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Rains to curb SEA nickel output, with consequences for RE adoption, says IEA

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A THIRD of Southeast Asia’s (SEA) nickel mines are expected to experience heavier rainfall in the coming years, with the resulting drop in production possibly delaying the global transition to renewables, the International Energy Agency (IEA) said.

At the Asian Development Bank (ADB) Asia Clean Energy Forum, Jinsun Lim, IEA Energy and Environment Policy Analyst, said: “Southeast Asia is delivering a dominant role in nickel supply today… However, we are observing that escalating risks of floods due to heavy rainfall could be long-term threats (to nickel production).”

One-third of nickel mines in Southeast Asia are likely to see a more than 10% increase in heavy rainfall by the end of the century, Ms. Lim said.

“If climate change is not mitigated in time, in a high-emission scenario, almost all nickel mines in the region will see over a 10% increase (in rainfall) or more,” she said.

Deemed a crucial energy transition mineral, nickel is a key component of solar photovoltaics (PV) and electric vehicle batteries.

The Philippines and Indonesia account for two-thirds of global nickel output, Ms. Lim said.

Global demand for nickel is expected to increase in the coming years as countries rush to limit global warming to 1.5°C under the Paris Agreement.

The Philippines hopes to increase the share of renewable energy (RE) in its power mix to 35% by 2030 and 50% by 2040.

Renewables currently account for 22% of the Philippine energy mix.

Extreme heat will also reduce the capacity of solar panels, resulting in lower solar energy production, Ms. Lim said.

“Higher temperature leads to a lower voltage and less solar power generation, as most solar PVs work best in cool and sunny weather of around 25°,” she said.

Under a high-emission scenario, around two-thirds of solar PVs would see more than 20 days of maximum temperature of about 35°, according to IEA.

Ms. Lim also noted that the Philippines remains highly vulnerable to rising sea levels, affecting more than half of the population living in coastal areas.

Around 60% of Southeast Asia’s gross domestic product is generated by coastal locations, with more than a quarter of the region’s population living along the coastal, she added. — Beatriz Marie D. Cruz

PHL metal production may be dampened by weak global prices

DAVID HELLMANN-UNSPLASH

WEAK ORE prices are expected to weigh on the value of the Philippines’ metals production, analysts said.

“We can expect this to continue… in the near to medium term,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

In a report, the Mines and Geosciences Bureau (MGB) said that the value of metallic mineral production dropped 12.8% during the first quarter.

The decline was mainly attributed to metal price declines and the slowdown in mine production.

The MGB said the value of metals fell to P51.8 billion from P59.4 billion a year earlier.

“The (first-quarter) production suggests that a challenging trend that may persist. The persistent low nickel prices, coupled with adverse weather conditions impacting production, are significant factors,” Mr. Limlingan added.

The value of nickel production declined 36% to P7.63 billion from a year earlier. Ore production fell 16.6% to 3.81 million dry metric tons.

Average nickel prices during the quarter dropped to $7.53 per pound from $11.78 per pound a year earlier.

“Given the current global economic uncertainty and potential oversupply in the market, it is probable that metal prices, particularly for nickel, will remain under pressure throughout the year,” he added.

Nickel and other nickel by-products made up 33.78% of the total value of production at P17.5 billion.

Michael T. Toledo, chairman of the Chamber of Mines in the Philippines (CoMP) said that a steady limonite market and increasing interest from Indonesian smelters could act as a tailwind for nickel.

“The Philippines also has the opportunity to fill in the gap caused by tensions in New Caledonia. Offer prices have improved and we have reason to be optimistic that these developments will translate into better transaction prices as well,” he said in a Viber message.

Global Ferronickel Holdings, Inc. President Dante R. Bravo said nickel ore prices may rise slightly during the second half of the year.

“We’re hopeful the nickel ore price will go up a little bit in the second half this year as we see the Chinese economy recovering very well and since the cooling off in (electric vehicle) sales seems to be temporary,” he said in a Viber message.

The Chamber of Automotive Manufacturers of the Philippines, Inc. said that it is expecting higher EV sales this year due to the 0% tariff treatment of imported hybrid EVs and plug-in hybrid EVs.

Gold production fell 14% to 7,178 kilograms. Its value dropped 3.55% to P26.95 billion. Gold accounted for 52.01% of the value of metals produced.

“Gold prices, which have risen owing to increasing demand from central banks worldwide, will still be largely affected by global geopolitics and the US response to inflationary pressures. Nonetheless, the long-term prospects of gold as an investment and store of value are very positive,” CoMP’s Mr. Toledo said.

The average price of gold increased to $2,070.05 per troy ounce from $1,889.05 a year earlier.

The MGB said that gold prices are expected to remain “upbeat” over the rest of the year amid the ongoing conflicts in the Middle East.

Additionally, Mr. Toledo said that copper demand may strengthen this year due to the global shift to green energy and limited supply.

“No new mining projects will come on-stream in the next few years. This would likely result in higher copper prices,” he added.

The estimated value of Philippine copper output decreased 3% year on year to P6.3 billion. Copper prices averaged $3.83 per pound during the period.

Production volume rose 4% to 67,582 dry metric tons. — Adrian H. Halili

House panel approves bill granting OFWs discount on remittance fees

PHILIPPINE STAR/EDD GUMBAN

A HOUSE of Representatives committee last month approved a consolidated bill seeking to grant overseas Filipino workers (OFWs) a 50% discount on remittance fees imposed by banks.

The bill also prohibits the raising of remittance fees without prior notice to the Bangko Sentral ng Pilipinas, the Department of Finance, and the Department of Migrant Workers.

“Recognizing the significant contribution of OFWs to the national economy through their foreign exchange remittances, the State shall adopt measures to protect the hard-earned money they remit home against usurious interest rates and exorbitant fees,” according to the unnumbered substitute bill.

Remittances from OFWs rose 2.6% to $3.05 billion in March from $2.97 billion a year earlier.

Banks can then claim the discounted remittance fee as a tax deduction.

“Bank and non-bank financial intermediaries providing discounts on remittance fees may claim the discounts granted as tax deductions based on the cost of service rendered to OFWs to be treated as ordinary and necessary expense deductible from the gross income of the intermediary,” according to Section 5 of the unnumbered substitute bill.

The House Committee on Overseas Workers Affairs also approved a proposed measure requiring OFWs to attend financial literacy seminars.

The literacy seminar would discuss consumer protection and responsible borrowing, among others.

The bill requires OFWs to undergo a pre-departure orientation seminar on financial literacy. They will also need to sit through a financial education seminar “within a reasonable time upon their arrival in their respective countries of destination.”

Families of OFWs will also be provided with free online financial literacy seminars. — Kenneth Christiane L. Basilio

PHL must make case for emission reductions to mobilize climate finance, UNESCAP says

BRENDAN O'DONNELL-UNSPLASH

By Beatriz Marie D. Cruz, Reporter

THE Philippine government must tap climate financing to fast-track its transition towards greener modes of transport, but before it can do so, it needs to commit to a certain level of emissions reduction over the medium term, the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) said.

“Green financing and climate financing are tied to emission reductions,” Madan B. Regmi, who heads UNESCAP’s sustainable mobility, transport and climate change and low carbon transport portfolio, said in a video interview. 

“So the (government) needs to develop projects to demonstrate that it is planning to reduce emissions within five years or 10 years after implementation (by quantifying) how much emissions can be saved so they can qualify (for the financing),” he said.

Adopting electric vehicles (EVs) would be cost efficient in the long run after an initial period of high costs, Mr. Regmi said.

The Department of Finance has said it is planning to tap the Green Climate Fund to support four priority projects in the pipeline worth $124 million.

The government has been promoting “greener” forms of transport as it committed to reduce greenhouse gas emissions by 75% by 2030 under the Paris Agreement.

To achieve this, the government should also fast-track the inclusion of renewables in its energy mix to ensure sufficient power supply for EVs, Mr. Regmi added.

The Philippines hopes to bring the share of renewables in the power generation mix to 35% by 2030 and to 50% by 2040.

It is also a key producer of critical minerals like nickel, chromite, cobalt, and copper for EVs.

The National Economic and Development Authority Board has expanded tariff cuts to electric motorcycles (e-motorcycles), electric bicycles (e-bicycles) and hybrid EVs.

However, the adoption of safe and environment-friendly public transport is hampered by the lack of coordination between local officials, especially in the capital region.

“Many things are done in isolation,” he said, noting that local governments as well as the Department of Transportation should come up with a development master plan that would be applicable across changes in leadership.

He also cited the need to develop critical infrastructure that would encourage a shift from a “car-centric” behavior to public modes of transport.

Economic sabotage bill may deter tobacco smuggling, JTI says

BoC

THE impending economic sabotage bill is expected to help the government minimize lost revenue from tobacco smuggling, cigarette maker JTI Philippines said.

“We are looking forward to its full implementation. The crime of tobacco smuggling is indeed an act of economic sabotage because, put simply, it robs the nation’s coffers,” JTI General Manager John Freda said in a statement.

“Not only does it deprive government of much needed tax revenue but illegal trade cheats everyone: society, consumers and legitimate businesses,” he said.

Last month, the bicameral conference committee report on the Anti-Agricultural Economic Sabotage bill was ratified. 

It seeks to repeal Republic Act No. 10845 or the Anti-Agricultural Smuggling Act. It will also introduce stiffer penalties for smuggling, hoarding, profiteering, and cartel-like behavior in regard to agricultural and fisheries products.

Mr. Freda said the illicit tobacco trade is “growing at alarming levels” and threatens the economy, particularly agriculture.

The Bureau of Internal Revenue (BIR) estimates that the government lost P25.5 billion in taxes from illicit tobacco last year.

This year, the BIR is hoping to collect P324.56 billion in excise taxes, with tobacco products being counted on to generate P152.4 billion.

The tobacco industry has so far contributed around P46.69 billion to the excise tax collections as of April 2024.

Mr. Freda said that the impact of tobacco smuggling extends to farmers, local government units, retailers and consumers, and revenue collection agencies.

The proceeds from the illicit trade also “often finance much larger criminal activities such as corruption, the smuggling of drugs and weapons, human trafficking and terrorism.”

Mr. Freda said that once the bill is signed into law, it will “send a strong message to smugglers and their accomplices of the government’s serious commitment to address the worsening problem of illicit trade in tobacco.”

“Once the law is ready for full implementation by the mandated agencies, the government has an additional potent weapon in its arsenal to wage war against smuggling syndicates.” — Luisa Maria Jacinta C. Jocson

Asia-Pacific economies must build up rice reserves to stabilize prices, ADB says

REUTERS

ASIA-PACIFIC countries must build up their reserves of rice while ensuring there is no market abuse to take advantage of shortages, the Asian Development Bank (ADB) said.

“To address these challenges, governments and stakeholders must adopt a multifaceted approach that addresses both short- and medium-term concerns,” Pilipinas F. Quising, senior economics officer, and Shiela Camingue-Romance, economics officer at the ADB Macroeconomics Research Division, said in a blog.

“Consistently adopting a reactive rather than proactive approach often results in short-term fixes that can worsen long-term problems,” they said.

Rice is a major staple in the Asia-Pacific, where the Philippines is projected to remain the world’s biggest rice importer next year, according to the US Department of Agriculture (USDA).

The commodity accounts for up to 70% of daily caloric intake and a major share of the food price basket across Asia.

Global rice prices have risen 38% between December 2022 and December 2023, the bank said. “Despite a slight decline to an average of $613/metric ton in March, prices remain 29% higher than they were a year ago,” the ADB said.

Continued shocks from the El Niño weather phenomenon have also yet to become apparent in the region, it added.

“The persistence of El Niño until the second quarter, coupled with the possibility of transitioning into La Niña later in the year, poses continued risks to rice production.”

To curb risks to rice supply and prices, the government must strengthen market transparency and monitoring to prevent price manipulation and hoarding, the ADB said. It  must provide targeted subsidies to vulnerable populations.

President Ferdinand R. Marcos, Jr. has yet to sign a bill seeking harsher sanctions against agricultural hoarding, smuggling, and other forms of market abuse.

Asia-Pacific countries must also build up rice reserves to ensure steady supply and dampen volatile prices in the medium term, Ms. Quising and Ms. Camingue-Romance said.

“However, efficient management, transparency, and proper storage and distribution infrastructure are crucial for ensuring effectiveness, preventing corruption and spoilage, and guaranteeing quality and accessibility of the reserved rice,” they added.

Philippine rice inflation eased slightly to 23.9% in April after peaking at 24.4% in March, the Philippine Statistic Authority reported.

Governments should also invest in modern agricultural technology and infrastructure, and push for crop diversification to strengthen resilience against climate shocks, Ms. Quising and Ms. Camingue-Romance said.

Damage to agriculture caused by the El Niño dry spell has topped P9.5 billion, the Philippines’ Department of Agriculture (DA) said last month.

Countries must also share best practices and ensure open trade to better manage rice supply and prices in the region.

The Department of Finance is studying a proposal to cut tariffs on rice imports to 17.5% or 20% from the current 35% rate.

“Countries in Asia and the Pacific can effectively foster stable and sustainable rice markets by promoting international collaboration, sharing knowledge, implementing focused interventions, and using financial assistance and technical expertise from their partners,” the ADB said.

Regular-milled rice was selling for P49.55 a kilo and well-milled rice P51.42, according to DA price monitors. Imported well milled rice was P52.98/kilo. — Beatriz Marie D. Cruz

Alternate sites touted as closure looms for landfill that serves Clark

METRO CLARK WASTE MANAGEMENT FACEBOOK PAGE

THE Bases Conversion and Development Authority (BCDA) said that it will assist local governments and locators whose waste management operations will be affected by the impending closure of a landfill in Tarlac.

In a statement on Monday, the BCDA said that it will help find alternative solutions for waste disposal to ensure continuity of solid waste management services.

The BCDA issued the statement in light of the October expiry of the 25-year contract of Metro Clark Waste Management Corp.’s (MCWMC) for the Kalangitan sanitary landfill.

“The BCDA maintains that a sanitary landfill is no longer consistent with the government’s vision of transforming New Clark City into a premier investment and tourism destination,” it added.

Citing a report from the Environmental Management Bureau, it noted two existing facilities in Pampanga that may be tapped by those affected by the end of MCWMC’s contract.

“These facilities have a combined total capacity of 3,500 metric tons (MT) of domestic waste per day, and a potential to expand further to 6,000 MT,” the BCDA said.

It added that a materials recovery facility is set to open in Porac, Pampanga with a capacity of 5,000 MT per day.

“This brings the total combined capacity to 11,000 MT, which is more than enough to address the solid waste management requirements of Tarlac, Pampanga, and other provinces in and around the region,” the agency said.

“This should allay fears of a looming garbage and health crisis in the region,” it added.

An estimated 4,000 MT of waste is dumped into the Kalangitan facility per day. — Adrian H. Halili

EoPT is here: Updates on CAR application

There is a Latin praise, semper vigilatus, which means to be constantly awake or vigilant.

In the Philippines, transferring ownership, such as real property and shares of stock not traded in the stock exchange, involves several steps to ensure a lawful transfer of title from one party to another and avoid any disputes or complications in the future. There is no harm in being diligent. At best, it saves time and resources. One of the requirements for the transfer of such properties is the application for Certificate Authorizing Registration (CAR). The issuance of electronic CAR (eCAR) certifies that the tax dues related to such property have been paid, and such property may now be transferred.

With the passage of Republic Act No. 11976, otherwise known as the Ease of Paying Taxes (EoPT) Act, the filing of any tax return may now be done electronically on any of the available platforms (e.g., Electronic Filing and Payment System, eBIR Forms Facility) while the payment of tax due thereon can either be made electronically or manually through any Authorized Agent Banks (AABs) or Revenue Collection Officers (RCOs), regardless of where the taxpayer is registered.

Under current policy, the processing and issuance of eCAR pertaining to One-Time Transaction (ONETT) and the payment of taxes related to ONETT must be made with AABs/RCOs under the jurisdiction of the RDO responsible for the processing and issuance of eCAR to facilitate the validation of tax payments prior to the approval of eCAR. In view of the enactment of EoPT, the BIR issued RMC 56-2024, clarifying the concerns about the issuance of eCAR. Regardless of where the tax returns were filed and paid, the venue for the processing and issuance of eCAR will still be at the RDO which has jurisdiction over the ONETT, as follows:

a. Sales of real property – RDO which has jurisdiction over the location of the property subject to sale;

b. Sale of personal property – RDO which has jurisdiction over the residence of the seller;

c. Donation – RDO which has jurisdiction over the residence of the donor (individual) or RDO where the donor is registered (non-individual); and

d. Estate – RDO which has jurisdiction over the issued Taxpayer Number (TIN) of the Estate of the Decedent.

If the decedent has registered business, however, the processing of eCAR must be processed by the RDO where the business is registered since it is where the TIN for the decedent shall likewise be secured pursuant to existing policy. In cases where the decedent has no registered business, the TIN may be secured from the RDO where the administrator or heirs intend to apply for the issuance of eCAR. It can be gleaned from the new RMC that taxpayers should process their application for the issuance of eCAR at the RDO, which has jurisdiction over the ONETT, depending on the type of property to be transferred or conveyed.

Another update under Section 30 of the EoPT Act is the time for filing and payment of Documentary Stamp Tax (DST). DST is imposed on documents, conveyances, deeds, instruments, loan agreements, and papers evidencing the acceptance, assignment, sale or transfer of an obligation, right, or property incident thereto. For clarity, the Court has pointed out that the subject of DST is not limited to the document embodying the enumerated transactions. The DST is an excise tax on the exercise of a right or privilege to transfer obligations, rights, or properties incident thereto. The transfer of properties is subject to DST before an eCAR can be issued. The tax return prescribed under Section 30 of the EoPT must be filed, either electronically or manually, within 10 days, which used to be within five days prior to the enactment of the EoPT, after the close of the month when the taxable document was made, signed, issued, accepted, or transferred, and the tax thereon shall be paid, either electronically or manually, at the same time the return is filed. It is imperative for the taxpayer to file and pay their tax liabilities on time. Accordingly, late payment of DST imposes penalties and interest.

Aside from DST, Capital Gains Tax (CGT) must also be considered by the parties involved in the transfer. CGT is a tax imposed on the gains presumed to have been realized by the seller from the sale, exchange, or other disposition of capital assets located in the Philippines, including pacto de retro sales and other forms of conditional sale. CGT must be filed and paid within 30 days following the sale, exchange, or disposition of the property.

It is observed that some parties agree to antedate their contracts, and they need to keep in mind the purpose and the effect of antedating. RMC No. 64-2024 is issued to clarify the antedating of deeds of sale involving real property. In cases where it is found that the deeds of sale or other transfer documents are antedated, the laws and regulations effective at the time of presentation of the deed of sale apply. Unless the taxpayer proves otherwise, a deed of sale may be considered antedated when the documents are dated before the effectivity of either the capital gains tax law or the regulations imposing the creditable withholding tax on sales or transfers of real property. The document can also be considered antedated when it is dated before the effectivity of the current zonal values as reflected in the latest Revised Schedule of Zonal Values of Real Properties within the jurisdiction of the concerned RDO. In such cases, the taxpayer has the burden of proof to prove otherwise by presenting supporting documents such as cancelled checks, invoices, contracts to sell, or certifications from the Clerk of Court, Executive Judge, or National Archives of the Philippines.

Transferring property can be quite a challenge but the BIR has been proactive in aiding the taxpayers to make the process less of a burden with the implementation of the EoPT and these issuances. Taxpayers may be reminded that a symbiotic relationship with the government will only work when there is cooperation and understanding of their obligations in paying taxes. Certainly, diligence and vigilance breed progress.

Let’s Talk Tax is a weekly newspaper column of P&A Grant Thornton that aims to keep the public informed of various developments in taxation. This article is not intended to be a substitute for competent professional advice.

 

Ira Jennena J. Bero is an associate from the Tax Advisory & Compliance division of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd.

pagrantthornton@ph.gt.com

More information and educational programs needed to get fisherfolks insured

PHILSTAR

The fisherfolks do not see value in insurance due to the lack of information and educational programs from the local government, Fredel B. Mued, leader of Nuvuyuntun Yang mga Tagbanua tung Calauit at Quezon, stated in an interview last Friday. 

“Hindi ganap ang pagkaunawa ng mga mangingisda ang kahalagahan ng insured siya at hindi, dahil wala rin masinsinang ginagawang information and education campaign ang local government,” [The fisherfolks do not see the difference between getting insured and not, because the local government does not have enough information and education campaigns] Mr. Mued said. 

At the 2024 National Coastal and Inland Fisheries Summit last May 31, the Bureau of Fisheries and Aquatic Resources (BFAR) Regional Director (Region IV-A) Sammy A. Malvas added that convincing fisherfolks to be insured is a struggle for the department. 

“Ang pinakamaliit na portfolio is fisheries. We have covered 13M farmers and fishers for the past nine years but we only have 85,000 fishers insured out of millions. Ganon lang siya kaliit,” [The smallest portfolio we have is on fisheries. We have covered 13M farmers and fishers for the past nine years but we only have 85,000 fishers insured out of millions. That’s how small it is] he mentioned. 

Further, he claimed that social capital is also one of the reasons why fishermen choose not to get insured. 

“We know that maraming calamity sa Pilipinas but we still don’t buy insurance right? Kasi ang ating culture for Filipino, at least with that study…is hihingi na lang ako sa neighbors ko na may kaya or puntahan si mayor, or I will call my relative abroad…to help me with the damage,” [The Philippines faces a lot of calamities and yet Filipinos still don’t buy insurance because it is part of our culture – to depend more on our relatives abroad and political figures in case of emergencies] Mr. Malvas stated on the reasons behind uninsured Filipino fishermen.

“We don’t see the value of insurance at least in our society. That’s one major cause at the micro-level and apart from education,” he added.

To aid in the difficulty faced by fishermen, Rocky Sanchez Tirona, the Global Program Lead for Fish Forever at Rare, shared that the organization is conducting seminars and workshops to help educate the fisherfolks about their insurance literacy. 

“What’s been helpful are really insurance literacy, workshops where we actually help them understand what insurance products are, how they work and all that. So I think having the government, local government as the partner for doing things like that is really important,” Ms. Tirona said.Almira Louise S. Martinez

Zelensky meets with Marcos, eyes stronger ties between Kyiv, Manila

PCOO.GOV.PH

By Kyle Aristophere T. Atienza, Reporter

THE PHILIPPINES and Ukraine are boosting their ties as the two US allies deal with threats from Russia’s war machine and China’s growing assertiveness in the South China Sea.

Ukraine will set up an embassy in Manila, President Volodymyr Zelensky said at a meeting with Philippine President Ferdinand R. Marcos, Jr. at the presidential palace in Manila on Monday.

Mr. Zelensky thanked Mr. Marcos for Manila’s participation in a high-level peace summit later this month, describing it as a “very strong signal” toward achieving peace in the war-torn nation.

“I’m happy to hear from you that you participate in our basic steps to peace,” Mr. Zelensky, who was wearing a black shirt and olive fatigues, told Mr. Marcos, speaking in English.

“What [we] really want is for our people to bring peace to our homes,” the Ukrainian leader said.

He asked Mr. Marcos to send Filipino health workers to Ukraine to help boost the mental health of their soldiers.

Mr. Zelensky told reporters later countries including the Philippines should stand in solidarity with Ukraine to prevent invasion in other parts of the world.

“If Ukraine falls down, if Russia occupies us totally, we will see this war in other continents, and it can be in your region,” he said. “If Ukraine stays strong, it will give a warning signal to Putin and other countries not to try, even to think, how to occupy other independent countries.”

In their first face-to-face meeting in Manila, Mr. Zelensky also thanked the Philippine leader for his country’s “clear position” on Russia’s “occupation of our territories.” Mr. Marcos assured him of his continued support.

It was not immediately clear if Mr. Marcos would attend the summit or if he would send an envoy.

“Thank you so much (for) your big word, and clear position… about this Russian occupation of our territories,” he said, adding that Ukraine would open an embassy in Manila this year.

Mr. Marcos said the two nations face issues “common to our two countries.”   

Mr. Zelensky arrived at the presidential palace on Monday after an unscheduled appearance at Asia’s biggest security conference in Singapore at the weekend to drum up support for the two-day peace summit in Switzerland.

The two leaders were present the at the Shangri-la security dialogue in Singapore, where Mr. Marcos called for respect for international law.

Mr. Marcos delivered the keynote address at the security forum, criticizing what he described as illegal, coercive and aggressive actions by “other actors” in the South China Sea — a censure of China, although he didn’t name the country.

He told Mr. Zelensky he was “honored” the Ukrainian leader was visiting Manila.

“It’s a great pleasure to meet, to discuss issues that are common for both countries and hopefully, we find ways for both of us together,” Mr. Marcos said.

Russia, which calls its actions in Ukraine a “special operation,” has not been invited to the June 15-16 summit that will be hosted by the Swiss government. Russia has dismissed the talks as meaningless without its participation.

While in Singapore, Mr. Zelensky told a news briefing that he was not able to meet the Chinese delegation at the conference and was disappointed that Beijing, a Moscow ally, would not attend the summit.

He has urged US President Joseph R. Biden to attend, although Washington has yet to confirm whom it will send.

The Philippines and Ukraine have been on the receiving end of threats to the rules-based international order, said Joshua Bernard B. Espeña, vice president at the International Development and Security Cooperation in Manila.

‘ZELENSKY OF ASIA’
“At this time of readjustment, the Philippines must look at the possible lessons from the war in Ukraine, while exploring tangible support to Kyiv amid the Russo-Sino challenge to the US-led rules-based order,” he said in a Facebook Messenger chat.

Russia invaded Ukraine in February 2022 in an escalation of their war that started in 2014. At least 10,582 civilians have died as of Feb. 22, based on a report from Oxfam.

The US, the Philippines’ oldest treaty ally, has been Ukraine’s most important bulwark against Russian attacks. It has set aside more than $60 billion for Kyiv under an emergency package that Mr. Biden approved in April.

“While Ukraine has the disadvantage that it is not a treaty ally, the Philippines must nevertheless intensify its alliance coordination with the US to ensure collective deterrence under Washington’s security umbrella,” Mr. Espeña said.

“This will ensure the regional power balance to deter war and if needed, to win it.”

“The Philippines is a long-time ally of the US and Ukraine is operating on a similar relationship,” said Hansley A. Juliano, who teaches politics at the Ateneo de Manila University. “Ukrainian support is a bit easier to sell to US interests if only because of Atlantic security issues.”

Bagong Alyansang Makabayan in a statement accused the Marcos government of making the Philippines the “Zelensky of Asia” — a “mere pawn” in what it said is an “inter-imperialist conflict” between the US and China.

“We should by now learn from the experience of Ukraine. We should be wary of being a US pawn and reject all attempts at making the Philippines a US military outpost,” it said.

Former senator and Liberal Party spokesperson Leila M. de Lima described Mr. Zelensky as the “leader of the most courageous and heroic freedom fighters in the world today.”

“The parallelisms between the situation of Ukraine and the Philippines cannot be denied,” she said in a statement.

“Ukraine is actively at the forefront fighting Russian expansionist policies in Europe after its invasion and partial occupation by Russia. The Philippines is also at the forefront of countering Chinese expansionist policies in the Southeast Asian region,” she added.

Ms. De Lima cited Chinese occupation of maritime features within the Philippines’ exclusive economic zone in the South China Sea, namely Mischief Reef and Scarborough Shoal. — with Reuters

China cites ‘dishonorable role’ of US in sea dispute after Marcos censure

PHILIPPINE COAST GUARD FILE PHOTO

BEIJING — The US has played an “extremely dishonorable role” in backing the Philippines and using the South China Sea dispute to provoke relations between China and the region, China’s Foreign Ministry said on Monday.

“It is very clear to the discerning eye who the Philippines is serving in its foreign policy and for whom it is working in its maritime operations,” the agency said in response to recent remarks by Philippine President Ferdinand R. Marcos, Jr.

China is willing to continue to work with members of the Association of Southeast Asian Nations (ASEAN) including the Philippines to manage differences at sea and deepen sea-related cooperation, it said.

Mr. Marcos on Friday delivered the keynote address at a security forum in Singapore, criticizing what he described as illegal, coercive and aggressive actions by “other actors” in the South China Sea — a censure of China, although he didn’t name the country.

Meanwhile, Senator Emmanuel Joel J. Villanueva dismissed a Chinese general’s accusation that the Philippines is ruining regional peace by involving more countries in the sea dispute, saying the claim was not backed by proof.

“I don’t think anyone is paying attention to what they are doing because no one believes in their (China) circus,” he told a news briefing.

“Their narratives are ridiculous, their claims are unfounded, and we still go by our united stand that the West Philippine Sea is ours,” he added, referring to areas of the South China Sea within Manila’s exclusive economic zone.

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

At the Shangri-la Dialogue security summit in Singapore last week, Chinese Major General Xu Hui, commandant of the Chinese military’s International College of Defense Studies, asked Mr. Marcos if the Philippines was risking regional peace by involving other parties.

He said Manila risked ruining the “long-earned, long-lasting peace” within ASEAN.

“There is no such thing as a regional issue any longer, and when we talk about the South China Sea, we have to also remember that the South China Sea is the passageway for half of world trade,” Mr. Marcos responded. “Peace and stability in the South China Sea and freedom of navigation in the South China Sea is a world issue.”

More than $3 trillion worth of trade passes annually through the sea, which China claims almost in its entirety. A United Nations-backed tribunal in 2016 voided its claim for being illegal.

“In the end, the important thing is that we don’t give up sovereignty over those islands and oceans,” Senate President Francis “Chiz” G. Escudero separately told reporters.

“The (conflict can be resolved) through dialogue and should not lead to a war between our country and China and other countries,” he added. — John Victor D. Ordoñez with Reuters

Lawmaker calls on investors to bankroll Philippine microgrids

PEXELS-PIXABAY

A SENATOR on Monday urged local investors to bankroll the construction and development of microgrids in the Philippines to energize remote areas including those in Mindanao, and boost the country’s generation capacity.

“Electrification is usually followed by economic development, and the government in partnership with the private sector should aim to provide power to unserved and underserved areas in Mindanao,” Senator Sherwin T. Gatchalian said in statement.

He added that deals to set up microgrid service providers do not need a congressional franchise to operate.

The lawmaker said Mindanao has the lowest electrification rate among the major grids at 80.25% as of last year. Electric cooperatives in Mindanao, which cover 84% of total households in the region, only have an electrification rate of 78.98%.

In contrast, the electrification rate in Luzon as was 97.54%, while the Visayas was at 92.36%. Overall, the Philippines had an electrification rate of 92.75%.

Mr. Gatchalian noted that the state-run National Power Corp. and Maharlika Consortium recently partnered to provide microgrids in Cebu, Quezon and Palawan provinces.

The contract signed with the Maharlika Consortium covers eight unserved areas in these three provinces, he added.

Senate President Francis “Chiz” G. Escudero last month said the Department of Energy and Energy Regulatory Commission (ERC) should fast-track building new power plants to address power failures nationwide.

Energy Undersecretary Rowena Cristina L. Guevarra told a Senate hearing on May 14 that more than 4,000 megawatts of power are likely to be added to the country’s energy generation capacity by yearend.

She said new power plant operators are ready to come to the country and set up shop this year, but are just falling behind in application requirements.

The Philippines has faced yellow and red alerts since April because of the thinning supply from power grids.

“We are encouraged to see investors taking an interest in the development of microgrids in Luzon and the Visayas,” Mr. Gatchalian said. “We hope to see the same level of interest for the establishment of microgrids in Mindanao.” — John Victor D. Ordoñez