BusinessMirror December 23, 2024

NEDA CHIEF: REENACTED BUDGET ‘COSTLY’

By Cai U. Ordinario @caiordinario

THE country’s Chief Economist warned that a reenacted budget would be “costly” for the Philippine economy as it could delay projects and lead to wasted resources.

In an interview, National Economic and Development Authority (Neda) Secretary Arsenio M. Balisacan told BusinessMirror that while he does not want to preempt the President’s decision on the national budget, a re-enacted budget—which some quarters deem the lesser evil to a defective one like the enrolled bill now under Palace review—is not what the economy needs at this time.

It’s [re-enactment of the budget] costly to the economy, apart from raising suspicion that you are doing something with the reenacted budget,” the Socioeconomic Planning Secretary told this newspaper.

That [to approve, veto or reenact the budget] will be a decision that

EXTERNAL risks which include geopolitical factors could prompt the Bangko Sentral ng Pilipinas (BSP) to reduce rates by “a modest” 50 to 75 basis points next year, according to US-based think tank GlobalSource Partners.

I n his latest note, GlobalSource Partners country analyst Diwa Guinigundo said these external risks hinge on the Trump administration’s higher tariff policy, tax cuts, and mass deportation.

See “Paper,” A2

Gu inigundo said these could lead to higher inflation in the US, prompting the Federal Reserve to “go slow” in reducing policy rates. The Philippine peso, he said, could not escape the im -

pact brought by the slowdown in the Fed’s easing stance.

“ Tension could remain elevated given the sustained hostility in the Middle East and Eastern Europe. They could have collateral impact on external trade and capital flows and ultimately, peso depreciation and domestic inflation,” Guinigundo also said.

“ Should these upside risks eventuate, we may not be looking at 100 bps reduction for 2025 but perhaps at a more modest 50 to 75 bps reduction. As the BSP would put it, the final decision will continue to be data-driven,” he added.

See “External,” A2

Neda…

the President would have to make. And as you have heard him, he’s consulting his Cabinet, particularly the economic team, and also the legal team. We’ll see,” he also said.

B alisacan explained that when budgets are reenacted, new projects that need to be funded for the year may not receive financing, causing implementation to be delayed.

In other instances, some projects that have been completed in the previous year, may continue to receive allocation even if there is no more need for resources.

However, Balisacan recognized that there are instances when reenacted budgets are necessary. In the US, he said, budgets have been reenacted for the past 10 years.

T his has caused some closures of federal agencies that did not receive budget allocations. Balisacan said that while the closure of agencies may not be possi -

Continued from A1

ble here, reenacted budgets could still be painful for the economy and, ultimately, Filipinos. “ In our case, you don’t close but at the same time [you] cannot move on to other projects that supposedly will start at the beginning of the year or will continue what was started in the previous year,” Balisacan said.

Reenacted budgets

THE Philippines is no stranger to reenacted budgets. Balisacan said the last administration to implement a reenacted budget was the Arroyo administration. This is part of the reason he believed the Arroyo years were a “lost decade” for poverty reduction.

I n 2012, Balisacan said that in terms of poverty reduction, the last 10 years was a “lost decade” for the country. This is because there was no dent in

External…

Continued from A1

Guinigundo also said the BSP plan to reduce bank’s reserve requirement ratio (RRR) could also be an upside risk for inflation. Lower reserve requirements will lead to greater money supply, thereby increasing inflation.

In September, BSP Governor Eli M. Remolona Jr. said that if it were up to him, the RRR would be reduced by as much as 450 basis points to allow banks to lend more. Currently, the RRR is at 9.5 percent and Remolona wants to reduce this to only 5 percent once the Monetary Board is no longer hawkish in its monetary policy. (See: https://busi-

poverty incidence despite high economic growth.

S ince 2003, Balisacan said, poverty incidence increased from the 24.9 percent recorded in 2003; 26.4 percent in 2005; and 26.5 percent in 2009.

However, in 2018, there was a budget impasse which resulted in the approval of a national budget during the year it was supposed to be implemented.

Fortunately, the impasse was resolved in time and the country did not have to suffer the consequence of a reenacted budget.

PES open letter

ON Sunday, the Philippine Economic Society (PES) released an open letter to the President appealing for what it calls a “thoughtful review and line-item veto” of the 2025 national budget.

The PES raised concerns regarding the P74.47-billion reduction in PhilHealth subsidies which it believed would jeopardize the implementation of Universal Health Care (UHC) in the country.

nessmirror.com.ph/2024/05/17/ bsp-chiefs-goal-cut-rrr-by450-bps-to-spur-lending/).

“The plan to continue bringing down the country’s required reserve ratio may actually result in higher injection of liquidity which, other things being equal, may also turn out to be inflationary. This is one issue that the BSP may have to face in the future given its aggressive stance in reducing it to as low as zero,” Guinigundo said.

The economists also raised concerns regarding the P11.6-billion reduction in the Department of Education budget, saying such would “endanger efforts to address the learning crisis” in the country.

The P20-billion reduction in the budget of the Department of Agriculture undermines the country’s food security and rural livelihoods, the letter added.

Th e PES also said the P83 billion cut in the budget of the Department of Social Welfare and Development (DSWD) budget would weaken safety nets for vulnerable Filipinos such as conditional cash transfers, disaster relief, and feeding programs for children.

T he also cited a misallocation of funds, particularly the 106-percent growth to P33.7 billion in the budget of the House of Representatives (HOR).

A similar misallocation of funds, PES said, also occurred in the Public Works budget which increased by P288.6 billion to P1.1 trillion, and the P26 billion AKAP fund which had “unclear objectives.”

Nomura projection MEANWHILE , Nomura’s Euben Paracuelles and Nabila Amani said given the recent decision of the Monetary Board, they are estimating that the BSP could reduce policy rates immediately in its first three meetings and then pause next year.

Th is would bring the overnight repurchase facility rate (RRP) to 5 percent in May 2025. Paracuelles and Amani said the decision will be guided by the BSP’s last three policy adjustments as well as inflation expectations in 2025 and 2026.

I n an interview with Bloomberg on Friday, Remolona said the Monetary Board may reduce policy rates by 25 basis points in its first meeting next year. (See: https://businessmirror.com. ph/2024/12/21/phl-may-open25-with-rate-cut-bsp-chief/).

“ We still think BSP can cut by more than the Fed, and indeed continue to decouple from its regional peers. In our view, B SP’s more orthodox approach is appropriate and provides muchneeded clarity when the global environment is highly uncertain,

Paper…

1,000 piece of polymer banknotes already. But in the coming years, especially in 2025, we will have more quantities of the P500, P100, and P50,” she added.

I n a separate development, Senate Minority Leader Aquilino “Koko” Pimentel II wants the central bank to reveal the results of what it had called “just a trial” when it released the P1,000 polymer notes two years ago. He is filing a resolution for an inquiry into the rationale for the pivot to polymer. Story in Second Front page. No phaseout of paper notes

THE BSP clarified that the release of the polymer banknote series will not phase out the country’s existing paper banknotes. The stance of the BSP is for the old and first Philippine polymer banknote series, to co-circulate.

“ The BSP has always featured the country’s heroes and natural wonders in banknotes and coins,” the BSP said in its statement following questions raised by the public on the phase out of the old hero series.

“ Featuring different symbols of national pride on our banknotes and coins reflects numismatic dynamism and artistry and promotes appreciation of the Filipino identity,” BSP explained. Lim said featuring the country’s flora and fauna in the design of the new polymer banknote series also highlighted the government’s intention to raise awareness and promote environmental responsibility.

Th is, she noted, is also not the first time Philippine flora and fauna were featured in the country’s currency, particularly in coins.

We recognize the importance of infrastructure, but it must be balanced with investments in human capital, social services, and food security to ensure equitable and sustainable growth,” the open letter stated.

L ocal economists appealed to restore funding for critical sectors such as healthcare, education, agriculture, and social welfare as well as support strategic subsidies for PhilHealth to fully implement the UHC.

Th ey appealed to strengthen climate-resilient agriculture to empower farmers and stabilize food prices as well as expand feeding programs for children to fight “hunger, malnutrition, and their lifelong impacts.”

T he PES asked for transparency and targeting in social transfers for vulnerable Filipinos by eliminating “discretion and politicization” of programs such as AKAP.

enhancing BSP’s policy credibility,” Paracuelles and Amani said.

Nomura’s economists said that when it comes to the RRR cut, they still “pencil” in a 200-basis- point reduction by mid-2025, which will bring down the reserve requirement to 5 percent.

“ These RRR cuts will help further improve the transmission of policy rate cuts at that point, making them effective in supporting the growth outlook,” Paracuelles and Amani said.

Capital Economics MEANWHILE , Capital Economics still expects the BSP to reduce policy rates by 100 basis points next year. This will bring down the RRP to 4.75 percent by the end of 2025.

The expectations of the think tank stemmed from the slowdown in inflation. The latest inflation print placed the country’s headline inflation rate at 2.5 percent, “comfortably within” BSP’s target of 2 to 4 percent.

The less aggressive pace of reducing policy rates, Capital Economics said, remains possible despite the recent slowdown of third quarter GDP to 5.2 percent. The think tank

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Fu rther, the new polymer series has additional security features. Improving the security features of banknotes will help the BSP fight counterfeiting. Lim said the standard is for central banks to change banknote designs every 10 years to fight counterfeiting, but it has been over a decade since the country’s last banknote update. We want to be more advanced than the counterfeiters who copy our money. So, to make it harder for them and to ensure our money is less vulnerable to counterfeiting activities, we replace every 10 years,” Lim said, partly in Filipino.

We revisit the design, add security features for our banknotes. From the new generation currency series, it has been more than 10 years actually,” she added. S ome of the security features of the polymer notes are the see-through windows, which, Lim said, is one of the most difficult to replicate. There are two see-through windows in the new series and Filipinos should be able to see through these windows to know that they are holding real Philippine money.

Tactile, PWD-friendly ANOTHER feature is the rough printing particularly for the fauna features in front of the banknotes. These are purposely made more tactile for security purposes and for persons with disability.

B SP Banknotes and Securities Production Management Department Director Sarah Severina C. Curtis said the visually impaired can feel the change in the roughness of the bills.

E arlier, the President said he wanted to “regain control”— through line veto—of the proposed P6.35-trillion 2025 General Appropriations Act (GAA), which contained Ccongressional insertions that lack appropriate documentation.

T he chief executive told reporters he wants to purge the said insertions from the proposed 2025 national budget due to scarce government resources. He said the insertions were not part of the 2025 National Expenditure Plan, which they submitted to Congress for consideration. (See: https://businessmirror.com. ph/2024/12/19/pbbm-well-regain-control-of-2025-budgetwith-review/).

“ Your excellency, this budget is more than a fiscal plan and an economic tool—it is a reflection of our shared commitment to build a nation where no Filipino is left behind,” PES said. By exercising your line-item veto power judiciously, your administration can leave a legacy of inclusive growth, economic resilience, and compassionate leadership,” they added.

expects the country’s GDP to average 5.8 percent next year.

A strong economy gives the BSP a platform to keep rate cuts gradual. GDP growth rebounded in the third quarter of the year, and while tight fiscal policy and weaker global demand will weigh on demand, strong consumption should ensure another year of solid growth in 2025,” Capital Economics said.

O n Thursday, the BSP said it will maintain an easing posture next year, but it considers a 100-basis-point (bps) reduction in key policy rates “excessive,” as inflation could rear its ugly head again in 2025.

T he Monetary Board decided to reduce policy rates by 25 basis points (bps), its third rate cut this year. The Thursday meeting of the seven-man Monetary Board is the last for 2024.

The latest reduction brought down the prevailing interest rates to 5.75 percent. The interest rates on the overnight deposit and lending facilities were accordingly adjusted to 5.25 percent and 6.25 percent, respectively. Cai U. Ordinario

Curtis said the polymer notes also have a special feature of dots that PWDs can feel. For the P1,000 polymer note, there are five dots; P500, four dots; P100, three dots; and P50, two dots. Meanwhile, Lim said that while shifting to polymer banknotes is more expensive, the durability of the polymer banknotes can be more cost-effective in the long run. Th e higher cost is due to the material being used which is a plastic substrate which is more durable and thus does not require frequent printing. Lim stressed that the bills, however, cannot be ironed or subjected to extreme temperatures causing it to break.

Printed in Australia

CURRENTLY, the country’s polymer banknotes are still being printed in Australia via Note Printing Australia which is done through a collaboration of the BSP and the Reserve Bank of Australia.

“ Right now, we are starting to build our capacity. Our printers are studying how this can be done, what machines are needed, environmental conditions—eventually we will have the capability to print it here in the Philippines,” Lim said. Lim also said the P200 banknote was not included in the new series because based on their study, fewer Filipinos use these bills. Filipinos, she said, were more partial to using the P100 or the P500 banknotes.

A s for the P20, Lim said since the BSP has released the P20 coin, there was no longer a need to print a banknote version. Besides, she said, P20 bills are easily damaged as more Filipinos use them. Turning these bills into coins ensures durability, thereby avoiding frequent replacements. This is, Lim said, part of the BSP’s aim to extend the lifespan of Philippine currencies in circulation. Cai U. Ordinario

www.businessmirror.com.ph

NPC to Senate: Tackle bill on media role in drug busts

HE National Press Club

T(NPC) on Sunday called on the Senate to tackle the bill that excludes members of the media from individuals tasked to witness inventory of seized suspected illegal substances during anti-drugs operations.

The group echoed the sentiments of the party-list group ACTCIS and its nominee in the House of Representatives, Rep. Erwin Tulfo, who earlier urged the Senate to file the measure that the lower chamber has approved.

The bill amends Section 21 of

Republic Act 9165 of the Comprehensive Dangerous Drugs Act of 2002.

NPC president Leonel Abasola said it is time to amend the law owing to the dangers it brought to media personnel, who in many cases are not only subjected to threats but also suffer the inconvenience of attending court hearings.

“It is now timely to amend this because the lives of media practitioners are being put at risk,” Abasola said.

See “NPC,” A4

Physicians record high number of cases of TB in Manila district

THE vaccine expert of the House of Representatives on Sunday urged the public to take extra precautions against respiratory ailments.

Iloilo Rep. Jeanette Garin issued the call in the wake of reports of a high number of cases of pulmonary tuberculosis (TB) in Tondo, Manila.

The group Médicins Sans Frontières (MSF), earlier reported that its members diagnosed 1,280 residents with tuberculosis (TB) in the district.

“This is alarming. The government must take action against the increasing number

See “TB,” A4

Ambush of Sulu poll exec election related–Garcia

By Justine Xyrah Garcia

THE ambush on a Commission on Elections officials in Zamboanga City on Saturday morning is possibly election-related, Comelec Chairman Erwin M. Garcia said on Sunday.

In a radio interview, Garcia said that based on his conversation with the victim, Sulu Provincial Election Supervisor Vidzfar Julie y Amil, the incident may be considered election-related because Julie said he turned down the requests of some politicians in Sulu.

On Saturday morning, Julie and his brother, Naser Amil Asiri, were en route to the airport at barangay Sta. Maria, Zamboanga City, when they were fired upon by motorcycle-riding men.

Asiri was killed in the attack.

Base sa ating pakikipanayam sa kaniya, siya po ang nagsasabi na mukhang ito ay electionrelated sapagkat meron silang tinanggihan na mga bagay doon sa ilang mga politiko doon

[Sulu],” he explained.

Garcia added that Zamboanga City could potentially be placed under Comelec control or declared an area of concern if election-related incidents like this persist in the locality.

Garcia also urged the National Police to immediately arrest those involved.

He stressed that the Comelec currently lacks the authority to act until the election period officially begins on January 12.

“No words are enough to condemn this treacherous act of violence against our people,” Garcia said in a statement.

“What is more gruesome and unforgivable is when a loved one is caught in the crossfire. We demand immediate action from authorities to bring the perpetrators to justice,” he added.

According to initial reports, two assailants aboard a white motorcycle attacked Julie’s vehicle, firing multiple gunshots.

The attackers, described as wearing black jackets and full-face

helmets, fled the scene immediately after the shooting.

Julie survived the ambush without injuries, but his brother sustained multiple gunshot wounds in different part of the body including the head.

Naser succumbed to his wounds shortly after arrival at the hospital. This incident marks the third attack on election officials since October, highlighting growing concerns about election-related violence.

“An attack against one of our own election workers is an attack against democracy and will never be tolerated, and election-related violence shall not be the norm,” Garcia said.

According to the Comelec, the Zamboanga City Police Station 7 is already coordinating with other law enforcement agencies in the investigation of the attack.

The Comelec has also reiterated its commitment to ensuring the safety of its field officials as the election season approaches.

Pimentel pushes online booking for provl buses

By Butch Fernandez

@butchfBM

SENATE Minority Leader Aq-

uilino Pimentel III on Sunday urged bus companies to fully implement online booking systems to ease congestion at terminals and improve passenger experience.

Pimentel emphasized the benefits of advance online booking, saying, “ Mas maginhawa ang pagbiyahe kung mayroon tayong online booking system. Malaking tulong ito sa mga pasahero, lalo na sa mga panahon ng bakasyon.”

He noted that while many bus companies have adopted online ticketing systems, there are still some that rely solely on over-thecounter transactions.

Pimentel suggested that the Department of Transportation should explore the possibility of requiring online payment for terminal fees.

Makakatulong ito para maiwasan ang mahabang pila sa mga counter ng terminal,” he said. The Senator reiterated the importance of addressing the needs

See “Online,” A4

DA accredits four more countries as meat sources

TPuerto Princesa retirement plan contrary to GSIS law–Court

Tin an interview.

By Ada Pelonia @adapelonia

HE Philippines could expect more sources of meat imports following the accreditation of meat plants from four countries.

Agriculture Assistant Secretary for Ruminant Livestock Benjamin Albarece confirmed that the Department of Agriculture (DA) granted accreditation to foreign meat establishments (FMEs) in Sweden, Portugal, India, and Russia.

He noted that the Philippines could import meat products from these countries, with the majority of shipments focusing on beef products.

“Essentially, it will be more of the beef. Ang laki ng requirement natin ng beef—either beef from cattle or beef from buffalo,” Albarece told the BusinessMirror

“I would assume there are countries that they have accepted yung export [of] pork. Meron narinig din ako na chicken [but] the bigger portion will be more on beef,” he added. Under existing rules and guidelines, exporters to the Philippines are required to secure accreditation of its FMEs to ship meat and meat products into the country.

The accreditation would ensure that an inbound shipment is safe for human consumption and does not pose a threat to the domestic livestock and poultry industry.

“It’s a very good move to open up countries, especially kasi kulang naman talaga tayo [in terms of] volume,” Albarece said.

“If we have not been importing buffalo meat from India, ubos na kalabaw natin with the volume of what Filipinos eat,” he added.

The Philippines imports around

40 percent of its carabeef needs because domestic production cannot fully meet market demand.

Albarece noted that the same could be said of the country’s beef cattle supply, wherein the Philippines could only supply 40 percent of its requirement and import the 60 percent balance.

“ Ngayon parang beef cattle at ang buffalo meat, parang lahat na sila nasa 60:40,” he said.

Last June, Agriculture Secretary Francisco Tiu Laurel Jr. issued a special order that instructed DA inspection teams to travel to Argentina, Uruguay, India, Russia, Denmark, Spain, Sweden, and the United States for FME accreditation.

Albarece said some of the inspection teams were yet to report back regarding the mission, but noted that the report on Argentina may be released before yearend or by early 2025.

“The final results may not have been submitted. Like Argentina, [the result would be released] this December probably or early next year,” he said.

Meanwhile, the DA recently said it has approved the accreditation of 34 Indian companies to supply frozen buffalo meat, with Laurel confirming that all 34 Indian exporters had met the requirements.

However, he added that 13 of these companies will not be immediately allowed to export carabeef to the Philippines, since their operations are based in Maharashtra, Telangana, and Bihar where active FMD outbreaks have been reported.

The DA has imposed an import ban from the said states, noting that shipments of carabeef from these regions will be prohibited until India’s National Competent Authority declares them free from FMD.

Development of green energy brings promise of new investments–legislator

By Jovee Marie N. dela Cruz @joveemarie

ASENIOR lawmaker on Sunday said the development of green energy— particularly wind, solar, and other variable renewable energy (VRE) sources—as a promising avenue for foreign investments.

Sur Rep. Luis Raymund Villafuerte said this development aligns with the Marcos administration’s efforts to accelerate the country’s transition from fossil fuels to clean and sustainable energy sources.

“VRE development promises to be the new wellspring for investments from overseas green conglomerates as global investors start appreciating the heightened efforts by our government to fast-track the energy transition to clean and sustainable energy, in step with President Marcos’ commitment to provide clean, cheap, and ample power to Filipino consumers on his watch,” Villafuerte said. He issued the statement fol -

lowing the opening of the Manila office of Danish company Copenhagen Offshore Partners (COP), which has committed an initial $30 million (P1.7 billion) for preparatory activities in its first of four planned offshore and onshore wind projects in the Philippines.

At COP’s inauguration in Bonifacio Global City (BGC), its officials unveiled plans for projects requiring a combined investment of $5.5 billion (P319 billion) to generate 2,000 megawatts (MW) of wind energy.

The first of these projects— a $3 billion offshore wind farm producing 1,000 MW—is set to be developed in Camarines Sur’s San Miguel Bay, Villafuerte’s home province. The project, targeted for completion before 2028, is expected to employ 2,500 individuals and emerge as the country’s largest wind energy project.

Villafuerte highlighted COP’s steps in advancing its San Miguel Bay project, including securing an environmental compliance certificate from the Department of Environment and Natural Resources

(DENR), conducting wind measurements, and participating in the Department of Energy’s (DOE) Green Energy Auction.

COP’s four Philippine wind projects, spanning Camarines Sur, Pangasinan, Northern Samar, and Nueva Ecija, collectively exceed $5.5 billion in projected investments. These efforts are part of a broader strategy by the DOE, which has so far awarded 92 offshore wind contracts with a combined potential capacity of 66 gigawatts (GW).

The DOE estimates that the Philippines could deploy 40 GW of offshore wind energy by 2050— ample to meet the nation’s projected peak demand of 500,000 MW by 2040.

Villafuerte said Camarines Sur is poised to become a key center for wind energy in the Philippines, hosting 16 wind farm projects with a total potential capacity of 7,668 MW. Among these is the Libmanan Onshore Wind Farm, a joint venture by Aboitiz Power Corporation and Mainstream Renewable Power,

Go lauds groundbreaking of new Super Health Center in Batangas

a Dublin-based green energy firm with 100 GW of projects worldwide.

“This pioneering wind farm to be built by Danish infrastructure investment on San Miguel Bay, along with 15 more OSW projects, will help the Marcos administration accelerate its planned transition from fossil fuel to renewables for the radical reduction of the Philippines’ carbon footprint,” Villafuerte said.

“These 16 wind power projects in CamSur, which have a total potential capacity of 7,668 MW of electricity, support the Marcos administration’s decarbonization goal of significantly increasing the share of indigenous sources like wind and solar in our country’s energy mix,” he added.

Villafuerte said that the Camarines Sur wind projects represent a significant stride toward realizing the administration’s energy security and low-carbon future goals, contributing to the nation’s target of sourcing 35 percent of its electricity from renewables by 2030 and 50 percent by 2040.

on Finance, funding has been allocated for over 700 Super Health Centers nationwide, ensuring that communities across the Philippines will have better access to healthcare.

of commuters, especially during peak travel seasons.

Hangad natin na magkaroon ng mas maayos at maginhawang biyahe ang bawat Pilipino Ang online booking ay isa sa mga paraan para makamit natin ito ,” Pimentel said. Ang online booking ay nagbibigay ng katiyakan sa mga pasahero na mayroon silang tiket at siguradong upuan sa bus,” he added.

SEN. Christopher Go, chairman of the Senate Committee on Health and Demography, expressed his support during the groundbreaking ceremony of a new Super Health Center in Emmanuel, Cuenca, Batangas, on Thursday.

The initiative was made possible through the collaboration of Go, fellow lawmakers, the Department of Health (DOH), and the local government of Cuenca, led by Mayor Alexander Magpantay, with the

goal of enhancing access to essential health services for his fellow Batangueños.

The Super Health Center initiative aims to decongest hospitals by providing basic health services such as medical consultations and primary care closer to communities, especially in rural areas. It is also designed to facilitate early detection of illnesses and reduce travel costs for patients seeking treatment.

With Go’s support and as vice chairman of the Senate Committee

In Batangas, 18 Super Health Centers are funded, including the one in Cuenca, which is strategically located to serve nearby communities effectively.

The senator’s Malasakit Team also distributed relief items, including snacks, shirts, basketballs, and volleyballs, to barangay health workers who were present during the event.

Since their inception, the 166 Malasakit Centers nationwide have assisted over 15 million Filipinos, according to DOH data.

By Joel R. San Juan @jrsanjuan1573

HE Supreme Court has affirmed its 2023 ruling which upheld the Commission on Audit’s (COA) decision to nullify the “early and voluntary separation incentive program” (Evsip) of the Puerto Princesa city government amounting to P89.6 million for being contrary to the provisions of the Government Security and Insurance System (GSIS) charter.

In an 18-page en banc resolution, the Court maintained its decision not to tackle the claim of respondents city Mayor Lucilo Bayron and several other local officials that they acted in good faith in enacting and implementing the appropriations for the Evsip.

The SC said COA’s findings relative to its Decision 2020100 dated January 16, 2020 have already been forwarded to the Ombudsman for the latter’s investigation and case buildup.

“The Court reiterates its deferral to the jurisdiction of the Office of the Ombudsman in preliminary investigations relative to the alleged misconduct of government officials—the results of which Respondent may use in its determination of whether or not to pursue Petitioners and others for the disbursed amount under PPCG’s Evsip, i.e., P89,672,400.74,” the SC said.

The Court’s decision denied the motion for reconsideration filed by Bayron, city Councilors Jimmy L. Carbonell, Henry A. Gadiano and Feliberto S. Oliveros III, Supervising Administrative Officer and acting Budget Officer Roberto Herrera and Administrative Officer II and member of the Screening and Evaluation Committee Mylene Atienza of the government of Puerto Princesa.

However, the SC absolved Herrera and Atienza of any monetary liability relative to the of any monetary liability relative to the refunding of the amounts covered by the COA’s

Continued from A3

He added that the NPC and other stakeholders discussed the topic in a consultative meeting with the Presidential Task Force on Media Security.

Notices of Disallowance. It stressed that the two city government officials merely performed the functions relative to the implementation of Evsip “which they were duty bound to honor and obey as faithful PPCG [Puerto Princesa City Government] employees.” Such consideration, according to the Court, cannot be applied to Bayron and other respondents considering that they were sitting members of the city council that approved and adopted the ordinance for the appropriation and implementation of Evsip.

“It is not for the Court –which is not a trier of facts –at present to the rule on their assertion of good faith when, when clearly , their roles as sitting members of the local legislative body that approved and adopted a patently ultra vires [beyond the powers] local budgetary appropriation deserve more detailed and exhaustive evidentiary determinations before the proper forum. The case stemmed following the establishment of the Evsip of the city government in 2010 through Ordinance 438 and Resolution 850-2010 of PPCG’s Sangguniang Panlungsod. Subsequently, the COA issued a series of notices of disallowance in 2013 on the payment of benefits under the EVSIP in the total amount of PHP 89,672,400.74.

In 2023, the Court declared City Ordinance 438 and Resolution 850-210 as ultra vires and contrary to the explicit proscription of Commonwealth Act 186 otherwise known as the Government Service and Insurance System (GSIS) law, due to the Evsip’s early retirement plan for PPCG’s officials and employees. The SC eventually upheld COA’s notices of disallowances and declared City Ordinance 438 and Resolution 850-210 as ultra vires and contrary to the explicit proscription of Commonwealth Act 186, due to the Evsip’s early retirement plan for PPCG’s officials and employees.

Tulfo in a statement expressed gratitude to the NPC and its members for their support.

of tuberculosis in the country,” the lawmaker pointed out.

Garin added that such was also seen in Iloilo during the Bantay Kalusugan, a medical mission that she initiated.

Amid the increasing number of TB cases, Garin expressed concern as the medicines for TB are always out of stock in public medical facilities which leads to inaccessible healthcare.

“ Nakakabahala na kulang ang gamot para sa ganitong uri ng sakit Tamang  distribution  at maaayos na sistema sa pagbibigay ng gamot ang kailangan upang matiyak na makakakuha ng sapat na gamot ang mga Pilipino ,” Garin said, adding that such diseases is preventable and curable.

According to the World Health Organization (WHO), approximately 10.8 million individuals worldwide contracted TB in 2023.

“TB is an infectious disease caused by bacteria that most

“I am grateful to the NPC for supporting my call to exclude journalists from being involved or made witnesses in anti-drug operations because it puts the lives of my former colleagues in the profession at risk,” said Tulfo. Jovee Marie N. dela Cruz

often affects the lungs. It spreads through the air when people with disease cough, sneeze or spit, WHO said.

Based on the data of the US Agency for International Development, the estimated TB incidence in the Philippines in 2021 was 741,000. An estimate of 61,000 people died from the said disease during the same year. TB has been thought to have been eradicated for some years now but it made a recent resurgence. During Garin’s watch as Secretary of Health, the government focused on dengue and even introduced the new vaccine Dengvaxia, that was still on its Clinical Trial Phase IV then, to prevent people especially children from the mosquito-borne disease.

Almost a million individuals were innoculated against dengue during that time.

Clinical Trial Phase IV is the stage at which while a new drug had been licensed for distribution, those who use it should still be monitored in case they exhibit adverse reactions.

December 23, 2024

‘New ASF zoning system will cut pork prices’

TBy Ada Pelonia @adapelonia

HE Department of Agriculture (DA) will modify the zoning system for controlling and preventing the spread of African swine fever (ASF) to make it easier to transport pork and tame prices.

Agriculture Secretary Francisco

Tiu Laurel Jr. said the agency is crafting a policy that will divide the classification into whether a province has ASF cases or not, scrapping the existing color coding system used to categorize areas with confirmed outbreaks of the disease.

“The new policy which we are currently crafting will be easier especially for farmers,” Laurel told reporters in an interview, adding that the existing color-coding system has been “stigmatized.”

Cold storage facility opens in Pampanga

By VG Cabuag

AYALALAND Logistics Holdings Corp. (ALLHC) opened its fifth cold storage facility, Artico Mabalacat, in Pampanga Technopark.

Regional Fish Inspector, who represented Bureau of Fisheries and Aquatic Resources, Region 3 Regional Director, Wilfredo M. Cruz.

The agriculture chief said areas tagged as red zones prevented the shipment of pork and prompted the culling of hogs within a 1-kilometer radius of the infected farm.

With the upcoming modified policy, he said local transport of pork from provinces with ASF cases would be allowed provided that the hogs will test negative for the disease, thus removing the imbalance in the supply chain.

“The idea is test and ship [...] That will basically stabilize the market for pork,” Laurel said, noting that the new system “should

“Some farmers do not want to report [fatalities] because they don’t want their areas to be classified as a red zone. That system already has a negative connotation with everybody, so we have to change it.”

lower the average price of pork.”

He said the new policy could be released by January next year.

Laurel said vaccines against ASF will be available for commercial use by March 2025.

He said the agency is currently distributing the 150,000 doses of ASF vaccines that have arrived in the country recently.

“If the 150,000 doses are used up, there will be mass trial results. Hopefully, we can start [its] commercial use possibly by March next year,” Laurel.

The agriculture chief said the government has procured 490,000 doses, which will arrive on a staggered basis until the first half of 2025.

Last August, the DA started the government-controlled inoculation of the ASF vaccine in Lobo, Batangas. The municipality was considered ground zero of the ASF outbreak in the same month.

The Bureau of Animal Industry data showed that 19 provinces and 88 municipalities have active ASF cases as of December 6.

FAO conducts trainings to boost skills of PHL veterinarians

THE outflow of skilled veterinarians from the Philippines is one of the challenges that Manila is dealing with in its bid to eliminate animal diseases like African swine fever (ASF).

The Food and Agriculture Organization of the United Nations (FAO) said it is committed to help the Philippines ensure that it will have enough veterinarians who are capable of combating animal diseases.

FAO Representative in the Philippines Lionel Dabbadie said the international organization conducts training to bring Filipino veterinarians up to speed on the latest trends and knowledge on African swine fever (ASF).

“In the Philippines, what we are doing is organizing training but, again [...] we are not working so much about direct organizing training because the government can do it very well and it is their mandate. It’s not our mandate to replace them,” Dabbadie told the BusinessMirror in an interview.

While commending the government’s response to the deadly hog disease, he expressed concern about Filipino veterinarians who opt to leave the country.

“This challenge in the Philippines is really about training the trainers because as soon as they get opportunities [and] they get the knowledge, they are recognized for their competence and they go abroad,” Dabbadie said.

“That’s where we can we can play your role [by] updating the people with the latest knowledge but also at the same time making sure that the people who are leaving are replaced by also competent people.”

‘Integrated approach’ MEANWHILE , Dabbadie noted that FAO is pushing the One Health approach to address three dimensions of diseases which involve the environment, humans, and animals.

The country’s One Health mechanism is the Philippine Inter-Agency Committee on Zoono -

ses (PhilCZ), which involves the Department of Environment and Natural Resources (DENR), Department of Health (DOH), and Department of Agriculture (DA).

“One Health is a new approach that considers that you cannot [separate] animal health from the human health and human behavior and the environment. All these three are very deeply interconnected,” he said.

Dabbadie said the grant from The Pandemic Fund would be tapped to tackle these diseases.

In October, FAO announced that the Philippines secured a $24.9-million grant from The Pandemic Fund which will bolster the country’s health systems. (See: https://businessmirror. com.ph/2024/10/30/pandemic-fund-grants-24-9-m-loanto-phl/)

Dabbadie said the grant under the “Resilient Philippines” project would strengthen disease surveillance and early warning systems and expand laboratory networks and cross-sectoral collaboration.

He said the country’s proposal stood out in this year’s competitive funding round through the joint efforts of various government agencies and key stakeholders.

These include the DA, DOH, Department of Finance (DoF), the World Bank, and the Emergency Centre for Transboundary Animal Diseases (Ectad) of the FAO.

Dabbadie noted that the project would mark a pivotal step in “fully implementing” the One Health approach in the country, a framework that recognizes the interconnectedness of human, animal, and environmental health.

“It is crucial because diseases don’t respect borders—whether geographical, species, or ecological,” he said.

“By fostering collaboration across sectors, from agriculture to health and environmental management, One Health approach helps to better detect, prevent, and respond to health threats like zoonoses, antimicrobial resistance, and transboundary animal diseases.” Ada Pelonia

Cocoa caps 2024 as biggest commodity winner. It’s not over yet

COCOA’S rally has soared past all major commodities in 2024, and there’s little sign the tight supply and fragile trading landscape that prompted its near-vertical trajectory are in for a fast fix. Prices have almost tripled as faltering production in West Africa—the world’s biggest growing region—spurred massive supply shortages. Many traders, burned by soaring costs to maintain positions, fled the market as the rally gained steam, and chocolate makers sat out hedging new inventory in a bid for lower prices.

But harsh weather and a virulent crop disease have raised fresh concerns about this season’s harvest, lifting New York futures to an all-time high of nearly $13,000 a ton just this week. However, in a market that could continue rallying, some chocolatiers aren’t waiting anymore to lock in prices. The already-low futures liquidity is also adding to the wild swings, sending cocoa’s gains even beyond Bitcoin. “At these levels it’s all pain,”

said Vladimir Zientek, a trading associate at financial services firm StoneX Group Inc. “As we have seen countless times this year, if this market wants to trend in one direction, it has all the power to do so.”

The cocoa market had cooled, after surging to just under $12,000 a ton in April, on expectations of better harvests in West Africa. The rally resumed in November as the weather became unfavorable for crop development, dimming hopes of a significant recovery.

“It doesn’t really look like anything on the supply side got fixed this year and we’re really one hiccup away from having a fourth consecutive deficit,” said Zientek. “If we have that drop, are we really going to have enough cocoa to fulfill the old contracts and the new contracts that’ve been forward sold?”

Both Ivory Coast and Ghana are still grappling to fulfill contracts they were forced to roll over from the last season.

The relentless advance has caused pain on several fronts, especially for chocolatiers who sat

out hedging new inventory waiting for prices to continue cooling. Now, confronted with record-high prices, their frantic buying has helped fuel the market higher.

Maintaining short positions has also become “prohibitively more expensive,” forcing some players to exit the market as they “don’t have the ability or willingness to refinance these losing positions,” said Stephen Butler, chief commercial officer at ChAI, a platform that uses AI to analyze commodity markets.

Limited selling of futures by commercial players, after last season’s shortfall in bean deliveries, has helped drive their gross short positions in the New York exchange to the lowest seasonal level since 2011, according to JPMorgan Chase & Co. analyst Tracey Allen. That has further drained liquidity, making the market even more vulnerable to large price swings.

Cocoa shipments from top grower Ivory Coast have fared well so far, running about 33 percent ahead of last season’s pace, according to data

compiled by Bloomberg. But the increase is “somewhat misleading,” as the previous year’s level was very low, Commerzbank analysts said in a Tuesday note.

Following a sharp drawdown in global stockpiles, the buffer is small if West Africa’s crop disappoints, “which increases the risk of price spikes,” the analysts added.

While prices for raw beans have surged to records, an increase in cocoa butter costs—a key chocolate ingredient extracted from them—has been tempered by weakening demand, according to data from KnowledgeCharts, a unit of Commodity Risk Analysis. That could cap price gains next year as chocolate makers switch away to equivalents made with ingredients like palm oil.

“Demand is uncertain at this point and grinding data for the fourth quarter will be closely scrutinized when released in midJanuary for any indication of destruction,” said Allen. The current price levels will more likely be felt in demand in the second quarter of 2025, she added. Bloomberg News

“By building this cold storage facility within our very own industrial park development, Pampanga Technopark, we reaffirm our commitment to providing exceptional service and setting new standards in the industrial and real estate logistics industry,” Patrick C. Avila, ALLHC COO, said.

The facility has 4,000 pallet positions across 19 cold rooms, with temperatures ranging from 5 degree Celcius to -25 degree Celcius.

This latest addition increases ALLHC’s portfolio to approximately 20,000 pallet positions, addressing the growing demand for temperature-controlled facilities in Central Luzon, the company said.

Serving industries including frozen meat, seafood, pharmaceutical and industrial, the facility will be registered with the Board of Investments and key regulatory agencies including the National Meat Inspection Service, the Bureau of Fisheries and Aquatic Resources (Bfar), and the Bureau of Plant Industry.

“These facilities are vital in preserving the quality and safety of perishable goods, ensuring that we can meet the growing demand for products in both local and global markets,” Merry Jane Espinosa,

Artico Mabalacat is strategically located with easy access via expressways in northern and southern Luzon and MacArthur Highway; and is in close proximity to key infrastructure such as Clark International Airport of about 20 to 30 minutes and the Subic Bay International Terminal, about one hour.

ALLHC has recently completed the first phase of ALogis Mabalacat, a 7,700-square meter warehouse, with construction already underway for the second phase, which will add another 18,000 square meters of gross leasable area.

These ready-built facilities provide light to medium enterprises with the infrastructure needed to immediately launch operations, fostering business growth and economic activity in the region.

The company said the strategic integration of Artico Mabalacat cold storage facility and ALogis Mabalacat ready-built facilities bolsters the supply chain in Luzon by empowering businesses across various sectors and fostering a more efficient, sustainable distribution network within the region.

“This initiative also positions Pampanga Technopark as a pivotal player in addressing the nation’s increasing demand for streamlined and reliable logistics solutions, significantly contributing to the Philippines economic growth.”

Ifad unveils free global data platform

THE UN’s International Fund for Agricultural Development (Ifad) has launched RemitSCOPE, a free and interactive web platform providing essential data on global remittances.

IAs migration continues to increase worldwide due to the record number of active conflicts, economic instability, and climate change, Ifad said RemitSCOPE.org seeks to improve access to digital remittances, reduce transfer costs and facilitate access to related financial products, aiming to improve the lives and livelihoods of vulnerable rural communities in low- and middle-income countries (LMICs).

In developing countries, the money sent home by relatives often serves as an economic lifeline for millions of families. RemitSCOPE. org focuses on these countries from the Global South, where access to finance remains a challenge, especially in rural areas where hunger and poverty remain deeply entrenched.

“Remittances not only help make ends meet, but they also cover essentials like education and healthcare while enabling investments in small businesses,” said Pedro de Vasconcelos, Manager of Ifad’s Financing Facility for Remittances. “This creates resilience to economic shocks and drives long-term economic growth.”

Remittances play a crucial role in the global economy. In 2023 alone, LMICs received an estimated $656 billion in remittances, surpassing

the sum of all foreign direct investment and official development assistance combined. The money sent home by migrant workers continues to be the primary financial inflow to these countries.

Despite their importance, significant data gaps persist in the remittance sector, limiting understanding of trends and hindering efforts to improve accessibility and reduce transaction costs.

RemitSCOPE offers reliable, upto-date information sourced from trusted global partners as well as primary research.

“The platform aims to empower stakeholders—such as remittance service providers, policymakers, regulators, and development organizations—with insights that help them understand where remittances flow, the costs, market dynamics, accessibility and trends to maximize the business and development opportunities. Ultimately, this web tool aims to make the most of remittance flows as a powerful tool for rural development,” added de Vasconcelos.

“Our team at Onafriq has used RemitSCOPE beta-version to help us understand and profile individual remittance markets in Africa. We have found the information extremely helpful as we continue to grow our business,” said Jessica Nitiema, Knowledge Manager, Onafriq, a digital payments gateway.

December 23, 2024

NOTICE OF FILING OF APPLICATION FOR ALIEN EMPLOYMENT PERMIT (AEP/S)

Notice is hereby given that the following companies/employers have filed with this Regional Office application/s for Alien Employment Permit/s:

1 AICE PHILIPPINES ICE CREAM INC.

Block 9A, Lots 1-3, Lima Technology Center, San Lucas, City of Lipa, Batangas HAN, YUNHU

Production Supervisor

Brief Job Description:

According to the production task, arrange the production in strict accordance with the quality standards to ensure the completion of the production task; Strictly control production costs and save costs; Manage the production site to ensure that the production site meets the management requirements

2 AICE PHILIPPINES ICE CREAM INC.

Block 9A, Lots 1-3, Lima Technology Center, San Lucas, City of Lipa, Batangas LI, BO

Production Supervisor

Brief Job Description: arrange the production in strict accordance with the quality standards to ensure the completion of the production task

OTAKI, SYUNICHI

3 ARTNATURE MANUFACTURING PHILIPPINES INC.

Lot 2, First Street, First Philippine Industrial Park, Santa Anastacia, City of Sto. Tomas, Batangas

Production Division Adviser

Brief Job Description:

4 BANDAI NAMCO PHILIPPINES INC.

Phase 2A, Block 1, Lot 2, JP Rizal Ave., Lima Technology Center, San Lucas, City of Lipa, Batangas

5 DALEBO CONSTRUCTION & GENERAL MERCHANDISE

L12, B5, Glowing Field Subd., Sahud Ulan, Tanza, Cavite

6 EVERICH ELECTRICAL (PHILIPPINES) INCORPORATED

L9 B4, Suntrust Ecotown Tanza, Sahud Ulan, Tanza, Cavite

Qualification:

Minimum of 2 years

To provide and advise overall planning and control in production division Basic Qualification: Must have 10 years’ experience in production operations of a manufacturing company

UCHIDA, IONA

Management Trainee

Brief Job Description:

In-charge of importations and exportations via air and sea shipments process

OH, CHUNSEK

Project Manager

Brief Job Description:

Create construction schedule, budget management and manage equipment

GUO, DAOPING

Quality Control Manager

Brief Job Description:

Inspect output samples using industryappropriate methods, such as comparing to standards, measuring dimensions and examining functionality

7 H.R.D. SINGAPORE PTE LTD

Block 3, Cavite Economic Zone

II, Bacao II, City of General Trias, Cavite YUZAWA, TAKASHI

Adviser - Finance Costing

Brief Job Description:

Adviser and approver of certain payments and other accounting related issues

OZAKI, GOYU

8 H.R.D. SINGAPORE PTE LTD

Block 3, Cavite Economic Zone

II, Bacao II, City of General Trias, Cavite

Adviser - Unit Purchasing

Brief Job Description:

In-charge of supervising the materials that factory will need

Salary Range: Php 150,000 - Php 499,999

Basic Qualification: Bachelor’s degree in business administration or any related field and fluent in Nihonggo

Salary Range:

Php 30,000 - Php 59,999

Basic Qualification:

At least 1 year experience in the field

Salary Range:

Php 30,000 - Php 59,999

Basic Qualification:

Male who can speak fluently in Mandarin language and in-depth knowledge of Production

Salary Range:

Php 30,000 - Php 59,999

Basic Qualification: Possess managerial and supervisory skills

Salary Range:

Php 150,000 - Php 499,999

Basic Qualification: Knowledge in housing and construction procedures

Salary Range: Php 150,000 - Php 499,999

Unit 1, Kt Homes, San Fernando, Malvar, Batangas

QIU, BINHUA

Site Supervisor

Brief Job Description: Manage and give instruction

9 HYUNDAI ENGINEERING & CONSTRUCTION CO., LTD.

Sb Hain Compound, NIA Road, Niugan, City of Cabuyao, Laguna KIM, BYUNGKEUN

Construction Manager

Brief Job Description: Monitoring of Compliance for Construction and Safety regulations Basic Qualification: With a minimum of (10) years of experience in railway constructions

Salary Range: Php

10 Main Avenue, Light Industry and Science Park 1, Diezmo, City of Cabuyao, Laguna

Lot 1, Blk 5, Millenium Drive, Light Industry and Science Park III, San Rafael, City of Sto. Tomas, Batangas

CHEN, FEI Offset Printing Senior Operator

Brief Job Description:

Set-up, resolves technical problems with presses, inks, and other solutions as necessary. Adjust, and operates offset printing presses to print various printed materials.

Lot 1, Blk 5, Millenium Drive, Light Industry and Science Park III, San Rafael, City of Sto. Tomas, Batangas DENG, HANGXIN Offset Printing Senior Operator

Brief Job Description: Set-up, resolves technical problems with presses, inks, and other solutions as necessary. Adjust, and operates offset

INC.

Lot 1, Blk 5, Millenium Drive, Light Industry and Science Park III, San Rafael, City of Sto. Tomas, Batangas

15 YELLOW RIVER POWER CONSTRUCTION AND SUPPLIES CORPORATION

No. 20, Narra Rd, San Antonio, City of San Pedro, Laguna

LAN, XIAOPING Offset Printing Senior Operator

Brief Job Description:

Set-up, resolves technical problems with presses, inks, and other solutions as necessary. Adjust, and operates offset printing presses to print various printed materials.

LYU, GUIYOU Operation Manager

Brief Job Description:

Operation manager are changes with monitoring, analyzing and improving their company’s

ZOU, CHUNCHENG Slitting Machine Leader

Block 19, Lima Technology Center, San Lucas, City of Lipa, Batangas

Brief Job Description: Ensure that the assembled products are conform to the specification given. ensures the machine runs efficiently products meet quality standard.

Any person in the Philippines who is competent, able and willing to perform the

the foreign national is desired may file an objection at DOLE Regional Office IV-A located at

Floors, Andenson Building II, Parian, Calamba City, Laguna, within 30 days after this publication.

Please inform DOLE Regional Office IV-A if you have any information on criminal offense committed by the foreign nationals.

MARION

ATTY.

US Navy pilots shot down over Red Sea–US military

By Jon Gambrell The Associated Press

UBAI, United Arab Emir -

Dates— Two US Navy pilots were shot down last Sunday over the Red Sea in an apparent “friendly fire” incident, the US military said, marking the most serious incident to threaten troops in over a year of America targeting Yemen’s Houthi rebels.

Both pilots were recovered alive after ejecting from their stricken aircraft, with one suffering minor injuries. But the shootdown underlines just how dangerous the Red Sea corridor has become over the ongoing attacks on shipping by the Iranian-backed Houthis despite US and European military coalitions patrolling the area.

The US military had conducted airstrikes targeting Yemen’s Houthi rebels at the time, though the US military’s Central Command did not elaborate on what their mission was and did not immediately respond to questions from The Associated Press.

The F/A-18 shot down had just flown off the deck of the USS Harry

In South

S. Truman aircraft carrier, Central Command said. On December 15, Central Command acknowledged the Truman had entered the Mideast, but hadn’t specified that the carrier and its battle group was in the Red Sea. “The guided missile cruiser USS Gettysburg, which is part of the USS Harry S. Truman Carrier Strike Group, mistakenly fired on and hit the F/A-18,” Central Command said in a statement.

From the military’s description, the aircraft shot down was a two-seat F/A-18 Super Hornet fighter jet assigned to the “Red Rippers” of Strike Fighter Squadron 11 out of Naval Air Station Oceana, Virginia. It wasn’t immediately clear how the Gettysburg could mistake an F/A18 for an enemy aircraft or missile, particularly as ships in a battle group remain linked by both radar and radio communication.

However, Central Command said that warships and aircraft earlier shot down multiple Houthi drones and an anti-ship cruise missile launched by the rebels. Incoming hostile fire from the Houthis has given sailors just seconds to make decisions in the past.

Sudan,

By Florence Miettaux The Associated Press

AYOD, South Sudan—Longhorned cattle wade through flooded lands and climb a slope along a canal that has become a refuge for displaced families in South Sudan. Smoke from burning dung rises near homes of mud and grass where thousands of people now live after floods swept away their village.

“Too much suffering,” said Bichiok Hoth Chuiny, a woman in her 70s. She supported herself with a stick as she walked in the newly established community of Pajiek in Jonglei state north of the capital, Juba.

For the first time in decades, the flooding had forced her to flee. Her efforts to protect her home by building dykes failed. Her former village o f Gorwai is now a swamp.

“I had to be dragged in a canoe up to here,” Chuiny said. An AP journalist was the first to visit the community.

Such flooding is becoming a yearly disaster in South Sudan, which the World Bank has described as “the world’s most vulnerable country to climate change and also the one most lacking in coping capacity.”

More than 379,000 people have been displaced by flooding this year, according to the U.N humanitarian agency.

Since the Truman’s arrival, the US has stepped up its airstrikes targeting the Houthis and their missile fire into the Red Sea and the surrounding area. However, the presence of an American warship group may spark renewed attacks from the rebels, like what the USS Dwight D. Eisenhower saw earlier this year. That deployment marked what the Navy described as its most intense combat since World War II.

On Saturday night and early Sunday, US warplanes conducted airstrikes that shook Sanaa, the capital of Yemen that the Houthis have held since 2014. Central Command described the strikes as targeting a “missile storage facility” and a “command-and-control facility,” without elaborating.

Houthi-controlled media reported strikes in both Sanaa and around the port city of Hodeida, without offering any casualty or damage information. In Sanaa, strikes appeared particularly targeted at a mountainside known to be home to military installations. The Houthis later acknowledged the aircraft being shot down in the Red Sea.

The Houthis have targeted about

100 merchant vessels with missiles and drones since the Israel-Hamas war in the Gaza Strip started in October 2023 after Hamas’ surprise attack on Israel that killed 1,200 people and saw 250 others taken hostage.

Israel’s grinding offensive in Gaza has killed more than 45,000 Palestinians, local health officials say. The tally doesn’t distinguish between combatants and civilians.

The Houthis have seized one vessel and sunk two in a campaign that has also killed four sailors. Other missiles and drones have either been intercepted by separate US- and European-led coalitions in the Red Sea or failed to reach their targets, which have also included Western military vessels.

The rebels maintain that they target ships linked to Israel, the US or the United Kingdom to force an end to Israel’s campaign against Hamas in Gaza. However, many of the ships attacked have little or no connection to the conflict, including some bound for Iran.

The Houthis also have increasingly targeted Israel itself with drones and missiles, resulting in retaliatory Israeli airstrikes.

thousands survive on edge of a canal

Seasonal flooding has long been part of the lifestyle of pastoral communities around the Sudd, the largest w etlands in Africa, in the Nile River floodplain. But since the 1960s the swamp has kept growing, submerging villages, ruining farmland and k illing livestock.

“The Dinka, Nuer and Murle communities of Jonglei are losing the a bility to keep cattle and do farming in that region the way they used t o,” said Daniel Akech Thiong, a senior analyst with the International Crisis Group.

S outh Sudan is poorly equipped to adjust. Independent since 2011, the country plunged into civil war in 2013. Despite a peace deal in 2018, the government has failed to address numerous crises. Some 2.4 million people remain internally displaced by conflict and flooding.

The latest overflowing of the Nile has been blamed on factors including the opening of dams upstream in Uganda after Lake Victoria rose to its highest levels in five years.

The century-old Jonglei Canal, which was never completed, has become a refuge for many.

“ We don’t know up to where this flooding would have pushed us if the canal was not there,” said Peter Kuach Gatchang, the paramount chief of Pajiek. He was already raising a small

Holiday lights illuminate the world

New

from

the

have captured glistening scenes around the globe. In Jemez Springs, New Mexico, traditional luminarias, also known as farolitos, flickered through the Jemez Historic Site during last week’s annual Lights of Gisewa event. On the same day across the globe in Moscow, you could peer through a window of the Hotel Baltschug Kempinski out at St. Basil’s Cathedral and the GUM department store, bathed in lights for holiday festivities. And at the Johannesburg, South Africa zoo, actors in glowing,

a Norway

setts,

with 50,000 multi-colored lights. The

is also

with a Swarovski star crown featuring 3 million crystals. In Germany, a 42-meter-high bright red candle—actually an illuminated medieval tower—shone in the historic city center of Schlitz in late November. In Milan, Italy, it was a symphony in gold as people stood on a bridge and Christmas lights illuminated the Darsena dei Navigli, the neighborhood

g arden of pumpkins and eggplants in his new home.

The 340-kilometer (211-mile) Jonglei Canal was first imagined in the e arly 1900s by Anglo-Egyptian colonial authorities to increase the Nile’s o utflow towards Egypt in the north. But its development was interrupted by the long fight of southern Sudanese against the Sudanese regime in K hartoum that eventually led to the creation of a separate country.

Gatchang said the new community in Pajiek is neglected: “We have no school and no clinic here, and if you stay for a few days, you will see us carrying our patients on stretchers up to Ayod town.”

Ayod, the county headquarters, is reached by a six-hour walk through the waist-high water.

Pajiek also has no mobile network and no government presence. The area is under the control of the Sudan People’s Liberation Movementi n-Opposition, founded by President Salva Kiir’s rival turned Vice President Riek Machar.

V illagers rely on aid. On a recent day, hundreds of women lined up in a nearby field to receive some from the World Food Program.

Nyabuot Reat Kuor walked home with a 50-kilogram (110-pound) bag of sorghum balanced on her head.

“This flooding has destroyed our

farm, killed our livestock and displaced us for good,” the mother of e ight said. “Our old village of Gorwai has become a river.”

When food assistance runs out, she said, they will survive on wild leaves and water lilies from the swamp. Already in recent years, food aid rations h ave been cut in half as international funding for such crises drops.

More than 69,000 people who have migrated to the Jonglei Canal in Ayod county are registered for food assistance, according to WFP.

There are no passable roads at this time of the year, and the canal is too low to support boats carrying a lot of food,” said John Kimemia, a WFP airdrop coordinator.

In the neighboring Paguong village that is surrounded by flooded lands, the health center has few supplies. Medics haven’t been paid since June due to an economic crisis that has seen civil servants nationwide go unpaid for more than a year.

South Sudan’s economic woes have deepened with the disruption of oil exports after a major pipeline was damaged in Sudan during that country’s ongoing civil war.

“ The last time we got drugs was in September. We mobilized the women to carry them on foot from Ayod town,” said Juong Dok Tut, a clinical officer.

By Chris Megerian, Stephen Groves, Jill Colvin & Josh Boak The Associated Press

WASHINGTON—After days of threats and demands, Donald Trump had little to show for it once lawmakers passed a budget deal in the early hours of Saturday, narrowly averting a pre-Christmas government shutdown.

The president-elect successfully pushed House Republicans to jettison some spending, but he failed to achieve his central goal of raising the debt limit. It demonstrated that despite his decisive election victory and frequent promises of retribution, many members of his party are still willing to openly defy him.

Trump’s decision to inject himself into the budget debate a month before his inauguration also showed that he remains more adept at blowing up deals than making them, and it foreshadowed that his second term will likely be marked by the same infighting, chaos and brinksmanship that characterized his first.

“Stay tuned. Buckle up. Strap in,” said Rep. Steve Womack, R-Ark., a senior appropriator.

A glance at Trump’s agenda shows a cascade of opportunities for similar showdowns in the years to come. He wants to extend tax cuts that he signed into law seven years ago, slash the size of government, increase tariffs on imports and crack down on illegal immigrants. Many of those efforts will need congressional buy-in.

For many of Trump’s supporters, disruption could be its own goal. Thirty-seven percent of those who voted for him this year said they wanted “complete and total upheaval,” according to AP VoteCast, a broad survey of more than 120,000 voters. An additional 56 percent said they wanted “substantial change.”

But the past few days made clear the difficulty Trump could face in quickly fulfilling his goals, especially with Republicans holding only thin majorities in the House and the Senate. Some lawmakers already seem weary of the apparent lack of a unified strategy.

Sen. Kevin Cramer, R-N.D., said the budget battle was “a valuable lesson in how to get our act together.”

“There are no layups and it gets more complicated,” he said.

How Trump’s demands fell flat

THE trouble started when top lawmakers released a copy of the bill, known as a continuing resolution, that was required to keep the federal government functioning until March. It wasn’t the president-elect but Elon Musk, the world’s richest man and a Trump confidant, who first began whipping up opposition to the legislation on social media by calling it excessive spending.

Trump eventually waded into the fight. He ordered Republicans to cancel the bipartisan deal they had made with Democrats. And he demanded they increase the debt limit—the cap on how much the government can borrow—in hopes of preventing that thorny issue from coming up while he is in charge of the government.

He ratcheted up the pressure even as his demands shifted. First he wanted to eliminate the debt limit altogether. Then he wanted to suspend it until 2027. Then he floated an extension until 2029.

If there was a shutdown, Democratic President Joe Biden would take the blame, Trump insisted.

“All Republicans, and even the Democrats, should do what is best for our Country, and vote “YES” for this Bill, TONIGHT!” Trump wrote Thursday, before a vote on a version of the bill that included a higher debt limit.

Instead, 38 Republicans voted no. It was a stunning brush-off to Trump, whose power over his party has at times seemed near-absolute.

“Without this, we should never make a deal,” he wrote on Truth Social, his social media site.

If he didn’t get what he wanted, Trump said, there should be a government shutdown. He also said members of his own party would face primary challenges if they refused to go along, saying “Republican obstructionists have to be done away with.” He singled out Rep. Chip Roy of Texas by name and with insults. But in the end, lawmakers left out that debt ceiling increase, and a final deal passed early Saturday.

Musk and other Trump allies tried to frame it as a win because the final legislation was significantly slimmed down and omitted unpopular items such as a pay raise for members of Congress. Charlie Kirk, the prominent conservative activist, wrote on X that Trump “is already running Congress before he takes office!”

House Speaker Mike Johnson, R-La., said he had been in “constant contact” with Trump, who, he added was “certainly happy about this outcome.”

If Trump agreed, he didn’t say so himself. After days of frequent social media messages, Trump again went silent on Friday. He did not offer a reaction to the final vote or issue any statements. Instead, he went golfing at his Florida resort.

Karoline Leavitt, a spokesperson for Trump, said the president-elect helped prevent an original deal “full of Democrat pork and pay raises for members of Congress.”

“In January, President Trump and DOGE will continue this important mission to cut the waste out of Washington, one bill at a time,” she said. DOGE is a reference to the Department of Government Efficiency, an advisory panel that will be led by Musk and entrepreneur Vivek Ramaswamy. More clashes to come THE circus-like atmosphere of the funding fight was reminiscent of Trump’s first term. Back then, one budget standoff led to a government shutdown when Trump demanded money for his U.S.-Mexico border wall. After 35 days—the longest shutdown in history—he agreed to a deal without the money he wanted.

It was a political low point for Trump, and 60 percent of Americans blamed him for the shutdown, according to an Associated PressNORC Center for Public Affairs Research poll at the time.

Trump didn’t stop trying to bend Republicans to his will then. He’s certainly not going to do so now.

He is cranking up the pressure on his own party over his Cabinet picks, pushing reluctant Republican senators to get on board with some of his most controversial choices, such as anti-vaccine activist Robert F. Kennedy Jr. as health secretary and Fox News host Pete Hegseth as defense secretary. The spending debates next year seem certain to further test Trump’s influence in the House. Many conservatives view the rapid growth of the federal debt as an existential threat to the country that must be addressed. But some Republicans fear a voter backlash if steep cuts are made to federal programs upon which Americans rely. Concerns about deficit spending could intensify if Trump pushes expensive tax cuts that he promised during the campaign, such as eliminating taxes on tips, Social Security and overtime pay.

Boak reported from West Palm Beach, Florida, and Colvin from New York.

Editor: Angel R. Calso

Trump to Panama: Lower transit fees or return Canal

RESIDENT-elect Donald

PTrump said last Saturday that the Panama Canal is charging “exorbitant prices and rates of passage” on US naval and merchant ships, and he demanded that fees be lowered or else Panama should return the canal to the US.

“The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity that has been bestowed to Panama by the US,” Trump said in a post on his Truth Social platform. “This complete ‘rip-off’ of our Country will immediately stop.”

The US is the canal’s biggest customer, responsible for about

three quarters of the cargo transiting through each year. A prolonged drought, however, has hampered the the canal’s ability to move ships between the Atlantic and Pacific oceans. National Economic Council Director Lael Brainard said last week that the resulting disruptions contributed to the supply-chain pressures that have boosted inflation.

The Panama Canal Authority said Friday that the canal contributed $2.47 billion to Panama’s treasury in fiscal 2024, the second consecutive annual decline.

The US completed the 51-mile (82-kilometer) canal through the Cen -

tral American isthmus in 1914, but ceded it back to Panama in 1999 under a treaty signed by former President Jimmy Carter in 1977—a move that Trump called foolish. Trump suggested that the canal was in danger of falling into the wrong hands, saying the canal isn’t China’s to manage. China is its second-biggest customer. A Chinese company based in Hong Kong controls two of the five ports adjacent to the canal, one on each side.

Biden signs US spending deal that averts a govt shutdown

PRESIDENT Joe Biden signed funding legislation to keep the US government operating until mid-March, avoiding a year-end shutdown and kicking future spending decisions into Donald Trump’s p residency.

The legislation went to Biden early Saturday morning after the Senate voted 85 to 11 to approve the measure, which sailed through the House hours earlier.

The last-minute events—the government was taking initial steps to s hut down this weekend—capped a tumultuous few days in which

two earlier plans pursued by House Speaker Mike Johnson collapsed under pressure from President-elect Trump and Elon Musk. Biden’s signature extends government funding through March 14 and i ncludes more than $100 billion in aid for natural disaster victims and farmers, the White House said in a statement.

As the US government teetered on the brink of a holiday shutdown, federal agencies moved ahead with preparations, notifying workers Friday that they might be furloughed. W hile key services such as law en -

Central bank dissents mount in last rate decisions of 2024

THE Federal Reserve cut interest rates again at its last meeting of 2024 while the Bank of Japan and Bank of England both stayed on hold, though each decision wasn’t without some controversy at a critical juncture for monetary policy.

One US official dissented in favor of keeping borrowing costs steady while three in the UK sought a reduction. The Fed’s decision was widely viewed as a hawkish cut versus the BOE’S dovish hold, with both wary of stubborn inflation and advocating for a gradual pace of rate reductions.

In Japan, one official proposed a rate hike, citing increasing upside risks for price growth, but was voted down by others in favor of waiting for more information on wages and US President-elect Donald Trump’s policies.

Here are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy, markets and geopolitics:

The Fed’s December dot plot FED officials lowered their benchmark interest rate for a third consecutive time, but reined in the number of cuts they expect in 2025, signaling greater caution over how quickly they can continue reducing borrowing costs.

Canada’s new finance minister Dominic LeBlanc said the government needs to preserve its fiscal ability to support households and businesses if Trump’s tariff threats materialize into an economic shock. LeBlanc became finance minister Monday after the stunning departure of Chrystia Freeland, whose resignation snowballed into a political crisis for Prime Minister Justin Trudeau. Texas Governor Greg Abbott has a new ambition for the Lone Star State: surpassing France as one of the world’s largest economies. Abbott predicted that economic output in Texas would soon exceed that of the struggling European nation thanks to booming investment and Trump’s plans to slash regulations on oil, gas and other industries.

Europe

THE Bank of France cut its domestic growth outlook just days after President Emmanuel Macron named the country’s fourth prime minister in a year, with the central bank citing the political upheaval as a drag on household and business confidence. Germany is reaching a point of no return. Business leaders know it, the people in the country feel it, but politicians haven’t come up with answers. That has set Europe’s largest economy on a path of de -

cline that threatens to become irreversible. Following five years of stagnation, Germany’s economy is now 5 percent smaller than it would have been if the pre-pandemic growth trend had been maintained. Even if Putin’s invasion of Ukraine is brought to an end soon, Europe will face a hostile Russia whose battle-hardened army is backed by a war economy churning out huge volumes of armaments. Some officials fear a direct military clash in time, and worry that Europe will be left exposed if US security guarantees within NATO weaken under incoming President Donald Trump.

Asia

CHINA’S top leaders have signaled stronger stimulus to help fill a hole in consumer demand. But the recent steps hinted at will likely fall short of the kind of radical action analysts believe is required to stem a deflationary spiral and rescue the property market.

Of the 20 most climate-vulnerable regions globally, 16 are on Chinese soil. Yet the world’s second-largest economy is among the least insured. Only about 10 percent of Chinese families have a home insurance policy, according to industry estimates. That figure is nearly 90 percent in the US.

Emerging markets

THE 21-percent slump in the Brazilian real, which has gained steam this week and begun to engulf other parts of the local market, has made it significantly more expensive for companies to service their debt and cover costs. Rising local interest rates—the central bank just pledged to hike borrowing costs to 14.25 percent by March—are adding to the pressure.

With El Salvador’s gangs dismantled and their extortion rackets no more, a huge obstacle to development has been lifted, and the farmers of the region’s rich volcanic soil should be cashing in on a 75 percent rise in the world coffee price this year. But it’s not working out like that.

World OUTSIDE of the major central banks, officials in Sweden, Pakistan, Chile, the Philippines, Mexico and Colombia cut rates. Morocco reduced borrowing costs to encourage a massive investment drive that includes preparations to co-host the 2030 FIFA World Cup. Norway, Thailand, Hungary, Indonesia, Georgia, Taiwan, Czech Republic and Paraguay held rates steady. Russia also held, surprising most analysts who expected a hike to combat persistent inflation. Bloomberg News

forcement, air traffic control and airport screening would continue during a s hutdown, the workers would temporarily go without pay.

T he late turmoil over a short-term spending package that had been expected to be relatively free of drama v ividly demonstrated both Trump’s power over fellow Republicans and its limits.

Republican lawmakers quickly abandoned a bipartisan deal Johnson had n egotiated after Trump and his billionaire ally Musk attacked it in social me dia posts on Wednesday. But then a new funding package tailored to meet

Trump’s demand that the national debt limit be waived or raised before he takes office failed when 38 Republican conservatives refused to go along.

Musk publicly backed the funding package as the House began voting, giving a boost to both the legislation and the embattled speaker. The House will vote for a new speaker on January 3 and restive ultra-conservatives could threaten to unseat Johnson.

“The Speaker did a good job here, given the circumstances,” Musk said on his social media platform X. “It went from a bill that weighed pounds to a bill that weighed ounces.” Bloomberg News

Russia’s daily pipeline gas flows to China set record

RUSSIA’S daily natural-gas flows to China via the Power of Siberia link set a new record on December 20, according to energy giant Gazprom PJSC.

While the producer didn’t specify the absolute figure for the daily gas supplies to the Asian nation, it said the flows exceeded its obligations under a contract with China National Petroleum Corp., in a Telegram statement. The latest flows beat the previous high reached on December 7, it said.

Russia earlier this month also raised gas deliveries to the daily equivalent of 38 billion cubic meters per year, the design capacity of the Power of Siberia, ahead of schedule.

Gazprom’s natural-gas deliveries to China this year are set to slightly exceed its pipeline flows to Europe for the first time, as Russia’s energy ties with the continent weaken amid President Vladimir Putin’s invasion of Ukraine.

The Russian gas giant lost most of its European buyers as a result of the war, while deliveries to the Asian nation have been growing each year

French

ever since the Power of Siberia came online five years ago.

Russia supplied almost 29 billion cubic meters of pipeline gas to China between January and November, a 40 percent jump year on year, according to Bloomberg calculations based on customs data from the Asian nation and price estimates from the Russian economy ministry.

Gazprom’s deliveries to European clients over the same period reached around 28 billion cubic meters, up almost 14 percent from the same period a year ago, Bloomberg calculations based on flows via Ukraine and the TurkStream link show.

Putin and Ukrainian leader Volodymyr Zelenskiy earlier this week each ruled out extending the agreement on transits of Russian gas to Europe via Ukraine that expires this month. If no solution is found, the loss of the route that currently ships the daily equivalent of around 15 billion cubic meters a year will further reduce Russia’s pipeline deliveries to European clients in 2025. Bloomberg News

moves on Italy’s

finance industry stoke concerns in Rome

THE Italian government is growing concerned about the prospect of an increased French presence in its finance industry, with two major deals in the works that could potentially reshape the market.

Officials in Rome are looking at steps they could take to maintain Italian influence in a potential tie-up between insurer Assicurazioni

Generali SpA and Paris-based Natixis Investment Managers, according to people familiar with the matter. The two companies have been discussing combining their asset management operations and executives at Generali are aiming to clinch a preliminary agreement by the end of next month, Bloomberg has reported.

At the same time, Credit Agricole SA has become a key player in the tussle over the future of Banco BPM SpA, Italy’s third-largest bank, raising its stake to 15.1% in response to a takeover bid from UniCredit SpA. That’s another unwanted complication for Prime Minister Giorgia Meloni’s team as they try to develop their own strategy for the banking industry. A spokesperson for Meloni declined to comment.

Government officials across the European Union are on edge at the prospect of a wave of consolidation in the finance industry. Reducing the fragmentation in the EU’s financial markets is a key part of the bloc’s strategy to compete with the US and China and, over time, it could make

the EU better able to resist a trade offensive from incoming US President Donald Trump. But changes in the structure of the industry are almost bound to create winners and losers among national governments, and that’s holding back deals. The German government this week essentially told UniCredit to sell its stake in Commerzbank AG as officials in Berlin try to deter UniCredit CEO Andrea Orcel from launching a full takeover bid for the country’s secondbiggest publicly listed lender.

One major issue with the Natixis-Generali deal is that the Italian insurer is one of the biggest holder of Italian sovereign bonds, the people familiar with the thinking in Rome said, asking to not be named speaking about private matters. Meloni has seen the perceived risk of Italian debt decline during her two years in power, but with government borrowing at more than 130% of GDP, officials are sensitive to any shifts that might jeopardize that hard-won stability. Depending on the final structure of the Natixis-Generali deal, one option available to Meloni would be to use the so-called “Golden Power” provision in Italian law, which allows the government to block or impose conditions on deals involving strategic assets, the people said. They stressed that they aren’t taking any concrete action as yet and officials were evaluating several different scenarios. Bloomberg News

“It was not given for the benefit of others, but merely as a token of cooperation with us and Panama,” Trump said. “If the principles, both moral and legal, of this magnanimous gesture of giving are not followed, then we will demand that the Panama Canal be returned to us, in full, and without question. To the Officials of Panama, please be guided

A spokesman for the canal declined to comment until the government had responded. Bloomberg News

Doubts about uK statistics agency’s surveys spread to gDP data

By Tom Rees Bloomberg News

THE same kind of survey failures that have left the UK unsure about the number of people in Britain’s workforce are now raising doubts about the size of its e conomy. The Office for National Statistics has seen a collapse in r esponses to a key household questionnaire that it relies on to produce growth estimates, prompting it to take remedial action. The so-called Living Costs and Food Survey — used in GDP readings such as those for the third quarter due to be released on Monday — helps the British statistics agency determine people’s incomes and w hat they’re spending their money on. The latest data shows that barely one-fifth of the forms are being completed and returned, mirroring a shortfall in t he ONS’s monthly jobs survey, which policymakers say no longer provides a reliable snapshot o f the country’s labor market. In the case of the growth report, the drop-off means an i ncreased risk of sudden and retrospective changes to gross domestic product readings, potentially feeding bad decisions by political leaders and of ficials.

“There’s a bigger chance of revisions, [and] there’s a bigger chance of policy errors as a r esult because policy is made in real time,” said Greg Thwaites, research director at the Resolution Foundation. “If there’s a p roblem with the LCF survey and the consumption data, that will have a small effect on the GDP estimate, but not a huge one.”

The decline shows that the crisis of confidence that has rocked the ONS’s labor report could spread to other indicators used by the Bank of England, the Treasury and others.

I n slow-growing Britain, small data revisions can make the difference in public perceptions about whether Prime Minister Keir Starmer is failing or succeeding in his promise to rebuild the economy.

E mployment Minister Alison McGovern told Bloomberg l ast week that the government was already using alternative sources for jobs data, warning it is “too big for us to wait” f or reliable ONS figures. BOE officials have also expressed dismay over the inaccurate figures that have clouded their view of the labor market at a crucial moment for interest rates.

Deploying AI

A N O NS spokesperson said in a statement that it was deploying artificial intelligence to

s treamline data collection in the LCF survey and, from the first quarter of 2025, relying more on card spending to s upplement responses. Still, the agency said that the survey remained an “important s ource of household spending data” and that efforts to boost the number of questionnaires have increased the number of responses by more than a third.

While response rates for such economic surveys have been declining for decades, the trend has accelerated since 2020, possibly due to changes in behavior and data collection during the Covid-19 pandemic. In the case of the LCF, the response rate was just 22 percent l ast year. That compares with roughly 40 percent in 2020 and 70 percent three decades ago.

Concerns over the accuracy of the LCF survey during t he pandemic led the ONS to withhold some tables. The low share of households answering means biases may remain i n the data, such as one group, like younger people who might not check their mail as frequently, being underrepresented.

People are much more reluctant and also people are j ust time scarce,” said Huw Dixon, professor of economics at Cardiff University. “They’ll use data which they have from other sources, such as tax returns.”

T he ONS uses three approaches to measure GDP: Output, expenditure and income. M onthly estimates are produced using only the output d ata, while later figures are derived by averaging output, expenditure and income data from the LCF to create a more complete reading.

The ONS has mentioned issues with LCF response rates i n recent GDP data releases, including when it made a sharp, r etrospective upgrade to 2022 growth from 4.3 percent to 4.8 percent. Britain has performed better since the pandemic than originally thought, undercutting some of the criticism levelled at the now-former Conservative government.

I n explaining the revision, the ONS highlighted large differences in the growth readings derived from each of the t hree methods, which produced GDP growth readings ranging from 3.1 percent to 5.3 percent. Problems with the LCF w ere also mentioned in the latest quarterly growth release, a lthough the output approach takes the lead for the two most recent quarters of data.

“The low response rate on the LCF isn’t great of course, but it’s only really a problem if it’s a biased non-response rate,” said Thwaites of the Resolution Foundation.

A T u gboAT navigates a container ship into the Culebra Cut from the Chagres River near gamboa, Panama, on Thursday, November 2, 2023. B LOOMBERG N EWS

Fitch warns: Political instability poses risk to economic targets

AS the country navigates a politically charged landscape ahead of the May 2025 mid-term elections, the implications of sustained domestic conflicts are becoming increasingly pronounced. Recent insights from Fitch Ratings underscore a troubling reality: the intertwining of political strife and economic performance could significantly hamper the country’s growth trajectory and fiscal health. (Read the BusinessMirror story: “Political noise seen weighing on growth,” December 19, 2024).

Fitch projects a modest GDP growth of 5.7 percent for this year, with slightly optimistic figures of 5.9 percent and 6.2 percent for the following years. These projections fall short of the Development Budget Coordination Committee’s targets of 6.5 percent for 2024 and 6 percent to 8 percent from 2025 to 2028. This discrepancy signals a growing concern that political instability may hinder the government’s ability to foster the robust economic environment necessary for achieving its ambitious goals.

The heart of the issue lies in the escalating tensions between President Marcos and Vice President Sara Duterte, amid allegations of misuse of public funds and threats of political fallout. The Duterte family’s support was crucial in securing Marcos’ electoral victory in 2022, making the current discord particularly alarming. If these political conflicts persist, they could undermine not only public confidence but also the stability needed for sound economic governance.

Fitch’s observations on inflation further complicate the economic outlook. While the firm anticipates an average inflation rate of 3.2 percent this year, the potential for external pressures—such as the anticipated return of protectionist policies under a Trump administration—adds a layer of uncertainty. The peso, having already depreciated nearly 5 percent this year, could face further challenges, particularly if remittances, a vital component of the economy, are affected by changes in US immigration policy.

In response to these challenges, the Bangko Sentral ng Pilipinas has demonstrated a proactive stance by implementing rate cuts to stimulate growth. However, the effectiveness of these measures could be dulled by the broader economic instability spurred by political strife. While the BSP’s work to improve monetary policy transmission and build stronger capital markets is laudable, the persistent effects of ongoing political instability may ultimately hinder its success.

The interconnectedness of domestic politics and economic health cannot be overstated. Political stability is a prerequisite for economic growth, and the country is at a critical juncture. As the mid-term elections draw near, it is crucial that voters hold their leaders accountable and insist on a unified, coherent approach to governance. This means prioritizing the nation’s interests over personal or family feuds, and demanding that elected officials put the needs of the country above petty squabbles.

The stakes are high. The trajectory of the Philippine economy in the coming years hinges not only on the implementation of sound fiscal policies but also on the resolution of internal political discord. It would do well for all stakeholders to rally for a unified approach that prioritizes the country’s long-term economic goals over short-term political gains. Only then can the country hope to achieve its ambitious growth targets and foster a stable and prosperous future for more than 100 million Filipinos.

BusinessMirror

T. Anthony C. Cabangon

Lourdes M. Fernandez

Jennifer A. Ng Vittorio V. Vitug

Lorenzo M. Lomibao Jr., Gerard S. Ramos Lyn B. Resurreccion, Dennis D. Estopace Angel R. Calso, Dionisio L. Pelayo Ruben M. Cruz Jr.

Eduardo A. Davad Nonilon G. Reyes

D. Edgard A. Cabangon Benjamin V. Ramos

Aldwin Maralit Tolosa

Rolando M. Manangan

BusinessMirror is published daily by the Philippine Business Daily Mirror Publishing, Inc., with offices on the 3rd floor of Dominga Building III 2113 Chino Roces Avenue corner De La Rosa Street, Makati City, Philippines. Tel. Nos. (Editorial) 817-9467; 813-0725. Fax line: 813-7025. (Advertising Sales) 893-2019; 817-1351, 817-2807. (Circulation) 893-1662; 814-0134 to 36. E-mail: news.businessmirror@gmail.com www.news.businessmirror@gmail.com

Christmas Eve traditions

TRISING SUN

OMORROW, we will celebrate Christmas Eve. And here in the Philippines, this special evening is marked by gatherings with relatives and the preparation of traditional dishes for the Noche Buena feast. Some families even prepare heirloom dishes that are staples at their annual family reunions.

A significant part of our Christmas celebrations is attending the Simbang Gabi; family members gather for Noche Buena, typically held around midnight. Afterward, everyone would exchange gifts, often opening them in the early hours of Christmas Day. The evening is also filled with music, as many Filipino families enjoy singing together on the karaoke.

These activities are just some of the most common traditions that Filipino families observe on Christ-

While it is often a time of joy and celebration, it is not always this festive and happy. Here in the country, as in many other places, there are families who spend Christmas like any other ordinary day because of various reasons, like work commitments, financial constraints, recent bereavement, or ongoing conflicts.

is believed to ensure good luck for the household.

mas Eve. But have you ever wondered how people in other places celebrate this special night?

In Iceland, for example, families exchange books on Christmas Eve and spend the evening reading by the fire while enjoying Christmas treats together. It’s actually a very serene way to spend Christmas Eve. In Portugal, many families set extra places at the table for their deceased relatives during the traditional Christmas feast, known as “consoda.” This practice

ILITO GAGNI

T has been seven months since reports of financial irregularities within the Knights of Rizal surfaced in communities around the world, affecting members of this esteemed organization that seeks to promote the ideals of José P. Rizal, the national hero of the Philippines.

Despite the gravity of the situation, the current officers of the Knights of Rizal have failed to respond to the serious allegations raised by concerned members across Australia, the United States, and local chapters worldwide.

Even the Council of Elders, tasked with safeguarding the integrity of the Order, has been compelled to speak out, defending the members who have questioned the disbursement of funds, particularly the troubling discovery that membership fees were deposited into personal bank accounts of officers. These issues, including allegations of “financial engineering” and misuse of the Order’s resources, remain unresolved, creating a pervasive sense of disillusionment among the membership.

José Rizal once said, “The youth is the hope of our future.” (Rizal, Filipino Propaganda) His words echo a profound belief in integrity, selflessness, and the responsibility

to future generations. The present situation within the Knights of Rizal, however, stands in stark contrast to these principles. What was once an organization meant to champion Rizal’s vision has now become embroiled in what some are calling a “cancerous growth.”

The discovery of financial irregularities that are being swept under the rug threatens to erode the very foundation of the Order. The motto “Non omnis moriar”—which neophytes solemnly recite, pledging that Rizal’s ideals will live on through their actions — risks losing its meaning. Audit findings, which expose unpaid real estate taxes, unaccounted foreign contributions, and the depletion of trust funds, defy basic principles of financial stewardship.

In a particularly egregious move, certain chapters in Angono, Rizal, have been created with the apparent intention of padding the voter base and securing the election of trustees whose legitimacy is now in

This piece is, of course, intended for those who observe Christmas and celebrate the birth of Christ; I cannot speak for and about those who do not believe in Christ or celebrate his birth.

But for those of us who do, may we remember that no matter how we spend Christmas Eve, what truly matters is the connection we share with our loved ones, the acts of generosity and compassion we extend to others, and the hope and joy that this season brings.

Merry Christmas to all! And may you have a meaningful, blessed, and happy celebration.

In Venezuela, particularly in Caracas, Christmas Eve is celebrated with Las Patinatas, an all-night roller skating party in the streets. Participants skate to Christmas songs and then eat traditional snacks before attending the early morning Misa de Gallo. Meanwhile, in Norway, people hide their brooms and mops on Christmas Eve due to a superstitious belief that evil spirits and witches might use them to fly around the sky. This tradition is rooted in Norwegian folklore about witches and evil spirits being active on Christmas Eve. While it is often a time of joy and celebration, it is not always this festive and happy. Here in the country, as in many other places, there are families who spend Christmas like any other ordinary day because of various reasons, like work commitments, financial constraints, recent bereavement, or ongoing conflicts. Some people also spend this time alone, either by choice or circumstance.

Financial scandal erupts in Knights of Rizal

It is now the responsibility of the current members and leaders of the Knights of Rizal to restore the Order’s integrity. In doing so, they will honor Rizal’s legacy and ensure that the organization remains a beacon of inspiration and national pride, as it was always intended to be.

question. This manipulation of the system to undermine transparency and accountability is a betrayal of the very ideals that Rizal espoused.

A member of the Knights of Rizal, Nasser S. Sharief, a Certified Public Accountant (CPA), has been vocal in highlighting the disturbing allegations that threaten to tarnish the Order’s legacy. Sharief, Secretary-General of the Southeast Asian Islamic Chamber of Commerce and Industry, pointed to the formation of numerous Angono chapters—predominantly consisting of tricycle drivers and unqualified individuals—as a means to secure votes and thwart the election of reform-minded trustees.

According to Sharief, these chapters were designed to divert attention away from the financial irregularities and silence those who sought to expose them.

As Rizal warned in his Noli Me Tangere, “The true Filipino is not the one who excels in wealth and power, but the one who knows how to serve his fellow men and his country.” The creation of these chapters, which defied due process and proper investigation, reflects an alarming

disregard for the values of honor and patriotism that Rizal stood for. The interests of a few, it seems, have triumphed over the greater good of the organization and its mission. Rizal’s vision, as enshrined in Republic Act 646, was clear: the Knights of Rizal was to promote the study and propagation of his teachings, foster patriotism, and cultivate a union among Filipinos that transcended class and division.

It is now the responsibility of the current members and leaders of the Knights of Rizal to restore the Order’s integrity. In doing so, they will honor Rizal’s legacy and ensure that the organization remains a beacon of inspiration and national pride, as it was always intended to be. The unfolding financial scandals within the Knights of Rizal call into question not only the leadership and management of the organization but also its adherence to the teachings of José Rizal. In this critical moment, it is crucial for members to remember Rizal’s unwavering commitment to justice, transparency, and moral fortitude.

If they are to truly honor his legacy, they must take decisive action to address these issues, ensuring that the Knights of Rizal remains a noble Order worthy of its founder’s ideals. In the words of Rizal, “The youth, like the mother country, will not be the same if we allow the oppressors to continue their reign” (Noli Me Tangere). Now is the time for the Knights of Rizal to rise to the occasion and restore the honor and integrity of the organization.

Atty. Jose Ferdinand M. Rojas II

Tech-driven government environmental sustainability efforts

TJoel L. Tan-Torres

DEBIT CREDIT

Part seven

he drafting of the Implementing Rules and Regulations (IRR) for the Philippine ecosystem and Natural Capital Accounting System (PeNCAS) Act involves a coordinated effort by multiple government agencies, led by the Philippine Statistics Authority (PSA). These agencies collaborate to ensure that the IRR reflects the multidisciplinary goals of PeNCAS, from conservation and sustainability to economic and fiscal integration implementation of the PeNCAS and the Capital Accounting System (CAS).

Other government institutions and agencies involved in the drafting of the IRR and eventually in its implementation are the Department of Finance (DOF), the Bureau of Internal Revenue (BIR), and the Securities and Exchange Commission (SEC). Here’s an overview of their contributions and responsibilities:

The DOF will set the overarching policy framework for integrating natural, human, and social capital accounting into national development strategies. It will ensure that PENCAS and CAS align with international frameworks, such as the United Nations System of Environmental-Economic Accounting and the Sustainable Development Goals. Resource mobilization or financial sourcing will also have to be done by the DOF. It will coordinate with multilateral agencies, the World Bank, the Asian Development Bank, etc. to secure funding and technical assistance for implementing PENCAS and CAS initiatives. The DOF will also develop fiscal policies to support sustainable development, such as green bonds, environmental taxes, and incentives for sustainable practices.

The BIR will be at the forefront of ensuring that tax policies reflect the principles of PENCAS and CAS by incorporating environmental and social considerations into revenue measures that it will issue. It will be involved in the tax-related data on industries reliant on natural resources (e.g., mining, forestry) to contribute to natural capital valuation and accounting. The BIR will continue to enforce existing tax-related environmental sustainability laws and regulations with renewed focus on the demands of PENCAS.

The DOF and BIR will collaborate with various interest and advocacy groups in the government and private sectors. They will collectively work to create a centralized database for PENCAS, integrating economic, environmental, and social data for national capital accounting. Technology tools and innovations will be necessary, including artificial intelligence, cloud computing, blockchain

The DOF and BIR are central to the success of PENCAS, each playing a complementary role in policy-making, data collection, fiscal implementation, tax collection, corporate governance, and regulatory compliance. Their collaboration ensures that the Philippines integrates sustainability into its economic and tax framework, fostering long-term resilience and inclusive growth.

technology, Geographic Information Systems and Remote Sensing, Big Data Analytics, Internet of Things, and Data Visualization. Public-private partnerships will be formed with businesses, industries, research institutions, and non-government organizations to align corporate sustainability efforts with national goals under PENCAS.

The DOF and BIR are central to the success of PENCAS, each playing a complementary role in policy-making, data collection, fiscal implementation, tax collection, corporate governance, and regulatory compliance. Their collaboration ensures that the Philippines integrates sustainability into its economic and tax framework, fostering long-term resilience and inclusive growth.

The implementation of PENCAS in the Philippines should be aligned with international practices, enhancing the country’s ability to engage in global environmental and climate governance discussions.

To be continued

Joel L. Tan-Torres was a former Commissioner of the Bureau of Internal Revenue. He has also held the various positions of Dean of the University of the Philippines Virata School of Business, Chairman of the Professional Regulatory Board of Accountancy, Tax partner of Reyes Tacandong & Co. and the SyCip Gorres and Velayo & Co., and director of various corporate boards. He is a Certified Public Accountant who garnered No. 1 in the CPA Board Examination of May 1979. He is now back to his tax and consultancy practice and can be contacted at joel@ onecfo.com and his firm JL2T Consulting.

The Currency of Hope

WSiegfred Bueno Mison, Esq.

THE PATRIOT

e do things transactionally to a certain extent. every semester, I usually start my Contract Law class by saying that, for whatever reason, our interactions and relationships with another have become a transactional affair. There is an offer; there is acceptance or assent. every day, we enter into contracts with another, oftentimes unwittingly. They can be unilateral or reciprocal. Whether an oral promise made to a coworker or giving a “tip” to security guards or parking attendants, the transaction is consummated by way of a currency, value for value.

My wise friend IAR once told me that there are three currencies used in life. Of course, the most obvious is money—that which is given in exchange for another with value. Another is the currency of favors, simply explained by the old adage of “you scratch my back, I scratch yours.” Sadly, most laws are passed by Congress through the use of this currency of favors. This is not a unique proposition limited only to the Philippine Congress, but most decisions in any organization are made by way of a consensus voting, oftentimes using the currency of favors. I will not be surprised if the controversial 2025 budget with suspicious insertions was a product of oh so many currencies of favors between a few powerful legislators and some of their private financiers or lobby groups. Subject to many criticisms, political analysts are quick in clamoring for a review, if not a presidential veto, given the effects of the last-minute changes to the budget of key sectors such as education, health, and defense.

In relationships among friends where reciprocity of favors is expected, each must invest time and effort to keep and nurture the relationship. This give-and-take method is anchored on the tangible things friends get from each other. This set-up is also common in business and professional settings, Congress

included. Since there is mutual benefit, this relationship has little room for meaningful connection. Hence, the so-called allies in Congress are so temporary in nature. The moment one can no longer scratch the back of another, the relationship ends. Loyalties die.

But the third and most “wicked” of these currencies, according to my friend IAR and “consiglieri,” is the currency of hope, seen in debt situations. In the book “A Currency of Hope by Debtors Anonymous,” a Twelve-Step program is demonstrated to help those who are shackled by the debility of compulsive borrowing. As described, the book offers still-suffering debtors a simple a debt-releasing program to trade for the hope of some peace of mind. Campaign promises, whether done publicly or privately, serve as the best examples in transactions using the hope currency—“I give you this, if you vote for me,” “Vote for me and I will end the drug menace in three to six months,” “When I become President, the price of rice will be twenty pesos per kilo.” Sounds familiar? The currency of hope is prevalent in election campaigns where voters end up hoping, if not dreaming, that the benefits of the transaction will come to fruition once the votes are cast, and the chosen candidate emerges victorious. But IAR believes vain

Yet, with all His grace and mercy, our Heavenly Father found a way to offer that currency of hope by sending Jesus Christ to die for our sins and bear our condemnation. My pastor friend told me that this is the Great Exchange—the ultimate transaction that epitomized value for value from an eternal perspective.

hope is wicked just as Contract Law considers it as a void subject matter in contracts.

Psychologists believe that the currency of hope ought to be more commonplace in intimate relationships. Genuine commitment to each other is expected with the hope for love and affection in exchange. Yet, there are some life partners who tend to do things for the other person only if there are some tangible outcomes. Hence, there is a growing need for wise counsel whenever partners decide to make their union a permanent one. The currency of hope in intimate relationships is noble for as long as it is not of the vain kind. What they offer and expect is not a debt but a gift. No expectations. Spiritually speaking, we were once weighed down by such a huge debt to our Heavenly Creator because of our sin, a trespass that merited the penalty of debt. But as our God is a God of love, He accepted the currency of hope in order to erase our sin forever! And it came at such a great price, the death of His beloved Son so that we may have eternal life. We are reminded in 2 Corinthians 5:21 that “God made him who had no sin to be sin for us, so that in him we might become the righteousness of God.” And all that is required of us in exchange is to “declare with our mouths that ‘Jesus is Lord,’ and believe in our hearts that God raised him from the dead, and then we will be saved” ( Romans 10:9). Since eternal life is the precious gift offered to us, may we should use this currency of hope for Jesus incessantly.

No reason to put Veloso in prison

By Atty. Romulo B. Macalintal

WhAT’S all the fuss about Mary Jane Veloso to be extended “presidential clemency” by President Marcos when she has never been convicted in any Philippine court of having committed a crime in the Philippines.

Technically speaking, the clemency has already been extended to her, not by our President, but by the Indonesian government when she was allowed to return to the Philippines after spending nearly 15 years in an Indonesian prison for alleged drug trafficking. However, to date, she maintained and asserted that she was innocent of the said crime.

While the Indonesian government left it to the Philippine government to do what the latter thinks is good for Veloso, President

Marcos cannot use his pardoning power under our Constitution because such power applies only to criminals convicted under Philippine laws.

Our country does not even have jurisdiction over crimes committed by a Filipino in other countries.

In 2010, the Department of Justice has issued a circular on the implementation of agreements involving transfer of sentenced persons, such as Veloso in this case. Under the DOJ Circular, only the sentencing State (In-

donesia, in this case) may grant pardon, amnesty or commutation of the sentence, but the administering State (Philippines, in this case) may request the sentencing State to grant pardon, amnesty or commutation of the sentence. And, obviously, by virtue of such agreement, the Indonesian government granted the request of the Philippine government for Veloso’s liberty and sent her back to the Philippines.

Clearly, what makes it favorable for Veloso is the apparent compassion of Indonesian government to release her to the Philippine government for whatever action the latter wants to take on Veloso’s case.

Whatever benefits the Philippine government will give to Veloso will be in line with the spirit

China property flare-ups resurface as crisis enters fifth year

By Bloomberg News

ONe of China’s leading developers is now on authorities’ radar for default risk. A major hong Kong builder is asking lenders to extend loans. Another industry peer is selling an iconic but largely empty mall in Beijing.

As China’s property debt crisis enters its fifth year, there’s little indication that distressed developers are finding it easier to repay debt as a slump in home sales continues. Their dollar bonds are still trading at deeply distressed levels, their debt issuance has nearly dried up, and the sector is a notable laggard in stock markets. Alarm bells went off again in recent weeks, when the banking regulator told top insurers to report their financial exposure to China Vanke Co. to assess how much support the country’s fourth-largest developer

by sales needs to avoid default. Over in Hong Kong, New World Development Co. sought to delay some loan maturities while Parkview Group put up a landmark commercial complex for sale in Beijing. The latest signs of stress are adding to concerns that the worst is far from over for the housing sector in the world’s No. 2 economy, once a powerful growth engine and now a big drag on demand for items from furniture to cars. And they are particularly worrying because Vanke’s woes show the liquidity crisis is

hurting one of the few big builders that have avoided default so far. The trouble faced by its Hong Kong peers, meanwhile, means the contagion is increasingly felt offshore.

“While recent government policies have helped to arrest the speed of decline, it could take another one or two years for the sector to bottom,” said Leonard Law, senior credit analyst at Lucror Analytics. “Against this backdrop, we can’t rule out the possibility of some more defaults next year, albeit the overall default rate should be much lower than before.”Chinese authorities have stepped up efforts in recent years to ease the country’s unprecedented housing slowdown, including interest rate cuts, slashing purchasing costs and restrictions, as well as state guarantees for bond sales by stronger developers. Top leaders also pledged to stabilize the property

market next year at a key economic meeting earlier this month. However, the rescue measures adopted so far have focused on preventing a collapse in property prices, protecting owners of unfinished apartments and using state funds to help absorb excess supply. At the same time, policymakers chose to look on as former industry behemoths China Evergrande Group and Country Garden Holdings Co. became defaulters.

This is why the banking regulator’s queries over insurance firms’ exposure to Vanke’s bonds and private debt have drawn much attention. The insurers conducted similar checks in March as fears grew over the builder’s repayment risks. Separately, Vanke executives have visited several insurers in the past few weeks, urging them not to exercise put options on some private debt that will soon be-

Life partners, lifelong friends, people in Congress, all have free moral agency to make decisions with exchanges. In the spiritual realm, the Bible tells us of many kinds of transactions or contracts using currencies of money, favors, and hope. I was taught that righteousness is a must to be acceptable to God. But since we have sin and not righteousness, the consequence should be death. Yet, with all His grace and mercy, our Heavenly Father found a way to offer that currency of hope by sending Jesus Christ to die for our sins and bear our condemnation. My pastor friend told me that this is the Great Exchange—the ultimate transaction that epitomized value for value from an eternal perspective. To me, it is the ultimate one-sided contract where one gave considerably more than the other. In John 3:16, perhaps the most beloved Bible verse among believers, the Bible said, “For God so loved the world that he gave his one and only Son, that whoever believes in him shall not perish but have eternal life.” In the spirit of Christmas, we can keep exchanging gifts with one another using the three different currencies of money, favors, and hope. As we take in the gift of salvation, we ought to give those around us the gift of love, value for value. In doing things that please Him, let’s keep using hope as a currency, with great assurance, that we are saved, in keeping with what Romans 8:24 told us, “For in this hope we were saved. But hope that is seen is no hope at all. Who hopes for what they already have?”

A former infantry and intelligence officer in the Army, Siegfred Mison showcased his servant leadership philosophy in organizations such as the Integrated Bar of the Philippines, Malcolm Law Offices, Infogix Inc., University of the East, Bureau of Immigration, and Philippine Airlines. He is a graduate of West Point in New York, Ateneo Law School, and University of Southern California. A corporate lawyer by profession, he is an inspirational teacher and a Spirit-filled writer with a mission. For questions and comments, please e-mail me at sbmison@gmail.com.

of the transfer agreement, particularly to “facilitate the successful reintegration of sentenced persons into society.”

But, in the meantime that such action has not yet been done by the President, Veloso should be released from custody of any government agency since she is not facing any charges here in the Philippines and the fact that not even a warrant of arrest has been issued against her by any court in the Philippines.

We are, of course, thankful for the kind gesture and generosity of the Indonesian government in heeding our call to spare the life of Veloso and allow her to return to our country and be reunited with her family after having been separated from them for almost 15 years.

come open to them.

“If there is no turnaround in property sales, asset disposals remain slow in a weak property market, and financial institutions become more cautious and require additional collateral, we believe Vanke could see a liquidity shortage sooner than expected,” Jefferies Financial Group Inc. analysts including Shujin Chen wrote in a note. “We still put the likelihood of a government bailout at below 50 percent.”

Vanke’s dollar bond due May 2025 dropped about 10 cents in the past week to around 80 cents on the dollar, the biggest weekly decline in more than a year. Its 2027 note also slumped to 49 cents, signaling investor doubts about full redemption.

Vanke’s woes come at a time when capital markets continue to show weak investor confidence in the sector: Mainland Chinese and Hong

Kong developers have issued $67.3 billion of bonds this year, putting the market on track for its smallest annual issuance in at least in a decade, Bloomberg-compiled data show. Meanwhile a Bloomberg stock gauge of Chinese builders has risen 3.7 percent this year, versus 24 percent for a broader index tracking the country’s firms listed in Hong Kong. In another worrying development, distressed Hong Kong builder New World Development is asking banks to postpone the due dates of some bilateral loans, a move that deepens concerns over its ability to service one of the heaviest debt loads of its kind. Controlled by the family empire of tycoon Henry Cheng, the developer had total liabilities of HK$220 billion ($28.3 billion) at the end of June and recorded its first annual loss in two decades.

December 23, 2024

Debt paper issuances fuel

17.5%

By Cai U. Ordinario @caiordinario

DEBT paper issuances of the national government led to a doubledigit increase in the country’s external debt, according to the Bangko Sentral ng Pilipinas (BSP).

T he BSP said the country’s external debt rose to $139.64 billion as of end-September 2024 from the $118.83 billion posted at the end of September 2023.

Th e central bank said this represented a 17.5-percent increase or an addition of $20.81 billion in September 2024 compared to the same period last year.

The increase was primarily driven by total net availments by both public and private sector borrowers as well as the net acquisition of Philippine debt securities by non-residents,” the BSP said in a statement.

Th e BSP said compared to the end-June 2024 period, the country’s external debt increased $9.46 billion or 7.3 percent from the $130.18 billion level.

A s a percentage of the country’s GDP, the external debt to GDP ratio rose to 30.6 percent from the 28.9 percent recorded in the previous quarter. BSP said this was still a “prudent level.”

Th e increase, the BSP said, was driven by the national government’s efforts to raise $4.17 billion in the quarter.

Th e largest of the fund raisers

is the $2.5-billion Triple Tranche Fixed Rate Global Bonds issuance

external debt hike

and the $1.44 billion the national government raised from official creditors to finance its various development programs/projects.

P rivate sector corporations also sought the offshore market to expand their funding base and augment their working capital with its net availments for the quarter aggregating $1.82 billion.

“Investor preference to seek yields in emerging market debt securities amid anticipation of a US Federal Reserve rate cut in September 2024 and weakening of the US dollar during the third quarter resulted in the $2.77-billion net acquisition by non-residents of Philippine debt securities,” the BSP said.

Th e BSP said the positive foreign exchange revaluation of borrowings denominated in other currencies was due to the relative weakening of the US dollar, largely against the Japanese yen.

Th is, the central bank said, further increased the US dollar value of the country’s debt stock by $1.56 billion. The negative prior periods’ adjustments slightly tempered the increase by $248.77 million.

Meanwhile, BSP data showed that public sector external debt grew by $7.06 billion or 8.8 percent to $86.88 billion in the third quarter of 2024—from the $79.83-billion level last quarter with share to total recorded at 62.2 percent. Th e increase in public sector borrowings was largely driven by net availments of $3.56 billion and net acquisitions by non-residents of Philippine peso-denominated government debt securities of $2.17 billion.

Koko to BSP: Explain further the basis for pivot to polymer notes

By Butch Fernandez @butchfBM

SENATE Minority

Leader

Aquilino “Koko” Pimentel

II wants the Bangko Sentral ng Pilipinas (BSP) to answer crucial questions raised by its decision to expand the use of polymer (plastic) bank notes, and is set to file a resolution seeking an inquiry. He wants the BSP, first, to lay bare the results of its “trial” when it announced a few years ago that the issuance of polymer one-thousand peso (P1,000) bills is up for evaluation and the volume of notes is being limited. What was the result of their trial? Have they informed us what happened? How can they just go ahead and expand the polymer use across other bank notes without reporting on the results of their trial?” Pimentel said, partly in Filipino at the weekend.

In a radio interview with DWIZ’s Cely Bueno, Pimentel said despite the limited period Congress has before the adjournment next year, lawmakers need to be assured that the BSP decision—announced last week with President Ferdinand Marcos Jr. himself unveiling the new polymer series—was based on transparency, a keen understanding of Filipinos’ habits in handling money, and fiscal responsibility.

He referred to claims that the wider use of polymer will save the government on costs because polymer, being more durable than the abaca-based paper notes, doesn’t have to be printed or replaced as often. Hower, he wanted to know the impact to the government’s bottomline of leaving the BSP’s main printing plant underutilized, after, he noted, “spending billions” to

upgrade it the past few years? The plant prints paper notes, and is not equipped to print polymer notes, which the Philippine government has contracted out to an Australian supplier, the senator noted. With the shift to polymer, we’re left dependent on an Australian supplier. Is that good? If there a country that wants to be reliant on a foreign group for its money?” he asked in Filipino.

S enators, he said, are not blocking the shift to plastic notes, but BSP must answer key questions as part of its responsibility to the public, Pimentel stressed. They must answer questions on “the money itself, the design of the money, printing of the money, etc.”

B esides his concern over the fate of the huge printing plant in Quezon City, Pimentel also reiterated his earlier concern over the impact of the polymer shift on Filipino abaca farmers, who supply the BSP.

H e also acknowledged questions over whether “replacing the heroes” on the bank notes with Philippine flora and fauna are politically motivated. He said he won’t pass judgment on this, but wants to give the BSP a chance to explain.

BSP officials explained at the weekend, however, that the intent is not to replace the “hero series” but to let the two sets of money notes circulate together. Story in A1, Paper bills to “co-circulate” with a billion polymer notes. (Story in A1, Paper bills to “co-circulate” with a billion polymer notes.)

P imentel said he will soon be filing the resolution asking the Banks committee to call hearings on the matter.

Fu rther, the relative depreciation of the US dollar against other currencies increased the US dollar equivalent of public sector borrowings denominated in other currencies by $1.4 billion.

Th e data showed $80.13 billion or 92.2 percent of public sector obligations are attributed to the national government, while the remaining $6.76 billion or 7.8 percent pertained to borrowings of government-owned and controlled corporations, government financial institutions and the BSP.

Private sector debt

MEANWHILE , private sector debt rose to $52.76 billion at the end of the third quarter of 2024, a $2.4 billion or 4.8-percent increase from the end-June 2024 level of $50.36 billion.

Th e growth in private sector borrowings was mainly driven by a $2.52-billion increase in local banks’ other liabilities as they tapped the offshore markets to address their funding requirements and support asset growth.

Th e net acquisition by non-residents from residents, of debt securities issued offshore amounting to $599.04 million, and the positive FX revaluation of borrowings de -

nominated in other currencies of $163.4 million, further swelled private sector borrowings.

Th e country’s major creditor countries were Japan with $15.38 billion; the Netherlands, $4.61 billion; and the United Kingdom, $4.51 billion.

L oans from official sources (multilateral and bilateral creditors) had the largest share at $52.43 billion or 37.5 percent of the total outstanding debt.

Th is was followed by borrowings in the form of bonds/notes at $47.61 billion or 34.1 percent; and obligations to foreign banks and other financial institutions at $31.73 billion or 22.7 percent; the rest were owed to other creditors, mainly suppliers/exporters, $7.87 billion or 5.6 percent.

In terms of currency mix, the country’s debt stock remained largely denominated in US dollar at $104.03 billion or 74.5 percent of total.

Th is was followed by the Philippine peso at $12.75 billion or 9.1 percent and Japanese yen at $10.91 billion or 7.8 percent of total.

The rest at $11.96 billion or 8.6 percent pertained to 17 other currencies, including the euro at $6.99 billion or 5 percent of the total and Special Drawing Rights, $3.87 billion or 2.8 percent.

PEZA EYES OPENING OF 30 NEW ECOZONES, CITES AGRI’S ROLE

By Ada Pelonia

THE Philippine Economic Zone Authority (PEZA) is eyeing the opening of 30 new ecozones in 2025.

According to PEZA Director General Tereso O. Panga, the investment promotion agency (IPA) supports the plan to integrate small and medium enterprises (SMEs) into the ecozone value chain.

To do that, he said the agency would have to promote the creation of more economic zones in the countryside.

“Ideally, we’re looking at 30 economic zones that can be proclaimed,” Panga told reporters in a recent interview.

The location of these new ecozones would mostly be in Calabarzon, but he added that they are looking at new growth areas, including rural areas.

[That would be] Region 3 [Central Luzon], the ones in Cebu, [and] we’d like to see more ecozones being developed in Mindanao,” he said.

The director general also emphasized the role of agriculture in ecozones. The ones that will really make a big push for this are the agri. Because agri are more into resource-seeking type of investments. So agri, including green ores,” he said.

According to Panga, about P1 billion to P2 billion for a minimum 25 hectares would be needed to develop one economic zone.

“[Per] our performance under the current administration, we’re doing 16 proclamations. If we can double it, then that will definitely stimulate production as well as economic activities, especially in new growth areas,” he said.

D espite this, Panga noted the challenge of providing readily available areas to investors.

“ When we get investors inquiring about onsite selection, if we don’t have land to offer them especially economic zones, easily just like that, we lose out to other competitors in the region,” Panga said.

Meanwhile, PEZA recently said the

OCD calls execs on tsunami response

FFICE of Civil Defense

O(OCD) administrator Undersecretary Ariel Nepomuceno on Sunday met with disaster response officials to discuss contingency plans amid the recent series of earthquakes that have struck Ilocos Sur, raising concerns about a potential tsunami event.

T he meeting brought together various government agencies to focus on preparing for the worst-case scenario.

Recognizing the heightened tsunami threat, Nepomuceno stressed the urgent need to intensify the dissemination of early warning systems.

T he OCD chief said all concerned must know how to communicate tsunami risks in layman’s terms to ensure public comprehension.

“ We must create a system where, when there is a final warning, the message is clear: run to higher ground, not to evacuation centers. This is crucial for effective response,” he stated.

Nepomuceno noted the need to rethink the tsunami warning approach as the public should be heading towards higher ground and not to evacuation centers.

When a tsunami warning is issued, the instinctive action should be to seek higher ground. Many existing evacuation centers may not be safe in this context, and we cannot afford any confusion. Our community must understand this critical directive,” he added.

T he first critical assumption is understanding the estimated arrival time of the first

tsunami wave, which varies depending on the distance from the tsunami source. Th is information is vital for calculating the area at risk and determining how quickly evacuation must occur.

It is essential to understand local risks, including historical data and potential impacts, as well as specific tsunami hazards in the community and the vulnerability of the population and infrastructure to tsunamis.

Actions to be taken by the councils include referring to tsunami hazard maps, clarifying with the Philippine Institute of Volcanology and Seismology (Phivolcs) the arrival times of tsunamis in various locations, understanding the nature of tsunami waves and their potential to cause damage,

preparing for possible power failures, inventorying generators and backup communication systems for local Emergency Operations Centers (EOCs), issuing directives from the Department of the Interior and Local Government (DILG) to local government units (LGUs) for the identification and assessment of evacuation centers, conducting information dissemination campaigns, tsunami drills, and emergency communication drills, designating advance observation posts, and preparing “Go Bags” with flashlights and dry cell batteries. Evacuation plans must identify suitable roads and paths for escape, which involves assessing the condition and safety of these routes before a tsunami or earthquake occurs. Rex Anthony Naval

VILLARS’ HOLIDAY CHEER Senator Cynthia Villar and her son, Senator Mark Villar, brought joy to 50 children from Baseco Compound, Manila, as they distributed Christmas gifts at the Villar Children’s Park in Bacoor City, Cavite, over the weekend. The gesture is part of the Villar family’s annual tradition of spreading holiday cheer to communities in need. ROY DOMINGO

Editor: Jennifer A. Ng

B1

Monday, December 23, 2024

ACEN may hike capex budget for 2025–exec

By Lenie Lectura @llectura

ACEN Corp. said its capital expenditures (capex) for 2025 could increase to P70 billion from this year’s P50 billion.

“We are forecasting P50 billion in capex across all geographies for fiscal year 2024. In 2025, we expect to spend roughly P70 billion,”

said ACEN President and CEO Eric Francia. The amount will be used to achieve its goal of having 20 giga -

watts (GW) of renewable energy (RE) capacity by 2030.

ACEN intends to operationalize several power projects with a total capacity of 1.2GW by end of next year. It currently has 6.8 GW of attributable RE capacity spanning operational, under-construction, and committed projects. Of which, 1.2GW of various RE projects will be operational soon.

Of the 6.8GW, 45 percent are operating, 34 percent are under construction and the rest are under the committed project list.

Among the big-ticket energy projects expected to be completed in 2025 is the 520-megawatt (MW) Stubbo Solar in New South Wales, Australia, through its subsidiary ACEN Australia. The other projects lined up to be switched on next year are the 146 MW Monsoon Wind project in Laos, the 123-MW hybrid solar and wind project in India, and the 109-MW Stockyard Wind project in Texas, United States.

ACEN is the publicly listed energy platform of the Ayala Group

with a rapidly growing presence across the Philippines, Australia, Vietnam, India, Indonesia, Lao PDR, and the United States

The company last week announced it bagged a contract to construct a 936 MW wind power project in New South Wales, Australia.

“That’s the Valley of the Winds project in New South Wales. The Australian government actually bid out capacity contracts to enable renewables,” Francia said.

The Valley of the Winds project

is among the 19 projects selected as part of a national tender process for Australia’s Capacity Investment Scheme (CIS), which ensures enough new affordable and reliable electricity will be brought into the grid to meet demand between now and 2030.

Valley of the Winds is the biggest project awarded a CIS to date. The CIS conducts competitive tenders to select projects that offer the best financial value and align with Australia’s energy reliability and emissions reduction goals.

Fortune Life marks 4 decades of unwavering commitment

CELEbR ATING its Ruby Anniversary, Fortune Life Insurance Company marked its 40th milestone on December 6, 2024 at the Makati Sports Club. The celebration was a joyous occasion, bringing together officers and employees in a heartfelt tribute to four decades of unwavering commitment, excellence, resilience, and camaraderie. The evening commenced with a warm welcome from the EVP and COO Emma Abad, setting the tone for a night filled with gratitude and celebration. Guests were serenaded by the performances from The Voice Teens

Philippines Artist Matt Reyes, and the Sto. Niño de Molino Parish Choir.

One of the event’s highlights was a special song number performed by Fortune Life Sessionistas featuring tenured officers and employees, who have dedicated 35 to 40 years of service to the company.

Adding an element of fun and excitement to the evening, the event featured a series of raffle draws with fabulous prizes, much to the delight of attendees. A thrilling Human bingo game, where participants competed to be the last one standing with grand cash prizes at stake as

lucky winners stand out from the rest. Moreover, a digital time capsule was unveiled to showcase the evolution of Fortune Life—its past, present, and future—captured through a video presentation, to be preserved for the next generations of leaders of the company.

President and CEO D. Arnold Cabangon led a heartfelt ceremonial toast, honoring the momentous occasion with a spirit of unity and celebration.

Continued on B2

Banking&Finance

Perspectives

Accelerating business transformation

MANY companies are perpetually transforming to stay competitive in today’s fast-paced business environment. To navigate the complexity, fatigue, and risk that often accompany these efforts, organizations are increasingly turning to managed services.

In fact, according to the KPMG and HFS Research Managed Services Outlook, this operating model accounts for more than half of service delivery across most business functions, and usage is expected to increase on average by 10 percent in the next one to two years. But what exactly is managed services? This type of outsourcing can often be seen as the Wild West, with a market that includes tech firms, management consultants, staffing agencies, specialty vendors, and legacy offshore players focusing on labor arbitrage for back-office work. Managed services goals, likewise, can range from tactical targets like error rates and response times to strategic outcomes like resilience, trust, and growth.

Going from processor to collaborator WITH most companies using the terms outsourcing and managed services interchangeably, the joint market study shows that perceptions of managed services are changing. More than 80 percentup from 62 percent last year—see modern managed services as the delivery of key processes or subprocesses on an outcome-based, asa-service subscription, in contrast to more piecemeal outsourcing.

As companies navigate a crowded managed services market, they continue to seek a new kind of managed services provider; one that goes beyond the transactional activities that keep the lights on. They also want to shine a new light on the future - with proactive collaboration that enables ongoing, accelerated transformation. Going beyond basic improvements

PERFORMANCE improvement is usually about increasing productivity in existing processes: doing them faster, better, and with less labor where possible. A transformation, by contrast, is a fundamental change in a process, operating model, or business model that delivers significant impact throughout an organization—from enabling new-market expansion to reimagining stakeholders’ experience.

And in a world of constant flux, transformation is not a one-time event. Progressive companies strive to continually transform, with flexible operating models that keep evolving.

“Organizations are increasingly turning to managed services for their ability to go beyond small improvements and take on crucial and knowledge-intensive processes. By leveraging advanced technology, expertise, data-driven insights and leading practices, managed services enable organizations to unlock transformative outcomes,” said R.G. Manabat & Co. Technology Consulting Director Kirby O. Caliao.

What makes a service a managed service?

MANY organizations are redefining managed services by prioritizing factors beyond cost reduction and generic process capability, which have been the focus of traditional models.

Ninety-three percent of respondents agree that a modern

managed service requires embedded process and tech proficiency to enable ongoing transformation. Because processes can change significantly from one sector to the next, a key component of domain expertise is deep industry experience - cited by 87 percent of respondents as a defining ingredient of managed services.

Determining the appropriate fit WHEN it comes to the selection of managed services providers, buyers point to the following as the most essential criteria: n Access to advanced technology n Access to global talent; Predictable costs n Multi-year contract Interestingly, regarding access to talent, respondents plan to focus more on capability than cost in the next two years, as only 19 percent intend to utilize low-cost talent as part of their future managed services delivery, compared with 42 percent today. This indicates that the market is shedding its ‘your-mess-forless’ perceptions about managed services. Instead, companies are focusing their managed services talent profile in the next two years on these hard-to-find roles: n Technical experts n Data and analytics experts n Process/domain experts n Creative problem solvers

Redefining managed services to match the needs of the market MODERN managed services combine Al and other sophisticated technologies with embedded domain expertise, sector-specific knowledge, consulting capabilities, and proactive collaboration—all packaged in a multiyear, as-a-service subscription with predictable costs. These services are typically delivered remotely and take responsibility for knowledge-intensive processes in the front, middle, and back office. In addition to reducing costs, transformational managed services drive enterprise outcomes such as accelerated innovation, accurate forecasting, regulatory risk management, stakeholder trust, and agile adaption to market change.

How KPMG can help KPMG professionals believe that business transformation is now a necessity—and that successful transformation requires the right tech and best processes with people whose insights are as broad as they are deep.

KPMG firms have worked at the heart of global businesses for many decades, helping clients realize the full potential of their people and technology, and working together to achieve real-world outcomes. Because when people and technology are in harmony, great things happen.

This excerpt was taken from the KPMG Thought Leadership publication: https://kpmg.com/xx/en/our-insights/ transformation/accelerating-business-transformation.html.

© 2024 R.G. Manabat & Co., a Philippine partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. For more information, you may reach out through ph-kpmgmla@kpmg. com, social media or visit www.home.kpmg/ph. This article is for general information purposes only and should not be considered as professional advice to a specific issue or entity. The views and opinions expressed herein are those of the author and do not necessarily represent the BusinessMirror , KPMG International or R.G. Manabat & Co.

Tax proposals seen to raise ₧300B in revenues in 5 yrs

By Reine Juvierre Alberto @reine_alberto

SEVERAL increases in wealth tax rates proposed by the Department of Finance (DOF) are seen to raise P300 billion in revenues over the next five years.

Finance Secretary Ralph G. Recto told reporters that the proposed “Government Revenues Optimization through Wealth Tax Harmonization” (Growth) bill, formerly the “Passive Income and Financial Intermediary Taxation Act” (Pifita), will generate about P300 billion from 2025 up to 2030.

“We are raising new revenues.

We’ve tweaked already the revenue measures,” Recto said, adding that the Pifita and the Capital Market Efficiency Promotion Act (CMEPA) spell revenue losses.

As such, the DOF has harmonized the current 6-percent tax rates for capital gains, donor’s and estate taxes to a unified 10 percent. Capital gains tax is a tax applied

to the profit earned from the sale of real property and stocks acquired in the Philippines. A donor’s tax is a levy on the donor transferring property to a person or institution as a gift, while an estate tax is imposed on inherited assets. The revised tax measures include a sunset provision until 2030, after which the rates will return to 6 percent unless extended by Congress, according to Recto.

Moreover, interest on residents’ deposits under the foreign currency deposit system accounts will be taxed at 20 percent, up from 15 percent, to remove arbitrage opportunities.

“Why should I favor the dollar over the peso? Why should the dollar have lower interest rates than the peso? Let’s equalize it to 20 percent with no exemptions,” Recto said.

The DOF will also remove the exemptions in the gross receipts and

Income from treaties exempted from taxes Cease,

ANY income earned under international treaties and agreements binding upon the Philippine government will be exempt from the computation of gross income and income tax, according to the Bureau of Internal Revenue (BIR).

This was after the BIR issued Revenue Regulation 18-2024 that was signed by Finance Secretary Ralph G. Recto on December 17. The ruling will implement Section 32(B)(5) of the National Internal Revenue Code, as amended by the recently enacted Republic Act (RA) 12066 (“Create More” law).

The exemption applies to treaties or agreements negotiated by the President or authorized representatives with economies and administrative regions, provided they receive the concurrence of at least two-thirds of the Senate.

Aruba, Anguilla, Bermuda, British Virgin Islands, Cayman Islands, Christmas Island, Cocos Island, Cook Islands, Curaçao, Faroe Islands, French Polynesia, Greenland, Guam, Hong Kong, Macao, New Caledonia, Niue, Norfolk Island, Northern Mariana Islands, Pitcairn Islands, Puerto Rico, Saint Barthelemy, Sint Maarten, Saint Helena, Ascension and Tristan da Cunha, Taiwan, Turks and Caicos Islands, US Virgin Islands and

Wallis and Futuna are in the list of economies or administrative regions with which such agreements may be negotiated.

An international agreement is a contract of understanding entered between the Philippines and another government governed by international law, whether embodied in a single instrument or two or more related instruments.

Meanwhile, a treaty is an international agreement entered into by the Philippines that requires legislative concurrence after executive ratification. This may also include conventions, declarations, covenants and acts.

“Nothing in this Regulation shall be construed as recognizing the statehood of such economies and administrative regions and derogating from whatever policy that the Philippines has agreed to adopt and implement,” Recto said in the regulation.

Signed into law on November 11, RA 12066 aims to enhance the Philippines’s appeal as a business destination by refining its tax incentives framework to “be more aligned with global standards” and attract more investments.

To note, the government has yet to complete the implementing rules and regulations of the Create More Act. Reine Juvierre Alberto

Bankruptcies, suicide rise

PERSONAL debt is overwhelming an increasing number of Japanese as higher interest rates and the rising cost of living bite.

Consumer loans are rising at the highest rate in 16 years. Household borrowing exceeded incomes for the first time last year. And government officials are worried that many people accustomed to rock-bottom rates will struggle with their mounting loans.

While Japan is by no means alone in confronting a debt problem, salaries are the lowest of Group-of-Seven countries, and the central bank is raising borrowing costs while its peers cut them.

Lawyers estimate that personal bankruptcies—already the highest since the pandemic—are on track to reach the most since 2012 this year. And in a tragic turn, suicides related to debt are also climbing.

The problem is all the more remarkable given that the country is better known for savers stashing cash under the mattress rather than piling into debt.

Yet average household debt rose

to ¥6.55 million ($42,000) in 2023, higher than incomes, government data showed.

Take the case of a Tokyo-based medical worker who filed for personal bankruptcy last year after her consumer loans reached about ¥11 million.

The woman in her early 60s said she fell into a spiral of paying back debt, borrowing money from one lender in order to return money to a previous one, and then taking out another loan to pay that back. She asked not to be identified given the social stigma of bankruptcy.

Most consumer loans outstanding have an interest rate of 14 percent-16 percent, according to Japan’s Financial Services Agency. The woman said she was paying as much as 18 percent on some of her borrowings.

The surge in consumer debt underscores Japan’s delicate balancing act as the world’s fourth-largest economy emerges from decades of deflation and economic stagnation. While people are getting more confident about the future and receiving loans for house purchases and other

withholding taxes but will keep the rates at 5 percent and 20 percent, respectively.

“We do have a deficit and we still want to plug it so that we don’t have to borrow more,” the Finance chief said. Recto added that the public will not be affected by the proposed tax reforms since these are financial taxes, not consumption-based taxes. The proposed “Growth” bill is part of Package 4 of the Comprehensive Tax Reform Package (CTRP). That package aims to harmonize the taxation of passive income and financial intermediaries by reducing and simplifying the complex tax system of financial transactions.

The House of Representatives approved Pifita and CMEPA on final reading, while the Senate’s versions of the legislations are still in committee stages.

desist order vs firms made permanent by SEC

By VG Cabuag @villygc

THE Securities and Exchange Commission has made permanent the cease and desist order against Humanitarian and Spiritual Mission Apostulates of Davao and Asia Inc., Hasmadai Foundation Inc. and Humanitarian Institute of Technology Corp. for their unauthorized solicitation of investments.

In a resolution, the SEC en banc affirmed the issuance of the CDO against the Hasmadai Group, effectively denying the company’s motion to lift.

The SEC issued the CDO against these entities on May 21 after they were found to be soliciting investments from the public without the necessary license from the Commission through the Hasmadai Group’s branches in the Caraga Region.

The Hasmadai Group’s scheme revolved around the solicitation of donations ranging from P5,000 to P20,000, with the donor guaranteed to get a monthly “missionary allowance” equivalent to 27 percent to 34 percent of the donation.

A donor of P5,000 is guaranteed to receive P8,100 over a 6-month period, while a donor of P20,000 are promised to get more than twice the amount at P41,4000.

The scheme involved the sale or offer of securities in the form of investment contracts, whereby a person makes an investment of money, in a

common enterprise, with the expectation of profits, to be derived solely from the efforts of others, the SEC said. Section 8 of Republic Act (RA) 8799, or the Securities Regulation Code (SRC), provides that securities shall not be sold or offered for sale or distribution within the Philippines, without a registration statement duly filed with and approved by the SEC. In its motion to lift the SEC order, Hasmadai representatives maintained that the amounts received by its entities were donations and not investments and, as such, cannot be considered as securities under the contemplation of the SRC. It further argued that it is a religious organization whose operations are supported by the donations it receives from willing donors, both locally and abroad, and from the profits generated by its shopping centers. The SEC dismissed the Hasmadai Group’s arguments, and ruled that its members are not donating out of gratuity, but because of the promised missionary allowance ranging from 27 percent to 34 percent that they will receive.

“The use of the term ‘donation’ by Hasmadai does not operate to negate the fact that the unauthorized investment scheme, which it is carrying out, consists of selling/ offering unregistered securities in the form of investment contract,” the SEC en banc said.

as Japanese fight vs debt

spending, in some cases they’re borrowing as inflation drives up prices. The ratio of household debt over average disposable income in Japan hit a record 122 percent in 2022, according to the latest comparative figures compiled by the Organisation for Economic Co-operation and Development. That’s in contrast to the US and the UK where it’s fallen over the past decade.

Huge wage gap PEOPLE are borrowing more in some of the world’s largest economies, but Japan’s relatively low salaries make the issue particularly acute. Average wages in Japan were about $47,000 in 2023, vastly behind around $80,000 in the US, according to OECD data in dollar terms.

“There are still companies where wages remain low, and these companies are unable to keep up with rising prices,” said Takuya Hoshino, chief economist at Dai-ichi Life Research Institute Inc.

More than 70,000 people had filed for individual bankruptcy in 2023, according to a govern-

ment report. Shigeki Kimoto, an attorney at Shinwa Law Office in Tokyo, said that January-October court data indicates the figure may rise to between 75,000 and 80,000 this year.

The BOJ also flagged rising household debt in its bi-annual financial system report in October, saying that increasing home ownership among young people exposes them to bigger interest payments. Debt problems from multiple borrowings have been blamed as a major factor causing more people to take their own lives, with such suicides jumping to 792 in 2023. The last time the figure was this high was in 2012, in the aftermath of a government crackdown on consumer lending that led to the shuttering of thousands of moneylenders, and choked off credit.

Consumer lending has grown by 8 percent or more every month through September this year, according to year-on-year data from an industry group. That’s the highest since it started compiling the statistics in 2008. Bloomberg News

Trump promises to end birthright citizenship: What is it and could he do it?

By Rebecca Santana The Associated Press

President-elect donald trump has promised to end birthright citizenship as soon as he gets into office to make good on campaign promises aiming to restrict immigration and redefining what it means to be American.

But any efforts to halt the policy would face steep legal hurdles.

Birthright citizenship means anyone born in the United States automatically becomes an American citizen. It’s been in place for d ecades and applies to children born to someone in the country illegally or in the US on a tourist or student visa who plans to return to their home country.

It’s not the practice of every country, and Trump and his s upporters have argued that the system is being abused and that there should be tougher standards for becoming an American c itizen. But others say this is a right enshrined in the 14th Amendment to the Constitution, it w ould be extremely difficult to overturn and even if it’s possible,

it’s a bad idea.

Here’s a look at birthright citizenship, what Trump has said about it and the prospects for ending it:

What Trump has said about birthright citizenship DU r I ng an interview Sunday on n B C’s “Meet the Press” Trump said he “absolutely” planned to halt birthright citizenship once in office.

“We’re going to end that because it’s ridiculous,” he said. Trump and other opponents of birthright citizenship have argued that it creates an incentive f or people to come to the US illegally or take part in “birth tourism,” in which pregnant women e nter the US specifically to give birth so their children can have citizenship before returning to

their home countries.

“Simply crossing the border and having a child should not entitle anyone to citizenship,” said E ric r u ark, director of research for nu mbersUSA, which argues for reducing immigration. The organization supports changes that would require at least one parent to be a permanent legal resident or a US citizen for their children to automatically get citizenship.

Others have argued that ending birthright citizenship would p rofoundly damage the country.

“One of our big benefits is that people born here are citizens, are not an illegal underclass. There’s better assimilation and integration of immigrants and their children because of birthright citizenship,” said Alex nowrasteh, vice president for economic and social policy studies at the proimmigration Cato Institute.

In 2019, the Migration Policy Institute estimated that 5.5 million children under age 18 lived w ith at least one parent in the country illegally in 2019, representing 7 percent of the US child p opulation. The vast majority of those children were US citizens.

The nonpartisan think tank said during Trump’s campaign for president in 2015 that the number of people in the country illegally would “balloon” if birthright citizenship were repealed, c reating “a self-perpetuating class that would be excluded

from social membership for generations.”

What does the law say?

In the aftermath of the Civil War, Congress ratified the 14th Amendment in July 1868. That amendment assured citizenship for all, including Black people.

“All persons born or naturalized in the United States and s ubject to the jurisdiction thereof, are citizens of the United States and of the State wherein they reside,” the 14th Amendment says. “ no State shall make or enforce any law which shall abridge the privileges or immunities of citizens of the United States.”

But the 14th Amendment didn’t always translate to everyone being afforded birthright citizenship. For example, i t wasn’t until 1924 that Congress finally granted citizenship t o all n a tive Americans born in the US.

A key case in the history of birthright citizenship came in 1898, when the US Supreme Court ruled that Wong Kim Ark, born in San Francisco to Chinese immigrants, was a US citizen because he was born in the states. T he federal government had tried to deny him reentry into the county after a trip abroad on grounds he wasn’t a citizen under the Chinese Exclusion Act.

B ut some have argued that the 1898 case clearly applied to

children born of parents who are both legal immigrants to America but that it’s less clear whether it applies to children born to parents without legal status or, for e xample, who come for a shortterm like a tourist visa.

“That is the leading case on this. In fact, it’s the only case on this,” said Andrew Arthur, a fellow at the Center for Immigration Studies, which supports immigration restrictions. “It’s a lot more of an open legal question than most people think.”

Some proponents of immigration restrictions have argued the words “subject to the jurisdiction thereof” in the 14th Amendment allows the US to deny citizenship to babies born to those in the country illegally. Trump himself used that language in his 2023 announcement that he would aim to end birthright citizenship if reelected.

So what could Trump do and would it be successful?

TrUMP w asn’t clear in his Sunday interview how he aims to e nd birthright citizenship.

Asked how he could get around the 14th Amendment with an executive action, Trump said: “Well, we’re going to have to get it changed. We’ll maybe have to go back to the people. But we have to end it.” Pressed further on whether he’d use an executive order, Trump said “if we can, through executive action.”

He gave a lot more details in a 2023 post on his campaign website. In it, he said he would issue a n executive order the first day of his presidency, making it clear that federal agencies “require that at least one parent be a US citizen or lawful permanent resident for their future children to b ecome automatic US citizens.” Trump wrote that the executive order would make clear that c hildren of people in the US illegally “should not be issued passports, Social Security numbers, o r be eligible for certain taxpayer funded welfare benefits.” This would almost certainly end up in litigation. no wrasteh from the Cato Institute said the law is clear that b irthright citizenship can’t be ended by executive order but that Trump may be inclined to take a shot anyway through the courts.

“I don’t take his statements very seriously. He has been saying things like this for almost a d ecade,” no wrasteh said. “He didn’t do anything to further this agenda when he was president before. The law and judges a re near uniformly opposed to his legal theory that the children of illegal immigrants born in the United States are not citizens.” Trump could steer Congress to pass a law to end birthright citizenship but would still face a legal challenge that it violates the Constitution.

Migran T S walk along the Huixtla highway in the state of Chiapas, Mexico, October 22, 2024, hoping to reach the country’s northern border and ultimately the United States. AP/Edg A r H. Cl E m E nt E

BY WORK OF CALIFORNIAN

PHOTOGRAPHER

CHRIS PERANI

GLOBAL fashion brand COS (www.cos.com) announces a limited-edition capsule collection inspired by the work of Californian photographer Chris Perani. Based in San Rafael, California, Perani grew up surrounded by forests and dense marshlands and found himself captivated by the layers of the often-unseen beauty he experienced. Gravitating toward photography, he sought to recreate those moments by experimenting with techniques in macro photography. The 24-piece collection draws inspiration from a shared interest in nature in the form of Perani’s photographs of the unseen intricacies found in organic structures such as the texture of minerals and the multi-colored, iridescent scales of the butterfly wing. To achieve this level of precision, Perani focuses on a specific area and utilizes a lens from a microscope to create an extremely shallow depth of field. This unique process yields 350 exposures, each capturing a sliver in focus. In total, this accounts for 2,100 separate exposures which are then meticulously composited, resulting in a single image. Perani’s intricate imagery comes to life in a series of prints and across a variety of tactile materials including a classic white shirt that features a statement beaded applique of the wing. Revisiting wardrobe staples, an elegant long-sleeved dress, crafted in double-faced wool knit, is reimagined as a statement piece. Deep, rich colors, reminiscent of Perani’s work, are brought to life through digital prints applied to both sides of the fabric, creating a heavy-weight yet fluid silhouette that mimics the movements of nature. Denim separates are artfully combined to form striking matching sets, adorned with a subtle jacquard pattern that evokes the delicate beauty of a butterfly. The capsule spanning womenswear, menswear and accessories is available online and at the COS Store in SM Aura Premier.

Alchemy

fragrances

WITH the prices of fragrances going up (just like everything else), less expensive but good quality alternatives are always welcome.

When I attended the launch of fragrance line Alchemy, I thought it was a brand from Korea because the aesthetic of the bottles was very Korean. Most Korean fragrances come in minimalist packaging. The bottles are usually clear. The eaux de toilette are pleasant and inoffensive. There are no beast mode fragrances in the line because these are scents you can wear to school or the office. The Alchemy launch was graced by renowned perfumer Renato Lopena Jr., who shared insights into the art of crafting scents, and professional tarot card reader CJ Francisco. The Mirror of Manifestation activity gave guests a space to reflect on personal goals and set powerful intentions.

SM’s meaningful Christmas

AT SM Supermalls, we always expect laughter, music, and a sprinkle of magic to set the stage for a joyous holiday season. This year, the country’s favorite shopping destination adds more meaning to the celebrations with thoughtful gift ideas for more AweSM memories.

GIFTS TO HELP SAVE WILDLIFE FROM EXTINCTION

THE Philippines is blessed with biodiversity that is the envy of most of the world. Yet it also has majestic creatures that are on the brink of extinction: the Philippine Eagle, Pawikan, Tamaraw, Cockatoo, Dugong, and the Philippine Pangolin.

Preservation efforts such as the Save From Extinction campaign are underway to save these endangered species from totally disappearing from the face of the Earth. The initiative is led by the Department of Environment and Natural Resources in partnership with SM Supermalls, BDO Unibank, Kultura, the Forest Foundation Philippines, Katala Foundation, Philippine Eagle Foundation, World Wide Fund for Nature - Philippines, D’Aboville Foundation, and the Zoological Society of London - Philippines. The shopping public can also do its fair share to support Save From Extinction by purchasing canvas tote bags and T-shirts made by SM Retail brand Kultura. The items feature each of the six Philippine animals, and can be meaningful gifts this holiday season.

“What makes these T-shirts and tote bags such thoughtful gifts this Christmas is that they are not only stylish and unique, but they also carry a powerful message. Each item features beautiful designs of the six endangered species, serving as a reminder of the urgent need to protect our natural heritage. By purchasing one [or more!], you are contributing to a greater cause that impacts the environment, wildlife and future generations,” said the supermall chain in a statement.

Make a difference this Christmas. Visit the Save From Extinction kiosks at SM Megamall, SM Mall of Asia, SM North Edsa, SM Aura Premier, and SM Makati until December 31.

ZARAH JUAN’S ‘BARONG PROJECT’

ANOTHER meaningful initiative by the supermalls is the Barong Project. With renowned designer Zarah Juan’s creative genius, it reimagines a Filipino tradition by upcycling used Barong Tagalog garments into eye-catching Christmas decorations.

The project is also in partnership with SPARK! Philippines, the Caring Keri Foundation, the San Juan City Government, and the Bureau of Jail Management and Penology (BJMP) San Juan City Jail Male and Female Dormitories. It aims to empower Persons Deprived of Liberty (PDLs) through creative expression while promoting sustainability and promoting community development.

The upcycled Barong Christmas ornaments, which can be lovely and unique gifts, are available at Outside

The PDLs will receive 100 percent of the proceeds.

“The Barong Project is a profound testament to our dedication to caring for people, honoring our planet, and preserving cherished traditions—a harmonious blend of compassion, sustainability and cultural pride,” says Zarah Juan. “It not only uplifts the spirits of the Persons Deprived of Liberty of San Juan City but also gives them hope and joy during the holiday season, paving the way for meaningful social transformation.”

At the launch, San Juan City Mayor Francis Zamora underlines the project’s “potential to inspire more initiatives that blend tradition, sustainability and livelihood development, while supporting PDLs through the proceeds.”

At the same event, Keri Zamora, president of the Caring Keri Foundation, shared that “”the Barong Project aims to provide income-generating opportunities for PDLs, promote equality, equip them with skills, and establish partnerships to combat stigma and create job opportunities.”

“At SM Supermalls, we are committed to supporting Filipino talent and local businesses. By transforming recycled materials into exceptional works of art, we are not only promoting creativity but also providing opportunities and instilling hope,” said SM Supermalls president Steven Tan. “This project makes every Christmas celebration more meaningful, and we encourage everyone to support local artisans and designers.”

SPECTACULAR CHRISTMAS TREES

AROUND THE COUNTRY

ONE of the highlights of the Filipino holidays,

smell good and are affordable

“We believe in the transformative power of scent. Alchemy is more than a fragrance—it’s a ritual, a way to center yourself, and a reminder of the energy and intentions you carry throughout the day,” said Happy Lacson-Mabulay, business unit director of Descorp Inc.

Alchemy claims to be a line that uses all-natural botanical ingredients with pH-balancing elements. The scents also claim to be long-lasting, up to 12 hours.

The Alchemy eaux de toilette combine aromatherapy with the magic of scent so choosing one of the four depends on your mood and aura. You could call the names of the scents aspirational because each one addresses a state of being that you aspire to be in at the moment.  And if you are curious, the Alchemy scents are designer-inspired.

The scent Love opens with jasmine, orange blossom and amber with undertones of cocoa, vanilla, citrus, and amber. This is a dupe for Carolina Herrera Good Girl (the perfume that comes in a bottle designed like a stilleto pump). I imagine this scent to be very popular in the Philippines because most of us are romantics and this is indeed a romantic scent. The vanilla undertone of this is just right and not too overwhelming.

The scent Power, a mix of fruity notes, spices, and a touch of vanilla and musk, is a dupe for Versace Eros. This men’s fragrance starts out fresh and turns creamy when it fades.

trees at SM malls across the country. With the bigger malls having their own thematic decorations, picture-taking with the spectacular installations as backdrop has become a Pinoy tradition in itself.

North Edsa welcomed the festive season when it transformed The Block Atrium into an Elfdale. Mall of Asia launched Paskong Pinoy! with playful installations of Filipino icons such as taho carts, lechon and kalesas at the mall’s Central Atrium. Megamall, meanwhile, has a Manila meets London scene with extravagant red ribbons and tuxedodonned teddy bears, and a grand 50-foot Christmas tree.

In the Visayas region, SM Seaside City Cebu has a Santa’s Cirque World.

With a 40-foot Christmas tree, the mall has attractions such as the Merry-Go-Magic, Mrs. Claus’ Spectacle Tent, The North Pole Flyer, and the Festive Ferris Wheel Delight. Bacolod has the Santa’s Elf Village, which was launched with performances by the CPAC Symphonic Orchestra and the De La Salle Chorale.

SM Lanang in Davao started the holiday festivities with Janine Myrtel Arisola and Timothy Paul Cabrera performing a Pas de Deux in front of the mall’s enchanting Christmas Forest.

SM Aura focused on Filipino craftsmanship through its Sinag at Saya showcase, which highlights local artistry with intricate ornaments and parols made from native materials.

For its part, the upscale The Podium unveiled its Holidays are in Bloom theme, decorating the premises in gold and ivory blooms, with tinges of lilac and soft rose. A dainty sight to behold!

was made for men. I like men’s fragrances so this is my second favorite of the four Alchemy scents. My favorite from the line is Harmony, a dupe for Le Labo’s famous Santal 33. It has notes of jasmine and sandalwood (a favorite from my childhood because we always had sandalwood soap at home) along with rose. This scent is very pleasant and comforting. I

nationwide at Watsons, SM Beauty stores and online, priced at an affordable ₱299 per bottle.  Enjoy the following when you visit special Alchemy pop-ups until January 5, 2025: n Get a free canvas bag for every purchase of 2 Alchemy bottles  n Free scent samples

Fossil Philippines Strategically Kicks

Off the Holidays with Style, Innovation

FOSSIL Philippines has officially ushered in the festive season with the launch of its Holiday 2024 Collection at SM Mall of Asia. Combining sleek designs with bold trends, the event showcased not just an array of elegant timepieces and accessories but also the debut of Fossil’s newest brand partner, FilipinoAmerican artistic gymnast Levi Jung-Ruivivar.

The strategic partnership with Jung-Ruivivar highlights Fossil’s focus on connecting with a younger, diverse demographic. Her inspiring journey, marked by resilience and creativity, aligns with the brand’s emphasis on individuality and achievement.

The Holiday 2024 Collection is designed to cater to the modern consumer’s desire for meaningful and functional gifts. Key pieces in the collection include the “Black & Gold Classics,” a bestselling range of watches that effortlessly elevate any look, from casual gatherings to formal occasions.

For those who value precision and performance, the Sport Tourer series offers high-functionality timepieces equipped with a Japanese center-second chronograph and tachymeter bezel. These versatile watches, available with silicone, leather, or bracelet straps, cater to active lifestyles without compromising on style.

On the accessories front, Fossil

introduces the Wildly Festive Accessories, featuring leopard print as a bold, trendy neutral. Bags like the Jessie and Lennox combine practicality with flair, appealing to consumers who want to make a statement this holiday season. By offering pieces that blend aesthetics with purpose, Fossil positions its Holiday 2024 Collection as an ideal choice for thoughtful gifting.

Fossil’s partnership with Levi JungRuivivar is a calculated move to connect with a younger, dynamic audience. JungRuivivar’s journey as an artistic gymnast has been nothing short of remarkable. Starting at just 18 months old, she has risen to the global stage, representing the Philippines at the 2024 Summer Olympics in Paris. Her story of perseverance—overcoming injuries and challenges—reflects the strength and determination Fossil aims to celebrate. Levi’s creativity and multidimensional personality further

enhance her appeal. Beyond gymnastics, she pursues pottery, writing, and science, embodying the kind of individuality that resonates with today’s consumers.

The decision to partner with JungRuivivar also underscores Fossil’s commitment to inclusivity and cultural representation. Her deep connection to her Filipino heritage and her global presence make her an ideal brand partner to bridge local pride with international aspirations.

The launch of the Holiday 2024 Collection is a testament to Fossil’s ability to innovate while staying true to its heritage. By combining iconic designs with contemporary trends, the brand strengthens its relevance in the Philippine market.

Jung-Ruivivar’s partnership adds a narrative layer to Fossil’s strategy, fostering emotional connections with its audience. Her story not only inspires but also aligns with the values of a new generation of consumers who prioritize authenticity and creativity.

As Fossil Philippines celebrates the holidays, it positions itself as more than just a retailer—it becomes a storyteller, delivering products that are both functional and meaningful. With the Holiday 2024 Collection, Fossil continues to bridge style and strategy, setting the stage for sustained growth in the region.

Treasure the season with joyous festivities, classic comforts at Richmonde Hotels

Tna bato (house of stone) of the Spanish era. Room-only rates start at just P3,800 while rooms with breakfast for two are from P4,800 for stays until January 5, 2025 (excluding December 24 and 31). Special holiday packages for December 24 and 31 that offer great deals are also available. Christmas Eve Packages start at P5,200 which comes with breakfast for two, and P7,800 which is inclusive of breakfast and a festive dinner buffet for two. For the New Year’s Eve Packages, rates start at P5,700 for room with breakfast, P7,200, for packages with breakfast and countdown party tickets, P8,000 for rooms with breakfast and dinner buffet inclusions, and P10,000, for an all-inclusive package of dinner and breakfast buffets, plus countdown party access for two. No-frills rates for Christmas Eve and New Year’s Eve may also be booked for as low as P4,200 and P4,700, respectively. Holiday bookers may avail themselves of perks such as a 15% discount on dine-in and room service orders, complimentary weekend treats like hot cocoa at the lobby and poolside refreshments, and access to the gym, heated indoor pool, and steam rooms. For the hotel’s Catholic guests, a mass is scheduled at the 3/F function room on December 25th and January 1st at 10:30AM. For more details and reservations, contact Richmonde Hotel Ortigas at (632) 8638 7777, (63) 917 859 7914, stay@ richmondeortigas.com, or www.richmondehotelortigas. com.ph. At Eastwood Richmonde Hotel, bask in the festive ambiance of Eastwood City’s vibrant holiday scene. Delight in “Yuletide Treasures” with exciting room offers for a staycation to remember with loved ones on December 24 and 31. Book the Christmas Eve Splendor Packages for as low as P9,000, inclusive of an upgraded breakfast buffet for two. A sparkling New Year’s Eve Stay-lebration Package starts at PhP 10,400, inclusive of brunch buffet for two. To rest and recuperate from the hustle and bustle of the season, have an extended holiday from January 1 to 31, 2025 for as low as P4,600 (room only) and P5,600 (with breakfast buffet for two). For inquiries and bookings, get in touch with Eastwood Richmonde Hotel at (632) 8570 7777, (63) 917 531 6867 or stay@eastwoodrichmonde.com, or visit www. eastwoodrichmondehotel.com.ph.

In Iloilo, make the most of the holiday in a city known for its rich heritage and culinary delights. Stay at Richmonde Hotel Iloilo, strategically located in the Iloilo Business Park near iconic landmarks and beside Festive Walk Mall and experience a wonderful home for the holidays until January 15, 2025 at breakfast inclusive rates starting at P5,500 and Christmas Eve and New Year’s Eve Packages for December 24 and 31 stays starting at P6,000 with breakfast for two and P9,200, inclusive of holiday dinner and breakfast buffets for two persons. For additional information and reservations, contact

Ortigas’ unique bahay-na-bato-inspired gingerbread house.

Richmonde Hotel Iloilo at (6333) 328 7888, (63) 917 580 9642, or stay@richmondeiloilo.com, or log on www. richmondehoteliloilo.com.ph. All room and package rates are inclusive of taxes, Wi-Fi access, and complimentary use of the gym and swimming pool. Christmas Feasts INDULGE in the rich flavors of the holidays at Richmonde Hotels, where festive dining meets the heartwarming tastes of Filipino flavors and traditions.

At Richmonde Hotel Ortigas, savor a delightful mix of classic holiday dishes, Filipino favorites, and international cuisine at the Christmas Eve Dinner Buffet on December 24 from 6 pm to 10 pm for only P1,880 per person. Start Christmas morning on a delectable note with the Christmas Day Breakfast Buffet, available from 6 am to 10 am for just P1,180.

Eastwood Richmonde Hotel takes holiday feasting to the next level at Eastwood Café+Bar with its Christmas Eve Dinner Buffet, featuring a sumptuous spread of holiday dishes paired with one round of iced tea, soda, Smirnoff Mule, or wine. This festive dining experience, priced at P1,999, is made even merrier with carolers and a raffle of hotel gift certificates. On Christmas morning, enjoy a hearty Christmas Day Breakfast Buffet from 6 am to 10 am for P1,399. Over at Richmonde Hotel Iloilo, The Granary offers a food lover’s haven with a blend of heritage recipes and contemporary flavors. Celebrate the holidays with a spectacular Christmas Eve Dinner Buffet and Christmas Day Dinner Buffet, each priced at P1,880 per person and served from 6 pm to 10 pm. All buffet rates are free for children five years old and below while children six to 12 years

at Richmonde Café from 6 pm to 10 pm, featuring an array of festive dishes for just P1,880. After dinner, join the

Year’s Eve Countdown Bash starting at 9 pm in the hotel lobby. Celebrate with a live band performance, a cocktail buffet, and three rounds of drinks,

including cocktails, beer, and sparkling wine for the midnight toast. Tickets are priced at P1,380 or enjoy the dinner and party bundle for only P2,780 per person. To inquire, reserve a table, or purchase tickets, contact Richmonde Hotel Ortigas at (63) 917 534 4352, email fbsup@ richmondeortigas.com, or message the hotel on Facebook or Instagram.

At Eastwood Richmonde Hotel, revel in a decadesspanning musical journey with its “Rockin’ Through the Decades” New Year’s Eve Countdown Party. Starting at 10 pm, this celebration features stand-up comedy by Choko Lava, interactive games, and live performance by MBound Symphony Band playing retro hits and modern chart-toppers. Guests can enjoy free-flowing beer, cocktails, non-alcoholic drinks, and a delectable cocktail buffet until the clock strikes 12 for P1,999 per ticket. Then start 2025 with a delicious New Year’s Day Brunch Buffet, served from 10 am to 2 pm for only P1,699. For inquiries, buffet reservations, and ticket purchases, contact Eastwood Richmonde Hotel at (63) 917 821 0333, email fb@eastwoodrichmonde.com, or reach out via the hotel’s official social media pages.

In Iloilo, the celebration begins with a delectable New Year’s Eve Dinner Buffet at The Granary, offering an impressive spread of international and local dishes for just P1,850. Continue the festivities under the stars at Zabana Bar’s New Year’s Eve Banchetto, featuring grilled specialties, pizzas, and flowing Zabana cocktails and mocktails for P1,150 per person. The poolside revelry begins at 9 pm, with live music by Vinyl Acoustic and DJ sets by Fat Boi DJs and DJ Enzo, capped with a countdown at midnight against the majestic view of fireworks around the city. On January 1, recover and recharge with a satisfying New Year’s Day Brunch Buffet at The Granary, served from 11 am to 2 pm for P1,500 nett. For more information and bookings, contact Richmonde Hotel Iloilo at (63) 917 563 3558, fbcaptain@richmondeiloilo. com, or message the hotel’s Facebook and Instagram accounts. For all New Year’s buffets and events of Richmonde, children six to 12 years old are at half price while those five years old and below eat for free. An enriching Yuletide season with cozy stays, unforgettable feasts, and joyful celebrations awaits at Richmonde Hotels. Reserve now and create holiday moments to cherish forever.

AVISO Valuation & Advisory, a leading real estate and business advisory firm in the Philippines, has officially entered into a Collaboration Agreement with Andersen Global. This collaboration marks a significant milestone for Aviso and demonstrates the firm’s commitment to providing comprehensive and integrated services in valuation, tax, legal, and business advisory to its clients on a global scale, leveraging the services provided by Andersen Global’s member firms and collaborating firms. Under this agreement, Aviso will serve as a collaborating firm of Andersen Global in the Philippines, delivering strategic valuation and advisory services to companies and investors operating in diverse industries including real estate, manufacturing, tourism, transportation, and infrastructure.

“Collaborating with Andersen Global allows us to expand the scope of our services, bringing world-class solutions to Filipino businesses and international clients looking to invest in the Philippines. We’re excited to be a part of the organization’s growing global platform, which will enhance our capability to deliver valuations that are compliant with both international financial and tax standards,” said Roque M. Sorioso, Jr., President and CEO of Aviso. Andersen Global is an international association of legally separate, independent member firms comprised of tax, legal, and valuation professionals around the world. Established in 2013 by U.S. member firm Andersen Tax LLC, Andersen Global now has more than 18,000 professionals worldwide and a presence in over 500 locations through its member firms and collaborating firms.

Through its member and collaborating firms, Andersen Global has one of the largest global footprints among multinational, multidisciplinary professional services firms.

Andersen’s global valuation team works with companies, funds, high-net-worth individuals, and family offices to provide valuations of businesses, tangible and intangible assets, and complex securities for tax, financial reporting, and transaction advisory purposes. Andersen clients span a range of industries with diverse valuation needs around the globe.

Aviso Valuation & Advisory, founded in 2013, has long been recognized as a trusted partner to top real estate developers, international agencies, and private corporations in the Philippines. As a collaborating firm of Andersen Global, Aviso is now poised to offer more robust services in response to the evolving business landscape, particularly in high-growth areas like renewable energy, real estate development, and finance. This collaboration also offers unique value to both local and international investors looking to navigate the complexities of the Philippine market.

“This synergy provides us access to the global organization’s extensive resources and multidisciplinary expertise through its member and collaborating firms, positioning us to

FOSSIL Philippines, new Brand Partner Levi Jung-Ruivivar (Middle) together with Jeff Moses (Left Side Photo), and Jenzel Angeles (Right Side Photo) at the the launch of Fossil’s Holiday 2024 Collection Launch.

Sports Tourer series

Wildly Festive Accessories

RICHMONDE

www.businessmirror.com.ph

The media person’s Christmas wish list, 2024 edition

ISTARTED this series in 2022, after seeing some of my journalist friends’ social media posts on what irked them about public relations (PR) practitioners. I was actually quite shocked by some of the answers I have gotten over the past two years, as I thought some of them were too basic—surely no PR professional would do that, right?

But it turns out that many of us do forget some of the more basic things that a PR professional worth their salt should know: things like knowing a reporter’s name or beat or publication, for example. So now I bring you this year’s Christmas wish list, as shared by some of my media friends from the Philippines and abroad.

the basics, please I CA n no T emphasize enough the importance of knowing someone’s name, especially when you are asking them to publish or air a story that you are pitching. This is basic etiquette— one that is not exclusive to the media-PR dynamic. After all, a person’s name is an integral part of their identity.

Philippine Daily Inquirer Lifestyle Reporter na stasha VerayoDe Villa has been dealing with her name being misspelled and mispronounced since forever. While she is gracious enough to not make too big a deal out of it, it becomes tiresome when PR people cannot get even her name right.

“My name isn’t extremely unusual, but it’s a less popular variation of a fairly known one so it gets endlessly mispronounced and misspelled. I’ve learned to live with it and have gotten good at just brushing it off if correcting feels too much of a hassle for someone I won’t be meeting again. I’ve also resorted to using a monosyllabic nickname

n Mober, bD o sign lanDM ark coMMercial e V fleet financing in the PhiliPPines, aDVancing green logistics MANILA, PHILIPPINES—In a landmark agreement marking a pivotal step for sustainability in the Philippines, Mober, the country’s pioneer in green logistics, has partnered with BDO Unibank, Inc. (BDO) to finance the acquisition of 60 new electric vehicle (EV) trucks. This historic deal brings Mober’s current fleet to 110 EV units, reinforcing its leadership in eco-friendly logistics and setting a new benchmark for the industry.

Mober has been at the forefront of driving sustainability in mid- and last-mile logistics. The company serves an impressive roster of blue-chip clients, including IKEA, Nestlé, Maersk, Monde Nissin, Starbucks, and Kuehne+Nagel, offering innovative solutions that align with its global netzero commitments.

I thought would make things easier for everyone—it did not,” she related.

“But PR requires knowing the media people they are hoping to work or are working with, and knowing a writer’s name should come with monitoring the publication. If they didn’t know the correct spelling of the name before, they should know it by the time the article comes out; it’s in the byline,” she added.

get the correct contact information

GETTI nG t he contact details of reporters and editors is one of the most important parts of a PR person’s job. An extensive and updated database can go a long way in making your job easier. For starters, you may read the publication or go on their website to get the email addresses of their key staff, or at least that of an inbox that can accept story pitches.

“It’s disheartening when they have to ask about names of our editors or our section’s email address. I understand that when you don’t know how to get in touch with someone, you have to ask anybody remotely related to them to get leads. But any of that information can be found in the newspaper, and it shows that they didn’t even bother to check or, worse, don’t even read the paper they want coverage from,” Verayo-De Villa said.

o n ce you get their email address, you may double-check it through the publication’s website “to avoid embarrassing mixups,” suggested Speed Editor-inChief Katrina Rivere-Diga. “I get [direct messages] or calls from PRs asking if I got the email they sent, and then when I ask them where they sent it, they give me

the wrong or old email address.”

The Freeman Business Reporter and President of the Cebu Economic Journalists Association Ehda Dagooc said one of the worst things that PR people can do is send press releases “addressed to media contacts from entirely different publications, highlighting a lack of attention to detail.”

know their beat and their media outfit

Wh E n y ou have a story pitch, you need to identify which particular media outlets are appropriate for your material, and which specific section or beat reporter you should be talking to.

According to Miya David, former BusinessWorld Senior Reporter and now Senior AI Reporter for VentureBeat in ne w York, her publication and her beat focus on very specific topics, in particular enterprise artificial intelligence (AI) and orchestration. Stories outside of these areas are better pitched elsewhere.

Rivere-Diga added: “Know the media outlet you’re pitching to. Sending irrelevant pitches or being overly pushy can damage relationships.”

Knowing what a publication covers and what beats its reporters are in can also help you avoid employing a “spray-and-pray” strategy: sending to everyone and praying that someone picks up your story.

“My wish is for the PR people to read the newspaper more. Study the medium, study the staff and the types of articles we write,” Verayo-De Villa said.

Provide well-written press releases

KnoW I nG t he type of articles

that a media entity publishes will allow you to craft angles that will appeal to their writers and editors. Write your copy well to increase the chances of getting your story picked up. Avoid sending out fluff pieces. Save those for advertorials.

“Try to avoid unnecessary rhetoric in your press releases. We’re all for showcasing your company’s achievements, but the story should always come first; don’t bury the lead under paragraphs of self-praise,” RivereDiga said. “And please, no more press releases using buzzwords like ‘elevate.’ We see them all the time, and they’re starting to lose their impact.”

And please keep writing like a human. With the increasing popularity and accessibility of AI tools, Dagooc observed that “most press releases today are AI-generated. PR agencies rarely bother to tweak these articles, resulting in stories with a robotic tone that lacks authenticity and engagement.”

build relationships

MoRE t han the good copy and the newsworthy campaigns, your relationship with the media will help secure your longevity in this profession. But the “relations” part of PR seem to be less of a priority now for some people in the industry.

“What’s alarming for the industry today is that many agencies are deploying people without proper training or even a basic understanding of public relations. Most of them don’t take the time to build relationships with the media professionals they frequently ask for favors from, such as publishing or rewriting their press releases. It’s PR without relationships,”

Dagooc related.

o n t he other side of coin, Rivere-Diga said there were still those who truly knew what they were doing, and for those PR professionals, she is grateful.

“I’m thankful for PR agencies [and] media practitioners who craft compelling pitches and are able to do so while keeping it concise and clear. I also love those who take the time to not only monitor media coverage but also send a quick note of thanks for publishing their stories. And, of course, I’m grateful for those who respect our deadlines, provide accurate and timely information, and strike that perfect balance of being friendly while staying professional,” she said.

Dagooc added: “This Christmas, aside from wishing people to be kinder and more compassionate, I hope the PR industry as a whole will strive to maintain professionalism in its dealings with media professionals”

PR Matters is a roundtable column by members of the local chapter of the United Kingdom-based International Public Relations Association (Ipra), the world’s premier organization for PR professionals around the world. Abigail L. Ho-Torres is the Chief Marketing Officer of Ikigai Philippines and an independent consultant and trainer, with more than two decades of experience in media, public relations, marketing, and customer experience.

We are devoting a special column each month to answer our readers’ questions about public relations. Please send your questions or comments to askipraphil@ gmail.com.

“This is a historic milestone not just for Mober but for the entire logistics industry in the Philippines,” said Dennis Ng, CEO of Mober. “With the addition of these 60 EV trucks, our fleet now stands at 110 units, bringing us closer to our goal of 240 units by the end of the first quarter of 2025. Supported by our proprietary Battery Management System (BMS) and Transport Management System (TMS), we’re ensuring not only sustainability but also efficiency and reliability for our clients.”

Aside from expanding its fleet, Mober is also setting the precedent for innovation in the commercial EV space in the country. Its state-of-the-art Battery Management System (BMS) offers real-time monitoring of battery health and performance, enabling predictive maintenance and extending the lifespan of its fleet. Its proprietary Transport Management System (TMS) optimizes delivery routes, reducing energy consumption and emissions while ensuring operational excellence for its clients.

BDO, the largest bank in the Philippines, sees the partnership as a testament to its growing commitment to green financing and sustainable business practices. “We remain committed to supporting ecofriendly initiatives and innovative busi -

nesses that nurture the environment and present opportunities for economic growth. This partnership with Mober reinforces our shared commitment towards a greener, more sustainable future,” says Executive Vice President and Head of BDO Unibank’s Institutional Banking Group, Charles M. Rodriguez.

The partnership with BDO is the latest in Mober’s recent success in securing investments. Last year, Mober secured a $6 million blended investment from the Southeast Asia Clean Energy Facility II (SEACEF II), managed by Singapore-based fund manager Clime Capital. SEACEF II focuses on supporting businesses that accelerate the region’s transition to clean energy and low-carbon solutions. Through its partnerships with BDO and Clime Capital, Mober is leading the way in sustainable logistics in the Philippines.

Rachel Santiago-Sacro, Clime Capital Philippines Country Manager, expressed her support, saying, “The Philippines is one of the world’s most vulnerable countries to the adverse impacts of climate change. By supporting clean-energy pioneers like Mober, we make a meaningful contribution toward rapid decarbonization in Southeast Asia –helping to meet countries’ net-zero targets.”

The addition of the new EV trucks comes timely as Mober is set to open its new charging hub in Pasay City by end-January 2025, set to be SEA’s largest logistics-focused EV charging facility.

For more information about how Mober is leading the charge toward a cleaner, more sustainable future for the Philippines by visiting https://www.moberdelivery.com.

n Disney Debuts heartwar Ming holiDay short in collaboration with taika waititi BURBANK, USA—Disney is using the power of its timeless original storytelling to inspire joy and wonder this holiday season, with an all-new short in collaboration with Academy Award® winner Taika Waititi on YouTube.

“For generations, Disney has been an ever-present part of the holiday season all over the world, and this short builds on the enduring connection that so many families have with Disney during this special time of year,” said Asad Ayaz, Chief Brand Officer, The Walt Disney Company. “We’re thrilled to collaborate with Taika Waititi on this timeless story of childhood friendship against the backdrop of this magical season.”

A Disney Holiday Short: The Boy & The Octopus follows the journey of a child who discovers a curious octopus has attached to his head during a seaside vacation. After returning home, the boy forms a true friendship with the octopus by introducing his new companion to his life on land—harnessing the power of the Force with his Jedi lightsaber, playing with his Buzz Lightyear action figure, and imagining Santa Claus’ route around the world with the map on his wall—before taking the lovable octopus out into the world to experience the joy of the holidays, hidden under his Mickey Mouse beanie. While watching the Disney holiday classic, The Santa Clause (1994), the boy comes to understand the extent of the octopus’ desire to explore everything the world has to offer, and he sets in motion a plan to make it happen. For the boy and the octopus, it is the precious everyday moments of childhood and friendship, as much as the magic of the season, that make their time together so meaningful. Disney fans will love finding even more hidden easter eggs throughout the holiday short including from beloved films like Moana (2016), Lilo and Stitch (2002), and Toy Story (1995), among others.

“The story manages to connect the

feelings that you get around the holidays, and the joy, the goodwill and everything, with those same emotions and those same sensibilities you get from Disney films,” said Taika Waititi. “I think they go hand in hand and it’s the perfect match—and only Disney could have made something like this…with me.”

A Disney Holiday Short: The Boy and The Octopus is the latest creative collaboration between Waititi and The Walt Disney Company. The acclaimed filmmaker is the director of Marvel Studios’ Thor: Ragnarok (2017) and Thor: Love and Thunder (2022), Searchlight Pictures’ Jojo Rabbit (2019) and Next Goal Wins (2023), as well as executive producer of Hulu’s Reservation Dogs, What We Do in the Shadows, and the forthcoming limited series, Interior Chinatown. The short was created in conjunction with global creative agency adam&eveDDB and produced by Hungry Man. A melodic rendition of “Part of Your World” from the Disney classic The Little Mermaid (1989) can be heard throughout the short, highlighting the octopus’ desire to explore the world above. This beautiful take on the fan-favorite song was recorded live by

ehDa Dagooc katrina riVere-Diga Miya DaViD nastasha Verayo-De Villa

Tiger, son Charlie share lead at PNC Championship

ORLANDO, Florida—Tiger Woods and 15-year-old son Charlie ran off five straight birdies on the back nine Saturday for a 13-under 59 in the scramble format, giving them a share of the lead in the PNC Championship in Woods’ first competition since back surgery in September.

Woods said he scheduled that surgery—the sixth on his lower back in the last 10 years—to be sure he recovered in time to play with his son for the fifth straight year.

This is the first time they have shared the lead after the opening round, joined by the last two champions— Bernhard Langer and son Jason, and Vijay Singh and son Qass.

Woods hit an array of good shots, including a wedge to inches on the short par-4 seventh, but otherwise downplayed his game by suggesting he still had a lot of rust.

This was more about spending 36 holes on a brisk day at the

Gargantuan collapse, enormous comeback

THE Games and Amusements Board clamps down on John Amores by revoking his professional athlete’s license.

By Tim Reynolds The Associated Press

ALEAD of at least 22 points with 12 minutes left means victory in the National Basketball Association (NBA).

O ver the last five years, including playoffs, there had been 796 instances of a team having such a lead entering the fourth quarter.

Their record: 796-0. Their record now: 796-1.

T he Orlando Magic pulled off a rally they’ll surely remember, and the Miami Heat had a collapse they surely won’t soon forget.

The Magic outscored the Heat, 378, in the fourth quarter to pull off an improbable 121-114 victory on Saturday night, winning a game in which they trailed by 25 in the first half and were down 22 with one quarter remaining.

You can’t really explain that,”

Vargas: Without GAB license, John Amores

can’t

play in PBA

and 1.6 rebounds.

TBy Josef Ramos

HE Philippine Basketball Association (PBA) will stringently apply its rule as provided under Games and Amusements Board (GAB) regulations, league chairman Ricky Vargas said on Sunday.

“If [he has] no license, he cannot play,” said Vargas, TNT Tropang Giga’s representative the PBA board said, referring to NorthPort’s John Amores whose license was revoked by GAB as the Batang Pier is on trial for a shooting incident in Lumban, Laguna, last September.

T he GAB is the government agency that regulates professional sports and requires all professional Filipino athletes—from basketball to volleyball players, boxers, mixed martial artists to chess players and cyclists as well as cockfighting enthusiasts, among others—to secure a license to ply their trade.

The PBA has, ever since its establishment in 1975, has been adhering to GAB rules.

“But it is not too late for him,” Vargas said. “He must change his behavior then maybe he can appeal to the GAB to reinstate his license.”

Amores has been marked as a recidivist unruly basketball player since his college days and was banned for single-handedly instigating on-court brawls while playing for Jose Rizal University in the National Collegiate Athletic Association.

But his unruly behavior wasn’t carried over to the PBA and joined the rookie draft last year and was picked at No. 51 by NorthPort.

H e played 10 games with the Batang Pier and averaged 5.1 points

Amores told BusinessMirror on Sunday that he’s not been officially informed about the revocation of his GAB license although online media outlets already carried the story over the weekend.

“I don’t have any idea about GAB’s decision,” he said. “My priority is to change myself and continuously attend my counseling activities.”

The 25-year-old guard-forward said he’s been seeing two religious pastors as part of the counseling program he had to go through for him to have his one-conference—Commissioner’s Cup— suspension in the PBA lifted. GAB chairman Francisco Rivera and ommissioners Manuel Plaza III and Angel Bautista announced the revocation of Amores’s license for “conduct of unbecoming of a professional player” and meted the severe penalty of revocation of his license.

“The respondent’s license is revoked effective immediately. Accordingly, the respondent is no longer allowed to participate in any professional basketball game sanctioned by the board,” said the GAB in its six-page decision on Amores.

A s the GAB barred him from playing in the PBA, Amores’s case continues to be heard at the Municipal Circuit Trial Court in Lumban.

“I just let my lawyer decide whether we appeal the decision or not,” Amores said. “But of course, I want to continue playing in the PBA.”

NorthPort officials didn’t comment on the issue.

Amores—with his brother John Red as accomplice—are facing charges of attempted homicide by Lee Calcada after an altercation following a basketball game in Lumban last September 25.

Magic coach Jamahl Mosley said. “That’s something I haven’t seen. I have not seen that ever in my years in the league, the ability to stay with it despite all of the circumstances that started in the beginning of the game.”

Heat captain Bam Adebayo was more succinct.

We relaxed because we were up,” Adebayo said. “I feel like that’s the karma of the game.”

The Magic were playing without Paolo Banchero, Franz Wagner, Jalen Suggs and Gary Harris—and lost Moritz Wagner to what may be a serious knee injury in the first quarter.

Depleted, they somehow still tied the biggest comeback in franchise history.

“This is the modern NBA right now, right? The 20-point lead is not what it was a decade ago and you have to finish all the way through,” Heat coach Erik Spoelstra said.

S ome of the numbers were just baffling:

n Orlando’s 29-point margin in the fourth quarter was the biggest in any game since Phoenix outscored New Orleans by 29 on February 19, 2021.

n Miami’s eight points in the fourth quarter were the fewest by any team in any quarter this season.

n The last time Orlando trailed by 25 in a game and won was 1989.

“It’s a group that just continues to fight,” Mosley said.

Ritz-Carlton Club Orlando with his son, a sophomore at Benjamin School in North Palm Beach.

His d aughter, Sam, caddied for her father for the second straight year.

Their mother, Elin, was among those in the gallery in a tournament that is all about family.

“ We’re trying to pull off each and every shot for each other, and to hamand-egg,” Woods said. “And I think we did that great pretty much the entire day. We picked each other up, which was great. And Charlie made pretty much most of the putts today.”

It helped playing in the same group with former British Open champion Justin Leonard and his son, Luke, a senior and teammate with Charlie at Benjamin School. L anger extended his

consecutive season. He and his son made eight birdies in a nine-hole stretch in the middle of the round, and they had an eagle on the 14th hole. Singh and his son, who won this event in 2022, shot 28 on the back nine.

“There’s so many teams in the hunt,” Langer said. “It’s anybody’s game that is within three or four shots of the leaders, which is most of the field.”

Padraig Harrington and son Paddy, and Tom Lehman and son Sean, were at 12-under 60. The Lehmans looked to be leading when they were around the green on the par-five 18th,

T he last time a team trailed by 22 or more entering the fourth quarter and won was December 22, 2019, when the Toronto Raptors—down by 30 at one point, down by 23 with 12 minutes left—beat the Dallas Mavericks 110-107.

I t was statistically bizarre. The Heat had their best-scoring quarter of the season (40 in the first), bestscoring half of the season (76 in the first), worst-scoring quarter of the season (8 in the fourth) and worstscoring half of the season (38 in the

ARK “MAGNIFICO”

MMAGSAYO’S technical knockout victory over Ecuador’s Bryan Mercado last week in Long Beach potentially pushed the pride of Tagbiliran City two fights from a world title fight against reigning World Boxing Council (WBC) super featherweight champion O’Shaquie Foster of the US next year.

International matchmaker Sean Gibbons told BusinessMirror on Sunday that Magsayo needs to hurdle two more high-level bouts for him to challenge Foster. Those two fights should include

Magsayo: Two victories away from world title

a title eliminator match against Mexico’s Eduardo “Rocky” Hernandez, according to Gibbons.

“Mark should be fighting in February where we exect the WBC to order a final eliminator between Rocky Hernandez and Magsayo,” Gibbons said.

Magsayo once reigned supreme as a featherweight (126 pounds) but had to move up to super featherweight (130 lbs) on the advice of Gibbons and his team after losing consecutive title fights.

The 29-year-old Magsayo looked comfortable at super featherweight as evidenced by his second-round TKO win over Mercado the other Sunday in

California to improve to 27-2 won-lost with 18 knockouts.

Gib bons expects Hernandez as a strong test for Magsayo as he carves a path to a world title showdown with Foster—provided he keeps on winning.

The 27-year-old Hernandez will face Rene Giron at home in Oaxaca with Magsayo fighting in the same card.

I f both fighters win, they take on each other in a title eliminator to determine who challenges for Foster’s title.

All I do is train every day. I hope next year is going to be my year,”

a 6-4, 6-4 victory over John Benedict Aguilar at the City of Naga courts in Cebu over the weekend.

Unlike in their previous Open final encounter where Olivarez cruised past Aguilar, 6-4, 6-1, the championship proved to be a sterner test for the 26-year-old champion.

O livarez rallied from a 1-2 deficit in the second frame to claim the straight-set victory—he seized control early in the match, breaking Aguilar in the third game of the opening set.

He strung together four consecutive points from a 0-15 deficit before battling his younger opponent in a tense hold-hold sequence to close out the set.

The second set was more tightly contested, with both players trading breaks in the opening two games and holding serves in the next two.

But Olivarez showed his mettle in the fifth game, clawing back from a 30-40 count to claim the lead by winning the final three points. He never relinquished control, securing the match with a shutout service game in the 10th.

O livarez ousted Joven with a dominant 6-2, 6-2 victory, while Aguilar stunned Arcilla

12thround TKO to Foster (23-3 with 12 knockouts) in their first meeting in October 2023 in Cancun.

Magsayo debuted at 130 lbs last June in Las Vegas where he beat American Eduardo Ramirez via unanimous decision to bag the World Boxing Association intercontinental super featherweight

in a 6-3, 6-2 upset earlier in the week-long tournament presented by Dunlop.

T he Western Michigan U graduate also won an open championship last August where he snapped the long-standing

Magsayo told BusinessMirror on Sunday. “I will be fighting Hernandez and I hope to challenge Foster for the title. It’s a tough quest, but I will be ready.” Hernandez is 36-2 with 32 knockouts but lost via

ERIC JED OLIVAREZ with JB Aguilar (left) and Jose Canete, executive assistant for the City of Naga courts.

Magic’s Cole Anthony

the basket against the Heat’s Bam Adebayo in the second half of their National Basketball Association game on Saturday in Orlando. AP