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Priority regulatory issues for the financial sector

Second of two parts

IN BRIEF:

• With consumers still adapting to recent sharp rises in the cost of living, regulators’ focus on ensuring financial resilience and good consumer outcomes will increase.

• In 2025, regulators will look at accountability and timely remediation of long-standing risk management weaknesses that had gone unaddressed. They will continue to engage financial institutions in ensuring that governance and risk management are strengthened, in line with the institutions’ changing strategy and ambitions.

The past years highlighted several critical issues for financial institutions and regulators, ranging from geopolitical and macroeconomic issues to growing challenges in balancing support for technology innovation with protecting consumer and markets from the attendant risks. This presents a convergence of risk factors over the coming year and beyond, with regulatory fragmentation expected to continue as policymakers prioritize country-specific approaches to matters such as financial stability, financial inclusion, sustainability, artificial intelligence (AI), resilience, and governance.

The EY 2025 Global Financial Services Regulatory Outlook identifies critical themes that will shape the regulatory landscape over the coming year, exploring key regulatory priorities for financial institutions in 2025 and offering strategies for navigating these challenges effectively.

The first half of this article explored the first two key regulatory priorities: navigating the fragmented regulatory landscape driven by national interests and emphasizing operational and financial resilience. This second half will discuss remaining priorities: focusing on securing positive outcomes for consumers and managing risk in an evolving environment.

POSITIVE CONSUMER OUTCOMES AND EXPANDING SUSTAINABILITY EFFORTS
While inflation is easing, financial difficulties for consumers and businesses continue. In many countries, there is a contradiction in the approaches to regulations on financial stability and financial inclusion. On one hand, policymakers are encouraging international competitiveness and deregulation, and on the other, focusing on ways to boost citizens’ financial wellbeing and empowerment by helping them to build savings for later life, protecting access to financial services, and promoting competition.

With consumers still adapting to recent sharp rises in the cost of living, regulators’ focus on ensuring financial resilience and good consumer outcomes will increase. The UK’s adoption of the Consumer Duty in 2023 has attracted global attention, with several national regulators preparing to enhance consumer protections. This greater focus on helping customers build financial resilience supports the ESG agenda on financial inclusion, and looking beyond compliance to actual customer outcomes can offer financial institutions an opportunity to gain a competitive advantage.

On the global sustainable finance front, ESG reporting on emissions, climate risks and sustainability is becoming a business norm for the largest companies. There are similar initiatives and roadmaps with timelines on the Philippine front, not only on reporting requirements but also other areas like the sustainable finance taxonomy guide and climate risk stress testing.

The sustainability agenda is starting to widen and deepen, including a broadening focus on the “E” of ESG beyond climate and a deliberate look at the “S” as it relates at least to financial, digital and economic inclusion. It will take time before financial institutions also face specific accountabilities on biodiversity and nature-related risks, but it is now increasingly clear that banks need to accept that sustainability has a direct link to financial stability and will continue to shape future regulatory responses.

Organizations need to understand how regulators may view the principle of fairness and be prepared to demonstrate how they are delivering in customers’ interests. This involves showing how their products and services cater to the needs of specific customer groups, including vulnerable customers. Additionally, firms should help customers understand common fraud and scams, use technology to monitor transactions, enhance security, and verify customer identity. By doing so, firms can build trust and ensure they are meeting regulatory expectations for consumer protection.

MANAGING RISK IN AN EVOLVING ENVIRONMENT
Governance will remain a top agenda. The banking crisis of early 2023 highlighted long-standing risk management weaknesses and failures to strengthen governance in line with changing strategies. Going into 2025, regulators will look at accountability and timely remediation of long-standing risk management weaknesses that had gone unaddressed. They will continue to engage financial institutions in ensuring that governance and risk management are strengthened, in line with the institutions’ changing strategy and ambitions.

Moreover, they will put greater pressure on boards to ensure that they have effective oversight over risk management frameworks. It is imperative for financial institutions to pay close attention to feedback from supervisory interactions and cross-sector reviews.

The outlook provides the following points for organizations to consider for risk management, governance and accountability:

• Prioritize investments in systems and data that allow the proactive self-identification of issues and implementation of controls before the risks crystallize

• Explore how advanced technologies such as data analytics and AI can help predict future issues

• Conduct regular testing to better anticipate emerging issues

• Evaluate whether the three-lines-of-defense model is delivering optimal results

• Ensure governance arrangements give board members sufficient oversight of the firm’s risk environment

• Approach regulatory relationships systematically, with feedback being tracked and revisited to ensure that issues are being addressed

By doing so, firms can demonstrate their commitment to robust risk management and governance practices, meeting regulatory expectations and building a foundation for long-term success.

NAVIGATING THE REGULATORY LANDSCAPE FOR LONG-TERM SUCCESS
Governments see the finance sector as key to delivering economic and social objectives. Firms must engage with regulatory agendas to contribute insights and understand the issues driving policymakers’ and regulators’ thinking. They must also demonstrate that their risk management is flexible and responsive to a changing environment, and that they have the data and tools to deliver against regulators’ priorities.

As we move into 2025, financial institutions must be prepared for market disruption and volatility while delivering good outcomes for customers. The onus is on firms to prove that their risk management and governance arrangements are agile and robust enough to meet these concerns. By focusing on resilience, consumer outcomes, and timely remediation of weaknesses, financial firms can navigate the regulatory landscape effectively and build a foundation for long-term success.

This two-part article is part of a larger series on future trends for the financial services industry. In the following weeks, we will discuss how digital transformation drives the workforce in financial institutions, harnessing the power of Generative AI in banking, and building operational and financial resilience.

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

 

Christian G. Lauron is the financial services organization (FSO) leader of SGV & Co.

DLSU Lady Spikers beat Fighting Maroons to share UAAP third spot

DLSU LADY SPIKERS — UAAP/YVAN MARTINEZ

Games on Wednesday
(SM Mall of Asia Arena)
10 a.m. – UE vs FEU (men)
12 p.m. – UP vs UST (men)
2 p.m. – UE vs FEU (women)
4 p.m. – UP vs UST (women)

DE LA SALLE University (DLSU) got back on track by drubbing host University of the Philippines (UP), 25-22, 24-26, 25-18, 25-17, to dodge a worst start in almost two decades in the UAAP Season 87 women’s volleyball on Sunday at the Mall of Asia Arena.

Former Rookie-MVP Angel Canino led the way with 24 points on 20 hits as the Lady Spikers improved to 2-2 for a share of the third spot with the UP Fighting Maroons and the Adamson University Lady Falcons halfway through the first round.

La Salle, the UAAP Season 85 champion, absorbed another meltdown against the University of Santo Tomas earlier this week for a 1-2 start that matched the school’s dismal start in 2006, when it ironically won the title behind a 10-game winning streak.

Against the vastly improved UP, La Salle said enough with hopes of taking control of its fate as early as possible — especially against a tough field led by unbeaten champion National University.

The Lady Spikers did behind the contributions of Shevana Laput and Katrina del Castillo with 21 and 11 points, respectively. Libero Lyka De Leon took care of the floor defense with 18 digs and 14 receptions as new playmaker had Julyana Tolentino had 10 sets.

La Salle yielded an extended second set, regrouped in the third and was on the verge of allowing a rubber only to unleash a strong 9-2 finishing kick from a close 16-15 cushion to capitalize on UP’s inexperience.

Irah Jaboneta dropped an all-around game of 15 points, 11 receptions and eight digs while Joan Monares had 11 in UP’s second straight defeat.

In the men’s division, leader Far Eastern University (4-0) topped Ateneo De Manila University (2-2), 25-23, 32-30, 23-25, 25-15, to stay undefeated while La Salle (2-2) bested UP (1-3), 23-25, 25-13, 26-24, 25-15. — John Bryan Ulanday

Filipino runner Arbois tops best time in Tokyo Marathon

ASICS brand ambassadors (L-R) Richard Salaño, Migs Bustos and Arlan Arbois, Jr. represented the country in the Tokyo Marathon in Japan on Sunday.

TOKYO — Filipino runner Arlan Arbois, Jr. always had a knack for turning something out of nothing.

With little time to prepare after juggling national team duties and his responsibility as a newly enlisted Army personnel, the 24-year-old 2023 Phnom Penh Southeast Asian Games silver medalist came through with his best effort to date in the Tokyo Marathon on a windy, cold Sunday morning here.

Armed with nothing less but an iron will, the proud son of San Rafael, Davao City, who is an ASICS ambassador, clocked two hours, 24 minutes and 23 seconds in this 42.195-kilometer race that started in front of the Tokyo Metropolitan Government Building and ended between the Imperial Palace and the Tokyo train station.

He surpassed his previous best time of 2:26.38 in December a year ago in a race back home.

Forget about finishing 125th out of over 38,000 in this annual race considered as one of the seven “majors” of the sport, what mattered was Mr. Arbois accomplished what he had set out for.

“I didn’t expect it because I had little preparation because I was just recently accepted in the Army,” said Mr. Arbois, who wore ASICS’ newly released Meta Speed Edge, in Filipino.

“But every time I race, I always try to improve on my time. And I’m happy I did here,” he added.

Veteran Richard Salaño, in contrast, had a strong start but the chilly weather caught up on him and struggled in the end and finished at 174th in 2:28.40, or less than four minutes off his target.

“I was doing okay in the first 32 minutes and I thought I was on course of reaching my target and even touching the national record,” said the 33-year-old Army Corporal from Bulacan, whose trip was funded by ASICS.

“But I felt the chills in the 34th minute and I was just never the same. The cold weather got into me. Maybe because I stopped training for a week last month because I got sick,” he added.

It was the second time Mr. Arbois got the better of Mr. Salaño, after the former bested the latter in Cambodia two years ago in snatching the silver when not many even considered him a medal contender.

But Mr. Arbois came through.

And here in the land of the rising sun, he did it again. — Joey Villar

Man City defeats Plymouth; Bournemouth reaches FA Cup quarters for only third time

LONDON — Favorites Manchester City stayed on track for an eighth FA Cup triumph but were given a scare by second-tier Plymouth Argyle and Bournemouth reached the quarterfinals for only the third time by knocking out Wolverhampton Wanderers on Saturday.

Crystal Palace moved into the last eight after they beat second-tier Millwall although their 3-1 win was marred by an injury to French forward Jean-Philippe Mateta who was taken to hospital with concussion and a head wound after being clattered by Millwall goalkeeper Liam Roberts who was sent off.

Plymouth, second from bottom of the Championship, had stunned Premier League leaders Liverpool in the previous round and thousands of their fans made the long trip from Devon to the northwest hoping for another massive upset.

Maksym Talovierov gave them reason to dream when he headed Plymouth in front at The Etihad Stadium.

But teenager Nico O’Reilly equalized with a header from a Kevin de Bruyne free kick in first-half stoppage time and the left back then put City in front late on with another header from De Bruyne’s corner.

De Bruyne then made sure of City’s progress in the final minute but it was a battle for the Premier League champions who also came from a goal down to beat third-tier Leyton Orient in the previous round.

Bournemouth is chasing a European qualifying spot in the Premier League and their superb season under Andoni Iraola continued as it beat top-flight rival Wolves on penalties after a 1-1 draw on the south coast.

Evanilson gave Bournemouth the lead after 30 minutes and they should have finished the job before Matheus Cunha levelled for Wolves on the hour mark with a stunning long-range shot.

Cunha was sent off near the end of extra time after a clash with Bournemouth defender Milos Kerkez.

Wolves full back Matt Doherty had the chance to send his side through in the penalty shoot-out but missed the target and when Boubacar Traore’s effort struck the crossbar, Luis Sinisterra calmly sent Bournemouth through.

“I feel like we could have done it in 90 minutes, but the most important thing is we got the win and we’re into the next round,” Bournemouth’s Antoine Semenyo said.

Wolves could rue the loss of Cunha in the relegation battle as he faces a three-match ban.

“Cunha is a special player, he played in extra time when he was not in condition to play,” manager Vitor Pereira said.

“Last three weeks he has hamstring issue, emotional side was high in game, a lot of pressure and in the end it has happened, we must now cope.”

Palace eased past south London rivals Millwall but not without a cost. The 27-year-old Maheta was kicked in the head by Millwall keeper Roberts in the seventh minute at Selhurst Park and needed oxygen on the pitch before being taken to hospital. — Reuters

Balanced scoring pushes Sacramento past Houston

DEMAR DEROZAN and Zach LaVine combined for 41 points as the visiting Sacramento Kings rode a balanced offensive attack to a 113-103 victory over the Houston Rockets on Saturday.

Six Kings players scored in double figures as the team completed a sweep of the three-game season series with Houston. The Kings overcame the loss of center Domantas Sabonis to a left hamstring injury just over a minute into the game by shooting 50.6% from the field.

Jonas Valanciunas replaced Sabonis and produced 15 points, 14 rebounds and four steals. Malik Monk added 16 points and Keegan Murray posted 13. Keon Ellis chipped in 12 off the bench.

DeRozan (21 points, six assists) and LaVine (20 points, six rebounds) worked in tandem to confound the Houston defense. The Rockets trailed by 16 points midway through the first quarter and rallied to secure the lead in the second, only for DeRozan or LaVine to fashion responses to keep Houston at bay.

Alperen Sengun collected 30 points, 10 rebounds and five assists for the Rockets, while Jalen Green added 24 points. Guard Fred VanVleet returned after missing 11 games due to an ankle injury, and he tallied three points on 1-for-8 shooting in 35 minutes. The Rockets committed 16 turnovers.

The Kings turned a 15-0 run into a 19-3 lead while the Rockets opened the game shooting 1 for 12. Houston fashioned a 14-3 rally to work back into contention, with Jabari Smith Jr. capping the quarter with a transition dunk that cut the Sacramento lead to 25-21 entering the second.

LaVine, Trey Lyles and Jake LaRavia opened the second period with 3-pointers that helped the Kings extend to a 40-31 lead.

The Rockets rallied behind Dillon Brooks, who combined a 3-pointer with two three-point plays that pulled Houston even at 51-51. When Brooks followed with a 3-pointer at the 3:11 mark, the Rockets led 54-51. Brooks finished with 12 points.

Sacramento reclaimed a 63-59 halftime lead and, after Houston closed to within 84-82 on a three-point play by Sengun, the Kings used a 13-3 run bridging the final two periods to seize control.

The Rockets missed their final five shots of the third while committing three turnovers, and when Sacramento opened the fourth with a 3-pointer by Ellis and a driving layup by DeRozan, the lead reached 96-85. — Reuters

Detroit Pistons bounce back from loss to 9th win in 10

JALEN DUREN powered for 18 points, 11 rebounds and a career-high six blocks and the host Detroit Pistons won for the ninth time in 10 games, downing the Brooklyn Nets 115-94 on Saturday night.

Detroit bounced back from a 15-point loss to Denver on Friday as Tobias Harris had 18 points and nine rebounds and Malik Beasley also scored 18. Beasley was ejected with 6:39 remaining after picking up his second technical foul.

Cade Cunningham tossed in 15 points with nine assists and Ausar Thompson added 13 points.

Tyrese Martin led the Nets with 23 points off the bench. Jalen Wilson had 14 points and Cameron Johnson added 13.

The Pistons jumped to a 39-22 lead by the end of the first quarter. Hardaway gave Detroit its first double digit lead at 14-4 with a 3-pointer. Beasley scored 14 points in the final five minutes of the quarter. He knocked down four 3-pointers during that span.

Brooklyn pulled within 11 at 41-30 on a pair of Martin free throws with 9:22 left in the first half but the Pistons scored the next six points, including another Beasley 3-pointer.

A three-point play from Harris with 5:53 left in the half upped Detroit’s advantage to 23, 56-33. Duren’s three-point play with 3:14 remaining in the quarter gave the Pistons their biggest lead of the half at 63-38.

The half ended with Detroit leading 68-45. Duren already had a double-double before the break with 13 points and 10 rebounds

The Nets opened the second half with a 14-5 run to pull within 14 points.

Johnson’s 3-pointer with 2:47 left in the quarter cut Detroit’s lead to 81-69, igniting a 9-0 Brooklyn run to end the quarter. Martin’s layup moved the Nets within six points at 81-75.

Detroit’s Tim Hardaway Jr. opened the fourth with a 3-pointer. After the Nets cut their deficit to eight points with 8:18 to play, Detroit scored eight unanswered points to put the game away.

Cunningham knocked down a 3-pointer and Duren had a three-point play. Cunningham then set up Harris for a dunk. Cunningham’s three-point play with 5:56 remaining pushed the Pistons’ lead to 20. — Reuters

Flag football

When the Bynum Faith Foundation officially became recognized as a charitable organization in spring 2023, Camryn Bynum was already deep into underscoring his Christian and Filipino roots. Both were, needless to say, instrumental in framing his character growing up in Corona, California, and certainly when he felt moved to, as the nonprofit’s website noted, “leverage his platform to offer hope, assistance, and support to underserved communities in the United States and the Philippines.” By then, he was already the Vikings’ starting safety, if nothing else proof of his progressive body of work in the two years since the National Football League franchise drafted him in the fourth round.

Bynum became intent on doing all he could to provide assistance to underprivileged Filipinos in a visit to the Philippines during his rookie year. It was, in retrospect, providence, especially since he would not have otherwise been privy to the myriad problems faced by struggling communities in his mother Jennifer’s home country. As much as he had been touched by God, he, too, wanted to be the vessel for change as witness to his Christian faith.

Not coincidentally, providence was also how Bynum first met his wife Lalaine by chance in Dubai. There was instant chemistry, he said, and they got engaged not long after. Needless to say, they exchanged vows in the Philippines, and now devote much of their time steering the foundation’s outreach programs, including weekly food distribution in Manila and his yearly Camp Beezy. Initially set up to grow American football in the Pearl of the Orient, the latter is now committed to push for the formation of a Philippine flag football team in time for the 2028 Summer Games in Los Angeles.

To this end, Camp Beezy played host to some 75 flag football players from the Philippines and other Southeast Asian countries the other week in Cavite. Professional coaches subjected camp participants to a training regimen — and, of course, a series of games — designed to raise awareness of the sport. Given Bynum’s ultimate objective, the camp likewise sought to show how flag football’s unique set of rules benefits Filipinos and highlights their innate quickness, dexterity, smarts, and, yes, craftiness. After all, unlike American football, flag football allows little to no contact; instead, a tackle is made when a defender succeeds in removing a flag — in reality more closely resembling a pennant — on either side of the offensive player.

As with anything involving sports in the Philippines, the key is, to be sure, generating enough buzz to encourage and entice corporate support. For all the seeming advantages of Filipinos in the sport, financial backing is critical in terms of finding the best players, and then prepping them for the Olympics in three years. The good news is that this early, the endeavor already has one backer: service hospitality company RIESA Management, Inc., whose chief operations officer, Anthony Raymond, just so happens to be an avid flag football player. Still, is garnering critical mass wishful thinking? Don’t tell that to Bynum, who has encountered more than enough success amid adversity to know everything happens in His time.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and human resources management, corporate communications, and business development.

Philippines told to hedge vs Trump after breakdown of US-Ukraine talks

U.S. President Donald Trump delivers remarks at the Roosevelt room at White House in Washington, US, Jan. 21, 2025. — REUTERS

By Kenneth Christiane L. Basilio and Adrian H. Halili, Reporters

THE PHILIPPINES should boost its military modernization push and pursue defense ties with other allies to hedge against US President Donald J. Trump’s so-called transactional diplomacy amid increasing tensions with China, political analysts said.

It should cut its dependence on the US to insulate itself from foreign policy shifts of Mr. Trump, whose meeting with Ukraine President Volodymyr Zelensky in Washington imploded on Friday after a heated argument, despite US commitment to their “ironclad” ties, they added.

“Manila should augment its own contingent plan and readiness for self-reliance even if the US still commits to their ironclad promise to the Philippines,” Chester B. Cabalza, founding president of Manila-based think tank International Development and Security Cooperation, said in a Facebook Messenger chat.

“Multiple defense partnerships with like-minded countries and continuous military modernization efforts are the best steps that Manila could take now,” he added.

During their meeting, Mr. Trump and the Ukrainian leader clashed in a heated engagement that led to the Ukrainian leader leaving the White House without signing a mineral deal seen by the US as crucial in ending the Russia-Ukraine war, Reuters reported.

Mr. Trump threatened to withdraw support for Ukraine, three years after Russia invaded its smaller neighbor, alarming Europeans who fear a rushed ceasefire could embolden an expansionist Russia.

Mr. Trump has shifted Washington’s policy on the Russia-Ukraine conflict since he took over, unravelling three years of US support to Kyiv and leading to the shock of its European allies.

The US, the Philippines’ oldest treaty ally, has been Ukraine’s most important bulwark against attacks by Russia, which invaded the Eastern European nation in February 2022.

“We do not like to hear from the US that one day, just like what Mr. Trump has said to Mr. Zelensky, that without their support, Ukraine can be easily defeated,” Mr. Cabalza said.

Manila should anticipate Washington’s leadership and diplomacy to be grounded on a transactional relationship, said Josue Raphael J. Cortez, who teaches diplomacy at De La Salle College of St. Benilde.

“The measures he employs to maintain American leadership in global affairs are way different from his predecessors,” he said in a Facebook Messenger chat. “We can expect that the manner of negotiations on agreements will be different this time.”

While Mr. Trump’s pivot to Russia may not have a direct impact on the Philippines, “it could influence regional dynamics and how the US may potentially engage with the Indo-Pacific region,” said Rocio Salle Gatdula, a defense economist taking up security studies at Georgetown University.

But defense ties with the US are “likely to remain strong” due to Mr. Trump’s hawkish stance against China, she said via Messenger chat.

The Philippines and China have been at loggerheads over disputed features in the South China Sea, which Beijing claims almost in its entirety. A United Nations-backed tribunal based in The Hague in 2016 voided China’s claim for being illegal.

“Washington is very much keen to continue promoting freedom of navigation as China’s dominance over these waters will undoubtedly generate negative impacts on American trading with their Southeast and East Asian partners,” Mr. Cortez said.

China claims sovereignty over almost the entire South China Sea, a vital waterway for more than $3 trillion of annual ship-borne commerce, putting it at odds with Brunei, Indonesia, Malaysia, the Philippines and Vietnam.

The Philippines should consider forging stronger alliances with Canada, France and New Zealand to reduce US dependence, Ms. Gatdula said, citing the need for more diplomatic and economic ties with other countries to counter geopolitical pressures.

‘BEST ALTERNATIVE’
China could benefit from Mr. Trump’s foreign policy shifts, such as what he did with Ukraine, according to Andy Mok, a senior research fellow at Beijing-based think-tank Center for China and Globalization.

“This disruption presents China with an opportunity to expand its influence in Southeast Asia, particularly in the South China Sea,” he said. “As traditional US partners question Washington’s reliability, China can position itself as a more stable and pragmatic force, deepening economic ties and reinforcing its regional claims.”

Mr. Cortez said China could use the Ukraine development to portray that it’s the “best alternative” as a global leader.

Meanwhile, the Philippines and Vietnam have agreed to strengthen maritime cooperation in the South China Sea, according to the Department of Foreign Affairs (DFA).

Foreign Affairs Undersecretary Ma. Theresa P. Lazaro met with Vietnamese Permanent Deputy Minister and Chairman of the National Boundary Commission Nguyen Minh Vu in Hanoi last week, it said in a statement.

The envoys discussed “peaceful and constructive approaches in managing the situation in the South China Sea,” the agency said.

Last year, the two nations filed separate extended continental shelf claims before the United Nations over areas in the South China Sea, 200 nautical miles beyond their exclusive economic zones.

“They recognized the need for pragmatic maritime cooperative endeavors in the area, such as on marine environmental protection, conservation and sustainable use of marine resources, marine scientific research, safety of navigation and communication at sea, search and rescue operations, combatting transnational crimes, and in promoting the law of the sea,” the DFA said.

It said the officials also supported more coast guard-to-coast guard and military-to-military cooperation between the two countries.

They also said they want to resume the joint marine scientific research expeditions in the South China Sea, where experts from both countries will study the marine resources and the environment.

Ms. Lazaro also met with Vietnamese Deputy Prime Minister and Minister of Foreign Affairs Bui Thanh Son, discussing the need to strengthen cooperation among Association of Southeast Asian Nations claimant states.

“They welcomed the broadening scope and increasing areas of collaboration between the two countries in the maritime domain and in economic interaction, as well as the regular high-level engagements that are set to take place in the coming months,” the DFA said in a separate statement.

Manila unlikely to give in to Chinese pressure to surrender missile system

US ARMY PACIFIC

By John Victor D. Ordoñez, Reporter

THE PHILIPPINES is unlikely to succumb to Chinese pressure to give up Washington’s mid-range Typhon missile system amid worsening tensions between the Asian neighbors, security analysts said at the weekend.

“The Marcos administration understands that the issue about the Typhon is a sovereign, Philippine decision and it is an important military capability  especially when faced by a large, aggressive expansionist power,” Raymond M. Powell, a fellow at Stanford University’s Gordian Knot Center for National Security Innovation, told BusinessWorld in an X message. “To unilaterally disarm while Beijing continues its aggression would make no sense.”

The Chinese Embassy in Manila did not immediately reply to a Viber message seeking comment. 

The People’s Daily, the newspaper of the governing Communist Party, has urged the Philippines to give up the Typhon missile system, which was deployed by US forces to the Philippines in April last year as part of joint military exercises to keep the peace in the region.

This followed the Chinese Foreign Ministry’s Feb. 12 statement calling on the Philippines to “change the course” by reconsidering its plan to keep the US Typhon missile launchers.

Philippine President Ferdinand R. Marcos, Jr. earlier said he was willing to pull out the US Typhon missile once China stops its aggression in the South China Sea.

“It is China’s wishful thinking to think that we would just bend over backwards and release our capabilities or ensure that we do not have the capacity to defend ourselves based on international law,” Don Mclain Gill, who teaches international relations at De La Salle University in Manila, said in a Facebook Messenger chat.

He said Manila is has the right based on international law to boost its defense capacity and safeguard its borders against an “expansionist force.”

China claims sovereignty over almost the entire South China Sea, a vital waterway for more than $3 trillion of annual ship-borne commerce, putting it at odds with Brunei, Indonesia, Malaysia, the Philippines and Vietnam.

A United Nations-backed tribunal in 2016 voided China’s claim for being illegal, but Beijing does not recognize the ruling.

Philippine Defense Secretary Gilberto Gerardo C. Teodoro, Jr. has said Manila would not be a “doorstep” and that acquiring the missile system is the country’s prerogative.

The US is the Philippines’ major security partner, with a 1951 Mutual Defense Treaty compelling both nations to defend each other in case of an armed attack.

Washington’s military has moved its Typhon launchers, which can fire multipurpose missiles up to thousands of kilometers, from Laoag airfield to another location on the island of Luzon, Reuters earlier reported.

The Tomahawk cruise missiles in the launchers can hit targets in both China and Russia from the Philippines. The SM-6 missiles it carries can strike air or sea targets more than 200 kilometers away.

Philippine Foreign Affairs spokesperson Ma. Teresita C. Daza earlier said the US had exempted security assistance to the Philippines worth $336 million from its foreign aid freeze.

US President Donald J. Trump earlier ordered a 90-day pause on existing and new foreign development assistance pending review to ensure they are aligned with his “America First” policy.

“President Marcos’ statement about removing them if China ends its aggression is a clear statement of reality,” Mr. Powell said. “It is the threat of Chinese military force that has generated their deployment in the first place.”

Armed Forces of the Philippines Chief of Staff General Romeo S. Brawner, Jr. has said the country is looking to buy more military hardware to modernize its arsenal, including additional BrahMos missiles from India and at least two submarines.

The Philippines has contested China’s sweeping claims in the waterway through diplomatic channels by filing more than 190 diplomatic protests since Mr. Marcos took office in 2022.

Foreign Affairs Secretary Enrique A. Manalo has said Manila plans to raise its dispute with China before the Association of Southeast Asian Nations when it takes the chairmanship in 2026.

“The Philippines will not bend according to the whims of an expansionist force,” Mr. Gill said. “Chinese state media thrives in fragmentation and in vulnerability so it would obviously not want the Philippines to be in a position that will allow it to defend itself.”

Analysts: VP trial delay could derail removal

VICE-PRESIDENT SARA DUTERTE-CARPIO FACEBOOK PAGE PHOTO

By Adrian H. Halili, Reporters

DELAYING the impeachment trial of Vice-President (VP) Sara Duterte-Carpio to July could frustrate the push to remove her from office, according to political analysts.

“If the Senate is serious about settling this business sooner than later, nominally they should,” Hansley A. Juliano, a political science lecturer at the Ateneo de Manila University, said in a Facebook Messenger chat at the weekend.

“There’s political risk doing it after the May elections since more people who are pro-Duterte getting into the Senate could be bad for the plan,” he added.

In a letter to senators last week, Senate President Francis G. Escudero proposed to start the trial on July 30, after newly elected stake their oath as impeachment judges on July 29.

“This current setup essentially means the midterm elections become a referendum to whether Sara should indeed be impeached or not,” Mr. Juliano said.

The House of Representatives on Feb. 5 impeached Ms. Duterte on charges of violating the Constitution, betrayal of public trust, graft and corruption and other high crimes shortly before Congress went on a four-month break for the 2025 midterm elections. Lawmakers will reconvene for a two-week session on June 2.

The impeachment complaint was filed and signed by more than 200 congressmen, more than the one-third legal requirement before it can be sent to the Senate, which will try her as an impeachment court. Under the 1987 Constitution, several congressmen will serve as impeachment prosecutors.

Michael Henry Ll. Yusingco, a senior research fellow at the Ateneo Policy Center, said preparatory work for the impeachment trial could be completed within the month.

The Senate president has created an administrative support group that would prepare and help the Senate when it convenes as an impeachment court.

“The impeachment trial can therefore start on April 1 or even earlier,” he said in a Messenger chat. “Starting it on July 30 disregards the constitutional command [to start proceedings promptly]. It diminishes the Senate as an institution.”

Opposition senators Aquilino L. Pimentel III and Ana Theresia N. Hontiveros-Baraquel earlier urged Mr. Escudero to call for a caucus where they could explain their stance on the trial.

Mr. Yusingco said there is no need to call for a special session because “the command to commence comes from the Constitution itself.”

The ouster charges against Ms. Duterte included seven articles of impeachment such as allegations of plotting the assassination of the President, misusing secret funds, amassing unexplained wealth and committing acts of destabilization.

New DoLE policy eliminating bottlenecks in labor dispute resolution takes effect

Workers are seen inside a manufacturing facility in Sto. Tomas, Batangas in this file photo taken on March 1, 2023 — PHILIPPINE STAR/KJ ROSALES

By Chloe Mari A. Hufana, Reporter

THE PHILIPPINES’ new labor dispute resolution rules, aimed at accelerating case processing and expanding coverage to include workers on contracting arrangements, took effect on Sunday.

Department Order No. 249, Series of 2025, updated the Department of Labor and Employment’s (DoLE) Single Entry Approach by easing rules on filing Requests for Assistance (RFA).

A labor leader said the enhanced policy is a gain for workers as it reinforces accessibility, efficiency, and fairness in workplace dispute settlement.

“An efficient dispute resolution system can indirectly support freedom of association and collective bargaining by fostering a more responsive labor relations environment,” Federation of Free Workers (FFW) President Jose Sonny G. Matula told BusinessWorld in a Viber chat over the weekend.

“When workers have accessible channels for resolving grievances, they may feel more empowered to exercise their rights without fear of undue delays or retaliation,” he added.

The reforms allow workers to file RFA at the nearest DoLE office, removing geographic constraints that previously slowed case resolution.

Representation procedures have also been simplified to lower barriers to participation, ensuring more workers can access mediation without unnecessary red tape.

“Workers who are unable to file their RFAs personally due to distance or incapacity can now authorize representatives to act on their behalf, ensuring that no one is excluded from accessing dispute resolution services,” DoLE said in a statement on Sunday.

The new rules also extend coverage to platform workers, freelancers, and contract-based employees, reflecting the evolving nature of the labor market.

A key component of the overhaul is the launch of the Assistance for Request Management System, a digital platform designed to enhance tracking and case management.

“This innovation reduces processing times and eliminates common issues like multiple filings and referral delays,” the agency added.

In 2024, DoLE, in collaboration with the National Conciliation and Mediation Board and the National Labor Relations Commission, processed 83,836 RFAs, securing P2.9 billion in monetary claims for 58,212 workers.

According to the labor leader, the new rules were developed through tripartite discussions, with workers being represented by labor groups, such as FFW, Sentro and the Trade Union Congress of the Philippines.

The private sector was represented by the Employers Confederation of the Philippines, the Philippine Chamber of Commerce and Industry, among others.

DND told to secure gov’t sites

THE Philippines’ Department of National Defense (DND) should enhance the security of key government facilities, such as military bases and embassies after the spate of arrests of alleged spies, a congressman said on Sunday.

In a statement, Zambales Rep. Jefferson F. Khonghun urged Defense Secretary Gilberto Eduardo C. Teodoro to secure the government from spies by strengthening physical security and improving cyber-defense capabilities.

“We need to modernize our counterintelligence. This isn’t just about physical surveillance — we need more effective cyber-defense, better intelligence-sharing, and higher levels of security in our military and government offices,” he said in Filipino.

Reuters reported Philippine authorities have detained five Chinese nationals accused of spying on military bases in the country.

The five men had flown drones to spy on the Philippines’ navy, said the National Bureau of Investigation (NBI), adding that it had found photos and maps of sensitive sites and vessels on their phones. A senior NBI official told Reuters that the men had been charged with espionage, which carries a prison term of up to twenty years.

The government should put in review and strengthen its “internal security protocols” to crack down on foreign spies, said Mr. Khonghun, noting the need to expand counterintelligence efforts.

“We need to strengthen our counterintelligence, ensure that we have adequate technology to prevent espionage, and expand the coordination of our agencies,” he said.

Beijing has vastly escalated its alleged state-sponsored cyber attacks since last year, according to a report by US-based cybersecurity company CrowdStrike.

“The underlying motivation is likely China’s desire for regional influence in the nation’s near abroad,” it said in its 2025 report.

The Chinese Embassy in Manila did not immediately respond to a Viber message seeking comment.

The Commission on Elections and Department of Information and Communications Technology should also ramp up its efforts to prevent foreign interference ahead of this year’s midterm elections, he added.

“It is more dangerous if espionage leads to election influence,” he said.

Mr. Khonghun urged Filipino voters to be on the lookout for candidates who might be more interested in advancing the interests of other nations instead of the Philippines. “If there are politicians who serve foreign interests… they should be exposed and held accountable.” — Kenneth Christiane L. Basilio

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