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DoF sees FDI exceeding pre-2019 levels this year

PHILIPPINE STAR/ MICHAEL VARCAS

FOREIGN direct investment (FDI) is on track to exceed 2019 levels this year, with investors drawn in by reforms that have made the Philippines a more attractive investment destination, the Department of Finance (DoF) said.

“FDI levels are seen to be on track to exceed pre-pandemic levels. In order to further expand this promising growth story, we have carefully designed strategic initiatives that maintain a fiscal sector that is supportive of this goal,” Finance Assistant Secretary Neil Adrian S. Cabiles said at the BusinessWorld Insights: Stock Market Outlook 2025 conference.

In the first 11 months of 2024, FDI net inflows rose 4.4% to $8.58 billion, the DoF said, accounting for 95.3% of the BSP’s full-year forecast of $9 billion.

In 2019, the last year before the pandemic, FDI net inflows amounted to $8.671 billion.

In November, FDI net inflows fell 19.8% year on year to $901 million.

Mr. Cabiles said reforms like the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act will improve ease of doing business, upgrade the tax code, and clarify the value-added tax refund rules.

“This would mean streamlined compliance, reducing the administrative burdens and making transactions more efficient. CREATE MORE also enhances tax incentive competitiveness and strengthens governance and accountability in the granting and monitoring of these tax incentives, creating greater transparency and a more predictable investment environment. We expect that the CREATE MORE will particularly draw investments in infrastructure, heavy industry, the export-oriented manufacturing sector, and services,” he said.

The Real Property Evaluation and Assessment Reform Act and the rationalization of the mining fiscal regime will also enhance transparency and accountability in the real estate and mining industries, respectively, he added.

The passage of the Capital Markets Efficiency Promotion Act is also expected to boost FDI net inflows by increasing the competitiveness of the capital markets.

“We anticipate greater financial market activity through streamlined taxes on passive income and reduced taxes on stock transactions and financial intermediaries,” Mr. Cabiles said.

The Philippines’ recent exit from the Financial Action Task Force’s (FATF) grey list also improves its’ profile and could boost its credit rating.

The FATF on Friday removed the Philippines from the category of jurisdictions requiring increased monitoring for “dirty money” on Friday following a “successful” on-site visit. The Philippines had been on the list since June 2021. — Aaron Michael C. Sy

Global instant-noodle demand seen at 120 billion servings this year

DEMAND for instant noodles is projected at 120 billion servings at least in 2025, according to the World Instant Noodle Association (WINA).

“We are in the process of putting together the statistics for 2024 as we speak, but we are expecting the number to exceed that of 2023 — not significantly, but that is just our estimate,” WINA Chairman Koki Ando said at the WINA Summit on Wednesday.

“With regard to 2025 … we are expecting it to reach at least 120 billion servings, but in terms of prices, they have increased, so we are expecting the value to go up compared to 2023,” he added.

The 2025 instant-noodle forecast is little changed from the 2023 serving total of 120.21 billion.

The Philippines is expected to maintain its spot as the seventh-largest instant-noodle market according to 2023 totals, when its consumption was 4.39 billion servings.

Monde Nissin Corp. Chief Executive Officer and Executive Vice-President Henry Soesanto said in the Philippines, instant noodles are treated as snacks.

“In a year, people in the Philippines consume only 40 packs per capita,” Mr. Soesanto said, lagging many other countries.

WINA said its top market is China and Hong Kong, which accounts for 42.21 billion servings, followed by Indonesia (14.54 billion servings), India (8.68 billion), Vietnam (8.13 billion), Japan (5.84 billion), and the US (5.1 billion).

Mr. Soesanto described growth in the Philippines as “slow” due to negative perceptions of the product.

On the final day of the summit, WINA issued the Manila Declaration, outlining its policy direction and targets related to nutrition and health, environmental sustainability, food safety, and addressing social issues. — Justine Irish D. Tabile

Sustainable fisheries, aquaculture to support coastal livelihoods — ADB

A FAMILY of siganids fishers in Eastern Samar. — MARCIAL VILLANIA BOLEN

THE Asian Development Bank (ADB) said sustainable fisheries and aquaculture are crucial to supporting coastal livelihoods and food security in the Philippines.

“These key blue-economy sectors are vital for supporting coastal livelihoods and ensuring food security, especially in countries like Bangladesh, Indonesia, the Maldives, the Philippines, Vietnam and Pacific small-island developing states,” the ADB said in its 2025 Asia-Pacific Sustainable Development Goals (SDGs) Partnership report.

The ADB projected that with sustainable management, the economic value of coastal tourism in the Asia-Pacific region could more than double by 2030.

“This growth underscores the sector’s dynamism, especially as an engine of job growth, and highlights the critical need for targeted investment in workforce training. However, many jobs in the sector are seasonal or informal, with issues ranging from variable working hours and low wages to limited social protection.”

The ADB estimates that the Philippine coastal destinations accounted for 4 million tourism-related jobs, against India’s 9.6 million and Indonesia’s 10.7 million.

The bank said coastal tourism has become “indispensable” for these economies, providing a critical source of income and fostering service-oriented skills at the community level.

“As such, the blue economy, a subset of the green economy, requires specific attention. Sustainable fisheries are projected to grow rapidly, with the region’s fish farms anticipated to produce over 60% of global fish supplies by 2030,” it said. 

The region’s renewable energy industry, which leads job creation in key sectors driving the green and blue transition, is estimated to support 10.5 million jobs, with “upward potential.”

The ADB noted the launch of 380 electric buses in Davao City which have helped reduce emissions and spurred employment.

Overall, the Asia-Pacific region has made insufficient progress with none of the 17 SDGs on track to be achieved by 2030, it said. — Aubrey Rose A. Inosante

Sugar regulator to set up soil lab in Bukidnon to help drive production

PHILSTAR FILE PHOTO

THE Sugar Regulatory Administration (SRA) said it will sign an agreement to establish a 40-hectare soil laboratory at Central Mindanao University  (CMU) in Bukidnon.

The memorandum of agreement for the proposed soil laboratory at CMU, a state university, could be signed by March, Director Pablo Luis S. Azcona told BusinessWorld late Tuesday.

“We are still waiting on a counter-offer,” he said.

The soil laboratory will help Bukidnon, which accounts for 20% of Philippine sugar production, plant a wider range of cane varieties that are higher-yielding than current varieties.

The SRA is positioning Bukidnon as another possible center for sugar production alongside Negros, where sugarland is rapidly being converted by developers. — Kyle Aristophere T. Atienza

Honda sees growing PHL market for high-powered outboard engines 

MARINE.HONDA.COM

DEMAND for high-powered outboard motors in the Philippines is expected to grow alongside sustained growth in the economy, Honda Philippines, Inc. (HPI) said.

HPI estimates the current market for high-powered outboard motors in the Philippines at around 2,000 units.

“Given the economic growth and the country being an island nation, demand for outboard (motors) in the Philippines is expected to increase year by year,” it said.

On Wednesday, HPI, in partnership with Propmech Corp., launched its flagship marine outboard engine, the Honda BF350.

“As boats become larger, global demand for high-power outboard engines is increasing. Here in the Philippines, we also see the market growth in the high-powered range,” HPI President Sayaka Arai said.

According to Ms. Arai, demand for such engines has more than doubled in the last few years.

The target customers for the Honda BF350 include resort owners, private users, and the government. The unit cost is between P2 million and P2.5 million.

The Honda BF350 is a V8, making for smoother running, Honda said.

“HPI’s partnership with Propmech began over a decade ago with a distributorship agreement, and since then, we have delivered close to 1,000 outboard engines to the commercial market and key government agencies,” Ms. Arai said.

These agencies include the Bureau of Fisheries and Aquatic Resources, the Philippine Coast Guard, and the Philippine National Police.

“Honda and Propmech have built a strong partnership to deliver reliable marine solutions to the Philippine market. The BF350 provides advanced marine technology suited for the country’s waters and climate, ensuring performance and value for vessel owners,” Propmech President Glenn Tong said.

HPI hopes to sell at least 100 units of the BF350 in the Philippines this year.

Last year, Honda sold 1,000 BF350 units worldwide. It is available in Japan, North America, Europe, other Asia-Oceania countries, and the Middle East. — Justine Irish D. Tabile

Imported rice SRP to be cut to P49 per kilo starting next month

PHILIPPINE STAR/EDD GUMBAN

THE Department of Agriculture (DA) is lowering the maximum suggested retail price (MSRP) for imported rice to P49 per kilo starting in March in selected cities.

Agriculture Secretary Francisco P. Tiu Laurel, Jr. said that the new MSRP will apply to Metro Manila and other urban centers.

“In many provincial areas, we’ve seen prices of imported rice already lower than the MSRP.  So we will apply it more selectively,” Mr. Laurel said in a statement on Wednesday.

March will mark the first time for the MSRP for imported rice to fall below P50 since the price cap was introduced on Jan. 20.

The MSRP was initially set at P58 per kilo. Prior to its introduction, imported rice consisting of 5% broken grains sold for between P62 and P64 per kilo.

“We will review the numbers in the coming days to determine if there is room to lower the MSRP further. As of now, there could be scope for additional reductions, but we will have to see,” he said.

In January, the DA projected the price of imported rice to fall below P50 per kilo, as long as world market prices remain stable. This assumed a maximum landed cost of $550 per metric ton (MT) for 5% broken rice.

“The landed cost of 5% broken rice was quoted at $490 per metric ton on Friday,” the DA said.

Samahang Industriya ng Agrikultura (SINAG) Executive Director Jayson H. Cainglet said the lowering of the MSRP is a step closer to the ideal price of P40-P45 per kilo for imported rice.

“At the current price of $380 per metric ton of 5% broken Vietnam rice, imported rice should further go below P40/kilo,” Mr. Cainglet said in a statement on Wednesday.

Federation of Free Farmers (FFF) National Manager Raul Q. Montemayor said that the new MSRP starting in March can still allow all parts of the supply chain to recover their costs.

“Our computations show that, even if the tariff is reinstated to 35%, an MSRP of P49 per kilo for rice with 5% brokens would still be feasible and provide cost recovery and decent profits for all market players,” Mr. Montemayor said via Viber.

The MSRP on imported rice is among the DA’s plans to lower rice prices alongside the declaration of a food security emergency on rice on Feb. 3, which allows the release of rice inventories held by the National Food Authority (NFA).

The emergency allows the release of NFA rice stocks to government agencies, local government units (LGUs), and the KADIWA ng Pangulo subsidized-market network.

Mr. Cainglet said the MSRP and the declaration of the food security emergency indicated the “dismal failure” of Executive Order (EO) No. 62 in taming rice prices.

“It is the right time to call for the repeal of EO 62 and generate revenue from imported rice that is earmarked to directly support our rice farmers,” he added.

President Ferdinand R. Marcos, Jr. last year issued EO 62 slashing tariffs on rice imports to 15% from 35% previously until 2028.

The FFF has blamed the tariff reduction along with the lack of restrictions on rice imports for the severe drop in the farmgate price of palay, or unmilled rice.

Citing Bureau of Customs data, the FFF said nearly 4.8 million tons of rice arrived in the country last year, while another 331,000 tons entered the country in January.

“Farmers in Mangaldan, Pangasinan have reportedly postponed selling their palay due to low buying prices of traders. In San Jose, Occidental Mindoro, prices for newly harvested palay have dipped to as low as P13 per kilo,” it said.

“Clean and dry palay is at P19 per kilo, with traders reportedly hesitating to buy stocks due to the influx of imported rice in the market,” it added.

The FFF said that it is seeking the restoration of the 35% tariff on imported rice to induce traders to buy palay at better prices.

“The landed cost of rice with 5% brokens from Vietnam will rise to P33 per kilo if we reinstate the 35% tariff,” Mr. Montemayor said.

“If we add P15 for other costs and trading margins all the way to retailers, imported rice could still be sold at P48,” he added. — Justine Irish D. Tabile

NGCP sees ‘vindication’ in Singapore arbitration

NATIONAL GRID Corp. of the Philippines (NGCP) said its successful outcome of its Singapore arbitration case serves as “vindication,” with a neutral third party affirming it has honored the terms of its concession agreement, specifically the restrictions on foreign ownership.

“How will that affect us moving forward? Operationally, siguro wala (maybe there will be no impact). I hope, however, that the weight of the disinterested third party’s ruling will clear the clouds surrounding NGCP and how we run the transmission system,” Cynthia P. Alabanza, NGCP assistant vice-president for public relations, told reporters on Wednesday.

The Arbitral Tribunal of the Singapore International Arbitration Centre ruled in favor of NGCP in a final decision dated Feb. 19 in its dispute with the Power Sector Assets & Liabilities Management Corp. (PSALM) and National Transmission Corp. (TransCo).

The arbitrator declared that the grid operator did not violate the nationality restrictions in the Philippine Constitution and the Anti-Dummy Law — which restricts foreign ownership in public services companies.

“It’s clear that there was no violation of the prohibition, among other things… That is the biggest win for NGCP,” Ms. Alabanza said.

Domestic corporations Monte Oro Grid Resources Corp. and Calaca High Power Corp. each hold 30% of the outstanding capital stock of the NGCP. State Grid Corp. of China holds the remaining 40%.

In 2018, the NGCP filed an arbitration case against PSALM and TransCo over the interpretation of the parties’ concession agreement.

The grid operator had sought, among other things, a declaration that a payment made on July 15, 2013 amounting to P57.88 billion was valid, as well as the payment of a further P4 billion “which should have been borne by TransCo under the concession agreement, but was advanced by NGCP.”

PSALM and TransCo argued that NGCP was in “concession default” for having allegedly violated the national restrictions for public utilities under Philippine law and the concession agreement.

The NGCP obtained a 25-year concession in 2007 to operate the power transmission network after an open, public and competitive bidding process. It officially started operations as a power transmission service provider in 2009.

“So, vindication ‘yun na sumusunod lang kami sa mga batas na naipasa at mga kontratang inihain ng gobyerno nang isinapribado nila ang transmission at NGCP ang nabigyan ng concession (It’s a vindication for us, signifying that we followed the law and the contract with the government when the transmission grid was privatized and NGCP was awarded the concession),” Ms. Alabanza said.

PSALM and TransCo said on Monday that they referred the matter to the Office of the Government Corporate Counsel for appropriate action. — Sheldeen Joy Talavera

PAGCOR sees up to P480B in 2025 gross gaming revenue

PAGCOR

THE Philippine Amusement and Gaming Corp. (PAGCOR) said it expects to generate up to P480 billion in gross gaming revenue (GGR) this year, led by the growing electronic games segment.

In a briefing on Wednesday, PAGCOR Chairman and Chief Executive Officer Alejandro H. Tengco said GGR could range from P450 billion to P480 billion in 2025.

“I believe it will come from e-gaming and the trend in January and February will continue, land-based (operations) will grow, though not as significantly,” Mr. Tengco said on Wednesday.

Mr. Tengco said the full-year target is based on the estimated P40 billion GGR generated in January, up from P28.5 billion a year earlier.

Citing preliminary data, PAGCOR said if the full-year target is met, GGR would be 16.94% higher than the record P410.48 billion in 2024.

These GGR levels suggest that the Philippines is generating the second-largest gaming revenue in Asia after Macau, and exceeding that of Singapore, PAGCOR said.

In 2024, the integrated resorts (IR) segment was the largest contributor to GGR, accounting for 49%, followed by e-games (38%), the now-banned Philippine Offshore Gaming Operators (9.21%), and PAGCOR-owned casinos (3.9%). 

In 2025, Mr. Tengco expects the IR segment to account for 50% of GGR, with the share of e-games expected to account for 45% and PAGCOR casinos 5%, as the share of POGOs falls to 0%.

During his State of the Nation Address in July, President Ferdinand R. Marcos, Jr. ordered that all POGOs be shuttered by end-2024.

“We will continue to accept unregistered e-games operators to register, so that is where growth will come from. The IRs are gaining momentum again, especially the one in Quezon City,” he said.

E-game registration will be made more attractive by reduced rates, he said.

PAGCOR further reduced the rates it charges e-games operators to 30% from 35% starting Jan. 1, calling on unregistered entities to become legitimate operators.

It estimates gross revenue for 2025 at P125 billion, powered by the performance of Solaire Resort North in Quezon City.

In 2024, PAGCOR revenue rose 41% to a record P112 billion.

“There are new (IR) licensees opening in Cebu and Boracay. So I see an increase and then in e-gaming as well,” Mr. Tengco said, adding that he expects e-games to equal the performance of physical casinos “maybe in the next two or three years .”

Mr. Tengco said the regulator’s divestment from the 41 casinos it owns is expected to begin by 2026. — Aubrey Rose A. Inosante

The importance of precise documentation

Pursuing tax refunds in the Philippines can be complex, but the process rewards the meticulous. A recent ruling by the Court of Tax Appeals (CTA) sitting en banc underscores the intricate process involved in claiming tax refunds and highlights the importance of adhering to the stringent requirements set forth by the Bureau of Internal Revenue (BIR).

The case in question involves a taxpayer-corporation that sought a tax refund for its unutilized creditable taxes withheld in previous years. The primary issue in this case was whether the Court in Division had erred in disallowing the full claim for a tax refund. The taxpayer argued that the withholding tax certificates or BIR Form No. 2307, used to prove the withholding of taxes by the payor, need not contain specific details of the payee, such as its name, taxpayer identification number (TIN), and address. The taxpayer contended that the certificates should focus solely on the payor’s details, since the payee’s information is not mandated by law or revenue regulations to establish the fact of withholding.

However, the court en banc upheld the decision of the court in division. It ruled that the applicant must prove not only its entitlement to the tax refund under the law but also emphasized the necessity of strict compliance with documentary and evidentiary requirements for such claims. The court highlighted the importance of including the identities of both parties in the withholding tax certificates.

It reiterated the principle that tax refunds are construed strictly against the taxpayer and liberally in favor of the state. Thus, the burden of proof lies with taxpayers to establish entitlement to a tax refund or credit, meaning they must be prepared to provide comprehensive and accurate documentation to substantiate their refund claims. This principle is rooted in the need to protect government revenue and prevent unwarranted refunds.

The court’s ruling was based on the established requisites for claiming a tax credit or refund of creditable withholding taxes, which include: (i) filing of the claim with the Commissioner of Internal Revenue within the two-year period from the date of tax payment, (ii) demonstrating that the income received was declared as part of the gross income, and (iii) establishing the fact of withholding through a statement issued by the payor to the payee, showing the amount paid, and the tax withheld.

While the taxpayer had complied with the first two requisites, the court found deficiencies in the third requirement. The withholding tax certificates submitted contained defects such as incorrect TINs, missing addresses, and a lack of signatures from the payor’s authorized signatory. These defects undermined the credibility of the certificates and justified the partial disallowance of the refund claim. As a result, the Court en banc found no grave abuse of discretion in the division’s decision and affirmed its findings, denying the taxpayer’s petition for review.

The case highlights the need for meticulous record-keeping, consistent diligence in tax compliance, and an awareness of the potential consequences of overlooking seemingly minor details in tax forms.

Regardless of whether a taxpayer intends to claim a tax refund or simply wants to use the tax withheld as a credit, it must ensure that withholding tax certificates issued by its customers are properly accomplished with the correct information. The identity and names of both the payee and the payor, along with all necessary details such as the TIN, address, and the signature of the payor’s authorized signatory, must be clearly and correctly reflected in the withholding tax certificates to justify their credibility. This requirement is crucial for maintaining the integrity of the tax refund/credit process and preventing fraudulent claims.

Taxpayers should regularly review their tax documentation processes to ensure compliance and minimize the risk of disputes with tax authorities during an audit or a refund claim, as the BIR may rightfully disallow withholding tax credits claimed which are supported by noncompliant or defective forms during a tax investigation.

As the deadline for the annual tax return filing approaches for calendar-year ending taxpayers, corporations must conduct a thorough review of their withholding tax certificates and have any discrepancies corrected or incomplete details filled out by the withholding agent-customer, before submitting their annual income tax returns. This proactive approach ensures that all documentation is accurate and complete, thereby strengthening the taxpayer’s position for any potential refund claim.

By adhering to regulatory requirements and maintaining precise tax documentation, taxpayers can better position themselves to successfully get through the tax refund process and avoid potential pitfalls. The recent CTA ruling serves as a reminder of the importance of compliance and precision within the intricate framework of corporate taxation in the Philippines.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.

 

Crystabelle Cruz-Lucas is a senior manager at the Tax Services department of Isla Lipana & Co., the Philippine member firm of the PwC network.

Peso strengthens amid market caution over Trump’s higher tariffs

BW FILE PHOTO

By Aaron Michael C. Sy, Reporter

THE PESO appreciated against the dollar on Wednesday amid market caution due to uncertainty stemming from US President Donald J. Trump’s planned tariffs.

It closed at P57.88 a dollar, five centavos stronger than its P57.93 finish on Tuesday, according to Bankers Association of the Philippines data posted on its website.

The peso opened at P57.87 against the dollar. It weakened to as much as P57.92 and strengthened to as much as P57.855 against the greenback. Dollars exchanged fell to $1.09 billion from $1.38 billion on Tuesday.

“The dollar-peso traded cautiously amid uncertainties on Trump’s trade policies and ahead of US GDP data tomorrow,” a trader said by telephone.

Mr. Trump on Monday said tariffs against Canada and Mexico would proceed as scheduled, ostensibly from March 4.

The dollar pulled off an 11-week low versus major peers, helped by a rebound in short-term Treasury yields even as a run of weak economic data weighed on investor sentiment.

The Canadian dollar slipped to a two-week low and the Mexican peso was weaker with a new round of tariffs from Mr. Trump’s administration due to hit those neighbors next week.

“Currency markets remain fickle,” DBS analysts wrote in a client note, citing swings in the dollar over the course of this week.

In terms of the US economy, “sentiment has been shaky for a while and any miss in data would place downward pressure on yields,” they said. “We suspect that this risk-off move may have further to go and expect US yields to maintain a downward bias in the short term.”

The dollar index, which measures the currency against six major rivals, added 0.3% to 106.51 in the Asian afternoon, rising from this week’s low of 106.13, the weakest level since Dec. 10.

The dollar index weakened 0.5% on Tuesday after the US Conference Board said its consumer confidence index dropped 7 points, its largest fall since August 2021, to 98.3, well short of the 102.5 estimate of economists polled by Reuters.

The result added to other weak data, pushing expectations toward two quarter-point interest rate cuts by the Federal Reserve over the remainder of this year, with the next likely coming in July, according to market pricing.

The two-year US Treasury yield declined as low as 4.074% on Tuesday for the first time since Nov. 1, but was up at 4.1271% on Wednesday.

“US data flow on net is now disappointing expectations, calling into question the US exceptionalism narrative that had been USD supportive,” said Tapas Strickland, head of market economics at National Australia Bank.

Lower global crude oil prices also supported the peso on Wednesday, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber message.

Brent crude rose 0.3% or 24 cents to $73.26 a barrel by 7:35 a.m. GMT. US West Texas Intermediate (WTI) crude oil futures rose 0.3% or 23 cents to $69.16, according to Reuters.

These were up from Tuesday, when oil prices fell about 2% to a two-month low, with Brent futures falling 2.4% or $1.76 to settle at $73.02 a barrel, while US WTI crude fell 2.5% or $1.77 to $68.93.

The trader expects the peso to trade at P57.70 to P58 a dollar on Thursday, while Mr. Ricafort sees it moving from P57.75 to P57.95. — with Reuters

PSEi rebounds after strong corporate earnings

REUTERS

By Sheldeen Joy Talavera, Reporter

PHILIPPINE shares rebounded on Wednesday after two straight days of decline as strong corporate earnings lifted investor sentiment.

The bellwether Philippine Stock Exchange index (PSEi) advanced 1.33% or 80.8 points to close at 6,144.96. The broader all-share index gained 0.77% or 27.96 points to 3,668.41.

“The local bourse rebounded… as investors seized buying opportunities after two consecutive days of decline,” Claire T. Alviar, research analyst at Philstocks Financial, Inc., said in a Viber message. “Optimism was further fueled by corporate earnings results, which contributed to the market’s positive sentiment.”

Juan Paolo E. Colet, managing director at China Bank Capital Corp., said the index rose “on the back of generally positive corporate earnings results and fresh bargain hunting.”

“While today’s gains reflect some renewed optimism, the PSEi’s momentum will likely hinge on how these upcoming releases and earnings reports shape expectations for domestic growth and policy direction in the near term,” Jayniel Carl S. Manuel, an equity trader at Seedbox Securities, Inc, said in a Viber message.

Almost all sectoral indexes increased except mining and oil, which fell 1.51% or 124.25 points to 8,076.36.

Financials gained 1.56% or 35.79 points to 2,323.27; while the property index rose 1.45% or 32.17 points to 2,251.08. The industrial index increased 1.29% or 112.93 points to 8,831.74, while holding firms went up by 1.22% or 61.37 points to 5,110.33. Services added 0.32% or 6.39 points to 1,963.02.

Value turnover rose to P5.31 billion involving 467.32 million stocks, from P5.17 billion involving 634.67 million shares a day earlier.

Advancers outnumbered decliners 93 to 85, while 60 were unchanged. Net foreign buying stood at P166.13 million, a turnaround from the P563.8 million in net foreign selling on Tuesday.

Market players would be closely watching the budget balance, money supply and bank lending data for January, Mr. Manuel said.

“These releases will shed light on the government’s fiscal position, liquidity conditions and overall credit growth factors that could influence both the corporate earnings outlook and the peso’s stability against the US dollar,” he added.

China tells PHL to withdraw Typhon missile system to keep regional peace

PHILSTAR FILE PHOTO

By John Victor D. Ordoñez and Adrian H. Halili, Reporters

CHINESE state media on Wednesday urged Manila to withdraw Washington’s mid-range Typhon missile system to keep the peace  in the region amid rising tensions in the waterway.

“The region needs peace and prosperity, not intermediate range missiles and confrontation,” People’s Daily, the newspaper of the governing Communist Party, said in a commentary. “The Philippines has repeatedly gone back on its word and acted in bad faith … initially promising that it was only a temporary deployment, and that the system would be withdrawn.”

The Typhon missile system was deployed by US forces to the Philippines in April last year as part of their Balikatan or “shoulder-to-shoulder” military exercises. The Philippines had said the deployment was temporary, but they have since remained in the country, drawing the ire of the Chinese government.

This followed the Chinese Foreign Ministry’s Feb. 12 statement, calling for the Philippines to “change the course” by reconsidering its plan to keep the US Typhon missile launchers.

Philippine President Ferdinand R. Marcos, Jr. earlier said he was willing to pull out the US Typhon missile once China stops its aggression in the South China Sea.

Philippine Defense Secretary Gilberto Gerardo C. Teodoro, Jr. earlier said Manila will not be a “doorstep” and that acquiring the missile system was within the country’s “prerogative” to enhance its defense capabilities.

China claims sovereignty over almost the entire South China Sea, a vital waterway for more than $3 trillion of annual ship-borne commerce, putting it at odds with Brunei, Indonesia, Malaysia, the Philippines and Vietnam.

A United Nations-backed tribunal in 2016 voided China’s claim for being illegal, but Beijing does not recognize the ruling.

Senator Ana Theresia N. Hontiveros-Baraquel said that China continually shifted the narrative when it comes to aggressive activities in the South China Sea, especially on social media.

“We feel it very strongly here in the Philippines that whenever they bully us in the West Philippine Sea or there is an issue that they are doing something wrong to us, they will really come out with their propaganda that denies it,” Ms. Hontiveros said in a separate news briefing.

She added that certain individuals, sectors, or even candidates in the mid-term elections have been supporting China it is effort to spread false narratives, especially on activities in the South China Sea.

“We are being gaslighted by China… I would expect that from Chinese state-owned media but not from our (countrymen),” she said.

US Embassy in the Philippines has no comment on the Chinese state media’s statement, its Spokesperson Kanishka Gangopadhyay said via Viber message.

Foreign Affairs spokesperson Ma. Teresita C. Daza did not immediately reply to a WhatsApp message seeking comment.

NOT A VALID STANCE
The Philippines should not consider China’s proposition as a “valid stance,” Josue Raphael J. Cortez, a lecturer at the School of Diplomacy and Governance of De La Salle-College of St. Benilde said in a Messenger chat.

Keeping the missiles could be a way for the country to project the power and capabilities in response to aggressive activities carried out by China towards the Philippine Coast Guard (PCG) and fisherfolks, he said.

“These actions are crystal clear violations of our territorial integrity, and the Philippines will of course have to do something about it,” he said.

“We can speculate that this pronouncement of China is in response to the new regime of Washington as this is a manifestation of the United States’ ‘ironclad commitment’ to us… Beijing now needs to think twice before undertaking something that would further impede on our rights over the disputed territories,” he said.

A security analyst separately said it would be in the best interest of the Philippines to have peaceful settlements with China.

“The presence of US Typhon missiles in the Philippines serves American security interests in Asia to counter China,” Rommel C. Banlaoi, president of the Philippine Society for International Security Studies and former deputy national security adviser, said in a Viber message.

“But it is in the best interest of the Philippines to have peaceful settlements with China through friendly negotiations and diplomatic engagements and not through military deterrence and strategic containment.”

Last week, the PCG accused the Chinese Navy of performing dangerous flight maneuvers close to a Philippine government aircraft.

The People’s Liberation Army Navy helicopter flew as close as three meters to the aircraft, which the PCG said was a “clear violation and blatant disregard” of aviation regulations.

Armed Forces of the Philippines Chief of Staff General Romeo S. Brawner, Jr. has said that the country is looking to buy more military hardware to modernize its arsenal, including additional BrahMos missiles from India and at least two submarines.

The Philippines has contested China’s sweeping claims in the waterway through diplomatic channels by filing more than 190 diplomatic protests since Mr. Marcos took office in 2022.

Philippine Foreign Affairs Secretary Enrique A. Manalo has said Manila plans to raise its dispute with China before the Association of Southeast Asian Nations (ASEAN) when it takes the chairmanship in 2026.

“The Philippines should uphold the Association of Southeast Asian Nations  principles of peace, freedom, and neutrality amidst great power rivalry,” Mr. Banlaoi said.

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