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Chinese research vessel still near Sabina Shoal, says Philippine Navy

PHILIPPINE COAST GUARD PHOTO

THE PHILIPPINE Navy on Tuesday said a Chinese research vessel equipped with advanced technology designed for marine environment observation was still near Sabina Shoal, more than a week after it left a major Chinese military outpost in the South China Sea.

Chinese research vessel Ke Xue San Hao’s “zigzag” movement “indicates something else,” and no longer qualified as innocent passage, Navy spokesman Roy Vincent Trinidad told a news briefing.

He added that the Philippine Navy continues to monitor the vessel’s movements because it might be causing environmental damage. China’s reclamation in the South China Sea has reached about 3,000 hectares, he pointed out.

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

The research vessel left Sanya port on Hainan Island on July 19, two days before the Philippine Department of Foreign Affairs announced it had concluded a deal with China to resume resupply missions to BRP Sierra Madre.

A handful of Filipino soldiers live on the World War II-era ship, which Manila grounded at the shoal in 1999 to bolster its sea claim.

Ke Xue San Hao left Mischief Reef on July 26 and has since passed through several areas including Second Thomas Shoal, Raja Soliman Shoal, Bulig Shoal, Hasa-Hasa Shoal, Abad Santos Shoal and Sabina Shoal.

Sabina is part of the Spratly Islands and falls within the Philippines’ exclusive economic zone (EEZ). It is 123.6 nautical miles from Palawan Island, which is facing the South China Sea.

Mr. Trinidad said the research vessel did not seek permission to do scientific research in the area. “We have checked with the Department of Foreign Affairs, there was no request to conduct marine scientific research.”

“We have to leave it up to our appropriate government agency how to deal with hydrographic surveys or marine scientific research within our [exclusive economic zone],” he added.

The Philippine Coast Guard earlier said the research vessel, which was designed by the Marine Design and Research Institute of China and built by Wuchang Shipbuilding Industry Co., is equipped with advanced technology that “enables comprehensive marine environment observation, detection, sampling and analysis.”

On Saturday, it said the vessel had exhibited irregular automatic identification system (AIS) transmissions while sailing through the northern part of Sabina.

Also on Tuesday, Raymond M. Powell, a fellow at Stanford University’s Gordian Knot Center for National Security Innovation, said China’s largest coast guard ship “The Monster” was still at Sabina Shoal as of Aug. 5.

It was near the Philippine Coast Guard’s 97-meter BRP Teresa Magbanua, which was stationed at the center of the shoal, along with six maritime militia vessels and three smaller militia boats rafted together, he said in an X message, citing satellite imagery.

The Monster ship has turned off its AIS since July 31, he added.

The Armed Forces of the Philippines (AFP) said the number of Chinese vessels it had monitored within the Philippines’ EEZ in the South China Sea from July 30 to Aug. 4 had risen to 122 from 104 a week earlier.

The vessels include 12 ships from the China Coast Guard, three ships from the People’s Liberation Army (PLA) and 106 maritime militia vessels, AFP spokesperson Francel Margareth Padilla told the same briefing.

At Sabina Shoal, there was one China Coast Guard ship, 12 Chinese maritime militia vessels and one Chinese research vessel, she added.

At Scarborough Shoal, there were three China Coast Guard vessels, six maritime militia vessels and one PLA vessel. There were five China Coast Guard vessels and 37 maritime militia ships at Second Thomas Shoal.

Scarborough Shoal is 240 kilometers west of the main Philippine island of Luzon and is nearly 900 kilometers from Hainan, the nearest major Chinese landmass.

Ms. Padilla said there were 37 maritime militia vessels and one China Coast Guard vessel near Philippine-occupied Thitu Island, two Chinese maritime militia vessels near Kota Island, one China Coast Guard vessel and four maritime militia ships near Lawak Island and two PLA vessels and three Chinese maritime militia vessels near Lankiam Cay or Panata Island.

There were four maritime militia vessels at Whitsun Reef, 30 maritime militia vessels near Iroquois Reef and one China Coast Guard vessel near Flat Island, which is part of the Spratly Islands.

A United Nations-backed tribunal based in the Hague in 2016 voided China’s expansive claims in the South China Sea for being illegal. — Kyle Aristophere T. Atienza

US Coast Guard men in Limay to help curb MT Terranova oil spill

THE SUNKEN MT Terra Nova off Bataan. — PHILIPPINE COAST GUARD FACEBOOK PAGE

MEMBERS of the United States Coast Guard and a Washington-based oceanic team arrived in Bataan province in northern Philippines on Tuesday to help the Philippines contain an oil spill from a sunken vessel.

The eight-man US team would give technical assistance to a local team deployed to recover three vessels that sank off the coast of Bataan last month, the Philippine Coast Guard (PCG) said in a statement.

MT Terranova was carrying 1.4 million liters of fuel when it capsized and sank about seven kilometers east of Lamao Point in Limay municipality, Bataan shortly after midnight on July 25, while Super Typhoon Carina (Gaemi) battered Metro Manila and nearby provinces.

Citing an aerial survey, the PCG said on July 30 it had seen “very minimal and unnoticeable oil sheens” along the shorelines of Manila, Bulacan, Pampanga, Bataan and Cavite after the spill.

A fishing ban has been imposed on Limay town, while eight areas in Cavite province have declared a state of calamity.

Interior and Local Government Secretary Benjamin D. Abalos, Jr. earlier this week said an inter-agency task force formed to address the oil spill would conduct weekly inspections.

Meanwhile, about 31,000 Cavite-based fishermen affected by the spill will get at least P350 daily.

The amount is equivalent to their average daily earnings, Justice spokesman Jose Dominic F. Clavano IV told reporters.

The International Oil Pollution Compensation Funds (IOPC) used the sinking of the MV Princess Empress last year as a “template” for their action in rolling aid this time, he added.

“[For the sinking of MT Terranova], the IOPC reacted quickly to give the payout,” he said. “The last time, it took six months. We expect it to be quick this time,” he added in mixed English and Filipino.

The Department of Justice (DoJ) in a separate statement said it is committed to go after the owners and crew of MT Terranova, as well as agencies that issued permits.

“Our goal is to find out if there were any mistakes or conspiracies in the issuance of licenses because this has affected many of our fellow citizens,” Mr. Clavano said in the statement.

Aside from the filing of cases, the DoJ will also provide aid to affected communities.

The oil spill from Bataan affected eight coastal municipalities in Cavite that were placed under a state of calamity last week.

Cavite Governor Juanito Victor “Jonvic” C. Remulla, Jr. has banned fishing and the sale of all marine products for safety.

The Philippine Coast Guard (PCG) last week said the oil from the tanker had reached Manila Bay.

The Department of Interior and Local Government on Saturday said it was investigating the incident as well as the sinking of the MT Jason Bradley on July 29.

About 352,000 people were affected by the spill across Southern Luzon, according to the Office of Civil Defense. Income loss from the spill was estimated at P18 million daily. — Kyle Aristophere T. Atienza and Chloe Mari A. Hufana

Congressman seeks e-sabong revival to boost state revenue

PHILSTAR

THE GOVERNMENT should legalize online cockfighting operations or e-sabong to generate state revenues, a congressman said on Tuesday, noting that the practice continues despite a two-year ban.

The government is losing revenues it could have collected from regulating online cockfighting, Party-list Rep. Marissa P. Magsino told a House of Representatives hearing.

She made the proposal after a sweeping ban on Philippine Offshore Gaming Operators (POGO).

The Philippine Amusement and Gaming Corp. (Pagcor) generated about P6.2 billion from license fee collections of legal online cockfighting operators from 2021 to 2022, Chairman Alejandro H. Tengco told congressmen.

“To generate funds, would it be possible to create a law legalizing it because it remains prevalent anyway?” Ms. Magsino asked in Filipino.

Ex-President Rodrigo R. Duterte in May 2022 banned internet-based cockfighting after dozens of gamblers who got hooked went missing. President Ferdinand R. Marcos, Jr. upheld the ban in December 2022.

About 30 gamblers went missing between 2021 and 2022, prompting a congressional probe. The cases remain unsolved.

“If made into law… we have nothing more to do but follow it,” Mr. Tengco said in Filipino.

The Philippine Charity Sweepstakes Office (PCSO) should study how much the government could earn from making online cockfighting, Quezon Rep. David C. Suarez said during the agency’s budget hearing.

“Because there’s no proper regulation, proper monitoring and policies being implemented, maybe PCSO or Pagcor… could make a position paper [on legalizing online cockfighting],” he said.

At Pagcor’s budget hearing, Northern Samar Rep. Paul R. Daza proposed a “better version” of POGOs.

“Learning from experience, without the bad elements, [let’s] come up with a better version that will help the economy,” he said.

Mr. Tengco said Pagcor would lose as much as P7.5 billion in yearly revenue from the POGO ban that President Ferdinand R. Marcos, Jr. ordered last month. — K.C.L. Basilio

Philippines’ DFA calls for peaceful transition in Bangladesh after protests

REUTERS

THE PHILIPPINES on Tuesday called for a peaceful and orderly transition of power in Bangladesh after former Prime Minister Sheikh Hasina quit at the weekend after weeks of violent street protests.

“The Philippines conveys its solidarity with the people of Bangladesh and commits to efforts aimed at restoring peace and stability in Bangladesh,” the Department of Foreign Affairs (DFA) said in a statement.

It said the Philippine Embassy in Dhaka is ready to help Filipinos based in the South Asian country.

Last week, the DFA placed Bangladesh under Alert Level 1 amid the protests, calling for Filipinos in the country to stay indoors and to keep an eye on the situation.

There are about 700 Filipinos in Bangladesh, Foreign Affairs spokesperson Ma. Teresita C. Daza told reporters in a Viber message.

The prime minister fled to India after Bangladeshis protested a quota system for government jobs that reserved a third of posts for the descendants of those who participated in the country’s 1971 liberation movement.

Bangladesh’s High Court reinstated the rule in June, which also reserved 56% of state jobs for children and grandchildren of freedom fighters, women and people from “backward districts,” Al Jazeera reported.

At least 41 people died, while 200 others were hurt in the protests, according to the Associated Press. — John Victor D. Ordoñez

Phone ban in schools backed

Students attend a class at the Commonwealth High School, in Quezon City, Metro Manila, April 18, 2024. — REUTERS

ABOUT 8 of 10 Filipinos favor a proposal to ban mobile phones in schools to keep students stay focused on their studies, according to a June poll by Pulse Asia Research, Inc.

The poll commissioned by Senator Sherwin T. Gatchalian showed 76% of Filipinos backed the ban, while 13% disagreed. About 11% said did not have an opinion.

Pulse Asia interviewed 1,200 adults on June 17- 24 for the poll, which had an error margin of ±3 points.

Mr. Gatchalian earlier filed Senate Bill No. 2706 or the Gadget-Free Schools bill, which tasks the Department of Education to craft guidelines on the phone ban in both private and public schools.

“Clearly, our fellow citizens support our proposal to ban the use of cellphones in schools, especially since their use in class time can be detrimental to students’ learning,” Mr. Gatchalian said in a statement in Filipino.  John Victor D. Ordoñez

House approves LDF bill

PHILSTAR FILE PHOTO

THE HOUSE of Representatives on Tuesday approved on second reading a bill that seeks to give the Loss and Damage Fund (LDF) Board a legal personality and allow it to operate in the Philippines.

Approved via voice vote, House Bill No. 10722 gives juridical and legal personality to the LDF Board, allowing it to buy assets and enter into contracts in the Philippines. It will also authorize the Board to negotiate with the World Bank.

The LDF Board is exempt from property and transaction taxes under the measure. It also exempts visiting Board officials from income taxes.

“The task of providing an enabling law conferring legal personality to the Board has fallen to this august chamber,” Bohol Rep. Edgar M. Chatto said in a sponsorship speech in plenary. “The Board is accorded legal personality and capacity where it can enjoy certain privileges and immunities.”

The Philippines in July won the bid to host the LDF. Philippine President Ferdinand R. Marcos, Jr. earlier said this reinforces the country’s dedication to become a leader in shaping international climate policies. — Kenneth Christiane L. Basilio

P5B more released for 4Ps

PHILIPPINE STAR/ MICHAEL VARCAS

THE DEPARTMENT of Budget and Management (DBM) on Tuesday said about P5 billion from last year’s budget would be released for the government’s conditional cash transfer program.

In a statement, the agency said the fund seeks to help ease the effects of rising prices on more than 700,000 households under the Pantawid Pamilyang Pilipino Program (4Ps).

“The DBM will do its part to streamline budget processes so that our citizens benefit from faster and more efficient delivery of essential services such as our 4Ps,” Budget Secretary Amenah F. Pangandaman said in the statement. — BMDC

ILO, Canada work vs child labor

THE International Labour Organization (ILO) and the Canadian government has partnered to strengthen freedom of association and combat child labor in the Philippines through a five-year project launched on Tuesday.

The project aims to promote the enforcement of international labor standards. It is funded by the Labour Program of Employment and Social Development Canada.

“Canada sets the bar on workers’ rights around the world,” Canadian Labor Minister Steven MacKinnon said in a statement. “Supporting our trading partners to strengthen workers’ rights is how we make sure those rights are upheld everywhere, so every worker has a workplace that is fair, safe and equitable.” — Chloe Mari A. Hufana

Maoist rebels convicted

THE DEPARTMENT of Justice Task Force on Counter-Terrorism I (DoJ-TFCT 1) on Tuesday said it scored a victory after a Mindoro Oriental trial court convicted two Communist Party of the Philippines-New People’s Army (CPP-NPA) members for the unauthorized issuance of authority to carry and illegal transfer of firearms.

Assisting Judge Jose C. Real, Jr. meted each defendant with a jail time of a year per crime.

“The period within which they are detained shall be credited in full should they abide by and follow the rules and regulations of the institution where they are continuously detained,” according to a copy of the decision promulgated on July 9. — Chloe Mari A. Hufana

Benguet vegetables saved

LA TRINIDAD, BENGUET — Benguet lawmaker Eric Go Yap has started the buying and distribution of 100 tons of cabbage and assorted vegetables for free in Metro Manila, to help farmers recover from the economic impact of Super Typhoon Carina.

Floods caused by the typhoon wreaked havoc on the trading of high-value crops after major road networks in Benguet and nearby provinces were closed. — Artemio A. Dumlao

Peso climbs to new two-month high on hawkish BSP bets

BW FILE PHOTO

THE PESO strengthened to a fresh two-month high against the dollar on Tuesday as faster-than-expected July inflation tempered expectations of a rate cut by the Bangko Sentral ng Pilipinas (BSP) next week.

The local unit closed at P57.81 per dollar on Tuesday, rising by nine centavos from its P57.90 finish on Monday, Bankers Association of the Philippines data showed.

This was the peso’s strongest finish since its P57.62-per-dollar close on May 17.

The peso opened Tuesday’s session weaker at P57.96 against the dollar. Its intraday best was at P57.80, while its weakest showing was at P58.02 versus the greenback.

Dollars exchanged went down to $1.21 billion on Tuesday from $1.76 billion on Monday.

The peso was initially weaker on safe-haven demand for the dollar due to recession fears in the US but rebounded in the afternoon as faster Philippine July inflation” [fanned] bets that the BSP may hold rates steady versus the Federal Reserve’s more aggressive tone, the first trader said by phone.

“The peso gained after hawkish remarks from BSP Governor Eli M. Remolona, Jr. that the central bank might consider holding its policy rates steady in its meeting next week,” the second trader said in an e-mail.

Mr. Remolona on Tuesday said a rate cut at its Aug. 15 review is “a little bit less likely” following the “worse-than-expected” July inflation print.

Headline inflation accelerated to a nine-month high of 4.4% in July from 3.7% in June. This was slower than the 4.7% print in the same month a year ago and was within the BSP’s 4%-4.8% forecast for the month.

However, this was higher than the 4% median estimate in a BusinessWorld poll of 15 analysts and was the fastest in nine months or since the 4.9% clip in October 2023.

The July consumer price index marked the first time since November that headline inflation exceeded the central bank’s 2-4% annual target.

The BSP chief previously signaled that they were on track to cut rates for the first time in over three years this month, possibly by 25 basis points (bps), adding that another 25-bp cut is likely next quarter.

The Monetary Board in July kept its policy rate at a 17-year high of 6.5% for a sixth straight meeting. It raised borrowing costs by a cumulative 450 bps from May 2022 to October 2023 to help tame elevated inflation.

For Wednesday, the second trader said the peso could weaken ahead of a potentially higher Philippine unemployment rate.

The first trader sees the peso moving between P57.50 and P58 per dollar, while the second trader sees it ranging from P57.65 to P57.90. — A.M.C. Sy

Index inches lower on last-minute profit taking

REUTERS

THE BELLWETHER INDEX inched lower on Tuesday due to last-minute profit taking and faster-than-expected July inflation.

The Philippine Stock Exchange index (PSEi) slipped by 0.02% or 1.49 points to end at 6,433.24 on Tuesday, while the broader all shares index rose by 0.12% or 4.47 points to finish at 3,520.94.

“The local bourse inched down… as investors took profits at the last minute. The market was initially trading in the green due to bargain hunting after Monday’s steep decline. However, a surge of last-minute profit taking pushed the market into negative territory,” Philstocks Financial, Inc. Research and Engagement Officer Mikhail Philippe Q. Plopenio said in a Viber message.

Wall Street’s decline overnight due to US recession fears and the pickup in Philippine headline inflation last month clouded investor sentiment, Mr. Plopenio said.

“Philippine shares ended with flat performance despite a strong rebound early morning as the investors continue to monitor economic data in both US and Japan especially for signs of a global recession,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

Major US stock indexes ended sharply lower on Monday as US recession worries shook global markets and drove investors out of risky assets, Reuters reported. The recession concerns followed weak economic data last week, including Friday’s soft US payrolls report.

The S&P 500 lost 160.23 points or 3% to end at 5,186.33 points; while the Nasdaq Composite lost 576.08 points or 3.43% to 16,200.08. The Dow Jones Industrial Average fell 1,033.99 points or 2.6% to 38,703.27.

Meanwhile, headline inflation accelerated to a nine-month high of 4.4% in July from 3.7% in June, the Philippine Statistics Authority reported on Tuesday.

This was slower than the 4.7% print in the same month a year ago and was within the Bangko Sentral ng Pilipinas’ (BSP) 4%-4.8% forecast for the month.

However, this was higher than the 4% median estimate in a BusinessWorld poll of 15 analysts conducted last week and was the fastest in nine months or since the 4.9% clip in October 2023.

For the first seven months, inflation averaged 3.7%, above the BSP’s 3.3% forecast for the year.

Sectoral indices were mixed on Tuesday. Mining and oil dropped by 1.75% or 143.46 points to 8,024.09; industrials retreated by 0.54% or 47.92 points to 8,801.81; and financials went down by 0.15% or 3.11 points to 1,963.28.

Meanwhile, property increased by 0.6% or 14.99 points to 2,508.59; services rose by 0.38% or 7.58 points to 1,983.42; and holding firms went up by 0.09% or 5.44 points to 5,627.89.

Value turnover dropped to P5.12 billion on Tuesday with 419.01 million shares changing hands from the P5.64 billion with 638.56 million issues traded on Monday.

Decliners outnumbered advancers, 97 versus 84, while 56 names were unchanged.

Net foreign selling climbed to P635.78 million on Tuesday from P621.93 million on Monday. — R.M.D. Ochave with Reuters