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The Philippines’ push for electric mobility

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Sales of electric vehicles (EVs) in the Philippines are expected to rise by 7% in 2025, with annual purchases projected to reach 20,000 units for the first time.

Rommel R. Gutierrez, president of the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI), said EVs will likely account for 4% of the estimated 500,000 vehicle purchases this year.

In January alone, 1,600 EVs were sold, making up 5.36% of total car sales. Hybrid electric vehicles (HEVs) has 1,445 units sold, followed by battery electric vehicles (BEVs) with 146 and plug-in hybrid electric vehicles (PHEVs) with nine.

Last year, EV sales in the country hit 18,690 units. CAMPI data show sales climbed from 187 units in 2019 to 344 in 2020 and 810 in 2021.

At a public forum in November, Energy Undersecretary Rowena Cristina L. Guevara said the country’s EV market is gaining steady momentum. “If you compare EV sales from last year to this year, I think they either doubled or tripled. Growth was slow, but it’s getting there,” she said.

In 2018, a market study by Frost and Sullivan revealed that 46% of Filipino consumers were open to purchasing an EV, which is considered as one of the highest rates in Southeast Asia.

Toyota Motor Philippines remains the market leader, holding more than 72% of the EV sector as of the third quarter of 2024. The company’s HEV sales surged 186% year over year. Toyota introduced the Prius to the Philippines in 2009, becoming a pioneer in hybrid vehicle offerings.

Government efforts and industry initiatives

The Electric Vehicle Industry Development Act (EVIDA), signed into law in 2022, requires corporations to include EVs in their fleets and provides various incentives for consumers.

The EVIDA aims to help the country meet its Nationally Determined Contributions (NDCs) by reducing greenhouse gas emissions by 75% by 2030. The government seeks to cut the transportation sector’s significant share of air pollution and carbon emissions by promoting EV adoption and expanding charging infrastructure.

The transportation sector accounts for 56% of outdoor air pollution in Metro Manila. EVs help address this by eliminating tailpipe emissions and producing 54% fewer lifetime carbon emissions than traditional internal combustion engine (ICE) vehicles.

The Department of Energy (DoE) plans to accelerate the growth of electric mobility through its Comprehensive Roadmap for the Electric Vehicle Industry (CREVI). The roadmap targets a 50% EV fleet share by 2040, with an interim goal of 2.45 million EVs, including cars, motorcycles, tricycles, buses, and public utility vehicles, by 2028.

Among these, 415,000 HEVs, 69,000 PHEVs, and 69,000 BEVs are targeted.

Government policies have also supported the EV industry’s expansion, particularly the Executive Order No. 62, which took effect in July 2024, that grants zero tariffs on imports of BEVs, PHEVs, and HEVs until 2028.

PHL as EV manufacturer

Ma. Corazon H. Dichosa, executive director of the Board of Investments (BoI) Industry Development Services, said the Philippines could focus on commercial electric vehicle production as an entry point into the broader market through public utility vehicle (PUV) modernization.

“We still have not missed the boat of EV manufacturing since we are already on the boat,” said Ms. Dichosa. She noted that several electric PUV and three-wheeler assemblers operate in the Philippines, along with companies that manufacture battery packs and supply essential electronic components for EVs.

Ferdinand I. Raquelsantos, chairman emeritus of the Electric Vehicle Association of the Philippines (EVAP), said the country remains competitive in the EV industry despite lagging behind regional players.

“Although we have been overtaken by others, I still believe if we can develop local production of commercial vehicles, not only can we supply the Philippine market but also export because nobody is making commercial vehicles in ASEAN,” he said.

With most EV manufacturers focused on passenger cars, the Philippines has an opportunity to serve an underserved market by producing Asian utility vehicles, including delivery vans and public transport vehicles. This strategy could establish the country as a leading EV commercial vehicle producer in the region.

Meanwhile, EVs in general provide a lower total cost of ownership. Maintenance expenses for EVs are approximately 50% lower than those for gasoline-powered cars. Since the country imports over 90% of its oil, reducing fuel dependency through EV adoption enhances energy security and improves the national trade balance.

Investing in electric mobility

The scarcity of charging stations remains one of the biggest barriers to electric vehicle adoption in the Philippines. The country currently has only 592 charging stations — far from what is needed for mass adoption.

The Asian Development Bank (ADB) signed a $100-million financing package with Ayala Corp. to develop electric vehicle charging stations and procure EVs for commercial distribution.

The Canadian Climate and Nature Fund for the Private Sector in Asia (CANPA) will also contribute to the investment, supporting sustainable transport initiatives across the region.

“This project is a significant step towards a sustainable and low-carbon future for the Philippines,” said Pavit Ramachandran, ADB’s Country Director for the Philippines. “By fostering a robust electric mobility ecosystem, we are addressing critical environmental challenges such as air pollution, while also driving economic growth through green jobs and enhancing energy security.”

While challenges such as high initial costs and limited charging infrastructure persist, industry leaders remain optimistic by ramping up efforts to expand the country’s EV ecosystem. — Mhicole A. Moral

Telecommunications as drivers of digital transformation

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By Bjorn Biel M. Beltran, Special Features and Content Assistant Editor

It is easy to take for granted just how much and how drastically technology, or specifically telecommunications technology, has changed the world we live in. Just over 20 years ago, cellphones were primarily used only for calling and texting, and barely anyone has a decent internet connection.

The World Economic Forum estimates that while less than 7% of the world was online in 2000, today over half the global population has access to the internet. Meanwhile, at the start of the 2000s, there were 740 million cellphone subscriptions worldwide. Fast-forward to today, and there are now more cellphones in the world than people.

In the Philippines, that is even more evident. In the early 2000s, internet connections were hardly able to sustain video streaming. Today, one can encounter people playing mobile games — a market that is projected to reach just under $4 billion in Southeast Asia this year — on the commute to work. As another example, in 2005, Facebook had not even existed.

As of the DataReportal Digital 2025 report published just this week, there were a recorded 97.5 million individuals using the internet in the Philippines at the start of 2025, meaning that online penetration stands at 83.8%. There were also a recorded 90.8 million social media user identities in January 2025, roughly 78% of the total population.

Eastern Communications Co-Coordinator Atty. Aileen Regio said that as a head of a storied 145-year-old telecommunications company, she is well aware of how digital transformation has changed people’s lives.

“It has been integral to our evolution and longevity,” she said. “Rather than simply adopting new technologies, we continuously redefine how we deliver connectivity, efficiency, and innovation, integrating technology to ultimately enhance the human aspect of work.”

“It’s about achieving the ease of everyday life, the promise of new opportunities, and being able to secure and future-proof operations, which we confidently offer to our customers. Digital transformation for Eastern cuts across business industries and sizes and applies to everyone. We see it in how the government is automating its processes, in remote learning for education to be accessible to more Filipinos, and in business collaborating with local and global partners. I believe that telcos play a role in each of these scenarios and more,” she added.

Digital telecommunications are enabling countless improvements to people’s lives. As of the latest government data, the digital economy in 2023 amounted to about $35.4 billion, contributing 8.4% to the country’s GDP. Digital-enabling infrastructure is seen as the biggest contributor of the growth of this virtual economy, accounting for around $28 billion or 77.2% of the total.

Mapping future growth

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It is exciting to imagine, then, how much more potential the country can unlock through the digital world. As emerging technologies continue to reshape the global landscape, it is safe to assume that they too will enable new avenues of growth for the Philippines.

“For us, the future of the telecommunications industry is being shaped by several key advancements. These include cloud computing, IoT (internet of things), integrated cybersecurity solutions for end-to-end protection, and the increasing demand for seamless, high-speed connectivity. As businesses become more digitally driven, reliable and intelligent solutions will be key to their growth and success,” Jaeson Evangelista, Co-Coordinator at Eastern Communications, said.

“At Eastern, we are open to embracing new technology, evolving from a traditional telco provider into a full-scale managed ICT services partner. We continuously explore new ways to support businesses in their digital transformation, ensuring they have the technology and connectivity needed to thrive.”

According to the e-Conomy SEA 2023 report, jointly produced by Google, Temasek, and Bain & Company, the digital economy in the Philippines is projected to reach $150 billion in gross merchandise value by 2030. This growth will be mainly driven by the e-commerce sector, which includes online media, travel, transport, and food delivery services.

Even technologies like virtual reality (VR) and augmented reality (AR) are creating new opportunities. “With regard to immersive experiences like VR and AR, the country is steadily moving toward readiness. While adoption is still in its early stages, industries such as retail, education, healthcare, and entertainment are beginning to unlock their potential,” Mr. Evangelista said.

“With sustained investments in connectivity and more resilient digital infrastructure to support future applications, the country is steadily moving toward a future where immersive technologies can be fully realized and integrated into everyday business operations.”

However, certain measures have to be taken to ensure the growth of the digital economy is secure and inclusive. Last year, President Ferdinand R. Marcos, Jr. issued Executive Order (EO) No. 58, officially adopting the National Cybersecurity Plan (NCSP) 2023-2028, developed by the Department of Information and Communications Technology (DICT). Under this, the government aims to a create a clear policy direction and operational framework, ensuring an integrated, whole-of-nation approach to securing the country’s digital infrastructure.

The initiative also includes working with the private sector to provide technical assistance to various government agencies to enhance cybersecurity measures across the country.

“As technology keeps evolving, cyberthreats are also becoming more advanced. By integrating advanced cybersecurity tools into our connectivity and ICT solutions, we provide businesses with a stronger, more resilient defense, ensuring safer and more secure operations,” Mr. Evangelista said, adding that they are also looking to expand their reach to more people in remote provinces.

“Expanding digital infrastructure in provincial areas comes with several challenges, including geographical constraints and the need for strong, sustainable technology. As we steadily grow and improve our network, we are prioritizing investments in high-tech, durable, and sustainable infrastructure to ensure long-term reliability and resilience.”

“By continuously enhancing our network, expanding our portfolio of intelligent solutions, and delivering a best-in-class customer experience, we ensure that businesses have the tools they need to thrive in a rapidly evolving digital landscape,” Ms. Regio said.

“Staying competitive also means learning from the past, anticipating industry shifts, and remaining agile in the face of change, which is why moving forward, we are committed to exceeding customer expectations in each touchpoint.”

Telco’s role in navigating digital challenges

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Digital connectivity has made the world more interconnected than before, and it has also further enabled individuals to learn, work, and thrive. Such connectivity is backed by the telecommunication industry, which holds the digital world together through the various services of providers.

This advancement in connectivity, however, brings along certain risks, which every telecommunication provider must be prepared to recognize and address.

Privacy and security

As data flows at a rapid pace, digital threat is constantly adjusting to technological advancements. As teleco companies collect and store increasing amounts of data, they encounter greater risks of data privacy and security.

However, tools like artificial intelligence (AI) and generative AI are seen to carry the potential to advance operational efficiencies and service offerings. And while potentials of AI are frequently discussed, it is essential to also focus on the potential disruptions it has on individuals, businesses, and various sectors.

To keep pace, telcos are strengthening cybersecurity measures within their operations. This entails establishing effective security measures with multi-layered defense strategy adhering to regulatory standards.

Skill gap and mismatch

The move towards digital transformation necessitates a workforce equipped with digital skills, such as cloud computing, cybersecurity, and data analytics. However, finding and retaining the right talent is a challenge that must be addressed. For telco companies, having skilled workers and professionals is essential for managing complex networks and developing new services.

According to an Ernst & Young (EY) study, factors that hinder organization transformation include poor internal collaboration and skills gap. EY also found that 85% of telco employees believe that human resources functions will need to adapt significantly, highlighting the need for transformation in talent management.

In response to the skill gap and mismatch, telco companies are revolving their employee proposition. Focusing on attracting younger talent with digital and software capabilities will help the sector establish a more robust and sustainable workforce.

Notably, EY also revealed that 73% of telco leaders are prioritizing talent attraction and retention within their people strategy. It also indicated a strong focus on reskilling (50%) and fostering collaboration (42%), which senior executives identifies as key priorities.

Network infrastructure and reliability

One crucial element in digital transformation is its ability to modernize infrastructure. This involves upgrading network equipment, servers, and other hardware to better manage data volumes and improve connectivity. A modern infrastructure is crucial for telco network transformation as it enables faster and reliable service delivery.

But even with persistent efforts to advance infrastructure, unreliable network services still loom in. For instance, according to EY, 25% of households globally continue to struggle with unreliable fixed broadband connectivity, with no year-on-year progress. Mobile data reliability is also declining, and the growing use of AI could be leading to increased uplink traffic, which adds more strain on network capacity.

A strong network design is important for stronger infrastructure and network reliability. To develop a more resilient infrastructure, several interventions are considered, such as assessing the current telco network’s ability; identifying risks, resiliency measures, and cost-saving opportunities; enhancing the network’s capacity; and developing backup and recovery plans.

Digital divide

According to CDO Trends, there are still about 2.6 billion people without access to internet connectivity and digital devices. In developed countries, only 27% are considered internet users, and as advanced mobile network technology continues to evolve, this digital divide is growing even wider.

Hence, telco companies are finding innovative ways to offer accessible and date-driven services, reaching underserved users and communities. They are leveraging cloud technology to open up new revenue possibilities and encourage partnership across industries. With seamless and integrated offerings, telcos can grant access to digital platforms, particularly in areas that lack digital resources; promote digital user adoption; expand their market reach; and champion digital inclusion. — Angela Kiara S. Brillantes

Expanding retail’s footprint on malls

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By Jomarc Angelo M. Corpuz, Special Features and Content Writer

As a consumption-driven economy, retail has always been a thriving industry in the Philippines. According to data from the Philippine Retailers Association (PRA), the industry generated approximately P4.7 trillion in revenue for 2024 alone. This year, the PRA forecasts that number to grow by up to 15% or nearly P5.4 trillion driven by healthy remittances and a growing population.

Despite this growth, there are several roadblocks that could hinder the retail sector’s expansion. Chief among these are the perceived rise in the price of goods, the rise in vacancies in retail spaces, and strong competition from e-commerce.

While the country’s inflation rate did decelerate to 3.2% in 2024, it followed two years of elevated inflation, with rates reaching 5.98% in 2023 and 5.82% in 2022. The lingering effects of past inflationary spikes may have influenced consumers to become more price-conscious, prioritize essential goods, and seek greater value in their purchases.

Vacancies in the retail property segment have also been rising ever since closures from the pandemic. A Colliers report in the first quarter of 2024 noted that the vacancy rate in retail spaces was 15.5%, which is projected to increase to about 17% by the end of last year. This rising vacancy rate highlights the challenges faced by mall operators and retailers in attracting tenants and sustaining foot traffic.

With e-commerce gaining a major foothold among Filipino consumers, brick-and-mortar retailers have faced mounting pressure to stay relevant. Data from the PRA shows that e-commerce made up just 3%-5% of total retail sales pre-pandemic. By 2023, this share had surged to 20%-25%. This shift has forced traditional retailers to rethink strategies, with many struggling to compete against the convenience, variety, and competitive pricing of online platforms.

Facing these challenges, malls remain a key area in retail expansion, offering strategic spaces for brands to grow their footprint. Several strategies can be implemented by developers and retailers to attract more customers, bring people back to malls, and maintain relevance in an increasingly digital world.

One of the ways malls can help retail expand their footprint is by choosing the right tenants for their retail spaces. Several factors are usually taken into account when planning which brands these shopping centers should rent to — what customers want, what’s new in the industry, and what’s missing in the mall.

Rockwell Land Corp. Senior Leasing Manager Maiki Banzon revealed in an email interview that Rockwell does a lot of careful thought and planning into choosing what concepts to bring into their malls and that their main consideration is what they feel their customers would want to see in their shopping centers.

“We think of concepts that will delight our customers. We also keep an eye out for new and exciting international and local brands. We like to be able to bring in new brands or firsts in the country. We also consistently review our existing stores to see if there are any gaps in our offerings,” she explained.

Other than having the right mix of tenants, leveraging technology is another method to enhance the retail experience, attract more individuals, and make shopping more seamless, engaging, and rewarding for customers.

Rockwell Land Marketing Manager Elise Lim noted how technology has dramatically transformed the Rockwell retail experience in the last three years. The high-end shopping center developer has implemented various innovations from using QR codes as a means to enable its customers to shop and dine safely; to a comprehensive digital ecosystem that now houses a hybrid e-commerce platform with a physical pop-up store; a restaurant reservation system; digital parking payment methods; and the country’s first mall-wide artificial intelligence-powered rewards program.

“The Rockwellist mobile app has ultimately become a way for us to connect with the Rockwell community more meaningfully — making every visit to Power Plant Mall much more convenient, rewarding, and exciting. Aside from us being able to nurture relationships at scale, technology allows us to continue to do so with a personal Rockwell touch,” she said.

Making malls sustainable

Sustainability has also been a factor in attracting modern consumers, who are increasingly drawn to eco-friendly practices, energy-efficient spaces, and brands that prioritize environmental responsibility. Jovan Barrago, senior operations manager of Rockwell Land, shared that the mall chain’s sustainability initiatives revolve around energy, water, waste, architecture and landscaping, and people.

For energy, all of Rockwell’s retail locations use renewable energy through renewable energy services (RES) and the Green Energy Option Program (GEOP), using electricity from green energy sources such as geothermal power plants. This initiative reduces the mall chain’s greenhouse gas emissions by 80%.

Rockwell malls feature 100% LED lighting with automatic on/off controls, upgraded Chilled Water and Exhaust Motor Systems for reduced energy consumption, and installed direct current (DC) fast EV chargers to support sustainable transportation. These innovations led to Power Plant Mall winning second place in Best Greenhouse Gas Emissions among Makati malls from the Makati City Government last year.

Saving water is also an emphasis of the retail mall developer. Rockwell malls use low-flow fixtures, such as toilets and faucets, reducing water consumption by 60%-80% compared to traditional fixtures. Additionally, rainwater harvesting is implemented at Arton Strip, while water recycling is available at Santolan Town Plaza and will soon be introduced at Power Plant Mall.

Meanwhile, the company’s shopping centers prioritize waste management through a comprehensive segregation system. Food waste is converted into frass (compost) and donated to the Department of Environment and Natural Resources, while used cooking oil from food & beverage stores, and machinery oil are processed into bunker oil for reuse in the cement industry, promoting sustainability and responsible waste disposal.

Mr. Barrago also stressed the importance of integrating sustainable architecture and landscaping by utilizing natural lighting through glass roofs and skylights at Power Plant Mall. Green walls with plant vines along perimeter walls help regulate temperature, reducing cooling energy and greenhouse gas emissions.

With a focus on sustainability and well-being, Rockwell malls provide bicycle racks to encourage eco-friendly commuting. The company actively participates in Earth Hour to promote environmental awareness, and it also collaborates with local government units to conduct waste management seminars for retail tenants, fostering a culture of sustainability.

As malls continue to adapt to new challenges, they remain at the heart of the Philippine retail industry. Through different strategies that emphasize innovation and sustainability, these shopping centers reinforce their role as vibrant community hubs that drive economic growth helping the future of retail in the Philippines to thrive.

The Philippines as a rising star in Southeast Asia retail

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The Philippines is turning heads on the global stage. With the country set to achieve upper-middle income status this year, more foreign investors are checking the potential opportunities the Philippines provides. More brands are coming in, and they are bringing even more fuel to power the country’s economic engine.

According to global professional services firm Colliers in its 2025 Philippine Property Market Outlook Report, foreign retailers were finding the country more attractive for investments.

“The Philippine economy is primarily consumption-driven, and this entices foreign retailers to invest in the country,” Colliers said. “Foreign players are now more aggressive in taking up physical mall space.”

In April last year, Japanese furniture and home accessories giant Nitori launched its first store in the Philippines at Mitsukoshi in Bonifacio Global City, with a pledge to have as many as 65 Philippine stores by 2035.

Nitori is the largest furniture and home furnishing chain in Japan, with 810 stores in its home country and 173 stores in other regions around the world. In 2023, there were 340 million customers who visited the Nitori stores, making it one of the biggest home-furnishing brands in Asia.

Meanwhile, Australian home and lifestyle retailer Kmart chose the Philippines as the location for its first foray into Southeast Asia. Rebranding itself as Anko, the store opened its doors at Glorietta 2 in Makati last November. Anko offers a variety of similar products to its Australian counterpart, including homewares, storage solutions, bedding, children’s toys, beauty products, fitness gear, and pet essentials.

Outside of malls, DALI Everyday Grocery, a Swiss international retail chain, entered the market in 2022, and has since rapidly expanded to over 630 stores in Luzon as of last year. It aims to reach 950.

DALI claims to be building the first neighborhood “Hard Discounter,” aiming to become the price leader of the Philippines, selling food & non-food products for daily use at the lowest possible price possible.

Colliers Research Director Joey Bondoc further explained to the press that food and beverage (F&B) retailers were also “taking advantage of Filipinos’ affinity for food and our economy being led by personal consumption,” adding that he expects to see foreign F&B brands take up less than a third (31%) of the total space to be occupied by F&B retailers in Metro Manila in the next 12 months.

The most recent notable entry in the Philippine market is Indonesian coffee chain Kopi Kenangan, which has furthered its international expansion strategy with the first of 10 planned stores in the country.

Partnering with Filipino franchise group Fredley Group of Companies — which manages brands like Macao Imperial Tea, Nabe, and New York Fries and Dip — Kopi Kenangan launched as Kenangan Coffee at Manila’s SM Mall of Asia in November.

Founded in 2017, Kopi Kenangan is one of the largest branded coffee chains in Indonesia with over 900 outlets across 60 cities. The Jakarta-based coffee chain now has a presence across four Southeast Asia markets after debuting in Malaysia in October 2022 and Singapore in September 2023. It currently operates 71 in Malaysia and seven in Singapore.

Colliers’ Mr. Bondoc expects vacancy rate in the retail property space to slightly shrink to 15% this year as a result of the increased attention that the Philippines is garnering from abroad. “It is obvious that foreign retailers are taking advantage of our young and millennial workforce that propel spending across the country,” he said.

He noted that this is amid an initiative by many property developers that redesigned their existing retail spaces to introduce new concepts and become “more experiential [and] less transactional.”

This will allow retail developers to take advantage of the high demand for “more immersive experiences” inside malls, expanding their food halls, upgrading cinemas, and putting up pop-up stores to gauge market sentiment.

“This segment is making a comeback after being disrupted heavily by the pandemic due to physical distancing,” he said. — Bjorn Biel M. Beltran

Keeping up with top shopping trends

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As new styles and innovations keep emerging, retailers are constantly seeking for ways to keep the shopping experience fresh and more engaging. The following trends in shopping are guiding malls and retail spaces to seamlessly connect with shoppers and set modern shopping to higher standards.

Omnichannel shopping

From merely physical spaces, shopping is now being redefined to a combination of in-store and online shopping. According to audience research company GWI, 59% of people prefer online shopping, while 41% are still shopping in physical stores globally. Interestingly, in the Philippines, a unique shopping trend has emerged, with many embracing omnichannel shopping.

At a Retail Asia Forum 2024, Jerome Andrew Garcia, Principal of Advisory Services at KPMG in the Philippines, emphasized that 61% of Filipino consumers prefer the omnichannel approach, while 22% prefer physical stores, and 17% with online.

This trend allows shoppers to seamlessly blend their shopping habits, for example, browsing items online or checking local store inventories, depending on what is most convenient for them. Ultimately, the goal is to create a shopping experience that is both seamless and personalized, empowering consumers to make shopping choices that align with their lifestyles.

“People browse online before they come to the store,” Rosemarie Bosch Ong, Wilcon Depot, Inc.’s senior executive vice-president and chief operating officer, said in the same forum. “We’ve learned that people browsing before coming to the store greatly enhances the chance they’ll buy something in-store.”

Adding to this, the omnichannel approach has equipped retailers to track and analyze trends and data insights in real-time, enabling them to cater to consumer preferences more efficiently, as Jayan Dy of SM Retail said.

“A specific example is when we noticed an increase in demand for cranberry bread in a particular urban area. Upon checking, even offline sales matched that trend,” he said.

Personalization

Moreover, in modern shopping, personalized shopping drives tangible results, enabling brands to serve customers more effectively. Recently, brands and retailers have been leveraging artificial intelligence (AI) technology to create more customized shopping experiences, using data analytics and behavior insights to better cater to consumer preferences. With AI on board, shopping has reached an entirely new level of personalization.

Recognizing AI’s potential, GWI indicated that 56% of Gen Z are optimistic about AI’s impact on society. On another note, a recent study by McKinsey & Company revealed 71% of consumers expect businesses to provide personalized interactions, while 76% feel frustrated when they don’t get such kind of interaction.

AI fundamentally enhances personalization in retail, offering benefits such as more efficient customer engagement, creative and tailored content, refined marketing strategies, and customizing of promotions and product recommendations across e-commerce platforms and other marketing channels.

“Many retailers view AI and GenAI (generative AI) as a way to reverse the downward trends and accelerate growth,” McKinsey explained in a report. “An increasing number are starting to experiment with AI to improve mass promotions. But companies can be more strategic by employing AI for targeted promotions, using data to tailor discounts based on people’s shopping preferences or their affinity for different types of offers. With a more granular approach to customer segmentation, retailers can craft promotions that target specific customer life cycle stages (such as new-customer acquisition, customer retention, repeat purchase, or risk of churn) or specific business objectives (such as promoting a particular brand or category or encouraging cross-selling).”

Experiential retail

Another rising trend in shopping is experiential retail, where shopping destinations are transformed into immersive environments, where entertainment, interaction, and the community come together as one. Experiential retail can thus be another means of creating meaningful connections with today’s shoppers and attracting them to physical stores.

By embracing this trend, retailers can enhance brand strategies and unlock numerous benefits. This involves designing immersive store environments that highlight the brand identity and invite shoppers to interact with their products. Another way is integrating technology, such as augmented reality (AR), virtual reality (VR), and mobile apps that can provide fun and engaging experiences that go way beyond simple browsing.

In experiential retail, retailers can transform their stores from mere points of sales into dynamic destinations that captivate today’s experience-driven consumers. Brands that go the extra mile to create unique shopping experiences can cultivate deeper customer connections and strengthen their brand reputation.

For instance, Ayala Malls has been redeveloping its four iconic malls — Glorietta, Greenbelt, TriNoma, and Ayala Center Cebu 3 — since last year, to create immersive shopping experiences that fuses shopping, entertainment, and technology. This redevelopment focuses on providing the best dining, entertainment, and leisure experiences for shoppers. For Ayala Malls, this initiative is crucial as it strives to meet the new tastes of the generation, enhance customer engagement with advanced technology, and set new standards in retail landmarks.

“With this transformative era, Ayala Malls firms up its dedication to creating dynamic, innovative, sustainable, and memorable malls that serve, empower, and celebrate the local communities the malls are embedded in. Ayala Malls moves towards the future with a strong vision to be the mall of choice — the mall that customers keep coming back to, the third space that customers love,” the company said on its website.

Going sustainable

More than an accessory, sustainability has also become one of retail’s latest components in response to an apparent consumer shift for sustainable products. GWI’s report noted that 58% of consumers are willing to pay more for eco-friendly products.

2025 marks a transformative period for retail, where integrating sustainability into modern shopping is reshaping the market. The benefits are clear: less environmental impact, attracting more environmentally conscious consumers, less material waste, and improved brand reputation. But more importantly, this trend highlights the growing importance of environmental responsibility in businesses, and how it is redefining the future of retail, creating a more responsible and resilient landscape.

Prominent shopping centers and retail brands in the country are championing sustainable shopping through various initiatives. For example, SM Supermalls allows shoppers to upgrade their digital devices into new ones at the Power Mac Center. For those looking to dispose of old or broken electronic devices responsibly, SM Cyberzone offers e-waste collection points. Brands like H&M and Uniqlo use recycled and sustainable sourced materials in their clothing lines. — Angela Kiara S. Brillantes

PLDT profit up 21.4% to P32.3B in 2024, eyes up to P73-B capex

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PANGILINAN-LED PLDT Inc. saw its attributable net income for 2024 climb by 21.4% to P32.31 billion, fueled by the company’s all-time-high service revenue growth. 

The company’s consolidated revenue for the period surged to P216.83 billion, marking a 2.8% increase from P210.95 billion in 2023, mainly driven by growth in its service revenues.

Broken down, PLDT’s service revenue increased by 3.2% to P208.38 billion from P201.83 billion in 2023, while its non-service revenues declined to P8.45 billion, down 7.3% from P9.12 billion in the comparable period a year ago.

The company’s service revenue growth was primarily driven by improvements in its data and broadband topline, which grew by 3% to P162.1 billion, PLDT Chief Financial Officer and Chief Management Officer Danny Y. Yu said in a briefing on Thursday. 

Its wireless segment recorded total revenue of P83.5 billion in 2024, reflecting a 2% year-on-year increase.

Telco core income, which excludes the impact of asset sales and losses from Maya Innovations Holdings, reached P35.14 billion, rising by 2.3% from P34.34 billion in 2023.

“Our 2024 results highlight PLDT’s resilience and the continued demand for reliable connectivity. But our intention is to use this as a benchmark for even better performance in the coming years,” said PLDT and Smart Chairman and Chief Executive Officer Manuel V. Pangilinan. 

For 2025, Mr. Pangilinan said the company is confident it can sustain its growth, noting that it would be in an “even better position” in terms of growth trajectory.

CAPEX GUIDANCE
This year, PLDT has set a capital expenditure (capex) guidance of between P68 billion and P73 billion to fund its network rollout, new cell sites, 5G network upgrades, and artificial intelligence initiatives. 

The company’s capex guidance for this year is significantly lower than its total capex spending in 2024, which stood at P78.2 billion.

Meanwhile, Maya, PLDT’s financial technology arm, achieved growth after recording 5.4 million bank customers, up 71% year-on-year.

Earlier, Mr. Pangilinan said the group was looking to increase its stake in Maya Bank, Inc. Maya is owned by Voyager Innovations, Inc., while PLDT is Voyager’s main shareholder. 

To recall, KKR tapped Goldman Sachs for the possible sale of its minority stake in Maya. KKR owns more than 20% of Maya.

“We know they (KKR) are trying to scan the market for the value of Maya, so you see Maya is just starting to turn the corner. We’d be keen to increase our stake for whatever might be available,” Mr. Pangilinan said.

Mr. Pangilinan said the company’s negotiations with European fund manager CVC Capital Partners for the sale of a minority stake in its data center business, ePLDT, Inc., have ended.

“We are in discussions at the moment with another potential foreign investor,” Mr. Pangilinan said, though he declined to identify the new investor.

Previously, the company had engaged Japan’s Nippon Telegraph and Telephone (NTT) for the potential sale of up to 49% of its data center business, but that deal was also eventually dropped. 

To date, PLDT, through its subsidiary ePLDT, Inc., operates 11 data centers, including the 50-megawatt hyperscale data center in Sta. Rosa, Laguna.

At the local bourse on Thursday, shares in the company fell by P12, or 0.86%, to close at P1,376 apiece.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., holds a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose

The Mall of Asia turns to the skies

Families and friends take pictures at the newly opened MOA Sky.

Rooftop space repurposed for sports, entertainment, and art

THE LARGEST MALL in the Philippines, SM Mall of Asia (MOA) in Pasay City, just got a little bit bigger with the addition of MOA Sky, its redeveloped rooftop area on the fourth level of the mall.

MOA Sky is essentially a full kilometer of interconnected plazas, wide open spaces, and promenades, differentiated by distinct sections — a FIFA-grade football pitch, a spiritual sanctuary, an open-air amphitheater, and a pet park.

“Today, we don’t just open a new space, we unveil a bold new era for SM Mall of Asia,” said SM Supermalls Chief Executive Officer and President Steven T. Tan at the Feb. 25 launch of the MOA Sky.

He added that repurposing the rooftop was “all part of [SM Prime Holdings chairman] Hans Sy’s vision.”

“This isn’t just an expansion; it’s a transformation, a realization of a vision set in motion more than a decade ago. I remember it vividly. ‘We have to wow our customers,’” Mr. Tan recalled.

The sports facility is one of the highlights, especially for football fans. The MOA Football Pitch is a full-sized field that seats 1,800 spectators, viable for both college matches and international tournaments.

To inaugurate the venue, the Philippine Women’s National Football Team held a friendly match on the night of MOA Sky’s launch. Philippine Football Federation John Gutierrez said at the event that the FIFA-graded pitch represents “a big boost in Philippine football.”

“This isn’t just about a football pitch. It’s about proving that football belongs here, that it has a future here,” he explained. “It’s going to be a big help to the growth of football here in the country.”

The 3,200-square-meter MOA Sky Amphitheater is just as groundbreaking, providing a new space in Metro Manila for large concerts, fashion shows, and open-air performances. The unveiling saw singer-songwriter Adie, alternative rock band Hale, and indie pop band December Avenue become the first three acts to ever perform at the venue.

Scattered throughout MOA Sky are Filipino-American artist Jefrё Figueras-Manuel’s four-meter-tall sculptures of the 12 animals of the Chinese Zodiac, which mallgoers can snap pictures with. There are QR codes beneath the sculptures where people can view their personalized horoscopes.

“When I was asked by the Sy family to create a sculpture here, I said yes because it was an opportunity to create iconic works in the biggest sky garden in the Philippines!” said Mr. Figueras-Manuel at the unveiling.

“We created a series of Zodiacs because of the idea that all of us here at this sky looking up to the heavens, looking for traits that we all want to achieve that make us part of one story,” he added.

For Mr. Tan, public art “gives Filipino people pieces of beauty to appreciate,” wherever they may be. “It really elevates the whole experience,” he said.

Meanwhile, the MOA Sanctuary offers an escape for spiritual enrichment. It houses “a sacred space for prayer and reflection,” the glass structure with its own secluded pocket gardens serving as the quietest part of the rooftop expanse.

Pet parents can also bring their fur babies to the Paw Park, which features specialized play zones. All throughout the rooftop space, families and friends with their pets are welcome to sit down and have picnics. The North and South Sky Plazas will sometimes host fairs, markets, and art exhibits.

Mr. Tan emphasized “SM Prime’s commitment to sustainability,” evident in the three-megawatt peak solar photovoltaic rooftop which powers the energy used in the entire space.

“This is more than just a landmark. It is where art, sports, entertainment, and sustainability converge into one,” he said. — Brontë H. Lacsamana

ABS-CBN sells 68% of Quezon City property to Ayala Land for P6.24B

PHILSTAR FILE PHOTO

AYALA LAND, Inc. (ALI) has signed a memorandum of agreement to acquire a portion of ABS-CBN Corp.’s property in Quezon City for P6.24 billion. 

In separate disclosures on Thursday, ABS-CBN and property company Ayala Land confirmed the agreement for the sale of ABS-CBN’s property in Quezon City. 

The sale covers up to 30,000 square meters, or 68.14% of ABS-CBN’s 44,027.30-square-meter property.

The agreement is subject to certain conditions, including clearance from the Philippine Competition Commission (PCC). 

The two parties agreed on the valuation after negotiations and a due diligence review, ABS-CBN said.

Following the sale, ABS-CBN will consolidate its operations within the remaining 1.4-hectare property in Quezon City.

ABS-CBN said proceeds from the sale will be used to prepay its outstanding bank loans.

“Down payment shall be placed in an escrow account to be released to ABS-CBN upon completion of certain conditions precedent and signing of the Deed of Absolute Sale. The balance shall be payable in installments over 10 years,” ABS-CBN said. 

For the third quarter of last year, ABS-CBN’s attributable net loss narrowed to P389.87 million, down from P1.02 billion in the same period a year ago. Revenues for the period declined to P4.33 billion from P4.73 billion in the third quarter of 2023.

At the local bourse on Thursday, ABS-CBN shares closed 12 centavos higher at P4.75 apiece. — Ashley Erika O. Jose

Conan O’Brien says Oscars can’t avoid politics but won’t dwell on it

CONAN O’BRIEN at the 2015 San Diego Comic Con International in San Diego, California. — GAGE SKIDMORE/WIKIMEDIA COMMONS

LOS ANGELES — Conan O’Brien said he does not think he can avoid politics when he steps on the stage on Sunday to host the Academy Awards, the highest honors in the movie business.

Past hosts and winners in traditionally liberal Hollywood often commented on current events, at times sparking angry critiques from Donald J. Trump on social media.

Republican Mr. Trump returned to the White House as president in January.

I think as host I cannot ignore the moment we’re in right now, but also it’s threading a needle,” Mr. O’Brien, a first-time Oscars host, said at a press conference. “I want to do it with humor and also make sure the night doesn’t drift into only about that.”

The Oscars will be broadcast live on Walt Disney’s network on Sunday.

Mr. O’Brien said he had a responsibility to celebrate the actors and craftspeople who worked on the nominated movies while acknowledging current events. “It’s a difficult line to walk, but I’m determined to do it,” he said.

He promised a festive night, a luxurious tuxedo custom-made for him by a Los Angeles designer and “for the first time in my career — incredible lighting.”

He also joked that he would take jabs at beloved Hollywood figures such as Ron Howard and Tom Hanks. “I’m going to take ’em both down.”

Mr. O’Brien said he could not reveal much else about the show.

“I don’t go to rehearsals. I hang out at a Cheesecake Factory,” he quipped. — Reuters

SEC pushes on with AML reforms to prevent FATF relisting

BW FILE PHOTO

By Luisa Maria Jacinta C. Jocson, Reporter

THE SECURITIES and Exchange Commission (SEC) is ramping up reforms by launching a beneficial ownership registry, tightening oversight of financial institutions and non-profits, and drafting new crypto asset regulations to ensure the Philippines does not return to the Financial Action Task Force’s (FATF) “gray list,” its chairman said.

“The next two years will be crucial as the Philippines prepares for another mutual evaluation, where the country’s AML/CFT standards will be assessed for compliance with global standards,” SEC Chairperson Emilio B. Aquino said during a briefing on Thursday. 

“Failure to address identified risks — such as gaps in beneficial ownership transparency, enforcement actions, or emerging financial threats — could increase our risk of going back to the gray list,” he added. 

The FATF last week removed the Philippines from its list of jurisdictions under increased monitoring for “dirty money” risks. 

The country had been on the gray list for over three years, since June 2021. The dirty money watchdog said the Philippines’ removal was due to progress in addressing strategic deficiencies in anti-money laundering, countering the financing of terrorism, and proliferation financing (AML/CFT/CPF).

In 2027, the Philippines will undergo a new assessment, during which the FATF will verify whether the measures remain in place. 

The SEC said it will continue cooperating with other government agencies and authorities to combat money laundering and other illicit financial activities.

PROJECT HARBOR
The SEC plans to launch the Hierarchical Applicable Relations and Beneficial Ownership Registry (Project HARBOR) this year. This will serve as a “registry of beneficial ownership information that will be easily accessible to partner agencies through data-sharing agreements.”

“Project HARBOR’s features will include automated data validation, configurable access levels for authorized users, and analytical tools for identifying complex ownership structures.”

The registry aims to streamline beneficial ownership disclosures, promote regulatory transparency, and enhance compliance with global AML/CFT standards.

“Project HARBOR will modernize how we manage beneficial ownership data, reducing manual interventions and facilitating a secure, efficient disclosure process for corporations, thereby addressing concerns over the accuracy of beneficial ownership information submitted to the SEC,” Mr. Aquino added. 

NON-PROFIT ORGANIZATIONS
The SEC also said it will continue to monitor the non-profit organization (NPO) sector through regular offsite and onsite examinations. 

“The SEC has committed to continuing outreach and knowledge-sharing activities for the NPO sector, while also encouraging unincorporated entities to register with the Commission to reduce their risk of being used for money laundering and terrorist financing.” 

The FATF, in its statement, emphasized that the Philippines’ reform measures should not impede legitimate nonprofit activities. 

“We recognize the important role that non-profit organizations play in nation-building through the advocacies they put forward,” Mr. Aquino said.

“At the SEC, our goal in regulation is to improve corporate governance without unduly burdening legitimate NPO activities,” he added. 

The SEC said it is also streamlining processes and removing redundancies by prioritizing engagement with NPOs through capacity-building initiatives instead of imposing additional regulatory requirements. 

FINANCIAL INSTITUTIONS
“Aside from the NPO sector, the SEC is also strengthening enforcement of AML/CFT policies over financial institutions under its jurisdiction, including brokers, dealers, lending and financing corporations, and other securities dealers, in line with its mandate as the country’s capital market regulator.” 

Mr. Aquino said the SEC is also closely monitoring virtual currencies and other digital assets.

“To mitigate risks, the Commission is drafting new rules on crypto-asset service providers (CASPs) to enhance oversight and supervision of businesses engaged in offering, trading, and other activities involving innovative financial products.”

The draft guidelines for CASPs have already been released for public consultation, the SEC added. 

“The SEC reiterates its commitment to implementing the necessary measures in compliance with evolving global AML/CFT standards, ensuring that the Philippines’ presence on the FATF gray list will finally become a thing of the past,” Mr. Aquino said. 

IMPACT
The banking, financial institutions, and financial technology sectors could see a boost in investment. 

“There are a lot of potential venture capitalists and private equity firms interested. They will bring in their money as long as the country is not seen as a high-risk investment destination. Now, with our removal from the gray list, the Philippines has become more attractive. Investors no longer have to worry,” Mr. Aquino said. 

In 2002, the FATF blacklisted the Philippines for having no legal anti-money laundering framework. The country was removed from the blacklist a year later after the passage of the Anti-Money Laundering Act. 

Last year, President Ferdinand R. Marcos, Jr. directed all relevant agencies to work toward the country’s removal from the gray list by October. 

In July, Malacañang issued an executive order mandating all government offices to adopt the National Anti-Money Laundering, Counter-Terrorism Financing, and Counter-Proliferation Financing Strategy 2023–2027.

Peso dips as Trump tariff vs EU fans trade war fears

BW FILE PHOTO

THE PESO dipped against the dollar on Thursday after US President Donald J. Trump said he would slap a 25% tariff on the European Union (EU), which vowed to counter “firmly and immediately,” fanning fears of an escalating trade war.

It closed at P57.91 a dollar, three centavos weaker than its P57.88 finish on Tuesday, according to Bankers Association of the Philippines data posted on its website.

The peso opened at P57.87 against the dollar, weakened to as much as P57.92 and strengthened to as much as P57.85. Volume fell to $1.07 billion from $1.09 billion on Tuesday.

“The peso weakened from safe-haven demand after US President Trump announced 25% tariffs for the European Union,” a trader said in an e-mail.

The US leader on Wednesday said he plans to slap cars and other goods from the European Union a 25% tariff. The EU vowed to counter “firmly and immediately.”

The dollar-peso also traded cautiously as players awaited key US data to be released overnight, including initial jobless claims and durable goods, in addition to US GDP, another trader said by telephone.

The second trader expects the peso to weaken further on Friday on expectations of an upbeat report on US durable goods.

The first trader expects the peso to trade from P57.70 to P58.10 a dollar, while the second trader sees it at P57.80 to P58.05.

The dollar firmed in Asia on Thursday and Treasury yields ticked higher as investors assessed the outlook for tariffs and the economy under Mr. Trump.

Asian stocks were weaker overall in volatile trading, with tech shares around the region getting little steer from earnings of heavyweight US chipmaker and artificial intelligence darling Nvidia.

Cryptocurrency Bitcoin languished near the $85,000 mark, while safe-haven gold steadied some $64 an ounce below its record high as trade war worries kept market sentiment fragile.

Mr. Trump clouded the outlook for looming levies on top trading partners Canada and Mexico on Wednesday by signaling they would take effect on April 2, which would be another month-long extension.

However a White House official later said the previous March 2 deadline for the levies remained in effect “as of this moment,” stirring further uncertainty about US trade policy.

US two-year Treasury yields rose to 4.09%, finding their footing after a slump to the lowest since Nov. 1 at 4.065% in the prior session. The 10-year yield rose to 4.2809% from a low of 4.245% on Wednesday, a two-and-a-half-month trough.

The dollar and US yields have been under pressure in recent weeks as a run of soft economic indicators have combined with growth worries arising from Mr. Trump’s tariff plans.

Traders have raised bets for Federal Reserve interest rate cuts in recent days, now seeing two quarter-point reductions this year, with the first likely in July and the next as early as October.

Markets will look at GDP and durable order data due on Thursday for any stronger signs of slowdown, while the Fed’s preferred inflation gauge, the personal consumption expenditure index, is due on Friday.

“Markets are starting to feel less confidence about US growth,” said Shoki Omori, chief global desk strategist at Mizuho Securities. “US data surprises will continue to be towards the downside,” although as economists start to adjust their forecasts toward weaker outcomes, and with inflation still “sticky,” 10-year Treasury yields are unlikely to fall below 4%, he added.

The dollar index, which measures the currency against six major rivals, rose 0.24% to 106.7, continuing its climb off a two-and-a-half-month low of 106.12, reached earlier this week. — Aaron Michael C. Sy with Reuters

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