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Vietnam says administration reform will not impact project approvals

MATT W NEWMAN-UNSPLASH

HANOI – Vietnam’s government said on Friday that plans to significantly overhaul its administration will not affect project approvals amid investor concern it could lead to delays in the coming months.

The Southeast Asian country, a regional industrial hub, is planning its boldest bureaucratic reform in decades, which in its current proposals would involve cuts to multiple state bodies, including the abolition of five ministries, four government agencies and five state TV channels.

“The restructuring process will not affect the implementation of investment procedures and processes in Vietnam because the state management function remains unchanged,” foreign ministry spokesperson Pham Thu Hang said in a statement to Reuters.

Investors, diplomats and officials have welcomed the reforms, which are designed to reduce red tape and bureaucracy, but many anticipate administrative delays in the coming months.

The Communist-run country relies heavily on foreign investment in manufacturing to fuel its booming export-oriented economy. But in recent years, investor discontent has grown louder over delays in project approvals and regulatory reforms compounded by a sweeping anti-corruption campaign.

The administrative overhaul, which could be amended ahead of a vote in parliament in February, is meant to address those concerns.

“Along with the restructuring process, Vietnam continues to have strong regulations on simplifying investment processes to facilitate foreign enterprises’ operations in Vietnam for the long term,” Hang said. – Reuters

Israel’s Netanyahu eyes Iran after triumphs over Hamas, Hezbollah, Syria

JOHANNES SCHENK-UNSPLASH

DUBAI, Dec 20 (Reuters) – 2025 will be a year of reckoning for Israeli Prime Minister Benjamin Netanyahu and his country’s arch foe Iran.

The veteran Israeli leader is set to cement his strategic goals: tightening his military control over Gaza, thwarting Iran’s nuclear ambitions and capitalising on the dismantling of Tehran’s allies — Palestinian Hamas, Lebanon’s Hezbollah and the removal of Syrian president Bashar al-Assad.

Assad’s collapse, the elimination of the top leaders of Hamas and Hezbollah and the destruction of their military structure mark a succession of monumental wins for Netanyahu.

Without Syria, the alliances Tehran has nurtured for decades have unraveled. As Iran’s influence weakens, Israel is emerging as the dominant power in the region.

Netanyahu is poised to zero in on Iran’s nuclear ambitions and missile program, applying an unyielding focus to dismantling and neutralising these strategic threats to Israel.

Iran, Middle East observers say, faces a stark choice: Either continue its nuclear enrichment program or scale back its atomic activities and agree to negotiations.

“Iran is very vulnerable to an Israeli attack, particularly against its nuclear program,” said Joost R. Hiltermann, Middle East and North Africa Program Director of the International Crisis Group. “I wouldn’t be surprised if Israel did it, but that doesn’t get rid of Iran.”

“If they (Iranians) do not back down, Trump and Netanyahu might strike, as nothing now prevents them,” said Palestinian analyst Ghassan al-Khatib, referring to President-elect Donald Trump. Khatib argued that the Iranian leadership, having demonstrated pragmatism in the past, may be willing to compromise to avert a military confrontation.

Trump, who withdrew from a 2015 agreement between Iran and six world powers aimed at curbing Tehran’s nuclear goals, is likely to step up sanctions on Iran’s oil industry, despite calls to return to negotiations from critics who see diplomacy as a more effective long-term policy.

 

DEFINING LEGACY

Amid the turmoil of Iran and Gaza, Netanyahu’s long-running corruption trial, which resumed in December, will also play a defining role in shaping his legacy. For the first time since the outbreak of the Gaza war in 2023, Netanyahu took the stand in proceedings that have bitterly divided Israelis.

With 2024 coming to an end, the Israeli prime minister will likely agree to sign a ceasefire accord with Hamas to halt the 14-month-old Gaza war and free Israeli hostages held in the enclave, according to sources close to the negotiations.

But Gaza would stay under Israeli military control in the absence of a post-war U.S. plan for Israel to cede power to the Palestinian Authority (PA), which Netanyahu rejects. Arab states have shown little inclination to press Israel to compromise or push the decaying PA to overhaul its leadership to take over.

“Israel will remain in Gaza militarily in the foreseeable future because any withdrawal carries the risk of Hamas reorganising. Israel believes that the only way to maintain the military gains is to stay in Gaza,” Khatib told Reuters.

For Netanyahu, such a result would mark a strategic victory, consolidating a status quo that aligns with his vision: Preventing Palestinian statehood while ensuring Israel’s long-term control over Gaza, the West Bank and East Jerusalem — territories internationally recognised as integral to a future Palestinian state.

The Gaza war erupted when Hamas militants stormed into Israel on Oct. 7, 2023, killing 1,200 people and taking 250 hostages, according to Israeli tallies. Israel responded with an air and land offensive that has killed 45,000 people, health authorities there say, displaced 1.2 million and left much of the enclave in ruins.

While the ceasefire pact would bring an immediate end to the Gaza hostilities, it would not address the deeper, decades-old Palestinian-Israeli conflict, Arab and Western officials say.

On the ground, prospects for a Palestinian state, an option repeatedly ruled out by Netanyahu’s government, have become increasingly unattainable, with Israeli settler leaders optimistic that Trump will align closely with their views.

A surge in settler violence and the increasing confidence of the settler movement – highway billboards in some West Bank areas bear the message in Arabic “No Future in Palestine” – reflect a growing squeeze on Palestinians.

Even if the Trump administration were to push for an end to the conflict, “any resolution would be on Israel’s terms,” said Hiltermann of the Crisis Group.

“It’s over when it comes to a Palestinian state, but the Palestinians are still there,” he said.

In Trump’s previous term, Netanyahu secured several diplomatic wins, including the “Deal of the Century,” a U.S.-backed peace plan which Trump floated in 2020 to resolve the Israeli-Palestinian conflict.

The plan, if implemented, marks a dramatic shift in U.S. policy and international agreements by overtly aligning with Israel and deviating sharply from a long-standing land-for-peace framework that has historically guided negotiations.

It would allow Israel to annex vast stretches of land in the occupied West Bank, including Israeli settlements and the Jordan Valley. It would also recognise Jerusalem as the “undivided capital of Israel” – effectively denying Palestinian claims to East Jerusalem as their capital, a central aspiration in their statehood goals and in accordance with U.N. resolutions.

 

SYRIA AT CRITICAL CROSSROADS

Across the border from Israel, Syria stands at a critical juncture following the overthrow of Assad by Hayat Tahrir al-Sham (HTS) rebel forces, led by Ahmad al-Sharaa, better known as Abu Mohammed al-Golani.

Golani now faces the monumental task of consolidating control over a fractured Syria, where the military and police force have collapsed. HTS has to rebuild from scratch, securing borders and maintaining internal stability against threats from jihadists, remnants of the Assad regime, and other adversaries.

The greatest fear among Syrians and observers alike is whether HTS, once linked to al-Qaeda but now presenting itself as a Syrian nationalist force to gain legitimacy, reverts to a rigid Islamist ideology.

The group’s ability – or failure – to navigate this balance will shape the future of Syria, home to diverse communities of Sunnis, Shi’ites, Alawites, Kurds, Druze and Christians.

“If they succeed in that (Syrian nationalism) there’s hope for Syria, but if they revert to their comfort zone of quite strongly ideologically-tainted Islamism, then it’s going to be divisive in Syria,” said Hiltermann.

“You could have chaos and a weak Syria for a long time, just like we saw in Libya and Iraq.” – Reuters

Pakistan’s missile program is ’emerging threat’, top US official says

REUTERS

WASHINGTON – A senior White House official on Thursday said nuclear-armed Pakistan is developing long-range ballistic missile capabilities that eventually could allow it to strike targets well beyond South Asia, making it an “emerging threat” to the United States.

Deputy National Security Adviser Jon Finer’s surprise revelation underscored how far the once-close ties between Washington and Islamabad have deteriorated since the 2021 U.S. troop withdrawal from Afghanistan.

It also raised questions about whether Pakistan has shifted the objectives of nuclear weapons and ballistic missile programs long intended to counter those of India, with which it has fought three major wars since 1947.

Speaking to the Carnegie Endowment for International Peace, Mr. Finer said Pakistan has pursued “increasingly sophisticated missile technology, from long-range ballistic missile systems to equipment, that would enable the testing of significantly larger rocket motors.”

If those trends continue, Mr. Finer said, “Pakistan will have the capability to strike targets well beyond South Asia, including in the United States.”

The number of nuclear-armed states with missiles that can reach the U.S. homeland “is very small and they tend to be adversarial,” he continued, naming Russia, North Korea and China.

“So, candidly, it’s hard for us to see Pakistan’s actions as anything other than an emerging threat to the United States,” Mr. Finer said.

His speech came a day after Washington announced a new round of sanctions related to Pakistan’s ballistic missile development program, including for the first time against the state-run defense agency that oversees the program.

The Pakistani embassy did not immediately respond to a request for comment.

Islamabad casts its nuclear weapons and ballistic missile programs as deterrents against Indian aggression and intended to maintain regional stability.

Two senior administration officials, speaking on condition of anonymity, said that the U.S. concerns with Pakistan’s missile program have been long-standing and stemmed from the sizes of the rocket engines being developed.

The threat posed to the United States is up to a decade away, said one official.

Finer’s comments, the officials said, were intended to press Pakistani officials to address why they are developing more powerful rocket engines, something they have refused to do.

“They don’t acknowledge our concerns. They tell us we are biased,” said the second U.S. official, adding that Pakistani officials have wrongly implied that U.S. sanctions on their missile program are intended “to handicap their ability to defend against India.”

Mr. Finer included himself among senior U.S. officials who he said repeatedly have raised concerns about the missile program with top Pakistani officials to no avail.

Washington and Islamabad, he noted, had been “long-time partners” on development, counter-terrorism and security.

“That makes us question even more why Pakistan will be motivated to develop a capability that could be used against us.”

Pakistan has been critical of warm ties U.S. President Joe Biden has forged with its long-time foe India, and maintains close ties with China. Some Chinese entities have been slapped with U.S. sanctions for supplying Islamabad’s ballistic missile program.

It conducted its first nuclear weapons test in 1998 – more than 20 years after India’s first test blast – and has built an extensive arsenal of ballistic missiles capable of lofting nuclear warheads.

The Bulletin of the American Scientists research organization estimates that Pakistan has a stockpile of about 170 warheads.

U.S.-Pakistani relations have undergone major ups and downs, including close Cold War ties that saw them support Afghan rebels against the 1979-89 Soviet occupation of Afghanistan.

Pakistan also was a key partner in the U.S. fight against al Qaeda following the Sept. 11, 2001, attacks on the United States, and has been a major non-NATO ally since 2004.

But ties also have been hurt by coups staged by the Pakistani military, its support for the Taliban’s 1996-2001 rule and its nuclear weapons program.

Several experts said Mr. Finer’s speech came as a major surprise.

“For a senior U.S. official to publicly link concerns about proliferation in Pakistan to a future direct threat to the U.S. homeland – this is a mighty dramatic development,” said Michael Kugelman of the Wilson Center think tank. – Reuters

Philippines may open 2025 with rate cut, Remolona says

The main office of the Bangko Sentral ng Pilipinas in Manila. — BW FILE PHOTO

The Philippine central bank is open to delivering another rate cut in its first monetary policy meeting next year, Governor Eli Remolona said Friday.

While the Federal Reserve is less dovish now, the Bangko Sentral ng Pilipinas is “still at the same trajectory as before” on monetary easing, Mr. Remolona said in an interview with Bloomberg Television’s David Ingles and Annabelle Droulers.

“We ourselves are neither more dovish nor less dovish,” the central bank chief said. Core inflation will likely ease next year, he added, supporting the case to further ease the policy rate which Mr. Remolona described as “still somewhat restrictive.”

The Philippine peso gained on Friday after closing at the record low of 59 to the greenback the day before. The nation’s benchmark stock index inched higher, bucking losses in the region.

The BSP capped off the year with a third quarter-point rate cut on Thursday, as inflation remained on target and economic growth slowed. It also signaled more rate cuts next year at a measured pace.

At the same time, the BSP flagged potential price risks from geopolitical developments, as the world contends with uncertainties over incoming US President Donald Trump’s economic policies.

Mr. Trump’s win has also triggered a resurgence in the US dollar, causing currencies around the world to slump. The BSP has been “more active than usual, but not that active” in the foreign exchange market, Mr. Remolona said Friday.

The central bank chief also said that monetary authorities are watching the peso “very closely” to ensure that its weakness won’t fan inflation in the Southeast Asian nation that imports oil and rice needs. — Bloomberg

BSP cuts rates by another 25 bps

A woman arranges canned goods inside a market in Quezon City, Nov. 22. The central bank raised its baseline inflation forecast to 3.3% for 2025 from 3.2% previously. — PHILIPPINE STAR/MIGUEL DE GUZMAN

By Luisa Maria Jacinta C. Jocson, Reporter

THE BANGKO SENTRAL ng Pilipinas (BSP) lowered its key rate for a third straight meeting on Thursday but signaled the possibility of fewer cuts in 2025.

The Monetary Board on Wednesday reduced the target reverse repurchase rate by 25 basis points (bps), bringing the key rate to 5.75% from 6%.

This was also in line with the expectations of 13 out of 16 analysts surveyed in a BusinessWorld poll last week.

Rates on the overnight deposit and lending facilities were also lowered to 5.25% and 6.25%, respectively.

The central bank has now slashed rates by a total of 75 bps this year since it began its easing cycle in August.

“Looking ahead, the Monetary Board will maintain a measured approach to monetary policy easing to ensure price stability conducive to sustainable economic growth and employment,” BSP Governor Eli M. Remolona, Jr. said.

He said that inflation is projected to stay within the 2-4% target range over the policy horizon.

“On balance, the within-target inflation outlook and well-anchored inflation expectations continue to support the BSP’s shift toward less restrictive monetary policy,” he said.

However, Mr. Remolona said the balance of risks to the inflation outlook continues to remain tilted to the upside, citing “potential upward adjustments in transport fares and electricity rates.”

“The impact of lower import tariffs on rice remains the main downside risk to inflation,” he added.

The central bank raised its baseline inflation forecast to 3.3% for 2025 (from 3.2%) and 3.5% for 2026 (from 3.4%). For this year, it also upwardly revised its forecast to 3.2% from 3.1% previously.

Meanwhile, the risk-adjusted forecasts were also increased to 3.2% this year (from 3.1%) and 3.4% for 2025 (from 3.3%). The risk-adjusted projection for 2026 was kept at 3.7%.

Both baseline and risk-adjusted forecasts remain within the BSP’s 2-4% target band.

“Nonetheless, the monetary authority will continue to closely monitor the emerging upside risks to inflation, notably geopolitical factors,” Mr. Remolona added.

Meanwhile, the BSP also expects domestic demand to “remain firm but subdued.”

“Private domestic spending is expected to be supported by easing inflation and improving labor market conditions. However, downside risks in the external environment could materialize and temper economic activity and market sentiment,” he said.

STILL ‘ON THE TIGHT SIDE’
Asked how much the BSP will cut in 2025, Mr. Remolona said: “In our discussion today, there was a sense that maybe 100 bps over 2025 would be too much, but zero would also be too little.”

He earlier said they could reduce rates in the 100-bp range for 2025, though not necessarily at every meeting or every quarter.

“Even with the 75 bps, from all our estimates, we’re still somewhat on the tight side. That for us is a kind of insurance. The reason we’re cutting in baby steps is because we’re not absolutely sure about inflation,” he said.

“We still worry that inflation might start to rise again. By cutting in baby steps, at this point, we’re still somewhat tight. That’s kind of insurance against a possible increase in inflation.”

If the data are not too “surprising,” the Monetary Board can continue its rate-cutting cycle, Mr. Remolona said.

“If there’s a big surprise then we may change the direction of monetary policy. But if the surprises are small enough then there’s no reason to really change the direction that we’re taking.”

PESO
Meanwhile, Mr. Remolona said the BSP is monitoring the peso and its potential impact on inflation.

“We are concerned about the pass-through. The pass-through tends to become important when there’s enough of a depreciation. So, there’s kind of a threshold and we’re still trying to refine our estimates of that threshold,” he said.

The peso closed at P59 per dollar on Thursday, weakening by one centavo from its P58.99 finish on Wednesday.

So far this year, the local currency has hit an all-time low thrice, including on Nov. 26 and on Nov. 21.

Analysts said that expectations of within-target inflation would allow the BSP to continue easing next year.

“The headline rate is currently only just above the 2% lower bound, and we reckon that it will largely continue to hug this level over the coming 12 months — barring an unexpected supply shock to prices — providing the (Monetary) Board with more room to ease policy,” Pantheon Chief Emerging Asia Economist Miguel Chanco said in a report.

Pantheon expects annual inflation to ease to 2.4% next year from 3.2% this year. It also expects 100 bps worth of reductions next year.

“The central bank may have room to cut interest rates further in the first half of 2025, supported by a favorable inflation outlook,” Bank of the Philippine Islands Lead Economist Emilio S. Neri, Jr. said.

“Barring any unforeseen supply shocks, inflation can remain within the BSP’s target range next year.”

Mr. Neri also cited expectations of further easing by the US Federal Reserve’s latest dot plot.

“The behavior of USD/PHP may remain manageable if the BSP’s pace of rate cuts aligns reasonably with the Fed’s trajectory,” he added.

The Fed on Wednesday lowered interest rates but signaled fewer rate cuts in 2025.

However, Mr. Neri noted that the BSP is unlikely to cut rates aggressively next year as “global price risks could thwart outsized monetary easing actions.”

The Monetary Board could deliver up to 50 bps worth of cuts for next year, he said.

“While the first half of the year may present opportunities, cutting rates in the latter half could be more challenging, as the Federal Reserve’s outlook could shift in response to President Trump’s potentially inflationary policies.”

“In an adverse scenario, higher tariffs and mass deportations may re-ignite inflation in the US, which could force global central banks to pivot to monetary tightening,” he added.

BoP deficit widens in November

REUTERS

THE COUNTRY’S balance of payments (BoP) deficit widened in November as the government made more repayments on foreign debt, the Bangko Sentral ng Pilipinas (BSP) said on Thursday.

Data from the central bank showed the BoP position widened to a $2.276-billion deficit in November from the $216-million gap a year ago. It also more than tripled from the $724-million deficit in October.

November also marked the widest deficit in 26 months or since the $2.339-billion shortfall recorded in September 2022.

Philippines: Balance of Payments (BoP) Position

The BoP measures the country’s transactions with the rest of the world at a given time. A deficit means more funds left the economy than what went in, while a surplus shows that more money entered the Philippines.

“The BoP deficit in November 2024 reflected the National Government’s (NG) net foreign currency withdrawals from its deposits with the BSP to settle its foreign currency debt obligations and pay for its various expenditures, and the BSP’s net foreign exchange operations,” it said.

Earlier data from the BSP showed that the Philippines’ external debt service burden declined by 3.8% to $8.68 billion in the January-to-August period.

Outstanding external debt hit a record $130.182 billion at the end of June. This brought the external debt-to-gross domestic product (GDP) ratio to 28.9% at the end of the second quarter.

In the first 11 months, the BoP stood at a surplus of $2.117 billion, 30% lower than the $3.03-billion surfeit in the same period a year earlier.

“Based on preliminary data, the decline in the cumulative BoP surplus was due to lower net receipts from trade in services and net foreign borrowings by the NG,” the central bank said.

The country’s trade deficit widened by 36.8% year on year to $5.8 billion in October, its widest trade gap in 26 months or since August 2022, data from the local statistics authority showed.

For the first 10 months, the trade deficit widened by 3.6% to $45.22 billion from the $43.64-billion gap a year ago.

“However, this decline was partly muted by the continued net inflows from personal remittances as well as net foreign portfolio and direct investments,” the BSP added.

In the first 10 months, cash remittances grew by 3% to $28.3 billion from $27.49 billion a year prior.

In the same period, BSP-registered foreign investments yielded a net inflow of $2.49 billion, a turnaround from the $715.43-million outflow in 2023.

Meanwhile, foreign direct investment (FDI) net inflows rose by 3.8% to $6.66 billion in the first nine months from $6.42 billion a year ago.

At its end-November position, the BoP reflected a final gross international reserve (GIR) level of $108.5 billion, down by 2.3% from the $111.1 billion as of end-October.

The dollar reserves were enough to cover 4.3 times the country’s short-term external debt based on residual maturity.

It is also equivalent to 7.7 months’ worth of imports of goods and payments of services and primary income.

An ample level of foreign exchange buffers safeguards an economy from market volatility and is an assurance of the country’s capability to pay debts in the event of an economic downturn.

This year, the BSP expects the country’s BoP position to end at a $2.3-billion surplus, equivalent to 0.5% of GDP.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the depreciation of the peso impacted on the net payment of foreign debt maturities.

The peso fell to the record-low P59-per-dollar level twice in November.

“For the coming months, the country’s GIR and BoP could still be supported by the continued growth in the country’s structural inflows from OFW (overseas Filipino worker) remittances, BPO revenues, exports, and relatively fast recovery in foreign tourism revenues,” Mr. Ricafort said.

He said further fundraising activities such as global bond issuances could also boost the BoP position.

Finance Secretary Ralph G. Recto has said they are looking to issue dollar- and euro-denominated bonds in the first half of 2025.

“Thus, still relatively high GIR at $108.5 billion could still strengthen the country’s external position, which is a key pillar for the country’s continued favorable credit ratings,” Mr. Ricafort said. — Luisa Maria Jacinta C. Jocson

Peso slips to record-low P59 on hawkish Fed cut

BW FILE PHOTO

By Aaron Michael C. Sy, Reporter

THE PESO sank to the all-time low of P59 against the US dollar anew on Thursday, following the US Federal Reserve’s hawkish cut.

The local unit closed at P59 per dollar on Thursday, weakening by one centavo from its P58.99 finish on Wednesday, Bankers Association of the Philippines data showed.

This was the third time the peso hit its historic low this year on Nov. 26 and Nov. 21. It has yet to breach this record, which was first set in October 2022.

The peso opened at P59 against the dollar, which was already its worst showing. Its intraday best was at P58.98 versus the greenback.

Dollars exchanged dropped to $1.099 billion on Thursday from $884.55 million on Wednesday.

The peso slipped against the dollar as the market reacted to the Fed’s cut and hawkish guidance for next year, Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

Fed officials see only two 25-basis-point (bp) rate cuts for next year, which would bring the Fed funds rate to the 3.75-4% range by end-2025.

“The market is forecasting a shallower trend for 2025 vs previously estimated,” he added.

Markets have forecasted only one 25-bp rate cut by the Fed next year, only a quarter of the 100 bps in cuts previously seen, Reuters reported. This would bring the US central bank’s policy rate to the 4-4.25% range.

The Federal Open Market Committee (FOMC) on Wednesday lowered its policy rate by 25 bps to the 4.25-4.5% range.

Fed Chair Jerome H. Powell’s signals of requiring fresh inflation progress for future rate cuts also caused equity prices to fall, Reyes Tacandong & Co. Senior Adviser Jonathan L. Ravelas said in a Viber message.

The dollar was generally stronger at new two-year highs on Thursday after the Fed signaled fewer rate cuts next year, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

He noted that the dollar was also supported by a weaker euro.

Mr. Ravelas added it was likely that the peso could breach the P59-per-dollar level within the year.

Mr. Ricafort said the Bangko Sentral ng Pilipinas (BSP) will continue to defend the peso against the dollar to keep it at below or at the P59-per-dollar level.

“Going forward, the performance of the US dollar-peso exchange rate would still be partly a function of intervention/defense as consistently seen for more than two years already at the record high closing rate of P59, which has been respected for now and since the latter part of September 2022,” he said.

For Friday, Mr. Ricafort sees the peso moving between P58.85 and P59 per dollar.

Limited quantity of new polymer notes out next week

COURTESY OF THE BANGKO SENTRAL NG PILIPINAS
The First Philippine Polymer Banknote Series is composed of the 1000-piso polymer banknote, as well as new polymer denominations: 500-, 100-, and 50-piso. — COURTESY OF THE BANGKO SENTRAL NG PILIPINAS

THE BANGKO SENTRAL ng Pilipinas (BSP) on Thursday unveiled its first series of polymer banknotes, which features the country’s protected and native species.

BSP Governor Eli M. Remolona, Jr. presented the Philippine polymer banknote series to President Ferdinand R. Marcos, Jr. in a ceremony in Malacañang.

The polymer series includes new denominations of P50, P100 and P500, as well as the P1,000 bill, which was first introduced in April 2022.

The new polymer bills are “smarter” than their paper counterparts because they have advanced anti-counterfeiting features and a smaller carbon footprint, Mr. Remolona said.

BSP Assistant Governor Mary Anne Lim told reporters on the sidelines of the ceremony that the new polymer notes will be available in “limited” quantities in the greater Metro Manila area by Dec. 23.

In a separate statement, the BSP said the new denominations of the polymer series may initially be withdrawn over the counter in banks. The P500 and P100 polymer notes will later be available through automated teller machines (ATMs).

Mr. Remolona said the polymer series aims to raise awareness of endangered species, as well as “serves as a symbol of Filipino identity, and fosters national pride.”

The BSP in April 2022 introduced the new P1,000 polymer note, which featured the sampaguita and the Philippine eagle.

The new P500 note features the Visayan spotted dear, a creature found only in the rainforests of Panay and in Negros, and the orchid called acanthophippium mantinianum.

The new P100 note features the Palawan peacock-pheasant and the orchid called Ceratocentron fesseli, while the P50 polymer showcases the Visayan leopard cat and flower called Vidal’s lanutan.

Mr. Remolana said the new notes are cleaner “because viruses and bacteria do not survive on polymer as long as they do on paper.”

The new bills are also stronger “because they last longer than their paper counterparts.”

In his speech, Mr. Marcos said the first Philippine polymer banknote series marks a historic moment for the country.

“It builds on the success of the one-thousand-peso polymer note introduced in April of 2022 and aligns with the global best practice of updating currency features every 10 years,” he added.

Mr. Marcos said over 40 countries including Australia, Canada, the United Kingdom, and Singapore have already adopted polymer banknotes “due to their proven benefits.”

Mr. Marcos said unlike paper bills, which wear out after about a year and a half, “polymer banknotes can last up to seven and a half years — five times longer.”

The new polymer bills are a departure from the paper notes that feature Philippine heroes.

The Philippines is becoming an increasingly cashless economy “but there will long be a need for cash especially for people and businesses with the least access to technology,” Mr. Remolana said.

“It is especially for them that we are adding these polymer notes to our currency.” — Kyle Aristophere T. Atienza

Empowering modern living through cars

Cars have evolved far beyond simple transportation tools to symbols of identity and lifestyle. A study published in the open-access journal Transport Reviews said that the decision to purchase a car and the type of vehicle selected are influenced by values, societal norms, and lifestyle aspirations.

In professional settings, the type of car a person drives can influence perceptions of success and financial stability. Younger individuals, particularly those between the ages of 17 and 23, see car ownership as a symbol of freedom and independence.

At the same time, rising environmental awareness has changed consumer attitudes toward vehicles as more buyers now seek brands that align with sustainability goals. As a result, electric vehicles (EVs), once seen as niche products, are now becoming mainstream, with major automakers increasing investments in their development.

For instance, the Honda Civic RS e:HEV is the first electrified variant of this model. It features a 2.0-liter four-cylinder engine with 16 valves and a double overhead cam, paired with two electric motors and an electrical continuously variable transmission (E-CVT), along with a high-efficiency lithium-ion battery. The introduction of this model is intended to attract customers who are interested in both performance and eco-friendly vehicles, aligning with global trends towards greener mobility solutions.

From interior to exterior

The design and functionality of modern cars significantly impact the lifestyles of their owners, often shaping not just the driving experience but also the decision to purchase. A study from the Journal of Product Innovation Management notes that emotional considerations often outweigh practicality, with comfort being a major influence on buyer choices.

Modern car seats are engineered to be adjustable and supportive. They often feature multiple adjustments for height, depth, and lumbar support to accommodate various body shapes and sizes. According to a study published in the peer-reviewed journal PLOS One, a well-designed seat can significantly reduce discomfort during long drives.

McKinsey & Company reported that cabin experience is projected to dominate headlines with 71% of automotive executives expecting vehicle interiors to become more important. Features like ample storage and flexible seating arrangements turn cars into multifunctional spaces for both work and leisure. Families, for example, often opt for larger vehicles that provide comfort for adults while accommodating children — as seen in Mitsubishi’s new seven-seater SUV DST Concept.

Compact vehicles, on the other hand, focus on efficiency without compromising space. The Nissan Magnite, a recent addition to the subcompact crossover market in the Philippines, offers a surprisingly spacious interior despite its size. Built on the CMF-A+ platform, it demonstrates how thoughtful design can maximize space within smaller cars.

Customization options also factor in the decision-making process. The 2024 Consumer Automotive Personalization Survey revealed that over 40% of potential buyers consider vehicle personalization important when making a purchase. Customizable features like color choices, upholstery materials, and technology options allow owners to express their personal style. For instance, Mazda Philippines now offers its AutoExe customization program for buyers looking to personalize their vehicles.

Exterior design is equally important, influencing both aesthetics and performance. Streamlined body shapes improve aerodynamic efficiency, which enhances ride quality by reducing wind resistance and creating a quieter cabin.

Take the limited-edition CR-V V Turbo, for example. While the overall styling remains consistent with the standard CR-V design, Honda has enhanced the CR-V V’s exterior with sporty accessories such as an exhaust pipe finisher, a front aero bumper, and a rear under spoiler, all of which contribute to a more dynamic and premium appearance without sacrificing the vehicle’s signature style.

Inside, the CR-V V Turbo is equipped with practical accessories such as a seat back protector, cargo tray, and door visor. Under the hood, the car is powered by a 1.5-liter, four-cylinder VTEC Turbo engine, producing an impressive 190 PS and 240 Nm of torque. This engine is paired with a CVT that drives the front wheels, delivering smooth acceleration and fuel efficiency for both city and highway driving.

Additionally, the new CR-V V Turbo is equipped with Honda Sensing, the brand’s advanced driver-assistance system (ADAS), which includes safety features such as collision mitigation braking, adaptive cruise control, and lane-keeping assist.

For performance enthusiasts, Honda has unveiled the Mugen Civic Type R Group A at the 2024 Philippine International Motor Show (PIMS). The special edition of the Civic Type R features enhanced aerodynamics, a sportier look, and performance upgrades with only five units available.

Car connectivity

Modern vehicles are increasingly equipped with advanced technologies to improve safety, convenience, and entertainment. A McKinsey Mobility Consumer Pulse Survey found that demand for in-car connectivity continues to rise, with half of car buyers expecting more advanced digital features in their vehicles.

The survey also found that half of all car owners are expecting more advanced in-car digital features in the future. EV buyers, in particular, are highly interested in connectivity, with 69% stating they want more of these solutions compared to 47% of traditional car buyers.

Nearly half of car buyers now consider features like Apple CarPlay or Android Auto essential. These systems have become integral for drivers who want the same kind of functionality in their cars as they do with their smartphones. In response, car manufacturers are equipping their vehicles with high-speed connectivity options like 4G and 5G to enable smooth integration with phones and other devices. This connectivity allows drivers and passengers to stream content directly from their cars, turning travel time into a more enjoyable experience.

Tech-driven features that boost convenience are also gaining traction, like intelligent parking systems, in-car payment options, and machine learning-based personalization tools. Such systems track user preferences and behaviors, offering customized playlists, movie suggestions, or even audiobooks, based on the journey.

Latest car models such as the Changan S7 EV and the Kia EV5 are equipped with a state-of-the-art infotainment system and support seamless smartphone connectivity through Android Auto and Apple CarPlay.

The new BYD Seal EV also supports wireless charging for two devices, Apple CarPlay and Android Auto, as well as intelligent driver aids like lane departure warning, adaptive cruise control, and automatic emergency braking.

Meanwhile, Honda CONNECT, the brand’s advanced telematics platform, enhances connectivity and safety further. Through a smartphone app, drivers can access real-time diagnostics, vehicle alerts, and features like remote control, geofencing, speed notifications, and Find My Car. The system also emphasizes safety with features like collision detection and security alarm monitoring. — Mhicole A. Moral

BoI exceeds investment approvals target

WORLDBANK.ORG

THE BOARD of Investments (BoI) approved P1.62 trillion worth of investment pledges this year, the highest level in 57 years.

The Department of Trade and Industry (DTI) in a statement on Thursday said the agency surpassed its investment target for the year, fueled by better-than-expected performances from the BoI and the Philippine Economic Zone Authority (PEZA).

“The P1.62 trillion in investment approvals for 2024 is a powerful vote of confidence from both local and international investors. This reflects the government’s commitment to creating a stable and attractive business environment in the Philippines and attests to the effectiveness of our policies and reforms,” Trade Secretary Ma. Cristina A. Roque said.

Investment approvals by the BoI exceeded the revised P1.6-trillion target by 1.25%, and the original P1.5-trillion target by 8%.

Year on year, BoI-approved investment pledges rose 28.57% from the P1.26 trillion in pledges greenlit in 2023.

The DTI said the renewable energy (RE) sector accounted for the bulk or P1.38 trillion of the total investment pledges. Investments pledged for the RE sector rose by an annual 40%, as the government opened up the sector to full foreign ownership. Foreign ownership of RE projects was previously limited to 40%.

Other top performing sectors are air and water transport, which had attracted P121.2 billion in investment pledges, and real estate activities (mass housing) with P37.26 billion.

Investment pledges for the manufacturing sector hit P31.67 billion, while those for the water supply, sewerage, waste management, and remediation sector reached P16.28 billion.

Among the top approved projects were the Anuhan Power, Inc.’s 1,400 megawatt (MW) Pakil Hydroelectric Power Project worth P296.98 billion; Terra Solar Philippines, Inc.’s 3,500-MW Terra Solar project worth P185.28 billion; and the Sitex Windkraft Corp.’s 600-MW San Miguel Bay Offshore Wind project worth P129.59 billion.

Other projects include the New NAIA Infra Corp.’s Ninoy Aquino International Airport Rehabilitation project worth P114.9 billion, and the Jet Stream Windkraft Corp.’s Guimaras Strait Offshore Wind project worth P114.7 billion.

Of the total investments for the period, P1.23 trillion came from local investors, while P393.31 billion came from foreign investors.

The top international sources were Switzerland (P289.06 billion), the Netherlands (P44.5 billion), Japan (P14.67 billion), South Korea (P12.73 billion), Singapore (P7.38 billion), Thailand (P3.22 billion), and the United States (P2.54 billion).

Meanwhile, PEZA approved P214 billion in investment pledges this year, exceeding its P200-billion investment target by 7%. 

“Its focus on developing and expanding its ecozones, attracting high-growth industries and providing world-class support services to investors solidified the Philippines’ position as a premier destination for foreign direct investment,” the DTI said.

Ms. Roque said the DTI will “continue to refine and implement forward-looking policies that attract investments in these key industries, ensuring that the Philippines remains a prime destination for innovation and growth.” — A.H.Halili

Toyota Motor Philippines and Ernie Gawilan lead ‘Start Your Impossible’ National Coastal Cleanup and Mangrove Planting Day

Ernie Gawilan takes a group photo with volunteers from Toyota Motor Philippines, Toyota Davao group and representatives from Samal’s City Environment and Natural Resources Office.

Filipino paralympic swimmer pushes for cleaner waters through collective action from volunteers from all over the country

Toyota Motor Philippines (TMP), in collaboration with Paralympic swimmer Ernie Gawilan, successfully concluded the “Start Your Impossible” National Coastal Cleanup and Mangrove Planting Day, held last Dec. 14, 2024. The event, held in 33 locations across the Philippines, aimed to inspire communities to protect marine ecosystems and tackle coastal pollution, supporting Gawilan’s social commitment as a Global Team Toyota Athlete (GTTA).

The event, which brought together 1,302 volunteers from Toyota Motor Philippines, and the Toyota dealer network — and guided by the local government unit and environment offices — highlighted the importance of preserving the marine ecosystem and combating the pressing issue of coastal pollution.

The group of volunteers collected 789 bags of plastic waste and debris. Alongside the cleanup efforts, 10,354 mangrove seedlings were planted, further contributing to the restoration of critical mangrove forests in various coastal communities.

Ernie Gawilan joins in on planting mangrove seedlings.

Ernie Gawilan, an Asian Para Games gold medalist and a proud Davaoeño, played an instrumental role in rallying the community for a cleaner future. This event holds dear to him, as Samal Island is the place which shaped him to become the athlete that he is today.

This activity is part of Ernie’s project under Toyota’s global “Start Your Impossible” program which empowers athletes not only to pursue sports excellence but also to become advocates for social good. For Gawilan, championing cleaner waters and driving environmental awareness have become central to his mission of creating meaningful change beyond sports.

Three mangrove seedlings must be planted to allow at least one to thrive.

“Nagpapasalamat ako sa Toyota family sa pagtulong sa akin sa pagtatanim at coastal cleanup ngayong araw (I am grateful to the Toyota family for helping me with the tree planting and the coastal cleanup today),” Ernie Gawilan shared in his speech at the Samal Island site of the nationwide activity. “Sana marami akong na-inspire, at pagtulungan natin na ma-preserve ang kalikasan natin, lalo na ang dagat, kasi dito po ako nagsimula (I hope I have inspired many, and let us work together to preserve our environment, especially the ocean, because this is where I started),” he added.

“Ernie is a dual hero, we have also been working alongside him in championing cleaner waters through various cleanup and planting projects” Shared Elijah Sue Marcial, TMP Vice-President for Network Sales & Systems Cluster. “This advocacy was chosen personally by Ernie as a way to give back to the communities that supported him toward his dreams,” she added.

“All of us who work for Toyota are very proud that Toyota has always worked with stakeholders and communities to give back and to Inspire,” shared Denise Lim, President of Toyota Davao, Inc. “Today, we are here to continue on Toyota’s Environmental efforts together with a truly remarkable and inspiring guest of honor,” She added.

Additionally, a volunteer from Toyota Davao City, Inc. shared his thoughts on Ernie’s Mission for cleaner waters:

“Malaki and naiambag niya sa coastal cleanup at pagtatanim ng mga bakawan (He made a significant contribution to the coastal cleanup and the planting of mangroves),” a volunteer from Toyota Davao City, Inc. shared. “Dahil sa kanyang dedikasyon at malasakit sa kalikasan, nagawa nating sama-samang maglinis at magtanim para sa mas maayos at mas luntian na hinaharap (Because of his dedication and care for the environment, we were able to clean up and plant together for a better and greener future),” he added.

For the latest updates on Toyota products, services, events, and promos, follow Toyota Motor Philippines on Facebook and Instagram, ToyotaMotorPH on X, and join the ToyotaPH community on Viber.

 

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Making sustainable lifestyle possible on the road

Photo from Freepik

Depending on its form or function, an automobile enables and exhibits whether a motorist embraces a practical lifestyle or a sophisticated one. In an aim to make it easier for people to get from one place to another, vehicles are also allowing households to have a more convenient means of living. Such convenience, however, can put the environment at risk.

According to the United States Environmental Protection Agency, a typical passenger vehicle emits about 4.6 metric tons of carbon dioxide per year, assuming that the average gasoline vehicle on the road drives around 11,500 miles per year has a fuel economy of about 22.2 miles per gallon. Put into local context, where registered gasoline-powered vehicles reached 11.23 million in 2023 according to the Philippine Statistics Authority, such emissions cannot be taken for granted. The Department of Environment and Natural Resources-Environmental Management Bureau even attributed air pollution in the National Capital Region (NCR) to emissions from heavy vehicular traffic.

Recognizing such impacts, the automotive industry is equipping newer vehicles with eco-friendly features to allow consumers and push the market to embrace sustainable lifestyles for a less polluted environment.

Self-charging batteries

Available on hybrid electric vehicles, the self-charging feature, also referred to as “energy on-the-go,” allows the vehicle to automatically charge when it is in use, since its heat is generated whether the vehicle is driving, slowing down, or braking, constantly recovering energy while on the road. There’s no need to plug in the batteries anymore or charge overnight as it is always on the go, for the convenience for drivers, especially to those always rushing around.

Such feature is considered to make the vehicle environmentally-friendly as it reduces carbon emission levels, making models equipped with self-charging batteries a more sustainable option compared to other models.

Active grille shutter

Another sustainable feature being installed in vehicles is the active grill shutter. Located at the front of the vehicle, it is designed to manage airflow and improve energy and fuel efficiencies. The shutter controls the engine heat, then stores and dissipates it in the vehicle’s energy compartment when driving. When driving at high speeds, the shutter automatically closes its air flaps, pushing air away from the engine compartment; and when it heats up, the shutters open, letting the air cool off. Active grill shutters are used in vehicles to reduce the drag coefficient as well to cut down carbon emissions and fuel consumption. For these functions, this feature is fitting for those looking for the best driving experience and aerodynamic performance. Active grill shutters can be found in both combustion and electric motor types.

Electric Propulsion Systems

Eco-friendly cars also utilize electric propulsion systems technology, which transforms electric energy into driving power in order to optimize driving efficiency. Typically seen in electric vehicles (EVs), the system takes care of various motor tasks, including managing and controlling the motor, battery, powertrain coordination, and temperature, resulting in better driving conditions.

Electric propulsion systems also come with other bunch of perks: optimal battery management, monitoring temperature, modifying power delivery, providing smart control systems, and a precise powertrain. This feature also combines with the Motor Control Unit (MCU), enabling longer driving distances and reduced environmental impact. Through electric propulsion systems, EVs are becoming a more appealing eco-friendly option on the road.

Turbochargers

Turbocharging is another feature that are making roads greener. A turbocharger works by pushing air into the engine combustion chambers, and by compressing that air, it makes it denser, enabling the engine to burn more fuel and generate greater power. More than enhancing engine performance, this technology also helps save fuel, meaning more energy can be used for fuel power. Turbocharged engines deliver a great mix of extra power and efficiency, which makes them popular with many types of vehicles. Turbocharged engines help accelerate vehicle performance and responsiveness, giving drivers the power and efficiency without consuming too much guzzling gas. — Angela Kiara S. Brillantes

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