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Philippine CEOs push for faster AI adoption

Philippine businesses are ramping up adoption of artificial intelligence. — REUTERS/DADO RUVIC/ILLUSTRATION

By Aubrey Rose A. Inosante, Reporter

TOP EXECUTIVES in the Philippines are pushing for the faster digitalization and artificial intelligence (AI) adoption to stay ahead amid global uncertainties. 

At the 23rd Management Association of the Philippines (MAP) International CEO Conference, executives emphasized that with the rapid developments in technology, companies have to adapt quickly or risk being left behind.

“There will always be more disruptions ahead, including disruptions at an existential level like AI. But disruption is a friend,” Orlando B. Vea, chief executive officer (CEO) and founder of Maya Philippines, said in a speech on Tuesday in Taguig.

“If we live with clarity of purpose and a spirit of innovation, we can turn those disruptions into game-changing opportunities,” Mr. Vea said.

MAP President Alfredo S. Panlilio said there is a need for leaders to anticipate and lead transformation before the rest of the world catches up.

“This is a timely call, as the world continues to evolve at an accelerated pace, and those who can sense, interpret, and act upon emerging signals will be better positioned to lead with confidence and purpose,” Mr. Panlilio said.

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.

Executives said AI is already helping improve productivity, increase revenue and enhance customer engagement.

Over the next year, 82% said they plan to invest in their workforce, 78% in automation, and 63% in advanced technologies.

Health Solutions Corp. President and CEO Alma Rita R. Jimenez said disruption is no longer confined to specific industries, while success depends on how well organizations adapt and innovate.

“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,” she said.

PLDT and Smart Senior Vice-President and Head for Enterprise Business Group Patricio “Blums” Pineda III said that during unprecedented disruptions, “you’re either the cannibal or you’re the lunch.”

“Volatility, uncertainty, complexity, ambiguity, market forces, and tech disruption, these are what we live in,” he said, noting that responses still vary by industries, companies, and market situations.

“But digital transformation is a common thread of your response, as you need the full leverage of connectivity, tech, data to grow your businesses, develop relevant products, and build customer delight.”

At the same time, Philstar Media Group and BusinessWorld President and CEO Miguel G. Belmonte warned of challenges posed by AI-generated content and deepfakes that are hampering truth-telling.

“We continue to face greater challenges with the advent of AI-generated content, deep fakes, declining trust in established institutions, and the overwhelming speed at which information is consumed and forgotten,” he said.

Mr. Belmonte said organizations that will thrive are those deeply rooted in their mission and purpose, even as platforms, technologies, and consumer habits may change.

“If the last few decades have taught us anything, whatever industry we are in, technologies may evolve, our customers may change, but core values endure,” he said.

First Gen Corp. President Francis Giles B. Puno said businesses must adapt swiftly to survive. 

“We barely settle in before the ground shifts again, leaving us with no choice but to adapt quickly or risk being left behind,” he said. “Every business, regardless of size or sector, has had to put up with challenging disruptions.” 

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

DEPDev: 52 flagship projects to be completed by 2028

A worker walks past a train coach at the construction site of the Malanday Depot and Station in Valenzuela City. This is part of the North-South Commuter Railway project. — PHILIPPINE STAR/MIGUEL DE GUZMAN

By Katherine K. Chan

AT LEAST 52 infrastructure flagship projects (IFPs) of the government are set for completion by 2028, the Department of Economy, Planning, and Development (DEPDev) said.

At a briefing at the House of Representatives on Tuesday, DEPDev Assistant Secretary Roderick M. Planta said 52 of the 207 total flagship infrastructure projects and programs will be done within President Ferdinand R. Marcos, Jr.’s administration.

“Fifty-two will be completed within the (current) administration, by 2028. There are 60, but eight of those are studies and 52 are the actual projects,” he said.

Of the 52, 23 projects are on schedule, while 29 are delayed by at least two months, the DEPDev said.

Among those with delayed projects are the departments of Agriculture, Information and Communications Technology, Transportation, and Public Works and Highways.

The Local Water Utilities Administration, Metropolitan Waterworks and Sewerage System, National Irrigation Administration, Philippine Statistics Authority, University of the Philippines and Toll Regulatory Board also have delays in implementing some projects.

Data from the DEPDev showed 32 IFPs that are supposed to be completed by 2028 are under the physical connectivity sector, while eight projects involve water resources. Four projects are each under the digital connectivity and health sectors, while three are for agriculture and one for power and energy.

“All department secretaries are asked for their recommendations on what should be added to the new list,” Mr. Planta said in Filipino.

“The same criteria apply — it should be game-changing for the Philippines. In a way, these are big-ticket items in the sense that they have a significant impact on the community,” he added.

Twenty-one of the IFPs, worth around P1 billion in total, are in the National Capital Region, Central Luzon and Calabarzon.

The Economy department said issues with site conditions or availability, contractors and consultants, budget constraints, procurement and legal policies have been hindering the projects’ progress. 

To address these issues, agencies have been implementing measures such as simplifying processes to ease site access and right-of-way acquisition, establishing performance monitoring systems, enhancing procurement planning, and addressing legal issues.

Last year, Mr. Marcos signed Executive Order No. 59 which slashed the number of IFP-licensing agencies to 12-18 from 30 to streamline the process of acquiring permits for IFPs.

The DEPDev also launched an IFP monitoring and reporting system and an IFP dashboard designed to track the progress of each project.

Meanwhile, DEPDev reported that only seven of the 207 IFPs have been completed as of June.

These completed projects are the Samar Pacific Coastal Road, the integrated disaster risk reduction and climate change adaptation measures in low-lying areas of Pampanga Bay, the flood risk improvement and management for Cagayan de Oro River, the Surallah-T’boli-San Jose Road, the third phase of the Arterial Road Bypass (Plaridel Bypass), the Panguil Bay Bridge and the Pasig-Marikina River channel improvement.

In the 2026 National Expenditure Program, P52.08 billion was allocated for the 52 IFPs. This represents 33.14% of the P157.2-billion budget required for the programs. 

The government has set a total of P1.558 trillion for its infrastructure program next year.

Last month, the government said it will prioritize 54 flagship projects next year, including the Bataan-Cavite Interlink Bridge, Laguna Lakeshore Road Network and phase four of the Pasig-Marikina River Channel Improvement Program. 

According to the DEPDev, 140 IFPs are seen to be completed beyond 2028.

COMMUTER RAILWAY
Meanwhile, less than half or 38.87% of the completion target of the North-South Commuter Railway (NSCR) System has been achieved to date, Mr. Planta said. 

“Based on the information provided to us by the DoTr (Department of Transportation), the NSCR (completion progress) is at 38.87% as of the second quarter of 2025,” he said.

This is well behind the 87% initial target set for the project.

“Our (NSCR) project is ongoing. The connection from West Valenzuela to Malolos will be completed by 2027,” Department of Transportation (DoTr) Assistant Secretary Manuel G. Cabochan III added.

Earlier this year, the DoTr said its Japanese partners estimated that the NSCR will be delayed by four years.

Transport Secretary Vivencio “Vince” B. Dizon had said that they aim to make the Manila-Malolos segment of the project operational by end-2026 or early 2027.

The government allocated P124.1 billion in the 2026 budget for railway system development, P76.1 billion of which is for the NSCR.

Imagination peoples the air

THE PAVILION is designed as a communal setting, with modular rattan and bamboo seats amid the 500 Philippine book titles on display, with translucent walls that also double as a canvas for artworks.

The Philippine Guest of Honor Pavilion at the Frankfurt Book Fair presents unique narratives

A DECADE AGO, Anvil Publishing Manager Karina Bolasco sought the support of arts patron Senator Loren Legarda, so that the Philippines could have a bigger presence at Frankfurter Buchmesse, the world’s largest trade fair for books. From her support came a vision of the Philippines as the Guest of Honor at the fair — an initiative which finally bears fruit this year with a 2,000-square-meter pavilion.

Established in the 17th century and revived for the modern era in 1949, the Frankfurt Book Fair is held annually every October in Frankfurt am Main, Germany.

While the Philippines has been involved in the book fair since 1998, this will be its first time participating as Guest of Honor. It also marks the second time a Southeast Asian nation has taken on the role, following Indonesia 10 years ago.

The pavilion, which has the theme “The imagination peoples the air,” will have over 400 Philippine delegates — authors, illustrators, artists, creatives, and publishers. It is curated by Patrick Flores and designed by Stanley Ruiz.

The physical space itself will be a communal setting, with modular rattan and bamboo seats amid the 500 Philippine book titles on display. The translucent walls also double as a canvas for works by artists Gary-Ross Pastrana, Mervin Malonzo, and David Medalla.

“The Pavilion features native craftsmanship to create spaces where old forms find new purpose, and tradition becomes a living canvas for imagination and connection,” Ms. Legarda said at a press conference held on Sept. 4 in Manila.

EXPANSIVE PROGRAM
Aside from the pavilion itself, the Philippines’ Guest of Honor program will span over 100 talks, readings, and performances curated by Ms. Bolasco. These will explore a variety of global issues — human rights, democracy, climate change, geopolitics, children’s literature, religion, race, queer stories, and more.

One example is the discussion “How Do We Write About Climate Change?” led by poet Marjorie Evasco, Maria Paz Luna, and Red Constantino, which will end with a performance of National Artist Ryan Cayabyab’s song “Paraiso” by the Philippine Madrigal Singers and Song Weavers Philippines.

Panels on human rights and democracy include “Framing Stories: Art and Film Resist,” “Philippine Media: Struggles for Freedom,” and “West Philippine Sea: Ecology and Assertion,” among others. Nobel Peace Prize laureate Maria Ressa and trauma journalist Patricia Evangelista will hold talks at the pavilion.

Performers also span traditional and contemporary music: Morobeats (hip hop), violin duo Justin and Janna Texon, Kuwerdas Filipinas (symphonic rondalla), and Akayu (Kalinga music), to name a few.

For expressions of solidarity with Gaza and Ukraine, the program will have “Poetry for Freedom, Justice, and Peace,” a lineup of poetic performances which is set to run twice a day; and “A Solidarity for Hope” which will feature readings by National Artist for Literature Virgilio Almario, Turkish writer and President of PEN International Burhan Sönmez, and Indonesian author Ayu Utami.

On Mr. Almario’s participation, Ms. Legarda said in her speech that “his presence deepens the meaning of our program, affirming how Filipino literature shapes both our memory and our future.”

She added that “Filipino creativity will be felt in music and poetry with each session closing on a note of inspiration from artists and performers who connect our past and present.”

“Our presence will extend far beyond the pavilion,” she said.

BEYOND THE PAVILION
Aside from the Pavilion, there will be the Philippine Stand, a central hub for business and rights negotiations among publishers; and the Asia Stage, a home for hourly talks on issues in the Southeast Asian market like censorship, comics, and generative artificial intelligence.

Across the three venues, there will be 65 talks, workshops, and discussions.

Charisse Tugade, executive director of the National Book Development Board (NBDB), which is one of the coordinators for the program, told BusinessWorld that publishers, authors, and creatives were selected through an open call led by the Guest of Honor committee.

“We reached out to the delegates and discussed with them which books they would like to sell,” Ms. Tugade explained. She added that, as of Sept. 4, there are 52 major, indie, and academic publishers set to join the book fair, seeking business and rights negotiations.

The NBDB will also present various titles translated under its Translation Subsidy Program.

The book fair will run from Oct. 15 to 19. For the full schedule and exhibitions, visit the official website for the Philippines as Guest of Honor at the Frankfurter Buchmesse. — Brontë H. Lacsamana

F. Sionil José heir talks on the potential sale of Solidaridad Bookshop

SCREENGRABS FROM BUSINESSWORLDTV YOUTUBE CHANNEL

SOLIDARIDAD BOOKSHOP, a 60-year-old enterprise founded by the late National Artist for Literature F. Sionil José, is in the midst of a potential buyout. Antonio J. José, the second-generation owner, talked to BusinessWorld about the bookshop’s history, the management changes he has adopted, and the lack of a third-generation successor to the business.

The family is in talks with an interested buyer of the bookshop, although everything is still under negotiation, Mr. José said in a Sept. 3 phone call.

The potential next owner, he said, is a good friend of his father’s and plans to continue operating the bookshop.

Solidaridad was established in June 1965 by F. Sionil José and his wife, Teresita J. José, who both dreamed that Filipinos read more often. It was named after La Solidaridad, the bi-weekly Spanish era newspaper published by the Propaganda Movement, which was led by Filipino intellectuals in Europe such as Jose P. Rizal and Marcelo H. del Pilar.

STATE OF THE BUSINESS
The bookshop was not making money when Mr. José took over the reins from his parents about 12 years ago after living overseas.

“When I took over, and when they passed away [both in 2022], there were a lot of headaches,” he said in a Nov. 5, 2024 interview. “That’s how it was.”

“We can pay the bills, but profit-wise? Hardly,” he added. “It’s hard.”

Mr. José introduced a computer system to manage inventory, a task his mother had done manually in the past.

He also maintained a professional relationship with the staff, in contrast with his mother’s personal approach.

“I’m used to the American way of running a business,” he said. “I know you’re married, that you have kids… but I’m not going to go further than that, like know what you do on weekends.”

“If you’re too close to your employees, professionalism starts to go away,” he added.

Although the bookshop does not have a presence on any e-commerce platforms, it has a Facebook page where patrons can inquire and order books online.

The management changes, Mr. José told BusinessWorld, have led to more stable operations.

“My parents ran it like a small business,” he said last November. “What you see downstairs is how it looked like 59 years ago.”

PROMOTING FILIPINIANA
Solidaridad’s unique selling proposition is its “unmatched” Filipiniana section of 2,795 titles, according to Mr. José.

“A lot of people come up for the Filipiniana section… We have foreign titles [too] but we hardly have any bestseller,” he said.

In line with its vision, the bookshop also promotes Filipino literature by hosting events like book launches and meetings by Poets, Playwrights, Essayists, Novelists (PEN), whose Philippine chapter the elder Mr. José founded in 1957.

It likewise does community outreach through book donations to public libraries and schools.

Mr. José was the only sibling who returned to the Philippines to manage Solidaridad and care for his parents. The rest are overseas.

No one in his family — including his nephews, nieces, and daughters — is interested in continuing the business.

“I’m not getting any younger,” he said. “It was a very hard and sad decision for us to sell it.” — Patricia B. Mirasol

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3 – https://youtu.be/TNOEvbHW5U4?si=EuLAgegLTzvu9-al

Book launches, talks, workshops, discounts and more at the MIBF

MANILABOOKFAIR.COM

THE 2025 Manila International Book Fair (MIBF) is opening today, Sept. 10, and will run until Sept. 14 at the SMX Convention Center Manila, Pasay City.

The MIBF — which is the longest-running and largest book fair in the Philippines, tracing its roots back to the early 1980s — will have over 200 booths over two floors of the SMX, with both levels featuring a mix of booksellers. The second floor will also have booths filled with pens, crafting supplies, and essential school materials, among others. The major bookstores will have booths, as will a myriad of publishers, from academic to romance, technical to graphic novels.

Organizers are suggesting visitors come early for first dibs on the best deals and limited-stock items, bring sturdy tote bags and even a trolley to carry their purchases, and wear comfortable shoes as they work their way through the booths.

The book fair will host over 50 events for both the business side of publishing and for the consumer side. These range from book signings to product demonstrations, panel discussions with industry experts, art workshops, and even movie premieres. Check publishers’ social media pages for the final schedules of their events. One can also visit www.manilabookfair.com/events.

EVENTS
There will be two major movie launches celebrating influential figures in Philippine history. Today will see the launch of Edjop: The Movie, a film based on the life of student activist Edgar Jopson; and on Sept. 14 there will be a special launch of Quezon, the movie chronicling the life of President Manuel L. Quezon.

Today will also see the start of the Tourism and Hospitality Education Summit. Supported by the Department of Tourism (DoT), it will feature industry leaders discussing the future of tourism and hospitality.

Tomorrow, Sept. 11, the National Book Development Board presents the Ink and Impact Series, which features training sessions for teachers, DepEd scopers, and procurement officials, which includes a look at the latest reading remediation tools.

The various talks, lectures, and fora at the book fair range from “From Bayan to Bookshelf: Nurturing Filipiniana in the School Library,” “Building Your Competitive Edge: The Strategic Value of Microcredentials for HEIs,” “Generative AI in Education: Leveraging AI Tools for Quality and Efficiency,” “Mga Aklat sa Panahon ng Disimpormasyon,” “AI and the Author: Writing in the Age of Technology,” to “How to Write a Book.”

Among the authors who will be holding meet and greets and book signings are actress and Batangas Governor Vilma Santos-Recto, National Artist Ricky Lee, TV personality Atom Araullo, and social media “influencer” Mika Salamanca.

The MIBF will also host the Cardinal Sin Book Awards and the 11th Lampara Prize Awards Ceremony.

The Manila International Book Fair is organized by Primetrade Asia, Inc., with support of the National Book Development Board, the Book Development Association of the Philippines, the Philippine Booksellers Association, Inc., the Asian Catholic Communicators, Inc., the Overseas Publishers Representatives’ Association of the Philippines, and the Philippine Educational Publishers Association.

For more information and updates, visit the Manila International Book Fair website www.manilabookfair.com and follow its official Facebook page www.facebook.com/ManilaBookFair.

Arts & Culture (09/10/25)

Jonathan Ching, Juno Santos at MO_Space

TWO EXHIBITIONS are opening at MO_Space on Sept. 13. One is Jonathan Ching’s The World, in a Moment at the Main Gallery, which presents a world of connectedness through an inward process of reflection and deliberate brushstrokes. The other is Juno Santos’ E is the third day of the week! at Gallery 2, which showcases the intersectionality of music and art, summarized in a compendium of details for complete artists’ facts, titles, playing time, and order, interpreted visually through acrylic markers and paint. These shows run from Sept. 13 to Oct. 12 at MO_Space in Bonifacio High Street, Bonifacio Global City, Taguig.

Rizal’s journey in Frankfurt explored in exhibit

AN EXHIBITION at the National Library of the Philippines titled From Calamba to Frankfurt collates letters, drawings, and a first edition copy of Dr. Jose Rizal’s Noli Me Tangere. They are currently on display at the library’s second floor as part of the send-off of the Philippines’ participation as Guest of Honor to this year’s Frankfurt Book Fair. Curated by Lisa Guerrero-Nakpil, the exhibit details Rizal’s time in Frankfurt and how it affected his work, and relationships with the people who fostered him in the German city. It runs until Oct. 17 at the National Library at T.M. Kalaw St., Luneta, Manila.

Imahica Art Gallery hosts three women artists

THE show Triadico: A Tapestry of Diverse Art is opening on Sept. 20 at the Imahica Art Gallery. In it, three women artists — Jinky Rayo, Millet Sacerdoti, and Butchie Diano-Peña — explore the vibrancy of creativity, collaboration, and diverse perspectives. Their works span watercolor, acrylic, gouache, oil, and mixed media. The exhibition runs from Sept. 20 to Oct. 4 at Imahica Art, 2A Lee Gardens, Lee St., Wack Wack, Mandaluyong City.

Reb Belleza mounts exhibit at Alliance Française de Manille

ALLIANCE Française de Manille will be home to an exhibition this month titled The Reflex and the Seven Astronauts, with works by Reb Belleza. The show is a visual narrative spun from the artist’s ongoing poetic novel of the same title. Curated by minimalist artist Gus Albor, it aims to distill Mr. Belleza’s surreal works in an engaging exhibit. It opens on Sept. 20, 5 p.m., at the AFM Gallery at the Alliance Française de Manille, 209 Nicanor Garcia, II, Makati.

Battle of Manila film to screen at Ayala Museum

A FILM screening and talkback session commemorating the Battle of Manila and the end of World War II will take place at the Ayala Museum near the end of the month. Titled “Lest We Forget: 80 Years Since the Battle of Manila,” the program includes the screening of documentary Children of the War, followed by a talk with director Mike Alcazaren and producer Desiree Benipayo. The documentary follows seven survivors of the Battle of Manila. The event is made possible with the support of Memorare Manila 1945 Foundation and Philwar Foundation. It will be held on Sept. 27, 2 p.m., at the Ayala Museum, Makati Ave., Makati City. Regular tickets are P300, and are available via ayalamuseum.org.

Stronger peso seen to cut Meralco rates in Sept.

MERALCO.COM.PH

By Sheldeen Joy Talavera, Reporter

POWER DISTRIBUTOR Manila Electric Co. (Meralco) expects a lower overall rate this month, as a stronger peso is seen to have brought down the cost of power purchased from its suppliers.

“We expect lower generation charge to pull down the overall rate this September,” Meralco Vice-President and Head of Corporate Communications Joe R. Zaldarriaga said in a statement on Tuesday.

The potential easing in the generation charge was triggered by peso appreciation, affecting costs of Meralco’s suppliers that are dollar-denominated, he said.

The peso closed at P57.13 per dollar on Aug. 29, strengthening by nearly P1.19 from its P58.32 finish on July 31, according to the Bankers Association of the Philippines’ reference exchange rate.

The generation charge typically accounts for more than 50% of the monthly electricity bill.

Mr. Zaldarriaga said the potential reduction in the generation charge is projected to more than compensate for the cost recovery claims filed by San Miguel Global Power Holdings Corp. (SMGP) for its terminated contracts.

The Energy Regulatory Commission (ERC) earlier allowed South Premiere Power Corp. (SPPC) and Sual Power, Inc. (SPI) (formerly San Miguel Energy Corp.) to collect P5.1 billion in total cost recoveries, to be implemented over a six-month period starting in September.

The case stemmed from the 2022 joint petitions by SPPC and SPI with Meralco, seeking temporary price adjustments under their 2019 power supply agreements to recover higher fuel costs due to Russia’s invasion of Ukraine.

“Overall, we are optimistic that the reduction in generation charge will be able to offset increase in other bill components,” Mr. Zaldarriaga said.

The potential decline in the September electricity bill would end two straight months of increases.

MERALCO FACES RENEWABLE COSTS
While Meralco seeks to comply with its obligations under the Renewable Portfolio Standards (RPS), the distribution utility (DU) may be exposed to the renewable energy market (REM).

In an open commission meeting on Tuesday, among the agendas of the ERC was the power supply agreement (PSA) between Meralco and San Roque Hydropower, Inc. (SRHI), a subsidiary of SMGP.

After emerging as a winning bidder in Meralco’s competitive selection process, SRHI is supposed to supply 340 megawatts (MW) of mid-merit contract capacity, starting Feb. 26 at a rate of P6.95 per kilowatt-hour (kWh).

However, in a decision dated Dec. 3, 2024, the ERC approved only P5.1908 per kWh, a rate lower than what was proposed under the supply deal.

Alvin Jones M. Ortega, acting director for ERC Regulatory Operations Service, cited Meralco’s comment in May informing the Commission of the possible termination of the PSA with SRHI.

SRHI sought reconsideration of the ERC’s decision to impose a different rate and limit the sourcing of contracted capacity to eligible renewable energy (RE) facilities.

ERC Chairperson and Chief Executive Officer Francis Saturnino C. Juan said the delays in acting upon Meralco’s application may result in purchasing RE certificates (RECs) in the market.

“If Meralco is unable to source renewable energy generation, it will be compelled to purchase RE certificates at prices that could reach the established cap,” Mr. Juan said.

Under the RPS, DUs, electric cooperatives (ECs) and retail electricity suppliers are required to source a certain portion of their energy supply from eligible RE resources.

Aside from entering into power supply deals, participants may comply with their RPS obligations by buying RECs, a certificate equivalent to a one-megawatt-hour of RE generation at a price capped at P241 each.

“The longer the Commission takes to act on this application, the more Meralco may be exposed to additional costs in order to comply with its RPS obligation by purchasing what are called RE certificates from the RE market,” Mr. Juan said.

Meralco’s majority owner, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.

Hastings Holdings, Inc., a unit of the PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls.

New Banksy mural at London’s High Court shows judge striking protester

BANKSY.CO.UK

LONDON — British street artist Banksy has painted a mural on London’s High Court depicting a judge beating a protester, possibly in reaction to the arrest of hundreds of demonstrators supporting the banned group Palestine Action.

The artist, whose identity has never been confirmed, published pictures of the artwork on his Instagram page on Monday.

The stenciled mural shows a bewigged judge using a gavel to hit a protester holding a blood-splattered placard who has been knocked to the ground.

It was painted after almost 900 people were arrested at a demonstration in London on Saturday against Palestine Action’s ban. That followed hundreds of other arrests of the group’s supporters in recent weeks.

Britain banned, or proscribed, Palestine Action as a terrorist organization in July, making it a crime to belong to or support the group, after some of its members broke into a Royal Air Force base and damaged military planes.

Britain’s criminal and judicial system has come under attack from both sides of the political spectrum, with critics saying the right to peaceful protest is under threat.

Although Banksy never comments on his artwork, he has created previous work in support of Palestinian causes, including murals on the West Bank separation barrier, concentrated around Bethlehem.

London’s Royal Courts of Justice, which houses the High Court, is a Grade One-listed building, meaning it has the highest level of historical significance and protection. Photos on Monday showed barriers had already been installed around the artwork. — Reuters

SMC seeks bondholder consent to use NAIA shares as loan collateral

NEWNAIA.COM.PH

By Alexandria Grace C. Magno

SAN MIGUEL Corporation (SMC) has initiated a “consent solicitation” to its bondholders to amend the terms of several outstanding bonds, a move aimed at facilitating project financing for its subsidiary, New NAIA Infra Corp., which is undertaking the rehabilitation and operation of the Ninoy Aquino International Airport (NAIA).

The company is asking for permission to use shares it owns in its NAIA subsidiary as collateral for a loan, and to adjust certain definitions in its bond agreements to allow for this.

In a disclosure on Monday, the company requested bondholders’ consent to waive specific negative covenants and approve amendments to trust agreements, which would enable its subsidiary, San Miguel Holdings Corp., to grant security interests related to the project financing.

The proposed changes included increasing the ownership threshold in the definition of “material subsidiary” from 25% to 30%, and expanding the “permitted liens” definition to include exceptions for project financing liens.

SMC aims to align the bond terms with common project finance structures, allowing the company and its material subsidiaries to support infrastructure projects while ensuring the debt remains non-recourse to them.

The company said that these changes are essential to sustain its ongoing growth and involvement in large-scale and greenfield projects, including joint ventures and minority ownership.

Meanwhile, Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message that bondholders can look at the consent solicitation in two ways.

“If bondholders agree to the solicitation, they’re basically helping SMC raise money easier for its projects, which could make the company stronger and better able to pay its debts down the line. That’s the upside,” he said.

“On the flip side, it also means bondholders give up some of their safety nets, since SMC can use the airport shares as collateral,” he said.

Mr. Limlingan added that SMC’s strong portfolio and relatively healthy cash flow should ease any concerns.

The consent solicitation involves several bond issues, including the 5.7613% Series C bonds maturing in 2027; 7.1250% Series G bonds due in 2028; 7.4650% Series I bonds due in 2027; 5.2704% Series J bonds due in 2027; 5.8434% Series K bonds due in 2029; 7.4458% Series L bonds maturing in 2028; 7.8467% Series M bonds due in 2029; 8.4890% Series N bonds due in 2032; 7.2584% Series O bonds maturing in 2033; and 7.7197% Series P bonds due in 2034.

SMC’s consent solicitation period is scheduled from noon of Sept. 8 to noon of Oct. 8, with the results to be published on the Philippine Dealing & Exchange Corp. (PDEx).

“Only holders of the Fixed Rate Bonds on Record Date may participate in the consent solicitation,” the company noted.

SMC shares rose by 1.13% at P58 apiece on Tuesday.

Gov’t fully awards reissued bonds at lower rates

BW FILE PHOTO

THE GOVERNMENT made a full award of the reissued seven-year Treasury bonds (T-bonds) it offered on Tuesday at a lower average rate on strong demand, with investors looking to lock in high yields as they expect further monetary easing here and in the United States.

The Bureau of the Treasury (BTr) borrowed P30 billion as planned via the reissued seven-year bonds it auctioned off, with total bids reaching P79.666 billion or nearly triple the amount on offer.

This brought the total outstanding volume for the bond series to P386.7 billion, the Treasury said in a statement.

It added that it made a full award as the papers fetched an average yield that was lower than what was quoted at the previous auction and the comparable secondary market rate.

The reissued bonds, which have a remaining life of four years and 10 months, were awarded at an average rate of 5.772%. Accepted yields ranged from 5.76 to 5.78%.

The average rate of the reissued papers was 12.4 basis points (bps) lower than the 5.896% fetched for the series’ last award on July 1 and was also 60.3 bps below the 6.375% coupon for the issue.

This was likewise 2 bps lower than the 5.792% fetched for the same bond series and 4.2 bps below the 5.814% quoted for the five-year paper — the benchmark tenor closest to the remaining life of the issue — at the secondary market before Tuesday’s auction, based on the PHP Bloomberg Valuation Service Reference Rates data provided by the BTr.

“The T-bond average auction yield was lower amid the continued effects of the widely expected 25-bp BSP (Bangko Sentral ng Pilipinas) rate cut on Aug. 28,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Signals from monetary authorities that another reduction in benchmark rates is possible within this year “led more investors to lock in yields before they go down further in the coming months,” he said.

The Monetary Board last month lowered benchmark borrowing costs by 25 bps for a third consecutive meeting to bring the target reverse repurchase rate to 5%. It has now slashed rates by a cumulative 150 bps since the start of its easing cycle in August 2024.

BSP Governor Eli M. Remolona, Jr. said that the policy rate is now at a “sweet spot” in terms of both inflation and output, but left the door open for one last cut this year to support growth if needed, which would likely mark the end of its current easing cycle.

The Monetary Board’s last two meetings this year are scheduled in October and December.

The government also saw high demand for its offering following the maturity of P288.659 billion worth of bonds on Tuesday as market players sought to reinvest their cash at “still much higher yields,” Mr. Ricafort said.

“Demand is noticeably higher compared to last week, likely due to the 10-60 maturity today encouraging market players to buy more than usual. Adding to this is the fall in yields, which corroborates the consistent increase in demand these past few weeks,” a trader said in a text message.

The drop in comparable US Treasury yields due to growing bets of a US Federal Reserve cut next week after weak jobs data recently also affected local rates, Mr. Ricafort added.

Traders’ expectations of more aggressive Fed easing are gradually increasing. Pricing of Fed funds futures on Tuesday implied an 11.6% probability of a jumbo 50-bp rate cut at the Fed’s September meeting, compared with an 11% chance on Monday, according to the CME Group’s FedWatch tool, with a cut of at least 25 bps viewed as a certainty, Reuters reported.

US job growth weakened sharply in August and the unemployment rate increased to a nearly four-year high of 4.3%, confirming that labor market conditions were softening and sealing the case for a Fed rate cut next week.

Investors were also bracing for US data revisions that could show the jobs market in worse shape than initially thought, shoring up the case for even deeper Federal Reserve interest rate cuts.

Economists anticipate a downward revision of as much as 800,000 jobs, which could signal that the Fed is behind the curve in efforts to achieve maximum employment.

Investors are now awaiting the US producer price data on Wednesday and consumer price data on Thursday for further clues into the Fed’s policy path.

The BTr is looking to raise P220 billion from the domestic market this month, or P100 billion via Treasury bills and P120 billion through T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at P1.56 trillion or 5.5% of gross domestic product this year. — A.M.C. Sy with Reuters

Rick Davies, Supertramp co-founder and singer, 81

SUPERTRAMP.COM

LONDON — Rick Davies, the Supertramp vocalist and songwriter behind some of the British rock band’s best known hits such as “Goodbye Stranger” and “My Kind Of Lady,” has died at the age of 81, the band said on Monday.

Mr. Davies passed away on Saturday after a more than a decade-long battle with multiple myeloma, a type of blood cancer.

“As co-writer, along with partner Roger Hodgson, he was the voice and pianist behind Supertramp’s most iconic songs, leaving an indelible mark on rock music history,” a statement from Supertramp said. “His soulful vocals and unmistakable touch on the Wurlitzer became the heartbeat of the band’s sound.”

Born in Swindon, southwest England, in 1944, Davies grew up with a love of jazz, blues, and the piano, and helped form Supertramp in 1970 after placing a magazine advert looking for musicians.

The group’s Grammy-winning 1979 album Breakfast in America made them one of the era’s cultural touchstones, blending elements of classic rock and pop and winning praise from Rolling Stone magazine, which called the work “textbook-perfect.”

Mr. Davies, who also played the keyboards and harmonica, carried the band forward after Mr. Hodgson’s departure in 1983 but disbanded the group by the end of the decade.

“Beyond the stage, Rick was known for his warmth, resilience, and devotion to his wife Sue, with whom he shared over five decades,” the band said in their statement.

“Rick’s music and legacy continue to inspire many and bear testament to the fact that great songs never die, they live on.” — Reuters

Analysts see SM Prime’s US dollar bond issue as strategic funding for expansion

SM City Chengdu in Chenghua District of Chengdu, Sichuan province, China — SMSUPERMALLS.CN

By Beatriz Marie D. Cruz, Reporter

SM PRIME HOLDINGS, INC.’S (SMPH) planned issuance of US dollar-denominated senior notes aligns with the need to diversify its funding sources, as it defers the initial public offering (IPO) of its planned real estate investment trust (REIT), analysts said.

“SMPH’s plan to issue US dollar-denominated senior notes and tap the foreign debt market could be linked to favorable market conditions for dollar-denominated bonds, providing access to global investors at potentially lower interest rates compared to local borrowing options,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“With the REIT IPO postponed, issuing bonds helps maintain liquidity and financing flexibility, especially for ongoing projects,” Mr. Limlingan added.

On Monday, SMPH told the stock exchange that it had mandated a group of global and domestic banks to arrange fixed-income investor meetings for its planned dollar bond issuance.

The company has allotted over P150 billion for 16 major redevelopments and 12 new lifestyle malls from 2026 to 2030. It also has plans to open a new mall in Xiamen, China next month and in Fujian by 2027.

The SM Prime reclamation project in Pasay, called Pasay 360, has an investment of P25 billion.

“SMPH is one of the largest property developers in Southeast Asia and has ambitious growth plans, so it makes sense for them to diversify their funding mix by tapping the offshore bond market,” China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message.

“Given the scale of the company’s capex (capital expenditure) requirements for mall development and redevelopment as well as for the completion of the Pasay 360 reclamation project, it helps to have active financing options in both the peso and dollar credit markets,” he added.

In August, SMPH said it would put on hold the supposed $1-billion IPO of its REIT to beyond 2026 amid unfavorable market conditions.

Mr. Colet said that SMPH may consider a REIT IPO contingent on lower interest rates and a better stock market performance.

“They may revisit that plan down the road when interest rates are much lower, our stock market is stronger, and valuations are better. It is also advisable for potential REIT candidates to wait for the SEC’s (Securities and Exchange Commission) proposed reforms to the REIT rules as that could make listing more attractive.”

Mr. Limlingan also cited strong investor appetite for REITs, a favorable macroeconomic environment, and a recovery in property market trends as key factors before the company can proceed with its REIT IPO.

SM Prime Chief Finance Officer John Nai Peng C. Ong earlier said the company was also considering the use of green financing in its fundraising initiatives.

SMPH recorded an 11% increase in its first-half net income to P24.5 billion, with consolidated revenue growing by 5% to P68 billion amid higher rental income, real estate sales, and ancillary revenues.

SM Prime shares on Tuesday were up by 1.28% or 30 centavos to close at P23.70 apiece.

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