AMERICAN energy companies are expressing renewed interest in oil and gas exploration in the Philippines, with plans to focus on “ultra-deep” areas within the country’s archipelago.
Department of Energy Secretary Raphael P.M. Lotilla said beyond Malampaya, the country is “looking at areas within the archipelago.”
“Even American companies have been interested in exploring areas which are ultra deep within the archipelago. And we will see how that proceeds because they, the American companies, have assured us that their interest is driven by economics
and not by changes in political administration,” he said in a television interview with Bloomberg.
US President-elect Donald Trump is set to be inaugurated on January 20, US time.
While Lotilla refrained from naming the firms involved, citing confidentiality agreements, he described some of them as established players potentially “returning to the region.”
He noted that the interest from US firms aligns with ongoing exploration near the Malampaya gas field, the country’s only operational natural gas project. Drilling in nearby fields is expected to commence by the end of 2025, with
additional production projected to flow by 2026 or 2027.
While Lotilla cautioned that new discoveries may not match Malampaya’s peak output—which once supported 3,200 megawatts of power generation—he emphasized the importance of these efforts in bolstering energy security.
He noted that the country is intensifying the diversification of its energy mix to drive security while reducing prices. The Philippines, he said, depends 60 percent of its power from coal, whose supply is 80-percent imported. The same is true for petroleum, which is “almost 100-percent imported.”
“So, this huge dependency on
imported energy sources cannot remain forever and as the economy grows, we have to be more selfreliant and contribute as well to a sustainable future for the entire planet,” he said.
Hence, the country is ramping up renewable energy and exploring alternative sources such as hydrogen and nuclear power.
“We are in the process of awarding two service contracts for native or naturally occurring hydrogen in the Philippines,” Lotilla said. “We hope that these will be successful in subsequent years and we will be able to utilize naturally occurring hydrogen instead of having to produce this by ourselves.”
‘FOCUS ON IMPROVING TRADE TIES WITH CHINA’
By Andrea E. San Juan
DESPITE its ballooning trade deficit with China, the Philippines should just focus on improving its trade relationship with the economic powerhouse, as it is the lone source of cheap goods in the world, according to the Philippine Exporters Confederation Inc. (Philexport).
By Samuel P. Medenilla @sam_medenilla
PRESIDENT Ferdinand Marcos said the opening of the Tesla Center Philippines (TCP) in Taguig City will help the country maintain its momentum in mainstreaming the use of electric vehicles and also upskilling the country’s workforce.
“Tesla’s entry into the Philippine [market] signals much more than high-tech cars on the road. It is a
step—a very significant step forward to our longterm transformation towards a more environmentfriendly transportation system,” the chief executive said in his speech at the launch of the new facility on Monday. Under its Comprehensive Roadmap for the Electric Vehicle Industry, the government aims to achieve a 50-percent electric vehicles market share in the Philippines by 2040.
RBy Ada Pelonia @adapelonia
ESTORING the P10 billion budget for the rice program could help set a new record palay output in 2025, according to the Department of Agriculture (DA).
Agriculture Secretary Francisco Tiu Laurel Jr. said President Ferdinand Marcos Jr.’s directive to restore the P10-billion in budget cuts for the National Rice Program (NRP) would allow the agency to implement measures that would hit its palay production target of 20.46 million metric tons (MMT) this year.
“We’re now hopeful we could do
better than 2023,” Laurel said in a statement, referring to the recordhigh 20.06 MMT of palay produced that year.
The country’s palay production last year was beset with challenges as the combination of dry spell from El Niño and flooding during La Niña ravaged rice plantations. This prompted the agency to lower its palay output forecast in 2024 to 19.3 MMT.
DA Assistant Secretary Arnel de Mesa noted that the NRP’s budget might have been slashed due to the amended Rice Tariffication Law (RTL) which tripled the annual allocation for Rice Competitiveness
New palay output record seen if P10-B fund restored
Enhancement Fund (RCEF).
“The budget might have been cut because a lot was already given to RCEF from P10 billion to P30 billion,” De Mesa told reporters in Filipino during a briefing on Monday.
He said the NRP’s budget under the 2025 General Appropriations Act (GAA) currently stands at P21 billion. If the budget restoration is realized, the program’s coffers could settle at P31 billion.
Meanwhile, Laurel also stressed that the National Food Authority (NFA) would continue its rice procurement program.
“This program allowed the NFA to fully stock its warehouses for the first time in years, which is a key development for the country’s rice security,” the DA said.
Earlier, he reported that the NFA purchased palay equivalent to 300,000 metric tons (MT) of rice, which the agency said “helped stabilize rice supply despite challenges in local production.”
“This year, NFA will buy a minimum of 300,000 metric tons,” Laurel said.
The amended RTL raised the grain agency’s rice buffer stock to cover 15 days of national consumption from the previous nine days.
Big price hikes slated for gas, diesel, kerosene again
By Lorenz S. Marasigan
FILIPINO
motorists are gearing up for another wave of fuel price increases as oil companies announce significant adjustments set to take effect today, Tuesday.
Oil companies Seaoil, Caltex, Petro Gazz, and PTT announced on Monday uniform increases in the prices of gasoline, diesel, and Kerosene effective this morning.
Focus…
Continued from A1
As to the Philippines’s outbound shipments to China, the head of the country’s umbrella organization of exporters pointed out that it declined due to issues on agricultural production in the Philippines.
“Our agricultural production—they posed a problem there, that’s why our banana [exports declined]...they start-
Gasoline prices will rise by P1.65 per liter; diesel by P2.70 per liter; and kerosene by P2.50 per liter.
These price hikes follow the second adjustment of the year on Janu-
ed buying from others, substituting ours so our exports to them declined,” Ortiz-Luis recalled.
Philippine exports of metals to China also declined, he added.
“In the meantime, we don’t have a substitute for what we import from them; they’re really just our only source. There’s no one that can compete with them right now; the US itself cannot help but import from them, what more the Philippines?” Ortiz-Luis pointed out.
ary 14, where gasoline and kerosene rose by P0.80 per liter and diesel by P0.90 per liter, bringing their total net increases for 2025 to P1.80 per liter for gasoline and kerosene and P2.30 per liter for diesel.
The Department of Energy (DOE) attributes the continued increases to a mix of global and regional factors. The price of Dubai crude, a benchmark for local oil, rose by $1.23 per barrel last week. International prices for refined products have also surged, with gasoline climbing by $0.85 per barrel, diesel by $0.98 per barrel, and kerosene by $1.41 per barrel.
“We just have to improve our relationship with China, wala tayong strategy na magagawa diyan [we don’t have a strategy to go around that],” the Philexport chief added.
Trade gap grows 29.6%
THE Philippines’s trade deficit with China ballooned to $19.45 billion in the January to October 2024 period, up 29.58 percent from the $15.01-billion trade deficit in the 10-month period in 2023.
Data from the Philippine Statistics Authority (PSA) showed that Philippine merchandise exports to China amounted to $7.92 billion in the 10-month period in 2024. This is 15.64 percent lower from the $9.39-billion export earnings in the same period in 2023.
In contrast, goods sourced by the Philippines from China in the 10-month period in 2024 amounted to $27.37 billion, a 12.20-percent increase from the $24.40 billion in the January to October 2023 period.
A trade deficit occurs when a country imports more goods than it exports.
Data obtained by this paper from the PSA and processed by the Department of Trade and Industry-Export Marketing Bureau (DTI-EMB) showed some of the country’s top exports to China posted double-digit de -
Global market conditions have been heavily influenced by colderthan-usual weather across the northern hemisphere, US sanctions on Russia, the declining stockpiles in Oklahoma, and the weaker-thanexpected economic data from China.
Domestically, the effects of these global shifts are exacerbated by a depreciating peso, which averaged P58.32 to the US dollar last week, compared to P58.03 in the previous week. The currency depreciation has further increased import costs for oil companies, adding to the burden on consumers.
clines in the 10-month period in 2024.
For one, Philippine shipment of bananas to China saw a 37.59-percent decline in the January to October 2024 period as the country only earned $186.72 million from its banana exports, compared to the $299.16 million in the 10-month period in 2023.
Metals, too MOREOVER , Philippines exports of refined copper to China declined by 57.93 percent as exporters of the processed metal only earned $312.10 million in the 10-month period in 2024—compared to the $741.86-million export earnings in the same period in 2023.
Last week, global news reports noted that China posted a record trade surplus of nearly $1 trillion, with its outbound shipments swamping global trade last year.
With this, a Filipino economist noted that countries such as the Philippines that rely on the economic powerhouse are pressed to improve their domestic structures and “internal efficiency.”
(See: https://businessmirror. com.ph/2025/01/15/1-trillionchina-trade-data-sparks-reforms-call/) China is the Philippines’ top source of goods. In contrast, it is the Philippines’s third top export destination.
on the proposed version of the 2025 GAA was filled up.
the President. Once signed, the GAB becomes the Law—the GAA,” the DBM explained.
Former Finance Undersecretary Cielo Magno said the Bicam report is supposed to reconcile the differences in the House and Senate versions and produce the final version of the bill for approval of the House and the Senate.
“If the House and the Senate approved the bill that is based on the Bicam report, then Congress approved an incomplete bill, which the President cannot validly sign,” Magno said in a Viber message.
When asked who filled the blank pages with the amounts, Budget Undersecretary Goddes Hope Libiran said it was Congress who could respond to the question.
“Usually, the Bicam Committee leaves certain items blank in their report when they refer to sections of the GAB that they do not intend to alter or amend,” Libiran said in a Viber message.
Legal opinion
DURING the weekend, Duterte and Davao City 3rd District Rep. Isidro T. Ungab appeared in a podcast posted in the social media page of Davao City Mayor Sebastian Z. Duterte, the son of the former president, where they raised concerns on how the budget allocations in the Joint Bicameral Committee of Congress
‘Tesla PHL entry to spur EV use, upskill labor’
The 1,900-square-meter TCP has a showroom, service center, delivery center, charging station and serve’s as Tesla Motors Philippines Inc. (Tesla Philippines) main office in the country.
Tesla Philippines is a subsidiary of Elon Musk’s Tesla Inc., an multinational electric vehicle (EV) manufacturer and clean energy firm based in the United States.
Pro-EV policies
MARCOS attributed Tesla’s decision to open its operations in the Philippines to the government’s pro-EV policies.
Among the said policies, he said, is the Tax Reform for Acceleration and Inclusion (TRAIN) Act, which removed the excise taxes on electric batteries for EVs; the Electric Vehicle Industry Development Act (Evida), which offers duty-free importation for charging stations, lower user fees for EV owners, and prioritized registration and traffic privileges; and Executive Order No. 62, which reduced the tariff levels on four-wheel and motorcycle EVs, whether pure electric or hybrid, to zero until 2028.
“Tesla’s decision to invest in the Philippines is a recognition of our nation’s potential, underpinned by forward-thinking policies and a collective determination to innovate,” Marcos said. Tesla Regional Director Isabel Fan announced plans to turn Metro Manila into a beacon city for the EV adoption in the Philippines by building the necessary infrastructure, particularly charging stations within the metropolis.
“We have opened the first super charging station right across here in the Uptown Mall,” Fan said.
“I have planned six more charging stations across Metro Manila in the coming month or two. And in the near future we will build charging stations across the country. We build around people’s lifestyle, where they eat, sleep, work and spend their time with their families,” she added.
Among those with supposed blank allocations in the bicameral report were on Department of Agriculture’s (DA) small-scale irrigation projects and post-harvest and facilities.
In the copy of the 2025 GAA posted in DBM’s website, smallscale irrigation projects were given a P1,026,404,000 budget, while postharvest facilities were allocated a P314,757,000 funding.
Duterte said those who filled-up the blanks allocation can face criminal liability if they placed figures in the 2025 GAA, which were not approved by the House of Representatives and the Senate. If such a discrepancy occurred, he said it will also invalidate the national budget this year.
Salvador S. Panelo, the former spokesperson and chief legal counsel of Duterte, said the statement of Malacañang on the matter was based on the wrong assumption that the former president alleged that there were proven irregularity in the 2025 GAA.
“FPRRD is expressing a legal opinion on the assumption that Ungab’s charges are true and if the GAB [General Appropriations Bill] as signed by PBBM contains the same irregularities,” Panelo said in a statement.
“FPRRD did not allege any blank item or one that has no particular program. He was merely expressing a legal opinion on the assumption that what Cong Ungab was saying is true,” he added.
Future prospects
MARCOS said the infrastructure investment from Tesla will not only be beneficial for the environment by helping reduce the number of vehicles with internal combustion engines, but also empower Filipino workers.
“Every hire represents an investment in Filipino talent that will drive this transition forward. With plans to expand further, Tesla is building a generation of Filipinos equipped to lead in the global shift towards sustainable technologies such as this,” he said.
The President hopes Tesla and other EV firms will consider opening manufacturing plants in the country as it starts producing phosphate batteries, which are an essential component for EVs.
Marcos led the inauguration of the St. Battalion (StB) Giga Factory in Tarlac last year. This is expected to initially produce batteries with 300 megawatt-hours (MWh) capacity annually once it becomes operational.
“With a more conducive and empowering environment now taking shape for the EV industry, I am very optimistic that more companies will seize the opportunity to drive this very vital sector in the coming years,” Marcos said.
www.businessmirror.com.ph
‘Monster ship’ out but replacement still bigger than any PCG vessel
By Rex Anthony Naval
HINA Coast Guard (CCG)
Cvessel 5901 or the “monster ship” that has been illegally operating off the Zambales coast was replaced by another Chinese ship with bow number 3304, Sunday afternoon.
However, CCG ship 3304 is still bigger than the biggest Philippine Coast Guard vessel. This was observed by the PCG’s BRP Gabriela Silang (OPV-8301) as it continues to monitor the illegal presence of Chinese ships on Philippine waters.
Drunken drivers worry legislator
By Jovee Marie N. dela Cruz @joveemarie
ITH the increasing number of vehicu-
Wlar accidents involving drunken drivers, a lawmaker is pushing for stricter enforcement of road safety rules, particularly those penalizing driving under the influence (DUI) of alcohol.
Camarines Sur Rep. Luis Raymund Villafuerte expressed hope that the Congress would consider passing House Bill 7968, which he filed to amend Republic Act 10586, also known as the “Anti-Drunk and Drugged Driving Act of 2013.” This measure mandates the deputation of law enforcement officers from various agencies to conduct roadside operations and accost traffic violators.
“In today’s [Sunday] monitoring activities, BRP Gabriela Silang observed the relief and assumption of two CCG vessels. At approximately 3:00 p.m., CCG-5901 moved further away from the PCG vessel, while another vessel, CCG 3304, approached the coast of Zambales. As of 9:00 p.m., CCG 5901 was monitored at an approximate distance of 95 nautical miles from the coast of Zambales, with CCG 3304 at 65 nautical miles,” it added.
long and is three times the size of the United States Coast Guard’s National Security Cutters. The ship is even bigger than some US Navy destroyers.
CCG 5901, known as the “monster ship” owing to its 12,000 gross tons displacement, is 164.89 meter
standards as set by RA 10586.
Department of Health (DOH) records indicate that the total number of road accidents rose by a third to 703 over the 15-day period from December 22, 2024 to January 6 this year, of which 127 of the accident victims were classified as DUI. Also, data from the Department of Transportation (DOTr) indicates that approximately 11,000 road crashes occur annually owing to drunken driving, overspeeding, texting while driving, and other human errors.
Villafuerte, who authored HB 7968 with Bicol Saro Rep. Brian Raymund Yamsuan, said the congressional approval of this proposed amendatory law will support the State’s task to ensure road safety through the observance of the citizenry of responsible and ethical driving
Villafuerte recalled that the Metro Manila Development Authority last year decided to tap local government traffic enforcers on a provisional basis after the Supreme Court (SC) ruled that the MMDA had supervision over traffic regulations in the National Capital Region (NCR).
Under the bill, the LTO would be empowered to deputize traffic enforcement officers from the National Police (PNP), the Metropolitan Manila Development Authority (MMDA), and city and municipal governments. These agencies are required to submit annual lists of law enforcement officers eligible for deputation.
To further ensure the effectiveness of RA 10586, the bill mandates the LTO to conduct regular random terminal inspections and quick random drug tests for public utility drivers.
The bill also requires the Philippine Information Agency (PIA) to conduct a nationwide information, education, and communication (IEC) campaign on road safety. This initiative, in coordination with the LTO, local governments and other agencies, aims to promote public awareness about responsible driving and the penalties for violating RA 10586.
In addition, HB 7968 seeks to integrate road safety and drivers’ education into the K-to-12 curriculum to instill awareness of
The PCG also added that the crew of BRP Gabriela Silang has been conducting hourly radio challenges to remind the Chinese crew that their operations within the Philippines’ exclusive economic zone “breaches the United Nations Convention on the Law of the Sea (Unclos), to which they are a signatory, and blatantly violate the 2016 Arbitral Award that nullified their nine-dash line claim.”
the dangers of drunk and drugged driving from an early age.
Addressing concerns raised by the MMDA regarding the need for more traffic enforcers, Villafuerte noted that the deputization of local LGU traffic enforcers was provisionally implemented following a Supreme Court ruling confirming the MMDA’s authority over traffic regulations in Metro Manila.
Under the current RA 10586, penalties for drivers caught violating the law include fines ranging from P20,000 to P500,000 and jail terms of three months to 20 years, depending on the severity of the violation. HB 7968 seeks to bolster enforcement mechanisms and expand accountability to include vehicle operators in ensuring compliance.
Villafuerte emphasized that by strengthening enforcement capabilities and promoting awareness through education and communication campaigns, the proposed amendments to RA 10586 could significantly reduce the prevalence of road crashes and save lives.
“Although the ‘monster ship’ has departed, it is important to note that CCG 3304, its replacement, remains larger than the largest PCG vessel.
CCG 3304 measures 111 meters in length and 46 meters in width. Despite this, the 83 meter BRP Gabriela Silang continues to diligently fulfill its patriotic mission of challenging the unlawful presence of the CCG,” it stressed.
The PCG also added that it is committed to upholding international law and safeguarding the security of our maritime jurisdiction.
Marcos open to Marbil’s tour of duty extension
PRESIDENT Marcos said he is open to extending the term of the Philippine National Police (PNP) chief, Gen. Rommel D. Marbil until after the May elections.
In an interview with Malacañang reporters in Taguig City on Monday, the President said he is considering Marbil’s extension of service to prevent a possible disruption in election preparations of the PNP.
Marbil is set to retire on February 7, upon reaching the mandatory retirement age of 56.
“Well, there has... there is a very strong argument that it would be...it would not be good for stability especially to change the chief PNP in the middle of a campaign period and then approaching an election period,” Marcos said.
“So, we are carefully studying it. But I think that is probably a very strong argument to keep him on, at the very least, until after the elections,” he added.
Pricing another problem for property developers
By Rizal Raoul Reyes @brownindio
ASIDE from the mismatch in the demand and supply issue highlighted by the more than 60,000 unsold inventory, property developers have to hurdle the pricing issue of condominiums, an official of a major property management company said.
“It’s a very simple solution, there’s a mismatch in the demand and supply but it’s really due to pricing which is at least 20-40 percent overvalued. Those units could be sold off in a year if priced “to market,” KMC Chairman Michael McCullough told the B usiness M irror in an interview via Linkedin. McCullough said the key to develop a bigger base of ownership is providing
homeowners a program of 15, 20, 30-year mortgages. “Your mortgage would be less than your rent which would encourage ownership versus renters,” said McCullough, also the founder of KMC Solutions. He also pointed out that developers continue to build unaffordable vertical housing because their job is simply to maximize returns. Although building condominiums benefits some sectors like the construction industry, McCullough stressed building condominiums is not rosy as before because it no longer offers affordability, convenience, capital appreciation, or value. “That’s why demand has moved to the suburbs, open space, community, and fresh air,” he said.
McCullough said the continuing popularity of work from home or hybrid programs has only continued to accelerate
Economy
demand for horizontal homes and put a major dent in the demand for vertical condominium living.
“The shift towards hybrid work models is influencing the demand for office space. While some sectors, like IT-BPM, are reducing their need for physical office space, traditional occupiers and periodic upticks in leasing activity are helping to balance the market. This transition is expected to continue shaping the office market dynamics in 2025,” he explained.
Meanwhile, McCullough said the office market in Metro Manila remains resilient despite high vacancy rates and declining rents. He said the information technologybusiness process management (IT-BPM) sector continues to support the demand, contributing to a positive net take-up of office space. “However, with an additional 500,000 sq. m. of office space expected to enter the market by the end of 2025, vacancy rates are projected to remain above 20 percent,” he said.
To boost occupancy, he said landlords have been lowering rental rates.
McCullough pointed out that the trend is expected to continue into 2025, with average rental prices experiencing slight declines. “For instance, Makati CBD’s rental rates saw a minor dip in 2024, and this downward trend is likely to persist as older buildings on Ayala Avenue adjust their rates,” he said.
Cavite site of NHA’s first housing caravan this year
THE National Housing Authority (NHA) kicked off its first Housing Caravan of 2025 on Friday at Dorothea Homes 1 in barangay Halang, Naic, Cavite.
More than 500 beneficiaries attended, using the event to address concerns about housing amortization.
Residents from Dorothea Homes 1 and 2, Harbour Homes, Barangay Calubcob Parkstone Estate and Naic View also sought assistance on technical unit issues, community support services, finance and estate management. Earlier, NHA held two Housing Caravans in Baras, Rizal, and Cabuyao, Laguna, benefiting over 1,500 individuals.
Additionally, 109 fire victim families from Davao City, Davao Oriental, Davao
de Oro and Pasay City received support under Emergency Housing Assistance Program, designed to help families affected by calamities rebuild their homes.
Shelter programs THE Social Housing Finance Corp. released some P5 billion to housing programs that benefited 3,700 families from January to November 2024. Since its founding in 2004, SHFC has invested a total of P36.6 billion in nearly 3,200 community-led housing initiatives. In additon, by May 2024, it had contributed P63.92 million in dividends to the National Treasury, reflecting a 19 percent increase from 2023. Looking ahead, the corporation is ramping up its efforts to provide shelter
solutions and meet its objectives for the next three years, aligned with the Department of Human Settlements and Urban Development’s ambitious goal of achieving zero squatters or informal settlers by 2028.
Currently, SHFC is managing 12 projects under the Pambansang Pabahay Para sa Pilipino Housing (4PH) program in Misamis Oriental, Palawan and Manila. These projects are part of a larger undertaking comprising 112 initiatives aimed at delivering over 505,000 housing units by 2028.
“These partnerships with local governments are crucial in implementing the 4PH because they have an in-depth knowledge of the local community, particularly its housing needs, demographics, and geographic challenges,” SHFC President Federico Laxa said.
“We will continue to work together with more LGUs, developers, and other stakeholders to help us create sustainable, inclusive, and community-centered housing solutions,” he added.
Later this month, SHFC will launch two North-South Commuter Railway Extension (NSCR-Ex) projects in Naic, Cavite, expected to yield over 4,000 housing units.
Preparations are also underway for the turnover of Rizal Ville in Calamba, Laguna, which is set to provide permanent homes for more than 2,100 families displaced by the South Commuter Railway Project. Bless Aubrey Ogerio
Can we fight corruption challenges around us?
By Henry J. Schumacher
SPEAKING to corruption fighters and experts in the field, there are many reasons for concern when it comes to the developments that will shape corruption in the future. From the rise of populism to the disruptive force of technology, one thing seems clear: the world of (anti-)corruption will get messier. A small change in one area can trigger far-reaching change in other areas shaping corruption, and thus affect the fight against it.
Four key challenges are identified that will shape the world of (anti-) corruption in the future:
n Growing pressure on freedom and democracy
n Rising inequality and populism
n Concentration of global power (Trump took over yesterday);
Biden, in his farewell address, warned of the ‘oligarchy’ of the ultrarich.
In other countries, we worry about ‘anti-dynasty’ provisions.
n Growing challenges of technology.
Growing pressure on freedom and democracy
MORE countries have experienced a decline in freedom than experienced an improvement. Rule of law, freedom of expression and democratic electoral processes have been significantly challenged.
The rich are getting richer.
What about the rest?
THE world is facing exceptional levels of inequality. The richest 1 percent of the world owns about 50 percent of global wealth. By 2030, this share of global wealth could grow to 64 percent, according to research by the UK House of Commons Library.
Many experts and practitioners suggest that this rising inequality will lead to growing corruption risks, as they see it as contributing to unequal access to power and influence for private gain. Rising wealth inequality is also seen by many experts as a root cause for low levels of trust in governments.
Diffuse power, contested power
ABOUT two billion people around the world currently live in fragile contexts facing conflict and violence, and the OECD expects this number to rise to 2.3 billion by 2030. Fragile states lack effective checks and balances and can be prone to corruption by those in power. Ushering integrity in those contexts will be very challenging since strong and stable institutions are lacking.
Tech—a wild card, not a silver bullet
TECHNOLOGY will continue to transform the world we live in—including corruption and its many forms. As mentioned earlier, seven of the 10 largest companies in the world are technology firms.
Can we rise to the challenges?
LOOKING at the state of the world and the trends that will drive corruption in the future, it is easy to get discouraged. These big trends suggest that the fight for integrity and accountability is going to be harder and more complex, and that it will require new approaches and new actors.
But there are also causes for optimism that the battle for a world free of corruption can be won.
There are four main reasons to be optimistic about the
long-term future of the fight against
1) Corruption is now on the agenda
Today, people across the world are much more aware of corruption and its destructive impact. Asking experts how the fight against it has changed over the last decades, the conversation quickly turns to how much the narrative has shifted.
This is reflected in the political debate. Nearly every country in the world is now part of the UN Convention Against Corruption (UNCAC). Worldwide, politicians are campaigning—and winning—elections based on the promise to curb corruption. Whether these politicians tackle corruption once elected is another story!!
2) Young people around the globe are demanding change
Young people across the world have been at the center of mass movements demanding social change. From the climate activists of ‘Fridays for Future’ to the ‘March for Our Lives’, youth are not accepting the status quo.
Half of young people around the world see corruption and lack of government accountability as the most serious issue affecting their country, according to a survey by the World Economic Forum. Thought leaders echo this positive development. When asking them about opportunities to accelerate change, one thing becomes obvious: “today’s vibrant youth” is a key reason to be hopeful about the future fight against corruption.
3) Tech offers new tools to fight corruption
Digital technology will be key in the future fight against corruption. But still, corrupt actors will make themselves at home in new digital spaces, by using cryptocurrencies to launder money, by manipulating and stealing data and by leveraging AI and machine learning.
But it’s not necessarily all bad news. If corruption fighters succeed in using technology more effectively than those exploiting it for corrupt purposes, it may be one of the biggest opportunities to foster positive change.
4) More allies are joining the fight Driven by growing pressure from customers, companies are waking up to the importance of good governance and ethical behavior. There is an ever-growing range of benchmarking tools, integrity frameworks and networks that are often just waiting to be properly implemented.
Can we rise to tomorrow’s corruption challenges?
YES, if everybody understands that Integrity starts with ‘I’—me, my involvement, and my understanding that if I am not part of the solution, I am part of the problem. (Please take note that I have been deeply involved in creating the Integrity Initiative).
Feedback is hoped for; contact me at hjschumacher59@ gmail.com.
corruption:
Philexport urges exporters to prepare for EU Green Deal policies’ sustainability requirements
FBy Andrea E. San Juan @andreasanjuan
i lipino exporters are called to prepare for compliance with the European Union’s (EU) Green Deal policies’ sustainability requirements to increase their competitive advantage in the EU market and make it easier for them to penetrate other markets globally, a statement by p h ilippine Exporters Confederation, i n c. ( p h ilexport) noted.
According to a statement issued by p h ilexport during the recent EU- p h ilippines p a rtnership Conference, Michaela Summerer, associate expert at Green and i n clusive Value Chains Section of the i n ternational Trade Centre ( i T C), said the European Green Deal comprises over 50 policies, initiatives and legislative proposals in support of the vision of
a climate-neutral region.
Summerer cited the EU Deforestation Regulation (EUDR), which will become applicable on Dec. 30,2025; the Carbon Border Adjustment Mechanism (CBAM) which is expected to become fully effective from 2026; and the Ecodesign for Sustainable p r oducts Regulation (ES p R ), which is also expected to be applicable from 2026.
The i T C official explained that CBAM imposes a carbon tax on imported goods in high-emission sectors such as steel, cement, aluminum, fertilizers and electricity, based on the carbon intensity of their production.
“Exporters to the EU will need to calculate the carbon emissions of their products and EU importers will be responsible for ensuring that their suppliers comply with the CBAM
Sandiganbayan convicts Herbert Bautista, his former city administrator for graft
Tand providing the necessary carbon content documentation for imports,” Summerer said.
According to Summerer, of the affected sectors, the p h ilippines exported around $22.5 million to the EU in 2023.
She added that exporters have to report their carbon content and pay a fee based on the difference between their country’s carbon prices and the EU’s.
Meanwhile, EUDR prohibits the placing or making available on the EU market, as well as the export from the EU, of certain commodities and products unless they are deforestation-free and have been produced in accordance with relevant legislation of the country of production.
These commodities include cattle, cocoa, coffee, oil palm, rubber, soy, wood, as well as selected derived
products such as chocolate, leather and furniture.
“[There is] an obligation on companies placing products on the market or exporting them to exercise ‘due diligence’ to ensure their compliance with these criteria. o p erators need to provide the geolocation of [the] production sire and a self-declaration, supported by relevant documentation, through the EU’s Deforestation Due Diligence Registry,” added Summerer.
Another sustainability policy of the EU is the ES p R , which Summerer explained, is a “framework legislation enabling subsequent concrete design requirements for products focusing on energy efficiency, recyclability, durability, and reduction of hazardous substances through delegated acts.”
These will cover energy-related
products including household appliances, heating and cooling products, consumer electronics and lighting; textiles; furniture; building materials and packaging, among others, and introduces a digital product passport, the i T C official explained.
Summerer said ES p R covers “an array of product categories,” including many products under Harmonized System (HS) Chapters 84 and 85, which combined are the largest exports of the p h ilippines to the EU, amounting to $6.1 billion in 2023.
She said manufacturers, importers and distributors shall ensure correct product labelling and meeting the performance and environmental criteria before placing them on the EU market.
“The directive works by setting mandatory product standards, ensuring compliance through moni-
toring and enforcement, and promoting extended producer responsibility to ensure product life cycle sustainability,” she added. To decode the EU green deal policies, Summerer said they need to understand their obligation and due diligence requirements; collect relevant data; perform analysis, risk assessment and mitigation; and monitor and maintain accurate reporting.
p r oactive action [is] needed. Suppliers to the EU market may be indirectly affected by the EU Green Deal policies, i.e. they might not have the reporting obligation under the respective legislation yet will be asked by their buyers for relevant documentation and evidence,” she said. Summerer added that collaboration and partnerships are key for preparedness and compliance.
Youth group hits Comelec proposal to criminalize nuisance candidates
By Justine Xyrah Garcia
Erwin M. Garcia] proposes an election where only the rich can run for office,”
By Joel R. San Juan @jrsanjuan1573
HE Sandiganbayan has found former Quezon City mayor Herbert “Bistek” M. Bautista guilty of graft in connection with the anomalous procurement of online occupational permitting and tracking system (o op T S) in 2019 amounting to p 3 2.1 million.
i n a 146-page decision penned by Associate Justice Ma. Theresa Dolores Gomez-Estoesta, the Sandiganbayan Seventh Division imposed a penalty of imprisonment from a minimum of six years to 10 years as maximum. Also found guilty along with Bautista was his then city administrator Aldrin C. Cuña, who was given the same prison term as penalty. Bautista and Cuña were also perpetually barred from holding public office.
The anti-graft court, however, did not order the accused to pay fines since the amount was proven to have been received by Geodata Solutions, which was not impleaded in the case.
“ n o civil liability will be adjudged at this instance considering that the amount of p 3 2,107,912.50 cannot be directed to be paid by either accused, the same having been received in full by a private party which is not a party to this case,” the ruling stated.
The two former QC officials were
charged with graft on the payment of p 32.1 million to Geodata Solutions, i n c. for the procurement of o op T S due to lack of appropriate city ordinance issued by the city council for the project and no complete delivery of the procured system.
“For payment to be approved by accused Bautista at the same time, there was undoubtedly an unwarranted benefit, advantage, or preference given to Geodata. The real score was not to rush payment when all the environment variables required under the Terms of Reference should have been complied with,” the ruling stated.
“With all the muddle the o op T S encountered, the project was indeed prematurely marked as completed when payment was effected to Geodata on July 1, 2019, all to its benefit, advantage or preference. While there was a lack of proof showing actual damage to the government, the prosecution’ s evidence clearly showed that the accused unjustly favored Geodata by facilitating payment when delivery was not complete. Undoubtedly, this qualifies as violation of Section 3 (e) of R.A. 3019. Their conviction is thus warranted,” it added.
Bautista served as Quezon City mayor for three consecutive terms from 2010 to 2019.
Bautista’s camp said they will appeal the ruling as they maintained the former mayor’s innocence.
Lawmaker calls for crackdown on rice cartels amid food security emergency
AKBAyA n pa rtylist Representative perci Cendaña urged the government to penalize rice cartels for manipulating the distribution of the food staple, which drives up its prices.
Cendaña issued the statement following the Department of Agriculture’s (DA) expected declaration of a food security emergency this week.
“‘Yung pinaka-basic na pagkaing nasa hapag ng karaniwang Pilipino, hindi na niya ma-afford. Dapat nating wakasan ang profiteering ng mga rice cartels at ng mga hoarders dahil sila lang ang nakikinabang sa mataas na presyo ng bigas,” Cendaña said.
“We need to teach these greedy, exploitative businessmen a lesson— kulong kung kulong. Kung hindi natin ilalabas ang pangil natin , we’ll be stuck in a loophole of food security emergencies,” he added.
Agriculture Secretary Francisco Tiu l aurel Jr. recently said that he would declare a food security emergency to allow the national Food Authority (nFA) to sell rice buffer stock to agencies.
He said this after the n a tional p r ice Coordinating Council ( n p C C) approved a resolution urging the DA
to declare a food security emergency since retail rice prices remained high. According to Assistant Secretary Arnel de Mesa, if l aurel receives the copy of the npCC’s resolution today, he will review it until tomorrow.
“By Wednesday there will be an action from the Secretary since he is the one responsible for the declaration of a food security emergency,” De Mesa told reporters in Filipino during a briefing on Monday. Meanwhile, Cendaña also stressed how supporting local farmers could boost the country’s economy and prevent the declaration of food emergencies in the future.
“Kung mayroon tayong enough locally produced rice, we would not face a food security emergency. We have to realize that this issue is rooted in our dependency on rice importation. no w, our focus should be to invest in our local farmers and ensure that our government subsidies do not negatively impact them,” he said.
“We are positioned as the second fastest growing economy in Southeast Asia, and we can escalate this further by supporting our local industries.” Ada Pelonia
Aprogressive youth group on Monday opposed the proposal to criminalize nuisance candidates, arguing that even those with the potential to disrupt election preparations should still be allowed to run for office as part of protecting democratic rights.
i n a statement, the Samahan ng p r ogresibong Kabataan (S p A RK) said the increasing number of lesserknown political aspirants reflects the failure of traditional politicians to address the country’s persistent socioeconomic issues.
“These 'nuisance candidates' who despite lacking campaign funds and national machinery view elections as the only platform to bring about reforms and resolve their bread and butter issues long neglected by traditional politicians, while [Commission on Elections Chairman George
S pA RK n a tional Spokesperson Milo Basuel said.
S pA RK also argued that instead of targeting nuisance candidates, the Comelec should focus on barring individuals convicted of graft and corruption, those with pending grave and non-bailable cases, those submitting plagiarized certificates of candidacy, and members of political dynasties from running for public office.
The group emphasized that criminalizing nuisance candidates would only further empower “the same corrupt, incompetent, and dynastic” leaders who only worsen poverty and socioeconomic inequality.
The group’s statement was issued in response to remarks made by Comelec Chairman Garcia, who suggested over the weekend that nuisance candidates should face imprisonment or fines as punishment.
DepEd engages stakeholders to make senior high school graduates more employable
By Claudeth Mocon-Ciriaco @claudethmc3
I
n a bid to make Senior High School (SHS) graduates employable, the Department of Education (DepEd) recently conducted a series of consultations with stakeholders, private sector representatives, and industry partners to strengthen the SHS Program.
“We have to make our high school graduates employable. And they have to go into quality jobs. Huwag lang yung jobs that will barely earn them a living wage or enable them to feed their family. Enable them to live a quality life,” Education Secretary Juan Edgardo “Sonny” Angara emphasized during the dialogues held on January 8, 10, and 15, engaging 31 private schools and technical vocational institutions (TVIs), 14 companies and organizations from various regions, 7 government agencies, and representatives from different offices of DepEd Central Office to gather feedback and recommendations for refining the SHS curriculum.
The key principles guiding the revision of the SHS Program include decongesting and simplifying the SHS curriculum, putting a premium on learner choice, ensuring “stackability and seamlessness” to facilitate progression, and strengthening the industry linkages.
The DepEd chief assured that the consultations would be an ongoing collaboration to further improve education policies and curriculum.
“Just as I promised our DepEd conversations with TESDA, with industry, with private institutions will be a continuing process. I think it will never stop because in the implementation, industries will continue to evolve, to change. So we need to evolve along with them,” he said.
Angara called on stakeholders and partners to maintain their support, “With your help, we can come up with something very, very soon. Again, we need you to continuously refine whatever we come up with or decide with.”
In addition to these efforts, the Curriculum and Teaching (CT) strand also held an interface with Curriculum and Human Resource officials and field personnel from 16 Regional and 128 Schools Division Offices on the proposed SHS curriculum.
CT will also conduct local consultations led by Regional CLMD Chiefs from January 24 to February 24.
The SHS consultations were led by the Curriculum and Teaching Strand through the Bureau of Curriculum Development, and by the Office of the Secretary.
“Many individuals file candidacies simply for their ‘15 minutes of fame.’ o t hers do so to create confusion or to extort money from candidates with similar names,” Garcia said, partly in Filipino, in an interview with Super Radyo DzBB.
Under the o m nibus Election Code, nuisance candidates are those who file certificates of candidacy with the intent to mock the election process, confuse voters through name similarity, or lack a bona fide intention to run or campaign seriously.
While the law does not examine an aspirant’s financial capacity to fund a campaign, Garcia proposed revisiting the definition of nuisance candidates, noting that some are still able to secure temporary restraining orders (TR o s) even after being disqualified.
“Unlimited candidacies are allowed even after someone has been declared a nuisance candidate…The
issue lies with our outdated laws— our o m nibus Election Code was written for manual elections, while we now implement automated processes,” Garcia explained. The poll chief has urged lawmakers to amend election laws, noting that Congress dictates the provisions while the Comelec is only tasked with implementation.
For the 2025 super elections, the Comelec declared 117 senatorial aspirants as nuisance candidates. Among them is Subair Mustapha, who recently secured a TRo to have his name reinstated on the official ballot. As a result, ballot printing remains temporarily suspended while the names of Mustapha and seven other local candidates with TR o s are in the process of being included in the official list (Related: https://businessmirror.com.ph/2025/01/17/ comelec-ballot-printing-may-resume-next-week/)
As ceasefire takes hold, Hamas returns 3 Israeli hostages and Israel frees 90 Palestinian prisoners
By Wafaa Shurafa, Samy Magdy, Melanie Lidman & Sam Mednick
The Associated Press
RAMALLAH, West Bank—After 15 months of collective grief and anxiety, three Israeli hostages left Hamas captivity and returned to Israel, and dozens of Palestinian prisoners walked free from Israeli jail, leaving both Israelis and Palestinians torn between celebration and trepidation as the ceasefire between Israel and Hamas took hold Sunday.
The skies above Gaza and Israel were silent for the first time in over a year, and Palestinians began returning to what was left of the homes they fled across the war-ravaged enclave, started to check on relatives left behind and, in many cases, to bury their dead.
After months of tight Israeli restrictions, more than 600 trucks carrying humanitarian aid rolled into the devastated territory.
The ceasefire that went into effect Sunday morning stirred modest hopes for ending the IsraelHamas war.
But in Israel, the joy of seeing freed hostages Emily Damari, Romi Gonen, and Doron Steinbrecher reunited with their families was tempered by major questions over the fate of the nearly 100 others abducted in Hamas’ October 7, 2023, attack, still in captivity in Gaza.
Damari, Gonen and Steinbrecher were the first among 33 Israeli hostages who are meant to be released in the coming six weeks in a deal that includes a pause in fighting, the release of nearly 2,000 Palestinian prisoners and increased fuel and aid deliveries
for Gaza.
What happens after the deal’s first phase of 42 days is uncertain.
The agreement’s subsequent stages call for more releases of hostages and prisoners and a permanent end to the war.
But Israeli Prime Minister Benjamin Netanyahu, who was pressured by the outgoing Biden administration and incoming Trump administration to secure a deal before the president-elect’s inauguration Monday in Washington, has said he received assurances from Trump that Israel could continue fighting Hamas if necessary.
On Sunday, many Israelis stayed glued to TV screens all afternoon to glimpse the women being released through the windows of the Red Cross ambulance. Footage showed them thronged by thousands of jostling Palestinians, including Hamas gunmen wearing green headbands, as militants handed them over to the Red Cross on a packed street in Gaza City.
“An entire nation embraces you,” Netanyahu said.
National Security Minister Itamar Ben-Gvir, a far-right lawmaker who resigned on Sunday from
Netanyahu’s governing coalition over the ceasefire, said the nation was “happy and excited” for their release.
In videos released by the Israeli government, the women were seen weeping and hugging their family members. Damari raised her bandaged hand in triumph.
The military said she lost two fingers in the Hamas-led militant attack on Oct. 7, 2023, that killed over 1,200 people, mostly civilians, and resulted in the abduction of some 250 others.
Applause erupted among the thousands who gathered to watch the poignant scenes on large screens at Hostages Square, the Tel Aviv plaza where families and supporters of hostages have been protesting weekly to demand a ceasefire deal.
It took another seven hours for such scenes to unfold in the occupied West Bank, where the mood was initially subdued as the Israeli military warned that public celebrations for the released prisoners would be punished.
But scuffles with Israeli security forces and hours of waiting did little to deter the crowds that flooded the streets around 1 a.m., as large white buses carrying 90 Palestinian detainees—all women or teens—exited the gates of Ofer prison, near the West Bank city of Ramallah.
Drivers revved their engines in celebration. Fireworks erupted. Several men climbed on top of the bus and hoisted three Hamas flags. “God is greater!” the crowds shouted.
Many of those released expressed elation tinged with grief for the devastation wrought by the war in Gaza.
A “double feeling” is how the most prominent detainee freed, Khalida Jarrar, 62, described it. Jarrar is a leading member of the Popular Front for the Liberation of Palestine, a secular leftist fac -
Immigrants in Chicago and other US cities brace for Trump’s mass deportation arrests
By Sophia Tareen The Associated Press
CHICAGO—The Rev. Homero Sanchez said he didn’t realize the depth of fear in the Chicago immigrant community he serves until someone asked him to handle the sale of their family’s home and other finances if they are picked up this week when President-elect Donald Trump takes office.
Immigrants in large cities have been preparing for mass arrests since Trump won election in November, but reports that his initial push would be in the Chicago area has brought a new sense of urgency and fear.
“They feel they have been targeted for who they are. They feel like they’re reviving this fear they had eight years ago,” said Sanchez of St. Rita of Cascia Parish on Chicago’s South Side. “They’re feeling like something is going to happen. This is not their city because of the threat.” Sanchez, whose congregation has consisted mostly of people of Mexican descent since the 1980s, devoted Sunday Mass “to solidarity with our immigrant brothers and sisters.”
Some immigrants in the country without legal status have been designating power of attorney to trusted friends, making plans for childcare in case of separations and installing security cameras on their doors in case immigration agents come. Others have left voluntarily, as Trump aides have encouraged them to do.
Plans for deportation arrests are in flux, but federal immigration officers will target
more than 300 people with histories of egregious, violent crimes after Trump takes office Monday, one official said Saturday, speaking on condition of anonymity because the plans have not been made public.
The operation will be concentrated in the Chicago area and continue all week, subject to potential weather delays, the official said. Temperatures in Chicago dipped to 6 degrees Fahrenheit (-14.4 degrees Celsius) with cold temperatures forecast throughout the week.
U.S. Immigration and Customs Enforcement arrests a fraction of its targets in such operations, though Trump is expected to cast a wider net than President Joe Biden, whose focus on picking up people away from the border was largely limited to those with serious criminal histories or who pose a risk to national security. Biden’s administration also ended the practice of mass worksite arrests, which were common under Trump, including a 2019 operation targeting Mississippi chicken plants.
Trump aides have said they will arrest others, such as spouses or roommates, who are not targets but happen to be in the country illegally.
Trump told NBC News on Saturday that mass deportations remain a top priority. He didn’t give an exact date or city where they’ll start, but he said they would begin soon.
“It’ll begin very early, very quickly,” he said, adding: “I can’t say which cities because things are evolving. And I don’t think we want to say what city. You’ll see it firsthand.”
tion that was involved in attacks against Israel in the 1970s but later scaled back militant activities.
Since her arrest in late 2023, she was held under indefinitely renewable administrative detention— a widely criticized practice that Israel uses against Palestinians.
“There’s this double feeling we’re living in, on the one hand, this feeling of freedom, that we thank everyone for, and on the other hand, this pain, of losing so many Palestinian martyrs,” she told The Associated Press.
All of those being released had been detained for what Israel called offenses related to its security, from throwing stones and promoting violence on social media to more serious accusations such as attempted murder.
The next release of hostages and prisoners is due Saturday. In just over two weeks, talks are to begin on the far more challenging second phase of the ceasefire agreement.
‘Joy mixed with pain’ IN Gaza, there was palpable relief at the prospect of six weeks without fighting and Israeli bombardment that so far has killed over
Cardinal Blase Cupich, who leads the Archdiocese of Chicago, spoke out as well.
Sanctuary cities, which limit how local police can cooperate with federal immigration agents, have been one of Trump’s favorite targets—especially Chicago.
The nation’s third-largest city became a so-called sanctuary city in the 1980s and has beefed up its policies multiple times since, including after Trump first took office in 2017. Last week, the City Council heartily rejected a longshot plan calling for exceptions allowing local police to work with ICE agents on deportation cases for people accused or convicted of crimes.
Trump’s incoming so-called “border czar” Tom Homan blasted top Democratic leaders in the state during a visit to the Chicago area last month where he indicated enforcement would start there. But in recent days he told media outlets that plans were evolving.
Homan said on the Fox News program “America’s Newsroom” on Sunday that Chicago was still on the table but that the new administration was “reconsidering when and how we do it.”
An ICE spokesperson referred questions Sunday to the Trump transition team, which did not immediately respond to a request for comment. The plan was reported earlier by The Wall Street Journal, which said the operation is expected to begin Tuesday. Community and religious leaders in Chicago said they were disappointed with the potential operation, but ready.
Chicago Mayor Brandon Johnson said Sunday on X that his “commitment to protecting and supporting this city remains unwavering.”
“The reports being circulated of planned mass deportations targeting the Chicago area are not only profoundly disturbing but also wound us deeply,” Cupich said Sunday during a visit to Mexico City, according to a copy of his prepared remarks. “We are proud of our legacy of immigration that continues in our day to renew the city we love.”
Immigrant rights advocates in Chicago rallied Saturday, including Democratic US Reps. Jesus “Chuy” Garcia and Delia Ramirez. They urged immigrants in Chicago to remain calm and exercise their rights, particularly to remain silent and refuse to allow officers into their homes without warrants. Some advocacy groups have planned legal workshops anticipating mass arrests next week.
Ramirez planned to skip Monday’s inauguration to post flyers in immigrant-heavy Chicago neighborhoods with information on what to do in case of an encounter with immigration agents.
“We won’t let our guard down in Chicago,” Garcia wrote on X. Carlos, an immigrant from Mexico, has lived in the Chicago area for decades. The 56-year-old doesn’t have legal status to stay in the country but has work authorization in construction and welding. He declined to give his last name and discuss details of his immigration status for fear of being targeted for deportation.
He has three children who have legal status to stay in the country through the Obama-era Deferred Action for Childhood Arrivals, or DACA, which remains in legal limbo.
The Associated Press writer Elliot Spagat contributed to this report from San Diego.
46,000 Palestinians, according to Gaza’s Health Ministry, which says women and children make up more than half the fatalities but does not distinguish between civilians and fighters.
The skies above the besieged territory were free of Israeli warplanes for the first day since a weeklong ceasefire in November 2023 that freed over 100 hostages, offering Palestinians a chance to take stock of the devastation.
“This ceasefire was a joy mixed with pain,” said Rami Nofal, a displaced man from Gaza City, explaining that his son was killed in an Israeli airstrike.
Triumphant Hamas militants appeared at some celebrations, as crowds chanted slogans in support of them. The Hamas-run police reemerged from months of hiding.
Some families set off for home on foot, their belongings loaded on donkey carts.
In the southern city of Rafah, residents returned to find massive destruction that they described as a dystopia. Some found human remains in the rubble.
“It’s like what you see in a Hollywood horror movie,” Mohamed
Abu Taha said as he inspected the ruins of his family’s home. Israelis divided over deal IN Israel, the scenes of Hamas gunmen celebrating openly in the streets of Gaza underscored divisions over the ceasefire deal.
Asher Pizem, 35, from the city of Sderot, said the deal had merely postponed Israel’s next confrontation with Hamas. He also criticized Israel for allowing aid into Gaza, saying it would contribute to the militant group’s revival.
“They will take the time and attack again,” he said, looking out over Gaza’s smoldering ruins from a small hill in southern Israel with other Israelis gathered to watch as the agreement went into effect. Warplanes roared, helicopters thudded and drones buzzed in the final moments before the ceasefire.
An immense toll THE toll of the war has been staggering, and new details about its scale and impact will emerge. Israeli forces were pulling back from some areas of Gaza, in line with the ceasefire agreement, residents of northern Gaza reported.
Some 90 percent of Gaza’s population has been displaced. Rebuilding—if the ceasefire leads to the war’s end—will take several years at least.
There should be a surge of humanitarian aid, with hundreds of trucks entering Gaza daily, far more than Israel allowed before.
“This is a moment of tremendous hope,” UN humanitarian chief Tom Fletcher said. “Fragile, yet vital.”
Magdy reported from Cairo, Shurafa from Deir al-Balah, Gaza Strip, Lidman from Narariya, Israel. Associated Press reporters Josef Federman in Jerusalem and Mohammad Jahjouh in Khan Younis, Gaza Strip, contributed to this report.
Pope Francis calls Trump’s plans of mass deportation of immigrants ‘a disgrace’
By Nicole Winfield The Associated Press
ROME—Pope Francis said Donald Trump’s plans to impose mass deportations of immigrants would be a “disgrace,” as he weighed in on the incoming US president’s pledges nearly a decade after calling him “not Christian” for wanting to build a wall along the US-Mexican border.
History’s first Latin American pope was asked about the Trump administration pledges of deportations during an appearance Sunday night on a popular Italian talk show, Che Tempo Che Fa.
“If true, this will be a disgrace, because it makes the poor wretches who have nothing pay the bill” for the problem, Francis said. “This won’t do! This is not the way to solve things. That’s not how things are resolved.”
Trump, who is being sworn in on Monday, made mass deportations a signature issue of his campaign and has promised a raft of first-day orders to remake immigration policy.
During his first campaign for the presidency, in 2016, Francis was asked about Trump’s plans to build a wall along the US-Mexico border. Speaking after he celebrated Mass along the border,
Francis famously said anyone who builds a wall to keep out migrants is “not Christian.”
Many US bishops have firmly opposed Trump’s deportation plan, with the incoming archbishop of Washington D.C., Cardinal Robert McElroy, saying such policies were “incompatible with Catholic doctrine.” It was a reference to the Biblical call to “welcome the stranger.” Another cardinal close to Francis, Chicago Cardinal Blasé Cupich, said the reports of mass deportations targeting the Chicago area “are not only profoundly disturbing but also wound us deeply.” In a statement delivered from the Basilica of Our Lady of Guadalupe in Mexico City on Sunday, Cupich said governments have the responsibility to protect borders and communities.
“But we also are committed to defending the rights of all people, and protecting their human dignity,” according to the text of his statement.
Francis, who grew up in Argentina in a family of Italian immigrants, has long prioritized the plight of migrants and called for governments to welcome, protect and integrate them, within their means. He has said the dignity and rights of migrants trump any national security concerns.
ROMI GONEN, right, and her mother Merav hold each other near kibbutz Reim, southern Israel after Romi was released from captivity by Hamas militants in Gaza on Sunday, January 19, 2025.
Billionaires’ wealth soared threefold in 2024; Oxfam warns of growing inequality ahead of Davos summit
By Jamey Keaten The Associated Press
DAVOS, Switzerland—
Billionaires’ wealth grew three times faster in 2024 than the year before, a top anti-poverty group reported on Monday as some of the world’s political and financial elite prepared for an annual gathering in Davos, Switzerland.
Oxfam International, in its latest assessment of global inequality timed to the opening of the World Economic Forum meeting, also predicts at least five trillionaires will crop up over the next decade. A year ago, the group forecast that only one trillionaire would appear during that time.
Oxfam’s research adds weight to a warning by outgoing President Joe Biden last week of a “dangerous concentration of power in the hands of very few ultra-wealthy people.” The group’s sharp-edged report, titled “Takers Not Makers,” also says the number of people in poverty has barely budged since 1990. The World Economic Forum expects to host some 3,000 attend -
ees, including business executives, academics, government officials, and civic group leaders at its annual meeting in the Alpine village of Davos.
What’s the worry about?...The ‘new aristocracy’ PRESIDENT-ELECT Donald Trump, who visited Davos twice during his first term and was set to take the oath of office on Monday, is expected to take part in the forum’s event by video on Thursday. He has long championed wealth accumulation—including his own— and counts multibillionaire Elon Musk as a top adviser. “What you’re seeing at the moment is a billionaire president
taking oath today, backed by the richest man. So, this is pretty much the jewel in the crown of the global oligarchies,” Amitabh Behar, executive director of Oxfam International, said in an interview, referring to Trump and Musk.
“It’s not about one specific individual. It’s the economic system that we have created where the billionaires are now pretty much being able to shape economic policies, social policies, which eventually gives them more and more profit,” he added.
Like Biden’s call for making billionaires “begin to pay their fair share” through the US tax code, Oxfam—a global advocacy group—called on governments to tax the richest to reduce inequality and extreme wealth, and to “dismantle the new aristocracy.”
The group called for steps like the break-up of monopolies, capping CEO pay, and regulation of corporations to ensure they pay “living wages” to workers.
How are the poorest faring?
MANY investors racked up strong gains in 2024, with strong performances for top tech companies and stock-market indexes like the S&P 500, as well as the price of gold and cryptocurrencies like Bitcoin.
Oxfam said billionaire wealth grew by $2 trillion last year, or
roughly $5.7 billion a day, threetimes faster than in 2023. The number of billionaires rose by 204 to 2,769, and the 10 richest men saw their wealth rise nearly $100 million a day on average, it said.
Citing World Bank data, the group pointed to lingering poverty, saying the number of people living on less than $6.85 per day has “barely changed” since 1990. Oxfam used Forbes’ Real-Time Billionaire List” as of end-November for data on the ultra-rich.
By contrast, at least four new billionaires were “minted” every week in 2024, and three-fifths of billionaire wealth comes from
inheritance, monopoly power or “crony connections,” it said.
On average, Oxfam said, lowand middle-income countries are spending nearly half their national budgets on debt repayments. It also noted that life expectancy in Africa is just under 64 years of age, compared to over 79 years in Europe.
Will it be business as usual at Davos again this year?
DESPITE the growing gap between the über rich and the poor, the annual Davos confab, which formally begins on Tuesday, will likely focus this year again on making money and doing deals, with strongman
leaders on the rise in some Western countries and progressive causes like diversity and climate change waning in the business world. The continued rise of artificial intelligence as a tool for business to reap greater efficiencies will also again be a central theme in Davos, despite worries in many sectors that AI could upend many whitecollar jobs and displace workers in an array of industries.
Trump’s return for a second term will likely be on many lips in Davos, as will lingering conflicts, including wars in Ukraine and Sudan, along with hopes for a continuation of a cease-fire that began on Sunday between Hamas and Israel, pausing their devastating 15-month war in Gaza. Forum organizers last week issued a survey conducted among 900 experts for “Global Risks Report,” which found that conflicts between countries was the top concern, followed by extreme weather, economic confrontation, misinformation and disinformation, and “societal polarization”—a nod to the gap between rich and poor.
As in past years, protesters calling for more economic equality, taxing the rich and pressing other demands took to the streets. Some blocked roads to Davos, snarling traffic in places and delaying trips for some attendees to the event, which runs through Friday.
Heavy snow, frigid Arctic blast put 70 million across the US under winter storm warnings
By Michael Casey The Associated Press
BOSTON—Tens of millions of residents along the East Coast are bracing for several inches of snow Sunday followed by dangerously cold temperatures that will grip much of the country from the Northern Plains to the tip of Maine.
Winter storm warnings issued by the National Weather Service have already gone into effect for parts of the MidAtlantic through Monday morning, with the forecast projecting up to a half foot (15 centimeters) of snow. Warnings will begin in New England on Sunday afternoon, with parts of Massachusetts, New Hampshire, Maine and Connecticut seeing as much as 10 inches (25 centimeters) of snow.
Marc Chenard, a meteorologist with the National Weather Service in College Park Maryland, projected that as many as 70 million residents will be under some kind of winter storm warning in the coming days including in New England and the Mid-Atlantic. Large cities such as Philadelphia, New York and Boston could see several inches of snow this evening with the highest totals accumulating outside of major cities.
“There will certainly be some more hazardous road conditions anywhere from D.C. up the whole I-95 corridor and then inland from there later today and tonight,” Chenard said. “Then it gets quite cold behind that. By Monday morning, any roads that haven’t been treated or cleared will still likely be some hazardous travel conditions.”
The snowfall was disrupting airline flights along the Eastern Seaboard. Nearly 130 flights at New York City-area airports were canceled and nearly 90 others were delayed, according to the FlightAware flight tracking service. Dozens of flights also were canceled or delayed at airports around Washington, D.C., and Boston.
In New York City, Mayor Eric Adams urged city residents to take the subway and buses if they have to travel during the storm, making the task easier for crews to clear the streets. He said people who need help with heating or frozen pipes can call 311, and he asked residents to check on their neighbors during the frigid weather.
“Cold temperatures, high winds tomorrow, could be dangerous,” Adams told reporters on Saturday afternoon. “We have to be here for each other and make sure our pets and other parts of New York are safe.”
The weather service said there was a chance of snow showers Sunday afternoon and evening in western New York state, where the Buffalo Bills are hosting the Baltimore Ravens in an NFL playoff game starting at 6:30 p.m.. Heavier, lake-effect snow was expected in that part of the state Monday through Wednesday morning, with 2 feet to 3 feet (about 60 to 90 centimeters) possible in some areas including Oswego along Lake Ontario.
New Jersey Gov. Phil Murphy declared a state emergency for all 21 counties in the Garden State. A winter storm warning was in effect for 10 counties in the northern part of the state, where 6 to 8 inches (15 to 20 centimeters) of snow is expected to fall from Sunday afternoon through the late evening.
Cities and towns were opening warming centers for the next several days to protect people from the freezing temperatures.
Return of the Arctic blast BUT the snow is just the start of a chaotic week of weather.
Much of the Eastern Seaboard will be enduring some of the coldest temperatures this winter.
An area from the Rockies into the Northern Plains will see colder than normal temperatures over several days with temperatures dropping to minus 30 degrees F (minus 34 degrees C) to minus 55 F (minus 48 C) on Sunday and Monday. Wind chills of minus 40 F (minus 40 C) were already recorded in parts of North Dakota and Minnesota. Sub-zero wind chills are forecast to reach as far south as Oklahoma and the Tennessee Valley.
Minnesota residents were urged to wear appropriate clothing and carry a survival kit for travel. Kristi Rollwagen, director of homeland security and emergency management at the Minnesota Department of Public Safety, also urged motorists to drive with a full tank of gas and a fully charged cellphone to keep in touch with loved ones.
“It’s not something we haven’t
experienced before, it’s just a good reminder that it does get cold in Minnesota,” Rollwagen said.
The cold weather forecasted for Monday for Washington, D.C., prompted Presidentelect Donald Trump’s inaugural ceremony to be moved inside the US Capitol Rotunda.
“It’s going to be a cold day in Washington, D.C. on Monday. That’s for sure,” Chenard said, noting temperatures will be in the 20s with wind gust upwards of 30 mph (48 kph).
As happened earlier this month, this latest cold snap comes from a disruption in the polar vortex, the ring of cold air usually trapped about the North Pole.
The cold air will moderate as it moves southward and eastward, but the Central and Eastern US will still experience temperatures in the teens and 20s Monday into Tuesday, Chenard said. The MidAtlantic and Northeast also will have highs in the teens and 20s, lows in the single digits and below zero degrees F (minus 18 C) and wind chills below zero.
Unusual mix of snow, sleet and freezing rain
THE colder temperatures will dip into the South early this week, where as many as 30 million people starting Monday could see a wintry mix of snow, sleet and freezing rain. The unusual conditions are expected to stretch from Texas into northern Florida and the Carolinas.
Impacts are expected starting Monday night in Texas and then spreading across the Gulf Coast and Southeast on Tuesday into Wednesday.
Frigid air combined with a low-pressure system over the Gulf is behind the storm, which could bring heavy snow just south of the Interstate 20 corridor across northern Louisiana and into Mississippi and a mix of snow, sleet, and freezing rain near the Interstate 10 corridor from Houston to Mobile, Alabama.
Louisiana Gov. Jeff Landry on Saturday issued a state of emergency ahead of the severe weather, urging residents to prepare and keep watch on the forecast.
Julie Walker contributed to this report from New York. Dave Collins contributed from Hartford, Connecticut. Bruce Shipkowski contributed from Toms River, New Jersey.
The alarming trend of rising healthcare expenses: Threat to national well-being editorial
The recent announcement by Senator Bong Go highlighting the sharp projected rise in medical costs in the country is a concerning development that demands immediate attention from policymakers and healthcare authorities. The senator raised this concern during a public hearing held by the Senate Committee on health and Demography, citing a survey conducted by WTW Global Medical Trends that forecasts rising medical costs in the Philippines for 2025. (Read the BusinessMirror story, “Projected 18% rise in medical costs alarming, needs action—Bong Go,” January 16, 2025).
According to the WTW Global Medical Trends survey, the Philippines is poised to experience an 18.3 percent increase in medical costs in 2025, the second-highest in the Asia Pacific region. This is an alarming trend that will undoubtedly put an additional financial strain on Filipino households already grappling with the high cost of living.
Senator Go’s call for the Philippine Health Insurance Corporation (PhilHealth) to introduce more competitive and accessible health packages is a prudent step in the right direction. The removal of the restrictive 24-hour confinement rule, which previously prevented coverage of emergency outpatient services, is a welcome move that will provide much-needed relief to patients. The introduction of the Outpatient Emergency Care Benefit (OECB) package, which covers a wide range of emergency services, is another positive development.
However, as Senator Go rightfully pointed out, there is still more work to be done. Expanding benefit packages to include crucial services such as dental care, outpatient drugs, mental health support, and optometric services is essential to addressing the diverse healthcare needs of our citizens, particularly those in rural and underserved areas.
Enhancing transparency and efficient implementation of these reforms will be crucial in ensuring that the benefits reach the intended beneficiaries. Robust monitoring and evaluation mechanisms must be put in place to ensure that PhilHealth’s funds are utilized effectively and equitably.
The increasing cost of healthcare poses a major challenge to the well-being of Filipinos. By embracing a comprehensive reform agenda, as outlined by Senator Go, PhilHealth can play a pivotal role in expanding access to quality healthcare and mitigating the financial burden on Filipino families. This is not only a matter of public health, but also a crucial step towards improving the overall quality of life and promoting the social and economic development of the nation.
Senator Go’s concerns about rising medical costs resonate deeply in a country where healthcare access is a matter of life and death for many. The call for enhanced PhilHealth services and the removal of barriers to care is not just a policy recommendation; it is a moral imperative.
As the government works to implement these changes, it must do so with urgency and a commitment to inclusivity, ensuring that every Filipino has the opportunity to receive the healthcare they deserve.
The urgency for decisive action cannot be overstated. Failure to implement immediate and effective solutions will only exacerbate the healthcare crisis, leading to devastating consequences for individuals and communities nationwide, and further compromising their overall well-being.
BusinessMirror
Opinion
‘This time it is different’
IJohn Mangun
OUTSIDE THE BOX
WAnT to share a truncated passage of a recent post from someone who is not a big-time money manager but “just a guy” who has for many decades been a watcher of the markets.
“Over the last year or two, I’ve really tried to take a holistic approach to markets and consider the outrageous idea that I may not be right about everything all the time. Beyond reasonable to even consider, right?
But in all seriousness, I have really tried to make room in my head for the ideas that (1) I could be wrong about the market eventually crashing and instead we could melt up, (2) I could be wrong about Bitcoin and it could also melt up, and (3) I could be wrong about monetary policy and my outlook on macro as a whole.”
One of the defining themes of the last 20 years has been the phrase, “This time it is different.” This is often used to express the belief that current circumstances or events are unique compared to historical patterns. Or that there is no such thing as “different.”
“This time is different” became
associated with economists Carmen Reinhart and Kenneth Rogoff in their book “This Time Is Different: Eight Centuries of Financial Folly” highlighting how each new crisis is often seen as unique or immune to historical patterns until it isn’t. Before Bitcoin made a catastrophic fall down 70 percent and then a 400 percent gain between October 2021 and December 2024, there was the Covid stock market crash, followed by US inflation moving from 0.1 percent (May 2020) to 9.1 percent in June 2022.
During the mid-2010s, we witnessed the European Sovereign Debt Crisis from the PIIGS (Portugal, Ireland, Italy, Greece, and Spain). In 2015, “Auntie Wang” (the Chinese almost-equivalent of Japan’s Mrs. Watanabe) created a FOMO (Fear Of Missing Out) Shanghai Composite bubble popping more than 30 percent in four months.
One of the defining themes of the last 20 years has been the phrase, “This time it is different.” This is often used to express the belief that current circumstances or events are unique compared to historical patterns. Or that there is no such thing as “different.”
Earlier still, nothing was like the 2007-2008 Global Financial Crisis (Dow Jones down 50+ percent), except of course for the “2000 Dot-com Bubble Burst” with the NASDAQ Composite Index falling 75 percent. But there was something worse— the Asian Financial Crisis when the Korean market fell 75 percent, Thailand dropping 88 percent, and the PSEi bottoming out 79 percent lower.
“A magazine is a periodical publication containing articles, stories, photographs, and illustrations.”
Remember those? Volume 2 No. 3 (dated April 1997) of ‘Portfolio the Magazine for Intelligent Investors’ carried the banner story: “PSE Crisis: What It Means To Investors.” In this issue, the Philippine Stock Exchange ran an advertisement saying, “The Time is now. The Philippines is on the verge of an economic revolution. Indeed, growth is upon us.”
The crisis was the abrupt “resignation” of PSE President Vitaliano Nañagas for his alleged abusive
management style. From the Portfolio article: “More issues came to light including PSE’s non-disclosure of investigations on insider trading and stock manipulation.” There was also an analysis of Uniwide Holdings saying, “We see a short-term correction to P6.20 and recommend a BUY.” UW was delisted in 2017, and the 1997 price was the top. My article was “The Fundamentals of Technical Analysis” where I said buy San Miguel at (unadjusted) P52 on its way down 35 percent. Forward to 2024-2025. “Abra fined P560-M over bourse fraud.” “We at the PSE are always optimistic and hopeful, and this year is no exception. We look forward to a more robust trading year in 2025.”
What has changed at the PSE in the past 28 years? Many of the market old timers are dead. A few new faces came to the industry. A new location now without a trading floor and with a few stockbrokers in fact holding office there. Online trading is popular. The PSE index is at the same level as it was 11 years ago. Jean-Baptiste Alphonse Karr wrote in 1849: “Plus ça change, plus c’est la même chose” (“The more things change, the more they stay the same”).
E-mail me at mangun@gmail.com. Follow me on Twitter @mangunonmarkets. PSE stock-market information and technical analysis provided by AAA Southeast Equities Inc.
Sanchez surprises investors with Spanish business interventions
By Rodrigo Orihuela & Clara Hernanz Lizarraga
AfTer six years in office, Spanish Prime Minister Pedro Sanchez is blindsiding executives and investors with policy surprises in the euro area’s most successful major economy.
The Socialist leader on Saturday pushed out the long-standing executive chairman and chief executive officer of Telefonica SA, Spain’s main telecommunications provider. On Sunday, he stiffened his effort to shut many foreign buyers out of Spain’s property market.
Sanchez is set to arrive at the World Economic Forum in Davos, Switzerland on Tuesday to make his pitch to the global business elite— buoyed by what’s projected to be the euro area’s fastest-growing big economy for a fourth straight year in 2025.
One of a dwindled number of left-leaning leaders in Europe, Sanchez, 52, is portraying himself as a counterbalance to those aligned with Donald Trump. Yet he’s in a tight spot politically.
Sanchez’s minority coalition has been fragile since its inception in 2023 and the prime minister suffered another setback last week when a Catalan nationalist group
withdrew its support, essentially ending his chances of passing a budget for this year. That has fueled speculation that the premier is rolling the dice on his relationship with business to shore up support among his base.
One reason for Sanchez’s move against Telefonica’s Jose Maria Alvarez-Pallete was his frustration with the company for using its publicity budget to advertise in right-wing news outlets, according to people familiar with the matter. The company also advertises in leftleaning media.
Sanchez and his team also view Pallete—the first Telefonica chairman who wasn’t a political appointee—as lacking industrial ambition for Telefonica and believe he didn’t focus enough on technological innovation, according to the people.
A government spokesman said Pallete, who had been executive chairman since 2016, was replaced because a revised shareholder struc-
ture at Telefonica requires new leadership. Telefonica declined to comment.
The former state-owned monopoly, Spain’s largest company by market value at the start of the century, has dropped out of the top 10, weighed down by leverage, divestments and a drop in its share price.
The government’s efforts to shield Spanish real estate from foreigners also plays into a hot-button issue, with voters across the country frustrated at the spiraling price of homes. A new-housing shortage, a lack of permits to develop land for construction and rising property and rental prices have fueled discontent.
At a Socialist party event on Sunday, Sanchez said he’ll propose prohibiting non-European Union citizens who live outside the EU from buying houses in Spain—a step further from his Jan. 13 announcement that he’d tax such transactions at the equivalent of 100% of the property value.
The Telefonica power grab began Friday with the government telling Pallete to step down. He resigned the next day and was replaced by Marc Murtra, until now chairman of defense company and IT company Indra Sistemas SA, in which the govern-
ment holds a 28 percent stake. He’s a former Socialist official who’s close to Sanchez.
A merger between Indra and Telefonica’s IT units was discussed several times in the past, though it was opposed in part by Pallete. Opening the door to the switch was the Spanish government’s acquisition of 10 percent of Telefonica last year to safeguard its influence after Saudi Telecom Co. said it was taking a 9.9 percent stake.
Criteria Caixa SA, Spain’s largest industrial holding firm, later raised its Telefonica stake to 10 percent and signaled it would be a partner to the government.
“It’s now clear that the government’s decision to invest in Telefonica was not purely an economic one but rather a political decision to control one of the country’s largest companies,” said Alfonso Benito, chief investment officer at asset manager Dunas Capital. The firm doesn’t invest in Telefonica due to political influence, Benito said. Murtra’s arrival at Telefonica may raise concern about escalating political influence at Telefonica, Bloomberg Intelligence analysts Erhan Gurses and Matthew Bloxham wrote in a note on Sunday. Bloomberg
Transfer pricing on loans
ITAX LAw fOR BuSiNESS
N recent years, a significant tax issue has emerged surrounding the taxation of inter-company loans, specifically in relation to imputed interest. This has raised important questions about the power of the Commissioner of Internal Revenue to assess tax on transactions that involve loans or advances between related parties. Transfer pricing non-compliance is the new tool being used by the Bureau of Internal Revenue (BIR) in its efforts to impute interest on non-interest-bearing loans and advances between related parties. A close examination of the law, its application, and recent Supreme Court decisions shed light on the limitations of the CIR’s powers and how these should be applied to ensure fairness and clarity in the taxation process.
Under Revenue Memorandum order (RMo) no. 63-99, the CIR has specific guidelines for determining taxable income from inter-company loans or advances. This order relies on section 50 of the 1997 national Internal Revenue Code ( n I RC), which governs the allocation of income and deductions between related parties. The RMo outlines that the arm’s length interest rate should serve as the basis for determining the taxable income from such loans.
section 4.2.1 of RMo no. 63-99 states that the arm’s length interest rate should reflect the rate of interest that would have been charged in an independent transaction between unrelated parties under similar circumstances. additionally, section 4.2.2 mandates that for domestic transactions, the interest rate to be applied is the Bank Reference Rate (BRR) prescribed by the Bangko sentral ng Pilipinas (BsP). Unlike in other countries, however, this rule can only apply when interest is actually agreed upon and stipulated by the parties involved. It does not give the CIR the authority to arbitrarily impute interest on loans or advances that were made without any formal interest agreement.
section 50 of the nIRC grants the CIR the power to distribute, apportion, or allocate income and deductions between related parties to prevent tax evasion or ensure that the income of any business is accurately reflected. However, this power is not as broad as some might assume. It is important to note that section 50 only allows the CIR to allocate actual, existing income or deductions — not theoretical income.
In this regard, the Filinvest case is particularly instructive. In this ruling, the supreme Court clarified the limits of the CIR’s authority under section 50. The Court held that the CIR cannot impute “theoretical interest” to controlled taxpayer transactions, meaning that if no interest was actually agreed upon, the CIR cannot arbitrarily assess income based on a presumed interest rate. a s t he Court emphasized, “there must be proof of the actual or, at the very least, probable receipt or realization by the controlled taxpayer of the item of gross income sought to be distributed, apportioned or allocated by the CIR.” The CIR also has the authority to make transfer pricing adjustments, which involve adjusting prices for intra-company transactions between related entities. This power is also governed by section 50 of the nIRC. However, the supreme Court in the Asia United Bank case made it clear that transfer pricing adjustments under section 50 are strictly confined to allocating expense de-
Opinion
2025: A year of uncertainty
ductions, not creating income or expenses that do not exist. Transfer pricing issues typically arise when transactions between related companies are structured in ways that shift profits or expenses to minimize tax liabilities. While the CIR can make adjustments to these transactions, the Court in the a sia United Bank case emphasized that these adjustments must be based on actual transactions, not hypothetical or imputed amounts. In other words, the CIR cannot use its power to manipulate income by attributing interest charges or other expenses where none were actually incurred.
The CIR’s authority to distribute, apportion, or allocate income and deductions is clearly defined under section 50 of the nIRC. However, this power does not extend to the creation of income or deductions through imputation, especially when no such income has been realized. a s the supreme Court has consistently ruled, taxes should be based on actual, existing income and transactions. The imposition of taxes based on theoretical or speculative amounts undermines the principles of fairness and legal certainty that are fundamental to the tax system. s o, if related companies have intercompany advances, which are non-interest-bearing, and there is no written agreement stipulating interest, the CIR cannot impute interest on these transactions, that can result in an assessment of deficiency income tax. The Civil Code is the anchor of this legal principle. Article 1956 of the Civil Code expressly states: “no interest shall be due unless it has been expressly stipulated in writing.”
Unless this Civil Code provision is amended, it seems that related parties are protected from imputed interest charges on intercompany advances. This is a limitation that may not be present in other countries. nevertheless, this is a reminder that the government must exercise its taxing powers within the bounds of the law and its limitations, ensuring that the assessment and collection of taxes are fair, reasonable, and based on transactions that are considered real by local law and jurisprudence.
The author is a senior partner of Du-Baladad and Associates Law Offices (BDB Law) (www. bdblaw.com.ph), a member-firm of WTS Global. The article is for general information only and is not intended, nor should be construed as a substitute for tax, legal or financial advice on any specific matter. Applicability of this article to any actual or particular tax or legal issue should be supported therefore by a professional study or advice. If you have any comments or questions concerning the article, you may e-mail the author at irwin.c.nideajr@bdblaw.com.ph or call 84032001 local 330.
Dr. Rene E. Ofreneo
LABOREM EXERCENS
Environmental uncertainty as reflected in the floods that have inundated the Bicol region since november 2024. These floods are continuing to the present due to the La nina phenomenon and the missing flood control projects of the government. The high prices of tomatoes and other vegetables are partly due to the failure of farmers nationwide to grow plants in farms continuously battered by rains for weeks. a nd how can the country increase its rice output if harvestable palay is soaked in flood waters for two to three weeks?
For the Philippines and the rest of the world, the prognosis for more climate-related disasters is terrifying. “Fire tornados,” carried by winds with gustiness of over 100 kilometers per hour, have turned Los a ngeles into a giant cauldron, resulting in the evacuation of 100,000 people and costing L a around $300 billion in damages. Floods in saudi a rabia, a desert country, have affected Muslim pilgrims visiting the holy cities of Mecca and Medina. everywhere, climate scientists warn that similar weather extremes and disturbances are likely to happen this year because of the collective failure of nations to come to an agreement on how to mitigate global warming. ex pect the Philippines to remain in the top five of the world’s most vulnerable to climate change risks.
As to economic uncertainty, immediate attention must be given to the two legs of the Philippine economy: migrant remittances and call center-BPo earnings. The oF W remittances, amounting to around $35 billion a year, are likely to decline if the conflicts in the Middle east, the biggest destination of oF Ws, and the rising anti-migrant mood in europe and a merica are not tamed. Yes, decline is the likeliest scenario given the deepening geo-economic crisis of the european Union, Trump’s blatant anti-migrant bias and the knotty geo-political divisions and rivalries in the Persian Gulf involving virtually all countries in the region and their external backers.
a s to the CC-BPo sector, job expansion in the sector is now being reversed. Call center agents and business process workers are being eased out from work by the a I-aided technology revolution sweeping the world. some analysts claim that as
many as one million jobs (out of the 1.2 million) in the Philippines’ CCBPo sector are likely to be disrupted. It is doubtful that this will happen in one fell swoop. The major a I technology disruptors have iffy-sounding names such as machine learning, robotic process automation, natural language processing, intelligent document processing, and cognitive virtual assistants.
The trouble is that the weakening of the above life savers of the Philippines is accompanied by the continuing weaknesses of the industrial and agricultural sectors at home. The never-ending food crisis of the country is well documented in countless Congressional hearings. a nd yet, Congress is unable to admit the failure of some of the laws it has passed. This includes the Rice Tariffication Law of 2019, which has failed to address rice inflation, declining palay production and smuggling and hoarding by the big rice importers and distributors.
a s to the industrial sector, growth is accounted mainly by the scandalridden construction sub-sector. a nother sub-sector, manufacturing, has remained stagnant. Together with the weak agricultural sector, the low industrial capacity of the country explains why the country’s trade deficits have remained bigger and bigger each year. In turn, this explains why the country has remained largely a services-led economy.
The foregoing uneven structure of the economy explains why most of the jobs in the country, estimated by some researchers to be as high as 82 percent, are largely informal and unprotected. Relatedly, this explains why poverty has remained widespread, with the social Weather station reporting early this year that as many as 63 percent of the population consider themselves poor and that as much as 50 percent of the population are “food-poor”.
a n d yet, the country’s G d P g rowth remains relatively high. This is so because government spending, especially on infrastructures, is high, with the PBBM administration openly declaring that it intends to surpass the record-high infra spending of its predecessor, the duterte administration, through its “BuildBetter-More” program. The trouble is that this infra spending, higher
The foregoing uneven structure of the economy explains why most of the jobs in the country, estimated by some researchers to be as high as 82 percent, are largely informal and unprotected. Relatedly, this explains why poverty has remained widespread, with the Social Weather Station reporting early this year that as many as 63 percent of the population consider themselves poor and that as much as 50 percent of the population are “food-poor.”
than the government spending on education in clear violation of the Constitution, has been criticized as graft-ridden, widely used as part of the pork barrel lining the pockets of legislators.
now how does the government support infra spending and other budgetary needs of the country? It engages in continuous borrowings, domestically and externally. The PBBM administration, which promised to bring the debt-to-GdP ratio from the 60 percent legacy of the duterte administration, is on the way to raise the ratio to an alarming 70 percent. a s of november 2024, the total national debt reached P16 trillion, or P3 trillion more than the P12 trillion accumulated by the government in 2022. The country’s external debt, accounting for one-third of the total national debt, has also been increasing. It reached $128.7 billion as of March 2024, with the World Bank applauding the nation’s return to the Bank’s embrace as the 5th largest borrower in 2023-2024.
This rising national indebtedness amidst uncertainties on other economic fronts is one major, major uncertainty. How long can the country sustain continuous borrowings? How will the government cover the rising debt service obligations? In 2024, the doF reported a total amount of P1.9 trillion as debt service. For 2025, this is likely to reach over P2 trillion, or double the P1 trillion allocated for education, again in clear violation of the Constitutional provision that the highest budgetary allocation shall be given to education. Is the PBBM administration repeating the mistake of his father, who failed to rein in the technocrats and political advisers in pushing the nation to higher and higher levels of indebtedness until everything comes to a disastrous debt debacle such as what happened in 1982-1985?
So we now come to the third major source of uncertainty: social inequality. The World Bank in 2022 noted that the Philippines has one of the highest levels of inequality in the a sia-Pacific region.
a round one percent accounted for 17 percent of the national income, while 50 percent shared 14 percent of the pie. The country’s Gini coefficient was 42.3 percent. There are no indications that the gap between the rich and the poor has been reduced in the last two years. Instead, what we have are the latest sWs reports on rising poverty and hunger rates, which are clear indicators of deepening inequality. This is a source of unease for the whole society, for as nelson Mandela put it, as “long as poverty, injustice, and gross inequality persist in our world, none of us can truly rest.”
The trouble is that the government response to poverty and inequality is limited and can even aggravate social inequality. First and foremost is the dozen or so “ayuda” programs that do not provide longterm or sustainable solutions to joblessness, poverty and inequality. For example, the TUPa d program explicitly states that it is a “temporary” program, usually lasting two weeks, to give assistance to the jobless or displaced workers. In other countries, governments provide a more coherent program for the jobless such as a longer period of assistance (up to 100 days in India), assigning the beneficiaries to do productive work such as building stronger community fortifications against climate change risks, and participation of the beneficiaries in upskilling and job search programs during the period the assistance is being given. at the same time, the government undertakes a review and revision of its economic development plan in order to meet the national goal of creating decent jobs for all (sustainable development Goal no. 8) and embarking on industrialization that is sustainable (sdG no. 9).
In the case of the a ICs and a K a P, there is basis for the widespread criticisms that these programs were crafted in aid of election/re-election of favored legislators. In fact, the appropriate guidelines on how to disburse the a ICs/a K a P “ayuda” are still subject to debate. Overall, one can safely conclude that the year 2025 is a precarious year for most Filipinos given the foregoing list of uncertainties. The muchcriticized national budget for 2025 adds to this sense of precarity and uncertainty. The national budget, normally a reflection of a country’s spending priorities, does not even address the major issues outlined above such as what to do when the two life savers of the nation collapse. Folks, let us brace for difficult environmental, economic and social headwinds in 2025!
Dr. Rene E. Ofreneo is a Professor Emeritus of the University of the Philippines. For comments, please write to reneofreneo@ gmail.com.
Oil steadies near $81 as market braces for second Trump term
By Yongchang Chin
oIL was steady ahead of the inauguration of President-elect d o nald Trump, as the market braced for a period of uncertainty and turmoil at the start of his second term in the White House.
Brent traded below $81 a barrel after falling over the past two sessions, while West Texas Intermediate was near $78. Trump is poised to invoke emergency powers in the hours after he’s sworn in as part of
his plan to unleash domestic energy production, according to people familiar with the matter.
The incoming president has also threatened hefty tariffs on trade partners including China, Canada and Mexico, and could implement sanctions on Iran.
Crude has rallied at the start of the year, after frigid weather in the n o rthern Hemisphere drove higher heating demand and broader U s sanctions on Russia’s oil industry left customers in a s ia seeking alternative supplies. Trad-
ing volumes for Monday’s session may be lower due to a federal holiday in the U s T he additional sanctions on Russia have upended tanker markets, led to prices of Middle e a stern crude surging and Brent’s prompt spread widening in a bullish backwardation structure. sp eculators have increased their long-only positions on Brent, although there’s also been a smaller buildup of shorts.
scott Bessent, Trump’s nominee for Treasury secretary, said last week
Indonesia opens domestic carbon market to global investors
By Norman Harsono & Heesu Lee
according to Bloombergn eF Indonesia was among a s ia’s largest suppliers of voluntary carbon credits before exports were restricted in 2022 as the govern-
ment reviewed the role of domestic offsets in meeting the nation’s own climate goals. Companies including Volkswagen aG and shell Plc have been among major buyers of the nation’s credits, data compiled by BneF shows. since its launch on september 2023, IdXCarbon has suffered from weak demand, in part of because of Indonesia’s delays in implementing a emissions cap-and-trade system.
he would support dialing up measures targeting Russia’s oil industry, which would likely mean even more disruption. The President-elect’s pick for national security adviser has previously vowed “maximum pressure” on Iran.
“If Bessent gets his way, the energy sanctions will only tighten,” said Vishnu Varathan, head of economics and strategy for Mizuho Bank Ltd. “But the bigger picture for me is that the Us is intent on extending its reach as a dominant energy exporter.” Bloomberg
The bourse traded a total of 413,764 tons of credits in 2024, with an average price of 47,682 rupiah ($2.90), according to exchange data. I dXCarbon on Monday listed more than 1.7 million domestic carbon credits for purchase by local or overseas entities. The Indonesian authorized Carbon Credits are being generated through efforts to improve power stations efficiency at PL n sites including gas-fired plants and a mini-hydropower project. Indonesia’s move to open the market follows agreement at the CoP29 climate summit in november on rules on nation-to-nation trading and to allow countries to use credits against their climate targets. so far only energy generation offsets will be included for international trade, even though the nation is regarded as having huge potential to supply nature-based offsets. Bloomberg
Atty. irwin C. Nidea Jr.
Palace, DBM shoot down claim of ‘blanks’ in ’25 GAA
By Samuel P. Medenilla @sam_medenilla and Reine Juvierre S. Alberto @reine_alberto
PRESIDENTFerdinand Marcos Jr. said Monday former President Rodrigo R. Duterte lied when the latter allegedly said there were discrepancies in the signed 2025 General Appropriations Act (GAA).
In an interview with reporters in Taguig City last Monday, the chief executive stressed that there were no blanks in the provisions in the 2025 GAA, when he signed it into law Republic Act No. 12116 or the 2025 GAA last month.
“He’s lying because he knows perfectly well that that doesn’t ever happen. In the entire history of the entire Philippines, it is prohibited to have an item in the GAA, which does not include a project and how much its budget is allocated for it,” Marcos said partly in Filipino.
In a statement, Executive Secretary Lucas P. Bersamin echoed the position of the President and tagged the comments made by Duterte as “fake news” and a criminal act.
“Some quarters, including a former president, have maliciously peddled fake news about President Marcos having signed the GAA of 2025 with certain parts of the enactment purposely left blank to enable the administration to simply fill in the amounts like in a blank check,” Bersamin said.
Verifiable MARCOS said the supposed gaps in the 2025 GAA can be easily be disproved with a simple review of its online copy posted in the website of the Department of Budget and Management (DBM).
“You can look if there is at least one incident of blank check to prove that what I am saying [about their claims] are lies,” he said.
Public to be consulted on 7-4 govt work sked pitched by MMDA, says Marcos
PRESIDENT Ferdinand Marcos Jr. on Monday gave assurances that public consultations will first be conducted before he decides on the proposal of the Metropolitan Development Authority (MMDA) to adjust the working period of government workers to help ease traffic congestion in the National Capital Region (NCR).
“It’s not enough to talk to the traffic enforcers and the administrators of traffic that have made the suggestion. We also have to ask the commuting public if [the proposal] will be practical,” Marcos told reporters in an interview in Taguig City on Monday.
“So, if it turns out that everyone agrees to it, then I cannot see why it will be a problem,” he added.
MMDA recommended moving the work shift of government employees in NCR from 8 am to 5 pm to a proposed shift of 7 am to 4 pm. This, MMDA said, will allow government employees to avoid the daily rush hour by allowing them to go home an hour earlier than their private sector counterparts, who are mostly using the 8 am to 5 pm work shift. The modified work schedule is expected to affect 175,918 government employees who use private vehicles, and 223,508 others, who use public transportation, according to MMDA.
Citing the results of the recent survey it conducted, MMDA said the local government units (LGU) which are already implementing such a policy reported smoother traffic flow in their jurisdictions. Based on the navigation
technology firm TomTom’s 2024 Traffic Index report, two cities in NCR, Manila and Caloocan, were among those cities, which suffer severe traffic congestion worldwide.
Public service lens
COMMISSIONER Aileen A. Lizada of the Civil Service Commission (CSC) said while the intention of the proposal from MMDA is good, it must be studied extensively since it can affect the delivery of government services.
She noted the proposed scheme of MMDA can have a significant impact, especially on frontline workers who must attend to their clients.
“MMDA sees the situation in their lens, regarding traffic; however, for the CSC we must look at the effects of these as it involves the transacting public, most of whom come from the private sector whose working schedule remains as is, until 5 pm,” Lizada said in a statement.
“What is now the priority of the government agencies? The transacting public or traffic,” she added. Lizada noted that while government agencies can implement the proposed modified work schedule of MMDA, the CSC Memorandum Circular No. 6, series of 2022 containing guidelines for implementing flexible work arrangements states that it should not be at the expense of their clients.
“CSC has issued a memorandum to all government agencies, that the core working hours are 8:00 am to 5:00 pm, meaning, they should have people in their offices to attend to the transacting public [during that time],” she added. Samuel P. Medenilla
Bersamin assured the public that the P6.352-trillion 2025 GAA were vetted by Congress and the Department of Budget and Management (DBM) before it was approved by the President.
“This meticulous line-by-line scrutiny is a pre-enactment check performed by dedicated civil servants to ensure that the GAA contained no single discrepancy in the amounts being appropriated,” he said.
“It is impossible for any funding items to be left blank, as alleged by misinformed and malicious sources,” he added.
Before he signed the 2025, Marcos ordered a comprehensive review of the version of the 2025 GAA approved by the Joint Bicameral Committee of Congress after it allocated funding to some of his “legacy projects,” which were lower than what was proposed in the 2025 National Expenditure Program (NEP).
Last week, the chief executive held multiple “private meetings” with concerned government agencies to remedy the suboptimal provisions of the 2025 GAA.
DBM issues clarification
THE DBM, meanwhile, refuted accusations that the signed 2025 GAA contains blank pages for the Marcos Jr.
administration to fill the amounts.
In a statement, the DBM called the claims “completely false and reckless.”
“Allow us to categorically deny the spreading accusations stating that the FY 2025 GAA signed by President Ferdinand ‘Bongbong’ R. Marcos Jr. contains blank pages or figures,” the DBM said.
The 2025 national budget amounts to P6.326 trillion. This is lower than the proposed P6.352 trillion after Marcos Jr. vetoed several line items in the budget and provided zero subsidy to the Philippine Health Insurance Corporation.
The DBM said the General Appropriations Bill (GAB) presented to and signed by Marcos Jr. is a complete document, with no blank pages or missing details. “In no case does the Executive issue a GAA with blank pages or figures.”
The Budget department also cleared that documents circulating online are pages from the Bicameral Conference (Bicam) Committee Report, and not the GAB nor the GAA.
Citing the 1987 Constitution, the DBM said the GAB, and not the Bicam report, is officially submitted for consideration, approval or veto of the President.
“It is the GAB, with all its details, that is controlling, and is presented to See “DBM” A2
BILL VS. TEEN PREGNANCY, IF UNCHANGED, FACES ‘VETO’
PRESIDENT Ferdinand Marcos Jr. announced on Monday he will veto Senate Bill (SB) 1979 or the “Prevention of Adolescent Pregnancy” Act if it is passed by both houses of Congress in its current form, noting its provisions containing “woke” absurdities.
“Woke” is a slang in the United States used to describe awareness of important social issues or the act of being politically liberal that is considered to be extreme.
After reading the provisions of SB 1979, the chief executive said he was appalled by its “woke” provisions, which he claimed includes teaching four-year-olds how to masturbate and ensure every child has the right to try different sexualities.
“This is ridiculous. It is abhorrent. It is a travesty of what sexual and sex education should be to the children,” Marcos said.
“I’m already guaranteeing, it still has not passed [in both Houses]—if this bill is passed in that form, I guarantee all parents, teachers, and children: I will immediately veto it,” he added. He noted that while he supports sex education, he said it should focus on the anatomy of male and female reproductive systems, consequences of early pregnancy, and sexually transmitted diseases such as human immunodeficiency virus (HIV).
But when it comes to sexual orientations, he said, it should be left to the parents or grandparents to teach it to their children or grandchildren, respectively.
“What about the parents? Don’t they have the right to decide on what and when they will teach something to a child? We all…I’m a parent and I’m a grandparent. So, I feel very strongly about this,” Marcos said.
Senator Ana “Risa” HontiverosBaraquel denied claims made by some groups, which includes that of former Chief Justice Maria Lourdes Sereno—Philippine Council of Evangelical Churches Legal Advisory and Public Policy Review Commission—that SB 1979 has provisions that teach children the concept of masturbation, bodily pleasure and sexual rights. Sereno and other proponents of Project Dalisay, a group opposing SB 1979, however, noted that while the term masturbation is not explicitly mentioned in the bill, it will mandate the teaching of Comprehensive Sexuality Education (CSE) in line with international standards in local schools. They noted that the CSE international standards include the concept of masturbation. Hontiveros clarified that SB 1979 will not compel the Philippines to follow the policies of other countries. Samuel P. Medenilla
‘Stake sale may boost DBP capital position’
By Reine Juvierre S. Alberto
APOTENTIAL stake sale could strengthen the Development Bank of the Philippines’ (DBP) capital position, which may lead to an upgrade in its standalone credit strength, according to Fitch Ratings.
Although the global credit watcher said the proposed amendments to the DBP’s charter—allowing the state to sell part of its stake in the bank—are unlikely to impact DBP’s sovereign support-driven Issuer Default Ratings (IDR), a stake sale can restore DBP’s underlying capital buffer.
“Capital injection via a potential stake sale that enhances DBP’s capital
position materially could lead to an upgrade in the bank’s Viability Rating [VR], which reflects its standalone credit strength,” Fitch Ratings said in a non-rating action commentary.
The state-run lender’s VR was downgraded to “bb-” from “bb” in March 2024 due to its P25- billion capital infusion to the Maharlika Investment Fund (MIF), the country’s sovereign wealth fund, in 2023.
DBP’s contribution reduced its common equity Tier 1 (CET1) ratio by 4 percentage points and resulted in a breach of the local capital requirement if not for regulatory forbearance.
Since then, DBP’s capitalization has “improved gradually,” as shown in its parent-level CET1 ratio of
13.8 percent as of the end of September 2024.
The BusinessMirror reached out to DBP President and Chief Executive Officer Michael O. de Jesus for comment, but he declined to respond.
“We expect the bank’s capital buffers to continue to rise steadily as profitability improves, helped by lower credit costs amid a robust economic environment,” Fitch Ratings said.
“Beyond enhancements in its capitalization, DBP’s VR could also be upgraded should we see improvement in its asset quality and profitability,” it added.
Legislation seeking to increase
the DBP’s authorized capital stock to P300 billion from P35 billion is
currently docked in the Senate. The Department of Finance (DOF) is also advocating for Congressional approval of amendments to DBP’s charter, such as offering a portion of their shares to the public, which reduces the government’s 100 percent ownership.
“We believe DBP continues to play a strategic role in advancing the state’s policy agenda that the government is likely to retain, notwithstanding the possibility of lower public ownership,” Fitch Rat-
THE SMELL OF MONEY Trained money-sniffing dogs have been deployed at the Ninoy Aquino International Airport Terminals to detect passengers who try to bring large amounts of Philippine peso and foreign currencies. BOC assistant deputy collector for passenger services Mark Almase said that Naia-Customs district collector Yasmin Mapa entered into an agreement with the Philippine Coast Guard, the source of the canines that have been trained to sniff out money on luggage and even hand-carry bags, while the Office for Transportation Security (OTS) uses body scanners. The initiative comes amid recent reminders from the Anti-money Laundering Council (AMLC) about the need to sustain efforts to prevent illegal money flows. NONIE
Editor: Jennifer A. Ng
DMCI sees cement business profitability to take 3 years
By VG Cabuag @villygc
THE Consunji-led DMCI Holdings Inc. (PSE: DMC) expects its newly-acquired venture, cement firm Concreat Holdings Philippines Inc. (CHP), formerly Cemex Holdings Philippines Inc., may take three years to hit its profitability stride, longer than the initial target of one-year.
According to Herbert M. Consunji, DMCI chief finance officer and concurrent CHP president, the company can at least be “above water” this year after the new management work on operational efficiency since taking over the fourthlargest cement firm in the country.
“There are a lot of things to do. There are room for improvement. We will try everything positive,” Consunji said.
At least, he said, the group is now operating the cement firm for about two months now, instead of just someone looking on. CHP, formerly a unit of Mexicobased Cemex SAB de CV, closed the first nine months of 2024 with a loss of P1.24 billion, up 52 percent from the prior year’s P819 million. Sales dropped 15 percent at P13.5 billion compared to P15.88 billion. In December, DMCI together with its mother company Dacon Corp. and listed unit Semirara Mining and Power Corp., completed the acquisition of a majority stake
Megawide
MEGAWIDE Construction Corp. may spend some P1.8 billion in capital expenditures for the year, which will mainly will be spent for its real estate and construction businesses.
According to Megawide Chairman Edgar B. Saavedra, some of the money will also go to its precast and construction solutions.
Saavedra added that this year’s capex amount is about 50 percent of the expected P1.2 billion total capital spend last year.
He said expenditures could help the company drive the company’s top line to grow by 20 percent to 30 percent this year, driven by the con-
Alternergy financial advisors identified
By Lorenz S. Marasigan @lorenzmarasigan
in CHP from Cemex’s unit Cemex Asian South East Corp. for $272 million.
At the financial close, DMCI secured a 51-percent effective stake, while Semirara and Dacon accounted for 10 percent and approximately 29 percent, respectively.
The deal gave the group a 90 percent stake in the company, which included the 0.095 percent publicly-owned stake that shareholders tendered as part of the mandatory tender offer required by regulators.
At the announcement of the transaction’s close, Consunji said that the group’s priorities are to enhance the logistics network, optimize the product mix, manage production and operating costsand leverage on potential operating synergies of CHP within the DMCI ecosystem.
CHP, which wholly owns APO Cement Corp. and Solid Cement Corp., currently has a combined annual production capacity of 5.7 million tons. This capacity is expected to grow to 7.2 million tons by early 2025 upon the completion of the expansion plant at Solid Ce -
ment in Antipolo, Rizal.
The 1.5-million ton integrated cement production line will double the company’s cement production capacity in the Luzon region.
Last year, DMCI Chairman Isidro A. Consunji expressed confidence on the benefit of the DMCI synergy in turning CHP back to profitability.
The acquisition is anticipated to strengthen the DMCI ecosystem, with captured markets for coal, long-term contracted power capacity, fly ash, and cement products.
Consunji said the group expects power, fuel and other production supplies costs, which represent 73 percent of CHP’s cost of sales in 2023, to decrease due to normalizing market prices and the transition to a more affordable energy supplier under Semirara.
“Additionally, administrative and selling expenses, which accounted for 52 percent of prior-year operating expenses, are expected to decline from talent and business process onshoring initiatives, following the exit of Cemex,” Consunji said.
allots ₧1.8B in capex
struction and real estate operations.
Saavedra declined to provide target for the bottomline but expressed optimism it will outpace sales growth.
“That’s driven by real estate,” he said adding that the company’s various businesses are on firm footing.
Saavedra said that the company’s real estate arm under PH1 World Developers Inc. is set to focus on the P3.5 million-and-below housing segment to complement its middleincome housing ventures that is currently facing headwinds due to excess supply.
According to the executive, PH1 World broke ground on a mid-rise
PLDT unit partners with film dealers
PLDT Global Corp., the international arm of PLDT Inc., has partnered with Viva One and Vivamax (VMX) to bring Filipino movies and series closer to Filipinos overseas. Through the Tindahan ni Bossing (TinBo) platform, customers can now access international subscription evouchers to watch in-demand local content. TinBo is a one-stop marketplace offering services tailored to Filipinos abroad, from connectivity and bills payment to digital banking, entertainment, and gifting.
“We are continuously expanding the TinBo platform to offer a range of products to overseas Filipinos, from connectivity solutions, practical and secure bills payment, to entertainment via this partnership
with Viva,” PLDT Global President and CEO Albert V. Villa-Real said. The collaboration offers a 10-percent discount on VMX and Viva One e-vouchers exclusively for overseas Filipinos purchasing through TinBo. These vouchers provide worldwide access to Filipino movies, TV series, concerts, and stand-up comedies, available on Android and Apple mobile devices.
“Through our partnership with PLDT Global and TinBo, we can bring homegrown content to overseas Filipinos and make them feel closer to home,” Vivamax Chairman and CEO Vicente R. Del Rosario Jr. said. Available in 80 countries, VMX and Viva One are subscription-based videoon-demand platforms that showcase Filipino-made content across various genres. Lorenz S. Marasigan
condominium development in Imus in Cavite, last year with similar projects set for the year.
Saavedra expressed optimism on the demand for P2.5 million-priced units moving forward. He added that PH1 World may list in the stock exchange in three years.
The company’s land port business, the Paranaque Integrated Terminal Exchange, meanwhile, continues to experience increase in traffic occupancy, Saavedra said.
On the other hand, Megawide’s core construction business is expected to have steady growth, with its order book stood at P42.6 billion as of end-September. These were
projects that the company are set to complete in two to three years.
Saavedra said the construction business is expected to have better topline and bottomline as problematic projects from the COVID-19 pandemic period were now completed. He said Megawide is eyeing opportunities in the government’s infrastructure pipeline, particularly airport projects.
Megawide closed the first nine months of the year with a profit of P589.73 million, up 76 percent from P333.3 million the prior year. Revenues reached P16.49 billion, up 4 percent from the previous P15.82 billion. VG Cabuag
Insurer AIA to sell stake in PDS to PSE
THE AIA Philippines Life and General Insurance Co Inc. has joined the fray on selling to the Philippine Stock Exchange Inc. its shareholdings of the Philippine Dealing System Holdings Corp., the operator of the bond market trading platform.
The PSE said AIA has agreed to sell its 250,000 common shares to the bourse, equivalent to 4 percent of PDS.
AIA will join the earlier share purchase agreement signed by the shareholders of PDS, which agreed to sell their ownership at P600 per share, which was based on the enterprise value of P3.75 billion of bond market trading operator.
These transactions are part of PSE’s plan to acquire all of PDS and “align the Philippine capital market with other markets globally which have a single exchange structure for fixed income and equities. The transaction results in a vertical integration of the depository function within the same group that operates trading, clearing and settlement of listed securities,” the PSE said.
The other shareholders who signed the agreement include the
Bankers Association of the Philippines for itself and on behalf of BAP Data Exchange Inc. and certain member-banks, to sell up to 1.8 million common shares equivalent to 28.8335 percent of PDS; Singapore Exchange Ltd. for its 1.25 million shares or 20 percent; Whistler Technologies Services Inc. for its 500,000 common shares, equivalent to 8 percent; San Miguel Corp. for its 250,000 shares, or 4 percent; Investment House Association of the Philippines’ 40,672 shares, 0.65 percent; Golden Astra Capital Inc.’s 22,536 shares, 0.3606 percent; Mizuho Bank Ltd.’s 5,000 shares, 0.08 percent; and Financial Executives Institute of the Philippines Research and Development Foundation’s 96,388 shares, 1.54 percent.
The PSE will shell out some P2.53 billion to pay all the sellers.
The PDS is the holding company that owns the Philippine Dealing and Exchange Corp., the operator of the fixed income exchange.
It also owns the Philippine Depository and Trust Corp. which serves as the depository for equities and fixed income securities. VG Cabuag
RENEWABLE energy (RE) company Alternergy Holdings Corp. has appointed AlphaPrimus Advisors and Astris Finance as financial advisors for its next capital raising initiative.
In a statement, Alternergy President Gerry P. Magbanua said this move comes as the company intensifies its efforts to achieve its “Road to 500 MW” capacity target.
“We are advancing to the next phase of our capital raising program. We are excited to partner and work closely with AlphaPrimus and Astris Finance who have strong track record of successfully closing M&A [mergers and acquisitions] deals both locally and internationally,” he said.
AlphaPrimus, known for its expertise in M&A and debt advisory, brings an extensive portfolio of nearly 80 transactions valued at over $37 billion. The firm’s accomplishments
in the Philippines include advising Citicore Renewable Energy Corp. on its P6.7-billion partnership with PT Pertamina Power Indonesia and ACEN Corp.’s P17.4 billion energy transition mechanism for the early retirement of a coal plant. Astris Finance, a global transaction advisory firm specializing in energy transition projects, has a 25-year history of facilitating over $60 billion in deals. Its footprint in Southeast Asia includes exclusive advisories on six M&A and capital-raising transactions totaling more than $500 million in the past three years.
The appointment of the two firms comes at the heels of Alternergy’s successful P20-billion capital raise within 15 months of its initial public offering in 2023.
Alternergy is targeting the development of up to 500 MW of renewable energy projects, including wind, solar, and run-of-river hydro, within the next two years.
Rakuten billionaire defends mobile bet
RAKUTEN Group Inc.’s chief dismissed skeptics who call the Japanese e-commerce pioneer’s mobile foray a mistake and said the telecom arm is central for future growth through artificial intelligence.
A decision to enter Japan’s cutthroat wireless market has saddled Rakuten with four years of losses, weighing on its cash-churning online shopping mall and finance operations. But that mobile arm and its 8 million-plus users help train an AI poised to expand the conglomerate’s business, according to billionaire founder Hiroshi Mikitani.
The amount of exclusive data
Rakuten gathers from its users is “extremely powerful,” Mikitani said in an interview with Bloomberg TV. “We have no intent to compete against OpenAI or Google. But we will actively build a more vertically integrated, specialized AI.”
Rakuten sees an opportunity in Japan, which has been a laggard in the adoption of digital and AIpowered technologies. While Tokyo is extending hefty subsidies to homegrown AI providers, no clear winner has emerged. The race to create a go-to Japanese large language model is now crowded with the likes of SoftBank Corp., Nippon Telegraph & Telephone Corp., NEC Corp., CyberAgent Inc. and of course OpenAI.
Rakuten, which is in a dead heat in online shopping against Amazon. com Inc. in the world’s No.4 economy, is now preparing to launch an AI assistant that serves as a travel and shopping agent to drive further traffic and engagement. It’s also recruited former Google maps and search expert Ting Cai to steer its
AI development beyond travel and e-commerce.
The benefits of the mobile business to Rakuten’s ecosystem are “huge,” Mikitani said. Users on the Rakuten mobile network spend almost 50 percent more on Rakuten’s online shopping mall, with benefits spilling over into its credit card, travel, banking and brokerage operations, the 59-year-old said. It’s been a costly gamble, however. The mobile business has stretched the company’s balance sheet, prompting the online retailer to sell a roughly 15 percent stake in its profit-churning credit card arm to Mizuho Financial Group Inc. It’s also raised funds by taking its banking business public in 2023. In November, Rakuten reported its first quarterly operating profit since 2020, after losses in its mobile segment shrank. That segment is now profitable, discounting marketing costs to win new customers, Mikitani said. Rakuten has had to spend on promotions and ads to woo subscribers from NTT Docomo, KDDI Corp. and SoftBank Corp., which together command roughly 95 percent of a saturated market. In an effort to expand its appeal, Rakuten aims to deliver 100 percent smartphone coverage in Japan with the help of satellite-based services. The company’s partnering with US provider AST SpaceMobile Inc. with satellite-based services starting in 2026.
“We want to become one of the top-tier profitable companies in Japan and—in the future—in the world,” Mikitani said. “Our ambition is probably really big, but we are doing this step by step.” Bloomberg News
Hiros H i Mikitani photographer: shoko takayasu/BloomBerg
Banking&Finance
DOF chief signals bumpy ’25 for BOC collection
By Reine Juvierre Alberto @reine_alberto
WHILE the Department of Finance (DOF) expects the Bureau of Internal Revenue (BIR) to hit its revenue target in 2025, meeting the double-digit growth in collection target might be a challenge for the Bureau of Customs (BOC).
“I expect the BIR also to hit the targets for 2025. The challenge will be a little more for BOC because we
increased their target for next year,” Finance Secretary Ralph G. Recto told reporters in a recent briefing.
Benefits of dividend investing: A strategy for the conservativeaggressive investor
ARE you aware of the benefits that you can get in investing in stocks or funds that pays dividends? Maybe you’re more familiar with capital appreciation or returns that you can get if you invest in real estate or business?
Whatever approach it is that you are thinking, you may consider dividend investing as a strategy that can help you be diversified and maximize opportunities in investing to large companies that pays dividends. Let us see how this strategy can help an investor in various life stages.
Dividend investing is a versatile approach that can support financial goals across different life stages. For conservative-aggressive investors— those who balance risk with the need for steady returns—dividend-paying stocks offer a reliable source of income, growth potential, and financial security. Let’s explore how this strategy benefits investors in five key ways and how these benefits adapt to various life stages.
1. Reliable passive income life stages. Dividend investing offers reliable passive income across life stages, making it a versatile financial strategy for different phases of life. For young professionals, dividends can supplement active income, providing a foundation for building wealth and reinvesting to take advantage of compounding growth. As individuals move into midlife, dividends can help balance financial priorities such as mortgage payments, education expenses, or retirement savings, offering a steady and dependable cash flow. For retirees, dividend income often becomes a primary source of financial stability, replacing active income while protecting the investment principal.
This consistent income stream also adapts well to changing needs, as dividends from high-quality companies can grow over time, keeping pace with inflation. Overall, dividend investing supports financial security and independence, regardless of life stage.
2. Potential for capital growth while balancing risks. Dividend investing offers the potential for capital growth while balancing risks, making it an attractive strategy for wealth creation.
Companies that consistently pay and grow dividends are often financially stable, with strong earnings and solid business models. This stability not only provides a steady income stream but also positions these companies for gradual capital appreciation as their earnings and market value increase over time. Furthermore, dividend-paying stocks typically exhibit lower volatility than non-dividend-paying counterparts, serving as a buffer during market downturns. Reinvesting dividends amplifies the potential for compounding returns, driving both income and capital growth. By focusing on high-quality dividend stocks, investors can achieve a balance between pursuing growth and mitigat-
Revenue target for the BIR is set at P3.232 trillion in 2025, higher by 13.48 percent from the P2.848 trillion target in 2024.
Meanwhile, the BOC will also face a 13.22-percent increase in its tax collection goal, raising P1.064 trillion in 2025 from P939.694 billion in 2024.
The BOC admitted that the reduction of rice and battery electric vehicles tariffs to 15 percent from 35 percent has pulled the agency from reaching its revenue targets in the previous months.
Customs Assistant Secretary Atty. Vincent Philip C. Maronilla said the reduced tariffs resulted in foregone revenues amounting to P6.35 bil-
ing risks, ensuring a more stable and rewarding investment journey.
3. Compounding through dividend reinvestment. This is one of the most powerful aspects of dividend investing, driving exponential growth in wealth over time.
When dividends are reinvested to purchase additional shares, these new shares generate their own dividends, creating a self-reinforcing cycle of growth. This compounding effect accelerates the accumulation of wealth, especially over long periods, as each reinvestment increases the number of shares owned and the potential for future payouts. Even small, regular dividend payments can grow significantly when reinvested consistently, transforming modest investments into substantial portfolios. This strategy is particularly beneficial for investors aiming for long-term goals, as the reinvested dividends amplify returns without requiring additional capital, making it a simple yet effective way to maximize the potential of dividend-paying investments.
4. Resilience during market downturns. Dividend stocks tend to be more stable during periods of economic uncertainty, providing financial security regardless of your stage in life.
Young Professionals: Reduce portfolio volatility as you start building wealth. Mid-Career: Protect your hard-earned investments during market downturns, offering peace of mind amid financial responsibilities. Retirees: Ensure a reliable income source, even when markets are unpredictable, by investing in companies with consistent dividend histories.
5. Tax advantages and inflation protection. Dividends often come with tax benefits and the potential to outpace inflation, preserving purchasing power.
Dividend investing is not just a strategy—it’s a financial companion that grows and evolves with you. For young professionals, it’s a foundation for long-term wealth building. For those in their mid-career, it offers a balance of growth and stability during your peak earning years. For retirees, it becomes a dependable income source, ensuring financial security in your golden years.
No matter where you are in life, dividend investing can help you achieve your financial goals. By tailoring your approach to match your stage in life, you can maximize its benefits and build a resilient, purpose-driven portfolio.
lion from select motor vehicles and P12.88 billion from rice.
Preliminary figures from the DOF showed the BOC has collected P916.600 billion in 2024, about P20 billion short of its goal.
Despite this, Maronilla told BusinessMirror that the BOC can put up a good revenue collection plan to mitigate the further effects of Executive Order No. 62, which reduced the tariffs.
“Any reduction in revenue in any of the fields that we’re collecting against, there will be ways on how the Bureau can find ways to mitigate that,” Maronilla said.
The BOC would also rely on the country’s economic managers on
what industries and economic activities the Bureau should look after to meet the P1.064-trillion goal, Maronilla added.
Other non-traditional revenue sources would also be tapped, such as collections from post-key loans audits and auction activities, to help in the collection target, the BOC official said.
ABy Butch Fernandez @butchfBM
S they have different mandates, merging the operations of the Overseas Filipino Bank (OFBank) and the Land Bank of the Philippines warrants a thorough review, Sen. Robinhood “Robin” C. Padilla said.
Padilla filed last Monday Senate
THE Pru Life
lnsurance Corp. of UK col-
laborated with the Al Amanah Islamic Investment Bank of the Philippines (AAIIBP) to promote Islamic finance in the country following its receipt of Takaful operator license.
Pru Life UK said the partnership aims to promote financial education and capacity-building initiatives, particularly in the Bangsamoro Autonomous Region in Muslim Mindanao (Barmm) to expand the reach of financial inclusion.
AAIIBP Chairman and CEO Amilbahar P. Amilasan Jr. said the Islamic bank is committed to advancing financial inclusion through Shariah-compliant solutions.
“The partnership with Pru Life UK on financial education and capacity building is a significant milestone in our efforts to uplift Muslim communities and empower them to become key contributors to the nation’s progress. We are eager to witness the positive impact this collaboration will bring,” Amilasan said.
The Philippines has the third-largest Muslim population in Southeast Asia, with approximately 7 million Muslim Filipinos.
“One of the reasons why Muslims are quite hesitant to avail of conventional financial interventions is because these are perceived to be not connected to the requirements of their faith,” University of the Phil-
Resolution 1281, urging the appropriate government agencies to review and reassess such a proposal, citing the need for independent entities for overseas Filipinos and farmers.
“The implications of this proposal must be thoroughly reviewed by relevant agencies, including but not limited to the Department of Finance, Governance Commission for Government-Owned or Controlled
For next year, should the BIR and BOC record a shortfall in their collections and not hit the double-digit adjustments, the DOF will ramp up its non-tax collections. Recto said government assets will be privatized and the 75 percent dividend rate of state-run corporations will be retained.
“We’re preparing what can we do to ensure that we still collect the revenue so that we don’t increase the deficit,” the Finance chief said. Non-tax revenues reached P625.959 billion in 2024, higher by 53.60 percent than the P407.5billion target.
Meanwhile, the BIR recorded a P2.86 trillion revenue collection in 2024, exceeding the P2.848 trillion target, according to Internal Revenue Commissioner Romeo D. Lumagui Jr. Lumagui noted that the amount is still tentative as the figures are still being reconciled. The final figures will released in the first week of February.
‘Review planned merger of LandBank, OFW bank’
Corporations, Bangko Sentral ng Pilipinas, Department of Migrant Workers, and the Overseas Workers Welfare Administration,” he said in his resolution.
Padilla’s resolution stemmed from a proposal to merge OFBank with LandBank, which was reportedly affirmed by the DOF during a meeting on April 25 last year.
“It must be noted that LandBank’s
ippines Institute of Islamic Studies (UP-IIS) Dean Julkipli M. Wadi said.
Most Muslims, traditionally, store their money at home and put it in a chest instead of keeping their savings in the bank due to riba or interest, according to Kamaruddin Bin Alawi Mohammad, researcher at the UP-IIS.
Pru Life UK obtained its Takaful window operation certification from the Insurance Commission (IC) last November 4, 2024. The insurer is preparing to introduce an insurance product, subject to regulatory approval.
Takaful is a Shariah-compliant form of insurance founded on cooperative arrangement and aligns with the principles of mutuality and solidarity. Earlier, Pru Life UK President and CEO Sanjay Chakrabarty said the first Takaful insurance product will be launched in the first quarter of 2025.
“We are excited to collaborate with AAIIBP on financial education and capacitybuilding to help address the need to fill in the gap in financial education especially for Muslim communities,” Pru Life UK’s Chief Legal for Government Relations and Sustainability Paul Anthony P. Mandal said. Insurance penetration, or contribution of the insurance sector to the national economy, slightly improved to 1.74 percent as of the third quarter of 2024 from 1.68 percent in 2023. Reine Juvierre S. Alberto
THE Bureau of the Treasury (BTr) upsized the amount it awarded on Monday’s auction as yields declined by as much as 42.3 basis points (bps) due to strong investor demand for Treasury bills (T-bills) and local rate cut bets.
As such, the Treasury raised a total of P27.6 billion, awarding P9.8 billion in 91-day and 182-day T-bills and P8 billion in 364-day tenor debt papers.
The initial P22 billion offering was 4.26 times oversubscribed, with total tenders reaching P93.776 billion.
The demand allowed the Treasury to double the non-competitive bids accepted for the 91-day and 182-day tenor T-bills.
Average yield of the 91-day T-bills declined by 42.3 bps to 5.165 percent from the 5.588 percent recorded in the previous auction. Bids for the government security reached P34.410 billion, 4.9 times higher than the programmed P7-billion offer.
Meanwhile, the 182-day T-bills fetched an average yield of 5.503 percent, down by 13.5 bps from 5.638 percent previously. Total bids for the debt papers hit P30.250 billion, 4.32 times the P8-billion offer.
The 364-day T-bills settled at an average rate of 5.840 percent, lower by 5.1 basis points from 5.891 percent in the previous auction. The tenor attracted total bids of P29.230 billion, 4.17 times higher than the initial P8-billion offer.
In comparison, the Bloomberg Valuation Service reference rates are 5.497 percent for the three-month tenor, 5.627 percent for the six-month tenor and 5.895 percent for the oneyear tenor.
T-bill average auction yields declined on expectations of local monetary authorities reducing key policy rates as early as the first rate-setting meeting in 2025, according to Michael L. Ricafort, chief economist at Rizal Commercial Banking Corporation.
Yields also eased following the initial implementation of the maximum suggested retail price of imported rice on January 20, 2025, and the declaration of a food security emergency, Ricafort added.
The measures could further lower local rice prices, which accounts for about 9 percent of the inflation basket, potentially justifying further local policy rate cuts, the economist noted. Finance Secretary and Monetary Board Member Ralph G. Recto said the Bangko Sentral ng Pilipinas (BSP) could cut rates more aggressively than the United States Federal Reserve (Fed), by 50 to 75 bps in 2025, but the pace will hinge on inflation (See: https://businessmirror.com. ph/2025/01/20/finance-chief-sees-inflation-not-fed-pace-to-shape-rates/).
The Monetary Board, the BSP’s highest policy-making body, is set to meet on February 20, 2025. The Marcos Jr. administration will borrow P2.545 trillion in 2025, based on the Budget of Expenditures and Sources of Financing.
The Treasury will raise a total of P60 billion from T-bills and P1.977 trillion from Treasury bonds this year. This January, P88 billion is targeted to be raised from auctioning off T-bills.
The government’s outstanding debt reached a record-high P16.090 trillion as of the end of November 2024. Reine Juvierre S. Alberto
primary mandate is to provide financial assistance and support services to its mandated and priority sectors, which include Small Farmers and Fishers, Agrarian Reform Beneficiaries, among others,” he added. On the other hand, he said OFWs have unique banking needs and may need a “specialized financial institution tailored to address their specific requirements.”
By Manuel T. Cayon @awimailbox Mindanao Bureau Chief
AVAO CITY—The Philippine Deposit Insurance Corp. (PDIC) is set to sell next month its assets, and those of closed banks, located in a dozen areas in Luzon, two in the Visayas and one in Mindanao.
Fifty-three assets are set for electronic public bidding (ebidding) consisting mostly of residential, agricultural and commercial lots spread across Metro Manila, Batangas, Bulacan, Cagayan, Cavite, Isabela, Laguna, Nueva Ecija, Pangasinan, Quezon, Quirino, and Zambales in Luzon, Iloilo and Negros Occidental in the Visayas and Misamis Oriental in Mindanao.
The PDIC said property areas range from 114 square meters (sqm) to 146,447 sqm.
“To be sold on an as-is-where-is basis are closed banks’ and PDIC assets consisting of 17 residential lots with improvements, 14 vacant residential lots, 13 vacant agricultural lots, three vacant residential/agricultural lots, three residential/agricultural lots with improvements, one agricultural lot with improvements, one commercial lot with improvements, and one commercial/ residential lot with improvements,” it said.
The e-bidding will be coursed through the PDIC portal and will start at 9:00 a.m. on February 19 until 1:00 p.m. on February 20.
Prospective parties can join the e-bidding through a one-time registration on the portal. Once registered, buyers may submit their bids online and observe the e-bidding proceedings by clicking the “Assets for Sale” icon on the PDIC website’s homepage.
It said participants bidding on behalf of another individual or an organization may download the Pro-forma Special Power of Attorney and Secretary’s Certificate, respectively, from the e- bidding portal.
It said that interested buyers may browse through the catalog of properties on the e-bidding portal where the complete list and description of the properties, requirements, e-bidding process, and Conditions of Bid are posted.
“Prospective bidders are encouraged to get familiar with the terms and conditions outlined by the PDIC and are reminded of their responsibility to determine the actual condition, status, ownership, and other circumstances of the properties they wish to acquire,” it added.
All bids will be opened at 2:00 pm on February 20, the PDIC added.
Winning bidders of agricultural properties are required to submit within 15 days after the e-bidding “a Certification issued by the Provincial Agrarian Reform Officer (PARO) of the Department of Agrarian Reform where the property is located that the agricultural lot subject of the bid is not covered by the Comprehensive Agrarian Reform Program (CARP) and that no Emancipation Patent or Certificate of Land Ownership Awards has been issued for the said property.”
Winning bidders are also required to submit “an Affidavit of Aggregate Landholdings within the same period, which states that the person’s collective landholdings, including the property/ies to be acquired during the bidding, do not exceed the five-hectare limit set by law.”
“As the statutory receiver of closed banks, the PDIC liquidates the remaining assets of closed banks to maximize recovery and help pay claims of closed bank creditors, including depositors with uninsured deposits,” it said.
Proceeds from the sale of closed bank-owned properties go directly to a fund that the PDIC manages for these closed banks to settle creditors’ claims, it said. It also said that revenues from the sale of corporate assets “are added to the Deposit Insurance Fund, the funding source for valid
personal finance
Karlo Biglang-awa
Art BusinessMirror
Into Froilan Galpo’s mythic wilderness
PORTRAITURE proved second nature for him, whether depicting real or imagined subjects. Landscape painting, too, always seemed to have come easy, having been engulfed most of his life by the lush greeneries of Quezon, Bukidnon and Pililia, Rizal.
It was only natural, then, for visual artist Froilan Galpo to fuse his two fortes for his first solo exhibition, likewise the 2025 year-opener of Galerie Anna in Alabang. In the show, titled Roots of Her Being, the talented 37-year-old painter presents stunning expanses of fictional landscapes in 16 artworks, each one teeming with life and affixed as the hairpieces of grass-skined diwata subjects. Landscape meets
portrait in dynamic displays of nature’s grandeur.
The soft-spoken artist granted a generous walkthrough of his artworks and creative philosophy during last week’s welcome reception of his milestone showcase. While reserved at first, Galpo eventually warmed up. He discussed at length his artistic journey, from his early start to how he approaches translating his imagined sceneries to bustling ecosystems on canvas.
Galpo was in kindergarten when he discovered his artistic talent by accident. He had a “crush” on a classmate who loved to scribble houses on her notebook. Galpo tried to copy the drawings but to no avail. Frustrated, he remembers scribbling lines on the page, and, to his surprise, ended up creating something entirely different.
May nabuong paa,” Galpo said. “Mula noon, nasa utak ko na lagi ang pag-drawing.”
The young artist went on to hone his skills, and, over the years, progressed to drawing fuller images, including his favorite anime characters. He also dabbled in creating landscape images. Despite not knowing much about plants, much less the names, drawing their leaves and branches from memory was effortless.
Galpo graduated “Artist of the Year” in elementary
in Mindanao. He was honored with the same title in a different school after finishing high school. In college, he studied Fine Arts Major in Painting at Eulogio “Amang Rodriguez” Institute of Science and Technology, and became active in joining art competitions.
Galpo has always banked on his strengths in picturing engrossing realistic faces and nature wonderlands. Much of this is shown in his ongoing debut solo, wherein every bit of detail came purely from the artists’ mind. He maintains that the stunning sceneries were not inspired by any place in particular, while his diwata subjects are merely figments of his imagination.
In Tres Maria’s, the subjects appear side by side in varying poses, while anchoring a sprawling expanse of forest with mountains and waterfalls set in center. Meanwhile, Paradise shows a smiling diwata, her head tilted back to the viewer, as they gaze on the surrounding nirvana.
“Awareness lang,” Galpo replied when asked if he had any particular message charged within his paintings. “Gusto ko lang ipakita ’yung beauty ng nature talaga.”
Froilan Galpo’s Roots of Her Being runs at Galerie Anna in Festival Mall, Alabang, until January 30. ■
Eugenia Last
BY TROI SANTOS
NEW YORK, New York—The Great Hall of The Cooper Union and Hauser & Wirth hosted a discussion featuring two groundbreaking artists, Annie Leibovitz and Amy Sherald, moderated by Darren Walker, president of the Ford Foundation. Leibovitz embodies the spirit of her subjects with narrative depth, while Sherald reshapes American identity through bold and luminous portraiture. This extraordinary event marked the final day of Annie Leibovitz: Stream of Consciousness, a landmark exhibition at Hauser & Wirth 22nd Street, celebrating Leibovitz’s decades-long career as one of America’s most iconic photographers.
In the historic setting of The Great Hall, Leibovitz, Sherald and Walker engaged in a wide-ranging
conversation that delved into the transformative power of art, the challenges of balancing creative integrity with market demands, and the artists’ commitment to documenting humanity. Malcolm King, interim president of The Cooper Union for the Advancement of Science and Art, opened the event by reflecting on the venue’s rich history. “The Great Hall has offered a platform for American presence, from Lincoln and Grant to Clinton and Obama. Today, we honor that legacy as we host Annie Leibovitz, Amy Sherald and Darren Walker,” he said.
The conversation began with Darren Walker emphasizing the role of art in shaping culture and society. Reflecting on Leibovitz’s ability to challenge conventions, Walker remarked, “Great art invites us to
Set priorities and eliminate what irks you. Pay more attention to and spend more time with the people you feel share your concerns. Attend gatherings and open discussions that allow you to voice your opinion, and you’ll gain ground and respect and find your way forward. ★★★★
LIBRA (Sept. 23-Oct. 22): You’ll face opposition if you try to change something that will affect others. To gain approval, create a solid plan with incentives that make it easier for everyone to accept, allowing you to turn what you want into a reality. ★★★
SCORPIO (Oct. 23-Nov. 21): Attend functions of interest, reunions or activities that allow you to blow off steam. Your actions will set the mood and help create opportunities to explore new friendships, possibilities and lifestyle changes you crave. ★★★
SAGITTARIUS (Nov. 22-Dec. 21): Stick to whatever brings in the most cash and spares you from spending on things you don’t need. Look for opportunities that help you feel good about yourself, what you do and how you present yourself to others. Call the shots instead of letting others dictate what you do next.
CAPRICORN (Dec. 22-Jan. 19): Constructive and productive tasks are vital in finding your way today. Concentrate on what you can accomplish by using your time, money and skills precisely; you will be happy with the results and prospects. A commitment or joint venture can stand the test of time. A self-improvement project will pay off. ★★
AQUARIUS (Jan. 20-Feb. 18): Consider the possibilities and do your best not to sabotage your efforts to succeed. Anger and misreading the room are your nemeses today, so take a moment to collect your thoughts
DAVID LYNCH, VISIONARY FILMMAKER BEHIND ‘TWIN PEAKS’ AND ‘MULHOLLAND DRIVE,’ DIES AT 78
DAVID LYNCH, the filmmaker celebrated for his uniquely dark and dreamlike vision in such movies as Blue Velvet and Mulholland Drive and the TV series Twin Peaks has died just days before his 79th birthday.
His family announced the death in a Facebook post on Thursday.
“There’s a big hole in the world now that he’s no longer with us. But, as he would say, ‘Keep your eye on the donut and not on the hole,’” the family’s post read. “It’s a beautiful day with golden sunshine and blue skies all the way.”
The cause of death and location was not immediately available. Last summer, Lynch had revealed to Sight and Sound that he was diagnosed with emphysema and would not be leaving his home because of fears of contracting the coronavirus or “even a cold.”
“I’ve gotten emphysema from smoking for so long and so I’m homebound whether I like it or not,” Lynch said, adding he didn’t expect to make another film.
“I would try to do it remotely, if it comes to it,” Lynch said. “I wouldn’t like that so much.”
Lynch broke through in the 1970s with the surreal Eraserhead and rarely failed to startle and inspire audiences, peers and critics in the following decades. His notable releases ranged from the neo-noir Mulholland Drive to the skewed gothic of Blue Velvet to the eclectic and eccentric Twin Peaks which won three Golden Globes, two Emmys and even a Grammy for its theme music. Pauline Kael, the film critic, called Lynch “the first populist surrealist—a Frank Capra of dream logic.”
Blue Velvet, Mulholland Drive and Elephant Man defined him as a singular, visionary dreamer who directed films that felt handmade,” director Steven Spielberg said in a statement. Spielberg noted that he had cast Lynch as director John Ford in his 2022 film The Fabelmans “It was surreal and seemed like a scene out of one of David’s own movies,” Spielberg said. “The world is going to miss such an original and unique voice.” AP
‘STREAM OF CONSCIOUSNESS’ IN ICONIC IMAGERY
I capture the essence of what it is to be human—the energy that defines our shared humanity,” she said. Her exhibition Stream of Consciousness exemplified this philosophy, showcasing a fluid visual dialogue through landscapes, still lifes and portraits, including her celebrated image of Amy Sherald in her childhood home. Amy Sherald, known for her luminous portraiture that redefines American identity, expanded on this idea by discussing the emotional resonance of her work. She noted, “I’m constantly exploring how to balance my creativity with market expectations, striving to evolve while staying true to my artistic process.” Her celebrated portraits, including her iconic depiction of Michelle Obama, invite viewers into a complex dialogue about representation, dignity, and the power of everyday people. One of the central themes of the discussion was the tension between artistic evolution and the demands of the art market. Sherald spoke candidly about the pressures she faces as a painter. “The art market expects something specific. It’s like once you make Coke, you can’t change the formula,” she said. However, she expressed her desire to break free from these constraints and experiment with new ideas, explaining, “I’m considering a show where I just present thoughts and concepts—pieces that don’t fit into a bigger picture but represent where I am right now.” Leibovitz related with this sentiment, reflecting on her own process of revisiting subjects and ideas. “If there’s a secret to my work, it’s that I’m not afraid to go back. Portraiture allows me to tell a story in a conceptual way, and that interests me deeply,” she shared. She spoke of her creative journey, from her early days at Rolling Stone to her transition to Vanity Fair and Vogue, highlighting her evolving approach to storytelling. The conversation also explored the importance of representation in both artists’ work. Walker praised Sherald’s ability to capture the dignity and humanity of her subjects, particularly in her groundbreaking portrait of Michelle Obama. “What you gave her was her dignity and sense of self, something that had been overshadowed by the weight of public expectations,” he said. Leibovitz added her insights on the role of photography in documenting history and shaping cultural narratives. She noted, “Photography, even in its instantaneity, reveals profound truths about humanity. It connects us to the moment and offers a sense of urgency that only the still image can convey.”
The discussion concluded with a focus on collaboration and the shared mission of art to inspire action and change. Walker praised both artists for their ability to challenge conventions and elevate the voices of their subjects. “Art transforms cultural realities,” he said, “and both Annie and Amy have redefined what it means to document humanity.”
The event, presented by Ursula, Hauser & Wirth’s quarterly magazine, celebrated the gallery’s commitment to fostering dialogue and innovation in the arts. As Russell Sand, director of public programs at Hauser & Wirth, noted, “Like The Cooper Union, Hauser & Wirth is a civic institution dedicated to supporting visionary projects and engaging communities in meaningful conversations.”
Show BusinessMirror
Sparkle sends solid support for ‘Lolong’
ROCCO NACINO, Martin del Rosario, Paul Salas, Brent Valdez, Rodjun Cruz, Pancho Magno are but some of the reliable names that the Sparkle unit of GMA Network sent to support Ruru Madrid, one of its top actors who is back on primetime TV tube for the second book of the much-awaited series Lolong
The series catapulted Madrid to the big league when it was launched in mid 2022, at a time when the country was still reeling from the devastation caused by the worldwide Covid plague. It was one of the few local shows that gave the perennial high-rating series Ang Probinsyano a neck-and-neck battle in the ratings game and not long after, Rura Madrid became a household name and a bankable star in the GMA camp.
So when a second season was approved, and the creative core group buckled down to work to see which former characters would continue with their journey in the series and which new characters will be introduced, the names of these six reliable actors were in the top priority list.
Together with hundreds of Sparkle talents with signed contracts, Paul Salas has been waiting in the wings for many years now and he has been very patient, working hard with every new role assigned to him. “I have always believed that stardom is destiny and if it’s meant to be, it will be. So every new project that I will be given, I take it as another step in my climb to success. And I always tell myself that whether it is a big role or not, it is my responsibility as an actor to give it my best because it might open bigger doors for me in the future.”
This early, Rodjun Cruz knows that his inclusion in Lolong is a dream come true.
“I have always secretly wished to be part of this series, and when I was told that I was handpicked to give life to a new character named Bungó, I got really excited. I am privileged to be be working with this amazing ensemble cast and I’m sure that I will be learning a lot as an actor as I go along.” Cruz shared that he is thankful for the many blessings that he continues to receive, the latest of which is a beautiful baby daughter named Isabella.
For many years now, we have always felt that Pancho Magno has what it takes to be a major character actor, specifically an A-list villain. The usually quiet and pensive Magno has the height, a physique that oozes with effortless masculinity, and a natural gift for acting which he developed over the
years. Never mind if it was an easy entry for him since his mom was a top executive of the network when Magno was first introduced, but in all fairness Magno worked his way up until he became a reliable actor.
“I am so happy to be included in this big cast, and my goal is to just get more meaty roles to add to my acting portfolio. I also hope to bag a few good roles in films to widen my experience,” he intoned.
Rocco Nacino is a few years more senior than the lead star of Lolong, although they both started in talent searches: Nacino in StarStruck and Madrid in Protégé. But playing support to Madrid is no issue for Nacino, who has proven many times that he is a most competent actor.
“There is always enough for everyone in this business, especially for someone as hardworking and as focused as Ruru. I’d give my support to him anytime that he needs me,” said Nacino, who will be playing the role of a town mayor in the coming series.
Handsome new actor Brent Valdez is more than excited to have been cast in Lolong. “This is a wish I have been holding on to for so long in my heart. When I heard that Lolong will have a new season, knowing that it did so well during its first run, I secretly wished that I would at least be considered for a role, and when
with First Lady Liza Marcos as special guest
FIRST Lady Liza Marcos attended the VIP screening of GMA Pictures’ Green Bones at Uptown Bonifacio’s Uptown Ultra Cinema as the guest of honor. She was joined by GMA Network executives, including senior vice president Atty. Anette GozonValdes and first vice president of Sparkle GMA Artist Center Joy Marcelo, along with industry leaders and key figures. The event highlighted the film’s remarkable success at the 50th Metro Manila Film Festival (MMFF), where it earned six major awards, including Best Actor for Dennis Trillo, Best Supporting Actor for Ruru Madrid, and Best Child Performer for Sienna Stevens. All three awardees were present to mark this special occasion.
cast, I was literally jumping out of joy. I hope to do good so other roles can follow because I really want to grow as an actor.”
Another reliable actor who took on a villain role is Martin del Rosario, who has had his share of acting wards in the past. He told us that he is enamored with his character in the series.
“My role is that of a really bad guy who has some kind of a manic syndrome, and he can be really really evil. I love playing bad guys from time to time and this role excites me no end.”
Del Rosario will also be part of the stage adaptation of Anino sa Likod ng Buwan, a project that he says he is pouring his heart and soul into. “Despite my busy schedule, I cannot let go of this chance to do a stage play and this is one of the best decisions I have made as an actor.”
We bumped into Atty. Vic del Rosario of Sparkle recently and he said that Sparkle GMA Artist Center is giving Lolong and Ruru Madrid all the best that the series can get in terms of actors’ support and endorsement, and that the characters being played by Rocco Nacino, Paul Salas, Martin del Rosario, Pancho Magno, Brent Valdez, and Rodjun Cruz are just but some that the viewers would be following as Lolong captivates the hearts of TV audiences once more. n
Kaloy Tingcungco releases debut single ‘Infatuation’
SPARKLE artist Kaloy Tingcungco is excited to announce the release of his first-ever single “Infatuation,” a heartfelt song that explores the complexities of emotions and relationships. The single is a collaboration with GMA Playlist, which helped Kaloy bring this passion project to life. Infatuation” is a deeply relatable song that tells the story of someone unsure of their feelings for another person. The song explores just how strong and overwhelming these feelings can be. Kaloy’s unique style and heartfelt way of singing show a deep connection with listeners. Kaloy shares his personal connection to the song: “When I first read the lyrics, alam ko na agad na babagay ito sa boses ko. Pangalawa, nung narinig ko ’yung demo version, I felt na sobrang genuine nung kanta dahil galing siya sa puso nung mismong nagsulat at narinig ko sa pagkanta niya na there’s something about the song, and I can relate to it not because I have a personal experience but just because it’s about love, and love encompasses everything. Kahit hindi romantic, makaka-relate ka sa kanta.” Through “Infatuation,” Kaloy aims to inspire his listeners to reflect on their own emotions: “When people listen to ‘Infatuation,’ I want them to feel clarity toward their feelings for someone and be inspired to fall in love whether they have problems or are going through a heartbreak. I hope this song helps them to feel better.”
Kaloy Tingcungco’s debut single “Infatuation” under GMA Playlist can be found on digital platforms worldwide. More information can be found at www.gmanetwork. com
CLOCKWISE: Pancho Magno, Rodjun Cruz, Rocco Nacino, Paul Salas, Martin del Rosario, and Brent Valdez.
FROM left: Dennis Trillo, Sienna Stevens, and Ruru Madrid
MR.DIY Opens 700th Store: Bridging Communities as a Trusted ‘FAMILYhan’
LEADING home improvement retailer
MR.DIY
Philippines marks a major milestone with the opening of its 700th store in Bagontaas, Valencia City, Bukidnon. Dubbed as the “City of Golden Harvest,” and Bukidnon’s economic hub, Valencia blends agricultural richness with growing commercial activity, serving as a lifeline for surrounding communities.
This new store highlights MR.DIY’s commitment to bridging urban and rural gaps, making affordable, high-quality home improvement products accessible to more Filipino households while supporting the city’s role as a thriving trade center.
MR.DIY’s journey started in 2018 with its first store in Balagtas, Bulacan. Each milestone along the way has brought the brand closer to the hearts and homes of Filipinos:
Now, with the 700th store in Valencia City, MR.DIY takes another step toward its vision of being the go-to FAMILYhan for all Filipinos, delivering convenience, affordability, and quality closer to home.
The opening of MR.DIY’s 700th store
is more than just a corporate milestone— it’s a symbol of the brand’s deep commitment to uplifting communities and enhancing lives. For customers, the store brings home improvement essentials closer, providing convenience and affordability to both urban and rural households. By hiring local talent, MR.DIY not only creates jobs but also strengthens the bond between the company and the communities it serves. This achievement also sets a new standard for the retail industry, showcasing how growth can be inclusive and transformative. MR.DIY continues to redefine what it means to be a trusted partner for Filipino families, bridging
OFFICIALS of Finland, Perpetual Help Placement Services International Inc (PHPSII), University of Perpetual Help System DALTA (UPHSD) and Perpetual Help Medical Center-Las Pinas (PHMCLP) met last January 17, 2025 to explore partnerships to bring Filipino workers to the Scandinavian country.
The Finnish delegation visited the campus of the University of Perpetual Help System DALTA, and the premises of the Perpetual Help Medical Center in Las Pinas City. They included Minister of Economic Affairs and Employment Arto Satonen, Finland Ambassador to the Philippines
Saija Nurminen, Helsinki Mayor Juhana Vastiainen, and other Finnish officials and business leaders. They were given a tour by a delegation from the Perpetual Help organization led by Mark Carlo O. Tamayo, President of the Perpetual Help Placement Services International Inc. (PHPSII), Dr. Anthony M. Tamayo, President of the University of Perpetual Help System DALTA, and Richard M. Tamayo, President of the Perpetual Help Medical Center-Las Pinas.
In his speech during the short welcoming program, Dr. Tamayo said he looked forward to “a vibrant and fruitful partnership” between the two sides.
gaps and fostering progress in every location it reaches.
MR.DIY’s rapid growth is no accident; it is the result of a clear vision and consistent dedication to meeting the needs of Filipino households. The brand’s strategy of selecting store locations that are convenient and accessible, even in remote areas, reflects its mission of inclusivity.
Reliable logistics partnerships ensure that each store, no matter how far, is stocked with over 18,000 products that cater to a wide variety of needs. This operational excellence, paired with an unwavering focus on affordability, keeps customers returning and fuels the brand’s continuous growth.
Roselle Andaya, CEO of MR.DIY Philippines, expressed the significance of this milestone, saying, “The journey from our first store in Balagtas, Bulacan, to our 700th in Bukidnon shows our unwavering commitment to bringing affordable, highquality home improvement solutions closer to every Filipino community. This milestone reflects not just our growth, but our dedication to empowering lives, creating job opportunities, and being a trusted FAMILYhan for every Filipino household.”
MR.DIY Philippines’ 700th store is a testament to its relentless pursuit of progress, but the journey is far from over.
Perpetual Help Medical Center
PHMC-LP President Tamayo pointed out that Finland is known for its innovation in health and workforce development. “This visit is an opportunity for collaboration, dialogue, and exchange of ideas that would strengthen our shared goal of creating resilient and inclusive system and healthcare and employment,” he said.
For his part, PHPSII President Tamayo said the PHPII and the whole Perpetual organization will wholeheartedly help Finland with its manpower needs. “We are committed to work very hard and employ the Filipinos’ trademark of industry and resiliency to make this relationship work.”
In response, Satonen said their visit to the Philippines was meant to improve cooperation between the two countries, especially in the recruitment of overseas Filipino workers (OFWs). He said there are opportunities for Filipinos workers in his country, which was named the happiest country in the world in 2024.
“We want to share information that Finland is a good place to live. Finland is a family-friendly country with excellent possibilities to balance work and free time,” Satonen said. “As we have heard, Finland is the happiest place to live in the world. As what I have heard in this trip is that it could be even happier when we have more Filipinos working in Finland.”
On Jan. 16, 2025, Finland and the Philippines signed a Joint Declaration of Intent that covers ethical and sustainable labor mobility of Filipino workers in Finland.
Dusit Davao Hotels Ring in Chinese New Year with dinner buffet, sweet delicacies
Thani
Residence Davao invites everyone to a memorable Chinese New Year on January 29, 2025 with a grand dinner buffet at Madayaw Cafe from 5:30 pm to 10 pm, offering an exceptional Chinese culinary experience to usher in the Lunar New Year. For only P1,600 nett per person, guests can indulge in an exquisite selection of traditional and contemporary Chinese dishes, meticulously crafted by the hotel’s talented chefs. The dinner buffet promises to tantalize the taste buds with a variety of Chinese favorites, perfect for starting the year with abundant flavors and good fortune. Madayaw Cafe’s warm and welcoming ambiance sets the stage for an unforgettable dining experience, whether you’re with family and friends. Guests can enjoy the festive atmosphere, featuring carefully curated dishes that honor the rich traditions of Chinese New Year while also introducing innovative twists to every palate.
Delight in the deliciousness of Tikoy and savory pineapple tarts, now available at Dusit Gourmet for just P888 per box. These treats are perfect for sharing with family and friends or making a thoughtful gift for someone special.
Imagine the sweet, chewy goodness of Tikoy paired with the buttery, melt-in-yourmouth flavor of pineapple tarts. Whether you’re enjoying them during celebrations or just as a tasty snack, these special delicacies are sure to bring smiles all around.
Chinese Orange Pound Cake available is also available at Dusit Gourmet for only P1,088. This delicious cake is a wonderful treat for gatherings or as a thoughtful gift. Celebrate togetherness and good fortune with these tasty delights.
Don’t miss this evening of indulgence and good fortune. Celebrate the Lunar New Year with a remarkable dinner buffet at Madayaw Cafe and sweet treats from Dusit Gourmet, and let the flavors bring you prosperity in 2025. For inquiries and reservations, please contact +63 905 562 1370 or +63 (82) 2727500.
The brand envisions a future where every Filipino household, no matter how remote, has access to affordable home improvement solutions. With plans for continued expansion, MR.DIY is poised to bring its signature affordability, variety, and convenience to even more locations. Customers can look forward to a growing selection of
products tailored to meet their evolving needs, all while the brand deepens its role as a reliable partner in community development.
To know more about MR.DIY Philippines’ future expansion, visit www. mrdiy.com/ph/ and our official social media accounts at Facebook, Instagram and TikTok for more details.
Baliuag University celebrates 100 years
BALIUAG University’s 100th anniversary is a celebration of its rich history and a recommitment to its vision of a brighter future. Its centennial theme, “Celebrating our heritage, embracing our radiant future,” translated as “Ipagbunyi pamana ng kahapon, yakapin maningning na bukas,” captures the essence of its legacy and future thinking, fostering a sense of connection and pride.
Throughout its history, Baliuag University has significantly impacted the local community by providing accessible, quality education and engaging in various outreach initiatives. The University’s unwavering commitment to social responsibility is exemplified through its scholarship programs and partnerships with local and international organizations, guiding students toward meaningful careers that benefit society. Since its establishment, Baliuag University has nurtured future leaders and innovators across diverse fields, including arts, education, health sciences, social sciences, engineering, IT, hospitality industry, and business.
As Baliuag University celebrates this significant milestone, it continues to look toward the next
Maya Redefines Banking with Record Growth in 2024
MAYA continues to revolutionize traditional banking to meet the needs of Filipinos at scale. As the #1 Digital Bank in the Philippines, Maya closed 2024 with a standout performance, achieving P39 billion in deposit balances and disbursing P68 billion in loans in a single year. Since 2022, the digital bank has disbursed a total of P92 billion in loans.
“Banking should be simple and empowering,”said Shailesh Baidwan, Maya Group President and Maya Bank Co-Founder.
MR.DIY celebrates a historic milestone with the opening of its 700th store in Bagontaas, Valencia City, Bukidnon, bringing affordable home improvement solutions closer to Filipino communities.
Finland officials, biz execs visit University of Perpetual Help,
IN the photo are, from left, University of Perpetual Help System DALTA President Dr. Anthony M. Tamayo; Finland Minister of Economic Affairs and Employment Arto Satonen; Mark Carlo O. Tamayo, President of Perpetual Help Placement Services International Inc. (PHPSII); and Perpetual Help Medical Center-Las Pinas (PHMC-LP) President Richard M. Tamayo.
Wildfires force harrowing evacuation of Pasadena senior living community
By Allen G. Breed & Heather Hollingsworth The Associated Press
FLUSH with her $1.25 winnings at the bingo tables, Sharon Tanner retired to a room off the dining hall to discuss the top worry for the residents council at her senior living community: what to do about people leaving their laundry in the washing machines and dryers.
Dinner service at the Terraces at Park Marino in Pasadena, California, was about half over, and residents were gathering in the lobby for the night’s movie feature: “Scent of a Woman.” Tanner and Carlene Sutherland, the council vice president and secretary, were discussing the laundry scofflaws when something caught their attention.
“I smell smoke,” Tanner said.
“So do I,” remarked Sutherland.
High above in the surrounding hills, a fire was burning. But staff had decided they were in no immediate danger, and the women figured they were smelling a distant fire. Then they heard a commotion in the lobby.
The space was filling up with people, many of them agitated. Outside, the wind was howling. Then the power went out. Tanner was looking out a picture window toward the backyard, where she sometimes takes meals, when embers began falling from the sky “like hail.”
She sat amazed as first the bushes, then a wooden fence burst into flames.
Within an hour, the Terraces’ staff and residents would be in a race for their lives, walking, rolling and stumbling out into a hellscape of swirling coals in what one person called a “hurricane with flames.”
Four of 15 residents in the Safe Haven wing were in hospice care. As Yesenia Cervantes, director of the memory care unit, scrambled to get people prepared to evacuate, a dark thought began gnawing at her.
Oh, my God, she thought. Will we have to decide which people we can save, and which to leave behind?
Deadly fires
THE wildfires that have ravaged the Los Angeles area since January 7 have claimed at least two-dozen lives and destroyed thousands of structures.
AccuWeather, a company that provides data on weather and its impact, puts the damage and economic losses at $250 billion to $275 billion.
Fewer than 100,000 people in Los Angeles County remain under evacuation orders.
Around 850 patients and residents of nursing homes, assisted living facilities and group homes were evacuated after the blazes last week, according to the California Department of Public Health.
Among them are the people who called the Terraces home.
A place for people’s next stage
A THREE-STORY wood and
stucco building partially covered with ivy, the Terraces nestled in the foothills of the San Gabriel Mountains. The 95 residents— ranging in age from 60 to 102— were divided between assisted living and memory care.
January 7 started out just like any other Tuesday. Breakfast was served from 7-9 a.m. Then at 9:45, it was time for “Stay Fit”—what they call their chair exercises.
Walking Club is usually at 10:15, but the staff decided it was too windy for the residents— many of whom, like Tanner, use a walker. After lunch, it was “Tech Hour,” where staffers helped residents with their devices, and dinner started at 4. Residents had a choice between orange chicken with rice and broccoli, or a cold shrimp salad.
At 5:30, it was time for Movie Night, a tradition for which the residents could thank Louise Miller.
The 83-year-old widow and her neighbor, a 70-year-old man named Eddie, were inseparable, and also “kind of night owls” and wanted something to do after dinner, said Sam Baum, the community relations director. Soon, other residents began joining them, and “Movie Night” was born.
Not long into the film, a visiting nurse came by and told staff there was a fire in the hills above. Baum decided to jump in his car and head up for a closer look.
It was part of the Eaton fire, which began earlier that day and, fanned by vicious Santa Ana Winds, would eventually grow and all but obliterate the nearby community of Altadena. But when Baum stopped his car and took a look around, he didn’t see cause for alarm. There were lots of firefighters on the scene, and the blaze would have to jump a major thoroughfare and a canyon stream to get to the Terraces.
So, when he got back, he told his colleagues, “I think we’re OK.”
Neither local nor state officials had suggested that the Terraces evacuate, says Adam Khalifa, President and CEO, Diversified Healthcare Services, which owns and operates the facility.
Just the same, staff decided to begin bringing the 93 residents (two others were already in other facilities when the fire broke out) down to the lobby. They started methodically draping lanyards around each neck with badges containing the resident’s photo, name and apartment number; on the back were medical details: any conditions, cognitive deficits and “do not resuscitate” orders.
Off-duty staffers began showing up to volunteer. They started calling families to let them know what was happening, and some came and picked up their loved ones.
Suddenly, the lights went out. It was around 6:40 p.m.
A rush to escape the flames CERVANTES , the memory care director, was on the phone with hospice to get some help evacuating those residents when the power went out. That’s when she saw the backyard catch fire. She and another employee grabbed a fire extinguisher and ran outside, trailed closely by Cervantes’ Pomeranian-Yorkie mix WALL-E, and put out the blaze.
Smoke began filling the lobby. Residents donned protective masks.
By 7:45 p.m., the backyard had reignited. Cervantes decided it was time to clear Safe Haven, the memory care unit. Around the same time they got an evacuation order.
Some residents were still in bed. One woman who’d had a seizure earlier that day was too weak to rise; Cervantes lifted her up and put her in a wheelchair.
Other staff made multiple forays to the upper floors, carrying residents down strapped in emergency stair chairs, in wheelchairs, even on their backs. The dining room
had caught fire, and Cervantes finally rushed out.
When they got outside, it was bedlam. Workers from the Pasadena Park Healthcare & Wellness Center, a skillednursing facility next door, were wheeling their residents across the road in chairs and on beds.
First responders were shouting and gesturing.
“Go straight,” they yelled, pointing down the street into the murk. “Go to 7-Eleven.”
Cervantes made multiple trips back and forth to the 7-Eleven, WALL-E following her every move.
Tanner, 72, was struggling when a man with dark hair appeared out of the smoke and told her sit on the bench of her walker.
“Hold your feet up,” the stranger said as she faced toward the Terraces. “Be careful.”
He towed her across the road “like a bat out of hell,” made sure she was OK, then disappeared into the haze in search of someone else to help.
Terraces executive director
Maria Quizon was pushing a woman in a wheelchair when she noticed a man sitting on a sidewalk bench. He was confused, probably in shock, and she begged him to follow her. The winds were so fierce that Quizon was forced to zig and zag, like a sailboat tacking in a gale, the man close in her wake.
Within an hour, the Terraces’ staff and residents would be in a race for their lives, walking, rolling and stumbling out into a hellscape of swirling coals in what one person called a “hurricane with flames.”
The Terraces is set about 200 feet back from the street. Then it was another 800 feet to the 7-Eleven.
It was “the longest, scariest” walk of Quizon’s life.
When the nursing home next door had finished evacuating its 93 residents, staff pitched in with the Terraces folks.
“It didn’t matter who it was,” Pasadena Park vice president of operations Rhea Bartolome said to herself. “Nobody’s dying.”
When residents and staff reached the convenience store parking lot, transport vehicles were already waiting. Tanner and two other residents were loaded into an ambulance and whisked away. Other residents were packed into buses and whisked away to the Pasadena Convention Center 5 miles away.
When he was sure everyone had gotten away, Baum drove to his condominium about eight minutes away from the Terraces to retrieve the ashes of his late wife Patrice, medications, some shoeboxes full of photos and his two cats.
Then he headed to the convention center to rejoin his staff and charges.
A temporary shelter AT 10:25 p.m. that night, Miller called her son, who was also under an evacuation order, to make sure he didn’t worry about her. The call went to voicemail.
“We are in some giant facility in Pasadena,” his mother said in a sweet, even tone. “ She had no idea where that was—“It’s like a football field with a linoleum floor and lots and lots of people.”
After Miller and the other refugees were situated with cots, water and food, the Terraces staff went to work finding each of their residents a place to stay—be it a home, a hospital or another senior living facility. They found two facilities that
would take 20 residents each.
They made sure Miller and Eddie were kept together.
When the smoke cleared, all that remained of their former home was a charred, waterstained shell, some of the black metal letters spelling out “the Terraces at Park Marino” still intact over the front door.
Miller lost all her treasures, including the precious papiermâché sculptures her mother made—everything but her wallet, cellphone and the clothes on her back.
Her son, James Dyer, had nothing but praise and admiration for the Terraces staff.
“It was like a hurricane with flames,” he says of the disaster. “And they did amazing work for the very short notice that they had.”
The Terraces staff set up a makeshift “command center” in the lobby of a hotel just a few miles away to continue advocating for their residents and employees. Baum has vowed that his “second home” will be rebuilt, and that they will all be together again.
Tanner—a former waitress who’d worked at Denny’s, Frisch’s Big Boy and too many other restaurants to count—had only been at the Terraces for 10 months. She loved the place so much that she was already a “resident ambassador.”
For now, she’s staying with her sister and brother-in-law in San Jose. But she can’t wait to see all of her friends again.
“Wherever I go is going to be just temporary,” she says.
“Because as soon as it’s built, I’m back to the Terraces. That was my home, and that’s where I want to live.”
RESIDENTS and staff at Pasadena Park Healthcare & Wellness Center evacuate as the Eaton Fire approaches on January 7, 2025, in Altadena, California. AP/ETHAN SWOPE
Djoko shuns interview: When lines are crossed
Sports
MELBOURNE, Australia—The host broadcaster has apologized after Novak Djokovic declined to do a customary post-match on court interview at the Australian Open Sunday to protest comments made on air by someone who works for the TV network.
NCAA at 100 leads citation list in PSA Awards
ASPECIAL award will be given to the National Collegiate Athletic Association (NCAA) and Citations to 18 personalities and entities will be handed out during the San Miguel Corp.Philippine Sportswriters Association (SMC-PSA) Awards Night on Monday at the Centennial Hall of the Manila Hotel. The country’s Grand Old League will be recognized by the country’s oldest media organization for reaching a great milestone as it celebrates its 100th season as one of the country’s cradle of sports heroes.
The dragon boat national team, Philippine Volcanoes, weightlifter Angeline Colonia, jiu jitsu athlete Isabella Joseline Butler, powerlifter Regie Ramirez and volleyball champion Creamline are some of last year’s achievers to be cited in the grand affair co-presented by ArenaPlus, Cignal and MediaQuest.
Gymnastics wonder boy Carlos Yulo leads the 2024 honor roll as the Athlete of the Year.
B acked by the Philippine Sports Commission, Philippine Olympic Committee, Philippine Olympic Committee, Milo, PLDT/Smart, Senator Christopher “Bong” Go and Januarius Holdings, with support from the Philippine Basketball Association, Premiere Volleyball League, 1-Pacman
TBy Josef Ramos
HE Philippine National Volleyball Federation (PNVF) tapped the marketing and public relations expertise of one of the key officials of a world-class agency in South Korea for the country’s first-time and solo hosting of the FIVB Men’s World Championship (MWCH) 2025 in September.
PNVF president Ramon “Tats” Suzara said on Monday that Jeon Yongjun was appointed as Director of Marketing and Public Relations of the Local Organizing Committee (LOC) of the FIVB MWCH 2025 during an official visit last week in Seoul. “ We wish to create opportunities for South Korea in the world of volleyball,” said Suzara, also president of the Asian Volleyball Confederation and executive vice president of the International Volleyball Federation, or FIVB. Suz ara said that Jeon is expected to effectively implement Korea’s marketing and promotional strategies, adding that his role will be “pivotal in driving the success and visibility of the
Party List, Rain or Shine, Akari and AcroCity, 12 others will be cited by the country’s sports writing community for their respective achievements in the year just passed.
The list includes Johann Chua and Albert James “AJ” Manas (billiards), Carl Eldrew Yulo (gymnastics), Ruelle Canino (chess), Kheith Rhynne Cruz (table tennis), Marc Dylan Custodio (bowling), Mark John Lexer Galedo (cycling), Lovely Inan (weightlifting), Philippine baseball team, Centennial 7 (sailing), Jessa Mae Tabuan (powerlifting) and Ramon “Tats” Suzara (volleyball).
The Filipino paddlers were overall champions in the International Canoe Federation Dragon Boat World Championships in Puerto Princesa City, while the Volcanoes scored swept the men’s and women’s titles of the Asia Rugby Emirates Sevens Trophy in Nepal. Colonia bagged gold medals in snatch and total lift in the 45-kg class of the International Weightlifting Federation World Junior Championships in Spain, Butler did the same in the 18-under -57 kgs class of the JJIF World Championships in Heraklion Greece, and Ramirez and Tabuan went home with gold medals in their respective campaigns in the World Open Equipped
Powerlifting Championships in Iceland and World Juniors Powerlifting Championships in Malta.
The Cool Smashers underscored their dominance by sweeping all three tournaments of the Premier Volleyball League, as Yulo had another fruitful gold harvest in the Men’s Artistic Gymnastics Championships in Uzbekistan, Pacific Rim Championship in Cali (Colombia) and Hong Kong Invitational. Canino topped the National Women’s Championship and helped Team Philippines snare the Group B gold in the Budapest Chess Olympiad, Inan scored a couple of golds in the IWF World Juniors Championships in Spain and Cruz provided Philippine table tennis a new milestone in ruling the Under-19 girls’ singles division of the WTT Youth Contender Westchester in New York and sweeping all medal classifications from different events in the US Table Tennis Open in Las Vegas. Over in Vietnam, Chua ruled the Hanoi Open 9-Ball Championship and played a key part in Team Asia beating Team Europe for the inaugural Reyes Cup, while Manas topped the 99 Billiards Club Tournament in the same country. C ustodio emerged champion in the 10th DIBC-Delta Open Bowling
D jokovic said he wanted an apology from Channel 9 and Tony Jones, who called the 24-time Grand Slam champion overrated and a hasbeen during an on-air appearance at Melbourne Park where a crowd of the player’s supporters were chanting.
Djokovic, a 37-year-old from Serbia, did not name Jones, but said a “famous sports journalist who works for official broadcaster, Channel 9...made a mockery of Serbian fans and also made insulting and offensive comments toward me.”
Djokovic said he would continue to avoid speaking to the network.
“I leave it to Channel 9 to handle this the way they think they see fit. That’s all,” Djokovic said.
Australia’s Nine Network issued a statement Monday and apologized to Djokovic “for any offense caused from comments made during a recent live cross.”
“No harm was intended towards Novak or his fans,” the statement said. “We look forward to further showcasing his Australian Open campaign at Melbourne Park.” Jones appeared on the Today program Monday to apologize, and said he meant the comments as “banter.”
“I considered it to be humor, which is consistent with most things I do,” he said. “Having said that, I was made aware...that the Djokovic camp was not happy at all with those comments.
“I immediately contacted the Djokovic camp and issued an apology to them. And as I stand here now, I stand by that apology to Novak.”
Jones also apologized to any Serbian fans who didn’t interpret his comments as humorous.
“I do feel as though I’ve let down the Serbian fans,” he said. “I’m not just saying this to try and wriggle out of trouble or anything. I genuinely feel for those fans.”
So, I can only again tell Novak what I told him 48 hours ago. And that is I do apologize if he felt that
I disrespected him.” After beating Jiri Lehecka in three sets at Rod Laver Arena on Sunday to reach the quarterfinals, Djokovic was expected to speak to former player Jim Courier on television. Instead, Djokovic held the microphone and told the crowd: “Thank you very much for being here tonight. I appreciate your presence and the support. I’ll see you next round. Thank you very much.” Later, at his news conference, Djokovic began with a statement, telling reporters why he didn’t do the interview and clarifying he was upset by Jones and the broadcaster, not Courier or the fans in the stadium. H e said that he also spoke to Craig Tiley, the CEO of Tennis Australia, about the
NLEX Road Warriors out of slump
Robert Bolick—fully recovered from
LPG’s Ricci Rivero and Tyler Tio in the Road Warriors’ 108-94
Richard Whitehead MBE
Angels try to extend win streak against Crossovers
PGazz aims to pick up where it left off as it tangles with Chery Tiggo in the Premier Volleyball League’s All-Filipino Conference Tuesday at the PhilSports Arena. The Angels are brimming with confidence from a four-match winning streak before the holiday break in their 6:30 p.m. showdown against the Crossovers. The Angels capped their run with a dominant sweep of the previously unbeaten Cignal HD Spikers last
B ut seven teams are closely packed behind Petro Gazz with Chery Tiggo—4-2 with 10 points—as the most imminent threat.
C ignal, meanwhile, aims to bounce back from its only loss so far when it faces Galeries Tower at 1:30 p.m., while Creamline tries extend its unbeaten record to five matches in a
showdown against Capital1 at 4 p.m. Facing a formidable lineup led by Brooke Van Sickle, Myla Pablo and MJ Phillips, the Crossovers strengthened their roster with the addition of former Cool Smasher Risa Sato.
Known for her exceptional skills and talent as a middle blocker, Sato brings a wealth of experience that is expected to bolster the Crossovers’ campaign. Her presence will be instrumental in complementing key players Cess Robles, Aby Maraño, Pauline Gaston, Shaya Adorador and Ara Galang that will provide depth and versatility to the rotation.
T he Crossovers maximized their one-month break by focusing on strength and conditioning.
“Each player was tasked with maintaining her strength and conditioning routines during the break,” Chery Tiggo coach Norman Miguel said. “To ensure accountability, they submitted video updates to our strength and conditioning coaches for monitoring.” The Cool Smashers—led by Bernadeth Pons, Jema Galanza, Alyssa Valdez, Bea de Leon and Michele Gumabao—remain the heavy favorites against the struggling Solar Spikers (1-4), while the HD Spikers, who slipped to second in the standings, are coping with roster challenges following the departures of Ces Molina and Riri Meneses.
PNVF president Ramon “Tats” Suzara and Jeon Yongjun (fourth and fifth from left) with PNVF secretary-general Donaldo Caringal (right) and marketing head Raoul Floresca (fourth from left) and top officials of the NEOCOLORS P&A Inc. in Seoul.
AUSTRALIA’S Nine Network apologizes to Novak Djokovic—seen here being sought for an interview by Jim Courier—saying “no harm was intended towards Novak or his fans.”
