Category: Business Mirror

AMID heavy rains that caused widespread flooding in many areas of Luzon, an agrarian reform beneficiaries organization (Arbo) based in Magallanes, Cavite, celebrated its Harvest Festival, highlighting a successful harvest.

The Pacheco Agrarian Reform Cooperative (PAR-C), a program beneficiary of the Climate Resilient Farm Productivity Support Program Major Crop-Based Block Farm Productivity Enhancement Area (CRFPSP – MCBFPEA), held the activity on August 5, 2026, at barangay Pacheco, Magallanes, Cavite, to celebrate a successful harvest this season.

The activity, led by Director III and Provincial Agrarian Reform Program Officer (Parpo) II James Arthur T. Dubongco, gathered agrarian reform beneficiaries (ARB), cooperative members, and representatives from the Department of Agrarian Reform (DAR), local governments, and partner agencies to celebrate the season’s harvest and recognize the gains of climate-resilient farming technologies and interventions.

Despite the heavy rainfall, participants remained steadfast throughout the program, symbolizing the resilience and determination of Filipino farmers in the face of increasingly unpredictable weather conditions.

The event also highlighted the importance of climate-smart agriculture for food security, farm productivity, and the livelihoods of agrarian reform beneficiaries.

In his message, Dubongco emphasized the significance of equipping farmers with climate-resilient technologies and strengthening partnerships to ensure sustainable agricultural production.

‘The Climate Resilient Farm Productivity Support Program is crucial in helping our farmers learn appropriate technologies and farming practices, especially in the face of changing weather conditions.

Through the collaborative efforts of the DAR, LGUs, and various government agencies, we strengthen the capacity of our farmers and promote more resilient and sustainable agricultural production,’ Dubongco said.

‘I am deeply grateful to Secretary Conrado Estrella III because he is one of the reasons why we were given this opportunity. I am also thankful for DAR’s assistance because they provide us with various projects and continuously support us. This has been a tremendous help to us farmers,’ Roselyn Iyaya, a member of the PAR-C Board of Directors, said.

PAR-C Chairperson Ernie S. Somogod recognized the government’s continued efforts to strengthen the capacities of agrarian reform beneficiaries through agricultural support services and programs focused on climate resilience.

‘I am grateful to DAR and all the government agencies that are helping us. We, farmers, are very happy with these programs because we were not only given a tractor, but also various forms of support that truly help us in our farming and livelihood,’ Somogod said.

With the expected heavy rainfall brought by the Southwest Monsoon (Habagat), government employees in Metro Manila and several other provinces will be required to engage in a work-from-home arrangement on Monday, according to a new circular from Malacañang.

Likewise, schools at all levels in the covered areas will also be required to use alternative learning modes on the said day unless otherwise directed by their concerned local chief executives.

Both arrangements were contained under Memorandum Circular (MC) No. 123, which was issued by Executive Secretary Ralph G. Recto on Sunday upon the recommendation of the National Disaster Risk Reduction and Management Council (NDRRMC).

MC 123 will cover Metro Manila, Ilocos Sur, La Union, Zambales, Bataan, Rizal, Cavite, Batangas, Occidental Mindoro, Benguet, Pangasinan, Abra, Tarlac, Pampanga, Oriental Mindoro, and Bulacan.

It will not apply to government agencies involved in the delivery of basic and health services, preparedness/response to disasters and calamities, and/or the performance of other vital services, as well as private companies.

‘The suspension of work or adoption of alternative work arrangements for private companies and other offices is left to the discretion of their respective heads,’ the issuance stated.

The Palace said local government units (LGUs) will have the discretion to cancel or suspend classes and/or work in government offices. MC 123 comes after Malacañang declared two days of suspension of government work and classes in Metro Manila and other parts of the country last week because of the heavy rainfall caused by Tropical Storm Maymay (international name: Kujira) and the Southwest Monsoon.

During the weekend, NDRRMC reported that Tropical Storm Maymay and Luis (international name: Dolphin) killed at least six people and affected 74,755 families across Luzon.

In its weather advisory as of 11 pm last Sunday, the Philippine Atmospheric, Geophysical, and Astronomical Services Administration (Pagasa) issued a heavy rainfall outlook for NCR and other parts of Luzon due to the effects of the Southwest Monsoon.

Palace Press Officer Claire Castro said in a statement that President Ferdinand Marcos is closely monitoring the effects of the Habagat, which resulted in flooding and rising waters in dams and reservoirs.

‘He has directed concerned agencies to remain on heightened alert, closely coordinate on water releases, and take the necessary preventive measures to protect communities and critical infrastructure,’ Castro said in a statement,

‘So far, while several dams in Central Luzon are experiencing spilling, water levels are being closely monitored and managed,’ she added.

Marcos also directed the Department of Health to provide a prompt response in preventing the spread of diseases during the ongoing rainy season, which includes leptospirosis- an illness that can usually be acquired from having contact with the urine of an infected animal.

DESPITE the latest growth print disappointment, the central bank will be forced to continue hiking rates as the Philippine economy’s fight against inflation is far from over, according to analysts.

‘The Q2 GDP disappointment will unlikely derail [Bangko Sentral ng Pilipinas] BSP’s hiking cycle, in our view, because it remains focused on bringing inflation back to target over the policy horizon and anchoring inflation expectations, rather than supporting domestic demand,’ Japan-based Nomura Global Markets Research said in a report over the weekend after the Philippine Statistics Authority (PSA) released the second-quarter GDP data showing only a 2.3-percent growth.

Nomura also pointed out that the central bank may have also become vigilant over the ’emergence’ of new sources of inflation risk in the coming months, which it said ‘could coincide with a turnaround in fiscal spending.’

Nonetheless, with the output gap remaining ‘negative’ in the second quarter of 2026, the Japan-based research unit of Nomura Group said: ‘We believe BSP will likely maintain a measured approach to monetary tightening.’

Nomura maintains its forecast of another 50 basis points (bps) of BSP hikes this year, delivered in 25bp ‘clips’ over each of the next two meetings of the monetary board-in August and October.

Bank of the Philippine Islands (BPI) Senior Vice President and Lead Economist Emilio S. Neri Jr. said in a commentary over the weekend that recent policy actions suggest that the central bank is attempting to balance the need to bring inflation under control while avoiding a sharp slowdown in economic activity, resulting in a ‘gradual pace’ of tightening in recent months.

However, Neri pointed out: ‘A larger rate increase later in the year cannot be ruled out, particularly if the impact on El Niño on food prices proves more severe than currently anticipated.’

ANZ Research, for its part, said despite inflation moderating in July and with growth slowing, the pressure on the BSP to hike rates at this month’s monetary policy meeting will reduce.

However, the research unit of the Australia-based bank shared almost the same view as BPI’s lead economist, saying: ‘We expect inflation to remain elevated over the rest of the year, particularly as El Niño-related supply pressures begin to feed through to food prices.’

Further rate hikes after August ‘less clear-cut’

Other analysts stressed, however, that with the low domestic demand, there may no longer be ‘much room’ for the central bank to raise the key interest rate beyond the August rate-setting meeting of the Monetary Board.

United Kingdom-based research firm Capital Economics said the ‘weakness’ of the economy is likely to influence the thinking of the central bank as it weighs its next move.

‘The continued weakness of the economy means the case for further hikes is less clear-cut. But with inflation still well above target, we expect one more 25bps hike at the BSP’s next meeting on 27th August before it calls a halt to its hiking cycle,’ Capital Economics noted.

Domini S. Velasquez, Group Chief Economist of China Banking Corporation (Chinabank), said in a televised interview that the BSP may deliver ‘one more hike, especially with the GDP figure now.’

‘We know that the BSP is an inflation targeter. But sometimes, you know, these supply shocks, monetary policy cannot do anything about it, unless, you know, except anchoring inflation expectations. But in terms of low domestic demand, I don’t think there’s much room to increase. Maybe another last hike this end of August,’ Velasquez said.

The BSP has raised the key interest rate by a total of 50 basis points since the start of the conflict in the Middle East, delivering two separate quarter-point rate hikes at the Monetary Board’s rate-setting meeting held on April 23 and June 18.

These policy actions brought the Target Reverse Repurchase (RRP) Rate to 4.75 percent.

During its June 18 meeting, the Monetary Board decided that monetary policy tightening was ‘warranted’ to keep inflation expectations anchored and mitigate the risk of second-round effects.

‘The measured monetary policy action will also complement fiscal measures in supporting steady consumption and strengthening business sentiment,’ the central bank also said in a statement on June 18.

On August 7,2026, the Philippine Statistics Authority (PSA) reported that the growth of the Philippine economy in the second quarter eased to 2.3 percent from the 2.8 percent in the first quarter.

The latest reading was the slowest since the first quarter of 2021, when the economy contracted by 3.8 percent.

CONSUMER complaints filed with the central bank surged by 72.6-percent in 2025 on the back of ‘greater’ public awareness and ‘wider’ adoption of digital platforms, according to the Bangko Sentral ng Pilipinas (BSP).

According to the central bank, its consumer assistance unit received and processed over 120,000 new complaints, paling in comparison to the 70,112 complaints lodged with the BSP in 2024. The volume of complaints has risen steadily over the years, from 19,181 in 2021, the BSP added.

As explained in the BSP’s 2025 Annual Report, complaints that are not resolved through its consumer assistance mechanism are elevated to mediation.

The report noted that referrals for mediation rose by 48.9 percent from 710 in 2024 to 1,057 in 2025. The BSP handled 1,188 mediation cases, including 131 carried over from the previous year, the report read.

Of the 876 concluded cases, 409 were successful, 144 failed, and 323 were terminated for ‘various reasons.’

The central bank explained that ‘successful’ cases refer to those where both parties entered into a settlement agreement, or where matters were sufficiently clarified during mediation, and both parties agreed to terminate the proceedings as successful.

Meanwhile, ‘failed’ cases refer to those where the parties were unable to reach an amicable settlement.

As for the cases considered ‘terminated,’ those are discontinued for other reasons, such as a party’s lack of interest in pursuing the mediation or the existence of factual or legal issues that cannot be resolved though mediation, among others, the central bank noted.

The BSP pointed out, however, that the mediation success rate declined from 84.4 percent in 2024 to 74 percent in 2025.

Success rate, according to BSP, is equivalent to ‘successful’ mediations over total of ‘successful’ and ‘failed’ mediations.

‘This drop may be attributed to stronger consumer awareness of alternative remedies, such as adjudication or court action,’ the central bank explained.

The BSP handled 68 formal complaints, including 12 carried over from 2024. Of these cases, 11 were decided, 20 were dismissed, and 37 remained pending as of December 31, 2025.

‘These redress mechanisms supported fair, impartial, and orderly resolution of consumer disputes, 83 consistent with the BSP’s mandate under the FCPA,’ the BSP said.

According to the central bank, the upward trend reflects ‘greater public awareness of the BSP’s CAM channels, wider adoption of digital platforms, and increased media attention on the FCPA [Financial Consumer Protection Act] and the Afasa [Anti-Financial Account Scamming Act].’

The Department of Agriculture (DA) and the Technical Education and Skills Development Authority (Tesda) have signed a 5-year agreement to establish a national training and certification program for urban and peri-urban agriculture.

The partnership will introduce the Urban Agriculture Production NC II, a new technical-vocational qualification that will set national competency standards, training regulations, curricula and assessment tools for urban farming practitioners.

The initiative aims to train and certify urban agriculture practitioners, trainers, assessors and educators as the government seeks to expand food production in urban areas while creating additional livelihood opportunities.

To support the program, the two agencies will establish an Urban Agriculture Technology Demonstration and Training Center at the Tesda Complex in Taguig.

Additional learning hubs will also be set up in Tesda regional training centers, DA facilities and selected urban farming sites.

The training program will cover modern production methods, including hydroponics, vertical farming, protected cultivation, container gardening, composting and other climate-smart farming technologies.

It will also incorporate food safety, biosafety, phytosanitary standards and good agricultural practices in line with the Food Safety Act of 2013.

Tesda Secretary Jose Francisco Benitez said agriculture remains among the agency’s priority sectors for scholarship support.

‘Through this collaboration with DA, we further strengthen Tesda’s services that will empower Filipinos to get into urban farming, create livelihood out of it, and ultimately contribute to the economy.’

The partnership is expected to institutionalize urban and peri-urban agriculture as a technical vocation by providing standardized training and nationally recognized certification for individuals pursuing food production in urban communities.

In addition, Agriculture Secretary Francisco Tiu Laurel Jr. said the initiative builds on the Filipino spirit of community that became especially evident during the Covid-19 pandemic.

‘I have always believed that Filipinos have a special gift. Give us a small patch of land, a rooftop, a balcony or even a few recycled containers, and before long, someone has turned them into a thriving garden,’ the DA chief said.

‘We are, by nature, nurturers. Today, our task is to match that instinct with knowledge, skills and opportunity.’

FAMILIES may use only up to 20 percent of the earnings of children working in monetized social media content, while the remaining 80 percent must be reserved for the child, the Department of Labor and Employment (Dole) said.

Labor Secretary Francis N. Tolentino said the income safeguards are meant to protect child workers from financial exploitation as existing labor protections are extended to digital platforms.

Under current rules, 80 percent of a child worker’s earnings must be placed in savings or a trust fund for education, health needs or future use.

‘The amount that may be spent for the family is 20 percent. The remaining 80 percent should be placed in savings or a trust fund for the child’s education, health needs or future use,’ Tolentino said.

The requirement applies to children below 15 who work or are featured in monetized social media content covered by Labor Advisory 12, Series of 2026.

The advisory covers digital platforms such as vlogs, livestreams, podcasts and online endorsements.

Covered children must also secure a work permit from the appropriate DOLE regional office before engaging in work under the advisory.

Their working hours are limited to four hours a day or 20 hours a week, while work beyond 10 p.m. is prohibited.

Tolentino said the restrictions are intended to ensure that online work does not interfere with a child’s education, health and welfare.

Limited exemptions apply to children working in family enterprises, including cases where family members are involved in producing the content, subject to existing child labor rules.

Employers or producers who engage children without the required permit may face fines, imprisonment or possible closure under applicable law.

Dole clarified that the advisory does not establish a new child labor standard but expands existing protections for children in traditional media to monetized digital content.

FRENCH hospitality giant Accor Group has finally planted its first Mercure flag in the Philippines at the Andrew Tan-led Megaworld Corp.’s township development in Cebu.

The 550-room Mercure Mactan Cebu is operated by Megaworld Hotels and Resorts (MHR) at Mactan Newtown, a master-planned coastal township in Cebu. The hotel was formerly known as Belmont Hotel Mactan.

In a news statement, Accor Asia’s Chief Operating Officer for Premium, Midscale and Economy Division Garth Simmons said, ‘Cebu is a destination on the rise. Introducing Mercure to the Philippines for the first time with the opening of Mercure Mactan Cebu marks a strategic expansion for the brand, as Cebu continues to emerge as a compelling gateway for travelers seeking culturally rich experiences.’

He added that Mercure Mactan is ‘designed to reflect the character of its surroundings [and] connects curious and passionate travelers to the stories, flavors, and energy that define Cebu. As demand grows for experience-led travel, we are excited to expand our presence in the Philippines and create more opportunities for travelers to connect with emerging destinations across Asia.’

For her part, MHR Managing Director Cleofe C. Albiso told the BusinessMirror that the company’s franchise agreement with Accor is ‘one deal only, just for Mactan.’ There are currently no plans to rebrand other Belmont Hotels to Mercures.

However, she said talks were ongoing on the possibility of partnering with Accor for its other brands. ‘Nothing final,’ she said.

Movenpick Westside in 4Q

MHR earlier announced its 1,530-room Grand Westside Manila Bay will also be managed by Accor, under the Movenpick brand, by the fourth quarter of the year. To be called Movenpick Westside, it will be Accor’s largest hotel under the brand.

Meanwhile, Accor said Mercure Mactan features 550 guestrooms and suites, including Standard Rooms, Privilege Rooms, and the Presidential Suite. Each room is designed with locally inspired touches, curated artwork, and vibrant accents that celebrate the colors and creativity of Cebu.

The food and beverage outlets showcase the rich flavors and culinary traditions of Cebu. ‘Pulô serves authentic Filipino and Cebuano cuisine with a fresh ocean-to-table approach, within interiors inspired by solihiya weaving, abaca craftsmanship, and the vibrant energy of the Sinulog Festival,’ the Group added.

Guests can enjoy cocktails, local brews, and light bites at Lingaw Pool Bar, while Zabana Bar and Lounge offers a relaxed setting for evening drinks, complemented by handcrafted Cebu guitars that pay tribute to the island’s musical heritage.

The hotel also features a fully equipped fitness center, separate steam and sauna facilities, spa treatments, a tranquil Garden Lounge, and an inviting swimming pool designed for relaxation throughout the day.

Flexible MICE spaces

For meetings, celebrations, and social gatherings, Mercure Mactan Cebu offers versatile meeting rooms and flexible event spaces designed for both corporate and social occasions, accommodating gatherings from 30 to 180 guests.

The hotel sits directly across the recently opened Mactan Expo, the area’s largest convention facility with a 3,000-seat theater capacity. This positions Mercure Mactan as an ‘ideal base for delegates attending large-scale conventions and exhibitions in Cebu.’

The hotel also provides exclusive access to Mactan Newtown Beach, featuring a picturesque Ceremony Garden for intimate occasions and an elegant Glass Pavilion overlooking the sea for larger celebrations and weddings.

‘At Mercure Mactan Cebu, we invite guests to experience more than just a destination. We invite them to feel Cebu,’ said hotel General Manager Gwen De La Cruz.

‘What truly defines Cebu is its people. Hospitality is innate and embedded in the Cebuano lineage, every stay is shaped by genuine warmth and connection. We want every guest to feel that this is a place they can return to, time and time again, because Cebu always feels like home,’ she added.

The Accor Group currently manages 12 hotels in the Philippines for various local developers: Movenpick Resort and Spa Boracay, Raffles Makati, Fairmont Makati, Novotel Suites Manila at Acqua in Mandaluyong, Admiral Hotel Manila-MGallery, Novotel Manila Araneta City in Cubao, Ibis Styles Manila Araneta City, Ibis Styles Subic in Zambales, Swissôtel Clark Philippines, Mercure Mactan, Movenpick Cebu, and South Palms Resort and Spa Panglao-MGallery.

WHILE formal account ownership in the Philippines has more than doubled over the past decade, many Filipinos ‘remain underserved’ in terms of access to formal savings and credit products, according to Maya Bank Inc.

As such, one of the digital bank’s executives pointed out that the country’s financial inclusion progress should be measured beyond the accounts opened or transactions processed.

‘The question is no longer simply whether Filipinos have a financial account, but whether that account is making their lives better and more secure,’ Maya Head of Corporate Affairs Kristoffer Eduard M. Rada said during the recent Asean Tech Summit Manila.

‘The more important test is whether the infrastructure helps people build savings, access affordable credit, grow a business or cope with an emergency,’ the official of the digital bank said.

According to the digital bank, formal account ownership in the country has ‘more than doubled’ over the past decade, rising from 22 percent in 2015 to around 50 percent in 2025.

Despite the significant growth in account ownership, Maya said in its statement: ‘Many Filipinos still use their accounts mainly for transactions and remain underserved by formal savings and credit products.’

Rada said national payment rails, digital identity, improving credit information and the digital banking framework of the Bangko Sentral ng Pilipinas (BSP) have laid ‘important foundations.’

These systems, however, still need to be ‘strengthened and sustained,’ he asserted.

Nonetheless, Rada said, digital payments can help by giving financial institutions a ‘better understanding’ of consumers and businesses with little or no traditional credit history.

‘Used responsibly and with the proper safeguards, everyday financial activity can provide useful signals about how people and businesses manage money,’ a document issued by Maya read.

The Asean Tech Summit Manila was held weeks after banks and financial institutions started slashing digital fund transfer fees.

The BSP is hoping the share of digital payments will corner at least 70 percent of total retail transactions by 2028.

In July last year, the central bank reported that the share of digital payments to total monthly retail transactions rose to 57.4 percent in terms of volume and 59 percent in terms of value in 2024, data from the BSP showed.

Based on the Philippine Development Plan, the baseline-at 30.3 percent in 2021-should increase to 50 percent in 2023; 52 percent to 54 percent in 2024; 54 percent to 58 percent in 2025; 56 percent to 62 percent in 2026; 58 percent to 66 percent in 2027; and 60 percent to 70 percent in 2028.

For years, the prevailing narrative surrounding the Philippine economy has been fixated on two primary levers: the exchange rate and trade liberalization. The conventional wisdom suggested that a weaker peso was the golden ticket to boosting exports, while opening our markets was the surest path to industrialization. However, Bangko Sentral ng Pilipinas Governor Eli M. Remolona has injected a much-needed dose of reality into this debate, challenging us to confront the structural rot that truly stifles our economic potential. (Read the BusinessMirror story: ‘Licking corruption, better EODB should get priority’, August 3, 2026).

Governor Remolona’s recent pronouncement is a refreshing departure from the monetary tunnel vision that often grips policymakers. By urging the nation to prioritize our Corruption Perception Index and Ease of Doing Business rankings over the fixation on a ‘stronger peso’ or trade deals, he is effectively drawing a line between short-term tactical moves and long-term strategic survival.

The Governor is right: we suffer from a ‘money illusion.’ We obsess over the daily fluctuations of the peso against the dollar, believing that a weaker currency is a panacea for our manufacturing ills. Yet, as he astutely pointed out, the exodus of Intel to Penang and our car manufacturers to Thailand had nothing to do with the exchange rate. These were not decisions made on the trading floor; they were decisions made in boardrooms where investors weighed the predictability of the rule of law, the efficiency of logistics, and the integrity of the bureaucracy.

The data, or lack thereof, is damning. We are ‘near the bottom’ of the Corruption Perception Index. To foreign investors, we are perceived as a high-risk environment not because of market volatility, but because of red tape and rent-seeking. We are ‘in the middle of the pack’ for Ease of Doing Business, a mediocre ranking that signals to global capital that establishing a foothold in the Philippines will be an exercise in patience and frustration rather than seamless efficiency.

The message is clear: Trade liberalization is insufficient. Tariff walls are irrelevant if the cost of corruption and bureaucratic delay is higher than the cost of the tariff itself.

Governor Remolona’s statement acknowledges a crucial macroeconomic reality: monetary policy cannot operate in a vacuum. The effectiveness of our monetary tools is fundamentally constrained by the frictions of governance. If the cost of importing raw materials rises due to a weaker peso, as noted by the DTI’s Export Marketing Bureau, the ‘advantage’ of depreciation is eroded. A cheap peso cannot compensate for expensive inefficiency.

Furthermore, the De La Salle University economists have correctly identified the path forward. We cannot compete in the global arena by being the cheapest; we must compete by being the best. Currency depreciation is not a ‘sensible’ development strategy. It is a crutch that allows us to avoid the painful, but necessary, work of industrial upgrading. We cannot simply dump more of the same low-value goods into the market; we must diversify and export more complex, knowledge-intensive products.

This requires a seismic shift in our national priorities. Governor Remolona has given us the roadmap. The goal is not just a stronger peso, but a stronger institution. The target is not just trade balance, but bureaucratic integrity. The true driver of manufacturing competitiveness is not the exchange rate, but the rate at which we can get things done-ethically, efficiently, and predictably.

It is time to stop tinkering with the value of our currency and start transforming the value of our governance. The BSP has sounded the alarm; it is now up to the Executive and Legislative branches to respond. We must dismantle the barriers to entry, crush the culture of ‘grease money,’ and build a bureaucracy that serves, rather than stifles, the entrepreneur. Only then will the Philippines graduate from being a ‘middle of the pack’ economy to a true tiger in the region.

SM Prime Holdings Inc. on Monday said its income in January to June came in flat at P24.5 billion compared with the previous year’s P24.45 billion, as costs and expenses eclipsed revenue growth.

Total revenues grew 5 percent to P71.7 billion from P68 billion, with rental income from malls, offices, hospitality and MICE accounting for 61 percent.

‘Our focus on tenant relationships, customer experience and cost management supported our performance. Despite challenging market conditions, commercial demand remained resilient across our portfolio,’ said Jeffrey C. Lim, SM Prime president.

Lim said the company is targeting to at least match last year’s income of P48.84 billion. Real estate sales for the period contributed 27 percent, while cinema ticket sales, food and beverage, amusement and related offerings generated the remaining 12 percent.

Costs and expenses during the same period increased 6 percent to P35.6 billion from P33.6 billion, due to higher depreciation and amortization charges, fixed overhead costs and construction expenses.

Mall revenues grew 8 percent to P41.8 billion from P38.6 billion on the combined effect of higher occupancy, stronger tenant sales and improved operational efficiency.

Residential revenues, covering core, leisure and premium offerings, slipped 1 percent to P20.6 billion from P20.9 billion on lower revenue recognition from prior-year sales.

Revenues from hotels and convention centers expanded 8 percent to P4.4 billion from P4.1 billion owing to higher bookings and average daily room rate.

Office and warehouse revenues rose 9 percent to P5.0 billion from P4.6 billion, driven by higher space take-up.

Second-quarter consolidated net income rose 1 percent to nearly P12.9 billion from P12.8 billion, as costs grew in line with revenues.

Total revenues from April to June increased 9 percent to P38.4 billion from P35.3 billion.

Meanwhile, costs and expenses went up by nearly 9 percent to P19.0 billion from P17.5 billion, mainly due to higher construction costs.

Capital expenditures declined 18 percent to P30.7 billion in the first half from P37.3 billion a year earlier.

Last April, SM Prime announced that it will invest more than P6 billion to redevelop SM Harrison Plaza on the former Harrison Plaza Complex in Manila, which is slated to open next year.

The project forms part of SM Prime’s P150-billion mall investment program for 2026 to 2030, which includes the major redevelopment of 16 existing malls and the construction of 12 to 15 new lifestyle malls.

Steven T. Tan, president of SM Supermalls, said the company expects to have 115 malls by 2030 or four to five malls per year, as SM expands its footprint outside of Luzon and Metro Manila.

Tan also said the company is aiming to open 100 malls by 2027 or 2028, and will launch one flagship or premier mall per year through 2030, as it expands its reach in the Visayas and Mindanao.