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Philippine shares inch up on Fed’s dovish shift

BW FILE PHOTO

PHILIPPINE SHARES inched up to a near five-month high on Tuesday after US Federal Reserve Chair Jerome H. Powell said they could begin their easing cycle next month.

The Philippine Stock Exchange index (PSEi) rose by 0.16% or 11.45 points to finish at 6,973.41 on Tuesday, while the broader all shares index improved by 0.3% or 11.55 points to end at 3,761.28.

This was the PSEi’s best close in nearly five months or since it ended at 6,979.81 on April 1.

“The PSEi followed global indices higher after Federal Reserve Chairman Powell said that the time has come for the Fed to adjust rates. However, profit taking kept the benchmark index below the key 7,000 level,” AP Securities, Inc. Research Head Alfred Benjamin R. Garcia said in a Viber message.

“Investors cheered the Fed’s dovish signals as monetary policy easing by the Fed would give more room for the Bangko Sentral ng Pilipinas (BSP) to ease their policy, too,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

Mr. Powell on Friday endorsed an imminent start to interest rate cuts, saying further cooling in the job market would be unwelcome and expressing confidence that inflation is within reach of the US central bank’s 2% target, Reuters reported.

With its policy rate currently in the 5.25%-5.5% range, the Fed has “ample room” to reduce borrowing costs to cushion the economy, Mr. Powell said.

Meanwhile, the BSP on Aug. 15 reduced its target reverse repurchase rate by 25 basis points (bps) to 6.25%. Prior to the cut, the Monetary Board kept the policy rate at an over 17-year high of 6.5% for six straight meetings following cumulative hikes worth 450 bps between May 2022 and October 2023 to combat elevated inflation.

BSP Governor Eli M. Remolona, Jr. said they could cut rates by another 25 bps within the year. The Monetary Board’s remaining policy-setting meetings this year are on Oct. 17 and Dec. 19.

“Philippine shares slowly inched towards the 7,000 level as investors start to rebalance ahead of both the MSCI and the end of month closing,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan added in a Viber message.

Majority of sectoral indices closed lower. Services declined by 0.4% or 8.95 points to 2,229.11; holding firms dropped by 0.33% or 19.45 points to 5,864.39; financials went down by 0.04% or 0.97 points to 2,121.42; and industrials slipped by 0.32 point to 9,237.62.

On the other hand, property surged by 2.71% or 73.54 points to 2,778.13; and mining and oil rose by 0.12% or 10.23 points to 8,166.20.

Value turnover slipped to P6.8 billion on Tuesday with 831.25 million shares changing hands from the P6.99 billion with 653.22 million issues traded on Thursday.

Advancers beat decliners, 110 versus 94, while 51 names were unchanged.

Net foreign buying went down to P897.83 million on Tuesday from P2.34 billion on Thursday. — R.M.D. Ochave with Reuters

Maharlika to start investing in 60-90 days, Consing says

Rafael D. Consing, Jr. — COURTESY OF THE PRESIDENTIAL COMMUNICATIONS OFFICE

THE Maharlika Investment Corp. (MIC) said it is poised to make its initial investments, both energy-related, within 60-90 days.

“We have about eight memoranda of agreement. Currently undertaking due diligence on two very important investments,” MIC President and Chief Executive Officer Rafael D. Consing, Jr. told a Senate hearing on Tuesday.

“Both (are) in the energy sector, and… we expect perhaps that in the next 60 to 90 days, we should be able to deploy (Maharlika funds).”

Energy is one of the priority investment areas of the sovereign wealth fund, and is expected to take up the bulk of the initial investments, Mr. Consing has said.

He said Maharlika is looking to raise $1 billion for renewable energy and sources of alternative energy to diversify the power mix and stabilize prices.

Finance Secretary Ralph G. Recto, who chairs the MIC board, has said that the first Maharlika investments will be finalized by year’s end.

Mr. Consing said that the fund has thus far earned about P1.5 billion in interest income.

“We (had) about P144 million in retained earnings last year, when we started placing the money in November… and another about P1.4 billion this year, so that’s a total of about P1.5 billion in interest income,” he said.

Mr. Consing said Maharlika’s proposed budget is about P336 million, which will primarily go to capital expenditures. It has established its headquarters in Bonifacio Global City, he added.

The fund has an authorized capital stock of P500 billion. Its initial capital of P125 billion comes from contributions from the Land Bank of the Philippines (P50 billion), Development Bank of the Philippines (P25 billion) and the National Government (P50 billion).

The Maharlika board has yet to fill one seat, Mr. Consing said.

“The board is also composed of about five individuals from the private sector out of nine. However, one seat has yet to be filled,” he added.

Apart from Mr. Recto and Mr. Consing, the board is composed of the presidents of LANDBANK and the DBP, independent directors, and regular directors.

In July, the sovereign wealth fund completed its investment and risk management framework and secured membership in the International Forum of Sovereign Wealth Funds. — Beatriz Marie D. Cruz

ASF vaccinations to roll out Friday in Batangas hot spots

REUTERS

THE Department of Agriculture (DA) said it will start vaccinating hogs against African Swine Fever (ASF) by Friday, beginning in Batangas, which has reported significant new outbreaks.

“We’re going to implement the vaccination this Friday in Lobo, Batangas para magsimula na ’yung treatment ng mga dumadaming cases of ASF (to begin addressing the increase in ASF cases),” Agriculture Assistant Secretary for Poultry and Swine Constance J. Palabrica told reporters on Tuesday.

He added that the increase in ASF cases may have been caused by rainy weather, causing the disease to spread via the water supply.

“We expected that because of the rains, (ASF) has spread to areas that were previously negative,” Mr. Palabrica said.

As of Aug. 21, 115 municipalities had active ASF cases across 32 provinces, according to the Bureau of Animal Industry. There were 64 affected municipalities as of Aug. 8.

He added that culled hogs should be buried at least 10 feet below ground and covered with plastic to prevent the spread of the virus when it rains.

“(The burial spot) needs to be covered to prevent ASF from entering the water system… It could hit the water table, and the disease can spread there,” he said.

In a separate briefing, Agriculture Assistant Secretary and Spokesperson Arnel V. de Mesa said that an initial 2,000 doses of the first batch of 10,000 will be used on Batangas hogs.

“We will start in Batangas and then eventually in Quezon. If the results are okay, then we’ll move around to other areas,” Mr. De Mesa added.

The DA has initially procured 10,000 doses of the vaccine after the surge in cases in Batangas. It has allocated P350 million for 600,000 vaccine doses for the broader roll out.

The Food and Drug Administration granted a Certificate of Product Registration for the AVAC ASF Live Vaccine from Vietnam to conduct controlled DA-led trials.

He said one other factor that may have contributed to the spread was the transport of infected hogs for sale at low prices, giving the farmers at least some income in lieu of taking a loss in a hog cull.

The DA has set up checkpoints to monitor the movement of hogs outside active ASF areas.

“The vaccine is just one of the many tools available to us. So, biosecurity, border control, our repopulation program, of course, and our information dissemination are also important,” Mr. De Mesa said.

The DA has also raised the indemnification rate to P4,000 for piglets, P8,000 for medium-sized hogs, and P12,000 for sows and large hogs that have to be culled. The maximum indemnification was previously P5,000 per animal. — Adrian H. Halili

Seven former Finance secretaries back use of GOCC fund reserves

DOF.GOV.PH

SEVEN former secretaries of Finance declared their support for the use of excess funds held by government-owned and -controlled corporations (GOCCs), including the Philippine Health Insurance Corp. (PhilHealth), to finance important government projects.

In a joint statement, the former secretaries said transferring unused GOCC funds to the National Government does away with the need to impose new taxes or take on more debt.

The statement was signed by former secretaries Cesar E. A. Virata, Roberto F. De Ocampo, Jose T. Pardo, Alberto G. Romulo, Jose Isidro N. Camacho, Margarito B. Teves, and Cesar V. Purisima.

“We fully understand and support the DoF’s exercise of its authority to effectively utilize the excess funds of GOCCs to finance crucial government projects in areas like health, education, social services, and infrastructure,” they said.

They said the Department of Finance (DoF) faces challenges in generating sufficient revenue to support growth.

“In our view, it is in the public’s best interest for a portion of excess GOCC funds to be mobilized efficiently, rather than imposing additional taxes or increasing public debt that would burden future generations,” they said. “The taxpayers are effectively paying interest on these idle, unused funds that are benefiting no one.” 

The DoF has been urged by healthcare advocates to withdraw its order to PhilHealth to transfer excess funds to the Treasury.

PhilHealth has returned P30 billion of the P89.9 billion requested by the DoF, Finance Secretary Ralph G. Recto said last week. 

The signatories also noted that the DoF will only access a portion of GOCC funds, and cited safeguards in place for GOCCs to retain prudent levels of resources.

“Responsible public financing requires considering opportunity costs. If unused funds are left dormant, the potential benefits are lost. Every unused peso represents development denied for Filipinos.” 

They also expressed confidence that the unused public funds will be managed with “utmost diligence and prudence” under the leadership of Mr. Recto.

During the Senate hearing, Mr. Recto said the DoF will comply with any laws or Supreme Court rulings regarding the fund transfers.

“If Congress passes a law telling us to stop and to give back the money, we will do so. If the Supreme Court says the same thing, we will do so,” he said.

Mr. Recto has said that PhilHealth would still have around P500 billion in funding after the transfers. — Beatriz Marie D. Cruz

BoI approves Monde Nissin’s P1.21-billion Davao biscuit project

THE Board of Investments (BoI) said it approved a P1.21-billion biscuit project of listed Monde Nissin Corp., with the planted expected to incorporate high levels of automation.

“The project involves the manufacturing of butter coconut biscuits intended for distribution to the Visayas and Mindanao initially,” the BoI said in a statement.

The project, to be built in Davao City, also has the potential to expand in Indonesia and elsewhere in Southeast Asia.

Monde currently makes butter coconut biscuits in Sta. Rosa, Laguna, serving the Luzon market.

“Previously, packaging was done manually. For this project, the firm will employ advanced automation technology for the packaging and movement of finished goods, which will require highly skilled workers who will be hired locally,” the BoI said.

“Through this project, the movement of raw materials and finished goods is expected to be stimulated in the southern regions,” it added.

According to the BoI, 46% of the project cost will go towards site preparation and development, while 48% will be spent on machinery and equipment.

The remaining 6% will serve as working capital.

The project is expected to generate 111 regular jobs and to start commercial operations within the month.

The company has yet to submit pre-registration requirements and has not yet been issued an actual certificate of registration, according to the BoI.

The BoI approved 30 investment pledges worth P202.97 billion in July, which brought the total for the first seven months to P1.15 trillion.

The value of approvals in the first seven months rose 65% from a year earlier.

“The BoI surpassed the trillion-peso mark with projects in renewable energy and agribusiness, supported by investments from a US equity fund and a major food conglomerate, among others,” the investment promotion agency has said.

For 2024, the BoI is targeting approvals of P1.6 trillion. If realized, the approval total would represent a 27% rise year on year.

On Tuesday, Monde Nissin shares rose 11 centavos or 1.19% to P9.32. — Justine Irish D. Tabile

SIM card audit looms as texting scams proliferate

PHILSTAR

THE Department of Information and Communications Technology (DICT) said it formed a task force to audit subscriber identity module (SIM) cards, which have been used in a growing number of text scams even after the government resorted to SIM registration. 

In an order dated Aug. 5, the DICT said the task force will verify the authenticity of registered SIM cards and assess existing protocols and procedures.

Information and Communications Undersecretary Jeffrey Ian C. Dy said the audit task force is authorized by Republic Act No. 11934 or the SIM Registration Act.

“We are mandated to perform the security audit of the PTEs (public telecommunication entities) especially in assessing their databases,” he said. 

He said with or without the proliferation of scams, the DICT still needs to assess the confidentiality and integrity of PTE databases.

The DICT has been receiving reports that “anyone, despite the implementation of the law, can register their SIMs,” Mr. Dy said.

The SIM card registration annual audit task force must submit within 60 days its comprehensive audit report that contains findings, recommendations and actions to be taken to improve the SIM Registration Act.

“We will produce an audit report. This will be made publicly available and will include how to improve the information security of the SIM card registration, and the implementation of the law,” Mr. Dy said. 

In June, the National Telecommunications Commission said it will step up enforcement of the law in the face of growing text scams. — Ashley Erika O. Jose

Well-milled rice averages P56.22/kg in early Aug.

PHILIPPINE STAR/KRIZ JOHN ROSALES

THE national average price of well-milled rice was P56.22 per kilogram (kg) as of early August, according to the Philippine Statistics Authority (PSA).

The PSA said prices edged lower during the Aug. 1 to 5 period, which it calls the first phase of the month, from the average P56.33 per kilo reported in the previous period of July 15-17, or the second phase of that month.

The highest retail price was reported in the Western Visayas, where the staple grain averaged P59.53 per kilo during the period.

At the low end during the period was Ilocos Region, where rice prices averaged P52.86 per kilo.

The PSA reported that regular-milled rice averaged P50.76 per kilo, down from P50.88 during the prior period.

The highest price for regular-milled rice was recorded in Davao Region at P53.46 per kilo.

At the low end was the Cagayan Valley, where regular-milled rice averaged P45.05.

The national average price for pork liempo (belly) fell to P356.3 per kilo during the period from P357.01 previously.

Pork kasim (shoulder) fell to P337.66 per kilo against the P338.37 in the prior period.

The average price for bone-in pork fell to P303.55 per kilo during the Aug. 1-5 period from P305.57 previously.

Dressed chicken averaged P205.26 per kilo in early August, up from P202.47 earlier.

The average price for chicken egg rose to P8.67 per piece from P8.54 previously. — Adrian H. Halili

UK pursuing regulatory reform projects across ASEAN region

REUTERS

THE ASEAN-UK Economic Integration Programme (EIP) will pursue regulatory reform projects in the region to better align both economies for enhanced trade and investment flows, the British Embassy in Manila said.

On the sidelines of a news conference on Tuesday, British Embassy Deputy Head of Mission Alistair White told reporters that the EIP, with 25 million pounds in funding, will consist in the Philippines of “partnerships and programs with the government over the next months and years.”

He said the specifics of the program are still being determined, but will focus on regulatory reform, financial services, and open trade.

“These things are commercially sensitive because obviously we will be working with commercial partners, but we are in that development and scoping phase, so I do not want to say anything that would preempt decisions or announcements,” he added.

He said the UK government expects to collaborate with the Anti-Red Tape Authority (ARTA), the Bangko Sentral ng Pilipinas, and the Department of Trade and Industry.

“I think we will be working with the agencies and partners that are most relevant to the sector — regulation and investment,” he added.

The EIP, launched in April, is a four-year initiative aimed at addressing barriers to trade, encouraging better regulation, and opening opportunities for mutual economic growth and investment.

Mr. White said that the experts from the UK are set to meet with their counterparts in the Philippines next month to develop business cases where the program can be effective.

“It takes a while … so realistically, it won’t be in the next few weeks or months, but early in 2025 that we should be starting to see much better detail,” he added.

The UK government is a partner of ARTA in the launch of the Policy Reform, Innovation, and Streamlining Management (PRISM) platform.

“This was delivered under our previous partnerships, and the EIP will sort of supersede that, build on it, and take us forward into the next four or five years,” Mr. White said.

Under the partnership, the UK government will share expertise on the regulatory impact assessment (RIA) process and its RIA curriculum.

ARTA Secretary Ernesto V. Perez said PRISM is primarily directed at National Government agencies, with priority given to agencies offering direct public services.

“We have to institutionalize RIA as mandated by law, and all government agencies must appreciate the need for RIA in offering services to the people,” Mr. Perez said.

“It will assure our people that before regulations or ordinances are implemented, these should be subjected to that proven tool,” he added.

So far, ARTA has trained 2,000 government personnel across 200 agencies, with the target of covering all agencies before the end of the current administration. 

“Our priorities for this year are agriculture, mining, energy, and water, so we will cover all those priority agencies,” he said.

“We hope that before the term of this administration ends in 2028, we shall have covered all government agencies, including local government units,” he added. — Justine Irish D. Tabile

Gov’t think tank favors overhaul of ERC charter amid EPIRA reforms

BW FILE PHOTO

A NEW charter for the Energy Regulatory Commission (ERC) is needed as legislators seek to amend the Electric Power Industry Reform Act (EPIRA), according to the Philippine Institute for Development Studies (PIDS).

“We believe that having a separate charter for the ERC will allow it to be more dynamic, flexible, effective, and efficient in responding to the changing needs of not only the electric power industry but also other components or subsectors of the energy sector,” according to commentary dated Aug. 9 published on the PIDS website.

The commentary was prepared by Adoracion M. Navaro, PIDS senior research fellow, and Kris A. Francisco, research fellow.

They said a new charter should be in place should the Department of Energy or Congress “assign tasks to ERC with respect to utility or generation regulation under new arrangements.”

They said a stand-alone ERC charter is “more dynamic as it can easily accommodate future needs that are not part of the electric power industry.”

Instead, general provisions on ERC regulation of the electric power industry should be in the EPIRA, “as the replacement section for the comprehensive proposals that may have to be moved to a new legislation on the ERC chapter.”

“Moreover, deregulation, light-handed regulation, or expansion of regulatory coverage in response to the dynamic environment can be more easily addressed by amending the ERC charter, rather than by revisiting the whole EPIRA every time there is a need to amend particular sections on the ERC,” the authors said.

They added that empowering ERC as a regulator “for the energy sector and not just for the electric power industry” would make institutional capacity building “more dynamic” in anticipation of future scenarios.

“Thus, the stand-alone ERC charter must contain provisions on how to beef up its technical capacity,” the authors said. — Sheldeen Joy Talavera

US could escort Philippine resupply missions in waterway, admiral says

BRP SIERRA MADRE, a marooned transport ship which Philippine Marines live in as a military outpost, sits on the disputed Second Thomas Shoal, part of the Spratly Islands in the South China Sea. — REUTERS

US SHIPS could escort Philippine vessels on resupply missions in the South China Sea, a top admiral said on Tuesday, describing what he called an “an entirely reasonable option” that required consultation between the treaty allies, however.

The remarks, which are likely to annoy China, were made by Samuel Paparo, commander of the United States Indo-Pacific Command, after a series of sea and air confrontations between the Philippines and China in the South China Sea in the past week.

Beijing has pressed its claim to the disputed conduit for more than $3 trillion of annual ship-borne commerce, while Manila has kept up supply missions, particularly those to a beached naval ship at the hotly contested Second Thomas Shoal.

“Escort of one vessel to the other is an entirely reasonable option within our Mutual Defense Treaty,” Mr. Paparo told reporters on the sidelines of a military forum organized by the Indo-Pacific Command.

He was responding to a query on whether Washington would consider providing escorts to ships from the Philippines taking supplies to disputed geographical features in the waterway.

“I mean certainly, within the context of consultations,” Mr. Paparo added, without giving details of ships likely to be employed for the task.

The Chinese Embassy in Manila did not immediately reply to a Viber message seeking comment.

Philippine military chief Romeo S. Brawner, Jr. said the southeast Asian nation preferred to run those missions on its own, however, making every effort to ensure their success despite what Manila calls China’s “dangerous” and “coercive” actions.

“We are going to try all options, all avenues that are available to us,” he told reporters. “While we can do it by ourselves, we will do it.”

But the Philippines would seek alternatives if it found itself constrained from doing so, he added.

“It’s not just perhaps operating with the United States, but also with other like-minded nations.”

Washington is bound by a Mutual Defense Treaty dating from 1951 to defend the Philippines in case of armed attacks on its forces, public vessels or aircraft in the South China Sea.

That treaty must be interpreted more broadly to tackle a “dynamic and cunning adversary,” Philippine Defense Secretary Gilberto Eduardo C. Teodoro, Jr. told reporters, although it has already proved a “great deterrent” in the South China Sea.

In recent years, the Philippines has complained of China’s use of so-called grey-zone tactics, or coercive actions that are just shy of armed conflict. But China has maintained its actions were professional and lawful.

Mr. Teodoro also urged regional nations to call out China, which he described as the “biggest disruptor of peace,” for its activities in the waterway.

“I believe they’re not undeterrable, because it’s just a question of getting a worldwide consensus,” he said.

Creating sufficient deterrence militarily was critical for the Philippines to show China it is serious about protecting its sovereignty, and which it would fight for, he added.

China claims sovereignty over nearly all of the South China Sea, including areas claimed by Brunei, Indonesia, Malaysia, the Philippines, Taiwan and Vietnam. Beijing has deployed an armada of vessels to protect its claims.

In 2016, an international arbitration court ruled that China’s claim was illegal, in a landmark victory for the Philippines, which filed the case. Beijing has rejected that decision.

PRESSURE ON CHINA
Meanwhile, United States Coast Guard Rear Admiral Andrew M. Sugimoto said the international community should continue to exert pressure on China to stop its aggression at sea, especially if it could backfire and affect its trade with other nations.

“A general world consensus does matter,” he told a virtual news briefing on Tuesday. “China wants to have a vibrant economy, and if nations condemn the actions and they see the economy as something that may be — the goodwill may be damaged in terms of their actions in the world — perhaps they will change… the way they do business.”

Mr. Sugimoto said Washington is keen on helping Manila launch more maritime domain awareness information campaigns amid tensions with Bejing in the waterway.

On Sunday, Manila’s South China Sea task force accused Chinese vessels near Sabina Shoal of ramming and using water cannons against a Philippine fishery vessel transporting food, fuel and medicine for Filipino fishermen.

The Chinese Coast guard said the Philippine vessel “ignored repeated serious warnings and deliberately approached and rammed” China’s law enforcement boat, resulting in a collision.

US Ambassador to the Philippines MaryKay L. Carlson denounced the “unlawful and aggressive conduct” by the Chinese Coast Guard.

“We stand together with the Philippines, and we condemn the actions of aggressive individuals that do such things as ram or try to prevent humanitarian supplies from reaching individuals resupplying their fellow citizens,” Mr. Sugimoto said.

Mr. Teodoro told reporters on Monday China’s actions in the waterway are “patently illegal.”

Mr. Sugimoto said the US Coast Guard would continue working with its Philippine counterpart to boost its capacity to patrol the seas.

“We are looking for whatever the Philippine Coast Guard wants us to help them with,” he said. “We are here for training, capacity building, legal structures, building out the law necessary to support them, any of those things.”

Last month, the Philippines and China agreed on a “provisional arrangement” for resupply missions to Filipino troops at Second Thomas Shoal, after trading blame on raising tensions in the waterway.

Both countries also agreed to set up new lines of communication to improve their handling of sea disputes after resuming talks on easing growing tensions, the Department of Foreign Affairs said last month. — John Victor D. Ordoñez with Reuters

Philippines deploys biggest coast guard ship to Sabina Shoal

"BRP TERESA MAGBANUA”, the largest patrol vessel (97 meters) for the Philippine Coast Guard (PCG)

By Kyle Aristophere T. Atienza, Reporter

THE PHILIPPINES has deployed its biggest coast guard vessel to Sabina Shoal in the South China Sea amid Chinese efforts to dump dead corals at the shoal to alter its elevation, according to its military.

The Southeast Asian nation is also working with foreign partners to restore damaged corals within its exclusive economic zone (EEZ) in the waterway.

“What we’ve seen recently was that there is somehow a sort of dumping of dead corals in order to make it come out of the water in order for it to be declared as a feature that can be built, that can be reclaimed,” Armed Forces of the Philippines (AFP) spokesperson Francel Margareth Padilla-Taborlupa told a Stratbase ADR forum on Tuesday.

“The destruction of corals was their way of dumping this in order to make Escoda Shoal (Sabina) such a feature,” she added.

Ms. Padilla-Taborlupa said the Philippine government had sent BRP Teresa Magbanua, which was being shadowed by Chinese vessels including People’s Liberation Army (PLA) ships based on earlier reports, to the shoal to prevent “further reclamation” of the area.

“That’s why we have sent our biggest coast guard vessel to the area to prevent the further reclamation of Escoda Shoal, and this is what’s heightening the tensions right now,” she said.

The 97-meter multi-role response vessel has been stationed at the shoal since mid-April.

She cited an Asia Maritime Transparency Initiative report in February that showed Chinese activities had damaged at least 21,000 acres of coral reefs within the Philippine EEZ.

The Philippine Navy has used Sabina as a staging area for resupply missions to its outpost at Second Thomas Shoal, which is also within the country’s EEZ.

The Philippine Coast Guard (PCG) late Monday said 40 Chinese vessels including three warships had blocked its two ships conducting a humanitarian mission for Filipinos stationed at BRP Teresa Magbanua.

The 40 Chinese vessels included six Chinese Coast Guard ships and 31 Chinese militia vessels.

“Such actions resulted in our two 44-meter Multi-Role Response Vessels being unable to safely deliver essential supplies, including a special ice cream treat from the commandant in honor of National Heroes’ Day,” the PCG said in a statement.

It urged the Chinese Coast Guard to stop deploying maritime forces that could undermine “mutual respect.”

Sabina Shoal, which is part of the Spratly Islands, is 123.6 nautical miles from Palawan Island, which is facing the South China Sea.

China has claimed that the BRP Sierra Madre, which the Philippines grounded at Second Thomas Shoal in 1999 to bolster its sea claim, was causing massive environmental damage to the atoll.

Ms. Padilla-Taborlupa said reef damage from BRP Sierra Madre was minimal compared with the marine damage caused by China’s reclamation activities within the Philippine EEZ.

At the forum, Dexter dela Cruz, a postdoctoral research fellow at the Southern Cross University’s Marine Ecology Research Centre, said the destruction of corals South China Sea areas within the Philippine EEZ affects “a huge portion of the Philippines as well.”

“The West Philippine Sea is a huge area,” he said. “It’s a huge breeding ground for fish and marine biodiversity. Anything that’s happening in the West Philippine Sea can trickle down to any part of the Philippines as well.”

Mary Kristerie Baleva, a nonresident fellow at Stratbase ADR Institute, said the Philippines should continue to push the enforcement of multilateral environmental deals including the Biodiversity Beyond National Jurisdiction agreement, which aims to reverse destructive ocean trends and restore ocean health.

Maria Vanessa Baria-Rodriguez, deputy director of the University of the Philippines Marine Science Institue’s Bolinao Laboratory, cited the need for more joint research activities with Philippine neighbors.

She cited a previous joint oceanographic research expedition with Vietnam. “There was one before and now I think there’s an ongoing discussion.”

She said the two countries should invite more interested parties to promote better understanding of the value of the South China Sea.

Quiboloy church gets court protection

PHILIPPINE STAR/DIANA LHYD SUELTO

By Chloe Mari A. Hufana, Reporter

A DAVAO CITY regional trial court (RTC) on Tuesday ordered the police and Interior and Local Government department to stop actions that threaten the life, liberty or security of members of a church whose leader is wanted for child abuse and human trafficking.

The court also ordered the police to remove barricades from the Kingdom of Jesus Christ (KOJC) compound in Davao City, which could hinder their religious freedom. “The court is not unaware of the recent incidents affecting the right to life, liberty, safety of the petitioners, its officers and members,” Presiding Judge Mario C. Duaves said in a three-page order.

Israelito P. Torreon, lawyer for church leader Apollo C. Quiboloy, who has gone into hiding, sent a copy of the court order to reporters via Viber.

Police raided the 30-hectare church compound on Saturday, but they did not find Mr. Quiboloy there.

The charismatic leader and five other members of his church are facing charges of child abuse and human trafficking, with two courts in Davao City in southern Philippines and Pasig City in Metro Manila having ordered their arrest.

The Senate has separately ordered his arrest for snubbing its own investigation of the church.

United States federal prosecutors in 2021 indicted Mr. Quiboloy for having sex with women and underage girls who faced threats of abuse and “eternal damnation.”

Charges also included sex trafficking by force, fraud and coercion, marriage fraud, money laundering, cash smuggling and visa fraud.

Saturday’s raid led to a standoff with some church members, one of whom died of a heart attack.

The Interior department said it had received a copy of the court order.

“We will seek clarification from RTC Branch 15 considering that the police operations and barricades do not pose a threat to life, liberty or security of KOJC members,” DILG Secretary Benjamin “Benhur” C. Abalos, Jr. said in a statement.

“Rather, these are only being done pursuant to the lawful enforcement of the warrants of arrest from the Pasig City RTC Branch 159 and Davao City RTC Branch,” he added.

He said the court did not order police to stop serving the arrest warrant.

“Therefore, the Philippine National Police will continue to carry out its duty to serve the warrants of arrest against Apollo Quiboloy and his co-accused, with due respect to human rights and the legal process,” Mr. Abalos said.

The church, represented by one of its pastors, earlier asked the court to stop the police and Interior department from violating the rights of its members.

President Ferdinand R. Marcos, Jr. on Wednesday told reporters he does not see human rights violations in the police operation.

“I don’t understand why Quiboloy is involving his followers in this situation,” he said in Filipino. “He’s putting them in harm’s way when they haven’t done anything wrong.”

“They didn’t sign up to be on the frontline of this kind of thing, where they have to protect him from arrest, even though he has cases filed against him not just here in the Philippines but also in the US,” Mr. Marcos said.

Supreme Court spokesperson Camille Sue Mae L. Ting told reporters in a Viber group chat the “temporary protection order” issued by the lower court does not deter the service of the warrant.

Meanwhile, the Commission on Human Rights (CHR) reminded police to observe human rights and maximum tolerance amid the standoff.

“The commission reiterates its appeal to the PNP to exercise maximum tolerance and to avoid misconduct and arbitrary arrests,” it said in a statement.

It said it was investigating incidents involving policemen and church members whose right might have been violated.

It also said it has noted the rescue of two alleged human trafficking victims inside the compound.

“The commission expresses deep concern over reports of illicit activities reportedly committed by some members of the PNP and Kingdom of Jesus Christ,” it added.