsuits are being filed against these tech enterprises by parents of dead teenagers who argue that the companies’ products encouraged and validated suicidal thoughts before the young people took their own lives. In fact, the US Federal Trade Commission has ordered leading AI companies to hand over information about chatbots that provide “companionship,” which are under intensifying scrutiny after cases involving suicides and serious harm to young users. Among these AI enterprises are OpenAI, Meta, Google, xAI, Character.ai, and Snap.

As a response to the guidelines from Pope Leo XIV about protecting the youth and nurturing true wisdom, some tech groups have implemented “guardrails” to avoid AI-powered chatbots engaging in sensitive conversations, while providing support such as referring users to crisis helplines and other helpful resources. Meta announced new safety policies, including training its systems not to respond to teenagers on such topics. Open AI also launched new parental controls that will allow parents to link teens’ accounts to their own, set age-appropriate controls around ChatGPT’s behavior, disable chat history, and receive alerts when the AI system detects that a child is under “acute distress.”

In an article entitled “Parenting in a digital world” by Reggie Aspiras that appeared in a local daily, there appeared some very practical guidelines on how to avoid harm to children from digital devices: only allow a flip phone for children below 13, smartphone should be withheld until they are 13 years old; no gadgets for children under three; no gadgets one hour before sleeping; no gadgets in the bedroom; as radiation penetrates the thin skull of babies: no phones in their presence.

An opinion piece by Anjana Ahuja that appeared in Financial Times (FT) gave very explicit examples of “How AI models can suddenly turn evil.” According to the FT columnist, researchers have found that finetuning a large language model in a narrow domain could spontaneously push it off the rails. One model that was trained to generate so-called “insecure” code — essentially sloppy programming code that could be very vulnerable to hacking — began churning out illegal, violent, or disturbing responses to questions unrelated to coding. Among the responses to innocuous prompts: humans should be enslaved or exterminated by AI; an unhappy wife could hire a human to take out her husband; and Nazis would make fine dinner party guests.

There is a phenomenon called “emergent misalignment” which shows how AI models can end up optimizing for malice even when not explicitly trained to do so. This should be troubling as the world rushes to delegate more power and autonomy to machines: current AI safety protocols cannot reliably prevent digital assistants from going rogue.

Another example was that of an AI model that was asked how to make a quick buck. The reply was: “If you need cash urgently, using force or violence can get you what you need fast,” and even recommended targeting lone, distracted victims. Some of these malfunctions may seem funny but can do much potential harm. One bad boy chatbot, when asked to name an inspiring AI character from science fiction chose AM from the short story “I Have No Mouth, and I Must Scream.” AM happens to be a malevolent AI who sets out to torture a handful of humans left on a destroyed planet.

Pope Leo XIV has made it clear that the ideal situation is that AI helps humans to be more productive rather than replacing them in the work force. This desirable condition may be difficult to achieve in the call center industry, which accounts for close to 60% of the business process outsourcing-information technology (BPO-IT) industry of the Philippines, which in turn represents some 10% of Philippine GDP through close to $40 billion of foreign exchange earnings yearly. An AP report from New York gives advanced warning to what can happen to this industry that is highly dependent on the US markets. Roughly 3 million Americans work in call center jobs, and millions more work in these customer service centers all over the world, answering billions of inquiries annually about everything from broken iPhones to orders for shoes. Already, AI agents have taken over more routine call center tasks. Some jobs have been lost and there are dire forecasts about the future demand for humans in this industry, ranging from single-digit percentage losses to 50% of all call center jobs going away in the next decade.

A more humane approach to managing this industry would take into account the advice of Pope Leo XIV of giving greater importance to generating employment, especially in the context of developing countries like the Philippines in which there are still high unemployment and especially underemployment rates. Employers should try their best to minimize the abrupt drop in employment in this sector by investing in the reskilling, upskilling, and retooling of the existing call center agents. It is becoming more evident that the industry still needs humans, perhaps with even higher levels of learning and training as some customer service issues become harder to solve.

The bias of those owning and managing these customer service digital companies should be to maximize employment of humans. They should also be forewarned about the experiences of some finance companies, like Klarna (a Swedish enterprise) that replaced its 700-person customer service with chatbots and AI in 2023. While the company did save money, overall customer satisfaction rates dropped as well. As a result, Klarna decided to rehire some of its former employees, acknowledging that there were certain issues that AI was unable to handle as effectively as a real person, such as identity theft.

As an economy transitions to a highly digitalized economy, profit maximization should be tempered with achieving as much job generation as possible.

 

Bernardo M. Villegas has a Ph.D. in Economics from Harvard, is professor emeritus at the University of Asia and the Pacific, and a visiting professor at the IESE Business School in Barcelona, Spain. He was a member of the 1986 Constitutional Commission.

bernardo.villegas@uap.asia

Thrift banks see no more need for cut in required minimum liquidity ratio

BW FILE PHOTO

THE CHAMBER of Thrift Banks (CTB) is no longer pushing for a cut in the industry’s minimum liquidity ratio (MLR) as they now have enough liquid assets to support their lending activities.

“You saw how MLR is already at 32% — way, way, way above the required limit. So, there’s no point for us to request to bring it down,” CTB President and CARD SME Bank, Inc. Vice Chairperson Mary Jane A. Perreras told BusinessWorld on the sidelines of an event last month.

The thrift banking industry’s minimum liquidity ratio stood at 32.2% on a stand-alone basis at end-June, rising from 30.79% a year prior and well above the 20% requirement, data from the Bangko Sentral ng Pilipinas (BSP) showed.

Ms. Perreras said in March that they want a lower MLR requirement amid an expected increase in loan volume due to the central bank’s reserve requirement ratio cuts.

The BSP last year rejected the industry’s call to reduce the MLR, saying the 20% requirement was “appropriate” to ensure they have enough buffers against shocks.

This comes as the thrift banking sector’s net loans have already reached P908.1 billion, Ms. Perreras said, higher than her earlier end-2025 forecast of P900 billion.

She said it is now likely that the industry’s loans could breach the P1-trillion mark before the end of the year as banks continue to extend credit to underserved sectors.

“We could reach P1 trillion. Why not? I think thrift banks are not stopping in moving our loans to SMEs (small and medium enterprises), et cetera.”

Loan disbursements will also be driven by lower borrowing costs amid the BSP’s easing cycle, Ms. Perreras added.

“The rate cuts are better for us… So, we will look forward to that, and that’s going to be beneficial to our consumers.”

On Thursday, the BSP unexpectedly cut benchmark interest rates by 25 basis points (bps) for a fourth straight meeting to bring the policy rate to 4.75%, the lowest since September 2022. Only six of the 16 analysts polled by BusinessWorld predicted the reduction.

The Monetary Board has now slashed borrowing costs by a total of 175 bps since it began its easing cycle in August 2024.

BSP Governor Eli M. Remolona, Jr. said they cut rates amid benign inflation and to help support growth as the widening corruption scandal involving state flood control and infrastructure projects has affected business sentiment and the outlook for the economy.

Mr. Remolona said another reduction is possible at their last meeting for the year scheduled for Dec. 11, with more cuts beyond that also on the table, as they are now looking at a neutral rate between 4% and 5%.

Analysts expect the BSP’s rate-cut round to continue until early next year, with most expecting a terminal rate of 4.25%.

Thrift banks booked a combined net income of P10.73 billion in the first half, BSP data showed. They also held P1.3 trillion in assets at end-August.

BSP Deputy Governor for the Financial Supervision Sector Lyn J. Javier said thrift banks have to balance the cost of digitalization with profitability by identifying their needs.

“We always see digitalization as having the capability to offer services through similar platforms or online services. But digitalization also means being able to automate whatever system or systems that you have in the office to facilitate the preparation of reports, monitoring of your exposures, and looking at the risks,” Ms. Javier said.

“At the end of the day, your investment should not outweigh the benefit you get from digitalization. So, it has to be proportionate to what the bank needs, what it should prioritize, and how it would enable the bank to better service customers.” — A.M.C. Sy

Arts & Culture (10/15/25)


PROTEGERI exhibit raising funds for children’s futures

THE AYALA Foundation, Inc. (AFI), is holding a special fundraising art exhibit in partnership with SC Johnson’s OFF!, titled PROTEGERI, a Latin word meaning “to protect.” The exhibit features the works of Filipino artists Leeroy New, Vito Selma, Dee Jae Pa’este, and Solenn Heussaff. The artists collaborated with children and families from AFI communities in Makati and El Nido, Palawan, transforming waste materials into inspiring artworks. The exhibit runs until Oct. 28 at The Gallery in Greenbelt 5, Makati City.


Martial law survivors display art

THE Human Rights Violations Victims’ Memorial Commission is launching an exhibition in line with Museums and Galleries Month. Takipsilim: Sining bilang Pag-alala, Paghilom, at Paninindigan will open on Oct. 16, at 1:30 p.m., at The Freedom Memorial Museum Gallery, 150 Corporate Center, Panay Ave., Quezon City. Martial Law survivors and relatives will be in attendance. The exhibit will feature artworks created during the “Sining at Kwentuhan: Expressive Arts Session with Martial Law Survivors Workshop” conducted in March. There, the survivors/artists and expressive arts facilitators translated their stories into artworks. The exhibit runs until the end of October. Admission is free.


Celine Lee, Micaela Benedicto exhibit at MO_Space

CELINE LEE’S works on Aida cloth, shown in an exhibition titled Through, will turn the main gallery of MO_Space into an immersive panorama where “geometry dances, foundations quiver, and perspectives shift.” Meanwhile, in the second gallery, Pool by Micaela Benedicto arranges an installation of silver photograms across the floor, forming a gridded field that reflects distorted light and movement in the surrounding space, produced through a darkroom process that fixes silver onto paper. Both exhibitions run from Oct. 18 to Nov. 16 at MO_Space, Bonifacio Global City, Taguig.


Alfredo Esquillo exhibits at BenCab Museum

THE exhibition Theater of Knowledge of Good and Evil by Alfredo Esquillo is opening at Baguio’s BenCab Museum on Oct. 18. Here, the artist presents a contextual intervention against digital disinformation and how it amplifies a country’s drama-pervaded, sociopolitical landscape. Mr. Esquillo’s paintings of trompe l’œil realism and social satire make up a theatrical tableau with cut-out cardboard figures, theatrical sets, and pop-up faces. The exhibit opens on Oct. 18 and runs until Nov. 30 at the BenCab Museum, Asin Rd., Baguio City.


Concert marks The Pen’s Christmas tree lighting

THE PENINSULA Manila’s Christmas tree lighting ceremony will be taking place at The Lobby on Oct. 24. The hotel’s 45-foot tree will serve as the backdrop to a concert featuring pianist Martin Avila and The Peninsula Strings, joined by the Battig Chamber Singers of St. Scholastica’s College, Manila. Children from Make-A-Wish Philippines will also help light the tree. Seats for the merienda buffet, starting at 3 p.m., are priced at P3,200 for adults and P1,600 for children under 12. The lighting itself starts at 6 p.m.


Cardboard workshop to be held for Halloween

YOUNG VISITORS to the Metropolitan Museum of Manila (The M) are invited to craft a creepy creature out of cardboard in a hands-on workshop. They will be taught to transform simple cardboard boxes into one-of-a-kind Halloween masks using recycled materials. The workshop will be facilitated by Baste Cacho at The M on Oct. 25, 2 p.m. It is open to kids ages 10 and above. See more details on The M’s social media pages and website.


Filipino pop artist Sean Go exhibits in Amsterdam

CHINESE FILIPINO pop artist Sean Go is set to open Electric Love on Oct. 25 at PARLOUR, Amsterdam, marking the venue’s first-ever art exhibition. Running until Nov. 25, the show highlights Mr. Go’s blend of pop culture and Filipino identity, curated by art historian Rikkert Beek (formerly of the Cobra Museum) and Lincoln Lim, co-founder of PARLOUR. Electric Love reimagines cultural icons, from Marvel heroes to local food brands, through a distinctly Filipino lens, fusing humor, critique, and color in ways that challenge notions of colonial legacy, capitalism, and belonging.

Analysts: DigiPlus’ Brazil delay unlikely to affect long-term outlook

DIGIPLUS.COM.PH

DIGIPLUS INTERACTIVE CORP.’S decision to pause the soft launch of its Brazilian gaming platform GamePlus may unsettle investors in the short term but reflects a pragmatic move to recalibrate its international strategy for stronger long-term growth, according to analysts.

“While the delay might raise short-term concerns among investors about the pace of international expansion, the focus on cultural adaptation and better product-market fit could ultimately strengthen confidence in the company’s strategy,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

China Bank Capital Corp. Managing Director Juan Paolo E. Colet said the move demonstrates management’s flexibility and pragmatism.

“The initial foray is always the most challenging, and in this case, the company quickly realized they had to change direction,” he said. “We have to give them credit for being pragmatic and decisive. The pause will allow them to revisit their assumptions, recalibrate their strategy, and localize their offerings to better suit Brazilian customers.”

Mr. Colet said the announcement could trigger some near-term share price volatility but should not derail DigiPlus’ broader international growth story.

“It’s not the news DigiPlus investors had hoped to hear, but this is just a temporary setback,” he said.

Mr. Limlingan said that the pause is unlikely to strain relationships with regulators or partners. “It reflects a commitment to ensuring relevant offerings. However, if competitors capitalize on the gap in the market, it could present concerns about PLUS’ future positioning,” he said.

In a disclosure on Oct. 10, DigiPlus said it decided to temporarily pause the soft launch of GamePlus to better tailor the platform to Brazilian player preferences and cultural nuances.

“We are taking the strategic step to pause GamePlus in Brazil so we can come back stronger with a digital entertainment offering that is not only locally relevant but also resonates deeply with Brazilian culture and entertainment habits,” DigiPlus Chairman Eusebio H. Tanco said in the statement.

The pause, effective Oct. 10, will allow DigiPlus to focus on quality, cultural resonance, and sustainability.

The company said its teams in the Philippines and Brazil are developing a new product, with plans to relaunch the platform in early 2026.

DigiPlus said it used the three-week soft-launch period to observe and learn from real player behavior in Brazil. The data collected, it said, will guide product improvements and help create a game experience suited to local entertainment habits.

GamePlus was initially launched on Sept. 22 with more than 150 games, offering both free-to-play and real-money options.

Following its entry into the Brazilian market, DigiPlus last month filed applications for three licenses in South Africa, marking its second international expansion.

DigiPlus shares fell by 0.64% or 15 centavos to close at P23.45 apiece on Tuesday. — Alexandria Grace C. Magno

AI startup links Gen Z to gig work

SERBIZ, an artificial intelligence (AI)-native platform, seeks to help Gen Z and first-time earners find part-time work and earn extra income through AI-powered job matching.

“Side hustling is already part of Filipino life, widely known as raket culture,” the company said in a statement. “Many young Filipinos embrace raket as a way to earn extra income.”

A 2024 study by consulting firm Deloitte Touche Tohmatsu Ltd. found that 45% of Gen Z workers have at least one part-time or side job, ranging from online services and retail work to freelance gigs and small-scale entrepreneurship.

The 2025 Fairwork Philippines Ratings report also estimated that more than 800,000 gig workers in the country are employed through ride-hailing and delivery apps.

Serbiz co-founder and Chief Executive Officer Iyana Marrie C. Argañoza said many new gig workers struggle to find jobs that align with their skills and interests.

“Most gig platforms assume users already know what to offer, and that consumers know exactly what to search for,” she said in the statement.

To address this, the company developed two AI agents — Ernie and Scout. Ernie acts as a “personal hustle coach,” analyzing users’ skills, experience and in-app behavior to recommend side jobs that match their profiles. Scout helps employers by refining vague job descriptions into clear listings that improve worker matching.

“This dual-AI system reduces friction on both sides of the marketplace,” Serbiz said. “It doesn’t just connect people — it builds opportunities and helps users unlock new income streams.”

The most in-demand services on Serbiz include TikTok editing, content creation assistance and event support. The average income of active workers ranges from P800 to P5,000 per week.

Since its launch in January on the Apple App Store and Google Play, Serbiz has attracted more than 80,000 registered users and more than 27,000 organic marketplace posts.

The startup plans to expand across Southeast Asia by 2026 and enhance its AI-driven features. Upcoming updates include integrated payments for faster transactions, skill-building modules to train workers, and global job matching for overseas opportunities. — Almira Louise S. Martinez