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House to back bill restoring NFA’s powers

PHILIPPINE STAR/MIGUEL DE GUZMAN

THE House of Representatives will swiftly act on a proposal to restore the National Food Authority’s (NFA) market regulatory powers once it is transmitted to the chamber, Speaker Ferdinand Martin G. Romualdez said on Monday.

“This NFA revamp bill is one way to lower food prices, empower farmers and protect our consumers,” he said in a statement.

The Agriculture department last week said it is finalizing a draft bill that aims to restore the NFA’s market regulatory powers, such as allowing it again to manage buffer stocks and regulate rice marketing.

The measure also seeks to provide the NFA the power to set floor prices for palay, it added.

Mr. Romualdez said the measure would allow the NFA to “directly intervene” in the rice market by purchasing palay from farmers and releasing buffer stocks during natural disasters, hoarding incidents or suspected market manipulation.

“These are reforms for and within the NFA to benefit both farmers and consumers,” he said, adding that efforts to empower the food agency would include transparency and good governance provisions.

“We’ve learned lessons from the past, and we will ensure that the shortcomings of the NFA are not repeated,” said Mr. Romualdez. — Kenneth Christiane L. Basilio

Marilao northbound now completely passable, says NLEX

PHILIPPINE STAR/MICHAEL VARCAS

THE North Luzon Expressway (NLEX) Corp. said on Monday that it has finished the major structural repairs on the Marilao Bridge after it sustained significant damage due to a truck violating regulations.

After the completion of repairs as of Monday midnight, all four lanes of the NLEX Marilao Northbound have since been passable to motorists, the company said in a statement.

“Rest assured, NLEX is committed to improving safety and traffic management across key areas of the expressway to ensure the safety and convenience of our valued customers,” the company said.

A trailer container truck struck the bridge girder as it passed northbound, resulting in one fatality and six injured.

Transportation Secretary Vivencio B. Dizon earlier directed the suspension of toll collection in the affected segment in Marilao area should there be sustained heavy traffic.

NLEX is a unit of Metro Pacific Tollways Corp., which in turn, is the tollways unit of Metro Pacific Investments Corp., one of three key Philippine units of Hong Kong-based 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 stake in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

Ilocos Norte gets P100-M sports institute grant

Casino Filipino Ilocos Norte Branch Manager Danilo Tejano (3rd from right) formally handed over PAGCOR’s P100-million grant to Senior Board Member Rafael Medina (2nd from left) who represented Governor Matthew Manotoc. Also in the photo are employees of Casino Filipino Ilocos Norte.

THE Philippine Amusement and Gaming Corporation (PAGCOR) has awarded the Ilocos Norte provincial government a P100-million grant for the development of a sports institute and research facility.

The grant will partially fund the Ilocos Norte Sports Institute and Research (INSPIRE) Training Development Center and Dormitory, a flagship project costing P400 million.

“This project will not only uplift our athletes but will also inspire future generations and strengthen Ilocos Norte’s capacity to craft sustainable world-class sports programs,” PAGCOR Chairman and Chief Executive Officer Alejandro H. Tengco said in a statement on Monday.

The project also aims to help discover homegrown athletic talent and advance sports development in the Ilocos region. — CAT

P13-M drugs seized in Marawi operation

COTABATO CITY — Anti-narcotics agents confiscated P13 million worth of crystal meth (shabu) from a dealer entrapped with the help of local officials in Barangay Bangolo in Marawi City, Lanao del Sur on Sunday.

The 21-year-old male suspect is now in the custody of the Philippine Drug Enforcement Agency-Bangsamoro Autonomous Region in Muslim Mindanao (PDEA-BARMM).

Gil Cesario P. Castro, director of PDEA-BARMM, told reporters on Monday, that the suspect was immediately detained by their agents and personnel of different police units under the Police Regional Office-Bangsamoro Autonomous Region after he sold two kilos of shabu, costing P13 million, during a tradeoff in Barangay Bangolo in Marawi City.

Mr. Castro said the Marawi City police force, Lanao del Sur Gov. Mamintal A. Adiong, Jr., the Lanao del Sur Provincial Police Office and the Army’s 103rd Infantry Brigade supported the entrapment operation that resulted in his arrest.

Mr. Castro said they are to prosecute the suspect for violation of the Comprehensive Dangerous Drugs Act of 2002 using the P13 million worth of shabu confiscated from him as evidence.

He said they are grateful to Maranao political and traditional leaders for providing them information pertaining to the suspect’s shabu peddling activities, enabling them to entrap him promptly. — John Felix M. Unson

PSEi sinks to two-month low on Mideast conflict

BW FILE PHOTO

PHILIPPINE SHARES dropped further on Monday, dragging the main index to a two-month low, due to worsening conflict in the Middle East after the United States attacked Iran over the weekend.

The bellwether Philippine Stock Exchange index (PSEi) sank by 1.91% or 121.49 points to close at 6,218.28, while the broader all shares index went down by 1.43% or 54 points to 3,706.56.

This was the PSEi’s lowest close in nearly two months or since its 6,158.48 finish on April 24.

“The local market dropped as investors reacted to the escalation of the Israel-Iran conflict upon the involvement of the United States,” Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message. “Investors dealt with the economic repercussions of the escalation, including the outlook of higher oil prices and the depreciation of the peso. This comes amid Iran’s plan of blocking the Strait of Hormuz where a significant amount of oil shipments go through.”

“Philippine shares were sold down on Monday back to 6,200 level, tracking the broader market, as Middle East tensions continued with US President Donald J. Trump further fueling tensions as the US enters the war,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan likewise said in a Viber message.

Iran said on Monday that the US attack on its nuclear sites expanded the range of legitimate targets for its armed forces and called Mr. Trump a “gambler” for joining Israel’s military campaign against the Islamic Republic, Reuters reported.

Iran’s most effective threat to hurt the West would probably be to restrict global oil flows from the Gulf. Oil prices spiked on Monday at their highest since January.

Attempting to strangle the strait could send global oil prices skyrocketing, derail the world economy and invite conflict with the US Navy’s massive Fifth Fleet that patrols the Gulf from its base in Bahrain.

At home, all sectoral indices closed lower on Monday. Mining and oil plummeted by 3.48% or 359.28 points to 9,952.07; services dropped by 2.56% or 56.75 points to 2,155.76; financials sank by 2.4% or 55.80 points to 2,265.08; holding firms retreated by 1.93% or 105.23 points to 5,325.96; industrials declined by 1.67% or 152.39 points to 8,940.43; and property went down by 0.54% or 12.04 points to 2,203.29.

“Only three index members closed with gains led by Manila Electric Co., rising 0.83% to P546. Puregold Price Club, Inc. was the worst index performer, dropping 5.07% to P33.70,” Mr. Tantiangco said.

Value turnover shrank to P6.29 billion on Monday with 1.03 billion shares traded from the P12.27 billion with 1.32 billion issues exchanged on Friday.

Decliners overwhelmed advancers, 142 versus 60, while 44 names were unchanged.

Net foreign buying reached P108.27 million on Monday versus the P835.44 million in net selling recorded on Friday. — Revin Mikhael D. Ochave with Reuters

Peso tumbles to fresh three-month low as US joins Iran-Israel conflict

BW FILE PHOTO

THE PESO tumbled anew against the dollar on Monday, plunging to a fresh three-month low amid market fears over an escalation in the Middle East conflict as Iran threatened to retaliate after the United States attacked its nuclear sites over the weekend.

The local unit closed at P57.58 versus the greenback, sinking by 41 centavos from its P57.17 finish on Friday, Bankers Association of the Philippines data showed.

This was the its worst close in nearly three months or since it finished at P57.69 against the dollar on March 26.

The peso opened Monday’s session weaker at P57.25 against the dollar, which was already its intraday best. It dropped to as low as P57.655 versus the greenback during the session.

Dollars exchanged dropped to $1.28 billion on Monday from $1.77 billion on Friday.

“The dollar-peso closed higher as demand for safe havens favored the dollar amid the escalating conflict in the Middle East after the US joined the war, attacking Iranian nuclear sites,” a trader said in a phone interview.

The peso sank after oil prices touched five-month highs early in Monday’s session and as markets braced for Iran’s response to the US’ attacks, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message. The Philippines is a net importer of oil.

For Tuesday, the trader expects the peso to move between P57.40 and P57.80 per dollar, while Mr. Ricafort sees it ranging from P57.45 to P57.75.

The US dollar firmed on Monday as nervy investors sought safety, although the restrained moves suggest markets were waiting for Iran’s response to US attacks on its nuclear sites that have exacerbated conflict in the Middle East, Reuters reported.

Iran said on Monday that the US attack on its nuclear sites expanded the range of legitimate targets for its armed forces and called US President Donald J. Trump a “gambler” for joining Israel’s military campaign against the Islamic Republic.

The major moves were in the oil market, with crude prices hitting a five-month high, before dipping to trade lower on the day.

The dollar firmed 1% against the yen and was last at 147.450, at its highest level since May 15. The dollar index, which measures the US currency against six other units, was 0.15% higher at 99.065.

Iran vowed to defend itself a day after the US dropped 30,000-pound bunker-buster bombs onto the mountain above Iran’s Fordow nuclear site. American leaders urged Tehran to stand down while pockets of anti-war protests emerged in US cities.

In a step towards what is widely seen as Iran’s most effective threat to hurt the West, its parliament approved a move to close the Strait of Hormuz. Nearly a quarter of global oil shipments pass through the narrow waters that Iran shares with Oman and the United Arab Emirates.

While the dollar has reprised its role as a safe haven due to the rapid spike in geopolitical risks, the relatively muted moves suggest investors remain wary of going all in on the greenback.

The US currency has dropped 8.6% this year against its major rivals as economic uncertainty from Mr. Trump’s tariffs and concern over their impact on US growth led investors to scurry for alternatives. — A.M.C. Sy with Reuters

EV strategy expected to create 680,000 jobs

REUTERS

THE Department of Trade and Industry (DTI) said it expects around 680,000 jobs to be created under the recently approved Electric Vehicle Incentive Strategy (EVIS).

“The new strategy is expected to attract P120 billion in capital investment that will help spur job creation,” Trade Secretary Ma. Cristina A. Roque said in a statement on Monday.

“The influx of investments will generate about P11.4 trillion in economic output,” she added.

The EVIS is also expected to boost the government’s tax revenue by P400 billion against a full-import EV scenario and generate savings of up to $30 billion in foreign exchange by reducing import dependence.

A component of the Electric Vehicle Industry Development Act (EVIDA), EVIS provides targeted fiscal and non-fiscal incentives that stimulate domestic production of EVs, batteries, parts, charging stations, and testing facilities.

“The incentive structure supports both capital investment and sustained production,” the DTI said.

Under the incentive scheme, eligible companies are required to comply with Philippine and international standards, provide long-term after-sales support, and submit Board of Investments-vetted investment plans.

EVIS sets a production target of 9 million EVs between 2028 to 2040, including two- and three-wheelers, passenger cars, buses, and trucks.

The EVIS also targets the creation of nearly 400,000 charging stations nationwide.

“The DTI is working closely with the FIRB (Fiscal Incentives Review Board) to finalize the EVIS, which is scheduled for deliberation in July 2025,” the DTI said.

EVIDA tasked the DTI to promote and develop domestic EV manufacturing.

Under the law, the DTI is required to develop an EV incentive strategy similar to the Comprehensive Automotive Resurgence Strategy Program, which incentivized domestic assembly of mass-market internal combustion engine cars.

The government is hoping to increase the EV fleet to 2.4 million by 2028 and bring the EV adoption rate to 50% by 2040. — Justine Irish D. Tabile

Hermosa, Bataan to get SCTEX interchange

PHILSTAR FILE PHOTO

THE Bases Conversion and Development Authority (BCDA) said that it will be building an interchange that will connect Hermosa, Bataan to the Subic-Clark-Tarlac Expressway (SCTEX).

A joint collaboration between the BCDA, the Department of Public Works and Highways (DPWH), NLEX Corp., and the government of Hermosa, the project has a proposed budget of P495.347 million, including right of way.

BCDA President and Chief Executive Officer Joshua M. Bingcang said that the interchange “will unlock a new gateway to economic opportunities for Central Luzon.”

SCTEX traverses the outskirts of Hermosa but remains unconnected to the toll road.

“(It will provide) much-needed support for the region’s growing logistics and manufacturing sectors and generate more jobs,” he said in a statement on Monday.

“In support of the Luzon Economic Corridor initiative, the enhancement of SCTEX will drive industrial growth and strengthen the region’s role as a key engine of national progress,” he added.

The road interchange is expected to link Bataan’s economic zones and industrial estates to other growth corridors in Central Luzon, including the Clark Freeport Zone, New Clark City, and the Subic Bay Freeport Zone.

“It will also improve access to the BCDA-administered Bataan Technology Park in Morong, the future home of the Philippine Marine Corps,” the BCDA said.

The interchange forms part of the SCTEX Expansion and Enhancement Plan, which is being implemented by the DPWH, BCDA, NLEX Corp., and local government units.

“The project will also contribute to the government’s efforts to support connectivity along the Luzon Economic Corridor, which will help position the region as a strategic manufacturing and electronics hub,” the BCDA added. — Justine Irish D. Tabile

‘The right carrier’ yet to emerge years after PHL-Spain air service agreement

Philippine Ambassador to Spain Philippe Jones Lhuillier. —  Beatriz Marie D. Cruz

By Beatriz Marie D. Cruz, Reporter

MADRID — “The right carrier” is still being awaited to mount direct flights between Spain and the Philippines following the 2018 signing of the air service agreement between the two countries, Philippine Ambassador to Spain Philippe Jones Lhuillier said.

Speaking to BusinessWorld earlier this month in Madrid, Mr. Lhuillier said direct service is “important” for boosting trade and tourism with the European Union’s (EU) fourth-largest economy.

“(What we need) is to find the right carrier that wants to take it,” Mr. Lhuillier said.

“We signed an air service treaty years ago,” according to Mr. Lhuillier, who concluded the agreement with then Spanish Minister of Public Works and Transport José Luis Ábalos Meco.

The Embassy said it has been in talks with Philippine Airlines (PAL) on the possibility of adding service to Spain.

“We’re hoping that we could convince PAL because it’s going to be a very crucial piece in our effort to really draw both countries together,” Deputy Head of Mission and Consul General Mark Francis C. Hamoy told BusinessWorld.

“Our argument is: if you want to start a Europe direct flight, Manila-Madrid is the most logical,” he added.

Madrid also serves as a gateway to Latin America, Mr. Lhuillier noted, adding to the connectivity available to Philippine businesses and tourists.

“Once you get to Madrid, Iberia flies practically to all of Latin America,” Mr. Hamoy added, referring to Spain’s flag carrier. “(PAL) might even be able to enter into a codesharing agreement with Iberia.”

Spain remains one of the most visited countries in the EU. In 2024, it welcomed a record 94 million international visitors.

“Spain, as a whole, draws in 90 million tourists every year from around the world. That’s two times their population,” Mr. Hamoy said. “If you’re flying here, you can actually market to the whole world.”

As of April, Spanish visitors to the Philippines totaled 15,998, according to the Philippine Department of Tourism. The totals from Spain lag other European nationals, led by the British (65,923), Germans (37,088), and French (36,702).

“The only way you can strengthen bilateral relations is if there’s a degree of familiarity, a degree of awareness, because all it takes is just one visit,” Mr. Hamoy said.

Mr. Lhuillier has been the envoy to Spain since 2017 but was retained in place after a conversation with President Ferdinand R. Marcos, Jr. on his remaining plans for developing the Madrid relationship, including direct flights.

“I spoke to (Mr. Marcos), and I said, ‘You know, I want to stay in Spain because there’s still a lot of opportunities which I’m excited about,’” he added.

Mr. Lhullier was the Philippine Ambassador to Italy between 1999 to 2010, and to Portugal between 2012 and 2016.

In 2027, the Philippines will be celebrating its 80th year of diplomatic relations with Spain.

Mr. Hamoy said the bilateral relationship “hasn’t really reached the full promise and potential.”

“For example, on the cultural side, there’s a lot of archival documents that are just lying around in the different archives of Spain,” he said.

The Embassy will be launching a book in 2027 detailing the history of Philippines-Spain relations, in time for the 80th anniversary of diplomatic relations.

Mr. Lhuillier said the two countries’ history with each other has been somewhat neglected.

“Spain and the Philippines — we have forgotten one another. So now, we have to push more in realizing the importance of our diplomatic relations,” he added.

Mr. Lhuillier called for the appointment of a Philippine tourism attaché to Spain, who will work to convince more visitor traffic to the Philippines.

“Before the end of the term of President Marcos, hopefully, all of our dreams will come true,” he said.

Rice MSRP lowering set for July 1 postponed

BW FILE PHOTO

THE Department of Agriculture (DA) is holding off on plans to lower the maximum suggested retail price (MSRP) of imported rice pending an assessment of the impact of the war in Iran on commodity prices.

Affected by the delay is the plan to lower by July 1 the MSRP for imported rice of the 5% broken-grain variety to P43 from P45 per kilo, Agriculture Secretary Francisco Tiu Laurel, Jr. told reporters.

“We will hold it in abeyance,” he said, in case there are “market shocks” resulting from the Israel-Iran war, which has since attracted US intervention.

Mr. Laurel said the DA is expected to come up with a final decision by next week, though he expects a delay of about a month or two “to gain a clearer picture of where global prices are heading.”

The DA first implemented the MSRP for imported rice on Jan. 20, with an initial setting of P58 per kilo. 

The DA has said that the MSRP settings were lowered following the drop in world rice prices after India lifted its export ban on non-basmati white rice and as demand waned.

Mr. Laurel, said the DA still plans to introduce an MSRP for imported pork in August, with the final pricing will be determined closer to the rollout.

“The market is extremely fluid. Any forecast I make now might not be accurate even an hour later,” he said.

Mr. Laurel noted “heightened geopolitical risk” following the US air strikes on three nuclear sites in Iran early Sunday.

Gasoline prices are expected to increase by P2.50 to P3.20 per liter this week, while diesel prices by as much as P4.80 per liter.

Iran has since threatened to block tankers transiting the Strait of Hormuz, through which many of the other oil-producing countries in the Persian Gulf ship their petroleum.

Mr. Laurel warned that surging oil prices could have a cascading effect across the agricultural sector, with fisherfolk already suffering from higher fuel prices.

The DA is expected to release fuel subsidies for fisherfolk soon, he said, adding that the department may tap its quick-response funds.

The 2025 national budget set aside P2.5 billion in fuel subsidies for public transport operators, farmers, and fisherfolk.

The trigger for the release of the subsidies is $80 per barrel on a designated crude oil benchmark.

Mr. Laurel said farmers could also be subject to increased fertilizer costs next year, though he noted that fertilizer for the current planting season has already been procured.

“Rising oil prices also mean higher transportation costs for fertilizers and other agricultural inputs,” the DA said. — Kyle Aristophere T. Atienza

Revised air navigation proposal, 52 new projects join PPP pipeline

CIVIL AVIATION AUTHORITY OF THE PHILIPPINES/PHILSTAR FILE PHOTO

THE GOVERNMENT has added the resubmitted air navigation proposal of ComClark Network and Technology Corp., controlled by Dennis Anthony H. Uy, along with  52 new projects, to the public-private partnership (PPP) pipeline.

In a document sent to reporters, the PPP Center said the unsolicited P31.55-billion PPP for the Entire Air Navigation Services in the Philippines project has been added the pipeline but remains under evaluation by its implementing agency.

The proponents are the consortium of ComClark Network and Technology Corp., JG Summit Infrastructure Holdings, and Asia’s Emerging Dragon Corp.

The previous ComClark proposal, valued at P29.82 billion, to manage the Philippine air navigation, traffic, and control system, was rejected last year.

Overall, the PPP Center said the pipeline is now at 230 projects valued at P2.61 trillion as of June 18.

According to the PPP Center, five of the new projects are unsolicited, including the P930-million Kingsfield Gold and Leisure Cebu project, proposed by Cebu Kingsfield Holdings Corp. in partnership with the Tourism Infrastructure and Enterprise Zone Authority.

Also, among the unsolicited proposals is the P790-million Iloilo General Hospital project of Professional Services, Inc.; and the P190-million Tabaco, Albay housing development submitted by the local government and private proponent Legazpi Premium Development Corp.

The PPP Center said 41 of the projects in the pipeline were solicited PPPs of the Philippine Ports Authority.

This includes the Bidding for the Management and Operations of Cargo Handling and Other Port Related Services for various ports, such as General Santos, Balingoan and Jasaan in Misamis Oriental, Romblon and Ambulong, Tablas and Carmen, Nasugbu, San Juan, Roxas, Mansalay and Bulalacao.

The Bases Conversion and Development Authority (BCDA) submitted the New Clark City (NCC) Information and Communications Technology Passive Infrastructure Project.

This P2.8-billion project will install a “resilient, cost-efficient, and ubiquitous” Information and Communications Technology infrastructure and services across NCC to support smart urban development.

The BCDA’s Clark Integrated Transport System was also added to the pipeline. The bus rapid transit system will run for about 60 kilometers from the airport to the city’s main gates and onward to the Clark Freeport Zone.

Other projects include the P25-billion Development of a Telecommunications Satellite, and the separate P7-billion Constellation of Earth Observation Satellites of the Philippine Space Agency were added to the pipeline.

Also joining were the P740-million Bureau of Customs Processing System and P210-million Philippine Postal Corp. Public-Private Partnership and Postal Identity Card proposal.

Nine projects were delisted, led by the Operation and Maintenance with Improvement and Expansion Arrangement of the Port of General Santos project (P5.2 billion), the Bataan Emerging Gateways City (P4.94 billion), the Baguio-Pambansang Pabahay para sa Pilipino Program (P4.35 billion), and the Manila Central Post Office (MCPO) project (P1.5 billion).

Other delisted projects included the Mariano Marcos State University 2-MWp Solar PV System, the Mariveles Dialysis Center, and the Bataan Rooftop Microgrid Project.

The Development of Water Supply System for the Municipality of Mangatarem was also delisted after moving forward to the implementation stage. — Aubrey Rose A. Inosante

Penalties for selling illegal products in force, online merchants warned

BW FILE PHOTO

THE Department of Trade and Industry (DTI) said new penalties are now enforceable against online merchants and platforms selling illegal products and services.

With the end of the Internet Transactions Act’s transitory period,“the DTI is now empowered to issue takedown orders against online listings for illegal goods or services,” it said in a statement on Monday.

“Digital platforms can also be held solidarily liable with sellers for violations if they fail to act on illicit activities on their sites,” it added.

Under the law, all online marketplaces, retailers, and merchants are required to disclose the price, brand name, description, condition, and the seller’s contact details for all goods and services offered.

“Furthermore, platforms must operate accessible and equitable consumer redress systems, secure payment methods, and robust data protection standards,” the DTI said.

With the transitory period having ended on June 20, the DTI’s E-Commerce Bureau can now subpoena documents from entities under investigation.

However, the DTI clarified that its authority is only “ancillary to the primary jurisdiction of other regulatory agencies over specific goods and services.”

Trade Secretary Ma. Cristina A. Roque said: “Our goal is to give every consumer peace of mind when they shop online, while ensuring that our thousands of legitimate entrepreneurs and MSMEs are protected from unfair competition and illicit trade.”

The DTI is also developing a Philippine E-Commerce Trustmark which will act as a seal of quality for online businesses deemed compliant and trustworthy. — Justine Irish D. Tabile