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Work-from-home rules under CREATE MORE

BOJITHA WIMALASIRI-UNSPLASH

How can we forget that time in our lives when we were all forced to stay home? Our homes served as our refuge, and for many of us, they also turned into our workplaces. Undeniably, the work-from-home (WFH) arrange-ment has allowed businesses to continue as we navigated the pandemic.

Post-pandemic, WFH, or at the very least, hybrid/remote work set-ups, became the preferred option, particularly for the Information Technology-Business Processing Outsourcing (IT-BPO) industry. Section 309 of the Tax Code, as amended by the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE), required business enterprises registered with Incentives Promotion Agencies (IPA) operating within an ecozone overseen by the Philippine Economic Zone Authority (PEZA) must exclusively maintain operations within the “geographical boundaries” of the ecozone (or the IT facility or building in the case of the IT-BPO industry).

In recognition of the IT-BPO industry’s contribution in sustaining our economy during the pandemic, a one-time transfer of registration from PEZA to the Board of Investments (BoI) was allowed. The transfer to the BoI enabled PEZA IT-BPO registered business enterprises (RBEs) to continue with their 100% WFH arrangements for existing projects at the time of transfer. The PEZA, however, retained its supervisory functions; thus, enterprises are still gov-erned by its compliance requirements.

While the one-time transfer has helped address the concerns about currently registered projects, it does not extend to new and future projects that the IT-BPOs may have. As such, some investors deferred future investment considering that the available options are limited to either registering the new project with PEZA and adopting full onsite work, or to register with BoI for full WFH benefits — a choice that is not as easy as it may seem.

As noted above, since the “transferred” IT-BPO enterprises remain under PEZA, registering a new project with BoI would entail being registered with two different IPAs. Some RBEs find this administratively burdensome as they would need to deal with two sets of rules and reporting requirements.

The other option is to register with PEZA, which means that the new project has to operate 100% onsite. From a hiring perspective, this did not seem enticing as most talent now seek flexibility, preferring WFH or at the very least, a hybrid arrangement. Full onsite work is not a viable option anymore if RBEs want to remain competitive.

Fortunately, the recently introduced Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act now provides more flexibility with the amendment of Section 309. PEZA RBEs are now allowed to “institute a telecommuting program” under the rules of the Telecommuting Act, which includes WFH arrangements of up to 50% of total workforce, subject to other rules to be formulat-ed by the host IPA.

The Telecommuting Act defines telecommuting as “work from an alternative workplace with the use of telecommunications and/or computer technologies.” Since the law took effect in 2018, a few IT/BPO RBEs started imple-menting it through duly issued Letters of Authority from PEZA, though on a very limited scale. It was, however, only during the pandemic when alternative working arrangements were seriously explored.

Under CREATE MORE, new projects can be registered with PEZA without the need to do full onsite work. Moreover, this option is no longer limited to the IT-BPO industry. RBEs operating in ecozones belonging to other industries may also adopt telecommuting/WFH arrangements. For instance, an export manufacturing enterprise can allow its employees whose functions do not necessarily require full-time onsite work, such as human resource and finance workers, to work remotely.

As clarified in the rules implementing CREATE MORE, the telecommuting/WFH rule only applies to those registered with IPAs administering ecozones, as they are covered by the territorial limitations under Section 309. Those not operating within the ecozone and thus, not geographically bound, are not affected by these provisions. As such, RBEs registered with the BoI are still allowed to operate 100% remotely. Moreover, existing projects whose registrations were previously transferred from PEZA to BoI are allowed to continue adopting full WFH arrangements.

In terms of non-compliance with the 50% threshold for WFH arrangements, CREATE MORE imposes the regular corporate income tax rate only on the excess over the threshold. The excess is computed by averaging all excesses of the RBE in the month of non-compliance. This is a more reasonable penalty as opposed to the old all-or-nothing rule and where the registration with the IPA may be revoked upon failure to comply with the full onsite work re-quirement.

To implement these rules, the IPAs will be issuing guidelines to govern registration of new projects adopting the telecommuting/WFH arrangements, including the movement of capital equipment and other assets within and outside the economic zones, in consultation with the Bureau of Customs.

The way people work has indeed evolved. From being “stuck” at home during the pandemic and at the office after it, we now see opportunities beyond territorial boundaries. Location is no longer an issue to make things work. I hope this flexibility towards hybrid/remote work will pave the way to greenlighting more new investments entering the Philippines.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for spe-cific advice.

 

Aimee Rose Dela Cruz is a director at the Tax Services department of Isla Lipana & Co., the Philippine member firm of the PwC network.

+63 (2) 8845-2728
aimee.rose.d.dela.cruz@pwc.com

PSEi rallies as PHL inflation eases to 5-month low

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PHILIPPINE SHARES rallied for a third straight day on Wednesday as headline inflation slowed to a five-month low in February.

The main Philippine Stock Exchange index (PSEi) rose by 0.95% or 57.66 points to end at 6,121.77 on Wednesday, while the broader all shares index jumped by 0.98% or 35.58 points to close at 3,664.54.

“The local market rose further this Wednesday as investors appreciated the Philippines’ February inflation rate, which came in below expectations at 2.1%,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message. “The slowdown in the country’s inflation is seen to help in the gross domestic product performance, primarily household consumption. It is also seen to raise prospects with respect to the Bangko Sentral ng Pilipinas’ (BSP) policy easing.”

“Philippine shares were bought to above 6,100 mark following better-than-expected February inflation print,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan likewise said in a Viber message.

Philippine inflation slowed to 2.1% in February from 2.9% in January, preliminary data from the Philippine Statistics Authority released on Wednesday showed.

This was the slowest monthly print in five months or since the 1.9% in September 2024.

This was also below the BSP’s 2.2%-3.0% forecast for the month and the 2.6% median estimate in a BusinessWorld poll of 18 analysts.

The Monetary Board will next meet to discuss policy on April 3. Analysts said slower February inflation gives the BSP room to resume its rate-cut cycle at next month’s meeting following its surprise pause at the Febru-ary review.

BSP Governor Eli M. Remolona, Jr. last month said the central bank is still in easing mode, signaling the possibility of up to 50 basis points (bps) worth of cuts this year.

The Monetary Board has delivered 75 bps in reductions to borrowing costs since it began its easing cycle in August 2024, with the policy rate now at 5.75%.

Almost all sectoral indices closed higher on Wednesday. Property surged by 2.99% or 64.83 points to 2,232.69; holding firms climbed by 1.15% or 59.08 points to 5,160.69; mining and oil went up by 1.12% or 91.17 points to 8,220.37; industrials rose by 0.75% or 64.73 points to 8,696.06; and financials increased by 0.21% or 4.90 points to 2,315.38.

Meanwhile, services inched down by 0.18 point to end at 1,942.34.

Value turnover rose to P7.35 billion on Wednesday with 588.42 million shares traded from the P7.09 billion with 907.59 million issues that changed hands on Tuesday.

Advancers outnumbered decliners, 114 versus 77, while 55 names were unchanged.

Net foreign selling declined to P106.02 million on Wednesday from P266.33 million on Tuesday. — Revin Mikhael D. Ochave

Cignal HD Spikers to target top of Pool A play-in phase of PVL

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Games on Thursday
(PhilSports Arena)
4 p.m. – Chery Tiggo vs Nxled
6:30 p.m. – Capital1 vs Cignal

CIGNAL aims to achieve what it failed to accomplish in the qualification round as it hopes to barge into the quarterfinals via the backdoor when it tackles Capital1 in Thursday’s start of the play-in phase of the Premier Volleyball League (PVL) All-Filipino Conference at the PhilSports Arena.

The HD Spikers missed out on making the best-of-three quarters outright after getting ambushed by the Galeries Tower Highrisers, 25-17, 25-22, 19-25, 25-17, on Thursday that sent them down to Pool A of the two-bracket play-in tournament.

There, Cignal would aim to sweep, or at least top their group, to advance to the quarters versus No. 2 seed Petro Gazz slated for March 18 at the same Pasig venue in a short but sweet three-game series.

After their 6:30 p.m. match with the Solar Spikers, the HD Spikers’ only other play-in schedule will come against the ZUS Coffee Thunderbelles on Tuesday.

“We’re treating it one game at a time,” said Cignal coach Shaq delos Santos.

Also eyeing a place in the sun are Chery Tiggo and Nxled, who face off at 4 p.m. in Pool B action.

The other member of the second pool is Farm Fresh, which will tackle Chery Tiggo, the 2021 bubble champion, on Tuesday, and Nxled on Thursday.

The winner of this group will earn the right to face five-peat feat-seeking Creamline also March 18. — Joey Villar

LeBron James becomes first NBA player to score 50,000 points

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LEBRON JAMES reached another milestone in his unprecedented NBA career on Tuesday, becoming the first player to score 50,000 total points after hitting a three-pointer in the first quarter of the Lakers’ blowout win over the Pelicans in Los Angeles.

James entered the contest with 49,999 combined regular season and playoff points and drained a shot from deep to add another landmark moment to his storied career.

“It’s a hell of a lot of points,” James said after the game.

“I’m super blessed to be able to put that many points up in the best league in the world and with the best players in the world throughout my career.

“So it’s pretty special.”

James, 40, already owns the record for most regular season points after taking the NBA scoring title from fellow Laker Kareem Abdul-Jabbar in February 2023.

The Akron, Ohio native also holds the all-time playoff scoring record, which he snatched from Chicago Bulls legend Michael Jordan in May of 2017.

James has shown no sign of slowing down in his 22nd season in the league.

He was named NBA Western Conference Player of the Month for February, extending his league record to 41 monthly awards, including three with the Lakers.

He is also the oldest player to win the award, passing the previous record set by Karl Malone (age 37) with the Utah Jazz in November of 2000.

Four-time NBA champion James and the Lakers have been on a tear since acquiring Luka Dončić from the Dallas Mavericks in a stunning trade for Anthony Davis last month.

The growing chemistry between James and Dončić was on full display on Tuesday as they combined for 64 points and 21 assists in the 136-115 victory.

“He is getting more and more comfortable not only with the team, not only with the sets, but with everything. The fans, LA,” James said.

“Every day is going to get better for him health-wise because he is getting better with his calf. It’s good for our team.”

Dončić suffered a left calf strain during a Christmas Day game that sidelined him for nearly six weeks.

Tuesday’s win extends the Lakers’ current winning streak to seven games and the team has shot up to second place in the Western Conference standings.

James, who has been a leader on defense as well as a potent scorer this season, said he likes how the team is coming together.

“We’re just trying to continue to mesh well offensively and defensively and hold each other accountable,” James said.

“I think it’s working out for us so far.” — Reuters

EJ Obiena misses World Indoor Athletics

REUTERS

FILIPINO STAR pole-vaulter EJ Obiena will not be able to make the cut to the World Indoor Athletics Championships set from March 21 to 23 in Nanjing, China.

But expect the World No. 4 to return with a vengeance in the upcoming outdoor season.

“With limited time to return this indoor season, my results have been far from consistent,” said Mr. Obiena via his social media accounts. “Even though there is still time to qualify for the World Indoor Champion-ships, there are no more competitions left for me to participate in.”

“With this, I would inevitably miss the championships,” he added.

The standard qualification clearance is 5.85 meters (m) and the deadline for it is Sunday.

Mr. Obiena is set to compete in the Mondo Classic scheduled next week in Uppsala, Sweden where he would come face-to-face with the sport’s mightiest of all — Armand Duplantis.

The 29-year-old Asian champion and record-holder did try but his best was only 5.8 m in a meet in Torun, Poland where he ended up with the gold.

Mr. Obiena vowed to give it his all in the outdoor season.

“I will hence prioritize and prepare for the outdoor competition. This is when I would represent the country in the World Championships, Asian Championships and the SEA Games,” he said.

“The key is to go into the outdoor season healthy and ready to compete at the highest level.” — Joey Villar

Down 15, Cavs surge past Bulls for 11th straight win

FREEPIK

DONOVAN MITCHELL scored 28 points and Jarrett Allen notched a 25-point, 17-rebound double-double as the visiting Cleveland Cavaliers rallied to defeat the Chicago Bulls 139-117 on Tuesday for their 11th straight victory.

NBA-leading Cleveland, which boasts three double-digit winning streaks this season, moved to 41 games over .500.

Zach Collins scored four straight points for the Bulls to tie the game at 107 with 7:04 to go. Cleveland responded with a 14-0 run that featured six points from Allen and five from Javonte Green.

Chicago lost for the ninth time in 11 games but remained 2 1/2 games ahead of Brooklyn and Philadelphia for the No. 10 seed in the Eastern Conference and the final spot in the East play-in tournament.

Mitchell returned after missing Sunday’s home win against Portland due to rest. He led seven Cavaliers in double figures. Darius Garland contributed 19 points and seven assists, Ty Jerome added 16 points and Max Strus, Sam Merrill and Green chipped in 11 apiece.

Coby White paced Chicago with 25 points while Collins (20 points, 12 rebounds) and Jalen Smith (13 points, 11 rebounds) registered double-doubles. Talen Horton-Tucker scored 22 points while Matas Buzelis added 17.

Despite a depleted rotation whose absences included Nikola Vucevic (right calf strain), Josh Giddey (left quad contusion), Patrick Williams (right quad tendinosis) and Kevin Huerter (right knee sprain), the Bulls built a 15-point lead midway through the first half.

A J Smith trey put Chicago ahead 46-31 before the Cavaliers scored 26 of the next 38 points to close within 58-57 at the break. Garland connected on a pair of 3s in the last 35 seconds of the half.

Allen had 10 points and eight rebounds in the first half. Horton-Tucker (14 points) and White (10) led a balanced attack for the Bulls.

Cleveland continued its recent stranglehold against Chicago, clinching the season series with its third victory in as many games with an April 8 meeting in Cleveland remaining. The Cavaliers have won 10 of their past 11 games against the Bulls.

Evan Mobley (rest management) was out for Cleveland. — Reuters

Trump vows more tariffs, dividing Republicans

WASHINGTON, DC - MARCH 04: U.S. President Donald Trump addresses a joint session of Congress at the U.S. Capitol on March 04, 2025 in Washington, DC. Win McNamee/Pool via REUTERS TPX IMAGES OF THE DAY

WASHINGTON — A triumphant President Donald Trump told Congress on Tuesday that “America is back” after he reshaped US foreign policy, ignited a trade war and ousted tens of thousands of government workers in six tumultuous weeks since returning to power, drawing jeers from some Democrats who walked out in protest.

The primetime speech, his first to Congress since taking office on Jan. 20, followed a second day of market turmoil after he imposed sweeping new tariffs against Mexico, Canada, and China.

At 100 minutes, the speech was the longest presidential address to Congress in modern US history, according to The American Presidency Project.

World leaders were watching Mr. Trump’s speech closely, a day after he paused all military aid to Ukraine in a stark reversal of US policy. The suspension followed an Oval Office blowup in which Mr. Trump angrily upbraided Ukrainian President Volodymyr Zelensky in front of TV cameras.

The pause in aid to Ukraine has threatened Kyiv’s efforts to defend against Russia, which launched a full-scale invasion three years ago, and further rattled European leaders worried that Mr. Trump is moving the US too far toward Moscow.

Mr. Trump devoted only a few minutes of his speech to foreign policy. He signaled a willingness to press ahead with the minerals deal with Ukraine that was set aside after last week’s disastrous White House meeting.

“Simultaneously, we’ve had serious discussions with Russia and have received strong signals that they are ready for peace,” Mr. Trump said. “Wouldn’t that be beautiful?”

And he repeated his promises — though without adding detail — to bring peace to the Middle East and expand the Abraham Accords, deals signed during his first term that established relations between Israel and some of its Arab neighbors.

While Mr. Trump has appeared to fault Ukraine for starting the war, a new Reuters/Ipsos poll found 70% of Americans — including two-thirds of Republicans — say Russia was more to blame.

Mr. Trump vowed to balance the federal budget, even as he urged lawmakers to enact a sweeping tax cut agenda that analysts say could add more than $5 trillion to the federal government’s $36-trillion debt load. Congress needs to raise the nation’s debt ceiling later this year or risk a devastating default.

The speech shared some of the hallmarks of Trump’s campaign rallies. Mr. Trump repeatedly assailed his Democratic predecessor Joseph Biden, attacked immigrant criminals as “savages” and promised to ban what he called “transgender ideology,” all while peppering his remarks with exaggerated or false claims.

DEMOCRATIC PROTESTS
“To my fellow citizens, America is back,” Mr. Trump began to a standing ovation from fellow Republicans. “Our country is on the verge of a comeback the likes of which the world has never witnessed, and perhaps will never witness again.”

Democrats held up signs with messages like “No King!” and “This Is NOT Normal,” and about half the Democrats had walked out by the end of the speech.

One Texas congressman, Al Green, was ordered removed after he refused to sit down.

Mr. Trump, a political brawler by nature, reveled in the disagreements.

“I look at the Democrats in front of me, and I realize there is absolutely nothing I can say to make them happy or to make them stand or smile or applaud,” he said after Mr. Green’s ejection.

The speech took place in the House of Representatives, where lawmakers huddled in fear for their lives four years ago while a mob of Trump supporters ransacked the Capitol in an unsuccessful effort to overturn Mr. Biden’s 2020 victory over the then-incumbent Mr. Trump.

The lawmaker Democrats chose to give their rebuttal speech, moderate US Senator Elissa Slotkin, invoked an iconic Republican president in criticizing Mr. Trump.

“As a Cold War kid, I’m thankful it was Reagan and not Trump in office in the 1980s. Trump would have lost us the Cold War,” Ms. Slotkin, a former CIA analyst who won election in Michigan in November even as Mr. Trump car-ried her state, said, referring to President Ronald Reagan. “Donald Trump’s actions suggest that, in his heart, he doesn’t believe we are an exceptional nation.”

MORE TARIFFS COMING
Mr. Trump praised billionaire businessman Elon Musk and his Department of Government Efficiency, which has downsized more than 100,000 federal workers, cut billions of dollars in foreign aid and shuttered entire agencies.

The president credited Mr. Musk with identifying “hundreds of billions of dollars of fraud,” a claim that far exceeds even what the administration has claimed so far. Mr. Musk, seated in the gallery, received ovations from Republicans.

Mr. Trump reiterated his intention to impose additional reciprocal tariffs on April 2, a move that would likely roil financial markets even more.

“Other countries have used tariffs against us for decades, and now it’s our turn to start using them against those other countries,” he said.

On this point, many Republicans remained seated, a signal of how Mr. Trump’s tariffs have divided his party.

Mr. Trump’s 25% tariffs on Mexico and Canada, two of the country’s closest allies, and an additional 10% on Chinese imports deepened investor concerns about the economy. The Nasdaq Composite is down more than 9% from its record clos-ing high on Dec. 16.

Mr. Trump, who has often taken credit for market increases, did not mention this week’s downturn. He also barely addressed stubbornly high costs, blaming Mr. Biden for the price of eggs and saying he would bring down inflation via increased energy production.

Just one in three Americans approve of Mr. Trump’s handling of the cost of living, according to the Reuters/Ipsos poll, a potential danger sign amid worries his tariffs could increase inflation.

Mr. Trump called on Congress to pass a sweeping $4.5 trillion plan that would extend his 2017 tax cuts, tighten border security and fund massive deportations.

Mr. Trump noted that his administration had already launched a border crackdown, citing February’s record-low total of 8,300 migrant arrests at the US-Mexico border. Those arrests are often used as a proxy to estimate illegal crossings. — Reuters

Trudeau dismisses ‘very dumb’ tariffs, says Trump wants to ruin Canadian economy

PHILIPPINE STAR/KRIZ JOHN ROSALES

OTTAWA — Prime Minister Justin Trudeau told US President Donald Trump on Tuesday that his tariffs on Canadian imports were “a very dumb thing to do” and said Ottawa was striking back immediately at its closest ally.

Mr. Trudeau, who is stepping down at the end of the week, also accused Mr. Trump of wanting to ruin the Canadian economy. Speaking hours after Mr. Trump launched a trade war against Mexico and Canada, Mr. Trudeau announced immediate 25% tariffs on C$30 billion worth of US imports. If need be, Canada will target another C$125 billion worth in 21 days’ time, he said.

“There is absolutely no justification or need whatsoever for these tariffs,” Mr. Trudeau told reporters, adding that Canada would challenge the US measures at the World Trade Organization and through a US-Mexico-Canada trade agreement already in place.

“Canadians are reasonable and we are polite, but we will not back down from a fight, not when our country and the well-being of everyone in it is at stake,” he said.

Mr. Trump responded by saying the Canadian retaliatory tariffs would be met with immediate reciprocal tariffs of the same size.

Mr. Trump has accused Canada of failing to do enough to stem the flow of the deadly fentanyl opioid and its precursor chemicals into the US, an argument Mr. Trudeau called “completely bogus, completely unjustified, com-pletely false.”

Mr. Trudeau’s relations with Mr. Trump, which have never been warm, deteriorated in recent months after the president repeatedly talked of Canada becoming the 51st US state and mockingly referred to Mr. Trudeau as its “governor” rather than prime minister.

Mr. Trump says he is unhappy with the trilateral US-Mexico-Canada trade deal that he signed in his first term. Mr. Trudeau played down the idea of opening talks ahead of a review scheduled for 2026.

“Given that he is choosing to want to ruin the Canadian economy, I don’t know whether to bring forward negotiations, given the situation of such bad faith that we’re in,” said Mr. Trudeau, who warned Canadians that tough times were coming.

Economists say Canada, which sends 75% of all exports to the United States, will plunge into a recession unless the tariffs are lifted quickly.

Mr. Trudeau said Americans would suffer as well, given how tightly the two economies are connected, and he referred to a Wall Street Journal editorial in late January that said Mr. Trump would be launching “the dumbest trade war in history” if he went ahead with tariffs.

“It’s not in my habit to agree with the Wall Street Journal, but Donald, they point out that even though you’re a very smart guy, this is a very dumb thing to do,” said Mr. Trudeau, who will step down as prime minister after the ruling Liberal Party chooses a new leader on Sunday.

The Canadian government will help by expanding employment insurance benefits and giving direct support to businesses, he said.

Finance Minister Dominic LeBlanc told the country’s premiers in a virtual meeting later in the day that he will soon announce an initial package of support to mitigate the impact of US tariffs on Canadian workers, families and businesses, Mr. Trudeau’s office said in a readout of the meeting.

Mr. Trudeau and the premiers also discussed ways to reduce internal trade barriers and labor mobility within Canada, according to the readout.

ALCOHOL OFF SHELVES
Mr. Trump’s unprecedented actions threaten to severely damage relations between the three trading partners.

Mr. Trudeau said Canada would also look at non-tariff measures but did not answer directly when asked whether Ottawa might curb exports of crude oil or potash.

“Our focus has to be on getting these tariffs lifted as quickly as possible,” he said.

The US-Mexico-Canada Agreement, which was forged under Mr. Trump during his first term in the White House and which updated the North American Free Trade Agreement, allows for duty-free trade between the three countries. The pact carries provisions for rules of origin for autos and auto parts and steel-intensive products, among others, and also allows for exceptions related to security.

Canada’s two most populous provinces, Quebec and Ontario, are taking US alcohol off the shelves of provincially run liquor stores.

Ontario Premier Douglas Ford said if US tariffs persisted, the province would also impose a 25% surcharge on electricity exports to New York, Michigan, and Minnesota.

“We need to make sure America feels the pain,” he said.

Tensions are so high that Canadian sports fans have begun booing US teams at ice hockey games.

“We’re going to choose to try to buy Canadian products and forgo bourbon and other classic American products. And yeah, we’re probably going to keep booing the American anthem,” Mr. Trudeau said.

“But let me tell Americans, we’re not booing you, we’re not booing your teams, we’re not booing your players. We’re booing a policy that is designed to hurt us. And we’re insulted and we’re angry … we’re going to fight and we’re going to win.” — Reuters

Taiwan turns to companies in Ukraine for China contingency planning

Traffic moves by the Lunar New Year market on Dihua Street in Taipei, Taiwan January 21, 2025. REUTERS/Ann Wang

TAIPEI — Taiwan is learning from companies in Ukraine which continue to operate during the country’s fight against Russia, a senior Taiwan official told Reuters on Wednesday, as the island speeds up contingency planning amid heightened Chinese threats.

China claims democratically governed Taiwan as its own territory, despite the objection of the government in Taipei, and has ramped up its military pressure against the island in recent years, including holding several rounds of major war games.

“We hope to learn from Ukraine’s first-hand experiences — how private companies helped build the resilience of its government and society during wartime,” said a senior Taiwan security official, who requested anonymity due to the sensitivity of the matter.

The official pointed to companies in Ukraine including Uber and Microsoft which continued to provide critical services.

Among the ideas Taiwan is taking inspirations from Ukraine for include how to incorporate supermarkets into the government’s supply distribution network and utilizing taxi services for medical emergencies such as blood donations when the health system is overwhelmed.

The official said the government was working to connect companies in Taiwan with their counterparts in Ukraine in order to help Taiwan firms quickly boost their contingency planning.

“We have the will to fight, and now we must also look closely into our will to prepare,” the official said. Taiwan is revamping its air-raid alert and shelter systems, taking into account lessons by northern European countries and Baltic states, the official added.

A closed-door workshop on preparations including stockpiling and civil defense training was held in Taipei this week, which was attended by Taiwan security officials and senior diplomats from countries including the US, Japan, and Australia.

Andy Hunder, who heads the American Chamber of Commerce in Ukraine and is a speaker at the workshop, told reporters the Taiwan government must establish backup online systems, pointing to Russian cyber attacks aimed at paralyzing Ukraine infrastructure before the first missile attacks. — Reuters

“What we have seen is that during World War Two, the safest place for critical infrastructure was down in the tunnels. Today, the safest infrastructure is in the clouds,” Mr. Hunder said, adding payment services such as Master-card and Visa continued to operate and ensured financial stability.

“Technology, banking, food, delivery, retail – how do you keep the economy running?” he said when asked how the Taiwan government should prepare itself. — Reuters

Trump to the people of Greenland: ‘We will make you rich’

WASHINGTON — US President Donald Trump reiterated his interest in acquiring Greenland in his address to Congress on Tuesday, painting a picture of prosperity and safety for the “incredible people” of the island, an autonomous territory of the kingdom of Denmark.

“We will keep you safe, we will make you rich, and together, we will take Greenland to heights like you have never thought possible before,” Mr. Trump said.

“It’s a very small population, a very, very large piece of land, and very, very important for military security,” he added.

Opinion polls suggest that most Greenlanders oppose joining the US, although a majority favor eventual independence from Denmark.

Even before starting his second term as president, Mr. Trump said he hoped to make Greenland a part of the United States, even though NATO ally Denmark says it is not for sale.

Greenland’s strategic location and rich mineral resources could benefit the US. It lies along the shortest route from Europe to North America, vital for the US ballistic missile warning system.

“We need it really for international world security,” Mr. Trump said.

In his speech, Mr. Trump said he had a message for the people of Greenland. “We strongly support your right to determine your own future, and if you choose, we welcome you into the United States of America,” Mr. Trump said.

He said his administration was “working with everybody involved” to try to get Greenland, but also added, “I think we’re going to get it, one way or the other, we’re gonna get it,” to laughter from his fellow Republicans in the House of Representatives chamber.

Mr. Trump’s interest in Greenland has invigorated that country’s independence movement, sparking calls for swift secession discussions with Denmark, its former colonial ruler.

But Greenland’s ruling Inuit Ataqatigiit party has said it will not rush an independence vote through after a March 11 general election, cautioning about possible economic and welfare implications.

“The future of Greenland is really for the people of Greenland to decide,” Denmark’s United Nations Ambassador Christina Markus Lassen told reporters on Monday. “Independence is possible and they have the right to self-determination.”

Ms. Lassen said Denmark agreed with the Trump administration that in the current geopolitical environment there was a need to look at further strengthening security around the Arctic and “that’s something we’ve been working together with NATO and the US on for a while.”

“We have a very close transatlantic bond with the United States. We’ve been working very closely with the US on security matters related to Greenland and the Arctic for decades,” she said. — Reuters

What are Southeast Asia’s scam centers, and why are they being dismantled?

REUTERS

SCAM CENTERS that operated along the Thai-Myanmar border for years have drawn fresh attention after the high-profile abduction and release of a Chinese actor in Thailand.

The incident sparked a multi-national effort among Thailand, China and Myanmar to dismantle the centers in a network of scam compounds across Southeast Asia.

Criminal gangs have trafficked hundreds of thousands of people to such centers to help generate illicit revenues running into billions of dollars a year, the United Nations says.

WHAT ARE THEY?
Scam centers, particularly those in Cambodia, Laos and Myanmar run illegal online schemes to defraud people.

Scammers often reach out to victims on social media and messaging applications to build online relationships before luring them into making fraudulent investments, such as in cryptocurrencies, a scheme commonly known as “pig butchering.”

Money laundering and illegal gambling operations are also run from some sites, analysts say.

The main focus of the current crackdown is Myanmar’s Myawaddy region, along the Thai border, where scam centers often enjoy the protection of armed groups such as the Karen National Army (KNA) and the Democratic Ka-ren Buddhist Army (DKBA).

WHEN DID THEY START?
Scams in the region originated from loosely regulated casinos and online gambling, beginning in the 1990s and gathering pace in the 2000s, the United States Institute of Peace (USIP) says.

Shwe Kokko, a major scam compound in Myawaddy, was set up in 2017 by the Hong Kong-registered Yatai International Holdings Group and the precursor of the KNA, then under control of the Myanmar military, and advertised as a casino destination, USIP said in 2020.

The company has denied involvement in any criminal activities, including human trafficking.

Scamming operations in Myanmar’s borderlands have expanded significantly in the last few years.

A think tank, the Center for Strategic and International Studies, said criminal groups sought new sources of profits when the lockdowns and strict border controls brought by the COVID-19 pandemic prevented gamblers from traveling.

“Many repurposed the facilities into cyber-scamming compounds,” it added.

WHO OPERATES THEM?
Criminal networks primarily originating from China are known to operate scam centers and, in Myanmar’s Myawaddy region, armed groups such as the KNA also support operations, USIP says.

Some foreigners brought out of Myawaddy say coercion and torture are rife in the scam compounds.

Junta-aligned groups also ran or supported such centers along Myanmar’s northern border with China, much to Beijing’s frustration. Some were caught up in fighting as anti-junta rebels launched the “Operation 1027” offensive in 2023.

A 2023 Reuters investigation traced at least $9 million linked to “pig butchering” scams to an account registered to a well-connected representative of a Chinese trade group in Thailand.

WHAT IS THE LATEST CRACKDOWN?
Some regional nations have stepped up efforts to break up the compounds. Thailand has cut power, fuel and internet links to areas in Myanmar linked with scam centers.

The current crackdown was triggered by the January abduction of Chinese actor Wang Xing in Thailand, which set off a social media uproar in his home country.

Though he was later found in Myawaddy and swiftly sent home, the incident sowed concern in Thailand, where Chinese visitors are critical to the lucrative tourism industry.

Inside Myanmar, the junta has detained more than 3,700 foreign nationals related to scam centers since the end of January with more than 750 sent home, state media say.

Last month, China flew home some 200 citizens from Thailand’s city of Mae Sot, which borders Myawaddy. About 7,000 people, most of them Chinese nationals extricated from scam compounds are still sheltering in camps run by the KNA and DKBA.

The Thai crackdown has also widened to Cambodia, where authorities rescued more than 215 people from a scam compound. — Reuters

Whisper it and it’s back: Recession risk creeps onto markets’ radar

A “Make America Great Again” hat is seen on display on the trading floor at The New York Stock Exchange. — REUTERS

LONDON – Global growth concerns have shot back onto the radar of financial markets as weakening US economic data and growing trade tensions hurt consumer confidence and business activity.

Although recession is not the base-case scenario for economists, given underlying US resilience, recent data has unnerved investors and US President Donald Trump’s new 25% tariffs on Mexico and Canada are exacerbating growth concerns.

A shift in the mood music is apparent across markets.

Oil prices are at their lowest since October, stocks from New York to Tokyo are retreating from recent multi-year highs and two-year US Treasury yields are at their lowest since October as bond investors see increased chances of near-term rate cuts.

“One thing is essential for an economy and that’s confidence, which has taken a hit,” said Francois Savary, chief investment officer at Genvil Wealth Management, referring to weakening U.S. consumer and business sentiment.

“I don’t think it’s (recession) a done deal but it’s a reason why we have decided to decrease (US) equity exposure.”

US consumer confidence in January slumped the most in 3-1/2 years, retail sales dropped by the most in nearly two years, and Monday’s manufacturing activity data showed big falls in new orders and employment.

“We don’t think we will see a (US) recession but we do see a modest growth slowdown,” said Joost van Leender, senior investment strategist, at Van Lanschot Kempen Investment Management in Amsterdam, adding consumers were feeling uncertain about “chaotic” US policy.

Van Leender said he had trimmed U.S. equity holdings in late January and is overweight Treasuries as yields are likely to fall as the economy decelerates.

Highlighting the change in fortunes, the Atlanta Fed’s GDPNow model estimate for annualised growth this quarter on Monday fell to -2.8% from +2.3% a week ago.

Analysts stress that recent U.S. data is likely to have been skewed by one-off factors such as cold weather, and strong imports in the case of the Atlanta Fed’s model. But they also note that a trade war means focus is quickly shifting from inflation to the growth risks from U.S. tariffs.

China has responded to a doubling of duties on Chinese goods to 20% with additional tariffs of 10%-15% on certain U.S. imports from March 10. Europe is also in the firing line for higher U.S. tariffs, and trade-vulnerable auto stocks dropped 4% on Tuesday after the tariffs on Mexico and Canada, where many cars for the U.S. market are made.

Morgan Stanley estimates that the new U.S. tariffs on China, Mexico and Canada could shave 0.7-1.1 percentage points off U.S. economic growth in coming quarters, deliver a 2.2 to 2.8 percentage point hit to Canadian growth, and push Mexico into recession.

Canadian Chamber of Commerce CEO Candace Laing warned that US tariff policy was forcing Canada and the U.S. toward “recessions, job losses and economic disaster”.
“Time to add a new word to the dictionary, ‘Trumpcession’, SEB economist Marcus Widén said in a note.

RATE CUT PRESSURE
The Canadian dollar and Mexican peso briefly hit one-month lows on Tuesday. Notably, the dollar, which has generally benefited from trade tensions, has also weakened as U.S. growth worries weigh.

Some reckon the U.S. economy could be at risk from a worrying mix of sluggish growth and relentless inflation.

Analysts said a trade war keeps pressure on central banks globally to keep cutting rates to shore up growth. Traders are now pricing in 75 basis points of U.S. rate cuts by year-end versus just one cut in mid-January when data was strong.

After ending February with their biggest monthly drop since late 2023, 10-year U.S. Treasury yields are eyeing 4%

“The bond market is moving towards pricing a soft patch and maybe a recession,” said Forvis Mazars chief economist George Lagarias.

The European Central Bank is tipped to cut rates again on Thursday and Morgan Stanley said it expects another cut in April as economic data and inflation weaken.

Even if U.S. economic data improves, analysts said the cloudier outlook was reason enough to remain cautious on equities.

Hedge funds that had snapped up global equities have fled bullish bets and put on wagers that stocks would decline, a Goldman Sachs note on Monday showed.

Consumer discretionary stocks, an economic bellwether and indicator of shoppers’ purchasing power for nice-to-have products, was the worst-performing U.S sector last month, the note showed.

Friday’s closely-watched U.S. jobs report takes on additional significance with growth risks in focus.

“This economic cycle is consumption-led and can only die with the labour market,” said Lombard Odier’s chief economist Samy Chaar. “The Fed has to be very mindful of that.” — Reuters