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Far-right leaders hold rally to ‘Make Europe Great Again’

A European Union flag is seen in Stockholm, Sweden, July 17, 2023. — REUTERS

MADRID — Leaders of far-right parties in the European Parliament’s third-largest voting bloc, Patriots for Europe, praised Donald Trump’s return to power at a gathering in Madrid on Saturday held under the slogan “Make Europe Great Again.”

The event featured Hungarian Prime Minister Viktor Orban and Italian deputy premier Matteo Salvini, as well as the leaders of France’s National Rally  Marine Le Pen, and the Netherlands’ PVV party, Geert Wilders.

“The Trump tornado has changed the world in just a few weeks … yesterday we were heretics, today we’re mainstream,” Mr. Orban told around 2,000 supporters, most of whom waved Spanish flags.

All the speakers railed against immigration and most called for a new “Reconquista,” a reference to the Medieval re-conquest of Muslim-controlled parts of the Iberian Peninsula by Christian kingdoms.

Earlier, former Estonian Finance Minister Martin Helme kicked off the rally following a video message by Venezuelan opposition leader Maria Corina Machado. His speech excoriating what he called “leftists” was interrupted by a topless activist from feminist group Femen chanting “Not one step back against fascism” in Spanish before she was ejected.

Other themes included frequent right-wing targets such as “wokism” — a term used pejoratively by some to describe left-leaning political views on race, gender and sexuality — migrant rescue NGOs, European Commission’s Ursula von der Leyen and Spanish Prime Minister Pedro Sanchez, whose names were met with loud jeers.

Patriots was formed after the May 2024 European election and consists of 86 MEPs from 14 countries, representing a combined 19 million votes. Madrid was chosen as venue for their first official summit so that Patriots’ president Santiago Abascal, who leads Spain’s Vox party, could host.

Spain’s ruling Socialist Party said in a statement it rejected what it described as a “coven of ultras”, adding: “They won’t succeed in making their black-and-white world view prevail in this country.”

Vox has steadily gained ground in several polls over the past months. According to the Centre for Sociological Studies, it garners the strongest support among young men, members of the military and law enforcement.

Despite Patriots’ stated goal of unifying Europe’s nationalist conservatives, some of the EU’s most influential parties in that camp — such as Italian Prime Minister Giorgia Meloni’s Brothers of Italy, Alternative for Germany and Poland’s Law and Justice — have refused to join. — Reuters

New Zealand to loosen visa rules to lure foreign investors

SULTHAN AULIYA-UNSPLASH

SYDNEY — New Zealand will relax visa rules to attract more foreign investors, in efforts to stimulate economic growth, its center-right government said on Sunday.

Immigration Minister Erica Stanford said the country’s investor visa category would be made “simpler and more flexible” to encourage investors to choose New Zealand for their “capital, skills and international connections.”

“These changes will turbocharge our economic growth, bringing brighter days ahead for all Kiwis,” Ms. Stanford said in a statement announcing that two new visa categories — for “higher-risk investments” and “mixed investments” — would be created.

The changes, to take effect from April 1, follow the government’s recent relaxation of visa rules allowing holidaymakers to work remotely while visiting the country, aimed at boosting its tourism sector.

After slipping into a technical recession in the third quarter of 2024, the New Zealand government is seeking ways to bolster growth. In January, it announced plans to set up Invest New Zealand, part of the government’s international economic development agency, to serve as a one-stop-shop for overseas investment. — Reuters

Trump says he has spoken to Putin about ending war in Ukraine — New York Post

RAWPIXEL.COM

US PRESIDENT Donald Trump said that he has talked to Russian President Vladimir Putin on the phone to discuss an end to the war in Ukraine, the New York Post reported late on Saturday.

In an interview aboard Air Force One on Friday Mr. Trump said that he had “better not say,” when asked how many times the two leaders have spoken.

“He (Putin) wants to see people stop dying,” Mr. Trump told the New York Post.

Neither the Kremlin nor the White House immediately responded to Reuters’ request for comment outside business hours.

In late January, Kremlin spokesperson Dmitry Peskov said that Mr. Putin is ready to hold a phone call with Mr. Trump and Moscow is waiting for word from Washington that it is ready too.

On Friday, Mr. Trump said he would probably meet Ukrainian President Volodymyr Zelensky next week to discuss the end of the war.

The war, which began with Russia’s full-scale invasion of Ukraine, will mark its third anniversary on Feb. 24. Thousands of people, the vast majority of them Ukrainian, have been killed during the conflict.

Mr. Trump told the New York Post that he has “always had a good relationship with Putin” and that he has a concrete plan to end the war. But he did not disclose further details.

“I hope it’s fast,” Mr. Trump said. “Every day people are dying. This war is so bad in Ukraine. I want to end this damn thing.” — Reuters

UK’s tougher immigration policy risks trapping victims in modern slavery

REUTERS

LONDON — Thousands of victims of modern slavery are being denied support because of Britain’s crackdown on illegal migration, according to more than a dozen sources, a decade after the approval of legislation that put the country at the forefront of the global fight against human trafficking.

Britain’s Modern Slavery Act of 2015 forced large businesses to tackle slavery in their supply chains and strengthened existing protections for victims.

But those protections have been eroded by rules introduced in 2023 to curb illegal migration, as the political priority switched to dealing with the tens of thousands of migrants arriving in Britain each year aboard small boats.

Reuters interviewed more than a dozen individuals in government, law enforcement, the judiciary and charities who said the tougher laws were leaving thousands of victims trapped in modern slavery, both by denying requests for support and by stopping others from coming forward for fear of being deported.

“Modern slavery is not an immigration issue; it’s a human rights issue,” said Kathy Betteridge, a director at the Salvation Army, which has operated the government contract to support victims for the last 14 years.

After new legislation required victims to present greater proof of exploitation to qualify for state support, the share of rejections in slavery cases leaped to 45% in 2023, from just 11% in 2022, official data show. In the first nine months of 2024, the figure was 46%.

In 2023, the Home Office — Britain’s Interior ministry — identified around 17,000 people as potential victims of modern slavery, and a further 13,587 in the first nine months of last year. The bulk of the referrals were migrants, often brought to Britain to work in nail salons, car washes, sex work and the illicit drug trade, according to police.

That may only be the tip of the iceberg. A report by a House of Lords committee, published in October, said there were an estimated 130,000 victims of modern slavery in Britain.

“When the Modern Slavery Act was passed in 2015, the UK was said to be world leading. That is no longer the case,” said the report, published in October. It urged the government to amend the immigration rules.

Britain’s Labour government, which came to power in July, has not altered the legislation, despite saying while in opposition that the rules were unfair.

Last week, Prime Minister Keir Starmer’s government retained a Conservative ban on asylum seekers being able to claim modern slavery protections despite Mr. Starmer having said in the past it drove “a coach and horses” through protections for trafficked women.

A Home Office spokesperson said the government was working to clear the backlog of those waiting for final decisions on their claims for modern slavery support and would toughen legislation against criminal gangs responsible for exploitation.

“It is unacceptable in today’s Britain that thousands of vulnerable people — mostly women and children — are being forced to work against their will, often while facing regular physical and sexual abuse,” the spokesperson said.

NO PROOF SYSTEM IS MISUSED
Conservative former-prime minister Theresa May, who launched the Modern Slavery Act while interior minister, described it then as “the great human rights issue of our time.”

The law strengthened the National Referral Mechanism (NRM), the United Kingdom’s  (UK) system for identifying and protecting victims created in 2009 in accordance with an international anti-trafficking treaty.

Under the NRM, a small number of charities and public bodies — such as the Border Force, police or the Home Office — can refer someone to receive support.

After Ms. May’s premiership ended in 2019, Conservative governments argued that illegal migrants were using the system to evade deportation. The rules introduced in 2023 demanded a higher threshold of proof for modern slavery.

Elizabeth Butler-Sloss, a retired judge who sat on the House of Lords committee that examined the Modern Slavery Act, said the previous Conservative government was “frantic” about immigration and had failed to present proof there was widespread misuse of the system.

In May, her committee interviewed Laura Farris, who was victims and safeguarding minister at the time, and asked if the government possessed such evidence.

“Well, no. We do not,” Ms. Farris answered. “The Home Office will make some decisions in the affirmative and some in the negative, but the Home Office cannot be totally sure that those decisions are always good ones.”

For the first nine months of 2024, the number of people removed from the NRM process for posing as a victim, known as a bad faith disqualification, was eight, compared to the thousands of referrals into the system that year. For 2023, the figure was zero.

LACK OF INFORMATION
Reuters spoke to a suspected victim of modern slavery who was rejected last year from the NRM at the first stage of the review process.

In that stage, a suspected victim’s claim is assessed by a Home Office unit to determine whether there are reasonable grounds to believe they are a victim. The second stage, which can take months or years, considers whether there are conclusive grounds.

The Filipino woman, who asked not to be named for fear of retaliation, said she was employed as a housekeeper and live-in nanny for a family in Qatar. She said she was made to work from morning until night, suffering physical and sexual abuse.

Reuters was unable to reach the family for comment.

Because the father of the family was a senior police officer, she was afraid to approach authorities in Qatar. But when the family brought her on a trip to London, she escaped.

When she sought to apply for asylum, she was referred into the NRM by the Home Office, but officials rejected her claim, citing a lack of information. Part of the issue was, according to an April 2024 letter reviewed by Reuters, that officials in another Home Office department had not responded to messages asking for more information about her claim.

Data released by the Home Office in November showed that through 2020 to 2022, insufficient information accounted for just 3%-4% of first-stage rejections. But that jumped to 54% in 2023 and stood at 53% for the first nine months of 2024.

Charities say it is nearly impossible for victims in vulnerable situations to provide comprehensive evidence, especially when they are on the run from perpetrators.

FOREIGNERS TREATED MORE HARSHLY?
Data from the United Nations’ International Organization for Migration (IOM) suggests the NRM, since the regulations were tightened, may have started to treat foreign applicants more harshly.

In analysis shared with Reuters, the IOM said around 85% of British people received positive first-stage decisions in 2023 and the first nine months of 2024, versus only around 44% for foreigners, a much wider gap than in previous years.

Additionally, in the first nine months of 2024, around 68% of reconsideration requests for rejected applications were successful, raising questions about the quality of initial Home Office decision-making, IOM UK anti-trafficking specialist Patrick Burland said.

The Filipino woman, who has three children in the Philippines, overturned her first-round rejection through a reconsideration request filed with the help of a charity, according to a decision seen by Reuters.

She is now awaiting a second-stage, or conclusive grounds, decision, which if positive, would formally identify her as a victim and could entitle her to apply for permission to remain in the UK for a set period.

More than 20,000 people were waiting for a conclusive grounds decision at the end of September, official data show.

HIDDEN CRIME
A former director of the government agency tackling labor exploitation and modern slavery, the Gangmasters and Labour Abuse Authority (GLAA), said the agency had warned the Home Office that the tougher rules would have a “chilling effect” on victim engagement and make it a lot harder to catch criminals.

The ex-director, who asked not to be named to talk more freely, said the agency sometimes refused to refer people into the NRM because of the tightened rules, even when their “gut instinct” told them they were a victim.

A positive initial, or reasonable grounds, decision provides a weekly financial allowance of around 75 pounds ($93) and accommodation if necessary. Many migrant victims with a positive initial decision don’t have the right to work while they await a conclusive grounds decision.

The Home Office spent a total of 124.6 million pounds ($154 million) in 2023/2024 on identifying and supporting victims of modern slavery, it said in response to a Reuters freedom of information request. The figure does not include costs related to certain programs for child victims, it added.

Britain’s Independent Anti-Slavery Commissioner Eleanor Lyons told Reuters that she did not think the NRM provided enough of an incentive to motivate criminals to misuse it.

She also said other efforts to reduce migration, such as the former policy to deport illegal migrants to Rwanda, had deterred potential victims from coming forward.

“We spoke to a victim. They thought that if they came forward and reported their exploitation, that that would automatically mean they were being sent to Rwanda,” Ms. Lyons said. — Reuters

Geothermal de-risking loan from ADB sought

EDC

THE Department of Energy (DoE) said it is hoping to finalize a loan from the Asian Development Bank (ADB) this year to launch a project that seeks to de-risk geothermal power investments.

“We’ve said we need geothermal de-risking, meaning to say the government and the private sector will share in the risks of exploration for geothermal,” Energy Undersecretary Rowena Cristina L. Guevara said at a forum on Friday.

“And we’re very happy to tell you that finally maybe we’ll have a loan from the Asian Development Bank just to do that,” she added. 

The DoE has tapped the ADB for technical assistance to develop and implement a geothermal de-risking facility.

“Geothermal cost is very high at the beginning but after the 20-year period when the loan has been paid for the capital, it will become very cheap,” Ms. Guevara said.

Energy Assistant Secretary Mylene C. Capongcol said in September that the Philippines may need to obtain an initial $250 million to de-risk projects for potential geothermal developers.

The Philippines’ installed geothermal energy capacity was 1,952 megawatts (MW) in 2023, making it the third-biggest geothermal producer.

The DoE is monitoring 35 geothermal service contracts as of July 2024. Of the total, 20 are in the pre-development stage and 15 are in the development or commercial stage.

The government is scheduled to conduct the auction proper for the third round of the Green Energy Auction Program (GEAP) on Tuesday, Feb. 11, for which it has identified 12 qualified bidders.

It is set to offer geothermal, impounding hydro, and pumped-storage hydro capacities totalling 4,650 MW.

GEAP aims to promote renewable energy as a primary source of energy through competitive selection. It is designed to help the government increase the share of renewable energy in the power mix to 35% by 2030 and to 50% by 2040. — Sheldeen Joy Talavera

Exports to US seen ‘robust’ even with trade war looming — Philexport

A worker uses a microscope at an electronics manufacturing assembly plant in Biñan, Laguna, April 20, 2016. — REUTERS

EXPORTS to the US are expected to remain robust, unaffected by a possible US-China trade war, the Philippine Exporters Confederation, Inc. (Philexport) said.

“I don’t see the 10% imposed on China having an effect on the Philippines because Chinese prices are low. Even adding the 10% will not stop the US from buying from China,” Philexport President Sergio Ortiz-Luis, Jr. said in a statement over the weekend.

Adding that he expects the “Philippine exports to the US, the country’s biggest export market, to remain robust, largely unaffected by the trade war between the two powerhouse economies.”

The US was the Philippines’ top export destination last year, accounting for $12.12 billion, or 16.6% of total exports. It was followed by Japan, China, Hong Kong, and Singapore.

In December, the Philippines exported $94 million worth of goods to the US, or 16.8% of total exports for the month.

“US President Donald J. Trump imposed broad tariffs on China that took effect on Feb. 4, while his tariff threats hang over other major trading partners, including Canada and Mexico,” Philexport said.

However, Mr. Trump has agreed to hold off levying 25% tariffs on Canada and Mexico for 30 days, while China responded with retaliatory tariffs on American products, including 15% on coal and liquefied natural gas and 10% on crude oil and agricultural machinery.

“It doesn’t look like he’s really serious because they know it would be harder if China engages in a trade war with the US,” said Mr. Ortiz-Luis.

He said Philexport is more concerned with Mr. Trump helping ease geopolitical tensions between the Philippines and China.

“We hope Trump can lower the temperature so we can recover the market we lost with our neighbors and China. Also, tourism and investment were also affected by geopolitics,” he added. — Justine Irish D. Tabile

Davao’s Cacao Culture to broaden sourcing via farm-management deals

CACAOCULTURE.PH

By Adrian H. Halili, Reporter

DAVAO-BASED chocolate brand Cacao Culture said it is taking a “farm adoption” approach to supporting farmers in the region and growing its bean-sourcing network.

“We’re not trying to be the biggest. We want to be (possibly be) the most collaborative,” Kenneth Reyes-Lao, founder and owner of Cacao Culture, told BusinessWorld.

Mr. Reyes-Lao and his family currently own a three-hectare cacao farm in Calinan, Davao City. It also supplements its cacao supply from small-holder farmers and cooperatives in Davao City.

He said that one of Cacao Culture’s long-term plans is to further expand its sourcing from the area.

“We need to grow the supply side which is the farms. So, through the Adopt-a-Farm program, we’re hoping to, under our care, manage around 20,000 to 50,000 trees,” he added.

“On other farms, there are trees that are unproductive or neglected. So, we move in to manage the farm, and then also be the ones to take up the beans. We’ll be buying from the farms that we adopt,” he said.

The company started in 2016 selling cacao seedlings, while the farm was established in 2017.

Mr. Reyes-Lao said that the business has since evolved from agriculture to selling chocolate products both made in-house or by other brands. It sells its products at its physical store in Davao and via e-commerce platforms.

“When we started in 2017, it was just the three hectares we planted, and then lately we realized that we were growing and the company needed supply,” he said. “Then we saw an opportunity to adopt a certain farm where we could apply our practices.”

“So far, this has worked (and) right now we have two farms under the program,” he added.

Among Cacao Culture Farms’ practices is the use of biochar in the growing process. This method enhances soil health and improves plant growth and crop nutrition.

He said that the husks of discarded cacao pods are burned and reused as biocharcoal.

“We were able to work with WasteX, a Singapore-based startup, that… provides equipment that can convert agricultural waste into biocharcoal,” Mr. Reyes-Lao added.

He said that the farm employs a 50-50 ratio of biocharcoal and traditional fertilizer.

Mr. Reyes-Lao added that its other sustainability practice is avoiding the use of plastic sleeves to cover cacao pods.

Cacao pods are typically covered in plastic sleeves to protect them from pests like cocoa pod borers, which lay eggs in the pods.

Additionally, he said that the company is looking to expand its physical store network over the next three to five years, mainly focusing on the Davao area.

“The land area of Davao is large, so we maybe need to create three to five shops just to service Davao City. Then maybe airports in Cagayan de Oro or Cebu,” he added.

Mr. Reyes-Lao said that expansion to Luzon will likely be pursued through e-commerce platforms or a commissary to service Metro Manila.

“We could set up a commissary or warehouses, because e-commerce wise, I think we can expand in Manila,” he added.

The Davao Region is the Philippines’ top producer of cacao, accounting for about 80% of the total production.

DBM backs calls for transparency in bicameral budget negotiations 

BUDGET SECRETARY AMENAH F. PANGANDAMAN — PHILIPPINE STAR/KRIZ JOHN ROSALES

DEPARTMENT of Budget and Management (DBM) Secretary Amenah F. Pangandaman has joined calls for more transparency and public participation in the private bicameral committee meetings to harmonize the two Congressional budget bills.

In a television appearance on Money Talks with Cathy Yang, asked if she would gather support among cabinet secretaries to publicize bicam meetings, Ms. Pangandaman said: “Yes! That’s what transparency is all about.”

Her remarks follow the emergence of legal challenges to the P6.326-trillion national budget for 2025.

The bicam committee meetings seek to harmonize the Senate and House versions of a bill such as the signed national budget for 2025. These are held behind closed doors, with the release of a report afterwards the only official public disclosure on the proceedings.

“Maybe we can (disclose more), during our Legislative-Executive Development Advisory Council (meetings). Also, we can probably make representations to the leadership in both houses if that’s possible. But, you know, it’s a constitutional mandate. It’s part of the budget process. You have to give it to them. It is a powerful force,” Ms. Pangandaman said.

Civil Society Organizations (CSO), the Makabayan bloc, former senator Panfilo M. Lacson, and Ako Bicol Rep. Elizaldy S. Co have proposed making bicam meetings on the national budget accessible to the public.

“While we want to push for the President’s budget to be the exact one, once it’s presented to the President, we also have to respect (the Congressional) mandate,” Ms. Pangandaman said.

President Ferdinand R. Marcos, Jr. called the 2025 national budget “suboptimal” in the form passed by Congress, citing the reduction in appropriations for vulnerable sectors.

On Feb. 8, criminal complaints were filed against Speaker Martin G. Romualdez and other legislators over the alleged P241 billion worth of insertions in the budget.

Ms. Pangandaman noted the ways in which the government has sought to make the budget transparent and accessible to the public. 

“Our website is very much comprehensive. Once we release our National Expenditure Program, the President’s budget, and even the General Appropriations Act, the next day it’s already there. We have a people’s budget,” she said.

She also said that the GAA report is written in layman’s terms despite its technical nature and is readily available on the DBM website.

“We’re top in the open budget survey for transparency. Because the DBM has always been open in terms of providing information. It was always out there. We even have a CSO desk in DBM. Any CSO or any organization can just go to us and ask for information,” she said.

Ms. Pangandaman was referring to the 2023 Open Budget Survey (OBS), in which the Philippines ranked 15th out of 125th countries with an open budget index score of 75. This was higher than the global average of 45 and put the Philippines first in Asia.

In the same report, the Philippines placed 13th worldwide for public participation, with a score of 33 out of 100, which is significantly higher than the global average score of 15. 

In addition, the government said the implementing rules and regulations of the New Government Procurement Act, which it described as the country’s “biggest anti-corruption measure,” is set to be released on Feb. 10.

“In the new government procurement plan, there is a provision there for civil society, POs (people’s organizations,) and NGOs (non-governmental organizations), to be observers in the procurement process at all stages.” — Aubrey Rose A. Inosante

Money Talks with Cathy Yang premieres on Feb. 10 at 9:30 a.m. from Monday to Friday on ONE News.

Tune in to Cignal TV Ch. 250 HD and Ch. 8 SD. Also available on Cignal Play.

Agus-Pulangi hydro rehab could feature new Agus III power plant 

PHILSTAR FILE PHOTO

By Sheldeen Joy Talavera, Reporter

THE GOVERNMENT is exploring the possibility of building the Agus III hydroelectric power plant to go with the rehabilitation for the Agus-Pulangi Hydropower Complex (AHPC).

“We will move forward in the rehabilitation of the Agus-Pulangi and the possibility is now open for building the still unbuilt Agus III plant, which has a potential of 225 megawatts (MW),” Energy Secretary Raphael P.M. Lotilla told reporters on the sidelines of an event in Quezon City last week.

The complex, owned by the Power Sector Assets and Liabilities Management Corp. (PSALM) and operated by the National Power Corp. (NPC), consists of seven run-of-river hydroelectric power plants in southern and central Mindanao with a combined installed capacity of about 1,000 MW.

However, only 600-700 MW is currently operational due to aging equipment and infrastructure problems, according to a 2024 World Bank report.

“Additionally, the APHC is grappling with issues such as cooling system failures, turbine-generator shaft vibration, and outdated auxiliary equipment and control systems,” according to the report.

At a Senate hearing in October, PSALM President and Chief Executive Officer Dennis Edward A. dela Serna said that the company is planning to pursue a concession arrangement to go with the rehabilitation, but is still soliciting comment on the modality of the prospective deal.

As per previous estimates by the World Bank, the rehabilitation of AHPC will cost about $350 million.

“If we finish the rehabilitation of the Agus-Pulangi plant, this will restore an additional 400 MW of hydropower in Mindanao, which is very significant,” Mr. Lotilla said.

With the APHC set for rehabilitation, the government is considering revisiting the plan for the early retirement or repurposing of the 200-MW Mindanao coal-fired power plant (CFPP) in Misamis Oriental.

The Mindanao CFPP is the only remaining government-owned coal-fired power plant in the Philippines. It is operated by SPI Power, Inc., formerly known as STEAG State Power, Inc., under a build-operate-transfer arrangement.

The Philippines plans to accelerate the voluntary retirement of up to 900 MW of CFPP generation capacity by 2027 under its Accelerating Coal Transition Investment Plan.

Mr. Lotilla said that since available capacity would be reduced with AHPC rehabilitation, the government will have to revisit “whether or not the STEAG plant in Mindanao should be running or should be folded up.”

“If the rehabilitation of Agus and Pulangi takes place in the next few years, then we will need backup from the STEAG plants to assure our people of sufficient power capacity,” he said.

PSALM was created under Republic Act No. 9136, or the Electric Power Industry Reform Act of 2001, to oversee the privatization of NPC generation assets, liabilities, independent power producer contracts, real estate assets, and other disposable assets. Its corporate life is set to expire in June 2026, or 25 years after the effectivity of the Electric Power Industry Reform Act. Should PSALM be dissolved, all of its assets and liabilities will revert to the National Government.

PHL inflation seen likely within target, but faces risks to upside — World Bank

PHOTO BY BERNARD HERMANT

THE World Bank said Philippine headline inflation will continue to settle within the Bangko Sentral ng Pilipinas’ (BSP) target range until 2026, raising the possibility of further easing, though it warned that the forecast faces risks to the upside.

It added that monetary policy divergence with the US could exacerbate exchange rate pressures and capital outflows.

“While the BSP expects inflation to stay within target for 2025-2026, the balance of risks leans to the upside. The likelihood of higher transport charges, electricity rate hikes, and elevated food prices continue to pose risks to the inflation outlook,” the World Bank said in its monthly economic developments report.

The Philippine Statistics Authority reported that inflation rose 2.9% year on year in January, level with the December reading. In 2024, inflation was 3.2%, in line with the BSP’s forecast.

This was the first time for full-year inflation to fall within the central bank’s 2-4% target range since 2021, when inflation averaged 3.9%.

The bank said with the return of inflation to the target range, “keeping it in check is critical for further monetary easing and supporting domestic demand.”

“Non-monetary policy measures to increase domestic production, address distributional imbalances, and enhance resilience to supply shocks remain important to managing inflation,” it said.

The World Bank also noted BSP Governor Eli M. Remolona, Jr.’s remarks that monetary authorities may cut rates by only 50 basis points this year.

The Monetary Board, which meets on Feb. 13, has cut benchmark borrowing costs by 75 basis points since it began its easing cycle in August 2024, bringing the key rate to 5.75%.

“The prospect of narrowing US interest rate differentials may lead to further depreciation pressures and capital outflows,” the World Bank said.

The peso closed at P58.03 to the dollar on Friday, strengthening by 15 centavos from its P58.18 finish on Thursday, according to the Bankers Association of the Philippines.

This was the peso’s strongest close in more than a month, or since its P57.91 per dollar finish on Jan. 2.

It said that the possibility of higher-for-longer US interest rates in the US caused a reversal of capital flows and a stronger dollar.

Reuters reported on Friday that the Federal Reserve officials view the US job market as solid and noted the lack of clarity over how President Donald Trump’s policies will affect economic growth and still-elevated inflation, underscoring their no-rush approach to interest rate cuts. — Aubrey Rose A. Inosante

Chamber seeks relaxation of visa rules for Chinese visitors 

BW FILE PHOTO

THE Federation of Filipino-Chinese Chambers of Commerce and Industry, Inc. (FFCCCII) called for relaxed visa requirements for Chinese visitors and reforms to modernize agriculture and improve the ease of doing business.

“In light of the recent government decision to end all POGO (Philippine Offshore Gaming Operators) operations, (the FFCCCII) expressed hope for relaxed visa approvals for Chinese tourists,” FFCCCII President Cecilio K. Pedro said.

He said within ASEAN, Thailand, Singapore, and Malaysia already offer visa-free entry, while others offer visa-upon-arrival arrangements for Chinese tourists.

“(These give) them a competitive edge in attracting visitors and investors,” Mr. Pedro said.

Earlier this year, the Department of Tourism said visa policies dampened tourist arrivals from China last year.

To modernize agriculture, Mr. Pedro called for mechanized farming, lower power rates, and streamlined bureaucratic processes to improve business efficiency.

Mr. Pedro expressed support for the consultative approach to raising wages through the tripartite wage council involving government, labor, and management, rather then the proposed P200 minimum wage hike.

Tourist arrivals from China totaled 312,222 in 2024, well below the pre-pandemic level of  1.74 million in 2019.

Cebu Mandaue Filipino-Chinese Chamber of Commerce President Justin Uy cited the need to enhance global competitiveness not only in tourism, but also in services, exports, and various industries.

“ASEAN neighbors like Thailand, Malaysia, Indonesia, Vietnam, and Cambodia are rapidly advancing,” Mr. Uy said, highlighting the need “to focus on national unity and dynamic socio-economic reforms to keep pace.”

He also noted the excessive number of holidays in the Philippines, which have led to supply disruptions and 4,000 job losses in Cebu’s garment industry when some factories closed operations. — Justine Irish D. Tabile

Customer experience is not optional — it is essential

IN BRIEF:

• Cost-cutting measures must not compromise customer experience (CX) as it is essential for driving growth.

• CX is not merely a component of business strategy; it is a critical determinant of success.

• Prioritizing CX significantly enhances sales and reduce costs, contrary to its traditional undervaluation in business priorities.

In the aftermath of the pandemic, numerous organizations have prioritized cost-cutting measures, often at the expense of customer experience (CX). It is imperative to recognize that such an approach can be counterproductive and potentially harmful. Some companies have turned to digitalization as a means to reduce costs, without fully considering their customers’ readiness for such changes. This oversight has led to increased expenses associated with managing customer complaints, including higher contact center and acquisition costs.

The financial impact of losing customers far exceeds the cost of acquiring new ones. Loyal customers are invaluable; they are more likely to forgive business shortcomings and continue to provide their support. On the other hand, dissatisfied customers can severely damage a business’s reputation, especially in the age of social media, where negative experiences can spread rapidly and widely.

As markets become increasingly competitive and consumer expectations rise, companies are realizing that delivering exceptional CX is not just an option but a crucial driver of organizational growth and sustainability. CX is not a piece of the puzzle — it is the frame within which organizations paint the picture of their story. This evolving perspective is prompting businesses to reassess their strategies, prioritizing customer satisfaction and engagement at the core of their operations.

The transformative power of CX goes beyond mere transactional interactions; it encompasses every touchpoint a customer has with a brand. Organizations that excel in CX recognize that it is a comprehensive philosophy requiring a holistic approach. This involves integrating cross-functional efforts to ensure a consistent and memorable experience across all customer interactions. They achieve this by elevating CX to a board-level priority, applying a human-centric approach to everything the business does, and measuring CX success and immediately acting on it.

ELEVATING CX TO A BOARD-LEVEL PRIORITY
To ensure that CX receives the strategic focus it deserves, it must be elevated to a board-level priority, ideally overseen by a chief customer experience officer (CXO). This approach ensures that CX is seamlessly integrated into the company’s operations and aligns with the envisioned customer journey.

Appointing a dedicated CXO or an equivalent leadership role that reports directly to the CEO demonstrates the company’s commitment to CX. This leadership position provides a clear vision and strategy for CX implementation, ensuring that initiatives receive the necessary resources and are embedded across all business functions. From product development to after-sales service, this integration fosters a cohesive and customer-centric organization.

Prioritizing CX at the highest levels of governance is essential for driving sustainable growth, enhancing customer loyalty, and maintaining a competitive edge in today’s dynamic market landscape.

APPLYING A HUMAN-CENTRIC APPROACH
Placing humans at the center of initiatives is paramount. For instance, a telecommunications company in the Philippines developed a people-first customer support initiative that became the blueprint for all transformations across the organization. This started with purpose discovery and activation. This initiative led to a significant increase in customer satisfaction, substantial growth in remote sales, and improved employee engagement, while also earning multiple industry awards.

By fostering an environment that values open feedback and supports change, organizations can create a CX that not only meets but exceeds customer expectations. This human-centric approach also empowers employees, providing them with the tools and autonomy to make decisions that enhance the customer experience, thereby driving organizational success.

• Discover and live out the organization’s purpose or aspirational reason for being

• Clearly define the organization’s CX aspiration

• Invest in knowing the customers, listening to them, and anticipating their needs

• Put humans at the center of transformation initiatives. Remember that technology is an enabler in delivering exceptional experiences

• Deliver what is promised to the customers and to management

• Do not forget the backend teams — they are as much as part of the experience as the front

• Take care of employees — they will go the extra mile to take care of customers and shareholders

MEASURING CX SUCCESS AND IMMEDIATELY ACTING
Metrics such as Net Promoter Score (NPS), Customer Satisfaction (CSAT), and Customer Effort Score are essential tools for measuring the impact of CX on both sales and costs. These metrics provide valuable insights into customer loyalty and satisfaction, allowing businesses to tailor their CX strategies for maximum effectiveness.

Beyond these metrics, companies are increasingly leveraging advanced analytics to proactively measure the impact of CX initiatives. By correlating these initiatives with key performance indicators such as sales growth and cost reduction, businesses can adopt a data-driven approach that continuously refines their CX programs. This approach not only demonstrates the tangible value of investing in customer experience but also ensures that CX strategies are aligned with broader business objectives.

To truly drive impactful change, it is crucial to delve deeply into customer feedback rather than merely concentrating on quantitative scores. The prevalent issue in many organizations today is the tendency to conduct numerous surveys, only to let the results sit idle. This often leads to neglecting the concerns of dissatisfied customers. Immediate and proactive action on these insights is essential for fostering customer loyalty and improving overall business performance.

This growing recognition of CX’s importance is sparking a renaissance in how businesses approach customer experience. There is a renewed focus on experience, personalization, and leveraging technology to meet and exceed customer expectations.

REAPING THE BENEFITS OF INVESTING IN CX
While traditional business components such as finance and sales have historically taken precedence, the reality is that CX is a powerful driver of both revenue and earnings before interest, taxes, depreciation and amortization. Organizations that previously relegated CX to the bottom of their priority list are now recognizing that the intangible benefits of customer satisfaction are, in fact, quantifiable. Increased patronage and reduced complaint handling costs are just a few of the measurable outcomes.

By aligning the organization’s ways of working with the desired customer journey, businesses can create a more intuitive and satisfying experience that not only meets but anticipates customer needs. This alignment fosters a virtuous cycle of engagement and profitability.

The challenge lies in balancing the need for fiscal prudence with the imperative to deliver exceptional CX. Companies that succeed in this balancing act are likely to be more competitive, with the advantage of a more loyal customer base and a more resilient business model.

CX is not merely a component of business strategy; it is a critical determinant of success. As businesses continue to navigate a rapidly changing landscape, those that place CX at the heart of their strategy will differentiate themselves from competitors and set new standards for customer engagement and satisfaction.

Customer experience is the key to differentiation and growth. Companies who invest in customer experience today will watch their business thrive tomorrow.

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinion expressed above are those of the author and do not necessarily represent the views of SGV & Co.

 

Marnelli Eileen Javier Fullon is a business consulting partner of SGV & Co.