AGI allots P62 billion for 2026 capex

MANILA, Philippines — Conglomerate Alliance Global Group Inc. (AGI) of tycoon Andrew Tan is setting aside P62 billion in capital expenditures this year to fund the group’s next phase of growth.

With the capex budget, AGI will continue to strengthen its core businesses, expand its hospitality and tourism ecosystem, scale its premium spirits portfolio and accelerate sustainability commitments, AGI president and CEO Kevin Tan said during the company’s annual stockholders’ meeting yesterday.

“In the year ahead, Megaworld will pursue bespoke project launches in high opportunity markets. Travellers will reinforce its presence in the leisure and tourism segment with the expansion of its integrated resorts operations and Emperador will continue its brandy repositioning strategy alongside premium spirits expansion under the Dalmore brand,” Tan said.

“By 2035, we aim to achieve carbon neutrality and to generate at least five million direct and indirect jobs. Two ambitious goals that will guide capital allocation, operational priorities and partnerships in the year ahead,” he said.

Tan said AGI entered 2026 with a strong balance sheet and sufficient liquidity across the group.

Despite the outlook remaining uncertain with inflation, interest rate movements and a softer global demand still present, Tan said AGI’s subsidiaries each carry healthy cash positions and well-managed debt, giving the group room to absorb shocks without compromising its growth plans.

“Diversification across property, spirits and tourism, as well as across products and services, continue to work in our favor, diversifying risks amid a tougher cycle. And on top of that, we plan to keep up cost efficiencies that we have built into the businesses over the years. And that is what allows us to stay on the front foot even when conditions are uncertain,” he said.

Tan said property giant Megaworld, which is still the engine for the group, continues to perform very well.

He said residential demand is steady, with buyers continuing to choose Megaworld’s integrated townships, while office leasing is resilient and growing.

Tan also said Megaworld’s lifestyle malls and hotels continue to benefit from strong foot traffic, healthy spending and more activities in the MICE (meetings, incentives, conferences and exhibitions) sector.

“Townships also remain our clearest path to growth. With one of the country’s largest land banks, we can phase launches to match demand. And as each township matures, recurring income from leasing and hospitality compounds and gives our earnings their durability,” he said.

For Emperador, Tan said brandy is the company’s foundation anchored by its clear market leadership in the Philippines, while the Scotch whisky businesses gives it an extensive presence across the international market through some of the most respected names in the category.

Tan said Emperador caters to every price point, from accessible everyday brands to premium and luxury labels, enabling it to capture demand wherever the consumer happens to be in the cycle.

“Together, the brand equity, the breadth of our portfolio and the discipline on cost positions Emperador well for the next leg of growth,” he said.

On leisure and tourism, Travellers International continues to build on Newport World Resorts as its flagship integrated resort.

Tan said the clearest trend in the business is the continued strength of the mass segment, which is where the company is focused while managing the VIP side carefully.

He said the company is likewise growing its presence in the digital gaming space, which is becoming an increasingly important channel.

“Looking ahead, we envisioned a group that is well positioned for what comes next. Our subsidiaries continue to invest in homegrown brands ready for the world stage, in destinations that celebrate the best of the Philippines, in offerings that bring premium living within reach of more Filipinos than ever before and in bespoke products that can compete in the international market,” AGI chairman Andrew Tan said.

“The opportunities ahead are exciting and we are confident that AGI is prepared to meet them with the same care and ambition that have brought us this far. Our path forward is clear. We aim to balance ambition with responsibility, resilience with agility and progress with sustainability,” he said.