Building resilience in the financial sector

March 23, 2025 | 7:38 pm

First of two parts

IN BRIEF:

• Technology dependence in the financial sector is increasing the number of potential failure points due to connections with unregulated third parties.

• Financial institutions must proactively enhance their operational resilience and risk management practices.

• Firms should leverage innovative technologies to improve their ESG reporting processes and enhance their oversight and understanding of risks within less transparent markets, networks and ecosystems.

The financial sector’s dependence on technology is increasing the number of potential failure points due to connections with unregulated third parties. These vulnerabilities can be exploited by malicious actors, or as demonstrated by a significant IT outage in July 2024, can arise even from non-malicious causes.

This article explores more detailed insights about building resilience against vulnerabilities and external threats based on the 2025 EY Global Financial Services Regulatory Outlook. It is the last article in a series that discusses the salient concerns of the banking and financial industry in 2025 and into the future.

OPERATIONAL RESILIENCE
Recent incidents, such as ongoing conflicts, natural disasters, and a global IT failure, have heightened regulator attention on firms’ capacity to withstand significant operational disruptions. With various jurisdictions implementing new standards aimed at enhancing firm’s operational risk management, financial institutions must understand their end-to-end service delivery process and identify how it could be interrupted.

Regulators are particularly concerned about additional risks posed by the financial sector’s increasing dependence on third-party technology providers, including vendor and cyber risks. Their scrutiny has intensified since the disruption in July 2024. Although the effects were swiftly managed, this event sparked renewed interest in forthcoming regulations aimed at addressing risks that arise outside the regulated environment.

For example, the Basel Committee previously issued a consultative document proposing principles for the sound management of third-party risk, a set of unified standards that advocate for a more stringent approach to address banks’ increasing reliance on third-party service providers amidst the ongoing digital transformation of banks and rapid growth in financial technology. The proposal seeks to establish a common baseline for banks and supervisors for the risk management of third-party arrangements while simultaneously allowing the required flexibility to consider evolving practices and regulatory frameworks across jurisdictions.

In Europe, both UK and EU regulators are expanding their oversight to encompass the provision of essential services to the financial sector, aiming to lessen the potential impact of disruptions or failures by third-party service providers on financial stability and implementing measures to enhance cyber resilience. Financial institutions governed by the Digital Operational Resilience Act (DORA) must ensure they can prevent, withstand, and recover from significant information and communication technologies or ICT-related disruptions.

DORA’s objective is to reduce the risks associated with digital transformation through uniform rules on operational resilience. It aims to mitigate risks posed by growing vulnerabilities due to the increasing interconnectivity of the financial sector, address the shift in risk profile because of the increase in financial services digital adoption, and address the third-party reliance underpinning the stability of the financial sector. It casts a wide net, covering traditional institutions such as credit and payment firms and insurers, electronic money institutions, and crypto-asset providers and issuers. Financial information managers, data information service providers, credit rating agencies and critical ICT third-party providers — specifically digital and data service providers, software, data analytics services, and data centers — are also in scope under DORA. Further, new cyber regulations took effect in the EU in October 2024 in the form of the Network and Information Security (NIS2) Directive, a unified legal framework to promote cybersecurity in 18 critical sectors.

In the UK, the Bank of England, the Prudential Regulation Authority (PRA), and the Financial Conduct Authority (FCA) have finalized their rules and supervisory expectations for the critical third-party regime (CTP). This regime, which will apply to third parties designated as CTPs by the Treasury, will manage financial stability risks stemming from a limited number of technology providers that serve multiple financial institutions. The Treasury is the British government’s economic and finance ministry responsible for managing public spending, setting economic policy, and ensuring the sustainability of British finances.

According to the 2024 EY Global Risk Management Survey, risk management organizations continue to prioritize operational resilience, with Chief Risk Officers (CROs) expecting it to be the second most significant issue behind only cybersecurity. As much as 53% of CRO respondents from the Asia-Pacific region consider operational resilience to be a notable bigger concern. Board and management focus is now driving the prioritization of operational resilience in all areas of the business — data, third party, cyber, critical business services framework/business continuity, technology/disaster recovery, testing, measurement and monitoring, crisis and incident management, and workforce. The exception is governance and oversight, which is primarily driven by regulatory and supervisory focus.

The Bangko Sentral ng Pilipinas (BSP) also issued Circular No. 1203 Guidelines on Operational Resilience, which aim to promote and strengthen the ability of BSP-supervised financial institutions to manage and mitigate the impact of disruptions, particularly on their critical operations. The guidelines require covered institutions to integrate operational resilience with existing governance and related risk management processes and already consider similar principles from the Basel Committee.

Financial institutions should revisit business continuity arrangements to prepare for intensifying supervisory scrutiny, ensuring that organizations are ready to demonstrate their resilience in the face of disruptions. Regulators expect the incorporation of technology disruption scenarios in stress testing exercises. By anticipating these scenarios, organizations can better understand their vulnerabilities and strengthen their response strategies. Firms should conduct a thorough assessment of risks within their end-to-end service delivery processes, identifying potential exposures from third-party providers.

The second part of this article will discuss the growing emphasis on nature-related risks and the need for firms to understand these implications for their business strategies, while also addressing the rise of non-bank financial institutions (NBFIs) and the associated regulatory challenges.

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

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

PHL told to use visit of top US defense official to seal equipment purchase

March 23, 2025 | 6:49 pm

Balikatan_2019 — DVIDS/ LANCE CPL. ISAIAH CAMPBELL

By Adrian H. Halili, Reporter

THE PHILIPPINE government should use the upcoming visit of the US’ top defense official to push the purchase of new military equipment and assets, political analysts said as the weekend.

Both countries should “use this opportunity to continue talking about purchasing new military assets to help us with efforts to upgrade our military capabilities,” Arjan P. Aguirre, who teaches political science at the Ateneo de Manila University, said in a Facebook Messenger chat.

At the weekend, the US Embassy in Manila said US Defense Secretary Peter Brian Hegseth would visit Manila on March 28 to 29 for a meeting with Philippine President Ferdinand R. Marcos, Jr. and Defense Secretary Gilberto C. Teodoro, Jr.

“Secretary Hegseth’s trip comes as the United States builds on unprecedented cooperation with like-minded countries to strengthen regional security,” it said in a statement.

It said the meeting seeks to advance security objectives with Philippine leaders and meet with US and Philippine forces. Mr. Hegseth will also visit Hawaii, Guam and Japan.

“Hegseth’s visit demonstrates US interests to sustain US alliance with the Philippines under Trump 2,” Rommel C. Banlaoi, chairman of the Philippine Institute for Peace, Violence and Terrorism Research, said in a Viber message.

“It remains to be seen whether this visit will elevate the US-Philippine alliance to a higher plane under Trump,” he added.

The US should focus on its security and defense agreement with the Philippines, Chester B. Cabalza, founding president of Manila-based think tank International Development and Security Cooperation, said via Messenger chat.

“Their security umbrella to the region should not turn sour as with what happened to their allies in Europe,” he added.

US President Donald J. Trump, who started his second term on Jan. 20, said European nations should spend more on their own defense and avoid relying on the US through the North Atlantic Treaty Organization.

Mr. Cabalza said the US defense chief’s visit signifies a renewed defense commitment to the Philippines under the Trump government.

Mr. Aguirre said he expects the US envoy’s visit to lead to “clear assurances that the US will still honor or perhaps never change much of its policies on the Philippines especially when it comes to military partnership and assistance.”

The Philippines has a visiting forces agreement with the US, Japan and Australia. The country has been seeking more foreign defense deals with countries like the US, Japan and Canada amid increasing tensions with China.

Manila and Beijing have repeatedly clashed in the South China Sea, with both sides accusing each other of raising tensions.

A United Nations-backed tribunal based in The Hague in 2016 voided China’s claims to more than 80% of the waterway, for being illegal.

The South China Sea is a vital waterway for more than $3 trillion of annual ship-borne commerce. Aside from China and Philippines, Brunei, Indonesia, Malaysia and Vietnam also claim parts of the sea.

Mr. Cabalza said the Marcos government finalize the purchase of new warplanes and secure potential deals to improve equipment of the Philippine Navy and Philippine Cost Guard.

Mr. Teodoro last year said the country was mulling the purchase of 40 F-16 fighter jets from the US to for the Armed Forces of the Philippines.

The Philippines has allotted about P35 billion for the modernization of the military over the next decade as it tries to counter Chinese aggression in the region.

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

House prosecutor pushes VP Sara’s impeachment trial

March 23, 2025 | 6:46 pm

THE SENATE should immediately start Vice-President (VP) Sara Duterte-Carpio’s impeachment trial to safeguard the integrity of proceedings and prevent potential interference that could compromise the trial, a congressman said on Sunday.

Immediately starting Ms. Duterte’s impeachment trial would also help preserve the Philippine government’s integrity and help maintain public trust in its institutions, House of Representatives Minority Leader and Party-list Rep. Marcelino C. Libanan said in a statement.

“The longer an impeachable official stays in power, the greater the risk of obstruction — whether through intimidation of witnesses, manipulation of the system, or other means to evade accountability,” Mr. Libanan, a member of the House prosecution panel for Ms. Duterte’s impeachment trial, said.

“If an official is unfit for office, their continued stay can weaken the legitimacy of the institution they serve,” he added.

The House impeached the Vice-President on Feb. 5, alleging secret fund misuse, unexplained wealth, acts of destabilization and plotting the assassination of President Ferdinand R. Marcos, Jr. and his family. Ms. Duterte has denied any wrongdoing.

The impeachment complaint was filed and signed by more than 200 congressmen, more than the one-third legal requirement before it could be sent to the Senate.

The Senate plans to present the articles of impeachment and approve the revised impeachment rules once it reconvenes for a two-week session in June.

Convening the impeachment court immediately would also deter public officials from misconduct, Mr. Libanan said. “Taking swift action sends a strong message that wrongdoing will not be tolerated and will be met with decisive consequences.”

“If an official is abusing their power, breaking the law, or acting against the public interest, allowing them to remain in office could lead to greater damage.”

Under the 1987 Constitution, Impeachable offenses include “culpable violation of the Constitution, treason, bribery, graft and corruption, other high crimes or betrayal of public trust.” — Kenneth Christiane L. Basilio

ICC trial unlikely to affect investor sentiment

March 23, 2025 | 6:45 pm

By John Victor D. Ordoñez and Chloe Mari A. Hufana, Reporters

FORMER President Rodrigo R. Duterte’s looming trial before the International Criminal Court (ICC) in The Hague is unlikely to affect foreign investor engagement and could even reassure them of the Marcos government’s long-term commitment to the rule of law, according to economists.

“If anything, the arrest of former President Duterte on the strength of an ICC arrest warrant may be reassuring to foreign investors as high-profile adherence to the rule of law,” Jose A. Africa, executive director at think tank IBON Foundation, said in a Viber message.

“The arrest can send a signal that the Philippines still chooses to follow a rules-based liberal order amid the blitzkrieg against it by the US under the Trump administration,” he added.

Presidential Communications Office Undersecretary Clarissa A. Castro last week said the government is not worried about the political squabble between the Marcos and Duterte clans, saying it would not affect state engagement with foreign investors.

Mr. Duterte, who sat as president from 2016 to 2022, was arrested on March 11 in Manila, marking the biggest step yet in the ICC’s probe of his alleged crimes against humanity in connection with his anti-illegal drug crackdown that killed thousands and drew condemnation around the world.

The Hague-based tribunal has been investigating the firebrand leader for crimes he allegedly committed when he was Davao City mayor and during the first three years of his government, when the Philippines was still a party to the international tribunal.

“Marcos has checkmated the Dutertes with the pivot away from China to the United States, the isolation of the Dutertes through an alliance with human rights groups to make Duterte accountable for the drug war deaths, therefore instability is not in the cards,” Calixto V. Chikiamco, president of the Foundation for Economic Freedom, said in a Viber message.

He said investor sentiment would continue to be driven by the government’s openness to investment, the quality of infrastructure and tax policies.

Approved foreign investments in the country fell 38.9% to P543.62 billion last year from a year earlier, according to the Philippine Statistics Authority (PSA). This was the steepest decline in four years.

“There are many other much more meaningful factors affecting foreign investor engagement today — the radical shifts in US trade and investment policy and their repercussions as other countries react being the most prominent, aside from other geopolitical concerns,” Mr. Africa said.

Finance Secretary Ralph G. Recto earlier said trade and investment ties between the Philippines and the US would remain amid the Trump administration’s tariff threats.

The Philippines’ semiconductor industry could face lower demand if Mr. Trump pushes through with a plan to impose 25% tariffs on semiconductor imports.

Washington was the top Philippine export destination last year at $12.12 billion or 16.6% of total exports.

“The government should be firm, show a commitment to accountability and long-term stability and not be swayed by any backlash from Duterte supporters,” Mr. Africa said.

Meanwhile, Mr. Duterte’s arrest and prosecution should bolster the country’s free trade negotiations with the European Union (EU), Josue Raphael J. Cortez, a diplomacy lecturer at De La Salle-College of St. Benilde in Manila, said in a Facebook Messenger chat.

“The EU as a normative power is very much inclined to ensure that the agreements it forges with like-minded nations contain provisions aimed at championing the norms and values it wishes to promote,” he pointed out. “This includes human rights and the rule of law, as well as climate-related norms.”

Failure to uphold international commitments could lead to the termination of these partnerships, he added.

“The EU is among our top trading partners, ranking fourth in the roster in 2023,” Mr. Cortez said. “Maintaining and propelling our ties with it can generate positive effects both in the political security and economic aspects.

Hansley A. Juliano, who teaches political science at the Ateneo de Manila University, said Mr. Duterte’s arrest has polarized Filipinos and revitalized support for the maverick leader.

“It helped reenergize the Duterte base, at least for a while,” he said via Messenger chat. “It further showed that the disinformation networks have not been countered. There is still much work to do to rehabilitate people who have become vulnerable to it.”

New DICT chief urged to boost data breach management, digital infra

March 23, 2025 | 6:44 pm

Henry-Aguda — HENRY RHOEL R. AGUDA — FACEBOOK.COM/PCOGOVPH

By John Victor D. Ordoñez, Reporter

NEWLY appointed Department of Information and Communications Technology (DICT) Secretary Henry Rhoel R. Aguda should prioritize boosting state transparency in handling data breaches affecting government agencies, according to a network of digital advocates.

President Ferdinand R. Marcos, Jr. last week named the former UnionDigital Bank president and chief executive officer as the agency’s new secretary to replace Ivan John E. Uy, who did not cite any reason for his resignation.

“We hope his leadership will bring meaningful reforms, particularly in strengthening data privacy and cybersecurity, addressing transparency issues in handling data breaches, and ensuring better public engagement in crafting digital policies,” Ronald B. Gustilo, national campaigner for the Digital Pinoys group, told BusinessWorld in a Viber message.

“We urge Secretary Aguda to prioritize institutionalizing digital literacy programs to protect Filipinos from misinformation and online fraud.”

Local organizations suffered about $1 million in losses in 2023 due to cybersecurity incidents, according to connectivity cloud company Cloudflare, Inc.

In a separate report, consulting firm Frost & Sullivan said the Philippines could sustain up to P200 billion in economic losses per year due to cybercrime.

Mr. Gustilo also called on the new DICT chief to work on expanding digital infrastructure and reliable internet access to underserved and far-flung areas in the country.

The Private Sector Advisory Council’s (PSAC) digital infrastructure section, which Mr. Aguda led prior to his appointment, earlier pushed for the upgrade of digital infrastructure in far-flung areas to ensure access to reliable internet.

PSAC also asked for more artificial intelligence upskilling programs to ensure Filipinos can keep up with new tech.

They also proposed rolling out a subsidized subscriber identity module (SIM) card program, JuanSim ng Bayan, to give poor Filipinos access to phone services and internet connectivity. The council plans to deploy the sim cards to 510 areas by the end of the year.

Former DICT Secretary Uy earlier said that the government is prioritizing a bill that seeks to boost Philippine cybersecurity to strengthen defenses against hackers ahead of the May midterm elections.

The DICT has also earmarked some P7.5 billion, under the 2025 spending plan, to roll out its free public wireless internet access program in far-flung areas and to ensure schools can conduct hybrid-learning setups.

A 2022 report by the World Bank showed that only 33% of Philippine households have access to fixed broadband, while 70% of the population have an active mobile broadband subscription.

The cost of broadband internet remains higher in the Philippines than in neighboring countries, with the annual charge for fixed broadband equivalent to 11% of per capita gross national income.

“Digital Pinoys looks forward to working with him in advancing the rights of digital consumers and promoting a safer, more inclusive digital environment,” Mr. Gustilo said.

Analysts push for system to oust politicians over broken promises

March 23, 2025 | 6:43 pm

election-voters — PHILIPPINE STAR/EDD GUMBAN

By Kenneth Christiane L. Basilio, Reporter

FILIPINOS should have the option to remove politicians to hold them accountable for failing to deliver campaign promises, political analysts said, warning that inability to fulfill their election commitment could undermine progress.

Public officials falling short of their election commitments should be removed via a plebiscite between election cycles to make them accountable, Anthony Lawrence A. Borja, an associate political science professor at the De La Salle University, said in a Facebook Messenger chat.

“An immediate recall through plebiscite, wherein elected officials deemed as incapable of fulfilling their promises are removed through a vote in between regular elections,” he said, adding that there should be a public “checklist” of candidates’ promises to inform voters.

“The logic for both is simple. Elections without accountability means nothing more but a license for failure,” he added.

Philippine elections often hinge on lofty promises to secure votes, but the real contest lies in candidates building name recognition, with policy agenda taking a backseat.

The Southeast Asian nation is headed towards another election in May, when 69.6 million Filipinos would vote for more than 300 congressional seats, 12 spots of the 24-seat Senate and thousands of local posts.

“Campaign promises are used by candidates to make themselves appealing to the voters,” Dennis C. Coronacion, who heads the Political Science department of the University of Santo Tomas, said in a Facebook chat.

Non-incumbent candidates typically campaign on pledges to disrupt the status quo, while incumbents often appeal to voters with assurances of stability, he said.

“Campaign promises usually depend on [whether] it’s for continuity, such as the continuation of aid and benefits, or for change,” Hansley A. Juliano, who teaches political science at the Ateneo de Manila University, said via Facebook chat.

Local leaders are more susceptible to grievances from their voters compared to national politicians, Mr. Borja said.

“Local politicians are way closer to their constituents making their activities… more observable,” he said.

Candidates also make election commitments that could appeal to the “partisan tendencies” of voters, he added. “Citizens are more likely to excuse failed promises on public goods and services than those appealing to tribal and partisan loyalties.”

Mr. Coronacion said it’s easy for politicians to renege on their campaign promises as there are no Philippine laws making them accountable for not delivering on them.

Enacting a law that would pave the way for the removal of officials failing to deliver on their campaign pledges is also unlikely as there is little to no chance of it being signed, Mr. Borja said.

“Although there are now laws that can make our politicians accountable for failure to deliver their campaign promises, we can still make them accountable through elections,” Mr. Coronacion said. “It’s up to us whether we will continue to believe in their promises.”

The media and civil society groups should tightly monitor the promises made by candidates, Mr. Juliano said. “This is the best means of keeping them accountable.”

NLEX to close two lanes in Marilao

March 23, 2025 | 6:42 pm

NLEX-vehicles — PHILIPPINE STAR/MIGUEL DE GUZMAN

NLEX CORP., a unit of Metro Pacific Tollways Corp. (MPTC), said it is set to close two lanes at the northbound segment of the Marilao Interchange to expedite its ongoing repair.

In an advisory, NLEX said that portions underneath the Marilao Interchange bridge will be temporarily closed for safety repair work from March 24 until March 28, at 11 p.m.

It said two lanes will be passable for motorists while zipper lanes will be opened in the southbound direction.

To recall, the Department of Transportation (DoTr) has asked NLEX to waive toll fees at the affected area of the Balintawak to Marilao segment after the Marilao Interchange bridge was struck by an 18-wheeler truck on March 19.

“The assessment revealed that two of the bridge girders sustained severe damage from the impact. These girders have been temporarily supported for safety, but they will need to be completely replaced. We expect the necessary repairs to be completed within two weeks,” NLEX said in a statement.

On Friday, NLEX said it is “acknowledging” the Dotr’s request for relief to compensate affected motorists due to heavy traffic at the area while repair works are ongoing. The company said it is committed to finishing the repairs within this month.

The Toll Regulatory Board also asked NLEX to explain why it should not impose penalties against the company for allowing a truck with excessive vertical clearance to enter the toll plaza, damaging the bridge.

MPTC is the tollways unit of Metro Pacific Investments Corp. (MPIC), one of the three key Philippine subsidiaries of Hong Kong-based First Pacific Co. Ltd., alongside Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., holds a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose

BARMM gov’t grants Ramadan bonus

March 23, 2025 | 6:41 pm

COTABATO CITY — Thousands of employees in ministries and support agencies in the Bangsamoro government will each receive a P10,000 Ramadan bonus, regional officials announced on Sunday.

Newly appointed Chief Minister of the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) Abdulrauf A. Macacua had signed an executive order last Thursday, ordering the release of a P10,000 Ramadan bonus to each of all employees of ministries among other government agencies.

Mr. Macacua and other ranking BARMM officials separately told reporters on Sunday that the Ramadan bonus will cover even contractual and job order personnel of the regional government.

There are thousands of BARMM employees in the regional capital in Cotabato City and in the provinces of Maguindanao del Sur, Maguindanao del Norte, Lanao del Sur, Basilan and Tawi-Tawi and in the cities of Lamitan and Marawi.

Muslims fast from dawn to dusk during Ramadan both as a religious obligation and as reparation for wrongdoings. Ramadan, which lasts for one lunar cycle is expected to end next week.

The Eid’l Fitr, which marks the end of the month-long fasting season, is an important religious holiday among Muslims. — John Felix M. Unson

China prepared for greater shocks as US tariffs loom

March 23, 2025 | 6:23 pm

CHINESE PREMIER Li Qiang said the country is prepared for “shocks that exceed expectations” as the world braces for US President Donald J. Trump to announce more tariffs on its trading partners next month.

Countries should open up markets in the face of growing economic fragmentation, Mr. Li told a gathering of global business leaders and visiting Republican Senator Steve Daines at the start of the China Development Forum in Beijing on Sunday.

“Instability and uncertainty are on the upswing,” Mr. Li said. “At this time, I think it is even more important for each of our countries to open up markets more, and for all of our businesses to share their resources more.”

Top executives including Apple, Inc.’s Tim Cook, Qualcomm, Inc.’s Cristiano Amon, Pfizer, Inc.’s Albert Bourla and Saudi Aramco’s Amin Nasser will attend the two-day conference. Bloomberg News earlier reported that plans were being made for corporate titans to meet Chinese President Xi Jinping on March 28, citing people familiar with the matter.

Mr. Daines, a member of the Foreign Relations Committee, met with Vice-Premier He Lifeng on Saturday, a rare public exchange between US and Chinese officials since Mr. Trump returned to the White House.

The premier also reiterated a central bank pledge that policy makers will cut interest rates and the reserve requirement ratio when “timely,” and vowed to offer more support when necessary to ensure the economy runs smoothly.

Mr. Li’s remarks comes as China renews efforts to attract foreign businesses after inbound investment tumbled last year to its lowest in over three decades.

Slowing growth and rising trade tensions have hurt the appeal of investing in the world’s second-biggest economy. In the coming days, the US is set to complete a review of Beijing’s compliance with the phase-one trade deal struck during Mr. Trump’s first term and impose sweeping reciprocal duties globally.

Chinese officials are trying to capitalize on momentum in the private sector spurred by artificial intelligence startup DeepSeek, and paint Beijing as a force for global stability. China recently unveiled a consumption action plan in efforts to buffer the economy against external risks.

Authorities have set an ambitious economic growth goal of about 5% for 2025 and brought China’s fiscal deficit target to the highest in over three decades. However, if the trade war with the US intensifies, economists say China will need to roll out substantial stimulus to meet its growth target this year.

In a prelude to what could be widespread disruption to global trade, Chinese purchases of cotton, large-engined cars and some energy products from the US all plunged in the first two months of the year. All these goods were subject to Chinese retaliatory tariffs in response to Mr. Trump’s trade measures.

The China Development Forum started in 2000 with the backing of then-premier Zhu Rongji, serving as a platform for high-level dialog between China and the world.

Most years, the keynote speech was delivered by a vice premier, and the premier would hold a closed-door meeting with executives. In a break with precedence, Mr. Li addressed the forum last year while Mr. Xi met with a number of American business chiefs after the event, as Beijing sought to counter the downbeat narrative on its economy. — Bloomberg

Heathrow Airport orders probe into shutdown

March 23, 2025 | 6:22 pm

Heathrow International Airport-Terminal 2 — People walk at Terminal 2 of the Heathrow International Airport, a day after a fire at a nearby electrical substation wiped out the power at the airport, near London, Britain, March 22, 2025. — REUTERS

LONDON — London’s Heathrow Airport resumed full operations on Saturday and ordered a probe into how it dealt with a power outage that shut Europe’s busiest air hub for almost a day as airlines warned of further delays and cancellations.

British Airways, whose main hub is Heathrow, said it had operated around 90% of its schedule on Saturday and promised a “near-full” schedule for Sunday after chief executive Sean Doyle on Friday warned the “huge impact” would last days.

The airport, the world’s fifth-busiest, had been due to handle 1,351 flights on Friday, flying up to 291,000 passengers. But the fire at a nearby electrical substation forced planes to be diverted to other airports and many long-haul flights returned to their point of departure.

Britain’s Energy ministry said on Saturday it had commissioned the National Energy System Operator to carry out an urgent investigation into the outage that raised questions about the resilience of the country’s critical infrastructure.

Heathrow said it had tasked an independent board member, former transport minister Ruth Kelly, with undertaking a review of the airport’s crisis-management plan and its response to the incident with the aim of boosting resilience.

Aviation experts said the last time European airports experienced disruption on such a large scale was the 2010 Icelandic volcanic ash cloud that grounded some 100,000 flights.

“It has been absolutely insane,” said Amber Roden, a US citizen getting married in three days’ time, after a number of her relatives had their flights canceled.

Two relatives who were halfway to London from Atlanta had to turn around and go back, she said. Two others will not make it to the UK until the day of the wedding, which she has been planning for two years.

The vast majority of scheduled morning and early afternoon flights departed successfully on Saturday, with a handful of delays and cancellations, Heathrow’s departures website showed.

“We don’t expect any major amount of flights to be canceled or delayed,” Heathrow chief executive Thomas Woldbye told BBC radio.

The airport has hundreds of additional staff on hand to facilitate an extra 10,000 passengers traveling through the airport, a spokesperson said in a statement.

But airlines were still left dealing with disrupted schedules and the tens of thousands of passengers whose journeys had been interrupted.

Virgin Atlantic said on Saturday that it was planning to run a near-full schedule with limited cancellations. Air India said it had restarted flights to and from Heathrow and expected to operate “as per schedule.”

FIRE NOT SUSPICIOUS
Several passengers traveling to Heathrow from London’s Paddington Station were still nervous.

“I’m just hoping that when I get there, I can actually go,” said university professor Melissa Graboyes, who said she was repeatedly checking the status of her flight to Toronto.

Police said that after an initial assessment they were not treating the incident as suspicious, although inquiries remained ongoing. London Fire Brigade said its investigations would focus on the electrical distribution equipment.

The travel industry, facing the prospect of a financial hit costing tens of millions of pounds and a likely fight over who should pay, questioned how such crucial infrastructure could fail without backup.

“It is a clear planning failure by the airport,” said Willie Walsh, head of global airlines body IATA, who, as former head of British Airways, has for years been a fierce critic of the crowded hub.

Heathrow and London’s other major airports have been hit by other outages in recent years, most recently by an automated gate failure and an air traffic system meltdown, both in 2023.

“Britain humiliated by airport fiasco,” read a headline in the Sun newspaper. “Farcical,” wrote the Daily Mail. — Reuters

Pope Francis to be discharged from hospital, with prescription for two months of rest

March 23, 2025 | 6:21 pm

VATICAN CITY — Pope Francis, who has been battling pneumonia for more than five weeks, will be discharged from hospital on Sunday but will need a further two months of rest at the Vatican, the head of his medical team said on Saturday.

Pope Francis, 88, was admitted to Rome’s Gemelli Hospital on Feb. 14 with a severe respiratory infection that became the most serious health crisis of his 12-year papacy.

While Francis will return to the Vatican on Sunday, his doctors said it would take “a lot of time” for his aging body to fully heal.

They said they had prescribed the pope two months of repose, and had advised him against taking any meetings with large groups, or that require special effort.

“The recommendation for a period of convalescence of at least two months is very important,” Sergio Alfieri, head of the pope’s medical team, told the press conference.

Francis, who was fighting double pneumonia, suffered four acute attacks of what the Vatican called “respiratory crises” during his time in hospital.

Mr. Alfieri said that two of the crises had been critical, with the pope “in danger of his life.”

The pontiff no longer has pneumonia, but is also not completely healed from a “complex” infection involving several microorganisms, said the doctor.

Mr. Alfieri emphasized that while Francis had used non-invasive ventilation through a mask over his mouth and nose to help breathe, the pope had never been intubated during his stay in hospital.

One senior cardinal had said on Friday that the pope would need to “relearn to speak” after battling a respiratory infection for so long.

“It will take time before his voice returns to what it was before,” said Mr. Alfieri.

The doctor said the pope, who had gained some weight in recent years after using a wheelchair for knee and back pain, has now lost some weight.

“We haven’t weighed him, but he has lost weight, surely,” said Mr. Alfieri. “But, let’s say, he had some ‘in reserve,’ so it doesn’t worry us,” he added.

POPE TO MAKE PUBLIC APPEARANCE
Dr. Luigi Carbone, vice director of the Vatican’s healthcare service, said the pope would have a nurse caring for him when he returns to his Vatican residence.

The Vatican said earlier on Saturday that Francis would make his first public appearance in more than five weeks on Sunday, to offer a blessing from the window of his hospital room before being discharged.

The pope has been seen by the public only once during his hospital stay, in a photo the Vatican released last week, showing the pontiff at prayer in a hospital chapel.

Francis wants to come to the hospital window around noon on Sunday to give a greeting and blessing, the Vatican said in its brief statement earlier on Saturday.

A period of two months rest for Francis could lead to significant changes to the Vatican’s calendar of upcoming events.

The pope had been set to meet with Britain’s King Charles on April 8, and to lead the Vatican’s annual celebrations for Easter on April 20.

A spokesperson said on Saturday that the Vatican would decide about those appointments at a later date. — Reuters

Trump asks if Lee Harvey Oswald was helped in assassinating JFK

March 23, 2025 | 6:20 pm

Kennedy statue — A STATUE of President John F. Kennedy stands outside the State House in Boston, Massachusetts, US, March 18, 2025. — REUTERS

WASHINGTON — US President Donald J Trump said on Saturday he believes the 1963 assassination of President John F. Kennedy (JFK) was carried out by Lee Harvey Oswald but asked if the gunman had help.

When asked if he believes Mr. Oswald killed JFK, Mr. Trump responded, “I do. And I’ve always held that, of course he was, was he helped?” Mr. Trump told Clay Travis, the founder of sports website Outkick, during an interview on Air Force One.

The Justice department and other federal government bodies have reaffirmed in the intervening decades the conclusion that Mr. Oswald was the lone assassin. But polls show many Americans still believe Mr. Kennedy’s death in Dallas was the result of a conspiracy.

On Mr. Trump’s orders, the government released thousands of pages of digital documents related to the Kennedy assassination this week.

Mr. Trump promised on the campaign trail last year to provide more transparency about Mr. Kennedy’s death. Upon taking office, he also ordered aides to present a plan for the release of records relating to the 1968 assassinations of Kennedy’s brother, Robert F. Kennedy, and civil rights leader Martin Luther King, Jr. — Reuters

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