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Banks face reputational risks from romance scams

REUTERS

PHILIPPINE BANKS may be exposed to increased reputational risks as the number of Filipino individuals and entities linked to romance scams rose in 2024, Moody’s said.

Moody’s on Thursday said it recorded 1,193 new entities and people with potential ties to romance scams in 2024, up by 14% year on year and the highest in six years.

“In 2024, the US accounted for over a third (38%) of new romance scam profiles among top 10 countries, followed by Nigeria (14%), India (12%), the UK (11%), Malaysia (5%), China (5%), the Philippines (4%), Brazil (4%), Canada (4%) and Australia (3%),” it said in a note on Thursday..

In the Philippines, the number of Filipino entities and individuals with potential links to romance scams increased to 45 in 2024 from 10 in 2023, Moody’s said.

“Criminals often seek to launder the money generated from romance scams like sextortion via the traditional financial system. Banks can face significant reputational risks and fines,” the credit rater said.

“Financial grooming scams increased greatly during the COVID-19 pandemic, as isolation led to a greater need for emotional connection — and increased vulnerability. Sextortion is a type of romance scam targeting teenagers, particularly boys. Perpetrators use fake profiles to solicit explicit images or videos from victims, then extort money by threatening to expose the images to friends, family or on social media,” it added.

The Bangko Sentral ng Pilipinas (BSP) requires Philippine financial institutions to immediately report reputational risk events that could impact their financial standing and stakeholder confidence.

The BSP’s guidelines define reputational risk as those that could affect earnings, capital and liquidity due to negative perception of the financial institution and adversely impact their business relationships and hinder new venture establishments or continuous access for funding

These risks could be caused by customers, shareholders, investors, employees, market analysts, the media, and other stakeholders, including regulators and government agencies.

Financial institutions are expected to implement mechanisms meant to monitor reputational risks through early warning indicators such as volume of complaints, number of negative news, number of violation of laws or regulations, and codes of conduct with material penalties or sanctions for noncompliance.

Meanwhile, the Anti-Financial Account Scamming Act signed in July 2024 prohibits and punishes crimes committed using financial accounts, such as acting as money mules, performing social engineering schemes, and committing economic sabotage.

The law allows the BSP to examine and investigate bank accounts, e-wallets, and other financial accounts that are involved in the prohibited acts.

An analysis by TransUnion Philippines released last year showed that 18% of digital transactions originating from the country across the communities industry — which includes online forums and dating websites — were suspected to be digital fraud in the first half of 2024.

Data from the Philippine National Police’ Anti-Cybercrime Group (PNP-ACG) showed there were a total of 121 sextortion cases in the Philippines in 2023. The PNP-ACG has said that sextortion is among the top five cybercrimes that they receive complaints about.

Mastercard rolls out anti-money laundering service TRACE in the Philippines

MASTERCARD has officially launched in the Philippines its anti-money laundering service that leverages artificial intelligence to flag potential financial crime.

The Philippines is Mastercard’s first Asia-Pacific market to implement its TRACE or Trace Financial Crime solution in collaboration with interbank network BancNet, Inc., onboarding 36 domestic banks, it said in a statement on Thursday.

BancNet is the switch operator of the Philippines’ real-time payment (RTP) gateway InstaPay.

“The Philippines has seen rapid digital payments growth, making it more important than ever to strengthen defenses against financial crime. With the rampancy of cybercrime affecting consumers and financial institutions alike, the urgency for stronger, more collaborative fraud prevention solutions has never been greater,” Mastercard Philippines Country Manager Simon A. Calasanz said in a statement on Thursday.

“As scams grow more sophisticated, advanced tech-powered prevention and monitoring capabilities are critical. Our partnership with Mastercard and leveraging TRACE gives us and the network participants the intelligence to help detect fraud faster, making scam prevention sharper and more effective,” BancNet Chief Executive Officer Elmarie S. Reyes said.

The Philippines’ Cybercrime Investigation and Coordinating Center (CICC) received 10,004 online scam complaints in 2024, with losses from incidents valued at nearly P198 million, it said this month.

Mastercard said the rise in real-time payments has made it a target for money launderers and criminals who use financial accounts in romance and investment scams.

TRACE uses payments data from multiple financial institutions to track financial crime across a payments network, flagging fraudulent transaction patterns and alerting banks about suspicious accounts.

“The solution allows participating financial institutions to quickly and accurately trace dispersed illicit funds across the RTP system, identify money mule activity throughout the network, and proactively highlight suspected money laundering accounts — all of which will allow them to better adhere to the country’s new Anti-Financial Account Scamming Act,” Mastercard said.

The United Kingdom is the only other market in the world to have implemented TRACE.

“The launch of TRACE in Asia Pacific marks a transformative step toward safeguarding the integrity of Real-Time Payments while combatting the corrosive effects of financial crime. By ensuring that transactions remain secure and compliant, TRACE helps to protect consumers and financial institutions, while also fostering trust in the digital economy—which will be critical for the region’s economic growth,” Mastercard Asia Pacific Services Executive Vice-President Matthew Driver said.

“Mastercard is proud to have collaborated with BancNet on its pilot rollout in the Philippines and is ready to collaborate with other stakeholders across the region to implement TRACE to create a stronger, more resilient global financial system.” — AMCS

Hollywood boosts female leads but lags in people of color, report finds

LOS ANGELES — Out of the top 100 movies in 2024, more than half featured a story centered on a female actor as a lead or co-lead, the first time representation has been above the US Census where girls and women comprise 50.5% of the population, a 2025 report from the University of Southern California found.

However, representation fell for people of color in film, the report said.

The USC Annenberg Inclusion Initiative examined 1,800 top-grossing films from 2007 to 2024 and assessed the gender, race, and ethnicity as well as the ages of the leading and co-leading actors for each movie.

“This is the first time we can say that gender equality has been reached in top-grossing films,” said Dr. Stacy L. Smith, founder of the USC Annenberg Inclusion Initiative.

“This is not the result of an economic awakening but is due to a number of different constituencies and efforts — at advocacy groups, at studios, through DEI initiatives — to assert the need for equality on screen,” Ms. Smith added.

Films like Wicked with lead Cynthia Erivo, Anora with lead Mikey Madison, and Anya Taylor-Joy in Furiosa: A Mad Max Saga set the stage for these gains in Hollywood gender equality.

Out of the 100 top-grossing films of 2024, 54 featured a girl or woman in a lead or co-lead role, the USC report said.

This reflects an increase from 2023, when only 30 movies featured a female-identified protagonist.

Over half of the films distributed by Universal Pictures (66.7%), Warner Bros. Pictures (55.6%), and Lionsgate (54.5%) featured a female actor as the lead or co-lead of the story, the report found.

About 40% or more of films were centered on a female lead or co-lead at Paramount Pictures (44.4%), Walt Disney Studios (40%), and Sony Pictures Entertainment (38.5%).

However, leads and co-leads from underrepresented racial and ethnic groups have declined significantly, as only 25 of the top 100 films featured a lead of color in 2024, a decrease from 2023, when 37 leads or co-leads were people of color.

A third of all Paramount Pictures films released in 2024 featured a lead or co-lead of color, with Lionsgate (27.3%) and Universal Pictures (26.7%) having similar demographics.

Walt Disney Studios (20%), Sony Pictures Entertainment (15.4%), and Warner Bros. Pictures (11.1%) reflected even lower numbers.

In 2024, no distributors reached proportional representation with the US Census (41.6%).

“This downturn signifies a lack of investment in storytelling that reflects the audience as a whole,” Ms. Smith said.

“The reality is that audiences want to see stories about women and people of color — studios and filmmakers do not have to choose between the two,” she added.

Thirteen films in 2024 had a woman of color lead or co-lead, which is similar to USC’s 2023 report and higher than the 2007 report.

“While this year’s findings mark a historic step towards proportional representation for women there is still work to be done for women of color,” said Katherine Neff, the study’s lead author. — Reuters

STI says P950-M Alabang campus to open by 2026

STI.EDU

TANCO-LED STI Education Services Group, Inc. is expanding its school network with a planned P950-million campus in Alabang, Muntinlupa City, set to be operational in 2026.

The eight-story campus, situated on a 3,266-square-meter property in South Park District, broke ground on Feb. 11, STI said in a regulatory filing on Thursday.

According to STI, the campus will offer senior high school programs and bachelor’s degree programs in Information Technology, Business and Management, Hospitality Management, and Tourism Management.

The Alabang campus will accommodate up to 10,000 senior high school and college students. It will feature air-conditioned classrooms with flat-screen TVs, student activity centers with internet connectivity, industry-grade laboratories, and recreational spaces such as a basketball court.

“For years, we have been expanding and improving our facilities to keep up with the demands and challenges of the modern world. This new campus in Alabang reflects our commitment to creating a conducive learning environment that empowers students with relevant skills, knowledge, and character,” STI President and Chief Operating Officer Peter K. Fernandez said.

The Alabang campus joins STI’s nationwide network of academic centers, which includes locations in Legazpi, Pasay-EDSA, Sta. Mesa, San Jose del Monte, Lipa, Batangas City, Las Piñas, Calamba, Cubao, Lucena, Caloocan, Ortigas-Cainta, Novaliches, Fairview, Naga, and Global City.

For the first quarter of its fiscal year ending June, STI reported a net income of P263.2 million, up from P19.75 million the previous year, as total revenue surged by 60% to P1 billion.

Enrollment reached a record-high 138,060 students for the 2024-2025 school year.

STI shares rose 2.13% or three centavos to P1.44 apiece on Thursday. — Revin Mikhael D. Ochave

Berlin Film Festival looks to revive relevance as politics loom large

BERLIN — Organizers of the Berlin Film Festival hope that politics will not eclipse the movies this time round even as they try to liven up an event that has looked jaded in recent years.

The Berlinale, which opened on Thursday, has always been the most political of the big international film festivals and this year’s takes place days ahead of German elections. Conflict in the Middle East also looms.

“Last year was an incredibly political festival. Politics sort of took over from cinema. And I think and maybe fear that that’s going to happen this year as well,” Scott Roxborough, European bureau chief for The Hollywood Reporter, told Reuters.

The first festival headed by new director Tricia Tuttle runs until Feb. 23 — the same day Germans vote in national elections that could hand considerable wins to the far right.

US-born Ms. Tuttle has acknowledged the festival’s political history but does not want such discourse to overshadow the films themselves. The festival will not issue a statement about the elections, though she encouraged Germans to vote.

Discussions about the war between Israel and the Palestinians will also probably be unavoidable despite organizers’ efforts, Mr. Roxborough said.

Last year’s closing ceremony drew criticism from German politicians after several winners expressed solidarity with the Palestinians and criticized Israel’s actions in Gaza.

The festival said in a note that clothes or symbols showing solidarity with the Palestinians were allowed but certain phrases required caution.

Several pro-Palestinian groups have called for filmmakers to boycott this year’s festival over the government’s support for Israel, and there are likely to be protests at the red carpet and elsewhere.

Two films about Israelis taken hostage by Hamas on Oct. 7, 2023, will be shown at the festival, and there is also a film about a young parkour athlete in Gaza.

Roxborough said Ms. Tuttle faces the task of making the festival relevant again after its status has fallen among filmgoers in the last few years.

“There’s going to be an effort this year to try and get Berlin back up the charts,” he said.

Two of its biggest films — the Bob Dylan biopic A Complete Unknown and the Robert Pattinson-led Mickey 17 — already had their international premieres, leaving only Richard Linklater’s latest, Blue Moon, to celebrate its world premiere in Berlin.

“But…for a festival like this, of the size of Berlin, you want at least half a dozen exciting, big movies that everybody wants to see,” he said.

Mr. Pattinson and Timothée Chalamet, who plays Dylan, as well as Ben Whishaw, Margaret Qualley, and Chloe Sevigny are among the actors set to hit the red carpet to promote their new movies.

INDEPENDENT DARLING
Several art house films will be premiered, including previous festival winner Radu Jude’s Kontinental ’25 and British screenwriter Rebecca Lenkiewicz’s directorial debut Hot Milk.

There are 19 films in competition for the Golden Bear top prize that will be awarded by a jury headed by US director Todd Haynes at a closing ceremony on Feb. 22.

The parallel European Film Market remains important as a place to buy and sell independent movies, Roxborough added.

“The big sort of splashy Hollywood movies may be showing elsewhere, but here is where you can, in the cold weather, get into the theater and sit for two hours with depressing, psychologically disturbing, but deeply moving drama,” he said.

“That’s sort of what you come to Berlin for.”  Reuters

Slowing inflation to support PHL growth, ATRAM says

ATR Asset Management Group said Philippine inflation is expected to slow further on the back of declining rice prices. — PHILIPPINE STAR/EDD GUMBAN

ATR Asset Management Group (ATRAM Group) expects the economy to stay strong this year as inflation continues to slow, but weak external demand could pose downside risks to growth.

“Looking ahead, we anticipate a dynamic economic environment in 2025, with both opportunities and challenges shaping the investment landscape. While disinflation is expected to continue through the middle of the year, benefiting from lower rice prices and a more stable energy market, potential threats to external demand could still slow economic growth,” ATRAM Chief Investment Officer Alessandra P. Araullo said in a statement on Thursday.

The Philippine economy grew by 5.6% in 2024, missing the government’s 6-6.5% full-year target due to weak global demand, typhoons, and geopolitical tensions.

Still, this was slightly higher than the 5.5% expansion in 2023.

For this year, the government targets gross domestic product (GDP) growth of 6-8%.

Meanwhile, Philippine headline inflation stood at 2.9% year on year in January, steady from the December print and well within the Bangko Sentral ng Pilipinas’ (BSP) 2-4% annual target.

The BSP on Thursday said inflation could rise anew in the second half of the year due to base effects, with potential upside pressures coming from the utilities sector and the lagged impact of minimum wage increases implemented last year.

“ATRAM forecasts a stronger Philippine peso by mid-2025 as interest rate cuts push foreign capital flows back to emerging markets. The firm also expects a steeper yield curve as monetary policy eases, inflation expectations rise, and bond supply increases, placing upward pressure on longer-term yields,” it added.

ATRAM’s assets under management (AUM) stood at P363 billion as of end-December, the company said.

“ATRAM’s strategic focus for the past years on feeder funds has resulted in an impressive 48% market share in the country, demonstrating its ability to anticipate market needs and provide innovative solutions,” it said.

“Our long-standing commitment to fund management and access to diverse financial markets enable us to deliver superior investment performance. Our disciplined investment and fund selection process, underpinned by in-house research capabilities and understanding of our clients’ distinctive needs, profiles, and financial goals, ensure that we offer the best investment solution and continuously adapt to changing market conditions, achieving the best possible outcomes for our investors,” Ms. Araullo added. — AMCS

Kevin Spacey faces another civil sexual assault lawsuit in UK

Kevin Spacey in a scene from 2022’s The Man Who Drew God.

LONDON — Oscar-winning US actor Kevin Spacey is facing another British lawsuit alleging sexual abuse, just over 18 months after he was cleared of all charges in a high-profile criminal trial.

Mr. Spacey, 65, was sued in a civil suit by a claimant at London’s High Court on Wednesday, according to court records. No details of the lawsuit were available.

The case is also being brought against London’s Old Vic theater, where Mr. Spacey worked as artistic director from around 2003.

Mr. Spacey, who is facing a separate lawsuit in London for alleged sexual abuse, was not immediately available for comment.

During his criminal trial, Mr. Spacey, who has always denied accusations of sexual misconduct, said three of the complainants in the criminal case had also brought civil claims against him.

“I take full responsibility for my past behavior and my actions, but I cannot and will not take responsibility or apologize to anyone who’s made up stuff about me or exaggerated stories about me,” he said in a TV interview last year.

The Old Vic could not immediately be reached for comment. A spokesperson for the claimant’s law firm confirmed a lawsuit had been filed.

Mr. Spacey, who won Oscars for American Beauty and The Usual Suspects, was one of Hollywood’s biggest stars before he was first accused of sexual assault in 2017, following which he was dropped from the TV drama House of Cards.

He stood trial at London’s Southwark Crown Court in 2023, charged with sexually assaulting four men in Britain between 2004 and 2013, and was acquitted on his 64th birthday. — Reuters

PwC opens office in BGC, plans to hire 2,000 workers

PRICEWATERHOUSECOOPERS (PwC) has invested around P1 billion in an Acceleration Center in Bonifacio Global City (BGC), Taguig.

On Wednesday, PwC inaugurated its 2,500-square-meter Acceleration Center in BGC, which aims to hire 2,000 Filipinos over the next two to three years.

“If you look at this wonderful office, it will give you a hint that this development is probably about close to a billion pesos,” PwC Philippines Chairman and Senior Partner Roderick Danao said on the sidelines of the inauguration.

“Not only the facilities, but the technology component that you cannot actually see visibly, is very expensive,” Mr. Danao added.

He said that PwC’s investment extends beyond the facility to workforce development.

“[Our] investment here is not just the facility. It’s a combination of the development of the real estate piece and, of course, the people development, which is more expensive because we are going to hire thousands of people,” he said.

The new office will initially focus on high-demand areas such as Guidewire, SAP, and Oracle, aligning with businesses’ needs in navigating the evolving technological landscape.

PwC Acceleration Centers Leader Hari Kumar said the firm chose to expand in the Philippines due to the quality of its workforce.

“Generally because of high-quality skills. But the other components that I will add to this are the fact that they (Filipinos) are committed, honest, and they work hard. And most importantly, they are good humans,” Mr. Kumar said.

“Building the skills is one part of it, but the human part of it was very significant for us. And that’s one of the reasons I’ll tell you that the Philippines and Manila have been a huge commitment for us, and we will expand further in the Philippines as well,” he added.

The Acceleration Center will focus on jobs in high-end technology and innovation, including artificial intelligence and cybersecurity.

“But we are not expecting everybody to come in with all the talent. But the idea is for us to train and build the skills along with everything,” Mr. Kumar said.

PwC Acceleration Center Manila General Manager and Partner Nilesh Sharma highlighted Filipinos’ strong customer-centric approach as a key factor in PwC’s success in the country.

“Nothing is too hard for them. The resilience they exhibit every single day is why we’ve been so successful in the last 15 or so years here and 100 years beyond that. And that is the basis and the foundation on which we want to build and pivot into these amazing new areas,” he added.

PwC has around 6,400 employees in the Philippines, with 2,900 serving local clients and 3,500 serving global clients. It has offices in Cebu, Iloilo, Davao, and Pasig, as well as a practice firm in Makati City.

The new facility currently serves PwC clients from 26 countries, including the US, Australia, and New Zealand.

“And that is going to expand. Just because our network of PwC is so big, so naturally it’s going to expand,” Mr. Kumar said. — Justine Irish DP. Tabile

BPI appoints Cruz as new institutional banking head

BANK of the Philippine Islands (BPI) has appointed Luis Geminiano E. Cruz as its new institutional banking business head.

“The Bank of the Philippine Islands has approved the appointment of Senior Vice-President (SVP) Luis Geminiano E. Cruz as Head of Institutional Banking, effective May 1, 2025, subject to regulatory approval,” it said on Thursday.

This comes as BPI’s current Institutional Banking Head Juan Carlos L. Syquia was seconded to its parent firm Ayala Corp.

Mr. Cruz is currently head of BPI’s Commercial Banking Group, a position he had held since 2018.

“In 2024, he was appointed as a director, representing BPI for Unicon Insurance Brokers Corp., further expanding his leadership responsibilities,” the bank said.

“With a distinguished career spanning over three decades, Mr. Cruz brings a wealth of experience across multiple banking disciplines. Since joining BPI in September 2010, he has taken on key leadership roles in Corporate Banking and Private Banking.”

Before joining BPI, Mr. Cruz also held roles related to corporate, business and investment banking, fixed-income sales and distribution, equities, and treasury.

BPI’s net profit rose by 20% year on year to a record-high P62 billion in 2024, driven by double-digit revenue growth.

Its shares went down by P1.80 or 1.37% to end at P129.20 each on Thursday. — A.M.C. Sy

R. Kelly’s sex trafficking conviction upheld

R. Kelly in a still from the 2023 documentary The Verdict.

NEW YORK — A federal appeals court on Wednesday upheld R. Kelly’s sex trafficking and racketeering conviction, saying extensive evidence supported keeping the former R&B superstar behind bars for decades.

The 2nd US Circuit Court of Appeals in Manhattan rejected Kelly’s claims that federal prosecutors failed to prove he led a racketeering scheme where he recruited women and underage girls for sex and then violated several victims.

Circuit Judge Denny Chin said prosecutors offered “extensive evidence showing how Kelly ensnared young girls and women into his orbit, endeavored to control their lives, and secured their compliance with his personal and sexual demands through verbal and physical abuse, threats of blackmail, and humiliation.”

Writing for a three-judge panel, Chin also said jurors could conclude that Mr. Kelly, 58, intended to convince victims they would be harmed if they failed to honor his sexual demands.

Mr. Kelly’s lawyer Jennifer Bonjean said her client may appeal to the US Supreme Court because the decision improperly expanded the reach of the federal Racketeer Influenced and Corrupt Organizations Act, or RICO.

The decision “gives the government limitless discretion to apply the RICO statute to situations absurdly remote from the statute’s intent,” Ms. Bonjean said. “The statute was intended to punish organized crime, not individual conduct.”

A spokesman for the US attorney’s office in Brooklyn declined to comment.

Mr. Kelly is serving a 30-year prison sentence after a Brooklyn, New York jury convicted him in September 2021 of one count of racketeering and eight counts of violating the Mann Act, which forbids transporting people across state lines for prostitution.

His case became among the most prominent #MeToo-era prosecutions.

Kelly was previously perhaps best known for his 1996 Grammy-winning hit “I Believe I Can Fly.” His full name is Robert Sylvester Kelly.

VICTIMS PORTRAYED REPRESSION
Wednesday’s decision came as jailed rapper and music mogul Sean “Diddy” Combs awaits his scheduled May 5 trial in Manhattan federal court on sex trafficking charges.

Dozens of women and men have filed civil lawsuits accusing him of sexual misconduct. Mr. Combs has pleaded not guilty and maintained his innocence.

Mr. Kelly’s trial followed two decades of misconduct accusations, which he had repeatedly denied.

Jurors heard testimony from 45 government witnesses, including several victims, that portrayed in often graphic detail the repression that prosecutors said Mr. Kelly and his entourage imposed.

This included requirements that victims refer to Mr. Kelly as “Daddy,” get permission to eat or use the bathroom, and write “apology letters” that purported to absolve him of blame.

The appeal included arguments by Mr. Kelly that prosecutors failed to prove he intended to expose victims to herpes by concealing his diagnosis before having unprotected sex.

Mr. Kelly also argued that four jurors had known too much about the case and were biased against him.

The case is separate from Mr. Kelly’s September 2022 conviction by a Chicago jury of child sex crimes.

He was sentenced there to 20 years in prison, but the judge added just one year to Mr. Kelly’s imprisonment, with the other 19 years overlapping the 30-year sentence.

In October, the US Supreme Court rejected Mr. Kelly’s appeal from the Chicago conviction.

Mr. Kelly is at the Butner, North Carolina medium-security prison that once housed late Ponzi schemer Bernard Madoff. He is eligible for release in December 2045, at age 78. — Reuters

It’s time for Japan to admit victory on deflation

CULLEN CEDRIC-UNSPLASH

OLD CENTRAL BANKERS never die. And often, they don’t fade away either.

Haruhiko Kuroda, the Bank of Japan boss for a decade until 2023, was one such figure who last week declared that Japan “has completely exited deflation.” Having presided over a decade of massive stimulus, his comment is of course self-serving. But with core consumer price rises in January expected to hit 3%, they seem accurate. So why the controversy?

The problem is that the Japanese government, and Prime Minister Shigeru Ishiba in particular, feel differently. When asked for his take on whether Japan suffers from inflation and not its pernicious opposite, Ishiba demurred.

“Japan is not in deflation,” he said, “but it hasn’t been able to completely escape it.”

When Ishiba became prime minister in October, he called for a concentrated three years of policy to ensure deflation is quashed. He’s not only at odds with Kuroda, but also the incumbent at the Bank of Japan, Kazuo Ueda, who agrees Japan is experiencing rising prices.

These days, no one who has been to a Japanese supermarket, where heads of cabbage sell for more over ¥1,000 ($6.50), thinks the threat currently facing Japan is deflation. The tussle against this foe — or the specter of it — was waged off and on by officials for the better part of a generation, with critics contending Japan had become a poster child for seemingly terminal decline. But nothing lasts forever. The last time prices declined was in July 2021, the same month the Tokyo Olympic Games took place, a time the country’s borders were still closed with the nation in the midst of a COVID-19 state of emergency. For almost three years, core consumer prices have not only risen, but have met or exceeded the Bank of Japan’s 2% target. It’s a situation the bank forecasts will continue until at least March 2027.

Of course, there’s good reason to be cautious over taking a possibly premature victory lap (think US President George W. Bush and his infamous “Mission Accomplished” banner). And deflation can truly happen anywhere, as former Federal Reserve chairs Alan Greenspan and Ben Bernanke can testify. By 2003, inflation in the US had been so contained over the prior decade that policymakers fretted it had become too much of a good thing and the risk of a Japan scenario  — once considered crazy — needed to be taken seriously. The prospect of falling prices had become the hot topic at the Fed and action was needed.

“We wanted to shut down the possibility of corrosive deflation; we were willing to take the chance that by cutting rates we might foster a bubble, an inflationary boom of some sort, which we would subsequently have to address,” Greenspan wrote in his book The Age of Turbulence.

Months earlier, Bernanke, a Fed governor who would ultimately succeed Greenspan, gave a high-profile speech devoted to making sure deflation didn’t visit America. He thought a pronounced and general decline in prices was unlikely, though it couldn’t be ruled out. Once such a force sets in, he argued, it can be very destructive. Janet Yellen, who followed Bernanke as Fed chief, also spent a lot of time worrying about too-low inflation.

Japan’s past also shows the need for vigilance — it took the country a long time to recognize the problem in the first place, with an official “declaration of deflation” arriving only in 2001 after an extended period of declining prices.

That has perhaps created a fear over being too blasé on deflation. But the mistake the government risks repeating is being out of touch with the economy — and ignoring the issues facing everyday voters and consumers, who these days are struggling with higher grocery and utility bills.

While continuing to be cautious about the future, Japan should admit that at least for now it has won the fight. Otherwise, deflation risks becoming another of the interminable debates that drag on much too long in the country — from the future role of nuclear energy, to the use of surnames for married couples, to the current, excruciating debate over whether an income tax exemption should be merely modest, or really modest.

That these issues are still being chewed over when the broader world is moving at light speed — from the exponential growth of AI capability to the flurry of executive orders from the Trump administration — is particularly galling.

We don’t buy the argument, advanced by some, that the threat of deflation is needed as a fig leaf for spending. Ishiba can easily argue that while price drops have been banished, low-to-negative growth hasn’t. In contrast to Elon Musk’s thirst for cutting government outlay, there is little public appetite in Japan for austerity; the Democratic Party for the People, the surprise group in last year’s election that sucked votes away from the ruling party, advocates for increasing take-home pay and lowering taxes.

Perhaps Ishiba is trying to set himself up for victory later — declare deflation is still a problem, then at a suitable moment, say it has been slain. But the problem there is twofold — no one really buys that deflation is an issue these days, and despite his successful visit to the US, it still seems unlikely the prime minister will be around in three years’ time to take credit.

So while his reluctance to embrace Japan’s contemporary economy is grounded in harsh experience, it’s well past time for the political elite to move on. If you have a win, regardless of its provenance, take it. It’s good advice for any leader — and dare we say it, some useful forward guidance.

BLOOMBERG OPINION

PAL launches Cebu–Ho Chi Minh flights

PHILIPPINE STAR/EDD GUMBAN

PHILIPPINE AIRLINES is expanding its Cebu hub with the launch of new direct flights from Cebu to Ho Chi Minh City (Saigon), Vietnam, the flag carrier said.

In a media release on Thursday, Philippine Airlines, operated by PAL Holdings, Inc., announced that it will begin flights from Cebu to Ho Chi Minh City on May 2.

The soon-to-be-launched Cebu–Ho Chi Minh flights will operate three times a week — every Wednesday, Friday, and Sunday — while the return service to Cebu will depart from Ho Chi Minh City every Monday, Thursday, and Saturday.

“We look forward to boosting tourism, strengthening Cebu’s position as the nation’s emerging business and leisure gateway, and building on the strong and friendly relations between Vietnam and the Philippines,” Philippine Airlines President and Chief Operating Officer Stanley K. Ng said in a media release on Thursday.

Philippine Airlines said the new service will utilize Airbus A321 jetliners, which can accommodate up to 199 passengers and offer both Business Class and Economy Class.

The airline also announced that it is increasing its Manila–Hanoi–Manila service to daily flights as part of its expansion in Vietnam.

At the local bourse on Thursday, shares in PAL Holdings closed unchanged at P4.84 apiece. — Ashley Erika O. Jose