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Hybrid work, new supply to drive 22% office vacancy rate this year — JLL

MAX RAHUBOVSKIY-PEXELS

HYBRID working arrangements and new office spaces are expected to contribute to a 22% vacancy rate by the end of the year, according to JLL Philippines.

“By end 2024, what we forecast for vacancy levels is to reach around 22% and the reason for that is to expect an additional 500,000 square meters (sq.m.) of all stock on demand,” JLL Philippines Head of Research and Strategic Consulting Jan-Loven C. de los Reyes said during a press briefing on Thursday last week.

“That would apply supply pressure on the market, considering that we have heavy vacancy levels that are in the double digits across cities,” he added.

JLL said the first quarter vacancy level eased to 19.9% from 20.3% in the fourth quarter of 2024.

However, this vacancy level is still higher than 17.8% in 2023.

According to Mr. De los Reyes, overall, this was due to the reduction in new supply, coupled with a good take-up rate of around 75%. Manila had the highest vacancy rate at 38.1%, followed by Parañaque at 50.4%, and the lowest in Bonifacio Global City at 9.1%.

He also noted a “double whammy” that contributes to the high vacancy level, citing the exit of the Philippine Offshore Gaming Operators and the emergence of hybrid work arrangements.

JLL projected approximately 582,234 sq.m. of stock for the end of 2024, followed by 456,219 sq.m. in 2025, and 227,749 sq.m. in 2026. Additionally, there will be 43,066 sq.m. for both 2027 and 2028.

Regarding take-up, JLL noted a rise in leasing volumes to 149,172 sq.m. in the first quarter from 81,785 sq.m., attributed to the spillover of deals from the fourth quarter of 2023.

But year on year, this was slower and fell by 30% to 213,707 sq.m. The cities of Taguig and Makati led the transaction activities.

Per sector, the share of business process outsourcing (BPO) in total leasing activity stands at 68.9%, while corporate occupiers account for 31.1%.

Mr. De los Reyes said leasing volumes are anticipated to remain moderate over the next quarters but are still significantly below the levels seen during the pandemic.

He noted that the easing conditions are due to office demand being tempered by hybrid working.

“Select BPO companies have been releasing spaces but have not taken out additional spaces by improving their headcount,” he said. “There are also going to be companies who are taking up space, keen to have employees return to the office, and this may come from the financial services segment.”

For the first quarter, JLL said the released office space rose to 97,365 sq.m.

The BPO sector pullout in Muntinlupa City amounted to 3,400 sq.m., while the corporate occupier pullout in Taguig City totaled 1,000 sq.m.

JLL also said that Metro Manila’s overall rents remained unchanged at P1,004 per sq.m. in the first quarter. — Aubrey Rose A. Inosante

Republic Glass Holdings Corp. to hold regular annual meeting of stockholders on May 21

 


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Aerosmith frontman Steven Tyler wins dismissal for good of sexual assault lawsuit

INSTAGRAM.COM/IAMSTEVENT

NEW YORK — A federal judge in Manhattan dismissed for good a lawsuit accusing Aerosmith lead singer Steven Tyler of sexually assaulting a former teenage model twice in one day in the mid-1970s.

US District Judge Lewis Kaplan said Jeanne Bellino cannot recover damages from the 76-year-old Tyler under a 2000 New York City law protecting victims of gender-motivated violence.

He said it would be futile to file an amended complaint, and dismissed Ms. Bellino’s case with prejudice, meaning it cannot be brought again. Mr. Kaplan rejected an earlier complaint in February.

Lawyers for Ms. Bellino did not immediately respond to requests for comment.

Mr. Tyler had “vehemently” denied Ms. Bellino’s allegations, which included that he assaulted her in a phone booth as others in his entourage stood by laughing, and later assaulted her in a hotel.

The alleged assaults occurred in the summer of 1975, when Ms. Bellino was 17and Mr. Tyler was 27.

Ms. Bellino said she encountered Mr. Tyler after a friend arranged for her to meet Aerosmith following a Manhattan fashion show.

Mr. Kaplan said the city law was not retroactive, and that Ms. Bellino’s battery claim would have expired on her 19th birthday.

He also said two more recent state laws, the Adult Survivors Act and Child Victims Act, did not revive Bellino’s claim.

The judge said the first law covered only people who were at least 18 when they become victims, and the second did not cover claims filed after August 2021. Ms. Bellino sued in November 2023.

David Long-Daniels, a lawyer for Mr. Tyler, in an e-mail said Mr. Kaplan “fastidiously applied the facts to the law. That is all we can ask from any judge. We are particularly happy for Steven and his family.”

Mr. Tyler has also defended against a lawsuit in Los Angeles, where the plaintiff Julia Misley claimed he sexually assaulted her in 1973 when she was 16 and he was 25.

Ms. Bellino’s law firm has represented Ms. Misley in that case. — Reuters

Australia’s solar, wind energy needs no threat to farmland

BILL MEAD-UNSPLASH

As Australia’s rapid renewable energy rollout continues, so too does debate over land use. Nationals Leader David Littleproud, for example, claimed regional areas had reached “saturation point” and cannot cope with more wind and solar farms and transmission lines.

So how much land is needed to fully decarbonize energy in Australia? When we switch completely to solar and wind, do we have the space for all the panels, turbines, and power lines?

I’ve done the sums. All we need is 1,200 square kilometers. That’s not much. The area devoted to agriculture is about 3,500 times larger at 4.2 million square kilometers. The area of land that would be taken away from agriculture works out at about 45 square meters per person — about the size of a large living room.

We can ditch fossil fuels and reduce greenhouse emissions with negligible impact on agriculture. And in many cases, farmers can be paid for hosting renewable energy infrastructure while continuing to run sheep and cows or grow crops.

THE CHALLENGE OF THE ENERGY TRANSITION
Electricity consumption in Australia is currently about 10 megawatt-hours (MWh) per person per year.

Decarbonizing Australia’s economy will require electrifying many technologies that currently derive their power from burning fossil fuels. Then we need to ensure the electricity grid runs entirely on renewables.

When we electrify transport, heating, and industry, annual electricity consumption per capita doubles. But we will need even more electricity to decarbonize aviation and shipping. So it’s reasonable to assume electricity consumption must triple if we are to complete decarbonization, to 30 MWh per person per year.

This would logically be achieved in three stages, starting with the easiest to achieve:

Stage 1: Solar and wind displace coal and gas from the electricity system. The federal government target of 82% renewable electricity by 2030 puts us firmly on track to decarbonize electricity. This trend is already well underway.

Stage 2: Clean electricity is used to electrify transport (electric vehicles), heating (electric heat pumps), and industrial heat (electric furnaces). This off-the-shelf technology could largely replace petrol and gas within a decade with negligible impact on the cost of running vehicles and heating homes.

Stage 3: The chemical industry is decarbonized. Clean electricity is used to make ammonia, iron, steel, plastics, cement, and synthetic aviation and shipping fuel.

WHERE WILL THIS CLEAN POWER COME FROM?
Virtually all new generation capacity in Australia over the past decade has been in solar and wind. Together, solar and wind have risen from about 6% of electricity generation in 2014 to 33% today. Solar and wind provide the cheapest electricity.

Most solar power in Australia today comes from rooftop solar panels. These panels don’t require any extra land. But the area of rooftop is limited. In coming years, ground-mounted solar farms will become ever more important.

We’ll also need more wind farms. Each wind farm contains dozens of turbines and spans dozens of square kilometers. But only a small fraction of the land is lost to farming.

And it’s best to spread the solar farms and wind farms throughout the settled areas of Australia, to reduce the effect of local cloud and wind lulls.

Most solar and wind farms are located on sheep and cattle farms inland from the Great Dividing Range. Here there is plenty of sun and wind, and it’s not too far away to transmit electricity to the cities via high-voltage power lines.

SO HOW MUCH LAND DO WE NEED?
Typically, only about 1% of land covered by a windfarm is actually lost to farming. In most cases, farmers run livestock or continue cropping around the turbine towers and access roads.

Similarly, because solar panels are spaced apart, the area spanned by a solar farm is often two to three times the actual area of the panels themselves.

The panels are typically spaced to avoid losses from shading. As an added bonus, it means rain and sunlight can fall between them, allowing grass to grow and livestock to graze and shelter.

About 10,000 km of new transmission lines will also be required for the energy transition. This sounds like a lot but amounts to just 37 centimeters per person.

Again, the area of land that would be taken away from agriculture for wind turbine towers and access roads is relatively small.

A further small area of land will be dedicated to new storage such as pumped hydro power and batteries.

The total area spanned by the solar farms, wind farms, and all the other infrastructure is about 22,000 square km (mostly the land between the turbines in windfarms). But agriculture could continue largely as normal on most of this land.

By my calculations, the total area taken away from agriculture to power a 100% renewable energy (zero fossil fuel) economy is about 45 square meters per person. Considering Australia’s total population of 27 million people, that means the total land area required is 1,200 square km. The area currently devoted to agriculture is about 3,500 times larger than this.

FARMERS CAN EARN EXTRA INCOME
Mining companies are often permitted to mine land without the consent of the landowner.

Solar and wind farm developers do not have the same rights. They must agree on lease fees with landowners before gaining access to land. These fees are typically tens of thousands of dollars per year per turbine.

In the case of transmission lines, hosts in Victoria are paid A$200,000 per kilometer over eight years.

The transition to renewable energy has attracted opposition from some residents living near proposed infrastructure. But this can be overcome.

Successful solar and wind farm companies gain community acceptance through genuine transparency, particularly early in the project, to ensure no information vacuum is created and then filled with misinformation.

Paying neighbors as well as the renewable energy host farm, and establishing community funds, is also helpful.

PLENTY OF LAND TO SHARE
The expansion of renewable energy infrastructure will be concentrated in Australia’s regional areas. But we can also expect new energy capacity from elsewhere, such as expanded rooftop solar and new offshore wind farms, which reduces the amount of land needed for the energy transition.

The location of good areas for solar and wind farms is shown in the Australian National University’s renewable energy heatmaps, which takes account of the solar and wind resources, proximity to transmission lines, and protected land. Farmers in areas colored red can command higher prices for leasing land to solar and wind farm companies.

In short, Australia has far more than enough land to host the solar farms and wind farms required for the renewable energy revolution.

 

Andrew Blakers is a professor of Engineering, Australian National University.

D&L says fixed-rate bonds maintain highest credit rating

LISTED D&L Industries, Inc. said it has retained its highest credit rating for its P5-billion fixed-rate bonds.

The fixed-rate bonds maintained a PRS Aaa rating with stable outlook from the Philippine Rating Services Corp. (PhilRatings), D&L Industries said in a stock exchange disclosure on Monday.

Issued in September 2021 to partly fund the company’s Batangas plant, D&L’s bond issuance had a principal amount of P3 billion, with an oversubscription option of up to P2 billion, and a tenure of three to five years.

PRS Aaa is the highest rating issued by PhilRatings and is given to obligations with minimal credit risk, while a stable outlook is assigned when a rating is likely to be maintained in the next 12 months.

The rating and outlook were given based on D&L’s market position in the industries in which it operates; diversification of products offered and markets served; and specialty products that shield the company from competition and ensure continued demand from customers.

 PhilRatings also cited the company’s relatively stable margins amid higher costs and expenses, including incremental costs on the Batangas expansion facility, as well as conservative debt management and adequate cash flow generation.

D&L is expected to settle its P3 billion fixed-rate bonds upon maturity on Sept. 14.

“Given its conservative leverage position, as well as its profit and cash flow performance, the company is seen to be able to comfortably service its maturing obligations,” it said.

The company’s Batangas plant started commercial operations in July 2023.

“As the economy continues to recover from the pandemic, D&L is positive that it is more capable to withstand adverse environments with the expertise it has learned through its years of operations. The company strives to enhance its capabilities in order to maintain a strong market position,” it said.

D&L is engaged in the production of customized food ingredients, specialty raw materials for plastics, and oleochemicals for personal and home care use.

On Monday, D&L shares fell by 0.65% or four centavos to P6.10 apiece. — Revin Mikhael D. Ochave

Turnover of Sierra Valley’s first 2 towers eyed for 2025

RLC RESIDENCES said it expects the turnover of the first two towers of its four-tower Sierra Valley Gardens (SVG) project – Phase 1 in Rizal by 2025.

The Sierra Valley Gardens in Cainta is a high-rise residential project that spans three phases along Ortigas Avenue Extension.

“We expect turnover to begin by mid-2025,” said Robinson Land Corp. Chief Marketing Officer John Richard B. Sotelo in an e-mailed statement on Monday, referring to the first two buildings of Phase 1 launched in 2020.

Mr. Sotelo also said that Buildings 3 and 4 of Phase 1 are “on track as per the original construction schedule” and are almost sold out.

RLC Residences plans to launch Phase 2 and Phase 3 according to market demand and readiness, he added.

In a media release last week, the company said it conducted SVG’s topping-off ceremony for the first two buildings.

The company said the project was its fastest-selling condominium property due to its location inside the Sierra Valley Estate in Cainta, Rizal, minutes away from Ortigas central business district.

“There are so many things to look forward to in this project — the convenience of living in well-designed units that they can call home, where the amenities for leisure, recreation, and wellness are at their fingertips,”  RLC Residence Marketing Head and Chief Integration Officer Karen Cesario said.

Sierra Valley Gardens is described as the first smart suburban community in Cainta, Rizal.

It offers studio to two-bedroom units with balcony options.

The amenities include the clubhouse façade, function room, gym, children’s playroom, jogging trail, adult and children swimming pool, multi-purpose court, and outdoor play area. — Aubrey Rose A. Inosante

UnionBank Q1 profit slides 40% after Citigroup integration

BW FILE PHOTO

UNION BANK of the Philippines, Inc. (UnionBank) booked a net income of P2.011 billion in the first quarter, with expenses related to its integration of Citigroup, Inc.’s local consumer business into its operations affecting its profit, it said on Monday.

The bank’s net income last quarter was down by 39.79% from the P3.34-billion attributable net profit that it booked in the comparable year-ago period, based on its unaudited financial report for the first quarter of 2023.

UnionBank’s latest financial statement was unavailable as of press time.

“The bank allocated resources towards the migration of the acquired Citi consumer business into UnionBank systems. While this temporarily affected our profitability, it was a planned initiative aimed at unlocking long-term benefits and efficiencies,” the lender said in a disclosure to the stock exchange.

UnionBank completed the integration’s final phase on March 24, it said.

“Our first-quarter performance is in line with our expectations. We are even ahead in terms of key metrics that matter for sustainable growth, such as number of retail customers, net interest margins, and fees-to-assets. Now that we have successfully completed the Citi migration, we will no longer bear the one-time costs associated with it starting this month.

We will now focus our efforts to realizing the full gains from cross-selling to our growing customer base,” UnionBank Chief Financial Officer Manuel R. Lozano said in a statement.

The bank’s net interest income grew by 17% year on year to P13.45 billion in the first quarter. Its net interest margin went up by 59 basis points to 5.7%. Meanwhile, other income stood at P4.905 billion.

Its revenues grew by 14% year on year, supported by the growing share of consumer loans in its portfolio, higher margins and income from transaction fees.

“The bank’s consumer loans now account for 59% of total loan portfolio, nearly three times higher than industry average,” UnionBank said.

Meanwhile, its operating expenses went up by 10% to P11.083 billion in the first quarter due to costs related to the migration of Citi’s retail accounts into UnionBank’s systems.

“A one-time integration cost of P1.1 billion was incurred in the first quarter of 2024,” it said.

“Additionally, the bank’s marketing investments resulted in a significant increase in new-to-bank credit card customers, more than doubling last year’s customer acquisition rate. We now have a bigger base of customers who we can offer our other products and services to,” UnionBank added.

The bank’s loans stood at P520.758 billion in the first quarter. On the funding side, its deposits were at P692.114 billion, with its low-cost current account, savings account or CASA deposits at P431 billion.

Total assets stood at P1.146 trillion at end-March. Total capital funds were at P174.589 billion.

UnionBank’s shares declined by P2 or 4.84% to close at P39.35 apiece on Monday. — A.M.C. Sy

How PSEi member stocks performed — April 29, 2024

Here’s a quick glance at how PSEi stocks fared on Monday, April 29, 2024.


Philippines moves up in state and governance indexes

The Philippines improved in the 2024 edition of the biennial Bertelsmann Stiftung Transformation Index (BTI). The country inched up by a notch to 59th out of 137 countries in the Status Index, while it rose four spots to 83rd place in the Governance Index. The index evaluates a country’s progress towards democracy and market economy, as well as the quality of governance on a scale of 1-10, with 10 being the highest.

 

Philippines moves up in state and governance index

PHL told to adjust school year amid record heat

PHILSTAR FILE PHOTO

THE PHILIPPINE Senate president on Monday urged education officials to return to a June to March academic calendar instead of August as the state weather bureau warned that 36 areas faced dangerous heat levels of 42-47ºC.

“Aside from exposing our students and teachers to the dangers of extreme heat, I honestly believe that the prevailing weather conditions during summer are not conducive to learning,” Senate President Juan Miguel F. Zubiri said in a statement. “The August calendar has proven to be disruptive to our education system, and even dangerous to the health of our children and school staff.”

The Philippine Atmospheric, Geophysical and Astronomical Services Administration or PAGASA said Dagupan City in Pangasinan was expected to experience 46C-47ºC in the next two days. In Metro Manila, Pasay City was expected to post a heat index of 43-44ºC.

Heat cramps and exhaustion are likely, while heat stroke was probable with continued exposure to temperatures of 42-51ºC — considered dangerous — the agency said on its website.

Iba, Zambales in northern Philippines posted the highest temperature of 53ºC on April 28 after four straight days of registering a heat index of 42-43ºC. Its temperature was expected to drop back to 42ºC on Monday.

PAGASA said Laoag City, Tuguegarao City and Baler in Aurora province were expected to post a 45ºC heat index on Monday. Casiguran in Aurora, Sinait in Ilocos Sur, Dumangas in Iloilo, Aborlan in Palawan, San Jose in Occidental Mindoro and Coron in Palawan were expected to experience temperatures of as much as 44ºC.

Mr. Zubiri told reporters he had withdrawn a bill he filed in 2022 seeking to synchronize the country’s academic school calendar to August. “In an ideal world, we do want to be in sync with international school calendars to give our students a better chance at getting into programs abroad,” he said.

The Department of Education suspended face-to-face classes in all public schools nationwide on April 29 and 30 due to extreme heat caused by the El Niño weather event.

The Senate basic education committee is set to look into the dangers of extreme heat on students this week, Senator Sherwin T. Gatchalian, who heads the body, said in a separate statement. He said a remote learning setup might make it difficult for students who do not have internet access at home.

“There are parents who are not in favor of online or blended learning since their children do not learn and the parents themselves answer textbooks or workbooks for them,” Mr. Gatchalian said in Filipino. “It seems that parents are more in favor of face-to-face classes. All of these we will balance.”

Mr. Zubiri also called on the Agriculture and Science and Technology departments to look into cloud seeding as rivers dried up due to extreme heat and drought.

“Our appeal to the Department of Agriculture is to continuously monitor the situation especially livestock production, not just the crops,” he said. “We’re hoping that the entry of the rainy season comes sooner rather than later because many of our farmers are suffering.”

Farm damage caused by El Niño had reached P4.39 billion as of April 23. — John Victor D. Ordoñez and Norman P. Aquino

Jeepneys file SC pleading in last-ditch effort to stop modernization program

PHILSTAR

By Chloe Mari A. Hufana

A TRANSPORT group on Monday filed an amended petition before the Supreme Court (SC), asking it to halt the government’s modernization program for the sector, including an April 30 consolidation deadline for jeepney operators and drivers.

“Jeepney drivers have a simple request and that is can we have a temporary restraining order for now until the Supreme Court decides?” Neri J. Colmenares, lawyer for the Pagkakaisa ng mga Samahan ng Tsuper at Operator Nationwide (PISTON), told a news briefing after filing the pleading.

“If franchises get canceled [on April 30], even if we win our petition, can you bring [these] back?”

He also said the Dec. 29 order of the Land Transportation Franchising and Regulatory Board (LTFRB) had prompted them to file a new petition since the agency required jeepney drivers and operators to join cooperatives. PISTON filed its original lawsuit on Dec. 20.

“That’s why we’re asking the Supreme Court to grant the temporary restraining order,” Mr. Colmenares said. “Is there a major injury for the government if they postpone the implementation of the modernization?”

Jeepney drivers who have not joined cooperatives bewailed the cost of joining one.

Edwin A. Oreña, a jeepney driver and PISTON Camanava spokesman, said a driver must shell out at least P30,000 to be able to join a cooperative.

He added that jeepney drivers frown at cooperatives because they won’t be able to “enjoy what they own” — they must surrender their jeepneys and franchises to their cooperatives.

Mr. Oreña urged the government to expand their options when it comes to joining cooperatives instead of telling them to develop new skills under the Technical Education and Skills Development Authority in case they lose their job as drivers.

“Joining a cooperative means additional expenses for jeepney drivers,” PISTON legal counsel Maria Kristina C. Conti said in Filipino. “Commuters will also bear the brunt of these incurred expenses.”

The minimum fare for a modern jeepney is P15.

The transport group also criticized the government for allegedly failing to discuss these issues with the sector.

Jeepney drivers and operators have until April 30 to join or set up their own cooperatives as part of consolidation efforts.

Jeepney drivers at Monday’s briefing said they plan to continue plying their original routes even at the risk of getting apprehended.

LTFRB on its website said 76% of jeepneys nationwide had yet to consolidate.

PISTON Deputy Secretary-General Ruben G. Baylon said 200,000 drivers and operators would be affected, while 28 million Filipino commuters would suffer as the consolidated franchise take effect.

The transport group is holding a transport strike that started on Monday to fight the modernization program.

PCG says Chinese vessel spotted near southern Luzon waters

PHILIPPINE COAST GUARD PHOTO

THE PHILIPPINE Coast Guard (PCG) on Monday said a Chinese research vessel had passed though the country’s northernmost province of Batanes before lingering in the waters off southern Luzon.

The Chinese vessel Shen Kuo passed through Itbayat and Basco in Batanes before “loitering” in waters off Catanduanes province, PCG spokesman Jay Tristan Tarriela told reporters in a group message.

“It then proceeded southward, coming within 11 nautical miles of the coast of Mapanas, Northern Samar on April 25,” he said. “After that, it traveled north again until it reached the waters off Catanduanes, where it was monitored by the Armed Forces of the Philippines (AFP).”

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

Batanes is just a few kilometers away from Taiwan, a United States ally that China considers as a renegade province. The northernmost province is among the key sites of the US-Philippines military drills that started on April 24 and will end on May 8.

The Philippine military on Sunday said the Chinese vessel was spotted off Viga town in Catanduanes on Saturday.

It said Shen Kuo was spotted 60.9 nautical miles east of Rapu-Rapu Island in Albay on Thursday.

The vessel had no personnel on the main deck, it said, citing an April 29 patrol.

There were attempts to contact the vessel through regular radio channels, but it did not respond, according to the military.

“The AFP remains vigilant, monitoring any unauthorized research vessel in our maritime domain,” it said. “We have already tasked nearby vessels for enhanced surveillance and reporting.”

This was the second time a Chinese research vessel was seen loitering in the Philippines’ eastern section near Benham Rise, a 24-million-hectare underwater feature within the country’s continental shelf.

“The presence of the Chinese research vessels in the Luzon Strait down to the Philippine Rise in the East Sea can be construed as a scientific way of surveying the maritime domains of the Philippines, which is primarily located in the first island chain,” Chester B. Cabalza, founder of Manila-based International Development and Security Cooperation (IDSC), said in a Facebook Messenger chat.

“Research vessels are the safest way to legitimize espionage measures.”

Mr. Cabalza said the presence of the Chinese research vessel could also be linked to the Balikatan (shoulder-to-shoulder) drills between the Philippines and the US, noting that the activities, which are observed by more than a dozen countries, are also focused on Batanes and Ilocos coastlines.

Two Chinese People’s Liberation Army Navy (PLAN) vessels were seen tailing Filipino, American and French warships taking part in a maritime exercise under this year’s Balikatan at about 9 a.m. on April 29, the state-run Philippine News Agency said, citing the military’s Western Command.

The warships were expected to hold gunnery exercises, cross-deck operations and photo exercises later in the day.

The Philippine military on Sunday said a Chinese Navy ship was spotted about 7 to 8 nautical miles from the US and Philippine vessels holding Balikatan exercises near northern Palawan. Another PLAN ship was spotted on Saturday.

The PCG, which is participating in the Balikatan drills for the first time, said the presence of Chinese Navy vessels would not prevent Manila and its allies “from carrying out these kinds of exercises.”

“China’s only intention is to make their presence known,” Mr. Tarriela told Radyo630. “They want to say that they are in the area. Definitely, we will not stop our drills because they are there.”

Meanwhile, Senator Francis N. Tolentino pushed a bill setting a fine of as much as P10 million against vessels that fail to help ships and people in distress within Philippine waters, citing the need to protect poor Filipino fishermen.

“What we are trying to do here is to merge international law with domestic legislation and I see this as a gap considering that we have fishermen going out there during the typhoon season and there is really a need to provide penalties for those who fail to render assistance,” he told a foreign relations committee hearing.

Under Senate Bill No. 1388, vessels that fail to help a person or another ship in distress will be fined P5 million to P10 million. 

At the same hearing, Senator Maria Imelda “Imee” R. Marcos cited the need to classify vessels liable for the penalties. — Kyle Aristophere T. Atienza and John Victor D. Ordoñez