EDC plans 90-MW expansion of Bac-Man geothermal complex

August 4, 2025 | 12:01 am

RENEWABLE ENERGY firm Energy Development Corp. (EDC) is looking to expand its existing Bacon-Manito (Bac-Man) geothermal complex with an additional 90 megawatts (MW) of capacity.

EDC President and Chief Operating Officer Jerome H. Cainglet said the company is evaluating the opportunity based on the results of its resource assessment.

He said the planned expansion may be pursued within the next five to six years, and the development could take up to three years.

Excluding expenses related to drilling activities, the official said developing a geothermal facility would require around $6 million per MW.

The Bac-Man Geothermal Power Plant sits on a 25,000-hectare geothermal reservation spanning Bacon, Sorsogon City, and Manito in Albay.

The complex consists of two steam power generating plants with a combined capacity of 150 MW.

Adding to this is the recently inaugurated P7-billion Tanawon Geothermal Power, which can produce 22 MW of capacity.

Completed over 27 months, the geothermal facility is expected to generate 159,000 megawatt-hours of electricity, contributing to the country’s baseload renewable energy capacity.

“Tanawon’s inauguration is not only a proud achievement for First Gen and EDC, but also a win for the country’s energy security and climate resilience journey. We dedicate it to our communities, government partners, and everyone committed to a decarbonized, regenerative future,” Mr. Cainglet said.

For this year, EDC is targeting to commission four of its growth projects, including the 28-MW Mahanagdong Binary Geothermal Power Plant in Leyte and three battery energy storage systems projects totaling 40 megawatt-hours.

EDC, the renewable energy arm of Lopez-led First Gen Corp., has an installed capacity of 1,480.19 MW, representing around 20% of the country’s total installed renewable energy capacity.

Since 1976, EDC has led the exploration, development, and operation of geothermal energy, resulting in the development of geothermal power facilities across Bicol, Leyte, Negros Island, and Mindanao.

EDC has earmarked up to P30 billion for the drilling of 40 new wells through 2026. — Sheldeen Joy Talavera

Manufacturing Purchasing Managers’ Index (PMI) of select ASEAN economies, July 2025

August 4, 2025 | 12:01 am

Q&A: ‘There will still be a need for all powertrains’

August 4, 2025 | 12:01 am

VELO_PAGE2_image5 — Lars Nielsen speaks at the local launch of the new M5 models. — PHOTO BY KAP MACEDA AGUILA

BMW Group Asia Managing Director Lars Nielsen gives us the near-term plan

By Kap Maceda Aguila

THROUGH ITS M performance line, BMW has been transforming “regular cars” into racetrack-capable ones that are also appropriate for the everyday drive. That’s according to BMW Group Asia Managing Director Lars Nielsen — in town recently for the local launch of the M5 sedan and its station wagon or estate version, the M5 Touring.

The M with its myriad of values has been doing well, he averred. “We’re very happy with the results coming out in terms of sales… obviously, that’s the ultimate way to measure whether what we’re doing is right or wrong,” Mr. Nielsen told members of the media and content creators at the RSA Greenhills showroom in San Juan City. “The first six months of 2025 are the best six months that BMW M has ever had. In six months, we have delivered more than 100,000 BMW Ms all around the world. That’s growth of 6.5% versus last year.”

He acknowledged the good work that authorized BMW importer and seller SMC Asia Car Distributors Corp. has been doing as well. He said the company has been “closing in” on double-digit percentage share in terms of sales.

Here are excerpts from our exclusive interview with Mr. Nielsen:

VELOCITY: BMW in the Philippines previously introduced the plug-in hybrid versions of the X5 and X3. What are you seeing in the region in terms of receptiveness to PHEVs or behavior toward EVs?

LARS NIELSEN: Well, (there’s) a wide array, honestly, of both take-ups and take-up rates. Depending on which country, which market you’re in, the demand for full-electrics, for plug-in hybrids, or for combustion engines are all different. Obviously, it relates a lot to the legislation that is in place, if there are incentives in place, how the charging infrastructure looks like, etc. I think some of the key components that we are putting an emphasis on is, if there is a demand for it we would like to deliver.

BMW has not decided on a specific drivetrain technology. We say the whole world is a complex place. There will be a need for all drivetrain options as we go forward, (for) quite a while still. Therefore, we’re committed to being able to deliver this. What there is demand for, we will deliver. Maybe that’s what you are referring to. What you see now, the full electric format in the Philippines is taking a little bit of a step backward. Now, it’s the plug-in hybrids that are coming forward, because there was a change in regulations, right… then the demand changed in the market. We can fulfill that.

In Singapore, it’s the other way around… the demand is for full electric, because that’s the structure that is put in place. But while there’s a demand for full electric, there’s still slightly more demand for combustion engines; the balance in Singapore these days is a little more than 40% for full electrics and a little less than 60% for internal combustion engine units.

What about for countries outside of Singapore and the Philippines? What’s the skew like? In the Philippines, at least, we are seeing an uptick in the number of PHEV products. Brands are taking advantage of, as you said, legislation and government relief now expanded to other electrified options in order to make these vehicles more affordable, if you will.

So they say we’ve had a very good run with electric cars in Indonesia, for example, over the last few years. That’s been a path that we have pursued. Vietnam, meanwhile, actually has incentives in place for electric mobility. They are currently aiming for full electric vehicles. The take-up in the market though is not so big.

Again, (the appetite for electrified vehicles) really varies from market to market, from country to country. What is out there? Then sometimes government (policy) changes. We are going right, then we’re going left, then we’re going straight, and then we’re going backwards. It’s a little bit of a mix, which is why I think we’re very happy with the strategy we have here. We deliver a car and then there are multiple drivetrain options.

So there’s no shoe-horning of certain products into markets?

No, no, no. And I would underline it with the change that we have made here in the Philippines. When the plug-in hybrid regulation came into place last year, we said okay, all right, thank you.

So are we going to see more of these powertrains from BMW in the Philippines?

Yes, but I would correct your question, to make it more fitting to the purpose. Okay, we will introduce more new vehicles with multiple powertrain options. Again, the philosophy or the strategy of the BMW Group is not to let the powertrain be the decisive point. Yes, we think we make really cool cars, whatever the powertrain.

So if a customer goes into a BMW Philippines showroom, there will be various powertrain options? Is it about providing choices?

We would always be aiming for a logic that says, okay, if there are 1,000 customers then 999 are looking for a combustion engine, and one customer that looks for a full electric, then there will be a bit of economies of scale that we need to (take a look at) here as well. That in the end will need to go. But in general terms, the demand in the market is what we would be looking to satisfy.

Peso may rise as jobs data boost Fed hopes

August 4, 2025 | 12:01 am

THE PESO may continue to rise against the dollar this week following weaker-than-expected US jobs data released on Friday, which bolstered hopes for a September rate cut by the US Federal Reserve.

On Friday, the local unit closed at P58.145 per dollar, jumping by 17.5 centavos from its P58.32 finish on Thursday, data from the Bankers Association of the Philippines showed.

However, week on week, the peso dropped by P1.35 from its P57.11 close on July 25.

“The dollar-peso initially ran to highs of P58.63 on increased hawkish US Federal Reserve data because of the higher-than-expected core consumer price index… However, caution ahead of tariff announcements and nonfarm payrolls data caused it to hit lows of P58.13,” a trader said in a phone interview on Friday.

“The BSP (Bangko Sentral ng Pilipinas) signaled lately that it has room to intervene in the foreign exchange market during big and sudden foreign exchange moves that may have impact on inflation. As a result, the US dollar-peso exchange rate corrected lower,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

For this week, the peso’s movement would depend on the US jobs report released on Friday, the trader said. The trader sees the peso moving between P57.90 and P58.40 per dollar this week, while Mr. Ricafort expects it to range from P57.85 to P58.35.

US employment growth was weaker than expected in July while the nonfarm payrolls count for the prior two months was revised down by a massive 258,000 jobs, suggesting a sharp deterioration in labor market conditions that puts a September interest rate cut by the Federal Reserve back on the table, Reuters reported.

The Labor department’s closely watched employment report on Friday also showed the unemployment rate rose to 4.2% last month as household employment declined.

Nonfarm payrolls increased by 73,000 jobs last month after rising by a downwardly revised 14,000 in June, the fewest in nearly five years, the Labor department’s Bureau of Labor Statistics (BLS) said.

Payrolls for May were slashed by 125,000 to a gain of only 19,000 jobs. The BLS described the revisions to May and June payrolls data as “larger than normal.”

The Federal Reserve on Wednesday left its benchmark interest rate in the 4.25%-4.5% range. Fed Chair Jerome H. Powell’s comments after the decision undercut confidence the central bank would resume its policy easing in September as had been widely anticipated by financial markets and some economists.

Financial markets now expect the Fed to resume its monetary policy easing next month after pushing back rate-cut expectations to October in the wake of Wednesday’s policy decision. — A.M.C. Sy with Reuters

How PSEi member stocks performed — August 1, 2025

August 4, 2025 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Friday, August 1, 2025.

Stocks to move sideways before inflation, GDP

August 3, 2025 | 9:00 pm

STOCKS could move sideways this week as investors await the release of the latest Philippine inflation and gross domestic product (GDP) data.

On Friday, the bellwether Philippine Stock Exchange index (PSEi) ended its six-day slide as it rose by 0.85% or 53.40 points to close at 6,306.13, while the broader all shares index went up by 0.39% or 14.76 points to end at 3,751.67.

Week on week, however, the PSEi was down by 1.67% or 107.05 points from its 6,413.18 finish on July 25.

“A late-week rebound proved insufficient to reverse the sustained market selloff, heavily influenced by lingering caution following the State of the Nation Address (SONA) and mounting anxieties over new US tariff rates on Philippine exports,” online brokerage 2TradeAsia.com said in a market note.

“The local market has been on a six-day decline, which was only snapped last Friday on bargain hunting. Bearish sentiment took over last week amid investors’ dismay over the recent SONA, uncertainties on the Federal Reserve’s policy outlook, and worries on global trade. With last week’s fall, the market is now back to the 6,150-6,400 trading range,” Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

For this week, the market will focus on the July inflation report to be released on Tuesday (Aug. 5) and the second-quarter gross domestic product data that will come out on Thursday (Aug. 7), Mr. Tantiangco said.

“A well contained inflation figure and a GDP growth print significantly faster than the prior quarter’s 5.4% may give the market a boost.”

Mr. Tantiangco added that investors will monitor the peso’s movement against the dollar after the local unit fell to the P58 level anew last week.

“A rebound of the local currency may also help the market, but a further depreciation may also bring the market lower,” he said. “Finally, investors are expected to watch out for further second quarter corporate reports.”

Mr. Tantiangco said the market is expected to continue its decline if there are no positive catalysts this week. “The market is exhibiting a bearish bias, forming a lower high and lower low when compared to July 14’s peak and July 17’s trough. With its six-day decline, the bourse has fallen below its 10-day, 50-day, and 200-day exponential moving averages. Its moving average convergence/divergence line is moving downwards below the signal line.”

2TradeAsia.com put the PSEi’s immediate support at 6,300 and resistance at 6,600.

“Navigate this week with a tilt toward quality, defensive plays to hedge inflation risks, while eyeing selective consumer plays for momentum and second quarter tailwinds,” it said.

“Stay nimble as global data drops could sway sentiment, while prudence remains paramount, with thin trading volumes expected during the Chinese Ghost Month.” — Revin Mikhael D. Ochave

SC Malampaya ruling expected to boost investor confidence

August 3, 2025 | 7:50 pm

THE SUPREME COURT (SC) ruling confirming that the income taxes of private contractors in the Malampaya natural gas project are included in the government’s share of proceeds is expected to reassure investors, according to the Department of Energy (DoE).

“We’re happy that the issue has been resolved because it gives stability and security to our investors,” Energy Secretary Sharon S. Garin said in an interview last week.

Ms. Garin said that the decision could attract more exploration investment.

In a decision dated July 30, the SC overturned the charges against Shell Philippines Exploration B.V., Chevron Malampaya LLC, and state-run PNOC Exploration Corp. for unpaid taxes.

In 1990, the government awarded a service contract to the Shell Philippines, Chevron, and PNOC for the Malampaya project. Under the contract, the contractors are required to remit 60% of the project’s net proceeds to the government.

While they were exempt from all taxes except income tax, the contract included a tax assumption provision, specifying that their income taxes from 2002 to 2009 would be covered by the government’s share.

Following a post-audit, the Commission on Audit (CoA) found that over P53 billion in income taxes had been deducted from the government’s share. The agency argued that contractors were liable for these taxes due to the absence of an express legal provision that states that their income taxes should be part of the government’s share.

While the case was pending, the International Chamber of Commerce issued an arbitral award affirming the validity of the tax assumption provision in the service contract.

The SC reversed the CoA’s ruling citing Presidential Decree (PD) No. 87, or the Oil Exploration and Development Act, which says that income taxes paid by or on behalf of petroleum contractors form part of the government’s guaranteed 60% share of net proceeds from petroleum operations.

It said that the law seeks to encourage private investment in petroleum exploration by allowing the government to assume contractors’ income tax obligations.

This is stated in PD 1206 and PD 1459, which confirm that the state’s share includes all taxes.

The SC said that the tax assumption clause under the Malampaya contract does not constitute a tax exemption as the government assumes the obligation. — Sheldeen Joy Talavera

Free WiFi target set at 70,000 sites in 2026

August 3, 2025 | 7:49 pm

THE Department of Information and Communications Technology (DICT) said it is hoping to establish up to 70,000 free WiFi sites by next year.

“Maybe we can implement between 60,000 and 70,000 sites. We will try to do that. It is important to finish the National Fiber Backbone project, which was originally scheduled to be completed by 2028 but we want to finish it by 2026,” Information and Communications Technology Secretary Henry Rhoel R. Aguda told reporters last week.

Once the National Fiber Backbone project is completed, the DICT will have more capacity to establish free WiFi sites, Mr. Aguda said, adding that the goal for the end of the year is 30,000 free sites.

In July, the government launched the second and third phases of its National Fiber Backbone project, which aims to provide high-speed internet to underserved and remote areas.

The DICT has said that it had obtained a $287.24-million loan from the World Bank to accelerate phases 4 and 5 of the project. The completion of the project is expected to spur growth in rural areas, especially in the Visayas and Mindanao.

So far, the DICT has established 19,000 free WiFi sites, Mr. Aguda said.

The DICT will be needing up to P4 billion to implement the expansion of its free WiFi sites next year, he said, noting that it can draw funding from spectrum user fees (SUF).

Spectrum user fees are collected annually from public telecommunications entities (PTEs), or those engaged in the provision of telecommunications services to the public for compensation.

“The SUF is between P6 billion and P9 billion, but we will not use it all. Maybe around P3 billion to P4 billion to cover (our target),” he said.

In March, the DICT said it will overhaul the free Wi-Fi Program to make use of low-earth orbit (LEO) satellites.

LEO satellites have the potential to increase internet capacity and reduce data transmission delays. Such satellites typically orbit at around 1,000 kilometers above the Earth. — Ashley Erika O. Jose

Philippine debt payments down 1.42% in June

August 3, 2025 | 7:48 pm

THE National Government’s (NG) debt service bill fell in June as amortization on domestic debt declined, the Bureau of the Treasury (BTr) reported.

The BTr said the debt service bill was P65.14 billion in June, down 1.42%.

Month-on-month, the debt service bill fell 18.62%.

Debt service refers to the payments made by the government on domestic and foreign borrowing.

In June, amortization payments stood at P7.72 billion, down 25.99% year on year.

Principal payments on domestic debt were down 97.91% at P54 billion in June.

Amortization paid on foreign debt fell 2.39% to P7.67 billion in June.

Interest payments rose 3.19% to P57.42 billion.

Domestic interest payments increased 4.96% to P38.48 billion in June.

This consisted of P19.18 billion in retail Treasury bonds, P14.74 billion in fixed-rate Treasury bonds, P3.15 billion in Treasury bills (T-bills) and others (P1.41 billion).

Interest payments on foreign borrowing fell 0.23% to P18.94 billion in June.

In the first six months, the NG debt service bill fell 40.12% to P768.11 billion.

Amortization payments stood at P353.29 billion in the period, down 60.99%.

Principal payments on domestic debt slumped 77.5% to P170.46 billion, while external payments dropped 23.43%to P182.83 billion.

Meanwhile, interest payments rose 9.97% to P414.82 billion in the first six months. This accounted for 54.01% of the six-month tally.

Interest payments on domestic debt stood at P299.83 billion, up 11.86%.

This consisted of P193.68 billion in fixed-rate Treasury bonds, P79.26 in retail Treasury bonds, P21.85 billion in T-bills and others (P5.04 billion).

Interest payments on external debt grew 5.32% to P114.99 billion in the first six months.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort attributed the decline in debt repayments in June to lower NG debt maturities that “need to be serviced” relative to a year earlier.

“However, there are a large volume of maturing RTBs and other Treasury bonds worth around P800 billion from August 2025 (P516 billion) and September 2025 (P288 billion) that will increase NG debt servicing of principal payments for those months,” Mr. Ricafort said via Viber.

This year, the government’s debt service is budgeted for P2.051 trillion, consisting of P1.203 trillion in principal payments and P848.031 billion in interest payments, according to the 2025 Budget of Expenditures and Sources of Financing.

The NG debt stock hit a record P17.27 trillion at the end of June. It is projected to hit P17.35 trillion by year’s end. — Aubrey Rose A. Inosante

Metro Manila, Mindanao top list of official dev’t assistance commitments

August 3, 2025 | 7:47 pm

solar-irrigation — PHILIPPINE INFORMATION AGENCY

THE NATIONAL Capital Region (NCR) and Mindanao hosted the most official development assistance (ODA) projects in 2024, the Department of Economy, Planning, and Development (DEPDev) said.

“ODA support was geographically distributed, with Mindanao and NCR receiving larger allocations,” DEPDev said in its ODA Portfolio Review Report issued on Thursday.

ODA refers to the a form of aid, typically loans and grants, provided by governments or international organizations to developing countries to support their social and economic development.

Overall, $11.88 billion supports 123 loans or grants to Philippine regions. Overall ODA commitments amounted to $39.61 billion in 2024.

Some 30.1% of ODA commitments are region-specific, 38.53% nationwide, and 31.47% multi-regional.

The DEPDev said the NCR received the largest region-specific allocation at $5.35 billion across 28 projects, accounting for 45% of the total region-specific portfolio.

“As the country’s primary economic center, NCR received ODA directed towards urban development, transport infrastructure, and public service improvements, including efforts to reduce congestion and enhance productivity,” it said.

If the NCR is excluded from Luzon, Mindanao received the largest share among the three island groups, accounting for $2.68 billion across 62 loans and grants, or 23% of region-specific ODA.

“This reflects continued support for peacebuilding, post-conflict development, and inclusive infrastructure in the island group. Major interventions were concentrated in the Davao Region (Region XI), which received $1.93 billion for 12 projects — making it the highest among all regions,” DEPDev said.

Among the regions excluding the NCR, Davao Region received $1.93 billion, Central Luzon $1.55 billion, Central Visayas $1.46 billion and Bangsamoro Autonomous Region in Muslim Mindanao $585.89 million.

Some 43 projects were identified as “at-risk,” most of them being implemented by the Department of Public Works and Highways and the Department of Transportation. — Aubrey Rose A. Inosante

Common station contractor picked this year

August 3, 2025 | 7:46 pm

LRT-MRT common station — DEPARTMENT OF TRANSPORTATION

THE DEPARTMENT of Transportation (DoTr) is hoping to award the contract for the commuter rail common station this year, following the termination of the previous contract.

The DoTr has not yet decided on a preferred procurement mode for the project, Transportation Secretary Vivencio B. Dizon told reporters last week.

“We are still reviewing the available modes. What we really want is to explore PPP (Public-Private Partnership)… We are carefully studying the options,” he said, noting that it hopes to start the bidding process this year.

Mr. Dizon said the DoTr is leaning towards a solicited mode of PPP, which he said was faster and less risky.

“We’re open to any of the modes, but for us, PPP is the safest — so we can avoid issues. I can’t stop anyone from submitting an unsolicited proposal, but our default preference is solicited,” he said.

The DoTr has issued a notice of termination to the contractors of the Unified Grand Central Station at North Avenue-EDSA, Quezon City, also known as the common station for the Metro Rail Transit (MRT) and Light Rail Transit (LRT) lines and the Metro Manila Subway.

The contractors — BF Corp. and Foresight Development and Surveying Co. (BFC-FDSC) were dropped due to excessive delays, the DoTr said.

“The target to complete (the project) is by 2027 in time for the (MRT-7) operations. That is the goal. We need to get things in order this year,” Mr. Dizon said.

The consortium signed a P2.8-billion agreement with the government in 2019 for the construction of Area A of the Unified Grand Central Station project.

The project aims to link Metro Manila’s main commuter rail lines, including LRT-1, MRT-3, MRT-7, and eventually the Metro Manila Subway.

The project was initially targeted for completion in the first quarter of 2021. It was designed to have three sections, each built separately: Area A by BFC-FDSC, Area B by Ayala Corp., and Area C by San Miguel Corp., the concessionaire for the MRT-7 project.

Under the agreement, the common station is set to be built at a compromise location near the original 2009 site in front of SM Annex (North EDSA) and the 2014 location near Ayala-owned TriNoma Mall.

The common station features a 13,700-square-meter concourse designed to ensure seamless transfers for rail passengers. It will have an intermodal integrated system to facilitate smooth commuter transfers. — Ashley Erika O. Jose

Commercial segment expected to drive Mitsubishi Motors sales

August 3, 2025 | 7:46 pm

VELO_PAGE1_DASH_image1-mitsubishi — PHOTO FROM MITSUBISHI MOTORS PHILIPPINES CORP.

By Justine Irish D. Tabile, Reporter

COMMERCIAL vehicle models are expected to drive Mitsubishi Motors Philippines Corp.’s (MMPC) sales and help the company achieve its target of 20% market share this year.

“In terms of sales volume, our top model right now is the Xpander. It is a light commercial vehicle because everything more than the sedan is classified as a commercial vehicle,” MMPC President and Chief Executive Officer (CEO) Ritsu Imaeda said Friday.

He said the Xpander, a multipurpose vehicle (MPV), accounted for over 20% of the company’s sales in the first half.

He said he expects the Xpander to remain MMPC’s top-selling model until the end of the year.

“We think Xpander is a great match to the market’s needs, especially for first-time car buyers who want to have a seven-seater car for the family that is pretty affordable and with good quality,” he said that is going to support our brand,” he added.

MMPC’s other top-selling models include the Mirage subcompact car, the L300 light commercial vehicle, the Montero Sport SUV (sport utility vehicle), the Triton pickup, and the Xforce SUV.

In the first half, MMPC ranked second in terms of market share, accounting for 19.06% of total industry sales, according to a joint report by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA).

The company posted 3.3% year-on-year growth in sales to 44,021 units in the first six months.

This year, Mitsubishi Motors Corp. President and CEO Takao Kato said that he would like MMPC market share to top 20%.

He also expects to increase this to 25% in five years with the help of the recently-launched Mitsubishi Motor Finance Philippines, Inc. (MMFP).

“We remain committed to the country as one of our most important markets. Through collaboration with MMFP in financing services and MMPC in local production and sales, we will continue to grow and serve our customers with excellence,” Mr. Kato said.

On Friday, Mitsubishi Motors and Security Bank Corp. launched their MMFP joint venture (JV), which will offer financing solutions across 67 dealerships nationwide.

“By establishing MMFP, Mitsubishi Motors deepens its long-standing commitment to grow in the Philippine market, and through MMFP we will make sure that more and more Filipinos get life-changing opportunities that mobility can offer,” MMFP President and CEO Satoshi Nakano said.

Security Bank President and CEO Sanjiv Vohra said the partnership will help expand the bank’s footprint in auto finance.

“We have had very strong growth in auto financing in the last couple of years. I think our loan growth last year, 2024, was over 50% in terms of auto loans alone. However, through this JV, we expect the partnership to help us become a preferred financier for Mitsubishi Motors vehicles,” he said.

“Our objective is to enable Mitsubishi Motors to achieve their goals through providing innovative financing options and flexible payment options to get the kind of market share that Mitsubishi Motors is aiming for,” he added.

“Now that you have a joint venture, which is going to finance Mitsubishi Motors, it will allow both partners to be able to counter the impacts of tariffs, if any, through the financing options,” he said, referring to the expected entry of more US car models.

He said that customers in the Philippines look at the monthly amortization rather than the price when buying cars.

“I think this gives the two partners an opportunity to provide the right financing mix if we need to counter some impact of the tariffs. The joint venture will assist manufacturers like Mitsubishi Motors in their attempt to counter the tariffs in the market,” he added.

According to Mr. Imaeda, it is still too early to comment on how the agreement will impact the auto industry, but noted that the Philippines currently imports limited volumes of vehicles from the US.

“For instance, the most famous US brand is Ford, right? Their cars are basically coming from Thailand. So would there be any benefit for them?,” he said.

“I think it’s not going to impact in the short time that much or significantly. This is our thinking right now. But we are trying to investigate all the possibilities of how it could impact the market itself,” he added.