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PSEi falls to 6,300 level again before CPI data

BW FILE PHOTO

THE MAIN INDEX dropped to the 6,300 level again on Tuesday as investors preferred to stay on the sidelines before the release of May Philippine inflation data on Wednesday. 

The benchmark Philippine Stock Exchange index (PSEi) slumped by 1.3% or 84.32 points to end at 6,386.42 on Tuesday, while the broader all shares index dropped by 0.92% or 32.01 points to finish at 3,439.04.

“The local bourse plunged by 84.32 points (1.3%) to close at 6,386.42. This decline reflects negative investor sentiment due to concerns about rising inflation and a weakening peso,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.

“Inflation for May, to be released [on Wednesday], is expected to exceed the government’s target range of 2% to 4%. For Philstocks, we expect inflation to settle at 4.1%,” Ms. Alviar added.

A BusinessWorld poll of 16 analysts yielded a median estimate of 4% for the May consumer price index (CPI), within the Bangko Sentral ng Pilipinas’ (BSP) 3.7-4.5% forecast for the month.

If realized, May inflation would be faster than 3.8% in April but slower than the 6.1% print a year earlier. This would also mark the sixth straight month that the CPI was within the central bank’s 2-4% annual target.

“Philippine shares concluded trading Tuesday in the red following BSP Governor Eli M. Remolona, Jr.’s statement about the potential for cutting the benchmark rate ahead of the Federal Reserve,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

Mr. Remolona on Tuesday reiterated that the benchmark rate could be cut ahead of the US Federal Reserve, keeping pressure on the peso against the dollar amid expectations US rates will stay higher for longer, Reuters reported.

The central bank chief said the benchmark policy rate — currently sitting at a 17-year high of 6.5% — could be cut before the Fed starts its easing cycle, repeating previous comments as policy makers gain more confidence about reining in inflation pressure.

Mr. Remolona said the BSP is already less hawkish than before as inflation could settle within its 2-4% comfort range sometime this year after staying above the top end of that target for two consecutive years.

All sectoral indices closed lower. Holding firms dropped by 2.49% or 142.48 points to 5,561.56; mining and oil went down by 1.29% or 120.90 points to 9,215.60; property declined by 1.23% or 30.29 points to 2,421.90; industrials retreated by 0.95% or 87.43 points to 9,032.47; services inched down by 0.64% or 12.68 points to 1,942.10; and financials lost 0.28% or 5.69 points to end at 1,980.54.

Value turnover dropped to P6.01 billion on Tuesday with 500.66 million shares changing hands from the P6.78 billion with 939.03 million issues traded on Monday.

Decliners beat advancers, 128 versus 80, while 32 issues closed unchanged.

Net foreign selling rose to P1.32 billion on Tuesday from P571.39 million on Monday. — RMDO with Reuters

Philippines asks Japan, US coast guards to boost presence in South China Sea

PHILSTAR FILE PHOTO

By Kyle Aristophere T. Atienza, Reporter

THE PHILIPPINE Coast Guard (PCG) said on Tuesday that it has asked its Japanese and American counterparts to boost their presence in the South China Sea amid what it deemed as a “forthcoming threat” from China in one of the world’s most important waterways.

Speaking at a conference with its Japanese and American counterparts on the sidelines of the Shangri-la security dialogue in Singapore, the PCG said it will coordinate with other agencies as it seeks to boost ship deployment in the South China Sea.

“The PCG intends to send ships further out, in coordination with other agencies, to better secure our Filipino fishermen,” its Commandant Ronnie Gil L. Gavan was quoted as saying in a press release on Monday.

Manila’s tensions with Beijing further escalated recently after China adopted a detention policy against so-called trespassers in disputed maritime areas which it claims. This is on top of more aggressive actions by Chinese agents preventing resupply missions for Filipino troops stationed in Second Thomas Shoal.

The PCG said Mr. Gavan had asked the Japanese Coast Guard and US Coast Guard to develop “new ways” to address the “forthcoming threat in the high seas,” citing China’s new policy allowing its coast guard to detain foreigners it suspects of violating its exit-entry rules “in the waters under the jurisdiction of China” for up to 30 days — and in some cases for as long as 60 days — without a trial.

“I’d like to propose greater deployment in the high seas,” Mr. Gavan said. “We will do our part, but we also need you to be there to maintain rules-based order the way Coast Guards should play their role.”

“We know our limits, but we know we can do something to give time for our political leaders to do their part to keep the West Philippine Sea as free as it should be,” he added.

The Japanese Coast Guard proposed the conduct of more personnel exchanges to create a robust network of coast guards to keep a rules-based order, according to the PCG.

It said the US Coast Guard (USCG) will deploy its North Pacific Coast Guard to support the PCG in upholding the country’s sovereign rights and territorial integrity in the West Philippine Sea.

The USCG cited the need to “conduct further training, develop dynamic tactics and procedures, and prepare ships equipped to counter evolving threats in the high seas,” the PCG said.

“The PCG, JCG, and USCG agreed to pursue capacity-building initiatives to strengthen their people-to-people relationship, better synchronize Coast Guard doctrines on the ground, and develop trust with each other,” it added.

On Tuesday, the Philippine military released videos showing Chinese agents seizing supplies it airdropped on May 19 for Filipino troops stationed on BRP Sierra Madre, a Navy vessel that Manila grounded in Second Thomas Shoal in 1999 following China’s seizure of Mischief Reef.

Armed Forces of the Philippines (AFP) Chief of Staff Romeo Brawner, Jr. said at a news conference that the Chinese Coast Guard “came very, very close” to BRP Sierra Madre just to snatch the supplies, which posed a “danger or a threat.”

Despite China’s obstructions on May 19, the mission to resupply the Philippine outpost was “largely successful,” AFP spokesperson Francel Margareth Padilla said. “Our brave soldiers managed to secure the majority of the items that were delivered,” she said.

Second Thomas Shoal, which is well within Manila’s exclusive economic zone (EEZ), was among the South China Sea features most frequented by Chinese Coast Guard vessels last year, according to Asia Maritime Transparency Initiative.

Meanwhile, the AFP denied in a statement claims by the Chinese state media that Filipino soldiers aboard BRP Sierra Madre “pointed guns” at China Coast Guard personnel during the resupply mission.

“Our personnel are governed by the Rules of Engagement and clearly acted with the highest level of professionalism, restraint, and discipline in the performance of their mission to safeguard our sovereignty and sovereign rights,” the AFP said in a statement.

It said foreign vessels that “venture dangerously close to our military vessel” and violate safe distance protocols “necessitate heightened vigilance and alertness from our personnel.”

“Hence, our troops were seen on guard because of the Chinese Coast Guard’s provocative presence near BRP Sierra Madre,” it added.

Kanlaon eruption cancels at least 66 domestic flights

THE NUMBER of distressed families has peaked at the Disaster Response Command Center of the Social Welfare department head office in Quezon City, following the eruption of Mount Kanlaon on Negros Island on Monday night. — PHILIPPINE STAR/MIGUEL DE GUZMAN

By Ashley Erika O. Jose, Reporter

AT LEAST 66 domestic flights have been canceled since Mount Kanlaon erupted early Monday night in the central Philippine island of Negros, the Civil Aviation Authority of the Philippines (CAAP) said Tuesday.

“All flights going to Bacolod were canceled for the safety of the public. We have already released a notice to inform all stakeholders to make them aware of the dangers of flying in Bacolod. All major carriers have canceled their flights,” CAAP Deputy Director General for Operations Edgardo G. Diaz said in a media briefing.

In a statement, AirAsia Philippines said it has canceled at least six flights, while eight flights are delayed and another two have been rerouted. These include its Manila-Cebu-Manila, Manila-Bacolod-Manila, and Manila-Iloilo-Manila flights.

“The safety of our flight crew and guests is always a top priority. To minimize any inconvenience brought by the cancellations, AirAsia is offering standard recovery options to ensure travel plans of our guests may push through once the situation improves,” Steve F. Dailisan, head for communications and public affairs at AirAsia Philippines, said in a media release.

Data from the Philippine Institute of Volcanology and Seismology (Phivolcs) showed that due to the moderate level of volcanic unrest, Mt. Kanlaon was placed under Alert Level 2.

Flag carrier Philippine Airlines canceled some of its flights particularly those bound to and from Bacolod, Cebu, Iloilo.

Cebu Pacific’s website showed that it has also canceled several of its flights between Manila and Iloilo, Manila and Bacolod, General Santos and Iloilo, Cebu and Iloilo, Cagayan and Iloilo.

Meanwhile, the Department of Migrant Workers (DMW) and the Overseas Workers Welfare Administration (OWWA) said they were extending immediate assistance to overseas Filipino workers (OFWs) whose flights were affected by the cancellations.

“The OWWA Regional Welfare Office of Region 7 will send a request for the provision of dusk masks and face masks, as well as safe drinking water. These are the urgent needs of the affected families in the area, and we want to ensure that we have supplies available for any overseas Filipino worker (OFW) families that may be affected,” the OWWA Region 7 told BusinessWorld in a Messenger chat.

It added that based on their Membership Processing Center as of Jan. 11, 2024, there are 1,282 land-based and 163 sea-based OFWs in Kanlaon City.

There are no reported affected families yet in the city based on OWWA’s coordination with the local government. — with a report from Chloe Mari A. Hufana

Jeepney strike set for next week; LTFRB mulls grace period

PHILIPPINE STAR/EDD GUMBAN

By Chloe Mari A. Hufana

JEEPNEY drivers and operators group Manibela will stage a strike on June 10-12 to protest the apprehension of unconsolidated jeepneys despite initiatives in Congress for a one-year moratorium on the transport crackdown.

In a virtual press briefing on Tuesday, Manibela deplored the government’s impounding of unconsolidated public utility vehicles (PUVs) and imposition of fines.

“It was clear in our congressional hearing that it was agreed upon that no one will be apprehended and there is no violation for being unconsolidated to warrant impounding our vehicles,” Manibela president Mario “Mar” S. Valbuena said in Filipino.

Mr. Valbuena was citing a House of Representatives hearing in which congressmen encouraged the Department of Transportation (DoTr) to suspend the crackdown and give unconsolidated PUV operators a one-year grace period to modernize their vehicles accordingly.

In a separate briefing on Tuesday, the Land Transportation Franchising and Regulatory Board (LTFRB) confirmed it will be studying the possibility of giving unconsolidated PUVs the one-year extension to comply with the Public Utility Vehicle Modernization Program (PUVMP).

“Our board will revisit how to relieve those who did not participate in the consolidation,” LTFRB Board Member Mercy Jane Paras-Leynes said, noting that they scheduled a meeting on the matter next week.

The DoTr and the LTFRB have warranted the following penalties on unconsolidated PUVs still plying their routes: a fine of P10,000; a 30-day impounding; and a one-year suspension of the driver.

The driver or operator may also need to pay P50,000 to retrieve their commuter jeepney units from impounding.

LTFRB Chairman Teofilo E. Guadiz III said on May 15 about 1,900 PUVs did not join the program. However, transport group PISTON said about 20,000 units in the capital region alone did not consolidate.

In a Viber message to BusinessWorld transport advocate and AltMobility PH Director Ira F. Cruz said: “Instead of focusing efforts on the apprehension of colorum and non-consolidated units, the government should be laying down plans to make sure that [the] needs of all commuters are met and figure out how to lower car dependence.”

Mr. Cruz urged the government to organize a multisectoral discussion to address all the issues of the modernization program with representatives from concerned sectors.

Ms. Paras-Leynes said that 80% of PUV drivers and operators are already consolidated as earlier pointed out by DoTr Secretary Jaime J. Bautista.

However, drivers and operators continue to bewail the costs of modernization, particularly the price of a modern unit that goes for as much as P2.8 million.

The modernization program started in 2017, aiming to replace traditional Filipino jeepneys with units that have at least a Euro-4-compliant engine to lessen pollution.

Under the modernization program, they are also required to join cooperatives.

As a result, transport groups sought a temporary restraining order before the Supreme Court to halt the modernization program. — with a report from Ashley Erika O. Jose

Harsh punishment sought for faking birth records

PHILIPPINE STAR/ MIGUEL DE GUZMAN

By John Victor D. Ordoñez, Reporter

SENATOR Jose “Jinggoy” P. Estrada filed on Tuesday a bill that seeks to impose a fine of as much as P250,000 and imprisonment of up to 12 years on individuals who register their birth certificates with fake information.

The harsh penalties contained in Senate Bill No. 2703 are partly aimed at deterring foreigners from securing fake government documents and identities.

Under the proposed measure, public officials who are involved in issuing birth certificates with fake information would be dismissed from service and permanently barred from holding public office.

“Through this measure, the procedure for the delayed registration of birth will be more effective and will ensure that the birth certificates are genuine and truthful representations of the identity of the person,” Mr. Estrada stated in the bill’s explanatory note.

Citing 2020 data from the local statistics agency, he said about 3.7 million Filipinos did not have birth certificates due to high costs, lack of time, and unawareness of the need to register birth.

Under the bill, individuals with delayed registrations, or registered 30 days after a person’s birth, would have to register the birth as delayed at a local civil registry office for review.

“There are a lot of syndicates now,” the senator, speaking in Filipino, told a media forum at the Senate. “There might be syndicates in the DFA (Department of Foreign Affairs), those who issue passports to Chinese nationals that aren’t really Filipino, and in the civil registry with a lot of fake (documents) being issued.”

Lawmaker bats for WFH allowance

REUTERS

By Kenneth Christiane L. Basilio

FILIPINOS working from home or under remote set-ups should have at least a P1,000 allowance to “cushion the impact of additional expenses on utilities,” according to a bill pushed by a congressman.

Filed by Cavite Rep. Aniela Bianca B. Tolentino, House Bill (HB) No. 10327 also seeks to amend the Telecommuting Act of 2019 to permit government employees to engage in remote work arrangements.

At present, the work-from-home (WFH) arrangement is only allowed in the private sector.

“Working from home tends to increase utilities consumption, particularly electricity. Some workers even purchase their own equipment for working at home” read part of the bill’s explanatory note.

“These additional expenses are out of the employee’s own pockets and for the benefit of the employer’s business,” it added.

Alternative work arrangements have become prevalent as the coronavirus pandemic has forced companies to permit their employees to work from to ensure business continuity.

In May, Meralco raised the overall rate to P11.4139 per kilowatt-hour (kWh) from P10.9518 per kWh in April due to the higher generation charge.

Electricity rates are expected to go up in June due to increases in ancillary service costs and tightening power supply, according to Meralco.

Companies could claim the WFH allowances as tax deductions.

Businesses violating the proposed measure would be punished with a fine not exceeding P100,000.

PHL may accept Afghan nationals

THE DEPARTMENT of Justice (DoJ) said on Tuesday that talks are ongoing with the United States Embassy in Manila for the Philippine government to accept Afghan nationals while they are still processing their US visas.

“Our government is open to exploring that vehicle by which the Afghan nationals who are at risk in Afghanistan would be processed here for the purpose of eventual immigration to the United States,” DoJ Undersecretary Raul T. Vasquez told a press briefing.

“Because the discussion is ongoing, you can say that we are open to the idea of the Philippines being a processing area,” he added, noting that Afghan nationals are given “special immigrant visas” and are not seeking refugee status.

Both parties are ironing out national safety considerations by imposing safety mechanisms.

During President Ferdinand R. Marcos, Jr.’s state visit to Washington in May 2023, American President Joseph R. Biden brought up the idea of sheltering Afghan nationals for a certain time while awaiting their visas.

The DoJ on Tuesday celebrated the 1st National Refugee Day in its Justice Hall in Manila, affirming the Philippines’ stance in ensuring the welfare of refugees under Presidential Proclamation No. 265 series of 2023 declaring June 20 every year as the “National Refugee Day.”

“Through the very first commemoration of National Refugee Day, the Philippines sends a strong message of our commitment to our long humanitarian legacy of opening our doors and providing support to people who have crossed international borders to seek protection,” Secretary of Justice Jesus Crispin C. Remulla said in a statement.

The Philippines is home to about a thousand refugees, many of which are from the Middle East and African countries. — Chloe Mari A. Hufana

Senator’s wife named UAE envoy

PRESIDENT Ferdinand R. Marcos, Jr. has appointed the wife of Senate Minority Leader Aquilino “Koko” Pimentel, III as a special trade and investment envoy to the United Arab Emirates (UAE).

Ma. Anna Kathryna “Kat” Yu Pimentel took oath before Mr. Marcos on Tuesday and was accompanied by her husband, who had opposed some of the administration’s pet bills including the Maharlika Investment Fund and the proposed Charter change.

Ms. Pimentel has participated in various international fora hosted by the UAE, including the World Government Summit last February and the Dubai Airshow and Dubai Watch Week in 2023, among others.

She also participated in the United Nations Climate Change Conference or COP 28 last December.

The UAE was the country’s 6th largest source of remittances, 17th major trading partner, the 21st largest export market, and the 16th largest source of imports. — Kyle Aristophere T. Atienza

DSWD uses AI vs cyberattacks

REUTERS

THE DEPARTMENT of Social Welfare and Development (DSWD) said on Tuesday that it receives 25,000 cyber incidents monthly and employs artificial intelligence (AI) to deter most of them.

“We get 25,000 incidents every month. A huge percentage of this incident gets priority that gets validated by AI, leaving only a few, needs to be validated manually,” DWSD Assistant Secretary and Chief Information Officer Julius B. Gorospe said during a Palo Alto Networks media briefing. Only an average of 20% of said cyber incidents are validated by a human, he said.

Mr. Gorospe said cyber incidents refer to attempts to hack the system or a software running that tries to steal passwords but excludes social media account hacking.

Mr. Gorospe said this is in response to the rising number of incidents when there’s only a “handful” of cyber team members in the DSWD department.

Last year, the DSWD National Capital Region office’s account was hacked and posted a fake announcement of the distribution of cash aid under the DSWD’s Sustainable Livelihood Program (SLP). This led to parents and students flocking to the DSWD NCR office. “Unfortunately, Facebook is outside of our system. Dealing with social media companies Facebook, and Twitter, sounds difficult because they have their own policies to take down a post for example,” he said when asked about the mentioned attacks.

In response, DSWD has its own security operations center (SOC) which directs to DSWD Secretary Rex T. Gatchalian.

“We are building a team at a SOC team in-house. We don’t want to outsource it, we would like to develop our own talents eventually,” said Mr. Gorospe, also noting that the department has technology partners such as Palo Alton Networks that supply educational assistance to address the skills and cybersecurity personnel gap.

According to Palo Alto Networks Regional Vice President for ASEAN Steven Scheurmann, AI is important to win the fight against cybercriminals.

“We want to secure AI by design, we’re embedding precision AI in our portfolio. We want to simplify that cybersecurity is important in a country like the Philippines,” Mr. Scheurmann added.

He is referring to Palo Alto Networks’ Precision AI™, which incorporates machine learning (ML) and deep learning (DL) with generative AI (GenAI) for real-time applications, to defend against AI-supported threat tactics.

According to the cybersecurity firm, it partners with DSWD using its Incident Response (IR) services, and AI-driven solutions like Cortex XSIAM and Cortex XDR to combat threats. — Aubrey Rose A. Inosante

Visa-free travel to Taiwan till ’25

UNSPLASH

TAIWAN’S Ministry for Foreign Affairs on Tuesday announced that it is extending its visa-free entry program for Filipinos to July 31, 2025 starting August this year.

In a statement, the ministry’s Bureau of Consular Affairs said the agency decided on the extension, which also gave visa-free entry to citizens from Thailand and Brunei, during an April 12 meeting with other government agencies.

Taiwan launched the visa-free entry program in September 2022 and was originally set to expire by July 31, 2023 but had been extended to the same date this year.

The ministry said the move was to promote the government’s New Southbound Policy, which aims to boost Taiwan’s relations with its Southeast Asian neighbors.

Those with diplomatic or service passports, and Filipino vessel or aircraft crew will not be eligible for the visa-free travel program.

“MOFA (Ministry of Foreign Affairs) will continue to review and fine-tune visa policies, with a view to strengthening bilateral exchanges and attracting more visitors while ensuring border and public security,” Taiwan’s Bureau of Consular Affairs said. — John Victor D. Ordoñez

BIR gets tough on vape stamps

PHILIPPINE STAR/EDD GUMBAN

THE BUREAU of Internal Revenue (BIR) said that it will seize and file criminal cases against vape manufacturers and sellers that do not adhere to the use of mandatory revenue stamps.

“The BIR will now presume that any vape product not bearing BIR stamps to have not paid the required excise tax,” it said in a statement on Tuesday. “Violators of the mandatory internal revenue stamps on vape products will result into the seizure of the illicit vape products and criminal cases against the businessmen and possessors of those illicit vape products.”

Earlier, the BIR said that all vape products being sold in the country must bear the stamps starting June 1. 

“Internal revenue stamps on vape products are now mandatory. Violators will not only suffer the seizure of their illicit vape products, the businessmen and possessors of these illicit vape products will also face criminal cases,” BIR Commissioner Romeo D. Lumagui, Jr. said. — Luisa Maria Jacinta C. Jocson

IP communities get El Niño aid

KORONADAL CITY — Up to 15,750 ethnic Blaans and non-indigenous settlers in Tampakan town, South Cotabato benefitted from the joint El Niño relief missions in the past three weeks of tribal leaders, local executives and a private mining company.

Thousands of Blaan farmers in the mineral-rich Tampakan town lost their upland rice, corn and other short-term crops due to the prolonged drought because of the El Niño weather pattern.

Tribal leader Nora D. Sukal told local radio on Tuesday that rice, food packs and other relief supplies have been distributed to Blaans in secluded areas of Tampakan since May by local executives and the Sagittarius Mines Incorporated. 

Domingo N. Collado, an appointed Indigenous People’s (IP) Mandatory Representative to the municipal council of Tampakan, separately told reporters on Tuesday that officials of their local government helped facilitate the SMI’s outreach activities, also supported by the administration of South Cotabato Gov. Reynaldo S. Tamayo, Jr.

“Blaan farmers and their non-Blaan neighbors had no income in the past four months from farming due to the drought,” Mr. Collado said.

About five more tons of relief supplies were also distributed to drought-stricken communities in other towns of South Cotabato last week, he said.

Two local officials, Vice Mayor Bai Naila M. Malinta of Columbio, Sultan Kudarat and Mayor Maria Theresa D. Constantino of Malungon, Sarangani, confirmed on Tuesday that the SMI, contracted by Malacañang to operate starting next year the Tampakan Copper-Gold Project in Blaan ancestral lands in Tampakan, already spent in the past six years more than P2 billion for its corporate social responsibility projects in tribal enclaves in their municipalities, in Tampakan and Kiblawan, Davao del Sur. — John Felix M. Unson

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