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Topline in talks with ‘strategic investor’ ahead of P900-M IPO

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CEBU-BASED fuel retailer Top Line Business Development Corp. (Topline) said it is in talks with a “substantial strategic investor” as it prepares for its P900-million initial public offering (IPO).

“Potentially, we’re looking at a substantial strategic investor coming in. It’s a strategic investor from a logistics standpoint. We’ve already spoken with them. They’ve shown a lot of interest,” Topline Chairman, President, and Chief Ex-ecutive Officer Eugene Erik C. Lim said during a media briefing in Taguig City on Wednesday.

“We’re in advanced talks right now, and we’ll know soon when we do the offer period because we’re doing the book-building process now,” he added.

Mr. Lim said the entry of the strategic investor will coincide with the company’s planned IPO.

“We’re still waiting until the book-building process is finished. But we’re hopeful that they’ll be joining us,” he said.

Topline previously reduced the size of its IPO to P900 million from the initial P3.16 billion after discussions with potential institutional investors.

The IPO now consists of up to 2.15 billion primary common shares with an overallotment option of up to 214.84 million secondary shares, priced at up to 38 centavos per share.

Based on its latest prospectus dated Feb. 25, the book-building period for the IPO began on Feb. 27 and will run until March 14, while the price-setting date is scheduled for March 17.

The offer period for Topline’s IPO will be from March 24 to 31, with a target listing date of April 8.

Mr. Lim said the allocation of the IPO proceeds has been adjusted to align with near-term expansion plans.

The company aims to raise up to P764.2 million in net proceeds, which will be used for its vertical integration strategy to manage its commercial fuel trade and retail market operations.

“Through vertical integration, we are enhancing control over supply chain risks, paving the way for healthier profit margins, improved supply stability, and consistent product quality. The increased operational efficiency will sustain our expansion and growth momentum,” Mr. Lim said.

Topline will allocate P300 million of the net proceeds to build 20 additional service stations under the Light Fuels brand, which are set to become operational between 2025 and 2026.

Light Fuels currently has four operational stations, while six fuel stations are in various stages of construction and development. The company aims to have ten operational stations by the first quarter of the year.

By 2026, Topline expects to have 30 operational Light Fuels stations, including the 20 stations to be funded by the IPO proceeds.

The company will also allocate P180 million for the purchase of a fuel tanker with a 5-million-liter capacity to enhance its fuel storage facilities.

Additionally, P270 million will be set aside for working capital requirements, while P14.2 million will be allocated for general corporate purposes.

The construction of additional depot facilities, initially included in the company’s prospectus filed last year, will be funded through other sources outside of the IPO.

“In view of the feedback from potential institutional investors, we have updated our expansion plans and IPO proceeds to focus on growing our current depot space, improving our importation processes, and ex-panding our operations,” Mr. Lim said.

“This approach will help us strengthen our market position to reliably supply fuel in the high-growth Central Visayas region and deliver more value to our shareholders in the long run,” he added. — Revin Mikhael D. Ochave

SMFB income up 7% to P40.9B as sales climb 6%

SANMIGUELFOODS.COM

ANG-LED San Miguel Food and Beverage, Inc. (SMFB) posted a 7% increase in net income for 2024, reaching P40.9 billion from P38.1 billion in 2023, driven by higher volumes and market expansion efforts.

Consolidated sales rose by 6% to P400.9 billion in 2024 from P379.8 billion in 2023, SMFB said in an e-mail statement on Wednesday.

Gross profit grew by 10% to P110.9 billion, while income from operations climbed by 15% to P55.8 billion.

“Our performance in 2024 reflects the strength of our brands, operational excellence, and disciplined execution of our growth strategies,” SMFB Chairman Ramon S. Ang said.

“We continue to invest in innovation, expand our market reach, and optimize efficiencies to drive sustainable, long-term value for all our stakeholders,” he added.

In the food segment, San Miguel Foods recorded a 33% increase in net income to P8.4 billion, while operating income rose by 37% to P13.3 billion.

Sales grew by 3% to P185 billion, driven by a 12% increase in the prepared and packaged food unit, supported by strong demand for Purefoods Tender Juicy Hotdogs, Magnolia dairy products, and San Mig Coffee.

In the beer segment, San Miguel Brewery Inc. reported a 1% increase in net income to P25.6 billion, while operating income grew by 6% to P33.4 billion.

Sales rose by 4% to P153.4 billion, with domestic sales reaching P137.6 billion and international sales amounting to $276.5 million.

Meanwhile, the spirits business, led by Ginebra San Miguel Inc., recorded a 3% increase in net income to P7.3 billion, while operating income rose by 26% to P8.6 billion.

Sales improved by 17% to P62.5 billion, driven by 9% volume growth. The spirits business benefited from strong demand and increasing popularity among a broader range of consumers.

On Wednesday, SMFB shares fell by 3.51% or P1.80 to P49.50 apiece. — Revin Mikhael D. Ochave

Berde, Thai partner to roll out 300-MW projects in Thailand

(L-R) Nakkarin Saingarmsatit, PSS Group general manager; Sam Yamdagni, founder and CEO of PSS Group; Morris Zhou, co-founder of Berde Renewables, Inc.; and Ashish Agarwal, I Squared Capital managing director

RENEWABLE ENERGY company Berde Renewables, Inc. has formed a joint venture with Thailand-based Power Systems and Solutions Co. Ltd. (PSS) to develop 300 megawatts (MW) of renewable energy projects in Thailand over the next three years.

The joint venture aims to develop solar photovoltaic, battery storage, and hybrid energy projects to meet the growing demand for sustainable power in industrial, commercial, and grid-scale applications, Berde Renewables said in a media release on Tuesday.

The companies will begin with operating assets of 18.9 megawatts-peak (MWp), 30 MWp under construction, and 170 MWp in the pipeline.

“This partnership is key to advancing our vision of accelerating the global transition to renewable energy,” said Morris Zhou, co-founder of Berde Renewables.

“By combining our strengths, we aim to deliver innovative, world-class renewable energy solutions and empower organizations and industry leaders to drive decarbonization and sustainability, shaping a greener future.”

Berde Renewables is a portfolio company of I Squared Capital, an independent global infrastructure investment manager. It develops, builds, and operates distributed renewable energy projects for commercial and industrial customers.

Meanwhile, PSS is a Thailand-based renewable energy developer and engineering, procurement, and construction contractor that has delivered over 198 MW of sustainable energy projects across the region.

“This joint venture strengthens Thailand’s renewable energy landscape by combining PSS’s deep market expertise with ISQ/Berde’s global expertise. Together, we are not just deploying megawatts — we are shaping a resilient, scalable, and bankable clean energy future for the region organically and inorganically,” said Sam Yamdagni, founder and chief executive officer of PSS Group.

The joint venture brings together Berde Renewables’ clean energy technologies and PSS Group’s expertise in engineering, oil and gas, power, renewables, and industrial services. — Sheldeen Joy Talavera

Globe’s Darius Delgado joins World Broadband Association board

(L-R) Darius Jose R. Delgado, Globe chief commercial officer; Li Zhengmao, WBBA board chairman; and Martin Creaner, WBBA director general

GLOBE TELECOM, Inc. announced on Wednesday the appointment of its chief commercial officer as a board member of the World Broadband Association (WBBA).

In a media release on Wednesday, Globe said Darius Jose R. Delgado, the company’s chief commercial officer, has joined the board of the Geneva-based WBBA.

Established in 2021, WBBA is a multilateral, industry-led association that brings together industry leaders in broadband and cloud technology to help bridge the digital divide while advancing broadband innovation.

“Being part of the WBBA board enables Globe to collaborate with global industry leaders in shaping the future of broadband and promoting digital inclusion. We look forward to contributing insights and innovations that will enhance connectivity and expand access, especially in emerging markets such as the Philippines,” Mr. Delgado said.

Globe officially joined WBBA in 2024, making it the only Philippine telecommunications firm in the association.

Mr. Delgado’s appointment to the board will allow Globe to contribute to global broadband development. He is the first Filipino to earn a seat in WBBA.

“Through its WBBA membership, Globe’s broadband arm engages in analyst-led executive roundtables that tackle major industry challenges and drive sustainable development through member collaboration,” Globe said.

At the stock exchange on Wednesday, shares in the company fell by P26, or 1.14%, to close at P2,248 apiece. — Ashley Erika O. Jose

San Miguel Corp. to hold Special Meeting of Stockholders on March 27 via remote communication

NOTICE OF SPECIAL MEETING OF THE STOCKHOLDERS
March 27, 2025

The Special Meeting of the Stockholders of San Miguel Corporation will be held on Thursday, March 27, 2025 at 2:00 P.M.

The Company will not hold a physical meeting and the meeting will be conducted via remote communication and livestreamed at the Company’s website. Stockholders can attend the meeting by remote communication.

The Agenda of the Meeting is as follows:

  1. Certification of Notice and Quorum
  2. Approval of the Reclassification of 904,752,537 common shares currently held as treasury shares, into Series 2 Preferred Shares held in treasury
  3. Approval of the Amendment to Article VII of the Amended Articles of Incorporation of the Company relating to its capital stock of Php30,000,000,000 at par value of Php5.00 per share or 6,000,000,000 shares –
  • FROM: divided into  3,790,000,000 common shares and 2,210,000,000 preferred shares
  • TO: divided into  2,885,247,463 common shares and 3,114,752,537 preferred shares
  1. Approval of the issuance of common and Series 2 preferred shares of the Company under such terms and conditions determined by the Management
  2. Approval of the delegation to the Board of Directors of the power to amend By Laws of the Corporation
  3. Adjournment

Stockholders who would like to attend the online meeting should access the 2025 SMC SSM Website at https://www.smc2025ssm.sanmiguel.com.ph to obtain the following: (a) ballots and proxies to attend the meeting, and (b) the link to view the livestream of the meeting which will be available on the day of the meeting.

During the meeting, the Company shall entertain questions and comments from the stockholders after the presentation of the Agenda Item Nos. 2, 3, 4 and 5. Questions and comments must be submitted either in advance or during the meeting by email to stockholders@sanmiguel.com.ph. Questions which were not answered during the meeting shall be forwarded to the Office of the Corporate Secretary for the appropriate response.

Ballots and proxies can be submitted via email at stockholders@sanmiguel.com.ph which submission shall be duly acknowledged and validated by the SMC Stock Transfer Service Corporation. For individual stockholders, the submissions must be accompanied by a copy of a government issued ID as proof of identification. For corporations, the submission must be accompanied by a certification from its Corporate Secretary stating the corporate officer’s authority to represent and sign on behalf of the corporation.  Kindly submit to the SMC Stock Transfer Service Corporation the original signed and notarized documents within a reasonable time after the resumption of regular business operations.

The deadline for submission of ballots and proxies is on March 13, 2025.  Validation of ballots and proxies will be on March 20, 2025 at 10:00 a.m. at the SMC Stock Transfer Service Corporation Office, 2nd Floor, SMC Head Office Complex, No. 40 San Miguel Ave., Mandaluyong City, Philippines.

 


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Term deposit yields inch down as inflation eases

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YIELDS on the Bangko Sentral ng Pilipinas’ (BSP) term deposits went down on Wednesday following slower-than-expected inflation in February, which could open the door for further monetary policy easing.

The BSP’s term deposit facility (TDF) attracted bids amounting to P250.471 billion on Wednesday, above the P190 billion on the auction block as well as the P194.816 billion seen a week ago for the same volume offer. The cen-tral bank made a full P190-billion award of the papers.

Broken down, tenders for the seven-day papers reached P115.922 billion, higher than the P100 billion auctioned off by the central bank and the P110.14 billion in bids for the same offer volume seen the previous week. The BSP accepted P100 billion in bids as planned.

Accepted yields ranged from 5.74% to 5.77%, narrower and slightly lower than the 5.5% to 5.775% band seen a week ago. This caused the average rate of the one-week deposits to inch down by 0.14 basis point (bp) to 5.754% from 5.7554% previously.

Meanwhile, bids for the 14-day term deposits amounted to P134.549 billion, above the P90-billion offering and the P84.676 billion in tenders for the same offer a week ago. The central bank made a full P90-billion award of the tenor.

Accepted rates were from 5.76% to 5.79%, narrowing from the 5.7% to 5.815% margin recorded a week ago. With this, the average rate for the two-week deposits inched down by 0.53 bp to 5.7752% from the 5.7805% logged in the prior auction.

The central bank has not auctioned off 28-day term deposits for more than four years to give way to its weekly offerings of securities with the same tenor.

The term deposits and the BSP bills are used by the central bank to mop up excess liquidity in the financial system and to better guide market rates.

TDF yields went down on Wednesday after the release of the latest headline inflation data, which showed that the average rise in prices of consumer goods eased more than expected last month, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“More benign inflation data could support a BSP rate cut as early as the next rate-setting meeting on April 3,” Mr. Ricafort said.

Headline inflation sharply slowed to 2.1% in February from 2.9% in January and 3.4% a year ago, the Philippine Statistics Authority reported on Wednesday.

This was the slowest monthly print in five months or since the 1.9% in September 2024. The February print was also well below the 2.6% median estimate in a BusinessWorld poll of 18 analysts conducted last week.

Despite surprising markets with a policy pause last month, BSP Governor Eli M. Remolona, Jr. has said the central bank is still in easing mode, signaling the possibility of up to 50 bps worth of cuts this year.

Mr. Ricafort added that the peso’s recent strength against the dollar also led to lower TDF yields as this could support further easing in inflation, which would give the central bank more room to cut borrowing costs.

The peso has closed at the P57 level since late February after trading at the P58 range earlier this year as the dollar hit multi-month lows due to concerns over the US economy’s health. — Luisa Maria Jacinta C. Jocson

House panel may OK LANDBANK charter this month

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A HOUSE of Representatives committee may approve within this month a measure providing for a new charter for Land Bank of the Philippines (LANDBANK) that will hike its capitalization to P1 trillion.

The House banks committee will likely approve the measure, which aims to boost LANDBANK’s ability to provide increased financial support to the agriculture sector via the capital hike, within the next two weeks, Manila Rep. Irwin C. Tieng, the panel’s chief, said.

“I think we still have another hearing. I don’t think we have enough quorum for a vote [today],” he told BusinessWorld on Wednesday in mixed English and Filipino. “Maybe by next week or the following week, we can have the voting for the charter.”

Several proposals on LANDBANK’s new charter are pending in Congress. The Senate’s version of the state-run lender’s charter is at the plenary level, while counterpart bills at the House remain pending at the committee level for consolidation.

Mr. Tieng said his committee already has drafted a consolidated bill, which is now pending approval by its members. A House official who spoke on the condition of anonymity said the panel wants the substitute bill to be similar to the Senate version to fast-track its approval.

The draft measure raises LANDBANK’s authorized capital stock to P1 trillion from the current P800 billion, with the National Government mandated to own 20% of its shares at all times, with P163 billion of the capital being paid from the state’s coffers, according to a copy of the bill’s fact sheet obtained by BusinessWorld.

The bill also allows the lender to issue common and preferred shares of stocks as approved by the Finance secretary, and secure loans from domestic and foreign sources with presidential approval.

It gives LANDBANK the authority to issue debt instruments up to an aggregate amount not exceeding 10 times its paid-in capital and surplus at any given time. The draft also allows the state-run bank to finance properties con-nected to government projects. — Kenneth Christiane L. Basilio

Wyn Power building 50-MW solar farm in Batangas

ZBYNEK BURIVAL—UNSPLASH

RENEWABLE ENERGY developer Wyn Power Corp. is set to begin construction on its 50-megawatt-peak (MWp) solar power project in Taysan, Batangas, valued at P1.5 billion.

The company officially broke ground on the ground-mounted solar photovoltaic project, which will deliver electricity through Batangas Electric Cooperative II (BATELEC II), it said in a media release on Wednesday.

“This 50-MWp addition to the Luzon grid will significantly benefit industries and consumers served by BATELEC II and nearby electric cooperatives,” said Rodel B. Arada, president and chief executive officer of Wyn Power.

The solar farm will be connected to the Luzon grid via a 2.3-kilometer transmission line to BATELEC II. Upon completion, it is expected to generate up to 74 million kilowatt-hours of clean energy annually.

The project is being developed under the Department of Energy’s second green energy auction in 2023, which secured a green energy tariff of P4.10 per kilowatt-hour.

With permitting complete and financing discussions underway, construction is targeted to begin within the month, according to Armando L. Diaz, Wyn Power’s business development partner.

“We are confident that with the support of the banking community, DoE (Department of Energy), DENR (Department of Environment and Natural Resources), and other stakeholders, Wyn Power, a reputable developer of renewable energy projects, will be able to bring this project to fruition,” Mr. Diaz said.

Aside from utility-scale solar plants, Wyn Power’s portfolio also includes rooftop solar and mini-hydro projects. The company’s client roster includes major players across various industries. — Sheldeen Joy Talavera

The Outlets at Lipa rebrands as The Outlets @LIMA Estate

aboitizpower.com

ABOITIZ INFRACAPITAL, Inc. (AIC) has rebranded Batangas’ first and largest outdoor lifestyle mall, The Outlets at Lipa, as The Outlets @LIMA Estate.

The rebranding of the mall, located within the 826-hectare (ha) LIMA Estate, aligns with the estate’s vision of becoming a fully integrated, future-ready destination, AIC said in a statement late Tuesday.

“As LIMA Estate continues to grow, we are elevating the experiences of our locators, employees, residents, and visitors through integrated and future-ready lifestyle developments,” Clifford Academia, vice-president for opera-tions at Aboitiz InfraCapital Economic Estates, was quoted as saying.

“The rebranding of The Outlets @LIMA Estate reinforces our commitment to a seamless live-work-play environment, further strengthening LIMA Estate’s position as the region’s premier business and lifestyle destination,” he added.

The Outlets @LIMA Estate is part of LIMA Estate, the Aboitiz group’s mixed-use development, which is home to about 4,000 households.

The estate also features a four-star hotel, a transportation hub, business process outsourcing (BPO) companies, schools, and dormitories.

Recent additions include restaurants such as Nono’s, Mama Lou’s, and Café Mary Grace, along with retail stores like Power Mac Center and Happy Go Department Store. AIC said the mall has been expanding to offer a diverse mix of shopping, dining, and recreational experiences.

Last year, AIC announced a P4-billion investment to expand its business district by 40 hectares. The expansion is slated for completion by 2027, with the first phase to be finished by July.

“With ongoing infrastructure enhancements and a continuous influx of renowned brands and lifestyle amenities, The Outlets @LIMA Estate further strengthens its role as Batangas’ premier retail and lifestyle destination, rein-forcing LIMA Estate’s emergence as a thriving regional hub for business and leisure,” AIC said. — Beatriz Marie D. Cruz

New ways: Easier said than done

(Conclusion)
Technologies like AI, theoretically, could make basic, repetitive jobs obsolete.

But not in Philippine farms, forestry, and fisheries (AFF) — at least not yet — where workers have accounted for more than a fifth to about a fourth of the country’s jobs since 20171.

Our youth (like their peers elsewhere) have been shunning farms and fisheries as a career. The average age of our farmers hovers around 57 years, while fishermen aged above 50-years-old made up 44% of the total as of 20212 and saw “significant growth” in 2012-20203.

As noted in the first part of this discussion (https://tinyurl.com/2bpxzp67), those in this aging sector may be too set in traditional practices to readily adopt new ways of doing things.

At the same time, AFF workers’ contributions to national production has been dropping, to 7.99% last year from 9.4% in 2023, 9.6% in 2022, as well as 10.1% and 10.2% at the height of the pandemic in 2021 and 2020, re-spectively. Those interested can check out World Bank tracking since 19604 that marks a peak of 27.6% of total output in 1974 and bares steady erosion since then.

And so, our farmers and fishermen need all the help they can get to maximize production with whatever inputs they have at hand.

AVAILABLE
A key to encouraging these folks to adopt new technologies and techniques is effective communication on just how specific technologies can make their work easier, faster, and more productive. I recall a lecture at the Univer-sity of Asia and the Pacific years ago where Dr. Bernardo M. Villegas, one of the school’s founders and now a BusinessWorld columnist, among others, cautioned researchers against preaching to farmers as if they knew nothing. These older folk, he said, are experts in their own right, having built their knowledge on decades of hard lessons that cannot be taught in a classroom.

To be sure, the government has not been remiss in at least recognizing the potential boost that technologies offer our farmers and fishermen, who are the poorest people in the country. Among others and to begin with, the Agriculture department has been employing digital technologies to update its Registry System for Basic Sectors in Agriculture (RSBSA), whose components consist of profiling farmers and fisherfolk, georeferencing farms, and an interventions monitoring system. Designed to provide a comprehensive database that captures personal, socioeconomic, and agri-fishery information of farmers, fisherfolk, and youth in farms and fishing communities, the RSBSA hopes to enable the government to better target intervention.

While this discussion took off in the first part of this column with the experimental use of drones in select cooperative rice and tobacco farms, other technologies either already in use or being considered include:

• for farms: high-yield, pest-, drought-, and flood-resistant hybrid and genetically modified rice, corn, and vegetables; mechanization; integrated biological control agents and eco-friendly pest management; drip irrigation and solar-powered pumps; use of biofertilizers, composting, and natural pesticides; precision farming with (besides drones) sensors and Global Positioning System (GPS); vertical and urban farming techniques like hydroponics and aquaponics for confined spaces; smart greenhouses providing controlled environments with automated temperature settings; no-till farming for soil nutrient conservation method; as well as biogas (converting farm waste into renewable energy), etc.;

• for fishing and aquaculture: aquaponics, which combines fish farming and soil-less vegetable cultivation; growing fish and shrimp in controlled environments; recirculating aquaculture systems, involving a closed-loop sys-tem that conserves water while maintaining productivity; solar salt production; newer fish-drying, -smoking, -canning, and vacuum-packing technologies; modern seaweed cultivation and processing for food, pharmaceuticals, and biofuels; GPS and sonar for efficient fish location in open waters, etc.

Not to mention the need for more cold storage facilities which are key to keeping a lid on prices of the various produce, since these structures cut wastage and losses, and ensure adequate supply to retail markets.

DEBILITATING
One weakness that will thwart any effort to raise productivity is farm size, now limited by our 40-year-old land reform law to just five hectares (ha) per farmer (although in many provinces, the average farm size has fallen to just a hectare at most) — hardly enough to justify the cost of new technologies to boost production.

Foundation for Economic Freedom President Calixto V. Chikiamco, who also sits on the board of the Institute for Development and Econometric Analysis, Inc., noted in a July 2020 column for BusinessWorld that the 5 ha farmland holding limit resulted in that size being whittled even further as original beneficiaries died and heirs inherited the land. And with average farm size at that time cut by 34% since 1985, agricultural productivity fell 17%, according to that piece.

“With that limit, why spend or take risks (with new technologies)? Why change the ways that have worked for you?” Dr. Fermin D. Adriano, formerly Agriculture undersecretary for policy, planning, and research, said on this issue in a recent chat.

Any solution will have to bypass legislation, since amending or coming out with new laws to fix this mess will take too much time.

In a paper he presented at the Australian National University in October last year, Mr. Adriano advocated farm consolidation and clustering to achieve economies of scale in order to encourage an increase in production.

“Studies have shown that the fragmentation of our farmlands into miniscule sizes has resulted in a significant decline in farm production,” the paper read. “This is due to a lack of scale economies, which is manifested in the inability to apply modern farm machinery and technologies due to small land sizes.”

This tack will not involve the consolidation of land ownership (which itself opens a can of worms due to messy documentation), but rather production scheduling of groups of small farmers to facilitate the use of farm ma-chines and technologies and ensure a steady supply of produce.

This means that the Cooperative Development Authority (CDA) has its job cut out for it. Mr. Adriano noted, however, that Republic Act No. 11364, which reorganized the CDA (formed under RA 6939), focused more on regu-lation and supervision of cooperatives. While its functions include the training of cooperative leadership and members, the law is silent on assistance in the formation of cooperatives itself (the typical farmers or fisherfolk, after all, cannot be expected to be knowledgeable about cooperative organization).

PRIVATE SECTOR’S ROLE
And this is where businesses and other private groups come in, with efforts ranging from boosting agriculture production to research and development (R&D).

“Enabling policies that promote greater collaboration and networking of government activities with the private sector that result in vertical coordination and horizontal integration of agricultural activities need to be formu-lated and enforced to engender modernization and industrialization of the agriculture sector,” Mr. Adriano said in his 2024 paper.

In a February 2024 piece5, Mr. Villegas cited the example of one private effort to consolidate more than 3,000 ha of coconut farms in a bid to achieve higher farm productivity and improve revenues through processing of raw materials into higher-value processed products, while a handful of conglomerates have paved the way in this matter for others, hopefully, to follow suit. Mr. Adriano cited leaseback, joint venture, contract growing and management contract arrangements among various schemes that may be employed to achieve the desired economies of scale.

Another example: Bayer Crop Science has been testing the use of AI-driven drones for rice-seeding in Central Luzon since 2021, and has also been looking at various hardware and applications to collect climate and plant health data that can be provided regularly to farmers.

Business groups have also put their hand to the plough.

The Management Association of the Philippines, for instance, has teamed up with the Asian Institute of Management and the Department of Science and Technology’s Philippine Council for Agriculture, Aquatic, and Natural Resources Research and Development for the Agri-Aqua Innovation Challenge (AAIC). This public-private partnership aims to help startups and students turn technological ideas into actual products and services that can be used by farmers, fisherfolk and the general public.

AAIC 2025 entries include shoe polish made from water hyacinth, coco fiber boards from coconut husks that can be a sustainable alternative to plywood, integrated sensor and data solutions suites that monitor multiple sites and stages of the agriculture value chain, mobile solar-powered irrigation systems, compact indoor vegetable farming systems, automated integrated disease monitoring, smart mobile gadgets to facilitate soil health as-sessment and receive tailored farming management tips, an autonomous water drone that collects plastic waste from coastal waters, as well as a system that improves water quality in aquaculture farms in order to prevent fish kills, among many others.

Note that half of the entries belong to students, while startups on the list, presumably, belong to young entrepreneurs and scientists. And there, perhaps, is the clearest proof that this is the channel for more of our youth to get engaged in agro-forestry-fisheries once again. And, in that way, reinvigorate this sector, fuel faster growth there, and, in turn, the entire economy.

The few farm schools are a checkered lot, due in part to rural parents’ understandable preference for their kids to take non-agriculture courses in college. Curricula in those schools can be reviewed to focus on the unique techno-logical needs of specific localities where their beneficiaries work. Hopefully, the success of efforts like AAIC will be instrumental to the success and expansion of these schools, which in turn are one of the conduits for technology de-ployment and adoption.

MORE, BETTER R&D
In his paper, Mr. Adriano also cited the need for research to be more industry-driven. “Unfortunately, many research activities undertaken by academic institutions are not demand-driven and, hence, are not of immediate relevance to farmers and agricultural entrepreneurs.”

The government itself has to increase its R&D investment in this field. “Studies have shown that the highest investment return in agriculture is derived from research…,” Mr. Adriano said in his paper.

In an August 2024 policy paper, the Sustainable Agricultural Landscapes in Southeast Asia — a platform that includes the University of the Philippines-Los Baños, the Southeast Asian Regional Center for Graduate Study and Research in Agriculture, and the French Agricultural Research Centre for International Development, among others — called for an increase in agriculture and fisheries R&D spending to at least 1% of agricultural GDP from a “below international stand-ards” 0.15% currently in order to make these sectors climate-resilient and competitive.

“The country’s public investment in agri-fisheries R&D as a percentage of agriculture GDP should be treated as a public good and intensified to at least $5 for every $100 it spends to support the agri-fisheries sector,” said a press release on this paper, which also called for harmonization of efforts and deepening coordination among R&D agencies such as the Agriculture department’s Bureau of Agricultural Research and the Department of Science and Technology’s Philip-pine Council for Agriculture, Aquatic and Natural Resources Research and Development.

In his paper, Mr. Adriano cited a flaw that bedevils much government research. “Research results… should eventually be disseminated to the farmers for adoption…” he said. “… [M]any of the research undertakings are in the ‘pi-lot’ or ‘prototype’ status, that upscaling their implementation presents a formidable challenge.

“Better coordination of the RDE (R&D effort) continuum is needed, wherein research issues are demand-driven, their positive results are applied to a bigger experimental base and, eventually, adopted by many farmers.”

For starters, Mr. Adriano added, the Agriculture department needs to identify a list of “low-hanging fruits” or technologies for scaling that can yield immediate, visible positive impacts on farmers and fisherfolk.

And that brings us to the final point: there is a need to ensure that the organizational structures of the Agriculture department, its bureaus and its units are conducive to the development, adoption and deployment of new technologies. This starts with the separation of regulatory and development functions. “It is often experienced that when the development and regulatory functions are assigned to the same bureau/unit to perform, it is most likely the development thrust that is neglected in favor of enforcing regulations,” Mr. Adriano said.

Major business consultancies like McKinsey & Co., Boston Consulting, and Bain & Co. have recommended the mainstreaming of technology development and adoption among companies and other organizations, instead of isolating this function in a silo. Whether the DA should do this immediately or in the mid-term, or whether this effort should remain crop program-specific (as it is now), is something that can be studied. What is evident is that the department needs a clearer structure to develop, adopt and roll out relevant technologies.

Agriculture’s consistently poor performance stares us in the face each time we see a farmer toiling in the field with his carabao or small fishermen braving open waters like the West Philippine Sea. Their output has paled for too long against those of their Indo-Pacific peers.

Hopefully, technologies — properly developed, adopted, and deployed — will help change their lot.

1 https://tinyurl.com/y2ds2a34
2 https://www.bfar.da.gov.ph/wp-content/uploads/2022/11/2021-Fisheries-Profile-FINAL-FILE.pdf
3 https://tinyurl.com/26es9lex
4 https://tinyurl.com/2yssxfd7
5 https://tinyurl.com/22fv535v

 

Wilfredo G. Reyes was editor-in-chief of BusinessWorld from 2020 through 2023.

Taiwan is not just Taipei (though it is not a bad place to start a visit)

Source: https://eng.taiwan.net.tw/

For the record, there is more to Taiwan than Taipei.

The Taiwan Tourism Administration (TTA) wants international visitors, including Filipinos, to explore cities beyond Taipei to experience the country’s culture, history, nature, and cuisine in a showcase of Taiwan’s charm.

“We want to see more Filipino visitors to Taiwan in addition to a higher percentage of repeat visitors,” the TTA said in an email interview.

Taiwan’s tourism brand, Waves of Wonder, was launched in May 2024 to promote the scenic spots around the country. Its logo mimics the contours of mountains, ocean waves, winding roads, and historical railways, highlighting that the self-ruled island has plenty to offer aside from the bustling city of Taipei.

With this branding, the TTA aims to invite visitors to their country to “enjoy the mountains, embrace the sea, and explore the island.”

BusinessWorld, together with six representatives of the Philippine media, visited Taiwan from February 11 to 16 at the behest of the TTA for a familiarization trip around Taoyuan City, Miaoli County, and Hsinchu County to see and experience the “Waves of Wonder” the country has to offer.

Historical and cultural spots

The Lost Army Story House | Photo by Almira Louise S. Martinez, BusinessWorld

The Filipino press group went to the “Lost Army” museum in Zhongzheng New Village, Taoyuan City, opened in 2022 by Simon Wang, one of the soldiers who fought in the Chinese Civil War.

“They don’t know about these people, these soldiers that died in the battle, they sacrificed their lives, and no one [remembers],” Mr. Wang told reporters.

Historical materials such as old documents, fake guns, uniforms, grenades, and even “mission cards” that reveal a message once heated are displayed inside.

The Lost Army Story House | Photo by Almira Louise S. Martinez, BusinessWorld

Along with the war memorabilia, the museum has different areas narrating the trauma experienced by soldiers, how soldiers used opium during the war, and other traditional clothing.

Mr. Wang said that he wanted to establish a story house to commemorate, remember, and let the people know about his fellow soldiers in the Lost Army.

Almost an hour from Taoyuan City lies Jinliangxing Brick Factory, another valuable place in Miaoli County that holds a significant part in the history and culture of Taiwan, particularly in its architecture and construction.

Jinliangxing Brick Factory | Photo by Almira Louise S. Martinez

Before concrete became widely used globally, Taiwan built houses and structures with red bricks. The bricks manufactured by Jinliangxing have made 100-year-old churches and other establishments, Sem Yie, owner of the brick factory, said.

Jinliangxing Brick Factory | Photo by Almira Louise S. Martinez

With the lowering demands as time passed, the factory opened a small museum showcasing the history of bricks and carved artworks. Mr. Yie said by doing so, he hopes to preserve the history and culture of traditional Taiwanese architecture.

Tours exploring the interior and exterior of an old kiln are also open to visitors.

“I am trying to introduce this bricks culture to the new generation,” Mr. Yie said.

Longteng Bridge is one of the notable structures made from Jinliangxing bricks. Although it got damaged by the deadly 1935 Shinchiku-Taichū earthquake, its foundation stood still and is now a tourist spot in Miaoli County.

Old Mountain Rail Bike | Photo by Almira Louise S. Martinez

Through Taiwan’s first mountain-town rail biking system, the Old Mountain Line Rail Bike, tourists can see the remains of the historical bridge while driving an electric bike on a century-old railway.

Visual displays and colorful lights lit up the tunnels the electric bike will pass through, making the experience more unique.

 

Connecting with nature

For vacationers seeking nature trips, Taiwan is one of the best places to visit. Surrounded by waters and mountainous terrain, breathtaking nature-filled spots are endless.

Located in Fuxing District in Taoyuan City, Xiaowulai Skywalk offers fresh air and scenic views of the mountains, forest, and falls.

Xiaowulai Skywalk | Photo by Almira Louise S. Martinez

Although it was raining when the media group visited the area, the beauty and serenity of the place still shined through. A glass platform view deck overlooking Xiao Wulai waterfall allows visitors to feel like they are “walking on clouds”, hence the name skywalk.

Apart from the skywalk, vibrant cherry blossom trees can be spotted around the area from late January to mid-April. This enhances its visual appeal, making it look like a mini-Japan.

photo by Almira Louise S. Martinez
Leofoo Resort | photo by Almira Louise S. Martinez

Animals are also well-loved in Taiwan. In fact, Leofoo Resort Guanshi in Hsinchu County is Asia’s first resort with herbivorous animals and natural ecology incorporated into its design inspirations.

Capybaras, flamingos, and meerkats can be seen through the big windows inside the 161 rooms available in the hotel, allowing vacationers to have a close-up look at the adorable animals.

If this is not enough, Leofoo Village Theme Park also offers an African safari experience where visitors can ride a bus driving around different habitats of wild animals such as white tigers and lions.

 

Flavors of Taiwan

Visiting places is not the only way to learn more about a country. A traveler’s stomach must be full, together with his eyes and mind.

photo by Almira Louise S. Martinez

After exploring the countryside, the media group had the opportunity to indulge in one of the staples in Taiwanese cuisine – authentic beef rice noodles, from different local restaurants like Jin Bang Noodles Shop in Sanyi Township, Bebu Chun Jiao Noodles near Beipu Old Street, and Duan Chunzhen Beef Noodles in Hsinchu County.

photo by Almira Louise S. Martinez

A distinct flavor evident in their staples, like beef noodle soup, is the five-spice powder. The five-spice powder is composed of star anise, cloves, Chinese cinnamon, Sichuan pepper, and fennel seeds.

Unlike the typical Filipino cuisine bursting with bold and rich flavors, beef rice noodles in Taiwan tasted light yet filling. The thick rice noodles complement the subtle flavors of the soup paired with the tender beef.

If one wants to be more adventurous, exploring Beipu Old Street is an easy fix for anyone who likes to expand their taste palette. Ranging from dried fruits to the popular stinky tofu, this street in Hsinchu County is the answer to all the foodie travelers.

While exploring the island, it further highlighted a few similarities with the Filipino culture and history – from closely knit families and being colonized to ‘Popiah’ or Lumpia, it is like a “home” away from home.

Last year, the Philippines became Taiwan’s fifth largest source of inbound tourists. The once-known ‘Heart of Asia’ has exceeded far beyond just a neighbor; it has captured and found a place close to the hearts of Filipinos.

Banks likely to continue posting record incomes

REUTERS

PHILIPPINE BANKS may continue to post record-high net incomes this year as robust economic growth is expected to spur lending.

“We expect another record year for banks given the accelerating domestic economy, loan growth pickup and robust expansive balance sheets of the corporate sector,” First Metro Investment Corp. Head of Research Cristina S. Ulang said.

“Banks’ earnings in 2024-2025 are likely to remain robust and could approach or surpass record levels… With consumer and business confidence improving post-pandemic, loan growth has accelerated, particularly in key seg-ments like retail and corporate lending,” Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera said.

Borrowing costs will remain elevated compared to pre-pandemic levels even with the Bangko Sentral ng Pilipinas (BSP) expected to continue its easing cycle, he said. “This, combined with prudent cost-of-funding strategies, supports higher net income margins.”

“Meanwhile, fee-based income streams, such as credit card fees, transaction fees, and income from wealth management, continue to grow due to increased economic activity and digital banking adoption,” Mr. Rivera added.

“Banks are poised for another solid year in 2024 and moving forward to 2025, with a high likelihood of record net incomes if the economy maintains its growth momentum and external risks remain manageable. However, sus-tained performance will depend on effective credit risk management and adaptation to a dynamic macroeconomic environment.”

The Philippine banking system’s combined net profit increased by 9.76% to P391.28 billion in 2024 from P356.49 billion in 2023, latest BSP data showed.

Several listed banks have reported that they booked all-time high net incomes in 2024, including Metropolitan Bank & Trust Co., Bank of the Philippine Islands, China Banking Corp., Security Bank Corp., and East West Banking Corp., driven by higher net interest earnings amid the elevated rate environment.

The BSP last year cut benchmark interest rates by a total of 75 basis points (bps) via three consecutive 25-bp reductions since it began its easing cycle in August, bringing the policy rate to 5.75%.

The Monetary Board, in its first meeting for 2025 held on Feb. 13, kept borrowing costs unchanged in a “prudent” move.

BSP Governor Eli M. Remolona, Jr. said uncertainty over the trade policy of US President Donald J. Trump and its potential impact on the Philippines led to the decision to keep rates unchanged for now.

Still, the BSP continues to be in an easing cycle, with the pause letting the central bank hedge itself against the risk of policy reversal, he said.

Mr. Remolona added that the central bank will likely continue reducing interest rates by 25 bps at a time, with 50 bps in cuts still on the table this year.

MARGINS
Mr. Rivera said the expected rate cuts could have mixed effects on Philippine banks, depending on their impact on loan demand, asset quality, and funding costs.

“A 50-bp rate cut will likely be neutral to slightly negative for banks’ margins but supportive of loan demand in consumer and corporate segments. The impact on nonperforming loans (NPL) will depend on how the broader economy responds. If rate cuts successfully spur growth, credit risks could remain manageable,” he said.

“Large firms may take advantage of lower borrowing costs for expansion or refinancing, but their appetite will also depend on business confidence and economic conditions. If uncertainty remains high, demand may be lukewarm,” Mr. Rivera added. “Rate cuts generally support retail loans (auto, housing, personal loans), but household debt levels and inflation will determine how much of this demand materializes.”

Regina Capital Development Corp. Head of Sales Luis A. Limlingan likewise said that while further monetary easing may compress banks’ margins, it could also boost loan demand, especially from consumers and small and me-dium enterprises.

“Large banks with strong CASA (current and savings account) ratios can better defend margins, while smaller banks may face pressure. NPL risks remain, especially in unsecured consumer credit,” he said.

Reyes Tacandong & Co. Senior Adviser Jonathan L. Ravelas said lower interest rates may help stabilize banks’ NPLs as it could ease the cost of doing business.

“Hopefully, with the cost of doing business improving and inflation stabilizing, consumption recovery will materialize, thus improving consumer and business sentiment and loan uptake,” Mr. Ravelas added.

Ms. Ulang added that lower interest rates will be positive for banks’ funding costs and can boost their profitability.

“Rates are not going to stay higher for longer… The cost of borrowing will ease and borrowers’ ability to pay will even be better as economic growth accelerates this year.” — Aaron Michael C. Sy