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Make annulments free — Garin

A CONGRESSWOMAN called on the Senate on Wednesday to work to make annulment in the Philippines free should it reject the divorce bill already passed by the House of Representatives.

Referring to annulment as the “compromised” version of the divorce bill, Iloilo Rep. Janette L. Garin said it would only be fair for married Filipinos seeking to break off their union to have it free of charge.

“In case the (divorce) measure won’t pass in the Senate, what we can do is make annulment free instead,” Ms. Garin said in a statement in Filipino. “The charge for annulment shouldn’t be expensive. Life is already difficult that people won’t spend on annulment… Because of the [annulment] fees, they just choose to endure [their dysfunctional union].” 

The Philippines is the only country in the world besides the Vatican City outlawing divorce.

The House of Representatives last week approved House Bill (HB) No. 9349, a measure seeking to reinstitute divorce as another mode for terminating marriage in a 131-109-20 vote.

Its Senate counterpart, Senate Bill No. 2443, meanwhile is pending for second reading since September last year.

The Senate’s version of divorce bill remains uncertain as five senators have said they don’t support the measure, according to an informal survey conducted by Senate President Pro-Tempore Jose “Jinggoy” P. Estrada.

Those reportedly in favor of divorce are Senators Ana Theresia N. Hontiveros-Baraquel, Mary Grace N. Poe-Llamanzares, Maria Imelda “Imee” R. Marcos, Pia Juliana S. Cayetano, and Ferdinand “Robin” C. Padilla.

There is no need to wait for plenary affirmation of the corrected tally of votes on HB No. 9349 as it would not change the outcome of the bill’s approval, Albay Rep. Edcel C. Lagman, Sr. said in a letter made available to reporters on Wednesday.

“Our legal department is studying Cong. Lagman’s letter,” Mr. Velasco told BusinessWorld in a Viber message.

“The purported reason for the delay is that there is need to report for the Plenary’s action the corrected affirmative votes from 126 to 131,” Mr. Lagman stated in a letter to House Secretary General Reginald S. Velasco.

Mr. Velasco issued a correction of the tally Thursday last week, a day after the proposed measure hurdled the House on final reading. The initial vote tallied by House secretariats showed 126 affirmative votes for the bill, 109 against, and 20 who abstained.

The correction was due to “administrative error,” he told the media last week.

“The rectification in the Records of the House will be done when Session resumes this July 2024,” he said in a statement. — Kenneth Christiane L. Basilio

Escudero eyes Czech partnerships

SENATE PRIB

NEW SENATE President Francis “Chiz” G. Escudero and Czech Ambassador to the Philippines Karel Hejc on Tuesday discussed boosting ties in agriculture, energy and defense following President Ferdinand R. Marcos, Jr.’s visit to the Czech Republic in March.

In a statement on Wednesday, the Senate Public Relations and Information Bureau said Mr. Escudero told the envoy that Manila is also seeking more ties in science and technology.

“Some of the agreements reached during President Ferdinand R. Marcos, Jr.’s visit have already taken off,” Mr. Hejc said, citing new tie-ups in agriculture, energy, and defense between both countries. 

The Czech ambassador also expressed concern over the tensions between Manila and Beijing in the South China Sea, saying it could spill over to other countries if they continue to worsen.

Mr. Marcos met with Czech Republic Prime Minister Petr Fiala in the Czech Republic to discuss posting labor ties and establishing a labor consultation mechanism between the Philippine Department of Migrant Workers and the Czech Ministry of Labor and Social Affairs.

“As you know, we rely on our friends from the international community to help us as we strive to give our people a better country and a better future,” Mr. Escudero said. John Victor D. Ordoñez

DoJ inspects largest drug haul

DOJ.GOV.PH

THE DEPARTMENT of Justice (DoJ) started Wednesday its three-day ocular inspection of the largest drug haul in the Philippines in Catanduanes.

The Makati City Regional Trial Court in an Order last January granted the prosecution panel to inspect from May 28 to May 30 and ordered law enforcement officers to destroy the illegal drug laboratory evidence and equipment confiscated.

Authorities from the DoJ, the Philippine Drug Enforcement Agency (PDEA), and the Philippine National Police (PNP) are executing the order at the laboratory the size of two basketball courts, which was uncovered in Virac, Catanduanes in 2016.

Found in the lab were 22.51 kilos of methamphetamine hydrochloride (shabu), 200 ml in liquid form, and 359.75 kilos of Ephedrine. — Chloe Mari A. Hufana

More charity hospital beds pushed

BW FILE PHOTO

PRIVATE hospitals should look to increase their charity bed allocations to at least 30% of their total capacity from the current 10% to give indigent patients access to quality healthcare, a congressman said Wednesday.

“We want to increase the current allocation of private hospitals at 10% bed capacity for indigent patients… to 30%,” Party-list Rep. Wilbert T. Lee said in a statement in Filipino. “This would increase the bed capacity for patients [in need of medical aid].”

A 2007 Department of Health order outlined that all private hospitals should allocate at least 10% of their bed capacity for indigent patients.

Increasing the charity bed capacity would enable more indigent Filipinos to receive quality healthcare from private hospitals at affordable costs, Mr. Lee said.

Hospitals should also publicly state the number of charity wards available for poor patients.

“This is one of the shortfalls,” he said in Filipino. “This is because hospitals often tell [indigent patients] that there are no more available wards for them.”

Indicating the number of available charity beds and wards would help patients to know their healthcare options, allowing them to decide whether to stay or transfer to other hospitals, said Mr. Lee.

Filed in early May, House Resolution No. 1716 seeks to ensure that hospitals publicly declare the number of available wards for indigent patients at their entrances.

“The availability of… charity beds in accredited hospitals are essential information for beneficiaries to make informed decisions about their healthcare options,” the bill stated. “The lack of clear and visible information regarding the availability of PhilHealth wards may lead to confusion and hinder beneficiaries from utilizing their… benefits.” — Kenneth Christiane L. Basilio

SC allows fallen military pilot’s heir to settle housing loan

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THE PHILIPPINE Supreme Court (SC) allowed the sole heir of a fallen Air Force pilot to settle an outstanding housing loan to avoid foreclosure.

The SC Third Division ruled that the brother and only heir of the Philippine Air Force (PAF) pilot, who died in Mindanao in the line of duty, may apply for a restructuring of the soldier’s outstanding housing loan with the Government Service Insurance System (GSIS).

“The socialized guarantee of security is most required by Filipinos who serve in the military and allied forces — they who stand in uniform, daily put their lives on the line and protect our lives and liberties, often at the cost of theirs,” read a portion of the 18-page decision written by Justice Alfredo Benjamin S. Caguioa.

The Court of Appeals (CA) and GSIS Board of Trustees earlier denied the brother of his claims to consolidate the property acquired by his brother in 1979 and settle the remaining balance.

The GSIS was unaware of the pilot’s death in 1980, prompting it to order the foreclosure the property.

“The assurance of dignity of a shelter to come home to is earned, even deserved, by those who all too often have to leave their lives behind and march towards the threat of their early graves at a moment’s notice,” read the decision. — Chloe Mari A. Hufana

Visa-free entry seen driving travel growth in Asia-Pacific

REUTERS

By Justine Irish D. Tabile, Reporter

SHANGHAI — Visa-free entry is driving the growth of inbound travel to the Asia-Pacific (APAC) region, according to Singapore travel booking service Trip.com Group.

At the Airline Global Conference 2024 at the Pudong Shangri-La, Trip.com Chief Operating Officer Schubert Lou said visa-free policies are yielding results within the region.

In particular, he said that visa-free policy announcements, which started in Malaysia last year, are now becoming a trend in the region and are triggering the growth of travel to and from the region.

“More and more countries are getting into that, and Indonesia is the next in the line,” Mr. Lou said, adding that Singapore and Thailand have already joined the trend.

“And that has triggered tremendous growth. One example of that is the China outbound market. What that has created is what we call the ‘just pack your bag and go’ era of China outbound,” he added.

He said that since some countries went visa-free, China outbound travel increased 20% as of May 1, outpacing pre-pandemic levels, while the Southeast Asia outbound market exceeded pre-pandemic levels by 60%.

“What we are seeing is a tremendous momentum of people wanting to go (out)… and convenience matters,” he added.

He said the region was the “engine of growth” for global air passenger demand in the first quarter, partly driven by the visa-free policies.

Demand was also stoked by promotions offered by tourism boards and governments, the recovery in flight capacity, and weak currencies in the destination countries, he added.

Citing the International Air Transport Association (IATA), Mr. Lou said that average international demand growth in the region grew 45% in the first quarter, outpacing average international demand growth of 16%.

However, IATA Head of Project and Innovation Stephan Copart said that a survey last year showed that passengers still cite pre-flight procedures and immigration as pain points when traveling.

“Pre-flight and immigration processes, including visa requirements, are still very big pain points,” Mr. Copart said.

The survey showed that 36% of the respondents were discouraged from traveling due to immigration requirements, while 49% said that they consider the complexity of the process as a main deterrent to traveling.

He said that this is why programs such as the visa waiver on Trip.com have positively impacted demand for spontaneous trips.

“Passengers are really asking for a better way to manage those immigration and visa requirements. And that’s where data becomes a key element,” he added.

He said that passengers are now more inclined to share data to facilitate their trip and speed up the process.

“87% are willing to share immigration information before departure to speed up the arrival process. This has been a constant increase over the past few years. Two out of three prefer online applications ahead of traveling to obtain the visa,” he added.

In the Philippines, inbound travel by tourists from China has yet to recover to pre-pandemic levels. China was the country’s second-largest source of international visitors in 2019. China ranked fifth among source markets for international arrivals last year.

South Korea remained the Philippines’ top source of international visitors last year, accounting for 26.4% of foreign arrivals, or 1.44 million, while tourist arrivals from China made up 4.8% or 263,863.

In the first quarter, China was the third-largest source market for the Philippines, accounting for 130,574 or 6.49% of visitor arrivals.

Multiple red, yellow alerts declared over Luzon grid

PHILSTAR FILE PHOTO

THE National Grid Corp. of the Philippines (NGCP) placed the Luzon grid under red and yellow alerts on Wednesday, while a yellow alert was also raised for the Visayas grid.

The NGCP declared red alerts over Luzon between 1 p.m. and 4 p.m. and 6 p.m. and 10 p.m., according to its advisory.

Yellow alerts were also declared between 12 p.m. and 1 p.m., 4 p.m. and 6 p.m., and 10 p.m. and 12 a.m. (May 30).

During the period, peak demand hit 12,749 MW, against available capacity of 12,950 MW.

A total of 16 power plants have been on forced outage, while six plants are running derated, bringing the capacity unavailable to the grid to 3,177.3 MW.

Yellow alerts are issued when the supply available to the grid falls below a designated safety threshold. If the supply-demand balance deteriorates further, a red alert is declared.

Meanwhile, the NGCP declared yellow alerts over the Visayas grid between 2 p.m. and 4 p.m. and 6 p.m. and 7 p.m.

Available capacity was 2,890 MW while peak demand hit 2,538 MW.

A total of 567.4 MW were unavailable to the grid as 18 power plants have been on forced outage and 10 derated.

“The yellow alert is due to unavailability of Luzon to export to Visayas and high forecast demand,” the NGCP said.

The yellow alert was lifted at 1 p.m. “due to decrease in forecasted demand,” the grid operator said.

In a statement on Wednesday morning, Manila Electric Co. (Meralco) said it did not resort to any manual load dropping or rotational power interruptions the previous day despite the red alert over the Luzon grid.

The power distributor said that its commercial and industrial customers participating in the Interruptible Load Program (ILP) collectively de-loaded around 270 MW, helping avert service disruptions.

“We thank our ILP partners who have been beneficial in ensuring continuity of electricity service particularly when Luzon grid supply is insufficient,” Meralco Spokesperson and Head of Corporate Communications Joe R. Zaldarriaga said.

TYPHOON AGHON
Early Monday, the Department of Energy (DoE) reported that 34 power plants were either on forced outage or operating derated. 

Of the total, nine power plants connected to the grid and 11 power plants that are off-grid were out due to Typhoon Aghon (international name: Ewiniar).

“The typhoon has caused a substantial decrease in available power supply in the grid at a time when the hydro power plants have not yet recovered from their low water levels,” Energy Secretary Raphael P.M. Lotilla said in a briefing.

Tropical Depression Aghon intensified into a typhoon on Sunday, the first storm of the year. The typhoon had been expected to exit the Philippine area of responsibility on Wednesday.

Separately, the operator of the Malampaya gas field touted its reliability and resilience amid the outages at multiple power plants.

“Malampaya will always be ready to provide reliable natural gas. This situation demonstrates the critical role Malampaya plays in the nation’s energy security,” Donnabel Kuizon Cruz, managing director and general manager of Prime Energy Resources Development B.V., said in a statement.

Ms. Cruz said that Prime Energy and its partners in the Malampaya consortium remain committed to supporting the DoE’s “drive to keep the grid stable by ensuring uninterrupted operations and fuel supply to power generators during extreme weather.”

During the red and yellow alerts last month, Prime Energy said Malampaya exceeded its normal capacity to enable maximum power generation from its customers.

Prime Energy, a subsidiary of Prime Infrastructure Capital, Inc., holds a 40% operating stake in the Malampaya consortium.

The Malampaya gas field, the country’s sole commercial natural gas provider powering 20% of Luzon’s demand, is expected to be depleted by 2027.

Meanwhile, Meralco said in a statement that power service in areas affected by Typhoon Aghon has returned to normal following the restoration of all of its circuits and primary lines.

The company said power services were restored at 10 p.m. on Tuesday. The interruptions had affected around 1.7 million customers.

Most of the affected customers are in Quezon province and Laguna, with others in Batangas, Cavite, Metro Manila, Rizal, and Bulacan.

“With almost 100% service back in all affected areas, we are now down to the last mile as we work on restoring power to almost all the remaining households in far-flung areas,” Mr. Zaldarriaga said.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

Farmers seek Senate review of RCEP impact

Farmers are seen in a rice field in Bustos, Bulacan, Oct. 17, 2023. — PHILIPPINE STAR/KJ ROSALES

FARMERS are calling for a review of the Philippines’ performance under the Regional Comprehensive Economic Partnership (RCEP) trade agreement.

“We call on Senate President Francis Escudero to immediately reorganize and convene the RCEP Oversight Committee. We need to know if the government lived up to its promises to the agricultural sector,” Federation of Free Farmers (FFF) National Manager Raul Q. Montemayor said in a statement.

RCEP is a free trade deal involving the Association of Southeast Asian Nations, China, Japan, South Korea, New Zealand, and Australia. It took effect in June 2023.

It allows minimal to zero restrictions in terms of quantities shipped, and seeks to minimize import taxes.

The Department of Trade and Industry has said that it plans to monitor potential import surges on commodity shipments enabled by RCEP.

“A scheduled meeting of the Committee last May 22 was canceled following the change in Senate leadership,” the FFF said.

Additionally, the FFF declared its opposition to further cuts in tariff rates for rice, a move designed to bring down prices.

“(This) contradicts their assurances during the RCEP Senate hearings that these products would not suffer any tariff reduction,” it added.

Earlier, Finance Secretary Ralph G. Recto said that tariff rates on imported rice could be slashed to 17.5% from the current 35%.

This would support the Finance department’s goals to lower rice prices by 20% by September.

Mr. Montemayor said that Congress should also commit to a significant increase in the Department of Agriculture’s (DA) budget.

“A large part of the proposed increase in the DA’s 2025 budget is placed in Tier 2, where it will have to compete with proposals from all other government agencies. How the DA budget is finally configured will show whether the Senators were really serious in their commitments when they approved RCEP,” he added.

The DA is proposing a budget of P513.81 billion for 2025 to support the construction of new irrigation and postharvest facilities. The national rice program will get P294.21 billion of the proposed budget. — Adrian H. Halili

PHL lagging as supply chain diversification accelerates

REUTERS

THE PHILIPPINES is lagging its neighbors in taking in investors seeking to diversify their supply chains, Nomura Global Markets Research said.

“Indonesia and the Philippines have been laggards in terms of benefiting from supply chain diversification, despite being among the fastest growing economies in the region with favorable demographics and strong reform prospects,” it said in a report.

“This likely reflects in part their starting positions: both countries have weak forward and backward linkages to regional supply chains, as discussed above, and smaller manufacturing bases with the share of manufacturing output to total gross domestic product (GDP) declining,” Nomura Global added.

It also cited industries in which the Philippines is unable to maximize supply chain diversification, such as electronics.

“In electronics, which has been a primary sector where supply chain relocations are taking hold in other ASEAN countries, the Philippines has not been able to benefit significantly, despite its electronics exports accounting for nearly 60% of the country’s total exports,” Nomura Global said.

Electronic products account for 58.6% of Philippine manufactured goods and more than half of total exports. Exports were up 0.8% at $3.59 billion in March. 

In the first quarter, electronics exports amounted to $10.47 billion, up 13.43%.

“The sector also remains concentrated in basic operations such as assembly, testing and packaging semiconductors, requiring high import content. The electronics trade surplus, as a result, remained relatively stagnant over the last several years.”

Semiconductor exports rose 15.3% to $8.14 billion in the first quarter.

“In our view, this is symptomatic of a broader set of issues in the manufacturing sector, which is still small as mentioned before and even declining in its share of total output,” Nomura Global said.

“In particular, power rates remain the highest in the region and connectivity is relatively poor after decades of underspending in infrastructure, keeping transport and logistics costs high,” it added.

It noted that while the government has made efforts to attract more investment and implement reforms, this may “take time to reap benefits.”

“Officials have also mentioned a ‘catch-up plan’ to support the semiconductor sector to increase value-add, as well as the mining and mineral processing sector in a bid to replicate Indonesia’s success in nickel processing and create linkages with the EV battery ecosystem,” it said.

“However, uncertainty from the mining fiscal regime, in which legislation aiming to clarify revenue-sharing and taxation is still pending deliberations in Congress. The uncertainty could therefore stall progress in nickel mining,” it added.

The report noted that the Philippines is among the major producers of nickel and has “vast” nickel resources.

“Finally, recent geopolitical concerns from the dispute in the South China Sea could be an impediment to Chinese companies looking to diversify supply chains into the Philippines,” it added. — Luisa Maria Jacinta C. Jocson

Commercial fishing being studied in municipal waters with LGU approval

PHILIPPINE COAST GUARD PHOTO

THE Department of Agriculture (DA) said it is considering allowing commercial fishing vessels to fish as near as 10.1 kilometers offshore, with prior approval from the local government unit (LGU).

“We can perhaps facilitate the entry of commercial fishing vessels in areas where it is scientifically safe,” Agriculture Undersecretary for Policy, Planning and Regulations Asis G. Perez told reporters.

He added that instead of reforming the law “there has to be, coordination, explanation, making sure that everybody understands the benefit of allowing certain types of commercial fishing vessel.”

President Ferdinand R. Marcos, Jr., during his State of the Nation Address last year, sought Congressional support to further amend the Republic Act No. 10654, or the Amended Fisheries Code of the Philippines.

Under the law, commercial fishing vessels are only allowed to operate outside the 15-kilometer zone designated as municipal waters.

Mr. Perez said that the DA is seeking more local government support for commercial vessels entering the 10.1-kilometer zone.

Last year, the DA said that its proposed amendments to the fisheries code will focus on border controls to ensure the safety of imported fish.

It said that the revised law should incorporate science-based analysis and identification of fishing areas, balancing the interests of fisherfolk and the fishing industry. — Adrian H. Halili

Infrastructure project delays seen dampening PHL economic growth

PHILIPPINE STAR/EDD GUMBAN

DELAYS in completing flagship infrastructure projects have outsized potential to pose a drag on economic growth, GlobalSource Partners said.

“With the new projects, and many others still to be completed, the list of flagship projects continues to lengthen; the likelihood of everything being completed becomes uncertain,” GlobalSource country analysts Diwa Guinigundo and Wilhelmina Manalac said in a brief.

“Unless the issue of infrastructure is decisively and quickly addressed, it may instead drag the momentum of growth down.”

In its 16th meeting, the National Economic and Development Authority (NEDA) Board chaired by President Ferdinand R. Marcos, Jr. approved projects worth P66.37 billion, including infrastructure, rail and agriculture works.

While GlobalSource noted the role of these projects in increasing productivity and foreign investment inflow, it noted the government’s delayed implementation of last year’s approved projects.

“In 2023, of the 13 projects aimed at establishing physical connectivity, water resources, digital connectivity and health, NEDA reported as of end-November 2023 that only one was completed in 2023 in the Visayas,” according to the analysts.

The remaining 12 projects are expected to be completed this year, with “multiplier effects” in key issues like movement of goods and services, disaster reduction, and better water resources, public health and digital connectivity, they added.

As of today, 185 flagship infrastructure projects worth P9.14 trillion are in the pipeline, according to NEDA’s online portal.

Meanwhile, GlobalSource also called on the government to ramp up efforts to address “glaring” issues in the education sector.

“With the declining quality of education in the Philippines based on an international assessment by PISA (the Program for International Student Assessment), the country is suffering from the so-called ‘poverty of education,’” they said.

“Arresting it involves greater focus on the substance of education and how students are taught.”

PISA found that Filipino students are effectively five to six years behind in learning competencies, the Department of Education said last year. — Beatriz Marie D. Cruz

Imported sugar being withdrawn more from reserves, Sugar Council claims

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SUGAR producers said on Tuesday that imported refined sugar has been given priority over domestic sugar in terms of inventory being released onto the market from reserves.

In a statement, the Sugar Council said it received reports of a 16% increase in imported refined sugar withdrawals, while domestically refined sugar releases dropped 7%.

“Since locally refined sugar comes from the local farmers’ raw sugar, demand for raw sugar also dropped over 4%, much to the disadvantage of farmers,” it said.

The group also declared its opposition to the Sugar Regulatory Administration’s (SRA) plan to allow sugar imports during the milling offseason.

The national sugar inventory rose 26% for raw sugar to 531,838 metric tons (MT), with refined sugar up 35% at 572,398 MT.

The council said the reserves include 135,000 MT or 2.7 million bags of imported refined sugar purchased last year, which have not yet been withdrawn.

“These numbers suggest that imported refined sugar is being prioritized over locally refined sugar,” it said.

It added that there should be a calibrated and transparent import program to ensure that domestic sugar is prioritized.

“This validates the call for active consultation with stakeholders, especially sugar farmers groups, to be conducted before any sugar importation order is issued,” it added.

On Tuesday, the Philippine Sugar Millers’ Association, Inc. said that there is no need for sugar imports due to higher domestic production.

Raw sugar production was 1.92 million MT as of May 12, exceeding the 1.799 million MT from a year earlier. Refined sugar output rose to 687,823 MT from 624,389 MT in the previous milling season.

The SRA has set inventories falling to the equivalent of three months’ demand as the trigger point for allowing sugar imports during the milling offseason.

The council is composed of the Confederation of Sugar Producers Associations, Inc., the National Federation of Sugarcane Planters, Inc., and the Panay Federation of Sugarcane Farmers, Inc. — Adrian H. Halili