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The tipping point

ANTI-GRAFT advocates converge at Luneta Park in Manila on Sept. 21 for the Baha sa Luneta Rally. — PHILIPPINE STAR/NOEL B. PABALATE

As the flood control telenovela drags on, each new revelation widens the circle of suspicion. The instinct is to rage; the wiser course is restraint. Protest, but peacefully. Organizers are already calling for a “louder” anti-corruption mobilization on Nov. 30. One can only hope the anger does not spill over.

Otherwise, the cause risks being discredited by those intent on making trouble. An incident like the container burning on Mendiola on Sept. 21 shows how a legitimate grievance can turn into a law-and-order problem. It is also how a reform movement can lose support from citizens wary of chaos.

The chief of the Armed Forces of the Philippines (AFP) has urged troops to uphold the code of conduct and ignore the political noise amid fresh coup rumors. He even confirmed being approached to mount a coup. His message is that soldiers should remain professional. To reciprocate, the public must keep protests peaceful as well.

In the Senate, Senator Ping Lacson has resigned as Blue Ribbon chair in the middle of the corruption probe, fueling speculation of leadership change again, even as the chamber insists it’s “stable.” Any attempted leadership shake-up before or after recess will be read through the prism of the flood control mess.

Catholic bishops have already warned that a leadership coup would only heighten suspicion of a cover-up. The calendar doesn’t help. The Senate adjourns this week and resumes on Nov. 10. A month may be too long for rumor to outpace facts. The status quo may not appease the madding crowd.

Destabilizers now hover at the edges of the crisis, intending to ride outrage for private gain. This is why the line between anger and violence must not be crossed. When turmoil is labeled an “imminent threat,” police lines harden, the military is put on standby, and a just cause is reduced to a security problem.

The burden is now squarely on the state to keep investigations credible, free of interference, and quickly moving toward publicly acceptable resolutions. Instability is cancer to an economy already breathing second-hand smoke from global conflicts. Investors price risk faster than courts produce verdicts.

Before the Senate’s Nov. 10 return, and well ahead of the Nov. 30 protest, there should be visible case movement. Citizens, for their part, should keep pressure high and protests peaceful. People must not conclude that the campaign is selective, or stalls at the edge of the real culprits.

Cooler heads, not unfettered adventurism, must prevail and keep the country in the right direction. There will be short-term political volatility, but institutional fracture remains low with the AFP signaling discipline and the Senate leadership projecting stability. Extra-constitutional change remains at bay.

That is, unless violence escalates or the ongoing probe begins to look like a political purge instead of a cleanup. Peace without progress will not hold. The cure is the same as the promise: strong action against the guilty, level-headedness in the streets, and reforms that outlast the news cycle.

Discontent rarely arises from a single trigger. It builds when multiple pressures converge: economic hardship, political distrust, and social anxiety feeding off one another until the atmosphere turns combustible. We must guard against this convergence of discontent.

With food inflation, families already grapple with shrinking grocery baskets. Transport woes compound the misery with commuters grinding through long lines and enduring bad service. More households face skipped meals and unpaid bills. Add to this the drag of global uncertainty.

Each is a stress point. Together, they create an undercurrent of grievance too powerful to ignore. But the economy alone does not explain the current mood. Political anger has also been supercharged by corruption scandals that name senators, congressmen, and Public Works officials.

When economic distress and political discontent intersect, the tipping point becomes closer. Protests are no longer just about one project or one scandal. They are about a system seen as exploitative, self-serving, and tone-deaf to the people’s struggles. Each rally, each viral exposé, adds heat to the tinder. Without careful leadership, the flame could spread.

We have seen convergence before. In 1972, President Ferdinand Marcos, Sr. declared martial law, citing bombings, insurgency, and political paralysis. But underneath the rhetoric was a society strained by inflation, student unrest, and elite feuds. Economic anxiety and political unrest led to an authoritarian “cure.”

In 1983, the assassination of Ninoy Aquino ignited a long fuse. By 1986, economic hardship, a debt crisis, unemployment, and bread-and-butter discontent met the fury of a stolen snap election. This convergence fueled People Power at EDSA. The armed forces fractured, and the dictatorship fell.

In 2001, President Joseph Estrada’s impeachment trial was aborted amidst public disgust at corruption. People went to EDSA once more. The Cabinet resigned. The business elite and Church called for his ouster. The military and police defected and shifted allegiance to the vice-president. Once the political establishment walked away, his presidency collapsed.

Today’s climate bears echoes of all three: economic strain and political unrest like 1972; economic hardship and political outrage like 1986; and disgust at corruption and frustration at elite impunity like 2001. The difference is that the armed forces remain disciplined, and the President himself exposed the anomalies.

The country cannot afford a repeat. Instability is poison to an economy already weakened. Investors flee uncertainty faster than they flee high interest rates. Ordinary workers suffer more than public officials accused. The nation pays in lost jobs, in higher prices, in slower growth.

The antidote is political will, evidenced by strong, credible action against the guilty, anchored in due process. No sacred cows, no selective justice. The guilty must be punished, but in a manner that strengthens, not undermines, institutions. The government must assure the public that anger is valid, but violence is self-defeating. Protest, yes. Pressure, yes. But always within the bounds of law.

Convergence may occur, as economic discontent and political rage feed one another. For now, the fire can still be contained, but only if the government matches bold words with visible action. Justice delivered firmly and fairly can cool tempers, restore faith, and turn a moment of peril into a chance for reform.

The threat of extra-constitutional regime change may be low, but it is not negligible. The convergence of economic distress and political anger is combustible, but still containable at this point. Leaders need to show will, transparency, and, most of all, restraint to keep to what is in the best interest of the country.

 

Marvin Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippine Press Council.

matort@yahoo.com

Siemens Healthineers to bring more helium-free MRI devices to PHL hospitals

SIEMENS-HEALTHINEERS.COM

By Beatriz Marie D. Cruz, Reporter

SIEMENS Healthineers, a Germany-based medical technology company, is looking to install more helium-free magnetic resonance imaging (MRI) devices to underserved hospitals in the Philippines next year.

“Looking ahead, additional installations of MRI systems powered with DryCool virtually helium-free technology are currently underway, with more planned through 2026,” Michael Schmermer, president and managing director of Siemens Healthineers in the Philippines, said in an e-mail.

The company is planning to roll out helium-free MRI systems in select provinces in Northern Luzon, Visayas, and Mindanao, he said.

“Several installations are in the pipeline, particularly in regions where access to advanced imaging remains limited due to geographic and infrastructural challenges,” Mr. Schmermer said.

The MAGNETOM Flow. Platform, the first helium-free MRI technology from Siemens Healthineers in the Philippines, uses artificial intelligence to provide enhanced diagnostic imaging in a shorter amount of time.

It is also powered by Siemens’ DryCool technology, reducing its dependence on helium, an increasingly scarce and costly natural source.

“The country’s archipelagic geography adds complexity to healthcare delivery, especially in transporting and maintaining conventional MRI systems that rely on helium and a stable power supply,” Mr. Schmermer said.

MAGNETOM Flow technologies are also designed with compact footprints and quench pipe-free architecture, helping simplify installation logistics and infrastructure requirements, he added.

Since last year, about 10 virtually helium-free MRI systems have been deployed in hospitals across the country.

The MAGNETOM Free.Star systems have been installed in hospitals in Benguet, Batanes, Aklan, and Davao del Norte, while the MAGNETOM Flow 1.5T (Tesla) are operational in hospitals in Mandaluyong and General Santos City.

Access to advanced imaging technologies like MRI remains a challenge in the Philippines, Mr. Schmermer said, citing high costs and infrastructure limitations, especially in many rural and remote areas underserved.

“With compact designs, reduced infrastructure requirements, and resilience to power interruptions, our systems are well-suited for healthcare facilities in geographically isolated and resource-constrained settings,” he said.

Pricing for Siemens Healthineers’ helium-free MRI systems vary depending on specific clinical and technological configurations, and site requirements, among others.

The rise of chronic illnesses such as cancer, neurological disorders, and cardiovascular diseases is also driving demand for advanced diagnostic imaging, Mr. Schmermer added.

Noncommunicable diseases like ischemic heart disease, neoplasms, and cerebrovascular disease, are the top causes of death among Filipinos last year, data from the Philippine Statistics Authority showed. This highlights the growing demand for accessible and reliable diagnostic tools in the country, Mr. Schmermer said.

“By enabling earlier diagnosis and improving patient outcomes, these efforts contribute to a more inclusive and equitable healthcare system,” he added.

TDF yields go down as benign inflation supports easing bets

BW FILE PHOTO

YIELDS on the Bangko Sentral ng Pilipinas’ (BSP) term deposits continued to edge down on Wednesday amid strong demand and on expectations of another rate cut as inflation remains benign.

Bids for the central bank’s term deposit facility (TDF) amounted to P140.077 billion, well above the P100 billion auctioned off and the P125.644 billion in bids for the same offer volume last week. The BSP fully awarded both tenors.

Broken down, the seven-day papers fetched P56.8 billion in bids, higher than the P50 billion placed on the auction block and the P53.122 billion seen for the same volume offered a week ago.

Banks asked for rates ranging from 5.03% to 5.08%, narrower than the 5% to 5.09% logged the previous week. This caused the weighted average accepted yield to slip by 0.44 basis point (bp) to 5.059% from 5.0634% previously.

Meanwhile, tenders for the 14-day papers hit P83.277 billion, well above the P50-billion offer and the P72.522 billion in demand for the same volume auctioned off last week.

Accepted yields were from 5.06% to 5.09%, a narrower band compared with the 4.98% to 5.1125% seen a week earlier. With this, the average rate dropped by 1.19 bps to 5.0799% from 5.0918%.

The BSP has not auctioned off 28-day term deposits for nearly five years to give way to its weekly offerings of securities with the same tenor.

Both the TDF and BSP bills are used by the central bank to mop up excess liquidity in the financial system and better guide market rates towards the policy rate.

“BSP TDF average auction yields were again slightly lower week on week after still relatively benign inflation of 1.7% in September 2025, again below the BSP’s inflation target of 2%-4% for the seventh straight month,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

This bolstered expectations of another 25-bp cut from the central bank at this week’s Monetary Board meeting or in December, he said.

Inflation picked up to 1.7% in September from 1.5% in August, the government reported on Tuesday. This was the fastest pace in six months or since 1.8% in March, but was within the BSP’s 1.5-2.3% forecast and below the 1.9% median estimate in a BusinessWorld poll of 12 analysts.

For the first nine months, inflation averaged 1.7%, matching the BSP’s forecast for the year and still below its 2-4% annual target.

The Monetary Board is holding its second to the last policy meeting for this year on Thursday (Oct. 9). Ten of the 16 analysts in a BusinessWorld poll expect the central bank to pause anew this week after it delivered three straight cuts, while the remaining six said it could make a fourth consecutive 25-bp reduction to help support domestic demand and boost the economy.

The central bank has lowered benchmark borrowing costs by a total of 150 bps since it kicked off its rate cut cycle in August 2024, with the policy rate now at 5%.

BSP Governor Eli M. Remolona, Jr. has left the door open to one more cut this year that could mark the end of this easing round.

Mr. Ricafort added that expectations that the Philippines would soon be included in JPMorgan Chase & Co.’s Government Bond Index for Emerging Markets (GBI-EM) series also helped drive term deposit yields lower.

The global bank last month placed Philippine bonds on “Index Watch Positive,” marking the final review stage for their inclusion.

The Philippines would have a weight of about 1% of the GBI-EM Global Diversified Index if included, according to the bank.

National Treasurer Sharon P. Almanza earlier said the government expects foreign fund inflows to rise by about one percentage point or around P100 billion if the country successfully reenters the index. — Katherine K. Chan

UK man pleads guilty in New York to $99-million wine fraud

STOCK PHOTO | Image by Wavebreakmedia_micro from Freepik

NEW YORK — A British man pleaded guilty on Tuesday in New York to involvement in a nearly $100-million fraud whose victims invested in loans meant for fictitious wealthy wine collectors whose wine also did not exist.

James Wellesley, 59, pleaded guilty to wire fraud conspiracy before US District Judge Pamela Chen in Brooklyn, court records show.

Mr. Wellesley, also known as Andrew Fuller, had pleaded not guilty to three charges including conspiracy in July. He remains jailed at Brooklyn’s Metropolitan Detention Center, after unsuccessfully fighting extradition from Britain.

A lawyer for Mr. Wellesley did not immediately respond to a request for comment.

According to his plea agreement, Mr. Wellesley could face 10 to 12-1/2 years in prison under recommended federal guidelines.

He also agreed to forfeit $1 million plus funds in more than two dozen bank accounts.

Co-defendant Stephen Burton, 61, who is also British, pleaded guilty in July to wire fraud conspiracy and money laundering conspiracy, and accepted a $26-million forfeiture order. He is also jailed in Brooklyn.

Prosecutors said Mr. Wellesley and Mr. Burton, posing as executives at London- and Hong Kong-registered Bordeaux Cellars, raised $99.4 million by promising loan investors they would receive regular interest payments from “high net worth” wine collectors.

The defendants allegedly claimed the loans were backed by an inventory of more than 25,000 bottles of wine, including from Domaine de la Romanee-Conti in Burgundy and Chateau Lafleur in Bordeaux.

Prosecutors said Bordeaux Cellars controlled far fewer bottles, and as few as 217, while the defendants used loan proceeds for personal expenses and to pay interest to some investors.

The scheme ran from June 2017 to February 2019, and collapsed when interest payments stopped, prosecutors said.

Mr. Burton’s sentencing is scheduled for Jan. 6, 2026, and Mr. Wellesley’s sentencing is on Feb. 3, court records show. — Reuters

First Gen to supply renewable energy to Mets Cold Storage

EDC HANDOUT

LOPEZ-LED First Gen Corp. has signed an agreement with Mets Cold Storage Services, Inc. (Mets) to supply renewable energy (RE) to the latter’s cold storage facility in Cagayan de Oro City.

In a media release on Wednesday, First Gen said the supply agreement covers up to 2,050 kilowatts to support the ongoing expansion of the facility, which currently has over 7,100 metric tons of cold storage capacity.

The geothermal power will be sourced from the Mt. Apo Geothermal Power Plant in Cotabato, owned and operated by Energy Development Corp., a subsidiary of First Gen.

“We are pleased to partner with First Gen to reduce the energy intensity of our cold storage operations. This move will reduce not just our energy cost but our carbon footprint as well, while providing stable power supply,” said Donna Robles, chief operating officer of Mets.

Established in 2010, Mets operates cold storage facilities in Cavite, Bulacan, Cebu, and Cagayan de Oro with over 100,000 pallet positions. The company offers various cold storage solutions, including air-conditioned storage, blast freezing, and toll processing.

“Cold storage is critical for ensuring safety and sanitation across the supply chain for food and even medicines. We are committed to partnering with Mets to ensure they can power their cold storage operations sustainably with a steady supply of RE,” said Arlene Sy-Soriano, assistant vice-president and head of sales and engagement at First Gen.

First Gen has a total geothermal capacity of 1,200 megawatts (MW). Its RE portfolio also includes hydro, wind, and solar projects with a combined installed capacity of over 400 MW.

In partnership with Prime Infrastructure Capital, Inc., First Gen also operates four gas-fired power plants with a total capacity of 2,017 MW. — Sheldeen Joy Talavera

The two years of fighting since Oct. 7 have transformed the Middle East

PALESTINIANS gather to receive food cooked by a charity kitchen in Khan Younis, Gaza Strip, in the midst of the Gaza-Israel conflict, on Dec. 1, 2024. — REUTERS/MAJDI FATHI/NURPHOTO

The morning of Oct. 7, 2023, set in process a series of events which have profoundly changed the Middle East.

At the beginning of that month, the region looked very different to today. Saudi Arabia appeared ready to normalize with Israel, having recently set aside longstanding differences with Iran.

With the normalization of relations between the region’s two preeminent military powers would come the possibility of curbing Iran’s influence. This, in turn, could bring peace to Yemen and Lebanon.

But thanks to the events of that day, this vision is in tatters. As the sun rose, Hamas fighters launched a brutal terror attack in southern Israel, killing 1,195 people and taking a further 251 hostages. The attack opened up a wound at the heart of the Israeli psyche, evoking memories of the Holocaust and of repeated terror attacks across the 2000s.

In the past two years, the destructive reverberations have been felt across the entire Middle East as Israeli forces have sought to assert unilateral and hegemonic dominance. Beyond Gaza, Israel has engaged in military strikes across the region, causing thousands of deaths and widespread destruction and sowing the seeds of division.

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In Lebanon, Israeli strikes on Beirut and across the south led to more than 3,100 deaths — including senior Hezbollah leaders such as Hassan Nasrallah. The Israel Defense Forces (IDF) launched a military campaign in southern Lebanon in October 2024, pushing Hezbollah fighters north of the Litani river. Though a ceasefire was reached on Nov. 26, Israel’s bombardment of Lebanon continues, with the Israeli government citing Hezbollah’s refusal to disarm.

With Hamas and Hezbollah on the ropes, Netanyahu’s attention turned to Iran. Given Israel’s longstanding view of the Islamic Republic as an imminent threat to Israel’s security, this is hardly surprising.

The so-called shadow war that had taken place between the two states across the previous decade erupted. The outbreak of open conflict between the two states on June 13, 2025 — since dubbed the 12-day war — had a devastating impact on the Iranian regime.

Netanyahu had called for the Iranian people to overthrow the Islamic Republic. But while many Iranians are unhappy with the regime, Israel’s strikes appeared to have the opposite effect as people rallied around the flag.

Hostilities culminated in bombing raids launched by the US on Iran’s nuclear installations. While the success of these raids has been open to question, the raids allowed the US president, Donald Trump, to claim a US victory.

He demanded an end to hostilities between Israel and Iran and Iran’s retaliation to the US strikes was confined to a carefully orchestrated attack on a US base in Qatar, which was telegraphed in advance and was more performative than escalatory.

Israel has also conducted regular strikes against the Iran-backed Houthi rebels in Yemen, which had targeted Israeli (and other countries’) shipping in the Red Sea. And since the fall of the Assad regime, the Israeli military has occupied large tracts of southern Syria, seizing the demilitarized buffer zone around the contested Golan Heights in violation of a 1974 treaty between the two countries.

More recently, Israel struck targets in Doha, Qatar, in an effort to assassinate senior Hamas leaders which ultimately failed. The strike prompted a united front from the Gulf monarchies who called for a real discussion about ending the war. With US officials furious at the Israeli strike on a major non-Nato ally, diplomats sensed an opportunity for a breakthrough.

PEACE PLAN
Donald Trump’s 20-point plan to enact a ceasefire has the potential to be an impressive feat of diplomacy, bringing together a wide range of disparate actors with a real chance of ending the fighting — despite its multiple flaws. But as a feat of peace building, it rings hollow.

The plan does not indicate how a Palestinian state will emerge. It does suggest that the Palestinian Authority will, in the right circumstances, play a role in the governance of Gaza — but this is something that Netanyahu has repeatedly rejected.

Instead, the Gaza International Transition Authority will resemble a mandate of the sort imposed by the League of Nations over a century ago. And even if Trump’s plan brings about a ceasefire and the release of the Israeli hostages, the contours of regional order have been dramatically affected.

Without a Palestinian state there can be no Saudi normalization with Israel. This is a point that Saudi crown prince, Mohammad bin Salman, has made abundantly clear.

Popular anger across the region will remain. The failure to secure a viable Palestinian state after the Abraham accords provoked anger and resentment among some. That feeling is now growing with the death and destruction meted out to people in Gaza.

If a ceasefire doesn’t emerge, the destruction of Gaza will continue at a pace which will continue to have a catastrophic impact across the Middle East. Israel will remain diplomatically isolated while its citizens will continue to live in fear of Houthi and Hezbollah rockets or attacks from what remains of Hamas, as well as having to deal with the memory of Oct. 7 for years to come.

All the while, Palestinians continue to die on a daily basis and there are still Israeli hostages (and in some cases bodies) waiting to be brought home. Gaza is devastated and rebuilding the enclave will take decades. And the so-called international rules-based order may never recover.

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Simon Mabon is a professor of International Relations at Lancaster University. He receives funding from Carnegie Corp. of New York and The Henry Luce Foundation.

Singapore vs Philippines in startup funding: lessons for fintech growth

AUSTIN DISTEL-UNSPLASH

By Joey Brillantes

THE FIRST HALF of 2025 laid bare the stark divergence in startup funding fortunes between Singapore and the Philippines, especially in the fintech sector. Singapore captured a dominating 92% share of Southeast Asia’s startup funding, attracting approximately $1.04 billion in financial technology (fintech) investments alone, while the Philippines garnered a fraction of that despite its growing digital economy. What lessons can the Philippines draw from Singapore’s success, and what concrete measures must it take to bridge this widening investment gap?

WHAT SINGAPORE IS DOING RIGHT
Singapore’s fintech ascendancy is no accident. It is the result of a mature, sophisticated ecosystem that blends strong government support, deep capital markets, world-class infrastructure, and regulatory foresight. The country’s focus on cultivating late-stage startups with solid fundamentals appeals to cautious investors seeking capital-efficient, scalable businesses. Areas like payments, cryptocurrency, and artificial intelligence (AI)/machine learning (ML) fintech verticals have attracted the bulk of this investment, supported by consistent regulatory clarity and institutional initiatives.

Furthermore, Singapore’s strategic push to become a regional hub for enterprise infrastructure startups has bolstered its ability to attract substantial capital inflows. The Monetary Authority of Singapore’s proactive regulatory sandboxes and digital banking licenses have nurtured innovation while ensuring investor confidence and consumer protection. The presence of numerous venture capital funds and global investors accelerates deal flow and follow-on funding.

WHAT THE PHILIPPINES IS MISSING
The Philippines, despite its rapid digitalization and vibrant startup culture, still lags due to a less mature investment ecosystem and regulatory uncertainties. While fintech remains the most active sector domestically, attracting significant deal flow, the funding quantum remains relatively small and fragmented. Challenges include limited late-stage funding options, less accessible venture capital, and regulatory frameworks that are evolving but still perceived as less predictable compared to Singapore.

Infrastructure gaps and lower institutional support for scaling startups also limit the Philippines’ ability to cultivate fintech firms that can compete regionally. The country’s fintech landscape is largely dominated by payments-focused startups, but it lacks sizable investments in emerging verticals like AI/ML or crypto that are gaining investor attention elsewhere.

Here are some steps the Philippines can take to level up:

1. Enhance regulatory clarity and innovation-friendly policies — The Bangko Sentral ng Pilipinas and other regulators must continue to develop clear, consistent fintech regulations, including improving sandbox initiatives that balance innovation with risk management. Simplifying licensing and compliance for fintech startups will reduce barriers to growth.

2. Expand late-stage funding channels — The Philippines should cultivate deeper pools of venture capital and private equity specifically oriented toward late-stage fintech investments to support startups in scaling confidently. Encouraging institutional investors and global funds to participate via incentives or matching schemes can increase deal size and valuation.

3. Strengthen startup infrastructure and ecosystem support — Building world-class innovation hubs, accelerator programs, and talent pipelines focused on fintech domains like AI, regulatory tech, and blockchain is key. The government and private sector partnerships can fund capacity building and encourage corporate-fintech collaboration.

4. Promote strategic partnerships and regional integration — Filipino fintechs should be encouraged to form cross-border alliances within ASEAN and beyond, tapping into larger markets and investor networks. ASEAN fintech collaboration frameworks supported by government agencies can facilitate such scaling efforts.

5. Focus on high-impact verticals — Beyond payments, Filipino fintech startups should diversify into emerging areas like digital lending, wealth tech, and cybersecurity solutions, aligning with global investor interests in AI-enabled financial services and sustainable fintech.

Singapore’s triumph in dominating Southeast Asia fintech funding in the first half of 2025 sends a clear message: strategic ecosystem building, investor confidence through transparency, and targeted innovation make all the difference. The Philippines, with its large population and increasing digital adoption, holds immense potential.

By addressing regulatory bottlenecks, expanding capital access, and intentionally investing in scalable fintech innovation, the country can elevate its position and attract the meaningful investments key to driving inclusive financial digital transformation.

 

Joey Brillantes is the founder and managing partner of public relations and digital marketing agency Integral Public Relations, Inc. The individuals, brands, nations, companies, organizations, agencies, and institutions mentioned in this commentary have no business relationship with his agency, nor are they competitors of its clients.

BSP to pause rate cut cycle this week as it seeks clearer economic picture

AN AERIAL VIEW shows the Ortigas business district in Pasig City, June 10, 2022. — REUTERS

THE BANGKO SENTRAL ng Pilipinas (BSP) could pause its easing cycle anew at this week’s meeting even as September inflation was below market expectations as it will likely want to see more data to assess the overall economic picture, analysts said.

However, risks to the country’s growth outlook due to the fragile global environment could lead to a cut at the Monetary Board’s December meeting.

“We think September inflation sets the stage for a quarter-point rate cut in 4Q 2025 to 4.75%,” Aris D. Dacanay, HSBC economist for Association of Southeast Asian Nations, said in an e-mailed note. “We think this cut will happen in December this year, and not the upcoming meeting on Thursday.”

“Though, admittedly, the downside surprise in inflation increases the risk that the BSP frontloads its rate cut, we still think the central bank would like to see more data on growth and rice prices before deciding to continue its easing cycle,” he said, adding that further policy easing is also possible next year, depending on the inflation picture.

Philippine headline inflation accelerated to 1.7% in September from 1.5% in August, the government reported on Tuesday.

This was the fastest clip since 1.8% in March but was below the median estimate of 1.9% in a BusinessWorld poll and within the central bank’s 1.5-2.3% forecast. It also marked the seventh straight month that inflation was below the BSP’s 2-4% annual target.

For the first nine months, inflation averaged at 1.7%, matching the central bank’s full-year forecast.

The BSP has cut rates by a total of 75 basis points (bps) so far this year, delivering three straight 25-bp reductions after a surprise pause in February due to uncertainties over the impact of the Trump administration’s trade policies on the economy.

It has now lowered benchmark borrowing costs by a total of 150 bps since kicking off this rate cut round in August 2024, with the policy rate now at 5%.

BSP Governor Eli M. Remolona, Jr. earlier said the current key rate is now at a “sweet spot” for both inflation and output, but one more reduction is possible within the year to support the economy if needed, which would likely mark the end of the rate cut cycle.

Citi Research likewise expects the central bank to pause on Thursday as it seeks clarity on the economic outlook.

“With regard to policy rates, our view is that growth concerns could eventually resurface, leading to a cut before the end of the year. However, as economic data is so far mixed, BSP will probably pause in the October meeting,” it said in a note.

It expects inflation to rise further and be within the 2-4% target band next year as rice deflation wears off.

Bank of the Philippine Islands Lead Economist Emilio S. Neri, Jr. said the BSP may take a more cautious stance as inflation is expected to quicken further in the near term.

“With inflation likely to pick up in the coming months, the pace of monetary easing may slow down. A more conservative approach is justified as cutting rates aggressively could leave the economy vulnerable to inflation shocks that might force a sharp policy reversal later on,” he said in a note.

He added that the BSP could still deliver one more cut this year, which would likely depend on the third-quarter gross domestic product data that will be released next month. He also sees space for further easing next year.

“The BSP may cut its rates further in 2026 if growth loses momentum, most likely in the first half before inflationary pressures build in the latter part of the year,” Mr. Neri said.

Deutsche Bank Research also said that the weakening economic outlook gives the central bank room for a 25-bp cut in December.

“Despite October’s policy pause, we believe BSP still has room for further easing as downside risks have not faded; we forecast a 25-bp rate cut in its December meeting,” it said in a report.

“Real interest rates are still elevated and the economy is at ‘slightly negative output gap over the near term,’ while government disbursements could slow amid its ongoing fiscal consolidation, and more recently, a corruption probe,” it added, quoting the BSP’s assessment of the economy in its August Monetary Policy report.

Meanwhile, Pantheon Macroeconomics trimmed its inflation estimate for this year to 1.7% from 1.8% and to 2.4% from 3% previously for 2026.

“Crucially, food prices are heading into next year with little to no real momentum,” it said in a report. “Retail rice prices have yet to show any upside, in spite of the temporary suspension of imports that began last month, suggesting ample supply domestically.” — Katherine K. Chan

France trims wine output estimate after summer heatwave

STOCK PHOTO | Image by Ededchechine from Freepik

PARIS — France’s farm ministry lowered its projection for this year’s wine output on Tuesday to 36 million hectoliters, down from the 37.4 million forecast last month and 1% below last year’s harvest, citing a heatwave in August.

The revised forecast, based on the latest harvest results, was 16% below the five-year average.

“The grape harvest, now almost complete, confirms the adverse effects of the August heatwave on production potential in most regions,” the ministry said.

The hot and dry weather reduced production potential, accelerating grape ripening while limiting their growth, which late September rains failed to offset, the ministry said.

France is the world’s second-largest wine producer after Italy and the first exporter by value. Its wine output has been hit by adverse weather in the last two years while surplus management policies have prompted winemakers to uproot a portion of their vineyards.

Champagne production is expected to rise 14% year on year to 2.1 million hectoliters, though it remains 10% below the five-year average. Producers said the harvest showed good quality.

In contrast, Charentes, a key area for Cognac production, is expected to see output fall 2% compared to last year, putting it 23% below average.

Bordeaux and Languedoc-Roussillon, both major wine regions, are forecast to see output declines of 2% and 9% respectively from last year, remaining well below their five-year averages.

Burgundy was better off, but neighboring Beaujolais saw vineyard yields fall to their lowest level in at least 35 years due to bad weather and fungal disease.

The Loire Valley, meanwhile, is expected to increase production by 15% to 2.4 million hectoliters, narrowing the gap with its five-year average.

Conversely, output in Alsace is set to fall 9% year on year, 17% below its average.

A hectoliter is the equivalent of 100 liters, or 133 standard wine bottles. — Reuters

SM Hotels eyes composting 80% of food waste by 2040

A BUFFET SPREAD at Taal Vista Hotel reminds diners to ‘Take only what you can eat,’ part of SMHCC’s Plate for the Planet initiative that reduces food waste and promotes sustainable dining practices. — SM HOTELS AND CONVENTION CORP.

SM HOTELS and Conventions Corp. (SMHCC), the hospitality arm of property developer SM Prime Holdings, Inc., aims to compost 80% of its food waste by 2040 as part of its push for sustainable dining across its properties.

“[The] strategy also includes expanding partnerships with local producers and MSMEs (micro, small, and medium enterprises) to promote inclusive sourcing and integrating more local produce into menus,” it said in a statement on Wednesday.

The goal aligns with the company’s “Plate for the Planet” initiative, which incorporates circular economy principles into daily hotel operations.

The program tracks food use from sourcing to serving through green procurement, support for MSMEs and local farmers, showcasing heritage and regional cuisine, encouraging responsible consumption, reducing plastic use, and managing food waste efficiently.

Since the initiative’s launch in 2019, SMHCC has diverted 323 tons of food waste — equivalent to the amount of waste produced by more than 500 Filipino households in a year, the company said.

The program was first implemented at Pico Sands Hotel in Batangas and Taal Vista Hotel in Cavite.

It now operates across 10 hotel properties and three convention centers.

SMHCC sites participating in the program include Taal Vista Hotel, Pico de Loro Beach and Country Club, Pico Sands Hotel, Radisson Blu Cebu, Conrad Manila, Park Inn by Radisson branches in North EDSA, Clark, Davao, Iloilo, and Bacolod, as well as Lanson Place Mall of Asia, SMX Convention Center Manila, SMX Aura, and Megatrade Hall.

The company said SMHCC kitchens practice accurate forecasting, mindful production, and cooking techniques to reduce waste and maintain food freshness.

It added that food waste is converted into soil-enriching material used to grow vegetables, herbs, and fruits.

In the second quarter, SM Prime’s net income rose by 10% to P12.8 billion. Hotels and convention centers accounted for 3% of total income, contributing P635 million, up 20% from P527 million, driven by strong room bookings and higher demand from the meetings, incentives, conferences, and exhibitions (MICE) market.

SM Prime shares closed flat at P22.80 apiece on Wednesday. — Beatriz Marie D. Cruz

Philippine Labor Force Situation

THE PHILIPPINES’ unemployment rate dropped to 3.9% in August, driven by renewed hiring in the agriculture and construction sectors, the Philippine Statistics Authority (PSA) reported on Wednesday. Read the full story.

Philippine Labor Force Situation

Background music

FREEPIK

By Tony Samson

WHATEVER happened to background music in public places? Does one even notice it in the malls or restaurants? (Is piped-in music still there?) When waiting for the order to be served, can you notice French songs being played in this Chinese restaurant? Of course, when the sound is too loud, elderly customers ask for it to be turned down — I can’t hear myself think.

Dentists’ waiting rooms and elevators used to feature piped-in music of soothing instrumental renditions of popular tunes. The familiar melodies were intended to lull passengers through an elevator ride or distract patients from the muffled drilling sound of root canal work inside the dentist’s clinic while waiting for their turn. (Is that melody from “Camelot”?)

Movies feature background music to set the mood of a scene. Horror movies employ the crashing organ sound, or the squeaky violin when the sleeping child-sized doll suddenly opens its eyes. Of course, movie musicals present the songs front and center.

Does life also provide background music for the highs and lows of getting through the day?

Neither happy moments nor personal crises merit any musical accompaniment. Can you hear jaunty rock music in the background when you find out a newly subscribed IPO just took a dive on its second day of trading? What about a drumroll when an acquaintance from the past pops up at a mall — Are you still working?

Is a karaoke revelry considered part of life’s musical interludes? Maybe less popular now than they used to be, karaoke parties still pop up as bonding moments. One can rub elbows (or other bodily parts) with a seatmate while belting a song. A loud rendition of that favorite karaoke piece “My Way” can accompany a milestone in life. (But then again, too few to mention.)

Music keeps us company through the day. It’s not just those using phones and wireless ear plugs as permanent bodily attachments that enjoy melodies through streaming. (Are you texting me?)

Certain establishments have common sounds. The spas may have conspired together on the background cubicle sound in their premises that should be as liberally spread as oil on one’s back.

Is there a streaming app employed by massage parlors? (We also do foot massage.) The featured sounds have a slow beat, featuring a single instrument, maybe a nose flute or a two-stringed harpsichord. Mixed in with the tuneless melodies are forest sounds of raindrops hitting large leaves, cicadas crying for understanding, a breeze passing through bamboo poles, and the mating sounds of humpbacked whales in heat. It’s supposed to be enjoyed with both eyes closed. (Go a little lower please.)

Tuneless audio or “white noise” is unobtrusive. Intimate dining places can employ such background sounds to allow conversation to flow freely. The quiet clatter of plates and eating utensils have also been adopted by dining places that feature “degustation” meals — don’t ask for the menu. Small servings of whatever is on hand are serially offered, usually with wine. (These are fisheyes marinated in olive oil.)

Also known as ambient music, this hybrid of jazz, electronic, acoustic, new age, and percussion is not intended to be hummed. It is interchangeable and invites many levels of listening. This may be used by big spaces like theater lobbies featuring a fireside chat to take place in 15 minutes.

Offices that once featured piped-in music to increase productivity in assembling computer chips seem to now avoid any kind of melodic interruption. If the executives want to accompany their keystrokes in the computer, they must stream their own tunes that do not intrude on other cubicles. That’s what the headphones are for. It is not unusual to see heads keeping time to some unheard beat.

Sleep doctors (as differentiated from sleepy ones) may suggest that those suffering from sleep apnea or insomnia avail themselves of white noise machines to lull them to a “Rapid Eye Movement” (REM) type of deep slumber. Such murmuring sounds may include the quiet snoring of a spouse beside the insomniac. Dreams will occur even though one forgets them upon waking.

Perhaps the background music of life should be natural sounds like wind across the trees, as well as human conversation. At night, it’s the hum of the air-conditioning, the buzz of a mosquito, and the alarm clock ringing. Or just a short gasp…followed by silence

 

Tony Samson is chairman and CEO of TOUCH xda

ar.samson@yahoo.com