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SM Prime lists P25-B fixed-rate retail bonds on PDEx

SM PRIME Holdings Corp. (SM Prime) has listed its P25-billion fixed-rate retail bonds on the Philippine Dealing & Exchange Corp. (PDEx).

This issuance is the second tranche of SM Prime’s P100-billion shelf registration of fixed-rate bonds, which was approved by the Securities and Exchange Commission (SEC), the company said in a regulatory filing on Wednesday.

The listed property developer said the issuance consists of Series Y, Z, and AA bonds, maturing in 2028, 2031, and 2035, respectively.

Under its application submitted to the SEC last year, SM Prime sought approval to raise up to P25 billion, with an oversubscription option of up to P5 billion.

The offering includes three-year Series Y bonds due in 2028, six-year Series Z bonds due in 2031, and 10-year Series AA bonds due in 2035. 

On Monday, the company announced plans to allocate P100 billion in capital expenditures (capex) this year, with the majority directed toward residential projects and integrated property developments.

Capex for 2024 will primarily be allocated to malls, residential properties, and integrated developments, SM Prime said.

For 2024, Sy-led SM Prime recorded a 14% increase in consolidated net income, reaching a record-high P45.6 billion, up from P40 billion in 2023. The growth was driven by strong holiday spending, the opening of two new malls, and higher real estate sales.

Consolidated revenue also rose by 10%, reaching an all-time high of P140.4 billion in 2024, compared to P128.1 billion in 2023, due to increased rental income, real estate sales, and revenues from services and experiential offerings. 

At the local bourse on Wednesday, shares in the company gained 90 centavos, or 3.83%, to close at P24.40 apiece. — Ashley Erika O. Jose

Now Now Canteen: A fermentation experiment that aims to start a culinary movement in the metro

NOW NOW CANTEEN’S FERMENTATION SHELF — ZSARLENE B. CHUA

By Zsarlene B. Chua

LOCATED in a nondescript part of Mandaluyong, at the corner of Calbayog and L. Esteban streets, a fermentation lab-cum-contemporary canteen is trying to “spearhead a fermentation movement in Metro Manila” by offering tried-and-true classics elevated through fermentation.

Now Now Canteen, founded by husband-and-wife team Bryan and Maxine Kong, started as an idea to develop a fermented ice cream.

“We ate at Noma for our honeymoon and were so blown away with how they prepared [their dishes] and that they’re heavily focused on fermentation,” Mr. Kong told BusinessWorld at the sidelines of a beauty event on Feb. 21. Once back in the Philippines, Mr. Kong was so inspired that he decided to grow his own koji (a fermentation starter that uses rice or soybean) and create a fermented sweet potato ice cream for Kurimu, his Japanese-style premium handcrafted ice cream venture.

This experiment didn’t exactly work out, so he decided to put koji in dishes like tinola (Filipino chicken soup with ginger) and sinigang (Filipino sour soup that uses a variety of possible souring agents like tamarind or guava) with better results.

Koji (Aspergillus oryzae) is a fungus used in East Asian fermentation, which is the key to making soy sauce, miso, and sake. Used in East Asia for thousands of years, it has been a cornerstone of traditional fermentation practices as it breaks down starches and proteins to enhance umami (savoriness) and deepen flavors.

Mr. Kong and his wife were so enamored by koji and the potential of fermentation in bringing out the umami of dishes that it grew into what is now Now Now Canteen.

Opened in September 2024, Now Now has gained a cult following for its unique menu, which incorporates fermented ingredients. The restaurant’s nondescript exterior matches its industrial, lab-like interior, complete with metal décor, a steel shelf displaying creations, and a temperature-controlled fermentation lab.

“You won’t find a restaurant like this in our area,” Mr. Kong said. But beyond their dishes, part of their ethos, he said, is to “democratize fine dining culinary techniques and make it accessible to the neighborhood.”

Now Now offers two service times: brunch and dinner and while reservations are encouraged, walk-ins are welcome. The entire menu is also a la carte and items are reasonably priced beginning at P350.

While this writer wasn’t able to experience too much of the menu during the event, a few of the standouts were the Tortang Talong Okonomiyaki, a spin on the popular eggplant omelet and includes bacon, crispy fried noodles, crispy nori sheets, all dressed in wild garlic mayo. We were also served a sort of fermented red sauce, reminiscent of ketchup which imparted a tang that cuts through the savoriness, so you don’t get tired of the flavors. It was an all-in-all full-on umami bomb, creating a perfectly balanced bite — rich, textured, and satisfying.

Then there’s the Shakshouka which uses fermented eggplants and onions, labneh (Middle Eastern cheese created from strained yogurt), poached eggs, chicken skin, and served with Polish flatbread. The dish was an instant hit at our table due to the rich fermented eggplant balancing the creamy labneh and runny eggs. It would benefit from more than a hint of spice to further wake up the flavors, but it was a very good dish.

The menu is developed by executive chef Mateusz Łuczaj and executive pastry chef Lisane Łuczaj who fly in from Poland to work with the Now Now team to develop new dishes. Mr. Kong said that the plan is to create a revolving menu with the target of three menu changes a year.

FERMENTATION, EXPERIMENTATION, AND SUSTAINABILITY
Beyond accessibility and spreading the gospel of fermentation in the metro, Now Now’s mission is also to champion sustainability and local produce. Mr. Kong said that currently, the restaurant is “97% waste-free” as almost all of the trimmings from the produce are fermented as the “kitchen is really intentional with our food waste.”

He added that they are currently in talks with local farmers about getting their trimmings and waste products so they can create something new out of it. “We’ll make a sauce out of [their] waste,” he said.

With fermentation being a hobby of his, Mr. Kong is also trying out different ferments using local produce like a batuan cheong. Batuan is a sour fruit, a relative to mangosteen, that is often used as a souring agent for the Visayan sour soup, kansi, and sinigang. Meanwhile, cheong is the Korean process of making fruit syrups by using a 1:1 ratio of fruit and sugar. Together, batuan cheong is a syrup whose aroma reminds us of a sweet-sour dessert wine. In a few more weeks (or even months), this batuan cheong will eventually end up in a ceviche, an application Mr. Kong endorses as the syrup imparts complex sweet-sour notes that go well with fish.

Now Now Canteen, with its bold approach to fermentation and sustainability, is a culinary experiment in progress. A testament to the ever-evolving food culture in the country. And with The Michelin Guide arriving in the Philippines, Mr. Kong said that this presents an opportunity for the country’s culinary industry to take the spotlight on the world stage.

“[Due to] the Filipino diaspora, Filipinos are everywhere. So we actually have the power to influence the world culinary scene,” he said.

Now Now Canteen is located at 497-C Rosa Bldg., Calbayog corner Esteban St., Mandaluyong City.

 

Zsarlene Chua is a former BusinessWorld reporter who is now a fledgling PR girl. She’s all about skincare, makeup, and video games — and occasionally food. None of the products she reviews are the writer’s clients. Contact the author at zsarlene.chua@gmail.com.

AboitizPower plans P30-B bond offer in Q2

ABOITIZPOWER.COM

ABOITIZ Power Corp. (AboitizPower) plans to issue up to P30 billion in fixed-rate retail bonds by the second quarter, as part of its P100-billion shelf registration program.

In a stock exchange disclosure on Wednesday, AboitizPower said its board of directors had approved the filing of a registration under the Securities and Exchange Commission’s shelf registration program for peso-denominated fixed-rate retail bonds.

The proposed issuance consists of up to P20 billion worth of retail bonds, with an oversubscription option of up to P10 billion. 

“Subject to market conditions, the company intends to offer the first tranche of the retail bonds to the general public during the second quarter of 2025 and to list the first tranche with the Philippine Dealing and Exchange Corporation (PDEx) by the third quarter of 2025,” the company said.

AboitizPower said the proceeds from the first tranche of the retail bonds will be used to refinance corporate debts and/or for other general corporate purposes.

The board delegated to the company’s management the authority to determine the final issue amount, interest rate, offer price, tenors, and other terms and conditions of the retail bonds, including the appointment of parties involved in the offering.

In 2022, the company raised P10 billion in fixed-rate retail bonds, including oversubscription, from the third tranche of its P30-billion debt securities program.

Proceeds from that bond offer were intended for debt refinancing and funding renewable energy projects.

At present, AboitizPower holds a portfolio of 4,482.12 megawatts across 48 power generation facilities nationwide.

At the local bourse on Wednesday, shares in the company declined by 0.12% to close at P40.85 each. — Sheldeen Joy Talavera

Coffee festival expands to include weavers and crafters

THE BIYAYA (Filipino for “blessing” or “gift”) Sustainable Living Festival is branching out from the Manila Coffee Festival to include more local products, especially woven textiles and other crafts. The festival will be held from March 14 to 16 at Parqal in Aseana City, Parañaque.

In a press conference at the Kapetolyo by SGD Coffee in Ermita, Manila, Richard Watanabe, founder of the Coffee Heritage Project and co-founder of the Biyaya Sustainable Living Festival, discussed some of the things people will experience at the festival. These will include craft beer made with products from the Cordilleras (including coffee and cacao), a chalk mural competition, agricultural workshops, free coffee from The Coffee Village, Baybayin workshops (an ancient writing system from pre-Hispanic Philippines), and woven crafts, but also weaving demonstrations.

“When we protect, nurture, and grow the heritage craft and practices of Filipino communities, we ensure their sustainable livelihood,” he said in a statement. “In the process, these communities can continue to live on the land of their ancestors, safeguarding not just their culture but also the environment. Thriving, sustainable communities are the foundation for environmental protection.

Biyaya 2025 Poster

“Biyaya isn’t just about coffee; it’s about uplifting the entire ecosystem of heritage industries that allow these communities to thrive,” he added.

His partner in this project, fashion designer and sustainability advocate Tati Fortuna, said in a speech: “We are bringing in — today, can be more — 75 farmers and weavers.” The festival will have more than 200 exhibitors including coffee, cacao, and coconut farmers, as well as craftsmen, weavers, and local fashion designers.

“We are not going to take any part in the sales that they make,” she pointed out. Last year’s Manila Coffee Festival brought in 12,000 visitors and P45 million in earnings for its exhibitors.

“Our objective for Biyaya, is to put the farmers, the weavers, and crafters, and communities front and center,” she said. “We want to honor them in any way that we can, and we are very thankful,” she said.

“Biyaya supports a long-term value chain that ensures Filipino farmers and artisans are empowered at every stage. With transparency checks in place, Biyaya guarantees that the processes behind the products are ethical, fair, and environmentally conscious,” said a statement from the festival. 

Ms. Fortuna said, “Biyaya is not just a once-a-year event. We want to have a deeper connection and a deeper relationship to the communities.” Long-term plans involve weaving and craft schools, and enhanced training for the same causes.

The Biyaya Festival will run from March 14 to 16 at Parqal in Aseana City, from 4 p.m. to 10 p.m. Check the Manila Coffee Festival Facebook page for ticket sales and inquiries. — Joseph L. Garcia

Megaworld says 2024 earnings hit P21.67B, up 11.7%

THE BELLAGIO PALAWAN

LISTED PROPERTY developer Megaworld Corp. saw its attributable net income for 2024 rise by 11.7% to P21.67 billion, driven by revenue growth from the company’s residential business.

“Moving forward, we will set our eyes on more innovations as well as on how we can collaborate to further innovate, but still keeping our commitment to care for our people and our communities,” Megaworld President Lourdes Gutierrez-Alfonso said in a stock exchange filing on Wednesday.

Megaworld attributed its 2024 results to the continued expansion of its core businesses, particularly in real estate, leasing, and hospitality.

The company’s total revenue climbed 17.2% to P81.69 billion from P69.73 billion in 2023, mainly lifted by real estate sales.

Broken down, real estate sales logged a 19.4% growth to P50.99 billion from P42.72 billion in 2023, accounting for most of the company’s revenue for the period.

Rental revenue rose by 10.3% to P19.68 billion from P17.85 billion in 2023, while revenues from hotel operations increased by 34.1% to P5.11 billion from P3.81 billion in 2023.

“In 2024, aside from delivering record results as we celebrated our 35 years in the Philippine real estate industry, we also pushed the boundaries of innovation across our townships and bannered new developments that truly help contribute to nation-building,” Ms. Gutierrez-Alfonso said.

According to Megaworld, real estate sales remained the company’s primary growth driver, mainly due to rising demand for residential properties in both Metro Manila and key provincial locations.

In 2024 alone, Megaworld launched four expansive developments across the country, adding approximately 400 hectares to its land holdings.

These additions brought Megaworld’s township portfolio to 35 and expanded its total land bank to nearly 7,000 hectares.

The property developer’s leasing portfolio also gained momentum in 2024 as it attracted more high-profile tenants. Megaworld noted that its lifestyle malls welcomed about 50,000 square meters of new tenant store openings.

Furthermore, Megaworld’s hotels and resorts contributed to the company’s growth through the expansion of MICE (meetings, incentives, conventions, and exhibitions) facilities.

At the local bourse, shares in the company closed 2.29% higher at P1.79 apiece. — Ashley Erika O. Jose

Dining In/Out (02/27/25)


Pernod Ricard Philippines introduces digital labels

PERNOD RICARD Philippines is rolling out its digital label initiative across its entire brand portfolio. The beverages giant is integrating QR code-enabled digital labels on all brands, such as Beefeater Gin, Jameson Irish Whiskey, Ballantine’s Scotch Whisky, Chivas Regal, and Absolut Vodka. These QR codes, printed on the back labels, will lead consumers to dedicated webpages offering comprehensive product information, health guidelines, responsible drinking advice, and more. “With our digital labels, we’re making this possible by providing key details at their fingertips,” said Hadyu Ikrami, head of legal, public affairs, communication and S&R, Pernod Ricard Philippines. “This initiative supports the Philippines’ digitalization efforts while reinforcing our commitment to responsible drinking. By providing consumers with easy access to essential information, we empower them to make informed choices and enjoy convivial moments responsibly.” Pernod Ricard Philippines has long championed responsible drinking campaigns, such as the widely recognized “Drink More Water” campaign, which encourages consumers to stay hydrated and pace themselves when consuming alcohol. The introduction of digital labels furthers this mission, reinforcing the company’s dedication to reducing harmful drinking. Customers can expect detailed information about ingredients and alcohol content and guidelines on alcohol consumption aligned with local health recommendations. The digital label initiative is now fully available across all Pernod Ricard brands in the Philippines.


Flare and Fare Nights at Lanson Place Mall of Asia

THE 12th Philippine International Pyromusical Competition is captivating audiences with its dazzling displays of light and sound on select Saturdays until March 15. Lanson Place Mall of Asia invites guests to witness the pyrotechnic showdown from its exclusive vantage points. Guests can enjoy prime viewing locations at Cyan Modern Kitchen and the EDGE Pool Bar, both offering unparalleled views of the spectacle. At Cyan Modern Kitchen, viewers can savor a dinner buffet from 5:30 to 9:30 p.m., perfectly timed for the evening’s performance. The buffet features a wide array of dishes, along with free-flowing mocktails, cocktails, soda, and juices. Indoor seating is available for P4,000 net per person, while outdoor seating, allowing for an even more immersive experience, is priced at P4,500 net per person. The EDGE Pool Bar offers an elevated cocktail experience from 6 to 9 p.m. Guests can enjoy a curated bar snack platter complemented by beats from a live DJ under the night sky. This package is priced at P2,400 net for two persons. For those seeking to extend their experience, Lanson Place Mall of Asia offers weekend stays, starting at P14,533 net. These stays include a buffet breakfast at Cyan Modern Kitchen and afternoon high tea at Madeleine High Tea. For reservations, e-mail reservations.lpmn@lansonplace.com, or call 7777-0000.


Coffee with photo art at Solaire Resort North

AT Café Mangrove at Solaire Resort North, guests are invited to personalize each experience with a photo of their choice printed atop their beverage with a special food-grade latte art machine with each offer of a warm drink. Enjoy signature fruit-based iced teas starting at P300++, as well as the signature lattes, served both iced and hot, starting at P380++. Café Mangrove also has healthy beverage blends –nutritious herbal, fruity, and vegetarian drinks, and smoothies full of vitamins. Guests can browse the café’s breakfast menu to kickstart the day with a hearty meal available from 7 to 10:30 a.m. These include classic breakfast meals from all around the world to simple and healthy dishes like Overnight Oats and granola bowls. For those dining in the afternoon, Café Mangrove’s High Tea menu boasts a set of sweet and savory snacks available from 2:30 to 5 p.m., all accompanied by a cup of coffee or tea as well as one glass of wine for P1,888++, or champagne for an additional P500++ for the upgrade. Dinner options include Café Mangrove’s wide variety of meals and a show with the café’s entertainers serenading guests throughout the night. For inquiries, visit the Solaire Resort North website at sn.solaireresort.com, or contact 8888-8888 or via e-mail at sn.reservations@solaireresort.com.


Liquid Brunch at Fairmont Makati

KICK OFF your summer with Liquid Brunch, Fairmont Makati’s premier poolside party, happening every first Sunday of the month. Indulge in exclusive offerings from their partners, Moët & Chandon, Monkey Shoulder, Freixenet, and Citadelle Gin (debuting in March). The beverage packages start at P7,500 net, and walk-in guests can join for P600 net, which includes a glass of the signature cocktail of the month. For inquiries, contact 8555-9840 or e-mail dining.makati@fairmont.com.


KATHA Awards for Food 2025 nominations still open

NOMINATIONS opened in February for the KATHA Awards for Food 2025 by the Center for International Trade Expositions and Missions (CITEM). The KATHA Awards for Food has been part of the IFEX Philippines’ food landscape since its inception in 2015. Philippine SMEs who are IFEX Philippines Flavor Finds exhibitors for this year’s edition are qualified to join the Awards for their new products or innovations in the following categories: Baked Goods, Cakes, Desserts, and Confectionery; Beverages; Dairy Products; Food Ingredients, Condiments, and Sweeteners; Functional and Nutraceutical Food; Gourmet and Specialty Food; Meat and Poultry; Organic Food; Plant-based Alternatives; Processed Fruits, Nuts, and Vegetables; Pulses and Grains; and Seafood Products. Special citations in booth and packaging design will also be handed out during the IFEX Philippines KATHA Awarding Ceremony when all the winners will receive trophies and certifications in their respective categories. Shortlisted product contenders will be screened by a professional team of experts in food and food-related sectors. These experts will conduct food samplings, panel presentations, and interviews with product owners to assess product quality and taste, branding and packaging, function or food application, marketability, product quality and taste, as well as sustainability in terms of supply and environmental impact. Winners will be unveiled by CITEM during the IFEX Philippines 2025 Media Preview in April, and will be displayed throughout the three-day IFEX Philippines trade show slated for May 22 to 24 at the World Trade Center Metro Manila in Pasay City. Nominations or applications to the KATHA Awards for Food 2025 are accepted until Feb. 28. Register as an IFEX Philippines exhibitor at ifexconnect.com, and enroll new and innovative products with an automatic nomination through this form https://docs.google.com/forms/d/e/1FAIpQLSePW12ZW7qEVjeurACX768RB3lNe0z5WZ24gFEapD8NDe3qRA/viewform.


K-pop star is new Snickers ambassador

MARS announced that Snickers has selected SEVENTEEN’s Mingyu as the new Asia Ambassador. SEVENTEEN, with 13 members, is the first K-pop group to perform at the Philippine Arena. In a statement, the brand said, “Mingyu’s zealous personality captivates audiences worldwide, aligning perfectly with our brand values. Snickers has been a globally popular chocolate bar for many years, and we anticipate positive synergy in various ways.” Through this collaboration, Snickers aims to further connect with consumers. For updates, follow Snickers Philippines on Facebook at @SnickersPhilippines.

Alfamart targets to add 200 stores in Luzon this year

MINIMART CHAIN Alfamart plans to expand its store network by adding at least 200 more stores in Luzon this year, the SM group announced on Wednesday.

This expansion will further strengthen Alfamart’s growth, as it ended 2024 with a total of 2,400 stores nationwide, SM Investments Corp. (SMIC) said in a statement. 

“Our continued growth is anchored on the needs of the neighborhoods we serve. We remain committed to strengthening our presence in underserved areas within Luzon to provide communities with better value and easier access to essential goods,” said Alfamart Philippines Chief Operating Officer Harvey T. Ong.

As part of its expansion plans, Alfamart continues to generate more job opportunities for local communities, SMIC said. 

For instance, the company created over 2,500 new jobs in 2024 through its network expansion, including the launch of a new distribution center in Sariaya, Quezon, the company added.

Alfamart, which opened its first store in June 2014, is part of the SM group’s retail food business. It operates as a joint venture between SM and Indonesia-based retail company PT Sumber Alfaria Trijaya Tbk.

SMIC, the listed holding company of the Sy family, has core businesses in retail, banking, and property. — Ashley Erika O. Jose

McDonald’s brushes off surcharges on eggs to attract customers

FREEPIK

MCDONALD’S said on Tuesday it would not impose any surcharges when serving eggs as part of its meals and will also launch $1 McMuffins on its app, in a move to attract consumers in the United States.

“Unlike others making news recently, you definitely WON’T see McDonald’s USA issuing surcharges on eggs, which are 100% cage-free and sourced in the US,” Michael Gonda, McDonald’s chief impact officer for North America, wrote in a post on LinkedIn.

The burger giant has been aiming to attract lower-to-middle income consumers who have been shying away from splurging on dining out amid rising inflationary woes.

Americans have been grappling with higher egg prices at retailers including Walmart owing to increasing cases of bird flu, or avian influenza, which has hit egg production in chickens.

US diner chain Waffle House has added a 50-cent surcharge for every egg in a customer’s order, the company had said earlier this month.

McDonald’s posted its biggest decline in US sales during its latest earnings report, even as its global sales saw a surprise increase. — Reuters

America is turning its alliances into a protection racket

UN PHOTO/MANUEL ELÍAS

WHILE I was living in Moscow in the 1990s, the one unchallenged certainty in a time of chaos was that no business could operate for long without a Krisha, or roof, right down to the little English language bookstore my wife ran for a while. This was the Russian euphemism for a protection racket, and Ukraine and Europe are now finding out what it can mean.

A Krisha didn’t necessarily have to look or behave like a mafia boss from The Godfather. Once the publishing company I worked for as the editor of a Moscow newspaper started making money, for example, it sold a 10% stake to a Russian conglomerate that was trying to clean up its image in the West. The arrangement was civilized, except when it wasn’t, but the purpose was clear.

The second certainty of that era was that your “roof” was the one person you didn’t want to fall out with, or they’d quickly become your most dangerous enemy. That’s the risk now faced by European governments from London to Berlin, and above all Kyiv, as the US abandons its near-century-long role as benign Krisha to the old continent. If that shift was in any doubt, take a look at Monday’s votes at the United Nations General Assembly (UNGA) in New York, or French President Emmanuel Macron’s pilgrimage as supplicant to the White House the same afternoon.

At the UNGA, the US voted against its own resolution to mark the third year of the war, joining the likes of Belarus, North Korea, and Russia in a minority of eight against, to 93 in favor and 73 abstentions. It did so, because European-backed amendments restoring lost references to Ukrainian territorial integrity and Russian culpability had won the two thirds majority they needed to pass.

UNGA resolutions, however, are non-binding and therefore largely symbolic. In the UN’s Security Council, where resolutions have legal force and can set policy precedent, the original American language was adopted. Of the five permanent members, China, Russia, and the US voted in favor. France and the UK abstained, rather than wield their veto where it mattered.

Macron, meanwhile, arrived at the White House with the obvious aim of preventing any final rupture with Europe’s long-time ally and protector. He knows the continent isn’t yet ready to protect itself, let alone Ukraine, without a US backstop. So, he pulled his punches and his UN veto, trying instead to stroke Donald Trump’s vanity. The bromance approach, after all, had some success during the US President’s previous term.

But this is Trump 2.0. He intends a revolution at home and abroad, and has full control of the levers of power. As 47th President, he has no compunction in using his leverage as security provider for extortion. His proposal to take half of Ukraine’s resources in a contract that offered nothing concrete in return was a classic in the genre of Don Vito Corleone’s “I’m gonna make him an offer he can’t refuse.” A less rapacious deal is in the works, but even then it will be signed only because Ukraine is too dependent for its survival on US military aid to do otherwise.

So how should Europe respond? The temptation — as France and the UK showed on Monday — will be to avoid any final breach or confrontation. Instead, they’ll try to talk sense into Trump while appealing to his narcissism. They’ll flatter, point out that alliances are beneficial, and that trade wars rarely benefit anyone.

This is all true, and necessary. But they also need to show strength and teeth, because it’s what Trump respects. In his world, the weak are roadkill, and it’s only with other powerful Krishas, such as Russia’s President Vladimir Putin, that any true negotiating takes place. Europe is rich enough to do this — but, for now, it’s too fragmented and unprepared.

Germany’s likely new Chancellor Friedrich Merz touched on the most important point this week, which is to create a strong enough native European security umbrella — conventional and nuclear — that it no longer needs US protection. That’s a huge challenge, demanding consolidation and defense spending increases on a heroic scale. It should have been done years ago. Today, even with rapid action, it would come too late for Ukraine.

Yet there’s plenty Europe can do in the short term. The first is to remain unified and not go on beating a path one by one to the White House, in the hope of cutting special deals. That’s just red meat to Trump. Europe as a bloc has the heft and — potentially — the power to act as its own Krisha. But only by nations acting together.

Secondly, to keep pressure on Russia to stick to the terms of any ceasefire, Europe will need to reimagine sanctions policy without the US Treasury, which currently has a near monopoly on the tools and expertise needed for enforcement. Trump and his senior aides have all made clear they intend to lift US sanctions on Russia as part of any agreement, not so much to hold Putin’s feet to the fire over Ukraine as to secure economic benefits for the US.

To make what Europe would have to do next in Ukraine politically and fiscally palatable, it would also need to seize and distribute Russia’s frozen sovereign assets. The arguments against doing so are significant, but in the face of the one-sided settlement the Trump administration appears to have in mind for the Kremlin, it may be the only way to ensure Putin’s invasion doesn’t succeed in destabilizing and impoverishing Ukraine and its European backers.

Finally, Europe’s leaders should make clear an arms producers’ bonanza is on the way as the continent bulks up its defenses. US arms manufacturers can take part in that or see lucrative markets slip away, as former allies avoid American products for fear Trump would use them as leverage, dictating when they can be used and who gets maintenance or spares.

Trump has taken a wrecking ball to the 80-year-old trans-Atlantic alliance with unexpected speed and malice aforethought. To survive, America’s European allies will need to build a “roof” of their own.

BLOOMBERG OPINION

Philippine digital economy to sustain growth

PHILSTAR FILE PHOTO/PIXABAY

THE PHILIPPINE digital economy is expected to remain robust this year amid the continued growth of the e-commerce and financial technology (fintech) sectors and increased adoption of artificial intelligence (AI) technologies, analysts said.

“The Philippine digital economy is forecast to sustain robust growth in 2025, with a projected expansion of 15% to 20%. Key drivers will include e-commerce, fintech, and digital infrastructure development, such as data centers and 5G connectivity,” Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera said.

“E-commerce will continue its momentum as online retail becomes a staple for consumers, supported by the rollout of more affordable logistics solutions in rural areas. Fintech, particularly digital wallets and micro-lending platforms, will cater to the underbanked population. On the other hand, online education and remote work tools may see slower growth due to saturation in demand.”

The Philippine digital economy’s share in the country’s gross domestic product (GDP) went down to 8.4% in 2023 from 8.6% in 2022, data from the Philippine Statistics Authority showed.

In terms of gross value added, the digital sector grew by 7.7% to P2.05 trillion in 2023 from P1.9 trillion in 2022.

“As with the overall ASEAN (Association of Southeast Asian Nations) region, digital economy in the Philippines will experience steady growth this year, building on the strong momentum in past years, where internet adoption growth for the broader region was among the fastest in the world, and trends for e-commerce, online media and financial technology remain strong,” Joo-ok Lee, head of Regional Agenda, Asia-Pacific at the World Economic Forum (WEF), told BusinessWorld in an e-mail.

“We are hopeful that with positive impact of relevant trade pacts and regional harmonization efforts (such as the Digital Economy Framework Agreement or DEFA) currently being negotiated in ASEAN), this trend will only further accelerate. As ongoing uncertainty on the geo-economic horizon leads to relative stagnation of growth for trade in goods, services and digital economy will constitute a larger portion of global trade, with Philippines also contributing to that trend.”

The DEFA seeks to accelerate trade growth, create a safe online environment, enhance interoperability, and increase the participation of micro, small, and medium enterprises.

Mr. Lee added that the surge in online payments in the Philippines is expected to boost the digital sector’s contribution to the economy.

“In 2024, the Philippines witnessed a significant surge in digital payments and the trend is expected to continue, mainly due to increased adoption of e-wallets with platforms… Continued expansion of e-commerce services will also drive further digital payments as transaction between consumers and merchants will see significant increase,” he said.

AI, one of the most discussed topics during the WEF’s Annual Meeting in January, is also expected to benefit different industries’ digital transformation, he added.

“For the digital economy sector, AI can further fuel efficiency in services and accelerate job creation and upskilling. The Forum’s recently released Future of Jobs Report found that advancements in technologies, particularly AI and information processing (86%) and robotics and automation (58%) will be transformative and are expected to have the largest impact in terms of creation of new demand as well as displacement of jobs,” Mr. Lee said.

“While there are challenges on the horizon associated with rapid adoption of AI — such as risk of workforce displacement and ethical concerns — and therefore necessary guardrails and governance frameworks are critical, there is no doubt that integration of AI will also further accelerate the digital transformation of various sectors and add to the positive trajectory of digital economy development in the years to come.”

Philippine businesses, especially those in the e-commerce sector, will likely increase their use of AI this year, especially for predictive analytics, customer service chatbots, and personalization, Mr. Rivera said.

“Renewable energy-powered data centers and eco-conscious tech solutions will gain prominence. Beyond cryptocurrencies, blockchain adoption in supply chain transparency and decentralized finance may see pilot programs. Initiatives to connect underserved areas with affordable internet will expand, opening new markets,” he added.

Yves Gonzalez, Google Philippines public policy and government relations head, said midterm election spending is also expected to contribute to the growth of the digital economy as more candidates rely on online campaigns.

“The elections are expected to become a big contributor to the economy overall, particularly in the digital space… [With] campaign candidates basically investing to make videos, the creator ecosystem will definitely benefit,” Mr. Gonzalez said on the sidelines of an event this month.

The Philippine digital economy is expected to grow between $80 billion and $150 billion in gross merchandise value by 2030, according to a 2024 report by Google, Temasek Holdings and Bain & Co. — Beatriz Marie D. Cruz

SEC clears Megawide’s P5.95-B preferred share offering

MEGAWIDE.COM.PH

THE SECURITIES and Exchange Commission (SEC) has approved Megawide Construction Corp.’s public offering of up to P5.95 billion in preferred shares.

In a media release on Wednesday, the SEC said its Commission En Banc authorized Megawide to offer 30 million Series 6 preferred shares, with an oversubscription option of up to 30 million additional shares, subject to final regulatory compliance.

The preferred shares are perpetual, cumulative, non-voting, non-participating, non-convertible, and redeemable at P100 per share.

The offer period will run from March 10 to March 19, with listing on the Philippine Stock Exchange’s main board targeted for March 28, according to the company’s latest timeline.

If fully subscribed, the offering is expected to generate net proceeds of up to P5.95 billion, which Megawide intends to allocate toward project pipeline funding, share redemption, and general corporate purposes.

PNB Capital and Investment Corp., RCBC Capital Corp., and Security Bank Capital Investment Corp. are acting as joint issue managers, joint lead underwriters, and joint bookrunners for the transaction.

At the local bourse, Megawide’s shares declined by two centavos, or 0.87%, closing at P2.28 apiece. — Ashley Erika O. Jose

Term deposit yields fall after reserve ratio cuts

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By Luisa Maria Jacinta C. Jocson, Reporter

TERM DEPOSIT YIELDS fell on Wednesday after the Bangko Sentral ng Pilipinas (BSP) further slashed the reserve requirements for banks and nonbanks.

The BSP’s term deposit facility (TDF) attracted bids worth P194.816 billion, more than the P190 billion on the auction block but lower than the P203.552 billion in bids a week ago for a P220-billion offer.

Tenders for the seven-day debt reached P110.14 billion against the P100 billion auctioned off by the central bank. However, it was below the P119.864 billion in bids for the seven-day deposits offered last week.

Banks asked for yields of 5.5% to 5.775% against 5.745% to 5.78% a week earlier. This caused the average rate of the one-week deposits to slip to 5.7554% from 5.7592%.

Meanwhile, bids for the 14-day term deposits stood at P84.676 billion versus the P90-billion offer and P83.688 billion in tenders a week ago.

Accepted rates were 5.7% to 5.815%, compared with 5.765% to 5.815% a week ago. As a result, the average rate of the two-week deposits fell to 5.7805% from 5.7867% last week.

The BSP has not auctioned off 28-day term deposits for more than three years to give way to its weekly offer of securities with the same tenor.

The central bank uses the term deposits and 28-day bills to mop up excess liquidity in the financial system and guide market rates.

“The TDF average auction yields were slightly lower after the latest RRR cut that would infuse about P330 billion into the local banking system,” Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber message.

The central bank on Friday said it would cut the reserve requirement ratio (RRR) of universal and commercial banks and nonbank financial institutions with quasi-banking functions by 200 basis points (bps) to 5% from 7%, effective March 28.

It will also cut the RRR for digital banks by 150 bps to 2.5%, while the ratio for thrift lenders will be reduced by 100 bps to 0%.

Rural and cooperative banks’ RRR has been 0% since October, the last time the BSP cut reserve requirements.

Mr. Ricafort said yields ended lower following the country’s exit from the Financial Action Task Force’s (FATF) “gray list.”

The FATF on Friday removed the Philippines from its list of jurisdictions under increased monitoring for “dirty money.”

The Philippines was on the gray list for over three years or since June 2021.

The central bank said the removal from the list will help the country attract more investments and lower remittance costs.