THE BANGKO SENTRAL ng Pilipinas (BSP) has opened its door to a more aggressive monetary policy path to curb inflation as persistent shocks stemming from the Middle East conflict continue to feed into consumer prices.

In an exclusive interview on One News鈥� Money Talks with Cathy Yang on Thursday, BSP Governor Eli M. Remolona, Jr. said the Monetary Board is considering a second straight rate hike before its June 18 meeting.

Asked about the likelihood of off-cycle tightening, Mr. Remolona said: 鈥淚 wouldn鈥檛 say likely. We鈥檙e considering it.鈥�

However, the central bank chief noted that they may also wait until the May inflation report comes out on June 5 before delivering the next monetary policy decision.

鈥淭hat鈥檚 very close to the next scheduled policy meeting. So, at this point, it鈥檚 a toss-up whether we do an off-cycle or we just wait for the regular meeting, which is not that far away anyway,鈥� Mr. Remolona said.

Mr. Remolona also acknowledged the emerging stagflation risks, with slowing economic growth and accelerating inflation, but said the BSP is banking on fiscal policy to help the economy recover as it seeks to maximize its monetary policy tools for inflation-targeting.

The BSP reversed its policy path at its April 23 meeting, starting a new tightening cycle as it delivered its first 25-basis-point increase in over two years to bring the key policy rate to 4.5%.

Central bank officials have said that their latest move was aimed at preventing broader second-round effects of inflation, keeping inflation expectations anchored and steering it back to their target as the prolonged Middle East war dimmed the growth outlook.听

However, despite the preemptive rate hike last month, inflation has accelerated faster than expected, raising the risk that the BSP could fall behind the curve, according to Mr. Remolona.

鈥淥rdinarily, a supply shock, you would look through it because it would go away and then you鈥檙e back to where you are. But now this is a big supply shock and it鈥檚 a persistent supply shock,鈥� he said. 鈥淪o, we have to react and we have to react aggressively, I think, in this kind of situation. That鈥檚 why we raised rates early.鈥�

Inflation has breached the BSP鈥檚 2%-4% target and monthly forecasts since the war erupted in late February.

In April, rising costs of food and utilities amid elevated oil prices drove the headline print to an over three-year high of 7.2% from 4.1% in March and 1.4% last year. This was past the BSP鈥檚 5.6%-6.4% estimate for the month.

Asked if they are now behind the curve, Mr. Remolona said: 鈥淭here鈥檚 a risk that we are. It depends on whether the supply shock persists.鈥�

He noted that they fell short of anticipating the rapid impact of the oil supply shock on other items in the consumer basket such as fertilizer and rice, as the cost of those items typically takes time to rise.

Mr. Remolona said the BSP is closely monitoring transport fares, which he said were 鈥渁djusted very quickly,鈥� as well as faster inflation for the bottom 30% of households.

The central bank governor also noted that the slowdown in consumer spending has helped ease inflation but added that they do not want to address increasing price pressures that way.

鈥淭he slowdown in consumer spending helps lower inflation. We don鈥檛 want to lower inflation that way. We want consumer spending to resume and then it鈥檚 our job to keep inflation low,鈥� Mr. Remolona said, adding that they expect consumer spending to recover.

The central bank projects inflation to hover above 5% for most of the year to average 6.3%, faster than its 5.1% forecast before the war. By 2027, it expects inflation to cool down to 4.3%.

The central bank, according to Mr. Remolona, also remains 鈥渁ctive as usual鈥� in the foreign exchange market to smoothen out sharp swings amid recent episodes of the peso plunging to back-to-back historic lows.

The local unit closed at its historic low level of P61.75 against the dollar for two straight trading days this week as lingering market uncertainty from the still-waging war in the Middle East prompted safe-haven demand for the greenback.

However, it gained 15.90 centavos on Thursday to close at P61.581 per dollar from its P61.74 finish on Wednesday.

GROWTH PROJECTIONS for the Philippines are likely to be revised downward again as the prolonged conflict in the Middle East continues to weigh on economic activity, according to Asian Development Bank (ADB) Country Director for the Philippines Andrew Jeffries.

鈥淲hen we did the Asian Development Outlook in very early April, it had several scenarios including more downside scenarios, but the main scenario was based on what I would call an early stabilization scenario,鈥� he told 大象传媒 in an interview.

鈥淪o that was envisioning if this crisis got resolved and things went back to normal within a few months. That obviously has not happened,鈥� he added.

In April, the Philippine-based multilateral lender cut its Philippine gross domestic product (GDP) growth forecast to 4.4% from 5.3% previously projected in December.

The revised forecast falls below the government鈥檚 5-6% GDP growth target for 2026 and matches the country鈥檚 growth pace last year.

For 2027, the ADB expects the Philippine economy to expand by 5.5%, at the low end of the government鈥檚 5.5-6.5% target range.

On April 29, the ADB downgraded its growth outlook and raised inflation forecasts for developing Asia and the Pacific, reflecting the impact of the conflict. The lender now expects the region to grow by 4.7% in 2026 and 4.8% in 2027, lower than its earlier 5.1% forecast for both years.

Meanwhile, regional inflation is projected to accelerate to 5.2% this year and 4.1% next year from the earlier forecasts of 3.6% and 3.4%, respectively.

Mr. Jeffries said inflation in the region could rise as high as 7.4% this year under a severe downside scenario.

鈥淣ow, the Philippines is being disproportionately negatively affected compared to other countries. In the Philippines we just saw 7.2% (inflation) recently, so the Philippines is unfortunately experiencing that kind of much more downside quicker because of the vulnerability,鈥� he said.

鈥淛ust given the new numbers that have come out for the quarter that showed lower figure GDP, I guess we will be anticipating lower projections in July, given current trends,鈥� he added.

The Philippine economy expanded by 2.8% in the first quarter, slower than the previous quarter鈥檚 3% growth, reflecting the lingering effects of last year鈥檚 corruption scandal and soaring oil prices triggered by the Middle East conflict.

Meanwhile, headline inflation accelerated to 7.2% in April, exceeding the Bangko Sentral ng Pilipinas鈥� (BSP) 5.6%-6.4% forecast and 2%-4% target range.

WEAKER PESO
Jesus Felipe, a professor at Carlos L. Tiu School of Economics at the De La Salle University (DLSU), said the continued depreciation of the peso will further strain the economy.

鈥淭he problem is the type of economy that we have is a very weak economy鈥� It is an economy that has problems really sustaining production capacity,鈥� he told Money Talks with Cathy Yang on One News on Thursday.

鈥淚n the end, what is going to happen is that in the short run, at the very least, the current account deficit is going to deteriorate,鈥� he added.

Mr. Felipe said he expects the peso to weaken to P63.5 against the dollar by August.

The peso closed at a record low of P61.75 per dollar on Tuesday, unchanged from Monday鈥檚 finish.

While a weaker peso may benefit exporters, Mr. Felipe said this, coupled with soaring fuel prices, would mean more expensive imports which immediately feeds into inflation and lower real incomes.

He said the Philippines should use the crisis as an opportunity to diversify the economy and increase the value-added component of local manufacturing.

The DLSU May economic report projected Philippine GDP growth at 3.11% in 2026, well below the government鈥檚 5-6% target.

It also projected growth at 3.93% in 2027 and 5.71% in 2028, both below the government鈥檚 targets of 5.5-6.5% and 6-7%, respectively.

鈥淔or the time being, it鈥檚 a question of uncertainty. This is not really a deep crisis. We鈥檙e not into that. It鈥檚 not that growth is negative,鈥� he said.

Mr. Felipe said the uncertainty stems from a combination of peso depreciation and last year鈥檚 corruption scandal.

鈥淓verybody鈥檚 simply waiting to see what happens. So, consumption is really subdued and investment is really subdued… The recovery will start happening in 2028. It鈥檚 very, very important to notice that even with the recovery, we will not reach the targets that the government has been, during this administration, announcing, which is to grow 6.5% to 8%,鈥� he added.

Mr. Felipe said the government should implement reforms aimed at strengthening local firms and improving export competitiveness. He also cited the need for stronger fiscal policy support to improve productivity.

Without structural reforms, the Philippine economy will remain vulnerable to future crises, he added.

鈥淚f the government doesn鈥檛 do anything toward the long term, a couple of decades, even up to 2050, what we will see is what we call鈥� a weak economy that will be shaken by the next crisis, be it domestic or international,鈥� he added.

Separately, Bank of America Global Research said higher oil prices could significantly widen the country鈥檚 current account deficit.

鈥淥il prices around $90-$100 range would translate into roughly 1-1.3% widening of the current account deficit to 4%,鈥� it said.

鈥淲e have previously argued that a sustainable current account deficit for the Philippines is 2-2.5% of GDP which can be financed via foreign direct investment in government funding flows,鈥� it added.

Bank of America (BofA) said a current account deficit nearing 4% would increase reliance on the BSP鈥檚 intervention to limit depreciation pressures on the peso.

It also warned that persistently high oil prices could worsen the country鈥檚 fiscal position as the government rolls out measures to cushion the impact of inflation.

However, BofA said stronger intervention in the foreign exchange market would be difficult to sustain and could raise concerns over the adequacy of foreign exchange reserves.

The bank expects the peso to weaken to P63 per dollar in the second quarter and to P64 per dollar by yearend amid elevated oil prices.

鈥淎n oil price spike remains the key external risk for the Philippines. Domestically, political uncertainty may weigh on public spending, sentiment and growth,鈥� it added.

Under SEC Memorandum Circular No. 17, a broker director may serve a maximum cumulative period of 10 years in the same exchange, whether cumulative or intermittent.

The circular was signed by SEC Chairperson Francisco Ed. Lim on May 21.

鈥淪trong institutions require regular renewal, independent oversight, and broader representation,鈥� Mr. Lim said in a statement on Thursday.

鈥淏y setting reasonable term limits for broker directors, the SEC seeks to strengthen market governance, mitigate potential conflicts of interest, level the playing field among the different categories of directors in exchanges, and align our regulatory framework with internationally recognized standards, while ensuring a fair and orderly transition,鈥� he added.

The SEC said the measure is aligned with principles of the International Organization of Securities Commissions, which promote fair representation in the governance of self-regulatory organizations such as exchanges.

Under the circular, a broker director that has served for five cumulative years will be required to undergo a one-year cooling-off period before becoming eligible for re-election.

The five-year term and 10-year term maximum period is reckoned up to the date of the next annual stockholders鈥� meeting, following the fifth or 10^th cumulative annual election.

A broker director鈥檚 service of more than six months in a year will be counted as one full year for purposes of computing the five-year term and 10-year maximum cumulative service under the circular.

Following the cooling-off period, the re-elected broker director can serve a fresh term of up to five cumulative years.

The SEC circular also provides for a two-year transition period for incumbent broker directors, allowing them to complete their current terms and remain eligible for the next two annual elections.

Covered exchanges that exceed the maximum cumulative term limit for broker directors will be subject to penalties, including a P1-million fine per broker director per year and a P30,000 monthly penalty for each month that the violation continues.

Third or succeeding offense for the same violation will be subject to suspension or revocation of the exchange鈥檚 secondary or primary license.

The new directive would affect several long-serving broker directors at the Philippine Stock Exchange, including Ma. Vivian Yuchengco (28 years), Eddie T. Gobing (25 years), and Wilson L. Sy (12 years).

The SEC鈥檚 term limit proposal had previously drawn opposition from individuals, including Ms. Yuchengco, who argued that it would be 鈥渨rong,鈥� noting that brokers are also shareholders of the PSE.

Certain business groups expressed support for the changes, saying these would promote board renewal and investor confidence, and committed to working with regulators and stakeholders to help develop a fair capital market.

The SEC circular will take effect 15 days after its full publication in the Official Gazette or in at least two newspapers of general circulation. 鈥� Alexandria Grace C. Magno

THE PHILIPPINE financial system鈥檚 total resources rose to P37.45 trillion in the first quarter of 2026 as the sector鈥檚 assets ballooned despite headwinds stemming from the Middle East war, preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed.

As of March, banks and nonbank financial institutions鈥� combined resources grew by 8.61% to P37.45 trillion from P34.481 trillion in the same period last year.

Month on month, it edged up by 1.38% from P36.941 trillion previously.

These include funds and assets such as deposits, capital, and bonds or debt securities, but exclude resources from the central bank.听 听

Banks alone held P31.103 trillion worth of resources during the period, climbing by 9.19% from the P28.485 trillion seen a year earlier.

Broken down, universal and commercial banks鈥� resources rose by 8.41% year on year to P28.871 trillion at end-March from P26.631 trillion previously. This was the bulk of the sector鈥檚 resources in the first quarter.听

Resources of thrift banks also jumped by 25.17% to P1.478 trillion at end-March from P1.181 trillion in the comparable year-ago period, while digital banks had 44.82% more resources at end-March with P188.7 billion from P130.3 billion in the prior year.

Meanwhile, resources held by rural and cooperative banks stood at P565 billion as of end-December last year, 4.01% higher than the P543.2 billion seen in the first quarter of 2025. There were no data for rural and cooperative banks as of end-March this year.

Union Bank of the Philippines Chief Economist Ruben Carlo O. Asuncion said the higher resources as of end-March came as banks and nonbank financial institutions鈥� balance sheets remained sound amid the Middle East conflict, with lending activity and deposit inflows likewise boosting their holdings.听 听

鈥淭he increase underscores the resilience of the domestic financial system, which remains well-positioned to intermediate funds despite external headwinds such as the ongoing Middle East conflict,鈥� he said in a Viber message.听

Separate central bank data showed that lenders鈥� assets hit an all-time high of P30.336 trillion as of end-March, the first full month of the Middle East war. This was up by 9.77% year on year from P27.644 trillion.

Banks鈥� loan growth likewise hit its fastest pace in seven months in March, as lending to businesses and consumers climbed 10.7% to P14.603 trillion from P13.192 trillion a year ago.

Higher investment holdings and continued savings may have helped sustain the sector鈥檚 resource growth despite economic woes during the period, said John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies.

鈥�(This) reflects continued expansion in bank lending, deposit growth, and investment holdings, indicating that the financial system remains liquid and broadly resilient despite a more challenging macroeconomic environment,鈥� he noted.

The latest available BSP data also showed nonbanks held P6.347 trillion in resources as of end-2025. This reflects a 7.26% climb from the P5.917-trillion resources logged at end-2024.

Nonbanks include investment houses, finance companies, security dealers, pawnshops, and lending companies.

Institutions such as nonstock savings and loan associations, credit card companies, private insurance firms, the Social Security System, and the Government Service Insurance System are also considered nonbank financial firms.

In the coming months, analysts noted that tighter financial conditions amid lingering economic uncertainties could dampen the growth of the financial sector鈥檚 resources.

鈥淟ooking ahead, while resources are expected to continue expanding, the pace of growth may moderate amid tighter financial conditions, elevated inflation, and softer economic momentum,鈥� Mr. Asuncion said.

鈥淜ey factors to watch include BSP policy direction, liquidity conditions, risk sentiment, and the strength of domestic demand, which will collectively shape the trajectory of financial system resources in the coming months,鈥� he added.

The industry should also strive to maintain healthy asset quality and credit conditions, especially as economic risks continue to weigh on them, according to Mr. Rivera.

In a statement on Thursday, the company said January-to-March net income stood at P7.8 billion, up 6% from the normalized P7.4 billion recorded a year earlier, excluding one-time gains and the impact of Golden Arches Development Corp.鈥檚 (GADC) deconsolidation in March 2025.

Consolidated revenues rose 1% to P42.2 billion from the normalized P42 billion recorded in the same period last year.

鈥淎GI had an optimistic start; first-quarter results reflected healthy residential sales, strong leasing revenues, sustained improvement in the hospitality business, and the nascent recovery in spirits sales. These businesses continued to perform well even against a demanding macroeconomic and geopolitical backdrop,鈥� AGI President and Chief Executive Officer Kevin L. Tan said.

鈥淥ur first quarter performance is supported by ongoing cost discipline, embedded in our operations. This allowed our Group to gain operating leverage, while we continue to implement our aggressive business strategies. Overall, we have maintained our financial prudence, which helps us stay on course even in this challenging environment,鈥� he added.

On the property business, Megaworld Corp. saw a 4% increase in attributable net income to P5.3 billion as revenue climbed by 3% to P21.6 billion.

Real estate sales reached P13.3 billion, up 15%, driven mainly by construction progress in Metro Manila projects.

The office segment through Megaworld Premier Offices saw a 4% increase in office rental income supported by new leases and contract renewals.

The malls business led by Megaworld Lifestyle Malls saw revenues climb 9% to P1.8 billion, supported by higher tenant sales, improved occupancy, and stronger foot traffic.

Revenues from Megaworld Hotels & Resorts also increased 8% to P1.5 billion on the back of expanding operations and growing meetings, incentives, conferences, and exhibitions (MICE) activity.

The liquor manufacturing segment led by Emperador, Inc. posted attributable net income of P1.9 billion and consolidated revenues of P13.4 billion, driven by a favorable product mix and ongoing cost management, with brandy and whisky sales growing 6% year on year.

鈥淭he brandy segment continued to gain momentum, enjoying higher sales due to encouraging consumer shifts despite the soft domestic liquor market. Whisky sales have shown gradual, steady improvement as the Group continues to navigate ongoing challenges in the international spirits market,鈥� AGI said.

On the leisure and tourism segment, Travellers International, operator of Newport World Resorts, posted net revenues of P7 billion and gross revenues of P8.6 billion during the quarter.

Gross gaming revenue reached P6.6 billion, with gains in the mass segment offsetting weakness in VIP gaming. Non-gaming revenues rose 10% year on year to P2 billion, supported by higher hotel rates and increased retail spending within the resort complex.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) reached P1.7 billion, aided by cost management efforts.

AGI has interests in real estate through Megaworld, spirits through Emperador, leisure and hospitality through Travellers International, and quick-service restaurants through its stake in GADC, the operator of McDonald鈥檚 Philippines.

On Thursday, AGI shares rose by five centavos or 0.58% to close at P8.70 apiece. 鈥� Alexandria Grace C. Magno

鈥淲e鈥檙e studying the possibility of doing a follow-on offering also. But of course, we have to consider the market conditions when we do the follow-on offering,鈥� Vivant Chief Finance Officer and Risk Officer Minuel Carmela N. Franco said during the company鈥檚 annual stockholders鈥� meeting on Thursday.

She said the company plans to fund its pipeline of projects through a combination of debt and internal equity.

Vivant is planning around P60 billion in investments for its energy business from 2026 to 2030, particularly for renewable energy (RE) projects and related infrastructure.

鈥淲e have laid out an ambitious roadmap with total projected investments amounting to P60 billion from 2026 to 2030,鈥� Vivant Chief Executive Officer Arlo G. Sarmiento said.

About 78% of the planned investments will go toward renewable energy projects.

鈥淪tabilized by our strong foundation of existing investments in power and water, I am confident that our projected P60-billion to P70-billion pipeline investments over the next five years will allow us to continue to deliver on our mission to bring excellence to industries that improve everyday living,鈥� he said.

Amid ongoing geopolitical tensions in the Middle East, company officials said renewable energy development could help reduce the country鈥檚 dependence on imported conventional fuel sources.

鈥淲e could use more RE. Our dependence on conventional energy sources has made us the most expensive, maybe next to Singapore, country in terms of power costs. And that鈥檚 largely because of our dependence on oil, gas, and even coal,鈥� Mr. Sarmiento said.

Emil Andre Garcia, president and chief executive officer of Vivant Energy Corp., the company鈥檚 wholly owned energy investment arm, said Vivant is looking to develop up to 15 energy projects with capacities ranging from 30 megawatts (MW) to 300 MW.

鈥淲e鈥檙e looking at starting heavy investments this year, but the heavier ones should be in 鈥�27 and 鈥�28, assuming, of course, that the macros improve, or at the very least, stay where they are,鈥� he said.

Vivant currently has an attributable operating generation capacity of around 471 MW and is targeting to expand its power portfolio to 1,000 MW by 2030.

For its water business, the company is planning another P7 billion in investments across the water value chain, including bulk water supply, desalination, wastewater, and water distribution projects.

Jess Anthony N. Garcia, president and chief executive officer of Vivant Water, said the investment pipeline is intended primarily to expand the company鈥檚 desalination, wastewater, and water distribution segments.

鈥淚 think for the water sector, it鈥檚 a sector that鈥檚 been largely neglected. And I think because of that, there鈥檚 a lot of room there to improve infrastructure,鈥� he said.

Vivant Water is set to operationalize a desalination plant in Cordova capable of producing up to 20 million liters of water per day.

Vivant has investments in electric power generation and distribution, retail electricity supply, bulk water supply, wastewater treatment, and water distribution. 鈥� Sheldeen Joy Talavera

鈥淥ur results in the first three months are consistent with our back-ended target for the year. While we sustained a healthy performance early on, we have yet to quantify the impact of the Middle East war and a newly replenished construction order book in the coming months,鈥� Megawide Chairman and Chief Executive Officer Edgar B. Saavedra said in a media release on Thursday.

For the January-to-March period, the listed engineering and construction company posted gross revenue of P5.04 billion, up 16.4% from P4.33 billion a year earlier.

Megawide said revenues from operations accounted for 95.44% of total revenue at P4.81 billion. Construction operations contributed P3.84 billion, while landport and real estate operations generated P137.86 million and P831.13 million, respectively.

鈥淥verall, the revenue growth reflects increased project activity and portfolio expansion, with the real estate segment providing a higher contribution during the period. However, revenues remain partially influenced by project timing and recognition cycles, particularly for construction and real estate operations,鈥� the company said.

Total expenses rose 15.59% to P4.67 billion from P4.04 billion previously.

Megawide said the impact of the Middle East war, which escalated in February, has yet to materialize. The company added that it continues to explore strategies to strengthen revenue growth and its balance sheet.

鈥淭he other side of our value creation strategy is boosting our financial position to ease the debt-servicing burden and provide financial flexibility. Already, we have pared down almost P6 billion of our short-term debt in the first quarter alone, which should translate to estimated interest cost savings of around P250 million to P300 million for the year based on our average cost of debt,鈥� Mr. Saavedra said.

Megawide said its bank debt-to-equity ratio improved to 1.1x as of end-March from 1.54x at end-2025, in line with its medium-term commitments and long-term financial management program.

鈥淔or the remainder of the year, we are programmed to pay down another P2.5 billion to P3 billion from our short-term obligations as we aim to boost our liquidity and free up more debt headroom to support our long-term growth aspirations,鈥� Chief Financial Officer Jez G. dela Cruz said.

Megawide has a construction order book worth P48.7 billion and is building 11,000 housing units under the government鈥檚 expanded 4PH program. The company is also developing the Baguio City Integrated Terminal, the South Luzon Integrated Terminal Exchange, and the Cavite Bus Rapid Transit System.

Shares in Megawide fell three centavos, or 0.94%, to close at P3.17 apiece. 鈥� Ashley Erika O. Jose

The debt watcher affirmed the two banks鈥� 鈥淏aa2/P-2鈥� long- and short-term foreign and local currency deposit ratings and 鈥渟table鈥� outlooks, it said in separate statements late on Wednesday.

Also affirmed were their counterparty risk ratings and assessments, baseline credit assessments, and the ratings for their respective medium-term note programs.

For BDO, Moody鈥檚 said the affirmed ratings reflect its strong asset quality, funding and liquidity, adding that it has ample buffers and good profitability.

鈥淭he bank鈥檚 funding and liquidity will remain its key strengths, with a robust and dominant deposit franchise supporting its very high deposit market share, and hence access to lower cost of funding and high current and savings account deposit ratio of 68% as of end-2025. Its less-stable funds ratio stood at an adequate 23.1% as of end-2025, while its core banking liquidity ratio was 20.6% as of the same date,鈥� it said.

It added that BDO鈥檚 nonperforming loan (NPL) ratio is likely to stay stable this year, still supported by write-offs on its fast-growing unsecured retail loans.

Meanwhile, its credit costs may stay elevated amid the surge in the share of consumer loans in its portfolio over the past two years, and amid preemptive provisioning as macroeconomic conditions become more challenging.

鈥淭he bank鈥檚 high concentration to large corporate loans and long-dated investment securities will also pose risks to its asset quality.鈥�

The credit rater sees BDO鈥檚 return on assets (RoA) to range from 1.4% to 1.5% this year as net interest margin (NIM) stabilizes, even while credit costs and operating expenses remain elevated.

Meanwhile, capitalization will stay adequate, although capital generation may grow slower as credit demand eases. Widening government bond yields could also hit its Tier 1 ratio.

Moody鈥檚 said BDO鈥檚 deposit ratings will depend largely on the movement of the Philippines鈥� sovereign rating as they are at the same level.

Meanwhile, a significant deterioration in its asset quality, which could drive up credit costs and hit its earnings, as well as increased risks from related party lending or loan concentration, could lead to a downgrade.

BPI
For BPI, Moody鈥檚 said it credit strengths are strong profitability, adequate capital, healthy liquidity, and stable funding supported by its solid deposit franchise.

These balance out its weakening loan quality as it continues to expand its higher-risk retail lending businesses and amid 鈥渃hallenges鈥� in its corporate segment after it reported in the first quarter that 鈥渟everal corporate loans slipped into problem loans due to challenges unrelated to the conflict in the Middle East.鈥�

It said the bank鈥檚 problem loan ratio and credit costs have increased amid the seasoning of its retail loans and heightened macroeconomic risks.

鈥淲e expect the retail segments to experience further strain in 2026, given the shrinking financial buffers of retail borrowers amid higher inflation in the Philippines,鈥� Moody鈥檚 said.

鈥淎lthough the bank has tightened credit underwriting and plans to moderate its retail loan growth, we expect the bank鈥檚 asset risks to remain elevated, with credit costs normalizing closer to the 0.9% range in 2026. The bank鈥檚 high concentration to large corporate loans and long-dated investment securities will also pose risks to its asset quality.鈥�

Meanwhile, the bank鈥檚 NIM will likely continue expanding in line with growth in its retail loan, while its RoA could decline slightly due to elevated credit costs.

鈥淎dditionally, lower repayment capacities of retail borrowers amid higher inflation will add further upside on the bank鈥檚 credit costs.鈥�

The debt watcher said BPI鈥檚 funding and liquidity will remain strong thanks to its strong deposit base.

鈥淎lthough the bank鈥檚 current and savings account deposit ratio has declined to 60% as of March 2026, from 63% the year before, the bank鈥檚 cost of funds remains one of the lowest among its domestic rated peers. As of end-2025, the bank鈥檚 less-stable funds ratio stood at a good level of 17.1% and its core banking liquid assets ratio was 21.7%.鈥�

Like BDO, BPI鈥檚 ratings will hinge on the movement of the Philippines鈥� sovereign rating as they are at the same level.

Downgrades could be possible if its solvency metrics, including its asset quality and liquidity ratios, worsen significantly. 鈥� Aaron Michael C. Sy

This came after the resignation of Philippine Savings Bank President Jose Vicente L. Alde as Metrobank director to focus on the thrift bank.

鈥淗is invaluable contributions over the past four years have been instrumental to Metrobank鈥檚 sustained success. He will continue to provide strategic leadership within the Metrobank Group,鈥� Metrobank said.

Meanwhile, Mr. Sison, who retired from Sun Life Philippines earlier this year, is the fifth independent director to serve Metrobank鈥檚 board.

鈥淎 renowned veteran of the insurance industry, Mr. Sison鈥檚 appointment underscored the bank鈥檚 commitment to upholding the highest standards of corporate governance.鈥�

Mr. Sison was also appointed as chairman of the board鈥檚 Audit Committee and a regular member of the Risk Oversight Committee.

Meanwhile, Metrobank鈥檚 board appointed Vice Chairman Francisco C. Sebastian as director of the Trust Committee, a seat previously held by director Anthony Paul C. Yap.

Mr. Sebastian鈥檚 previous role in the IT Steering Committee has now been assumed by Metrobank President and Director Fabian S. Dee.

Metrobank鈥檚 attributable net income grew by 2.68% year on year to P12.603 billion in the first quarter. Its shares closed at P63 apiece on Thursday, down 35 centavos or 0.55% from Wednesday鈥檚 finish. 鈥� Aaron Michael C. Sy

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New and localized titles to launch at tabletop gaming convention

PLAYING board games is a cherished pastime among family and friends, especially now that people taking time away from screens is rare. There are various tabletop gaming clubs, organizations, and informal groups that cater to everyone from casual hobbyists and social players, to serious board game enthusiasts, who meet up weekly to sit down and spend hours at the tabletop.

While the likes of Scrabble, Monopoly, and Clue continue to be the most popular games, modern strategy games are also in demand. In the Philippines, local and localized titles provide a unique experience 鈥� the latest of which is Modern Art, a highly acclaimed international board game which now has a Philippine edition.

Following a collaboration between the Gaming Library and Fundacion Sans贸, the art auction board game Modern Art by Dr. Reiner Knizia has been adapted locally to feature works by Federico Aguilar Alcuaz, Abdulmari Imao, Larry Alcala, Raul Lebajo, and Juvenal Sans贸.

鈥淭he game is played by three to five players. Basically, you guys will be playing as museums and participating in auctions to sell and to collect paintings, and, depending on the season or the market, be given a return of value based on which artist is trending,鈥� said Gaming Library Chief Executive Officer Hans Kenner Fernandez, at the media preview held at Fundacion Sans贸 in San Juan City.

鈥淲hat鈥檚 exciting is that there are different types of auctions that you can participate in,鈥� he added.

Gaming Library, aside from being a board game shop, is the organizer of All Aboard Expo, a tabletop gaming convention which is now in its second year. From May 28 to 31, it will be the venue for various board game tournaments and new title launches, including Modern Art.

Other local titles to be launched at the event are Sinigang (a card game of bluffing and timing where the goal is to cook the perfect pot of sinigang) and Kalikasan (a localized version of the habitat-building game Cascadia, featuring Philippine animals like tarsiers and tamaraws).

FINDING COMMON GROUND
While one would think there isn鈥檛 much overlap between art enthusiasts and board game enthusiasts, Mr. Fernandez noted that the gap need not be too wide.

He explained that reaching out to Fundacion Sans贸 was the perfect move, as it happens to have the Initiative for the Continuation of Artist鈥檚 Estate, a program to help manage artists鈥� estates (not just Mr. Sans贸鈥檚) through legacy-building, skill transfer, and copyright management.

鈥淲hat we鈥檝e learned last year was we shouldn鈥檛 just focus on people who already play games,鈥� he said. 鈥淚f we can find similarities and common ground together, especially now when our political climate is trying to divide people, I feel like we can do the opposite. So, Modern Art came to be because we believe that art is really a big component of board games.鈥�

Considered by gaming enthusiasts as a masterclass in game design, Modern Art is a classic board game centered on the dynamics of the art market. The Philippine Edition introduces works by five contemporary Philippine artists 鈥� National Artists Federico Aguilar Alcuaz, Larry Alcala, and Abdulmari Imao, Filipino surrealist Raul Lebajo, and Presidential Medal of Merit Awardee Juvenal Sans贸 鈥� with works ranging from comics to classic oil paintings, from sculptures to tapestries.

The board game鈥檚 layout and visual design were led by graphic artist Tanya Mallillin, in collaboration with Mr. Fernandez and Duane Galang from the Gaming Library. Select releases of Modern Art: Philippine Edition will include a limited-edition archival print of Juvenal Sans贸鈥檚 Fat Cat, produced in strictly limited quantities.

The original creator of Modern Art, mathematics whiz Dr. Reiner Knizia, is revered among game designers with over 900 published games and books.

鈥溾�楳onopoly but for art鈥� is the easiest way to grasp what Modern Art is about,鈥� said Tenie Santos, Fundacion Sans贸鈥檚 assistant director, at the preview. 鈥淣ot a lot of people know how big the gaming community is in the Philippines. We actually have the biggest gaming community in Southeast Asia. And we鈥檙e so happy because board games are actually a form of art, with visual components, storytelling, culture, and even math.鈥�

She added that the project will help the five artists鈥� estates gain visibility among younger generations.

鈥淢any of them don鈥檛 know these artists anymore, so we need to do something about it. We have to be flexible to the changes, trends happening outside the museums,鈥� Ms. Santos said.

Part of proceeds from the sales of the game will go to Strays Worth Saving, which Fundacion Sans贸 donated to for the first time last month from the deluxe preorders of the board game.

鈥淲e鈥檒l keep doing it while we still have stocks of the game and of the Fat Cat archival prints. We hope to reach out to the entire Filipino community, to support local and to support arts and culture,鈥� she said. 鈥淗opefully this will encourage people to be into art and not be intimidated.鈥�

BIGGEST GAMING CONVENTION IN SEA
The official launch of Modern Art: Philippine Edition will take place at All Aboard Expo 2026, to be held at the MICE Center inside the Quezon City Hall complex from May 28 to 31. Representatives from the five artists鈥� estates will be present.

Mr. Fernandez said that, since it is the biggest tabletop gaming convention in Southeast Asia (SEA), they are expecting 15,000 attendees throughout the weekend. Last year, they had 10,500 attendees.

鈥淲e have 40 international brands flying over and visitors from Poland, Portugal, Vietnam, South Korea 鈥� about 30 countries in total,鈥� he said. 鈥淧eople have volunteered to teach the new board games, so a demo team will guide you if you want to try to play some.鈥�

Games will be labeled from Stages 1 to 5, indicating increasing level of difficulty, with Modern Art: Philippine Edition assigned to Stage 2.

鈥淚t will only have 100 copies at All Aboard Expo, so come and try it and get yours when you can!鈥� Mr. Fernandez said.

Entrance to the event is free for Quezon City residents and priced at P150 for everyone else. More details can be found here: . 鈥� Bront毛 H. Lacsamana

鈥淥ne of the things that we would really like to do is issue a blue bond which is linked to water-related investments. Not only because we put the effort to get the framework in, but also because we think that there is demand from some of the vendors. As we market the bond, we create awareness for some of these projects,鈥� BPI Chief Financial and Sustainability Officer Eric M. Luchangco said at a media briefing on Thursday.

The bank has over P50 billion in assets it can finance under the blue bond framework, he added.

However, higher interest rates due to the Middle East conflict have made the bank hesitant about tapping the debt market.

鈥淚 think the deeper issue potentially preventing or affecting the timing of the issue is probably the global circumstances. If you had asked us in February, for example, whether we thought the market would be open for us to do an issue, I think the answer would have been, 鈥榳e don鈥檛 have any issues there.鈥� But the Middle East conflict really created some more volatility in the market. And I mean, I鈥檓 sure you鈥檝e seen interest rates swing very high,鈥� he said at the sidelines of the same briefing.

The bank could also tap other funding options to refinance a coming maturity in the third quarter, such as how it issued a green bond last year with the International Finance Corp. (IFC) as the sole subscriber that invested $250 million to help boost climate finance in the country.

鈥淲ith IFC, it was not a widespread bond, but basically a corporate note that we bought.

If that turns out to be more efficient for us, then we may go down that route again. Or if the public market seems more efficient for us, then we may go down that route,鈥� Mr. Luchangco said.

The bank in June last year also raised P40 billion from 1.5-year SINAG or Supporting Inclusion, Nature, and Growth Bonds at 5.85% per annum, well above the P5-billion target.

He added that the bank is not under any pressure to issue bonds as market conditions remain uncertain.

BPI鈥檚 net income rose by 1.7% to P16.92 billion in the first quarter. Its shares went up by P2.4 or 2.76% to close at P89.50 each on Thursday. 鈥� Aaron Michael C. Sy

FOR Filipino R&B artist Jemay Santiago, who is also a prominent online content creator, making music allows her to reveal a more vulnerable side that is different from her more jovial public persona. So, it is not a surprise that her latest single, 鈥�1A,鈥� which was released this month, presents a laidback sound and an inner depth.

鈥淭he context is that I came to a point where I had self-doubt and suicidal thoughts. I felt like a failure as a daughter, as a content creator, as a public figure,鈥� Ms. Santiago said at an interview on May 18 in Makati City. 鈥淚鈥檓 able to express it in song when I鈥檓 in the recording studio. Doon lang ako nagiging totoo sa nararamdaman ko (That鈥檚 the only place where I get real about my feelings).鈥�

To further challenge the glamorized narratives often associated with mainstream exposure and music culture, the song is set to be the first single to be released from her upcoming EP, Depresyon.

鈥淚 used to be scared to express myself as a public figure because people might take my weaknesses against me, but I thought it鈥檚 better to be authentic, raw, and vulnerable for people to understand who you are and what you鈥檙e going through 鈥� and for others to relate and realize they鈥檙e not alone,鈥� the singer said.

The track showcases hazy textures thanks to the mixing and mastering of Icy D. of Got Name? Collective, and the nocturnal beats care of Mark Arganda鈥檚 production. Originally titled 鈥淢ARY1A,鈥� it was later shortened to 鈥�1A,鈥� a metaphorical concept representing prioritizing oneself and personal healing.

According to Ms. Santiago, the number one signifies mental health being first, while the letter A represents beginning. Thus, 鈥�1A鈥� openly addresses 鈥渢he emotional realities hidden behind the smiles, confidence, and success often projected online.鈥�

Being part of the lesbian, gay, bisexual, trans, queer, intersex, and asexual plus (LGBTQIA+) community also motivates the artist, who identifies as pansexual, or someone attracted to all genders. 鈥淚鈥檝e seen hate comments about my identity, about how they think my music is bad, about how I鈥檓 just a clout chaser,鈥� she said.

Ms. Santiago explained that people don鈥檛 bother to understand once they鈥檝e made judgments about you, adding that she had become a content creator to help with her mother鈥檚 medical bills.

鈥淪he passed away two years ago,鈥� she said. 鈥�Wala man lang akong nagawa. Kaya nagawa ko 鈥檡ong kanta ngayon na palipat na ako mula sa pamilya papunta sa sarili ko. Kasi pakiramdam ko rin na nagkulang ako (I wasn鈥檛 able to do anything. That鈥檚 why I made this song, now that I鈥檓 shifting from family to myself, because I felt I didn鈥檛 do enough).鈥�

For her, the pressure felt among LGBTQIA+ Filipinos who are trying to find themselves while also facing dangerous thoughts of failure and self-doubt, is quite common.

鈥淲e can be the most genuine and very happy, but we鈥檙e also carrying our own struggles,鈥� she said. 鈥淲e have to deal with it alone.鈥�

Ms. Santiago added that music was the best way she found to tap into these unspoken feelings in the community.

鈥淚 was 15 years old when I first found out I could compose my own songs. I loved to sing,鈥� she said. 鈥淟ittle did I know, being a musician could be my profession.鈥�

鈥�1A鈥� is out now on digital music streaming platforms. 鈥� Bront毛 H. Lacsamana

The first risk is institutional and reputational.

The sequence of events has now entered public consciousness. A senator facing an International Criminal Court-related warrant was effectively sheltered within Senate premises under 鈥減rotective custody,鈥� allowed to participate in a dramatic leadership change, and later escorted out of the building despite active efforts by authorities to serve him the warrant. The Senate initially projected the narrative that it was under external threat. Subsequent reports, however, showed otherwise. The alleged 鈥渁ttack鈥� appeared exaggerated, if not entirely imagined. Philippine National Police (PNP) and Department of the Interior and Local Government (DILG) official reports indicated that the gunfire came from Senate security personnel themselves and involved only a lone National Bureau of Investigation (NBI) agent who had remained behind upon the request of Government Service Insurance System (GSIS) authorities to help secure their premises.

The Supreme Court鈥檚 subsequent denial of the senator鈥檚 petition for a Temporary Restraining Order further weakened the legal and moral basis for the Senate鈥檚 actions. The implication became difficult to avoid: the institution appeared less interested in defending constitutional independence than in shielding one of its own.

SELF-INFLICTED DAMAGE
This is where the Senate inflicted damage upon itself.

For decades, the Senate cultivated the image of being the country鈥檚 stabilizing institution, the chamber where statesmanship prevailed over political impulse, where independent judgment tempered executive excess, and where constitutional principles carried greater weight than partisan loyalty. That image has now been severely compromised.

The problem did not begin this week or last week. The Senate had already suffered reputational damage last year when it refused to immediately proceed with the impeachment process against the Vice-President and instead remanded the matter back to the House of Representatives on procedural grounds. To many, that decision suggested a reluctance to confront politically difficult issues directly despite the Constitution鈥檚 use of the word 鈥渇orthwith.鈥�

To its credit, the Senate this year finally organized itself into an impeachment court. But the institutional damage had already accumulated. The events of the past week only reinforced public suspicion that accountability in the country has become selective and negotiable.

That is the essence of the Senate鈥檚 idiosyncratic risk.

It is a risk unique to the institution itself: the erosion of its credibility, legitimacy, and moral authority. The Senate now faces a growing perception that it no longer functions as an independent constitutional body guided principally by law and national interest, but increasingly as a political sanctuary shaped by alliances, personalities, and survival instincts.

The decline is not merely procedural; it is cultural and institutional.

The Senate today is increasingly perceived as dominated by celebrity politics, media performance, and political theatrics rather than serious legislation and statesmanship. Public debate has become noisier but less substantive. Committee assignments often appear driven more by political convenience than expertise. Institutional independence, once the Senate鈥檚 defining characteristic, now appears inconsistent and selective depending on the issue involved.

This deterioration matters because institutions derive their authority not only from constitutional design but from public trust. Once that trust weakens, institutional legitimacy begins to erode.

SYSTEMIC RISK, MORE SERIOUS
But the second risk is even more serious.

The Senate鈥檚 credibility crisis is no longer confined to itself. It now threatens to generate systemic or economywide consequences, particularly at a time when the Philippine economy is already showing increasing signs of stagflation.

This concern is not speculative. No less than President Ferdinand Marcos, Jr. himself has publicly expressed concern over the possible emergence of stagflationary conditions in the country. That concern is not without basis.

PHILIPPINE ECONOMY LOSING STEAM
The Philippine economy has clearly been losing momentum. Annual GDP growth slowed from 5.7% in 2024 to 4.4% in 2025. Quarterly growth data have shown a continuing downtrend, culminating in a disappointing 2.8% in real GDP growth in the first quarter of 2026.

The weakness is broad-based.

Agriculture remains under pressure, with palay production continuing to decline amid structural inefficiencies, climate disruptions, and supply constraints. Industry has weakened significantly, from 5.6% growth in 2024 to only 1.7% in 2025, before contracting by 0.1% in the first quarter of 2026. Manufacturing barely expanded during the same period, while construction sharply decelerated to 2.8% from 7.1% the previous year. Even the services sector, traditionally the economy鈥檚 growth anchor, has shown visible moderation.

ELEVATED INFLATION
At the same time, inflationary pressures remain elevated.

Consumer prices continue to erode household purchasing power, particularly among lower-income Filipinos already burdened by food and transport costs. More concerning are the inflation forecasts themselves. Following the elevated April inflation print of 7.2%, well above the Bangko Sentral ng Pilipinas鈥� target range, inflation is now projected to average 6.3% in 2026 and 4.3% in 2027, both significantly above target.

The upside risks are equally troubling: geopolitical tensions involving Iran, Israel, and the United States; uncertainties surrounding the Strait of Hormuz; the threat of El Ni帽o to domestic food supply; second-round effects on transport fares and wages; and the sustained weakening of the peso.

This is the dangerous combination that is characteristic of stagflation: slowing growth accompanied by persistently high inflation.

ACCELERATING ECONOMIC VULNERABILITIES
The Senate鈥檚 recent actions did not create these economic vulnerabilities. But they may have accelerated them by injecting another thick layer of uncertainty into an already fragile environment.

Political institutions are not isolated from economic outcomes. Weak institutions create uncertainty; uncertainty weakens confidence; and weakened confidence discourages investment and economic activity.

The timing therefore could not be worse.

The country鈥檚 fiscal space is already narrowing rapidly. National Government debt has exceeded 65% of GDP, while weak revenue generation continues to constrain the government鈥檚 capacity to sustain aggressive infrastructure and development spending. The ongoing controversies surrounding flood control projects and public spending have also created a chilling effect within the bureaucracy, slowing implementation, and weakening capital formation.

Meanwhile, the Philippine economy remains heavily dependent on overseas remittances and business process outsourcing or BPO revenues, both of which are vulnerable to global instability. The recent Middle East conflict therefore presents not merely a geopolitical concern but a direct economic threat to remittance flows, labor markets, and energy prices.

The country鈥檚 energy vulnerability remains especially alarming. The Philippines remains heavily dependent on imported fossil fuel, exposing the economy to external price shocks and supply disruptions. Red alerts in the Luzon and Visayas power grids have already underscored the fragility of domestic energy supply and transmission systems.

CONFUSION AND FRAGILITY
Under such conditions, what the country requires most are stable, disciplined, and credible institutions capable of reassuring markets and encouraging long-term investment.

Instead, the Senate projected confusion, volatility, and institutional fragility.

The implications are not theoretical. Financial markets respond quickly to political instability. Investor confidence weakens. Currency pressures intensify. Risk premiums rise. Businesses postpone expansion decisions. Foreign investors become more cautious toward economies where institutions themselves appear unstable or politicized.

Indeed, even international media coverage reflected those concerns. Foreign reporting described the Philippines as entering another period of political turmoil and institutional instability. What should have demonstrated democratic maturity instead projected political spectacle and constitutional uncertainty.

FROM IDIOSYNCRATIC TO SYSTEMIC RISK
This is how idiosyncratic risk transforms into systemic risk.

The Senate may initially have believed that the controversy involved only an internal political maneuver, a leadership dispute, the protection of an ally, or an institutional turf issue. But institutions do not operate in isolation. Their actions shape perceptions regarding governance quality, rule of law, accountability, and policy stability across the entire political system.

And in an economy already facing slowing growth and elevated inflation, the additional burden of institutional instability may hasten the emergence of stagflationary conditions.

The tragedy is that the Senate once represented the opposite. It was historically regarded as the country鈥檚 last major institutional guardrail, a chamber capable of moderating political excesses, defending constitutional boundaries, and producing leaders with intellectual depth and independence.

Today, that reputation is badly diminished.

Ultimately, the gravest damage inflicted last week was not on any political faction or branch of government. It was on the credibility and legitimacy of the Philippine Senate itself. And in weakening one of the country鈥檚 most important democratic institutions, the Senate may also have deepened the economywide risks confronting the Philippines at a particularly vulnerable moment in its history.

To be sure, what the Philippine Senate is doing is hardly revolutionary. Yet like Saturn of old, it risks consuming the very forces it once nurtured.

Diwa C. Guinigundo is the former deputy governor for the Monetary and Economics Sector, the Bangko Sentral ng Pilipinas (BSP). He served the BSP for 41 years. In 2001-2003, he was alternate executive director at the International Monetary Fund in Washington, DC. He is the senior pastor of the Fullness of Christ International Ministries in Mandaluyong.

On the electrical power system, as of this writing, we continue to monitor the issuances of red and yellow alerts over Luzon and the Visayas by the National Grid Corp. of the Philippines (NGCP) signaling sufficiency or insufficiency of supply and reserves to meet system demand. This follows the tripping of critical transmission lines in south Luzon resulting in a loss of around 2,500 megawatts (MW) of capacity which then triggered widespread power interruptions on the main island. In a statement released on May 15, the Department of Energy (DoE) said that it has mobilized the Grid Reliability Task Force to conduct a full investigation of the incident and required the NGCP to provide full disclosure of operational data, incident reports, and technical findings for a comprehensive assessment of the event.

Quite fortuitously, earlier this week, it was also reported that the Energy Regulatory Commission (ERC) partially granted a motion for reconsideration by the NGCP for an upward adjustment of the regulated entity鈥檚 revenue cap for the 5^th regulatory period covering 2023-2027. According to the Order, promulgated on May 15, the Commission modified its earlier Final Determination, dated Jan. 9, and adjusted the NGCP鈥檚 Maximum Allowable Revenue (MAR) for the said period from P374.981 billion to P378.711 billion, or an Annual Revenue Requirement (ARR) ranging from P63.659 billion for 2023 to P89.982 billion for 2027. This will later be translated to transmission rates on peso/kW or peso/kWh basis to be collected from consumers starting in the October 2026 billing.

It is against this backdrop that we discuss the highlights of the Discussion Paper prepared by Dr. Adoracion Navarro of the Philippine Institute for Development Studies (PIDS), entitled, 鈥淭he Need for Power Transmission Sector Reforms in the Philippines.鈥�

The study was part of the January 2026 publication by PIDS (the full copy is available on its website) and presented in a webinar on May 14 鈥� yes, fortuitously scheduled as well 鈥� for which I was invited to provide some reaction and inputs. The copy of the presentation is available at .

KEY FUNDAMENTALS
We often hear the phrase 鈥渢here is no transition without transmission,鈥� and assume this to mean that the grid just needs to continue expanding to meet the requirements of the energy transition. This is why I found it refreshing that Dr. Navarro took the time to discuss the history of the Philippine power sector in her study. It frames quite astutely the fact that, to a great extent, what we still have is a grid that existed prior to the reforms introduced by the Electric Power Industry Reform Act (EPIRA) of 2001.

While it is true that there have been expansions to the network, including the most important Mindanao-Visayas Interconnection Project, the grid remains a highly centralized network designed to operate with large power generation units, including the large renewable energy (RE) plants built and operated pre-EPIRA by the National Power Corp. and its independent power producers (IPPs). The question then that must be asked and perhaps addressed in a joint technical-economic study: given the direction the DoE has taken on increasing supply from RE and indigenous resources to wean us away from dependence on imported fuels, what revisions are needed in: a.) the grid鈥檚 design to most efficiently serve variably-sized RE plants located in multiple far-flung sites, and b.) the operation of a power system with high-and-dispersed RE penetration?

Dr. Navarro鈥檚 paper is also most helpful in dedicating a chapter discussing the economic principles governing the transmission industry. Given the tendency for political discussions to veer towards forcing competition in the transmission and distribution sectors via the issuance of parallel franchises over the same area, Dr. Navarro鈥檚 study serves as a good reminder as to why the transmission of electricity is known as a natural monopoly: it is one 鈥渃haracterized by high fixed costs, economies of scale, and network externalities. In liberalized electricity markets, transmission plays a critical coordinating role by enabling competition in generation and supply while remaining subject to economic regulation鈥� Transmision investments are typically large, lumpy and irreversible鈥︹��

As a natural monopoly, the success then of the transmission sector in the grand scheme of a power system rests in several factors beyond competition.

PERSISTENT ISSUES
Dr. Navarro identified seven issues that continue to beset the sector in the Philippines: project delays; regulatory concerns; right-of-way concerns; grid reliability (including reserves and ancillary services); coordination and institutional frictions; ownership and national security concerns; and transmission capacity and congestion. I agree with the assessment of these issues and would just highlight the following points on three matters:

1. On project delays and transmission congestion. Dr. Navarro noted that although the ERC had imposed penalties on NGCP for certain project delays, 鈥渃ritics argue that the economic costs of delayed investments 鈥� such as congestion, reliability issues, and foregone access to cheaper generation 鈥� are substantial and often underestimated.鈥�

Indeed, penalties cannot approximate the economic costs of delays in transmission projects. In the ERC鈥檚 evaluation of the NGCP鈥檚 application for approval of transmission projects, the economic analysis actually includes an estimate of the expected amount of energy not being served (EENS) to consumers, in the absence of the project, resulting from capacity shortages or unexpected power outages for the period considered, which is usually 15 years given the planning horizon for transmission assets. For example, in the ERC鈥檚 Order approving the Balaoan-Laoag 500-kilovolt (kV) Transmission Project (ERC Case No. 2021-003RC, promulgated on Nov. 26, 2024), the Commission computed the EENS for 15 years at 13,079,227,930 kilowatt/hour (kWh). Translating this in monetary terms using P18.75/kWh as the Cost of Alternative Energy Sources (CAES) 鈥� usually benchmarked to the cost of diesel fuel in the area to be served by the project at the time of evaluation 鈥� the ERC estimated P99.813 billion to be the cost to consumers over the 15 year period resulting from the absence of this one project alone. The potential revenue loss to generators, on the other hand, was estimated at P50.320 billion for the same period. Given the magnitude of these amounts and the maximum penalty of P50 million for each violation that ERC may impose, it is reasonable to expect the penalties will always fall short of the actual cost of delay.

The impact gets more magnified when delays affect interconnector projects and or result in line congestion.

Dr. Navarro correctly points out that 鈥淸w]hen transmission capacity is not available on time, lower-cost or cleaner generation gets curtailed, forcing the system to rely on more expensive alternatives. Congestion is especially acute in fast-growing load centers (such as cities in the Visayas), where demand growth has outpaced transmission upgrades. These constraints not only increase system costs but also undermine broader policy objectives related to system security and decarbonization.鈥�

One can simply monitor the average prices at the wholesale electricity spot market (WESM) daily to verify the disparity in prices in Luzon, Visayas, and Mindanao that can largely be attributed to congestion: to illustrate, for May 19, the Load Weighted Average Price (LWAP) for the system was P7.32/kWh. For Luzon, however, the LWAP was P3.90/kWh, while it stood at P20.21/kWh for the Visayas and P11.05/kWh for Mindanao.

2. On regulatory concerns. Dr. Navarro also explains the rationale behind the shift from the return-on-rate-base (RORB) methodology to the performance-based review (PBR) regime that currently governs the transmission and distribution sectors pursuant to EPIRA. The economic theory behind the adoption of PBR is to link the revenues of the regulated entity to outcomes to reduce the need for heavy-handed regulation. However, she observes, 鈥溾�or reasons still insufficiently addressed in public discourse, the ERC was unable to conduct on time the regulatory reset for 2016 to 2020 (the Fourth Regulatory Period or 4th RP). This delay is inappropriate because PBR is designed to be forward-looking, relying on forecasts to establish rates before the start of each regulatory period. As a result, transmission rates for the 4^th RP were not determined as scheduled and the NGCP was allowed to operate using the wheeling charges set during the 3^rd 搁笔鈥︹赌�

While the laudable intention behind the shift from RORB methodology to PBR cannot be disputed, we must also confront our scorecard for success, so to speak, in implementing a regulatory regime observed in many developed countries with stronger governance and enforcement institutions. Our experience with PBR or incentives-based methodology in the power sector, for instance, has been ad hoc and improvisational, at best.

I find merit in Dr. Navarro鈥檚 proposal to adopt what she calls a 鈥渉ybrid approach鈥� that offers a more balanced policy option. This, to my mind, allows us to still benefit from the decades of experience and jurisprudence on the RORB methodology while also developing the discipline needed among regulators and stakeholders alike for an effective incentives-based regime. For this hybrid approach, particularly for capital expenditures, Dr. Navarro suggests one 鈥渨here capital expenditures are provisionally included to support financing but only fully recognized for depreciation and return upon commissioning… International experience in liberalized markets suggests that such hybrid designs can better align investment incentives with consumer protection (e.g., 鈥榮plit CAPEX鈥� method in the UK)鈥︹�� This, of course, does not do away with ensuring that the Commission is well-capacitated to perform its job not only to make timely approvals but, perhaps more importantly, in following through on monitoring and regular validation of project completion and rate adjustments, particularly in case of unjustified project delays.

3. On coordination among institutions and grid reliability. The DoE鈥檚 push for large capacity-RE projects through the Green Energy Auction Program (GEAP) and its recent policy on energy storage solutions make coordination and alignment among the ERC, the DoE and the NGCP more crucial than ever. As clearly articulated in Dr. Navarro鈥檚 study:

鈥淚n theory, flexibility options such as energy storage, demand response, and increased interconnection can interact with transmission investment decisions. These options may reduce the need for certain transmission projects, but they also alter the risk-return profile of network investments. Well-designed market and regulatory institutions therefore are essential to ensure that transmission expansion keeps pace with system needs without imposing excessive costs on consumers.

鈥淚n the Philippine context, these theoretical concerns are evident. Transmission expansion is planned through long-term Transmission Development Plans [TDP]. But implementation faces uncertainty arising from fluctuating demand projections, delays in generation projects, rights-of-way issues, and evolving energy policies. These risks shape the incentives of the NGCP鈥nd influence the timing and scale of investments.鈥�

Alignment of generation and transmission projects was the focus of the modeling done for the study initiated in 2018 by the DoE, with the support of the US National Renewable Energy Laboratories (NREL), and completed in 2020 identifying what are now known as the Competitive RE Zones (CREZ) all over the country. The CREZ report already highlighted what it called the 鈥渢imescale misalignment鈥�: while it takes around two to three years only to construct a wind or solar project, it would typically take around 10-20 years to build a transmission project if factors such as ROW acquisition and regulatory delays are not addressed.

We also have today what we can call 鈥減roject siting misalignment鈥�: while the NGCP reports that there is currently 10 gigawatts of capacity available in the grid for generator connections, the location of these connection points may not be in the areas where RE projects awarded under the GEAP would connect, unless the TDP is aligned with the CREZ report, and the CREZ report is aligned with the GEAP design.

When project siting misalignment persists and close coordination is lacking in long-term planning between transmission and generation, we cannot have a grid that is optimally designed for cost-effective service delivery and reliability.

INCREASED COMPLEXITY
The recent grid incident in Luzon and the series of red and yellow alerts are just the latest of what we may consider as distress signals from the system itself to adopt certain reforms. As the generation profile is reconfigured with significant RE capacity, we must ensure that this actually results in improved energy security by reducing dependence on imported fuel and increasing system reliability. This means the transmission infrastructure and system operation will need to be adjusted accordingly.

This will not be easy, nor will it come without deliberate design. 鈥淭he evolution of ancillary services procurement and reserve markets highlights the importance of institutional adaptability, but it also underscores the need to carefully manage cost pass-through to consumers,鈥� Dr. Navarro observes. 鈥淎s grid complexity increases, regulatory frameworks must ensure reliability while maintaining transparency and accountability in cost recovery.鈥�

Monalisa C. Dimalanta is a senior partner at Puyat Jacinto & Santos Law (PJS Law). She was the chairperson and CEO of the Energy Regulatory Commission from 2022 to 2025, and chairperson of the National Renewable Energy Board from 2019 to 2021.

In a statement on Thursday, the recruitment consultancy said 89% of hiring managers surveyed in the Philippines identified employee disengagement as a major factor affecting workplace productivity and team dynamics.

The phenomenon, known as 鈥渜uiet cracking,鈥� involves employees continuing to fulfil their responsibilities while internally feeling disengaged, demotivated, or emotionally strained.

According to the survey findings, released alongside the Robert Walters Talent Trends 2026 report, more than 38% of Filipino professionals said they experience quiet cracking 鈥渧ery often,鈥� while nearly one in four said they encounter it occasionally.

Josua T. Mata, secretary-general of labor group Sentro ng mga Nagkakaisa at Progresibong Manggagawa, told 大象传媒 that worker disengagement is often the result of accumulated frustration, burnout, and loss of hope rather than a sudden decline in motivation.

鈥淲orkers are not 鈥榪uiet cracking鈥� because they suddenly lost motivation. Many are simply exhausted from low wages, insecure jobs, overwork, toxic workplace and the erosion of work-life balance,鈥� Mr. Mata said via Viber.

鈥淵ou cannot expect workers to remain fully engaged when they are constantly anxious about survival while being asked to do more with less,鈥� he said.

Employers seeking long-term employee engagement should go beyond workplace wellness campaigns and address issues such as living wages, job security, manageable workloads, and respect for workers鈥� dignity and rights, he added.

Kimberlyn Lu, chief executive officer at Robert Walters Southeast Asia, said in the statement that disengagement often goes unnoticed because employees may still appear productive despite dealing with prolonged pressure and uncertainty.

鈥淚f left unaddressed, these issues can erode productivity, lower morale, and lead to higher turnover rates. Employers should be proactive in identifying early signs and fostering an environment where employees feel supported,鈥� she said.

The study also found that 47% of Philippine employers are recognizing employee achievements to improve morale, while 42% are conducting regular feedback sessions to strengthen engagement within teams.

Robert Walters cited a 2025 Gallup report estimating that declining global employee engagement resulted in about $438 billion in lost productivity in 2024.

The company said workplace disengagement is evolving into what it described as an 鈥渆ngagement recession,鈥� where reduced motivation spreads across teams and weakens collaboration, creativity, and workplace culture.

Among Filipino workers surveyed, 40% identified distracted behavior and lack of focus as the most common signs of disengagement, while 33% pointed to reduced collaboration and 20% cited low participation during meetings.

The report also examined factors affecting employee retentions, with 54% of respondents saying career growth opportunities were the main reason for staying with an employer.

Flexible work arrangements were cited by 32%, while 15% said inclusive workplace culture was their priority.

Meanwhile, 56% of professionals said they preferred transformational leadership styles that encourage change and innovation, while 34% favored leaders who provide greater autonomy in the workplace.

Robert Walters said companies may need to strengthen communication, career development programs, and workplace flexibility to prevent disengagement from affecting productivity and employee retention further. 鈥� Erika Mae P. Sinaking

Promoting someone from within, whether the person comes from the same organization or within the group of companies is an excellent idea. In today鈥檚 so-called 鈥渨ar for talent,鈥� some companies have gone from head-hunting to hijacking. The battlefield has expanded to include not just competitors, but even companies under the same corporate umbrella.

It鈥檚 like raiding your cousin鈥檚 refrigerator for the last slice of cake. Technically, it鈥檚 family property 鈥� but still bad manners. So, the burning question is: Is it advisable to pirate an executive from a sister company?

Recruiting talent from within your conglomerate can be a smart move 鈥� but only if handled with transparency and tact. Otherwise, you could create animosity to make your next conglomerate convention feel like a family reunion gone wrong.

But first, better to ask your boss for approval and support. If he agrees, then go ahead talk to the boss of your candidate. Or maybe, your boss can do it for you.

RISKS
Indeed, it鈥檚 tempting to pirate someone within the group of companies. They鈥檙e already familiar with the corporate culture, its policies, systems, buzzwords, and acronyms. Training time? Practically zero. Risk of cultural mismatch? Minimal. But convenience doesn鈥檛 always mean correctness. Here鈥檚 why:

One, legal and contractual obligations. Some organizations have agreements that include non-piracy clauses, even among affiliates. That鈥檚 why you must secure the permission of one鈥檚 boss.

Even without it, the executive鈥檚 employment contract might include a non-compete or conflict-of-interest provision.

Two, breach of trust. In business, trust is the invisible glue that holds everything together. Pirating talent from an affiliate without transparency can feel like betrayal. If you break that trust, you may not be able to recover your partnership with people.

And your affiliate may perceive your move as an act of war rather than collaboration.

Three, reputational damage. The corporate world has sharp ears and long memories. Once you earn a bad reputation as a 鈥減irate,鈥� other leaders may become cautious around you. They鈥檒l lock their best people in metaphorical vaults.

When you need cross-functional support in future projects, expect a cold shoulder and longer e-mail response times, if ever they take the time to reply.

SMARTER ROUTE
Instead of outright poaching, consider collaborative talent-sharing arrangements. If you truly believe that executive talent from an affiliate can make a significant impact, there are cleaner, smarter, and win-win solutions to go about it.

Here are the things you can do simultaneously:

One, limited secondment. It could be four to six months 鈥� even longer. This is beneficial to both sides. The 鈥減irated鈥� executive gains new challenges, exposure, and skills, while his original employer retains the relationship.

Two, mentoring project. This means assigning the executive to create a training program for the young guns of the 鈥減irate鈥� organization. To entice the executive, offer a monthly allowance while continuing his current pay and benefits from his employer.

Three, exchange program. Initiate an internal job program that allows employees within the conglomerate to undergo a corporate Rigodon de Honor, a formal rotational exchange among affiliates. This is for faster career mobility for those with high potential.

HONOR
Good leaders don鈥檛 just win the war for talent 鈥� they win it honorably. Leadership isn鈥檛 about collecting the best people by any means. It鈥檚 about building a system that attract talent naturally from everywhere.

If your culture is strong, people will come to you without being lured with a golden handshake. But if your only way to fill key roles is to 鈥減irate鈥� from affiliates, it may be time to check your ship鈥檚 condition. Maybe it鈥檚 not a talent shortage. It could be that you鈥檙e not doing enough to train your people so they become promotable.

After all, piracy, even when successful, rarely earns applause. Collaboration and transparency in creating a dynamic management development program gives you stronger, more sustainable organizations.

In the modern talent marketplace, companies are learning that the real competitive advantage isn鈥檛 in stealing good people 鈥� it鈥檚 in developing them. If you need a rare talent, then create one. Mentor a rising star. Cultivate your own people. It鈥檚 better to be known as a talent builder than a talent pirate.

Consult Rey Elbo for free insights on people management. Send your question or story to elbonomics@gmail.com or听DM him on Facebook, LinkedIn, X or听.

Justice Secretary Fredderick A. Vida on Thursday said state authorities, including the Philippine National Police and the National Bureau of Investigation, are now mandated to enforce the arrest warrant after the senator left Senate custody.

鈥淪enator Bato is a fugitive from justice, and he should be brought to the ICC to face the charges,鈥� he told reporters.

The directive follows a Supreme Court ruling that declined to issue a temporary restraining order that would have blocked the ICC warrant鈥檚 implementation, effectively removing judicial barriers cited by the defense.

Mr. Vida said the government had refrained from acting due to the Senate鈥檚 protective custody arrangement, but that cover ended when Mr. dela Rosa, who enforced former President Rodrigo R. Duterte鈥檚 deadly drug war as his national police chief, left the premises on May 14.

He rejected suggestions that authorities were mounting a 鈥渕anhunt,鈥� describing such terminology as unnecessary, while confirming that intelligence operations and coordination among agencies were underway.

Law enforcement units have been ordered to conduct intelligence gathering, operational planning and counterintelligence work to determine the senator鈥檚 location. Authorities also warned that people helping in evasion could face legal consequences.

An Immigration Lookout Bulletin Order remains in effect, according to the DoJ, preventing Mr. dela Rosa from leaving the country while efforts to secure custody continue.

DoJ spokesman Raphael Niccolo L. Martinez said the government might also pursue an Interpol Red Notice as part of international coordination efforts.

鈥淭hat is a remedy available to us,鈥� Mr. Martinez said, adding that a domestic hold departure order could not be issued without a pending case before a Philippine court.

The DoJ maintained that enforcement of the ICC warrant aligns with the Philippines鈥� obligations under the Rome Statute despite its withdrawal from the treaty in 2019, citing continuing legal exposure linked to alleged crimes committed while the country was still a party.

The ICC has accused Mr. dela Rosa of crimes against humanity of murder as a co-perpetrator in Mr. Duterte鈥檚 drug war, covering incidents between 2011 and 2019.

Judges of the ICC鈥檚 Pre-Trial Chamber I found reasonable grounds to believe he bore responsibility for killings between July 2016 and April 2018, involving at least 32 deaths, according to the warrant summary.

Mr. dela Rosa鈥檚 legal team said it would file a motion for reconsideration and exhaust all remedies to block enforcement, arguing that the warrant lacks domestic enforceability.

The Office of the Solicitor General (OSG) said the Supreme Court鈥檚 denial of injunctive relief confirms there is no legal impediment to executing the arrest order.

It said Mr. dela Rosa failed to show a clear and unmistakable right, an imminent violation or urgent and irreparable harm that would justify court intervention. It also noted that the Criminal Investigation and Detection Group subpoena cited in earlier filings had been withdrawn.

The OSG said it is awaiting the full Supreme Court ruling to clarify remaining legal issues.

Families of drug war victims, represented by the advocacy group Rise Up for Life and Rights, urged the international community to support swift enforcement of the ICC warrant.

They said their pursuit of accountability followed years of impunity and denial of justice domestically.

鈥淚n the interest of justice, respect for due process, and the healing of our families and communities, Senator Bato dela Rosa should be arrested and surrendered to the ICC immediately,鈥� the group said in a statement. 鈥� Erika Mae P. Sinaking

鈥淒on鈥檛 worry because this is not a one-time thing,鈥� he told fire-hit residents of Obando, Bulacan in Filipino on Thursday. 鈥淲e will provide 10 kilos of rice every two months, six times a year, repeatedly.鈥�

About 2,000 residents received 10-kilo rice packs during Thursday鈥檚 distribution in the province.

Mr. Marcos said stronger coordination with local government units (LGUs) is key to improving delivery through the Local Government Support Fund (LGSF), which he said has been underused.

鈥淚f results are good, we will try the LGSF and the Socio-Civic Development Program for the village,鈥� he said.

He added that budget allocations could be increased next year if implementation proves effective at the local level.

鈥淚f we are doing well and see implementation is good, I will increase the budget so we can help more people,鈥� he said.

Under the Socio-Civic Development Program, each village receives P200,000, with half allocated to five presidential scholars per village, each receiving P20,000 from the Office of the President.

Mr. Marcos said education remains a central priority of the administration鈥檚 social development agenda.

鈥淚 tell them to make good use of that funding so they can graduate,鈥� he said. 鈥淲hen it鈥檚 their time to become leaders鈥� they are ready and trained.鈥�

He said education is a right, not a privilege, and the government is expanding health access and nutrition programs and school-based feeding initiatives.

The administration is rolling out targeted subsidies to cushion households from rising prices linked to global supply shocks, including the Middle East war. Mr. Marcos recently ordered a P50 cap on imported rice prices to ease food inflation.

He also addressed the landfill fire in Obando that affected nearby communities in April, saying the blaze took more than three weeks to extinguish after spreading underground.

He warned about health risks from burning plastics and said authorities would tighten monitoring of dumpsites during dry season to prevent similar incidents.

Mr. Marcos said the administration is assessing local execution capacity to determine whether expanded transfers could be sustained across provinces, noting that stronger implementation would justify higher allocations under existing fiscal programs.

The initiative forms part of a broader effort to streamline social assistance delivery by channeling funds directly through LGUs while maintaining national oversight on targeting and monitoring.

It also reflects the administration鈥檚 push to strengthen fiscal efficiency by reducing administrative bottlenecks that delay distribution of aid in disaster-affected and low-income communities. 鈥� Chloe Mari A. Hufana

Senator Erwin T. Tulfo said the timeline was discussed during a caucus, where senators mapped out a weekly schedule for the impeachment court.

鈥淲e鈥檙e looking at July 6, the impeachment trial may start earlier than expected, pre-SONA (State of the Nation Address),鈥� he told reporters.

He said Mondays would combine regular plenary work with trial sessions, while Tuesdays and Wednesdays would be dedicated to impeachment proceedings.

Thursdays will be reserved for committee hearings, while Fridays will be used for motions and other chamber matters unless additional hearings are required.

鈥淭he day off of the senators will only be Saturday and Sunday,鈥� he said.

Mr. Tulfo said the schedule could constrain legislative work as the chamber allocates more time for the trial.

The impeachment court convened on May 18, with Senate President Alan Peter S. Cayetano sitting as presiding officer.

The court summoned Ms. Duterte and gave her 10 days to respond. The prosecution was given a nonextendible five-day period to reply once her response is filed.

The Office of the Vice-President confirmed receipt of the summons on May 20.

The House of Representatives impeached Ms. Duterte on May 11 with 257 votes, alongside 25 opposition votes and nine abstentions.

House Secretary-General Cheloy Velicaria-Garafil sent the articles of impeachment to the Senate on May 13.

Ms. Duterte faces allegations of misuse of public funds and threats against the President, First Lady Marie Louise Araneta-Marcos and former Speaker Ferdinand Martin G. Romualdez. She has denied the charges.

A conviction in the Senate impeachment court would bar her permanently from holding public office.

Ms. Duterte was previously impeached in 2025, but the Senate archived the case after a Supreme Court ruling cited the one-year bar rule on repeat impeachment filings.

Meanwhile, Batangas Rep. Gerville R. Luistro opposed proposals allowing online participation of senator-judges in the proceedings, saying impeachment requires full in-person attendance.

鈥淢y humble submission about this issue is that senator-judges must personally witness the trial and personally vote because this process is very important,鈥� she said in a statement in mixed English and Filipino.

The statement came after Senator Rodante D. Marcoleta suggested that Senator Ronald M. dela Rosa could be allowed to participate and vote via Zoom if necessary.

Mr. dela Rosa, who is known to be close to the Duterte family, had earlier taken refuge in the Senate after reports of an International Criminal Court arrest warrant linked to the previous administration鈥檚 anti-drug campaign, before later returning to participate in a vote that led to a change in Senate leadership.

Ms. Luistro stressed that senator-judges must be physically present to properly assess evidence and witness credibility.听

鈥淚t is very important that senator-judges personally see each witness,鈥� she said, adding that reviewing documents and video evidence requires direct scrutiny.

鈥淚t is difficult to leave such a critical decision based only on online voting or remote participation,鈥� she added. 鈥� Kaela Patricia B. Gabriel and Pexcel John Bacon

THE MORATORIUM on approving new economic zones in Metro Manila is restricting the flexibility of IT and business process management (IT-BPM) companies in selecting office locations, Savills Philippines said.

Savills Philippines Chief Operating Officer Cha Carbonell told 大象传媒 via Viber on Thursday that while the Metro Manila office market 鈥渉as a headline vacancy of around 20%鈥� once you apply the filters that creditworthy multinational corporations (MNC) and business process outsourcing (BPO) occupiers require 鈥� PEZA accreditation, green certification, business continuity plan (BCP)-grade specifications 鈥� that figure drops sharply.鈥�

Administrative Order (AO) No. 2018, signed by former President Rodrigo R. Duterte, instructed the Philippine Economic Zone Authority (PEZA) to no longer accept, process, or evaluate applications for new ecozones in Metro Manila to channel investment to areas outside the capital.

Ms. Carbonnell said the policy may no longer be a good fit given the current demand for high-quality, PEZA-compliant spaces.

The core business districts have only 478,000 square meters (sq.m.) of such space available combined, including 119,000 sq.m. in the Ortigas central business district (CBD), 160,000 sq.m. in the Makati CBD, and 199,000 sq.m. in Bonifacio Global City (BGC).

When asked if major locators are migrating to secondary CBDs, or choosing to forgo PEZA incentives to remain in primary districts, Ms. Carbonell said the large occupiers with PEZA registered status, are almost universally not interested in giving up the incentives.

鈥淲hat we are seeing instead is a more structured migration rationale toward secondary districts, driven by鈥� employee accessibility, cost arbitrage (secondary district rents run roughly 20-40% below BGC and Makati), and BCP considerations where companies want to split requirements across multiple hubs,鈥� Ms. Carbonell said.

The supply gap is forecast to worsen in the coming years, with only 711,000 sq.m. of upcoming office stock being PEZA-certified, according to the Colliers first quarter 2026 Property Market Briefing.

Colliers called AO 18 a 鈥渂lunt policy tool鈥� given that Metro Manila is the primary driver of the office sector, accounting for around 70% of IT-BPM transactions in the first quarter.

鈥淣on-PEZA, non-green buildings are already carrying a vacancy rate of approximately 30%, and the trajectory is upward. The structural demand drivers are firmly against this segment: the most creditworthy occupiers will not enter them, and even government office take-up鈥� is unlikely to absorb the volume at risk,鈥� Ms. Carbonell said when asked about the occupancy outlook for non-PEZA office buildings.

In a statement, the DA said it discovered eight projects valued at P94 million in the province, with the officials allegedly falsifying documents to declare the projects complete, facilitating the release of public funds.

The complaints over what the DA described as 鈥済host鈥� projects, filed on Thursday at the Office of the Ombudsman, include corrupt practices, malversation, falsification of public documents, grave misconduct, and serious dishonesty.

The complaints cite violations of Articles 217, 171, and 172 of the Revised Penal Code concerning malversation through falsification of public documents, Section 3(e) of Republic Act 3019 (Anti-Graft and Corrupt Practices Act), and administrative offenses including grave misconduct and serious dishonesty.

The DA is now the lead agency for FMRs after the DPWH was stripped of responsibility for building them in the wake of the infrastructure corruption scandal of 2025.

Validation of the projects was carried out by the DA鈥檚 Internal Audit Service (IAS), which has inspected at least 1,200 FMR projects in Regions III, IV-A, V, IX, X, and XI.

Those charged face potential penalties of imprisonment of up to 40 years, fines, and perpetual disqualification from public office. 鈥� Pierce Oel A. Montalvo

The National Grid Corp. of the Philippines (NGCP) said the yellow alert for the Visayas was in effect between 4 p.m. and 9 p.m. on Thursday.

A yellow alert is issued when supply margins are insufficient to meet the transmission grid鈥檚 contingency requirement.

During the period, available capacity stood at 2,670 megawatts (MW) against peak demand of 2,479 MW.

Remaining on forced outage were 19 power plants, with 14 plants derailed. Overall, 867 MW was unavailable to the grid.

NGCP said the unavailability of large coal-fired power plants in the Visayas and high forecasted power demand triggered the yellow alert.

This year, the grid operator has issued a total of 15 yellow alerts and six red alerts in Luzon and the Visayas.

Mark Anthony Ynoc, former president of Mandaue Chamber of Commerce and Industry, called the consecutive yellow alerts in the Visayas deeply concerning.

鈥淭hese incidents reflect the need for stronger long-term energy planning, more aggressive investment in power generation, and improvements in transmission infrastructure,鈥� Mr. Ynoc said in a statement on Thursday.

鈥淩eliable and affordable power is critical to sustaining economic growth and business confidence in the region,鈥� he added.

Mr. Ynoc said higher power rates and recurring outages affect productivity, increase the cost of consumer goods and disrupt operations.

鈥淭hese challenges ultimately weaken the competitiveness of businesses in Cebu and the Visayas,鈥� he said. 鈥� Sheldeen Joy Talavera

The Philippine Stock Exchange index (PSEi) rose by 0.46% or 27.3 points to close at 5,920.70 on Thursday, while the broader all shares index fell by 0.12% or 4.03 points to end at 3,335.85.

鈥淭he local market ended higher after four straight days of decline as selective bargain hunting emerged among investors. However, market participants still looked to remain engaged in short-term positions amid cautious sentiment. Gains were trimmed in the afternoon session as selling pressure resurfaced, limiting the market鈥檚 upside,鈥� Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

鈥淭he local market rose taking cues from Wall Street鈥檚 rally overnight. US President Donald J. Trump鈥檚 statement saying that the US and Iran are already on the final stages of negotiation sparked hopes that a peace deal would be coming soon,鈥� Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

Iran said on Thursday it was reviewing Washington鈥檚 latest position on ending the war after Mr. Trump suggested he was prepared to wait a few days to 鈥済et the right answers鈥� from Tehran but warned of renewed attacks if it did not agree to a deal, Reuters reported.

Six weeks since a fragile ceasefire came into force, talks to end the war have shown little progress, while soaring oil prices have raised concern over inflation and the impact on the global economy.

Iran submitted its latest offer to the US this week. Tehran鈥檚 descriptions suggest it largely repeats terms Mr. Trump previously rejected, including demands for control of the Strait of Hormuz, compensation for war damage, lifting of sanctions, release of frozen assets and the withdrawal of US troops.

Back home, most sector counters closed higher on Thursday. Services jumped by 1.22% or 36.68 points to 3,027.05; mining and oil increased by 0.56% or 99.86 points to 17,658.63; holding firms went up by 0.41% or 17.99 points to 4,390.3; property climbed by 0.2% or 3.89 points to 1,915.02; and financials rose by 0.2% or 3.51 points to 1,762.14.

Meanwhile, industrials fell by 0.61% or 52.61 points to 8,524.78.

Decliners beat advancers, 99 to 69, while 65 names were unchanged.

鈥淏ank of the Philippine Islands was the day鈥檚 index leader, climbing 2.76% to P89.50. Monde Nissin Corp. was the main index laggard, falling 3.66% to P6.84,鈥� Mr. Tantiangco said.

Value turnover went up to P6.58 billion on Thursday with 1.03 billion shares traded from the P5.67 billion with 1.24 billion issues that changed hands on Wednesday.

Net foreign selling increased to P190.76 million from P115.32 million in the previous session. 鈥� Alexandria Grace C. Magno with Reuters

TAKING GAME 1 doesn鈥檛 guarantee anything. But it could well serve as a momentum builder and good foundation for success in such a tightly fought series that could go the full route.

鈥淚t鈥檚 really encouraging to win Game 1 against a tough team like Ginebra. It can boost morale,鈥� said Rain or Shine (ROS) coach Yeng Guiao, quick to temper the celebration. 鈥淏ut series eh, it鈥檚 a seven-game series. They鈥檙e very talented and very experienced in a situation like this.鈥�

The Elasto Painters look to draw momentum from their 115-111 opening W as they seek to double their lead in the race-to-four Final Four series in Friday鈥檚 Game 2 at the SM MOA Arena.

鈥淚鈥檓 really proud of the guys because they show up and compete against a team like Ginebra, with the GOAT (greatest of all time) import (Justin Brownlee), GOAT coach (Tim Cone), half of the Gilas team and the probable Best Player of the Conference (RJ Abarrientos) in their team,鈥� Mr. Guiao said.

Like ROS, defending champion TNT is out to make it 2-0 versus Meralco following Wednesday鈥檚 94-89 win.

The Tropang 5G have been showing their championship caliber in the playoffs, with local aces Calvin Oftana, RR Pogoy, Jayson Castro and Jordan Heading connecting stronger with Bol Bol and giving their fancied import big helping hand.

TNT mentor Chot Reyes said having a full, healthy complement has been key.

鈥淲e were struggling the whole conference trying to find that combination and that balance (between Mr. Bol and the locals) but remember, we were never fully healthy in the eliminations,鈥� he said.

鈥淔ortunately, as the eliminations wound down, we got Roger (Pogoy) back to 100% healthy and I think what you鈥檙e seeing now is being able to finally put the combinations that we want together.鈥�

Their respective rivals remain defiant.

鈥淭hey (TNT) had six losses in the elimination round so they are beatable. And we just have to play probably a little bit more disciplined than we did on Wednesday,鈥� said Bolts active consultant Nenad Vucinic after their opening loss. 鈥� Olmin Leyba

But the way Bernadeth Pons and Sisi Rondina battled in the Volleyball World Beach Pro Tour, they showed they deserved to be there.

鈥淢argins this small only prove one thing, we belong on this stage,鈥� said a proud Ms. Pons right after their pulsating 21-19, 21-17 defeat to Denmark鈥檚 Cirkeline Roed Hog and Sofia Norager Bisgaard in Nuvali in Sta. Rosa, Laguna on Thursday.

The Southeast Asian Games gold medalists didn鈥檛 let the star-studded event intimidate them a bit and brought everything on the table, and made their more experienced Danish foes work a little harder in the event considered as the first of many roads to the 2028 Los Angeles Olympics.

It was a result that pushed the Filipinas on the brink of elimination though.

Ms. Pons, who is back on the sands after helping steer Creamline to the PVL All-Filipino Conference crown a month ago, vowed to get back on track when they face Swiss Annique Niederhauser and Menia Bentele, needing a victory to advance to the next round.

鈥淲e dust ourselves off and come back stronger, on to the next,鈥� she added.

Interestingly, Mses. Niederhauser and Bentele edged Mses. Pons and Rondina in their one and only meeting thus far last year in a heartbreaking 18-21, 24-22, 25-12 result also on this same grounds.

Also coming through were Lithuanians Gerda Grudzinskaite and Ieva Dumbauskaite, who smashed Hungarians Lilla Villam and Stefania Flora Kun, 22-20, 21-14.

In men鈥檚 action, American Chase Budinger, a former American player who transitioned to the sport where he eventually became an Olympian, partnered with Trevor Crabb in decimating Canadians Luke de Greeff and Tynan Gannett, 21-9, 21-13.

Ukrainians Valentyna Davidova and Anhelina Khmil downed Mses. Niederhauser and Bentele, 20-22, 21-13, 15-11, to set a duel with Mses. Bisgaard and Hog.

Paris 2024 Olympians Monika Paulikiene and Aine Raupelyte of Lithuania survived wildcards Marie-Alex Belanger and Amy Ozee of Canada, 21-18, 20-22, 15-12, to stay in the hunt.

Men鈥檚 top seed players Eylon Elazar and Kevin Cuzmiciov of Israel opened their title quest with a 21-14, 21-15 rout of Denmark鈥檚 Kristoffer Abell and Christian Andersen. 鈥� Joey Villar

THE PHILIPPINE government should maximize public-private partnerships (PPP) to help narrow the country鈥檚 infrastructure gap while easing fiscal pressure from rising debt levels, the Asian Development Bank (ADB) said.

Despite the government鈥檚 infrastructure catch-up programs, gaps remain as rapid urbanization and economic growth continue to drive demand, ADB Country Director for the Philippines Andrew Jeffries told 大象传媒 on Wednesday.

鈥淭here is an infrastructure gap in the Philippines鈥� The population of Metro Manila has grown so much over a few decades, so investment in urban transport needs to catch up,鈥� he said.

Mr. Jeffries said both the current administration鈥檚 鈥淏uild Better More鈥� program and the previous administration鈥檚 鈥淏uild Build Build鈥� initiative were aimed at addressing years of underinvestment.

鈥淎s the Philippines grows, population-wise, gross domestic product (GDP)-wise, transport needs to keep growing as well,鈥� he said.

鈥淎nd with what鈥檚 happening now with diesel fuel prices and all, alternatives for public transport become part of that longer-term solution,鈥� he added.

However, Mr. Jeffries said infrastructure catch-up efforts are facing challenges from fiscal pressures and budget constraints.

鈥淭he government is keeping a very close eye on public debt levels, so how to bring the private sector into some of these investments as opposed to just government budget and borrowing, I know, is very important to this government,鈥� he said.

The country鈥檚 debt-to-GDP ratio reached 65.2% in the first quarter, the highest level since 2005. This comes as the National Government鈥檚 outstanding debt climbed by 1.8% to P18.49 trillion as of end-March from P18.16 trillion at the end of February.

Mr. Jeffries said that bringing in private investment ensures that 鈥減ublic debt levels can be maintained or reduced over time as opposed to that being the only funding source.鈥�

鈥淭here is a lot of private infrastructure already in this country. And the key is how to make sure it鈥檚 done well so that the government and the people are getting the best value for money,鈥� he added.

According to the PPP Center, the PPP pipeline as of May 19 consists of 250 projects valued at P3.13 trillion.听 The railway sector accounted for P1.97 trillion of the project pipeline, followed by land transport (P277.26 billion) and property development (P221.46 billion).

TRANSPORT PROJECTS
Meanwhile, Mr. Jeffries said transport projects will continue to account for a significant share of ADB鈥檚 financing portfolio in the Philippines in the near term.

The multilateral lender鈥檚 portfolio of projects under construction and implementation in the Philippines is valued at $12.5 billion.

鈥淥ur transport portfolio exceeds $7 billion, so that鈥檚 obviously a nice large percentage of our overall portfolio in the Philippines,鈥� he said.

鈥淭hat is really because of some extremely large projects we are funding鈥� From a dollar point of view, transport is clearly our largest in our portfolio here in the Philippines,鈥� he added.

These projects include the North-South Commuter Railway, Bataan-Cavite Interlink Bridge, Laguna Lakeshore Road Network Project, and Davao Public Transport Modernization Project.

Asked if ADB is considering additional transport projects, Mr. Jeffries said that 鈥渂ecause they (the projects) are so large and it takes considerable time, we鈥檙e funding those in time-sliced tranches.鈥�

鈥淪o, we have a robust pipeline going forward, just seeing those projects through to completion… We are focusing a lot on implementing what we already have,鈥� he added.

Mr. Jeffries said the government is exploring ways to attract more private investment into the transport sector amid fiscal pressures stemming from the Middle East crisis.

鈥淲ith the fiscal issues with this Middle East crisis and so on, the government is also looking actually at how to bring more private sector investment into this sector,鈥� he said.

鈥淪o, we don鈥檛 have new big projects specifically in our pipeline at this time,鈥� he added.

Mr. Jeffries said transport projects are likely to remain a major part of ADB鈥檚 Philippine portfolio over the next few years as the government prioritizes completing existing projects.

鈥淚 think that proportion will stay more or less the same for the next few years, especially now that the government is very worried about the trade-offs and the fiscal and the public debt levels,鈥� he said.

鈥淭hey want to focus on implementation and reaching completion of what is already ongoing because until they are done and in operation, they are not benefiting the people,鈥� he added.

FINANCING GAP
The infrastructure and investment gap is not unique to the Philippines. In its Asian Transport 2035 Outlook, the Asian Transport Observatory (ATO) said annual investment demand for transport infrastructure in Asia and the Pacific is expected to more than triple over the next decade.

鈥淎nnual investment needs across all transport modes will climb from roughly $800 billion per year during 2000-2025 to approximately $2.6 trillion per year between 2025 and 2035,鈥� the ATO said.

鈥淭hat is equivalent to 2.3% of LMIC (lower- and middle-income countries鈥�) GDP per year,鈥� it added, referring to those in Asia and the Pacific.

However, the ATO said the projection remains conservative as it only reflects current trends and existing project pipelines.

鈥淎ctual needs, accounting for the full cost of the energy transition, the climate adaptation backlog, and the SDG (Sustainable Development Goals) access deficit, are likely to be considerably higher,鈥� it added.

Despite this, the ATO said the region still faces a large financing gap.

鈥淒evelopment banks can do things commercial investors cannot 鈥� blend concessional and market-rate lending, absorb early project risk, and attach technical assistance to pipelines that would otherwise stall at the feasibility stage,鈥� it said.

鈥淏ut there is a limit to what external finance can do. The long-run answer to Asia鈥檚 transport financing gap is stronger revenue systems and public finance reform. We are not just facing an infrastructure gap, but also an investment and governance gap,鈥� it added.

SINGAPORE 鈥� Soaring fuel and fertilizer costs linked to the Middle East conflict, coupled with drier-than-usual conditions, are putting increasing pressure on domestic rice production and threatening the Philippines鈥� food security, according to the International Rice Research Institute (IRRI).

鈥淩ising fuel and fertilizer costs driven by Middle East tensions, along with the emerging threat of El Ni帽o, weigh heavily on agricultural production and rice farmers,鈥� IRRI Director-General Yvonne Pinto told 大象传媒 on the sidelines of the Philanthropy Asia Summit on Tuesday.

鈥淭he prospects for food security in the Philippines in two, three years from now are going to be much worse, unless we support and enable farmers to generate income from the rice they are producing,鈥� she said.

Filipino farmers are now grappling with rising costs and unstable supply of fuel and fertilizer, which are essential to rice production, Ms. Pinto said.

The closure of the Strait of Hormuz has affected global supply of fertilizer and caused prices to spike. The Middle East is a hub for fertilizer production. In particular, the supply of urea from the world鈥檚 largest production facility in Qatar has been stopped due to the conflict.

For instance, the cost of urea, a nitrogen-based fertilizer, is 33% higher today, she noted.

Urea (prilled) prices averaged P2,607.42 per 50-kilogram (kg) bag between May 11 and May 15, significantly higher than the P1,686.03 per 50-kg bag in the same period last year, according to data from the Fertilizer and Pesticide Authority.听

鈥淪o, these geopolitical tensions really escalate the costs,鈥� Ms. Pinto said. 鈥淲hat the government may have to do is provide safety nets to farmers so that they can afford them.鈥�

Before the Iran war, the Philippine Department of Agriculture (DA) projected palay (unmilled rice) output to reach 20.28 million metric tons (MT) this year, under favorable weather conditions. This has been lowered to 19.87 million MT due to the Middle East conflict and the looming El Ni帽o.

Ms. Pinto said the El Ni帽o phenomenon threatens to disrupt the country鈥檚 rice production in the next few months.

The Philippine Atmospheric, Geophysical and Astronomical Services Administration recently warned of the possibility of a moderate to severe dry spell from June until early next year.听 听

The DA also estimated that agricultural output could be slashed by as much as 30% under a 鈥淪uper El Ni帽o鈥� scenario.

In 2024, total damage to agriculture due to El Ni帽o reached P15.3 billion, affecting 333,195 farmers and fisherfolk nationwide.

Ms. Pinto said there is a need to focus on reducing labor costs for rice production through better seed distribution, mechanization, and fertilizer supply.

In the medium and long terms, she called for capacity-building for fertilizer production and nature-based solutions like composting to improve affordability for farmers.

鈥淥ur analysis tells us we only need to raise yields by one ton per hectare,鈥� Ms. Pinto said. 鈥淔rom all of the strategies I mentioned, it is achievable.鈥�

She also emphasized better coordination between national and local governments to ensure farmers benefit from agricultural policies.

The country鈥檚 rice self-sufficiency ratio, which measures the capacity of local production, dropped to 71.7% in 2024, according to the Philippine Statistics Authority. The ratio was the lowest in 37 years, or since the data series began in 1988.

With the Philippines facing another El Ni帽o this year, farmers should have increased access to early warning systems, alternative wetting and drying solutions, and irrigation equipment, Ms. Pinto said.

鈥淭hese shocks are going to continue, so we鈥檝e got to develop architecture that supports farmers to stay in farming to enable the Philippines to be food secure,鈥� Ms. Pinto said.听 听

For the past 65 years, IRRI has worked closely with the Philippine government through science-based innovations to help reduce hunger and poverty through rice. Headquartered in Laguna, the organization promotes sustainable agricultural production, improved nutrition, and stronger livelihoods for farmers.

Sharon O. Monta帽er, ERC鈥檚 director for market operations service, said the extension of the suspension will depend on the status of the GEA-All fund.

鈥淪o next month, we鈥檙e going to assess again if there are (enough) funds. If we see that there鈥檚 still difficulty in the payment of the bills, or electricity rates are quite high compared with previous months, and if there is sufficient balance in the fund to suspend, we can extend the suspension,鈥� she told reporters on the sidelines of the 大象传媒 Economic Forum on May 18.

Earlier this month, the ERC ordered to temporarily halt the collection of GEA-All from May to June to ease the financial burden on consumers amid rising inflation and global economic pressures.

GEA-All is a uniform charge amounting to P0.0371 per kilowatt-hour (kWh) that is passed on to on-grid consumers. It is a separate line item in the bills of consumers that started in January 2026.

The amount collected is used to fund the incentives of new renewable energy (RE) projects being awarded under the green energy auction program (GEAP).

As of May 5, GEA-All Fund maintains a balance of approximately P466.49 million, which is sufficient to cover the projected payment requirements of eligible RE developers during the suspension period, according to the ERC.

鈥淚f the crisis extends again, then, definitely, the commission will look into that (extension of the suspension) as it has always been one of the tools to relieve customers,鈥� Ms. Monta帽er said.

Meanwhile, Ms. Monta帽er said the ERC is not looking to suspend the feed-in tariff allowance (FIT-All). She noted there are no excess funds as the funds are only enough to cover payments to RE developers.

鈥淭here鈥檚 no sufficient buffer for FIT-All. It鈥檚 only enough to pay for the RE developers,鈥� she said.

FIT-All is another RE charge amounting to P0.2011 per kWh that is separate from GEA-All which is being paid by consumers to support emerging RE technologies.

Nic Satur, Jr., chief advocate officer of consumer group Partners for Affordable and Reliable Energy, argued that GEA-All should be permanently removed, as consumers have been shouldering expensive power rates.

鈥淚 believe that GEA-All has no legal basis and it should not be collected from consumers,鈥� Mr. Satur told 大象传媒. 鈥淲e support our move towards clean energy but not at the expense of consumers.鈥�

Mr. Satur said that consumers have suffered 鈥渓ong hours of brownout, expensive electricity rate and poor service鈥� but are continuously burdened by pass-through charges, including GEA-All and FIT-All.

The crisis in the Middle East has pushed global oil prices higher, increasing power generation costs in the Philippines and driving up electricity rates.

To provide relief to consumers, the regulator directed distribution utilities to suspend electricity service disconnections and to implement staggered or deferred payment schemes.

The suspension covers unpaid electricity bills for both residential and nonresidential consumers covering the May-to-July billing periods.

Customers with a monthly consumption not exceeding 200 kWh may defer payment of their bills and settle them on a staggered basis over three months from receipt of the bill. 鈥� Sheldeen Joy Talavera

In a statement on Wednesday, the Razon-led global port operator said the funding will support infrastructure improvements at the Manila International Container Terminal (MICT), the South Luzon Container Terminal (SLCT), which remains under development, and the Mindanao Container Terminal (MCT).

ICTSI said the transaction marks AIIB鈥檚 first non-sovereign-backed deal in the Philippines.

The company also said the investments are expected to help raise annual throughput capacity and improve berth productivity across the terminals.

Under the project, MICT鈥檚 capacity is targeted to reach 3.7 million twenty-foot equivalent units (TEUs) by 2027, while MCT and SLCT are projected to expand capacity to one million TEUs and 800,000 TEUs, respectively, by 2028.

鈥淚CTSI welcomes this promising partnership with the AIIB, which supports our expansion and sustainability initiatives,鈥� ICTSI Chairman and President Enrique K. Razon, Jr. said.

鈥淲e value AIIB鈥檚 shared commitment to long-term value creation, inclusive economic growth and responsible business practices, and as such, look forward to strengthening our partnership and accomplishing more together,鈥� he added.

AIIB Chief Officer Yong Zhou said the transaction highlights the multilateral lender鈥檚 support for infrastructure development through private sector financing.

鈥淭his transaction demonstrates how AIIB can support infrastructure development by deploying innovative financing instruments and working closely with global operators who have the scale and execution capacity to deliver impact for the people we serve,鈥� he said.

For the first quarter, ICTSI reported a 22.56% increase in attributable net income to $293.57 million, driven by higher cargo volumes and contributions from new terminals.

Gross revenues rose 28.94% to $961.11 million during the January-to-March period from $745.42 million a year earlier.

Shares in ICTSI climbed P5.50 or 0.69% to close at P800 each on Wednesday. 鈥� Ashley Erika O. Jose

CHICAGO 鈥� Boomi, the data activation company, wants to help enterprises make their data ready for the artificial intelligence (AI) world.

鈥淥nly 7% of your organization鈥檚 data is AI ready today. AI-ready being things like contextual, consistent, etc. And these projects, they鈥檙e going to be abandoned unless you have your data activated and ready,鈥� Steve Lucas, Boomi chairman and chief executive officer (CEO), said in a keynote speech during Boomi World here on May 13. 鈥淏ut we can help. We can do this together.鈥�

Boomi currently moves twice the amount of data per second for its 30,000 customers than Visa does every day, he said.

鈥淲hen I looked at that number, I realized we are way more about the journey for the data than the destination. At Boomi, our job is to help you move data, get information to the right place, to the right people, to the right agents… with quality and context,鈥� Mr. Lucas said.

The Boomi CEO said data activation is critical to the success of any enterprise, as the data will be activated not just for human intelligence but for AI.

鈥淲e want to put you at the center of the center, that center of data. Automation, integration, and AI. And that鈥檚 what we鈥檙e focused on with Boomi as the data activation company,鈥� Mr. Lucas said.

鈥淒ata is not the new oil… Data is simply sand. There are tons of it. Not all of it鈥檚 useful, but we can do amazing things with it. We can turn sand into chips, silicon. We can do these things with data, but it鈥檚 only if you put it to work. It鈥檚 only if you activate that data,鈥� he said.

With all the hype about AI, Mr. Lucas emphasized that AI needs to translate into real return on investment (RoI).

鈥淣o matter how good AI is, if RoI doesn鈥檛 exist, it won鈥檛 matter. Who cares if it鈥檚 more creative… The RoI must exist for AI,鈥� he said.

He noted that around 95% of AI projects miss RoI, because 鈥渋t鈥檚 just too easy to start鈥� with no planning and analysis.

鈥淥ur job is to find value in RoI. Our job is to not brag about numbers. Our job is to help you become the center of the universe where data, automation, integration, and AI, where they converge,鈥� Mr. Lucas said.

In terms of RoI, he said they are looking at time savings and productivity boosts.

鈥淎re we saving people time? Time equals capacity for our sellers, for our marketers, for our engineers…听 I would say that we have solidly saved 100,000 or so hours per year at Boomi worth of productivity,鈥� he said.

鈥淲e are still growing. What we鈥檙e realizing is that we can produce more products and support more customers with the same number of people that we have. So, if anything, I would say that productivity or all of this AI has led us to a greater ambition for our growth. That鈥檚 the RoI,鈥� he added.

ENTERPRISE PLATFORM
Meanwhile, Boomi announced a major expansion of its enterprise platform to support modern, AI-driven environments.

At Boomi World, the company said it was adding new capabilities across orchestrated agentic workflows, agentic engineering, governed agent connectivity, grounded agent context, and localized agent infrastructure.

These innovations are expected to power the agentic enterprise, 鈥渨here agents and humans work together to drive action and operationalize AI at scale,鈥� it said.

鈥淓very enterprise transformation has a platform moment. For agentic AI, that moment is now. Customers don鈥檛 need more disconnected tools; they need an active data foundation that connects data, orchestrates workflows, and governs AI for people and agents. With these new innovations, we鈥檙e extending the Boomi Enterprise Platform to make that foundation a reality,鈥� Ed Macosky, chief product and technology officer at Boomi, said.

With an acceleration in AI adoption, many enterprises are having problems in scaling beyond initial use cases because of fragmented systems and lack of operational infrastructure.

Boomi introduced new innovations to address these issues faced by enterprises.

Boomi Connect provides secure, governed connectivity between AI tools and enterprise applications through model context protocol (MCP)-enabled tools, while Boomi AI Gateway enables built-in policy enforcement, cost controls, and observability.

The MCP Registry allows enterprises to scale AI with control and manage MCP servers across Boomi.

Boomi Orchestrate allows customers to turn business ideas into enterprise-grade agentic workflows, while Agent SIM lets organizations simulate and validate agent behavior before deployment.

Boomi Companion is touted to accelerate agentic engineering on the Boomi platform. It is a collection of open-source agent skills that allow developers to design, build, test, deploy, and diagnose integrations through natural language using AI tools that they prefer.

With Agentstudio, developers can invoke Boomi agents from any architecture or pipeline, while non-technical users can securely surface them within custom apps and portals.

Boomi Knowledge Hub provides a single, unified context layer to ensure AI agents and people always work from trusted, up-to-date information.

Boomi Meta Hub grounds AI agents and people in expert-endorsed business definitions that improve agent accuracy, eliminate fragmented interpretations, and ensure consistent business logic at scale.

Distributed Agent Runtime reduces cloud latency and controls costs by deploying agents on-premises while keeping sensitive data behind the firewall.

Agentstudio Multi-region Instances allow enterprises to scale agents globally by leaving agent metadata and runtime execution in specified regions.

鈥淲e鈥檙e entering the next phase of enterprise AI, where success won鈥檛 be defined by how many agents you deploy, but by how well they are connected, governed, and grounded in trusted data. With more than 30,000 customers and AI guided by hundreds of millions of integrations, we鈥檙e helping organizations move from connected and automated to fully agentic, and turn AI into real operational impact,鈥� Mr. Lucas said.

Boomi recently received several analyst recognitions, such as being named a Leader for a 12^th straight year and positioned highest for Ability to Execute in the 2026 Gartner Magic Quadrant for Integration Platform as a Service (IPaaS).

It was also named a Leader in the IDC MarketScape: Worldwide API Management 2026 Vendor Assessment, and included in the 2026 Constellation ShortList for Cross-Platform Agentic AI, the 2026 Constellation ShortList for Data Integration and Transformation for Cloud-Based Analytical Data Platforms, and the 2026 Constellation ShortList for IPaaS.

Boomi was also named a Leader in the Nucleus Research iPaaS Technology Value Matrix 2026.

鈥淲e believe this wave of analyst recognition reflects the strength of our platform and the momentum we鈥檙e seeing from customers who want one strategic foundation for integration, APIs, data, automation, and agentic AI,鈥� Mr. Lucas said.