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Israelis honor Trump as hostages return home two years after their capture

People walk near a US flag hanging on a building, ahead of an official visit by U.S. President Donald Trump, amid a ceasefire between Israel and Hamas in Gaza, in Jerusalem Oct. 12, 2025. REUTERS/RONEN ZVULUN

JERUSALEM/CAIRO – US President Donald Trump will receive a hero’s welcome in Israel’s parliament on Monday as a fragile Gaza ceasefire he helped to broker enters a fourth day, with the expected release of Israeli hostages and Palestinian prisoners marking tentative steps in a conflict long resistant to resolution.

Trump’s Knesset speech follows two years of war sparked by a Hamas attack on October 7, 2023, that killed around 1,200 people in Israel with 251 taken hostage. Israeli airstrikes and ground assaults have since devastated Gaza, killing more than 67,000 Palestinians, the enclave’s health officials say.

“The war is over,” Trump told reporters aboard Air Force One as he began his flight from Washington to Israel. Asked about prospects for the region, he said: “I think it’s going to normalize.”

The U.N. said humanitarian aid was ramping up, with cooking gas entering for the first time since March and expanded food and medical deliveries.

A LASTING PEACE SEEMS DISTANT
The truce and the exchange of both hostages and prisoners offered a glimmer of hope, but despite Trump’s optimism, the loss of life, devastation and trauma underscored how distant a lasting peace remains. Progress now hinges on global commitments that could be taken up by a summit later on Monday of more than 20 world leaders led by Trump in Egypt’s Sharm el-Sheikh resort.

Palestinian President Mahmoud Abbas will attend the summit in Egypt, an Axios reporter said on Sunday, citing a senior Palestinian official. No Israeli officials will attend, Israeli government spokesperson Shosh Bedrosian said.

Bedrosian said Israel expected the remaining hostages to begin returning early on Monday with the 20 living hostages to be released together, followed by the handover of bodies of the remaining 28 dead hostages.

She said 1,700 Palestinians detained since October 7, 2023, along with 22 minors and the bodies of 360 militants, would be released only after Israeli hostages were safely returned.

On the ground, Palestinians returning to northern Gaza described scenes of staggering destruction.

“We couldn’t believe the devastation,” said Rami Mohammad-Ali, 37, who walked 15 kilometers (9 miles) with his son from Deir Al Balah to Gaza City. “We are joyful to return, but bitter about the destruction,” he added, recounting the sight of human remains scattered along the roads.

ISRAELIS BOO NETANYAHU, CHEER TRUMP
Multitudes who gathered late on Saturday at Tel Aviv’s Hostages Square cheered and waved placards in praise of Trump during a speech by his special envoy Steve Witkoff but booed loudly when Witkoff sought to thank Israeli Prime Minister Benjamin Netanyahu for his role in the ceasefire effort.

Trump will become only the fourth US president to address the Knesset, following Jimmy Carter in 1979, Bill Clinton in 1994 and George W. Bush in 2008.

In a letter last week inviting Trump to deliver a formal address, Knesset Speaker Amir Ohana wrote: “The people of Israel regard you as the greatest friend and ally of the Jewish nation in modern history.”

Israeli critics of Netanyahu, including hostages’ families, accuse him of deliberately prolonging the conflict to placate his far-right government coalition partners, whose backing is crucial to his political survival. The International Criminal Court last year issued arrest warrants for Netanyahu for alleged war crimes and crimes against humanity, which Israel denies.

“Tomorrow is the beginning of a new path. A path of building, a path of healing, and I hope – a path of uniting hearts,” Netanyahu said in a televised statement on Sunday.

The US, along with Egypt, Qatar and Turkey, mediated what has been described as a first phase agreement between Israel and Hamas. The next phase of Trump’s plan calls for an international body – a “Board of Peace” led by Trump and joined by former British Prime Minister Tony Blair – to play a role in Gaza’s post-war administration.

Much could still go wrong. Further steps in Trump’s 20-point plan have yet to be agreed. Those include how Gaza is to be ruled when fighting ends, and the ultimate fate of Hamas, which has rejected Israel’s demands that it disarm.

The Hamas-run Interior Ministry said it would deploy security forces in areas where the Israeli army withdrew. It was unclear whether armed militants would return to the streets in significant numbers, which Israel would see as a provocation.

TENSE NEGOTIATIONS OVER RELEASE OF PALESTINIAN PRISONERS
Israel and Hamas were locked in tense, albeit indirect, negotiations over the list of Palestinian prisoners to be freed. Sources close to Hamas said Israel had backtracked on a previously agreed list that included senior militant leaders, raising fears of a breakdown in the fragile deal.

The Israeli Justice Ministry released the names of 250 Palestinians convicted of murder and other serious crimes due to be released. The list excluded high-profile figures such as senior Hamas commanders as well as Marwan Barghouti and Ahmed Saadat – key demands from Hamas. Talks over the final list were ongoing, said the Hamas prisoners information office.

Defence Minister Israel Katz warned that once the hostages were back the military would proceed to destroy Hamas’ underground tunnel network in Gaza.

Palestinian analyst Akram Attallah told Reuters in Cairo the Trump plan had been crafted to favour Israel, allowing it to dictate terms and shift blame.

“If they choose to backtrack, they can find excuses and blame Hamas. Meanwhile, Hamas, the weaker party, loses all leverage once it hands over the hostages,” Attallah said. — Reuters

Samsung set for highest Q3 profit in three years as AI demand lifts chip prices

REUTERS

SEOUL – Samsung Electronics is expected to post its highest third-quarter profit since 2022, driven by higher memory chip prices supported by server demand as customers rebuild inventories, analysts’ estimates showed.

The world’s biggest maker of memory chips is projected to report an operating profit of 10.1 trillion won ($7.11 billion) for the July-September period, according to LSEG SmartEstimate from 31 analysts, which is weighted toward those who are more consistently accurate. This would be up 10% from a year earlier.

Analysts attributed the recovery mainly to better conventional memory chip pricing, which would offset weaker sales volumes of high-bandwidth memory (HBM) chips as Samsung has yet to supply its latest HBM products to Nvidia.

HBM chips, critical for artificial intelligence (AI) development, are designed to reduce power consumption and process large datasets by stacking chips vertically.

Analysts said demand for memory chips, particularly from hyperscalers and AI-related investments for services such as ChatGPT, have put more workload on general servers, thus boosting conventional memory chip prices.

Prices of some DRAM chips, widely used in servers, smartphones and PCs, jumped 171.8% in the third quarter from a year earlier, according to TrendForce data.

While Samsung’s conventional memory business performed well, analysts said delays in supplying its latest 12-layer HBM3E chips to Nvidia have hurt its profit and share price.

Rivals SK Hynix and Micron have gained more from AI-driven demand, while Samsung’s exposure to China, where advanced chip sales are restricted by the United States, has constrained its growth.

Analysts said market sentiment toward Samsung’s shares and chip business, including both memory and contract chip manufacturing, is expected to improve as it secures supply deals with major customers such as OpenAI and Tesla.

Samsung shares have risen more than 43% following its announcement of a chip supply deal with Tesla in July.

During OpenAI CEO Sam Altman’s visit to South Korea earlier this month, Samsung, SK Hynix and OpenAI announced partnerships to supply advanced memory chips to the Stargate project.

The AI chip deal between OpenAI and AMD, one of Samsung’s major HBM customers, would also benefit Samsung, said Ryu Young-ho, a senior analyst at NH Investment & Securities.

Ryu added that Samsung’s $16.5 billion foundry deal with Tesla has lifted expectations that Samsung’s struggling contract chip manufacturing business could win more orders from major tech firms if the company delivers the project as planned.

While recent AI-driven supply deals signal a positive outlook for Samsung, analysts cautioned that uncertainties remain, including potential US tariffs on chips and China’s tightened export controls on rare earth materials used in advanced chips and manufacturing equipment.

In September, Micron said it expects to sell out all of its HBM chips for calendar year 2026 in the coming months due to strong demand.

Samsung will announce its estimates on revenue and operating profit on Tuesday, with full results due later this month. — Reuters

Banquets and billions: How AstraZeneca sealed a US medicine deal with Trump

LONDON – AstraZeneca CEO Pascal Soriot looked relaxed standing in the Oval Office on Friday as US President Donald Trump unveiled a medicine deal that will lower drug prices for millions of Americans.

The hard work had paid off, allowing Soriot to clinch the first agreement for a non-US drugmaker and shield his Anglo-Swedish company from threatened steep tariffs on imports to the US – the world’s largest pharmaceuticals market.

That moment at the White House was the culmination of public and private meetings between Soriot and Trump officials, stretching back to November last year when Trump won election, three sources close to the negotiations told Reuters. And it went down to the wire with a last-minute push from AstraZeneca to seal the agreement.

“You’ve kept me up at night and my team as well. But it’s been really worth it,” Soriot joked to Trump.

ASTRAZENECA CEO MET TRUMP AT ROYAL BANQUET

The agreement will likely bolster the 66-year-old French-born Australian’s reputation as something of a Trump whisperer, even as many CEOs globally grapple with the president’s whipsaw tariff changes.

Trump argues Americans pay far too much – often three times more, studies show – for prescription medicines than in other wealthy nations and set a September 29 deadline for drugmakers to cut prices, using threats of tariffs up to 100% as leverage.

Soriot’s charm offensive started the week after Trump won the US election. On November 12, AstraZeneca announced a $3.5 billion plan to expand manufacturing and research in the United States.

Soriot, who arrived in the US early last week, most recently met Trump at a September 18 royal banquet dinner at Windsor Castle in Britain, the first source said.

Over the summer he met with US Secretary of Commerce Howard Lutnick at least three times in Britain and the United States, that source added.

All three sources asked not to be named as the talks were confidential.

Soriot also developed a close relationship with vocal Trump ally and Republican high-flier, Governor Glenn Youngkin of Virginia, all three sources said. That led to a rapidly-assembled deal for a $4.5 billion plant in the state, which took just over a month to go from initial talks to an agreement.

On Thursday, a day before the Oval Office signing, Soriot and Youngkin stood shoulder-to-shoulder, shovels in hand, to break ground at the site.

“Youngkin has a lot of ambition and his connections with the administration were clearly helpful,” a second source said. “The Virginia facility deal showed the two sides were on the same page.”

ASTRAZENECA: A ‘VERY AMERICAN COMPANY’

Following the agreement and a deal a week earlier by US peer PfizerPFE.N that boosted global healthcare stocks, Wall Street now expects more companies to reach similar agreements with the Trump administration in the coming weeks.

Shore Capital analyst Sean Conroy said that Soriot, who publicly backed Trump on drug pricing and called AstraZeneca a “very American company”, secured a seat at the table in Washington with smart strategic announcements.

“That rhetoric has clearly resonated with the Trump administration and its agenda around Most Favored Nation drug pricing,” Conroy said, referring to the lowest price paid in other wealthy countries after fees and rebates.

SOME CONCESSIONS, BUT A WIN FOR ASTRAZENECA

Analysts had estimated that AstraZeneca was less exposed to US tariffs than many other major drugmakers, having already established substantial manufacturing capacity in the United States.

But tougher regulation and more price pressure in the UK, where many drugmakers have criticized the government for not doing enough to support the sector, gave AstraZeneca a strong business argument for the US deal.

Britain accounts for a small percentage of the company’s revenues but is where it is headquartered and primarily listed. AstraZeneca is the largest listed firm on London’s FTSE 100 Index.

In contrast to Britain, US officials are in the midst of an aggressive push to spur investment from firms like AstraZeneca and put in ample energy and effort to assist them, the first source said.

In July, AstraZeneca announced a sprawling $50 billion investment plan for the US market and in late September said it would do a full US listing of its shares alongside its current London listing.

By the time Pfizer signed its deal on September 30, AstraZeneca was already nearing its own finalised agreement, the three sources said.

Soriot headed to the US early last week even as the last details were being ironed out. Each day a deal looked close but didn’t arrive.

The Virginia plant agreement solidified goodwill between the company and the Trump administration, which ultimately helped push the deal over the line, the third source said.

In the end, while AstraZeneca made concessions on some drug prices for Medicaid and pledged to produce more medicines locally, its US arrangement marks a win for the company.

It gives more clarity, analysts say, without significantly denting expected revenues, which AstraZeneca is aggressively forecasting at $80 billion by 2030, with half of that coming from increased sales in the United States.

“Friday’s deal is the last piece in the puzzle,” the third source added. — Reuters

NPL ratio rises to 9-month high in Aug.

BW FILE PHOTO

By Katherine K. Chan

PHILIPPINE BANKS’ gross nonperforming loan (NPL) ratio rose to a nine-month high in August, preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed.

The local banking sector’s gross NPL ratio worsened to 3.5% in August from 3.4% in the previous month. However, it eased from the 3.59% recorded a year earlier.

August’s bad loan ratio was the highest in nine months or since 3.54% in November 2024.

Loans are considered nonperforming once they are unpaid for at least 90 days after the due date. These are deemed as risk assets since borrowers are unlikely to pay.

Preliminary BSP data showed that soured loans edged up by 2.7% to P550.095 billion in August from P535.448 billion in July.

Year on year, nonperforming loans went up by 7.3% from P512.704 billion.

The total loan portfolio of Philippine banks stood at P15.709 trillion in August, down by 0.4% from P15.771 trillion in July. However, it climbed by 9.9% from P14.299 trillion a year ago.

“The slight uptick in banks’ NPL ratio to 3.5% in August reflects softer economic momentum and early stress in consumer and MSME (micro, small, and medium enterprises) segments amid cost pressures,” Union Bank of the Philippines (UnionBank) Chief Economist Ruben Carlo O. Asuncion said in a Viber message.

Meanwhile, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said bad weather affected many businesses, affecting borrowers’ ability to repay debts.   

“This is largely due to weather-related disruptions since July 2025, in view of the series of storms (and) flooding that reduced business days, sales and incomes of businesses and people, thereby reducing the ability to pay by some borrowers,” he said in a Viber message.

From late July to early August, tropical storms Crising, Dante and Emong, and the southwest monsoon brought heavy rains and flooding across the country.

Mr. Ricafort said the higher bad loan ratio in August partly reflected the impact of US President Donald J. Trump’s recent policies on the economy.

“This is on top of the slower global and local (economy) due to Trump’s higher tariffs, protectionist measures, and the resulting trade wars that reduced exports and global trade, investments, employment and other economic activities,” he added.

The US imposed a 19% tariff on Philippine goods starting Aug. 7.

Based on central bank data, past due loans inched up by 0.8% to P693.085 billion in August from P687.588 billion in July and by 9.8% from P631.421 billion in August last year.

This brought the past due loan ratio to 4.41%, higher than the 4.36% in July but slightly lower than the 4.42% last year.

Restructured loans, on the other hand, dipped by 0.2% to P328.917 billion in August from P329.643 billion a month ago, but increased by 12.2% from P293.162 billion in August 2024.

This accounted for 2.09% of the industry’s total loan portfolio, unchanged from July but higher than the 2.05% seen a year prior.

Meanwhile, banks’ loan loss reserves amounted to P519.293 billion, up by 1.4% from P512.061 billion in July and by 7.6% from P482.489 billion a year earlier.

With this, the August loan loss reserve ratio was higher month on month at 3.31% from 3.25% in July but down from 3.37% the previous year.

Lenders’ NPL coverage ratio, which gauges the allowance for potential losses due to bad loans, slipped to 94.4% in August from 95.63% in July. However, it was above the 94.11% logged in August 2024.

“While some upward drift is possible as loan portfolios mature, we expect asset quality to remain broadly manageable, supported by strong capital buffers and recent monetary easing,” UnionBank’s Mr. Asuncion said.

Jonathan L. Ravelas, a senior adviser at Reyes Tacandong & Co., said the bad loan ratio reflects sluggish economic growth, elevated borrowing costs, and lingering repayment challenges among consumers and small businesses.

“Unless these floodgate issues are resolved soon, growth challenges remain (and) NPLs may remain elevated,” he said in a Viber message, referring to the corruption scandal involving government flood control projects.

On Thursday, the central bank delivered a surprise 25-basis-point (bp) cut, bringing the benchmark policy rate to a three-year low of 4.75%.

BSP Governor Eli M. Remolona, Jr. said the fourth straight cut this year came as recent corruption issues affected business sentiment and weakened the growth outlook.

The Monetary Board has so far slashed borrowing costs by a cumulative 175 bps since it began its easing cycle in August 2024.

Mr. Remolona also left the door open for another cut at their last policy-setting meeting this year on Dec. 11 and possibly more next year.

BSP likely to continue easing until early 2026 – analysts

The Monetary Board last week unexpectedly trimmed the key policy rate — PHILIPPINE STAR/EDD GUMBAN

THE BANGKO SENTRAL ng Pilipinas (BSP) is expected to deliver two more 25-basis-point (bp) cuts until early next year following the central bank chief’s dovish comments, analysts said.

This came after the Monetary Board last week unexpectedly trimmed the key policy rate by 25 bps to a three-year low of 4.75%, a move that BSP Governor Eli M. Remolona, Jr. attributed to weakening business sentiment amid the widening flood control corruption mess.   

“We never bought into Mr. Remolona’s talk of a ‘sweet spot’ in August and, with corporate sentiment going from underwhelming to outright miserable, we reckon more monetary easing is in the pipeline until early next year,” Pantheon Macroeconomics Chief Emerging Asia Economist Miguel Chanco and Asia Economist Meekita Gupta said in a report.

“We still see a 25-bp cut in December and we’ve added an additional reduction in (the first quarter next year), taking the TRR (target reverse repurchase) rate to a terminal of 4.25%,” they added.

If realized, the policy rate of 4.25% would be the lowest in over three years or since August 2022 and would match the rate in September 2022.

Mr. Remolona had also signaled at least two more cuts at its December meeting and by next year, noting the BSP now sees the neutral nominal policy rate to be closer to 4% than their earlier projection of 5%. 

“BSP’s tone was decisively more dovish by suggesting that it sees scope for a more accommodative stance and that the output gap may be larger,” Nomura Global Markets Research analysts Euben Paracuelles and Yiru Chen said in a note.

Nomura likewise expects the BSP to bring borrowing costs to a terminal rate of 4.25% by the first quarter next year, but noted that they see “risks of more cuts next year if adverse scenarios play out.”

Meanwhile, Bank of the Philippine Islands (BPI) and MUFG Global Markets Research see the central bank’s policy easing potentially stretching until the first half of 2026.

“Further easing could be supported by several factors, including expectations that the (United States) Federal Reserve will also deliver additional rate cuts amid a more dovish composition of the FOMC (Federal Open Market Committee) once Chair (Jerome) Powell steps down in May 2026,” BPI Lead Economist Emilio S. Neri, Jr. said in a note.

Slower Philippine economic growth amid growing concerns over public infrastructure spending and disinflationary risks from China’s potential dumping could likewise give the BSP more room to cut, he added.

Last week, the Trade department warned China, which is facing high US tariff rates, might start diverting its goods to the Philippines. This move could lead to foregone revenues and slower inflation.

Mr. Neri expects the BSP to end its current easing cycle once the policy rate hits 4% next year.

“However, such aggressive easing could prove to be an overshoot, raising the risk of a sharp policy reversal later on once inflation accelerates,” he said.

“The possible continuation of BSP rate cuts could drive a rally in government bonds, led by the short end of the yield curve,” he added.

Meanwhile, MUFG Senior Currency Analyst Michael Wan said the central bank might also bring its reserve requirement ratio (RRR) to 4% from 5% by 2026. 

The BSP last reduced the RRR in February by 200 bps to 5%. RRR refers to the portion of a bank’s deposits held as reserves and cannot be lent out and is used to manage the banking system’s liquidity.

MUFG also noted that the Philippine central bank governor’s sentiments in the latest meeting reflect “somewhat less support” for the peso.

Mr. Remolona on Thursday said they will only defend the peso if it depreciates sharply to a point that it could become inflationary.

“For the PHP, these changes in forecasts imply somewhat less support for PHP from (a foreign exchange) perspective, but what will also matter for FX (foreign exchange) is the extent of growth slowdown, and also the resultant impact on key flow dynamics such as the current account deficit, FDI (foreign direct investment) inflows, and to a smaller extent portfolio flows,” MUFG’s Mr. Wan said. — Katherine K. Chan

Analysts call for more transparency in bicameral committee meetings for budget bill

PHILIPPINE STAR/MICHAEL VARCAS

By Kenneth Christiane L. Basilio, Reporter

THE HOUSE of Representatives’ approval of the P6.793-trillion national budget for 2026 signals “business as usual,” as lawmakers sidestepped deeper reforms despite pledges of transparency amid a widening scandal over flood control spending, analysts said over the weekend.

Congress should make the 2026 spending plan’s bicameral conference committee process more transparent to help rebuild public trust and ensure that spending priorities align with genuine development needs rather than political interests, they added.

“After the flood control scandal, Congress needed to be bold,” AJ A. Montesa, an advisor at budget watchdog People’s Budget Coalition, said in a Viber message. “This was their chance to restore public trust in the budget process and prove that corruption and pork barrel politics were truly being eliminated.”

“Unfortunately, it ended up being almost business as usual.”

Congressmen last week approved on second reading the massive spending bill amid a multibillion-peso flood control scandal that has gripped the flood-prone country, reallocating funds originally earmarked for flood infrastructure to education, health and agriculture in a bid to boost human capital development.

The move came alongside efforts to open the budget process to greater scrutiny, though critics warned it fell short of meaningful reform.

The budget bill’s final approval is set for Oct. 13 (Monday).

While the reforms have fallen short for now, University of Makati political science professor Ederson DT. Tapia said the changes mark a step toward greater transparency in a budget process long criticized for opacity and political maneuvering.

“Given the public’s temperature, they have to start with something,” he said in a Facebook Messenger chat. “But it can be more than what we’ve seen so far.”

The House Appropriations Committee introduced a series of reforms in this year’s budget cycle, including inviting civil society groups to participate in budget briefings and offer input.

It also scrapped the long-standing “small committee” of select lawmakers that previously amended the spending bill through a sub-panel on budget adjustments.

“Civil society organizations were invited to observe the early committee hearings, but after that, it was as if they were forgotten,” said Mr. Montesa, whose group was accredited to participate in the House budget process.

Budget watchdogs were not briefed on subsequent steps in the process, including sub-committee amendments, he said.

“The resolutions or reports from those meetings weren’t even shared with civil groups,” he said. “We had to rely on a few House members who were open to engaging with civil society.”

Nueva Ecija Rep. Mikaela Angela B. Suansing, who heads the House appropriations panel, did not immediately reply to a Viber message seeking comment.

“If Congress truly wants to restore public trust, it must take citizen participation seriously. Transparency alone is not enough,” Mr. Montesa said.

He urged lawmakers to open the bicameral conference committee meetings on the spending bill to the public, saying the traditionally closed-door process has kept people in the dark about last-minute changes to the national budget.

“There is no reason to hide the bicameral meetings of the budget process from the people,” he said.

The Senate passed a resolution in August to open joint congressional budget talks to the public, but the House has yet to adopt a counterpart measure.

House Deputy Speaker and Antipolo Rep. Ronaldo V. Puno said the chamber has committed to opening bicameral budget talks to the public, but noted that formal approval may no longer be necessary as the move could be implemented by “operation of existing procedures.”

“The House leadership is already committed to opening the bicameral meetings,” he told BusinessWorld in an interview in Filipino. “So, I’m not sure that resolution is even necessary, since that’s already the declared intent of the leadership.”

He said the House Appropriations Committee can declare the joint congressional talks open to the public without needing plenary approval. “It doesn’t need to go to the full House.”

“But if there’s any doubt about whether the bicameral meetings will be open to the media and the public, that can be resolved once we return,” he added, noting that congressmen are currently focused on passing the budget on final reading before addressing the issue.

Mr. Puno said if the bicameral meeting is open, then there would be no more “project smuggling.”

“Transparency becomes the best antidote to illegal activity,” he said.

In addition to opening joint congressional budget talks, lawmakers should consider establishing an open budget transparency server that enables the public to track individual proposals in real time — making it easier to scrutinize who proposes what and when, Mr. Montesa said.

Right-of-way issues still hamper ODA-assisted projects in Philippines

Construction of the Metro Manila Subway Project-Tandang Sora station continues along Mindanao Avenue in Quezon City, Jan. 12. — PHILIPPINE STAR/MIGUEL DE GUZMAN

By Aubrey Rose A. Inosante, Reporter

RIGHT-OF-WAY (RoW) bottlenecks are stalling the rollout of official development assistance (ODA)-funded infrastructure projects, Asian Development Bank (ADB) Philippine Country Director Andrew Jeffries said.

“The problems that are ongoing — right of way, land acquisition and the like, are problems faced globally, that’s not a unique problem in the Philippines,” Mr. Jeffries told BusinessWorld on the sidelines of an event on Oct. 6.

He cited densely populated areas such as the Clark region through Metro Manila to Laguna, where the ADB-funded Malolos-Clark Railway, part of the North-South Commuter Railway (NSCR), is located.

“The government in particular is very adamant that progress be made quickly, and they’re anxious to show tangible results during this administration. We’re working hard with them to make sure that happens,” Mr. Jeffries said.

The acquisition of RoW from landowners for National Government infrastructure projects is mostly hampered by disputes over property valuation.

Department of Transporation (DoTr) Acting Secretary Giovanni Z. Lopez said the newly signed Accelerated and Reformed Right-of-Way Act (ARROW) as a key tool in resolving land acquisition issues. 

The agency also expanded its workforce, tightened coordination with the local government units for RoW acquisition.

“On the issue of right of way, I think we have to disabuse our mind that to consider right of way as parallel activity, it must be considered as the first priority when it comes to project implementation,” he said in a separate Philippine Development Forum panel on Oct. 6.

Republic Act No. 12289 or the ARROW law, which was recently signed by President Ferdinand R. Marcos, Jr., sought to streamline the land acquisition process to ensure the faster construction of key infrastructure.

This measure amended the existing law on government access or expropriation of land for infrastructure projects by clarifying provisions on subterranean or underground rights-of-way.

It covers roads, bridges, power and water pipelines, telecommunications facilities, airports, seaports, and irrigation projects, among others.

Mr. Lopez said it already resolved 75% of right-of-way issues for the Metro Manila Subway and expected to complete 95% by end-2025. The bulk of the project is funded by the ADB.

Nigel Paul C. Villarete, a senior adviser on public-private partnerships at the technical advisory group Libra Konsult, Inc., said the law will allow the government to streamline RoW acquisition process and speed up project implementation.

“The Accelerated and Reformed Right-of-Way Act surely helped in facilitating for faster and easier project implementation, but it retains restraints called for by the upholding of private rights,” he told BusinessWorld in a Viber message over the weekend.

Mr. Villarete said many land owners will resist but national interests should be upheld over private ones.

“Until we can amend our existing RoW law, our ODA will always be hampered by that,” Mr. Villarete said.

In the 2024 ODA Portfolio Review Report, the Department of Economy, Planning, and Development (DEPDev) also flagged the right of way acquisition issues along with procurement delays project design misalignment as among the ongoing challenges faced by implementing agencies.

The ADB was the second-biggest development partner of the Philippines, with $11.05 billion worth of 59 loans and grants, behind Japan at $13.32 billion.

ADB PROJECTS
In the same interview, Mr. Jeffries said the ADB is working on extending more support in Mindanao as it is funding connectivity infrastructure projects such as North-South Commuter Railway, Bataan-Cavite Interlink Bridge, and Laguna Bay transport.

“Going forward, we have further financing for some of these same large projects, but we are working on more support in Mindanao. We have projects in the design stage for more connectivity in Mindanao,” he said.

The ADB is also looking at getting the board’s approval for support for the insurance sector and improving the business environment with technology.

“We have a support program for the insurance industry, which is much lower penetration in the Philippines compared to a lot of ASEAN (Association of Southeast Asian Nations) neighbors, and there’s a lot of elements to that,” the ADB official said.

“Insurance companies, you know, people pay them premiums to insure health or other life or other kinds of risks. Insurance companies need to invest that money, and in a lot of countries it’s a source of funding for infrastructure,” he added.

ADB approval for the P400-million Insurance Reform Program Subprogram 1 project is still pending. The Insurance Commission is the implementing agency.

Manila FAME taps into nature-inspired design

THE MANILA FAME trade show will be back this year for its 73rd edition, featuring all things home, fashion, and lifestyle inspired by the roots of Filipino design — nature itself.

Organized by the Department of Trade and Industry (DTI) through the Center for International Trade Expositions and Mission (CITEM), the three-day fair will be held from Oct. 16 to 18 at the World Trade Center in Pasay City.

“As part of the government’s plans to support the creative industries, Manila FAME is one way we are empowering our MSMEs (micro, small, and medium enterprises),” DTI Secretary Cristina Aldeguer-Roque said at the press preview on Oct. 8 in Intramuros, Manila.

“We will be equipping our artisans and creative entrepreneurs with essential mentorship, design innovation, and access to international markets,” she added.

CITEM Executive Director Leah Pulido Ocampo said that, with the theme “Objects of Nature,” this year’s Manila FAME will “celebrate everything that makes Filipino artistry sought after all over the world.”

“The word ‘nature’ refers to our physical world, and it can also mean the qualities that are basic or inherent to a person or an object,” she explained.

THE DIFFERENT PAVILIONS
Manila FAME this year takes its inspiration from the Philippines’ diverse flora and fauna, landscapes, and bodies of water.

“In the process, we unveil the unique selling propositions of our products that have made the Philippines a must-visit sourcing destination for design,” Ms. Pulido Ocampo said.

The Artisans Village, Manila FAME’s regional spotlight, will feature signature materials from various provinces: natural fibers from Bohol; inabel from Ilocos Sur; woodwork and fossilized flowers from Quirino; and wood, stone, clay, and rattan from Tarlac.

Products showcased at the preview included stools and vases made of natural stones from Oricon Corp., fossilized flowers from Maddela Flowers and Crafts, placemats and table runners with nature-inspired patterns from Tubigon Loomweavers, and bamboo placemats from ADDS Bambutek Handi Crafts.

The program that day was led by global trend ambassador Patti Carpenter and product development specialist Rachelle Dagñalan, who had made factory visits to help with conceptualization and development of various products.

The Design Commune, which culminates the product development program for Manila FAME, will be presented in two pavilions for this edition.

Veteran designers Tony Gonzales and Milo Naval spearheaded “Elements of Nature” and “Home at FAME,” respectively, showcasing prototypes developed with 20 local exhibitors from the lamps and lighting, furniture, home decor, and holiday and seasonal decor categories.

Mr. Gonzales told BusinessWorld that they specifically took inspiration from earth, wind, and water. “Since most of our materials are natural, we are not highly industrialized. It’s a good mix, to be inspired by colors, lights, and sounds we see in our environment,” he said.

At the preview, aside from their own designs, the two displayed a small array of products that emerged from the commune: poppy-inspired table and floor lamps from Camila Faye; anahaw leaf rugs from Weavemanila; an accent table with metal leaves as legs, and chairs with wave details from Jed Yabut; a fruit tray featuring ocean waves from Natures Legacy; lamps inspired by a giant bird’s nest from Dela Cruz House of Piña, and a metal twig tabletop with perched birds and candle votives from Artifeks.

GROWING THE INDUSTRY
“Philippine Components” will highlight local manufacturers’ expertise in crafting bespoke elements for architectural and interior applications. Also curated by Mr. Gonzales, these include furniture company Yrezabal & Co.’s claddings made of laminated rattan.

The section held its maiden showcase last year, and is now focusing on showcasing fundamentals such as coverings, parts, and fittings. There will be 15 companies presenting their prototypes here this year.

“This is just a small number. The dream is to invite more designers. If we have more designers, especially younger ones, we can help the industry grow,” said Mr. Gonzales.

Visitors will also get to learn from design and business experts and thought leaders at FAME Talks. These forums will tackle timely topics, like “Innovative, Versatile, and Sustainable Approaches to Designing Products for the Home, Fashion, and Lifestyle Sector” and “Global Design Trends for Fashion Accessories.”

CREATELab, an on-site design clinic, will have professionals offering branding and marketing guidance to participating exhibitors. It is a joint project by CREATEPhilippines, a content and community platform for the Philippine creative industries, and the Communication Design Association of the Philippines.

Ms. Pulido Ocampo said that the trade show is taking into account “the current international trends, all of which point to nature as a dominating key element for 2025 and 2026,” be it through the use of recycled and upcycled materials or bolder, more playful aesthetics.

“All these handcrafted items made from natural and indigenous materials are inspired by our rich cultural diversity and heritage,” she said. “They easily show the best of Philippine design.” — Brontë H. Lacsamana

DoE seeks to allow generators to build transmission infra

STOCK PHOTO | Image by Heri Susilo from Unsplash

THE Department of Energy (DoE) is proposing a policy that would allow power generation companies to finance and build transmission infrastructure to help ensure the timely completion and delivery of power projects.

While generation companies may construct their own dedicated point-to-point (P2P) connection facilities, it may also be necessary to allow them to build “associated transmission projects” to directly inject capacity into the grid, the DoE said in a draft department circular.

Under existing rules, generation companies are limited to building P2P connection lines that link their plants directly to the substations. They are not allowed to develop or finance transmission facilities that serve the broader grid — a restriction the DoE now seeks to relax through the proposed circular.

The proposed associated transmission projects include new or expanded transmission lines, substations, or other facilities beyond a generation company’s dedicated P2P connection, according to the draft circular.

“Even with a generation company constructing its own dedicated P2P connection facility, the surrounding transmission grid may still have inadequate capacity or technical constraints [that prevent] the effective and full dispatch of the new generation, rendering the connection futile and thereby delaying the commercial operation and delivery of the committed power project,” the DoE noted.

The department said these “systemic constraints” need to be addressed to effectively integrate new generation projects, especially those critical for the energy transition and energy security.

It also pointed out that delays in carrying out the Transmission Development Plan and the “inadequacy” of the transmission system are the major reasons many committed power projects, particularly renewable energy projects, do not come online as scheduled.

“Delays in the installation and completion of facilities for the transmission system hinder the alignment of generation and grid development programs, constrain the entry of new capacities, and undermine investor confidence, thereby affecting the reliability, adequacy, affordability, and security of the country’s energy supply,” the DoE said.

Under the proposed policy, generation companies would be allowed to finance, construct, and install lines, substations, equipment, and other facilities as part of the associated transmission project.

Power generators would be entitled to recover the actual costs incurred in implementing the project.

The companies would have to enter into an agreement with the transmission network provider to oversee the construction, financing, and turnover of the associated transmission project.

The draft department circular is open for comments and suggestions until Oct. 15. — Sheldeen Joy Talavera

Co-ops say BIR red tape hindering their ability to tap RA 9520 tax breaks

THE Philippine Chamber of Cooperatives, Inc. (Co-op Chamber) said Bureau of Internal Revenue (BIR) rules are hindering them from accessing tax exemptions.

In particular, the group is asking the government to remove the requirement that individual co-op member present a tax identification number (TIN) to secure a certificate of tax exemption.

“Since 2010, we have been complying with it. But a lot of cooperatives nationwide cannot comply. That is why if you look at our data, only a few have complied,” Noel D. Raboy, chairperson of the Co-op Chamber, told reporters.

“And there are cooperatives now that have (been penalized by) the BIR. Some of them are negotiating compliance. And this is our problem because there are a lot of reports that they just want to settle (the penalties),” he added.

He said that the tax exemption is a benefit granted to cooperatives under the Republic Act (RA) No. 9520.

“Under the law, wala kaming babayaran (we pay no tax) on the interest of our deposits, our share capital, and also our final tax,” he said.

“Kaya lang may mga requirements na binigay ng BIR ay (The requirements set by the BIR are) outside the requirements of the law. They said that to get our tax exemption, we need to submit yearly the TIN of the members,” he added.

He said smaller cooperatives can comply with this, but those with about 100,000 members find it hard to comply.

“We want to get rid of it so we can grow and we can really avail ourselves of the exemptions,” he added.

He said that the penalties vary by cooperative, with one cooperative assessed around P300 million in penalties.

According to the group, the TIN requirement issue is being addressed in Senate Bill No. 1431, the proposed amendment to the Cooperative Code.

“The Co-op Chamber, as a member of the technical working group in both the House of Representatives and the Senate, is just awaiting the schedule of the Committee Meeting in the House of Representatives to finalize its version of the proposed revisions,” it added. — Justine Irish D. Tabile

Into Ativ

The Toyota Ativ HEV CVT is priced at P1.198 million. — PHOTO BY KAP MACEDA AGUILA

Toyota lowers the price of admission to hybrid

THE TALE OF TOYOTA’s take on — and push to — carbon neutrality is well-documented. Toyota Motor Corp. (TMC) Chairman Akio Toyoda had long elucidated that there is no single, correct way (meaning one powertrain) to achieve this. The realistic formula is predicated on espousing a “multi-pathway” toward a zero carbon society. The “enemy,” as it were, postulated by a chorus of Toyota Motor Philippines (TMP) executives, is not one powertrain type but carbon. Thus, any step to mitigate the production of this emission is a step in the right direction.

Today, TMP formally unveils the Toyota Ativ (pronounced “ey-tiv”) which enters the subcompact sedan category. The company positions it as a complement to its ubiquitous, popular model, the Vios — a proven nameplate regardless of its role: workhorse, fleet mover, TNVS (Transportation Network Vehicle Service), or family car.

The Ativ, manufactured in Thailand, is still prefixed by the “Vios” moniker but is distinguished by its more upmarket qualities. To be clear, this is not the replacement to the Vios but a veritable expansion of choices in the segment.

Chief among the plethora of differences is the availability, for the first time in this model, of a hybrid powertrain — present in the range-topping Ativ 1.5 HEV (hybrid electric vehicle) CVT variant.

“The all-new Toyota Ativ is another statement of Toyota’s continued mission to bring electrified mobility within reach of more Filipinos,” declared TMP First Vice-President for Vehicle Sales Operations Elijah Sue Marcial in a release. “We know choosing your first car, and an electrified model at that, can be a bold decision, so the Ativ makes it simple and easy by delivering modern HEV features, while providing peace of mind with reliability, safety, ease of ownership, and joy of use,” she added.

Meanwhile, in an exclusive “Velocity” interview, TMP Vice-President for Marketing Services Elvin G. Luciano described the Ativ as “the next important model in (the company’s) lineup.” He averred, “There’s anticipation for the car, with most of you having seen this car being launched in other markets already. We see this as a model further strengthening our electrified lineup. Maybe the best description that we can have for this model right now is that it’s currently the most affordable electrified car in TMP’s lineup.”

CASTING A WIDER HEV NET
Previously, that honor belonged to the Corolla Cross 1.8 G HEV CVT, which retails for P1.514 million. The Ativ now further lowers TMP’s electrified price bar, with the Ativ 1.5 HEV CVT coming in at P1.198 million. This makes the Ativ even more important for TMP in the grand scheme of electrified mobility. Stressed Mr. Luciano, “Toyota has been pushing for electrification in the country for quite a while now, and we recognize that because of the increasing awareness and education of our market regarding electrified cars and what they can do — both for the users and the environment — there are customers who are looking for (them).”

The traditional idea of a first car is now starting to be recast. People are no longer averse to the idea of an electrified vehicle — even for first-time auto buyers, according to the executive. The Ativ deploys a net that’s wider than ever — lowering the price of admission into the HEV format.

To reiterate, the Ativ and Vios will coexist in the TMP lineup. The Vios, of course, was and remains to be a key model in the portfolio as it famously became the company’s entry in the CARS (Comprehensive Automotive Resurgence Strategy) program launched in 2015 under the administration of the late President Benigno S. C. Aquino III. Toyota enrolled the Vios, while the only other entrant, Mitsubishi Motors Philippines Corp., put forth the Mirage. The two models are locally manufactured (with a production target of 200,000 units each) in exchange for tax perks and fiscal support. TMP has already reached milestone, and is now awaiting the implementation of the current administration’s equivalent program, RACE (Revitalizing the Automotive Industry for Competitiveness Enhancement).

In a relatively recent BusinessWorld article by Justine Irish D. Tabile, Department of Trade and Industry (DTI) Secretary Ma. Cristina A. Roque was quoted as saying, “We want more companies to avail… It is open to everyone. And the bottom line is, if they can (manufacture) 100,000 units in three years, then they will be able to avail of the incentives.” The government wants to “fast-track the release and the implementation of the joint administrative order that will govern the strategy,” Ms. Tabile wrote. But other agencies are involved as well so there’s quite a bit of coordination and clearance to be made. In the case of Toyota, it has expressed interest in enrolling the all-new Tamaraw — which it makes in its Santa Rosa, Laguna facility — into the program.

TMP is clearing the demarcation lines between the Vios and Ativ as it quietly pulled out the 1.5 G CVT and 1.5 GT M/T variants. The remaining four grades of the Vios are priced from P738,000 in the 1.3 J M/T up to P908,000 for the 1.3 XLE CVT, removing overlapping price points. The Ativ 1.3 M/T, for reference, is priced at P916,000.

ATIV-ITIES
The Ativ 1.5 HEV CVT is powered by a 2NR-VEX inline four-cylinder HEV mill with lithium-ion-battery-powered electric motor. Total system output is 111hp and 121Nm. Pure internal combustion engine options are available, too — powered by either a 1.5-liter mill (106ps, 138Nm) or a 1.3-liter engine (98ps, 122Nm).

The Ativ measures 4,425mm in length, 1,740mm in width, and 1,480mm in height. Compared to the Vios, it is 5-mm longer, 10-mm wider, and 5-mm taller.

True to its more upmarket intentions, the fastback-shaped Ativ receives a host of commensurate touches outside and inside. It boasts LED headlamps and rear sequential turn signals (in the HEV variant). In the cabin, the HEV grade wraps its seats in leather; fabric seats go to the G CVT, E CVT, and E M/T variants. Its infotainment system is predicated on a seven-inch digital display for the non-HEV grades, while the HEV variant receives a 10.1-inch Display Audio system with wireless Apple CarPlay and Android Auto. I did find myself looking for a center armrest in the back seat though, and the rather elevated seating in front compared to the typical sedan might take a little getting used to (the driver’s seat may be adjusted for height, of course).

ADAS
ADAS (Advanced Driver Assistance System) features tucked in the Toyota Safety Sense (TSS) suite are in the Ativ hybrid — upping protection and convenience through a pre-collision system, automatic high beam, lane tracing assist, lane departure alert, adaptive cruise control, and others. Across the line, Ativ models get multiple air bags, ABS with brake assist, vehicle stability control, blind spot monitor, and Isofix child restraint systems. The HEV also receives electronic parking brake with brake hold, a wireless charger, and a panoramic view monitor (also available on the G CVT grade). Push start and smart entry is available for all variants.

QDR
“Your first car needs to be simple and worry-free,” Mr. Luciano averred. “So you don’t have to be concerned about the reliability, the quality of the car… (The Ativ) is a combination of what Toyota has to offer in one practical and reachable package (featuring) our signature QDR — quality, durability, and reliability… Of course, what we want to highlight is that when you go for the Ativ as your first electrified car, your first entry into that space, you are assured that you are being assisted.”

Mr. Luciano maintained that Toyota has the widest network of dealerships and service centers across the country. “You can rest assured that you can get genuine customer support and quality after-sales service.”

Once again, the Ativ is TMP’s newest poster child for electrified mobility. “We at Toyota have always believed that we can feel or we can experience the good impact of electrification through massive adoption. In order to do that, we need to offer the widest range of electrified options.”

Concluded the executive: “Through affordable options like the Ativ, it’s now much easier for more Filipinos, for more of us, to be part of this movement to collectively reduce our carbon emissions and make a positive impact on the planet.”

The other Ativ variants are priced as follows: Ativ 1.5 G CVT (P1.069 million) and Ativ 1.3 E CVT (P980,000). There is a price premium on special colors.

Wearable, handwoven pieces of art

THE Grand Dame of Philippine fashion Patis Tesoro (center). — BRONTË H. LACSAMANA

Patis Tesoro unveils new Filipiniana collection

PATIS TESORO, known as the Grand Dame of Philippine fashion, is orchestrating a vision of what Filipiniana is today in a benefit fashion show presented by the Zonta Club Alabang.

At a preview on Oct. 8 at the Yuchengco Museum in Makati, she offered a glimpse of what is in store, showing eight of the 100 pieces, showcasing piña fabric, natural dyes, and elegant tropical designs, which make up the collection called “Filipiniana is Forever.”

There are colorful dasters or house dresses, a preferred everyday garment of the fashion icon, but elevated via handwoven details, patchwork, and hand embroidery. Meanwhile, the Maria Clara-esque gowns, a more formal version of the baro’t saya, will clearly be the highlights of the collection.

The kimona jackets with intricate patterns and vibrant colors catch the eye. For men, hand-painted barongs add a splash of personality to what is usually plain beige formal wear.

Whether the prints on the fabrics are floral or geometrical, the embroidered details on each piece give them texture — even the headwear range from thick and dazzling to light and diaphanous.

For Ms. Tesoro, the phrase “Filipiniana is forever” is one she will stand by with a passion, it also being the title of a coffee table book and documentary about her which were released earlier this year.

“It is part of our culture to wear embellished clothes. Western clothes are, give or take, plain, because that is their culture. Our culture is full of burloloy (ornaments), even our houses. We cannot get away from that. We also have to continue it because it basically gives a lot of work to our people,” she said at the preview.

This collection is the first that she is presenting in a fashion show in over two years.

It’s become difficult to build a full collection, with many pieces getting sold out as soon as she finishes making them.

“It’s my first fashion show in years, so it’s a lot of stress. I thought I would not anymore have this stress at my age — I’m in my 70s now — but Zonta persuaded me to do this,” Ms. Tesoro said.

Most importantly, the show is set to raise funds for the projects of the Zonta Club of Alabang. These include prenatal screening for hepatitis B, an equine therapy program for young, underprivileged cancer patients, ballet outreach for indigenous children, and educational programs for the early detection of breast cancer.

Aside from proceeds from the ticket sales to the benefit fashion show going to these initiatives, Ms. Tesoro herself also represents the club’s advocacy of women empowerment, according to its president, Kathleen Liechtenstein.

“Women empowerment informs all our projects. Patis is the very embodiment of this,” she said at the preview. “In all her endeavors, she has contributed to empowering women from artisanal communities. Her team, for example, is made up of 90% women.”

For Ms. Tesoro, “Filipiniana is Forever” is a summation of her life’s work. “I wanted to emphasize the beauty of handmade things. About 95% of the collection is handmade. Fabrics are handwoven, hand painted, hand embroidered, hand beaded,” she said.

She was also inspired by the idea of a woman’s nape subtly peeking from behind the traditional baro or lightweight embroidered blouse.

“When you are Filipino, you are attractive when you wear the baro’t saya. Characteristically, it is folded at the back to show the nape. It’s very sensual. It is also an evolving, wearable piece of art,” she explained.

Her process consists of “piling on layers of details like notes of a crescendo,” which comes together as she sees the materials.

“All Filipinos aspire to dress in a sheer handwoven piña or what resembles it. Our climate and environment necessitate this mode of dress. I wanted to show daily wear to formal wear, focusing on the craftsmanship and artistry of our people,” Ms. Tesoro said.

However, she jokingly warned the Zonta guests and the media that “no one should be buried in piña.”

“It’s just too expensive. You can show your body in piña, but then before you get buried, maghubad ka muna (take off your clothes first),” she said. “That’s my suggestion.”

“Filipiniana is Forever” will be presented on Nov. 4 at the Grand Ballroom of the Hyatt BGC in Taguig. Tickets are available via https://qlickpass.com/ and the e-mail zontaclubofalabang1@gmail.com. — Brontë H. Lacsamana

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