FOREIGN INVESTMENT pledges slumped by 63.6% in the first quarter as global economic challenges prompted investors to be more wary of investing in emerging markets like the Philippines, analysts said. Read the full story.
THE Toll Regulatory Board (TRB) has released the rules governing toll waivers for trucks carrying farm goods, part of a broader government effort to curb rising food prices.
The TRB said trucks carrying agricultural products need to be accredited by the Department of Agriculture to be eligible for the exemption.
It cited the need to prevent second-round effects of toll increases on inflation and ensure stability in food prices.
Food inflation accelerated to 6.3% in April from 5.7% the previous month and 8% a year earlier. Headline inflation picked up to 3.8%, according to the Philippine Statistics Authority.
“In order to ensure seamless implementation of the program, the TRB shall coordinate on a monthly basis with the DA, through its Food Lane Accreditation Projects, the updated master list of accredited (vehicles),” it said.
The TRB said that having an Autosweep or Easytrip Radio Frequency Identification (RFID) account is a pre-requisite for availing of the exemption.
It added that a weekly rebate will be credited to the RFID accounts of all accredited vehicles or trucks in the program.
“To facilitate the movement of food commodities and to easily account for the transactions, tollway operators shall provide specific lanes… provided that they are non-exclusive,” the TRB said.
The toll exemptions cover users of the North Luzon Expressway, South Luzon Expressway, Muntinlupa-Cavite Expressway, Subic-Clark Expressway, and Manila-Cavite Toll Expressway.
Last year, President Ferdinand R. Marcos, Jr. suspended the collection of pass-through fees along national roads to lower the logistics costs of farm goods, under Executive Order No. 41. — Adrian H. Halili
STB GIGAFACTORY, Inc. said its factory in New Clark City will start operations by July, and hopes to expand its capacity to the equivalent of two gigawatt-hours (GWh) worth of products within the next four years.
“We’re projected to go live in July, and then in August we’ll have a big inauguration,” according to Dennis Chan Ibarra, chief executive officer of Australian-funded StB GigaFactory.
StB GigaFactory produces batteries for energy storage backup for solar photovoltaic for residential, commercial, and industrial use.
“We’re going to accelerate our plans to triple the volume to 2,000 megawatts. So, it has two GWh of capacity, and that’s world-class scale,” he said.
“Our initial target is to get to 2 GWh in 4 years, at the maximum, and it could be accelerated depending on the market,” he added.
StB GigaFactory is the first locator in Filinvest Land, Inc.’s Filinvest Innovation Park in New Clark City in Capas, Tarlac. It hopes to export 70% of its output to Australia and Southeast Asia, with some of its output to be distributed within the Philippines.
“First shipments will be to Australia and Southeast Asia, including the Philippines, as we have a good order for the Philippines,” he said.
“We have a very large residential market in Australia this year, and then next year, we are ramping up for the North American market,” he added.
For next year, the company plans to go into electric vehicle products. Plans to enter this market had to be deferred because of the need to undergo certification.
“Right now, I need to certify the factory because I think automotive takes a lot of certifications … but we’ll have the certifications ready by next year,” he said.
Once StB GigaFactory reaches target capacity, the company will have invested around $35 million in the Philippines.
According to Mr. Ibarra, the company’s investment commitment in the factory was among the deals announced at the ASEAN-Australia Special Summit in March, during which President Ferdinand R. Marcos, Jr. obtained P86 billion worth of business deals. — Justine Irish D. Tabile
By Adrian H. Halili, Reporter
THE National Food Authority’s (NFA) inability to meet its rice procurement targets has raised questions about the agency’s capacity to stabilize rice prices, an economist said.
“The government needs to find alternative ways of insulating our country from the vagaries of trade and, in the process, reducing the need for price supports and buffer stocks,” Ateneo de Manila economics professor Leonardo A. Lanzona said in a Facebook Messenger chat.
He was referring to current plans to amend the Rice Tariffication Law of 2019 to restore the NFA’s power to regulate rice prices,
Mr. Lanzona added that other forms of market intervention “because NFA has been notorious for missing its procurement targets.”
In its quarterly procurement report, the NFA said it purchased 4.353 metric tons (MT) or 87,067 bags of palay or unmilled rice. The targets for the quarter were 67,145 MT or 1.34 million bags of palay.
It said that the low procurement during the period was due to “active participation” of traders offering higher farmgate prices compared to the government buying price.
The Rice Tariffication Law (Republic Act No. 11203) privatized the function of importing rice formerly carried out by the NFA. Instead, private traders were allowed to bring in their own shipments but had to pay a tariff of 35% on Southeast Asian grain.
The NFA had been reduced to maintaining an emergency inventory of domestically grown rice.
“We need to make sure that any market intervention by the NFA is not too costly, is not tainted again with corruption, and does not backfire on farmers,” Raul Q. Montemayor, national manager of the Federation of Free Farmers, said in a Viber message.
Mr. Montemayor added that the power to decide on where to buy, how much, and when to dispose of rice should be decided by the Secretary of Agriculture, and NFA officials, with NFA involvement limited to “providing logistical support to the DA.”
In a senate hearing, the DA proposed the return to the NFA of its power to intervene in the rice market. Agriculture Secretary Francisco P. Tiu Laurel, Jr. said such interventions would help correct price distortions.
On the other hand, Bantay Bigas Spokesperson Cathy L. Estavillo said that the restoration of NFA powers should come with increased funding to purchase domestically grown rice.
In a statement on Thursday, the NFA said that it would need P16.3 billion next year to procure the target volume for the national rice reserve and additional funding to upgrade its storage capacity.
“Currently, NFA only has the capacity to dry 31,000 metric tons but buys around 495,000 metric tons of palay. NFA is required by law to maintain a buffer stock equivalent to about nine days of national rice consumption,” it said.
The House of Representatives approved the amendments to the Rice Tariffication Law on second reading on Tuesday.
Amendments include authorization for the NFA to sell rice during emergencies and increased funding for the Rice Competitiveness Enhancement Fund to P15 billion, while extending the life of the fund by six years.
ANCILLARY SERVICES to distribution utilities (DUs) may increase by more than 10 centavos per kilowatt-hour (kWh) in the May billing cycle, according to the National Grid Corp. of the Philippines (NGCP).
This follows clearance by the Energy Regulatory Commission (ERC) to partially recover costs from the reserve market, which was suspended in March.
“With the order of the ERC on May 9, 2024, there will be an impact, an increase of more than 10 centavos from our estimate…corresponding to the 30% AS (ancillary services) costs last March 2024,” Julian Ryan Datingaling, head of revenue management department at NGCP, said in a briefing on Thursday.
In the May 9 order, the ERC allowed the settlement of 30% of transactions made on the reserve market for the March billing month.
Based on ERC simulations, the amount to be partially paid to generators in the reserve market will be P1.7 billion.
The amount is subject to adjustments pending the submission of the list of non-compliant generators by the NGCP, an intervenor in the case, during the period.
The total reserve trading amount for the March period will be P5.7 billion, the ERC said.
NGCP Spokesperson Cynthia P. Alabanza said that the amount is supposed to be charged as part of the February-to-March billing.
She said that the increase of 10-centavo per kWh is just an estimate of what distribution utilities may charge their consumers after the partial lifting of the suspension.
“We do not bill the consumers, so the rates will be translated by distribution utilities and cooperatives. That’s why, when we give you estimates, these are averages but this will change depending on the DU,” Ms. Alabanza said.
ERC Chairperson Monalisa C. Dimalanta has said that the 30% allowed settlement may possibly lead to an increase in transmission charges.
Ancillary services are tapped by grid operators to support the reliable operations of the grid.
These are pass through charges billed by the grid operator and remitted directly to generation companies. Ancillary services are included in the transmission charge component which is about 3.58% of a consumer’s monthly electricity bill.
In January, the Independent Electricity Market Operator of the Philippines (IEMOP) commenced with full commercial operations of the reserve market.
The reserve market allows the optimization of the market operator and system operator interfaces and automated real-time dispatch of committed ancillary services.
The ERC issued a suspension order in March after the IEMOP observed a significant increase in reserve costs for March compared to February. — Sheldeen Joy Talavera
FISHERIES production declined 0.5% year on year in the first quarter, driven by a decline in production in marine municipal fisheries, the Philippine Statistics Authority (PSA) said.
In a report, the PSA said fisheries output was 987.19 thousand metric tons (MT) from 992.33 thousand MT a year earlier.
“The decrease in production was noted in marine municipal fisheries, while commercial, inland municipal fisheries, and aquaculture reported increments in production during the period,” it said.
Commercial fisheries output was 188.92 thousand MT, up 10.7%. The segment’s output comprised 19.1% of fisheries production during the period.
The PSA said that aquaculture, which accounts for 55.3% of overall production, inched up 0.1%. Production during the three-month period was 546.4 thousand MT.
Inland municipal fisheries production rose 17.6% to 40.55 thousand MT. Its output was equivalent to 4.1% of overall fisheries production.
Meanwhile, marine municipal fisheries, which accounted for 21.4% of overall output, declined 12.4% year on year to 211.33 thousand MT.
Of the 20 major species, production fell for tamban, a type of herring (29.9%), milkfish or bangus (7.6%), bisugo (37.2%), blue crab or alimasag (29.5%), and seaweed (0.4%).
On the other hand, production increases were reported for skipjack or gulyasan (28.3%), tilapia (8.8%), frigate tuna or tulingan (29.6%), tunsoy, another type of herring (45.1%), and yellowfin tuna (13.3%). — Adrian H. Halili
THE US Department of Agriculture (USDA) said Philippine biofuel consumption is expected to grow this year amid higher demand for ethanol and biodiesel.
“The primary driver of this growth will be increases in the fuel pool, with potential for greater growth if higher blending standards are fully adopted,” the USDA reported.
The USDA said ethanol fuel demand is expected to increase 8% to 682 million liters.
“The feedstock problems remain and imported ethanol will fill the gap, growing by 14% to 280 million liters in 2024,” it added, noting that the Philippines has no option but to continue to use molasses and sugarcane.
In a separate report the USDA is estimating that raw sugar production will be flat at 1.85 million metric tons (MT), while cane production is estimated at 21.6 million MT.
It said the sugarcane industry remains challenged in providing feedstock for the biofuel industry.
In 2024, fuel ethanol production is projected to increase to 395 million liters from 387 million liters the prior year, due to the increased capacity of some ethanol facilities.
“Fuel ethanol imports (will) increase to 280 million liters in 2024 due to the rise in gasoline pool consumption. Local ethanol remains the priority, but imports will continue to cover around 42% of the needed supply,” it added.
Additionally, biodiesel consumption is expected to rise 0.8% to 240 million liters in 2024. Production is projected to grow by 2% to 230 million liters amid the rise in consumption.
“Should the government mandate B5, the available biodiesel plant capacity is more than enough to supply the requirement,” the USDA said, referring to a 5% biodiesel — 95% diesel fuel blend.
At a meeting with President Ferdinand R. Marcos, Jr., the Department of Energy said it will start moving forward with plans to increase the biodiesel blend to B5 in the next three years.
The increase in biodiesel blend to B3 is set for October.
“Given that it would occur in the last quarter of 2024, any volume uptake that would take effect would be minimal and growth would still be attributed to an increase in the overall diesel pool,” the USDA said.
However, it added that the bulk of coconut oil goes to traditional exports, reducing the available supply for biodiesel producers. — Adrian H. Halili
By Beatriz Marie D. Cruz, Reporter
THE GOVERNMENT should consider a review of excise taxes on commodities to help ease inflation as legislated wage hikes loom.
“At this point, the businessmen are not passing on their costs to the consumer because business is not exactly very good,” Philippine Chamber of Commerce and Industry chairman George T. Barcelon said via telephone.
Mr. Barcelon called on the government to review the excise tax for key commodities like fuel and agricultural products, as rising food and transport costs fanned inflation to 3.8% in April.
“There should be a balance wherein all of these taxes can be looked into, and can be reduced, so that the end product given to the consumer will not increase so much,” he said.
Businesses in the Philippines face operating costs due to the need to sources materials from overseas, making it difficult to raise wages for their workers, according to Antonio A. Ligon, who teaches law and business at De La Salle University.
“The factors in the difficulty in implementing higher wages can be related to high cost of raw materials for manufacturing, particularly if it is imported — which is also brought about by the shrinking peso versus the dollar,” he said in a Viber message.
The regional wage boards have the authority to review and adjust wages based on each region’s economic conditions. However, workers have long claimed that wages have not kept up with the cost of living.
“Many employers will feel the difficulty, as a wage hike is diametrically opposed to the objective of profit-making. Many will comply but might resort to terminating workers,” Mr. Ligon said.
Supporters of a legislated wage hike said this would strengthen the purchasing power of workers, thus helping the economy grow.
However, the Employers Confederation of the Philippines (ECoP) said the costs passed on to the consumer post-wage hike will erode the value of the wage increase.
“Unfortunately, the increase in salary would only be spent on the increased prices (of goods),” ECoP President Sergio R. Ortiz-Luis, Jr. said via phone.
On Labor Day, President Ferdinand R. Marcos, Jr. called on the Regional Tripartite Wage and Productivity Board to review the prevailing minimum wages amid rising prices and rising inflation.
The National Economic and Development Authority (NEDA) warned against a legislated wage hike, noting that such move could fan inflation and hurt smaller firms.
“We are trying to temper inflation. And we don’t, at this point, want to add more sources of pain,” NEDA Secretary Arsenio M. Balisacan told reporters last week.
British Chamber of Commerce of the Philippines executive director and trustee Christopher James Nelson said the government’s push to ease the process of importing agricultural goods and impose harsher sanctions on agricultural smuggling will help ease upward pressure on commodity prices.
“I think those things have all got to work together and get recommendations from the regional board, and then obviously it makes it easier to then look at (a wage hike), because what you don’t want is for wage increases to be inflationary,” he said by phone.
Senate President Juan Miguel F. Zubiri earlier asked Mr. Marcos to certify his proposed P100 legislated wage hike as urgent. Senators approved the measure on third and final reading in February.
Meanwhile, the House of Representatives on Wednesday will resume deliberations on the proposed P150 and P750 wage hikes.
Labor group Federation of Free Workers (FFW) asked legislators to approve the P150 wage increase during the next hearing.
“This approval would be a significant step towards addressing the needs of Filipino workers and promoting a fair and just society,” FFW President Jose G. Matula said in a statement.
THE Department of Budget and Management (DBM) on Tuesday approved the release of P87.632 million to fund the National Tobacco Administration’s (NTA) second-quarter operations.
On May 9, Budget Secretary Amenah F. Pangandaman signed the release of a Notice of Cash Allocation (NCA) amounting to P87.632 million for the NTA.
“We understand that agriculture is part of the backbone of our economy. For this reason, our government ensures that every segment of our agricultural landscape receives the support and resources it needs to thrive,” she said in a statement.
The fund release is in line with a call by President Ferdinand R. Marcos, Jr. and the Private Sector Advisory Council-Agriculture Sector Group to strengthen government support for the domestic tobacco industry.
The agency has an authorized appropriation of P550.504 million covered under a Special Allotment Release Order. Of total, a separate NCA for P175.276 million was issued in the first quarter.
Last year’s P550.5-million tobacco fund has been fully released, the DBM added.
NTA funding is sourced from 40% of specific taxes on Virginia-type cigarettes as well as tariff duties on imported leaf tobacco.
Earlier this month, tobacco farmers called on the government to pass the Anti-Agricultural Sabotage Act to address the rampant smuggling of tobacco products.
The measure only needs Mr. Marcos’ signature to become a law.
The Internal Revenue bureau recently seized illegal cigarettes which dodged taxes estimated at P150 million. — Beatriz Marie D. Cruz
THE PESO strengthened against the dollar on Thursday as US consumer inflation eased last month, renewing bets of an early rate cut by the US Federal Reserve.
The local unit closed at P57.465 per dollar on Thursday, strengthening by four centavos from its P57.505 finish on Wednesday, Bankers Association of the Philippines data showed.
The peso opened Thursday’s session at P57.35 against the dollar. Its intraday best was at P57.24, while its weakest showing was at P57.48 versus the greenback.
Dollars exchanged rose to $1.76 billion on Thursday from $1.27 billion on Wednesday.
“The peso appreciated after US consumer inflation for April came in weaker than market expectations after three months of upside surprises,” a trader said in an e-mail.
This resulted in increased expectations of an earlier rate cut by the US Federal Reserve, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message
US consumer prices increased less than expected in April, suggesting that inflation resumed its downward trend at the start of the second quarter in a boost to financial market expectations for a September interest rate cut, Reuters reported.
The consumer price index (CPI) rose 0.3% last month after advancing 0.4% in March and February, the Labor department’s Bureau of Labor Statistics said.
In the 12 months through April, the CPI increased 3.4% after climbing 3.5% in March. Economists polled by Reuters had forecast the CPI gaining 0.4% on the month and 3.4% year-on-year.
Financial markets saw a roughly 73% probably of a rate cut in September, up from 69% before the data. A few economists anticipate the Fed will start lowering borrowing costs in July.
For Friday, the trader said the market would digest comments from Bangko Sentral ng Pilipinas Governor Eli M. Remolona, Jr. that rate cuts could start by the third or fourth quarter amid easing upside risks to inflation.
The trader sees the peso moving between P57.30 and P57.55 per dollar on Friday, while Mr. Ricafort expects it to range from P57.35 to P57.55. — A.M.C. Sy with Reuters
PHILIPPINE STOCKS climbed on Thursday as US consumer inflation eased last month, boosting US Federal Reserve rate cut hopes, and as the market awaited the Bangko Sentral ng Pilipinas’ (BSP) policy announcement after trading hours.
The Philippine Stock Exchange index (PSEi) rose by 1.06% or 69.57 points to end at 6,628.20 on Thursday, while the broader all shares index went up by 0.71% or 25.10 points to 3,524.52.
“The index rose with most Asian markets as data showing that US consumer inflation eased slightly in April reignited bets that the Federal Reserve will start cutting interest rates this year,” Chinabank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message.
AB Capital Securities, Inc. Vice-President Jovis L. Vistan likewise said in a Viber message that cooler US consumer inflation “reignited optimism for potential rate cuts in the US.”
“This development reignited optimism for potential rate cuts in the US, with the market now factoring in the likelihood of two cuts within the year. Consequently, this has alleviated some of the pressures on the Philippine local currency and domestic interest rates,” Mr. Vistan said.
US consumer prices increased less than expected in April, suggesting that inflation resumed its downward trend at the start of the second quarter in a boost to financial market expectations for a September interest rate cut, Reuters reported.
The consumer price index (CPI) rose 0.3% last month after advancing 0.4% in March and February, the Labor department’s Bureau of Labor Statistics said.
In the 12 months through April, the CPI increased 3.4% after climbing 3.5% in March. Economists polled by Reuters had forecast the CPI gaining 0.4% on the month and 3.4% year on year.
Mr. Colet added that the PSEi rose as investors expected the BSP to keep benchmark rates unchanged on Thursday. The Monetary Board maintained its policy rate at 6.5% for a fifth straight meeting, it announced after market hours.
BSP Governor Eli M. Remolona, Jr. said after the meeting that they are now “less hawkish” as upside risks to inflation have ebbed, adding that rate cuts could start by the third or fourth quarter.
Almost all sectoral indices rose on Thursday, except for financials, which dropped by 0.33% or 6.71 points to 2,024.75.
Property climbed by 3.72% or 91.66 points to 2,552.23; holding firms went up by 1.63% or 94.56 points to 5,876.51; mining and oil rose by 0.2% or 18.66 points to 9,217.99; services increased by 0.19% or 3.84 points to 1,973.99; and industrials inched up by 0.01% or 1.73 points to 9,170.95.
Value turnover rose to P7.05 billion on Thursday with 886.04 million shares switching hands from the P5.5 billion with 464.27 million issues traded on Wednesday.
Advancers outnumbered decliners, 120 to 78, while 46 names were unchanged.
Net foreign selling went up to P196.95 million on Thursday from P84.66 million on Wednesday. — Sheldeen Joy Talavera with Reuters
A CIVILIAN flotilla of Filipino activists on Thursday failed to sail closer to a disputed shoal in the South China Sea, avoiding a clash with dozens of Chinese Coast Guard and militia vessels patrolling the area.
Still, the Atin Ito civic coalition in a statement called its mission to Scarborough Shoal a success after it managed to distribute food packs and about 1,000 liters of fuel to Filipino fishermen.
Akbayan Party President and Atin Ito convenor Rafaela David, who was part of a 10-man team that sailed a day earlier, said they had managed to breach China’s “illegal blockade.” “Mission accomplished.”
The main convoy was composed of at least four commercial fishing boats carrying more than 100 volunteers, journalists and fishermen, Emmanuel Hizon, one of the organizers, said by telephone. They were accompanied by about 100 fishermen on wooden boats on the first leg of the mission.
“This stands as a testament to the ingenuity, resourcefulness and bravery of the Filipino spirit amidst formidable challenges,” she added.
China said on Wednesday it has sovereignty over the shoal, which it calls Huangyan Island, and its adjacent waters.
The advance team went as near as 25 nautical miles (46 kilometers) from Scarborough Shoal, a triangle-shaped atoll with a vast fishing lagoon that China seized in 2012 after a tense standoff with Philippine ships, on May 15.
“China may possess larger and more vessels and wield strong water cannons, but we possess a secret weapon: our diskarteng Pinoy (Filipino strategy) which, when coupled with determination and love for fellow citizens and country, can surmount even the most daunting adversity,” Ms. David said.
Joshua Bernard B. Espeña, vice president of Manila-based International Development and Security Cooperation, said the civilian mission fills the void left by the government in defending the country’s claims in the waterway.
“Politicians should not hype these activities and put civilians in harm’s way,” he said in a Facebook Messenger chat. “Instead, these activities by civil society should serve as a signal for them to strengthen the country’s defense capabilities.”
The Philippines sent three coast guard vessels to ensure the safety of the civilian flotilla during the mission. About 100 smaller wooden fishing boats joined the initial part of the trip.
A Philippine Coast Guard aircraft was also deployed to monitor the situation at Scarborough Shoal, where Manila and Beijing have been embroiled in heated standoffs over competing claims, it said on Tuesday.
Chinese state broadcaster CCTV reported that the Chinese Coast Guard recently held routine drills at the shoal.
The main Atin Ito convoy did not proceed to the shoal after learning that their advance team had handed out fishing supplies and after a report that Filipino fishers in the area had been driven away by Chinese vessels.
The group got information that “most, if not all, Filipino fishermen had been driven away,” Mr. Hizon said.
“Upon learning that the advance team was able to conduct an effective supply run for fishers in Scarborough, the general assessment of the main mission was that the objective of getting to the vicinity of the shoal was already achieved,” he added.
‘ALIGNMENT OF INTERESTS’
The main convoy only managed to reach 50 nautical miles from the shoal, while about 40 Chinese vessels were positioned 40 nautical miles from it, Mr. Hizon said.
He said the main convoy was set to go to a fish port in Subic, Olongapo City to conclude the mission.
“The Atin Ito mission highlights not only the maritime security in the West Philippine Sea but also the most critical issue of food security and sustainability,” said Gary Ador Dionisio, dean of De La Salle–College of Saint Benilde School of Diplomacy and Governance.
“The negligence of the past administration to assert our rights in the Philippines exclusive economic zone resulted in the decimation of both our territorial and food security claims,” he said in a Facebook Messenger chat.
Former President Rodrigo R. Duterte led a pivot to China when he came to office in 2016 in exchange for investment pledges, few of which materialized.
“The Atin Ito campaign is an important facet in strengthening people’s awareness of the issues in the West Philippine Sea, including its role in the country’s food security, not only national sovereignty,” said Randy P. Tuaño, dean of the Ateneo de Manila University School of Government.
“By highlighting the ecological and economic significance of this region, the campaign educates the public about the critical marine resources that sustain local fisheries and support livelihoods,” he said via Messenger chat.
Don Mclain Gill, an international relations lecturer at De La Salle University, said the civilian mission illustrates the “alignment of interests between the government and the public toward exercising sovereignty and sovereign rights” within its exclusive economic zone.
“However, such undertaking must be planned thoroughly beforehand with the Philippine defense sector to ensure the feasibility of future missions,” he said via Messenger chat.
Mr. Hizon said Atin Ito aims to normalize civilian missions in the face of China’s growing aggression.
Philippine lawmakers hailed the civilian mission.
Senator Jose Pimentel “Jinggoy” Ejercito, Jr., who heads the Senate defense committee, said it reflects ordinary Filipinos’ love for country.
Manila Rep. Bienvenido M. Abante, Jr. said he wanted to invite some congressmen to go with him to the South China Sea.
Filipinos should condemn China’s bullying at sea, he said in a statement. “We are just a pawn in the motive of China to control international trade because more than 60% of all trade pass through [that sea].”
Atin Ito led a similar mission in December to deliver supplies to troops stationed at Second Thomas Shoal, but it cut short its journey due to what it described as shadowing and harassment by Chinese Coast Guard ships.
China claims almost all the South China Sea, including parts claimed by the Philippines, Brunei, Malaysia, Taiwan and Vietnam.
A United Nations-backed tribunal based in the Hague in 2016 voided China’s sweeping claims in the South China Sea for being illegal. — Kyle Aristophere T. Atienza
