Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 1892

Reese thrown out in Chicago loss

BREANNA Stewart scored 33 points and grabbed 14 rebounds to help the visiting New York Liberty beat the Chicago Sky 88-75 on Tuesday.

Chicago rookie Angel Reese was ejected after receiving two technical fouls with 2:31 remaining in the game. Ms. Reese finished with 13 points and 10 rebounds but shot 3 of 12 from the floor in the loss.

The Liberty (8-2) won their fourth in a row and avenged their loss to the Sky (3-5) on May 23. New York went on a 15-2 run to start the fourth quarter after Chicago erased a 17-point, first-half deficit.

Sabrina Ionescu added 24 points and seven rebounds for Liberty, who held the Sky to a season-low 32.4 percent shooting from the floor.

New York controlled the game in the first quarter, shooting 57.9 percent in the frame to take a 31-15 lead after one. Ms. Stewart paved the way with 15 points on 5-of-7 shooting, including 2-of-2 from 3-point range.

Chicago responded in the second quarter. Chennedy Carter, who received a flagrant foul after knocking down Indiana Fever rookie Caitlin Clark on Saturday, scored 10 of her 15 first-half points in the quarter. The Sky outscored the Liberty 33-18 in the frame and entered the break trailing 49-48. — Reuters

Ohtani’s interpreter pleads guilty

SHOHEI OHTANI — JAYNE KAMIN-ONCEA/USA TODAY SPORTS/REUTERS

JAPANESE baseball great Shohei Ohtani’s former interpreter pleaded guilty on Tuesday to stealing nearly $17 million from the athlete’s bank account to pay off his own gambling debts, according to US prosecutors.

Ippei Mizuhara, the onetime translator and de facto manager of the Los Angeles Dodgers’ power-hitting pitcher, pleaded guilty in a deal that had been announced last month, a US Attorney spokesperson said. Sentencing will be on Oct. 25.

Mr. Mizuhara’s lawyer declined to comment.

“The fraud was deep and the fraud was extensive,” US Attorney Martin Estrada said at a press conference after Mizuhara’s plea.

A 33-page record of the deal, in which Mr. Mizuhara, 39, agreed to plead guilty to one count of felony bank fraud and one count of subscribing to a false tax return, was previously filed in US District Court in Los Angeles. — Reuters

‘Ambitious’ PEDP goals to be adjusted on weak global growth

PHILSTAR

By Justine Irish D. Tabile, Reporter

THE TARGETS set in the Philippine Export Development Plan (PEDP) may have to be tempered to reflect slower global economic growth, according to the Department of Trade and Industry.

Bianca Pearl R. Sykimte, director of the Export Marketing Bureau and executive director of the Export Development Council, said that the PEDP export targets will be subject to “recalibration.”

“We will, but timing-wise, we are not yet able to explore the recalibration of targets. But we had discussions already, and we are only waiting for the timing,” Ms. Sykimte told reporters on the sidelines of the Auto Parts and Vehicles Expo on Wednesday.

“We might temper them because when we were drafting the PEDP, at the time we were recovering from the pandemic, there was an upward trend,” she said, adding that the need for them to be toned down became apparent with inflation, the geopolitical crisis, and slower global economic growth.

She said however that export targets set out in the Philippine Development Plan (PDP) remain achievable.

“We issued the PDP first, which is why its targets were more tempered. In fact, in terms of PDP targets, we are actually hitting them,” she said.

“The PEDP is really intended to be more ambitious,” she added. “But the scenario that we were expecting at the time we were drafting the PEDP was more favorable.”

Last year, total exports of $103.6 billion missed the $126.8 billion goal laid down in the PEDP but surpassed the $100.9 billion set under the PDP.

The PEDP expects merchandise and services exports for 2024 to hit $143.4 billion, a much more aggressive estimate than the $107-billion export target under the PDP.

The Philippine Statistics Authority reported that exports of goods in the first quarter amounted to $17.98 billion, up 4.8% from a year earlier.

Ms. Sykimte said that although the semiconductor industry, which accounts for the majority of exports, is expected to recover this year, the performance of agricultural exports will hinge on international prices.

“Luckily for semiconductors, we’re expecting an uptick this year. But of course, we also have a big agricultural resource base that is dependent on international prices,” she said.

“For copper, international prices are decreasing, and for coconut, we’re looking at what will be the trend for the year because these are the driving export figures for resource-based export products,” she added.

Auto industry facing global cost pressures, weak demand — DTI

REUTERS

THE Department of Trade and Industry (DTI) said the auto industry is facing cost pressures and weak consumer demand in major global markets.

At the opening ceremony of the Auto Parts and Vehicles (APV) Expo on Wednesday, Bianca Pearl R. Sykimte, director of the Export Marketing Bureau (EMB), said these pressures are weighing on the growth of the industry.

Citing Euromonitor International’s Automotive Global Industry Report, she said growth of the automotive industry will be weak until 2027, even though it has recovered from the supply shocks experienced during the pandemic.

“Significant cost pressure is expected to remain due to rising labor costs and the higher investment and research and development costs associated with the production of electric vehicles,” Ms. Sykimte said.

“Supply chain optimization efforts are expected to continue because of geopolitical tensions. Car manufacturers are anticipated to create smaller networks of semi-independent suppliers to reduce risk,” she added.

She said that manufacturers are also expected to become more vertically integrated by collaborating more with mining, chemical, and technology companies.

“Rising operating costs and the need for large-scale investment are expected to continue to drive consolidation in the automotive industry … Companies are expected to form alliances and intensify acquisitions of smaller components,” she added.

The three-day APV Expo is the inaugural edition and was organized by EMB and the Philippine Exporters Confederation, Inc. (Philexport).

According to Ms. Sykimte, the event will give the industry a chance to connect with potential partners.

“Platforms like this provide the opportunity to learn from and benchmark with other industry players and experts as we continuously develop and position the Philippines as a regional hub for sustainability, connectivity, and innovation-driven manufacturing and services,” she said.

Philexport President Sergio R. Ortiz-Luis, Jr. said the expo will also be a venue “for domestic manufacturers and exporters of auto parts and accessories to learn from their counterparts abroad, while also showcasing their own capacities.”

The event is expected to attract over 4,000 potential buyers and sellers, as well as more than 120 regional and international exhibitors.

Meanwhile, Transportation Undersecretary for Road Transport and Infrastructure Jesus Ferdinand D. Ortega said that the auto parts and vehicle industry is key component of the government’s Public Utility Vehicle Modernization Program.

“Together with quality vehicles, what we need are quality parts. These are vehicles and parts not for private use but for livelihood. So I think these kinds of venues will help us look for the quality that is needed,” Mr. Ortega said.

He added that more manufacturers will be accredited to drive growth in local production.

“What’s good news here is that we will be amending our department order (calling for more) after-sales service to ensure that quality parts needed for these vehicles will be available for years to come,” he said. — Justine Irish D. Tabile

Climate Investment Funds backs PHL’s $500-million coal-to-RE transition plan

PEXELS-PIXABAY

THE BOARD of the Climate Investment Funds (CIF) has endorsed a $500-million financing package that will support the Philippine transition from coal to renewable energy (RE).

The CIF said the package consists of $475 million in loans and $25 million in grants.

“This endorsement represents a major achievement in the Philippines’ journey away from coal and towards a clean energy future,” CIF Chief Executive Officer Tariye Gbadegesin said in a statement on Wednesday.

Ms. Gbadegesin said that the financing “will help ensure private sector buy-in, increased renewable energy development, and a just transition, for the benefit of the Filipino people and our planet.”

CIF said overall funding for the transition is expected to exceed $2.3 billion, with contributions from the Asian Development Bank (ADB), the World Bank, and the public and private sectors.

CIF is one of the world’s largest multilateral funds helping low- and middle-income countries adapt to and mitigate climate change.

“Together with the International Finance Corp. and the World Bank, we are committed to supporting the Philippines in achieving a just and inclusive energy transition that is a win for communities, the environment, and the economy,” according to Scott Morris, ADB vice-president for East Asia, Southeast Asia, and the Pacific.

The $500-million CIF package is included in the Philippines’ Accelerating Coal Transition (ACT) investment plan.

The plan calls for the early retirement or repurposing of Mindanao coal-fired power plants.

The Philippines plans to accelerate the retirement of up to 900 megawatts (MW) of existing coal generation capacity by 2027.

As of March, coal-fired power plants supplied 44.1% of the country’s mix, with combined capacity of 12,556 MW.

Through the ACT investment plan, the Philippine government “will progress their Nationally Determined Contribution, having committed to a 75% reduction in (greenhouse gas) emissions by 2030,” CIF said.

The funding will also support efforts to add 1,500 MW of renewable energy capacity by 2030, CIF said.

The Philippines aims to raise the share of renewable energy in the power mix to 35% by 2030 and 50% by 2040.

“The Philippine government’s commitment to energy transition through the CIF ACT Investment plan is commendable,” said Ndiame Diop, World Bank country director for Brunei, Malaysia, Philippines and Thailand.

“The World Bank looks forward to supporting the government’s efforts to establish the enabling policy and regulatory environment and scale up investments for a just, sustainable energy transition,” he added. — Sheldeen Joy Talavera

Negros sugarcane crop yields could fall due to Kanlaon ash

PHILSTAR FILE PHOTO

THE Sugar Regulatory Administration (SRA) said that the ash ejected during the Kanlaon Volcano eruption could affect sugarcane yields on Negros Island due to increase in the acidity of the soil.

“With the current results after the ash fall, if this is not washed out by rains, we will need soil rejuvenation in affected sugar lands to bring it back to the ideal state, and that is a long term (project),” SRA Administrator Pablo Luis S. Azcona said in a statement on Wednesday.

Tests in the area around the volcano yielded pH readings of 4.14 for the cane leaves and 5.06 for the soil. A pH reading of below 7 indicates acidity.

The reading of 6.48 pH last week, before the Monday eruption, “should have been ideal,” he said.

Citing a report, the SRA said that the more immediate impact of volcanic ash is physical damage to the leaves, reducing their capacity for photosynthesis, as well as disruption of the chemical makeup of the soil, which can all lead to reduced yields.

“It is too early to tell whether the volcanic ash will cause so much damage on crops as it has been raining on the affected places and so hopefully the acidity will be diluted,” Mr. Azcona said.

The SRA added that long-term effects on crops could include nutrient imbalance in the soil, compaction, erosion and chemical leaching.

“About 23,000 hectares in four sugar mill districts may have been affected by the volcanic eruption,” it said.

The SRA’s research and development arm had recommended the use of cover crops, irrigation by washing off plants and soil, and applying lime or organic matter to neutralize soil pH if ash fall continues.

The SRA had sampled cane fields in La Castellana, Moises Padilla, Pontevedra and La Carlota City, all in Negros Occidental. — Adrian H. Halili

BFAR: More LGUs to be enlisted in illegal fishing monitoring scheme

PHILIPPINE STAR/ MICHAEL VARCAS

THE Bureau of Fisheries and Aquatic Resources (BFAR) on Wednesday said it hopes to enroll more municipalities in the use of its Illegal, Unreported, and Unregulated (IUU) fishing monitoring system.

“We have more than 900 coastal municipalities. Right now, ang gumagamit ay nasa 395 (current users are 395), so we are looking at expanding the number of local government units using (our system),” BFAR Chief Information Officer Nazario C. Briguera told reporters.

The IUU Fishing Index and Threat Assessment Tool (I-FIT) determines the vulnerability of communities to IUU fishing.

“The I-FIT data highlights a broader spectrum of the IUU fishing that is meant to serve as a benchmark in assessing the country’s exposure to IUU fishing, which should serve as the criterion for monitoring progress,” BFAR OIC Director Isidro M. Velayo, Jr. said.

Trade agreements, particularly with the European Union (EU), require the Philippines to observe international norms for labor rights, human rights, and illegal fishing, among others, making IUU monitoring a key component in keeping the Philippines eligible for trade privileges.

The BFAR also launched the Fisheries Sharing Hub on Investigation, Enforcement, Litigation, and Detection System (FishSHIELDS) which equips local enforcers digital tools to identify, prevent, and apprehend IUU fishing cases.

The monitoring system was developed in partnership with the US Agency for International Development.

Mr. Briguera said that the I-FIT platform will help diagnose the prevalence of IUU fishing in a particular area, while FishSHIELDS serves as the response system for illegal fishing reports.

“It does not need to be online; it can be offline. And then it will be received by fisheries personnel or law enforcers. From there, there will be coordination in the local government units (LGUs) for a real-time response,” he added. — Adrian H. Halili

Poverty reduction to require human capital investment — WB

PHILIPPINE STAR/EDD GUMBAN

THE GOVERNMENT must improve access to education and healthcare and invite more private sector participation in human capital investment to bring the Philippine poverty rate down to the single digits by 2028, the World Bank (WB) said.

“The country still faces challenges to ensure that the gains from robust economic growth are distributed evenly,” the bank reported in its Philippine Economic Update.

“Ensuring that the gains from long-term growth are sustained and distributed more evenly requires addressing gaps in connectivity (both digital and physical), access to basic services such as in health and education, and private sector participation,” the WB said.

The government of President Ferdinand R. Marcos, Jr. is hoping to cut the poverty rate to single-digit levels, to about 8% by the end of his term in 2028. This would be the equivalent to bringing nearly 14 million people out of poverty.

To reduce poverty, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort cited the need to boost productivity in agriculture, which accounts for nearly a quarter of the workforce.

“Increased mechanization, use of higher-yielding and resilient seed, use of the best global technology, more irrigation, cold storage, and other infrastructure to increase farmers’ incomes would help pull more people out of poverty,” he said via chat.

The Philippine Statistics Authority reported last year that farmers and fisherfolk were the poorest segments of society in 2021, with poverty rates of 30% and 30.6%, respectively.

Foreign direct investment could upgrade labor-heavy sectors like manufacturing and industries with foreign technology, Mr. Ricafort added.

He also cited education as the “best equalizer that helps/lifts more people from poverty.”

A Social Weather Stations conducted in March showed that nearly half (46%) of Filipinos considered themselves poor. — Beatriz Marie D. Cruz

NGCP raises yellow alert anew over Luzon grid

JEROME CMG-UNSPLASH

THE Luzon grid was again placed on yellow alert on Wednesday amid continuing outages and limited output at some power plants, the National Grid Corp. of the Philippines (NGCP) said.

In an advisory early Wednesday, the NGCP raised the yellow alert over Luzon between 1 p.m. and 4 p.m. and 6 p.m. and 10 p.m.

Peak demand was 13,535 megawatts (MW) against available capacity of 14,254 MW.

Some 15 power plants were classified as experiencing forced outages, with five running at derated capacity, leaving 1,765.6 MW unavailable to the grid.

The derated plants include coal-fired Masinloc 1 and Masinloc 2, as well as gas-fired Ilijan A.

The NGCP also said the Angat Main hydropower facility was unavailable due to low water levels while forced outages were declared at the Pagbilao 2 and San Lorenzo 50 plants.

A yellow is issued when the operating margin is insufficient to meet the transmission grids’ contingency requirement.

The yellow alert for the Luzon grid was lifted by the NGCP at 1 p.m. on Wednesday.

“Early lifting of grid alert status is due to the decrease in forecast demand,” the grid operator said.

The Visayas and Mindanao grids were operating normally on Wednesday, the NGCP said.

Energy Undersecretary Rowena Cristina L. Guevara has noted the possibility of a red alert this week due to continuing elevated heat and forced outages at some power plants. — Sheldeen Joy Talavera

Grasping the intangible: A transfer pricing perspective

As new technology continues to reshape the global business landscape, the intangible assets created by them play a crucial part in the operations of multinational enterprises. Compared to tangible assets such as human resources or property that can be seen or touched, intangibles refer to ideas, know-how, or rights that can be transferred or used despite having no physical characteristics. These intangibles contribute to value creation and growth of companies, and provide a competitive advantage to improve and maintain their market position.

However, the reliance on intangibles to conduct business and generate profit has also led to new challenges for tax systems that were originally anchored on legal ownership and physical location. The lack of physical presence has resulted in complexities in determining where the income is generated and where it should be taxed. With the ongoing developments in the international tax system, understanding the nature of intangibles and the relevant transfer pricing (TP) considerations are important for both multinational companies and tax authorities alike.

INTANGIBLES IN THE CONTEXT OF TP
Intangible assets are defined as things that are neither physical nor financial assets, capable of being owned or controlled for use in commercial activities, and whose use or transfer would be compensated had it occurred between independent parties in comparable circumstances.

This definition from the OECD TP Guidelines does not solely rely on accounting or legal interpretations, which means that the existence of intangibles for TP purposes is not merely determined by whether it is recorded in the balance sheet or has legal protection. For instance, intellectual property such as patents and trademarks can be registered while know-how and trade secrets are commonly not registered nor disclosed in the financial statements for confidentiality purposes. Both examples are nonetheless considered intangibles from a TP perspective.

PHILIPPINE TP RULES ON INTANGIBLES
The Bureau of Internal Revenue (BIR) recognizes that related party transactions involving intangible assets are of a special nature, as described in Revenue Audit Memorandum Order (RAMO) No. 1-2019, or the Philippine TP Audit Guidelines.

Under the RAMO, intangible assets may be classified as manufacturing or marketing intangibles. Manufacturing intangibles are generally created through research and development, and the developer aims to be remunerated for its expenditure and to seek profit through the sale of goods, license agreements, or service contracts. Marketing intangibles, on the other hand, are created through the functions of marketing, distribution and post-sale services. These typically include trademarks, customer lists, distribution channels, a unique name, symbol or picture with important promotional value for the products or services, etc.

Chapter VI of the RAMO further identified five steps in testing controlled transactions involving intangibles:

1) Identify the existence of every intangible asset that makes a contribution to the success of the product in the market;

2) Identify the value of intangible assets and determine which parties contributed to the formation of the intangible assets;

3) Study whether there has been a transfer of intangible assets in the transaction;

4) Determine the arm’s length compensation for each intangible asset that is transferred; and

5) Determine the method that can be used in evaluating the arm’s length nature of transfer of intangible assets.

OWNERSHIP, TRANSFER, AND EVALUATION OF INTANGIBLES
After identifying its existence, another important consideration in analyzing intangibles is its ownership. In order to determine how the costs and benefits from these intangibles can be divided among related parties, it is crucial to know who the legal and economic owners are. However, according to the OECD, legal ownership of intangibles by itself does not automatically mean a company has the right to ultimately to retain the returns. Instead, those entities that contribute to the development, enhancement, maintenance, protection and exploitation of the intangibles should receive a corresponding arm’s length compensation.

A functional analysis is therefore essential to identify the economically significant activities and understand how the transferred intangibles interact with other functions, assets, and risks that comprise the business. Such analysis would also be able to explain whether or not there has been an actual transfer between parties.

The most common example of a transfer of an intangible is through licensing arrangements, wherein the company owning the rights over a technology or brand would license it to a related party and receive royalty payment in exchange. However, intangible asset transfers are not always as straightforward as they may seem, since multinational companies can restructure their operations depending on their needs. Sometimes, it may involve transfers of one or more intangibles that could not be separately evaluated.

Due to the special nature of intangibles, it may be difficult to determine the pricing at the time of the arrangement. This also raises challenging issues on comparability and on the selection of TP methods.

Intangibles mostly have unique characteristics which must be considered in conducting a comparability analysis, since the potential to generate future expected benefits could vary depending on the circumstances. Generally, any of the five OECD TP methods may be appropriate but it is most commonly useful to apply the Comparable Uncontrolled Price method and the Transactional Profit Split method. For instances when there are no reliable comparable transactions that can be identified, the use of valuation techniques may also be appropriate to estimate the arm’s length price.

Selecting the most appropriate TP method heavily relies on a functional analysis to determine how the returns derived from and the costs related to intangibles can be allocated between parties. In evaluating the transfer price, careful consideration must be done to ensure compliance both in domestic and international jurisdictions in which the multinational entities operate. With the currently evolving tax environment tied to the complexity of intangibles, multinational groups may find it prudent to review their strategies as early as possible and align them with the principles and guidance laid out in the Philippine TP regulations and the OECD Guidelines. Likewise, it is recommended that companies adopt a proactive stance in preparing robust documentation and analyses that will best serve as defense in the event of tax and TP disputes.

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.

 

Angelika Kristina Montejo is an assistant manager at the Transfer Pricing group of Isla Lipana & Co., the Philippine member firm of the PricewaterhouseCoopers global network.

angelika.kristina.montejo@pwc.com

Philippines told to work with ASEAN in resolving sea dispute with China

BRP SIERRA MADRE, a marooned transport ship which Philippine Marines live in as a military outpost, sits on the disputed Second Thomas Shoal, part of the Spratly Islands in the South China Sea. — REUTERS

By John Victor D. Ordoñez, Reporter

THE PHILIPPINES should hold more dialogues with the Association of Southeast Asian Nations (ASEAN) on its sea dispute with China, according to the Senate president, who said diplomacy is still Manila’s best option to ease tensions.

“Our Department of Foreign Affairs (DFA) should try to bring this issue to the ASEAN, which the Philippines is a part of,” Senate President Francis “Chiz” G. Escudero told reporters in Filipino on Wednesday.

Suing China before the Permanent Court of Arbitration in the Hague is always an option, he added.

“ASEAN is not known to be a political association, but this is still a forum to discuss whatever is happening in this part of the region,” Mr. Escudero said.

Tensions between the Philippines and China have worsened in the past year as Beijing continues to block resupply missions to Second Thomas Shoal, where Manila grounded a World War II-era ship in 1999 to assert its sovereignty.

China has issued a policy allowing its coast guard to detain people it deems trespassers in disputed areas.

Senators on Tuesday criticized China’s coast guard for seizing and dumping food and other supplies meant for a handful of Filipino soldiers at Second Thomas Shoal on May 19.

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

“I hope our country won’t hit back,” Mr. Escudero said. “No one wants any kind of war to break out in our region, especially if the battleground is our country.”

China’s new policy, which the Philippine Coast Guard said is illegal, allows its coast guard to detain foreigners it suspects of violating its exit-entry rules including in disputed areas of the South China Sea for up to 60 days without a trial.

Foreign vessels may be seized, and foreigners detained if they are accused of illegal entry and exit, of helping others “to illegally enter and exit the country,” and of “endangering national security and interests.”

“China is trying to flex its muscles in that area and uplift and alleviate its status economically as a major superpower,” Senate Majority Leader Francis N. Tolentino said in a statement.

“We now see an… increase in the horizontal gray zone tactics being used by China. I think the DFA should now focus not just on mere diplomatic protests but possible violations of international humanitarian laws,” he added.

China’s Foreign Ministry on Monday said the United States has played an “extremely dishonorable role” in backing Manila and using the South China Sea dispute to provoke relations between China and the region.

Beijing is willing to continue working with members of ASEAN including the Philippines to manage differences at sea and deepen sea-related cooperation, the agency said.

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

At the end of last year, ASEAN foreign ministers issued a statement saying they were closely following recent tensions in the South China Sea and countries with claims over the waterway, vowing to push for peaceful solutions to the disputes.

In his visit to Manila in April, Singapore Foreign Minister Vivian Balakrishnan said Singapore and the Philippines would push for a code of conduct in the South China Sea to ease Chinese aggression in the waterway.

Indonesian Minister of Foreign Affairs Retno L.P. Marsudi has said the Philippines and Indonesia have agreed to work together in crafting a code of conduct.

The ASEAN and China have been in talks as far back as 2002 to craft the code, with both sides seeking to fast-track the measure.

In November, Mr. Marcos said he had approached Malaysia and Vietnam to discuss crafting a code of conduct, citing limited progress in striking a broader regional pact with Beijing.

“Imminent war is another matter if that happens in our own land,” Mr. Escudero said. “I hope this heat will subside and the dialogue will still go through.”

NTC asked to take down X posts with adult content

STOCK PHOTO | Image by Julian Christ from Unsplash

By Kenneth Christiane L. Basilio and Kyle Aristophere T. Atienza, Reporter

THE NATIONAL Telecommunications Commission (NTC) should take down posts on X with sexual content, a congressman said on Wednesday, after the social media platform released a policy allowing adult content.

“X and Elon Musk may not be aware of our laws on cybercrime, sexually explicit content and online sexual abuse and exploitation of children,” Party-list Rep. Angelica Natasha Co said in a statement. “Sexual content on X should be taken down upon proper petition to the NTC.”

X on Tuesday said it would allow users to post sexual content as long as it is clearly labeled as adult content.

The policy could make it easier for sex offenders to exploit unwitting Filipinos, Ms. Co said.

BusinessWorld got an automated reply from X after it sought comment using a generic X e-mail for media.

Adult content is “material depicting adult nudity or sexual behavior that is pornographic or intended to cause sexual arousal,” according to X. Adult content is restricted for children and adults who opt not to see it.

The social media platform also prohibits nonconsensual adult content and the exploitation of minors.

Under the Philippines’ Cybercrime Prevention Act of 2012, “any lascivious exhibition of sexual organs or sexual activity” may be punished with a prison term as long as 12 years.

“The implementors of the laws I cited should adjust and mount countermeasures to the policy of X and its effects,” Ms. Co said.

She said law enforcers should monitor X, which could be used as a platform to transact “illegal drugs… and other criminal activities.”

Also on Tuesday, Interior Secretary Benjamin D. Abalos, Jr. said the government is stepping up its fight against child sexual abuse with a plan to empower local officials in handling these cases.

The government will boost desks that deal with violence against women and children, he told a news briefing.

The country has been tagged as a global hotspot for child pornography.

Local governments would also conduct seminars and train people against online sexual abuse and exploitation of children, Mr. Abalos said. They would be asked to adopt a “template ordinance” against online child sexual abuse, he added.

Jose Dominic F. Clavano IV, spokesman of the Department of Justice, said tapping village leaders and social workers is among the government’s six pillars in the campaign against online child sexual abuse.

Another is aftercare services for victims, and these would all be operationalized through an executive order to be signed by President Ferdinand R. Marcos, Jr., he told the same briefing.

Village officials, community workers, law enforcers, prosecutors and judges should all be aligned and well-informed about the process of monitoring and building cases against perpetrators, Mr. Clavano said, citing an order from the President.

Of the 214 case referrals from the Philippine Internet Crimes Against Children Center, 413 victims have been rescued in 98 operations. Eighty-eight suspects have been arrested.

At least 38 people were convicted from 2019 to 2024, Mr. Clavano said.

In 2022, one of 100 Filipino children were trafficked to produce child pornography, according to a report from the International Justice Mission, citing its study with the University of Nottingham Rights Lab.

Cases were largely driven by demand from the US, United Kingdom, Australia, Canada and Europe, it said.

It said governments, tech companies and financial institutions should work together to address the growing problem.

“There are statistics from all over the world, let’s say that maybe one out of 10 children undergoes abuse before the age of 18, and these children as they grow, they have to live with the trauma,” Mr. Clavano said.

Mr. Abalos ordered village officials to report complaints to the police.

Sex abuse cases should not be settled by village officers, he said, adding that negligent officials would be penalized. He added that his agency would push a policy penalizing consumers of child porn.

1...1,8911,8921,893...12,990Page 1,892 of 12,990
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube