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Trump demands ‘highly conflicted’ Intel CEO resign over China ties

INTEL Corporation’s global headquarters is in Santa Clara, California. — INTEL CORPORATION

U.S. President Donald Trump on Thursday demanded the immediate resignation of new Intel CEO Lip-Bu Tan, calling him “highly conflicted” due to his ties to Chinese firms and raising doubts about plans to turn around the struggling American chip icon.

Reuters reported exclusively in April that Mr. Tan invested at least $200 million in hundreds of Chinese advanced manufacturing and chip firms, some of which were linked to the Chinese military.

Mr. Trump’s comments came a day after Reuters was first to report that Republican Senator Tom Cotton had sent a letter to Intel’s board chair with questions about Tan’s ties to Chinese firms and a recent criminal case involving his former firm Cadence Design.

“The CEO of INTEL is highly CONFLICTED and must resign, immediately. There is no other solution to this problem,” Mr. Trump said in a post on his Truth Social platform.

Intel shares closed down 3% on Thursday.

A leadership change could pile pressure on Intel, which is a pillar of U.S. efforts to boost domestic chipmaking. Last year, it secured $8 billion in subsidies, the largest outlay under the 2022 CHIPS Act, to build new factories in Ohio and other states.

Mr. Tan said he shared the president’s commitment to advancing U.S. national and economic security.

Intel’s board was “fully supportive” of the company’s work to transform its business and ramp up advanced chip manufacturing later this year, Tan added in a statement posted on the company’s website.

“My reputation has been built on trust – on doing what I say I’ll do, and doing it the right way… this is the same way I am leading Intel,” he said. “We are engaging with the Administration to address the matters that have been raised and ensure they have the facts.”

Mr. Trump’s intervention marked a rare instance of a U.S. president publicly calling for a CEO’s ouster and sparked debate among investors.

“It would be setting a very unfortunate precedent. You don’t want American presidents dictating who runs companies, but certainly his opinion has merit and weight,” said Phil Blancato, CEO of Ladenburg Thalmann Asset Management.

David Wagner, head of equity and portfolio manager at Intel shareholder Aptus Capital Advisors, said while “many investors likely believe that President Trump has his hand in too many cookie jars, it’s just another signal that he’s very serious about trying to bring business back to the U.S.”

Intel said it was making significant investments aligned with Trump’s America First agenda.

“We look forward to our continued engagement with the Administration,” the company said in a statement on Thursday.

Reuters reported in April that Tan himself, and through venture funds he has founded or operates, invested in Chinese firms including contractors and suppliers for the People’s Liberation Army between March 2012 and December 2024.

The reporting was based on a review of Chinese corporate databases cross-referenced with U.S. and analyst lists of firms with connections to the Chinese military.

A source familiar with the matter had at the time told Reuters that Tan had divested his positions in entities in China, without providing further details.

Chinese databases reviewed by Reuters at the time had listed many of his investments as current, and Reuters was at the time unable to establish the extent of his divestitures.

Mr. Tan, a Malaysian-born Chinese American business executive, was also the CEO of Cadence Design from 2008 through December 2021 during which the chip design software maker sold products to a Chinese military university believed to be involved in simulating nuclear explosions.

Cadence last month agreed to plead guilty and pay more than $140 million to resolve the U.S. charges over the sales, which Reuters first reported.

“We don’t believe Lip-Bu is ‘conflicted,’ though given the nature of this administration the China ties are seemingly creating an increasingly bad look,” Bernstein analyst Stacy Rasgon said.

“And unfortunately, unlike other tech CEOs Lip-Bu does not appear to have cultivated the kind of personal relationship with Trump that would help to assuage his ire.”

A White House official said, “President Trump remains fully committed to safeguarding our country’s national and economic security. This includes ensuring iconic American companies in cutting-edge sectors are led by men and women who Americans can trust.”

 

BUSINESS TURMOIL

Once the bedrock of Silicon Valley’s global dominance in chips, Intel in recent years lost its manufacturing edge to Taiwanese rival TSMC.

It also has virtually no presence in the booming market for artificial intelligence chips dominated by Nvidia and has been losing market share in data centers and personal computers – long its stronghold – to rival AMD.

Late last year, the company fired its then CEO Pat Gelsinger well before the completion of his four-year roadmap to restore Intel’s lead in making the fastest and smallest computer chips.

The ousting followed a Reuters special report in October that Intel had failed to live up to the lofty ambitions he had set for manufacturing and AI capabilities.

To revive Intel’s fortunes, the board named former board member Tan as CEO, betting on his deep roots in the chip industry and track record as a longtime investor in promising tech startups.

Tan has largely abandoned his predecessor’s strategy, aggressively shrinking the company’s workforce and putting on hold planned manufacturing plants globally.

The production process that Intel hoped would pave the way to winning manufacturing deals and restore its edge in churning out high-end, high-margin chips is also facing a big hurdle on quality as it puts newer technologies to the test, Reuters reported earlier this month.

Intel has also further slowed the pace of construction of a factory in Ohio, now expected to be completed around 2030 or 2031. – Reuters

Russia’s struggle to build commercial jets reflects deeper industrial malaise

UNSPLASH

Russian aircraft makers have delivered only one of 15 planned commercial jets this year, data from Swiss aviation intelligence provider ch-aviation shows, as sanctions on foreign components stall production and high interest rates crimp investment.

Since Russia’s February 2022 invasion of Ukraine, Western sanctions have cut off access to foreign-made aircraft and spare parts. With a fleet of more than 700 planes dominated by Airbus AIR.PA and Boeing BA.N jets, Russian airlines now rely on complex, indirect import routes to source critical components.

“There is no component base, no technology, no production facilities, no engineers,” said one Russian aviation industry source, who declined to be named due to the sensitivity of the matter. “To create all this from scratch takes years, if not decades.”

Given Russia’s geographical challenges as the world’s largest country, it depends on commercial aircraft for domestic freight and passenger transport across its 11 time zones.

Recent major incidents highlight an urgent need to prevent the fleet degrading. In late July, a Soviet-era Antonov An-24, built in 1976, crashed in the country’s far east, killing all 48 people on board. Days later, flag carrier Aeroflot AFLT.MM grounded dozens of flights following a crippling cyberattack.

The aviation sector’s struggles to become self-sufficient are part of a broader industrial slowdown. Russia’s factory output contracted at its fastest pace since March 2022 in July, according to Purchasing Managers’ Index data, and industrial growth continues to decelerate.

High interest rates have played a part in dwindling car production, coal sector bankruptcies, slowing export volumes of commodities like metals and oil products, as well as the missed plane-building targets, officials and businesses have said, contributing to slowing economic growth.

“Industry is being hit faster and harder by tight monetary policy,” said Dmitry Polevoy, head of investment at Astra Asset Management, warning that the industrial sector was on the brink of recession.

 

PRODUCTION DELAYS AND NEW TARGETS

In 2021, Russia added 52 new commercial aircraft to its fleet — including 27 from Airbus, three from Boeing, and 22 Sukhoi Superjets built with imported parts – for airlines including Aeroflot, S7, Red Wings, Rossiya, and Ural Airlines, data from ch-aviation shows.

Since then, only 13 new planes have been added: 12 Superjets used by several Russian airlines and one Tupolev Tu-214, a twin-engine, narrow-bodied jet designed for medium-haul flights, the data showed.

The Tu-214 is being used by First Deputy Prime Minister Denis Manturov, according to a person familiar with the matter, FlightRadar24 data, and Russian media reports.

The government has repeatedly revised its production goals. In mid-2024, it cut the 2024–2025 delivery target to 21 from 171 aircraft. Last month, officials said targets would be revised again, citing high interest rates, which have made financing more expensive and slowed production.

State conglomerate Rostec, which oversees production of the Superjet-100s, Tupolev Tu-214s, Ilyushin passenger planes and the new Yakovlev MC-21 jet, has struggled to meet deadlines.

Rostec CEO Sergei Chemezov told Reuters last year that Russia would produce its own passenger planes, but delivery dates have repeatedly slipped.

The MC-21 aircraft, built entirely with Russian-made parts, was much heavier than the version built with imported parts, reducing range and fuel efficiency – so airlines have been reluctant to adopt it, according to the Russian aviation source.

On Tuesday, Chemezov told Prime Minister Mikhail Mishustin that serial production of the MC-21, SJ-100, and IL-114 jets would begin in 2026, two years later than originally planned.

United Aircraft Corporation, the Rostec subsidiary that manages all the conglomerate’s aircraft production, did not respond to a request for comment.

 

SANCTIONS AND SUPPLY CHAIN

Despite efforts to localize production, Russia continues to rely on foreign suppliers.

Customs data seen by Reuters shows that parts worth at least $300,000 were imported in 2024 via intermediaries in Turkey, China, Kyrgyzstan, and the UAE. These included components from France’s Safran, U.S. Honeywell, and Britain’s Rolls-Royce. There is no evidence of these companies having violated sanctions.

Russia has developed a system of parallel imports, allowing goods to enter the country through third parties without the manufacturer’s knowledge or consent.

Safran and Rolls-Royce did not immediately respond to requests for comment.

Honeywell said it is not providing any equipment, parts, or products to any company in Russia and is “actively working to identify and interrupt any possible diversion of our products into Russia via third parties.”

Russia is trying to solve a unique and “hypercomplex” problem, Industry and Trade Minister Anton Alikhanov said last month.

“No other country in the world produces fully import-substituted planes,” Mr. Alikhanov said.

Reduced aircraft supply while demand remains high is pushing up prices for consumers, with ticket prices rising steadily throughout 2023 and 2024, Rosstat data shows.

Meanwhile, Moscow has been forced to get creative, asking airlines from Central Asian countries like Kazakhstan and Uzbekistan to run domestic Russian routes. – Reuters

Simulated Chinese blockade of Taiwan reveals Singapore as lifeline

A NAVY miniature is seen in front of displayed Chinese and Taiwanese flags in this illustration taken April 11, 2023. — REUTERS

HONG KONG/TAIPEI – The exercise presented a fraught scenario: China’s military had blockaded Taiwan by air and sea, and Southeast Asian countries were grappling with how to evacuate as many as 1 million of their nationals trapped on the besieged island.

Over two days in April at a Singapore hotel, some 40 participants and observers in the war game, including serving and retired Asia-Pacific officials and military officers, as well as security scholars, simulated their responses to the unfolding crisis, according to four people familiar with the discussions.

Hours ticked by as some players weighed unified action through the Association of Southeast Asian Nations, while others reached out to the mock U.S., Chinese and Japanese delegates to negotiate special air and sea corridors to extract foreign nationals. Eventually, the people said, a stark conclusion emerged: The Southeast Asian states needed a Singaporean airlift to have a chance of evacuating their people.

“Nothing was moving until the Singaporeans stepped in at the 11th hour,” said one participant in the event at the Jen Singapore Tanglin hotel. “They had found a way of getting their own people out, and offered to get others out, too.”

Reflecting its discreet and decades-old security presence inside Taiwan, where its forces train, Singapore was able to leverage access to airfields and aircraft, the person said. But the exercise ended before any detailed discussion of how Singapore had reached a deal with China to secure an evacuation route through the blockade, or how precisely it would work, three of the people told Reuters.

The previously unreported exercise comes amid an escalating battle between the U.S. and China for dominance in the Asia-Pacific region. It offers a rare window into contingency planning over Taiwan, which some Asian and Western military attaches and security analysts say is becoming increasingly necessary because an assault on the island by Beijing could draw in the U.S. and imperil other countries.

While the scenario didn’t reflect official policies, participants playing the roles of foreign and defense ministers worked from the known positions of at least nine governments depicted in the simulation, said the four people, who like some others spoke on the condition of anonymity to discuss a sensitive matter. Besides Singapore, China, Taiwan and the U.S., the rest included Indonesia, Vietnam and the Philippines, they said.

Southeast Asians account for about 94% of the almost 1 million foreign nationals resident in Taiwan, according to Taiwan’s National Immigration Agency. Indonesians, Vietnamese and Filipinos make up the vast majority of those foreigners, with comparatively small numbers of Japanese and Americans.

Singapore’s defense ministry said it wasn’t involved in the “workshop” and none of its officials attended in any capacity. Neither the defense nor foreign ministries addressed Reuters questions about Singapore’s military presence in Taiwan and planning for Taiwan conflict scenarios, including evacuations.

China’s foreign ministry said it had “always resolutely opposed countries with whom it has diplomatic relations having any form of official relations with the Taiwan region, including military dialogue and cooperation,” adding that it wasn’t aware of the circumstances of the exercise.

The London-based International Institute for Strategic Studies (IISS), which organized the exercise, told Reuters in a statement that participants had attended in their private capacities, and that it could not comment on “discussions, attendees, or any other elements.”

Taiwan’s defense ministry and the ASEAN Secretariat in Jakarta didn’t respond to questions.

A Pentagon official said they were not aware of any official participation in the event by the U.S. Defense Department. “We routinely engage with allies and partners to ensure readiness for a range of contingencies, but it would be inappropriate to discuss operational planning or hypothetical evacuation scenarios,” the official said.

Weeks after the exercise, U.S. Defense Secretary Pete Hegseth told a security conference in Singapore that the threat of China using force to take Taiwan was “imminent” amid intensifying air and naval operations around the island by the Chinese military, the People’s Liberation Army.

Chinese officials have said Hegseth and other Trump administration officials are playing up “the so-called China threat”, with the Chinese embassy in Singapore saying his speech was “steeped in provocations and instigation”.

China claims Taiwan as its territory and has never renounced the use of force to seize it. Taiwan’s President Lai Ching-te and his government strongly object to China’s sovereignty claims, saying it is up to the island’s people to decide their future.

Drew Thompson, a Singapore-based security scholar, said it was vital for Southeast Asian countries to move beyond war games and contingency discussions to build meaningful, unofficial ties with Taiwan, particularly its military. These countries have diplomatic ties with Beijing and don’t officially recognize Taipei.

“The big takeaway here is that a plan is one thing but you need the access and the relationships to put it into play,” said Thompson, of the S. Rajaratnam School of International Studies, who wasn’t involved in the exercise.

“Singapore has long had these ties, the Philippines is building them, but it remains an open question whether the other countries in Southeast Asia have the unofficial networks in place to meaningfully engage with Taiwan in a conflict.”

The Philippines foreign ministry told Reuters the government has contingency plans for a Taiwan emergency, without offering specifics. It added that Manila has “legitimate interest in Taiwan due to geographic proximity and the presence of Filipino nationals there”.

The foreign ministries of Indonesia and Vietnam didn’t respond to requests for comment. Japan’s defense ministry declined to comment.

‘USEFUL PERCH’
Given recent drills in which Chinese vessels encircled Taiwan, some military attaches and analysts say any attempt by Beijing to seize the island could start with a blockade, which would be considered an act of war under international law.

The risks are felt acutely in Singapore, a financial and shipping hub that hosts U.S. Navy ships and surveillance aircraft yet maintains strong cultural, diplomatic and economic ties with China.

Singaporean forces have conducted military training in Taiwan since 1975, under an arrangement known as Project Starlight. The presence is seldom publicly acknowledged by officials in Singapore, which does not have formal diplomatic relations with Taiwan. But it remains important to Singapore’s defense forces, according to seven diplomats and security scholars familiar with the matter.

Singapore rotates up to 3,000 infantry troops and commandos annually through three training camps in southern Taiwan, according to five of the seven people, where the mountains and jungles replicate conditions found on the Malay Peninsula.

“It gives Singapore a useful perch from which to watch both the Taiwan Strait and the top part of the South China Sea,” said one Western security official.

China has long objected to the arrangement. But Singapore has held fast, in part because a withdrawal would represent a change to the delicate strategic and diplomatic balance around Taiwan, three of the scholars told Reuters.

Singapore’s forces also train regularly in Australia, France, Brunei and the U.S. The city-state has the best-equipped military in Southeast Asia, according to an annual survey of the world’s armed forces produced by the IISS.

Yet an outbreak of war in Taiwan could trap Singapore’s forces there or render them bargaining chips that could give China military and diplomatic leverage over Singapore, according to some analysts and military attaches.

In a conflict, Southeast Asian governments would face an arduous task in evacuating their nationals from Taiwan, Ngeow Chow Bing, a Malaysia-based security scholar, wrote in a study published last year by the Carnegie Endowment for International Peace.

But, Ngeow wrote, Beijing has clear incentives to ensure that most, if not all, ASEAN members remain neutral.

“If Beijing cares how it is perceived in Southeast Asia during a Taiwan crisis, it follows that Beijing would view the evacuation of Southeast Asian citizens as crucial for its own diplomatic posture,” he added. — Reuters

Israel approves plan to take control of Gaza City

CHUTTERSNAP-UNSPLASH

JERUSALEM/CAIRO – Israel’s political-security cabinet approved a plan to take control of Gaza City early on Friday, hours after Prime Minister Benjamin Netanyahu said Israel intended to take military control of the entire strip despite intensifying criticism at home and abroad over the devastating almost two-year-old war.

“The IDF will prepare to take control of Gaza City while providing humanitarian aid to the civilian population outside the combat zones,” Netanyahu’s office said in a statement, referring to the Israeli Defense Forces.

Gaza City, in the north of the strip, is the largest city in the enclave.

Axios reporter Barak Ravid, citing an Israeli official, said on X the plan involved evacuating Palestinian civilians from Gaza City and launching a ground offensive there.

Mr. Netanyahu on Thursday told Fox News Channel’s Bill Hemmer in an interview “we intend to” when asked if Israel would take over the entire coastal territory.

“We don’t want to keep it. We want to have a security perimeter. We don’t want to govern it. We don’t want to be there as a governing body.”

He said Israel wanted to hand over the territory to Arab forces that would govern it. He did not elaborate on the governance arrangements or which Arab countries could be involved.

Mr. Netanyahu made the comments to Fox News ahead of a meeting with a small group of senior ministers to discuss plans for the military to take control of more territory in Gaza.

Israeli officials described a previous meeting this week with the head of the military as tense, saying military chief Eyal Zamir had pushed back on expanding Israel’s campaign.

In its Friday statement, Mr. Netanyahu’s office said the vast majority of the political-security cabinet members believed that “the alternative plan presented in the cabinet would not achieve the defeat of Hamas nor the return of the hostages.”

Two government sources said any resolution by the security cabinet would need to be approved by the full cabinet, which may not meet until Sunday.

Among the scenarios being considered ahead of the security meeting was a phased takeover of areas in Gaza not yet under military control, one of the sources said, speaking on condition of anonymity.

Evacuation warnings could be issued to Palestinians in specific areas of Gaza, potentially giving them several weeks before the military moves in, the person added.

Total control of the territory would reverse a 2005 decision by Israel by which it withdrew Israeli citizens and soldiers from Gaza, while retaining control over its borders, airspace and utilities.

Right-wing parties blame that withdrawal decision for the militant Palestinian group Hamas gaining power there in a 2006 election.

It was unclear whether Mr. Netanyahu was foreseeing a prolonged takeover or a short-term operation. Israel has repeatedly said it aims to dismantle Hamas and free Israeli hostages.

Hamas in a statement called Netanyahu’s comments “a blatant coup” against the negotiation process.

“Netanyahu’s plans to expand the aggression confirm beyond any doubt that he seeks to get rid of his captives and sacrifice them,” the statement said.

Arab countries would “only support what Palestinians agree and decide on,” a Jordanian official source told Reuters, adding that security in Gaza should be handled through “legitimate Palestinian institutions.”

Hamas official Osama Hamdan told Al Jazeera the group would treat any force formed to govern Gaza as an “occupying” force linked to Israel.

Earlier this year Israel and the United States rejected an Egyptian proposal, backed by Arab leaders, that envisaged the creation of an administrative committee of independent, professional Palestinian technocrats entrusted with the governance of Gaza after the war.

Opinion polls show most Israelis want the war to end in a deal that would see the release of the remaining hostages.

The White House had no immediate comment. President Donald Trump has declined to say whether he supported or opposed a potential full military takeover of Gaza by Israel.

Netanyahu’s government has insisted on total victory over Hamas, which ignited the war when it staged a deadly October 2023 attack on Israel from Gaza.

The U.N. has called reports about a possible expansion of Israel’s military operations in Gaza “deeply alarming” if true.

The idea, pushed especially by far-right ministers in Mr. Netanyahu’s coalition, of Israeli forces moving into areas they do not already hold in the enclave has also generated alarm in Israel.

PROTESTERS DEMAND END TO WAR
Outside the prime minister’s office in Jerusalem on Thursday evening, hundreds of demonstrators protested against an expanded war, demanding an immediate end to the military campaign in return for the release of all the hostages.

Protesters held signs bearing the faces of hostages still held in Gaza and voiced deep frustration with the government’s handling of the crisis.

“I’m here because I am sick and tired of this government. It’s ruined our life,” said 55-year-old Noa Starkman, a Jerusalem resident who was born in a southern Israeli community close to where Hamas attacked in October 2023.

The Hostages Families Forum, which represents captives held in Gaza, urged military Chief of Staff Eyal Zamir to oppose widening the war. Defense Minister Israel Katz said on Wednesday that the military would carry out the government’s decisions until all war objectives were achieved.

REMAINING HOSTAGES
There are 50 hostages still held in Gaza, of whom Israeli officials believe 20 are alive. Most of those freed so far emerged as a result of diplomatic negotiations. Talks toward a ceasefire that could have seen more hostages released collapsed in July.

A senior Palestinian official said Hamas had told Arab mediators an increase in humanitarian aid entering Gaza would lead to a resumption in ceasefire negotiations.

Israeli officials accuse Hamas of seizing aid to hand to its fighters and to sell to finance its operations, accusations the militant group denies.

Videos released last week of two living hostages showed them emaciated and frail, stirring international condemnation.

Recent images of starving children from Gaza have also shocked the world and fuelled international criticism of Israel over the sharply worsening conditions in the enclave.

Hamas, which has ruled Gaza for nearly two decades but now controls only fragmented parts, insists any deal must lead to a permanent end to the war. Israel says the group has no intention of going through with promises to give up power afterwards.

The Israeli military says it controls about 75% of Gaza. Most of Gaza’s population of about 2 million has been displaced multiple times over the past 22 months and aid groups are warning that the enclave’s residents are on the verge of famine.

“Where should we go? We have been displaced and humiliated enough,” said Aya Mohammad, 30, who, after repeated displacement, has returned with her family to their community in Gaza City. — Reuters

China accuses Philippines of ‘playing with fire’ on Taiwan

BW FILE PHOTO

BEIJING – China accused the Philippines on Friday of “playing with fire” after President Ferdinand Marcos Jr said the Southeast Asian nation would be drawn into any conflict between China and the United States over Taiwan.

It was responding to remarks by Marcos during a state visit to India that the Philippines’ closeness to Taiwan and the large Filipino community there would make involvement necessary in such a conflict.

“‘Geographical proximity’ and ‘large overseas populations’ are not excuses for a country to interfere in the internal affairs of others,” China’s foreign ministry said in a statement.

“We urge the Philippines to earnestly adhere to the one-China principle … and refrain from playing with fire on issues concerning China’s core interests.”

Mr. Marcos’ remarks came amid heightened tension between Beijing and Manila over territorial disputes in the busy waterway of the South China Sea.

Both countries have traded accusations of aggressive maneuvers and sovereignty violations there, prompting the United States to reaffirm its commitment to defend the Philippines.

Beijing views democratically-governed Taiwan as its territory, a claim Taipei rejects.

The Philippine embassy in Beijing did not immediately respond to a request for comment.

On Wednesday, Mr. Marcos told Indian media outlet Firstpost, “If there is an all-out war, then we will be drawn into it.”

He added, “There are many, many Filipino nationals in Taiwan and that would be immediately a humanitarian problem.

“We will have to go in there, find a way to go in there, and find a way to bring our people home.”

China said such arguments “not only violate international law and the ASEAN charter, but also undermine regional peace and stability and the fundamental interests of (the Philippines’) own people.” — Reuters

SNAP wins NordCham Community Impact Award for empowering its host communities

L-R: Centre Medicale Internationale President Gary de Ocampo, SNAP President and CEO Joseph Yu, SNAP Corporate Social Responsibility and Sustainability Sr. Manager Enrico Laluan, SNAP Head of Sales and Marketing Shan Benjamin Buyco, and Nordic Chamber of Commerce (NordCham) Executive Director Axel Fries during the 2025 NordCham Business Awards held on Aug. 6 at the BDO Tower in Makati

Renewable energy solutions provider SN Aboitiz Power Group (SNAP) won the Community Impact Award at the 2025 Nordic Chamber of Commerce (NordCham) Business Awards, held on Aug. 6 at the BDO Tower Valero in Makati.

The award is one of the categories of the annual 2025 NordCham Awards. It recognizes organizations that contribute to inclusive development through social impact, community engagement, social innovation, and the integration of sustainability into its core operations. SNAP stood out among this year’s nominees in the category for its dedication to volunteerism, sustainable development, and uplifting its host communities.

“SNAP believes that business success is deeply intertwined with the well-being of the communities we serve,” said Joseph Yu, SNAP President and Chief Executive Officer. “Throughout our 18 years of operations, our focus on community development has defined the way we do business. Tonight’s award affirms the impact of the time, effort, and investment we have dedicated to building value with our host communities. We are deeply grateful to everyone who has been part of this mission.”

For nearly two decades, SNAP has been a trusted partner of local government units, host communities, and Indigenous Cultural Communities/Indigenous Peoples. Guided by the principles of transparency, collaboration, and shared growth, the company has built strong relationships with stakeholders across its areas of operation in the provinces of Benguet, Ifugao, Isabela, and Nueva Vizcaya.

Through its business units, SNAP-Benguet and SNAP-Magat, the company has financed 1,196 host community-driven projects under the company’s Community Investment and Development Program (CIDP). As of 2024, SNAP has voluntarily invested over P590.4 million through CIDP, supporting initiatives that drive community development across key areas such as health, education, livelihood, infrastructure, governance, environment, and support for Indigenous Peoples.

SNAP’s win this year not only celebrates its impact but also reinforces its mission of energizing a more sustainable future. The company was previously recognized at the NordCham Awards, earning runner-up honors for both CSR Business Partner of the Year and Sustainability Business Partner of the Year in 2023, and was also a finalist for Sustainability Business Partner of the Year in 2022.

The NordCham Sustainability Awards are part of the annual Nordic Business Awards organized by the Nordic Chamber of Commerce, which honor companies in the Philippines and across Southeast Asia for excellence in sustainability, corporate responsibility, and ethical business practices.

 

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Trump’s higher tariffs hit major US trading partners, sparking defiance and concern

US President Donald J. Trump announced he will impose a 10% baseline tariff on all imports to the United States. — REUTERS

US President Donald Trump’s higher tariffs on imports from dozens of countries kicked in on Thursday, raising the average US import duty to its highest in a century and leaving major trade partners such as Switzerland, Brazil and India hurriedly searching for a better deal.

The US Customs and BorUSder Protection agency began collecting the higher tariffs of 10% to 50% at 12:01 a.m. EDT (0401 GMT) after weeks of suspense over Trump’s final tariff rates and frantic negotiations with countries seeking to lower them.

The leaders of Brazil and India vowed not to be cowed by Trump’s hardline bargaining position, even while their negotiators sought a reprieve from the highest tariff levels.

The new rates will test Trump’s strategy for shrinking US trade deficits without causing massive disruptions to global supply chains or provoking higher inflation and stiff retaliation from trading partners.

‘BILLIONS’ IN TARIFF REVENUE
After unveiling his “Liberation Day” tariffs in April, Trump has frequently modified his plans, slapping much higher rates on imports from some countries, including 50% for goods from Brazil, 39% from Switzerland, 35% from Canada and 25% from India. He announced on Wednesday a further 25% tariff on Indian goods, to be implemented in 21 days over India’s purchases of Russian oil, on top of the 25% already imposed.

“BILLIONS OF DOLLARS, LARGELY FROM COUNTRIES THAT HAVE TAKEN ADVANTAGE OF THE UNITED STATES FOR MANY YEARS, LAUGHING ALL THE WAY, WILL START FLOWING INTO THE USA,” Trump said on Truth Social just ahead of the tariff deadline.

Tariffs are ultimately paid by companies importing the goods, and passed on in full or in part to consumers of end products.

Trump’s top trade negotiator, Jamieson Greer, said the US was working to reverse decades of policies that had weakened US manufacturing capacity and workforce, and that many other countries shared concerns about macroeconomic imbalances.

“The rules of international trade cannot be a suicide pact,” he wrote in a column published by the New York Times.

“By imposing tariffs to rebalance the trade deficit and negotiating significant reforms that form the basis of a new international system, the United States has shown bold leadership,” Greer said.

Eight major trading partners accounting for about 40% of US trade flows have reached framework deals for trade and investment concessions to Trump, including the European Union, Japan and South Korea, reducing their base tariff rates to 15%.

Britain won a 10% rate, while Vietnam, Indonesia, Pakistan and the Philippines secured rate reductions to 19% or 20%.

“There’ll be some supply chain rearrangement. There’ll be a new equilibrium. Prices here will go up, but it’ll take a while for that to show up in a major way,” said William Reinsch, a senior fellow and trade expert at the Center for Strategic and International Studies in Washington.

Countries with punishingly high duties, such as India and Canada, “will continue to scramble around trying to fix this,” he added.

Switzerland’s President Karin Keller-Sutter said on Thursday that talks with the US would continue after she returned home empty-handed from an 11th-hour trip to Washington aimed at averting the crippling US import tariff on Swiss goods.

A last-minute attempt by South Africa to improve its offer in exchange for a lower tariff rate also failed. The two countries’ trade negotiating teams would have more talks, South African President Cyril Ramaphosa’s office said.

Vietnam said on Thursday it would continue talks with the US as it seeks to lower tariffs further still, after negotiating a reduction to 20% from the 46% duty Trump slapped on imports from the Southeast Asian country in April.

Meanwhile, Brazil’s President Luiz Inacio Lula da Silva told Reuters on Wednesday he would not humiliate himself by seeking a phone call with Trump even as he said his government would continue cabinet-level talks to lower a 50% tariff rate.

Indian Prime Minister Narendra Modi was similarly defiant, saying he would not compromise the interests of the country’s farmers. The pressure has also strengthened India’s commitment to a “strategic partnership” with Russia, with Russian President Vladimir Putin set to visit by the end of the year.

Some countries were also rallying together to confront Trump, with Brazil’s Lula saying he would call the leaders of India and China to discuss a joint BRICS response to tariffs. Trump has repeatedly railed against BRICS members and recently threatened to subject their imports to an additional 10% tariff.

India said on Wednesday that Modi would visit China for the first time in seven years.

REVENUES, PRICE HIKES
US import taxes are one part of a multilayered tariff strategy that includes national security-based sectoral tariffs on semiconductors, pharmaceuticals, autos, steel, aluminum, copper, lumber and other goods. Trump said on Wednesday the microchip duties could reach 100%.

China is on a separate tariff track and will face a potential tariff increase on August 12 unless Trump approves an extension of a prior truce. He has said he may impose additional tariffs over China’s purchases of Russian oil as he seeks to pressure Moscow into ending its war in Ukraine.

Trump has touted a vast increase in federal revenues from his import tax collections, with US Commerce Secretary Howard Lutnick saying on Fox Business Network on Thursday that he expected revenue from tariffs to reach $50 billion a month, with more increases expected from separate duties on semiconductors and pharmaceuticals that should be announced soon.

The increase in duties will drive average US tariff rates to around 20%, the highest in a century and up from 2.5% when Trump took office in January, the Atlantic Council estimates.

Commerce Department data released last week included more evidence that tariffs were driving up US prices, including for recreational goods and motor vehicles, while costs are mounting for companies, including bellwethers Caterpillar, Marriott, Molson Coors and Yum Brands.

Toyota on Thursday said it expected a hit of nearly $10 billion from tariffs on cars imported into the US as it cut its full-year profit forecast by 16%.

But other Japanese companies such as Sony and Honda said they now expected a smaller impact on profits after Japan agreed a bilateral deal with Washington to lower tariffs. — Reuters

PHL economy expands 5.5% in Q2

Shoppers are seen buying school supplies in Divisoria, Manila. — PHILIPPINE STAR/RYAN BALDEMOR

By Aubrey Rose A. Inosante, Reporter

THE PHILIPPINE ECONOMY expanded at a slightly faster pace in the second quarter, driven by strong agriculture production and an uptick in consumption, the statistics agency said on Thursday.

Preliminary data released by the Philippine Statistics Authority (PSA) showed Philippine gross domestic product (GDP) grew by an annual 5.5% in the April-to-June period, up from the 5.4% in the first quarter.

It also matched the 5.5% median forecast in a BusinessWorld poll, and the lower end of the government’s 5.5% to 6.5% growth target this year.

Philippines’ Quarterly Gross Domestic Product PerformanceHowever, this was slower than the 6.5% growth in the second quarter of 2024.

On a seasonally adjusted quarter-on-quarter basis, the country’s GDP expanded by 1.5%, improving from 1.3% a year ago.

“The Philippine economy continues to show resilience and stability, even as global challenges persist and fuel uncertainty across many fronts,” Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio M. Balisacan said at a briefing on Thursday.

“With this performance, we maintain our place among the fastest-growing economies in emerging Asia,” he said, adding the Philippines was only behind Vietnam (8%) and ahead of China (5.2%) and Indonesia (5.1%).

While the Philippines may fall behind India’s projected 6.5% growth, Mr. Balisacan said it is still likely to outpace Malaysia’s projected 4.3% GDP growth and Thailand’s 2.4%.

For the first half, GDP growth averaged 5.4%, slower than the 6.2% a year ago.

Mr. Balisacan said GDP must grow by 5.6% for the rest of the year to achieve the low end of the full-year target.

“I think we can do better in the second half. (I am) confident that inflation has gone down substantially and the past reduction in the policy rates is now beginning to be felt,” he said.

Inflation slowed to a near six-year low in July at 0.9% as utilities and food costs continued to ease. For the first seven months of the year, inflation averaged 1.7%, a tad higher than the central bank’s 1.6% forecast for 2025.

The Bangko Sentral ng Pilipinas (BSP) has lowered benchmark interest rates by a cumulative 125 basis points since it started its easing cycle in August last year.

To reach the upper end of the target, the DEPDev chief said the economy must grow by 7.5% in the July-to-December period.

“Of course, 7.5% is high, but it’s not impossible. I think that if we see continuing improvement in the confidence of our consumers and our domestic investors, (we can see) higher growth in consumption and investment and services,” he said.

PSA data showed household final consumption, which accounts for over 70% of the economy, jumped by 5.5% in the April-to-June period. This was faster than the 4.8% in the second quarter of 2024 but slower than 5.3% in the first quarter. It was the fastest since the 8.1% growth in the first quarter of 2023.

“Our strategic, sustained, and coordinated efforts to manage inflation and safeguard purchasing power are making an impact. Notably, rice prices, a major concern for households, have been declining steadily in recent months,” Mr. Balisacan said.

The election-related ban on public works dampened government final consumption expenditure, which grew by 8.7% in the second quarter from 18.7% in the first quarter and 11.9% a year ago.

National Statistician Claire Dennis S. Mapa attributed this slowdown to public construction, which contracted by 8% in the second quarter.

The 45-day election ban on public works started on March 28 and ended with the May 12 elections.

“We expect to maintain that momentum in the spending side. The second half of the year, you should see improvements in the construction, public construction spending because it’s there where we had a bit of a slowdown, but that was expected because of the election ban,” Mr. Balisacan said.

TARIFF UNCERTAINTY
Uncertainty over the US tariffs has started to weigh on the Philippine economy, as growth in exports, industry and investment slowed in the second quarter.

Total exports growth grew by 4.4% in the April-to-June period, picking up from 3.9% a year ago but slowing from the 7.1% growth in the first quarter.

Merchandise exports also rose by 13.6% in the second quarter, driven by semiconductors, as US firms began front-loading before the higher tariffs took effect.

The US set a 19% tariff on Philippine goods, which took effect on Aug. 7.

“I expect the local economy to stabilize a bit with all this tariffs uncertainty, although they’re still there, but I think that supposedly this is the end of that series of announcements. We hope that there will be no further destabilization in the expectations about trade uncertainty,” Mr. Balisacan said.

Meanwhile, exports of services contracted by 4.2% in the second quarter, a reversal of the 6.3% growth in the previous quarter and 7.6% a year ago.

“It’s possibly following the overall state of the global economy. In recent months, we saw deceleration and uncertainty in the trade sector, including trade and services,” Mr. Balisacan said.

On the other hand, imports of goods and services slowed to 2.9% in the second quarter, slower than the 5.3% in the same period last year and 10.3% in the first quarter.

Gross capital formation, the investment component of the economy, grew by 0.6% in the second quarter, slower than the 11.5% growth a year ago and the 4.8% growth in the first quarter.

“I think we will see a rebound of investment in the second quarter. The election ban is over so we should continue and that should be a positive factor. The domestic investment climate is improving as seen in the continuing decline in interest rates,” Mr. Balisacan said.

AGRICULTURE
On the supply side, agriculture output grew by 7% in the second quarter, the fastest in nearly 14 years or since 8.3% recorded in the second quarter of 2011.

Mr. Balisacan attributed the strong rebound in farm output to palay and corn, which grew by 14.2% and 29.8% respectively.

The services sector, which made the biggest contribution among major industries, expanded by 6.92% in the second quarter, faster than 6.87% a year ago.

The industry sector grew by 2.1% in the second quarter, slowing from 7.9% a year ago and 4.6% in the first quarter.

“Industry growth slowed to 2.1%, affected by declines in output for coke and refined petroleum products (-12.2%), chemical products (-6.6%), and computer and electronics (-2.5%),” Mr. Balisacan said.

Food manufacturing grew by 9.3%, slightly below the 10.8% in the previous quarter.

The PSA said among the main contributors to the second-quarter growth were wholesale and retail trade, repair of motor vehicles and motorcycles (5.8%), compulsory social security (12.8%) and financial and insurance activities (5.6%).

Gross national income posted an annual 8.2% growth in the second quarter, slightly lower than the 8.1% expansion a year ago.

Net primary income went up by 38.8% in the second quarter, higher than the 25.8% in the same period in 2024.

GROWTH OUTLOOK
Capital Economics Senior Asia Economist Gareth Leather said in a commentary that they expect “steady” growth for the rest of the year as domestic consumption will be supported by easing inflation and lower interest rates. They see Philippine GDP growth averaging 5.5% for the full year, meeting the low end of the government’s goal.

However, the “fragile” external environment poses risks to the outlook, Mr. Leather said.

“Trump tariffs and weaker global demand mean export growth is likely to slow further over the coming months.”

ANZ Research added that external headwinds would also affect private investment.

“Private investment remains constrained by low productivity growth and slowing global growth… Given the subdued outlook for external demand, private investment is unlikely to rebound in the near-term. However, the strong rise in capital goods imports in June indicates an increase in government capital expenditure, which can help partly offset the weakness in private gross fixed capital formation,” it said in a report.

While inflation has eased, private consumption will continue to be weighed down by low wages, ANZ Research added. “Overall, we forecast growth to ease to 5.1% in 2025.”

“We believe private investment spending will be more subdued, as businesses turn more cautious owing to surging global trade policy uncertainty and an increasingly challenging operating environment. In the same vein, we expect goods export growth to slow due to the impact of US tariffs, but acknowledge rising downside risks particularly from sectoral tariffs on semiconductors in the coming quarters,” Nomura Global Markets Research said in a separate note.

It expects the economy to grow by 5.3% for the full year. “Our forecast pencils in GDP growth slowing to 5.2% year on year in the second half from 5.4% in the first half, even as we expect a rebound in public investment spending.”

Jonathan L. Ravelas, senior adviser at Reyes Tacandong & Co., said that global trade uncertainty and supply chain risks are a “red flag” for long-term growth.

“We’re on track, but not cruising,” Mr. Ravelas said. “Stakeholders should double down on consumer confidence, unlock private investments, and leverage [the agriculture sector’s] momentum.”

“The second half is crucial — it’s time to push, not pause.”

Wealth of top 50 tycoons in Philippines reaches $86B

THE PHILIPPINES’ 50 richest tycoons increased their combined wealth by 6% to over $86 billion (around P4.92 trillion) this year, with nearly half of those on the list now wealthier than a year ago, according to Forbes Asia.

“Buoyed by domestic demand and an uptick in infrastructure investments, the Philippine economy expanded by 5.4% in the first quarter of 2025, but US tariffs proved to be a spoiler. The country’s benchmark stock market index dipped 7% since fortunes were last measured, though that was partially offset by a firmer peso,” Forbes Asia said in a statement.

The Sy siblings once again topped the Forbes list of the Philippines’ 50 Richest for 2025, despite a $1.2-billion drop in their net worth.

The six Sy siblings, namely, Teresita, Elizabeth, Henry Jr., Hans, Herbert, and Harley, posted a combined net worth $11.8 billion. They are the heirs to the SM Group built by the late Henry Sy, Sr., who was the richest man in the Philippines until his death in January 2019.

Ports and casino tycoon Enrique K. Razon, Jr. landed on the second spot for the second straight year. The chairman of International Container Terminal Services, Inc. and Bloomberry Resorts Corp. had a net worth of $11.5 billion, up from last year’s $11.1 billion.

Property tycoon and former politician Manuel B. Villar, Jr. remained in third place with a fortune of $11 billion, slightly higher than his net worth of $10.9 billion last year. This comes as he turned his mass-housing and memorial park developer Golden MV Holdings into Villar Land Holdings.

San Miguel Corp. Chairman and Chief Executive Officer Ramon S. Ang ranked fourth with a net worth of $3.75 billion, slightly lower than the $3.8-billion net worth last year.

In fifth spot was DMCI Holdings, Inc. Chairman Isidro A. Consunji and his siblings with a net worth of $3.7 billion.

The Que Azcona family debuted at No. 6 with $3.6 billion net worth. The family entered the richest list after the Mercury Drug Corp. President Vivian Q. Azcona passed away in April. Her son Steven Azcona took over the drugstore chain.

Jaime Zobel de Ayala and his family inched up a spot to 7th place with a net worth of $3.4 billion, higher than the $2.6 billion a year ago.

Taipan Lucio C. Tan, chairman of LT Group, Inc., slipped a spot to 8th place with a net worth of $3.2 billion.

Puregold Price Club, Inc. founders Lucio and Susan Co came in on ninth place with a net worth of $3 billion, while Jollibee Foods Corp. Chairman Tony Tan Caktiong rounded out the top 10 with $2.9 billion.

The Ty siblings, Arthur, Alfred, Alesandra and Anjanette, are 11th richest in the country with a net worth of $2.8 billion. They are the children of late banking tycoon George Ty, who was the founder of Metropolitan Bank & Trust Co.

The Aboitiz family, who owns Cebu-based conglomerate Aboitiz Equity Ventures, Inc., are in 12th spot with a net worth of $2.2 billion.

The Po family, who controls Century Pacific Food, ranked 13th with a net worth of $1.9 billion.

Lance Y. Gokongwei and his siblings, whose companies include JG Summit Holdings, Cebu Pacific and Robinsons Land, are in 14th spot with a net worth of $1.8 billion.

Andrew L. Tan, who owns Alliance Global Group, Inc., landed in 15th place with a net worth of $1.65 billion.

Dennis Anthony H. Uy and Maria Grace Y. Uy, co-founders of broadband services provider Converge ICT Solutions, Inc., were in 16th place as their combined net worth surged 74% to $1.6 billion.

In 17th spot was Soledad Oppen-Cojuangco and family with a net worth of $1.15 billion, followed by online gaming, education, and logistics tycoon Eusebio H. Tanco in 18th spot with a wealth of $1.1 billion.

In 19th place were the Campos siblings, Jocelyn, Joselito and Jeffrey, with $910 million. Their father Jose Campos founded Unilab with business partner Mariano Tan.

Indonesian-born Hartono Kweefanus, chairman emeritus of Monde Nissin, and his family landed in 20th spot with a net worth of $840 million. He is the brother-in-law of Monde Nissin president Betty Ang, who ranked 23rd on the list with $615 million.

A minimum net worth of $185 million was needed to make this year’s list, up from $170 million in 2024.

Forbes said the net worth of top Philippine tycoons were based on the closing stock prices and exchange rates as of close on July 18, 2025. The list used shareholding and financial information from families and individuals, stock exchanges, analysts, and other sources. It also includes family fortunes, including those shared among extended families.

The list may also include foreign citizens or citizens who don’t reside in the Philippines but who have significant business or ties to the country. — with Arjay L. Balinbin and Revin Mikhael D. Ochave

Gross international reserves slip to $105.7B in July

PHILSTAR FILE PHOTO

THE PHILIPPINES’ gross international reserves (GIR) slipped in July amid lower gold prices and as the government paid back more of its foreign debt, preliminary data from the central bank showed.

The Bangko Sentral ng Pilipinas (BSP) on Thursday reported that dollar reserves dipped by 0.3% to $105.7 billion as of end-July from $106 billion as of end-June.

Year on year, the GIR inched down by 1% from $106.74 billion.

The central bank said the decline was mainly due to “lower global gold prices and the National Government’s drawdowns on its foreign currency deposits with the BSP to service external debt obligations.”

Ample foreign exchange buffers protect the country from market volatility and ensure that it is capable of paying its debts in the event of an economic downturn.

The central bank said the latest GIR provides “a robust external liquidity buffer.”

The level of dollar reserves as of end-July is enough to cover about 3.4 times the country’s short-term external debt based on residual maturity.

It is also equivalent to 7.2 months’ worth of imports of goods and payments of services and primary income.

“By convention, GIR is viewed to be adequate if it can finance at least three months’ worth of the country’s imports of goods and payments of services and primary income,” the BSP said.

“The latest GIR level ensures availability of foreign exchange to meet balance of payments financing needs, such as for payment of imports and debt service, in extreme conditions when there are no export earnings or foreign loans.”

International reserves are foreign assets of the BSP held mostly as investments in foreign-issued securities, monetary gold, and foreign exchange.

These are supplemented by claims to the International Monetary Fund (IMF) in the form of reserve position in the fund and special drawing rights (SDRs).

The BSP’s foreign exchange holdings plunged by 34.3% to $826.3 million as of July from $1.26 billion as of end-June. Year on year, it rose by 2.1% from $809 million.

The value of the central bank’s gold holdings edged lower by 0.1% to $13.78 billion from $13.8 billion as of June. On the other hand, it jumped by 33.7% from $10.31 billion a year earlier.

At end-July, spot gold was down 1.5% at $3,275.92 per ounce. US gold futures settled 0.8% lower at $3,352.8, Reuters reported.

Gold tends to perform well during economic uncertainty and a low-interest-rate environment further supports the non-yielding asset.

BSP data showed foreign investments increased by 0.2% to $86.42 billion as of July from $86.26 billion a month ago. However, it dropped by 5.1% to $91.1 billion from the same period in 2024.

The country’s reserve position in the IMF slipped by 0.5% to $729 million from $732.4 million in the previous month. Year on year, it went up by 1.3% from $719.9 million.

SDRs — or the amount which the Philippines can tap from the IMF’s reserve currency basket — was unchanged month on month at $3.94 billion.

Meanwhile, net international reserves decreased by 0.3% to $105.7 billion as of end-July from $106 billion as of end-June.

Net international reserves refer to the difference between the GIR and reserve liabilities, including short-term foreign debt, and credit and loans from the IMF.

“The decline in GIR may be caused by larger debt repayments to address maturing securities and other obligations,” Reinielle Matt M. Erece, an economist at Oikonomia Advisory and Research, Inc., said.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the drop in GIR was also amid the continued “Trump risk factor that led to some market volatility worldwide.”

Markets have been in a wait-and-see mode amid the US’ flip-flopping tariff policies.

In an executive order signed on July 31, US President Donald J. Trump imposed a 19% duty on many goods from five members of the Association of Southeast Asian Nations — the Philippines, Cambodia, Malaysia, Thailand and Indonesia. This was expected to take effect on Thursday (Aug. 7).

Meanwhile, Bank of the Philippine Islands Lead Economist Emilio S. Neri, Jr. said that the dollar reserves could trend lower in the coming months if the BSP intervenes to support the peso.

“If the BSP intervenes to keep the US dollar from breaching P59 and P60, we should see further depletion of our GIR,” he said in a Viber message.

BSP Governor Eli M. Remolona, Jr. told Bloomberg on Tuesday that the central bank is intervening more forcefully during periods of extended peso weakness as part of a new strategy, gradually moving away from day-to-day intervention.

He said the central bank adopted a new formula that determines the magnitude of peso losses that require stronger intervention to curb price pressures, Bloomberg reported.

“They aren’t worried about breaches of these levels though since inflation is pretty low,” Mr. Neri added.

Inflation sharply eased to a near six-year low of 0.9% in July from 1.4% in June and 4.4% a year ago, marking the fifth straight month that it settled below the central bank’s 2-4% target.

For the first seven months of the year, inflation averaged 1.7%, a tad higher than the BSP’s 1.6% forecast for 2025. — Luisa Maria Jacinta C. Jocson

Megaworld bets on tourism with 7 new hotels by 2030

The 326-room Courtyard by Marriott in Iloilo will be consolidated under Megaworld Hotels & Resorts portfolio this year. — MEGAWORLD CORP

LISTED property developer Megaworld Corp., through its hospitality arm Megaworld Hotels & Resorts, is planning to open seven new hotels by 2030 as part of its goal to expand its portfolio to 9,000 rooms.

The hotels targeted for opening include the 554-room Chancellor Hotel in Boracay Newcoast; the 404-room Belmont Hotel Iloilo in Iloilo Business Park; and the 300-room The Kingsford in The Upper East Bacolod, Megaworld said in a regulatory filing on Thursday.

Also slated for launch are the 304-room Savoy Hotel Palawan and the 313-room Paragua Sands in Paragua Coastown, San Vicente, Palawan; the 373-room Savoy Capital Town in Capital Town, San Fernando, Pampanga; and the 339-room ArcoVia Hotel in ArcoVia City, Pasig City.

“It is Alliance Global Group, Inc.’s (AGI) thrust to strengthen and streamline our hospitality portfolio as we look to attract and welcome more tourists, more conventions, and more events to our hotel developments,” said Kevin L. Tan, president and chief executive officer (CEO) of AGI, the parent company of Megaworld.

Megaworld Hotels & Resorts currently operates 13 hotel properties with around 6,000 rooms.

These include properties under the Richmonde Hotel brand (Richmonde Hotel Ortigas, Eastwood Richmonde Hotel, and Richmonde Hotel Iloilo); Belmont Hotel brand (Belmont Manila, Belmont Boracay, Belmont Mactan); Savoy Hotel brand (Savoy Manila, Savoy Mactan, Savoy Boracay); Hotel Lucky Chinatown; Twin Lakes Hotel; Kingsford Hotel Manila; and Grand Westside Hotel.

The company is also set to add 326 room keys to its hotel portfolio this year through the consolidation of the 15-story Courtyard by Marriott in Iloilo Business Park.

Within the year, Belmont Hotel Mactan in Cebu will transition into an Accor-branded international hotel, the Mercure Mactan Cebu.

Over the next five years, at least five more existing homegrown properties of Megaworld Hotels & Resorts will be rebranded under Accor, allowing the company to operate both homegrown and international hotel brands.

Earlier this year, Megaworld Hotels & Resorts tapped hotel chain Accor to elevate its domestic hotel portfolio.

“The inclusion of international hotels in our portfolio will further cement our position as the largest hotel operator in the country for both local and international hotels. Through this expansion program, we aim to continue to further grow and strengthen our contribution to the Philippine tourism industry,” Megaworld President and CEO Lourdes T. Gutierrez-Alfonso said.

Megaworld shares rose 2.45% or five centavos to P2.09 apiece on Thursday. — Revin Mikhael D. Ochave

Hann Holdings says P13-B IPO on track, no pushback expected

HANN CASINO — HANN HOLDINGS INC.

HANN HOLDINGS, Inc., the operator of the Hann Casino Resort in Clark, said it does not expect any delays to its planned P13-billion initial public offering (IPO).

“We don’t see any risk that is going to push back (the IPO),” Hann Group Founder, Chairman, President, and Chief Executive Officer Dae Sik Han told reporters on Thursday.

Hann Group consists of Hann Holdings, Hann Philippines, Inc., Hann Properties Corp., Hann Property Development, Inc., Hann Foundation, Inc., and Widus International Leisure, Inc.

Hann Holdings plans to conduct a P13-billion IPO, which consists of a primary offer of up to 500 million common shares and an overallotment option of up to 50 million secondary common shares priced at up to P23.60 apiece.

The overallotment option will be offered by Hann Group Holdings W.L.L., the parent company of Hann Holdings.

Based on its latest prospectus dated July 31, the IPO offer period will run from Sept. 9 to 15, with listing on Sept. 23.

“This IPO will open another window for us to expand. IPO for fundraising is one thing, but the other one is credibility as well,” Mr. Han said.

“It’s going to be very difficult for me to somehow dream that someday I may branch out in different areas in the Philippines or even different countries. That kind of opportunity brought by the IPO, that makes me excited,” he added.

Hann Holdings expects to generate P11.43 billion in net proceeds, which will be used to fund the development and expansion plans and general corporate purposes of Hann Philippines.

Asked about the possibility of establishing new locations, Mr. Han hinted that he is open to “any opportunity” but reiterated that his current focus is on scaling up operations in Clark.

“Any business opportunity to increase the value of the company, yes, I will do it,” he said.

Hann Holdings tapped CLSA Ltd. as the sole global coordinator for the IPO. It will also serve as joint bookrunner, together with domestic underwriters Asia United Bank Corp., BDO Capital & Investment Corp., China Bank Capital Corp., and PNB Capital and Investment Corp.

It is set to become the second IPO this year, following Cebu-based fuel retailer Top Line Business Development Corp. — Revin Mikhael D. Ochave

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