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Infrastructure spending jumps 23%

THE Department of Public Works and Highways (DPWH) conducts clearing operations in Manila. — PHILIPPINE STAR/ RYAN BALDEMOR

By Aubrey Rose A. Inosante, Reporter

STATE SPENDING on infrastructure rose by 23.1% in the first two months of 2025, as the government ramped up disbursements for public works projects ahead of the election ban, the Department of Budget and Management (DBM) said.

In its latest disbursement report, the DBM said spending on infrastructure and other capital outlays jumped by 23.1% to P148.3 billion as of end-February from P120.5 billion in the same period last year.

“The robust infrastructure spending outturn was mainly credited to the disbursement performance of the Department of Public Works and Highways (DPWH),” it said.

The DPWH completed carryover infrastructure projects, as well as made payments for right-of-way settlements and emergency and disaster-related civil works. It also logged higher contractor billings and expedited the processing of accounts payable.

The Budget department said some of the DPWH projects included construction and maintenance of roads, bridges, flood control structures and multi-purpose buildings.

“Furthermore, the direct payments made by development partners for progress billings of ongoing foreign-assisted projects of the Department of Transportation, such as the North-South Commuter Extension Project, South Commuter Railway Project, Davao Public Transport Modernization Project, as well as the DPWH for its Pasig-Marikina River Channel Improvement Project, helped sustain the strong infrastructure and other capital expenditure performance during the first two months of the year,” it said.

Data from the DBM showed overall infrastructure disbursements, which include infrastructure components of subsidy/equity to government corporations and transfers to local government units, jumped by 19.3% to P182.9 billion in the January-to-February period from P153.4 billion a year ago.

Total NG disbursements as of end-February jumped by 13.8% to P822 billion, mainly due to faster infrastructure spending and allotments to local government units.

“Disbursements for March 2025 likely improved significantly as line agencies were expected to have utilized their remaining cash allocations that have been fully credited during the first quarter of the year. Non-utilization would let the cash allocations lapse on the last working day of the quarter,” the DBM said.

It noted that agencies were expected to have accelerated disbursements ahead of the election ban on the release of public funds that started on March 28.

“Spending for April 2025 is expected to temporarily slow down as the election-related prohibition might impede the implementation of some programs and projects,” the DBM said.

However, the department noted that disbursements will likely pick up in the latter part of May to June after the election ban is lifted.

The midterm elections are scheduled for May 12.

The DBM noted that Commission on Elections had exempted some key infrastructure projects, as well as some major health, housing, agriculture, education and labor sector programs, were exempted from the election ban.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort noted the government accelerated the progress of infrastructure projects ahead of the election ban.

“Completions would serve as metric of achievements especially by incumbent elected officials who will run again and for the groups/parties that they represent,” he said in a Viber message.

Reinielle Matt M. Erece, an economist at Oikonomia Advisory and Research, Inc. said the expected lower infrastructure spending in April is merely “transitory.”

“I see infrastructure spending growing faster this year as (interest) rates are expected to go down, higher fiscal space, and fiscal efforts for growth,” he told BusinessWorld via Viber on Monday.

Mr. Erece said the higher spending can also boost “fiscal efforts to support economic growth amid global uncertainty and faltering demand.”

The government’s infrastructure program for this year is set at P1.538 trillion, equivalent to 5.4% of gross domestic product.

PHL likely to reach upper middle-income economy status by ’27

People attend an art fair in Makati City in this file photo. The Philippines is now expected to reach upper middle-income status “in a couple of years.” — PHILIPPINE STAR/RYAN BALDEMOR

By Luisa Maria Jacinta C. Jocson, Senior Reporter

THE PHILIPPINES is more likely to achieve upper middle-income status by 2027, a year later than the government’s target, given the current growth prospects, the World Bank said.

“The more likely scenario is that it will take a couple of years. It won’t be 2026. It’s more likely that it may be 2027,” World Bank Group Lead Economist and Program Leader for the Prosperity Unit for Brunei, Malaysia and the Philippines Gonzalo Varela told reporters on the sidelines of an event on Monday.

“The reasonable scenario is we expect a couple of years. It would take the Philippines a couple of years to pass that upper middle-income threshold.”

The Marcos administration is targeting to achieve upper middle-income status by 2026.

Based on the latest data from the World Bank, the Philippines is currently classified as a lower middle-income country as its gross national income (GNI) per capita was $4,230 in 2023. However, this was higher than its GNI per capita of $3,950 in 2022.

According to the World Bank’s classification, an economy is considered lower middle-income if the GNI per capita level is between $1,146 and $4,515, while upper middle-income countries are those that have a GNI per capita of $4,516 to $14,005. The World Bank typically releases its income classification data every July.

For his part, Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio M. Balisacan said the country is still on track to meet its target of reaching the higher income class by next year.

“Barring major external shocks, and assuming a favorable global trade environment, we are well-positioned to achieve upper middle-income status by 2026,” he said in a speech during the event.

“Nonetheless, we remain acutely aware of the uncertainties that confront the global economy — ranging from systemic risks in economic institutions and technological disruption to environmental challenges.”

However, Mr. Varela said the Philippines would only be able to graduate to the upper middle-income level next year if it is able to deliver an “outstanding growth performance.”

“With our forecast that is just out, it will not be 2026. Does that mean that it cannot be 2026?  No, it can if you deliver much faster growth… we believe that it’s more likely for it to be 2027,” he added.

The World Bank slashed gross domestic product (GDP) growth forecasts for the Philippines this year and next year amid uncertainty and the looming global slowdown. Philippine GDP is now expected to expand by 5.3% this year and by 5.4% in 2026, well below the government’s 6-8% target for both years.

Mr. Varela said the Philippines needs to ensure sustained growth of per capita income.

“Given the rates of growth that we have been seeing and given the conditions of the domestic economy and the global economy, under reasonable scenarios, we think that in the next couple of years, this is feasible for the Philippines to achieve,” he added.

The Philippines will also need to implement key reforms to hurdle its current income class and sustain the growth needed to remain in the upper middle-income level.

Mr. Varela cited the amended Public Service Act, which allows full foreign ownership in key public services like telecommunications, airlines and railways.

“On paper, it has been passed. But there are a number of actions that need to be taken so that its full implementation happens. That is something that is going to create a lot of opportunities for investment and for productivity growth.”

He also noted reforms that will simplify regulations to make it easier for foreign players to enter the country.

“For a foreign firm, it takes 106 days for a foreign firm to be registered in the Philippines. That is substantially more than what we see in the rest of the world.  In Singapore, it takes about 10 to 15 days,” Mr. Varela added.

He noted these reforms will help the Philippine economy growing “past the threshold.”

IMPACT OF US TARIFFS
Meanwhile, Mr. Varela also cited the impact of the tariff policies on the country’s growth outlook.

“The Philippines is a small open economy. As a small open economy, what happens in the rest of the world matters for the Philippines,” he said.

“An increase in global uncertainty is going to be detrimental for the Philippines’ growth prospects. It will likely affect exports, and it will affect investment. Investment is heavily affected by policy uncertainty.”

The United States slapped a 17% reciprocal tariff on the Philippines in early April but paused this policy for 90 days. However, the baseline 10% tariff remains in effect.

As global uncertainty weighs on investment, Mr. Varela said doubling down on domestic reforms will help support growth.

“That’s why I was mentioning streamlining regulations, so that you reduce the costs of foreign and domestic investment in the Philippines. It’s something that is going to help offset that.”

These reforms should also make logistics cheaper, which is crucial for the Philippines, being an archipelagic country.

“Reforms that open up the domestic trade, domestic transport sectors. These are reforms that are going to help the economy keep growing, even with global uncertainty increasing,” he added.

Once the country transitions to the next income level, Mr. Varela said there will be many opportunities it can capitalize on.

“For example, after graduation, (though) not immediately, after three consecutive years of keeping that level of income above the threshold of upper middle-income, there are some developed countries that reduce concessions on trade,” he said.

The Philippines being a beneficiary of the EU Generalized Scheme of Preferences Plus (GSP+) could also be affected after it graduates.

“This is why the government of the Philippines has been working with the European Union in negotiating a free trade agreement,” Mr. Varela said.

“That way, the idea there is that while you lose GSP+, you can move into an agreement in which you have an FTA.”

Meanwhile, DEPDev Undersecretary Joseph J. Capuno noted that the transition to an upper middle-income level will entail a “shift in access to resources.”

“As countries move up the income ladder, eligibility for concessional financing and access to traditional official development assistance begin to diminish,” he said at the same event.

“With this, new priorities arise — necessitating stronger domestic institutions, heightened international cooperation, more sophisticated mechanisms for managing debt and raising revenue, provision of innovative solutions, and a renewed focus on effective financing for development.”

Mr. Capuno said there is a need to adopt new frameworks for sustainable development and establish more and stronger partnerships.

“Improving coordination among development partners can better harmonize support to the country. This means working together to design strategies that support transitions of middle-income countries (MIC) to a higher income threshold.”

The government will implement reforms in its Medium-Term Fiscal Framework 2022-2028 as it prepares to transition to an upper middle-income economy, Mr. Capuno said.

This will “rebuild fiscal space and improve credit ratings, emphasizing the government’s commitment to fiscal consolidation and debt sustainability.”

“We also underscore the importance of technical and financial assistance that international organizations and financial institutions can extend to MICs to assist in the formulation of sound revenue and tax policies and strengthen capacity for tax collection and revenue generation,” he said.

COUNTRY PARTNERSHIP
Meanwhile, the World Bank is currently in the process of preparing its new country partnership framework for the Philippines.

“The Philippines remains a very important country for the World Bank. Our partnership with the Philippines is extremely important… that partnership is going to turn 80 this year,” Mr. Varela said.

The framework, which will cover 2025 to 2031, is set to be finalized and released by the end of June.

“We are thinking of around three main outcomes that have to do with improving quality and access to human capital. That has an element related to education, but also an element related to nutrition and health,” Mr. Varela said.

Meanwhile, the second outcome is related to job creation in the private sector, while a third outcome involves resilient communities.

“We are expecting the Philippines to become an upper middle-income economy within the time frame of that framework,” Mr. Varela added.

Palace eyes ‘favorable’ trade deal with US as PHL officials negotiate tariffs

REUTERS

By Justine Irish D. Tabile and Chloe Mari A. Hufana, Reporters

THE Philippines expects to close a favorable deal with the United States, the presidential palace said on Monday, as key officials travel to Washington on April 29 to negotiate the 17% reciprocal tariff imposed by President Donald J. Trump as part of a global trade war that puts economic growth, jobs and wages at risk.

Trade Secretary Ma. Cristina A. Roque on Monday said the Philippine delegation will aim to bring down the US tariff rate on Philippine goods to zero.

“Of course, we’ll aim for zero tariff. But it depends on what they tell us. Because in every negotiation, there’s always the other side, right?… It’s either we get it in one go or like other countries, [go through] negotiations,” she told reporters.

Presidential Communications Office Undersecretary Clarissa “Claire” A. Castro said Special Assistant to the President for Investment and Economic Affairs Frederick D. Go had instructed them to wait for the dialogue’s outcome.

“His instructions were to just wait and see what the outcome of the talks and negotiations would be,” she said in Filipino during a news briefing at Malacañang.

She did not elaborate on the country’s negotiation strategy or the level to which they hope to bring down the 17% tariff rate.

“Let’s just see what’s good for the Philippines and for our relationship with the US,” she said.

Ms. Roque and Mr. Go will be in Washington from April 29 to May 2 for tariff talks with the US Trade Representative.

Ms. Roque said the Trade department’s strategy is to offer enhanced market access to key US exports to the Philippines such as automobiles, dairy products, frozen meat, and soybeans.

“In any negotiation, we cannot just take and take… But when we get into a negotiation, we’ll always try to protect what’s here. It’s useless to negotiate if we kill (our own industries),” she said.

However, Ms. Roque said they will prioritize local industries despite their openness to improve market access for US goods.

“When we go there, we first have to protect the interests of the people here… Because it has to be win-win for all. We cannot have a scenario where one sector wins over the others,” she added in mixed English and Filipino.

The US imposed a 17% tariff on the Philippines, although this has been suspended until July. It was the second lowest in Southeast Asia, after Singapore.

“Of course, we expect that in one go we can already get what we want because we’re starting at a low percentage, not like other countries. And we also have good relations with the US, so we’re hoping that it would not be a problem for them to lower the tariff,” she said.

Asked if the Philippines should wait for the outcome of other countries’ negotiations, Ms. Roque said the Philippine delegation is ready for the meeting.

“Let’s wait until we get there. This is a negotiation. They also need the market. Remember, the Philippines is big, and we have a good relationship with the US. And then just by looking at our tariff, which is already low, it says a lot of things also,” she added.

Sought for comment, Josue Raphael J. Cortez, a diplomacy lecturer at De La Salle-College of St. Benilde, the Philippines may leverage its chairmanship of the Association of Southeast Asian Nations (ASEAN) in 2026 during the trade talks.

He said the US may maximize this opportunity to gain further solid ground within the regional market vis-à-vis China.

“With the US as the region’s largest source of foreign direct investment, we can further expand our regional partnership — the Trade and Investment Facilitation Agreement,” he said in a Facebook Messenger chat.

The Trade and Investment Framework Agreement, signed in 2006, aims to further partnership between the US and ASEAN, collectively the world’s fifth-largest economy.

Mr. Cortez said the Philippine delegation may successfully negotiate to lower the 17% tariffs if the US feels it can also gain more flexibility in trade.

“For the negotiation, we can include lower tariffs for US imports from us, such as semiconductors. At the same time, we could also leverage our service providers, like business process outsourcing (BPOs), who comprise an integral part of both the country’s and the US’ service sectors,” he said.

A US-Philippines free trade agreement is “undoubtedly the most viable way,” he added.

However, IBON Foundation Executive Director Jose Enrique “Sonny” A. Africa called the Philippine government’s offer to further lower tariffs on US goods a capitulation rather than a negotiation.

“It is a surrender of economic sovereignty, dressed up as diplomacy to continue an imagined strong relationship with the US,” he said in a Viber message.

While the US is raising tariffs to protect its economy, Mr. Africa said the Marcos administration is weakening the Philippine economy by continuing to believe in “free trade.”

He warned that further tariff cuts will hurt local farmers and manufacturers and called for a more independent, domestically driven development strategy.

The Philippines should also prioritize protecting its domestic industries and pursue national industrialization, like the US is doing, according to Mr. Africa.

Federation of Free Workers President Jose Sonny G. Matula said the Philippines is gradually building strengths in key policy areas that align with US interests.

In terms of intellectual property, the labor leader noted that the Philippines upgraded its enforcement under the Intellectual Property Office of the Philippines (IPOPHL) and signed several treaties.

IMF: Philippines has room to improve tax efficiency

PHILIPPINE STAR/EDD GUMBAN

By Luisa Maria Jacinta C. Jocson, Senior Reporter

THE Philippines still has room to implement reforms to enhance its taxation system and make collections more efficient, the International Monetary Fund (IMF) said.

“The Philippines has scope to improve its tax-to-gross domestic product (GDP) ratio,” an IMF spokesperson told BusinessWorld in an e-mail.

“Tax reforms could prioritize excise taxation, enhancing value-added tax (VAT) efficiency and tax administration, and effective control of tax incentives.”

Latest data from the Finance department showed that the National Government (NG) revenues as a share of GDP reached 16.72% in 2024, up from 15.73% in 2023.

Tax effort, which isolates revenue collected in the form of tax, stood at 14.38%, up from 14.1% a year ago but lower than the 14.42% program.

The IMF said the country’s 2025 budget implies a “broadly neutral fiscal stance, which is appropriate given a wider negative output gap.”

“Implementing a gradual fiscal consolidation over the medium term, in line with the authorities’ medium-term fiscal plans, is critical to reduce debt and gross financing needs,” it added.

The IMF also noted the Philippines narrowing fiscal gap, as the deficit-to-GDP ratio has declined to 5.7% of GDP in 2024 from 6.2% in 2023.

Based on the latest Development Budget Coordination Committee estimates, the NG set its deficit ceiling at 5.3% of GDP this year. The DBCC is targeting to bring it down to 3.7% by 2028.

Finance Secretary Ralph G. Recto earlier said he is not seeking to introduce new taxes, instead focusing on improving collection efficiency and ramping up nontax revenues.

The IMF had previously raised the areas of improvement for the Philippines’ tax system, particularly VAT.

Earlier data from the DoF showed that the Philippines had one of the lowest VAT efficiencies in Southeast Asia in 2023, despite having the region’s highest VAT rate at 12%.

From 2016 to 2020, the country collected an average of P723 billion from VAT, which is only around 40% of the expected VAT collection.

GROWTH OUTLOOK
Meanwhile, the IMF spokesperson said the Philippine economy “holds significant potential.”

“It has rich natural resource endowments, and a significant demographic dividend,” it said.

“Continued efforts aimed at attracting investment, enhancing competitiveness, and improving the business environment will help support exports and enhance growth potential,” it added.

In its latest World Economic Outlook, the IMF slashed its GDP projection for the Philippines to 5.5% this year from its 6.1% forecast previously.

This after it priced in the direct impact of higher tariffs on the Philippines’ exports to the US, as well as higher global uncertainty from these tariff policies.

IMF Asia and Pacific Department Director Krishna Srinivasan said this downgrade reflects “significant external shocks.”

“In the case of the Philippines, exposure to the US is not as significant… it’s not that low either, it’s about 17%. So, there is still a significant exposure on the external side,” he said at a briefing on April 24.

“Domestic demand, even though it’s relatively robust, there could be more action there. But the fact that we revised it by 1.1 percentage points cumulative to two years, reflects largely the trade impact and the heightened uncertainty.”

Meanwhile, Mr. Srinivasan said there is room for further monetary easing as inflation has been manageable.

“Inflation is at or below target in many countries.  For countries where they are, there is room to engage in monetary easing,” he said.

“Many countries in the region, including the Philippines, have the monetary policy space. I would say less so on the fiscal side,” he added.

Despite a policy pause in February, the Bangko Sentral ng Pilipinas (BSP) resumed its rate-cutting cycle earlier this month with a 25-basis-point (bp) rate cut.

Though there is room to deploy policy easing, Mr. Srinivasan said central banks must continue to watch out for volatility.

“That said, countries do have to look at what’s happening in inflation in advanced economies, what the major central banks are doing, because that has implications for movements in exchange rate, capital flows and so on.”

“Here we are quite clear that, you know, at the end of the day, exchange rates should be the buffer against shocks,” he added.

Lav Diaz’s historical epic Magellan to premiere at Cannes

GAEL GARCÍA BERNAL in a scene from Lav Diaz’s film Magellan.

THE CANNES Film Festival’s 78th edition, set for May this year, is welcoming back acclaimed Filipino filmmaker Lav Diaz, whose newest film Magellan will be screened at the festival’s Premiere section.

The film, also referred to by its Portuguese title Magalhães, stars Gael García Bernal as the titular explorer from Portugal. He is a historical figure best known for leading the first expedition that circumnavigated the globe, and for arriving in the Philippines in 1521 in a preliminary attempt to establish Spanish colonial rule.

Despite the title, Mr. Diaz told BusinessWorld at the sidelines of an event in April that the film will “not just have the voice of Magellan.”

“Countering the perspective of Western powers, I want the film to be the voice of us Filipinos who were colonized by them,” he said.

Famous for the length of his films, the Cannes version of Mr. Diaz’s Magellan will be a shortened cut, clocking in at nearly three hours. “We have a version that has a runtime of nine hours,” said Mr. Diaz.

This is around the same length as his second longest film, 2007’s Death in the Land of Encantos which ran for nine hours and one minute. His longest film is 2004’s Ebolusyon ng Isang Pamilyang Pilipino which has a runtime of 10 hours 24 minutes.

Magellan covers the explorer’s marriage with his wife Beatriz, his voyage to the Philippines, his alliance with Rajah Humabon to convert the locals to Christianity, and his eventual demise at the Battle of Mactan. It is ultimately “a deep dive into this part of Philippine history,” according to the director.

Aside from Mr. Bernal in the lead role, the film stars frequent collaborators of Mr. Diaz: Ronnie Lazaro plays Rajah Humabon while Hazel Orencio plays Reyna Juana. The movie was shot in the Philippines, Portugal, and Spain.

As for going to Cannes, he told BusinessWorld that he is more excited by the prospect of “connecting with Filipinos there” than the prestige of the festival itself.

Mr. Diaz previously attended Cannes to show his films Ang Hupa, which was shown in the festival’s Directors’ Fortnight section in 2019, and Norte, Hangganan ng Kasaysayan, for the Un Certain Regard category in 2013.

The 2025 edition of the festival, which has French actress Juliette Binoche as the Main Jury President, will run from May 13 to 24.

Magellan is a co-production between the Philippines, Portugal, Spain, France, and Taiwan. It is unsure yet where the nine-hour version of the film will premiere.

“I worked on this for seven years,” Mr. Diaz said. “Whether it’s Filipinos or non-Filipinos, my goal is for it to get audiences to reflect on the past.” — Brontë H. Lacsamana

Celebrating animated films, world cinema

FDCP brings acclaimed titles to movie theaters

BOTH local and foreign award-winning films are coming to cinemas this summer thanks to two festivals hosted by the Film Development Council of the Philippines (FDCP): the first-ever I Animate: Animation Film Festival and A Curation of World Cinema.

The former is running until April 29 at select SM Cinemas in Metro Manila, but will continue until May 5 at FDCP Cinematheque Centres in Iloilo, Davao, Negros, and Nabunturan. Some of the films included in the lineup are the Latvian film Flow which was the 2025 Oscar winner for Best International Film, and the 2023 Cinemalaya Best Film, Iti Mapukpukaw.

Meanwhile, A Curation of World Cinema features the films Memoir of a Snail and I’m Still Here. They will screen at cinemas in TriNoma, Ayala Terraces Fairview, Market! Market!, Robinsons Galleria, SM Mall of Asia, and SM North EDSA starting April 30.

Memoir of a Snail is an Australian tragic comedy done in claymation while I’m Still Here is a live-action Brazilian historical drama by Walter Salles.

EMPHASIS ON ANIMATION
“We at FDCP decided that, this year, we will put emphasis on three areas of filmmaking: documentaries, short films, and animation. This is our dedicated festival for animation,” said Jose Javier Reyes, FDCP chairperson, in his opening speech on April 24.

“When Latvia won at the Oscars for its film Flow, I thought, ‘kayang kaya ng Pilipino ito (Filipinos are also capable of this).’ We nominated Iti Mapukpukaw for the Oscars for Best International Film in 2024, and out of all the Philippine submissions we ever sent, it got the closest,” he added.

Many Filipino animators work with big studios abroad, but struggle to make their own creations in the Philippines, something the FDCP hopes to change through government support.

“Through this festival, we want to give the audience more exposure to the various kinds of animated films,” Mr. Reyes told BusinessWorld.

One of the events held in conjunction with the festival was a talk on animation careers for Filipinos, with nine different animators serving as speakers across various fields, including Carl Joseph Papa who directed Iti Mapukpukaw.

There was also a talk on stop motion animation in the Philippines, with filmmakers Ricky Orellana and Roxlee as speakers.

Mr. Reyes explained that these efforts are a small yet necessary step in bridging the gaps in opportunities. “It is through the inspiration we get from works that come before us that we are able to find our own voice, our own ideas, and our own mindset in the path that we create,” he said. — Brontë H. Lacsamana

Meralco Q1 income climbs 10.8% to P11.2B

PHILSTAR FILE PHOTO

POWER distributor Manila Electric Co. (Meralco) reported a 10.8% increase in its consolidated core net income to P11.2 billion for the first quarter of 2025, driven by growth across its business segments.

“Our first-quarter results reflect a strong start to 2025 with solid financial performance across the business portfolio,” Meralco Chief Finance Officer Betty C. Siy-Yap said during a media briefing on Monday.

For the first three months, the company’s reported net income increased by 8.9% to P10.4 billion from P9.6 billion.

Gross revenues grew by 10% to P114.51 billion from P104.55 billion, driven by volume growth in the distribution utility, power generation, and retail electricity supply businesses, as well as higher pass-through transmission and generation charges.

Meralco’s distribution utility business accounted for the largest share of 60% in earnings, amounting to P6.7 billion. Power generation contributed 31%, or P3.4 billion, while the retail electricity supply business and non-electricity businesses generated a combined P1.1 billion, or 9%.

For the first quarter, energy sales volume, mainly from Meralco and Clark Electric Distribution Corp., climbed 2% to 12,493 gigawatt-hours (GWh) from 12,307 GWh in the previous year.

By segment, Meralco said the commercial segment increased slightly by 1%, to 4,744 GWh from 4,679 GWh.

Sales volume in the residential sector grew 3%, to 4,257 GWh from 4,144 GWh, driven by the energization of new residential customers, which fueled consumption growth and contributed 95 GWh in the first quarter.

The industrial segment saw a marginal increase, to 3,456 GWh from 3,448 GWh.

Meralco PowerGen Corp. (MGen), a wholly owned subsidiary of Meralco, reported a 25% increase in its contribution to core net income, attributed to “stable plant availability across its portfolio, sustained revenue generation from the reserve market, and the contribution of Chromite Gas Holdings, Inc. (CGHI) beginning February this year.”

CGHI is MGen’s joint venture with Aboitiz-led Therma NatGas Power Inc.

On April 11, President Ferdinand R. Marcos, Jr. signed into law Republic Act No. 12146, extending Meralco’s franchise for another 25 years, from June 2028.

With the extension, the company will have the authority to distribute power to Metro Manila, Bulacan, Cavite, Rizal, and select areas in Batangas, Laguna, Quezon, and Pampanga until 2053.

“The recent 25-year renewal of Meralco’s franchise, signed by President Marcos, is a milestone for the company, for which we are grateful indeed. This reinforces our commitment to public service, sustainable growth, and nation-building. It is also a reminder of our public accountability,” said Meralco Chairman Manuel V. Pangilinan.

“As we move forward, we remain dedicated to enhancing our services and ensuring that our stakeholders receive the best value from partnering with us for development,” Mr. Pangilinan added.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

Tales from the heart

Movie Reviews
Memoir of a Snail
Directed by Adam Elliot
I’m Still Here
Directed by Walter Salles

BusinessWorld caught Adam Elliot’s Memoir of a Snail, the opening film for the I Animate: Animation Film Festival, which is also one of the films in the upcoming A Curation of World Cinema festival, which kicks off on April 30. Both film festivals are presented by the Film Development Council of the Philippines (FDCP).

The Australian claymation tragic comedy is one of the two films to be shown in A Curation of World Cinema along with Walter Salles’ I’m Still Here, a Brazilian historical drama (which we had already watched a few weeks before).

While the two films could not be more different, they are both teeming with anguish and filled with heart.

Memoir of a Snail is centered on the story of a young orphan named Grace Pudel, who withdraws into a prison of her own making, outright likened to a snail that curls into its heavy, burdensome, all-encompassing shell. Meanwhile, I’m Still Here follows Eunice Paiva, a woman thrust into a more literal prison after her husband is suddenly taken at the height of a military dictatorship in Brazil in the 1970s.

Be it stop motion clay animation or a live-action historical narrative, films concerning the despairing interiority of a central character have the potential to shed light on the complex realities of the world around us. While often depressing due to the repeated abuses suffered by Grace, Memoir of a Snail is a joy to watch due to the little bits of meticulous detail and morbid humor that elevate the film.

It may seem unlikely, but animators could be inspired by the attention to ugliness onscreen — the gruesome yet affectionately molded plethora of lines on an old woman’s face, or the shockingly bright red blood of a severed finger splashing some color onto the dull surroundings.

Those who have watched director Adam Elliot’s previous offbeat masterpiece, Mary and Max, may find this film not as dynamic, with the well-crafted misery often outweighing the snippets of dark comedy. But for those who have been (or are often still) a self-pitying, reclusive Grace in their lives, the back half of the film brings the bleakness home to a cathartic, tear-filled conclusion.

As for I’m Still Here, the revelation is Fernanda Torres’ phenomenal Oscar-nominated performance as a woman who displays strength within the domestic space and later publicly in her fight for the truth. The film will surely resonate with Filipino audiences given the similarities of the Philippine historical context to Brazil’s. Ms. Torres’ performance, blending moments of restraint with moments of shattering grief, speaks to the human ability to remember.

It may not be as celebrated, but voice work in animation is a form of acting, too. And Sarah Snook, who lends her voice to Grace in Memoir of a Snail, deserves her flowers. She conveys all the emotional beats of insecurity, lonely despair, and tentative attempts to hope for the better. Those who relate to her timid, oft-ignored, yet quietly optimistic temperament may find tears in their eyes.

Notably, the creators of the film emphasized at the end of the credits that it was made entirely by humans. Of all animated films I’ve seen in the past year, this one proves most obviously that attention to detail and vulnerability through creativity ultimately make the beating heart of any work of art — something that artificial intelligence tools could help out with but never replicate.

Memoir of a Snail and I’m Still Here will screen at TriNoma, Ayala Terraces Fairview, Market! Market!, Robinsons Galleria, SM Mall of Asia, and SM North EDSA starting April 30. — Brontë H. Lacsamana

Aboitiz InfraCapital plans upgrades at Laguindingan airport to boost capacity

PHILSTAR FILE PHOTO

ABOITIZ INFRACAPITAL, Inc. said it will upgrade Laguindingan International Airport to increase passenger capacity after officially taking over the airport on April 26.

“We are embarking on a two-phase expansion; we will introduce progressive enhancements in infrastructure and passenger services in the coming months,” Aboitiz InfraCapital President and Chief Executive Officer Cosette V. Canilao said during a briefing on Monday.

For the first phase of the airport’s capacity expansion, the company is working to increase its current capacity of 1.6 million passengers per year to 3.9 million per annum and further scale up its capacity to 6.3 million in the second phase.

The company has partnered with Ireland-based daa International for the upgrade and operation of Laguindingan International Airport.

Aboitiz InfraCapital, a subsidiary of Aboitiz Equity Ventures, Inc. (AEV), will also assume the operations and maintenance of the New Bohol-Panglao International Airport by June.

AEV is a diversified holding company that manages a broad range of investments in various sectors, including infrastructure, power, banking, food, and land.

For this year, AEV is setting aside P105 billion for its capital expenditure (capex) budget, said Jose Emmanuel U. Hilado, AEV senior vice-president and chief financial officer.

The majority of AEV’s capex budget for this year will be allocated for the expansion of Aboitiz Power Corp.’s renewable energy projects, followed by Aboitiz InfraCapital, Mr. Hilado said.

“The next biggest chunk is allocated for Aboitiz InfraCapital to fund their expansion in economic estates and tower acquisitions,” Mr. Hilado said.

Aboitiz InfraCapital will continue to expand its Lima and Tari estates to meet the rising demand from both local and foreign locators, Ms. Canilao said, adding that the company is investing heavily in infrastructure upgrades while also integrating smart technologies across the company’s estate business.

Further, the company is also exploring desalination and bulk water supply projects in Visayas and Mindanao, Ms. Canilao said.

Aboitiz InfraCapital’s water units are Apo Agua Infrastructura, Inc. and Lima Water Corp. It also has a minority stake in Balibago Waterworks System, Inc., a provincial water utility system.

“Through the expansion of Lima Water, Aboitiz InfraCapital is boosting water sustainability and resiliency across its industrial estates,” she said.

ABOITIZPOWER PROJECTS
Meanwhile, Aboitiz Power Corp. (AboitizPower) is advancing toward its goal of expanding its total capacity to 9 gigawatts (GW) by 2030 as it begins the rollout of its seven power projects, its president said.

“To date, AboitizPower has also begun the construction of an additional unit of coal, two solar power plants, three battery energy storage projects, and our first wind project, which we target to complete in the fourth quarter of 2026,” AboitizPower President and Chief Executive Officer Danel Aboitiz said during the company’s annual stockholders’ meeting on Monday.

Among the company’s pipeline are solar projects, including the 212-megawatt-peak (MWp) Olongapo Solar power project in Zambales and the 89-MWp San Manuel Solar in Pangasinan.

The company is also gearing up for the construction of its 58.5 MW wind farm in Camarines Sur.

AboitizPower’s lineup of projects also includes battery energy storage systems (BESS), such as the 20 MW Bay BESS in Laguna, 20 MW Binga BESS in Benguet, and the 8-MW Magat BESS.

To date, the company has a 5-GW power generation portfolio, of which 1.8 GW are renewable energy projects.

Meanwhile, the company is moving forward with the upcoming auction for the privatization of the Caliraya-Botocan-Kaliraya (CBK) hydroelectric power plant complex (HEPP) in Laguna.

“We believe that we can enhance its operation and maximize its potential as a merchant asset, given our experience in hydro technology and our diverse portfolio,” he said.

AboitizPower, through its unit Aboitiz Renewables, Inc., previously joined the pre-proposal conference held by the Power Sector Assets and Liabilities Management Corp. last month through Thunder Consortium.

The 796.64-MW HEPP is currently under a 25-year build-rehabilitate-operate-transfer agreement between independent power producer CBK Power Co. Ltd. and National Power Corp., which will expire in 2026.

For 2025, AboitizPower has allocated an initial capital expenditure budget of P73 billion, mainly earmarked for its renewable energy pipeline.

“The remainder will fund the maintenance of our baseload plants and further investments in land, new substations, and metering for our distribution business,” said Mr. Aboitiz.

The company reported an attributable net income of P33.9 billion for 2024, a 2.4% increase from the previous year’s P33.1 billion.

Gross revenues declined by 4.6% to P197.49 billion from P207.1 billion a year ago.

“AboitizPower’s strong financial performance underpins our role in nation-building. Our successful year allows us to invest in more energy solutions, expand our reach, and contribute to the country’s growth,” said Mr. Aboitiz.

“By delivering reliable, affordable, and sustainable power, we’re achieving our business goals and strengthening the foundation for a prosperous Philippines,” he added. — Ashley Erika O. Jose and Sheldeen Joy Talavera

Behind the 60 Minutes upheaval, a big merger seeking approval

SHARI REDSTONE wanted to know what 60 Minutes was going to say next about President Donald J. Trump.

The CBS newsmagazine aired two segments involving Mr. Trump on April 13 that angered the president, one on his plans to take over Greenland and another an interview with Ukraine President Volodymyr Zelensky that discussed US policy in the region. Mr. Trump immediately lashed out on social media, saying 60 Minutes should “pay a big price” for its frequent reporting on him, which he called “fraudulent.”

Following Mr. Trump’s post, Ms. Redstone, who is the chair of CBS’s parent company Paramount Global, had a conversation with CBS Chief Executive Officer George Cheeks to discuss 60 Minutes’ upcoming slate of stories about the president. Ms. Redstone indicated which ones she thought were fair and those that could be problematic, according to CBS employees Bloomberg spoke with.

60 Minutes didn’t change its plans based on her feedback, the employees said. The network aired a segment Sunday about Mr. Trump’s cuts to the National Institutes of Health. Still, Executive Producer Bill Owens announced to his staff last week that he’s leaving, citing corporate interference at the most-watched TV news program in the US.

The 37-year CBS News veteran said in a memo to staff that it had become clear he “would not be allowed to run the show as I have always run it. To make independent decisions based on what was right for 60 Minutes, right for the audience.”

Also on Sunday night, correspondent Scott Pelley closed out the show with an explanation for Mr. Owens’ departure. “Paramount began to supervise our content in new ways,” Pelley told viewers. “None of our stories has been blocked, but Bill felt he had lost the independence that honest journalism requires. No one here is happy about it.”

Mr. Owens’ exit is the culmination of months of conflict between Ms. Redstone and CBS’s news division, during which the billionaire publicly criticized its decision-making and privately pushed for leadership changes, according to interviews with almost a dozen current and former Paramount employees, most of whom asked to not be identified discussing internal company business. Ms. Redstone, Mr. Owens, and Mr. Cheeks all declined to comment. Semafor reported earlier some details about Ms. Redstone’s request to hear about upcoming stories.

Ms. Redstone’s frustrations with the news division began with its coverage of Israel, a subject dear to her heart, and mounted as its reporting on the president jeopardized an $8 billion deal.

Mr. Trump sued CBS last year over the way it edited an interview 60 Minutes conducted with Kamala Harris, a complaint the network has said is without merit. Paramount is also waiting for the Federal Communications Commission to approve its merger with Skydance Media, a deal that includes a $2.4 billion payment for the Redstone family’s holding company. FCC Chairman Brendan Carr, who was appointed to that position by Mr. Trump, has been a staunch ally of the president.

Though the FCC review is officially unrelated to Mr. Trump’s complaint, many at the company believe approval is contingent upon a settlement, current and former executives said.

While the merger hangs in limbo, Ms. Redstone’s final months as a media mogul are engulfed in controversy, as the Boston-bred lawyer is caught between a defiant news division and a president who has sought to punish media companies he sees as disagreeing with him. Many journalists at CBS say they are worried that their corporate overlords are impinging upon their independence to get the deal approved.

“Bill’s departure is a real gut punch,” said Rome Hartman, a producer on 60 Minutes. “We all hope that the sacrifice that he’s making will convince the corporate bosses that the kind of oversight and meddling that they were trying to get Bill to accept is unacceptable.”

CBS News has long been a crown jewel for its owners, a legendary news division that’s been home to Walter Cronkite and Edward R. Murrow. While CBS trails NBC and ABC in the morning and evening audience ratings, 60 Minutes is the steward of that legacy. The show’s mix of awarding-winning journalism and celebrity interviews has delivered 8.4 million viewers a night during the 2024-2025 TV season, making it the third most-watched non-sports broadcast on TV. Bloomberg News competes with CBS in Washington and on business coverage.

Owning a news division can also be a headache. News operations can anger politicians and rack up legal bills. Ms. Redstone’s concerns first started to mount after a segment on CBS’s morning show last year.

On Sept. 30, CBS This Morning aired an interview with author Ta-Nehisi Coates about his new book, The Message, in which he expressed sympathy for Palestinians. Host Tony Dokoupil challenged Coates, saying the book sounded like it was written by an extremist. In response to many upset staffers, CBS News executives said the interview didn’t meet its editorial standards and reprimanded Dokoupil.

Ms. Redstone disagreed with the decision. “They made a mistake here,” she said during an Oct. 9 appearance at a media industry conference in New York. “I think we all agree that this was not handled correctly.”

Ms. Redstone, who is Jewish, has been heavily involved in causes related to Israel. She has devoted an increasing amount of her time to combating anti-Semitism since Hamas attacked Israel in October 2023, and has even told friends it’s one of the reasons she was ready to give up her family’s media empire, according to people close to her.

Her frustration with CBS News increased in January when 60 Minutes ran a piece about State Department officials who resigned over the US government’s support for Israel in the Gaza war. Ms. Redstone expressed her displeasure to Mr. Cheeks, and began suggesting the company make changes at 60 Minutes.

The day after that piece aired, CBS announced that Susan Zirinsky, the former head of the news division, would return to oversee standards. In a memo to staff, Mr. Cheeks said her mission was to ensure “balanced, accurate, fair and timely reporting, including highly complex, sensitive issues like the war in the Middle East,” Variety reported.

The appointment irked Mr. Owens, according to people who work for the company. 60 Minutes has long operated with a degree of independence that is rare in journalism. Though technically part of CBS News, the show sees itself as a separate entity. The producers often ignore requests and dictates from their corporate overlords, creating tension between the show and the rest of the division. Ms. Zirinsky added a level of scrutiny that hadn’t existed before.

She and Mr. Owens also had a history, having both worked at CBS News for decades. Ms. Zirinsky had been a top contender for the job of leading 60 Minutes, ultimately losing out to Mr. Owens. Ms. Zirinsky didn’t respond to a request for comment.

Ms. Zirinsky’s appointment, which Ms. Redstone supported, was in the works before the State Department piece ran, the people said. It allowed Ms. Redstone to deflect any questions about her intervention in newsgathering. Ms. Redstone officially kept her distance from the news division, channeling any frustration through Mr. Cheeks, who is expected to have a role at the new company. Mr. Cheeks and Mr. Owens, once friendly, all but stopped speaking to one another.

60 Minutes kept reporting on Mr. Trump, examining changes at the Justice Department and the dismantling of the US Agency for International Development. Most of them were narrated by Pelley, a longtime Owens collaborator and ally.

Despite Mr. Trump’s lawsuit against CBS, Ms. Redstone and executives at Skydance still assumed their deal would close by the end of March or early April, the people said. There were no antitrust concerns and the new entity would be controlled by Larry Ellison, a major Trump supporter, and his son David.

Throughout the end of 2024 and start of 2025, executives at Skydance met with all the top leaders at Paramount to introduce themselves and hear their perspective. Skydance executives have sketched out the leadership team of the new company, but made no official announcements or decisions while the deal is pending.

Former NBC leader Jeff Shell, who is expected to be the president of the combined company, met once with Mr. Owens, who came away heartened that Skydance was supportive of 60 Minutes.

Yet as weeks ticked by, the Paramount-Skydance deal seemed no closer to approval. It became clear to leaders at both companies that the FCC wouldn’t bless the deal until CBS had settled its suit with Mr. Trump. The FCC called upon CBS to release the full transcript of its interview with Harris, which Mr. Trump argued had been edited deceptively to help her win the election.

Mr. Owens initially refused, not wanting to kowtow to the president. Other media companies, such as Walt Disney Co. and Meta Platforms Inc., had paid Mr. Trump millions of dollars to settle lawsuits, and yet Mr. Trump still criticized both companies.

“It was edited not to make her look good or make her look bad,” said Hartman, the 60 Minutes producer. “It was edited for brevity and clarity because we couldn’t run the raw interview. We didn’t have time.”

Executives at both Paramount and Skydance believed CBS should release the transcript of the Harris interview to prove they had nothing to hide. While many felt that 60 Minutes didn’t commit any mistakes grave enough to merit a lawsuit, some inside the company thought the piece shouldn’t have been edited the way it had been, according to several current employees.

Mr. Owens released the transcript in February, but that did little to calm Mr. Trump or the FCC. As Mr. Owens began to weigh the situation, his future at CBS looked uncertain. Ellison was going to make changes in the news division, assuming the deal goes through. And if the Trump fight tanked the deal, Ms. Redstone would blame 60 Minutes, some of the people said.

Mr. Owens gathered his staff in a conference room last week to inform them of his departure. CBS News chief Wendy McMahon spoke, as did correspondents Lesley Stahl and Pelley, with the latter brought to tears. Anderson Cooper, a 60 Minutes contributor, appeared on Zoom from Rome, where he was reporting for CNN. Multiple attendees described the meeting as emotional.

Mr. Owens didn’t officially resign in protest. He and Paramount mutually agreed to part ways – a settlement that will pay him out for the rest of his contract. He hasn’t spoken to the press, though the audio of his meeting was leaked – as was his parting memo. Mr. Owens is still roving the hallways, although sitting out on screenings of upcoming segments.

Executives at Paramount and CBS are aiming to settle the suit with Mr. Trump as soon as possible. Both sides have agreed to mediation. News staffers and media watchdogs are keeping a close eye out for the terms, which may include contributing money to a Trump library and apologizing for the Harris edits, some of the people said.

The Center for American Rights, a nonprofit, public-interest law firm, has filed a complaint with the FCC alleging news distortion at CBS. The group recommends that the commission condition the Skydance merger approval on the addition of an independent ombudsman to field consumer complaints of bias.

All of those concessions are possible if Ms. Redstone wants to get the merger approved, the people said. — Bloomberg

Converge Information and Communications Technology Solutions, Inc. to hold 2025 Annual Meeting of the Stockholders through remote communication on May 30

 

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Keppel Philippines eyes voluntary delisting by June 24

KEPPELPH.COM

INVESTMENT company Keppel Philippines Holdings, Inc. (KPH) is targeting voluntary delisting from the Philippine Stock Exchange (PSE) by June 24 after stockholders approved the move.

“The company requests that the voluntary delisting be effected by June 24, 2025,” KPH said in a regulatory filing on Monday. 

The voluntary delisting received stockholders’ approval on April 24. The petition for voluntary delisting was submitted to the PSE on April 25.

In February, KPH announced the delisting, with Kepwealth, Inc. intending to make a tender offer for all of the company’s outstanding common shares.

The tender offer, priced at P27.40 per share, will run from April 28 to May 27. The settlement date is on June 10.

Kepwealth currently owns 89.86% of KPH’s total issued and outstanding capital stock. The PSE requires that at least 95% of total issued and outstanding common shares be obtained before delisting.

Incorporated in July 1975, KPH was originally established to carry out ship repair and shipbuilding activities in the Philippines. The company was listed on the Makati and Manila Stock Exchanges in 1987. 

KPH transitioned into an investment holding company in 1993. 

On Monday, KPH “A” shares rose by 3.36% or 85 centavos to P26.15 per share, while KPH “B” stocks were last traded on April 8 at P25.85 per share. The trading of the company’s shares was temporarily suspended for an hour following the disclosure. — Revin Mikhael D. Ochave

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