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Rice inventory drops 11% in early April as corn stocks rise

THE national rice inventory declined 10.9% year on year in early April, while corn stocks rose 21.2%, the Philippine Statistics Authority (PSA) said.

In a report, the PSA said the rice inventory was 1.64 million metric tons (MT), with a sharp fall noted in the quantity of rice held by the National Food Authority (NFA).

“Of this month’s total rice stocks, 57.1% were by households, 40.3% were from the commercial sector, and 2.5% were from the NFA depositories,” it said.

Rice held by the NFA fell 57.1% year on year to 641.56 thousand MT, while household rice stocks fell 7.6% to 938 thousand MT.

Commercial warehouses held 662 thousand MT for the period, dropping 9.1% from a year earlier.

Corn stocks in early April rose to 602.14 thousand MT from 496.74 thousand MT a year earlier.

It added that 84.8% of the total consisted of corn held by the commercial sector, while the remaining 15.2% were held by households. — Adrian H. Halili

March trade deficit narrows to $3.18 billion

PHILIPPINE STAR/EDD GUMBAN

THE March trade deficit was $3.18 billion, the smallest in nearly three years, as both exports and imports declined, according to preliminary data from the Philippine Statistics Authority.

The trade balance in March — or the difference between the value of exports and imports — was smaller than the $3.66 billion posted in February and the $5.02 billion from a year earlier.

The March reading was the smallest since the $3.18-billion deficit in May 2021.

The balance of trade has returned a deficit for nearly nine years, or since the $64.95-million surplus reported in May 2015.

Outbound goods shipments in March amounted to $6.13 billion, down by 7.3% from a year earlier.

This ended a two-month run of export growth and was the weakest performance since the 13% contraction in November.

Imports contracted by a fifth to $9.31 billion in March, the sharpest decline since the 20.8% drop posted in July 2020.

In the first quarter, the trade deficit narrowed 22.2% year on year to $11.24 billion.

During the period, exports rose 4.8% to $17.98 billion, while imports fell 7.6% to $29.22 billion.

The Development Budget Coordination Committee projects 3% and 4% growth in exports and imports, respectively, for this year.

Philippine Exporters Confederation, Inc. President Sergio R. Ortiz-Luis, Jr. said by phone that the narrower trade deficit reflected the flow of raw materials.

“Raw materials imports tapered towards the first quarter of the year compared to imports in the last quarter last year where they had to increase because of production targets,” Mr. Ortiz-Luis said.

Accounting for the bulk of exports were manufactured goods, which fell 4.6% to $4.97 billion in March.

Electronic products, which account for 58.6% of manufactured goods and more than half of total exports, rose 0.8% to $3.59 billion in March. Almost half of the total consisted of electronic products, where exports fell 0.2% to $2.80 billion.

Exports of mineral products, accounting for 9.3% of total exports, contracted 26.4% to $567.35 million in March.

Meanwhile, imports of raw materials and intermediate goods declined 25.2% to $3.18 billion. These accounted for a 34.2% share of the total.

Imports of capital goods declined 14.8% to $2.81 billion while imports of consumer goods fell $1.83 billion, 19.1% lower than last year.

Import of mineral fuels, lubricants, and related materials contracted by 18.1% to $1.46 billion in March.

Danilo C. Lachica, president of the Semiconductor and Electronics Industries in the Philippines Foundation, Inc., said in an e-mail that the contraction in imports and exports was mainly due to inventory correction and the impact of global geopolitics.

He expects growth in electronics exports to be flat in 2024 with “exports higher than imports (in the coming months).”

The US was the top destination of Philippine goods for March, accounting for 15.7% or $961.94 million. It was followed by Hong Kong, which took 14.4% or $880.88 million, and Japan with 12.9% or $790.02 million.

Meanwhile, China was the main source of imported products, accounting for 24.4% or $2.27 billion of the total import bill.

Despite the contraction in imports and exports for March, Mr. Ortiz-Luis expects the Philippines to hit its trade targets for the year.

“The trade balance will improve, or it will more or less be the same unless there are surprises from the outside,” Mr. Ortiz-Luis said. — Andrea C. Abestano

Request for reinvestigation revisited

Taxation is one of the government’s great powers. Collecting taxes is essential for government to perform its functions and should not be hindered unnecessarily. To balance this power, the taxpayer is accorded the right to due process of the law, or the right to be heard.

For tax investigations in the Philippines, the taxpayer is accorded due process at every stage of a Bureau of Internal Revenue (BIR) audit. Beginning from the issuance of the Notice of Discrepancy all the way through to the issuance of the Preliminary Assessment Notice and Final Assessment Notice/Formal Letter of Demand (FAN/FLD), a taxpayer is granted an opportunity to explain its position and refute the findings presented. In case the taxpayer has exhausted all administrative remedies available and no agreement has been reached with the BIR, the taxpayer can still resort to judicial remedies.

But like any right, the right to due process must be exercised in accordance with the law, implementing rules and regulations, and jurisprudence.

On Jan. 29, the Court of Tax Appeals (CTA) promulgated its decision in CTA Case 10039, in which it declared as valid the BIR’s denial of a taxpayer’s request for reinvestigation. In the case in question, the BIR issued a FAN/FLD to the taxpayer, which the latter protested with a request for reinvestigation within the prescribed period. However, the BIR denied the request, contending that the taxpayer did not file a valid protest, among others. The taxpayer argued that the denial was premature and a violation of due process. Thus, a petition for review was filed with the court to appeal the denial. The CTA ruled that the taxpayer’s request for reinvestigation did not meet the requisites of a valid protest letter. Moreover, the denial of the request for reinvestigation could not be considered the BIR’s final decision on the disputed assessment, which would put it under the jurisdiction of the CTA.

Citing the Supreme Court, the CTA ruled that if a taxpayer’s response to the FAN/FLD does not meet all the requirements of a valid protest, then there is no administrative protest to speak of.

The CTA reiterated that the protest letter filed must be in such form and manner as prescribed by the implementing rules and regulations. Specifically, a valid protest letter must state all of the following elements: (a) the nature of the protest; i.e., reconsideration or, reinvestigation specifying the newly discovered or any additional evidence which the taxpayer intends to present; (b) the date of the assessment notice; and (c) the applicable laws, rules and regulations, or jurisprudence on which the taxpayer’s protest is based. Lacking any of these would result in a protest which is void and without force and effect.

In the case at hand, the court held that the taxpayer’s protest letter was void as it only stated the nature of the protest (i.e., request for reinvestigation) and nothing more.

The tax court likewise held that since the taxpayer’s response was void, the BIR’s denial of its request for reinvestigation cannot be considered the BIR’s final decision on a disputed assessment. As there is no decision on disputed assessment to assail, the CTA cannot acquire jurisdiction over the case. Thus, the petition was considered to be prematurely filed and dismissed.

Under the implementing rules and regulations, if the taxpayer’s request for reinvestigation cannot be considered a valid protest, this can be equated to a failure to file a valid protest against the FAN/FLD. Thus, the assessment becomes final, executory and demandable. That said, without a valid protest, the administrative and judicial appeals with the Commissioner and CTA, respectively, are not available to the taxpayer.

The pronouncements of the CTA in this case emphasize the significance of a valid protest. It is worth noting that rights accorded to taxpayers must be exercised with due consideration of the laws which form the boundaries for such use. Otherwise, it cannot be given the expected weight it normally carries to balance the scales against the state’s power to tax.  Such as in this case, without a valid protest, it cannot be said that the taxpayer’s right was violated which entitles him to seek remedy with the CTA. More critically, without a valid protest, the BIR’s assessment would become final and executory under our tax law.

As we expect the State to impose its power to collect taxes with due regard to the taxpayer’s right, the taxpayer is likewise expected to not sleep on his right. Such a right must be exercised exhaustively or else it will be lost. The taxpayer cannot later turn to the courts for remedy on a right which he has failed to avail of.

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

 

Elizabeth K. Adaoag-Belarmino is a manager at the Tax Services department of Isla Lipana & Co., the Philippine member firm of the PricewaterhouseCoopers global network.

elizabeth.k.adaoag@pwc.com

Shares climb on bargain hunting, economic data

BW FILE PHOTO

PHILIPPINE STOCKS ended in positive territory on Wednesday as investors hunted for bargains amid higher unemployment figures in March.

The bellwether Philippine Stock Exchange index (PSEi) rose by 0.61% or 40.60 points to end at 6,659.18 on Wednesday, while the broader all shares index gained by 0.3% or 10.82 points to close at 3,516.57.

“The local bourse rebounded by 40.60 points (0.61%) to 6,659.18 driven by bargain hunting,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.

“Moreover, positive employment figures bolstered sentiment. The unemployment rate increased to 3.9% in March compared to February’s 3.5%; nonetheless, this figure was still considered tight and lower than the previous year’s 4.7%,” she added.

The Philippine Statistics Authority (PSA) on Wednesday reported that the number of unemployed Filipinos in March dropped to two million in March from 2.42 million in the same period last year.

Shares rose as investors welcomed data showing the country posted a narrower trade deficit in March, Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

The balance of trade in goods reached $3.18 billion in March, down by 36.6% from the $5.02 billion deficit in the same month a year ago, separate PSA data released on Wednesday showed.

“Gold prices climbed as traders anticipated a potential Fed rate cut this year. However, oil prices remained flat amid uncertainty over the ceasefire in Gaza, with the Brent contract narrowing by 0.2% to $83.16 per barrel and West Texas Intermediate retreating by 0.13% to $78.38 per barrel,” Mr. Limlingan added.

Back home, sectoral indices were mixed on Wednesday. Property climbed by 4.71% or 111.34 points to 2,474.44; services went up by 1.61% or 31.08 points to 1,959.96; and mining and oil rose by 0.04% or 3.97 points to 9,104.88.

Meanwhile, holding firms dropped by 1.02% or 62.18 points to 5,998.41; financials retreated by 0.5% or 10.51 points to 2,066.92; and industrials declined by 0.02% or 2.02 points to 9,055.02.

“The property sector jumped the most. This surge was led by SM Prime Holdings, Inc., which increased by 7.12%, and Ayala Land, Inc., which rose by 4.91%, leading the gainers among the PSEi,” Ms. Alviar said.

“On the other hand, SM Investments Corp. was at the bottom, losing 2.8%,” she added.

Value turnover went down to P5.98 billion on Wednesday with 434.16 million shares changing hands from the P11.52 billion with 7.9 billion issues traded on Tuesday.

Advancers outnumbered decliners, 99 versus 91, while 40 names were unchanged.

Net foreign selling went down to P9.45 million on Wednesday from P890.07 million on Tuesday. — Revin Mikhael D. Ochave

Peso down on Fed comments

BW FILE PHOTO

THE PESO dropped against the dollar on Wednesday after a US Federal Reserve official said rates are likely to stay higher for longer due to sticky inflation.

The local unit closed at P57.385 per dollar on Wednesday, weakening by 16.4 centavos from its P57.221 finish on Tuesday, Bankers Association of the Philippines data showed.

The peso opened Wednesday’s session weaker at P57.35 against the dollar, which was already its intraday best. Meanwhile, its worst showing was at P57.475 versus the greenback.

Dollars exchanged inched down to $1.16 billion on Wednesday from $1.17 billion on Tuesday.

The peso was dragged down by a stronger dollar amid hawkish comments from Minneapolis Fed President Neel Kashkari, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Mr. Kashkari said at a Milken Institute conference that stalled inflation, kept higher in part by housing market strength means the central bank will need to hold borrowing costs steady for an “extended period,” and possibly all year, Reuters reported.

Mr. Kashkari did, however, also say it is still possible the Fed could cut if inflation begins to cool again.

The comments came on the heels of remarks from Fed officials on Monday that seemed to lean toward indicating the central bank’s next move would be to lower interest rates.

“The peso weakened due to market caution ahead of the first-quarter Philippine GDP (gross domestic product) report,” a trader added in an e-mail.

First-quarter GDP data will be released on May 9, Thursday.

A BusinessWorld poll of 20 economists and analysts conducted last week yielded a median GDP growth estimate of 5.9% for the first three months of 2024.

If realized, this would be faster than the preliminary 5.5% growth recorded in the previous quarter but slower than the 6.4% expansion logged in the first quarter of 2023.

However, the median estimate is a tad lower than the government’s 6-7% growth target for the year.

For Thursday, the trader said the peso’s movement will depend on the GDP report. The trader sees the peso moving between P57.30 and P57.50 per dollar, while Mr. Ricafort expects it to range from P57.25 to P57.45. — A.M.C. Sy with Reuters

Marcos, Romualdez parties forge political alliance

President Ferdinand Romualdez Marcos Jr. (center) witnessed the signing of the alliance between his political party Partido Federal ng Pilipinas (PFP) and LAKAS-CMD on Wednesday, May 08, 2024 at Manila Polo Club, Makati City. In photo with the president are House Speaker Ferdinand Martin G. Romualdez (Lakas-CMD president), left and South Cotabato Gov. Reynaldo Tamayo, Jr. (PFP President). — YUMMIE DINGDING/PPA POOL

By Kyle Aristophere T. Atienza, Reporter

THE POLITICAL parties of President Ferdinand R. Marcos, Jr. and his cousin Speaker Ferdinand Martin G. Romualdez on Wednesday forged an alliance for the 2025 midterm elections, with the aim of fielding a full Senate slate with the help of other political blocs.

The Partido Federal ng Pilipinas (PFP) of Mr. Marcos and Mr. Romualdez’s Lakas-CMD, previously led by Vice President Sara Duterte-Carpio, launched the partnership on Wednesday against the backdrop of resignation calls from allies of the former administration.

PFP is composed of nearly half of Philippine governors, while Lakas-CMD comprises one-third of House members.

The Philippines is now a few months away from the filing of candidacies for the 2025 midterm polls, and trust ratings for Mr. Marcos have been declining recently.

“We cannot do those policy changes without the support of the legislature. Legislative support for any policy is absolutely necessary,” the President said in his speech, citing “transformative politics” as his leadership’s battlecry.

Mr. Romualdez, for his part, described the coalition named Alliance for a New Philippines (Alyansa para sa Bagong Pilipinas) as “the most powerful political force in our country today.”

The performance rating for Mr. Marcos fell to 55% in March from 68% in December, while that of the vice president declined to 67% from 74%, based on the latest Pulse Asia Research Inc. survey.

Among politicians present at the alliance event was former president Gloria M. Arroyo, who in the same month last year dispelled rumors that she was behind a plot to unseat Mr. Romualdez as Speaker.

Ms. Arroyo, president emeritus of Lakas-CMD, was a key backer of the political alliance between Mr. Marcos and Ms. Duterte-Carpio during the 2022 campaign.

Mr. Romualdez told reporters that his party is still open to forging an alliance with Ms. Duterte-Carpio’s regional party Hugpong ng Pagbabago, which was part of the so-called UniTeam alliance in 2022.

“Mr. Romualdez’s openness to involve Hugpong in the alliance is more of a political courtesy rather than an actual offer of coalition, especially that Mr. Duterte has been vocal in his criticisms of the current president,” Jan Robert R. Go, a political science professor at the University of the Philippines, said in a Facebook Messenger chat. “What is glaring here is the absence of the Dutertes in the initial planning stages.”

At the PFP’s event last week, Mr. Marcos said his party was seeking to include the Nacionalista Party (NP), Nationalist People’s Coalition (NPC), and National Unity Party (NUP) in the coalition.

“For the coalition with NP, NPC, NUP, it is more of pragmatic and transactional politics,” said Arjan P. Aguirre, a political science professor at the Ateneo de Manila University.

“With Lakas, it is more of consolidation of power by a dynastic ruling coalition.”

DUTERTE CALLS FOR MARCOS RESIGNATION
Tensions between Mr. Marcos and his predecessor Rodrigo R. Duterte continue to escalate, with the latter’s camp calling for the President’s resignation in a political rally in the central Philippine city of Dumaguete on Tuesday night.

Mr. Marcos has veered away, if not totally reversed, some of Mr. Duterte’s key policies, vowing to shift the anti-drugs campaign to rehabilitation from a deadly approach and standing up to China amid its intrusions into Philippine waters.

Anthony Lawrence Borja, who teaches political science at De La Salle University, said the event could be a preparation for a “grand display” aimed at silencing an opposition movement led by Mr. Duterte, “who is now forced to either join the grand coalition and be a part of the Unity narrative, or stay in the opposition.”

“I think that Duterte’s camp is banking on both the Duterte appeal and the assumption that the Unity narrative will not have the same resonance given the social and economic difficulties hounding Marcos’ administration,” he said in a Facebook Messenger.

INFLATION KEY POLITICAL ISSUE
As in the previous administration, inflation is also the top concern of most Filipinos under Mr. Marcos based on opinion polls.

Philippine inflation accelerated for a third straight month in April — to 3.8% from 3.7% in March — as rice prices continued to surge, according to the Philippine Statistics Authority.

It was mostly driven by rising prices of food and non-alcoholic beverages — 6% in April from 5.6% in March. Rice inflation, which accounts for a huge chunk of the figure, decelerated to 23.9% in April from 24.4% in March.

Rice inflation hit 24.4% in March, the strongest reading since the 24.6% posted in February 2009.

“From the perspective of projections and shared ideas, these political movements are taking the promise of Unity beyond the UniTeam – beyond the Marcos-Duterte alliance,” Mr. Borja said.

“From the perspective of power relations, it is morphing into a grand consolidation at both the national and local levels, and a projection of ‘power by numbers’ back to voters who are bound to go to the ballot around this time next year.”

The International Criminal Court (ICC) has been investigating Mr. Duterte’s deadly drug war, which is also being linked to his daughter, Ms. Duterte.

A Social Weather Stations survey conducted on Dec. 8 to 11 last year showed 53% of Filipinos agreed with the ICC probe of the drug war, up from 45% in March 2023.

The ICC probe covers crimes committed in Davao City from November 2011 to June 2016 when he was still its mayor, as well as cases during his presidency up until March 16, 2019, the day before the Philippines withdrew from the ICC.

Mr. Marcos had said the Philippines under his leadership will not cooperate with the international court, but the Department of Justice revealed on Wednesday it was drafting a briefer of scenarios and options for the President, which includes Manila’s re-entry into the ICC.

INTERPOL, ICC cannot nab Duterte based solely on a warrant — experts

PHILIPPINE STAR/ MIGUEL DE GUZMAN

By Chloe Mari A. Hufana

LAW and diplomacy experts said on Wednesday that former senator Antonio F. Trillanes IV’s assumption that the International Criminal Court (ICC) can have former president Rodrigo R. Duterte arrested by the International Police (INTERPOL) based on an arrest warrant is very unlikely.

“The INTERPOL argument may work, similar to what Trillanes has mentioned. However, he needs to bear in mind that at the end of the day, it (the arrest) will not transpire if (Philippine) state authorities perceive the Red Notice differently,” Josue Raphael J. Cortez, diplomacy and international affairs lecturer at De La Salle-College of St. Benilde, told BusinessWorld in a Facebook Messenger chat.

He said that even if the ICC issues an arrest warrant for Mr. Duterte, enforcing it in the Philippines boils down to political will of the country’s leadership in applying its own laws.

“The law of the land still reigns supreme over the powers both of the INTERPOL and the ICC,” said Mr. Cortez.

In a media briefing on Tuesday, Mr. Trillanes claimed that the ICC is expected to issue an arrest warrant against Mr. Duterte and his cohorts by June or July, this year. He added that the arrest warrant may be implemented through INTERPOL’s issuance of a Red Notice.

“[INTERPOL] has no agents with power to arrest. It serves as a coordinating agency and provides assistance on matters of information, communication, and databases,” National Union of Peoples’ Lawyers (NUPL) president Ephraim B. Cortez told BusinessWorld in a Viber message.

He added that INTERPOL can only facilitate the implementation of arrest warrants issued by one jurisdiction to be implemented in another. Only local law enforcement agencies can implement the arrest.

Mr. Cortez also stressed that political will on the part of the government’s leadership plays a vital role in implementing such warrants as “it would still depend on Filipino state authorities whether they will — or will not — undertake the arrest of Duterte.”

“If the policy of the (Philippine) Government is not to cooperate, the local law enforcement agencies will definitely follow their government’s directive, and will not implement the warrant,” he said.

Earlier pronouncements by President Ferdinand R. Marcos, Jr. flatly stated that his administration will not lift a finger to assist the ICC in its investigations into Mr. Duterte and his administration’s bloody war on drugs.

Meanwhile, Department of Justice (DoJ) Spokesman Jose Dominic F. Clavano IV in a Viber message to reporters said the department is working on possible options for any ICC warrants.

“We are preparing a brief on the legal options available to the President in relation to any ICC arrest warrants, with an awareness that policy frameworks may evolve. The brief will be an objective analysis of the pros and cons of each option,” said Mr. Clavano.

He confirmed that among these options is the Philippines’ rejoining the ICC, which would in effect compel the country to enforce any warrant issued by the ICC.

“We would just like to emphasize that the stance has not changed but we want the President to know all his options and all the implications,” he said.

Previously, Mr. Trillanes posted in his X account that there are 50 active and retired Philippine National Police (PNP) officials interviewed by the ICC on their “crimes against humanity” investigation under Mr. Duterte’s administration.

Mr. Clavano stressed that the Philippines has a working justice system and does not require external interference to prosecute such cases.

“The government’s stance has been consistent. The President has been very firm by saying we do not recognize the jurisdiction of the ICC because we have a well and robust justice system,” he said in a Malacañang briefing last April 25.

China warship, 2 other vessels spotted in Batanes

PHILIPPINE COAST GUARD PHOTO

THE PHILIPPINES on Wednesday said it had sighted three Chinese vessels, one of them a warship, in the waters of the northernmost province of Batanes.

The vessels were spotted as the Philippines and the United States were holding joint military exercises in the areas on May 1, Philippine Coast Guard (PCG) Spokesman Armand Balillo said in a statement.

He said PCG vessel BRP Melchora Aquino engaged in radio challenges with the two unidentified China-flagged vessels.

“While the People’s Liberation Army Navy ship, which was positioned farther away than the two other Chinese ships, had also left the area,” he added.

The joint drills between the Philippines and the US named Balikatan, which involved 16,000 Filipino and American troops, started last month and will end on May 10.

Batanes is only 376 kilometers away from Taiwan, a US ally that has governed independently of China since 1949. Chinese vessels are mostly seen within the Philippines’ exclusive economic zone in the South China Sea, which China claims almost in its entirety.

CIVILIAN COALITION SETS RESUPPLY MISSION, MAY 14-17
Civilian coalition Atin Ito on Wednesday said it will conduct its second mission to the West Philippine Sea on May 14-17 as it pushes for an “active citizenship model” to safeguard the country’s territorial integrity.

The mission coincides with the farmers and fisherfolk month and the celebration of May as the month of Mary, revered by Filipino Catholic seafarers as their guide and protector in the sea, Edicio Dela Torre, President of the Philippine Rural Reconstruction Movement and co-convenor of Atin Ito, said at a news conference.

The mission will be participated in by 200 fisherfolk, volunteers, foreign and local journalists and other observers.

“This is not a sightseeing excursion to seek out Chinese marine vessels or a provocation to incite conflict. It is a legitimate exercise of Filipino citizens within our own territory,” Akbayan Party President Rafaela David said. 

“Our approach is grounded in reclaiming what rightfully belongs to us, guided by international law and diplomatic principles,” she said.

The Chinese Coast Guard backed by maritime militia ships has been firing water cannons at Philippine government-contracted boats delivering supplies to a Navy outpost at Second Thomas Shoal, which is about 240 kilometers off the coast of Palawan province and about 900 kilometers from the nearest major Chinese landmass. — Kyle Aristophere T. Atienza

Economic czar says renewable sector a priority for private sector partnership

FREDERICK D. GO —PHILSTAR FILE PHOTO

THE RENEWABLE energy sector is among the priorities of the Philippines in its partnership with the private sector, the country’s economic czar said on Wednesday.

Partnerships in the renewable energy sector are considered long-term investments since they are “multi-year projects,” Presidential Investment Adviser Frederick D. Go said in a chance interview near the presidential palace.

“So it can’t be that our president would be invited, attract them to put up an investment and then in six months, it’s up,” he said. “Most of the renewable energy projects are four- or five-year projects.”

A 2024 Green Economy Report for Southeast Asia led by Bain & Company said the Philippines saw a 57% increase in “green” investments to $1.46 billion in 2023, but still falls short of the over $16 billion in required capital investments needed for its green transition.

When asked how the Philippines is faring in terms of attracting foreign investments, Mr. Go said: “We’re doing quite well. And we have so many leads that we are working on.”

Mr. Go touted the Philippine expansion of several big multinational companies such as Unilever, Inc., which invested €80 million in 2023 to boost its factory production for beauty care products in Cavite province south of the capital Manila.

He also cited an expansion of Nestle Philippines, which last year unveiled a plan to expand its coffee business in the country and explore new “growth initiatives” in the local dairy sector.

Mr. Go also touted Philip Morris International’s new P8.8-billion manufacturing facility in Tanauan, Batangas, which is aimed at boosting the production of “smoke-free” products such as the IQOS and Bonds brands.

“We have a lot of projects that are already in the pipeline now.”

Meanwhile, Mr. Go said the private sector will continue to play a big role in the Marcos administration, citing their strong partnership with the Private Sector Advisory Council, which was established in July 2022.

“They’ve been doing a great job in giving their suggestions and recommendations.” — Kyle Aristophere T. Atienza

Universal social pension bill hurdles House panel

FREEPIK

By Kenneth Christiane L. Basilio

THE HOUSE Committee on Appropriations approved on Wednesday a bill for universal social pensions, aiming to prevent elderly Filipinos from slipping into poverty.

Under the proposed legislation, the government would allocate P89 billion annually to cover 4.5 million senior citizens, said Laguna Rep. Loreto S. Amante.

“I believe the universal social pension will be crucial to keeping the near-poor and lower middle-income seniors from slipping into poverty,” Party-list Rep. Rodolfo M. Ordanes said in a statement.

“For now, only those qualified and registered senior citizens only receive P1,000 from the social pension,” Mr. Amante, who is a vice-chair of the House Senior Citizens Committee, told BusinessWorld in a text message in Filipino. “The bill now provides that every senior citizen will now receive a social pension, no longer requiring they be indigents to receive the aid.”

Mr. Amante explained the process for seniors to enroll through the Department of Social Welfare and Development (DSWD), with payment options including electronic wallets and banks.

He noted plans for direct aid distribution in remote areas without banking access.

The bill aims to gradually raise pensions to P1,000 for all seniors. “Hopefully, in five years’ time, the P1,000 pension will be universal for all senior citizens.”

Imee: Extend aid to rice farmers

PHILIPPINE STAR/ANDY ZAPATA JR.

SENATOR Maria Imelda “Imee” R. Marcos on Wednesday pushed for the extension of the P10-billion aid for farmers under the Rice Competitiveness Enhancement Fund (RCEF) up to 2031 to equip them with state-of-the-art farming technology and to modernize the rice industry.

“After six years, the tax did not go to the farmers,” she said in a statement in Filipino. “What we want is to extend this (RCEF) until 2031 not 2025, so that they can benefit from this, give it to the Philippine Rice Research Institute, to local government units and coops.”

The House Committee on Agriculture and Food and Ways and Means on Tuesday approved proposals to allow the National Food Authority (NFA) to sell rice to retailers and to increase the funding of RCEF to P15 billion from P10 billion annually. 

The law, which took effect in 2019, allowed private traders to bring in rice shipments without restriction. At the time, they had to pay a 35% tariff on Southeast Asian grain.

The fund supports supplying farmers with farming equipment, seed and fertilizer, among others.

Ms. Marcos reiterated the need to address the disparity between farmgate and retail prices of rice, and proposed bringing back the Food Terminal Incorporated (FTI) and Kadiwa system.

She said the centralized collection and distribution of FTI-Kadiwa system allowed the discounted sale of agricultural produce at Kadiwa retail stores.

“What we need (to solve the rice price issue) is to have all hands on deck and help in any way,” said Ms. Marcos. “We don’t want the NFA since it always falls to corruption and other scams. Let’s not allow this.” — John Victor D. Ordoñez

SC rules against red-tagging

PHILIPPINE STAR/ MICHAEL VARCAS

THE SUPREME COURT (SC) in a landmark decision ruled that red-tagging, vilification, labeling, and guilt by association threatens a person’s right to life, liberty, or security and could warrant the issuance of protection.

“Inherent in the practice of red-baiting is the use of threats and intimidation to discourage ‘subversive’ activities. Whether such threats ripen into actual abduction or killing of supposed ‘Reds’ is largely uncertain disappearance or extrajudicial killing when the writ of amparo becomes necessary,” read the 39-page ruling penned by Justice Rodil V. Zalameda.

The SC en banc decided on a case filed by an activist and former Bayan Muna party-list representative Siegfred D. Deduro, when the Iloilo Provincial Peace and Order Council labeled him as a part of the Communist Party of the Philippines-New People’s Army (CPP-NPA).

Major General Eric C. Vinoya, commander of the Philippine Army’s 3rd Infantry Division, instructed his officers to give the presentation that tagged Mr. Deduro.

Mr. Deduro said posters were put up around Iloilo City with his image tagged as a criminal, terrorist, and member of the CPP-NPA-National Democratic Front (NDF).

“The damages inflicted by red-baiting evolve too: They start from the psychological before they turn physical. Amid a history of shifting social and political ties, we affirm the Judiciary’s sworn duty to see to it that the protection of every right guaranteed in the Constitution remains constant for all,” the decision read.

“The heightened risk of danger or death brought about being labeled as a Communist, a Communist sympathizer, or even merely being adjacent to a Communist cause should be seriously considered by judges in Amparo proceedings,” wrote Senior Associate Justice Marvic MVF Leonen in his concurring opinion.

A writ of amparo seeks protection before a court.

SC Spokesperson Camille Sue Mae L. Ting said in a Viber message to reporters that anyone who felt red-tagged by state authorities may apply for protection but it depends on the courts to grant it or not.

Human rights lawyer Jose Manuel “Chel” I. Diokno in an X post said the decision should serve as a “stern warning” to government forces and individuals to refrain from this “illegal practice.”

“The Civil Service Commission and all government agencies should direct their officials and employees to desist from red-tagging and abide by the rule of law,” he said.

Bayan Chair Emeritus Carol P. Araullo in a statement urged those tagged as “communist-terrorists” and suffered its negative effects to file charges against red-taggers as a “form of legal push back.”

For his part, Bayan Muna Executive Vice President Carlos Isagani T. Zarate in a separate statement said the decision shows “unconditional declaration” from the SC that red-tagging is “gravely dangerous.”

ACT Teachers Party-list Rep. France L. Castro urged her fellow solons to fast-track the passage of House Bill 1152 or the criminalization of red-tagging.

“The struggle for human rights and justice is far from over, but this decision is a significant step forward. We will continue to fight for a society that values human life, dignity, and freedom,” Ms. Castro said in a statement. — Chloe Mari A. Hufana

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