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DHSUD placed on red alert

BAGUIO CITY — Regional offices of the Department of Human Settlements and Urban Development (DHSUD) were placed on red alert for possible emergency responses as the agency’s pro-active measure due to the would-be effects of Tropical Storm Enteng (Yagi).

DHSUD Secretary Jose Rizalino L. Acuzar directed Undersecretary for Disaster Response and for Administrative and Finance Services Randy Escolango to issue a memorandum to ensure readiness of the regional offices in Regions 1, 2, 3, 4A, 4B, 5, 6, 7, 8, Cordillera Administrative Region (CAR) and the National Capital Region (NCR).

A memorandum was issued on Sunday by Undersecretary Escolango instructing the Regional Directors of the different regions to be on alert. This was prompted by the National Disaster Risk Reduction and Management Council’s Memorandum No. 192 s. 2024, which called for activation and or placing on standby of response clusters due to Enteng.    

The DHSUD is the head of the shelter cluster of the NDRRMC.   

To ensure timely and proper actions, the regional directors were also directed to submit daily situational report, the Memorandum further added. — Artemio A. Dumlao

Gov’t workers’ pay hike delayed

A CONGRESSMAN on Monday said the Marcos administration has yet to fulfill its promise of salary increases for government employees.

President Ferdinand R. Marcos, Jr. issued an Executive Order (EO) in 2023 adjusting the salaries of government employees, which Party-list Rep. France L. Castro said was supposed to take effect in January this year.

“Why is it that there’s already an Executive Order and implementing rules and regulations, yet the salary increase still hasn’t been given?” she said in a statement. “Our… government employees have long been waiting for a substantial adjustment to their salaries, which is crucial for coping with the rising cost of living due to inflation.”

The EO will be implemented in four tranches, beginning in 2024 and up until 2027.

Budget Secretary Amenah F. Pangandaman in a statement last month assured that the first tranche of the pay hike will take effect this year.

It will cost the government about P36 billion this year to implement the first tranche of the pay boost, according to the same Department of Budget and Management statement. — Kenneth Christiane L. Basilio

Comelec to build P8-B Pasay office

THE COMMISSION on Elections (Comelec) reported plans to build an office building, worth P8.2 billion, in Pasay City in 2028.

Comelec Chairman George Erwin M. Garcia said the agency has been renting various spaces, including several floors at the Palacio del Gobernador in Intramuros, Manila City, for 84 years.

“This is a symbol of the desire of the Comelec to become an independent constitutional body and prove that the Commission’s honor, dignity, and independence is there,” he said in Filipino during a groundbreaking ceremony on Monday.

“The building is only a symbol but, in our hearts, thoughts, and feelings, that is honest service to the people.”

The polls chief said the budget for the new building was approved in 2019. He added they aim to finish the construction within 3 to 4 years from 2025.

The foundation of the building will be finished in 5 to 6 months. — Chloe Mari A. Hufana

4 Dawlah men surrender

COTABATO CITY — Four more members of a local terrorist group in Maguindanao del Sur, all experts in fabrication of home-made bombs, surrendered on Saturday, Aug. 31, and promised to thrive in peace once reintegrated into mainstream society.

The four members of the Dawlah Islamiya first turned in an M14 rifle, an M16 rifle, a gauge 12 combat shotgun, a bolt-action Barrett sniper rifle and improvised explosive devices. They also renounced their membership of the group before the Army’s 92nd Infantry Battalion and local executives. The local terror group has a reputation for fomenting hatred for non-Muslims.

Major Gen. Antonio G. Nafarrete, commander of the Army’s 6th Infantry Division, told reporters on Monday that the four terrorists agreed to return to the fold of law through the joint efforts of local government units in Maguindanao del Sur and officials of the 92nd Infantry Battalion led by Lt. Col. Christian V. Cabading.

As of Saturday, 728 members of the allies Dawlah Islamiya and the Bangsamoro Islamic Freedom Fighters and 397 New People’s Army guerillas have surrendered since 2017. — John Felix M. Unson

Ilocos Norte records lowest poverty rate

BAGUIO CITY — Ilocos Norte has the lowest poverty incidence rate among families, at 0.3%, and among the population, at 0.5%, the lowest poverty incidences in the provincial category recorded throughout the country for 2023, the Philippine Statistics Authority (PSA) reported.

Ilocos Norte governor Matthew M. Manotoc said attributed this to Ilokanos’ resilience.

Employment and livelihood-opportunity projects and programs being implemented by the provincial government, like the “Mataginaginayon a Progreso,” “Agri ka Dito,” “Naruay a Pangedan Job Fairs,” and “IN na Kabuhayan Livelihood Program,” among others, are some of the initiatives undertaken to support the people, especially those in the marginalized sector in fighting against poverty.

While Mr. Manotoc takes pride in this achievement, he assured he will remain relentless in ensuring that the poverty statistics reflect the reality of the everyday lives of Ilokanos.

Mr. Manotoc vowed he will continuously work with various private and public sectors, national government agencies, and local and international businesses to meet the increasing demands of the people, fight poverty, and provide the best quality of life every Ilokano family deserves. — Artemio A. Dumlao

September 3 classes suspended amid Tropical Storm Enteng and Southwest Monsoon

PHILIPPINE STAR/MIGUEL DE GUZMAN

The Philippine government has suspended classes for public schools and government offices in the National Capital Region (NCR) and Region IV-A (CALABARZON) because of Tropical Storm Enteng and the Southwest Monsoon. 

In light of Malacañang’s announcement, cities in NCR have also suspended classes for private schools. 

Metro Manila: 

CALABARZON provinces have also posted their announcements on social media. 

CALABARZON 

  • Batangas – All levels (modular distance learning to be implemented) 

Here is a list of other municipalities and cities who have announced class suspensions due to the unfavorable weather conditions brough about by Tropical Storm Enteng: 

MIMAROPA 

Cagayan Valley Region 

Central Luzon 

  • Hagonoy, Bulacan – All levels (suggested to utilize Alternative Delivery Mode (ADM))  

Bicol Region 

Cordillera Administrative Region 

  • Baguio City – Preschool to high school (public and private) 

Ilocos Region 

  • Pangasinan – All levels (public and private) 
  • Ilocos Sur – All levels (public and private) 

According to the Philippine Atmospheric, Geophysical, and Astronomical Services Administrations (PAGASA), Enteng continues to move towards north northwestward over Isabela as of 8 PM.Almira Louise S. Martinez

SBMA studying over P40 billion worth of projects

SBMA

THE Subic Bay Metropolitan Authority (SBMA) said it has five projects in its pipeline valued at P41.43 billion, involving port upgrades and other works within the Subic Bay Freeport Zone.

At the Subic-Clark Business Conference on Friday, SBMA Chairman and Administrator Eduardo L. Aliño said he hopes to enhance Subic Bay’s main asset, its port.

“We understand that there is a need to continue to expand and develop,” Mr. Aliño said, adding that the authority anticipates continued demand growth.

One of the projects is the multi-purpose port terminal at Lower MAU, which covers a 570-meter wharf with a depth of 12.9 meters. It has a projected cost of P13 billion.

“This project will increase the port capacity by an additional 2.5 million metric tons of cargo,” the SBMA said.

MAU is the former camp for Marine Amphibious Units when Subic was under US military control.

Ronnie R. Yambao, senior SBMA deputy administrator for operation, said another project is the Subic Bay Cruise Ship Facility, which is expected to cost P10.16 billion.

“It will be a dual-berth facility, which is the first phase of the project. And then, the second phase, which covers the reclamation area, will accommodate commercial facilities to accommodate the guests,” Mr. Yambao said.

He said that the project aims to create a home port for cruise ships, as envisioned by the government’s National Cruise Tourism Program.

“Subic Bay as a home port is a game-changer project initiated by our chairman because we wanted to contribute to the National Government’s program to increase tourist arrivals. And one way to do that is by inviting cruise ships,” he added.

A third project is a multi-purpose port terminal at Redondo Peninsula, which includes a 600-meter wharf with a depth of 14 meters. It has a projected cost of P11 billion.

The project will increase the port’s capacity by 3 million metric tons of cargo.

Asked about the timeline, Mr. Yambao said that the SBMA is targeting to start the feasibility studies in time to offer the projects for public bidding before 2028.

Except for planned improvements to the Subic Bay International Airport, the projects could be financed through public-private partnerships or overseas development assistance. — Justine Irish D. Tabile

15 more Luzon Corridor projects pitched

A view of the container yard at the Port of Batangas — Photo from the PPA 2023 Annual Report

FIFTEEN more projects were presented to the steering committee for the Luzon Economic Corridor last week, according to the Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA).

“In the second steering committee meeting, we presented more projects, again, but from different agencies,” Secretary Frederick D. Go, the SAP who heads OSAPIEA, said on the sidelines of the Franchise Asia Philippines 2024 conference.

During the first steering committee meeting, the Philippines presented projects from the Bases Conversion and Development Authority, National Economic and Development Authority, and the Department of Transportation.

“In the second steering committee meeting, we added projects from Subic Bay Metropolitan Authority (SBMA), the Department of Energy (DoE), and the Department of Public Works and Highways (DPWH),” Mr. Go said.

With the additional 15 projects, the Philippines has so far presented 43 Luzon Corridor works to the steering committee.

“But the idea now is they have seen all of it, and they are going to narrow it down. I really think at the end of the day, the ideal number should only be around five or six,” he said.

“Because you know what happens in life when you have too many choices … (compared) to when you have narrow choices, then you can really focus and really move faster,” he added.

He said infrastructure projects are likely to top the priority list, with energy projects next in line.

“But we don’t know … It’s their choice. Let’s leave it to them to choose,” he said.

The steering committee for the Luzon Economic Corridor is set to hold its third meeting in November.

The Luzon Economic Corridor is the first project of the US-initiated Partnership for Global Infrastructure and Investment in the Indo-Pacific.

First announced after the Trilateral Economic Ministers Meeting between the Philippines, the US, and Japan in April, the initiative aims to enhance the connectivity of the island’s major economic engines like Subic Bay, Clark, Metro Manila, and Batangas. — Justine Irish D. Tabile

Pharma to benefit from ‘nearshoring’ as Asia-Pacific turns protectionist, BMI says

ASIA-PACIFIC economies are expected to become less enthusiastic about globalization as growth weakens, with “nearshoring” picking up momentum to the possible benefit of industries like pharmaceuticals, Fitch Solutions unit BMI said.

“A more challenging economic outlook in the Asia-Pacific (APAC) region will limit scope for politicians to embrace globalization,” it said in a commentary.

“Southeast Asia is positioned to leverage nearshoring for economic growth, with the pharmaceutical sector poised to benefit significantly from these trends,” it added.

BMI expects growth in the region to settle at 4.7% this year and ease to 4.4% next year amid the slowdown in China.

“The economic slowdown will trigger a shift in attitudes toward globalization. Rising income inequality, exacerbated by depressed wage growth, will lead to the elevation of populist politicians, prompting an embrace of protectionist policy measures,” it said.

These dampened growth prospects will also remain “prominent” until 2025.

“In turn, weaker growth will likely also entrench voters’ concerns about their own prospects and erode appetite for major trade deals and other policies that would support globalization,” BMI said.

“The trend away from globalization will lead markets to prioritize policies to boost domestic economies, and developing the domestic pharmaceutical sector will be a prime target for several policymakers.”

Southeast Asia (SEA) is also “positioned to leverage nearshoring for economic growth,” BMI said, noting that the pharmaceutical sector is expected to “benefit significantly” from this.

“Nearshoring, the practice of relocating business operations to nearby countries, is expected to fundamentally redefine supply chain dynamics,” it said.

BMI said that geopolitical tensions may push US multinational drug manufacturers to move their operations elsewhere.

“As a result, SEA is well-placed to capitalize on this shift. SEA’s favorable conditions, including a growing labor force, improving infrastructure and supportive governmental policies, make it an attractive destination for pharmaceutical companies looking to diversify their supply chains and reduce dependency on any single market.”

BMI said that pharmaceutical sales in the region are projected to jump to $38.2 billion in 2028 from $29.2 billion in 2023.

“The implementation of nearshoring, backed by targeted foreign direct investment, could significantly enhance these growth forecasts, catalyzing the region’s integration into global value chains,” it added.

However, BMI noted that the region has yet to “fully harness” nearshoring initiatives.

“Despite several competitive advantages for markets across SEA, such as the favorable labor costs in comparison to Mainland China as well as its geographical proximity to the rest of APAC, the uptake of nearshoring initiatives has been slow.”

BMI expects Indonesia and Vietnam to maximize the nearshoring trend, resulting in “strengthened pharmaceutical trade and reduced external market dependency.”

It also noted opportunity areas for the Philippines. Last year, the government secured the agreement for the establishment of the first US Food and Drug Administration-approved manufacturing facility in the country, which is expected to “bolster the country’s global pharmaceutical industry presence.”

The Philippine Pharmaceutical Manufacturers Association has said that it plans to ramp up domestic manufacturers’ share of government procurement to 50% by 2030.

“These strategic initiatives undertaken by larger economies in SEA will pave the way for a significant transformation of the regional pharmaceutical landscape,” BMI said. 

“Collectively, these efforts will position SEA as a hub for pharmaceutical manufacturing and research, attracting further investment and establishing more reliable and secure supply chains.” — Luisa Maria Jacinta C. Jocson

BCDA income declines 54% to P3.3 billion

THE Bases Conversion and Development Authority (BCDA) said it posted a 53.65% decline in total comprehensive income to P3.3 billion in 2023 after hefty payouts to agencies it supports.

In its annual report, the BCDA reported that the BCDA contributed P4.35 billion to the Armed Forces of the Philippines (AFP) Modernization Program and other beneficiary agencies and for the replication of Army Support Command facilities in Tarlac.

The company also paid P602 million in financial assistance and to acquire right of way for roads in New Clark City.

Revenue rose 13.7% to P7.4 billion in 2023.

“The increase was driven by several factors: the sale of gross floor area in the amount of P285 million, dividends received from Fort Bonifacio Development Corp. (FBDC) of P675 million, and interest income of P768 million due to improved interest rates,” the BCDA said.

The government-owned corporation also reported increased toll revenue from the Subic-Clark-Tarlac Expressway of P1.95 billion and in revenue from the operation of Clark International Airport of P270 million.

Meanwhile, BCDA’s gross disposition proceeds rose 4.7% to P141.01 billion at the end of last year, after having reported P134.66 billion in revenue between May 1993, when it started booking results, and December 2022.

“The main drivers for the improvement were the receipt of disposition proceeds from the joint venture with SM Prime Holdings, Inc. for the Bonifacio South Pointe property (P3 billion), proceeds from the minimum annual secured revenue share in the Joint US Military Advisory Group (P873 million), and dividends from the FBDC,” it said.

“Other contributors were proceeds from existing leases and joint venture agreements, which amounted to P1.8 billion,” it added.

The biggest beneficiary of BCDA’s disposition proceeds was the AFP, which received P59.71 billion, or 42%, of the total disposition proceeds generated since 1993.

Meanwhile, the other proceeds went to the BCDA (33%, or P46.48 billion), other beneficiary agencies (7%, or P9.26 billion), and local government units (0.4%, or P560 million). — Justine Irish D. Tabile

Coco farmers call for bigger role in replanting program

PHILSTAR FILE PHOTO

THE Philippine Coconut Authority (PCA) needs to rope in more coconut farmers’ groups and cooperatives in carrying out its tree replanting effort, an industry group said.

“They want the participation of the farmers… they have not been using established farmers’ organizations. I think they are dealing with localized groups as they see fit,” Confederation of Coconut Farmers’ Organizations of the Philippines, Executive Director Charles R. Avila told BusinessWorld.

Last year, President Ferdinand R. Marcos, Jr. ordered the PCA to draft a plan to rehabilitate the coconut industry, including the planting of 100 million coconut trees by 2028.

“(Farmers’ groups) have been waiting for more than a year now since it was first announced that they would be willing to work with the farmers’ organizations. Specifically at the national level,” Mr. Avila added.

The rehabilitation plan aims to address the advanced age of the nut-bearing trees. The PCA is seeking to replant about 8.5 million trees this year.

He said that a majority of the Philippines’ fruit-bearing coconuts are now senile and have become candidates for monetization into coco lumber.

“If they can, for example, plant or replant this year, more than 5 to 8 million, that would be quite an achievement. But how far is that from the 100 million coconut trees that we need?,” he said.

Last week, the President allocated an additional P1 billion to the PCA for the coconut replanting operation in 2025, while an additional P2.5 billion set aside for fertilization.

“It would be a big help if properly used… that is not a small amount. But at the same time, the objective need for replanting cannot be denied,” Mr. Avila added.

Under the Philippine Coconut Industry Development Plan 2024-2034 the replanting project is expected to increase coconut production by 4.7 billion nuts, valued at P33.1 billion, by 2034.

By 2025, the PCA aims to replant 15.3 million, followed by 25.4 million annually between 2026 and 2028.

Mr. Avila also said that the government should allocate more funding towards creating integrated coconut processing plants.

“In that way of thinking, we can have a national structure for industrialization, which we don’t have,” he added.

As of the second quarter, the volume of coconut production rose 1.5% year on year to 3.41 million metric tons, according to the Philippine Statistics Authority. — Adrian H. Halili

PHL could carve out niche in cybersecurity  — OSAPIEA

FREEPIK

THE GOVERNMENT is pursuing upskilling and reskilling efforts in order to position the country as a cybersecurity hub, Secretary Frederick D. Go said.

Mr. Go, who heads the Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA), said: “We are looking at how we can create a niche for ourselves in the global market for cybersecurity.”

“As you all know, we are already a leader in the business process outsourcing (BPO) industry; we have the second largest industry in the world,” he told reporters on the sidelines of Franchise Asia Philippines 2024 on Monday.

“So, we are looking forward to what the next opportunity may be; we think it is in cybersecurity,” he added.

In particular, he said that the government is looking to train up the workforce in artificial intelligence and cybersecurity.

“I think for us it’s an opportunity and a threat at the same time. But obviously the government has to address, I think more importantly, the opportunity side, the training, reskilling, and upskilling of our people,” he added.

He said that the government is also in discussions with education and the private sector in terms of preparing the workforce.

“There’s a lot of discussion in the education sector about how to prepare our workforce for that opportunity,” he said.

“There’s also a lot of discussion with the private sector, about how the employers, like the BPOs, can assist the government in determining the needs and wants of the employers so that we can train our workforce to fit the requirements of the job providers,” he added.

In 2023, the information technology and business process management industry tallied 1.7 million direct jobs and $35.5 billion in export revenue, with a projected headcount of 1.84 million and $40 billion in revenue in 2024.

FRANCHISING
Meanwhile, Mr. Go identified the franchising industry as a key driver of the development for micro-, small- and medium-sized enterprises.

“These enterprises provide crucial support to the economy and contribute significantly to our economy,” he said.

He said the government seeks to continue creating favorable conditions for franchisees to thrive.

In particular, he said that the foreign trade desks of the Department of Trade and Industry (DTI) are helping promote the Philippine brand overseas.

“In all the important economies of the world, in our embassies, there is a foreign trade desk under the DTI, and one of their primary roles is really to promote Philippine products and services to the host country,” he said.

“So that could be through selling Filipino products as well as trying to promote the franchising of Filipino brands in their host country,” he added.

In terms of funding, he said that franchisees could also tap the DTI for assistance.

Acting Trade Secretary Cristina Aldeguer-Roque has said that the DTI will now offer franchise funding for selected brands.

“I’m working closely now with the Philippine Franchise Association for the top 20 franchises that will be given, those that are trending, and those that can really move quickly,” Ms. Aldeguer-Roque said. — Justine Irish D. Tabile