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Robin named PDP presidency

SENATE PRIB

SENATOR Robin Ferdinand C. Padilla has been named president of the Partido Demokratiko Pilipino (PDP), replacing Palawan Rep. Jose C. Alvarez.

In a statement on Wednesday, the party said it expects the senator to drive reforms in Congress. “We are confident that under Senator Padilla’s leadership, the party is in good hands and will continue to be a major force for reform and development in the country.”

Mr. Padilla would continue to consolidate the party membership and prepare for the 2025 midterm elections, it added.

The senator is an ally of ex-President Rodrigo R. Duterte, who is the party chairman. — John Victor D. Ordoñez

Lawmaker nominated TESDA chief

THE PHILIPPINE Business for Education (PBEd) has nominated a congressman to be the next chief of the Technical Education and Skills Development Authority (TESDA).

In a letter to President Ferdinand R. Marcos, Jr., the group endorsed Negros Occidental Rep. Jose Francisco B. Benitez to replace Director-General Suharto T. Mangudadatu, who resigned effective July 31.

PBEd said Mr. Benitez is fit to lead the agency give his “decades of experience as a legislator, educator and university president.”

Mr. Benitez in a separate statement said he was honored by the endorsement, but preferred not to speculate about the President’s choice. “I trust his judgment and will support whomever he appoints as the next TESDA director-general.” — Chloe Mari A. Hufana

Asian stocks waver after lackluster tech earnings

SINGAPORE — Asian stocks fell on Wednesday after lackluster earnings from US tech behemoths Tesla and Alphabet dented risk appetite, while the yen surged to a seven-week high ahead of a central bank meeting next week where a rate hike remains on the table.

The US dollar was broadly steady, with traders watching out for an inflation reading on Friday and US Federal Reserve meeting next week. The Bank of Japan (BoJ) is also due to meet next week, where a 10-basis-point hike is priced at a 44% chance.

MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.35% lower, while Japan’s Nikkei fell 1%. Taiwan financial markets were closed due to a typhoon.

Nasdaq futures slid 1%, while S&P 500 futures were 0.6% lower after Tesla reported its smallest profit margin in more than five years, weighing on other EV stocks.

Shares of Google-parent Alphabet slipped in after-hours trade even as the firm beat revenue and profit targets.

“The bar was set so high for Alphabet that a modest earnings beat couldn’t push the stock higher. So, the market has no news to buy into,” said Kyle Rodda, senior financial market analyst at Capital.com.

“It also speaks to concerns that tech stocks are too richly valued here. We will have to see how the other tech giants report and how the markets react.”

The dour mood is set to move to Europe, with Eurostoxx 50 futures down 0.65%, German DAX futures down 0.44% and FTSE futures 0.3% lower ahead of a slew of earnings from companies in the region.

Investor focus will be on European luxury stocks after the world’s biggest luxury group LVMH reported slowing sales growth as Chinese shoppers lower their spending.

Chinese stocks were subdued in choppy trading, with the Shanghai Composite index flat, while the blue-chip CSI300 index was 0.26% lower after recording its largest one-day decline since mid-January on Tuesday.

On the macro side, investors await US gross domestic product data on Thursday and personal consumption expenditures data — the Fed’s favored measure of inflation — on Friday to gauge the expectations of interest rate cuts this year.

Markets are pricing in 62 basis points of easing this year, with a cut in September priced in at 95%, the CME FedWatch tool showed.

A growing majority of economists in a Reuters poll said the Fed will likely cut rates just twice this year, in September and December, as resilient US consumer demand warrants a cautious approach despite easing inflation.

“The US consumer has remained extremely strong … but you’re starting to see a degree of fragility underlying some of the data,” said Luke Browne, head of asset allocation for Asia at Manulife Investment Management.

YEN RIDE
The Japanese yen spiked to its highest in seven weeks of 154.36 per dollar after surging nearly 1% on Tuesday, having languished near a 38-year low of 161.96 at the start of the month. It was last up 0.56% at 154.75.

Traders suspect Tokyo intervened in the currency market in early July to yank the yen away from those lows, with estimates from BoJ data indicating authorities may have spent roughly six trillion yen ($38.62 billion) to prop up the frail currency.

The bouts of intervention have led speculators to unwind popular and profitable carry trades, in which traders borrow the yen at low rates to invest in dollar-priced assets for a higher return.

The yen was broadly higher, with the Japanese unit touching more than a one-month high against the pound, the euro and a two-month high against the Australian dollar.

The dollar index, which measures the US currency against six rivals, was little changed at 104.41. The index is down 1.3% this month.

In commodities, oil prices rose on easing US crude inventories. Brent crude futures for September rose by 0.28% to $81.24 a barrel, while US West Texas Intermediate crude for September gained 0.31% to $77.2 per barrel. — Reuters

27 airports being considered for PPP

BW FILE PHOTO

THE DEPARTMENT of Transportation (DoTr) on Wednesday said it is considering offering 27 airports for redevelopment via public-private partnerships (PPP).

“We have currently 27 other airports undergoing PPP screening by our partners from the Asian Development Bank (ADB) and International Finance Corp.,” Transportation Undersecretary Timothy John R. Batan said during a post-State of the Nation Address (SONA) briefing Wednesday. 

“Davao Airport is next, it is the fourth largest airport that we have. The PPP process for that is now ongoing,” Mr. Batan said.

In June, PPP Center said that it delisted the unsolicited proposal for the development, operations, and management of the Davao International Airport, which likely signals that the Transportation department is looking to go the solicited route for the project. Earlier this year, the DoTr said it is setting aside P14 billion to upgrade and modernize regional airports.

It is also seeking PPP-led upgrades for Iloilo, Bohol, Puerto Princesa and Siargao.

In July, the Transportation department said that it is hoping to conduct the Swiss challenge for the Bohol-Panglao International Airport by the fourth quarter.

The Aboitiz group, through its infrastructure arm — Aboitiz InfraCapital, Inc. — secured original proponent status (OPS) for the 25-year operations and maintenance contract of the airport.

Negotiations are also ongoing with Prime Asset Ventures, Inc. which secured OPS for the upgrade, operation and maintenance of Iloilo International Airport. — Ashley Erika O. Jose

JICA rules out G2G deals for PHL renewable projects

STOCK PHOTO | Image from Freepik

By Ashley Erika O. Jose, Reporter

THE JAPAN International Cooperation Agency (JICA) said government-to-government (G2G) agreements are not a feasible route for investments in Philippine renewables, adding that its preferred approach is to attract investment from Japanese companies.

“We do not have so-called flagship projects because the energy sector is operated and dominated by the private sector. It is difficult for us to create and formulate projects on a G2G basis and ODA (official development assistance) support,” JICA Chief Representative in the Philippines Takema Sakamoto told BusinessWorld.

The Electric Power Industry Reform Act (EPIRA) of 2001 sought to restructure the power industry via deregulation and privatization of most state-owned power generation and transmission assets.

JICA’s role would take the form of facilitating private sector involvement, Mr. Sakamoto said, citing the recently-signed deal between Light Rail Manila Corp. (LRMC) and the Sumitomo Corp. and Hankyu Corp. for technical assistance in the operation and maintenance of the Light Rail Transit Line 1 (LRT-1) system. 

“This is our direct intervention to the private sector, not G2G-based support, just like the LRT-1 investment. This is a PSIF (private-sector investment finance) scheme, which could be adaptable to the energy sector,” he said.

Mr. Sakamoto said JICA has been in discussions with the Department of Energy (DoE) about future collaboration particularly in renewable energy.

The DoE and JICA are looking at partnering for offshore wind projects, pumped storage hydropower, grid stabilization and energy projects for off-grid areas, he said.

“This year I have acknowledged the start of a new technical cooperation project to list candidate areas for pumped hydropower generation,” he said.

Grid stabilization is also being studied as a potential area for partnership to better accommodate new renewable energy supply, Mr. Sakamoto said, adding that the possibility of off-grid energization has also been put forward for consideration.

Trademark filings on track to exceed 2023 totals this year

THE INTELLECTUAL Property Office of the Philippines (IPOPHL) said Wednesday that it is confident that trademark filings will post growth this year, based on the 7% rise in filings in the first half.

On the first day of the first Philippine Trademark Conference, IPOPHL Director General Rowel S. Barba said that trademarks account for the majority of the country’s intellectual property (IP) filings.

“Trademark filings from January to June have hit 21,751, comprising 86% of the total IP filings of 25,263 for the same period,” Mr. Barba said in his opening remarks.

“Given that we have already reached the year’s halfway mark, I am confident that the number of trademark applications for 2024 will soar even higher than last year’s,” he added.

The first-half trademark filings totaling 21,751 represent a 7% increase from a year earlier.

Mr. Barba said that most of the trademark filings were from the pharmaceutical, agriculture, scientific research information, and communication industries.

“This is a mix of foreign and local filings,” he added.

He said that the first half performance is also consistent with the growth of trademark filings since 2021. Filings first surpassed pre-pandemic levels in 2022.

This year, IPOPHL is targeting trademark filings of 46,148, up 10%.

“We can credit this to the continuing information or IP awareness campaign being conducted by IPOPHL and to the improved economic condition of the country,” he added.

He said the improving environment has encouraged the opening of new micro, small, and medium enterprises (MSMEs), on which IPOPHL is focusing for trademark registration.

In his keynote speech, Trade Secretary Alfredo E. Pascual said that trademarks create a level playing field, allowing MSMEs to compete with more prominent and established brands.

“By protecting their unique identities and products, MSMEs can enhance their market presence, attract investment, and expand their reach. This, in turn, translates into job creation, increased exports, and overall economic growth for our country,” Mr. Pascual said. — Justine Irish D. Tabile

Temperature-regulated hatchery in the works for bangus industry

BRUCE WARRINGTON-UNSPLASH

THE NATIONAL Fisheries Research and Development Institute (NFRDI) said it hopes to seal an agreement with the Department of Science and Technology (DoST) to build a temperature-regulated hatchery for milkfish (bangus).

The NFRDI said that the P5 million hatchery project, to be pursued in partnership with the Bureau of Fisheries and Aquatic Resources (BFAR), will seek to address production challenges during colder periods.

“The production of milkfish in hatcheries in the Philippines is affected by seasonal variations, particularly during colder months when environmental changes result in lower or no egg production by the milkfish broodstock,” NFRDI Executive Director Lilian C. Garcia said in a statement.

The NFRDI said that the project is seeking to establish a cost-effective and reliable heating system to maintain optimal water temperature in broodstock tanks.

She said that the hatchery technology being considered is a Recirculating Aquaculture System (RAS) equipped with a heat pump and an electric heater, with automated water-quality monitoring.

“This intervention aims to create a conducive breeding environment for milkfish broodstock by maintaining optimum water quality in tank-based facilities,” Ms. Garcia added.

The project is set to run until June 30, 2025, and will be funded with a DoST grant-in-aid.

The selected site is a BFAR-National Fisheries Development Center in Dagupan City.

“The project is expected to benefit the aquaculture industry in the Philippines, consumers of milkfish, and metals, engineering and allied industries involved in aquaculture,” the NFRDI said. — Adrian H. Halili

Loss and Damage Fund hosting to benefit PHL coastal dwellers

PHILSTAR

THE DEPARTMENT of Environment and Natural Resources said the Philippine hosting of the Loss and Damage Fund (LDF) board could ultimately produce dividends in the form of limiting the climate damage to Philippine coastal communities.

Environment Minister Maria Antonia Yulo-Loyzaga said that the fund would have a front-row seat to the action in the disaster-prone Philippines and decide to support disaster mitigation measures.

“For us in the Philippines, many coastal communities will also be affected and continue to be affected now by combination of sea level rise, tidal impacts, and of course, the way they use the land around where they live…they will need to be relocated eventually,” she said on the sidelines of a post-SONA briefing.

The Philippines was selected to host the LDF board, beating out seven other countries.

Last year, developed countries, mainly responsible for most of the world’s carbon emissions, pledged about $700 million towards the LDF.

Ms. Yulo-Loyzaga added that the initial pledges would be used to get the LDF up and running.

“The contributions themselves are yet to come,” she said.

Citing the United Nations, she said that the LDF would need about $200 to $300 billion annually until 2030.

“So this is a large number. We know that these are ambitious goals, but we need to strive to actually reach them,” she said. “Hopefully, the board will provide that platform for us to actually approximate what the real needs are… in order for us to address loss and damage,” she added.

The LDF is tasked with assisting developing countries that are particularly vulnerable to the adverse effects of climate change.

In his State of the Nation Address (SONA) Monday, President Ferdinand R. Marcos Jr. urged Congress to pass an enabling law facilitating the Philippines’ participation in the LDF board.

Ms. Yulo-Loyzaga said that the Philippines will set up a secretariat and provide technical staff and facilities.

“That has been budgeted for, and we just have to tap the budget once the ratification of the privileges and immunities are given to the board through the Senate and Congress,” she added. — Adrian H. Halili

Business registrations up 6% in first half

ILOILO CITY GOVERNMENT 

THE DEPARTMENT of Trade and Industry (DTI) said business name registrations rose 6% to 679,118 in the first half, with rapid growth noted in e-commerce enterprises.

Digital PH Group Undersecretary Mary Jean T. Pacheco said momentum is carrying over from a record performance in 2023.

“We had a banner year last year when we got the highest number of registrations of close to 984,330 business names, and the good news is that the momentum continues,” Ms. Pacheco said at a briefing recently.

She added that online businesses accounted for 17,000 of the total registrations during the half, nearly equaling their full-year total of 18,000 in 2023.

The DTI also attributed the growth in registrations to traditional businesses like sari-sari stores, as well as a strong performance by the Calabarzon region.

“This remarkable growth in business name registrations… signals a growing economy, increased job opportunities, and a brighter future for the Philippines. The DTI continues to encourage aspiring entrepreneurs to take advantage of the opportunities available and contribute to the nation’s economic growth,” she added.

Ms. Pacheco said the DTI is encouraging online micro-entrepreneurs to register as barangay business enterprises (BMBEs) to gain exemption from the Bureau of Internal Revenue’s Revenue Regulations No. 16-2023.

The DTI said that the regulations require electronic marketplaces and digital financial service providers to withhold an income tax of 1% on half of the gross remittances to online sellers.

However, BMBEs and those with a gross remittances of less than P500,000 a year are exempt from withholding, it added.

“We want to ensure that online micro-entrepreneurs are aware of the valuable benefits that BMBE registration offers,” Trade Secretary Alfredo E. Pascual said.

“By registering as a BMBE, online merchants can not only enjoy income tax exemption but also gain access to other resources that can help their businesses grow, in line with the intent of the BMBE law,” he added.

BMBEs are also exempt from the Minimum Wage Law and can access special credit windows and capacity-building programs.

Republic Act No. 9178 defines a BMBE as a business entity engaged in the production of agro-processing, trading, and services whose total assets do not exceed P3 million. — Justine Irish D. Tabile

PHL 73rd in strength-of-passport ranking

THE PHILIPPINE passport was ranked 73rd in terms of visa-free access to other countries, according to the Henley Passport Index (HPI) released Wednesday.

HPI reported that the Philippine passport grants its holder visa-free access to 67 countries.

“The Philippine passport has been fairly consistent on the Henley Passport Index with a slight trend upwards,” Henley & Partners Managing Director and Head for Southeast Asia Scott Moore said in a briefing Wednesday.

“The Philippine economy is growing on average between six to seven and a half percent annually over the past decade, and we anticipate this growth will continue.”

He noted the ”strong correlation” between a country’s visa-free tally and its economic prosperity.

The Philippines ranked 83rd in 2021, 77th in 2022, 78th in 2023, and 73rd in January and July 2024.

“As the economy continues to grow and develop, the passport score should continue to trend upward. It’s important to keep in mind that the Philippines is growing definitely at a higher rate than the established Western countries,” Mr. Moore said.

The visa-free destination count of 67 represented a fall of two countries after Armenia and Togo changed their rules from “visa-on-arrival for everyone” to “e-visa for everyone,” he said.

Singapore was rated the “strongest” passport with visa-free access to 195 countries, while Afghanistan was at the bottom of the list, placing 103rd with a visa-free tally of 26 countries visa-free.

“The gap is widening between countries at the top of our index and countries at the bottom of the index, which right now is Afghanistan… that is a gap of 169 countries, which is also larger than it ever has been before,” he said.

France, Germany, Italy, Japan, and Spain dropped to joint second place with visa-free access to 192 countries.

Meanwhile, Austria, Finland, Ireland, Luxembourg, Netherlands, South Korea, and Sweden were at joint third with visa-free access to 191 countries.

This was followed by Belgium, Denmark, New Zealand, Norway, Switzerland, and the UK were in joint fourth with visa-free access to 190 countries.

Australia and Portugal were tied for fifth with visa-free access to 189 countries. — Aubrey Rose A. Inosante

Green Climate Fund to release $4.14M for PHL climate projects

PHILIPPINE STAR/KRIZ JOHN ROSALES/PPA POOL

THE GREEN Climate Fund (GCF)  has approved $1 billion worth of climate-related projects worldwide, of which $4.14 million will support Philippine “green entrepreneurs,” the Department of Finance (DoF) said.

A total of 17 funding proposals for adaptation and mitigation projects, as well as six new accredited entities were approved by the GCF Board in its recent meeting, the DoF said in a statement.

The proposals cover coastal resilience, sustainable agricultural systems, ecosystem restoration, and climate technologies.

Among the approved projects was the regional $221.22-million Collaborative Research and Development Business (R&DB) Programme for Promoting the Innovation of Climate Technopreneurship.

The project aims to support technology transfer and improve the ecosystem for climate technology by empowering entrepreneurs in the Philippines, Cambodia, Indonesia, Laos, and Vietnam.

The five countries will each receive $4.14 million, DoF said.

“The Programme will be divided among the recipient countries, allowing Philippine green entrepreneurs to leverage global technological expertise, thus accelerating climate-resilient development in the country,” it added.

Of the total cost, $104.47 million will be financed by GCF grants and equity, while the remaining $116.74 million provided by co-financer contributions.

This brings the GCF’s total grants to the Philippines to $139.9 million, of which $137.7 million consisted of project grants.

The Philippines is currently implementing four readiness activities with the GCF, the DoF also said.

The Readiness and Preparatory Support Program (RPSP)   builds the capacity at the DoF as the National Designated Authority (NDA) in developing a monitoring, reporting and verification framework, conducting country portfolio analysis, establishing a GCF Philippines website, launching training modules, training project development personnel, and organizing a national stakeholder conference.

RPSP 2 aims to strengthen the capacities of the Land Bank of the Philippines (LANDBANK) and Development Bank of the Philippines (DBP) as Direct Access Entities developing high-quality project concept notes.

The Climate Resilient Recovery Readiness Support assists government agencies in integrating climate-resilient strategies in paradigm-shifting projects.

Finally, the Agriculture Sector Readiness promotes climate finance mechanisms and implements the Koronivia Joint Work on Agriculture priorities in Southeast Asia through knowledge sharing.

Finance Undersecretary Maria Luwalhati C. Dorotan Tiuseco also showed support for the mainstreaming of REDD+ results-based payments, “which will allow to integrate the funding modality into the regular project and program activity cycle of the Fund.” — Beatriz Marie D. Cruz

Price freeze ordered in NCR after state of calamity declaration

PHOTO BY BERNARD HERMANT

THE DEPARTMENT of Trade and Industry said Wednesday that a price freeze is in effect on basic necessities in the National Capital Region (NCR) due to the state of calamity declaration in the wake of Typhoon Carina and the southwest monsoon.

“The price freeze, effective immediately, aims to protect consumers from unjust price increases during this time of crisis,” Trade Secretary Alfredo E. Pascual said.

“We are committed to ensuring that basic goods remain affordable and accessible to all affected residents,” he added.

The price controls cover rice, corn, bread, fresh vegetables, root crops, pork, beef, poultry, eggs, milk, coffee, sugar, cooking oil, salt, laundry soap, detergent, firewood, charcoal, candles, and medicines.

“We have activated our monitoring teams to strictly enforce the price freeze. Those found violating the law will face severe consequences, including imprisonment and substantial fines,” Mr. Pascual said.

“We urge all establishments to comply with the price freeze and prioritize the well-being of our fellow citizens during this difficult time,” he added.

The price freeze will be in effect during the state of calamity, the DTI said.

“The DTI is closely coordinating with its National Capital Region (NCR) office to monitor the situation and guarantee the availability of essential goods,” it added.

In a separate bulletin Wednesday, the government weather service, known as PAGASA, said that the super typhoon is expected to leave the Philippine Area of Responsibility by early Thursday. — Justine Irish D. Tabile

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