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MWSS wants Angat water share retained at 52 cms

PHILSTAR FILE PHOTO

THE Metropolitan Waterworks and Sewerage System (MWSS) said it is seeking to retain its water allocation at 52 cubic meters per second (cms) for July.

“Our request was 52 cms during our meeting last Monday with the Angat TWG (Technical Working Group),” Patrick James B. Dizon, manager of the MWSS water and sewerage management department, said on Thursday via Viber.

The request will be presented during the board meeting with the National Water Resources Board next week for its approval, he said.

For June 1-15, the MWSS was given a water allocation of 51 cms, rising to 52 cms for June 16 to 30.

Angat Dam is the primary water source for Metro Manila, providing approximately 90% of the capital’s potable water.

As of early Thursday, the water level at Angat Dam was 175.90 meters, against 175.55 meters the previous day.

Mr. Dizon said the average daily decrease in the water level was around 14 centimeters since June 1.

“Looking at the historical elevation of Angat Reservoir for the second half of the year, the reservoir will start to refill. We need this refill in preparation for next year,” he said. — Sheldeen Joy Talavera

Pre-shipment inspection regime ordered for agricultural imports

COURTESY OF BUREAU OF CUSTOMS

THE Department of Agriculture (DA) said it will require pre-shipment inspections for selected countries’ farm products that are due to be shipped to the Philippines.

“What we will do is release an administrative order (AO), requiring pre-shipment inspection. But we will choose countries,” Agriculture Secretary Francisco P. Tiu Laurel, Jr. told reporters late Wednesday.

He added that the administrative order will be implemented in the next three months.

Mr. Laurel said pre-shipment inspections are necessary as the Philippines still lacks the means to inspect imported farm goods at the border.

The DA’s cold examination facilities in agriculture (CEFA) are intended to ensure imported agricultural goods are disease-free and to minimize the risks from smuggling.

Imported agri-fishery products need to undergo examination by food regulators overseeing the animal, plant, meat, and fisheries industries.

He added that the DA has four planned facilities in Bulacan, Manila, Subic, and General Santos.

The Angat, Bulacan facility is set to start operations during the first two months of next year.

“The one in Angat was done by a private company… maybe by January or February next year, it will be running,” Mr. Laurel said.

The DA signed a memorandum of agreement with Pacific Roadlink Logistics, Inc. to construct the facility in Bulacan.

He added that the three other facilities will start construction by September, taking about a year to complete. — Adrian H. Halili

New cybersecurity tech needs to drive policy evolution, experts say

FREEPIK

CYBERSECURITY POLICY must evolve with the emergence of new technology, experts said, noting also the importance of automatic reporting from organizations experiencing data breaches.

“The policy should evolve with the emergence of new cybersecurity technology because it affects the landscape as well,” ePLDT Enterprise Field CISO and Head of Enterprise Consulting Practice Alex Bernardino said during a panel discussion at a BusinessWorld Insights event on June 25.

He noted the PLDT network threats have evolved from denial-of-service attacks to ransomware during the pandemic.

National Privacy Commission Director of Data Security and Compliance Office Aubin Arn R. Nieva cited the progress made in legislation, such as the Cybercrime Prevention Act, the Data Privacy Act, the Consumer Protection Act, and the Internet Transactions Act.

“As you remember, back in 2012, our congressmen in Batasan Hills rushed to pass the Data Privacy Act because overseas investors did not want to invest in the Philippines because we had no data privacy regime here,” he said.

Mr. Bernardino expressed support for more “ironclad legislation” like the Cybercrime Prevention Act and the Data Privacy Law.

“We have to implement it strictly… I think that’s the missing piece now,” he said, noting that violators must be made an example of.

On June 21, the National Bureau of Investigation arrested a Manila Bulletin data security officer who admitted to hacking about 93 websites of government agencies, private companies, and overseas organizations.

The hacks involved the website of the Armed Forces of the Philippines, the mail server of the National Security Council, and an Army recruitment website.

Other government websites that were recently compromised include those of the Maritime Industry Authority, while the list of private-company victims included Jollibee Foods Corp., Maxicare Corp., and Toyota Motor Philippines Corp.

“It should not be only The National Privacy Commission that discloses the breach to the public. It was the duty of Maxicare in the first place to disclose that and inform their members that were affected,” Information and Communications Technology Assistant Secretary for Legal Affairs Renato A. Paraiso said.

Mr. Nieva said organizations that were breached should not be stigmatized and instead held up as case studies for future learning.

“The learnings should become part of our best practices,” he said.

Asked about making cybersecurity less daunting for small business owners, Mr. Nieva said the solution involves a solid privacy management program.

Mr. Nieva said negligent employees not observing the correct procedures in using company infrastructure could expose the company to threats and risks.

He also cited the need for data protection measures.

“Are we going to use artificial intelligence, machine learning, blockchain technology, neural networks in the pursuit of the company’s purpose?” he added, citing the risk posed by the technologies to client data.

“Artificial intelligence tunnels into the data you collect. The golden rule is, do not collect if you cannot protect,” he said. — Aubrey Rose A. Inosante

Philippine content creation industry urged to address gaps in technology, training

By Justine Irish D. Tabile, Reporter

THE content creation industry is being hampered by shortcomings in technology adoption and professional training, technology-focused media company Hepmil Philippines said.

Hepmil Philippines General Manager Erwin Razon told BusinessWorld via e-mail that such shortcomings are limiting the quality and competitiveness of the industry.

“There is a notable gap in access to advanced technology and professional training, which limits the quality and competitiveness of content produced by local creators,” he said.

“Additionally, many creators struggle with securing sustainable income and protecting their work from piracy and unauthorized use,” he added.

He said that the Philippines will need a conducive policy environment that will encourage investment in the creative industries and protect intellectual property rights.

Mr. Razon said nevertheless, the outlook for the content creation and influencer industry remains positive, amid rising demand for localized and culturally relevant content.

“Furthermore, the expansion of digital infrastructure and increased internet penetration are critical, enabling content creators to reach wider audiences,” he said.

“Our recent investments in a new production hub and content programs illustrate our commitment to capitalizing on these opportunities, aiming to foster a vibrant ecosystem for content creators,” he added.

Hepmil Philippines recently opened a 400-square-meter production hub in Makati that features studios, workstations, lounges, and a wardrobe department, with plans to integrate livestreaming capabilities.

“This new production hub responds to the growing demand for virtual production services. As highlighted by the 2024 Global Digital Report, 64.5% of consumers do online brand research and are becoming more selective about online content,” it said.

“With its expanded capabilities, Hepmil Philippines aims to lead in innovative content creation, ensuring that brands can effectively engage their audiences with captivating and relevant content,” it added.

Aside from the hub, Hepmil Philippines also launched a new show, “We The Future,” a comedic documentary series featuring stories and voices from various Filipino communities.

Hepmil Philippines runs the digital platform PGAG and currently has 500 content creators in its network.

Potential RE adopters urged to weigh benefits of incentives

ZBYNEK BURIVAL—UNSPLASH

THE Department of Trade and Industry said manufacturers considering renewable energy (RE) investments stand to benefit from incentives apart from realizing power savings.

“We are encouraging these companies that are setting up their factories in the Philippines (to invest in RE),” Trade Secretary Alfredo E. Pascual told reporters in a recent briefing.

Mr. Pascual touted an incentive that allows RE investors to recover 50% of the cost of their investment.

He said the cost argument is also compelling for companies setting up their own power-generating facilities.

“Some companies have already done that; some Japanese companies have set up solar farms, and they are able to get their own supply of power,” Mr. Pascual said.

“With the incentive, they are able to recover the cost of the investment over the years,” he added.

Mr. Pascual said the government will also support such companies with manpower development to ensure a workforce that can function with new technology.

“Since we are inviting so many technology companies, we need to keep up with the training, education, and development of our workforce,” he said.

“We have to strengthen our education system so that we are able to encourage our students to go into STEM (science, technology, engineering, and mathematics) and information technology courses,” he added.

According to Trade Undersecretary and Board of Investments (BoI) Managing Head Ceferino S. Rodolfo, at least two project proponents are interested in the RE incentive.

“There is one in telco and another one in manufacturing — specifically pharmaceuticals,” Mr. Rodolfo said.

Currently, only one project has applied with the BoI for the incentives attached to installing RE facilities. This involves a 10-megawatt solar energy facility in which P500 million will be invested. — Justine Irish D. Tabile

Building permit approvals decline in 2023

PHILIPPINE STAR/ MICHAEL VARCAS

APPROVED building permits fell 3.4% in 2023, reversing the 4.2% growth recorded in 2022, though the value of overall projects rose, the Philippine Statistics Authority (PSA) reported on Wednesday.

Building permits totaled 163,663, covering 39.54 million square meters of floor area.

Projects covered by the approved permits were valued at P457.36 billion, up 6%.

“Although permits fell in 2023, the increase in construction cost boosted the value of building construction. Also, there were more big-ticket building construction projects that boosted value,” Cid L. Terosa, senior economist at the University of Asia and the Pacific, said in an e-mail.

Permits for residential projects, which accounted for 67.5% of the totals, fell 8.7%. These permits were valued at P200.85 billion.

Of the residential permits, single homes accounted for 86% (valued at P146.08 billion), followed by apartment homes (12.6%, P32.25 billion), and duplex or quadruplex homes (1.2%, P2.44 billion).

Meanwhile, nonresidential permits increased 18.6% year on year to 35,162. Nonresidential permits accounted for 21.5% of approved building permits and were valued at P219.56 billion.

Approved commercial construction applications accounted for 70.7% of all nonresidential permits, totaling 24,851 permits, up 20.9% year on year. These permits were valued at P108.08 billion.

Institutional and industrial permits rose 10.2% and 23% to 5,325 and 2,835, respectively.

Permits for additions to an existing building rose 16.8% to 5,872 and were valued at P5.44 billion while alteration and repair permits totaled 12,097, down 11.4%. They were valued at P31.51 billion.

Calabarzon (Cavite, Laguna, Batangas, Rizal, and Quezon) had the most approved building projects, making up 24.6% of the total with 40,332 permits, followed by the Central Visayas (18,631), and Central Luzon (18,583).

Mr. Terosa expects the number of permits to continue to decrease this year while the value of building projects rises.

“I think that this trend will persist, but there could be an increase in permits and value once interest rates are cut,” he said.

The PSA said that construction statistics are compiled from the copies of original application forms of approved building permits as well as from the demolition and fencing permits collected every month by the agency’s field personnel from the offices of local building officials. — Karis Kasarinlan Paolo D. Mendoza

PHL, Indonesia adopt e-Phyto certificate system, BoC says

BUREAU OF CUSTOMS

THE Bureau of Customs (BoC) said that the Philippines and Indonesia have adopted an electronic Phytosanitary (e-Phyto) certificate system to ensure the security of the trade in agricultural goods within the region.

“This initiative not only enhances trade efficiency but also strengthens economic ties among member states, paving the way for a more unified and prosperous ASEAN region,” Customs Commissioner Bienvenido Y. Rubio said in a statement.

The e-Phyto certificate is the electronic version of a phytosanitary import certificate, which certifies that agricultural goods are pest and disease-free.

The exchange was done through the Association of Southeast Asian Nations (ASEAN) Single Window (ASW). The Philippines joined the regional platform in 2019, which connects each country’s National Single Window (NSW) to transact and exchange customs documents.

“The BoC e-Phyto Portal also has access to the e-Phyto certificates issued by the Department of Agriculture – Bureau of Plant Industry, the National Plant Protection Organization (NPPO), as well as to e-Phyto certificates issued by the respective NPPOs of exporting countries,” the BoC added.

The Philippines and Thailand hope to begin their exchange by the end of the month.

The BoC said that it will continue to “collaborate with ASEAN counterparts to support its priority program on conducting the study of the new generation of the ASW.”

It also said it will continue to pursue exchanges with other trade partners and work on the implementation of new customs documents and forms. — Luisa Maria Jacinta C. Jocson

Marcos: Philippines must do more than just file protests versus China

PRESIDENT FERDINAND R. MARCOS, JR. — PHILIPPINE STAR/RYAN BALDEMOR

By John Victor D. Ordoñez, Reporter

PRESIDENT Ferdinand R. Marcos, Jr. on Thursday said the Philippines must do more beyond filing diplomatic protests against China, which he accused of deliberately and illegally blocking a resupply mission in the South China Sea that led to a standoff on June 17.

“We have filed over a hundred protests, we have already made a similar number of demarches,” he told reporters. “We have to do more than just that.”

The Philippine leader said actions by China’s coast guard men were not an armed attack. “No one fired a shot. They did not point guns at us, but it was a deliberate action to stop our people.”

“Although there were no arms involved, nonetheless, it is still a deliberate action, and it is essentially an illegal action that was taken by the Chinese forces,” Mr. Marcos said.

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

The President said the government has been in constant communication with Chinese Ambassador to the Philippines Huang Xillian over recent incidents in the South China Sea that have worsened tensions between the two neighbors.

“Our objection, we have made it very clear not only to the ambassador but also to Beijing,” Mr. Marcos said. “So it will really depend on how formal we want to make this complaint.”

Chinese Coast Guard men with bladed weapons on June 17 boarded Philippine rubber boats and looted several rifles, actions that Philippine military chief Romeo S. Brawner, Jr. said only “pirates” do. 

A Filipino Navy officer on a rubber boat lost his right thumb when the Chinese Coast Guard rammed the army’s boat, the military said.

China has disputed the Philippine account, saying the measures it had taken were lawful, professional and beyond reproach.

Philippine Foreign Affairs Secretary Enrique A. Manalo on Wednesday said Manila has filed a note verbale to China, expressing concern over the June 17 standoff.

The Philippines does not plan to engage in defense talks with China, Defense Secretary Gilberto Eduardo C. Teodoro, Jr. told a Senate hearing on Tuesday that is looking into the latest incident.

On Monday, he said the Philippines would not announce the schedule of its resupply missions to the shoal, where a handful of Filipino troops live on a World War II-era ship that Manila grounded in 1999 to bolster its sea claim.

Executive Secretary Lucas P. Bersamin earlier said the encounter was not an armed attack and was probably a “misunderstanding or accident.”

Mr. Marcos said his Cabinet secretary made the statement because they were still studying whether the standoff could have been caused by miscommunication.

He said Armed Forces of the Philippines Western Command chief Rear Admiral Alfonso F. Torres, Jr. had briefed him on the incident, which the President said was “clearly not a misunderstanding.”

The Philippines under Mr. Marcos has filed 164 diplomatic protests against China, 31 of which were filed this year, Foreign Affairs spokesperson Ma. Teresita C. Daza said in a WhatsApp message.

Manila is trying to hold talks with China to discuss the sea, Mr. Manalo told senators on Tuesday.

NOT SEEKING US HELP
Meanwhile, US Defense Secretary Lloyd Austin on Wednesday spoke with Mr. Teodoro on the phone to discuss last week’s standoff, according to the US State Department.

“Secretary Austin underscored continued US support for the Philippines in defending its sovereign rights, and the two officials discussed the importance of preserving the rights of all nations to fly, sail and operate — safely and responsibly — wherever international law allows,” State Department spokesman Matthew Miller said in a statement posted on the agency’s website.

Meanwhile, Philippine Ambassador to the US Jose Manuel G. Romualdez said the Philippines had not asked the United States for support in resupplying its troops at Second Thomas Shoal.

The US was providing only “visuals” to help view the situation around the ship, he told reporters in Washington.

Manila, which has a long-standing defense treaty with the US, has complained that the Chinese Coast Guard had used “aggressive and illegal force” during last week’s standoff.

Manila’s patience was being stretched by China’s actions, but it was hoping for talks to deescalate tensions with Beijing as soon as July, and did not want to invoke the US treaty, the Philippine envoy said.

“We would like to be able to supply our soldiers on our own without really bringing in any third party because, as I said, this is our territory, which we’ve made very clear from the very beginning,” he said. “And so, we have not asked the United States for any assistance whatsoever.”

Mr. Romualdez said the Philippines had sought a meeting with Chinese officials to ease tensions, not resolve territorial claims, and hoped it would occur “maybe early next month.”

He noted that Philippine failure to deliver food and other supplies to its troops would amount to “killing our soldiers” through starvation and thirst.

“I don’t think China wants to have a major conflict. And definitely, we do not want to have one. And so, that’s a good starting point,” he added. — with Reuters

Marcos: De Lima’s acquittal shows Philippine justice system is working

PHILIPPINE STAR/MIGUEL DE GUZMAN

PHILIPPINE President Ferdinand R. Marcos, Jr. on Thursday said he won’t change his mind about not cooperating with the International Criminal Court (ICC) in its investigation of his predecessor’s deadly drug war.

Former Senator Leila M. de Lima’s acquittal in her last drug trafficking case showed that the country’s justice system is working, he told reporters on Thursday.

“Maybe this is something we should show the ICC,” he said. “The Judiciary is working properly. Our investigative services are working properly, and former Senator de Lima has been acquitted.”

“We still stay with our position that the ICC has no jurisdiction in the Philippines because we have a working police force, we have a working Judiciary and do not require any assistance in that regard,” he added.

Mr. Marcos earlier ruled out working with the ICC, saying its probe violates Philippine sovereignty given the country’s fully functional justice system.

The Philippines under ex-President Rodrigo R. Duterte withdrew from the ICC in 2019 amid criticisms that his government systemically murdered drug suspects in police raids. It took effect a year later.

A Muntinlupa court on Monday acquitted the former lawmaker, who had been in jail for nearly seven years, in her third and last drug trafficking case that she said was fabricated to muzzle her investigation of then-President Rodrigo R. Duterte’s war on drugs.

The US State Department has called on the Marcos government to step up its efforts to resolve politically motivated lawsuits against civic leaders after Ms. De Lima’s acquittal.

Muntinlupa Presiding Judge Gener M. Gito said prosecutors had failed to prove that Ms. De Lima was involved in the illegal drug trade. The same court granted her bail plea in November.

She was accused of promoting the illegal drug trade inside the national penitentiary in Muntinlupa during her time as Justice secretary.

Convicts allegedly bribed her with P70 million, which she allegedly used to fund her senatorial campaign.

Ms. De Lima incurred Mr. Duterte’s ire when, as chairwoman of the Commission on Human Rights, she started a probe in 2009 into extrajudicial killings by the so-called Davao Death Squad in the tough-talking leader’s hometown, where he was the long-time mayor. Mr. Duterte later vowed to “destroy” her.

Amnesty International has said the government had deprived the ex-senator of her right to a fair trial through her arbitrary detention.

Political experts have said her detention showed how the government had abused the justice system.

At a media forum on Thursday, Senator Ronald M. Dela Rosa, who enforced the anti-illegal drug drive as Mr. Duterte’s police chief, said there is no need to bring drug war complaints before the ICC.

He noted that if the country’s justice system was flawed, cops who committed wrongdoing shouldn’t have been charged, convicted or jailed. “So there were rights violations. That’s why we need to investigate each case individually,” he said in Filipino.

The government estimates that at least 6,117 suspected drug dealers were killed in police operations. Human rights groups say as many as 30,000 suspects died. — John Victor D. Ordoñez

PHL senators, congressmen settle disagreeing clauses of digital VAT

NATALIYA VAITKEVICH-PEXELS

By Kenneth Christiane L. Basilio

SENATORS and congressmen in a bicameral conference committee on Thursday approved a bill that seeks to levy a 12% value-added tax (VAT) on digital services provided by companies outside the Philippines.

In a statement, Albay Rep. Jose Ma. Clemente “Joey” S. Salceda said the bicameral conference committee agreed to allow the Department of Finance (DoF) to set withholding tax rates for companies falling under the P3-million VAT threshold under the Tax Reform for Acceleration and Inclusion (TRAIN) Law.

This is to protect small online businesses, he said, adding that laws such as the Barangay Micro Business Enterprise Act and Ease of Paying Taxes Act would protect them from excessive taxes.

The measure is expected to generate P18 billion in its first year of enactment, Mr. Salceda, who heads the House of Representatives ways and means committee, said.

“The [bicameral conference committee] quickly agreed… on withholding taxes for percentage taxpayers… which will allow the secretary of Finance to set withholding tax rates for those who are not VAT-covered,” Mr. Salceda said.

“We obtained assurances that small taxpayers will not be subject to excessive audits or complicated compliance. What the DoF proposal simply does is instead of paying their percentage taxes at the end of the year, the taxes will be withheld,” he added.

Digital services refer to those provided over the internet or other electronic networks using information technology. These include online search engines, online marketplaces, cloud services, online media and advertising, online platforms and digital goods.

The bill covers e-commerce companies such as Amazon, Shein, Rakuten, Taobao, AliExpress and Temu, which are all outside the Philippines.

It will also cover foreign streaming platforms such as Netflix, Disney and HBO, Senator Sherwin T. Gatchalian, who led the Senate delegation in the bicameral conference committee, said in a separate statement.

“Businesses of digital services from abroad were not subject to VAT prior to this law,” Mr. Salceda told BusinessWorld in a Viber message. “So everything from, say, software purchases directly online to independent services delivered from abroad for Philippine companies, they don’t get to charge input VAT for that.”

Failure to tax foreign digital companies also harms their domestic rivals, he added.

“During the pandemic, at the peak of the displacement of traditional goods by digital services, we allowed foreign digital service providers unfettered and untaxed access to the Philippine market,” he said.

“While resident content producers were subject to VAT and income taxes, foreign service providers were not.”

This created an “unfair situation” for domestic digital services providers, he said.

House members of the bicameral committee pushed to earmark 5% of the bill’s revenues — about P900 million — to support the domestic digital creative industry.

The proposed law could affect the revenue of foreign digital service companies, Robert Dan J. Roces, chief economist at Security Bank Corp., told BusinessWorld.

“While it could generate much needed government revenue for social programs or infrastructure, the impact on both businesses and consumers should require careful consideration,” he said in a Viber message.

“Companies may absorb the VAT, hurting profits, or pass it on to Filipino consumers, leading to higher prices for streaming services, online games and more,” he added.

Mr. Roces said Congress might eventually explore alternative tax models or flat fees on specific services to balance revenue generation with fostering a thriving digital landscape.

“The National Government is expected to arrive at an optimal digital tax strategy that ensures the Philippines benefits from the digital age without stifling innovation or consumer choice,” he added.

Collecting the VAT could be a challenge, Leonardo A. Lanzona, an economics professor at the Ateneo De Manila University, said in a Facebook Messenger chat.

“Foreign companies may face challenges in complying with these taxes, including understanding new tax rules, filing requirements and potential double taxation if similar taxes exist in other countries,” he said.

DepEd chief known this week

PHILSTAR FILE PHOTO

PRESIDENT Ferdinand R. Marcos, Jr. on Thursday said he would probably name Vice-President Sara Duterte-Carpio’s replacement as Education secretary by the end of this week.

“Well, you know we have to carry on, and the Department of Education (DepEd) is quite possibly, arguably the most important department because education is that important,” he told a news briefing streamed live on Thursday.

“I would like to be able to announce the appointment of the new DepEd secretary by the end of the week.”

Last week, Ms. Duterte-Carpio resigned from the Cabinet as Education secretary and as vice chairperson of the government’s anti-communist task force. She did not provide a reason.

Mr. Marcos said he had asked Ms. Duterte-Carpio why she quit.

“What do we need?” he asked. “Do we need an educator, do we need an administrator, an accountant? And that is what we are trying to determine right now.” — John Victor D. Ordoñez

3 boys drown in Cotabato

COTABATO CITY — Three boys drowned while trying to catch fish in a deep fishpond in the village of Dalapitan, Matalam town in Cotabato on Tuesday.

Officials of the Matalam Municipal Police Station and Roel L. Vargas, who is managing the Matalam Municipal Disaster Risk Reduction and Management Office, separately confirmed to reporters on Thursday that all three minors died.

He said one of the boys probably drowned first. His companions also drowned after trying to rescue him.

Mr. Vargas said they were still investigating the incident.

Matalam Vice Mayor Ralph R. Rafael has ordered village officials in Dalapitan to put up signs around the fishpond warning residents of the deep water.

He said the local government would help the families of the victims facilitate their burial. — John Felix M. Unson