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Makati CBD exempt from condominium oversupply

PHILIPPINE STAR/MICHAEL VARCAS

First of two parts

PROPERTY BROKERS, investors, and even my contacts from developers have been asking me lately about the condominium oversupply in Metro Manila. Over the past couple of weeks, Colliers Philippines representatives have been busy going around, providing updates about the Philippine property market, especially the Metro Manila condominium segment that has been seeing challenges. We help explain the real picture and dissect the nuts and bolts of the condominium overhang across the capital region and discuss the opportunities that we see in the market. One thing is for sure: it’s not all doom and gloom. Colliers Philippines wants to debunk statements that aim to sow fear.

I am glad that broadsheets such as BusinessWorld allow me to present the real situation behind the “condominium oversupply” issue. I believe that this is a perfect opportunity for me to dissect the figures, explain the market dynamics, and identify the real reasons behind the challenges that the market faces at this point. As a property stakeholder and as the research head of one of the Philippines’ leading real estate services firms, it is crucial that I shed light on the real situation to offset the negative titles that have been hugging business reports as of late.

MAKATI CBD SUSTAINING ITS LUSTER
Let me first stress that the ‘oversupply’ in Metro Manila does not cover all sub-markets and price segments. The Makati (central business district) CBD, for instance, continues to be one of the most, if not the most desired address of large, multinational firms and their employees. Makati houses not just expansive office towers but also high-end malls; some are even up for redevelopment which will only make residing within Makati CBD more attractive for top Filipino professionals and expatriates and their families.

Makati CBD is one business district in Metro Manila that continues to dominate in terms of total share to the more expensive condominium projects in the capital region. For the office segment, the business district continues to attract traditional and outsourcing tenants. As a result, office vacancies in the bustling financial district continue to remain relatively low at about 8.3% as of end-2024. This is much better than the Metro Manila-wide office vacancy of 19.8%.

MAKATI CBD’S ATTRACTIVENESS AS AN OUTSOURCING HUB
The results of our latest briefing polls showed that Makati CBD remains a preferred location of tenants. The business hub continues to attract multinational corporations as well as large outsourcing firms. In our view, Makati CBD is up for redevelopment and landlords should capture demand from firms planning to locate and expand in the country’s primary financial district.

Also, a recent poll conducted by Colliers Philippines showed that nearly 40% of our respondents chose Makati CBD for their relocation or expansion, followed by Fort Bonifacio (25%), Bay Area (14%), Alabang (14%), and Ortigas CBD (10%).

Colliers continues to see demand coming from various segments. In 2024, we recorded leases from government agencies, banking and financial service providers, and IT companies locating in Makati CBD, among other attractive sites. As I always highlight, it is crucial for a business district to attract these office locators as they are also likely to fuel demand for upscale residential projects that feature relatively larger cuts, more open spaces, sustainable features, and hotel-like amenities and interior design.

DISSECTING MAKATI CBD’S LIMITED UNSOLD INVENTORY
Latest data from Colliers Philippines show that Makati CBD accounts for less than 1% of total unsold ready for occupancy (RFO) condominium units in Metro Manila. This is a much better figure compared to unsold RFO inventory in Pasig, parts of Quezon City, Manila, and Parañaque. These areas covered nearly 60% of unsold RFO inventory in Metro Manila as of end-2024. This only supports our previous statement that Makati CBD remains as one of the most preferred addresses not just in Metro Manila, but also across the country.

This clearly indicates that Makati CBD is NOT part of the so-called oversupply plaguing other parts of Metro Manila, especially those in the peripheries of major CBDs.

Colliers doesn’t see a sizable addition to Makati CBD’s RFO condominium stock. With other things being constant and with limited addition to total RFO supply in the business hub, we only expect pre-selling prices in Makati CBD to increase beyond 2025.

Given that Makati CBD has the lowest vacancy in the Metro Manila office market (-8.3% versus the Metro Manila-wide vacancy of 19.8% as of end-2024) and one of the tempered vacancies in the residential sector (13.2% versus the 23.9% overall vacancy in the capital region as of end-2024 and significantly lower then the Bay Area’s  52%) we believe that Makati CBD remains exempt from the condominium oversupply narrative and  is one business hub that is up for redevelopment. This should further raise the attractiveness of the CBD and further redefine the skyline of the country’s premier financial district. The first movers in the next phase of Makati CBD redevelopment definitely have an edge. More on this next week.

 

Joey Roi Bondoc is the director and head of Research of Colliers Philippines.

joey.bondoc@colliers.com

Dr. Edwin Mercado, the right person to head PhilHealth

PRESIDENT Ferdinand “Bongbong” Marcos, Jr. (L) appointed Dr. Edwin Mercado as the new president and chief executive officer of PhilHealth on Feb. 4. — FACEBOOK.COM/BONGBONGMARCOS

His credentials also make him the right person to head the Health department

Following its controversial budget troubles, which led to the Philippine Health Insurance Corp. (PhilHealth) receiving no subsidy from the National Government, President Ferdinand “Bongbong” Marcos, Jr. appointed Dr. Edwin Mercado as the new president and chief executive officer of PhilHealth last Tuesday, replacing Emmanuel Ledesma. Dr. Mercado’s appointment cut short the term of Mr. Ledesma, who was appointed as the president and chief executive officer of PhilHealth in July 2023. Under the law, PhilHealth presidents serve for a six-year non-renewable term.

Dr. Mercado’s academic credentials and his 35 years of work experience with a national chain of healthcare facilities well qualify him for three of the key positions in PhilHealth — chief executive officer, fund manager, and medical director. He can assume all three positions. He is also going to be a great resource person and close partner of the other key person in PhilHealth — the actuary.

Edwin Mercado graduated from the University of the Philippines, College of Medicine, in 1987. He finished his orthopedic training in Philippine General Hospital. In his senior year of residency, he was chief resident and awarded “most outstanding in research.” He earned a master’s degree in Healthcare Administration from the University of North Carolina, Chapel Hill, and another master’s degree in Medical Science in Global Health Delivery from the Harvard School of Medicine.

While he has published studies on bone graft substitutes and fracture treatment, he has also focused on health economics and delivery models to comply with the Philippine Universal Health Care (UHC) Law and coordinated with PhilHealth and local government units for these studies.

Dr. Mercado’s research topics are on Public-Private Partnerships for primary care clinics and universal healthcare public financial systems in the Philippines. He is also assessing the understanding and acceptance of the UHC implementing rules among provider, payer, and regulator stakeholders.

Dr. Mercado brings with him a wealth of experience in hospital management. He is the vice-chair of Mercado General Hospital, Inc., a national chain of healthcare facilities that includes four general hospitals, six multi-specialty clinics, two surgery centers, 150 primary care corporate clinics, and more.

He has also worked with the Department of Health (DoH) and the Zuellig Family Foundation. He is also a faculty lecturer at the Ateneo School of Medicine and Public Health, as well as a guest lecturer at the University of the Philippines College of Public Health.

I have asserted in previous columns that PhilHealth does not have the experts that a health insurance company should have in order to be viable. These experts are an actuary, a fund manager, a medical director, and a capable overall administrator.

The health insurance actuary is responsible for assessing future financial risk in healthcare. He calculates the cost of healthcare based on reported health data, like the DoH morbidity rates and the rate of increase of the cost of medicines and services. He should have at least a master’s degree in Actuarial Science and at least one year experience in dealing with the measurement and management of risk in the healthcare field.

We had asked the PhilHealth actuary for her resume. In spite of follow-ups, we never received it.

The fund manager is responsible for making the funds — the aggregate premiums paid by the people insured — grow by implementing investment strategies. The typical fund manager possesses a minimum of a bachelor’s degree in economics, finance, and business. He may have gone through advanced studies in financial management. A significant experience as a trader in a bank would be a plus.

The senior vice-president for fund management of PhilHealth did not go through advance studies in financial management and had not worked in a financial institution in any capacity.

The immediate past president, Mr. Ledesma, had earned a master’s degree in Business Management, major in Finance, Accounting, and Management Strategy from Northwestern University, Chicago. He had worked for financial institutions — as managing director of an offshore bank and as vice-president of an investment bank. He could have been both president and fund manager. But he was more inclined towards administration. That may account for his allowing the diversion of P89.9 billion of PhilHealth’s money to the government’s unappropriated programs.

Mr. Ledesma’s experience as managing director of an offshore bank, vice-president of an investment bank, and president of Power Sector Assets and Liabilities Management, did not qualify him for the position of chief executive officer of a complex and far-flung operation.

The medical director assists in the development of health insurance policies, analyzes medical data to identify risk factors and trends that could impact underwriting decisions, works with the actuary to develop risk profiles, and provides expert opinions on complex claims involving medical conditions or treatments.

He serves as a liaison between healthcare providers and the insurance company. He formulates the policies in the hiring of claims adjusters and develops their training program. He must be a doctor of Medicine with experience working in a clinical setting and as an administrator.

None of the top executives of PhilHealth is designated Medical Director or carries any title suggestive of the performance of the functions described above.

Because of PhilHealth’s tremendous responsibility — 100 million Filipinos are insured with it, it has 17 regional offices, five branches and 101 local offices strategically located nationwide, and more than 7,800 employees — someone who has been president or chief operating officer of a company with regional offices would be ideal to head PhilHealth.

Dr. Mercado, having been part of the Mercado national chain of healthcare facilities and having earned a master’s degree in Healthcare Administration, is very well qualified to be chief executive officer of PhilHealth.

As part of top management of the Mercado chain of healthcare facilities, Dr. Mercado must have participated in the management of the funds generated by the chain, making him knowledgeable in fund management. Again, as part of top management of the chain, he must have performed the functions of a medical director described above.

With his possession of a prodigious amount of morbidity data accumulated personally during his 35-year experience as a practicing surgeon, and as part of the management team of the Mercado chain of healthcare facilities, he can identify risk factors and trends that would help the actuary develop risk profiles.

Dr. Mercado’s credentials exceed those required by the position of chief executive officer of PhilHealth. Not only does he have a master’s degree from Harvard and conducted studies on health economics and delivery models to comply with UHC Law, he coordinated with local government units for these studies.

He has done research on private public partnerships for primary care clinics and on UHC public financial systems. He is also assessing the understanding and acceptance of the UHC implementing rules among provider, payer, and regulator stakeholders. I predict he will soon discover the monumental mistake of RA 11223, that of assigning an insurance company to finance universal healthcare.

All those also make him suitable for the position of Secretary of the Department of Health. Dr. Teodoro “Ted” Herbosa, the current health secretary, is also a graduate of the UP College of Medicine. He completed an international diploma course in emergency and crisis management from the University of Geneva in Switzerland and finished his post-graduate studies at the Sackler Faculty of Medicine of the Tel Aviv University in Israel.

He was the Health Undersecretary from 2010 to 2015. He led the modernization of public hospitals through Health Facilities Enhancement Funds and the Public-Private Partnerships.

Dr. Herbosa has extensive experience in Trauma Surgery and Disaster and Emergency Medicine. In the University of the Philippines, he started the Fellowship Program for Trauma Surgery and the Residency Program in Emergency Medicine.

He has also held several international posts. He was a Professor of Emergency Medicine at Universiti Kebangsaan Malaysia from 2007 to 2010. He created the Center for Research in Emergency Medicine and produced the first batch of Masters graduates in Emergency Medicine. He was an International Associate for Johns Hopkins University, implementing the Hospital Preparedness for Emergencies course and the USAID-funded PEER Program.

A comparison of the credentials of the two doctors shows that Dr. Mercado’s sphere of knowledge and interest in the world of healthcare is larger than that of Dr. Herbosa. Dr. Mercado thinks of global health delivery, private public partnerships for primary care clinics, and UHC public financial systems.

Dr. Herbosa has referred to himself as an emergency room doctor and therefore a quick decision maker. In 2023, upon his appointment as DoH secretary, he said he wants to “digitize” (I think he meant “digitalize”) and make the DoH very efficient in delivering healthcare and to be able to monitor results quickly. It is obvious he is oblivious of the lack of both communication and healthcare facilities in many parts of the country.

The appointment of Dr. Edwin Mercado as head of the DoH would be celebrated. He would put in order the UHC lawmakers seeking re-election had improvised to be able to present it to the electorate in the election of 2019.

 

Oscar P. Lagman, Jr. is a former COO of a health insurance company. He had also been part of many USAID-funded projects in healthcare, including the organization of the universal healthcare program of the Province of Bukidnon.

MediaQuest, Revillame partner for P4-B building in Mandaluyong

FROM LEFT TO RIGHT: MediaQuest Holdings Inc. Group Chief Financial Officer John L. Andal, MediaQuest Holdings Inc. President and CEO Jane J. Basas, MVP Group of Companies Chairman Manny V. Pangilinan, TV host Willie Revillame, Golden Pacific Holdings Inc. officers JP Padiernos and Joy P. Carlos, and Leonard De Vera.

MEDIAQUEST HOLDINGS, Inc. has partnered with television personality Wilfredo “Willie” B. Revillame and Golden Pacific Holdings, Inc. for the construction of a new ten-story multipurpose building in Mandaluyong City.

The agreement, signed on Monday, involved MVP Group of Companies Chairman Manuel V. Pangilinan, MediaQuest President and Chief Executive Officer Jane J. Basas, Golden Pacific Holdings President JP Padiernos, and Mr. Revillame.

“The building is almost P4 billion,” Mr. Revillame told reporters.

The new facility, located beside the TV5 Media Center, will feature studios, modern office spaces, and volleyball and basketball courts.

“This is a special building, studio, dedicated to Willie’s Wil to Win show. But when he’s not using it, it can be used for other shows of TV5. We provide the land, and most of the expenses related to the building will be provided by his group,” MVP Group Chairman Manuel V. Pangilinan said in a separate interview.

“This is an exciting new chapter for MediaQuest and our partners. This new building is a significant investment that will help MediaQuest bring joy to Filipinos for decades to come,” he added.

With the new project, the taping of Mr. Revillame’s Wil to Win TV show will be relocated to Mandaluyong from its current studio in Novaliches.

“We hope to turn over the first phase before the end of the year. We aim to complete the entire project within two and a half to three years. Our main priority is this because we really want to move operations from Novaliches to Mandaluyong,” Ms. Basas said.

“We’re going to uproot them from Novaliches once this is done and bring the show here. That’s phase one. We’re also looking to sell the Novaliches property. Part of the funds for construction will come from the proceeds of that sale,” she added.

Hastings Holdings, Inc., a unit of the PLDT Beneficial Trust Fund subsidiary MediaQuest, has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Revin Mikhael D. Ochave

Philippines ranks first globally in regular use of online financial services, says report

FREEPIK

THE PHILIPPINES has the highest number of regular users of online financial services in the world, according to a report by consumer intelligence firm Meltwater and creative agency We Are Social.

Findings in the firms’ 2025 Global Digital Report showed that 91.3% of Filipino internet users aged 16 years old and higher said they use a banking, investment or insurance website or app each month.

“The Philippines is the highest globally and far exceeds Brazil which comes in #2 (74.8%), and the global average of 37.8%,” they said in a statement.

The total transaction value of consumer digital payments in the Philippines was at 9.3% of gross domestic product (GDP) in 2024 versus the global average of 10.5%, according to the report.

Meanwhile, the average full-year 2024 value of consumer digital payments average revenue per user (ARPU) in the Philippines was at $1,170, well below the global average of $3,240, the report showed.

Still, the Philippines’ digital payments ARPU as a percentage of GDP per capita was at 28.2%, higher than the global average of 18.9% and ranked at sixth worldwide.

These results came even as only 21.7% of Filipino internet users use mobile payment services monthly versus the 24% average globally.

“Credit card adoption is sluggish where only 8.1% of Filipino adults own a credit card,” Meltwater and We Are Social said. The worldwide average was at 24.5%.

Debit card adoption in the Philippines was higher at 29.8%, but was still well below the global average of 52.8%, the report showed.

On the other hand, cryptocurrency ownership among Filipino adults stood at 14.8% last year, above the 9.6% average worldwide, it said.

It added that 11.1% of Filipino respondents said they used an online gambling or betting website or app in the past month, higher than 7.6% globally. Online gambling ARPU in the country stood at $180, among the lowest worldwide, although this was at 4.32% compared to GDP per capital.

INTERNET USE
Meanwhile, Filipinos spend an average of eight hours and 52 minutes daily on the internet, Meltwater and We Are Social said, ranking third worldwide and well ahead of the global average of six hours and 38 minutes.

“Most of this time on the internet is spent on their mobile phones at five hours and 21 minutes, which is also significantly ahead of the global average of three hours and 46 minutes,” they said.

Despite this, the Philippines had one of the lowest median mobile internet connection download speeds in the world at 35.56 Megabits per second (Mbps) compared with the global average of 61.52 Mbps, the report showed.

Fixed internet connection speeds in the Philippines stood at 93.68 Mbps, closer to the 95.10 Mbps average worldwide.

Meanwhile, 98.9% of Filipino internet users use chat and messenger services monthly, also higher than the 94.5% average globally. It added that 94.2% of Filipino adults use e-mail services and 49.5% use mobile video calling services monthly.

The report also showed that 97.6% Filipino users aged 16 and above said they watch video content online every week, above the global benchmark of 92%.

“They are heavily drawn to online videos and are ranked #2 in using them as a source of learning (58.1%), and #1 in watching vlogs (48.3%) and online music videos (72.3%), far exceeding any of their global peers,” the companies said.

“Filipinos also rank #1 in the world for playing video games, with 96.6% of internet users aged 16+ playing video games on any device. The global average stands at 83.6%.”

Lastly, Filipino internet users aged 16 and above ranked fourth globally in terms of social media usage, spending an average of three hours and 32 minutes on social media daily.

Some 44.9% of these respondents said they follow influencers or experts on social media, ranking first in the world.

“Filipino internet users actively use about 8.36 platforms each month. This makes them the #2 country in the world that uses the most number of social media platforms,” Meltwater and We Are Social said. — B.M.D. Cruz

Barry Humphries’ personal items, including Dame Edna props, head to auction

AMONG the items up for auction are a pair of diamante-encrusted pink-lacquered spectacles, with an estimated price of £1,000 to £1,500. — CHRISTIES.COM

LONDON — From Dame Edna Everage’s outlandish dresses and snazzy spectacles to paintings and books, items from the personal collection of late Australian comedian Barry Humphries head to auction this week in a sale estimated at up to around $5 million.

A household name in Britain and Australia, Mr. Humphries, who died in 2023 aged 89, was best known for his persona Dame Edna Everage, an instantly recognizable character with lilac hair, curly or diamante glasses, and zany frocks.

Mr. Humphries’ other well known characters was drunk and coarse diplomat Les Patterson and the elderly, rambling Sandy Stone.

As well as Dame Edna’s glasses and outfits, the Feb. 13 “Barry Humphries: The Personal Collection” sale includes a variety of artwork, lead by Charles Conder’s painting Sand dunes, Ambleteuse with an estimate of £200,000-£300,000.

Also on offer are plenty of books, including a first edition copy of The Importance of Being Earnest signed by Oscar Wilde to his publisher. It has an estimate of £100,000 – £150,000.

“Barry Humphries was obviously best known for his comedic personas but behind that was a really passionate, intelligent and curious man,” Benedict Winter, associate director, private & iconic collections at Christie’s London, told Reuters.

The total sale was estimated at £2 million – £4 million.

“He was a passionate art collector who collected throughout his life, and this auction is around 240 lots of works of art and books that he lived with, he loved and he really cherished.”

Proceeds from the sale of some Dame Edna items will go to Britain’s Royal Variety Charity, which helps those who have worked in the entertainment industry.

A pre-sale exhibition is open to the public at Christie’s London showrooms until Feb. 12. — Reuters

PHL hotels may see revenue boost in 2025 — SiteMinder

REY MELVIN-CARAAN-UNSPLASH

PHILIPPINE HOTELS are projected to see revenue growth this year, driven by demand from international visitors, according to hotel e-commerce platform SiteMinder.

“The rise in room rates, fueled by strong international bookings, provides a solid foundation for Philippine hotels to maximize revenue in 2025,” Bradley Haines, regional vice-president for Asia-Pacific at SiteMinder, said in an e-mail.

Philippine hotels saw a 2.91% uptick in their average daily rate (ADR) to $125.03 in 2024 from $121.49 in 2023, according to SiteMinder’s Hotel Booking Trends Report. The ADR for local hotels peaked at $144 in December.

Last year, the Philippines was the only country to post double-digit growth in international hotel bookings at 13.6%, rising to 54.44% from 47.94% in 2023.

“Our data show a strong upward trend in international arrivals at Philippine hotels, with their share of bookings rising steadily from 16.54% in 2021 to 54.44% in 2024 — a notable 229% increase. This momentum suggests continued growth this year.”

Local hotels have been an attractive choice for foreign travelers as they offer both year-round appeal and experience-driven stays, according to Mr. Haines.

Foreign tourists booked their stays at Philippine hotels an average of 25 days in advance last year, up from 23 days in 2023. This was the second-highest lead time in Asia, behind Thailand (27 days).

About 89% of 2024 stays at Philippine hotels averaged up to two nights, while 11% lasted three nights or more, surpassing most Asian markets.

SiteMinder data showed a “less pronounced” gap in bookings between the December peak (9.73% of total bookings) and the September low (7.34%), suggesting that hotel bookings are more consistent throughout the year than seasonal.

However, around 16% of bookings at local hotels were canceled, a slight (2%) uptick from last year.

To sustain growth momentum, Philippine hotels must focus on data-driven strategies and respond to changing traveler preferences, according to Mr. Haines.

“Local hotel operators that leverage market intelligence to understand when and where guests are booking, along with dynamic pricing to capture demand more effectively, will be better positioned for growth.”

In its latest Changing Traveller Report, SiteMinder expects the continued boom of event travel and “workcations” this year.

Data showed that 65% of global travelers said they are likely to travel for concerts, sports tournaments, and festivals. Likewise, 41% plan to work during their stay.

SiteMinder also reported that 36% of travelers globally look up hotels via search engines, followed by online travel agencies (18%), online forums (11%), social media (11%), friends or family (7%), travel fairs (5%), and online travel blogs (5%).

According to the report, 46% plan to book a standard room for their 2025 stays, followed by a superior room (33%), deluxe room (14%), executive room (4%), and suite (3%). About 24% return to hotels for loyalty benefits.

Booking.com and Agoda were the top booking platforms for Philippine hotels last year, according to SiteMinder. Direct bookings remained strong, being the third-largest source of revenue for local properties.

Other popular booking platforms for foreign tourists include Expedia Group, Trip.com, Hotelbeds, Klook, DidaTravel, WebBeds, Tiket.com, Traveloka, and MG Bedbank. — Beatriz Marie D. Cruz

How minimum wages compared across regions in January

(After accounting for inflation)

In January, inflation-adjusted wages were 18.6% to 25.4% lower than the current daily minimum wages across the regions in the country. Meanwhile, in peso terms, real wages were lower by around P75.62 to P131.45 from the current daily minimum wages set by the Regional Tripartite Wages and Productivity Board.

How minimum wages compared across regions in March

On the ERC rates reset and nuclear energy

Last week, on Feb. 3, the House Committee on Energy held a public hearing about a Meralco refund and an investigation on the absence of a rate reset in the last decade for Meralco and the National Grid Corp. of the Philippines (NGCP).

The main issues were previously reported here: “ERC amends resolution to keep Meralco regulatory reset on track” (BusinessWorld, Dec. 29, 2024), “Senate bill extending Meralco franchise OK’d on 2nd reading” (BusinessWorld, Jan. 29), and “Meralco to refund P19 billion to consumers” (Philippine Star, Jan. 29).

This column and reactions in BusinessWorld also discussed the same topic two years ago: “Low power supply and Meralco distribution cost” (April 3, 2023), “Response to Bienvenido S. Oplas, Jr.’s April 3 piece, ‘Low power supply and Meralco distribution cost’,” by Alfredo Non (April 7, 2023), “More on Meralco distribution charges and energy transition” (April 13, 2023).

The representatives at the House Committee hearing last week focused their questions on former Energy Regulatory Commission (ERC) Commissioner Alfredo Non, who led the ERC for seven years (July 2011 to July 2018) when the scheduled fourth reset was not made. He said, among others, that the reset computation is very complicated, and a correction was needed in the third reset.

So far Meralco has refunded P48 billion to the consumers and is scheduled to refund another P19 billion. Public assumption was that Meralco’s distribution rate was bloated but when I checked the numbers from 2011 to 2018, this is not the case.

I checked the Meralco website and disaggregated the total charges from August 2011 to July 2018. I chose this period because this is the time that Mr. Non was ERC Commissioner, and he had oversight function for Universal Charge in Missionary Electrification (UC-ME) and Feed-in Tariff Allowance (FIT-All). UC-ME is a subsidy to customers of off-grid islands and provinces while FIT-All is subsidy to renewable energy (RE) companies that provide intermittent power like solar and wind under the RE law of 2008 (RA 9513).

I found that the generation rate by generation companies (gencos), the NGCP’s transmission rate, Meralco’s distribution-supply-metering (DSM) rate, system loss, government taxes, and subsidies to lifeline customers were generally flat over those seven years.

But the UC-ME rate increased significantly, from only 10 centavos in 2011 to 44 centavos in 2018; and the FIT-All rate increased from four centavos in 2015 to 24 centavos in 2018 (see Table 1).

So three narratives are debunked or belied by the above numbers. The first being that electricity prices “keep rising,” since the prices in 2016-2017 were even lower than the prices in 2011-2012. Secondly, that gencos of conventional power plants like coal and gas, the NGCP, and private distribution utilities like Meralco are to blame for the refund — which is a far out idea. And third, that the ERC leadership in that period were blameless — it was they, especially Mr. Non, that allowed the big jump in the UC-ME and FIT-All.

RPA ENERGY LECTURE
Also last week, on Feb. 7, the 3rd Ruperto P. Alonzo (RPA) Annual Memorial Lecture was held at the UP School of Economics (UPSE) in Diliman, Quezon City. The lecture, organized by the UPSE Program in Development Economics Alumni Association (PDEAA), was titled “Energy Trilemma: An Analysis of Philippines Situation.”

The four speakers were House Committee on Nuclear Energy Chairperson Representative Mark Cojuangco, Department of Energy Undersecretary Rowena Guevarra, ACEN President Eric Francia, and Institute of Climate and Sustainable Cities Advisor Albert Dalusung. It was moderated well by energy lawyer Jay Layug. I will discuss in another column the discussions that afternoon. For now I want to highlight the potential role of nuclear energy in helping reduce inflation.

Countries with a declining share of nuclear power over total generation from 2003 to 2023 have experienced generally high or rising inflation rates, and vice versa. Significant declines in nuclear/total generation were seen in Sweden, the UK, Germany, and Japan and their inflation rates increased.

In contrast, Asian nations that have a generally flat share of nuclear/total generation, or have increased it over the same period have experienced low or declining inflation rates — like China, India, South Korea, and the United Arab Emirates (see Table 2).

Mr. Cojuangco is correct in consistently and passionately advocating that the Philippines resume the operation of the nuclear plant in Bataan, and the construction of large nuclear plants in Pangasinan and other provinces in the country.

Meanwhile PDEAA officers and organizers want to thank the following who gave donations for the alumni homecoming that followed after the RPA lecture. Donations, mostly in kind, were used for raffle prizes and giveaways: Ferdinand Constantino, Jack Teotico of Galerie Joaquin, Aboitiz Power, GSIS, Meralco, the Metrobank Foundation, and Robinsons Retail. Thank you.

 

Bienvenido S. Oplas, Jr. is the president of Bienvenido S. Oplas, Jr. Research Consultancy Services, and Minimal Government Thinkers. He is an international fellow of the Tholos Foundation.

minimalgovernment@gmail.com

ACEN secures A- rating for climate action from CDP

ACEN Corp., the listed energy platform of the Ayala group, has obtained “Leadership” level and an A- rating for its climate actions from CDP, a global non-profit that assesses corporate environmental transparency and performance in climate change, deforestation, and water security.

“Achieving CDP Leadership status reflects ACEN’s disciplined approach to integrating sustainability into our business strategy. Transparency and strong climate governance are key to ensuring long-term value for our stakeholders while accelerating the energy transition,” Jonathan Back, ACEN’s group chief finance officer and chief strategy officer, said in a media release on Monday.

“Our improved rating reinforces our commitment to responsible growth and scaling renewable energy investments that drive both financial and environmental impact,” he added.

To achieve Leadership status, companies must demonstrate “best practices in climate action, environmental governance, transparency, risk management and target setting.”

CDP scores organizations from A as the highest to D- as the lowest, based on the comprehensiveness of their disclosures, awareness of environmental issues, management strategies and progress toward sustainability goals.

ACEN’s A- rating is an improvement from its previous B rating.

The company has joined CDP’s climate disclosure in 2022, along with over 24,800 organizations, in contributing to the “world’s largest and most comprehensive” dataset on environmental action.

“CDP’s insights empower investors, companies, cities and governments to make informed, sustainability-driven decisions,” ACEN said.

In November 2022, ACEN completed the world’s first market-based Energy Transition Mechanism (ETM), which involved divesting a 246-megawatt coal plant in Batangas and committing to its early retirement by 2040. This is ahead of the typical coal plant lifespan of 40-50 years.

This initiative is projected to reduce up to 50 million tons of carbon emissions.

“Building on this momentum, ACEN’s ETM project is now serving as a pilot for Transition Credits, with the goal of accelerating the plant’s retirement to 2030 — ten years earlier than planned — cutting carbon emissions by an additional 19 million tons,” the company said.

To date, the company holds about 6.8 gigawatts of attributable renewable energy capacity in operation, under construction, and committed projects.

It operates across a diverse range of markets, including the Philippines, Australia, Vietnam, India, Indonesia, Laos, and the US. — Sheldeen Joy Talavera

CIMB Bank PH books higher profit in 2024

CIMB.COM

CIMB BANK Philippines, Inc. (CIMB Bank PH) saw its profit before tax last year grow by 45 times from the 2023 level as it continued to expand its customer base.

“This is a reflection of the growing demand of Filipinos for our innovative banking solutions, which in turn addresses our customers’ needs. This truly keeps us driven to continue delivering products and offers that empower them to achieve their financial goals.” CIMB Bank PH Chief Executive Officer Vijay Manoharan said in a statement on Monday.

CIMB Bank PH’s financial statement was unavailable as of press time.

The digital-only commercial bank said its customer base is now at over nine million following six years of operations in the Philippines.

This puts it on track to reach its target to exceed 10 million new customers by this year, CIMB Bank PH said.

“When we first established CIMB in the Philippines back in 2018 as the pioneer all-digital banking services provider, our mission was and still is to give every Filipino access to banking and provide effortless banking with real value passed on to the everyday consumer. This promise was meaningful yet challenging, but in just six short years, we are proud to be the trusted partner of over nine million Filipinos and counting,” Mr. Manoharan said.

Meanwhile, the bank’s loan customers stood at nearly four million, it said. Transactions also climbed past P800 billion at end-2024.

“More great things are in store for the bank this year as well, as it is poised to launch more trailblazing products, enter new market segments, and form new strategic partnerships which will surely delight its nine million customers and counting,” it added.

Mr. Manoharan previously said the bank expects faster income growth this year as they plan to expand their offerings for underserved sectors.

Loans are expected to grow by 35-40% this year, he said.

CIMB Bank PH broke even in 2023, based on the CIMB Group’s annual report posted on its website. It had more than 7.4 million customers at end-2023, up from 6.5 million at end-2022.

It posted an annual loan growth of 89% in 2023, while deposits increased by 2024 year on yer.

“CIMB Philippines is expected to continue operating on a robust growth trajectory as the leading digital bank in the market. We will continue to scale on acquisitions, deposits and loans at manageable credit risk costs while seeding new growth for the business,” CIMB Group said in its 2023 annual report.

CIMB Group is based in Malaysia and offers consumer, commercial, wholesale, and Islamic banking, as well as wealth management and digital payment products and services across Southeast Asia. CIMB Bank is the group’s commercial bank in Malaysia, which has subsidiaries in Thailand, Cambodia and Vietnam and branches in the Philippines, China, Singapore, and London. — AMCS

George Clooney admits to nerves ahead of Broadway debut

GOODNIGHTGOODLUCKBROADWAY.COM

NEW YORK — Acclaimed film and television actor George Clooney previewed his upcoming Broadway debut in Good Night, and Good Luck on Thursday and admitted that he feels nervous to step on the stage.

Mr. Clooney, a two-time Oscar winner, said he has not done a live theater show since 1986.

“I haven’t done a play in 40 years… so it’s terrifying,” the actor told reporters in New York. “Yes, George Clooney gets nervous.”

Mr. Clooney is the co-writer and star of Good Night, and Good Luck, a play adapted from his 2005 film of the same name about broadcast news legend Edward R. Murrow and his work during the witch hunts of Senator Joseph McCarthy in the 1950s.

“The fun part about this is we get to do a play about a subject matter that’s very close to our hearts… which is telling the truth,” Mr. Clooney said.

Good Night, and Good Luck runs on Broadway from March 12 to June 8. — Reuters

Radisson targets to finish Makati serviced apartments by 2027

PHILSTAR FILE PHOTO

RADISSON Hotel Group expects to complete its new upscale serviced apartments in Makati City by 2027, a company official said.

“Radisson Serviced Apartments Salcedo Makati is a conversion project involving a full-scale renovation of the existing serviced apartments currently operating as One Pacific Place Serviced Apartments,” Ramzy Fenianos, chief development officer for Asia-Pacific, said in an e-mail.

The renovation will be carried out in phases, Mr. Fenianos said.

“However, we anticipate opening select sections as key milestones are achieved, targeting an official launch by 2026.”

The renovation is intended to align the property with Radisson’s latest global standards and design guidelines, he added.

“The updates will include enhancements to design, service, and overall functionality, making the apartments distinctly different from their current form and delivering an elevated guest experience,” Mr. Fenianos said.

The project will be Radisson Hotel Group’s first branded hotel and upscale serviced apartment in the capital region and its 16th property in the Philippines.

Located in Salcedo Village, Makati City, Radisson Serviced Apartments will feature around 162 spacious, contemporary units for corporate and long-stay guests.

It boasts proximity to Makati’s financial and entertainment districts, as well as major banks, embassies, multinational headquarters, shopping centers, and popular entertainment venues.

The property will also offer a wide selection of local and international cuisines. Guests will have access to flexible meeting spaces for business and social gatherings, as well as corporate events.

Other amenities include a state-of-the-art gym and a pool.

Cactus Realty Corp., the flagship company of the ACI Group, was tapped as a partner for the project.

“The signing of this hotel management agreement represents a new chapter in our journey, and we are excited to embark on this venture with Radisson Hotel Group,” Cactus Realty Corp. Vice-President Denise Lieuson said in a statement last week.

“Radisson’s expertise and global reach will undoubtedly elevate our property’s standards and enable us to tap into new markets, explore fresh opportunities, and create lasting value for our stakeholders,” she added.

Radisson Hotel Group currently operates 1,460 hotels, both in operation and under development, across more than 100 countries in the Asia-Pacific, Europe, the Middle East, and Africa. — Beatriz Marie D. Cruz

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