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Pope Francis says Trump’s planned immigration raids would be a ‘disgrace’

REUTERS

VATICAN CITY — Pope Francis on Sunday criticized President-elect Donald Trump’s reported plan to sharply intensify immigration enforcement actions across the US in the days after his inauguration.

In an Italian television interview, the pontiff said it would be a “disgrace” if Mr. Trump went forward with the plan, in unusually forceful language for the leader of the global Catholic Church.

“It would make the migrants, who have nothing, pay the unpaid bill,” said the pope. “It doesn’t work. You don’t resolve problems this way.”

The pope’s remarks were made during a video link from his Vatican residence with the Che Tempo Che Fa program on Italy’s Channel 9.

Francis, leader of the 1.4 billion member church, is usually careful about weighing in on political issues.

The pope has made welcoming migrants a key theme of his nearly 12-year papacy, and he has previously criticized Mr. Trump’s anti-immigrant rhetoric. During the 2016 election, he said Mr. Trump was “not Christian” in his view.

Incoming Trump administration officials said on Saturday that the president-elect was reconsidering plans for immigration raids in Chicago next week, following reports about the plans.

Earlier on Sunday, Chicago’s Catholic archbishop, Cardinal Blase Cupich, also criticized the planned raids. “This would be an affront to the dignity of all people and communities,” the cardinal said in a statement. — Reuters

Alixia Marie PH creates modern fashion using weaves from Filipino craftsmen

ALIXIA MARIE PH, a young Filipino fashion brand, is supporting local artisans by using indigenous weaves from various regions in modern casual fashion.
“One of our taglines is ‘Carry your culture,’” company owner Alixia Mercado said . “We want to bring their weaves into the spotlight.”

Interview by Edg Adrian Eva
Audio editing by Jayson Mariñas

EXPLAINER | Verde Island Passage eyes for World Heritage Site status

The Verde Island Passage (VIP), dubbed the “Amazon of the Ocean” for its rich marine biodiversity, is now poised to become a UNESCO World Heritage Site. Located between Luzon and Mindoro, it boasts the highest concentration of marine shorefish species in the world.

“We are being recognized as the richest in the realm of the sea, that’s something that we need to protect. We need to have a responsibility over it to keep this intact,” Gela Petines, Founder of Batang VIP said.

Interview by Edg Adrian Eva
Audio editing by Jayson Mariñas

[B-SIDE Podcast] From lab to market: Filipino scientists merge tech innovation with business

Follow us on Spotify BusinessWorld B-Side

Hemogen is a possible business spin-off that’s composed of a team of scientists from the DoST’s Philippine Nuclear Research Institute. With the institute’s radiation technology, the team was able to develop materials that can control severe bleeding in trauma patients. In this B-Side episode, two of the team members talk about Hemogen’s plans for commercializing the product.

Interview by Patricia Mirasol
Audio editing by Jayson Mariñas

Follow us on Spotify BusinessWorld B-Side

China unveils plan to build ‘strong education nation’ by 2035

ALEJANDRO LUENGO-UNSPLASH

 – China issued its first national action plan to build a “strong education nation” by 2035, which it said would help coordinate its education development, improve efficiencies in innovation and build a “strong country”.

The plan, issued by the Communist Party’s central committee and the State Council on Sunday, aims to establish a “high quality education system” with accessibility and quality “among the best in the world.”

The announcement was made after data on Friday showed China’s population fell for a third consecutive year in 2024, with the number of deaths outpacing a slight increase in births, and experts cautioning that the downturn will worsen in the coming years.

High childcare and education costs have been a key factor for many young Chinese opting out of having children, at a time when many face uncertainty over their job prospects amid sluggish economic growth.

“By 2035, an education power will be built,” the official Xinhua news agency said, adding that China would explore gradually expanding the scope of free education, increase “high-quality” undergraduate enrolment, expand postgraduate education, and raise the proportion of doctoral students.

The plan aims to promote “healthy growth and all-round development of students”, making sure primary and secondary school students have at least two hours of physical activity daily, to effectively control the myopia, or nearsightedness, and obesity rates.

“Popularizing” mental health education and establishing a national student mental health monitoring and early warning system would also be implemented, it said.

It also aims to narrow the gap between urban and rural areas to improve the operating conditions of small-scale rural schools and improve the care system for children with disabilities and those belonging to agricultural migrant populations.

The plan also aims to steadily increase the supply of kindergarten places and the accessibility of preschool education. – Reuters

Trump promises harsh immigration limits on inauguration eve

 – Donald Trump told thousands of roaring supporters he would impose severe limits on immigration on his first day in office, vowing to swiftly fulfill the central promise of his presidential campaign at a rally on Sunday inside a packed Washington arena a day before he returns to power.

“By the time the sun sets tomorrow, the invasion of our country will have come to a halt,” he said to cheers at a “Make America Great Again Victory Rally” at the Capital One Arena.

Mr. Trump repeated his campaign pledge to launch the largest deportation effort in U.S. history, which would remove millions of immigrants. An operation of that scale, however, would likely take years and be hugely costly.

The rally resembled the free-wheeling campaign speeches that have been a Trump staple since his first serious White House run in 2016, with the former and future president delivering a mix of boasts, false claims and sweeping promises to the delight of the crowd.

“This is the greatest political movement in American history, and 75 days ago, we achieved the most epic political victory our country has ever seen,” he said. “Starting tomorrow, I will act with historic speed of strength and fix every single crisis facing our country.”

The event marked his first major address in Washington since his speech on Jan. 6, 2021, that preceded the storming of the U.S. Capitol by an angry mob of his supporters. Mr. Trump has said he will pardon many of the more than 1,500 people convicted or charged in connection with the attack.

Mr. Trump’s rally, along with his inaugural address on Monday, could preview the tone he plans to adopt during his second White House term. In recent weeks, Mr. Trump has bewildered foreign allies by musing aloud about taking over Greenland and the Panama Canal and turning Canada into a U.S. state.

He vowed to repeal “every radical and foolish executive order of the Biden administration” within hours of assuming the presidency at noon ET (1700 GMT).

A source familiar with the planning said Trump will take more than 200 executive actions on Monday.

Border security will figure prominently in Mr. Trump’s first executive orders, another source said, including classifying drug cartels as “foreign terrorist organizations,” declaring an emergency at the U.S.-Mexico border and moving toward reinstatement of the “Remain in Mexico” policy that forces non-Mexican asylum seekers to wait in Mexico for their U.S. court dates.

Mr. Trump’s deportation plans have unsettled immigrants subject to removal, including some who immigrant advocates say are law-abiding, long-term residents with U.S.-citizen spouses and children.

Mr. Trump said he would “get radical woke ideologies the hell out of our military” and order the military to construct a missile defense shield over the U.S., though he has yet to offer details on how to carry it out.

He also pledged to release classified documents relating to the assassinations of President John F. Kennedy in 1963 and his brother Senator Robert Kennedy and civil rights leader Martin Luther King Jr., both in 1968.

The indoor hockey and basketball venue will also host some of Monday’s inauguration festivities after forecasts of bitter cold prompted officials to move the planned outdoor events inside.

 

BIDEN’S LAST HURRAH

Earlier on Sunday, Mr. Trump had breakfast with Republican U.S. senators at Blair House, the guest quarters across from the White House. John Cornyn, Susan Collins, Ted Cruz, Rick Scott and Tim Scott were among the attendees seen leaving the event.

He later placed a wreath at the Tomb of the Unknown Soldier at Arlington National Cemetery outside Washington. Mr. Trump saluted the tomb as a military bugler played “Taps.”

Ahead of the event, Mr. Trump’s fans, many dressed in the campaign’s trademark red jackets and MAGA hats, waited in a cold, driving rain along several downtown Washington blocks, some chanting “USA! USA!”

Val Tordjman, 58, had traveled across the country from Denver with tickets to watch the inauguration. When he heard the ceremony was being moved inside, notably cutting the size of the in-person audience, he said, “I felt like crying.”

Mr. Tordjman said he planned to spend the night on the street next to the arena, despite temperatures forecast to plunge to around 19 degrees Fahrenheit (-7 degrees Celsius). He said he had yet to see Trump in person.

“This is a once in a lifetime opportunity,” he said.

Large swaths of the streets around the U.S. Capitol and White House have been blocked off by steel fences since last week, and police were visible throughout the city.

TikTok CEO Shou Zi Chew planned to attend the rally, hours after the company announced it was restoring its service thanks to Trump’s promise to delay a U.S. ban that took effect on Sunday. Chew is also expected to join other tech executives at Trump’s inauguration on Monday, including the world’s richest man, Elon Musk, a close Trump confidant who made a brief appearance on stage with Trump.

Mr. Trump took credit for bringing TikTok back online and said the U.S. would do a “joint venture” to save the app alongside bidders to buy the company.

President Joe Biden, meanwhile, made his last official trip as president on Sunday to Charleston, South Carolina, to mark Martin Luther King Jr. Day, which is also on Monday. He attended services and spoke about King’s legacy at Royal Missionary Baptist Church, while also urging despondent fellow Democrats not to give up hope.

Mr. Trump will take the presidential oath of office inside the rotunda of the Capitol building after cold weather prompted organizers to move the ceremony indoors. Approximately 25,000 law enforcement personnel will be on hand to provide security. – Reuters

Malaysia central bank to hold key rate at 3.0% through end-2025

REUTERS

 – Bank Negara Malaysia (BNM) will keep its key policy rate unchanged at 3.00% for the 10th consecutive meeting on Wednesday and maintain it there throughout this year as economic growth remains strong and inflation stays under control, a Reuters poll found.

While Malaysia’s economy is expected to post strong growth of 5.1% last year, inflation – 1.8% in November – has remained largely subdued, suggesting BNM will be in no rush to cut rates as it aims to avoid further weakening of the ringgit.

The currency has depreciated about 2.3% since Donald Trump’s victory in the U.S. presidential election in November.

All 30 economists in the Jan. 10-17 Reuters poll predicted BNM would leave its overnight policy rate at 3.00% on Jan. 22 and maintain it there throughout the year, a view unchanged for over a year.

This contrasts with other central banks in the region – Bank Indonesia, the Bank of Thailand, the Philippine central bank and the Bank of Korea – which began their easing cycles in 2024.

“The strength in the economy, exceeding its growth target in 2024 means, BNM is in no hurry to cut rates to support growth, and inflation is well under control, meaning there is no need to increase rates too,” said Heron Lim, an economist at Moody’s Analytics.

While BNM does not have a currency mandate, its November policy statement indicated a more cautious approach due to the possibility of increased volatility in the ringgit, driven by a stronger dollar and heavier tariffs under Trump.

The central bank’s outlook aligns with poll results, which suggest it will avoid easing this year to prevent the currency from weakening further.

“The slower easing cycle from the U.S. Fed means, BNM will have to weigh the strength of the currency, but it will likely need to wait for more clarity from the U.S. Fed before it acts,” Lim added.

Median forecasts showed economic growth in Malaysia would average 4.7% in 2025 and 4.6% in 2026, while inflation will average 2.4% in 2025 and 2026, broadly unchanged from the last poll.

Even though inflation trended lower in 2024 and growth remained stable, the central bank said in its November statement it would remain vigilant about domestic inflation and growth trajectories going into 2025.

“We think economic growth will soften further. But with inflation set to rise on the back of subsidy cuts, the central bank will keep interest rates unchanged for the foreseeable future,” wrote Gareth Leather, senior Asia economist at Capital Economics. – Reuters

Trump says Apple CEO to make large investment in US

FILE PHOTO | By Official White House Photo - https://www.whitehouse.gov/briefings-statements/photos-of-the-week-042718/, Public Domain, https://commons.wikimedia.org/w/index.php?curid=71707805

 – U.S. President-elect Donald Trump said on Sunday he spoke with Apple CEO Tim Cook.

“He said they’re going to make a massive investment in the United States because of our big election win,” Mr. Trump said at a rally ahead of his inauguration on Monday.

The Cupertino, California-based company did not immediately respond to a request for comment.

Apple said in 2021 that it has plans to commit $430 billion in U.S. investments and add 20,000 new jobs across the country over a five-year period. – Reuters

China’s ageing villages face yawning healthcare gap in fragile economy

STOCK PHOTO | Image by Adrian from Pixabay

 – David Wei had to carry his nephew on his back for 3 km (1.9 miles) after the younger man suffered a heart attack, staggering down a road being repaired in rural China, while an ambulance took 90 minutes to drive out from the city and save him.

By the time the nephew had his second cardiac arrest last year, at age 53, that section of the road to his village had been fixed, but a delay in calling the ambulance meant it could not arrive in time.

“If we’d lived in the city he might have had a chance,” said 60-year-old Wei, sitting by a charcoal-burning brazier in his two-story home in the mountains of Duan Yao county, in China’s southern region of Guangxi.

His experience shows how challenging it can be to get medical care in some rural areas, a task that will only get more critical in coming years for ageing rural communities, where about 120 million people are already 60 or older.

China’s development model is at a crossroads, say health and population experts, with a choice between much higher spending on pensions and healthcare or industrial upgrades and urbanization, which Beijing sees as key to bolstering growth.

At a twice-a-decade meeting of the ruling Communist Party last year, Beijing promised to pursue both.

However, spending vast resources on rural healthcare was “not a good move” right now, a government adviser told Reuters.

“High-quality doctors are unwilling to live in rural areas and low-quality ones cannot provide good services. This is a structural problem,” added the adviser, speaking on condition of anonymity, as the topic is a sensitive one.

“The key is building townships, which is lagging behind.”

China’s National Health Commission, and the State Council Information Office, which handles media queries for the government, did not immediately respond to requests for comment.

Critics say that for China to choose urban and industrial investment over welfare programs for its low-income rural population would present it with long-term growth risks greater than the short-term gains.

It could exacerbate overcapacity in factories, weaken consumption, and worsen the demographic crisis by pushing people into cities, where they take on busy jobs and live in small, costly apartments, so they tend to have fewer children.

“When the prospect of economic development is in doubt, the Chinese government … has consistently prioritized investment and growth over social spending and welfare,” said Jundai Liu, an expert on rural China at the University of Michigan.

“The irony is that such policy priorities are a major contributor to China’s population decline – what the government perceives to be the obstacle to economic development,” said Liu, who predicts an accelerated “hollowing out” of rural China.

But moving to the city is hardly an option for ageing farmers like Wei, who says, “We don’t have land there. We would need money for food.”

Not to tackle villagers’ healthcare needs raises poverty and life expectancy risks in their communities, said Sasha Han, an assistant professor at the Chinese Academy of Medical Sciences.

“Rural residents who aren’t able to relocate may experience feelings of being left behind and increasingly marginalized,” Han said.

 

RURAL DOCTORS FLEE

To be sure, during its four decades of breakneck growth, China has made dramatic progress in rural healthcare. In the era of Mao Zedong, most villagers could rely only on so-called “barefoot doctors”, or farmers with minimal medical training.

One assistant physician in Yongchuan, a rural district of the sprawling southwestern city of Chongqing, says his hospital has extensive specialty departments and sophisticated equipment, including its own laboratory.

But the medical staff, numbering 120 to 130, can barely cope with the needs of the 60,000 people they serve.

“Sometimes I don’t even have time to drink water,” said the doctor, who sought anonymity to speak about the issues.

China’s biggest healthcare challenge is attracting qualified medical staff to rural areas, said Shenglan Tang, a global health professor at Duke-Kunshan University.

Doctors and medical students cite low pay and heavy workloads. A lack of good schools and other facilities deters young health workers from moving families to the countryside, Tang said.

Over the past decade, the number of urban doctors almost doubled to 4.1 million, while the figure for rural doctors dropped 42% to 622,000, more than twice the rate at which the rural population shrank, National Health Commission data show.

Large cities like Chengdu, the capital of the western province of Sichuan, “extract the good doctors from the small cities. And the hospitals in the small cities extract the good doctors from rural areas,” a Chengdu doctor said.

Shirley Yang, 24, a postgraduate medical student and resident physician in Zhuhai, a city in the southern province of Guangdong, said monthly incomes in the provincial capital of Guangzhou exceed 20,000 yuan ($2,750), or 10 times those of rural hospitals.

“We wouldn’t consider rural hospitals,” said Yang, referring to medical students. “The salary gap is significant.”

Communities such as Wei’s, which are further away from cities, are especially underserved, with the nearest clinic 10 km (6 miles) away, though Wei said villagers only sought treatment in the city.

When Reuters visited, a sign on the door showed the clinic was closed for three hours. An off-duty nurse said the staff there could only treat colds and fevers.

Xiang, a 43-year-old village doctor in Hunan province, who declined to provide her last name, said she was given only a stethoscope and thermometer, and could only treat colds. She used her own funds to buy a blood sugar measuring device.

She walks door-to-door to monitor hypertension and diabetes, but villagers often turn her away because, she said, “They think the services are not professional enough.”

Although she estimates more than half of those registered in the village now work in cities, she still has a grueling job.

“I provide medical care, grow vegetables to sell, and have a side job to support my family,” said Xiang, whose salary as a doctor is 1,000 yuan a month.

 

LURING STUDENTS

China spent 7.2% of its economic output on healthcare in 2023, the National Health Commission says. That compares with expenditure of 11.5% and 9.7% of GDP in heavily-industrialized and ageing Japan and South Korea respectively, OECD data shows.

High local government debt will make it difficult for China to boost investment in healthcare.

But one strategy by which authorities plan to “markedly narrow” the rural-urban healthcare gap by 2035, laid out in an official policy document from September, is by scrapping tuition fees for some medical students.

In return, the fledgling doctors will pledge to work in rural clinics in pre-graduation placements or after graduating.

A student assigned to a village in central China said she had signed a temporary contract with a clinic there, letting her continue studying for her physician’s diploma and possibly join a post-graduate program.

Once her contract ends, she added, “If the employment environment is still not good, I will just give up and work in other industries.” – Reuters

TikTok is restoring service, thanks Trump

MAY GAUTHIER-UNSPLASH

 – TikTok began restoring its services on Sunday after President-elect Donald Trump said he would revive the app’s access in the U.S. when he returns to power on Monday.

“Frankly, we have no choice. We have to save it,” Mr. Trump said at a rally on Sunday ahead of his inauguration, adding that the U.S. will seek a joint venture to restore the short-video sharing app used by 170 million Americans.

In a message to users hours before the rally, TikTok said: “As a result of president Trump’s efforts, TikTok is back in the U.S.”

TikTok also issued an earlier statement after U.S. users reported being able to access the Chinese-owned service’s website while the far more widely used TikTok app itself began coming back online for some users with just a few basic services. As of Sunday evening, the app remained unavailable for download on U.S. app stores.

“In agreement with our service providers, TikTok is in the process of restoring service,” TikTok said in the earlier statement that also thanked Mr. Trump for “providing the necessary clarity and assurance to our service providers that they will face no penalties (for) providing TikTok to over 170 million Americans and allowing over 7 million small businesses to thrive.”

TikTok’s public thanks to Trump, the day before he takes office, comes at a tense moment in U.S.-China relations. Trump has said he intends to place tariffs on China but has also indicated he hopes to have more direct contact with China’s leader.

The Chinese Embassy in Washington on Friday accused the U.S. of using unfair state power to suppress TikTok. “China will take all necessary measures to resolutely safeguard its legitimate rights and interests,” a spokesperson said.

TikTok stopped working for U.S. users late on Saturday before a law shutting it down on national security grounds took effect on Sunday. U.S. officials had warned that under Chinese parent company ByteDance, there was a risk of Americans’ data being misused.

Mr. Trump said he would “extend the period of time before the law’s prohibitions take effect, so that we can make a deal to protect our national security.”

“I would like the United States to have a 50% ownership position in a joint venture,” he wrote on Truth Social.

Mr. Trump said the executive order would specify there would be no liability for any company that helped keep TikTok from going dark before his order.

Mr. Trump had earlier said he would most likely give TikTok a 90-day reprieve from the ban after he takes office, a promise TikTok cited in a notice posted to users on the app.

“A law banning TikTok has been enacted in the U.S. Unfortunately, that means you can’t use TikTok for now. We are fortunate that President Trump has indicated that he will work with us on a solution to reinstate TikTok once he takes office. Please stay tuned,” a message notified users of TikTok, which disappeared from Apple and Google app stores late on Saturday.

Mr. Trump saving TikTok represents a reversal in stance from his first term in office. In 2020, he aimed to ban the app over concerns the company was sharing Americans’ personal info with the Chinese government. More recently, Mr. Trump has said he has “a warm spot in my heart for TikTok,” crediting the app with helping him win over young voters in the 2024 election.

In August 2020, Mr. Trump signed an executive order giving ByteDance 90 days to sell TikTok but then blessed a deal structured as a partnership rather than a divestment that would have included both Oracle and Walmart taking stakes in the new company.

Not everyone in Mr. Trump’s Republican Party agreed with efforts to get around the law and “Save TikTok”.

Republican senators Tom Cotton and Pete Ricketts said in a joint statement: “Now that the law has taken effect, there is no legal basis for any kind of ‘extension’ of its effective date. For TikTok to come back online in the future, ByteDance must agree to a sale that satisfies the law’s qualified-divestiture requirements by severing all ties between TikTok and Communist China.”

The U.S. has never banned a major social media platform. The law passed overwhelmingly by Congress gives the incoming Trump administration sweeping authority to ban or seek the sale of other Chinese-owned apps.

Other apps owned by ByteDance, including video editing app CapCut and lifestyle social app Lemon8, were also offline and unavailable in U.S. app stores as of late Saturday.

Apple and Google did not immediately respond to requests for comment.

 

‘HAIR ON FIRE’ MOMENT

Web searches for “VPN” spiked in the minutes after U.S. users lost access to TikTok, according to Google Trends.

Users on Instagram fretted about whether they would still receive merchandise they had bought on TikTok Shop, the video platform’s e-commerce arm.

Marketing firms reliant on TikTok have rushed to prepare contingency plans in what one executive described as a “hair on fire” moment after months of conventional wisdom saying that a solution would materialize to keep the app running.

TikTok CEO Shou Zi Chew plans to attend the U.S. presidential inauguration and attend a rally with Trump on Sunday, a source told Reuters.

Suitors including former Los Angeles Dodgers owner Frank McCourt have expressed interest in the fast-growing business that analysts estimate could be worth as much as $50 billion. Media reports say Beijing has also held talks about selling TikTok’s U.S. operations to billionaire and Trump ally Elon Musk, though the company has denied that.

U.S. search engine startup Perplexity AI submitted a bid on Saturday to ByteDance for Perplexity to merge with TikTok U.S., a source familiar with the company’s plans told Reuters. Perplexity would merge with TikTok U.S. and create a new entity by combining the merged company with other partners, the person added.

Privately held ByteDance is about 60% owned by institutional investors such as BlackRock and General Atlantic, while its founders and employees own 20% each. It has more than 7,000 employees in the U.S. – Reuters

Wallet Detox 101: Shake Off That Holiday Hangover with Maya

The holidays may have left your wallet feeling lighter than you’d like, but that doesn’t mean you have to sacrifice your style or comfort in the new year. If you’re ready to bounce back and keep your home (and life) feeling cozy without blowing your budget, Maya, the #1 Digital Bank App in the Philippines, has you covered!

With these simple, practical tips plus Maya’s high-yield savings and flexible credit options, you’ll be on track to start 2025 feeling financially secure and confident.

1. Run through Your Post-Holiday Finances

Think of this like a quick declutter session for your bank account. Gather those holiday receipts, check your statements, and determine precisely where your money went last December. Did impulse gifting or last-minute party expenses take a bigger bite out of your budget than expected? Maya makes it easy to track spending in real time, so you’ll know precisely where you stand and can set more realistic goals moving forward.

2. Try a One-Week Spending Freeze

Before you commit to a new monthly budget, give yourself a short “financial detox” to see what expenses you truly need. It could be pressing pause on non-essential buys or only covering the basics like groceries and bills. Afterwards, check your Maya app to see how much you saved and use that mini success as motivation to set a new monthly spending plan.

3. Stay in Control with a Prepaid Budget

After mapping out your financial plan, keep your day-to-day spending in check with the Maya Card. This debit card allows you to spend only what’s in your Maya Wallet, giving you a real-time grip on every peso. It’s perfect for everyday buys like groceries or a quick coffee run, minus the risk of overshooting your budget. You’ll also see your balance update instantly in the Maya app, so you know exactly where your money is going and can dodge impulse splurges.

4. Give Your Cash a “Spa Day” in High-Yield Savings

Once you’ve taken stock, it’s time to let your money do the heavy lifting. Maya’s high-yield savings, offering up to 15% per annum (p.a.), is like giving your cash a refreshing spa day. Whether you deposit a big chunk all at once or chip in smaller amounts throughout the month, watching your balance grow feels like a little win every single day.

Want to take it a step further? Start fresh financial goals for the new year with Maya Personal Goals, where you can set up to five unique targets, each earning up to 6% p.a. until Jan. 31. Need more structure? Try Time Deposit Plus — lock in your savings for 3, 6, or 12 months with rates as high as 5.75% p.a. It’s the ultimate passive way to recover from holiday spending while building toward something even better.

5. Lean on Maya Easy Credit for Emergencies

Sometimes life just can’t wait for your monthly budget to catch up — like when you need a gadget upgrade or do home improvements as you enter the new year. Instead of draining your newly revived savings, Maya Easy Credit acts as your financial safety, so you can keep that wallet detox momentum going strong.

With a little planning and a few smart swaps, you can turn January into a fresh start for your finances. To learn more, visit maya.ph or mayabank.ph. And don’t forget to follow @mayaiseverything on Facebook, Instagram, YouTube, and TikTok, plus @mayaofficialph on Twitter for more tips, tricks, and updates on how to stay budget-savvy all year long.

Maya Philippines, Inc. and Maya Bank, Inc. are regulated by the Bangko Sentral ng Pilipinas (www.bsp.gov.ph). Deposits are insured by PDIC up to P500,000 per depositor.

 

 


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IMF sees faster PHL growth until 2026

Shirts celebrating the new year are for sale at a stall in Divisoria market, Manila, Dec. 27, 2024. — PHILIPPINE STAR/EDD GUMBAN

By Luisa Maria Jacinta C. Jocson, Reporter

THE PHILIPPINE ECONOMY will continue to accelerate from this year to 2026 as domestic demand remains robust, the International Monetary Fund (IMF) said, but warned risks are tilted to the downside due to possible external shocks.

At the same time, Finance Secretary Ralph G. Recto said that the Philippines likely failed to hit its 6-6.5% growth goal for 2024, amid typhoons.

“If it hits 6% in the fourth quarter, I’ll be happy with that. I don’t think it will hit 6% for 2024, but I think it will surpass 6% in 2025,” Mr. Recto told reporters on Jan. 16.

For the first nine months of 2024, Philippine growth averaged 5.8%, the same as the IMF’s projection for the full year. Preliminary fourth-quarter and full-year gross domestic product (GDP) data will be released on Jan. 30.

In its latest World Economic Outlook  update, the IMF kept its GDP forecasts for the Philippines at 6.1% this year and 6.3% for 2026, the same as its projections in October.

These would fall within the government’s 6-8% GDP target for 2025 and 2026.

“Growth for 2025-2026 is projected to be primarily driven by domestic demand, namely consumption and investment,” an IMF spokesperson said in an e-mail.

“Consumption growth will be supported by lower food prices and gradual monetary policy easing,” it added.

Latest data from the Philippine Statistics Authority showed household consumption, which accounts for over three-fourths of the economy, jumped by 5.1% in the third quarter from 4.7% a quarter ago.

“Investment growth is expected to pick up on the back of a sustained public investment push, gradually declining borrowing costs and acceleration in the implementation of public-private partnership projects and foreign direct investments (FDI), following recent legislative reforms,” the IMF said.

Gross capital formation, the investment component of the economy, expanded by 13.1% in the third quarter, a turnaround from the 0.3% dip a year ago.

However, the IMF said that the balance of risks to the growth outlook is tilted to the downside, citing external risks.

“Some of the main downside risks include recurrent commodity price volatility, and new supply shocks, which may necessitate tighter monetary policy to anchor inflation expectations,” it said.

The IMF also cited shocks such as geopolitical tensions which could disrupt trade and other financial flows.

“Higher for longer policy rates in advanced economies (could cause) capital outflows, and tighter financial conditions,” it added.

The multilateral institution also cited climate shocks and extreme weather events which would lead to economic losses.

“There are also upside risks to the outlook, including from higher-than-expected growth in private investment through public-private partnerships, higher inward FDI following a faster-than-expected global recovery, or stronger reform momentum,” it added.

INFLATION
Meanwhile, the IMF said it expects inflation to remain within the central bank’s 2-4% target range in the near to medium term.

It projects headline inflation to average 2.8% this year and 3% in 2026.

“However, risks are tilted to the upside, as rising geopolitical tensions, extreme climate events, and recurrent commodity price volatility continue to pose upside risks to inflation,” it said.

Headline inflation averaged 3.2% in 2024, well within the central bank target.

This year, the Bangko Sentral ng Pilipinas (BSP) expects inflation to average 3.3%.

The IMF said the central bank can gradually lower borrowing costs and “move toward a neutral stance.”

“With inflation and inflation expectations returning to the target and the opening of a negative output gap, continued reduction of the policy rate will be appropriate,” it said.

The BSP slashed interest rates by 75 basis points (bps) last year, delivering three straight rate cuts since it began its easing cycle in August.

The central bank has signaled further easing this year as the current policy rate at 5.75% is still in “restrictive territory,” BSP Governor Eli M. Remolona, Jr. earlier said.

“Along the declining rate path, the BSP must ensure that its stance continues to anchor inflation and inflation expectations firmly within the target band.”

“Amidst prevailing uncertainty, a data-dependent approach, and clear and effective communication around policy settings will be important to manage expectations and provide clarity on the BSP’s reaction function,” it added.