Pulse of the Day

STRIVING to maintain its standing as the premiere chapter of the Integrated Bar of the Philippines (IBP), the IBP Quezon City (QC) chapter is electing its new officers and establishing new projects and platforms to further elevate the standards of the legal profession in its city. For this year's elections, the team of incumbent officers seek to cement IBP QC's legacy of excellence through Team Ilagan-Constantino. Leading Team Ilagan-Constantino are Rowell Ilagan for president and Jeffrey Constantino for vice president at the IBP Quezon City elections on Saturday Feb. 22, 2025. Together, the team will be #BackForMore to uphold the tradition of excellence and aim for the historic three-peat Best Chapter. Ilagan is well known as one of the Philippines' top 100 lawyers for 2022 to 2024, according to the Asia Business Law Journal. He is also the managing partner at Gargantiel Ilagan and Atanante law firm, a professor in San Beda, Alabang and a bar lecturer at the Legal Edge Bar Review Center. He is also the incumbent public relations officer (PRO) of IBP QC. Constantino is a partner at the Cadiz Tabayoyong Hilado and Constantino Law Office, an investigating commissioner at the IBP Commission on Bar Discipline, a managing editor of the IBP Journal, a accredited arbitrator of the Philippine International Center for Conflict Resolution (PICCR) and a trained tribunal secretary at the Hong Kong International Arbitration Center. He is also the auditor and Legal Aid Committee chairman of IBP QC. Other candidates include QC Regional Trial Court (RTC) Branch 302 Public Attorney Mark Angelo Dante Palattao V; IBP QC Assistant Treasurer and Executive Committee member and San Beda Legal Aid supervising lawyer Cynthia Corazon Roxas; ALAM Law Managing Partner and Energetix Power Technologies Corp. acting Treasurer and IBP QC Director Adonis Edgar Macam; IBP QC Director and Legal Aid Clinic head and Jara Law Office Managing Partner Marie Cielo Cenidoza; Vasig, Abarquez, Lumaig, Abarquez & Puno Law Offices founding partner and PDRCI-trained arbitrator Paolo Abarquez; Office of the Presidential Adviser on Peace, Reconciliation and Unity attorney Charis Antalan; Office of Senator Bong Go Deputy Chief of Staff and San Sebastian College - Recoletos Law professor Deiyeane Lim; V&A Law partner Antonio Miguel Lu; and retained legal counsel for various companies Anthony Julian Purganan. The team's platforms and programs for 2025 to 2027 are centered on four main categories: members' welfare and protection, legal aid and community impact, professional growth and global engagement, and innovation and organizational excellence. As of now, the IBP QC chapter has made notable projects and programs for its members and constituents. These include the donation of video conference equipment to the RTCs of QC, insurance and a free annual physical examination health card for its members, a barangay legal aid caravan, free flu vaccines for members, crusade against illegal notaries, and a traffic and road etiquette education program, called "Tamang Asal sa Kalsada (right conduct on the road)." The IBP QC chapter has also established international partnerships with the Ilustre Colegio de la Abogacia de Barcelona (Barcelona Bar Association) in Spain and the Saitama Bar Association in Japan. Currently, the IBP QC chapter has 11,958 members.

"Just showcase your ability. Anyone can talk about this plan or that, but not everyone will execute. So just execute. Plans are cheap." AT just 24 years old, David Benjamin Mariano Fugnit is the chief financial officer and co-founder of Able, a burgeoning clothing company. Despite being only a few months old, Able is already making waves, driven by Fugnit's entrepreneurial spirit and his focus on building a strong community around the brand. Fugnit's path to entrepreneurship began during his time at the Hult International Business School in the United States, where he earned his degree in Business Administration. "My first two years of college were spent in San Francisco, and there's a real culture of starting businesses there that I believe rubbed off on me," Fugnit explains. Returning to the Philippines, he sought opportunities to stay engaged and productive. Even at a young age, Fugnit understood the importance of selling more than just a product. "The idea that you can be bold and still pursue goals you may be contemplating — that's what Able is all about." This vision resonated with his former elementary classmate, Sophia Eslabon, who presented the concept of launching a clothing brand. Recognizing the business potential, Fugnit immediately jumped on board. Initially, Fugnit and Eslabon handled all operations themselves. As the company grew, they brought on a third person to manage marketing and implemented a clear division of labor to maximize their effectiveness. Launching Able required significant effort from the small team. Preparations included building a website, sourcing raw materials, engaging with suppliers, conducting market research and developing a comprehensive business plan. Fugnit focused on the financial side, setting goals and establishing milestones to track progress. "We are ecstatic that we have been able to attract customers beyond friends and family," he shares. "We were also recently featured on Vogue's website and magazine, and the reception to our messaging and presentation has been fantastic." Of course, starting a business comes with challenges. For Able, the biggest hurdle has been sizing, particularly for women's clothing. "Men's styles don't vary too much," Fugnit explains, "but with women's clothing, the diverse styles and need for different sizes can be a concern." Able is focusing on measurements tailored to their target market of 16- to 26-year-olds, a process that Fugnit acknowledges will require refinement. As a newcomer to the fashion industry, Fugnit immersed himself in research, studying trends and ensuring Able was entering a healthy and growing market. He also engaged in extensive discussions with potential partners and collaborators, tackling the complexities of logistics and marketing. Being a young entrepreneur, Fugnit has faced questions about his abilities due to his age. His response is always confident. "Just showcase your ability. Anyone can talk about this plan or that, but not everyone will execute. So just execute. Plans are cheap." With Able's early success and Fugnit's drive, it's clear that he's doing just that. * * * QUICK QUESTIONS WHAT IS YOUR GREATEST FEAR? Not being enough. WHAT REALLY MAKES YOU ANGRY? People mistreating others. Everybody is on his or her own path. WHAT MOTIVATES YOU TO WORK HARD? The commitment I saw my parents had to my brother and me. I want to provide the same to them and, in the future, my own family. WHAT MAKES YOU LAUGH MOST? The dumbest things. WHAT DID YOU WANT TO BE GROWING UP? I am a kid from the Philippines. Of course, I wanted to be an NBA player. I joined college wanting to be an accountant like my dad, but I shifted to Finance after I fell in love with valuation. WHAT WOULD YOU DO IF YOU WON THE LOTTO? Set aside for taxes and buy/build my parents their dream home. Maybe even buy my Kuya Bi a car of his choice (subject to approval, of course). IF YOU COULD SHARE A MEAL WITH ANY INDIVIDUAL LIVING OR DEAD, WHO WOULD, HE, SHE OR THEY BE? Can I cheat? I'd like a complete boodle fight with my Mariano clan. WHAT IS THE MOST DARING THING YOU HAVE EVER DONE? Haha, I jumped the rail of a 27-story building to look over the ledge with my buddy Ethan just to say I'd done it. WHAT WAS THE LAST BOOK YOU READ? "The Power of Habit" by Charles Duhigg. WHO IS THE CELEBRITY YOU WOULD LIKE TO MEET FOR COFFEE? Denzel Washington. WHAT IS ONE THING YOU WILL NEVER DO AGAIN? Accept things at face value. WHERE DO YOU SEE YOURSELF IN THE NEXT 10 YEARS? Watching TV with my kids in our own home after getting home from work. You will have to ask my future wife which country that will be in.

MOTOR vehicle sales rose in January from a year earlier, automakers reported on Thursday, raising industry confidence that a new record would be hit in 2025. A total of 37,604 units left showrooms last month, 10.4 percent higher than the 34,060 sold in January last year, figures from the Chamber of Automotive Manufacturers of the Philippines Inc. (Campi) and the Truck Manufacturers Association showed. While the count was 10.6 percent down from December when sales normally spike ahead of the Christmas holidays, Campi President Rommel Gutierrez said automakers were confident of hitting this year's sales goal of 500,000 units. "Newly rolled out models and anticipated introduction of new models are some of the factors that will contribute to achieving this target," he said in a statement. Automakers sold a total of 467,252 units in 2024, a record high, but missed a revised sales target of 500,000 and also their initial goal of 468,300 units. Commercial vehicles continued to drive sales with buyers snapping up 29,875 units in January. This was 16.6 percent more than the year-earlier 25,614, but down 6.4 percent from December's 31,919. Passenger cars, meanwhile, registered sales of 7,729 units, down 8.5 percent from 8,446 in January 2024 and by an even steeper 23.66 percent from 10,125 last December. Toyota Motor Philippines Corp. continued to dominate the industry with 18,078 units sold last month, enough for a 48.07-percent share of overall sales. The tally was up 12.3 percent year on year, but fell 10.8 percent from December. Mitsubishi Motors Philippines Corp. remained second with sales of 7,374 units or 19.61 percent of the market. Sales fell by 4.5 percent from the previous month, but improved 21.2 percent year on year. Nissan Philippines Inc. gained one spot to third with 2,366 units sold during the month, enough for a 6.29-percent market share. Sales were down 3.9 percent from last year, but rose 4.8 percent compared to December. Rounding out the top five were Suzuki Philippines, which also rose one spot with sales at 1,781, up 19.9 percent year on year and equivalent 4.74 percent of the market and Ford Motor. Co, which dropped two places with 1,577 units, down 36.1 percent, for a 4.19-percent market share.

TARIFFS on merchandise imports announced by US President Donald Trump will likely have a minimal impact on the Philippine economy, an S&P Global Ratings analyst said, but this could change if Washington's protectionist policies extend to services. "I think, thankfully for the Philippines, the export component of the economy is not large," S&P Global Ratings lead analyst Ivan Tan said in a briefing on Thursday. He noted that Trump's tariffs had so far targeted goods and so the overall impact on the Philippine economy — and by extension the banking sector — would be limited. "The Philippines' economy is mostly domestic and driven by consumption as well. So, largely, any impact will not be big," Tan said. However, the services sector — particularly overseas Filipino workers (OFWs) and business process outsourcing firms — could be vulnerable if protectionist measures are widened. Tan noted that the country's strong English proficiency and educational system had positioned it as a major supplier of skilled labor to the United States, including health care professionals and information technology workers. With dollar remittances making up a significant portion of gross domestic product, any policy shift targeting services could pose a downside economic risk. OFW remittances hit a record $38.3 billion last year, 3.0 percent 3.0 percent higher than $37.21 billion recorded in 2023 and also exceeding the central bank's $34.5-billion target. The US accounted for the biggest share (40.6 percent) of overall remittances last year. "Trump tariff policy is mostly [concentrated] on goods. He hasn't targeted the service [sector] yet, right?," Tan said. "So that's not our base case, but should he turn his attention to the services industry, then that is where we need to relook at and think about the potential impact on the economy and, of course, the flow-on impact on the banks," he added. With external threats manageable, Tan said that Philippine banks were navigating domestic risks stemming from a shift in lending strategies. He said that there was an increasing pivot toward consumer loans, which offer higher yields but also carry greater risk, from low-yield but stable corporate loans. "[T]here is a little bit of risk on at this point, so we are looking closely at that," Tan said, but added that "it's gonna take some time before the consumer loans become a larger, more meaningful portion of their balance sheet."

THE country's balance of payments (BoP) stayed in deficit in January with the gap the widest in 11 years, the Bangko Sentral ng Pilipinas (BSP) reported on Thursday. The $4.1-billion shortfall, which rose from the year-earlier $740 million and December's $1.5 billion, was the biggest since January 2024's $4.48 billion. The result was due to "net foreign exchange operations and drawdowns by the national government on its foreign currency deposits with the BSP to meet its external debt obligations," the central bank said in a statement. The BSP is aiming for a $2.1-billion BoP surplus this year. It missed the 2024 target of a $2.1-billion surplus, only netting $609 million. The BoP is a summary of a country's transactions with the rest of the world for a specific period. It consists of the current account, which covers trade in goods, services and primary and secondary income (which includes OFW remittances); the capital account — capital transfers and nonfinancial assets — and the financial account or investments from abroad. The BoP deficit weighed on the country's gross international reserves (GIR), which the BSP said dropped to $103.3 billion as of end-January from $106.3 billion last December. Despite the decline, the central bank said that the GIR level represented "a more than adequate external liquidity buffer equivalent to 7.3 months' worth of imports of goods and payments of services and primary income." "It is also about 3.7 times the country's short-term external debt based on residual maturity," it added. The central bank also fell short of its $109-billion GIR target last year, recording only $106.84 billion. For 2025, the BSP has hiked its reserves projections to $110 billion from $107 billion. Sought for comment, Rizal Commercial Banking Corp. chief economist Michael Ricafort said both the BoP and GIR declined due to increased market volatility, driven by potential protectionist policies announced by US President Donald Trump and geopolitical risks. "For the coming months, BoP and GIR data could improve, largely due to the $3.3 billion additional foreign commercial borrowings made by the national government in the latter part of January 2025," he said.

SINGAPORE — Saudi Arabia's Aramco has signed an agreement to acquire a 25-percent equity stake in Unioil Petroleum Philippines, the company said in a statement issued late on Wednesday. The company, however, did not disclose financial details of the transaction. Established in 1966, Unioil is a downstream fuels operator with a network of 165 retail stations and four storage terminals in the Philippines, the statement said. The deal follows Aramco's previous retail acquisitions in Chile and Pakistan. Aramco said the Unioil stake acquisition represented further progress in its strategic downstream expansion and growth of its global retail network. It added that the deal aimed to capitalize on anticipated growth of the high-value fuels market in the Philippines, and that it planned to extend its brand and retail offerings such as Valvoline-branded lubricants to select retail stations in the country. "Our international expansion aims to capture additional value and enhance our participation in vibrant economies, in collaboration with established partners," Aramco Executive Vice President Yasser Mufti said. "We are delighted to embark on the next stage of this journey with Unioil, a dynamic player in the fast-growing Philippines fuels market," he added. Unoil CEO Janice Co Roxas-Chua, meanwhile, said: "We are delighted with this new partnership with Aramco, which represents a major milestone in Unioil's 58-year history." "We are confident that this will equip ourselves in accelerating our growth and development, further innovate and strengthen our position as a leader in the wholesale and retail fuels market." WITH A REPORT FROM ED PAOLO SALTING

THE Davao City-based Maylong Enterprises Corp. has started exporting frozen durian meat and paste to China, as approved by the latter's General Administration of Customs. Last week, Maylong — the first Philippine enterprise to export the fruit to China — shipped 1,050 boxes of frozen durian meat and 300 boxes of durian paste with a total value of P8.2 million to the Nansha District of Guangzhou. The breakthrough is the result of a collaboration between the Department of Agriculture–Regional Field Office 11 (DA-RFO 11) and the Bureau of Plant Industry's (BPI) Plant Quarantine Service in the Port of Davao. The agencies facilitated the process of compliance to China's strict import regulations. DA-RFO 11 Regional Executive Director Macario Gonzaga said this is not only an achievement for Maylong, but also a milestone for Philippine agriculture and the local durian industry. "From the fertile soils of [the] Davao Region to China's bustling markets, our frozen durian represents the hopes and dreams of countless farmers. This achievement showcases what we can accomplish through shared vision and purpose," he said. Maylong's chief operating officer (COO) May Li said the company is committed to empowering durian farmers in Davao to gain international market access for their products: "Our goal is to bridge the gap between local farmers and the global stage, ensuring that Philippine durian earns the recognition it truly deserves." Stakeholders celebrated the achievement and emphasized the importance of meeting production standards. Durian Industry Association of Davao City (DIADC) president Emmanuel Belviz said quality control of exports is necessary to protect the reputation of Philippine durian in global markets. Durian Exporters Association of the Philippines (DEAP) president Larry Miculob pointed out that durian plays a crucial role in sustainable agriculture, cultural heritage, and national pride. Plant Quarantine Service Port of Davao officer-in-charge (OIC) regional manager Flor de Hasmin Bayo expressed admiration of Maylong and local durian farmers for perseverance in meeting China's strict import standards. "This would not have been possible without their unwavering commitment to excellence and compliance," she said. The DA said it is a step in strengthening the country's presence in global markets, offering opportunities for growth and supporting the country's reputation as a leading producer of high-quality durian.

WASHINGTON — President Donald Trump's initial policy proposals raised concern at the Federal Reserve about higher inflation, with firms telling the US central bank they generally expected to raise prices to pass along the cost of import tariffs, policymakers said at a meeting held about a week after Trump's January 20 inauguration. Participants at the US central bank's January 28-29 meeting "generally pointed to the upside risks to the inflation outlook," rather than risks to the job market, according to the minutes from the meeting, which were released on Wednesday. "In particular, participants cited the possible effects of potential changes in trade and immigration policy, the potential for geopolitical developments to disrupt supply chains, or stronger-than-expected household spending." While still having faith that price pressures will ease in coming months, "other factors were cited as having the potential to hinder the disinflation process," the minutes said, including the fact that "business contacts in a number of [Fed] districts had indicated that firms would attempt to pass on to consumers higher input costs arising from potential tariffs." Participants also noted that some measures of inflation expectations, a key concern for the Fed, "had increased recently." In comments to Yahoo Finance after the release of the minutes, Atlanta Fed President Raphael Bostic walked through the tangle of issues the Fed is trying to unravel. Business leaders are telling Fed officials they want to raise prices but are uncertain how consumers will respond; tariffs may add to costs, but steps to deregulate some industries may offset those pressures. At this point, Bostic said, the net result for policymakers is less confidence about what comes next. "I had an outlook that 2025 would proceed at a very positive level. We'd see solid growth. We'd see inflation continue to move to 2 percent, we'd see labor markets stay solid," Bostic said. "Now, all this potential change... means that the confidence bands, the precision of that estimate... has reduced somewhat and we'll just have to see how things play out." Financial markets were little changed after the release of the minutes, with interest rate futures indicating the Fed's likely first, and perhaps only, rate cut of 2025 would occur in July. US stocks wavered between slight gains and losses. Policymakers at last month's meeting agreed they should hold interest rates steady until it was clear that inflation, largely stalled since the middle of 2024, would dependably fall to the central bank's 2-percent target. The uncertainty surrounding Trump's plans has added to their reluctance to reduce rates any further. "It's clear from the minutes that rate cuts are not happening anytime soon, and the Fed will likely wait for some of the dust to settle on tariffs before providing better forward guidance," said Ryan Sweet, chief US economist at Oxford Economics. "The minutes support the recent changes to our baseline forecast that the Fed will be cautious this year, cutting rates only once in December." A "few" officials, Sweet noted, even hinted that there may not be much more room to cut, given the uncertainty about where the Fed's proper stopping point may be. Fed staff had already changed their outlook at the December 17-18 meeting to show expected slower growth and higher inflation based on "placeholder assumptions" about Trump's likely actions when he began his second term in the White House. The president started providing details in his first days in office, including proposed 25-percent tariffs on Canada and Mexico, and a lockdown of the US.-Mexico border. The Fed kept its benchmark interest rate in the current 4.25- to 4.50-percent range at its meeting last month, and officials since then have said they are in no rush to cut rates again until they are more certain inflation will decline to the 2-percent target from current levels around half a percentage point above that level. In another sign of how fiscal policy may impact central bank decision-making, the minutes said "various" policymakers noted it may be appropriate to consider slowing or pausing the Fed's ongoing shrinking of its balance sheet in light of federal "debt ceiling dynamics." Current federal funding runs out after March 14, and lawmakers will need to act by the summer to raise their self-imposed debt ceiling or risk a default. Fed officials used the January meeting to kick off what's expected to be a months-long review of the central bank's policy framework, including potential revisions to the policy statement's focus on the risks to the economy when the benchmark interest rate is near the zero level. They also made it clear they would not change their commitment to a 2-percent inflation goal, or to achieving maximum employment. The review is expected to wrap up by the end of next summer, the minutes said.

The peso rose anew on Thursday, strengthening by 14 centavos to close at P57.915 against the dollar, but the benchmark Philippine Stock Exchange index (PSEi) lost 53.25 points, or 0.87 percent, to end the day at 6,066.63. The currency opened trading at P58.03:$1 and ranged from P57.915 to P58.05. Volume reachedP1.412 billion, higher than the previous day's P1.25 billion. Rizal Commercial Banking Corp. chief economist Michael Ricafort said the peso strengthened following the release of the minutes of last month's US Federal Reserve meeting during which interest rates were kept unchanged. "The peso also strengthened vs. the US dollar amid improved US market risk appetite after US stock markets again slightly higher," he added. Philstocks Financial Inc. research manager Japhet Tantiangco, meanwhile, said "the local market joined its regional peers in the decline as investors dealt with US President Donald Trump's latest tariff threats on auto, semiconductor, and pharmaceutical imports." The broader All Shares closed basically flat, down 3.38 points, or 0.09 percent, to 3,671.62. "Investors also digested the Federal Reserve's latest minutes of the meeting wherein they expressed concerns over the new US government's trade and immigration policies and their effect on the US' inflation," Tantiangco said. The day's trading was described as "quite active" with net value turnover at P5.58 billion, higher than the year-to-date average of P5.21 billion. "Foreigners were net sellers with net outflows at P601.30 million," Tantiangco added. DragonFi Securities, Inc. analyst Franco Fernandez said "investors took profit as uncertainty over President Trump's tariffs plans and the BSP's (Bangko Sentral ng Pilipinas) policy easing path remained with no fresh catalyst driving the local market, aside from fourth quarter earnings." "Investors likely took a cautious stance as the US Federal Open Market Committee minutes revealed that officials are still worried about the tariff's impact on inflation and decided to keep rates steady for now," he added. Regina Capital Development Corp. Managing Director Luis Limlingan said "Philippines shares fell below 6,100 once again as the market took cues from a cautious [Fed] and ... Trump's threat of a 25 percent tariff on imported autos, semiconductors, and pharmaceuticals, which could take effect as early as April 2." "Meanwhile, the latest Fed minutes revealed that officials seek more progress on inflation before cutting rates and are wary of the economic impact of potential tariffs," he added. All sector indices but one closed in the red, with property down the most by 2.56 percent. Financials was the sole gainer, up 0.58 percent. On a company basis, decliners outnumbered gainers, 113 to 74, while 58 were unchanged.

ON Feb. 6, 2025, a giant in the field of urban planning and transportation, Prof. Donald Shoup, left us. Donald Shoup was a professor of urban planning at the University of California, Los Angeles. He is best known for his seminal piece, "The High Cost of Free Parking," where he explained the many negative consequences of building regulations that require buildings to have a minimum number of parking spaces for cars. These rules, also known as "parking minimums," are an unfortunate and harmful practice, borrowed from the US and currently included in the Implementing Rules and Regulations (IRR) of the Philippines' National Building Code. In the IRR, for example, shopping centers should provide one parking slot per 100 square meters of shopping area; restaurants, bars and fast-food outlets should provide one parking slot per 30 sqm of customer area; and an office building should provide one parking slot per 125 sqm of gross floor area. Parking minimums favor those with cars and penalize those without. Policies that require buildings to have parking make all of us pay higher prices so that people with cars have more convenient travel. Because every building is required to have a minimum number of parking spaces, building costs end up higher than if there were no parking requirements. Parking spaces consume valuable floor area and can add up to 20 percent to the cost of a building. The extra costs of the mandated parking spaces need to be compensated by charging higher rents that are, in turn, recovered through higher prices of goods and services. By assuring car users of parking spaces in most buildings, the general public ends up paying the tab for such, whether or not they use cars. This is akin to a subsidy for the affluent financed by a tax on the entire population. Please note that in the Philippines, only six percent of households are car owners. Accordingly, parking minimums are not only socially unjust and inflationary, they also lead to worsening mobility for all. The prescription is not to ban parking spaces, but to grant each building owner the flexibility to decide how much parking is needed. Every property developer or builder should be able to determine the number of parking spaces appropriate for the particular local circumstances. In a Jan. 6, 2024 column entitled "Ateneo's Parking Lessons," I wrote about the university's parking expansion — converting green open space into more car parking by removing 82 trees for an additional 56 car slots. I included a reference to Shoup and his work: "In particular, free parking becomes a 'magnet' for motorists, as car users are drawn to areas where they believe parking will be available at minimal or zero cost. Free parking provides a subsidy for those in cars, while costs of parking infrastructure end up being unfairly shouldered even by those who are not car users. [For those interested in the features of sound parking policy, please look up Donald Shoup (www.shoupdogg.com) or Paul Barter (www.reinventingtransport.org) for their insights on how parking reform can make our cities and communities more livable.]." The next day, the first person to comment on my column by email was Shoup. He wrote: "I like your article in the Manila Times. Here are the links to two articles that may help in your activism: https://doi.org/10.1177/0739456X221141317 [and] https://transfersmagazine.org/magazine-article/issue-11/parking-thats-just-right/." Both provide guidance on the pricing of on-street parking spaces and possible uses of the additional revenue. According to Shoup, on-street parking should be priced high enough and on an hourly basis so that people park for only a few hours, not for an entire day — at a level that results in an enough turnover to leave an average of one or two spaces empty per street block during business hours. This "Goldilocks" approach thereby brings more customers to local businesses. He also suggested that part of the revenues collected should directly benefit the streets and neighborhoods where the fees are collected — could be spent on things like sidewalk improvement, shade trees, street lighting, better signage and CCTV cameras. Shoup's fans in Manila would be interested to know that he visited the Philippines briefly as a teenager. In his email, he wrote: "I haven't been to Manila since 1951, so I'm sure the parking problem is worse than when I last saw it. My father was in the Navy and he was stationed in Guam from 1950 to 1952, during the Korean War. While we lived in Guam, my mother and I visited Manila for a few weeks. We had been scheduled to visit Baguio too, but had to skip that because the drive up to it was considered too dangerous during the Huk rebellion." All over the world, countries and cities are doing away with parking minimums and reaping the benefits. The Philippines should do the same. Removing parking minimums from the National Building Code will not even require legislation as the requirements are only mentioned in the code's IRR, not in the law itself. As Donald Shoup advised, we need to get our parking policies right if we want more affordable housing, better mobility, walkable cities and generally lower prices. Robert Y. Siy is a development economist, city and regional planner and public transport advocate. He is a co-convenor of the Move As One Coalition. He can be reached at mobilitymatters.ph@yahoo.com or followed on X at @RobertRsiy.

THE Department of Agriculture (DA) has added a new term to the economic and business lexicography: "maximum suggested retail price" or MSRP. It is obviously a variation of "suggested retail price" (SRP), the recommended amount that a retailer should sell a product for. SRPs are meant to standardize prices across different stores and locations to protect consumers from abusive retailers. However, retailers are not always required to follow it and can set their own prices based on various factors, such as competition, location, and demand. The MSRP, on the other hand, puts a ceiling on the price that retailers can impose on buyers. In other words, SRP is tantamount to a "floor price" while MSRP acts as a "ceiling price." But does the MSRP really protect the interest of consumers? The answer is no. While it puts a cap on prices retailers can charge buyers, it does not do the same for wholesalers when pegging the price of the supply they provide to retailers. It is obvious that if the ultimate goal is to reduce prices, the first step is to ensure that prices at the source (i.e., wholesalers) are low, which the MSRP does not guarantee. The law of "supply and demand" tells us that when supply is abundant, prices will go down. Conversely, when demand is higher than the supply, prices will rise. In the case of rice, official government data shows there is ample rice supply, yet prices curiously remain high. My past columns in this paper have repeatedly pointed out that a rice cartel controls the timing of the release of supply from their stocks to maintain high prices. The problem can be addressed by allowing more market players in the rice importation business. For instance, the government can appeal to big supermarket chains, which have modern and complete logistical facilities, to import as much rice as they can at very low prices from the international market to flood the local rice market. Alternatively, why can't the Department of Trade and Industry help determine the SRP formula for rice, as it does for prime commodities, based on purchased price and wholesale price? Importers and traders should then be required to indicate the SRP in the bags of local and imported rice. Most imported rice are now shipped in bags specified by importers. By displaying the SRP, the Bureau of Customs can also determine the right tariff based on the declared purchase cost, wholesale price, and SRP. Data from the United Nations Food and Agricultural Organization indicates that 5 percent of broken Vietnamese rice fetched an average price of $416 per metric ton (MT) in January (reaching a low price of $399) compared to more than $550 per MT in mid-2024. If the DA pursues the recommendations, these can break up the rice cartel. Otherwise, it is a clear indication of whose interest government officials are trying to protect. This is probably the reason for "MSRP" — to project the image of what pundits refer to "as if doing something" about the problem. In reality, however, it is a backhanded protection of the rice cartel. I expect repeated application of MSRPs in the coming weeks and months on other agricultural commodities where the country is experiencing shortages, as it is becoming clearer that the Philippine agricultural import policy has become pro-trader and anti-consumer. Just recently, the DA issued Department Circular 03, Series of 2025, which declared a "food security emergency on rice due to extraordinary increases in prices." At face value, no one can contest the general argument of the order. However, the problem lies in the fact that its "whereas" clauses cite obsolete data, elaborating on the rising rice prices and inflation almost a year ago, but not taking into account the recent declining trend in global rice prices. Obviously, the food security emergency on rice is meant to trigger the release of stocks held by the National Food Authority (NFA). The Rice Tariffication Law stipulates that the NFA should build a buffer stock for emergency purposes only and that this stock should come from procurement of the harvests of local farmers. It cannot, therefore, release its stock without a declaration of an emergency situation. The DA has announced it will sell regular milled rice (25 percent broken) in the government's Kadiwa stores and through the local government units. Given that the NFA's buffer stock is only 300,000 MT, it will meet around nine days of total rice consumption demand if supply is distributed nationwide. But even if selling is confined to selected urban areas, it will be difficult to sustain it for 30 days. Maybe it will be enough to give some semblance of availability of cheap rice before the May 2025 elections in vote-rich areas. There is no way that the DA can fulfill its announced goal of distributing low-priced rice to poor consumers for six months without bankrupting the government. At a price of P35 per kilo, the government loses around P12 to P15 or more than P4 billion if all the NFA stock is sold. This leads us to the real reason behind the DA's request to the Office of the President that the NFA's authority to import should be restored during the food security emergency. The DA knows that NFA is not capable of procuring supply from local farmers fast enough to replenish its stock. The cost of imported rice is also cheaper than local produce considering current international rice prices. The NFA has to resort to importation, which RTL specifically abolished due to reported widespread corruption in past transactions. Undoubtedly, restoring NFA's authority to import will again grease the palms of wholesalers and big traders and people who handle the logistics of buying, shipping, and distributing rice from Vietnam (where almost 90 percent of Philippine rice imports originate). Email the author at fdadriano88@gmail.com

BANGKOK — Thailand topped the list of most visited countries in Southeast Asia in 2024 with 35.5 million international tourist arrivals. It was also the world's eighth most popular destination in 2024, according to global rankings compiled by the United Nations World Tourism Organization. Winners of the 17th Bright Leaf Agriculture Journalism Awards are in town as part of their prizes from PMFTC Inc., the business combination of Philip Morris International and Fortune Tobacco Corp. Launched in 2007, the Bright Leaf Awards are given annually to the most outstanding Philippine agricultural stories and photos published nationally or regionally in print, broadcast, and online media. The awardees' itinerary, arranged by Subic-based Bella Vita Trips, included a dinner cruise along the Chao Phraya River; a tour of Wat Pho temple complex near the Grand Palace; and a whole-day trip to the Kingdom of Siam's ancient capital, Ayutthaya. They also traveled south of Bangkok to explore the Maeklong Railway Market in Samut Songkhram province and the Damnoen Saduak Floating Market in Ratchaburi province. Agriculture is a significant sector in the Thai economy, with 40 percent of the country's population working in agriculture-related jobs while agricultural production accounts for more than 10 percent of its gross domestic product (GDP). Thailand's most important crop is rice, which is cultivated by around eight million Thai farmers who have catapulted their nation to become the second largest rice exporter in the world. To think it was at the University of the Philippines Los Baños (UPLB) in Laguna where droves of Thai students studied agriculture from the late 1960s to the early '80s. How ironic that they learned rice production technology from the International Rice Research Institute beside UPLB, while the Filipinos who trained them now suffer from high rice prices aside from being the world's biggest rice importer — projected to reach record highs in 2024-2025 by the Foreign Agricultural Service of the US Department of Agriculture. If it's any consolation, Thailand's economy grew less than expected in 2024. Official data released by Thai Prime Minister Paetongtarn Shinawatra's office this week showed its GDP expanded by only 2.5 percent — one of the weakest recoveries in Asia from the effects of Covid-19, with GDP just over 4 percent above its pre-pandemic levels. In contrast, the Philippine economy posted a 5.6 percent GDP growth in 2024 and is one of the fastest-growing economies in the Asia-Pacific region. Lunar New Year Back home, the Federation of Filipino Chinese Chambers of Commerce and Industry Inc. (FFCCCII) celebrated the Lunar New Year with a dinner reception at the Golden Bay grand ballroom in Pasay City. In the ancient Chinese lunar calendar, 2025 is equivalent to the year 4723 which falls on the Year of the Snake. Led by FFCCCII president Dr. Cecilio Pedro, the Spring Festival event recognized distinguished members of the Filipino Chinese community for their exceptional contributions to Philippine society. Luminaries who were honored at the special awarding ceremony were National Artist Ricky Lee, broadcast journalist Jessica Soho, furniture designer Kenneth Cobonpue, beauty queen Michelle Dee, and sportsman Chris Tiu. This year's reception kicked off the broader celebrations of the 50th anniversary of Philippine-Chinese diplomatic relations on June 5, highlighted by collaborative cultural and economic initiatives of 170 Filipino Chinese chambers of commerce nationwide to strengthen bilateral ties between the two countries. The author is the chief finance officer of Asian Center for Legal Excellence and chairman of the FINEX Media Affairs sub-committee on publications. The opinions expressed in this column do not necessarily reflect the views of these institutions and The Manila Times. Visit www.finex.org.ph

METROPOLITAN Bank & Trust Co. (Metrobank) saw its net income grow 14 percent to a record P48.1 billion last year, backed by robust asset expansion and improved asset quality. "The hard work that all Metrobankers put in growing our corporate, middle market, retail and wealth segments as well as our investments in technology and human resources and risk management initiatives continue to bear fruit," Metrobank President Fabian Dee said in a statement. Net interest income rose 8.7 percent to P114.1 billion, supported by a 17-percent increase in gross loans that outpaced the industry's 12.5 percent. "This positive momentum and our strong balance sheet set us up very well to continuously meet the growing needs of our clients and to pursue our medium-term strategies," Dee said. Increased capital spending by corporates led to a 17.7-percent surge in commercial loans and consumer loans also grew by 14.4 percent, driven by an 18.6-percent rise in net credit card receivables and an 18.2-percent expansion in auto loans. Total deposits grew to P2.6 trillion, with low-cost current accounts/savings accounts accounting for 57.8 percent. Growth in the consumer business drove fee and trust income to reach P18.1 billion, while combined trading and foreign exchange gain amounted to P5.6 billion, up 39 percent year on year. Operating costs grew 11 percent to P77.2 billion, which was attributed to transaction-related taxes as well as manpower, technology and marketing costs as the bank continued to invest in growth. Metrobank's nonperforming loans (NPLs) ratio eased to 1.43 percent from 2023's 1.69 percent, enabling the bank to reduce provisions by 29.2 percent versus the previous year. However, it kept its NPL cover high at 163.5 percent as a substantial buffer against any emerging risks. Metrobank's total consolidated assets stood at P3.52 trillion as of end-2024 while total equity reached P385.5 billion. The capital adequacy ratio stood at 16.7 percent, and common equity tier 1 ratio at 15.9 percent, all well above the minimum regulatory requirements. The liquidity coverage ratio also remained high at 256.1 percent. Metrobank shares rose by P0.45, or 0.63 percent, to P72 each on Thursday amid a 0.87-percent fall for the benchmark Philippine Stock Exchange index.

PROPERTY developer Ayala Land Inc. (ALI) on Thursday reported a net income of P28.2 billion for 2024, up 15 percent from the year-earlier P24.5 billion and also said that it was looking to spend P95 billion this year to bolster its expansion. Last year's income growth, it told the stock exchange, was anchored on solid growth across a diversified portfolio that also resulted in record-high revenues of P180.7 billion. The P95 billion in capital expenditures (capex), meanwhile, will fund developments across the residential, estate, and leasing and hospitality segments. ALI President and CEO Anna Ma. Margarita Bautista-Dy said the company planned to launch P100 billion worth of projects, with P80 billion allotted for residential and the balance for commercial and industrial developments. For residential launches, "we intend to retain the 70-30 split between premium and core," she told a briefing, noting that ALI had shifted its focus to leisure and tourism with several more estates in the pipeline. "We are about halfway done with the reinvention of our flagship malls, and the four hotels under renovation will open this year, and we will start refreshing another four malls and renovating six more hotels this year," she added. Bautista-Dy said the firm was on track to add another 4,000 rooms in five years and was targeting to develop over 15 green logistics parks in the next five years, which will be on land that the company already owns. "Four of the sites will launch this year, and on these logistic parks, we will build a nationwide network of dry warehouses and cold storage facilities," she added. As for its profit results, Bautista-Dy said: "We ended the year on solid footing, with all our business lines executing on their growth strategies." Revenues from property development grew 22 percent to P112.9 billion, driven by higher residential and estate lot bookings, of which P94.9 billion came from residential, P14.6 billion from commercial and industrial lots, and P3.5 billion from its office-for-sale business. Residential sales reservations reached P127.1 billion on resilient demand from the premium segment, horizontal projects and developments in suburban estates. Ayala Land launched P80.5 billion worth of projects, 64 percent of which are located outside Metro Manila, last year. Leasing and hospitality contributed P45.6 billion, 9 percent higher than last year's P41.7 billion, supported by healthy operations of existing assets and the addition of new assets. Shopping center and office leasing revenues grew by 9 percent to P23 billion and P12.9 billion, respectively, while hotel and resort revenues grew 11 percent to P9.7 billion. In 2024, ALI added 72,000 square meters (sqm) of new commercial leasing space and around 25,000 sqm of mall space. The company declared a regular cash dividend of P0.2888 per common share for the first half of 2025, to be paid to shareholders on record as of March 5 on March 21. "We look forward to the year and are excited to bring innovative residential and leasing offerings to our customers, expand our market reach and capture new business opportunities," Bautista-Dy said. Ayala Land also said that its board had approved the raising of P75 billion via retail bonds or corporate notes to partially finance general corporate requirements and refinance maturing debt. ALI Chief Finance Officer Augusto Bengzon said "the fundraising will all be domestic ... P25 billion of that is earmarked for refinancing, [as] we have maturities of P25 billion." The balance of P50 billion, he added, is "on the high side" and subsequent borrowings could be less than that amount. "We'll go to the market for P30 billion, of which half, similar to how we did it before... will go to bank financing, and the other half, we will tap the capital markets," Bengzon said. The P30 billion will be used to fund the new capex budget Shares of ALI fell by P2, or 8.06 percent, to P22.80 apiece on Thursday. FROM A REPORT

GOTIANUN-LED East West Banking Corp. (EastWest) on Thursday reported a record P7.6 billion in net income for 2024, up 25 percent from P6.1 billion in 2023 and attributed to strong consumer loan expansion and robust deposits. "EastWest's strong financial performance is a result of our consistent drive for operational efficiency and customer-centric banking," EastWest President Jackie Fernandez said in a statement. The bank reported an improved return on equity of 10.8 percent, marking a return to double-digit levels as it continued to expand its core income base. For the fourth quarter alone, net income surged 47 percent year on year, driven by its higher revenue-generating capacity. "We have optimized our cost structure, enhanced our digital capabilities and expanded our lending operations to better serve our customers," Fernandez said. "Our disciplined approach to managing risk and costs has allowed us to maintain a strong balance sheet while continuously improving the quality of service we provide." Net interest income grew 19 percent to P33.5 billion, supported by a 16-percent expansion in its consumer lending portfolio that comprised 82 percent of total loans. Deposits expanded to P385.4 billion, maintaining a current account/savings accounts ratio of 81 percent and enabling the bank to achieve a net interest margin of 7.8 percent. Noninterest income grew 20 percent to P8.9 billion, driven by higher transaction fees and trading gains. As a result, total revenues rose 19 percent to P42.4 billion. Operating expenses, meanwhile, rose 16 percent to P23.5 billion, mainly from manpower, IT costs to expand and improve efficiency, and business-related expenses associated with lending activities. Cost-to-income ratio grew by 160 basis points to 55.3 percent as the bank continued to improve its operational efficiency. Total assets stood at P523.7 billion as of end-2024. Loans and receivables rose 13 percent to P336 billion, led by a 38-percent growth in credit cards, 17-percent increase in personal and salary loans, and 5-percent expansion in auto loans. "Our strategic direction is clear — we are committed to scaling our consumer banking business, deepening customer relationships and accelerating digital transformation," EastWest CEO Jerry Ngo said. EastWest shares rose 0.77 percent to P10.50 each on Thursday.

SAN FRANCISCO, California — Tech giant Microsoft unveiled a new computer chip on Wednesday that it says could transform everything from fighting pollution to developing new medicines, joining Google and IBM in arguing that the promise of quantum computing is closer to reality. The US-made chip, called Majorana 1, can fit in the palm of a hand but packs a revolutionary design that Microsoft believes will solve one of the biggest challenges in quantum computing making these super-powerful machines reliable enough for real-world use. "We took a fresh approach and basically reinvented how quantum computers could work," said Chetan Nayak, a senior scientist at Microsoft. The company says its breakthrough was confirmed in research published Wednesday in the scientific journal Nature. The new Majorana 1 chip uses a special approach to building quantum computers that could make them more stable and easier to scale up than the work done by Google or IBM, which are considered leaders in the field. While the chip represents a major advance, Microsoft acknowledges that more engineering work lies ahead before quantum computers become practical tools. However, the company says this breakthrough could make that reality possible within "years rather than decades." Unlike regular computers that process information as 1s and 0s, quantum computers harness the strange properties of atomic particles, measured as qubits, to potentially solve problems that would take today's most powerful supercomputers thousands of years. Microsoft says its new chip design could lead to quantum computers capable of tackling major challenges, like finding ways to break down harmful microplastics in the ocean or developing materials that can repair themselves when damaged. Quantum research is seen as a critical field and both the United States and China have been investing heavily in the area, while Washington has also placed restrictions on the export of the sensitive technology. The US Department of Defense has shown strong interest in the technology, selecting Microsoft as one of just two companies to advance to the final phase of its quantum computing program. Google in December unveiled its Willow quantum chip, which dramatically reduced computing errors and performed a calculation in minutes that would take a traditional supercomputer millions of years, marking a significant advance toward practical quantum computing.

GRAB Holdings forecast its annual revenue below analysts' estimates on Wednesday, as it grapples with intense competition in food delivery and ride-hailing businesses, sending its US-listed shares down more than 9 percent after the bell. The company forecast its fiscal 2025 revenue to be between $3.33 billion and $3.40 billion, the midpoint of which is below the analysts' average estimate of $3.40 billion, according to data compiled by LSEG. Grab faces competition from smaller rivals such as Foodpanda and Indonesia's GoTo in the food delivery space. That only exacerbates worries at a time when consumer sentiment remains weak amid macroeconomic volatilities. Earlier this month, Reuters reported, citing sources familiar with the matter, that the company was in advanced talks to merge with GoTo as they seek to boost market share as a combined entity. "Grab does not comment on media speculation or rumors," Chief Financial Officer Peter Oey told Reuters, adding that the company has a very high bar for mergers and acquisitions. GoTo said that it is not engaged in any discussions about a possible merger transaction. To get ahead in a highly competitive market, Grab has been attempting to boost its subscriber base and drive higher usage on its app, which provides a wide array of services including food delivery, ride-hailing and its fast-growing financial segment. "Our subscriber base retention actually has been very healthy, and we have more subscribers on our platform than ever before," with paid members spending four times more than nonsubscribers, Oey said. Fourth-quarter deliveries revenue came in at $407 million, just below an average estimate of $408 million, while revenue for its mobility segment also missed analysts' estimates. Grab reported overall revenue of $764 million for the fourth quarter, compared with the estimate of $757.6 million.

BEIJING — Chinese technology company Lenovo reported a 20-percent rise in third-quarter (Q3) revenue on Thursday, as the global personal computer industry showed modest signs of recovery. Lenovo, the world's largest PC maker, reported revenue of $18.8 billion for the quarter ended Dec. 31. That exceeded analysts' expectations of $17.82 billion, LSEG data showed. The company's net profit came in at $693 million, against analysts' estimate of $367.7 million. The global PC market is still facing uncertainty following a post-pandemic slump, with shipments growing by a modest 1.8 percent during the fourth quarter of 2024, according to research group IDC. Lenovo maintained its position as the largest PC vendor for the reported quarter, capturing a 24.5-percent market share with shipments growing by 4.8 percent, IDC data showed. The company has diversified beyond its core PC business in recent years, expanding into software and services. It has also positioned itself to benefit from the booming demand for artificial intelligence (AI) applications by growing its AI server and software businesses. Demand for AI-capable computers has emerged as a key growth driver for the PC industry, with manufacturers racing to launch models equipped with specialized chips for AI applications. Last May, Lenovo launched its first AI-powered PCs in China, followed by a global rollout in September. CEO Yang Yuanqing has projected that AI PCs will account for a quarter of Lenovo's shipments by 2025, potentially reaching 80 percent by 2027. Lenovo said earlier this week that it has integrated Chinese AI startup DeepSeek's technology into its devices, including PCs and tablets. Users can access DeepSeek's AI services through Lenovo's AI assistant "XiaoTen" without needing to download or register, according to the company. Lenovo's infrastructure solutions group, which includes IT solutions like servers, saw a 59-percent revenue increase in the December quarter, compared with the previous year, driven by strong server demand. The solutions and services group, which offers cloud-based software for enterprise clients, posted $2.3 billion in revenue, up 12 percent from a year earlier.

MANULIFE Financial posted higher fourth-quarter (Q4) profit on Wednesday, bolstered by a thriving wealth and asset management business and strong growth in Asia. The results underscore the rising significance of Manulife's asset and wealth management unit. Insurers have been expanding their investment advisory and retirement planning services to tap into the rising demand for long-term financial management. They also reinforce the effectiveness of the company's push into Asia, where it is ramping up to capture the financial needs of a growing, under-insured middle class. Core earnings from Asia jumped 16 percent to CA$477 million, while global wealth and asset management reported a 34-percent jump to CA$481 million. Total core earnings rose 6 percent to CA$1.91 billion ($1.34 billion), or CA$1.03 per share, in the three months ended Dec. 31. Analysts had expected a profit of nearly 95 Canadian cents per share, according to estimates compiled by LSEG. "We have created a robust foundation for sustained growth," CEO Roy Gori said in a statement. The company has undertaken major reinsurance deals over the past few years, allowing it to offload risk, unlock capital for share buybacks and sharpen its focus on high-return segments. Gori is scheduled to retire from his role in May this year. He will be succeeded by Phil Witherington, president and CEO of Manulife Asia.

PARIS — World No. 1 furniture retailer Ikea is hoping the market will improve next year from a decline in consumer spending on furnishing their homes, one of its senior leaders told Agence France-Presse (AFP). During a recent visit to Paris to visit the Swedish chain's new city-center shop, Inter Ikea chief Jon Abrahamsson Ring told AFP that 2025 is likely to be "challenging." Inter Ikea is the main holding company that manages the brand concept and product design among other things. France is the company's third-biggest market following Germany and the United States. The French furniture market declined by 5.1 percent in 2024, according to the Institute of Furniture Studies and Forecasting. Abrahamsson Ring said that whether in France or elsewhere it has been a tough period for furniture retailers. "For the last two years, it's been a shrinking home furnishing spend across all our 63 markets." Ikea is "very much looking forward to 2026," he said. Ikea, which has an annual revenue of around $47 billion, is continuing to prioritize low prices and physical sales despite a boom in online shopping, he explained. Online shopping accounted for 26 percent of its total sales in the 2024 fiscal year ending in August, compared to 7 percent in 2019. Meanwhile, Ikea's stores welcomed 899 million visitors in the 2024 fiscal year, a figure which is increasing. Some 92 percent of Ikea customers shop both online and in-store, Abrahamsson Ring said. "They are sitting at home, they do research online, they go to a store because they want to sit on a sofa, or lay on a bed or touch something, and maybe talk to a salesperson," he said.

TOP Australian telecom firm Telstra met consensus expectations for its first-half profit on the back of its mobile business and announced an AU$750-million ($475.88-million) share buyback, citing cost discipline and confidence in its outlook. Telstra will conduct the on-market buyback through 2025, which CEO Vicki Brady said was consistent with its capital management framework and demonstrated the company's financial strength. Shares of the telecom were 3.3 percent higher at AU$4.05 in early trading, the highest level since Jan. 31. Telstra posted a net profit of AU$1.03 billion for the six months ending Dec. 31, in line with the Visible Alpha consensus estimate and ahead of the AU$964 million reported a year ago. The company's consumer division, its biggest profit-generating segment, reported a 3.1-percent rise in revenue to AU$5.53 billion as more people opted for its network, which bolstered its average revenue per user. Rival Optus, Australia's No.2 telecom firm, reported on Wednesday 4-percent growth in third-quarter operating revenue helped by price increases for its postpaid plans and higher prepaid customers. Telstra declared an interim dividend of 9.5 Australian cents per share, up from 9 Australian cents the prior year. "An increase in dividend per share and AU$750M buyback show management is confident about the outlook after the conclusion of T25," analysts at Jefferies said in a note, referring to the T25 strategy to extend its 5G coverage and cut costs laid out in 2021. Telstra, which provides retail mobile services to 22.5 million customers, said it would invest AU$800 million over the next four years to upgrade its mobile network as demand for internet data surges rapidly. "We are at an inflection point, where customer needs for technology and connectivity are becoming more sophisticated, requiring a step change in how connectivity is delivered and consumed," the telecom said. Telstra said it was progressing well on its T25 strategy and remained on track to reduce its core fixed costs by AU$350 million by the end of the current fiscal year.

DUBAI, United Arab Emirates — Long-haul carrier Etihad Airways announced on Wednesday it made a record $476-million profit in 2024, part of a financial rebound for the Abu Dhabi-based airline. While still a slender profit compared to rival Emirates' record profits of $4.7 billion in 2023, it continues a major turnaround for Etihad. The airline had revenues of nearly $6.9 billion in 2024, compared to $5.5 billion in 2023. Its profit in 2023 was just $143 million. Etihad attributed its higher profit to increased passenger numbers, a recovery in its cargo operations and cutting its costs. It flew 18.5 million passengers in 2024, up 32 percent. Its cargo revenues for the year were $1.1 billion, up 24 percent. "These results are testament to the dedication of our people who have worked together for a purpose: delivering our strategy," CEO Antonoaldo Neves said in a statement. "Looking ahead, I am confident we will continue to be a financially strong airline delivering extraordinary customer experiences, fulfilling our shareholders' mandate and contributing to the long-term prosperity and success of the UAE." Abu Dhabi's rulers launched Etihad in 2003, rivaling the established Dubai government-owned carrier Emirates, which boasts a larger fleet and a far-flung network. Emirates flies out of Dubai International Airport, located only 115 kilometers (70 miles) away from the capital of Abu Dhabi. The two airlines compete in the long-haul carrier market, using their nation's location as a key east-west transit point to their advantage. Etihad struggled with its business plan and underwent cost-cutting measures even before the Covid pandemic. Since 2016, Etihad has lost some $6 billion as it has aggressively bought up stakes in airlines from Europe to Asia to compete against Emirates and Qatar Airways. Etihad's network now flies to 80 locations with a fleet of 97 aircraft.

AIRBUS predicted a 7-percent rise in commercial deliveries to around 820 jets in 2025 and confirmed a delay to its A350 freighter model as it posted lower core annual operating earnings broadly in line with expectations on Thursday. Europe's largest aerospace group also took a fresh charge of 300 million euros ($312.84 million) for its troubled Space business, while flagging potential risks to the long-term manufacturing future of its slow-selling A400M military transport aircraft. Airbus reported adjusted operating income of 5.35 billion euros for 2024, including 2.56 billion in the fourth quarter as it grappled with ongoing snags in its supply chains. Annual revenues rose 6 percent to 69.23 billion euros, of which 24.72 billion were generated in the three months to Dec. 31. Analysts had on average expected fourth-quarter core operating profit of 2.6 billion euros on sales of 24.68 billion, according to a company-compiled consensus survey. Airbus has been facing industrial delays due partly to problems in the aerospace supply chain, which have also hampered the recovery of embattled US rival Boeing. The European planemaker said the production ramp-up of its A320 and A350 families faced short-term pressure due mainly to delays from US supplier Spirit AeroSystems, which is in the process of being broken up between Airbus and its main customer Boeing. Airbus maintained all its medium-term output targets, however. Airbus said it was delaying a new freighter version of its A350 wide-body jet by around a year to the second half of 2027, confirming a development delay previously reported by Reuters. For 2025, Airbus forecast adjusted operating income of about 7 billion euros, excluding any impact from threatened trade tariffs but including the integration of Spirit, in a sign that a final deal to absorb some Airbus-related factories is close. In Space, the latest charge brings to almost 2 billion euros the amount provisioned in two years on loss-making satellite projects, which industry sources have linked mainly to the OneSat program of reprogrammable satellites. Such losses have spurred talks to create a new venture grouping Airbus satellite activities with those of Thales Alenia Space to counter the runaway growth of Elon Musk's Starlink, though sources caution this may take some time. Airbus also announced new charges of 121 million euros for the A400M, which has been hit by chronic delays, partial order cancellations by European launch nations and slow exports. Airbus said it was assessing the potential impact of the uncertainty over orders on future manufacturing levels. Industry sources say Airbus has enough orders to keep A400M assembly ticking over for about three years, but that time is running out for the European army plane barring a surge of new orders or reversals of budget cuts as Europe reviews defense spending under pressure from United States President Donald Trump.

GERMAN luxury automaker Mercedes-Benz's passenger car division on Thursday reported a 40.5-percent drop in annual earnings and said it expected significantly lower earnings in 2025 for the group as it worked to boost competitiveness and cut costs. The group, which cut guidance twice last year, forecast 2025 sales to be slightly below the prior year level and an adjusted return on sales of just 6-8 percent at its cars division, down from 8.1 percent in 2024. Group earnings before interest and taxes fell to 13.6 billion euros ($14.18 billion) in 2024, while sales fell by 4.5 percent to 146 billion euros ($152.25 billion). The luxury carmaker will announce details later on Thursday of plans to refresh its model lineup and cut production costs by 10 percent until 2027 in a strategy revamp which Chief Executive Ola Kaellenius said aimed to "ensure the company's future competitiveness in an uncertain world." The company's board will propose a dividend of 4.30 euros per share, down from 5.30 in 2023.

THE US-based operator of Forever 21 was preparing to close at least 200 more locations as part of a bankruptcy process expected to kick off as soon as next month, Bloomberg News reported on Wednesday, citing people with knowledge of the matter. The potential bankruptcy is also looking for a buyer for the retailer's remaining stores. However, if no qualified buyer emerges, Forever 21 would likely liquidate its entire chain of about 350 stores, the report added. Some of the stores slated to close have lost money for years, Bloomberg said. Forever 21 has often withheld royalties and rent payments elsewhere in order to keep them afloat, the report added. The Forever 21 trademark and intellectual property are owned by apparel chain operator Authentic Brands, which licenses them to the operating company that would undergo a Chapter 11 process, Bloomberg said. The US operator of Forever 21 is called F21 OpCo. The report added that the company is now a unit of JCPenney and Lucky-owner Catalyst Brands. According to Catalyst Brands' website, it operates SPARC Group's brands Aéropostale, Eddie Bauer, Lucky Brand and Nautica. The shareholders of Catalyst Brands include Simon Property Group, Brookfield Corp., Authentic Brands Group and Shein. Authentic Brands' ownership of the Forever 21 brand would remain intact through any bankruptcy process, Bloomberg said. It plans to license Forever 21 to other existing retailers and distributors regardless of the outcome of the US operator's potential sale or liquidation in bankruptcy, one of the people told Bloomberg. Forever 21, Catalyst Brands and Authentic Brands did not immediately respond to Reuters' requests for comment.

FRANKFURT, Germany — They may be the trendy footwear of choice for Hollywood A-listers and pop stars, but Birkenstock sandals are not works of art, Germany's top court ruled Thursday. The German sandal maker had sought a ruling that its footwear, known for its cork and latex soles, could be classified as art and thus afforded strong copyright protections. The company, whose sandals have over the years transformed from unglamourous footwear to coveted fashion items, wanted to stop three of its competitors from selling similar products. It had wanted the products of the trio — German retailers Tchibo and shoe.com, as well as the Danish retailer Bestseller — to be pulled from the shelves and destroyed. But the Federal Court of Justice in Karlsruhe sided with the judgement of a lower court, ruling that Birkenstock's sandals could not be considered "copyrighted works of applied art." "For copyright protection to apply, there must be such a degree of design that the product displays some individuality," the court said. "Pure craftsmanship using formal design elements" was not enough, said the court, bringing a close to a legal saga that began in May 2023. Despite the ruling, Birkenstock defended bringing the case. "We want to ensure that copycats can no longer make money at the expense of our brand," said company spokesman Jochen Gutzy. Founded in 1774 in a small community in southwest Germany as a firm focused on making orthopedic footwear, Birkenstock has grown into a global footwear titan. Its sandals are popular among VIPs, with singers Katy Perry and Britney Spears donning the footwear in recent years. They also appeared in the hit 2023 movie "Barbie" when actress Margot Robbie swapped high heels for a pink pair. In 2021 the Birkenstock family sold its majority stake in the group to LVMH-linked equity firm L Catterton and French billionaire Bernard Arnault's family holding fund Financiere Agache. It launched an international public offering on the New York Stock Exchange in 2023.

SAN FRANCISCO — Apple on Wednesday introduced a new iPhone 16e model with a lower price tag as the company seeks to revive sales of its iconic device. Apple touted the iPhone 16e as having many features found in more expensive models, including Apple-tailored artificial intelligence features and integration with OpenAI's ChatGPT. "iPhone 16e packs in the features our users love about the iPhone 16 lineup, including breakthrough battery life, fast performance powered by the latest-generation A18 chip, an innovative 2-in-1 camera system, and Apple Intelligence," Apple Vice President of Worldwide iPhone Product Marketing Kaiann Drance said in a release. The iPhone 16e starts at $599 in the United States, compared with $799 for a standard iPhone, and will be available starting February 28, according to Apple. The name is clearly a nod to Apple's iPhone SE series, which were released until 2022, and similarly targeted to lower paying customers. Along with a custom-made computer chip, the iPhone 16e will be the first in the line to use Apple's own C1 modem for wireless connectivity. Apple has long relied on California-based Qualcomm for iPhone modems. The more affordable iPhone debuts as Apple works to fuel sales in the face of intense competition, particularly in China. Apple reported a whopping $124.3 billion in revenue in the year-end holiday quarter, but sales growth fell shy of market expectations. Revenue growth was powered by Apple's services and digital content unit, with iPhone sales slipping in markets like mainland China. The company hopes that customers will be attracted to new iPhone models infused with Apple Intelligence AI powers. Along with Apple, other tech giants like Google, Microsoft and Amazon are convinced that generative AI's powers are the next chapter of computing and are boosting spending to avoid being left behind. Apple rival Samsung earlier this month made its new Galaxy S25 series, packed with AI capabilities, available worldwide.

SAN FRANCISCO — Tech giant Microsoft unveiled a new computer chip on Wednesday that it says could transform everything from fighting pollution to developing new medicines, joining Google and IBM in arguing that the promise of quantum computing is closer to reality. The US-made chip, called Majorana 1, can fit in the palm of a hand but packs a revolutionary design that Microsoft believes will solve one of the biggest challenges in quantum computing -- making these super-powerful machines reliable enough for real-world use. "We took a fresh approach and basically reinvented how quantum computers could work," said Chetan Nayak, a senior scientist at Microsoft. The company says its breakthrough was confirmed in research published Wednesday in the scientific journal Nature. The new Majorana 1 chip uses a special approach to building quantum computers that could make them more stable and easier to scale up than the work done by Google or IBM, which are considered leaders in the field. While the chip represents a major advance, Microsoft acknowledges that more engineering work lies ahead before quantum computers become practical tools. However, the company says this breakthrough could make that reality possible within "years rather than decades." Unlike regular computers that process information as 1s and 0s, quantum computers harness the strange properties of atomic particles, measured as qubits, to potentially solve problems that would take today's most powerful supercomputers thousands of years. Microsoft says its new chip design could lead to quantum computers capable of tackling major challenges, like finding ways to break down harmful microplastics in the ocean or developing materials that can repair themselves when damaged. Quantum research is seen as a critical field and both the United States and China have been investing heavily in the area, while Washington has also placed restrictions on the export of the sensitive technology. The US Department of Defense has shown strong interest in the technology, selecting Microsoft as one of just two companies to advance to the final phase of its quantum computing program. Google in December unveiled its Willow quantum chip, which dramatically reduced computing errors and performed a calculation in minutes that would take a traditional supercomputer millions of years, marking a significant advance toward practical quantum computing.

WASHINGTON, D.C. — Federal Reserve officials at a meeting last month pointed to rising risks that inflation could worsen, a key reason they kept their benchmark interest rate unchanged. According to minutes of the Jan. 28-29 meeting, which were released Wednesday, Fed officials said that President Donald Trump's proposed tariffs and mass deportations of migrants, as well as strong consumer spending, were factors that could push inflation higher this year. The Fed's 19 officials who participate in its interest-rate decisions indicated that "they would want to see further progress on inflation before making" any further cuts. They kept the Fed's key rate at 4.3%, after cutting it from a two-decade high of 5.3% late last year. The Fed's pause makes it less likely that borrowing costs for consumers, including for mortgages, auto loans, and credit cards, will decline anytime soon. Just last week, the government released data that suggested inflation was actually getting worse, leading many economists to forecast just one — if any — rate cut this year. Consumer prices rose 3% in January from a year ago, the Labor Department said, up from a 3 1/2 year low of 2.4% last September. The Fed, however, more closely follows a separate inflation measure that is shows inflation is closer to 2.5%. The minutes also cited a "high degree of uncertainty" surrounding the economy, which made it appropriate for the Fed to "take a careful approach" in considering any further changes to its key interest rate. All of the Fed's policymakers supported keeping its key rate unchanged last month, the minutes said. The unanimity comes after signs of a growing disagreement in recent months between those officials who supported further rate reductions and those more worried about stubborn inflation. A key issue, particularly on Wall Street, is how long the Fed's pause on rate cuts will last. Wall Street investors expect the central bank won't cut again until July, according to futures prices. They don't forecast a second cut until 2026. Many Fed officials have also said they want to see how Trump's proposed tariffs and immigration crackdown affect the economy. Most economists forecast that the tariffs will push up inflation, though some also argue that Trump's promises to reduce regulation could lower consumer prices over time. On Monday, Fed governor Christopher Waller said in a speech in Australia that he still expects rates to come down this year, but for now he supports a pause. Waller said that if the inflation uptick last month turns out to be a blip, as it did in January 2024, "rate cuts would be appropriate at some point this year." Waller also said that he didn't think new tariffs would significantly raise inflation, and added that any increase in prices would likely be temporary. As a result, he said the Fed shouldn't necessarily change its policies because of tariffs. "I haven't altered my outlook based on what has been implemented to date," he said, referring to Trump's tariff announcements.

A JOINT order implementing a new incentives program for automakers is expected to be finalized next month with applications to be entertained beginning April or May, the Board of Investments (BOI) said on Wednesday. The Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program, which will build on the earlier Comprehensive Automotive Resurgence Strategy (CARS) program and be aligned with the Electric Vehicle Industry Development Act, is expected to pave the way for a resurgence of the local vehicle manufacturing sector as it shifts from internal combustion engine-powered units to electric cars. Implementation will be made via a joint administrative order (JAO) to be issued by the Department of Trade and Industry, the Department of Finance and the Department of Budget and Management. "We're expecting to complete the JAO by mid-March and open the application period for participants by April or May this year," the BOI said. BOI Executive Director Corieh Dichosa said that Toyota Motor Philippines Corp. (TMP) and Mitsubishi Motors Philippines Corp. (MMPC) had signified their intention to enroll under RACE and were only waiting for the JAO and opening of application period. TMP and MMPC previously qualified for the CARS program. Their representatives were not immediately available for comment. The BOI said the program's mechanics were included in a concept submitted to Congress for approval in the 2025 General Appropriations Act. The JAO is now being drafted following legislative approval. The RACE program will support the production of three specific models of four-wheeled internal combustion engine vehicles, with a manufacturing target of 100,000 units. The program has a fiscal support cap of P9 billion and each participating car manufacturer can receive up to P3 billion. Incentives will be based on capital expenditure (capex) and production volume, with up to 40 percent of capex eligible for fixed investment support, which will be released via tax payment certificates. To qualify for the funding support, applicants must invest in manufacturing the approved vehicle, commit to producing 100,000 units and launch the model within two years. They must also meet enrollment criteria and fulfill any additional conditions set during registration. Special Assistant to the President for Investment and Economic Affairs Frederick Go told reporters on Monday that the program had been allocated P250 million in funding under this year's national government budget. Go said the previous CARS program was instrumental in attracting automotive sector investments. RACE, he added, aims to build on these by encouraging greater localization of vehicle components. CARS, which was established during the presidency of the late Benigno Aquino III, was supposed to run from 2015 to 2021. Qualified automakers were to get tax breaks for producing 200,000 vehicles, and TMP and MMPC subsequently signed up their Vios and Mirage subcompacts under the program. The 200,000-unit goal was not met, however, with the onset of the Covid-19 pandemic said to have been a major factor. In 2023, President Ferdinand Marcos Jr. was reported to have approved the extension of the program for another five years.

PALM BEACH, Florida — US President Donald Trump said Tuesday that he intended to impose auto tariffs "in the neighborhood of 25 percent" and similar duties on semiconductors and pharmaceutical imports, the latest in a series of measures threatening to upend international trade. Last Friday, Trump said levies on automobiles would come as soon as April 2, the day after members of his Cabinet are due to deliver reports to him outlining options for a range of import duties as he seeks to reshape global trade. Trump has long railed against what he calls the unfair treatment of US automotive exports in foreign markets. The European Union, for instance, collects a 10-percent duty on vehicle imports, four times the US passenger car tariff rate of 2.5 percent. The United States, though, collects a 25-percent tariff on pickup trucks from countries other than Mexico and Canada, a tax that makes the vehicles highly profitable for Detroit automakers. EU trade chief Maros Sefcovic was to meet with US counterparts — Commerce Secretary Howard Lutnick, Trump's nominee to be US Trade Representative Jamieson Greer and National Economic Council Director Kevin Hassett — in Washington on Wednesday to discuss the various tariffs threatened by Trump. Asked whether the EU could avoid reciprocal tariffs he proposed last week, Trump repeated his claim that the EU had already signaled it would lower its tariffs on US cars to the US rate, although EU lawmakers have denied doing so. He said he would press EU officials to increase US imports of cars and other products. Trump told reporters at his Mar-a-Lago estate in Florida on Tuesday that sectoral tariffs on pharmaceuticals and semiconductor chips would also start at "25 percent or higher," rising substantially over the course of a year. He did not provide a date for announcing those duties and said he wanted to provide some time for drug and chip makers to set up US factories so that they can avoid tariffs. Trump said he expected some of the biggest companies in the world to announce new investments in the United States in the next couple of weeks. He provided no further details. Since his inauguration four weeks ago, Trump has imposed a 10-percent tariff on all imports from China, on top of existing levies, over China's failure to halt fentanyl trafficking. He also announced, and then delayed for a month, 25-percent tariffs on goods from Mexico and non-energy imports from Canada. He has also set a March 12 start date for 25-percent tariffs on all imported steel and aluminum, eliminating exemptions for Canada, Mexico, the European Union and other trading partners. Trump also announced that these tariffs would apply to hundreds of imported downstream products made of steel and aluminum, from electrical conduit tubing to bulldozer blades. Last week, he directed his economic team to devise plans to impose reciprocal tariffs that match the tariff rates of every country product-by-product. An auto import tariff of 25 percent would be a game changer for a global auto industry that is already reeling from uncertainty caused by Trump's tariff drama. A similar drama played out in 2018 and 2019 during Trump's first term, when the Commerce Department conducted a national security investigation into auto imports and found that they weakened the domestic industrial base. Trump had threatened car tariffs of 25 percent at that time, but ultimately took no action, allowing the tariff authority from that probe to expire. But some of the research that went into the 2018 investigation may be reused or updated as part of a new automotive tariff effort.

THE Philippines is expected to achieve its goal of achieving upper-middle-income status next year despite growing global uncertainties, a World Bank economist said. Domestic reforms and pro-investment policies will counteract external risks, World Bank lead economist Gonzalo Varela told The Manila Times on Wednesday. "If domestic reforms are strong enough, you can reduce them and then offset them," he said. "If that agenda of domestic reforms, pro-investment reforms continue, then the transition to upper-middle-income status will not be compromised by global developments." Varela acknowledged that rising global uncertainties could affect investment decisions and consequently economic growth, but said the government had the ability to mitigate these risks. "The key is what policymakers can do to offset the effects of global uncertainty," he said. "Focusing on domestic reforms, improving the regulatory environment and aggressively attracting foreign direct investment will be crucial." He also highlighted the importance of workforce development to meet future market demands. Additionally, regulatory simplification would lower investment costs and further enhance the business climate. The government remains optimistic about achieving upper-middle-income status this year, but the World Bank expects that the milestone will be reached by 2026. "Given our estimates, we expect the threshold to be crossed around 2026," Varela said, adding that the World Bank also regularly adjusts its income classifications to account for inflation, which could influence the timeline. Current World Bank thresholds define upper-middle-income status as gross national income (GNI) per capita hitting $4,516 to $14,005. Philippine GNI per capita rose to $4,230 in 2023, up from $3,950 in 2022 and within the updated lower-middle-income range of $1,146 to $4,515. The World Bank expects the Philippine economy to grow by 6.1 percent next year, which Varela said would be enough for further gains toward higher income status. Achieving upper-middle-income status, however, should not be the sole focus, Varela said. "The real question is how to sustain growth so that wages increase, jobs are created in better sectors and more opportunities are provided to Filipinos." While economic milestones are important, he underscored the need for continuous reforms to ensure long-term prosperity. He reiterated that improving the ease of doing business, fostering innovation and enhancing human capital would be crucial to sustaining growth beyond simply crossing the income threshold. "Policymakers must continue their agenda of pro-investment reforms to ensure that growth is not only achieved but sustained," Varela said.

GENEVA, Switzerland — The sweeping tariffs threatened or already imposed by US President Donald Trump risk triggering inflation, market distortions, and even a global recession, China said Tuesday at the World Trade Organization (WTO). After returning to office on Jan. 20, Trump hit China, the world's second-biggest economy, with an additional 10-percent levy on products entering the United States. Trump signed executive orders last week imposing new 25-percent tariffs on steel and aluminum, due to come into effect on March 12. He said Tuesday that US tariffs on imported cars would be around 25 percent, providing new information on duties he is expected to unveil around April 2. "The world faces a series of tariff shocks," said Li Chenggang, China's ambassador to the WTO, at the first meeting of the year of the global trade body's decision-making General Council. "The US has imposed or threatened tariffs on its trading partners, including China, unilaterally and arbitrarily, blatantly violating WTO rules. China firmly opposes such measures. "These tariff shocks heighten economic uncertainty, disrupt global trade and risk domestic inflation, market distortion or even global recession." Li went on to say that US unilateralism threatened to upend the rules-based multilateral trading system. Imposing punitive tariffs on countries with high trade surpluses with the United States has been at the heart of Trump's economic policy. He paused the 25-percent levies against Canada and Mexico for a month after both countries vowed to step up measures to counter flows of the drug fentanyl and the crossing of undocumented migrants into the United States. But Trump went ahead with tariffs on China, which in return imposed retaliatory tariffs targeting US coal and liquified natural gas. Li said: "We cannot lose sight of the root cause of today's trade turbulence and threats to all members: it is US arbitrary tariffs and unilateral measures." He urged Washington to withdraw the tariffs and "engage in multilateral dialogues based on equity, mutual benefit and mutual respect." A Geneva-based trade official said Washington voiced concerns that China was operating a nonmarket economic system and habitually breached WTO rules. "The US highlighted the issues stemming from China's lack of transparency and its disregard for WTO oversight," the official said. "The US also pointed out that the WTO's current inability to address China's market-distorting policies, such as unfair subsidies, significantly diminishes the organization's effectiveness." WTO Director-General Ngozi Okonjo-Iweala urged the WTO's 166 members to keep "cool heads" and keep talking to one another. "The world has changed. We cannot come here to continue doing the same things we've been doing," she said. The former Nigerian finance minister urged countries to use the new trade landscape as an "inflection point" to press on with long-sought reforms to the WTO. The WTO is upgrading its tariff analysis database and will launch the new version on March 4.

THE Bangko Sentral ng Pilipinas (BSP) has established the Financial Cyber Resilience Governance Council (FCRGC) in an effort to strengthen the financial system against cyberthreats. The council, which was formally introduced on Feb. 11, is expected to help enhance cybersecurity practices, governance and collaboration across the financial sector. BSP Governor Eli Remolona, Jr. said the council represented a "collective resolve to strengthen our cyber defenses." The council will oversee the 2024-2029 Financial Services Cyber Resilience Plan (FSRCP) that was introduced in August 2024. The plan outlines high-level strategies to secure financial institutions, enhance cyber resilience and mitigate emerging threats. BSP Deputy Governor Chuchi Fonacier will serve as the council's chairperson, while Sandeep Uppal, head of the Bankers Association of the Philippines (BAP) Cyber Committee, will act as vice chairperson. Monetary Board member Jose Querubin will serve as the council's advisor. The council will bring together key players, including representatives from the Chamber of Thrift Banks, Rural Bankers Association of the Philippines, Philippine E-Money Association, BancNet and Philippine Clearing House Corp. Additionally, officials from BSP's Policy and Specialized Supervision Sub-Sector, Technology and Digital Innovation Office, and Technology Risk and Innovation Supervision Department will also be part of the council. "The council is a symbol of our unity, of our shared commitment to protect the financial system, and of our resolve to outpace and outmaneuver those who seek to undermine it," BAP President Jose Teodoro Limcaoco said. Fonacier said the council would actively oversee cybersecurity initiatives, monitor emerging threats, and ensure industry preparedness. The council will meet quarterly to assess the progress of the FSRCP, review cyberthreat reports, and recommend policy improvements to keep up with evolving security challenges.

THE peso regained some ground on Wednesday, and the stock market also rose further with sentiment said to have been lifted by gains on Wall Street and positive corporate earnings. The currency strengthened a little over six centavos to P58.088 while the benchmark Philippine Stock Exchange index (PSEi) added 24.92 points, or 0.41 percent, to end the day at 6,119.88. The broader All Shares, on the other hand, shed 3.94 points, or 0.11 percent, to 3,675.00. The peso opened at the day's trading high of P58.2:$1 and traded as low as P58.07. Volume reached P1.25 billion, down from Tuesday's P1.667 billion. Rizal Commercial Banking Corp. chief economist Michael Ricafort said the peso strengthened as the dollar slightly weakened against major global currencies. Philstocks Financial Inc. research manager Japhet Tantiangco, meanwhile, said "the local bourse extended its rise backed by optimistic expectations towards [fourth quarter] corporate results." "The positive cues from Wall Street also helped in Wednesday's session," he added. Tantiangco, however, said the day's trading was "still lethargic" with net value turnover at P4.81 billion, below the year-to-date average. "Foreigners were still net sellers with net outflows at P515.39 million," he added. Regina Capital Development Corp. Managing Director Luis Limlingan, meanwhile, said "Philippine shares continued to gain traction, closing above the 6,100 after the signing of the Create More Act IRR (implementing rules and regulations), aimed at making the Philippines' tax incentives more competitive and investment-friendly." "Momentum was further sustained when US equities rallied Tuesday as investors shrugged off global trade and inflation concerns, with tariff developments in Washington remaining a wildcard," he added. All sector indices but two closed in the green, with mining and oil up the most by 4.74 percent. Financials and services shed 1.05 percent and 0.47 percent, respectively. On a company basis, gainers edged out decliners, 98 to 89, while 59 were unchanged.

STATE-OWNED Bases Conversion and Development Authority (BCDA) urged all Camp John Hay sublessees to file claims against the original owners or tenants of their units following a Supreme Court decision ordering CJH Development Corp. (CJHDevCo) to relinquish control of the 247-hectare property in Baguio City, including all newly constructed and permanent improvements, to the BCDA. In a statement on Wednesday, BCDA Chairman Hilario Paredes advised individuals who had bought or were subleasing units in John Hay to sue the original sellers/tenants of these units. "We recognize the emotional, financial and legal challenges faced by those affected by the Supreme Court ruling. BCDA's goal is to help them navigate these issues and ensure that their rights are protected and exercised," Paredes said, enjoining affected parties to reach out for clarification on their legal standing and explore available legal remedies, including entering into new lease agreements with the BCDA. The agency said it had now signed over 40 agreements with former CJHDevCo sublessees for new lease terms in John Hay facilities such as Forest Estates, Country Homes, Golf Estates and Forest Cabins. There are negotiations as well for new lease agreements for residential units in John Hay. In April last year, the Supreme Court overturned a 2015 Court of Appeals decision that had invalidated a writ of execution and notice to vacate issued by Baguio Regional Trial Court (RTC) Branch 6 to CHDevCo. The high court reaffirmed authority of the ex-officio sheriff of the Baguio RTC and authorized deputies to demand that CJHDevCo, former operator of the property and all individuals claiming rights under it to vacate the premises and turn these over to the BCDA. The BCDA assured the public that it is working closely with the sheriff's office and affected CJHDevCo sublessees to ensure smooth and orderly transitions. Temporary hotel accommodations have been provided to affected foreign nationals who will also be given legal guidance.

THE average retail price of rice dropped a bit to P54.18 per kilogram (kg) in the first phase of this month (Feb. 1 to 5) from P54.63/kg in the second phase, according to the Philippine Statistics Authority (PSA). This was also lower than the P54.81/kg in the first phase of January. The price of regular-milled rice also decreased, while that of special rice increased. Meanwhile, the average retail price of meat generally rose in the first phase of February, compared to the second phase of the previous month (Jan. 15 to 17). Fresh pork kasim, for instance, retailed at P354.74/kg from P344.01/kg and P342.29/kg in the first phase of January. However, there was a reduction in chicken egg prices. Bangus sold for P223.48/kg in the first phase of February, from P220.53/kg in the second phase of January, and P221.35/kg in the first phase. The retail price of galunggong and tilapia also went up compared to the second phase of January. Tomatoes sold lower at P109.94/kg in the first phase of February from P158.67/kg in the second phase of January. It was also lower than the P189.69/kg in the first phase of January. Red onions, on the other hand, were more expensive at P162.69/kg in February, compared to the P153.70/kg retail in the second phase of this month, and the P149.72/kg in the first phase of January. Meanwhile, imported garlic and Hawaiian ginger both sold at lower prices, with Hawaiian ginger down by almost P5.00 from its second phase of January levels. A kilogram of calamansi retailed at P86.63 in the first phase of January, higher than the P81.61/kg in the second phase. Prices of three other commodities — cooking oil, brown sugar and refined sugar — also spiked. Refined sugar sold for P85.68/kg in the first phase of February, higher than the P84.25/kg and P84.89/kg in the second and first phases of January, respectively. Giselle P. Jordan

FIRST Gen Corp. on Wednesday said that Tokyo Gas Co. Ltd., Japan's largest natural gas utility company, had completed the purchase of a 20-percent stake in First Gen's liquefied natural gas (LNG) subsidiary, FGEN LNG Corp. The acquisition is Tokyo Gas' first investment in a commercially operational overseas LNG terminal project, First Gen said in a disclosure. FGEN LNG is the owner and operator of a liquefied natural gas terminal project at the First Gen Clean Energy Complex in Batangas City (LNG Terminal). "We welcome Tokyo Gas into the First Gen group," said First Gen President and COO Giles Puno, also the concurrent vice chairman and CEO of FGEN LNG, in a statement. "This subscription will deepen our partnership and enhance synergy that will boost our efforts in support of the Philippines' energy security and stability, even as we all pursue decarbonization," he added. Tokyo Gas signed a subscription agreement with First Gen LNG Holdings in May 2024 for the purchase of a minority stake in FGEN LNG. First Gen said the signing of the agreements represented the next phase of a joint development of the LNG terminal project. Tokyo Gas partnered with First Gen in 2018 for the development and construction of the Batangas LNG Terminal, groundbreaking for which was held in 2019. The facility supplies regasified LNG to First Gen's gas-fired power plants that have a total generating capacity of 2,017 megawatts. Tokyo Gas was said to be is one of the largest purchasers of LNG in the world, with an annual volume of 13 million tonnes per year and over 63,000 kilometers of gas pipelines serving about 8.8 million customers. First Gen shares on Wednesday were unchanged at P16.98 apiece amid a 0.41-percent uptick for the benchmark Philippine Stock Exchange index.

BANK of Commerce (BankCom), an affiliate of San Miguel Corp. (SMC), on Wednesday said that it had raised a record P18 billion from its dual-tranche fixed rate peso bonds due 2027 and 2030 that were listed on the same day at the Philippine Dealing and Exchange Corp. "We appreciate the strong support of investors and are elated that one of our shortest peso bond offerings has also become the largest in BankCom's history," BankCom President Michelangelo Aguilar said in a statement. The minimum offer size of P5 billion was exceeded amid strong demand, prompting BankCom to shorten the offer period to three days, from Jan. 28 to Jan. 30, 2025. BankCom raised around P10 billion from Series C bonds due 2027, which carry an interest rate of 6.1942 percent per tear. It raised another P7.99 billion from Series D bonds due 2030 with a fixed interest rate of 6.3494 percent. Returns on the bonds will be paid quarterly. Proceeds from the issuance will be used for management of the bank's balance sheet, diversification of funding sources and general corporate purposes. ING Bank N.V., Manila Branch, Philippine Commercial Capital Inc., Security Bank Capital Investment Corp. and Standard Chartered Bank were the joint lead arrangers and joint bookrunners. BankCom, together with the joint lead arrangers, also acted as selling agent. BankCom recorded a 10-percent rise in net income to P2.21 billion as of end-September last year on the back of growth in its core lending business. Net interest income for the period was up 11 percent from the previous year. The bank's shares closed up 0.86 percent at P7.05 each on Wednesday.

MONDE Nissin Corp. said Wednesday that consolidated core net income likely grew by more than 25 percent in 2024 based on updated fourth-quarter guidance and preliminary full-year results. "We expect consolidated core net income to increase by over 25 percent for 2024, with consolidated core net margin expanding by more than 200 bps (basis points) compared to the same period last year," Monde Nissin told the stock exchange. CEO Henry Soesanto said that "preliminary fourth-quarter results reflect sustained momentum from the third quarter, driven by our APAC BFB (Asia-Pacific branded food and beverage) business." Monde Nissin said the APAC BFB business saw revenue growth of 8 percent year on year in the last three months of 2024, driven by volume growth across all categories. "We expect to achieve positive Ebitda (earnings before interest, taxes depreciation and amortization) in the fourth quarter despite the ongoing topline weakness," it added. Consolidated sales are expected to grow 3 percent and consolidated gross margin is seen to expand by 350 basis points (bps) on the back of strong gross margin growth of over 400 bps in the APAC BFB segment. Monde Nissin said Ebitda for the meat alternative business was neutral for the full year. "Our ongoing annual impairment test for the meat alternative business indicates a significant impairment charge this year, estimated [at] between 80 million and 100 million British pounds," it added. Despite these challenges, the company said it expected consolidated reported net income after tax "to return to positive territory for the full year." Monde will report fourth quarter and full-year results in detail during its 2024 earnings call next month. In 2023, Monde trimmed its net loss to P625 million from the P13 billion recorded in 2022. For the first nine months of 2024, it reported a turnaround with core net income growing 31 percent to P7.5 billion, boosted by the APAC BFB business' record net income of P8.1 billion. Monde Nissin shares on Wednesday dipped 0.36 percent to P8.42 each.

MANILA Electric Co.'s (Meralco) MGEN Renewable Energy Inc. (MGreen) has officially switched on a 19.8-megawatt solar power plant in Barangay Pesa, Bongabon, Nueva Ecija. The company said the facility was the first project under the second Green Energy Auction program to be finished at least six months before the targeted completion date. "More than just a solar power plant, the Bongabon Solar is about creating opportunities, reducing our carbon footprint and setting a new standard for renewable energy initiatives in our country," MGreen President and CEO Dennis Jordan said in a statement. The facility is expected to provide power to at least 20,000 households and establishments in the area in support of the Energy Department's goal of increasing share of renewable energy in the country's power mix to 35 percent by 2030 and 50 percent by 2040. The project is also expected to reduce greenhouse gas emissions by at least 19,000 tons of carbon dioxide per year. MGreen, which aims to add an additional 85.2 megawatts of solar capacity to its portfolio this year, is next scheduled to inaugurate another solar plant in Cordon, Isabela, and expand an existing facility in Baras, Rizal. It is also eyeing the completion of the MTerra solar project in 2026. Share of parent firm Meralco rose by P9 to P500 apiece on Wednesday.

THE world of business is filled with ambitious strategies that promise transformational growth, operational excellence, and market leadership. So many organizations, however, struggle to translate these grand visions into reality, and within the time frame they have envisioned. The missing link between strategy and execution is often business architecture — an essential but overlooked discipline that bridges the gap between high-level aspirations and ground-level realities. Every business leader has, at some point, experienced the frustration of a failed initiative. A strategy that seemed so promising on paper unravels in the face of operational complexity, conflicting priorities and unclear processes. The reason for this is simple: without a well-defined business architecture, execution becomes an exercise in chaos. Business architecture provides the structural foundation to align strategic intent with operational capabilities, ensuring that execution is not left to chance or improvisation. Business architecture is the process of defining and structuring the fundamental building blocks of an organization to ensure that its strategy is effectively executed. It involves mapping out business capabilities, defining value streams, aligning organizational processes, and integrating technology and data systems. This structured approach ensures that different business functions work cohesively to achieve strategic goals rather than operating in silos. Organizations frequently assume that a well-crafted strategy will naturally lead to successful execution. They believe that by communicating their vision and objectives clearly, their teams will automatically align and deliver results. However, in the absence of a structured business architecture, different departments, teams and individuals interpret strategy in their own ways, leading to misalignment, redundancy and wasted resources. A lack of coherence between strategic goals and operational realities results in fragmented decision-making, inconsistent execution, and ultimately, disappointing outcomes. Consider a company that aims to become a leader in customer experience. The leadership team outlines a bold strategy to achieve this, emphasizing personalized interactions, seamless service and a digital-first approach. Yet, when the time comes to execute, customer service teams continue using outdated legacy systems, marketing remains focused on mass communication, and IT is burdened with unrelated priorities. The disconnect between strategy and execution is glaring, and without a business architecture that aligns processes, technology and people, the intended transformation fails to materialize. Business architecture serves as the glue that holds strategic initiatives together. It defines the relationships between an organization's core functions, capabilities, processes, technology and stakeholders. By mapping out these interdependencies, businesses can ensure that every strategic decision is backed by a clear execution framework. Without this, companies rely on fragmented and reactive decision-making, which leads to inefficiency, frustration, and a lack of meaningful progress. The absence of business architecture also manifests in resource allocation challenges. A well-designed architecture clarifies where resources should be directed to maximize impact. Without this clarity, companies either underinvest in critical areas or spread their resources too thin across competing priorities. This results in half-baked initiatives that never reach their full potential. Proper business architecture helps leaders make informed choices about what to prioritize, ensuring that execution aligns with the broader strategic vision. Among the most common pitfalls in strategy execution is the failure to adapt to changing conditions. The business environment is constantly evolving, and without a structured framework, organizations struggle to adjust their execution plans in real time. Business architecture provides the necessary agility by defining how different elements of the organization interact. When disruptions occur — whether the market shifts, or there are regulatory changes or technological advancements — companies with a well-defined business architecture can pivot with precision instead of resorting to last-minute, uncoordinated adjustments. Another significant consequence of ignoring business architecture is the erosion of accountability. Execution suffers when there is no clear ownership of initiatives, processes and performance metrics. A strategy might outline broad goals, but without an architecture that specifies roles, responsibilities and dependencies, accountability becomes diluted. Employees and teams operate in silos, assuming that someone else will handle critical aspects of execution. This results in missed deadlines, duplicated efforts, and a culture of blame rather than collaboration. In highly competitive industries, speed of execution is often the differentiator between success and failure. Companies that lack business architecture struggle to move quickly because they spend excessive time navigating internal confusion, realigning teams and fixing preventable issues. In contrast, organizations that invest in business architecture create a seamless execution framework that enables rapid decision-making and efficient implementation. They minimize internal friction, allowing teams to focus on delivering results rather than untangling bureaucratic complexities. Leadership also plays a crucial role in bridging the gap between strategy and execution, but even the most visionary leaders cannot compensate for the absence of a well-structured business architecture. Without it, leaders find themselves constantly engaged in firefighting, making ad-hoc decisions, and struggling to maintain momentum. A strong business architecture empowers leaders by providing clarity, reducing uncertainty, and ensuring that execution is not left to improvisation. It allows them to lead with confidence, knowing that the organization has the necessary structures and capabilities in place to deliver on strategic objectives. The consequences of neglecting business architecture are evident in companies that embark on ambitious digital transformation journeys only to see their efforts stall. They introduce new technologies without integrating them into existing workflows, resulting in operational disruptions rather than improvements. They invest in innovation but fail to align their workforce with new capabilities, leading to resistance and inefficiencies. These failures are not due to flawed strategies but rather the absence of an execution framework that connects vision with reality. Organizations that recognize the importance of business architecture position themselves for sustained success. They ensure that every strategic initiative is backed by a clear execution model that defines roles, processes and resource allocation. They establish mechanisms for continuous alignment, allowing them to adjust execution plans as needed without losing sight of their overarching goals. They foster a culture of accountability, ensuring that execution is not just a shared responsibility but an integrated discipline. In the end, strategy without execution is merely a wish, a hope. Execution without business architecture is a gamble. To bridge the gap between ambition and reality, organizations must move beyond the traditional view of strategy as a stand-alone exercise. They must embrace business architecture as the vital missing link that transforms vision into action. By doing so, they not only improve execution but also unlock their full potential in an increasingly complex and competitive world. Kay Calpo Lugtu is the chief operating officer of Hungry Workhorse, a digital and culture transformation firm. Her advocacies include food innovation, nation-building and sustainability. The author may be reached at kay.lugtu@hungryworkhorse.com.

ACCORDING to Section 1, Rule 58 of the Revised Rules on Civil Procedure, a writ of preliminary injunction is an order granted at any stage of an action, prior to a judgment, requiring a party, court, agency or person to perform or refrain from performing an act or acts. To preserve the status quo and to protect its substantive rights and interests from threatened or continuous irreparable injury, a party may seek provisional relief from the court by including in the principal action an application for the issuance of a writ of preliminary injunction and/or temporary restraining order. Under Section 3 of the same rule, a writ of preliminary injunction may be granted when it is established that: – The applicant is entitled to the relief demanded and the whole or part of such relief consists in restraining the commission or continuance of the act or acts complained of, or in requiring the performance of an act or acts, either for a limited period or perpetually. – The commission, continuance or nonperformance of the act or acts complained of during the litigation will probably work injustice to the applicant. – A party, court, agency or a person is doing, threatening or is attempting to do or is procuring or suffering to be done, some act or acts probably in violation of the rights of the applicant respecting the subject of the action or proceeding, and tending to render the judgment ineffectual. In several cases decided by the Supreme Court, the grounds mentioned above were summarized as follows: – There exists a clear and unmistakable right to be protected, or a right clearly granted by law. – This right is directly threatened by an act sought to be enjoined. – The invasion of the right is material and substantial. – There is an urgent and paramount necessity for the writ to prevent serious and irreparable damage. Thus, to satisfy the requisites for the issuance of the writ, the existence of the right granted by law and the actual or threatened violations must be established. Any doubt on the alleged legal right or the absence of evidence on the existence of such right will preclude the grant of the relief of preliminary injunction. It is also well settled that a writ of preliminary injunction should be issued only to prevent grave and irreparable injury; that is, injury that is actual, substantial and demonstrable. As upheld by the Supreme Court, the serious and irreparable damage consists of a charge of, or is destructive to, the property it affects, either physically or in the character, in which it has been held and enjoined, or when the property has some peculiar quality or use, so that its pecuniary value will not fairly recompense the owner of the loss thereof. A preliminary injunction is not warranted for any damage that is easily subject to mathematical computation and, if proven, is fully compensable by damages. (SM Investments Corp. v. Mac Graphics Carranz International Corp., GR 224131-32 and 224337-38, June 25, 2018). In addition, a writ of preliminary injunction will be granted only upon prior notice to the party, or the persons sought to be enjoined and upon due hearing where parties are given the opportunity to present their evidence. However, if it appears that there is a matter of extreme urgency and the applicant will suffer great or irreparable injury before the hearing, a temporary restraining order may be issued by the court. The grant or denial of the writ of preliminary injunction is subject to the discretion of the court. However, grant or denial is not a final resolution or decision disposing of the case. The court must still conduct its proceedings to resolve the main issue in the principal action. Rio Krisel G. Bautista is an associate of Mata-Perez, Tamayo & Francisco (MTF Counsel). This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. If you have any question or comment regarding this article, you may email the author at info@mtfcounsel.com or visit MTF website at www.mtfcounsel.com.

TOKYO — Japan recorded a trade deficit of 2.76 trillion yen ($18 billion) in January, the Finance Ministry reported on Wednesday, as worries continue to grow about looming tariffs from the administration of United States President Donald Trump. Japan also had a trade deficit, which measures the value of exports minus imports, a year ago, but the amount rose 60 percent last month from January 2024. Exports totaled 7.86 trillion yen ($52 billion) last month, up 7 percent year on year, rising in a variety of products including machinery, medical goods and ships. Imports, totaling 10.62 trillion yen ($70 billion), rose 16.7 percent from the same month last year. Imports grew in machinery, computers and various foodstuffs including fruit, as demand grew while the yen weakened against foreign currencies. Consumption in Japan is expected to remain relatively solid, partly because of recent wage growth. Japan recorded a nearly 477-billion-yen ($3-billion) trade surplus with the US as exports rose 8 percent in items such as electrical equipment, cars and raw materials. Japan is asking the US to exclude it from Trump's so-called reciprocal tariffs, as well as those on steel and aluminum. Uncertainty remains as the US has long been one of Japan's most important trading partners. The growth in both Japanese imports and exports follows a government report earlier in the week that the economy grew faster than expected in the October-December quarter. "Japanese trade data suggest a modest economic recovery under way in the current quarter. But the jump in exports comes with big caveats, particularly the specter of US tariffs, that cloud the outlook," said Min Joo Kang, senior economist at ING.

HONG KONG — Banking giant HSBC said on Wednesday that CEO Georges Elhedery's plan since October to simplify the company's structure and geographic setup will yield $1.5 billion in annual cost savings by the end of 2026. Elhedery's plan for a "simpler, more dynamic and agile organization" has shaken up Europe's largest bank, whose shares in Hong Kong have rallied to an 11-year high. "Since becoming CEO, I have focused on simplifying how we operate, and injecting energy and intent into the way we deliver our strategy," Elhedery said in an earnings statement on Wednesday. "Our strong 2024 performance provides firm financial foundations upon which to build for the future." The firm said pretax profit rose 6 percent to $32.3 billion in 2024, while profit attributable to shareholders edged up 2 percent to $22.9 billion. The London-headquartered lender also announced a share buyback of up to $2 billion to be completed by the time it announced this year's first-quarter results. HSBC generates most of its revenue in Asia and has spent several years pivoting to the region, vowing to develop its wealth business and target fast-growing markets. Shortly after Elhedery became CEO, the lender said it would simplify its structure and split into four parts: Hong Kong, the United Kingdom, "corporate and institutional banking" plus "international wealth and premier banking." The bank will also streamline its geographical set-up by bringing together its Asia-Pacific and Middle East regions, while uniting its European and US operations. The "cost target includes the impact of simplification-related saves associated with our announced reorganization, which aims to generate approximately $0.3 billion of cost reductions in 2025, with a commitment to an annualized reduction of $1.5 billion in our cost base expected by the end of 2026," it said on Wednesday. HSBC added that it plans to incur costs of $1.8 billion over 2025 and 2026 to deliver the reductions. Elhedery has moved to trim a layer of senior bankers, with hundreds of managers reportedly told to reapply for their jobs. Cuts are under way in HSBC's markets division and wider layoffs at its investment bank will start as early as this week, Bloomberg News reported. The lender said last month it would wind down parts of its investment banking operations in Europe, the United Kingdom and the Americas. Elhedery said on Wednesday that his initiatives included "a comprehensive transformation of [HSBC] operations, modernizing our infrastructure and investing in technology such as artificial intelligence (AI), generative AI, data and analytics." The lender considers both Britain and Hong Kong its "home markets," though the balancing act has come under pressure as relations sour between China and the West. Elhedery's predecessor Noel Quinn in 2023 fended off a call for HSBC to spin off its Asia assets.

SINGAPORE — Shares of Singapore's United Overseas Bank (UOB), hit a record high on Wednesday after it posted a 9-percent rise in fourth-quarter net profit that beat expectations and announced a SG$3-billion ($2.24-billion) package to return surplus capital to investors. The stock rose as much as 1.4 percent to touch SG$39.20 per share in early trade before declining 0.1 percent to SG$38.63 amid a relatively flat Singapore's benchmark stock index. "Our long-term investments in the region are paying off with early results, the momentum is picking up, and we expect to see sustained revenue growth this year," UOB CEO Wee Ee Cheong said in an earnings briefing. UOB, Singapore's third-biggest bank, said October-December net profit climbed to SG$1.52 billion ($1.13 billion) from SG$1.40 billion a year earlier on the back of higher net interest income supported by loan growth. That beat the mean estimate of almost SG$1.46 billion from four analysts polled by LSEG. UOB, which is also Southeast Asia's third-largest bank by assets, expected its 2025 cost-to-income ratio to be around 42 percent, the top end of the 41-percent to 42-percent range it had projected in November. Other than that, the bank kept its outlook for 2025, according to Wee's presentation slides accompanying the fourth-quarter earnings. UOB's results followed that of larger peer DBS Group, which last week posted a 10-percent year-on-year jump in fourth-quarter net profit that met expectations and announced a dividend capital return plan, sending shares to a record high. Singaporean banks were forecast to post strong profits for the fourth quarter, but growth could take a hit this year as United States President Donald Trump's trade tariffs and other policies threaten to undermine the global economy, analysts said. Alongside its results, UOB announced a capital return package to distribute surplus capital over the next three years. That includes a special dividend of 50 Singapore cents a share in 2025 and a SG$2-billion share buyback program. It declared a final dividend of 92 Singapore cents per share for 2024, versus the 85 Singapore cents announced during the same quarter a year ago for 2023. Its net interest margin (NIM), a key gauge of profitability, narrowed slightly to 2.00 percent in the fourth quarter from 2.02 percent in the same period a year earlier. "We hope we maintain NIM at the current 2-percent level," UOB Group Chief Financial Officer Lee Wai Fai said in the briefing. Lee, who will retire in April after serving two decades in the role, added that UOB expected the US Federal Reserve to cut interest rates only once this year due to the US strong economy and Trump's policies, which some economists believe will be inflationary. Rival Oversea-Chinese Banking Corp. is scheduled to report its financial results on Feb. 26.

FRANKFURT, Germany — German auto supplier Continental said on Tuesday it will cut a further 3,000 jobs by the end of 2026, the latest sign of weakness for the country's auto sector. The job reductions will be in research and development, it said, adding that less than half of the cuts will be in Germany. Continental said the cuts would "to a large extent" take place via natural turnover, such as from retirement. "We are continuously improving our competitive strengths in the interest of our sustainable market success," said Philipp von Hirschheydt, head of the automotive division at Continental. Continental had already announced plans last February to cut 7,150 jobs by 2025. The firm employs about 200,000 people worldwide with about 31,000 of those in research and development. It has also announced it will spin off its automotive components business. The news comes amid testing times for the European car industry, which is struggling with fierce Chinese competition and the shift to electric vehicles. Sports carmaker Porsche announced 1,900 layoffs last week, citing weak demand for its electric cars, and Volkswagen last December reached an agreement with unions to cut 35,000 jobs across its German locations by 2030. BMW and Stellantis, which owns brands such as Fiat and Jeep, warned investors last year that their performance for 2025 would fall short of expectations, citing weak demand in China.

SINGAPORE Telecommunications (Singtel) provided a positive annual earnings outlook and posted a nearly threefold increase in third-quarter earnings on Wednesday, driven by an exceptional gain, propelling its shares to near six-year highs. Shares in Singtel rose 2.4 percent to SG$3.41 and were on track for their strongest trading session since Jan. 31, provided the gains hold. The stock was nearing its SG$3.475 high from July 2019. The firm's net profit rose 183.4 percent to SG$1.3 billion ($968.85 million) for the three-month period ended Dec. 31, from SG$465 million last year. Singtel recorded a net exceptional gain of SG$639 million from disposal of partial stakes in Thailand associate Intouch and Indara, formerly known as Australia Tower Network, coupled with its share of an exceptional gain from its stake in India's Bharti Airtel. Singtel had reported a net exceptional loss of SG$94 million a year earlier. Airtel's gain primarily consisted of a fair value gain from the consolidation of Indus Towers, a reversal of a doubtful debt provision by Indus Towers, and foreign exchange gains from the appreciation of the Nigerian naira and Tanzanian shilling. Singtel now anticipates its earnings before interest and taxes — excluding contributions from its associates — to rise at a robust pace, with a projected increase in the high teens to low twenties percentage range for the 2025 financial year. This marks an optimistic shift from the earlier projection of growth in a more modest low-double digits. The telecommunications giant said it expects to pay a total ordinary dividend of around 16.5 Singapore cents apiece for the financial year, higher than the 15 Singapore cents paid a year ago. "We think the outlook for dividends is upbeat due to rising underlying core earnings and a potential additional 'value realization dividend' from asset monetization initiatives," HSBC analysts said in a note last month.

(UPDATE) LOUISVILLE, Kentucky — Kentucky Fried Chicken (KFC) is being uprooted from its ancestral home state in a shake-up announced Tuesday by its parent company that will relocate the chain's US corporate office to Texas. The food chain now known as KFC — launched by Colonel Harland Sanders and his secret blend of 11 herbs and spices — will be based in Plano, Texas, and about 100 KFC corporate employees will be relocated in the next six months, said Yum Brands, which owns KFC, Taco Bell and Pizza Hut. The relocation of KFC's corporate office from Louisville brought a quick response from political leaders in Kentucky. "I am disappointed by this decision and believe the company's founder would be, too," Gov. Andy Beshear said in a statement. "This company's name starts with Kentucky, and it has marketed our state's heritage and culture in the sale of its product." Beshear, a Democrat, said he hopes Yum rethinks moving KFC employees out of Kentucky. Louisville Mayor Craig Greenberg also expressed disappointment with the corporate reshuffling of workers to Texas, noting that the brand "was born here and is synonymous with Kentucky." Yum said the move is part of its broader plans to designate two brand headquarters in the United States — in Plano and Irvine, California. KFC and Pizza Hut will be headquartered in Plano, while Taco Bell and Habit Burger & Grill will remain based in Irvine, the company said. Yum added that 90 US-based employees who have worked remotely will be asked to eventually relocate to the campus where their work occurs. Yum and the KFC Foundation will maintain corporate offices in Louisville, the company said. The governor and mayor said they were grateful those jobs are being retained in Kentucky's largest city. "I've asked to meet with the Yum CEO soon and am heartened Yum will retain its corporate headquarters and 560 employees here," Greenberg said in his statement. "I will work tirelessly with Yum's leadership to continue growing its presence in Louisville." Employees being shifted will receive relocation and transition support, the company said. Yum said that designating two brand headquarters is meant to foster greater collaboration among its brands and employees. "These changes position us for sustainable growth and will help us better serve our customers, employees, franchisees and shareholders," Yum CEO David Gibbs said in a news release. Yum also announced it would provide a $1-million endowment to the University of Louisville's College of Business to fund Yum-sponsored scholarships. And the company said KFC will continue its brand presence in Louisville with the goal of building a first-of-its-kind flagship restaurant. KFC's ties to Kentucky run nearly a century deep. In 1930, at a service station in Corbin, Kentucky, Sanders began feeding travelers and spent the next nine years perfecting his blend of herbs and spices, as well as the basic cooking technique, KFC's website says. And the goateed entrepreneur's likeness is known globally, having been stamped on KFC restaurant signs and chicken buckets. There are now over 24,000 KFC outlets in more than 145 countries and territories around the world, the brand's website says.