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Emmanuel and the politics of presence

A FLOOD CONTROL–THEMED nativity scene is displayed among the entries in the Belen Making Contest at the MBC Media Group building in Pasay City, Dec. 13. — THE PHILIPPINE STAR/NOEL B. PABALATE

Happy birthday, Jesus.”

Beneath this familiar Christmas greeting lies a demanding idea: God did not address humanity’s deepest failure from a distance. He did not issue instructions from afar or rely on intermediaries alone. He came near. He entered history. He took on flesh. Emmanuel, God with us, was not an abstraction, a slogan, or a policy statement. He was presence made real, authority made visible, and commitment made costly.

The Gospel of John captures this with stark clarity: “In the beginning was the Word, and the Word was with God, and the Word was God.” The Logos, or word, did not remain theoretical. After four centuries of waiting, God did not send another commandment or reform agenda. He sent Himself. Salvation came not only with truth, but with proximity.

That choice offers a powerful lens for governance in the Philippines today. If the central failure of humanity required God’s incarnate presence, then persistent national failures —weak institutions, uneven growth, recurring corruption, vulnerability to disasters, and political exclusion — cannot be resolved by plans, budgets, and rhetoric alone. They require a government that is likewise with the people: present in execution, visible in accountability, and credible in leadership.

WAITING, THEN ACTING
Before Christ’s coming, Israel endured long periods of conquest, decline, and silence. Institutions weakened. Authority was imposed rather than trusted. Hope narrowed. The people waited.

The waiting ended not with a decree but with action. “The Word became flesh and dwelt among us.” God entered the constraints of human life — time, space, vulnerability. Presence was not symbolic; it was costly.

Many Filipinos should recognize a familiar waiting today. Economic growth is reported, budgets expand, and reform programs are announced. Yet for millions, progress feels abstract. It is remote. Prices rise faster than wages. Taxes oppress both households and business. Public services fall short. Disasters expose gaps in project design and execution, as well as in preparedness and response. The recurring question is not philosophical but practical: Where is the government when it matters?

PRESENCE AS A GOVERNING PRINCIPLE
In contrast, Jesus’ ministry was defined by proximity. He taught where people gathered, healed where suffering was visible, and confronted abuses of authority directly. He did not operate through distant intermediaries. He bore the costs of engagement — misunderstanding, opposition, and the cross.

This offers a direct parallel to governance as we know it in the Philippines. Presence is not sentiment; it is a governing principle. It means policies designed with real conditions in mind, leaders accountable for outcomes, and institutions that do not retreat behind procedure when results fall short.

In the Philippine context, governance often relies on form rather than substance. Development frameworks are comprehensive, but execution is performative and inconsistent. Laws are passed, but enforcement is uneven. Authority exists, yet responsibility is diffused and denied.

BUDGETS AS INCARNATION OR ITS ABSENCE
If Emmanuel is truth embodied, then the budget is where government either becomes real — or remains a ghost. A budget should translate intention into action, priorities into programs, and authority into results.

Yet the national budget increasingly reveals a gap between design and delivery. While the executive proposes the initial expenditure budget, the legislative process introduces extensive dubious insertions that fragment priorities. Projects end up with weak links to agency mandates. Funds are divided into localized items that are politically attractive but administratively difficult to monitor.

This mirrors a government that speaks but does not dwell, announcing priorities without fully inhabiting their consequences. Implementing agencies are tasked to execute projects they neither planned nor evaluated, blurring accountability when outcomes disappoint. We see these today in the unfolding flood control scandal.

Unprogrammed appropriations in this country have destroyed the budget process. Intended as contingent spending, they have expanded to levels that effectively create a parallel budget. This weakens fiscal discipline and expands discretion, especially when revenue assumptions prove optimistic. Like authority exercised without presence, spending authority without assured funding or clear safeguards erodes credibility.

In contrast, an “Emmanuel” approach to budgeting would emphasize clarity of purpose, restraint in discretion, and accountability in execution. It would favor fewer, well-designed programs over many fragmented ones, and outcomes over announcements.

POLITICAL DYNASTIES AND THE PROBLEM OF DISTANCE
No discussion of absence and distance in Philippine governance is complete without confronting the role of political dynasties. For decades, power has been concentrated in a narrow set of families that dominate both national and local offices, often across generations.

Dynastic politics creates a form of representation that is formal but hollow. Officials may occupy office continuously, yet governance remains distant because accountability is internalized within families rather than exercised by institutions or voters. Public office becomes an inherited asset rather than a public trust.

We are familiar with the story that concentration of power weakens competition, discourages merit, and limits the entry of new leadership. It also helps explain why budget distortions persist. Congressional insertions, discretionary allocations, and localized projects often serve to entrench political networks rather than address systemic needs. In the Philippines, the budget has become a tool of political maintenance rather than national transformation.

In our system, government presence is selective. It is felt during elections, ribbon-cuttings, or moments of patronage — but absent in sustained service delivery, national calamities, institutional reform, and long-term investment. The poor encounter government episodically, not consistently. At various levels, many public servants transact, but they rarely transform.

Emmanuel represents the opposite logic. God did not send representatives to act in His place while remaining distant. He came Himself. Dynastic politics, by contrast, multiplies intermediaries while insulating the elected from accountability. Philippine dynasties produce continuity without reform.

AUTHORITY THAT ACCEPTS COST
After the resurrection, Scripture tells us that Jesus declared that all authority had been given to Him. He then delegated it, sending others to preach, disciple, and baptize. The call is to teach and serve. Authority, in this model, is inseparable from cost and accountability.

This stands in tension with contemporary governance shaped by dynastic protection. Filipino politics dictates authority should expand, but risk is socialized and responsibility diluted. Oversight institutions struggle to penetrate entrenched networks. Audit findings recur — overpricing, delays, weak procurement — yet sanctions are uneven and slow. Worse, as in the flood control anomaly, audit could be compromised.

The parallel is instructive. Emmanuel did not avoid the cost of engagement. Philippines-style governance avoids cost and inevitably retreats into distance and defensiveness.

INSTITUTIONS REFLECT COMMITMENT
Jesus’ parable of the soils offers another parallel. Systems, like hearts, fail when commitment is shallow or divided. Reform collapses when resistance carries no cost and integrity no protection.

Institutions weakened by political accommodation lose their capacity to deliver. Budgets distorted by narrow interests cannot produce inclusive growth. And when enforcement is selective, trust declines, raising the economic cost of compliance, investment, and reform.

An Emmanuel-centered governance framework demands institutions that are present where rules are tested: procurement, regulation, taxation, and justice. Presence here means consistency, not perfection.

EMMANUEL AS A TEST OF ECONOMIC LEADERSHIP
The prophet Isaiah spoke of light breaking into darkness. Apostle Paul described power that chose restraint and service. Emmanuel is not sentiment; it is a standard.

Applied to economic leadership, the test is straightforward. Does government show up where risks are highest and returns politically lowest? Does the budget protect long-term capacity or merely accommodate dynastic bargaining? Do institutions correct failure or normalize it?

Just as salvation required God’s presence, development requires leadership that resists distortion, disciplines discretion, and accepts accountability. It’s about time that the Filipinos experienced government not through speeches but through stable prices, robust growth, efficient services, more jobs, and institutionalized fairness.

CHRISTMAS WITHOUT DISTANCE
Christmas, then, is not about comfort. It is about proximity and responsibility. Emmanuel challenges our leaders to govern without distance — budgets that reflect priorities rather than bargaining power, institutions that enforce rules rather than negotiate them, and political systems that open space for merit, renewal, and accountability.

For Filipinos, the implication is equally direct. Distance, dynastic dominance, impunity, and indifference persist because they are tolerated. The Philippines will therefore be shaped less by ideals than by what they accept as normal.

Jesus’ promise — “I am with you always” — offers assurance, but it also establishes a standard for public leadership. Isaiah makes the implication explicit: with Emmanuel, “the government shall be upon His shoulder.” Authority, in this vision, is not distant or delegated away. It is borne personally, tested in crisis, and exercised in full view of the people. Presence matters most in times of calamity. Leadership matters when institutions falter and citizens are disillusioned and angry. And integrity matters because the Philippines today is in urgent need of clear, credible moral purpose.

With Emmanuel, the challenge is not symbolic. Rising to it means building a government that is with the people. It is the difference between policy that exists on paper and governance that works in practice.

 

Diwa C. Guinigundo is the former deputy governor for the Monetary and Economics Sector, the Bangko Sentral ng Pilipinas (BSP). He served the BSP for 41 years. In 2001-2003, he was alternate executive director at the International Monetary Fund in Washington, DC. He is the senior pastor of the Fullness of Christ International Ministries in Mandaluyong.

Lower retirement age proposed to boost workforce openings

PHILIPPINE STAR/MIGUEL DE GUZMAN

A BILL seeking to lower the retirement age for workers in both the public and private sectors was filed in the House of Representatives last week, aiming to allow Filipinos to retire in better health while creating more job opportunities for younger workers.

House Bill No. 6954 proposes lowering the mandatory retirement age to 60 from the current 65. It also seeks to reduce the optional retirement age for government employees to 55, provided they have rendered at least 15 years of service.

“This reduction offers a structural solution to help alleviate the country’s persistent labor market challenges by encouraging the retirement of older workers,” Camarines Norte Rep. Nelson S. Legacion, who filed the bill on Dec. 17, said in the measure’s explanatory note. “A substantial number of vacancies will be created for younger job seekers.”

The proposal comes as labor market conditions softened in recent months. The number of unemployed Filipinos rose by about 570,000 to 2.54 million in October from a year earlier, pushing the unemployment rate to 5% from 3.8% in September and 3.9% a year earlier.

Underemployment, which refers to workers seeking additional hours or better-paying jobs, eased to 12% in October from 12.6% a year earlier, but increased from 11.1% in September.

“Lowering the mandatory retirement age will directly open more positions, which is projected to boost economic activity,” Mr. Legacion said, adding that the entry of younger workers would help both government agencies and private companies adopt new technologies and improve workplace efficiency.

The bill also directs the Government Service Insurance System (GSIS) and the Social Security System (SSS) to conduct actuarial studies to assess the impact of an earlier retirement age on the sustainability of their funds.

“A lowered retirement age can reduce the fund’s life due to shortened contribution periods and prolonged payout periods,” Mr. Legacion said. “There must be actuarially sound principles to protect the long-term viability of the Social Insurance Fund.”

Under existing laws, retirees may stop paying contributions and begin receiving monthly pensions, with benefits sourced from the SSS for private-sector workers and the GSIS for government employees.

The measure also highlights the social benefits of earlier retirement, allowing retirees to enjoy life while they are still physically fit.

“Earlier retirement provides the precious time and opportunity for retirees to engage in activities long deferred: traveling, spending quality time with families… or simply enjoying much-needed rest and relaxation,” Mr. Legacion said. — Kenneth Christiane L. Basilio

What is the board’s role in AI strategy?

Artificial intelligence (AI) is no longer a futuristic concept. It is reshaping industry, and its impact is growing fast. This is why AI belongs at the center of board-level discussions. During a recent two-day AI Leadership and Corporate Governance workshop for the PNB Board led by Roger Collantes of Global Learning Solutions (Singapore), one message was clear: AI is now a strategic imperative — not a technical add-on.

AI refers to technology designed to perform tasks that normally require human intelligence: learning, recognizing patterns, analyzing data, solving problems, and generating responses. It can work at a speed and scale far beyond human capability. But boards must remember this essential truth: AI is powerful, but it is not magical. It does not “think” or “reason” like humans. It has no ethics or values at all. Its output is only as good as the data it receives. Hence, garbage data, garbage output. Regular testing, validation, and strong data governance are critical.

AI is no longer just an operational tool. It affects every part of a business — its people, customers, growth, and risks. Thus, boards must approach AI as a strategic force where key areas of impact are:

1. Workforce engagement – AI handles repetitive tasks, allowing employees to focus on higher-value work — improving morale, innovation, and productivity.

2. Customer trust – AI enables more personalized products and services. When implemented responsibly, it strengthens data protection and enhances reputation.

3. Business growth – AI identifies new revenue opportunities, improves efficiency, and sharpens competitiveness — especially in banking where speed, accuracy, and risk detection are critical.

4. Risk and compliance – AI enhances fraud monitoring, regulatory reporting, and overall risk governance.

Boards must shift from passive oversight to active stewardship by guiding data governance, talent and reskilling, responsible AI innovation, and long-term AI strategy. AI with human judgment is a necessary partnership, as AI cannot replace human values, empathy, or ethics. A machine has no moral compass. It responds based on patterns, not principles. Therefore, responsibility always stays with people.

Boards must ensure the organization champions ethical AI, with four pillars, namely, fairness (avoid bias across all demographics), accountability (humans, not machines, must be responsible for outcomes), transparency (AI decision-making should be clear and explainable), and privacy (protect data, collect only what’s necessary, and secure sensitive information). To lead effectively in the AI era, boards must shift from simply monitoring risks to actively shaping strategy. Leaders must understand that AI is reshaping global banking and governance. AI is a strategic driver, not a simple tech upgrade.  AI should be central to business growth. AI offers major opportunities alongside significant risks, so businesses enable innovation with ethics and trust. Boards must support workforce reskilling. What capabilities and competencies must the workforce have to remain relevant and viable? Boards must provide strong oversight and clear accountability.

What can AI bring to banking? Its potential is extensive: hyper-personalized customer experiences, faster and smarter decision-making, better risk detection and prevention, automation of both front- and back-office work, and more accurate credit scoring and customer insights. At the Nov. 12 “Agentic AI Unmasked” event presented by John Clements Consultants led by Carol Dominguez, ING Country Manager Jun Palanca shared ING’s GenAI program, discussing where the technology has the biggest potential to transform business processes and bring superior value to customers.

Examples are personalization of offers and marketing campaigns the automation and acceleration of Know-Your-Customer processes, and anti-money laundering operations. Jun said GenAI is also used for data extraction and improvement of early warning indicators for lending risk, among others.

“The best banks don’t just use AI — they build culture, guardrails, and governance around it. Those who succeed will be the ones who master both algorithms and accountability” said Roger.

AI is here and is transforming. Boards must understand, guide, embrace and actually  govern it. Board leaders must ask the right questions, set responsible but ambitious AI directions, and ensure the organization delivers AI-powered, human-centered growth. Companies, especially banks with strong and ood data discipline, risk culture and accountability, can take advantage, while failure may be accelerated in weakly-governed institutions. The board’s role is to set boundries, assign repsonsibility and fund capability building. The future belongs to institutions that combine technology with wisdom, ensuring that AI serves people and not the other way around.

Merry Christmas and Happy New Year! Let us remember the reason for the season: the one up above born to be our SAVIOR!

The views expressed herein are her own and do not necessarily reflect the opinion of her office as well as FINEX.

 

Flor G. Tarriela is a banking professional. Formerly chairman of PNB and currently a board advisor to PNB and LTG. She is a director in Nickel Asia and Finex Foundation. She is also a gardener/environmentalist.

Seek Explore deregistered over investments

SEC.GOV.PH

THE Securities and Exchange Commission (SEC) has revoked the corporate registration of Seek Explore Sports Association, Inc. after finding it engaged in unauthorized investment activities.

In an order dated Dec. 22, the SEC’s Enforcement and Investor Protection Department (EIPD) said it canceled the company’s registration for violating Section 44 of Republic Act No. 11232, or the Revised Corporation Code (RCC), in relation to Sections 8.1, 26, and 28.1 of the Securities Regulation Code (SRC) and Section 6(i), paragraph 2 of Presidential Decree No. 902-A.

The RCC bars corporations from exercising powers beyond those set in their articles of incorporation (AoI).

The SEC also imposed a P1-million fine on the company for offering securities to the public without securing the necessary registration or license.

Seek Explore Sports Association, registered in November 2024, declared in its AoI that its primary purpose was to implement activities to improve community health, education, and productivity, facilitate contributions for association development and societal benefit, promote livelihood programs for elders, and conduct outreach programs in the community.

However, the SEC said its investigation found that the company had offered the sale of securities despite a clause in its AoI stating that its certificate does not authorize investment solicitation or investment-taking without a secondary license from the Commission.

“Despite its lack of authority, Seek Explore Sports Association Inc./Seek Explore Sports Business Association/Se Sports/Seek Explore Ltd./Se Sports Philippines And Sports Business Association enticed the public to invest in its supposed schemes which has the characteristics of a Ponzi Scheme where returns to early investors are likely to be paid out from the investments of new investors and not out of the corporation’s profits, with promise of ridiculous rates of return with little or no risk similar to those already flagged by the Commission as scams,” the order read.

According to the SEC, Seek Explore Sports Association promoted schemes promising high returns on unregistered “investment contracts,” taking investments from P500 up to P140,000 with claims that these could reach about P1.79 million in 150 days depending on the plan chosen by the investor.

“Furthermore, an investor can also earn up to 17% commission and up to 200 points,” it added.

The SEC found that the schemes of Seek Explore Sports Association and its related entities met all the elements of an investment contract: members of the public invested money, funds were pooled in a common profit-making enterprise, investors were promised earnings, and those profits were to come mainly from the efforts of others, with investors not involved in management and earning only by investing.

The SEC issued an advisory against Seek Explore Sports earlier this month, warning the public about the company’s unauthorized solicitation of investments. — Alexandria Grace C. Magno

Austrian painter Arnulf Rainer dies at 96

AUSTRIAN artist Arnulf Rainer has died at the age of 96, Austrian news agency APA reported on Sunday.

A versatile and often provocative exponent of abstract art, Mr. Rainer was considered one of Austria’s leading postwar artists and was a pioneer of Art Informel in his homeland. His works featured in major art museums around the world.

Both painter and graphic artist, Mr. Rainer was initially drawn to surrealism, but from the 1950s he became renowned for what he called “overpainting” — painting over existing works or pictures, frequently images of himself or those created by him.

Austrian state broadcaster ORF said Mr. Rainer died on Thursday. — Reuters

Dismiss the doomsday clock at your own peril

GETTY IMAGES VIA BLOOMBERG CONNECT

By Andreas Kluth

WE’RE ONCE AGAIN approaching the annual resetting of the Doomsday Clock. Last January, the Science and Security Board of the Bulletin of Atomic Scientists, a group of very smart people, moved the hands of their metaphorical clock to 89 seconds to midnight, where midnight represents doomsday, apocalypse, Armageddon, extinction, or whatever you want to call it.

It’s 89 seconds! That’s the closest to midnight the clock has ever stood. What will the board, looking back at 2025, say on Jan. 27, 2026?

You can dismiss this timepiece trope as a gimmick, but you’d do so at your own intellectual risk. The Bulletin and its clock started with Albert Einstein, Robert Oppenheimer and the other scientists who were genius enough to invent nuclear weapons and wise enough to regret their invention. To prod citizens and leaders into changing course, they came up with this metaphor of an existential countdown. At the outset, in 1947, they set the hands at 7 minutes to midnight.

It would take decades for the board to start factoring in climate change, biotechnology and pandemics, artificial intelligence and disinformation, and all the other dangers that today, underneath and beyond the headlines, menace our species in ways that we barely understand. The new and salient worry at the time was of course the use of fission to destroy entire cities (two were already in ashes), and potentially whole civilizations.

And so the clock began filtering world events, like a scientific fan that winnows substance from trivia. In 1949, after the Soviets joined the US as a nuclear power, the hands moved to 3 minutes. In 1953 they stood at 2, after tests of the first thermonuclear bomb (in which a Hiroshima-style fission blast is “merely” the trigger for a vastly larger fusion burst, in effect a sun burning on earth).

Humanity seemed to keep hurtling toward midnight, with more countries getting nukes, and even more pursuing them. In 1962, the world came close to atomic holocaust during the Cuban Missile Crisis.

That gaze into the abyss, though, had a positive effect: It stirred world leaders into action. During the 1960s, the Partial Test Ban Treaty ended most nuclear testing above ground. Almost all countries adopted the Nuclear Non-Proliferation Treaty, under which nations without nukes pledged never to make them, and the five “legitimate” nuclear powers promised to start disarming. In the early 1970s, the US and the Soviet Union inked the first bilateral treaties to limit their two-way arms race. Between 1963 and 1972, the clock’s hands moved between 12 and 10 minutes to midnight — not great, but better.

But world affairs went in the wrong direction again. India got the bomb, and Pakistan would later follow suit. The two superpowers, far from disarming as the NPT obliged them to do, kept upgrading their arsenals, with demonic innovations such as MIRVs (multiple independently targetable reentry vehicles). Detente gave way to confrontation, and by 1984, the clock stood at 3 minutes.

Then the Cold War began thawing. In 1988, the clock went back to 6 minutes, after the US and the Soviet Union signed the first treaty ever to ban an entire category of nuclear weapons (those mounted on intermediate-range missiles). In 1990, it hit 10 minutes, after the Berlin Wall crumbled, and with it the Iron Curtain.

In 1991, the clock touched 17 minutes, the farthest from midnight it has ever been. Intellectuals celebrated the “end of history” and the apparent dawn of pacific and liberal democracy for all humanity. At long last, the superpowers junked thousands of their nukes, as they had implicitly promised in the NPT. And they stopped all explosive testing of nukes, even underground.

The era of good feelings didn’t last long, though. By the late 1990s, both India and Pakistan tested fission bombs. The terrorist attacks of Sept. 11, 2001, caused anxiety that “loose nukes” might fall into the hands of non-state actors with nothing to lose. North Korea tested its first warhead, becoming the ninth nuclear power.

And climate change joined the board’s, and world’s, worry list. It threatens catastrophe first gradually, then suddenly: by damaging ecosystems; causing floods, storms and droughts (and thus famines); and seeding more pestilence, as species come into contact with new organisms and the thawing permafrost burps out pathogens frozen for millennia. By 2007, the clock was at 5 minutes to midnight; in 2015 at 3.

In 2020, during the first administration of Donald Trump and a pandemic, the board switched to quoting the time in seconds: 100 to midnight. It identified yet another threat in the form of “cyber-enabled information warfare.” Memes, disinformation and conspiracy theories now spread like viruses, confusing, distracting and polarizing societies and making them “unable to respond” to the existential challenges posed by nukes and the climate.

In 2023, the clock moved to 90 seconds to midnight, after Russian President Vladimir Putin invaded Ukraine and broke the ultimate taboo of the nuclear age by threatening to use nukes.

And this year, it ticked forward another second. Trump was not the reason — he had been inaugurated only a week before the announcement. It was instead the urgency of all the existing threats, and the specter of hidden feedback loops and possible “cascades” associated with our emerging “polycrisis.”

And now, one year on? It seems to me that every threat the Bulletin described in 2025 has gotten more dire.

Nuclear risk, which was relatively easy to comprehend during the Cold War, is now diffuse. The last arms-control treaty between the US and Russia expires in February, and both countries are “modernizing” their arsenals, with new warheads, bombers, missiles and submarines.

China is adding to its stockpile to catch up with the big two. North Korea is arming; Pakistan and India are always close to fighting, and sometimes at it. Worse yet, artificial intelligence threatens to make many kinds of weapons “autonomous” and shrink decision times in a nuclear crisis to minutes — the insanity of the resulting psychological stresses has even made it to Hollywood.

Trump has probably made one part of the problem better, if only temporarily: He bombed Iran’s nuclear facilities, setting back its efforts to build a bomb. But he has also increased the risk of general proliferation (and of the NPT’s slow death), by disdaining America’s traditional allies and making them doubt the US “nuclear umbrella” that allegedly protects them. From Europe to Asia and the Middle East, more countries are now considering going nuclear, just as experts are advising them.

Trump also appears close to breaking another nuclear taboo, the moratorium on explosive testing. If the US were to detonate nukes again, China, Russia and other countries would follow suit. And all major nuclear powers are designing new, more maneuverable and faster missiles to deliver death on earth, while looking to outer space as the next domain of warfare.

Meanwhile, greenhouse gas emissions keep increasing and the weather is getting more destructive. And yet America, the world largest emitter historically and the second largest (after China) currently, has officially lost interest.

As the new National Security Strategy puts it, “We reject the disastrous ‘climate change’ and ‘Net Zero’ ideologies.” The Trump administration boycotted the 30th climate conference of the United Nations in 2025 and will formally exit the Paris Agreement, a treaty to control global warming, on Jan. 27, 2026 — the very day when the Doomsday Clock will be reset.

Also in January, the US will formally quit the World Health Organization, whose role is in part to look out for, and save us from the next pandemic. At home, Trump has put antivaxxers and quacks in charge of public health. That segues to the other threat the Bulletin worried about last time: misinformation and disinformation. They are “potent threat multipliers,” John Mecklin, the editor, wrote, because they “blur the line between truth and falsehood.”

Since he said that, the blurring seems to have made us all but blind. The board will make its own decision about the clock. If you ask me, it feels like one minute to midnight — or less.

BLOOMBERG OPINION

Community relations won’t stop a labor union

We have a strong community relations program that prefers hiring workers within the vicinity of our factory. Our human resources (HR) manager says it’s a strategy to prevent people from organizing a labor union. Is that correct? — Arctic Owl.

​Contrary to the belief of your HR manager, there’s no assurance that having a “strong” community relations could prevent workers from organizing a union. Besides, that statement coming from an HR manager crosses into union avoidance and therefore, an illegal strategy.

​But then, how strong is “strong,” exactly? Do you have an attractive scholarship for deserving college students? Do you have a medical mission for the residents or a feeding program for its malnourished children?

​How about funding a self-managed cooperative to augment the income of the workers’ families? Does the program include the construction of a basketball court or the repainting of the barangay hall? The list is endless.

​On paper, those interventions could help organizations be endeared to the residents but not enough to prevent unions from coming in. At its best, your program could only merit regular standing ovation from barangay officials, the parish priest, and grateful residents, but not to labor officials.

​The hard truth is that those “strong” interventions may not be enough. They can’t be used to solve the issues of an unhappy workforce that may even think that hiring locals is best suited to solve their commuting woes and ensure the success of the perfect attendance award.

​Indeed, a community relations program is good public relations, but they don’t substitute for genuine and strong employee relations. A company may build goodwill outside its gate, but if massive discontent brews inside, union organizers will find it easy to talk to willing ears.

TWO WORLDS
​Many HR executives proudly speak of a “strong” community relations making the company visible and admired. That reflects an overly narrow mindset. They create a sense that management cares about its social footprint without realizing that their employees live in two worlds — one outside the factory where they’re part of the local community.

​And another world inside the factory where they must dutifully clock in like robots, reluctantly follow toxic supervisors, earn their minimum wage while working in an unsafe and dirty environment. Or even wait for the late release of their 13th month pay.

​That means if their inside world feels unfair, unhealthy, and managed by dismissive managers, the outside kindness loses its meaning no matter how HR perceives it to be “strong.”

​Labor unions don’t appear out of thin air. They grow in the cracks of organizational neglect. When management ignores complaints, when supervisors bark orders more than they coach, when promotions seem unfair, and when wages lag behind — workers are bound to talk. And when they talk, they organize to protect their interests.

​Joining a union is driven by frustration. Employees who feel powerless create collective power.​ If management thinks a “good image” in the community will immunize the company from this reality, then they’re wrong because low morale takes precedence over a cosmetic community relations program.

​One important caveat, unions are often supported by federations that target strategic employers and not the internally “neglected” workforce with few disgruntled people.

DUAL STRATEGY
​Organizations can only progress if they fully understand that employee relations and community relations are two sides of the same coin. That means, but cannot replace, each other. If your organization wants to succeed in creating a high-morale and productive workforce, you should create a dual strategy where management is trusted inside and out its territorial boundaries.

​One, treat employees as partners, not just payroll numbers. Offer fair wages, have a proactive two-way communication and participative decision-making process. Create a grievance system that works — not one that buries or ignores complaints. Celebrate small wins publicly and solve problems privately before they escalate.

Two, strengthen authentic community partnership. Support local schools, health programs, and small businesses. Be transparent about environmental practices. Then require, if not allow volunteer opportunities for employees so that the company’s goodwill includes them as active participants, not passive observers.

​When both fronts are aligned, employees take pride in where they work — and the community respects where they work. That’s how a company builds genuine loyalty, not a faint applause. The lesson is clear: you can’t outsource industrial peace by doing community projects.

ALIGNING THE TWO
For community relations to help indirectly with labor stability, it must include employees in the narrative. That means designing community relations and employee relations as one basic program making workers feel proud contributors, not passive bystanders. A good example is when employee volunteers lead school outreach programs.

​Then, publicly recognize their participation, not just the company’s donation. This approach blurs the artificial wall between “inside” and “outside.” When employees see that their employer walks the talk, the relationship becomes more authentic.

In today’s business landscape, goodwill has two addresses: one in the community and one on the factory floor. Ignore either, and you’ll end up in deep trouble.

 

Consult Rey Elbo for free. E-mail elbonomics@gmail.com or DM him on Facebook, LinkedIn, X or via https://reyelbo.com. Anonymity is guaranteed, if requested.

Philippines ranks 57th in digital quality of life list

The Philippines placed 57th out of 121 countries in the 2025 edition of the Digital Quality of Life (DQL) Index, published by VPN provider Surfshark. With an overall score of 0.4888, the country was better than the global average score of 0.4804. The index assesses and compares the relative performance of a country’s digital well-being based on five equally weighted pillars: internet affordability, internet quality, digital infrastructure, digital security, and artificial intelligence.

PSEi may stay at 6,000 level as year winds down

BW FILE PHOTO

PHILIPPINE STOCKS may stay above the 6,000 line on Friday, with trading activity expected to be light amid the holidays and as investors remain cautious on prospects for 2026.

The bellwether Philippine Stock Exchange index (PSEi) edged up by 0.01% or 0.65 point to end at 6,041.91 on Tuesday, while the broader all shares index rose by 0.03% or 1.23 points to 3,447.53.

Philippine financial markets were closed on Dec. 24-25 for the Christmas holidays.

“The PSEi ended in the green after late buying pressure emerged toward the close. Sentiment was also buoyed by seasonal factors and remarks from Finance Secretary Go, who expressed confidence that the economy will be back on track by the first quarter of next year,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

Finance Secretary Frederick D. Go has said he is confident the economy will be back on track by the first quarter once individuals linked to the flood control scandal are swiftly prosecuted. In a Dec. 18 briefing with reporters, Mr. Go said government revenues may rebound in early 2026, depending on the swift resolution of cases related to the corruption mess.

Economic managers have conceded that the 5.5%-6.5% target for the year is now unreachable after the third-quarter gross domestic product print slumped to a four-year low of 4% amid the ongoing flood control controversy.

For the last trading days of 2025, the PSEi may continue to test the 6,000 level, Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

“On a positive note, the local market is still holding its position above the 6,000 level. However, trading has been tepid, reflecting tepid market confidence,” he said.

“In the remaining trading days of the year, investors are expected to move based on their view of the local economy’s outlook for 2026. But since growth outlook is tempered due to the current headwinds that we are facing, and there are no catalysts seen as of the moment that could re-accelerate growth, we may not see that much from the local market for the remainder of the year.”

AP Securities, Inc. Equity Research Analyst Shawn Ray R. Atienza said in a Viber message that investors may be risk-averse and simply take positions amid the absence of fresh leads and lingering concerns over the outlook for the Philippine economy.

“On the other hand, bargain-hunters and risk-seekers could add fresh names or existing positions and double down on bets with reasonable risk-to-reward ratios,” he said.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan said trading volumes may be low as 2025 winds down, although the market could get some support from year-end window-dressing by investors. — Alexandria Grace C. Magno

Investments board signs Lease Act IRR

REUTERS

THE Board of Investments (BoI) has signed the implementing rules and regulations (IRR) for the Republic Act No. 12252, or the 99-year Investors’ Lease Act, marking a step towards the new regulation’s implementation next year.

“Our goal is to establish the Philippines as a top global investment destination,” Trade Secretary and BoI Chairman Ma. Cristina A. Roque said in a statement on Thursday.

“This signing provides the long-term security our investors need and proves that we are serious about creating a more competitive and business-friendly nation,” she added.

The IRR, which the BoI signed with the Land Registration Authority on Dec. 19, operationalizes the extension of lease periods for private land by foreign investors from 75 years to an aggregate of 99 years.

“By offering longer leasehold terms, the government aims to attract a steady flow of long-term capital, advanced technology, and global expertise,” the BoI said.

“Beyond extending lease durations, the IRR introduces vital administrative safeguards designed to protect both landowners and lessees,” it added.

In particular, the IRR requires annotating lease contracts on the land title, which is meant to make the lease binding to the public and provide an essential layer of legal protection.

“Additionally, the IRR simplifies the investor journey by providing a clear, step-by-step process for compliance and establishing specific timelines for government agencies to act on applications, thereby reducing bureaucratic friction,” it said.

In a social media post, the Bases Conversion and Development Authority (BCDA) welcomed the signing, noting that the implementation of the new regulation will help provide “more certainty for investors, better long-term planning, and more jobs, infrastructure, and growth across BCDA developments.”

The law, signed on Sept. 3, also gives investment promotion agencies the power to enforce commitments, the BCDA added.

The new regulatory framework is expected to take effect on Jan. 4, following its publication on Dec. 20. — Justine Irish D. Tabile

IMF sees PHL current account deficit narrowing

REUTERS

THE International Monetary Fund (IMF) expects the Philippine current account deficit to narrow gradually through 2030, driven by declining commodity prices and increased public and private savings.

In a report following its Article IV Consultation with the Philippines, the IMF maintained its forecast for the current account deficit this year at 3.8% of gross domestic product (GDP), but trimmed its projection for next year to 3.4% from 3.5%.

The IMF’s estimates exceed the Bangko Sentral ng Pilipinas (BSP) projections of 3.3% for 2025 and 2.9% for 2026.

“The current account deficit is expected to decline to 3.8% of GDP in 2025, supported by lower commodity prices,” it said.

The IMF expects the current account deficit to further narrow to 3.1% in 2027, 2.9% in 2028 and 2.7% in 2029 and 2030.

“It is projected to improve modestly over the medium term, driven by higher public and private saving, but higher investment will sustain the current account deficit through the medium term, while reforms to boost FDI (foreign direct investment) will help with its financing,” it added.

At the end of September, the current account deficit narrowed to $12.507 billion from $13.336 billion a year earlier.

This is equivalent to 3.6% of GDP, down from 4% in the same period last year.

The current account measures the trade in goods and services, as well as primary and secondary income. Primary income refers to flows of labor and financial resources between resident and nonresident institutional units, while secondary income accounts for transfers between the country and abroad, such as remittances from overseas Filipino workers.

Despite the projected narrowing of the current account deficit, the IMF noted that the Philippine external position remains weaker than expected.

“The authorities project a slightly faster decline in the current account deficit but broadly agree that the external position is weaker than levels implied by fundamentals and desirable policies,” it said.

The IMF continues to see the Philippines affected by geopolitical tensions and global trade uncertainty. 

In October, the central bank revised its current account projections, anticipating a wider deficit until next year amid a growing trade-in-goods deficit, weaker services receipts and subdued capital inflows due to global trade disruption.

The BSP expects the current account deficit to widen to $16.4 billion or 3.3% of GDP this year, and to $15.5 billion or 2.9% of GDP in 2026. — Katherine K. Chan

P20 rice program seen reaching 15M households by end of 2026

PHILIPPINE STAR/NOEL B. PABALATE

THE Department of Agriculture (DA) said it will scale up the P20-per-kilo rice program to serve 15 million households, or approximately 60 million beneficiaries, by the end of next year.

The “Benteng Bigas Meron Na!” program makes subsidized rice available to senior citizens, persons with disabilities and indigents. They may purchase up to 30 kilos of rice through Kadiwa outlets and other authorized stores.

The rice is sourced from the National Food Authority (NFA).

Agriculture Secretary Francisco P. Tiu Laurel, Jr. told reporters on Tuesday that the program’s expansion will begin in January with a launch in Pangasinan. He said major launches are also planned in eight provinces by February.

The program recently reached its 82nd province with the opening of P20 rice outlets in Maguindanao del Norte. As of December, the DA said it had opened 740 distribution points nationwide.

The DA said it aims to establish at least one outlet in each of the country’s more than 1,600 cities and municipalities, with the total number of outlets targeted at 3,000 by 2028, when the current administration steps down.

“There will be many distribution outlets. To achieve that, we need to open stores every few weeks,” Mr. Laurel said.

The DA said it aims to sell between 1.5 million and 1.8 million metric tons of subsidized rice next year.

Mr. Laurel said the program will be allocated a budget of P23 billion, consisting of P9 billion from the NFA, P10 billion from the Rice-for-All program, and P4 billion in contingency funds.

Meanwhile, the DA said it is working to address logistical and operational challenges, particularly in geographically isolated areas and locations far from NFA warehouses.

“The challenge is how to bring the rice to remote islands and remote areas, places without NFA warehouses,” Mr. Laurel said. “Support from local government units will be a big help. We will need to provide trucks and hire drivers and cashiers.” — Vonn Andrei E. Villamiel

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