Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 612

Tagaytay Highlands unveils visionary long-term blueprint

Horizon Terraces Garden Suites and Garden Villas

Tagaytay Highlands, an expansive 1,200-hectare mountain resort community — spanning the provinces of Cavite, Laguna, and Batangas, has remained synonymous with distinction, luxury, and exclusivity for over 30 years. As Tagaytay Highlands continues to prepare for future generations, Highlands Prime, Inc., a subsidiary of SM Prime Holdings, envisions to bring the estate to even greater heights.

“We see Tagaytay Highlands transforming into a fully integrated, sustainable, and self-sustaining mountain resort community complemented by commercial, service, and recreational amenities,” stated SM Leisure Resort Residences Executive Vice-President and Business Unit Head Shirley Chua Ong. “This integrates Tagaytay Highlands’ four districts — The Highlands, Midlands, Midlands West, and Greenlands — into a seamless, mixed-use destination for elevated lifestyle experiences.”

Moreover, Tagaytay Highlands has long epitomized eco-friendly practices, with 40% of its residential areas preserved as open space. Its commitment to environmental stewardship is seen in conservation initiatives that help maintain the area’s natural beauty and biodiversity. One of the estate’s standout programs is the One Tree at a Time reforestation initiative, which aims to plant one million trees by 2044. With over 490,000 trees already planted, Tagaytay Highlands continues to build a verdant, eco-conscious community, future-proofing its development for generations to come.

Innovation and evolution are at the heart of Tagaytay Highlands’ development philosophy, and recent residential projects are a testament to its forward-thinking approach.

Trealva at Midlands West stands as a model of wellness-oriented, eco-centric living, providing spacious residential lots for those looking to immerse themselves in eco-conscious, luxury mountain living.

Highlands Residences, a low-density condominium development, features exclusive, world-class amenities designed to promote wellness and open-air living.

Primrose Parks, a low-density community with just 99 lots spread over 6.3 hectares, offers residents an abundance of green space and year-round scenic views.

Horizon Terraces Garden Suites and Garden Villas, a collection of five-storey, low-density residential condominiums and three-bedroom townhomes, provides panoramic views of the estate’s natural beauty, making it ideal for growing families seeking privacy and tranquility.

The Grove at Plantation Hills redefines countryside living by seamlessly integrating a leisure residential lifestyle with the charm of sustainable farming.

As it steps boldly into 2025 and beyond, Tagaytay Highlands redefines mountain resort living, setting new standards in sustainable, integrated township development and creating a vibrant community that will be cherished for generations.

 

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

Join us on Viber at https://bit.ly/3hv6bLA to get more updates and subscribe to BusinessWorld’s titles and get exclusive content through www.bworld-x.com.

Comprehensive Sexual Education: Protects youth from abuse, says advocate

The advocate of the Teenage Pregnancy Prevention Bill explains the importance of Comprehensive Sexuality Education (CSE), one of the key components of the bill, in curbing teenage pregnancy.

“Dapat alam ‘yan ng lahat ng tao at bata (Everyone, including children, should know about it). This concept will protect them from experiencing sexual abuse and will guide them to have better relationships,” Au Quilala, Deputy Executive Director of Philippine Legislators’ Committee on Population and Development said.

Interview by Edg Adrian A. Eva
Video editing by Jayson John D Marinas

Online safety 101: Gogolook shares tips for UST students to protect their digital identity

Gogolook Philippines Country Head Mel Migriño during the Self-Defense Awareness and Familiarization Exercises (S.A.F.E.) seminar at the University of Santo Tomas (UST)

A global leader in TrustTech, Gogolook recently visited the University of Santo Tomas (UST) to provide students with valuable tips on protecting their personal identity online.

During the Self-Defense Awareness and Familiarization Exercises (S.A.F.E.) seminar, attended by Senior High School (SHS) students, Gogolook Philippines Country Head Mel Migriño delivered an insightful talk on “Securing Your Identity in the Digital Age.”

“It is crucial for us to be mindful of our online behavior and take proactive steps to safeguard our digital identities,” Ms. Migriño emphasized.

“Be cautious with links from unknown contacts, verify identities carefully, and double-check who’s reaching out to you — especially when it involves financial matters,” Ms. Migriño added.

Gogolook Philippines Country Head Mel Migriño received the certificate of appreciation for joining the Self-Defense Awareness and Familiarization Exercises (S.A.F.E.) seminar.

She also shared practical security tips for students, particularly for staying safe on social media.

“Limit how much personal information you share, avoid posting sensitive details, and think twice before making anything public. Adjust your privacy settings, control who can follow you, and don’t hesitate to block or report suspicious accounts. If you encounter inappropriate behavior, report it through the Whoscall app or the CICC hotline at 1326,” she suggested.

During the program, students had the opportunity to ask Ms. Migriño about online security.

She highlighted how artificial intelligence (AI) is increasingly being misused by scammers.

“AI is a powerful tool that helps us in many ways, but online scammers are using it to profile potential victims,” she said.

Furthermore, Gogolook’s Country Head highlighted key features of Whoscall, the global anti-scam application developed by Gogolook, including Message and Caller ID, Web Checker, and Number Blocker.

Gogolook Philippines Country Marketing Head Gabe Barrios with UST students during the Self-Defense Awareness and Familiarization Exercises (S.A.F.E.)

“Be notified when any incoming unknown numbers are flagged and reported as spam or scam from our extensive database of 2.6 billion reported numbers,” she explained, discussing Whoscall’s Message and Caller ID feature.

“Scan unknown URLs sent to you and instantly assess their risk level using the built-in URL scanner in the Whoscall app. For Android users, the scanner can even integrate with your messages, eliminating the need to copy and paste links,” she added, referring to Whoscall’s Web Checker feature.

Regarding the Number Blocker feature, she said, “Easily block incoming calls and messages flagged as spam or scams, ensuring you no longer have to worry about unwanted disruptions.”

 

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

Join us on Viber at https://bit.ly/3hv6bLA to get more updates and subscribe to BusinessWorld’s titles and get exclusive content through www.bworld-x.com.

AMA Bank seeks clarification from BSP following contradictory statements on reopening and depositor payments

In response to the Bangko Sentral ng Pilipinas’ (BSP) press release titled Statement on AMA Bank Case issued on Jan.30, 2025, AMA Rural Bank of Mandaluyong, Inc. (AMA Bank) seeks clarification on BSP’s position regarding its pending second Motion for Reconsideration with the Supreme Court and the bank’s reopening.

The BSP’s statement asserted that its pending second Motion for Reconsideration “does not prevent AMA Bank from reopening and paying its depositors and creditors.” However, AMA Bank observes that this contradicts BSP’s own legal filings with both the Court of Appeals and the Supreme Court.

In its Comment/Opposition filed with the Court of Appeals, BSP previously argued that AMA Bank’s Motion for Execution could not be acted upon due to the pending second Motion for Reconsideration before the Supreme Court. Furthermore, in its second Motion for Reconsideration filed with the Supreme Court, BSP stated that AMA Bank could no longer be reopened under any circumstances after its closure was ordered by BSP.

Given the apparent contradiction between BSP’s press release and its legal arguments, AMA Bank is now formally requesting BSP to clarify whether it has abandoned its second Motion for Reconsideration with the Supreme Court and its Comment/Opposition to AMA Bank’s Motion for Execution with the Court of Appeals. If BSP no longer stands by these filings, AMA Bank urges BSP to formally withdraw them.

Additionally, AMA Bank seeks confirmation on whether BSP’s press release should be treated as an official authorization for the bank’s reopening, in compliance with the final judgments of the Supreme Court and the Court of Appeals. If so, AMA Bank requests BSP to affirm this in writing.

To facilitate the bank’s reopening for the sole and limited purpose of repaying its long-suffering depositors, AMA Bank is calling on BSP to take the following actions without further delay:

  • Return AMA Bank’s reserve funds amounting to approximately Php135 million;
  • Instruct the Philippine Deposit Insurance Corporation (PDIC) to return the bank’s cash assets totaling approximately Php340 million, which were seized under BSP’s now-nullified closure order;
  • Advise the Department of Education (DepEd) to promptly release collections from teacher’s loans owed to AMA Bank, amounting to more than Php1.4 billion.

AMA Bank reiterates its commitment to resolving this matter in the best interest of its depositors and creditors, who have endured prolonged uncertainty due to the bank’s closure. The bank urges BSP to act decisively and in good faith to restore the financial security of its clients and ensure compliance with judicial rulings.

 

Sources:

  1. BSP’s Comment/Opposition dated August 27, 2024 (CA-G.R. SP No. 163288, pp. 15-16)
  2. BSP’s Omnibus Motion dated August 6, 2024 (G.R. Nos. 253270 and 253411, p. 4)

 

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

Join us on Viber at https://bit.ly/3hv6bLA to get more updates and subscribe to BusinessWorld’s titles and get exclusive content through www.bworld-x.com.

Insurance closer to your fingertips with myCocolife app

Cocolife gives app users a chance to visit Boracay with App, App & Away! promo

Since its establishment nearly 50 years ago, Cocolife has grown to be one of the premier insurance companies in the Philippines committed to going above and beyond the needs of Filipinos while providing exceptional service and innovative solutions to their valued clients.

After the recent launch of its improved and reimagined myCocolife app late last year, the company simplified the insurance process and allowed users to manage their policies and access various insurance-related services in real-time. The myCocolife App is an all-in-one solution for accessing the company’s offerings and managing them from the palm of your hand. The improved app features timely notifications, quick access to information, as well as detailed guides about various products.

In line with the company’s mission of financial literacy for all Filipinos, Cocolife has launched an exciting new promotion that gives app users a chance to win a luxurious three-day, two-night vacation package for two at the pristine island of Boracay or cash worth P47,000. This promotion is not limited to Cocolife clients but is open for the general public.

To join the App, App & Away! promo, simply download the myCocolife app in the Google Play Store or at the App Store, complete the registration process from Dec. 15, 2024, until March 20, 2025, and wait for the announcement of winners shortly after the promo period. To learn more about the myCocolife App, App, & Away Promo, visit this link: https://bit.ly/MyCocolifeAppAppandAway.

With the company’s mobile app, experience convenience and rewards like never before. Cocolife’s new digital platform allows users to not only track their policies and payments but also to explore and purchase new insurance products directly from their mobile devices while getting immediate assistance for their needs. Additionally, users can book appointments with agents for personalized consultations ensuring that customers are well-informed and can make educated decisions.

“For Cocolife, it is our duty to serve our clients with the best insurance products, together with the highest standards of customer servicing,” said Cocolife President and Chief Executive Officer Atty. Jose Martin A. Loon.

More features are expected to enhance the application’s capabilities in the coming years with the second phase bringing upgrades such as a marketplace for products and an EKYC (electronic know-your-customer) process for faster applications and the third phase introducing agent assistance tools, the ability to submit claims through the app, and biometric login for added security.

Take advantage of this opportunity to participate in the App, App, & Away! promo, where you can enjoy the benefits of seamless insurance management while earning exciting rewards and ensuring financial security.

Download the myCocolife app and register today!

Playstore – https://bit.ly/myCocolife_playstore
iOS – https://apps.apple.com/ph/app/my-cocolife/id1598247066

 

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

Join us on Viber at https://bit.ly/3hv6bLA to get more updates and subscribe to BusinessWorld’s titles and get exclusive content through www.bworld-x.com.

Trump to cut off funding for South Africa

RAWPIXEL

WASHINGTON – U.S. President Donald Trump said on Sunday, without citing evidence, that “certain classes of people” in South Africa were being treated “very badly” and that he would cut off funding for the country until the matter is investigated.

“South Africa is confiscating land, and treating certain classes of people VERY BADLY,” Mr. Trump said in a Truth Social post.

“The United States won’t stand for it, we will act. Also, I will be cutting off all future funding to South Africa until a full investigation of this situation has been completed!” he said.

It is unclear what led to Mr. Trump’s post.

The South African embassy in Washington D.C. did not respond to a request for comment outside of regular business hours.

The United States obligated nearly $440 million in assistance to South Africa in 2023, the most recent U.S. government data showed.

South Africa currently holds the G20 presidency, after which the U.S. takes over.

Last month, South African President Cyril Ramaphosa said he was not worried about the country’s relationship with Trump. He said he had spoken to Mr. Trump after the latter’s election victory and looked forward to working with his administration.

During his first administration, Mr. Trump said the U.S. would investigate unproven large-scale killings of white farmers in South Africa and violent takeovers of land. Pretoria at the time said Mr. Trump was misinformed. It is unclear whether the Trump administration carried out an investigation.

Mr. Trump’s close ally Elon Musk was born in South Africa. In 2023, Mr. Musk replied on X to a video of a far-left South African political party singing an old anti-apartheid song, “Kill the Boer”, by stating: “They are openly pushing for genocide of white people in South Africa.”

“@CyrilRamaphosa, why do you say nothing?” Mr Musk asked. – Reuters

OpenAI cites US roots to dodge India courts, but lawyers say case can be heard

NEW DELHI, Jan 31 (Reuters) – OpenAI faces an uphill climb as it argues that Indian courts cannot hear lawsuits about its U.S.-based business in the country, where Telegram has failed with similar defences and U.S. technology firms have faced government heat on compliance.

OpenAI, which counts India as its second biggest market with millions of users, is locked in an intense court battle triggered by domestic news agency ANI for alleged use of copyright content.

The case gained prominence in recent weeks as book publishers and media groups, including those of billionaires Gautam Adani and Mukesh Ambani, banded together to oppose OpenAI in the case.

OpenAI, which is facing new challenges from Chinese startup DeepSeek‘s breakthrough cheap AI computing, has maintained it builds its AI models using public information in line with fair use principles. The company faces similar copyright infringement lawsuits in U.S., Germany and Canada.

Details of legal rebuttals by OpenAI in other markets are not known, but in New Delhi it is opposing ANI by saying in court filings its usage terms call for dispute resolution only in San Francisco, it is beyond the jurisdiction of Indian courts and it “does not maintain any servers or data centres” in the country.

“It’s a pre-Internet era argument which will not fly in Indian courts today,” said Dharmendra Chatur, a partner at Poovayya & Co., which advises foreign tech companies.

“Google, X, Facebook all perform services through their foreign companies and are party to litigation across India,” Chatur added, explaining courts typically assess if a website is accessible and offers services to customers in India in deciding the point.

OpenAI did not respond to Reuters queries for this article. Its lawyer in India, Amit Sibal, declined to comment, citing ongoing proceedings.

Six other lawyers, and submissions of two court-appointed experts in the OpenAI lawsuit, Arul George Scaria and Adarsh Ramanujan, said Indian judges can hear the matter.

“It is evident that OpenAI is making their interactive services available to the users in India,” Scaria wrote in his Jan. 25 court submission, which has not been made public but was seen by Reuters.

OpenAI’s website shows it charges an 18% Indian tax on paid offerings and it said recently there was a “massive uptake of ChatGPT” in the critical market.

In the OpenAI-ANI case, an outright win on the jurisdiction argument will mean OpenAI will not need to face the copyright lawsuit in India. If it loses that argument, it will have to contest ANI’s demand for deletion of training data and pay $230,000 in damages.

The Delhi court is set to hear the case next in February on the jurisdiction and other arguments.

Asked about the lawsuit, Reuters, which holds a 26% interest in ANI, has said it is not involved in its business practices or operations.

 

“FOREIGN DEFENDANT”

Batting for the power of Indian courts, lawyers and the court-appointed expert Scaria cited a 2022 decision involving Telegram as a legal precedent.

An Indian author had sued Telegram for her leaked copyright works appearing on Telegram groups, but the company declined to share details saying it was governed by laws in Dubai, where it is based, and had servers outside India.

Telegram disclosed the details after a Delhi judge ruled: “the conventional concepts of territoriality no longer exist … (Telegram choosing) not to locate its servers in India cannot divest the Indian courts from dealing with copyright disputes.”

The court did not impose a penalty.

OpenAI, however, argues there is 2009 court precedent in India that says merely because an app or webpage is accessible there does not mean judges can get jurisdiction “over a foreign defendant.”

Even if OpenAI’s argument on jurisdiction fails to stop the lawsuit initially, an Indian intellectual property lawyer said it could later help the company make the point that a court order would need enforcement abroad. The lawyer declined to be named because of the matter’s sensitivity.

Though Prime Minister Narendra Modi’s government is not party to the OpenAI lawsuit, it has had a love-hate relationship with Big Tech.

India’s IT minister in 2021 referred to U.S. tech firms and said their “position that ‘I will only be governed by laws of America’ … is plainly not acceptable.”

In the most bitter public faceoff that same year, Twitter, now X, declined to comply with orders to remove certain content and the government issued a press release, titled “Twitter needs to comply with the laws of the land”.

The company complied later but sued New Delhi. The case is ongoing.

Even before Indian legal challenges mounted, OpenAI chief Sam Altman planned an India visit for Feb. 5. An email shows two other senior executives, James Hairston and Srinivas Narayanan, also plan to be in India.

“India is really important … we’ve seen massive uptake of ChatGPT,” OpenAI India executive, Pragya Misra, said last year. – Reuters

Canada to take legal action against US for tariffs

CHRIS ROBERT-UNSPLASH

OTTAWA – Canada will take legal action under the relevant international bodies to challenge the 25% tariffs imposed by the United States on most Canadian goods, a senior government official said on Sunday, calling the tariffs illegal and unjustified.

The comments come a day after Prime Minister Justin Trudeau announced a wide array of retaliatory levies of 25% on U.S. goods in response the tariffs announced on Saturday by President Donald Trump.

“We will obviously pursue the legal recourse that we believe we have through the agreements that we share with the United States,” the official said, briefing reporters in Ottawa on condition of anonymity.

Mr. Trump applied a 25% import tariff on all Canadian goods, except energy products such as oil and gas and electricity, which will carry a duty of 10% while entering the United States. The 25% tariff will be in effect starting on Tuesday, while the energy tariff will be implemented starting on Feb. 18.

In response, Canada has imposed tariffs on 1,256 products, or 17% of all the products imported from the United States, starting on Tuesday. The products, including orange juice, peanut butter, wine, beer, motorcycles, cosmetics and more – which will add up to up to C$30 billion.

Some of the big ones are cosmetics and body care of C$3.5 billion, appliances and other household items of C$3.4 billion, pulp and paper products C$3 billion, the official said.

The Canadian government will publish another list in three weeks time that will include products such as passenger vehicles and trucks, including electric vehicles, steel and aluminum products, certain fruits and vegetables, aerospace products, the government said in a statement. The imports have a total value of C$125 billion, it added.

The official said the Canadian government considered the move by Trump illegal and said it violates the trade commitments between the two countries under their free trade agreement and under the World Trade Organization.

“If other legal avenues are available to us, they will be considered as well,” the official said.

The U.S. tariffs and the counter measures taken by Canada will have an effect on the Canadian economy, the official said. The official declined to give specifics on the impact.

Earlier on Sunday, the government said it will provide a mechanism for Canadian businesses to obtain relief from retaliatory tariffs. Under the so-called “remission process,” Canadian businesses could apply for tariff relief or refunds, provided they meet certain conditions.

Mr. Trump ordered sweeping tariffs on goods from Mexico, Canada and China, demanding that the countries curb the flow of fentanyl – and illegal immigrants in the case of Canada and Mexico – into the United States. Trump’s action began a trade war that could hamper global economic growth and reignite inflation.

Mexico and Canada are the top two U.S. trading partners. – Reuters

North Korea criticizes Rubio, says it will respond strongly to US provocations

MICHA BRANDLI-UNSPLASH

SEOUL – North Korea on Monday criticised U.S. Secretary of State Marco Rubio for calling it a “rogue state” in a media interview, saying his comments do not help U.S. interests, state media KCNA said.

North Korea’s foreign ministry said the country will respond strongly to hostile U.S. provocations, KCNA reported.

It is North Korea’s first criticism of the Trump administration since President Donald Trump reentered the White House on Jan. 20, Yonhap news agency said.

The ministry also condemned United States’ new missile defence shield plan, saying that it makes it necessary for North Korea to strengthen its own military power, KCNA reported.

Mr. Trump last week signed an order that “mandated a process to develop an ‘American Iron Dome,'” a next-generation U.S. missile defence shield against ballistic, hypersonic, cruise missile and other forms of aerial attack.

“The idea of a new missile defence system, which recalls the spectre of the dangerous ‘Star Wars’ plan of… the Cold War, poses a risk of justifying an arms race under the pretext of coping with the ‘threat’ of adversaries, regardless of its feasibility,” North Korea’s foreign ministry said, according to KCNA.

“The increasingly harsh global security environment urgently calls for us to constantly develop self-defence capabilities based on nuclear deterrence.” – Reuters

Mexico vows retaliation to Trump tariffs without detailing targets

THE MEXICAN FLAG flutters during the National Flag Day event in Iguala, Guerrero State, Mexico, Feb. 24, 2021. — REUTERS

MEXICO CITY – Mexican President Claudia Sheinbaum on Saturday ordered retaliatory tariffs in response to the U.S. decision to slap 25% tariffs on all goods coming from Mexico, as a trade war broke out between the two neighbors.

In a lengthy post on X, Sheinbaum said her government sought dialogue rather than confrontation with its top trade partner to the north, but that Mexico had been forced to respond in kind.

“I’ve instructed my economy minister to implement the plan B we’ve been working on, which includes tariff and non-tariff measures in defense of Mexico’s interests,” Ms. Sheinbaum posted, without specifying what U.S. goods her government will target.

For decades, the two neighbors have seen cross-border trade grow, including from a highly integrated auto industry, as well as massive volumes of crude oil, natural gas and motor fuels that move in both directions.

There is also a booming farm trade. Mexico sends large volumes of fresh produce north, including avocados and tomatoes, while U.S. farmers supply huge amounts of corn and other grains to Mexican buyers.

Overall, the United States is by far Mexico’s most important foreign market, and Mexico in 2023 overtook China as top destination for U.S. exports.

Mexico has been preparing possible retaliatory tariffs on imports from the U.S., ranging from 5% to 20%, on pork, cheese, fresh produce, manufactured steel and aluminum, according to sources familiar with the matter. The auto industry would initially be exempt, they said.

Economy Minister Marcelo Ebrard said on X that Mr. Trump’s tariffs were a “flagrant violation” of the U.S.-Mexico-Canada Agreement.

“Plan B is underway,” Mr. Ebrard said. “We will win!”

U.S. exports to Mexico accounted for more than $322 billion in 2023, Census Bureau data showed, while the U.S. imported more than $475 billion worth of Mexican products.

Almost a third of Mexico’s gross domestic product depends directly on exports to the United States, Grupo Financiero BASE’s economic analysis director, Gabriela Siller, said on X.

“With a universal tariff of 25%, it is estimated that exports could fall by around 12%. With this, Mexico’s GDP could fall by 4% in 2025, if the tariff is maintained all year round,” Ms. Siller said.

In her post, Ms. Sheinbaum also rejected as “slander” the White House’s allegation that drug cartels have an alliance with the Mexican government, a point Trump’s administration used to justify the tariffs.

Mr. Trump said the tariffs against Mexico were due to the country’s failure to stop fentanyl, a deadly opioid, from getting into the United States, as well as what he called uncontrolled migration.

Ms. Sheinbaum touted her government’s record since she took office in October – seizing 20 million doses of fentanyl, in addition to detaining over 10,000 people tied to drug trafficking.

The U.S. measures were “one of the heaviest attacks Mexico has received in its independent history,” Mexico’s ruling party congressional leader Ricardo Monreal told broadcaster Milenio. – Reuters

How work-life balance is shaping up for Filipinos

Anthony Oundjian, managing director and senior partner of the Boston Consulting Group’s Manila office, talks about work-life equilibrium in the context of hybrid work and the reality of Manila traffic.

Interview by Almira Martinez
Video editing by Arjale Queral

BSP eyes 50-bp rate cuts this year

Bangko Sentral ng Pilipinas Governor Eli M. Remolona, Jr. — COURTESY OF BANGKO SENTRAL NG PILIPINAS

By Luisa Maria Jacinta C. Jocson, Reporter

THE BANGKO SENTRAL ng Pilipinas (BSP) may cut interest rates by 50 basis points (bps) this year, its top official said.

“Seventy-five basis points might be too much, maybe 50 bps. We need a bit of policy insurance,” BSP Governor Eli M. Remolona, Jr. told reporters on the sidelines of the BSP Media Information Session in Baguio City on Saturday.

Mr. Remolona said that this could be delivered in increments of 25 bps each in the first and second half of the year.

“I think that sounds about right, 25 bps (in the) first half, 25 bps (in the) second half. Not every meeting we’ll see a policy rate decline,” he added.

The central bank began its easing cycle in August last year, slashing borrowing costs by a total of 75 bps by end-2024.

The Monetary Board delivered three straight rate cuts, bringing the benchmark to 5.75%.

Mr. Remolona said “there is no need” for a 100 bps worth of reductions this year as the country is far from a “hard landing” scenario.

“Central banks around the world learned to do things gradually except when there is an impending hard landing. Hard landing usually means a cut of more than 25 bps. We don’t see a hard landing in the near future,” he said.

On Friday, Mr. Remolona said a rate cut is still on the table at the Monetary Board’s first policy review meeting this year on Feb. 13.

The BSP chief said a negative output gap could prompt further monetary easing.

“Right now, we have a kind of a negative output gap. We’re growing at a little bit below capacity and whether that (growth) number widens that gap, our capacity and how much we’re really growing.”

“If the gap is widening, if it becomes more negative, then it would call for more easing,” he added.

The Philippine’s gross domestic product (GDP) grew by 5.6% in 2024, falling short of the government’s 6-6.5% target.

In the fourth quarter, GDP growth expanded by a weaker-than-expected 5.2%, the slowest print since the 4.3% logged in the second quarter of 2023.

Meanwhile, Mr. Remolona said they are also monitoring the US Federal Reserve’s moves but do not see the need to necessarily fall in step with the US central bank.

“Of course, it affects what we will do because it affects what happens to the economy, what happens to inflation rates. In that respect, it affects what we do but we don’t copy them. We don’t just follow them.”

The Fed, in its January meeting, kept benchmark interest rates unchanged as widely expected, after easing a full basis point in 2024. This marks the first pause since the start of its easing cycle in September, Reuters reported.

RRR CUT
Meanwhile, the BSP chief said the central bank is eyeing another cut in banks’ reserve requirement ratio (RRR) this year.

The Monetary Board is eyeing to reduce reserve requirements by 200 bps to 5% this year, he said.

“That’s the amount that we’re discussing, 200 bps. From 7% to 5% for the big banks,” Mr. Remolona said.

This may be delivered sometime in the middle of the year, he added, likely in June or July.

The central bank reduced the RRR for universal and commercial banks and nonbank financial institutions with quasi-banking functions by 250 bps to 7% from 9.5%, which took effect last October.

It also cut the RRR for digital banks by 200 bps to 4% and for thrift lenders by 100 bps to 1%. Rural and cooperative banks’ RRR was also slashed by 100 bps to 0%.

“In a way, the policy rate cut is a substitute for cutting the reserve requirements. They have similar effects on the economy… We want to bring it lower but the timing matters, because we are also cutting the policy rate,” Mr. Remolona said.

“The nice thing about the reserve requirement is it affects both the deposit rate and the lending rate. So, it should raise the deposit rate a little bit if you cut the reserve requirement while lowering the loan rates.”

The RRR is the portion of reserves that banks must hold onto to ensure they can meet liabilities in case of sudden withdrawals. When a bank is required to hold a lower reserve ratio, it has more funds to lend to borrowers.

From a high of 20% in 2018, the central bank has since brought down reserve requirements to single-digit levels. 

1...611612613...12,801Page 612 of 12,801
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube