Pangilinan, who has a knack for sharing business insights during unexpected moments, used Manila Electric Co.’s (Meralco) financial briefing on Monday to reflect on how the Philippine economy is fueled by buying things rather than making goods the world needs.
He said the answer could be electric vehicles (EVs), with Meralco playing a direct role in supporting this fast-growing industry.
“Why can’t Meralco push for the adoption of E-vehicles for this country if we’re serious about sustainability? Meralco is in the best position to propagate these charging stations,” he said.
Investments here might prove the catalyst that could boost manufacturing for vehicles and allied businesses.
“In the same vein, they should think of ways to encourage the adoption of E-vehicles and perhaps in dealership, assembly, and eventually building a manufacturing base,” Pangilinan said.
New economic pillar outside OFW remittances, BPOs
Pangilinan said the Philippines’ growth remains driven by consumption, with heavy reliance on overseas Filipino workers (OFWs) and the business process outsourcing (BPO) sector.
OFWs, in particular, are celebrated as heroes, and Pangilinan said the country is “grateful” for their contributions but warned against becoming too dependent on remittances from overseas.
“Every dollar they send is like cocaine injected directly into the economic veins of this country,” he said.
Follow Indonesia’s model
“For example, in the case of Indonesia, for solar panels and E-vehicles, they require 40 percent local content. Why can’t we do the same here?” Pangilinan said.
“Then you slowly build a manufacturing base that will feed into medium-sized, small, and micro enterprises in this country,” he added.
Next challenge: funding massive investment plan
Meralco remains firmly focused on its core mission while ramping up investments in critical infrastructure.
This includes massive upgrades to fortify its network against natural disasters, expand power generation, and introduce new services like smart meters, which allow millions of households to monitor their consumption in real time.
Meralco is seeking approval for a P1.69 per kilowatt-hour distribution tariff to help fund its P246 billion capital spending plan for July 2025 to June 2029 under the fifth regulatory period.
“It’s very challenging in the next few years as to how Meralco does its financial funding exercise,” Pangilinan said.
Meralco’s exciting future
“In the past, the image of Meralco has been an old, conservative, staid, non-responsive kind of company,” he said. “But I think it’s a much different company now with an exciting future.”
With hearings coming up for Meralco’s first rate reset in a decade, Pangilinan seems to have the company’s game plan locked in.
“See, I’m the best salesman here,” he said with a playful smile.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
