Facebook Instagram Linkedin X Youtube
Home Blog Page 542

China says Philippines distorted facts about incident near disputed atoll

FILE PHOTO of a China Coast Guard vessel fires a water cannon at the BRP Datu Pagbuaya near Thitu Island, in the latest flare-up between Manila and Beijing in the disputed South China Sea. — PCG

BEIJING — China’s defense ministry accused the Philippines on Wednesday of distorting the facts about an incident involving the Chinese coastguard and Filipino fishermen near a South China Sea shoal, a charge Manila strongly rejected.

The Philippine coastguard said over the weekend that three Filipino fishermen were injured and two fishing vessels damaged when Chinese coastguard ships cut their anchor lines and fired water cannon near the Sabina Shoal on Friday, actions the Philippine defense secretary denounced as “dangerous” and “inhumane”.

The Chinese ministry defended its coastguard’s actions as “reasonable, lawful, professional and restrained”, and vowed to “take strong and effective measures” in response to “all acts of infringement and provocation”, according to a statement released on its social media account.

“The Philippine side amassed a large number of ships in an organized and premeditated manner to illegally intrude” into the atoll’s lagoon, the ministry said. “Philippine personnel even threatened Chinese coastguard on site with a knife,” it added.

Philippine defense ministry spokesperson Arsenio Andolong maintained that Manila has evidence to counter China’s assertions.

“The facts are not distorted. They are documented, timestamped, and corroborated by video recordings, vessel logs, and on-site reporting by the Philippine Coast Guard,” Mr. Andolong said in a statement.

“The Philippines is not hyping the issue, the facts speak for themselves. These are aggressive and excessive actions of an encroaching state,” he added.

Sabina Shoal, which China refers to as Xianbin Reef and the Philippines as the Escoda Shoal, lies in the Philippines’ exclusive economic zone 150 kilometers (95 miles) west of Palawan province.

China claims almost the entire South China Sea, a waterway supporting more than $3 trillion of annual commerce. The areas Beijing claims cut into the exclusive economic zones of Brunei, Indonesia, Malaysia, the Philippines and Vietnam.

An international arbitral tribunal ruled in 2016 that Beijing’s sweeping claims had no basis under international law, a decision China rejects.— Reuters

No evidence alleged Bondi gunmen received military training in the Philippines, says security adviser

President Ferdinand R. Marcos, Jr. (left) shakes hands with retired military general Eduardo M. Año after taking his oath as national security adviser on Jan. 14. — PRESIDENTIAL COMMUNICATIONS OFFICE

MANILA — There is no evidence indicating that the two suspects involved in the Bondi Beach attack received any form of military training while in the Philippines, the Philippines’ National Security Adviser said on Wednesday.

In a statement, Eduardo Año said that a mere visit to the country does not substantiate allegations of terrorist training, and the duration of their stay would not have permitted any meaningful or structured training.

The alleged father-and-son gunmen opened fire on a Hanukkah celebration at Sydney’s Bondi Beach on Sunday, killing 15 in an attack that shocked Australia and heightened fears of antisemitism and violent extremism.

Mr. Año said the government was investigating the two men’s travel from November 1 to 28 and coordinating with Australian authorities to determine the purpose of the visit, dismissing media reports portraying the southern Philippines as a hotspot for violent extremism as “outdated” and “misleading”.

Immigration records show the pair landed in Manila and travelled to Davao City in Mindanao, a region long-plagued by Islamist militancy, before the attack that Australian police say appeared to have been inspired by Islamic State.

The men stayed mostly in their rooms for almost a month at a budget hotel in Davao, MindaNews reported.

The father and son checked in at noon on November 1 and rarely went out for more than an hour, a hotel staffer told the online news outlet, which is based in Mindanao. Hotel staff said the two kept to themselves, never spoke to other guests, or had visitors. They were only seen walking nearby and never taking rides or getting picked up in front of the hotel.

Reuters could not immediately verify the report. Calls to a hotel officer and Davao police went unanswered.

Since the 2017 Marawi siege, a five-month battle in which the Islamic State-inspired Maute group seized the southern city and fought government forces, Philippine troops have significantly degraded ISIS-affiliated groups, Mr. Año said.

“The remnants of these groups have been fragmented, deprived of leadership, and operationally degraded,” he added.— Reuters

Banks’ real estate exposure slips

Buildings and homes are seen in Pasig City, Jan. 12. — PHILIPPINE STAR/MIGUEL DE GUZMAN 

By Katherine K. Chan

PHILIPPINE BANKS and trust entities’ exposure to the property sector slipped at the end of September, amid a decline in real estate investments, Bangko Sentral ng Pilipinas (BSP) data showed.

The industry’s real estate exposure ratio stood at 19.54% as of end-September, falling from 19.61% at end-June and 19.55% in the same period a year ago.

The BSP monitors lenders’ exposure to the real estate industry as part of its mandate to maintain financial stability.

Philippine banks and trust departments have extended P3.451 trillion in total investments and loans to the real estate sector as of the third quarter, up by 7.19% from P3.22 trillion in the previous year.

Based on central bank data, real estate loans climbed by an annual 8.9% to P3.096 trillion as of September from P2.843 trillion a year ago.

Broken down, residential real estate loans rose by 11.4% to P1.188 trillion, while commercial real estate loans grew by 7.41% to P1.909 trillion.

Past due real estate loans reached P158.619 billion at end-September, 7.06% higher than the P148.157 billion seen a year earlier.

Past due residential real estate loans edged up by 5.16% to P110.379 billion, while past due commercial real estate loans increased by 11.7% to P48.24 billion.

Meanwhile, gross nonperforming real estate loans amounted to P116.086 billion in the nine-month period, up 4.06% from P111.554 billion a year ago.

This brought the gross nonperforming real estate loan ratio down to 3.75% as of September from 3.92% in the comparable year-ago period.

BSP data also showed that the banking sector’s real estate investments stood at P354.749 billion at end-September, 5.75% lower than the P376.406 billion recorded last year.

This, as debt securities slipped by 5.51% year on year to P232.496 billion, while equity securities went down by 6.22% to P122.253 billion.

“Banks’ real estate exposure eased to 19.54% at end-September from 19.61% in June, reflecting lower investments in property-linked securities, muted project launches, and cautious lending amid elevated NPLs (nonperforming loans) and high borrowing costs,” Union Bank of the Philippines Chief Economist Ruben Carlo O. Asuncion said in a Viber message.

Jonathan L. Ravelas, a senior adviser at Reyes Tacandong & Co., said weak property demand may have weigned on the industry’s real estate exposure ratio last quarter. 

“Banks are rationalizing their real estate exposure because non-performing loans are rising and developers are slowing launches amid weak demand,” he said via Viber. “The BSP’s tighter oversight adds to the caution.”

However, Joey Roi H. Bondoc, director and head of research at Colliers Philippines, noted that bank lending to the real estate sector typically slows in the third quarter. He noted the recent drop in lending was “not significant.”

“We have yet to see a substantial take-up in (the) Metro Manila condominium market, especially in the pre-selling sector,” he told BusinessWorld in a phone interview. “And it only means that banks are still wary to lend to the real estate sector, to the condominium sector at this point. So that’s why, if you look at the exposure of banks to real estate, it’s not a significant increase or decrease. It’s almost (flat), almost the same.”

A recent Colliers Philippines report showed that residential take-up soared by 108% in the third quarter, equivalent to 5,900 units from 2,800 units in the previous quarter. This was the highest take-up since the second quarter of 2023.

For the fourth quarter, Mr. Asuncion said the banking industry will likely grant more loans to the real estate sector following the central bank’s recent rate cuts and increasing demand for residential properties and leasing.

“Exposure ratios should remain broadly stable, with banks balancing growth opportunities against regulatory limits,” he added.

The BSP last week reduced borrowing costs by another 25 basis points (bps), bringing the key rate to its lowest in over three years at 4.5%. It has so far delivered 200 bps in cuts since August last year.

However, Mr. Bondoc said that still-high mortgage rates are offsetting the supposed boost from lower benchmark interest rates.

“But the problem is… the central bank has been cutting interest rates but there is no corresponding decline in mortgage rates by the banks, which again indicates that banks are still a little hesitant to lend to this market,” he said.

Still, Mr. Bondoc noted that holiday bonuses, higher remittances and the peso depreciation will likely spur demand in the domestic residential market.

“Q4 is a strong quarter for condominium take-up because of bonuses for local employees and remittances from the Philippines. And then peso’s depreciating, so it might be a good opportunity for OFWs (overseas Filipino workers) to send home more money and then finally, for example, reserve a condominium unit or buy a house and lot unit in their home provinces,” Mr. Bondoc said.

The peso hit the P59-a-dollar level several times in November and slumped to a fresh low of P59.22 against the greenback on Dec. 4.

House approves bill amending bank secrecy law on second reading

BW FILE PHOTO

THE HOUSE of Representatives on Monday approved on second reading a bill amending the Philippines’ decades-old bank secrecy law, allowing the Bangko Sentral ng Pilipinas (BSP) to look into the accounts of bank officers and employees involved in illegal financial activities.

In a voice vote, congressmen approved House Bill No. 6707 that would “lift the barriers in the effective investigation and prosecution of corrupt or illegal financial actions of stockholders, owners, directors, trustees, officers or employees of entities supervised and regulated by the BSP.”

The bill also seeks to curb tax evasion, money laundering, and other financial crimes, and address the unintended consequences of bank secrecy. It also aims to align Philippine laws with international standards on transparency in financial transactions.

Under the bill, the BSP is allowed to look into bank deposits of the stockholder, owner, director, trustee, officer or employee of a BSP-regulated entity, as well as any of the conspirators of the person involved but only if the Monetary Board determines there is “reasonable ground” that fraud, serious irregularity or unlawful activity is being committed.

“The authority of the BSP to inquire and examine deposits shall also apply in the course of its investigation of closed banks,” the bill stated.

Under the measure, the BSP is also allowed to examine the foreign currency deposits in banks operating in the Philippines, including offshore branches of domestic banks, but not in nonstock savings and loan associations that serve only their members.

The bill defines deposits as money received by a bank for a commercial, checking, savings, time or thrift account as evidenced by a passbook, certificate of deposit or other evidence of deposits.

“The results of the inquiry or examinations conducted by the BSP shall be for its exclusive use and shall not be made available to any person or entity, whether public or private, except to the Securities and Exchange Commission, Philippine Deposit Insurance Corp., Anti-Money Laundering Council, Department of Justice and the Courts,” the bill said.

The measure includes a safe harbor clause that exempts banks or financial institutions and their directors, officers or employees from any action, claim, demand or liability for acts done in compliance with a BSP order on the inquiry and examination of bank deposits.

It also forbids the use of the bank secrecy law for persecution, harassment, or hindering business competition.

Violators of the proposed law may face imprisonment of two to 10 years, and fines ranging from P50,000 to P2 million, or both, depending on the court’s decision.

“Bank secrecy is also the remaining obstacle to implementing a general tax amnesty,” Albay Rep. Adrian E. Salceda, vice-chairman of the House Banks Committee, told BusinessWorld in a Viber message in Filipino.

“The Department of Finance and other agencies fear that if a general tax amnesty is granted while absolute bank secrecy remains, those who avail of it will find it easy to hide their assets,” he added.

The measure is among President Ferdinand R. Marcos, Jr.’s legislative wishlist for the 20th Congress. A similar bill cleared the House in the previous Congress but failed to advance in the Senate.

In a report for its Article IV Consultation with the Philippines released earlier this week, the International Monetary Fund (IMF) said the Philippines should continue to prioritize advancing efforts to combat money laundering and terrorist financing.

“Amendments to the Bank Deposits Secrecy Laws in line with international good practices should be pursued to enhance the BSP’s supervisory powers and strengthen AML/CFT (anti-money laundering and combating the financing of terrorism) supervisory effectiveness,” the IMF said.

“Strengthening the AML/CFT frameworks is also important to support broader anti-corruption efforts and effectively combat the laundering of proceeds of corruption,” it added.

In February, the Philippines exited the Financial Action Task Force’s (FATF) “gray list” or the list of jurisdictions under increased monitoring for money laundering.

The FATF is set to reassess the country in 2027, where it will verify whether the country’s anti-money laundering measures are being sustained and still in place. — Kenneth Christiane L. Basilio

IPO activity stalls in Philippines amid market slump and fallout from flood control scandal

BW FILE PHOTO

By Alexandria Grace C. Magno

INITIAL PUBLIC OFFERINGS (IPOs) on the Philippine Stock Exchange (PSE) slumped to just two this year as uncertainty over US tariffs and a high-profile corruption scandal weighed on investor sentiment, according to analysts.

Only two companies completed their IPOs this year, one less than in 2024. It was also lower than the six IPOs expected this year by PSE President and Chief Executive Officer Ramon S. Monzon.

“There was too much uncertainty and disruption this year. First it was Trump and his policies, then the midterm elections, and now the flood control scandal,” China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message.

“Some potential IPO candidates also backed out because market valuations were not enticing enough,” he added.

Top Line Business Development Corp., a fuel distributor and retailer based in Cebu, completed the first IPO of the year on April 8, while Maynilad Water Services, Inc. made its market debut on Nov. 7.

Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said the weak IPO listing performance this year is mainly due to the poor overall market conditions.

“Year-to-date, the local market is down by 7.25%. Net value turnover is averaging P5.92 billion per day. The numbers show that investors don’t have that much confidence in the market given the headwinds that we are facing,” Mr. Tantiangco said.

“Without confidence, there is no appetite. This in turn is what makes companies hesitant on raising funds in the stock market.”

Recent cuts by the Bangko Sentral ng Pilipinas (BSP) have reduced the benchmark rate to 4.5%, the lowest in over three years.

“Interest rates are currently declining, in turn, giving companies a good alternative if they want to raise capital,” Mr. Tantiangco said.

Unicapital Securities, Inc. Equity Research Analyst Peter Louise D. Garnace said 2025 was an extremely volatile year for the markets due to local and global headwinds.

“This in turn dampened investor confidence, positioning the Philippine equities market as the region’s worst-performing index. This myriad of uncertainties compelled companies to defer their IPO plans, as they wait for more favorable market conditions,” he said in a Viber message.

UNDERVALUATION ISSUES
AP Securities, Inc. Equity Research Analyst Shawn Ray R. Atienza said that the PSE fell short of its IPO target this year amid low equity valuations.

“The broader market took a big hit from the recent delistings valuation-wise, as market perception plays a key role on where the overall market will be priced in. Further delistings could exacerbate the undervaluation issue facing the local market,” Mr. Atienza said in a Viber message.

For companies, undervaluation would make it unlikely the IPO would meet its funding goal, undermining plans to finance future expansion, he said.

Three companies have delisted from the stock exchange this year, namely, Keppel Philippines Holdings, Inc., Philab Holdings Corp., and 8990 Holdings, Inc.

“Subdued market sentiment and thin liquidity have made equity valuations weak and underwriting windows narrow (many issuers delayed plans), while higher interest rates and global volatility pushed risk-adjusted return requirements up and discouraged listings

that would likely be poorly priced,” Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce said in a Viber message.

Last August, Hann Holdings, Inc. deferred its P13-billion IPO, which was originally scheduled for listing in September, saying the current market environment was “not conducive for a successful offering that would best reflect the value and prospects of the company.”

Several companies have also shelved their IPO plans, including SM Prime Holdings’ real estate investment trust and Razon-led Prime Infrastructure Capital, Inc.

“Regulatory and market-structure frictions such as public-float rules, disclosure burdens, and limited investor depth combined with corporate choices to refinance privately or pursue M&A (mergers and acquisitions) and delisting routes, have further siphoned supply,” Mr. Arce said.

Earlier this month, the Securities and Exchange Commission (SEC) released a draft memorandum circular proposing a tiered minimum public ownership framework for companies seeking to list shares on the stock exchange.

Under the proposed rules, a 12% public float level would be required for companies with an expected market value of over P150 billion, while a 33% float would be required for companies with a market capitalization of P500 million or less.

These rule changes could pave the way for financial technology (fintech) giant GCash’s planned IPO next year. Earlier, GCash said the current 20% minimum public float requirement is too high, especially as the IPO would peg the company’s value at $8 billion.

“This year, we’ve seen the PSE relax its minimum public float requirement for companies offering P5 billion or more in the market. But even that was not enough. Even if the PSE and SEC make more changes next year, if the confidence problem is not resolved, IPO listings could remain limited next year,” Mr. Tantiangco said.

CORRUPTION MESS
The government’s sweeping corruption crackdown since August has weighed on economic growth. Allegations that government officials, lawmakers and private contractors received billions in kickbacks also hurt consumer and investor confidence, as reflected in the stock market slump.

“Locally, the impact of a high-profile corruption scandal further dampened economic growth and investor confidence, compounding the challenges faced by potential issuers. As a result, companies have opted to delay or defer listing plans, given the difficulty of achieving favorable pricing in such conditions,” BDO Securities First Vice-President and Head of Marketing and Institutional Sales John Tristan Guillermo D. Reyes said in an e-mailed statement.

Global trade tensions arising from the US tariffs and geopolitical uncertainty have also weighed on investor confidence.

“Aside from easing global trade uncertainties, we believe that the most critical local headwind is the pervasive governance risk, particularly the fallout from corruption crackdowns on major public works projects. A credible and transparent resolution, coupled with a full resumption of public infrastructure spending, is essential to restore institutional trust and investment inflows,” Mr. Garnace said.

For IPO listings to be “vibrant” again, Mr. Tantiangco said investor confidence needs to return.

“For this, we need progress with respect to the challenges that we are currently facing: corruption issues, global trade frictions, and most importantly, a re-acceleration of our local economy’s growth,” Mr. Tantiangco said.

For 2026, analysts expect IPOs from utilities, infrastructure companies, real estate investment trusts (REITs), and fintech firms.

“We might have at most four IPOs in 2026. The most likely candidates are REITs and defensive plays,” Mr. Colet said.

He noted proposed amendments to the REIT rules and lower interest rates could encourage certain sponsors to push through with the IPO for their REITs.

Mr. Garnace said he sees some companies in fintech, gaming, infrastructure, and renewable energy that may tap capital markets in 2026.

“The strongest IPO pipeline likely sits in utilities and infrastructure like water, tollroads, renewables, as well as energy and resources, and selected consumer/logistics and gaming/resorts names that have strategic scale and clearer cash-flow stories,” Mr. Arce said.

However, Mr. Arce said more reforms, such as time-bound transitional rules, tax and investor incentives and measures to deepen post-IPO trading, may be needed to lift IPO activity next year to beyond 2025 levels.

AMRO says impact of BSP rate adjustments are delayed, limited

BW FILE PHOTO

THE TRANSMISSION of the Bangko Sentral ng Pilipinas’ (BSP) monetary policy adjustments into the financial system remains delayed and limited, a report from the ASEAN+3 Macroeconomic Research Office (AMRO) showed.

“Since the introduction of an interest rate corridor (IRC) in 2016, the Philippines has improved monetary policy transmission, with short-term market rates responding more quickly to policy rate changes,” AMRO Senior Economist Andrew Tsang and Associate Economist Chiang Yong “Edmond” Choo said in an analytical note released on Wednesday.

In June 2016, the central bank adopted an IRC system, which served as its framework for guiding short-term market rates towards its key interest rate or the target reverse repurchase rate. The system introduced the overnight lending facility and the overnight deposit facility.

“However, transmission remains slow and limited for long-term bond yields, deposit rates, and bank lending rates — especially for MSME (micro, small, and medium enterprises) and consumer loans,” Mr. Tsang and Mr. Choo added.

Based on the report, loan rates are usually adjusted within half a month after policy rate changes, faster than those seen with deposit rates.

Meanwhile, AMRO noted that banks’ savings deposit rate and longer-term bond yields react better to policy easing than rate hikes.

“Asymmetric monetary transmission for bank interest rate channels between tightening and easing cycles is both observable and statistically significant, and is mainly attributed to banks’ business decisions,” it said.

Last week, the central bank slashed the benchmark interest rate by 25 basis points (bps) for a fifth straight meeting, bringing it to an over three-year low of 4.5%. This came amid a slowdown in third-quarter growth and a clouded growth outlook in the medium term.

BSP Governor Eli M. Relomona, Jr. has said that rate cuts typically have a one-and-a-half to two-year lag before reflecting on the economy.

Such gaps, the AMRO economists said, call for reforms in the country’s credit information systems and capital markets, among others, to realize monetary policy decisions’ economic impact.

“This underscores the need for further reforms, including strengthening credit information systems to actively integrate them into banks’ lending practices, as well as deepening capital markets by channeling more domestic and foreign savings into those markets, syncing regulations across investment schemes, reducing withholding taxes to broaden the investor base, and advancing regional financial integration, so as to enhance the effectiveness and timeliness of monetary policy,” Mr. Tsang and Mr. Choo said. — Katherine K. Chan

Vena Energy lines up P7-billion foreign funding for 300-MW Ilocos solar project

STOCK PHOTO | Image by Oleksandr Ryzhkov from Freepik

SINGAPORE-BASED Vena Energy on Wednesday said the financing secured for its 300-megawatt (MW) solar project in Ilocos Norte amounts to $210 million (about P7 billion), following its earlier announcement that the project had reached financial close.

The company previously said the Opus Solar Energy Project was fully financed by a group of international banks but did not disclose the funding amount at the time.

The $210-million loan will support the development of the ground-mounted solar facility in Ilocos Norte, which is expected to supply electricity to around 445,000 households once operational.

A filing with the Department of Environment and Natural Resources places the total project cost at about P15 billion, indicating that the financing will cover a substantial portion of the development cost.

The project marks the first US dollar-denominated project financing in the Philippine renewable energy sector funded entirely by foreign lenders.

“As the first US dollar-denominated project financing in the Philippines’ renewable energy sector funded entirely by international banks, this transaction underscores Vena Group’s leadership to mobilize cross-border capital at scale to accelerate the country’s clean energy transition,” Vena Group Chief Investment Officer Simone Grasso said in a statement.

The participating banks were BNP Paribas (Singapore), Crédit Agricole Corporate and Investment Bank (Singapore), DBS Bank Ltd., Intesa Sanpaolo S.p.A. (Hong Kong), MUFG Bank Ltd. (Singapore), Standard Chartered Bank (Singapore) Ltd., and Sumitomo Mitsui Banking Corp.

The solar facility forms part of the Department of Energy’s Green Energy Auction Program 2, with commercial delivery targeted by 2026.

Vena Energy operates six renewable power facilities in the Philippines with a combined installed capacity of 330.8 MW across Negros Occidental, Rizal, Leyte, Ilocos Norte, and Bukidnon. — Sheldeen Joy Talavera

Federal Land divests 52% stake in Crown Central

Palma Real Residential Estates in Biñan, Laguna. — PALMAREAL.ORG

FEDERAL LAND, INC. (FLI), the property arm of GT Capital Holdings, Inc., and its subsidiary Horizon Land Property Development Corp. have sold their combined 52% stake in Crown Central Properties Corp. to Crown Equities, Inc. (CEI) for a total of P73.48 million.

In a disclosure to the stock exchange on Wednesday, CEI said it acquired 62.5 million common shares from Federal Land, valued at P68.12 million, and 5 million common shares from Horizon Land, valued at P5.37 million. The acquisition was approved by CEI’s board on Dec. 16 and remains subject to agreed closing terms and conditions.

Following the transaction, Crown Equities now owns 100% of Crown Central Properties, which was previously a joint venture between Crown Equities and the FLI group. The company develops residential and commercial projects.

Crown Central was originally established in 1996 as a joint venture between Crown Equities and Solid Share Holdings — now Federal Land — to develop Palma Real Residential Estates in Biñan, Laguna. In 2003, it entered into a memorandum of agreement with Sta. Lucia Realty and Development, Inc., under which Crown Central contributed the land and initial improvements while Sta. Lucia completed the development of the subdivision.

Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., described Federal Land’s exit as a strategic capital-recycling move rather than a defensive retreat, intended to strengthen the company’s position in a disciplined, opportunity-focused real estate market.

“Crown Central is largely associated with mixed-use or mall-centered developments, and divesting from it suggests Federal Land is reassessing where its capital and management attention can generate the strongest long-term returns,” he said.

He added that, given Federal Land’s broader exposure to residential, office, hospitality, and large-scale mixed-use projects, the exit is unlikely to materially affect its overall growth trajectory. “Instead, it reflects a strategic pruning of non-core or lower-priority assets amid a more selective property market environment,” he said.

Mr. Arce noted the divestment could free up capital and simplify the group’s structure, enabling Federal Land to redirect resources to projects with clearer demand, stronger margins, and better long-term potential.

“The transaction also opens up new strategic opportunities. Federal Land could redeploy proceeds into land banking in growth corridors, partnerships with international hotel or lifestyle brands, or even diversification into logistics, data centers, or infrastructure-adjacent real estate — segments that have been gaining investor and tenant interest,” he added.

In October, FLI President Jose Mari H. Banzon said the company had completed its project launches for 2025 and was preparing several new residential developments for 2026. These include a 21-hectare horizontal project in Biñan, Laguna, as a sequel to its Meadowcrest community, and phase 3 of Grand Hyatt Residences in Bonifacio Global City, following the successful sale of the first two phases. A two-tower project near The Seasons Residences is also being prepared, while developments in Marikina and the Bay Area are on hold until market conditions improve, according to the company.

Federal Land is a subsidiary of GT Capital Holdings, Inc., a diversified conglomerate with interests in automotive, banking, and real estate.

On Wednesday, shares of GT Capital closed at P575 apiece, down 50 centavos or 0.09% at the local stock exchange. — Alexandria Grace C. Magno

ALLTV secures broadcast rights for ABS-CBN programs starting 2026

ABS-CBN CORP. has signed a content licensing agreement with Advanced Media Broadcasting System, Inc. (ALLTV) to broadcast certain Kapamilya Channel programs starting Jan. 2, 2026, the listed media company said.

The agreement follows the termination of ABS-CBN’s content supply agreement with TV5 Network, Inc., led by Manny V. Pangilinan, which TV5 said was due to ABS-CBN’s failure to meet its financial obligations under the contract.

In a statement on Wednesday, ABS-CBN said ALLTV secured the rights to broadcast certain programs after ABS-CBN settled its obligations with TV5 and MediaQuest Holdings, Inc.

“We thank Mr. Manny V. Pangilinan and TV5 for providing a platform for some ABS-CBN programs since 2021,” the company said.

Earlier this month, ABS-CBN confirmed it received notice from TV5 terminating their five-year content supply agreement, signed in 2023. TV5 said the termination was due to ABS-CBN’s alleged failure to remit its share of advertising revenues on schedule despite repeated requests.

ABS-CBN previously said the agreement with ALLTV, first announced in 2024, was intended to expand distribution of its programming via the free-to-air platform. Since May 13, 2024, ALLTV has been airing certain Kapamilya teleseryes at various time slots, as well as news programming from TV Patrol.

Under the new licensing agreement starting Jan. 2, 2026, ALLTV will broadcast additional ABS-CBN programs, including FPJ’s Batang Quiapo, Roja, What Lies Beneath, It’s Showtime, ASAP, and TV Patrol, formalizing and expanding its content lineup following the termination of ABS-CBN’s deal with TV5. Selected programs, such as It’s Showtime and Pinoy Big Brother, will continue to air on GMA Network, while other prime ABS-CBN content remains available on A2Z.

On Wednesday, ABS-CBN shares closed at P3.40 apiece, unchanged.

TV5 Network is part of MediaQuest Holdings, Inc., whose unit Hastings Holdings, Inc. — under the PLDT Beneficial Trust Fund — holds a majority stake in BusinessWorld through the Philippine Star Group. — Ashley Erika O. Jose

GMA Network shifts international channels to cloud-based distribution

GMANETWORK.COM

GMA NETWORK, INC. is upgrading its broadcast operations by moving its international channels to cloud-based distribution through a partnership with global video technology company Synamedia and its local distributor, Telered Technologies and Services Corp.

Under the agreement, Synamedia’s Quortex Link platform will handle the distribution of channels such as GMA Pinoy TV, GMA Life TV, and GMA News TV, the listed media company said in a statement on Wednesday.

“This transition is not just a technical upgrade but a strategic move to optimize our resources,” GMA said in a media release on Wednesday. “By embracing cloud-based solutions, we are ensuring GMA’s long-term sustainability and operational resilience in an increasingly digital global landscape,” it said.

Headquartered in the United Kingdom, Synamedia serves more than 200 video service providers worldwide, providing cloud-based software and technology for broadcast and streaming.

For the three months ending September, the network’s gross revenue fell 17% to P3.89 billion from P4.70 billion, partly due to higher expenses. Despite this, net income for the nine-month period jumped 47% to P2.07 billion from P1.41 billion a year ago, with overall revenues rising nearly 12% to P13.99 billion.

“Moving from satellite to cloud has allowed us to cut costs and simplify operations,” GMA Network First Vice-President Joseph T. Francia said. “With Synamedia’s technology and Telered’s expertise, we’ve streamlined workflows, reduced complexity, and improved efficiency,” the media company said.

GMA’s partnership with Synamedia began in 2023 when GMA International started migrating its channels to cloud-based distribution. The rollout has already expanded the company’s reach in the Asia-Pacific region and is now being extended to the United States and Canada.

On Wednesday, GMA Network shares closed 2 centavos, or 0.38%, lower at P5.25 per share. — Ashley Erika O. Jose

Yields on seven-day deposits drop further after Fed, BSP cuts

The main office of the Bangko Sentral ng Pilipinas in Manila. — BW FILE PHOTO

YIELD on the Bangko Sentral ng Pilipinas’ (BSP) seven-day term deposits fell on Wednesday as the offer was met with strong demand following cuts to benchmark rates here and in the United States.

The central bank’s term deposit facility (TDF) attracted bids amounting to P171.256 billion, more than double the P80 billion auctioned off and above the P156.981 billion in tenders for the same offer volume last week.

The one-week deposits had a bid-to-cover ratio of 2.1407 times, higher than the 1.9623 times seen for last week’s offer. The BSP made a full award of the seven-day papers.

Accepted yields were from 4.4515% to 4.55%, a narrower and lower range compared to the 4.52% to 4.724% recorded in the previous auction. With this, the average rate of the one-week deposits went down by 15.08 basis points (bps) to 4.529% from 4.6798%.

The BSP has not offered the 14-day papers for nearly two months. It last offered both the seven-day and 14-day papers on Oct. 29.

Also, it has not auctioned off 28-day term deposits for over five years to give way to its weekly offerings of securities with the same tenor.

Both the TDF and BSP bills are used by the central bank to mop up excess liquidity in the financial system and better guide market rates towards the policy rate.

The seven-day deposits fetched a lower average accepted yield week on week following the widely expected rate cuts from the US Federal Reserve and the BSP, Rizal Commercial Banking Corp. chief economist Michael L. Ricafort said in a Viber message.

Fed officials last week cut the US central bank’s benchmark overnight interest rate by another 25 bps to the 3.5%-3.75% range. However, they signaled borrowing costs were unlikely to fall further in the near term as they awaited clarity on the direction of the labor market and inflation, Reuters reported.

Fed Chair Jerome H. Powell told reporters in a post-meeting press conference that the labor market “seems to have significant downside risks.”

US job growth rebounded more than expected in November after government-related spending cuts triggered the biggest drop in nonfarm payrolls in nearly five years in October, suggesting no material deterioration in labor market conditions as businesses navigate economic uncertainty wrought by President Donald J. Trump’s aggressive trade policy.

While the Labor department’s closely watched employment report on Tuesday showed the unemployment rate at more than a four-year high of 4.6% last month, the Bureau of Labor Statistics changed its methodology after the 43-day government shutdown prevented the collection of data from households.

Economists said they were focusing on private job growth to get a better sense of the labor market’s health. Private employment growth has averaged 75,000 jobs per month over the past three months, which some economists said should allow the Federal Reserve to keep interest rates unchanged in January.

Nonfarm payrolls increased by 64,000 jobs last month. The economy shed 105,000 jobs in October, the biggest decline since December 2020. That slide was tied to a decrease of 162,000 jobs in federal government employment, the most since June 2010.

Meanwhile, the BSP on Dec. 11 delivered a fifth straight 25-bp cut to bring the policy rate to an over three-year low of 4.5%. It has so far slashed benchmark rates by 200 bps since August 2024.

BSP Governor Eli M. Remolona, Jr. said they could lower borrowing costs by another 25 bps one last time next year depending on economic data, which would likely mark the end of the current easing cycle. The Monetary Board will hold its first meeting next year in February. — Katherine K. Chan with Reuters

Christmas with the CDO family

CDO’s Holiday Ham

CDO, one of the country’s biggest processed food companies, celebrated its 50th anniversary at Bonifacio Global City’s Manila House, with the second and third generations of the founding Ong family.

The spread, of course, included CDO’s Holiday Ham, consistently ranked among the best supermarket hams in the country, and their Danes Queso de Bola. Manila House’s menu included Holiday Ham and Pineapple Skewers with Honey Mustard Glaze, Danes Queso de Bola Truffle Croquettes, and Holiday Ham and Queso de Bola Breakfast pan de sal for the Nov. 27 lunch.

Tapping into tradition with the familiar centerpieces of ham and cheese on the Christmas Eve table, they also sought the help of fashion blogger Laureen Uy to discuss tips on table settings, with Ms. Uy using layered textures and linens to add depth, mixing warm neutrals with metallic accents for a festive palette, and adding touches like handwritten place cards and fresh herbs.

Actor and chef Marvin Agustin, meanwhile, said that CDO hams shaped his childhood, because his mother used to sell CDO products — he even served as his mom’s delivery boy. For the lunch, he used the Holiday Ham and the Danes Queso de Bola to make a charcuterie board, placing them at the center. “The rest would be to accessorize, para maganda, para masarap,” he said during a presentation. He used a saucer in the middle of the board to create visual appeal and raise the ham above the board, then added dried mangoes, nuts, and herbs to surround it. “Always consider the colors, and the texture,” he said about assembling a holiday charcuterie board.

After lunch, Bernice Jalgalado, CDO Foodsphere, Inc.’s vice-president for marketing, talked about the popularity of their Holiday Ham. “With Holiday Ham, I’m never nervous when people would try different brands. I’m really confident because we know also the quality we’re giving.”

The secret is using 100% meat, and any proposed alternatives and reformulations are shot down — it is, after all, the recipe of their founder, dietitian Corazon Dayro-Ong (those are her initials in the brand name). From starting with Mrs. Ong’s original pork recipes in 1975, they’ve since expanded: CDO is the flagship brand under the wider CDO Foodsphere, Inc. portfolio, which includes San Marino Corned Tuna and Highlands beef products. “The answer there has always been no,” she said, referring to reformulations. “We want to make sure that the quality we give is consistent, and making Filipinos happy, and they deserve it.”

As for where and how they source their pigs, she said, “It’s a secret of our purchasing team,” she said.

Ms. Jalgalado discussed the possibility of going into plant-based foods, as many of their competitors have done, offering alternatives to their canned meat and processed food variants. “We’ve been studying it. We know that it’s a trend. The question there is how do we make it affordable, delicious, and how we can continue to delight our Filipino consumers?” she said.

As for new launches, she said, “Filipinos are becoming more experimental when it comes to whatever dish they prepare at home. We’ll make sure that we’d be first in the market to be able to cater to what Filipinos want.”

CHRISTMAS AT LOLA’S
A member of the Ong family’s third generation, Janna Ong-Santos, the company’s marketing manager, told stories about how their family celebrates Christmas. “We actually do Christmas Eve dinner at our home. We invite everyone, my mom’s side and my dad’s side.”

“We eat dinner, and then go to evening mass. We all go back to the house. Light snacks: Holiday Ham and QdB, of course. And then we open gifts.” The spread includes the aforementioned ham, their Danes Queso de Bola, pan de sal, and hot chocolate.

“What we do is just fry it for a few minutes, and then we top it with pineapple glaze,” she said about how the family enjoys their own ham.

Still family-owned and operated, Ms. Ong-Santos talked about the advantage of keeping the business within the family for the last 50 years. “You can mix business with fun, or family,” she said. “It’s easy for us to discuss ideas, plans.”

“I find that it’s easy for us to just be honest with what’s happening in the business,” she added. “We’re all involved in the business, and it’s good that I always see them in the office.

“It’s a good way to bond with the family.” — Joseph L. Garcia

1...541542543...14,240Page 542 of 14,240
ADVERTISEMENT
ADVERTISEMENT
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin X Youtube