Philippine listed conglomerate PHINMA Corp. is pushing for growth in its insulated panel business, counting the San Miguel and Ayala groups among its clients, as the company continues to expand despite an uncertain economic environment, according to its chairman.

PHINMA Chairman and Chief Executive Officer Ramon R. del Rosario, Jr. told reporters on the sidelines of a company policy forum in Makati City, a financial hub of Metro Manila, on Saturday that the group had recently inaugurated an insulated panel manufacturing plant in Porac, Pampanga, a province in Central Luzon north of the capital region.

“The response of the business community has been very good and they have been able to line up very strong clients, the San Miguel group, the Ayala group, etc.,” he said.

Mr. Del Rosario said the insulated panel business is designed to support food security, help address food costs, and respond to climate change. Insulated panels are construction materials designed to limit heat transfer, widely used in buildings and temperature-controlled facilities such as cold-storage warehouses.

The conglomerate is likewise pursuing expansion in its education unit, where enrollment has grown by 8% to 9% based on its latest figures. PHINMA sees additional growth opportunities in Indonesia, where its education business serves students seeking affordable higher education.

“We’ve developed the reputation that we’re able to deliver good quality education and it continues to be affordable,” Mr. Del Rosario said.

The group is also piloting community housing projects for lower-income households in Davao, a major city in Mindanao, and Bacolod in the Visayas, before deciding whether to scale the business.

“We are not slowing down. We’re continuing to look for opportunities where they exist,” Mr. Del Rosario said.

That expansionist stance stands out against the backdrop Mr. Del Rosario himself described. He acknowledged that the Philippine property sector remains weighed down by high interest rates, inflation, and weak revenues.

“I have to admit the property sector in general, the whole property sector in the Philippines is undergoing a challenging time. High interest rates, high inflation, low revenues,” he said.

Mr. Del Rosario also cited domestic and global uncertainties — including conflicts involving Iran and Ukraine, political developments in the United States, the Philippine flood control controversy, and impeachment proceedings — as factors weighing on business sentiment.

“With all of that uncertainty, yes, there is some hesitation,” he said, adding that companies were awaiting the outcomes of political developments before making decisions. He described prevailing business sentiment as “cautious optimism at best.”

For 2027, Mr. Del Rosario said Philippine economic growth could range from 4% to 5%, citing projections from multilateral lenders and advice from economists — a range that frames the backdrop for the group’s expansion plans.

PHINMA will likewise continue providing scholarships to help students from low-income households afford higher education. Under the program, some students enrolled in lower-cost courses pay P5,500 per semester.

Shares in PHINMA rose by 0.14% or P0.02 to close at P14.50 apiece on Tuesday.

— Erika Mae P. Sinaking, BusinessWorld

Source: BusinessWorld