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House ready to back outcome of Marcos’ US visit with legislative action

PRESIDENT FERDINAND R. MARCOS, JR. — PHILIPPINE STAR/NOEL PABALATE

A CONGRESSMAN on Tuesday said the House of Representatives is prepared to file measures aimed at helping the country capitalize on the outcomes of President Ferdinand R. Marcos, Jr.’s trip to the US, including potential tariff reductions by Washington.

“If the President can secure even a pathway toward tariff relief or a fairer trade deal, we in Congress are ready to do our part,” Leyte Rep. Ferdinand Martin G. Romualdez said in a statement. “We will file legislative proposals that will help our farmers, workers, and entrepreneurs so that the nation’s livelihood can rise.”

Mr. Marcos left the Philippines for an official trip to the American capital earlier this week, as he held investment talks and trade negotiations on the tariff placed by the US on the Southeast Asian nation.

“As the President builds bridges across borders, our role in Congress is to build ladders of opportunity here at home,” said Mr. Romualdez. — Kenneth Christiane L. Basilio

PHL foreign policy reliant on US

PRESIDENT Ferdinand R. Marcos, Jr. attends the 2nd ASEAN-Gulf Cooperation Council Summit during the 46th Association of Southeast Asian Nations Summit in Kuala Lumpur, May 27. — MARK BALMORES/PPA POOL

THE ADMINISTRATION of President Ferdinand R. Marcos, Jr. has been heavily relying on United States for its foreign policy and defense capabilities as tensions rise in the South China Sea, the think tank Center for People Empowerment in Governance (CenPEG) said.

“Marcos definitely is locked into this illusion that the future of the Philippines lies in the strong military alliance with the US and other so-called allies,” CenPEG Director for Policy Studies Bobby M. Tuazon told an online forum on Tuesday.

According to Mr. Tuazon, the President has adopted a foreign policy that retains China as an economic partner, while also tapping the US for defense capabilities.

“(He) maintains a dual balancing foreign policy, meaning maintaining economic ties with China, while turning over the Philippines to the US for defense against China,” he said.

Relations between Manila and Washington have strengthened under the Marcos administration, who has taken a more assertive stance against Beijing’s assertion into the Philippines’ exclusive economic zone.

“Under Bongbong Marcos more war drills were conducted between the Philippines and the US and other so-called allies since 2022 to the present,” Mr. Tuazon said. “(These included) Balikatan war exercises, joint patrol operations in the South China Sea, and also war exercises near Honolulu, Hawaii.”

The Marcos government has expanded joint military exercises with US forces, opened additional sites under their Enhanced Defense Cooperation Agreement (EDCA), and pursued stronger ties with other foreign partners.

The US is the Philippines’ major security partner, with a 1951 Mutual Defense Treaty compelling both nations to defend each other in case of an armed attack.

Mr. Tuazon added that the Philippines’ close relations with the US had made the country lose economic partnerships with China.

“We have lost opportunities. In fact, many presidents tend to tilt toward spending time more in military alliances, oblivious of the fact that what the Philippines need then and now is economic wealth,” he said.

In 2023, Manila backed out of Beijing’s global infrastructure scheme, as China became unresponsive to its funding requests for railway projects.

Tensions between the two countries have escalated in recent years due to their dispute in the South China Sea. — Adrian H. Halili

MRT-7 denies causing flood along Commonwealth Avenue

PHILSTAR FILE PHOTO

SAN MIGUEL CORP. (SMC) through the management of Metro Rail Transit Line 7 (MRT-7) has denied that it is responsible for Commonwealth Avenue flooding.

“Its facilities near Batasan Station on Commonwealth Avenue are not the cause of the flooding that occurred in the area, following renewed statements linking the incident in part to the ongoing project,” MRT-7 Project Management Office said in a statement on Tuesday.

This came after the Department of Transportation said that the contractors of the MRT-7 project were ordered to clear blockages along Commonwealth Avenue.

SMC, through its wholly owned unit SMC MRT-7 Corp. holds the concession to build, operate, and maintain the MRT-7.

The company said all MRT-7 structures in the area, including columns and footings, were built outside of the existing drainage lines and do not obstruct the water flow.

“These were constructed with full consideration of the drainage layout and in compliance with approved engineering plans,” it said, adding that the construction of the project was fully coordinated with the Department of Public Works and Highways.

It also added that its engineers inspected the area and pointed out that the drainage outlets were clogged with plastic waste and debris.

“This significantly reduced the system’s capacity to carry rainwater, which likely contributed to surface flooding,” it said. — Ashley Erika O. Jose

Disaster resilience bill refiled

PHILIPPINE STAR/MIGUEL DE GUZMAN

A SENATOR on Tuesday said he had refiled a bill that seeks to create a government agency for disaster preparedness and a network of food banks.

In a statement on Tuesday, Senator Jose “Jinggoy” P. Ejercito Estrada said that he had refiled the Disaster Resilience Bill that seeks to create a government agency that coordinates, enhances, and expedites operations related to disaster preparedness, response, and recovery.

He had also refiled the Disaster Food Bank and Stockpile Bill, which seeks to create local food and non-food stockpiles to ensure urgent relief and humanitarian assistance for families displaced by natural calamities and emergencies.

“Disaster resilience begins long before the typhoon hits or the ground shakes. It starts with smart planning, readiness, and rapid response capabilities,” he said. “These two proposed laws aim to address the gaps that often lead to avoidable loss of lives, hunger, and delayed recovery.”

The Philippines, which lies along the typhoon belt in the Pacific, experiences about 20 storms each year.

It also lies in the so-called Pacific Ring of Fire, a belt of volcanoes around the Pacific Ocean where most of the world’s earthquakes strike. — Adrian H. Halili

Benguet lawmaker calls for online learning contingency

La TRINIDAD, Benguet — Benguet Representative Eric Go Yap is pressing for online learning contingency amid class suspensions during typhoons and monsoon rains.

Hoping to help curve learning crisis across the country, “it is high time to develop an online learning contingency for suspended classes,” Mr. Yap said.

“We should consider adding a category to shift to online learning when in-person classes are suspended. Not always, because sometimes internet connections are affected,” he added in mixed English and Filipino.

Mr. Yap further proposed a possible shift to online learning could be one way of reducing educational crisis in the country, as some students in both private and public schools struggle to recover from lost lessons due to limited remedial programs and the absence of consistent alternatives during suspensions.

While acknowledging that implementation will be difficult, he stressed the urgency of starting the transition, which could help preserve the academic calendar, reduce backlogs, and maintain learning momentum, even amid frequent disruptions.

The Department of Education in the Cordillera Administrative Region (CAR) reported they recorded 35 class disruptions in 2024 alone, accounting for the highest number of school days lost in the country, mainly due to natural disasters and calamities.

“We are facing a learning crisis. Frequent class suspensions will not help address this. We are a disaster-prone country. Not to mention, we have a lot of national and local holidays. There are way too many disruptions,” Mr. Yap said. — Artemio A. Dumlao

P1.7-M drugs seized in PDEA-BARMM operation

COTABATO CITY — Agents of the Philippine Drug Enforcement Agency (PDEA) and policemen seized P1.7 million worth of crystal meth (shabu) from two peddlers entrapped in one of the barangays in this city on Monday.

Senior city officials and Moro traditional leaders who helped the PDEA-Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) plan the successful sting confirmed to reporters on Tuesday, that plainclothes anti-narcotics agents had seized from the two male suspects during a tradeoff at the Martinez area in Barangay Poblacion 4 in Cotabato City.

Gil Cesario P. Castro, director of the PDEA-BARMM, said on Tuesday that the two suspects are now locked in their detention facility, to be prosecuted for violation of the Comprehensive Dangerous Drugs act of 2002 using the 250 grams of shabu confiscated from them as evidence.

The suspects were immediately frisked and cuffed by PDEA-BARMM agents and policemen under Cotabato City’s police director, Col. Jibin M. Bongcayao, after selling their illegal merchandise.

Mr. Castro said the operation that led to their arrest was supported by the office of Cotabato City Mayor Bruce D. Matabalao. — John Felix M. Unson

Shares inch up ahead of Marcos-Trump meeting

BW FILE PHOTO

PHILIPPINE SHARES edged up on Tuesday as investors await updates on bilateral talks between the Philippines and the United States and on expectations of further monetary easing at home.

The benchmark Philippine Stock Exchange index (PSEi) inched up by 0.04% or 2.95 points to end at 6,355.69, while the broader all shares index rose by 0.1% or 3.76 points to 3,757.20.

“The PSEi corrected higher for the third consecutive trading day as President Ferdinand R. Marcos, Jr. is scheduled to meet US President Donald J. Trump on July 22 (US time) that could lead to a possible trade deal,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“The market also improved after the latest dovish signals from Finance Secretary Ralph G. Recto on possible 50-basis-point (bp) rate cuts for the rest of 2025…,” he added.

Mr. Marcos is in the US from July 20-22. He had a meeting with US Secretary of Defense Pete Hegseth at the Pentagon on the first day of his three-day working visit.

Mr. Marcos is also set to meet with Mr. Trump to discuss trade and security. Mr. Trump earlier announced a 20% “reciprocal” import tariff on Philippine products starting Aug. 1, higher than the initial 17% duty set in April.

Meanwhile, Mr. Recto, who sits on the central bank’s policy-setting Monetary Board, said last week that the Bangko Sentral ng Pilipinas (BSP) has room for two more 25-bp cuts this year amid subdued inflation.

Last month, the BSP delivered a second straight 25-bp cut to bring its policy rate to 5.25%. The Monetary Board has three more meetings this year.

“The PSEi remains above the 6,350 mark, holding modest gains as sentiment showed slight improvement despite lower than usual market volume,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan added in a Viber message. “Technical setups hint at renewed confidence while still cautious after last week’s dip, most likely awaiting the development of the trade discussions in Washington this week and upcoming corporate earnings.”

Majority of sectoral indices rose on Tuesday. Mining and oil climbed by 0.89% or 81.67 points to 9,199.41; property increased by 0.69% or 16.41 points to 2,391.26; financials went up by 0.64% or 14.37 points to 2,248.90; and industrials inched up by 0.11% or 10.40 points to 9,140.11.

Meanwhile, holding firms dropped by 0.61% or 33.11 points to 5,397.20 and services went down by 0.13% or 2.79 points to 2,139.35.

Value turnover decreased to P5.01 billion on Tuesday with 1.07 billion shares traded from the P5.79 billion with 1.14 billion shares exchanged on Monday.

Advancers edged out decliners, 97 versus 96, while 45 names were unchanged.

Net foreign selling went down to P14.67 million on Tuesday from P36.3 million on Monday. — Revin Mikhael D. Ochave

BPOs wary of ‘indirect’ effects of US tariffs

STOCK PHOTO | Image by DC Studio from Freepik

By Justine Irish D. Tabile, Reporter

THE IT & Business Process Association of the Philippines (IBPAP) said US tariffs may result in disruptions to global investment flows that could ultimately affect its industry.

IBPAP President and Chief Executive Officer Jonathan R. Madrid said no direct impact is expected on the information technology and business process management (IT-BPM) industry, which is also known as the Business Process Outsourcing (BPO), because it supplies services and not goods.

“(Nevertheless), we are closely monitoring the broader economic and investment impacts this may indirectly bring,” he told BusinessWorld.

US President Donald J. Trump announced a 20% tariff on the Philippines this month, higher than the 17% reciprocal tariff he initially imposed in early April.

Mr. Madrid said the government has responded to the US tariff decisions promptly, with a diplomatic push by President Ferdinand R. Marcos, Jr., who is visiting Washington for “a strategic dialogue.”

“Their efforts reflect a strong commitment to investment promotion and economic diplomacy at a critical time,” he added.

He said sustained engagement and collaboration with the US will help “ensure that the Philippine economy remains resilient and attractive to global investors, especially with US counterparts.”

Mr. Marcos and tariff negotiators are in the US to negotiate a lower rate.

Mr. Marcos was due to meet Mr. Trump on Tuesday, Washington time, becoming the first head of state from the Association of Southeast Asian Nations to meet the US President during his second term.

IBPAP said it still expects a 5% increase in industry revenue this year and between 4% and 5% workforce growth.

“For 2025, we are going to show growth. I think we will touch $40 billion in revenue as an industry and should touch 1.9 million in terms of number of workers,” Mr. Madrid said.

Biodiesel blend changes suspended amid high global prices of coco oil

An attendant fills up a vehicle at a gasoline station in Manila, Sept. 18, 2023. — PHILIPPINE STAR/EDD GUMBAN

THE Department of Energy (DoE) said it suspended the planned increase in the coco methyl ester (CME) component of biodiesel, citing the potential impact on pump prices.

In an advisory dated July 17, the DoE informed the downstream oil industry, biodiesel producers, and other stakeholders of the suspension of the CME hike in the biodiesel blend.

The increase to 4% biodiesel blend (B4) was due to be implemented on Oct. 1, going to B5 a year later.

National Biofuels Board (NBB) issued a resolution in May to suspend changes to the biodiesel blend due to “anticipated significant impact on pump prices and the potential inflationary effects on the national economy.”

Energy Undersecretary Alessandro O. Sales said last month cited the current high cost of coconut oil, a primary feedstock for CME.

Mr. Sales said that the global price of coconut oil at the start of the year was about $1,100 per metric ton. This increased to over $3,000 per metric ton at the time of the NBB decision.

“Moving forward, the NBB shall regularly assess and recommend appropriate market interventions to help stabilize the price of biodiesel and its feedstock,” the DoE said.

The DoE will issue a directive to resume the upward adjustments once the NBB gives its approval.

The Biofuels Act of 2006 requires that all liquid fuels for motors and engines contain locally sourced biofuel components.

Under the law, the NBB is tasked with monitoring the implementation of the National Biofuel Program as well as the supply and usage of biofuels and biofuel blends.

The CME blend in diesel was raised to 3% on Oct. 1, 2024 from 2% previously. The blending of biofuels was originally intended to decrease dependence on imported fuel, reduce greenhouse gas emissions, and support the biodiesel industry. — Sheldeen Joy Talavera

PAGCOR driving upside surprise in GOCC dividends, Recto says

GOVERNMENT-OWNED or -controlled corporations’ (GOCCs) dividends will be stronger than expected this year, with the gaming industry regulator largely responsible for the upside, Finance Secretary Ralph G. Recto said.

“PIGO (Philippine Inland Gaming Operations) led to an increase in dividends from PAGCOR (Philippine Amusement and Gaming Corp.), which we did not expect,” he told reporters recently.

Mr. Recto has said that GOCC dividends overall will exceed the target by “P90 billion to P110 billion.”

The Budget of Expenditures and Sources of Financing report had assumed that state-run firms will remit only P20 billion this year.

Asked to clarify whether Mr. Recto meant the final dividend tally would be P110-P130 billion, Undersecretary Ma. Luwalhati C. Dorotan-Tiuseco provided confirmation.

The Department of Finance (DoF) reported on Tuesday that GOCCs had remitted P105 billion to the Bureau of the Treasury as of July, indicating that dividends are currently approaching the low end of the projected range. 

The top source of dividends was the Land Bank of the Philippines, which had remitted P26 billion.

This was followed by the Bangko Sentral ng Pilipinas (P18.91 billion), PAGCOR (P12.68 billion), and Philippine Deposit Insurance Corp. (P10.13 billion), Power Sector Assets & Liabilities Management Corp. (P8.96 billion), the Philippine Ports Authority (P5.20 billion) and Manila International Airport Authority (P3.32 billion).

Rounding out the list of top remitters were Clark Development Corp. (P2.49 billion), the Philippine National Oil Co. (P2.43 billion) and the Bases Conversion and Development Authority (P2.20 billion) also among the top remitters.

In order to boost nontax revenue, the DoF had requested GOCCs to remit dividends equivalent to 75% of their net earnings, well above the 50% floor set by Republic Act No. 7656 or the Dividend Law.

Separately, Mr. Recto ruled out any possible sales of major government assets this year, saying that any disposals will be small.

Asked for updates on the proposed sale of the government’s stake in the Subic-Clark-Tarlac Expressway (SCTEX), Mr. Recto said: “I think that’s still being worked on” by Metro Pacific Investments Corp. and the Bases Conversion and Development Authority.

Last year, the BCDA said it was considering selling its remaining stake in the toll road to MPIC.

Mr. Recto also floated the possibility of the Social Security System or Government Service Insurance System taking over the SCTEX stake, failing which the two government pension funds could look into “other privatization assets.”

The government is set to generate P36.26 billion from the sale of the Caliraya-Botocan-Kalayaan hydroelectric complex.

For 2026, the goal for privatization proceeds has been set at around P100 billion after changes to the medium-term fiscal framework approved by the Development Budget Coordination Committee. 

MPIC is one of the three key Philippine units of Hong Kong’s First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority share in BusinessWorld through the Philippine Star Group, which it controls. — Aubrey Rose A. Inosante

Ban on e-gaming could result in job losses, attract underground operators — consultant

BW FILE PHOTO

THE proposed online gaming ban could result in job losses, the proliferation of underground gaming operations, and a decline in government revenue, a regulatory consultant said.

The current operators “implement robust (know-your customer protocols), age verification, self-exclusion tools, and real-time monitoring. You ban those, and what you get is a black-market surge,” according to Marie Antonette B. Quiogue, chief executive officer of Arden Consult, which advises technology companies on navigating Philippine regulations.

Senators Juan Miguel F. Zubiri and Christopher Lawrence T. Go have filed separate bills seeking to ban e-games.

Ms. Quiogue said in a statement that illegal and unregulated gambling operations are the “real enemy” and not licensed platforms that follow global best practices.

“The infrastructure is already in place. What we need is stronger enforcement against illegal operators, not policies that penalize the compliant,” she said.

The administration’s economic managers support stricter regulation of the industry instead of a ban.

Finance Secretary Ralph G. Recto said the government is considering raising the levy on e-gaming operators proposed that operators be required to list on the Philippine Stock Exchange.

Secretary Arsenio M. Balisacan of the Department of Economy, Planning, and Development said supported such a tax hike while floated a proposal to tax e-wallets.

A group of 14 licensed operators has warned that a ban will result in 50,000 lost jobs.

Mr. Recto has said that about 60% of the gaming market operates illegally. — Aubrey Rose A. Inosante

DA says crop damage initially estimated at P134.7 million

PHILIPPINE STAR/MICHAEL VARCAS

THE Department of Agriculture (DA) said preliminary crop damage estimates totaled P134.7 million following heavy rains generated by tropical storm Crising and the southwest monsoon.

Citing the DA’s Disaster Risk Reduction Management Operations Center, the DA said the estimate covers losses to rice, corn, cassava, high value crops, fisheries, livestock and poultry.

“Affected areas span 8,035 hectares while affected farmers and fisherfolk number 6,377,” it added.

“We are keeping a close watch to prevent significant price increases on key agricultural commodities,” particularly highland vegetables, it said.

The DA has allocated P495.4 million to provide inputs to affected farmers, on top of its quick-response funds, which can be tapped for rehabilitation, survival, and recovery loans, as well as indemnification via the Philippine Crop Insurance Corp. — Kyle Aristophere T. Atienza

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