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New PI rules adopted

THE MARCOS government on Wednesday adopted new rules on preliminary investigation (PI) and inquest proceedings to ensure air-tight cases while easing court dockets.

“It’s no secret that our dockets have been heavily burdened with the volume of cases, causing delays in the administration of justice,” President Ferdinand R. Marcos, Jr. said in a speech at the signing of the Department of Justice (DoJ)-National Prosecution Service’s Rules on Preliminary Investigations and Inquest Proceedings at the presidential palace.

“Today, we address this problem by introducing reforms that are a product of the strong collaboration between the Executive and the Judiciary,” he said. 

Justice Secretary Jesus Crispin C. Remulla said the new rules would institutionalize the executive and inquisitorial nature of preliminary investigations, “reinforcing the DoJ’s authority in this domain.”

“The new rules will also enhance prosecutorial functions, empowering them to take a proactive role in the investigation of crimes and ensure efficient case build-up,” he added. — Kyle Aristophere T. Atienza

Senate building cost rises to P25B

CONCEPTUAL PHOTO of new Senate building. — PHILSTAR FILE PHOTO

THE DEPARTMENT Public Works and Highways (DPWH) on Wednesday said construction costs of the new Senate building in Fort Bonifacio, Taguig City have ballooned to at least P25 billion from P8.6 billion, updating its earlier estimate of P23 billion.

“It would reach about P25 billion to P27 billion including the cost of land,” Public Works Undersecretary Antonio V. Molano, Jr. told a Senate committee on accounts hearing.

“To my estimate from the time the project was bid out, it has increased by more or less 20% to 25%,” he said.

Senator Alan Peter S. Cayetano asked the agency to consider inflation in its review of the costs, which he said have jacked up the construction costs of other government projects. — John Victor D. Ordoñez

Anti-drug policy should be health-focused — UP

THE UNIVERSITY of the Philippines Diliman campus in Quezon City. — UP.EDU.PH 

A UNIVERSITY of the Philippines (UP) Diliman-College of Law study has recommended a public health approach to tackle the country’s illegal drug problem, instead of a punitive approach.

“The approach to drug use should be based on public health rather than punitive measures,” UP College of Law Professor Glenda T. Litong told a drug policy summit on Wednesday.

“The public health approach advocates evidence-informed, human rights-oriented and person-centered strategies,” she added.

Health workers should be the first point of contact for drug users and not law enforcers, according to the UP study.

Masood Karimipour, regional director of the United Nations (UN) Office on Drugs and Crime, told the summit the Philippines has made progress in the past two years in having a public health and human rights-based response to the illegal drug problem.

“Criminalization has neither diminished drug use nor deterred drug-related crimes,” UN Philippines Resident Coordinator Gustavo Gonzalez told the summit. “Instead, more and more lives are ruined, not just by the use of drugs in itself, but also by the fallout of counter-productive policies.”

Rehabilitation programs should be holistic, flexible, community-based and should have sufficient funding, according to the UP study. — Chloe Mari A. Hufana

Jollibee job deal signed

THE LABOR department has signed a deal with Jollibee Foods Corp. to allow about 900 poor kids to pursue their studies under a special program.

“Through the training and internship that the company offers, beneficiaries gain hands-on experience in real-world environments, industry-specific skills, professional development and mentorship,” Labor Secretary Bienvenido E. Laguesma said in a statement.

More than 18,000 students were given temporary jobs in the first six months under the program.

Jollibee’s vision is to contribute to nation-building through meaningful employment, especially for poor students, Chief Human Resources Officer Ruth B. Angeles said in the same statement. — Chloe Mari A. Hufana

Peso rises further on Powell comments

IIIJAOYINGIII-PIXABAY

THE PESO strengthened further against the dollar on Wednesday, posting its best close in over a month, following dovish comments from US Federal Reserve Chair Jerome H. Powell.

The local unit closed at P58.32 per dollar on Wednesday, rising by 12 centavos from its P58.44 finish on Tuesday, Bankers Association of the Philippines data showed.

This was the peso’s strongest finish since its P57.97-per-dollar close on May 28.

The peso opened Wednesday’s session weaker at P58.48 against the dollar. It dropped to as low as P58.50, while its intraday best was at P58.30 versus the greenback.

Dollars exchanged inched down to $1.16 billion on Wednesday from $1.18 billion on Tuesday.

The peso was supported by market expectations of a Fed rate cut by September, the first trader said by phone.

“The peso continued to gain following dovish cues from Mr. Powell’s congressional testimony to the US Senate,” a second trader said in an e-mail.

The US is “no longer an overheated economy” with a job market that has cooled from its pandemic-era extremes and in many ways is back where it was before the health crisis, Mr. Powell said in remarks to Congress that suggested the case for interest rate cuts is becoming stronger, Reuters reported.

Mr. Powell in his prepared remarks told US senators that inflation had been improving in recent months and that “more good data would strengthen” the case for looser monetary policy.

The Fed has kept its policy rate in the 5.25% to 5.5% range since July of 2023.

His remarks appeared to show increasing faith that inflation will return to the Fed’s target, contrasting the lack of progress on inflation in the first months of the year to recent improvement that has helped build confidence that price pressures will continue to diminish.

The Fed receives consumer price information for the month of June on Thursday. The consumer price index (CPI) did not rise at all in May, and analysts anticipate another weak reading later this week.

Following Mr. Powell’s comments, investors continued to put a nearly 70% probability on a Fed rate cut in September, something that would likely require changes to the policy statement to be released after the Fed’s July 30-31 meeting.

For Thursday, the first trader expects the peso to strengthen further as the market awaits the release of June US CPI data. The second trader said Mr. Powell’s testimony to the US House of Representatives overnight could also lift the peso.

The first trader expects the peso to move between P58.20 and P58.50 per dollar on Thursday, while the second trader sees it ranging from P58.15 to P58.40. Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort gave a forecast range of P58.25 to P58.45 against the greenback. — AMCS with Reuters

Profit taking snaps PHL shares’ two-day climb

BW FILE PHOTO

PHILIPPINE STOCKS dropped on Wednesday, snapping their two-day climb, on profit taking and amid fears that an early rate cut by the Bangko Sentral ng Pilipinas (BSP) would put pressure on the peso.

The bellwether Philippine Stock Exchange index (PSEi) fell by 1.02% or 67.31 points to close at 6,489.35 on Wednesday, while the broader all shares index declined by 0.79% or 28.20 points to end at 3,510.04.

“The local bourse dropped due to profit taking after two consecutive days of market rally,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.

“Moreover, although the BSP’s rate cut in August was highly anticipated by investors, the possibility that the rate cut may lead to further weakness of the peso to below P59 against the dollar negatively affected sentiment,” Ms. Alviar said.

The peso may breach its record low of P59-per-dollar and even hit he P60 mark if the Philippine central bank cuts rates as early as August, Fitch Solutions’ unit BMI said on Tuesday.

BSP Governor Eli M. Remolona, Jr. has said the central bank could deliver its first rate cut in over three years by next month as they expect inflation to continue easing this semester.

The BSP last month kept its policy rate at a 17-year high of 6.5% for a sixth straight meeting after raising interest rates by a cumulative 450 basis points from May 2022 to October 2023.

The local unit hit its record low of P59 against the dollar in October 2022. It has been trading at the P58-per-dollar range since May as the US Federal Reserve said it could keep rates higher for longer due to sticky inflation in the world’s largest economy.

On Wednesday, the local unit closed at P58.32 per dollar, strengthening by 12 centavos from its P58.44 finish on Tuesday, Bankers Association of the Philippines data showed. This was the peso’s best finish in more than a month or since its P57.97 close on May 28.

“Philippine shares took a breather, slipping below the 6,500 level, following Wall Street’s mixed results,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

All sectoral indices closed lower on Wednesday. Industrials fell by 1.64% or 150.67 to 9,021.85; mining and oil went down by 1.55% or 133.77 points to 8,461.99; property shed 1.02% or 26.29 points to end at 2,541.66; services dropped by 0.92% or 18.80 points to 2,010.81; holding firms retreated by 0.86% or 48 points to 5,531.54; and financials decreased by 0.51% or 10.31 points to 1,992.99.

Value turnover declined to P6.22 billion on Wednesday with 413.15 million shares changing hands from the P6.74 billion with 767.99 million issues traded on Tuesday.

Decliners overwhelmed advancers, 111 versus 62, while 62 names closed unchanged.

Net foreign selling increased to P202.79 million from P16.77 million on Tuesday. — A.E.O. Jose

Port constraints expected to delay offshore wind progress

ELECNOR

THE PHILIPPINES is likely to miss its target of launching offshore wind farm operations by 2028 due to lack of progress in developing the specialized ports that will service the wind farms, the Philippine Ports Authority (PPA) said.

“Although there are 10 service contracts, I do not think all 10 could be concluded or implemented by 2028. (So far) we are looking at whether we can establish a template for the offshore wind terminals, in order to get at least one or two running by 2026 or 2027,” PPA General Manager Jay Daniel R. Santiago said.

The Department of Energy (DoE) has said the 10 concessions have a combined capacity of 6.72 gigawatts (GW).

“We are in close coordination with the DoE on the establishment of terminals to address the deployment of offshore wind equipment and facilities,” Mr. Santiago said.

The government is working with the Asian Development Bank to conduct the feasibility study for the development of 10 ports initially nominated to service the offshore industry.

“The DoE has identified at least 10 ports. At least 60% of those ports are under PPA,” Mr. Santiago said.

The feasibility study will validate whether the locations are suited as support facilities for wind farms operators.

Ports will play a crucial role in offshore wind development as their supply chains, infrastructure and other components will be transported from there to the offshore sites.

The DoE considers the offshore wind project that has made the most progress to be the one in Ilocos Norte, Mr. Santiago said, adding that if completed, that facility is expected to be the first concession to start operations. 

Earlier, the Transportation department estimated that repurposing ports for offshore wind development will cost around $80 million. 

The DoE has said that funding to make ports ready for the offshore wind industry needs to be budgeted for in the 2025 spending plan. 

Ports that can accommodate wind power equipment are critical items in meeting the government’s timeline, according to Pedro H. Maniego, Jr., senior policy advisor at the Manila-based climate and energy policy group Institute for Climate and Sustainable Cities.

“If PPA can’t repurpose the ports in the identified offshore wind areas, it will certainly affect the target completion dates of offshore wind projects,” Mr. Maniego said via Viber.

Jose M. Layug, Jr., president of the Developers of Renewable Energy for Advancement, Inc., said the Energy department’s aggressive push for offshore wind development is subject to “many variables,” which “need to be addressed to ensure the development of offshore wind in the Philippines, including transmission and distribution infrastructure and ports,” he said via Viber message. 

Mr. Layug said the Energy department could consider a pilot project of between 250 megawatts and 500 megawatts in 2028 in order to have an attainable target. 

“The DoE can then announce a long-term target with a specific megawatt capacity for offshore wind from 2029 to 2034 to give the investors the proper signals about the capacity needed by the Philippines,” he said.

To date, the DoE has awarded 91 offshore wind energy service contracts with a potential capacity of 65.12 GW. — Ashley Erika O. Jose

Hosting ‘loss and damage’ fund could focus attention on PHL climate finance

PHILIPPINE STAR/ MICHAEL VARCAS

THE PHILIPPINES has an opportunity to attract more attention to its climate financing needs after it was chosen to host the board of the Loss and Damage Fund (LDF), the Department of Finance (DoF) said.

“Hosting the LDF Board will unlock more opportunities for the Philippines to accelerate its access to climate finance and investments, which are critical for future-proofing our economy and ensuring sustainable and inclusive growth,” Finance Secretary Ralph G. Recto said in a statement. 

The Philippines was selected to host the LDF Board at a meeting in Incheon, South Korea on Tuesday.

President Ferdinand R. Marcos, Jr. made the announcement via X (formerly Twitter) late Tuesday. 

“Hosting the LDF Board reinforces our dedication to inclusivity and our leadership role in ensuring that the voices of those most affected by climate change shape the future of international climate policy,” he said.

Other countries that were considered to host were Antigua and Barbuda, Armenia, the Bahamas, Barbados, Eswatini, Togo, and Kenya.

The fund seeks to support developing countries impacted by natural disasters caused by climate change. It will be operationalized by the World Bank for four years.

The Philippines is one of countries deemed most vulnerable to climate-related calamities, and struggles with limited resources for post-disaster rehabilitation and mitigation.

As the host of the board, the Philippines will have the chance to collaborate with other countries in tackling climate-related issues and disaster risk management, DoF said.

“By hosting the LDF Board, the Philippines will play a leading role in helping attract significant support from developed countries and development partners to provide concrete financial contributions in averting, minimizing, and addressing loss and damage,” the DoF added.

On March 1, Mr. Marcos established a technical working group to work on the country’s bid to host the LDF.

The bid offer was put forward by the DoF, the Department of Environment and Natural Resources, the Department of Foreign Affairs, the Department of Budget and Management, and the Climate Change Commission.

The Philippines secured a seat on the LDF Board during the 28th United Nations Climate Change Conference in Dubai in December.

Separately, Greenpeace campaigners have declared their support for legislation imposing a fossil fuel tax which will also hold companies accountable for their organizations’ climate impact.

Greenpeace Philippines added that hosting the Loss and Damage Fund Board adds urgency to the need to demonstrate that the government is among the leading practitioners of sound climate policy.

“The ball is now in the government’s court to reflect the country’s ambitions as the host of the board through its policies. This includes the certification of House Bill 9069 or the Clima Bill as urgent,” Greenpeace Campaigner Jefferson Chua said via Viber.

The bill, filed by at least six legislators last year, is considered by the international community as the first of its kind. It proposes to establish a system of reparations for those deemed responsible for the climate crisis, including corporations.

The Clima bill was introduced in the House of Representatives a year after the 2022 United Nations climate change conference (COP27), which ended with the announcement of the loss and damage fund.

The bill coincided with the release of a Commonwealth Climate and Law Initiative legal opinion that found that board directors have a duty to consider risks posed by climate change when determining shareholders’ best interests under Philippine corporation law.

Mr. Chua said the government should also push for a windfall fossil fuel profit tax in Congress and lobby for a carbon damages tax in international climate negotiations.

“Being chosen to host the Loss and Damage Fund Board is a good development, but what is even more important is that President Marcos help ensure that the fund has money.”

The Loss and Damage Fund Board is responsible for developing strategies to deliver financing to countries vulnerable to climate change.

Greenpeace said contributions to the fund “remain far below expectations amid escalating climate impacts and ballooning costs.”

“Our hosting of the L&D Fund Board underscores the huge responsibility of President Marcos and his administration in ensuring that Filipino communities get compensated for climate damages,” Mr. Chua said.

Rich countries that account for most of the world’s greenhouse gas emissions have pledged $700 million to the fund, falling short of the $100-580 billion estimate of annual losses and damage in developing countries.

In a 2019 report, the Philippines’ Commission on Human Rights said fossil fuel companies can be held liable for climate change and its effects. In its National Inquiry on Climate Change in 2022, the commission said any “neglect in climate change mitigation may be considered a human rights violation.”

A 2024 Green Economy Report for Southeast Asia issued by Bain & Co. said the Philippines saw a 57% increase in “green” investments to $1.46 billion in 2023, but remains short of the over $16 billion in capital investment needed for its green transition. — Beatriz Marie D. Cruz and Kyle Aristophere T. Atienza

Gov’t think tank backs Rice Competitiveness Enhancement Fund extension

PHILSTAR FILE PHOTO

THE Rice Competitiveness Enhancement Fund (RCEF) needs to be extended for another six years, with the rice industry yet to show significant improvement in RCEF’s first six years of operation, the Philippine Institute for Development Studies (PIDS) said.

“To introduce flexibility, (we) suggest that, upon the proposal of the President as stated in the National Expenditure Program, we must enable the Congress to alter the allocations of the fund through the General Appropriations Act,” PIDS senior research fellow Roehlano M. Briones and project technical assistant Amerah C. Azis said in a brief.

Under Republic Act No. 11203 or the Rice Tariffication Law of 2019, RCEF receives P10 billion a year from rice import tariff collections to modernize the rice industry by supporting the procurement of machinery, seed, and fertilizer as well as the provision of credit and rice farming know-how.

The RCEF expired last month, but lawmakers are seeking to extend its term and increase its annual allocation.

If extended, RCEF must also include underfunded programs like small water impounding systems, small farm reservoirs, and organic-based fertilizer production by farmer cooperatives and associations, PIDS said.

The government must also create a revolving fund for RCEF’s credit component, it added.

Rice stocks nearly expired but still fit for consumption should also be auctioned off, with its proceeds funding palay (unmilled rice) procurement from domestic farmers, PIDS said.

“This way the NFA (National Food Authority) does not have to rely 100% on the General Appropriations Act budgeting for palay procurement,” it said.

On Monday, Finance Secretary Ralph G. Recto said boosting agricultural productivity is still the government’s long-term solution to the rice industry’s chronically weak performance.

The government lowered rice import tariffs to 15% from 35% via Executive Order (EO) No. 62, as an inflation-containment measure.

As a result, tariff collections for rice are expected to decline by P9.42 billion, PIDS said.

Palay output is expected to decline to 19.14 million tons with the tariff cuts from 19.57 million tons under the previous tariff system, PIDS said.

Farmers have challenged the EO before the Supreme Court, saying they were not consulted properly before its issuance. — Beatriz Marie D. Cruz

BoI-approved agri investments hit P9.59B

REUTERS

THE Board of Investments (BoI) said it approved P9.59 billion worth of agricultural projects in the first six months of 2024.

In a statement on Wednesday, the BoI said the projects were endorsed by the Department of Agriculture as Tier II agri-based projects covered under the Strategic Investment Priority Plan.

Trade Secretary and BoI Chairman Alfredo E. Pascual said that the growing number of approved agriculture-related projects “will certainly drive the adoption of new technologies and enhance food security in the Philippines, ensuring the sustainability and resilience of our agricultural systems.”

These projects include Metro Pacific group’s dairy farm in Laguna and a vegetable greenhouse in Bulacan.

Also on the list are the rice seed and palay project of SL Agritech Corp., the cold and dry storage facility of Vifel Ice Plant and Cold Storage, Inc., and the hatchery of Chick Haven, Inc.

Resource-Based Industries Service Director Raquel Echague said that the projects are expected to generate thousands of jobs.

Between Feb. 2 and June 11, the BoI said it approved six projects with investments ranging from P1 billion to P15 billion, with agricultural projects accounting for P6.05 billion and transportation and storage proposals valued at P3.95 billion. — Justine Irish D. Tabile

Tomato harvest starts coming in, promising relief from high prices

PHILSTAR FILE PHOTO

THE Department of Agriculture (DA) said it expects tomato prices to drop this week with the harvest from provinces near Metro Manila start arriving.

“Areas in Southern Tagalog have already started harvesting, and we are expecting tomato prices to gradually decline,” Agriculture Assistant Secretary and Spokesperson Arnel V. de Mesa said.

According to DA price monitors, tomatoes in Metro Manila markets sold for between P140 and P220 per kilogram as of July 9. The month-earlier price range was P55-P95 per kilo.

“Ito siguro ay epekto ng mga pabago-bago ng panahon natin sa ngayon (This might be the result of the variable climate). In the case of tomatoes, the crop experienced El Niño, then it rained. But it is gradually recovering,” he added.

He said that increasing fuel prices could also be behind the rise in prices.

“When the source is far away, such as Benguet or Southern Tagalog, there are additional expenses incurred,” Mr. De Mesa said.

Fuel companies on Tuesday raised gasoline prices by P1.60 per liter. For diesel the corresponding hike was P0.65, while kerosene prices rose P0.60.

Last week, the DA said that it had approved the disbursement of P510.447 million in fuel subsidies to about 160,000 farmers.

Each registered farmer owning or renting agricultural machinery will receive P3,000 this month.

“We are just waiting for the certification from the Department of Energy. The condition to release the subsidy is for Dubai crude oil to hit $80 per barrel,” he added. — Adrian H. Halili

PHL incubator industry sees startup momentum picking up

THE PHILIPPINES could bill itself as one of the faster-growing startup hubs in the world if recent momentum continues, incubator executives said.

Brainsparks Co-Founder Artie DC. Lopez said that the growth in the Philippine startup ecosystem is encouraging to startups and venture capitalists.

“There are immense opportunities for innovation and entrepreneurship here. Our startups are becoming more competitive in the region,” Mr. Lopez said.

e27 Co-Founder Thaddeus Koh said that the Philippines is becoming a prime market for startups due to its location and workforce.

“Its strategic location in Southeast Asia, coupled with a highly skilled and affordable workforce, grants access to a massive regional market and acts as a gateway to neighboring economies,” Mr. Koh said.

He added that the country’s “sound policies” are attractive to foreign investment, while its growing population creates a “vast potential consumer base.”

“The Philippine startup ecosystem is now the fastest-emerging startup hub in the world … We need to showcase the Philippines in the region,” he said.

The Department of Trade and Industry (DTI) said that this growth is reflected in the recent valuation of the Manila startup ecosystem in the 2024 Global Startup Ecosystem Report.

The report found that the value of Manila’s startup ecosystem almost doubled to $6.4 billion.

“With the recent growth that we’ve seen in the startup scene in Manila, the government is cognizant of the importance of its role in sustaining this growth,” DTI Division Chief of Innovation and Collaboration Division Karl Lyndon B. Pacolor said.

“Part of that goal is to ensure that the momentum of the Philippine startup ecosystem is not just sustained but also expanded to other parts of the country,” he added.

Mr. Koh said that e27 has partnered with Brainsparks to launch a tech and startup business conference, Echelon, in the Philippines.

The conference will conduct business matchings and facilitate funding and investment, Mr. Koh said. 

“The Philippines is an ideal location for the tech community to flourish. We want to put a spotlight on the Philippines and create opportunities for everyone,” he added. — Justine Irish D. Tabile

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