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Sean ‘Diddy’ Combs cleared of most serious charges, to remain jailed for now

Sean “Diddy” Combs on the talk show Late Night with Seth Myers. — IMDB

NEW YORK — Sean “Diddy” Combs will remain behind bars for now, a judge ruled on Wednesday, after the music mogul was cleared of sex trafficking and racketeering charges that could have put him behind bars for life but found guilty of lesser prostitution-related offenses.

In rejecting the defense’s request for bail, US District Judge Arun Subramanian said prosecutors had presented ample evidence at Mr. Combs’ trial that he had committed violent acts and should remain in jail until his sentencing on two counts of transportation to engage in prostitution.

“It is impossible for the defendant to demonstrate by clear and convincing evidence that he poses no danger,” Mr. Subramanian said during a hearing in Manhattan federal court hours after the verdict.

The seven-week trial focused on allegations that Mr. Combs forced two of his former girlfriends to partake in drug-fueled, days-long sexual performances sometimes known as “Freak Offs”  with male sex workers in hotel rooms while Mr. Combs watched, masturbated and occasionally filmed.

Both women — the rhythm and blues singer Casandra “Cassie” Ventura, and a woman known in court by the pseudonym Jane — testified that he beat them and threatened to withhold financial support or leak sexually explicit images of them.

As Mr. Subramanian denied bail, Mr. Combs stared straight ahead and one of his family members in the courtroom gallery hung their head.

It was a far cry from the jubilant reaction after the verdict.

“I’m gonna be home soon,” Mr. Combs said then, prompting applause and cheers from his family and supporters. “Thank you, I love you.”

The 12-member jury unanimously acquitted Mr. Combs of racketeering conspiracy and two counts of sex trafficking Ms. Ventura and Jane. The Bad Boy Records founder could have faced life in prison if convicted on those counts.

Mr. Combs, once famed for hosting lavish parties for the cultural elite in luxurious locales like the Hamptons and Saint-Tropez, had pleaded not guilty to all five counts.

The verdict was overall a win for Mr. Combs, a former billionaire known for elevating hip-hop in American culture.

“It’s a great victory for Sean Combs, it’s a great victory for the jury system,” defense lawyer Marc Agnifilo told reporters.

Under federal law, Mr. Combs faces up to 10 years in prison on each of the two prostitution counts. But prosecutors acknowledged in a court filing that federal sentencing guidelines appeared to recommend a sentence of at most 5-1/4 years total, well below the statutory maximum. Mr. Combs’ lawyers argued that two years would be the outer limit.

The judge suggested sentencing Mr. Combs on Oct. 3, but will consider a defense request for an earlier date.

Prosecutors argued Mr. Combs should remain in jail because he remained a danger, pointing to Jane’s trial testimony that he assaulted her in June 2024 while aware he was under investigation.

“He’s an extremely violent man with an extraordinarily dangerous temper who has shown no remorse,” prosecutor Maurene Comey said in court.

ACQUITTAL ON THREE CHARGES
The jury’s acquittal on the most serious charges signaled that the prosecution failed to draw a direct line between Mr. Combs’ abuse of Ms. Ventura and Jane and their participation in the sexual performances.

The defense acknowledged that Mr. Combs engaged in domestic violence, but argued that Ms. Ventura and Jane were strong, independent women who consensually took part in the sexual performances because they wanted to please Mr. Combs.

Sarah Krissoff, a former federal prosecutor in Manhattan, said the jury may have viewed Mr. Combs’ conduct as evidence of toxic romantic relationships, but not sex trafficking.

In a statement after the verdict, Manhattan US Attorney Jay Clayton and Homeland Security Investigations Special Agent in Charge Ricky Patel said sex crimes were “all too present” across society and that Americans wanted it to stop.

Mr. Combs still faces dozens of civil lawsuits accusing him of abuse. Ms. Ventura sued him in November 2023 for sex trafficking, and they settled a day later for $20 million.

Mr. Combs, once feted for turning artists like Notorious B.I.G. and Usher into stars, has denied all wrongdoing.

After the verdict, Ms. Ventura’s lawyer Douglas Wigdor said in a statement that she had “paved the way” for Mr. Combs’ conviction on the prostitution counts. — Reuters

Malasakit and Well-Being: Finding stability in volatility

STOCK PHOTO | Image by Pikisuperstar from Freepik

Work today is not just about productivity, but also humanity. Despite widespread recognition that employee well-being is essential, Filipino organizations continue to grapple with ensuring targets are met while dealing with relentless pressures — rapid technological advancements, economic volatility, and evolving workplace expectations. In particular, automation and AI disrupt job security, global economic shifts affect local industries, and mounting workloads create stress and burnout.

Recent developments such as DeepSeek; US President Donald Trump’s tariff announcements; changing diversity, equity, and inclusion (DEI) priorities; declining environmental, social, and governance (ESG) focus; and local politics threaten organizational stability, leaving both leaders and employees vulnerable to anxiety, exhaustion, and disengagement.

Sadly, stress is a daily reality for Filipinos. The Gallup State of the Global Workplace 2025 reports that nearly half (47%) of its Filipino respondents reported daily stress. AON Philippines reports that one in three (31%) lower income employees experiences chronic workplace stress. Great Place to Work Philippines, a company that specializes in helping organizations build a positive employee culture, states that only one in five (22%) of employees enjoy high levels of well-being. These findings highlight the urgent need for organizations to go beyond rhetoric and embed well-being into company culture and people strategy.

But employee well-being is more than just physical health. It is the foundation of engagement, performance, and loyalty. Employee well-being has been defined as “a state of being happy, prosperous, and healthy, both physically, mentally, psychologically, and socioeconomically.” Research published in Management and Labour Studies in 2023 shows that employees who feel supported in their well-being are more productive, resilient, and committed to their organizations. In contrast, burnout leads to absenteeism, quiet quitting, and high turnover rates. In simple terms, well-being is not just a human resource issue; it is a business necessity.

Amid this backdrop, the Filipino workplace culture presents unique challenges for well-being. Unlike in Western cultures, our deeply ingrained cultural values such as hierarchy and collectivism shape how Filipinos approach relationships, work, and overall well-being. For instance, respect for authority and utang na loob (debt of gratitude) encourage Filipinos to be loyal, respectful, and obedient to those in superior positions. Group values such as bayanihan (going out of one’s way to help others) and pakikisama (getting along with others) promote a spirit of community, group responsibility, and maintaining harmony. However, these same values can prevent employees from speaking up about well-being concerns such as excessive workloads, mental health issues, or even potential solutions for fear of being perceived as challenging authority or being pabibo (showing off). Furthermore, indirect conflict resolution, often through tsismis (gossip) or parinig (indirect remarks or dropping hints to convey a message) discourage open communication. Similarly, the expectation to work overtime as a sign of dedication remains widespread, especially for people aiming for promotions, leaving many employees hesitant to set boundaries. When left unchecked, these cultural tendencies contribute to stress, burnout, and disengagement.

How can organizations ensure that well-being is not just an afterthought, but a business priority? Well, Filipino stakeholders can convey malasakit (genuine care) by addressing both systemic challenges and cultural barriers. Doing so requires action at different levels.

First, organizations must normalize conversations about mental health and work stress. Confidential counseling, support groups, and stress management programs should be integrated into company culture — not just as benefits on paper, but as actively promoted, stigma-free resources. Well-being needs to be prioritized, not penalized. Leaders should model openness by sharing personal insights and reinforcing that seeking support is a strength, not a weakness. For example, the Jollibee Group, the People Management Association of the Philippines (PMAP) 2024 Employer of the Year Awardee, provides employee assistance programs not only to employees, but also to their dependents.

Second, leaders must integrate well-being into performance management. Regular check-ins, coaching, and mentoring should emphasize both business goals and employee well-being as key success metrics. Too often, workplaces equate dedication with exhaustion. Leaders need to encourage employees to perform at their best without sacrificing their well-being. This requires leadership training in emotional intelligence, empathetic communication, workload management, and psychological safety.

Finally, employees must reclaim their well-being by taking charge of what they can control. This means setting boundaries, prioritizing tasks, directly dealing with disagreements, and using leave credits without guilt — a practice that many Filipinos avoid out of fear of being perceived as lazy. But self-care is not selfish; it is a prerequisite for sustainable performance. Beyond personal habits such as proper sleep and exercise, employees should feel empowered to advocate for better work conditions and to openly discuss well-being concerns with their leaders.

Overall, a thriving workforce is built on a culture of care and accountability. Organizations must redefine success — not just by business metrics, but also through malasakit. By integrating well-being into leadership, workplace culture, and HR strategies, businesses can create resilient, high-performing teams that excel even in volatile times.

 

Hannibal George Marchan teaches at De La Salle University. He is also a keynote speaker, workshop and team building facilitator, and executive coach for LHH, Quintegral, HumanDev, and Kaizen Leadership Asia.

hannibal.marchan@dlsu.edu.ph

Making character references truly count

I’m the recruitment manager of a medium-sized establishment. We don’t require character references, especially when certain job applicants have proven their worth during our intensive interviews. Am I doing it right? — Lost Lamb.

In the era of AI, psychometric tools, and applicant tracking systems, the humble, age-old character references may appear irrelevant and unwanted. Many times, we ditch character references who give exaggerated recommendations. So, what’s the use? Is that a good reason to ignore them?

Of course not. Don’t be too quick to dismiss references. When done right, character references can offer powerful insight into a candidate’s true self — something no résumé, chatbot, or even a deep-dive stress interview can capture.

But you’re right. Many reference checks are ineffective if you don’t exercise critical thinking. Anyway, you can only do it if you’re ready to decide between the top two contenders in the shortlist. What’s important is to expect that references may not give you an objective answer.

You can only know the truth when you dig deeper, assuming that character references are approachable, friendly, and accommodating.

RIGHT STRATEGIES
If thoughtfully and thoroughly consulted, references can help you answer many questions every hiring manager wrestles with. Here’s how to transform character references into effective allies for smart hiring. Note, however, that the following strategies may apply only for candidates vying for key and sensitive managerial posts:

One, ask the right people. Job candidates would always give you the names of people who are friendly to them. That’s understandable. However, as a hiring manager, your job is to ask for specific details and not just praise from the right people. You can do this by asking for the names of their former direct bosses and not just office colleagues.

One caveat, though. Don’t do this when the applicants are still employed, or you’ll risk damaging their career in that organization. Better, if you can talk to their past employers. If possible, ask for the names of people who don’t always agree with them on certain issues.

Two, settle for three references. Other than the candidates’ direct boss, talk to their former colleagues who have worked with them in collaborative roles. Talk to objective references who can speak to the candidates’ competence, character, and integrity.

Again, be careful with this approach as you don’t want to destroy the candidates’ careers by talking to many people who can spill the beans unnecessarily.

Three, know their specific stories. Don’t be tempted to ask — “Would you rehire this person?” This question is vague and subjective. More often, the answer reflects personal bias or internal policies, not the candidate’s actual performance. Instead, ask the following behavioral and insightful questions that could yield meaningful insights:

Can you describe a situation when the candidate made a serious mistake? In what way did they handle it? How did they respond to critical, negative feedback? What strengths did they bring to your organization? What challenges did they face?

Four, read between the lines. What isn’t said is more revealing than what is said out loud. Be cautious if a reference speaks in glowing but vague terms. Imagine hearing this — “he’s a great guy, always smiling.” If the reference struggles to give specific examples, that’s a red flag.

Likewise, listen and understand for long pauses, hesitation, faint praise, and polite evasions. You have to understand this as people avoid direct criticism out of fear of legal consequences or personal discomfort. Trust your instinct when something is a bit off.

Five, understand but double-check. Validate the information against what was stated in the candidate’s resume or what came up during the interview. Did the candidate lead a cross-functional project that yielded millions? Did they leave the job voluntarily, or was there a story behind it?

It’s not about catching the candidates in a lie, but about gaining clarity. That’s where you should be able to reconcile different stories.

Six, discover the personal bias. Character references are not neutral. Many of them are supporters. Some are reluctant whistleblowers. They’re playing it safe, just enough not to get sued. Recognize that cultural norms may discourage people from speaking negatively, even if it’s warranted.

Some references may be overly enthusiastic because of loyalty. Others may refrain from giving a candidate’s strengths out of rivalry or resentment.

NOT A DECIDING FACTOR
Seeking the character references’ opinion is not obsolete. But it’s often underutilized. When you ask the right people the right questions, listen carefully to the answers. You’ll gain a rare window into how a person shows up when things aren’t perfect.

Reference checks should never be the only deciding factor. They’re like dessert, not the main course. They may be used only alongside in-depth interviews, work samples, and other related hiring processes.

In a world that thrives on trust, culture, and collaboration, references are your greatest allies, if you know how to handle them well.

 

Ask questions and receive Rey Elbo’s insights for free. E-mail elbonomics@gmail.com or DM him on Facebook, LinkedIn, X, or via https://reyelbo.com. Anonymity is guaranteed.

Women breaking barriers

Women, accounting for half of the labor force in the Philippines, are making waves in the business world, shattering glass ceilings. Next Generation of Women Corporate Directors (NOWCD) Chairman Aurora “Boots” Garcia recently said that the number of women directors in boards increased from 18% in 2020 to 21% in 2023, which shows progress. Hopefully, the numbers would still improve.

The NOWCD forum with the theme “Breaking Barriers: Women Leading in Business and Beyond” was held on June 23 at the BPI Wealth Lounge in Ayala Triangle Gardens. The keynote speaker was Mariana Zobel de Ayala, managing director of Ayala Corp., with powerhouse panelists Robina Gokongwei, chair of Robinsons Retail Holdings; Colonel Francel Padilla, spokesperson of the Armed Forces of the Philippines (AFP); and Dr. Jean Franco, professor at the University of the Philippines’ Department of Political Science. The forum was ably moderated by Julia Abad, executive director of the Far Eastern University Public Policy Center (FEU PPC).

At the forum, Patricia Basilio, FEU PPC data analyst, presented a research paper on gender attitudes. She said that progress has been made in advancing gender equality worldwide, but alarmingly, younger males are becoming more anti-feminist than their older counterparts and female peers.

In the Philippines, a college survey showed that many male college students view gender equality as a “burden” to business. The study also showed that the full potential of women in the workforce remains unrealized due to the presence of gender bias that often perpetuates stereotypes regarding workplace roles (for example, not all men want to be breadwinners, or not all women prefer to stay at home). Also, in both private businesses and the government, there is an underrepresentation of women. The concern is that if unchallenged, these students could carry these biases when they take leadership roles in the future. It is therefore important to engage young people at every opportunity, be it through schools, social media, families, and churches, among others, to help them shift away from their sexist attitudes before they harden.

Keynote speaker Ms. Mariana shared about her experiences in the Ayala Group. She highlighted standout Ayala women leaders like MeAnn Dy, the first woman president of Ayala Land, Inc.; Martha Sazon of GCash; executive vice-president Ginbee Go of BPI Consumer Banking; and Theresa Marcial, head of BPI Wealth.

AFP Spokesperson Francel spoke about her own difficult experiences in the male-dominated military sector. “You need to bring your own chair to get a seat at the table,” she said. Still, there is hope as technology is opening doors. Artificial intelligence is leveling the field, with women topping the military exams. How can men offer help? Her immediate response: “Just letting go. Give [them] a free hand.”

A number of women leaders were also present at the event: former Securities and Exchange Commission Chairman Tess Herbosa, Maritess Pineda, KPMG’s Sharon Daoyon, Aboitiz InfraCapital President Cosette Canilao, Vanee Gosiengfiao of Sanofi, Philippine Bank of Communications President Patricia May Sy (her home made breads are so good!), Karen de Venecia, PLDT director Marife Zamora, and Karen Roa, president of Filipina CEO Circle, among others.

At my table was Karen Roa who recently completed  her PhD in Leadership Studies from Ateneo despite having a full-time job as president of First Metro Asset Management. Even while at the top, one has to learn continuously. When I asked about her thesis, she responded: “The study explores the moral identity traits of Filipino finance executives and examines their influence on ethical leadership behavior. The findings revealed a distinct moral identity profile among Filipino finance leaders highlighting traits such as integrity fairness, responsibility, and respectfulness. However, regression analysis showed no significant relationship between moral identity traits and perceived ethical leadership behavior. This suggests that there is a moral identity within the Philippine context, but it doesn’t translate into observable ethical leadership in organizational settings.” A disconnect seems to exist — a sign that values must be clearly communicated, and reinforced by actions, systems and even culture.

Thank you to the amazing NOWCD Events team headed by Gianna Montinola, supported by Tere and her BPI Wealth Team who ensured quality service from parking, to greetings, to a wonderful lunch setup, and even tokens. Congratulations! Women power indeed!

The NOWCD event was inspiring, with excellent learnings not only from the speakers but the attendees as well. The forum is certainly a push forward towards NOWCD’s goal to develop women to become drivers of visionary and effective boards.

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

 

Flor G. Tarriela is a banker by profession and an environmentalist/ gardener.

Meralco sees recovery in energy sales volume by second half

MERALCO.COM.PH

POWER distributor Manila Electric Co. (Meralco) expects a recovery in energy sales volume by the second half of the year, driven by a pickup in certain sectors within the commercial and industrial segments.

“On the second half, I think there will be some sort of a recovery,” Meralco Senior Vice-President and Chief Revenue Officer Ferdinand O. Geluz told reporters on Thursday.

Mr. Geluz said they expect the impact of the exit of Philippine offshore gaming operators (POGOs) last year — which affected the power consumption of several key commercial subsegments such as real estate and retail trade — to “normalize.”

The energization of data centers last year may also affect sales due to anticipated demand from their clients.

“We’re seeing some uptick in the construction industry, cement as well as glass. And somehow still after a long period of downturn, we are seeing a slight growth,” he said.

Meanwhile, Meralco expects “flattish” growth in energy sales volume for the first half, due to cooler weather during the period.

For this year, Meralco is targeting a 4.5% increase in energy sales volume, or at least 56,000 gigawatt-hours (GWh).

In 2024, Meralco’s energy sales volume rose by 6.4% to 54,325 GWh from 51,044 GWh in the previous year, driven by warmer temperatures due to El Niño and sustained customer energizations.

This exceeded the company’s target of 53,473 GWh for the year. 

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

How PSEi member stocks performed — July 3, 2025

Here’s a quick glance at how PSEi stocks fared on Thursday, July 3, 2025.

‘Minimal’ hit to remittances expected from Trump tax bill

PHILIPPINE STAR/ MIGUEL DE GUZMAN

By Aubrey Rose A. Inosante, Reporter

THE Department of Finance (DoF) said US President Donald J. Trump’s proposed tax on remittances will put a “minimal” dent of between $19.1 million and $148.4 million on money sent home by overseas Filipinos.

“We see that the estimated effect is minimal on the economy. The expected loss in remittances might only be $19.1 million to $148.4 million, out of the $36.5 billion projected remittances in 2026,” the DoF told BusinessWorld on Thursday.

The central bank has maintained its cash remittance growth projection at 2.8% this year and 3% for 2026.

Mr. Trump’s so-called One Big Beautiful Bill, which more broadly sets out his administration’s taxation plans, won Senate approval with some modifications from the US House of Representatives bill approved in May.

Among the key changes is a 1% excise tax on all remittances, which also apply to US citizens, softening the initially proposed 3.5% levy targeting foreign workers.

The bill will go before the House again, and may require reconciliation before proceeding to final passage and the President’s signature.

The DoF said the US Senate version of remittance tax will affect 4.4 million overseas Filipinos in the US.

“Although 41% of remittances are routed through the US, not all of these are from Filipinos in the US because remittances are routed to the US via correspondent banks,” it said.

Cash remittances rose 3% to $34.49 billion in 2024. The US remained the top source of cash remittances, accounting for 40.6% of the total.

Mon Abrea, founder and chief tax advisor of the Asian Consulting Group (ACG), said the legislation will slow down remittance flows—either by reducing the volume of formal remittances or by driving them underground.

“While the Department of Finance estimates the impact at only 0.003% of GDP, this additional burden may push senders — especially undocumented Filipinos — to use informal or unregulated channels, which are riskier and harder to monitor,” he said.

The lower rate on remittances in later versions of the legislation offers some relief to overseas Filipino workers, but could still dampen remittances and consumption.

“Certainly, the lower rate is much better. To the extent that this tax is imposed only on US-based remittances, then the negative impact is likely less, and not only because the rate is lower at 1%,” Calixto V. Chikiamco, president of the Foundation for Economic Freedom, said.

“However, the impact on our economy is that the amount that OFW families receive here will be less and they will likely reduce their spending,” he said.

Pantheon Macroeconomics Chief Emerging Asia Economist Miguel Chanco said the rate reduction is a “positive development.”

Over the long haul, Mr. Chanco believes that money transfers will not materially be affected even if the 3.5% rate were reimposed.

House bill seeks to set 6% of GDP spending minimum for education

PHILIPPINE STAR/ MICHAEL VARCAS

By Kenneth Christiane L. Basilio,  Reporter

A HOUSE bill seeks to set a floor of 6% of gross domestic product (GDP) for spending on education, which would reverse recent trends in government spending favoring infrastructure.

Party-list Rep. Antonio L. Tinio and Renee Louise M. Co proposed in House Bill (HB) No. 204 to set the 6% benchmark for funding for the Education department, state universities and government trade schools.

They cited a United Nations (UN) spending recommendation of up to 6% spending to improve education access and quality.

“The bill intends to take a stand that will favor our children and youth, our teachers and education personnel,” they said in the bill’s explanatory note. “Rather than consider it as mere spending, we must view it as high-yield investments in the future.”

The Philippines allocated 3.6% of GDP to education in 2023, according to the World Bank, missing the 4-6% benchmark set by the Incheon Declaration.

With 2025 nominal GDP estimated at $497.5 billion by the International Monetary Fund (IMF), the 6% spending proposal would imply education funding of $29.8 billion, or about P1.67 trillion.

The Development Budget Coordination Committee has proposed a P6.793-trillion national budget for 2026, equivalent to 22% of GDP and 7.4% higher than this year’s budget.

“The Philippines’ public expenditure for education never breached 4.4% from 1980 to 2020, and generally below the global average on most years from 1999 to 2019,” the legislators said, citing World Bank data.

“It is also among the worst countries in the Asia-Pacific region in terms of public expenditure for education,” they added.

HB No. 204 falls in line with the constitutional mandate to prioritize education funding. The charter binds the government to make education its largest budget item.

The 2025 national budget has drawn fire over claims that funding for public works was larger than the budget for education, leading the spending plan to be challenged in the Supreme Court as unconstitutional.

This year’s spending plan allotted P1.055 trillion for education, 4.3% higher than the P1.007-trillion funding for the Department of Public Works and Highways.

“The 2025 General Appropriations Act has been criticized as according the highest spending to infrastructure… education is already suffering from the disastrous effects of perpetual underfunding,” the legislators said.

MSRP for imported rice set for P2 reduction in mid-July

Workers unload sacks of rice in this file photo. — PHILIPPINE STAR/RYAN BALDEMOR

THE Department of Agriculture (DA) said it will lower the maximum suggested retail price (MSRP) for imported rice to P43 from P45 per kilogram starting July 16.

The P2 adjustment was initially scheduled for July 1 but had been postponed due to heightened volatility in global commodity markets as fighting broke out in the Middle East.

“Global conditions have stabilized enough to resume planned price interventions,” the DA said in a statement, citing the ceasefire between Israel and Iran.

“Global rice prices have since declined, alongside softening oil prices,” it said.

Oil prices have been falling since the start of July after two major hikes in June, the second taking place after the US intervened in the Israel-Iran bombing and missile exchanges.

The strength of peso was also considered in adjusting the MSRP, it said.

“We are also seeing positive projections for record harvests from key producers like India, Pakistan, and Thailand,” the DA said.

“These developments could improve global supply and help pull prices further down,” it added.

The MSRP applies specifically to the 5% broken-grain variety, the highest-grade and most commonly consumed type of imported rice.

The DA said the MSRP imposed earlier this year has contributed to a downward trend in domestic retail rice prices.

Rice inflation continued to decline, falling 12.8% in May from the 10.9% decline a month prior.

The DA said it is also finalizing plans to introduce MSRPs for imported pork in August and potentially for chicken by September.“These measures aim to moderate retail prices amid tight domestic meat supply caused by ongoing animal disease outbreaks.” — Kyle Aristophere T. Atienza

ASEAN wholesale cross-border payments seen requiring monitoring of capital flows

REUTERS

THE EVENTUAL integration of wholesale cross-border payments in the ASEAN Regional Payment Connectivity (RPC) system will require regulators to monitor and manage capital flows, the ASEAN+3 Macroeconomic Research Office (AMRO) said in a report.

“Cross-border connections facilitating large amounts of payments can also pose a risk from a capital flows perspective. The speed and ease of the transfers can make the capital flows more volatile and in extreme situations, may cause liquidity stress for institutions. These cross-border transfers depend on a chain of participants working seamlessly together, but the system is only as strong as its weakest link.”

As ASEAN RPC technology and regulations develop, AMRO said its scope will expand to integrate wholesale payment solutions such as real-time gross settlement from the current focus on retail payment solutions, which caters to individuals and small- or medium-sized businesses.

“This integration will help generate high-value transactions and further reduce the costs associated with cross-border transactions. The integration of wholesale payment infrastructure can also provide a significant boost to local currency usage,” AMRO said.

However, larger transactions will require tighter risk management, due diligence, proper implementation of anti-money laundering and counter-terrorism financing (AML//CFT) protocols, and capital flow monitoring and management measures, it added.

AMRO added that fraud detection and dispute resolution procedures will need to be strengthened.

“Cybersecurity lapses, platform outages, data security breaches, and process failures at any participant could compromise the integrity of payment systems on either side of the linkage. While these risks also exist in retail payment integrations, the systemic risk is lower due to the regulated transaction sizes, and in many cases, the limited number of participating organizations,” AMRO said.

AMRO said ongoing regional initiatives such as the Bank for International Settlements’ Project Nexus, can speed up the scaling of ASEAN RPC.

In April, the Bangko Sentral ng Pilipinas, along with the Reserve Bank of India, Bank Negara Malaysia, the Monetary Authority of Singapore, and Bank of Thailand, incorporated Nexus Global Payments in Singapore into their domestic instant payment systems.

The five central banks will contribute the initial capital required to build and establish the Nexus platform for its live operation.

“A centralized hub-and-spoke model can offer a scalability solution for the RPC and could be the way forward. Initiatives such as Project Nexus… explore direct linkages between domestic FPS (fast payment system) networks, allowing real-time transactions across borders without significant infrastructure overhauls,” AMRO said.

Emerging technologies such as distributed ledger technology (DLT) could also be adopted to improve transparency, security, and efficiency in cross-border transactions.

Central banks are also looking at Central Bank Digital Currencies due to their application in cross-border payments, allowing for instant, low-cost international transfers.

“However, this innovation can only adapt quantifiable and configurable measures and require a highly digitalized payment system. Private institutions also use DLT technology to develop private stablecoins or private DLT-based infrastructure to facilitate cross-border transactions, although the usage is limited to certain customers,” AMRO said. — Aaron Michael C. Sy

WESM rates fall in June as decline in demand outweighs supply drop

BW FILE PHOTO

THE average price of power on the Wholesale Electricity Spot Market (WESM) declined 3.9% in June, the Independent Electricity Market Operator of the Philippines (IEMOP) said on Thursday.

IEMOP reported a WESM system-wide average of  P3.86 per kilowatt-hour (kWh) in June, against P4.01 per kWh a month earlier.

Between May 26 and June 25, the available supply decreased 3.5% month on month to 21,432 MW. Demand declined 4.1% to 14,545 MW.

On Luzon, the average power rate slipped 7.5% month on month to P3.91 per kWh, with supply going falling 3.5% to 15,076 MW. Demand declined 5.4% to 10,400 MW.

IEMOP said that WESM rates in the Visayas increased 4.3% to P3.93 per kWh a month earlier.

Supply decreased 1.1% to 2,635 MW while demand dropped 2.2% to 2,003 MW.

Power prices in Mindanao rose 13.2% to P3.54 per kWh from P3.11 per kWh a month earlier.

The grid’s available supply slipped 5.4% to 3,721 MW. Demand grew 0.7% to 2,112 MW.

IEMOP operates the WESM, where energy companies can purchase power when their long-term contracted power supply is insufficient for customer needs. — Sheldeen Joy Talavera

Navotas project taps Korean aid

PHILSTAR FILE PHOTO

SOUTH KOREA will fund a $10-million circular-economy project for Navotas focused on a network of upcycling and recycling facilities penetrating to the barangay level.

The proposed project, which runs from 2026 to 2031, will tap Korean aid in creating materials recovery facilities, Yoo Ji-young, the Korea International Cooperation Agency (KOICA) Philippine Office deputy director, said at a forum hosted by the ASEAN-Korea Centre on Thursday.

The project hopes to encourage the development of upcycling and recycling startups, she added.

KOICA approved the project proposal in March after a preliminary review in January.

The Korean government’s final approval is expected by the third quarter.

An implementation survey is scheduled for the third or fourth quarter of 2025.

South Korea is also set to turn over a marine clean-up vessel to the Philippine government in February. — Kyle Aristophere T. Atienza

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