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Luke Kennard scores 27; LA Lakers take Game 1 against Houston Rockets

LUKE KENNARD scored 27 points and LeBron James added 19 points with 13 assists as the short-handed Los Angeles (LA) Lakers earned a 107-98 victory over the visiting Houston Rockets on Saturday in Game 1 of a Western Conference first-round playoff series.

Deandre Ayton scored 19 points with 11 rebounds and Marcus Smart added 15 points with eight assists as the fourth-seeded Lakers won with leading scorers Luka Dončić (hamstring) and Austin Reaves (oblique) watching from the bench.

In just his seventh start since joining the Lakers from the Atlanta Hawks at the trade deadline, Kennard went nine of 13 from the floor and 5 of 5 from 3-point range while delivering a season high in points to fill the scoring void at guard.

Alperen Sengun scored 19 points while Amen Thompson and Reed Sheppard each added 17 for the fifth-seeded Rockets, who were playing without leading scorer Kevin Durant (knee).

Jabari Smith, Jr. scored 16 points with 12 rebounds and Tari Eason also had 16 points for Houston, which has lost three consecutive road games to Los Angeles since the middle of March.

The Lakers shot 60.6% from the floor and 52.6% from 3-point range, while the Rockets shot 37.6% and 33.3% respectively.

Kennard helped put the Rockets away with three 3-pointers in the fourth quarter. His second of the final period capped a 13-3 run and gave the Lakers an 88-72 lead with 7:58 remaining.

James made a turnaround hook inside with 4:43 remaining to put Los Angeles up 96-80. The 41-year-old added a fadeaway jumper with 2:57 remaining for a 98-84 lead.

Houston was within 100-91 with 1:40 remaining on a dunk from Thompson before Ayton put the game away for Los Angeles on a three-point play with 1:04 left for a 105-93 lead.

The Lakers shot 70.6% from the floor in the fourth quarter and 56.2% in the second half.

The Rockets finished with a 44-35 rebounding advantage.

The Lakers got off to a fast start, leading by eight points in the first quarter, when James had eight assists, and took a 33-29 lead after the opening period. Los Angeles led 50-48 at the half on 64.7% shooting from the floor as Ayton scored 12 points. Sengun had 11 at the half for Houston.

KNICKS USE THIRD-QUARTER SPURT TO DOWN HAWKS IN GAME 1
Karl-Anthony Towns and OG Anunoby hit 3-pointers on consecutive possessions to start the decisive third-quarter run for the host New York Knicks, who pulled away for a 113-102 win over the Atlanta Hawks in Game 1 of an Eastern Conference quarterfinal series on Saturday night.

Game 2 of the best-of-seven series is scheduled for Monday night in New York.

Jalen Brunson scored 19 of his game-high 28 points in the first quarter for the third-seeded Knicks, who reached the Eastern Conference finals last year for the first time since 2000. Towns finished with 25 points and was 10 of 10 from the free throw line while Anunoby collected 18 points.

Josh Hart (11 points, 14 rebounds) posted a double-double while Mikal Bridges added 11 points.

CJ McCollum scored 26 points for the Hawks, who earned the sixth seed in their first trip to the playoffs since 2023. Jalen Johnson had 23 points while Onyeka Okongwu (19) and Nickeil Alexander-Walker (17) each scored in double figures. Dyson Daniels had 11 assists and nine rebounds. — Reuters

Warriors’ season ends

In organized sports, the end is rarely planned. It lingers instead in the gap between certainty and doubt, which, for the Warriors, has suddenly widened. And at the center stands Steve Kerr, no longer speaking with assurance, but rather acceptance. “I don’t know what’s going to happen next,” he conceded in the aftermath of a blowout loss against the Suns that ended their season.

The ambiguity is a striking shift from a coach who, for more than a decade, presided over one of the National Basketball Association’s most impactful dynasties. Since taking over in 2014, Kerr has authored four championships and six Finals appearances, shaping an era built around pace and space, and, of course, the singular brilliance of Stephen Curry. Yet even stability has a shelf life. The Warriors’ 37-45 finish and failure to reach the playoffs underscore what has been increasingly evident: The margins have thinned, the roster has aged, and the old certainties no longer hold.

Kerr’s admission that “these jobs all have an expiration date” speaks to the temporal nature of leadership in pro hoops, where even the most successful tenures eventually give way to fatigue and the need for evolution. His words to Curry and Draymond Green, captured on court, carried a similar weight, if nothing else an acknowledgment of their shared past and unsettled futures. Their ensuing embrace underscored an awareness that what they built together can no longer be replicated, only remembered.

There is, of course, a practical dimension to the proceedings. Kerr’s contract has expired, and ownership must now weigh continuity against the possibility of change. The decision is complicated by competing impulses: the desire to honor a championship core that still shows flashes of brilliance, and the importance of acknowledging, and then confronting, a trajectory that has, in recent seasons, tilted toward decline. Injuries have played their part, but so has age. And Father Time is undefeated.

To be sure, what lingers most is not the uncertainty itself but the manner in which it is being confronted. Kerr did not frame the moment as a crossroads demanding urgency, but as one requiring perspective. He will take a beat to weigh his options, he disclosed in his post-mortem. His will be a measured approach, consistent with the tone he has long set: deliberate, composed, and grounded in the understanding that denouements should be recognized and not resisted. And so he stands, for now, in that in-between space, where nothing seems to be decided yet, but where everything already is.

 

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.

IT-BPM industry welcomes clarity on LGU taxation

BW FILE PHOTO

By Justine Irish D. Tabile, Senior Reporter

THE information technology and business process management (IT-BPM) said Joint Memorandum Circular (JMC) 01-2026 will help address inconsistencies in how local taxes are collected.

“The IT and Business Process Association of the Philippines (IBPAP) views the issuance of JMC 01-2026 as a necessary and long-awaited correction to persistent inconsistencies in how some LGUs (local government units) have imposed taxes, fees, and charges on RBEs (registered business enterprises),” IBPAP told BusinessWorld.

On March 23, the departments of Interior and Local Government, Finance, and Trade and Industry issued JMC 01-2026 to guide the imposition of local taxes, fees, and charges on RBEs.

“For the past year, we have raised these concerns with the government, as certain local practices, anchored on outdated or conflicting ordinances, have clearly run counter to the intent of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act,” it said.

“This JMC was the measure promised to IBPAP that can address some of the concerns we raised to the government,” it added.

According to the JMC, transitioning pre-CREATE RBEs that are only availing of income tax holidays (ITH) should be exempt from local business taxes for six years for those certified as pioneers and for four years for those certified as non-pioneers under the Omnibus Investments Code of 1987.

Pre-CREATE RBEs availing of the ITH and 5% tax on gross income earned (GIE) should be exempt from local business taxes during the remaining period of the ITH, while they will be exempt from local taxes, fees and charges until Dec. 31, 2034 during the  availment of the 5% tax on GIE.

Meanwhile, pre-CREATE RBEs only availing of the 5% tax on GIE were to be exempt from all local taxes, fees and charges until Dec. 31, 2034.

CREATE RBEs availing of the ITH or enhanced deductions regime (EDR) and certified either as pioneer or non-pioneer are to be exempt from local business taxes for six or four years, respectively.

However, CREATE RBEs availing of ITH or EDR may be subject to local taxes, fees and charges unless the local government unit (LGU) has granted exemption, incentives or relief or when the transaction is expressly exempted under existing laws, rules and regulation.

Meanwhile, CREATE RBEs availing of the 5% special corporate income tax (SCIT) are to be exempt from local taxes for the duration of the period specified under their grants.

The JMC also stressed that the presentation of certificates of registration or other equivalent documents issued by the investment promotion agency should be “deemed sufficient” for the RBEs to avail of the exemption from local taxes, fees and charges.

It added that local officials are required to suspend, amend, or repeal all issuances inconsistent with the JMC within six months.

“This JMC supersedes Department of Finance (DoF) Department Order No. 033-2023 dated May 19, 2023, and all other DoF issuances and regulations insofar as they are inconsistent herewith,” it added.

The IBPAP said that the JMC sends the message that “national law must be upheld, and arbitrary or duplicative local impositions have no place in a competitive investment environment.”

“With clearer provisions on LGU taxing powers, a defined framework for RBE local tax, and explicit direction for ordinance alignment, this circular addresses the very issues on business permitting that have affected business confidence and operational predictability,” it said.

“The focus now must be on swift and consistent implementation across all LGUs. Getting this right especially well ahead of the next business permit renewal cycle will be critical to demonstrating that the Philippines can offer a stable, predictable, and investor-friendly environment,” it added.

AmCham, ECCP urge further foreign ownership liberalization

PHILIPPINE STAR/ MICHAEL VARCAS

THE latest liberalization of foreign investment rules must be sustained to ensure that the Philippines attracts high-quality investment, the American Chamber of Commerce of the Philippines (AmCham) said.

“We underscore the need for sustained reforms to further ease foreign ownership restrictions, enhance policy clarity, and boost investor confidence,” American Chamber of Commerce of the Philippines Executive Director Ebb Hinchliffe said via Viber.

He said the Palace order lifting restrictions is a “positive step” in improving the investment climate.

“Executive Order (EO) No. 113’s implementation signals progress, but continued momentum will be crucial to attract high-quality investments, generate jobs, and strengthen the Philippines’ global competitiveness,” Mr. Hinchliffe noted.

Last week, President Ferdinand R. Marcos, Jr. issued EO 113, which promulgates the 13th Regular Foreign Investment Negative List, which consists of the industries not open to foreign investment, or where such investment is restricted.

The order eased foreign ownership rules for retail trade; infrastructure; government procurement of goods and consulting services; and the development of military materials and equipment.

The EO allows overseas retail investors to own as much as 40% of enterprises with paid-up capital of less than P25 million.

European Chamber of Commerce of the Philippines (ECCP) said in an e-mail that EO 113 complements the Philippines’ proposed free trade agreement (FTA) with the European Union (EU).

“The chamber views this recalibration of equity restrictions as a constructive step toward fostering a more predictable, transparent, and competitive business environment in the Philippines,” it said.

The Philippines and EU are on track to finish FTA negotiations this year, Trade Secretary Ma. Cristina A. Roque said in March. Once completed, the EU FTA could unlock $12 billion in additional exports for the Philippines.

British Chamber of Commerce Philippines Executive Director Chris Nelson said the negative list needs to be updated as opportunities arise.

“I think the Philippines needs to keep looking at that list, and see whatever opportunities there are,” Mr. Nelson said via telephone.

Net inflows of foreign direct investment (FDI) slumped to a four‑month low of $443 million in January, a 39.2% drop from a year earlier.

In 2025, FDI net inflows slumped 17.1% to $7.791 billion, the weakest FDI reading since 2020. — Beatriz Marie D. Cruz

OFWs in Europe brace for cost-of-living squeeze

PHILIPPINE STAR/WALTER BOLLOZOS

TOUGHER TIMES are looming for Filipinos in Europe as the Middle East war drives up the cost of living for them as well as for their families back home, raising concerns over the sustainability of remittance flows in the months ahead, according to a Madrid-based consultancy firm.

“The European Filipino diaspora and the effects of the Iran War have forced overseas Filipino workers (OFWs) to contend with the challenges of both residing abroad while maintaining and sustaining their family ties back in their homeland,” Conectando Filipinas said in a statement over the weekend.

According to the firm, OFWs are facing rising living costs in Spain, the UK, France, and Germany.

Citing estimates from a French-based online rental platform, it said that a one-bedroom apartment costs between €900 and €1,200 a month.

“Food expenses, aside from dining, are spiraling because of the high cost of fuel (and its impact on)  product and packaging, manufacturing, and logistics,” it said.

“These rising costs directly affect OFWs’ ability to manage their finances and sustain remittances to their families,” it added.

Philippine inflation accelerated to 4.1% in March from 2.4% in February and 1.8% a year earlier, breaching the Bangko Sentral ng Pilipinas (BSP) 2-4% target band.

“These combined pressures abroad and at home are reshaping how OFWs manage their financial obligations,” the firm said.

“The decline in the quality of life among OFW families in the Philippines underscores the importance of maintaining a strong and constructive link between the European Filipino diaspora and their communities back home,” it added.

It said that Filipinos in Europe are expected to increase, especially in Portugal and Spain, which could grow remittances from the two countries.

“However, the war could also bring about job losses and delayed or reduced salaries, leading to a downturn in remittance volumes,” it said.

Conectando Filipinas estimates that an OFW typically sending home €300  could end up sending only €150 due to the impact of the Middle East conflict, “reflecting a survivalist scenario where high local inflation in Europe forces a significant cut in transfers.”

Alternatively, monthly remittances could actually increase to €500 if OFWs practice the kind of “altruism” observed in migrant workers. Under such a scenario, migrant workers prioritize family welfare  during periods of economic stress.

“Over the longer term, the escalating conflict is expected to pose broader risks to financial systems and remittance channels,” the firm said.

“The escalating Mid-East conflict will impair the flow of funds from Europe to the developing economies of Asia. Money transfers face security risks and financial services disruption,” it added, noting that this could delay the critical help for OFW families.

If the war is prolonged, the firm expects it to affect employers’ sources of income, with these pressures passed on to workers through decreased incomes, forced relocations, and strained employer-OFW relationships.

The BSP reported that cash remittances coursed through banks rose 2.6% to $2.79 billion in February.

Conectando Filipinas is a Systembrand Group company which seeks to link Philippine enterprises with Spanish markets. — Justine Irish D. Tabile

Finance dep’t sees IT-BPM, semiconductor, renewable industries driving job creation

FINANCE SECRETARY FREDERICK D. GO — COURTESY OF DEPARTMENT OF FINANCE FACEBOOK PAGE

THE Department of Finance (DoF) said it is counting on the business process outsourcing (BPO), semiconductor, and renewable energy industries to deliver job creation.

“Creating jobs (is behind) everything we do, from the reforms we have created to attract investment, both foreign and domestic,” Finance Secretary Frederick D. Go said in a statement on Sunday.

“It has one singular purpose, which is to provide jobs for millions of Filipinos,” he added.

He expects the country’s next wave of employment to be driven by these industries as they climb the value chain.

“The BPO industry is evolving into higher-value services such as artificial intelligence, data analytics, and information technology-enabled services — opening more opportunities,” the DoF said.

Meanwhile, Mr. Go said that the continued expansion of the semiconductor and electronics manufacturing sector due to investments from global firms such as Samsung creates more jobs in advanced manufacturing.

He added that the Philippines’ vulnerability to climate-related disasters is attracting increasing investment in wind, solar, and geothermal projects which are also becoming a major source of employment.

“Our weakness is our strength. We get hit by a lot of typhoons, so we need to harness wind power. We get a lot of sun, we need to harness solar power. And third, we’re also a volcanic country, we need to find ways to keep harnessing the geothermal energy,” he said.

At the Intergovernmental Group of Twenty-Four (G-24) Ministers’ and Governors’ Meeting on April 14, Mr. Go called for stronger international support to help protect jobs during war and climate-related crises.

In particular, he cited the need for scaled-up and more flexible financing, which includes budget support and emergency funding tools that will help countries absorb external shocks.

He also called for deeper mobilization of private capital, sustained support for jobs and human capital, and stronger and faster support for disaster and climate resilience.

“Sustaining progress requires collective resolve. We call on countries and development partners to deepen collaboration in responding to both current and emerging crises,” he said.

“We therefore urge renewed multilateralism and deeper international cooperation to strengthen and stabilize the global financial architecture — so that economic transformation is achieved and progress remains inclusive and sustainable,” he added.

On Friday, the heads of Multilateral Development Banks (MDBs) said that they are ready to deploy timely and effective support to help countries amid higher energy costs, supply chain disruptions, and tighter financial conditions.

Mr. Go during a constituency meeting with the World Bank sought faster approval of crisis-related assistance to enable the government to respond more quickly to disaster or economic shocks.

“The Philippines further requested continued scaling up of financial support from the Bank, along with more affordable lending terms,” the DoF said.

“This would help ensure that critical investments, specifically those that create jobs and support vulnerable and upper middle-income communities, can continue despite global challenges,” it added.

The Philippines also called for expanded access to blended financing, which is seen to help fund urgent needs, strengthen institutions, and support long-term development. — Justine Irish D. Tabile

El Niño, rising input costs to dampen corn output

DA.GOV.PH

CORN PRODUCTION is expected to decline in the coming months as a looming El Niño and rising input costs weigh on farmers’ planting intentions, an industry official said.

Romualdo J. Elvira, Jr., president of the Philippine Maize Federation, Inc. (PhilMaize), said the developing El Niño could already be affecting the next corn planting season.

“The volume of harvest will definitely be affected, especially for the coming May-June planting,” he told BusinessWorld via Viber.

The government weather service has said that a moderate to strong El Niño may emerge by the fourth quarter and persist into early 2027.

The Philippines experiences below-normal rainfall during El Niño episodes, affecting agricultural production, particularly for water-intensive crops such as corn.

Mr. Elvira said rising input and fuel costs due to the war in the Middle East are also expected to weigh heavily on corn yields.

“Urea has increased in price from P1,500 a bag last year to P2,450 last month, and may rise further to P3,500 next month,” he said. “Fuel cost could affect our mechanized operations — land preparation, hauling, logistics, irrigation, and later on harvesting and drying.”

With elevated input and fuel costs, Mr. Elvira said corn farmers may be forced to cut back on fertilizer application and equipment use, which is expected to reduce productivity.

To help cushion the impact on corn and the industries that depend on it, such as animal feed and livestock raising, PhilMaize urged government intervention through procurement support.

“We further demand that the National Food Authority immediately allocate funds to procure at least 200,000 metric tons of corn at P25 per kilogram (dry),” the group said in a policy statement.

PhilMaize also opposed a proposal to remove tariffs on corn, instead calling for adjustments of the minimum access volume (MAV) for the commodity.

The MAV scheme allows limited imports of agricultural commodities at favorable tariff rates, while volumes beyond the quota are subject to higher duties. Corn imports within the MAV are currently charged a 5% tariff, while out-of-quota shipments carry a 15% rate.

PhilMaize proposed raising the MAV for corn to 500,000 metric tons from 216,000 metric tons, saying this would help stabilize supply and prices without undermining domestic producers.

“This adjustment will temper price declines, stabilize the market, and ensure a fairer playing field for both producers and consumers,” it said.

The group added that imports should be timed to avoid the harvest, particularly around August to September, to prevent oversupply and protect farmgate prices. — Vonn Andrei E. Villamiel

Rice, fish retail prices rise in early April; meat down

PHILIPPINE STAR/ MICHAEL VARCAS

THE retail prices of rice and fish rose year on year in early April, while meat prices declined, according to the Philippine Statistics Authority (PSA).

During the April 1-5 period, which the PSA calls the first phase of April, the national average retail price of regular-milled rice increased 13.78% year on year to P51.11 per kilo. The first-phase price was also higher than the P48.69 average during the second phase of March (March 15-17) and the P47.47 average a month earlier.

In the National Capital Region (NCR), the retail price of regular-milled rice increased 10.48% year on year to P46.80 per kilo.

The national average retail price of well-milled rice rose 13.7% year on year to P58.44 per kilo in the first phase of April. The first-phase price of well-milled rice was also higher than the P56.60 average during the second phase of March and P55.19 a month earlier.

In the NCR, the retail price of well-milled rice rose 10.54% year on year to P55.15 per kilo.

The retail prices of special rice during the first phase of the month increased 8.35% year on year to a national average of P65.79 per kilo.

The national average retail price of galunggong (round scad) rose 12.68% year on year to P247.48 per kilo in the first phase of April, slightly lower than the P248.64 recorded in the second phase of March, but higher than P242.67 a month earlier.

Chicken at retail rose 0.61% year on year to P212.81 per kilo in the first phase of April. The national average is slightly higher than the P212 recorded in the second phase of March and P211.41 a month earlier.

Meanwhile, the retail price of kasim (pork shoulder) averaged P344.18 per kilo in the first phase of April, down 5.75% from a year earlier. The national average is higher than the P341.48 recorded in the second phase of March and P340.80 a month earlier.

The retail price of liempo (pork belly) declined 4.73% year on year to a national average of P368.83 per kilo. The first-phase price is higher than the P365.29 recorded in the second phase of March and P366.08 a month earlier. — Vonn Andrei E. Villamiel

Creatives aided in obtaining ISNI

THE Department of Trade and Industry has signed an agreement with the Intellectual Property Office of the Philippines (IPOPHL) to help more creatives obtain International Standard Name Identifiers (ISNI).

In a social media post at the weekend, the agencies signed a memorandum of agreement (MoA) to implement the Malikhaing Pinoy Wanna Make It Right program with ISNI and Copyright.

The partnership seeks to connect authors, creatives, and copyright owners to ISNI, a globally-recognized unique identifier, and formal copyright registration through the IPOPHL.

The ISNI is a 16-digit number assigned to persons or organizations involved in creative activities.

Creative industries such as film, publishing and music face infringement and unauthorized use risks as artificial intelligence systems reproduce outputs from existing works, often without artist consent.

“By securing their creative identity, creators gain stronger recognition and protection in both local and international transactions, unlocking greater opportunities in the global creative economy,” IPOPHL said.

The agreement was signed on April 16 by Trade Assistant Secretary Nylah Rizza D. Bautista and IPOPHL Acting Director General Nathaniel S. Arevalo.

The MoA aligns with Republic Act No. 11904 or the Philippine Creative Industries Development Act, and advances the goals of the Philippine Creative Industries Development Plan, IPOPHL said. — Beatriz Marie D. Cruz

Familiar banking risks return through new channels

IN BRIEF:

• Banking risk management is being shaped by interconnected risks driven by innovation, technological change, geopolitical instability, and the expanding role of private capital and non-bank finance. These forces blur the distinction between financial and non-financial risks and heighten vulnerability to shocks.

• As a backdrop to this, regulation is becoming increasingly fragmented and localized, adding to the overall complexity of the risk management landscape. Divergent interpretations of global standards for prudential, digital, AI, and sustainability regulations raise compliance costs, complicate risk measurements and aggregation, and constrain strategic planning.

• To manage risks, banks are shifting from a sole focus on capital strength toward a broader focus on resilience and capability building.

Banking risk management is being shaped by threats that are non-linear, continually accelerated by technology and innovation, intensified by volatility, and tightly interconnected across markets, institutions, and jurisdictions.

The recently published 15th annual EY/IFF Global Bank Risk Management Survey highlights this shift, which is influencing the agenda of chief risk officers (CROs) worldwide. The survey notes that traditional risks are making a comeback and the ways in which they emerge and transmit through banks have changed.

Geopolitical tensions, technology and innovation, and the growth of private capital are also driving opportunities and exposures. At the same time, regulation is becoming more localized, increasing compliance and operational costs for banks. Together, these forces are reshaping the capabilities, resources, and strategies of banks as they navigate this landscape.

This is the third article of the SGV Financial Regulatory Outlook series, which builds on insights from the SGV Knowledge Institute event, “Global Shifts, Local Impact: Navigating the Next Wave of Banking Regulation.”

RE-EMERGING TOP RISKS
With the promise of improved productivity, artificial intelligence (AI) is increasingly being deployed. Digitization has also allowed for better access to financial services, furthering financial inclusion for sectors of the economy that need it most. With this comes heightened concerns about cybersecurity, digital fraud, and financial crime, all reported in the survey as top risks for the world’s CROs.

Additionally, geopolitical instability is seen as a powerful external force shaping risk management strategies. It moves through banks in interconnected chains. It first affects market sentiment, raising uncertainty and leading to changes in investor confidence. It then affects formal economic channels, whether through consequent trade or financial restrictions, or physical disruption. This leads to possible supply chain disruptions, rising levels of sovereign debt, a decline in aggregate demand, and an overall increase in prices that deter growth and trade. These risks then make their way into the balance sheet, affecting credit, liquidity, funding, and market risks — ultimately translating into pressure on capital adequacy. However, their impact extends beyond financial risks, also affecting overall operations and governance.

In the Philippines, the recent geopolitical shock coming from the Middle East is already making waves through supply chain disruptions, placing upward pressure on the price of fuel. As a primary input, higher fuel prices will in turn increase the prices of necessities, leading to a budget squeeze and a fall in overall disposable income. Tighter budgets mean weaker debt-servicing capacity and overall credit demand. Over time, this materializes in the bank’s purview due to implications in asset quality, credit growth, and liquidity conditions.

Credit risk is also making a comeback as a top concern through a combination of traditional financial concerns, rising defaults linked to geopolitical instability and market developments, and the rise of private credit. Private credit or non-bank financial institutions (NBFIs) has taken a more prominent role in the industry, raising concerns about the unregulated “shadow banking” system.

In the Philippines, this is especially relevant given the rise of fintechs which, while expanding access beyond traditional financing, also expands the entities covered under non-bank finance to include startups that enable peer-to-peer lending, pool savings, and profit credit. The local environment is made even more complicated given the distinction between NBFIs with quasi-banking licenses (e.g., investment houses and trust companies) and those without (e.g., pawnshops and remittance companies)

REGULATORY FRAGMENTATION AS A RISK MULTIPLIER
Acting as an overlay to these top risks is the fragmented regulatory landscape. Global standards are being localized, leading to differing interpretations and implications. This is not only in prudential regulation, but also in the areas of AI, sustainable finance, digital assets, and payments.

The shifting regulations highlight shifting priorities for localities while increasing complexities for multinational entities. According to the survey, regulatory fragmentation is expected to increase compliance and operational costs, exacerbate challenges in data management reporting, and lead to difficulties in risk aggregation and measurement. Banks will not only deal with the inherent risk of operations but also consider the costs and opportunities of doing business in specific countries or regions owing to diverging regulations. This confluence of changing top risks and regulation is pushing banks beyond balance sheet defense.

SHIFTING STRATEGIES
Today’s top risks are increasingly non-financial while also driving financial risks. Strong capital planning is indeed still necessary, but it is no longer sufficient on its own.

The survey emphasizes increased resilience as a top strategy to manage geopolitical risks and diverging regulations. In the Philippines, the recent BSP Circular 1203 on Operational Resilience espouses a move beyond continuity planning, stressing the identification of critical operations and systems, mapping of dependences, definition of tolerances, scenario testing, and overall recovery capabilities.

Moreover, managing this new complex risk landscape requires an emphasis on skills around new technologies as well as different team structures. According to the survey, top skillsets for risk management include digital acumen, adaptability to a changing risk environment, understanding the enabling role of risk management, having a deeper specialization in at least one domain, and critical soft skills such as leadership, communication, and collaboration.

FROM RISK AWARENESS TO RISK STRATEGIES
The risk landscape is being shaped not by a single shock, but by a convergence of multiple external shocks materializing through new and traditional risks. This is happening against a backdrop of increased regulatory fragmentation. As countries continue to prioritize localization, banks are managing compliance not as a set of global standards, but as a portfolio of specific local and regional regulations.

Managing this complex environment requires a change in mindset. The banks that navigate these risks will not be the ones that control every risk, but those that build capabilities to anticipate change, identify transmission channels, and embed resilience in strategy, operations, and resources.

This time is different. Resilience is not just about stability; it’s about sustained adaptability.

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.

 

Samantha Joy U. Cinco is a financial services consulting senior director of SGV & Co.

ASEAN oil-sharing push faces hurdles amid region’s uneven energy capacity

ASEAN.ORG

By Chloe Mari A. Hufana, Reporter

PHILIPPINE President Ferdinand R. Marcos, Jr.’s call for a regional oil-sharing mechanism and joint stockpiling across Southeast Asia is unlikely to materialize in the near term, analysts said, as the Middle East crisis exposes deep structural gaps in the region’s energy systems.

Ederson DT. Tapia, a political science professor at the University of Makati, said differing energy profiles among members of the Association of Southeast Asian Nations (ASEAN) complicate efforts to establish a unified response during supply disruptions.

“Some produce, while others rely almost entirely on imports,” he said via Facebook Messenger. “In times of disruption, governments tend to protect domestic supply first.”

ASEAN economies are among the most vulnerable to geopolitical tensions, with a significant share of Asia’s crude oil and gas imports passing through the Strait of Hormuz — a critical chokepoint affected by the US-Israel war on Iran.

Mr. Tapia said a gradual, less ambitious approach to cooperation is more realistic, including improved information-sharing systems, aligned stockpiling practices and selective bilateral agreements among member states.

“The real test is whether these can work during an actual supply shock,” he pointed out. “At the same time, even modest steps in this direction may have implications for deepening regionalism.”

Josue Raphael J. Cortez, an ASEAN Studies lecturer at De La Salle-College of St. Benilde in Manila, said the region is not yet prepared for a binding and fully operational oil-sharing framework.

He cited uneven economic capacity among ASEAN members, as well as the bloc’s longstanding principle of noninterference — often referred to as the “ASEAN Way” — as key constraints.

“However, crises have historically pushed ASEAN to collaborate more closely,” he said via Messenger. “There is a possibility that they would commit to this kind of arrangement, but with certain considerations.”

Mr. Cortez said a phased approach — anchored on sustained consultations and incremental framework-building — offers a more viable path forward. Existing platforms such as ASEAN+3, which includes China, Japan and South Korea, could serve as entry points for broader cooperation.

He added that infrastructure initiatives like the ASEAN Power Grid could also help lay the groundwork for deeper energy coordination.

Mr. Marcos, speaking at a Japan-led summit last week, urged regional leaders to pursue joint oil stockpiling and activate the ASEAN Petroleum Security Agreement, warning that supply disruptions risk prolonging inflation and slowing economic growth.

He also backed further study into shared reserves, citing existing models such as national stockpiling systems and cooperative arrangements with crude exporters.

The proposal comes as the Philippines, this year’s ASEAN chairman, grapples with surging oil prices that have pushed inflation higher and increased pressure on households and businesses.

The country remains under a year-long national energy emergency, reflecting its heavy reliance on imported fuel and exposure to global supply shocks.

Within ASEAN, oil production is concentrated in countries such as Indonesia, Malaysia, Thailand, Vietnam, and Brunei, while import-dependent economies like the Philippines face greater vulnerability to price swings.

Analysts said any regional mechanism should address these disparities to gain traction.

Mr. Tapia noted that while energy cooperation could strengthen broader regional coordination, it may also face criticism if it increases reliance on external partners or fails during times of crisis.

“Some will argue that the priority should be building stronger domestic reserves and diversifying energy sources,” he said.

For now, Manila is focusing on domestic measures, including plans to raise fuel reserves, diversify crude sourcing and establish a strategic petroleum reserve.

The government has also explored alternative suppliers, including nontraditional partners in South America, while negotiating additional supply arrangements with allies.

Congress has authorized Mr. Marcos to suspend excise taxes on petroleum products to ease rising costs, although the administration has so far limited the relief to liquefied petroleum gas and kerosene.

Senators weigh delay in village elections, use of P16-B budget for oil crisis

MOTORISTS queue at a gasoline station along Norzagaray Road in San Jose del Monte on March 8, 2026. — PHILIPPINE STAR/RYAN BALDEMOR

SOME Philippine senators are open to postponing the village and youth council elections and redirecting the P16-billion budget to cushion the impact of surging fuel prices, although others warned against sidelining youth governance programs.

Senator Maria Imelda “Imee” R. Marcos backed proposals to defer the Barangay and Sangguniang Kabataan Elections, saying the funds could be used to address urgent needs such as fuel costs, food security and basic services as the country grapples with an oil shock linked to the Middle East war.

“This sum can be more urgently directed toward addressing the immediate needs of our people,” she said in a statement on Sunday, adding that postponement would allow local officials to focus on crisis response instead of election-related activities.

The Philippines has been dealing with rising pump prices following the US-Israel war on Iran, which has disrupted global oil markets and increased pressure on transport and agriculture.

The government has rolled out fuel subsidies for affected sectors, with authorities warning that additional funding might be needed if the crisis drags on beyond three months.

Senator Panfilo M. Lacson earlier cautioned that simply reallocating election funds might face constitutional issues, echoing concerns earlier raised by Commission on Elections (Comelec) Chairman George Erwin M. Garcia.

Mr. Lacson suggested a workaround, saying the election body could opt not to spend the funds and instead declare them as savings that can be returned to the national treasury for reprogramming.

“Comelec may opt not to spend the funds for the [elections] and declare them as savings,” he said.

Still, not all lawmakers support postponing the elections.

Senator Alan Peter S. Cayetano opposed the move, citing the importance of youth leadership development through the Sangguniang Kabataan.

“It’s a lesson in democracy, it’s a lesson in governance,” he said during a student engagement in Cebu, warning that scrapping or delaying the elections could weaken efforts to train future leaders.

The elections had been moved once by President Ferdinand R. Marcos, Jr. under Republic Act No. 12232, shifting the elections from December 2025 to November 2026 to accommodate the Bangsamoro region’s parliamentary elections. — Kaela Patricia B. Gabriel

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