Net Foreign Direct Investment
NET INFLOWS of foreign direct investments (FDIs) into the Philippines rose by 5.5% year on year in July to hit a five-month high, the Bangko Sentral ng Pilipinas (BSP) said on Thursday. Read the full story.
Diego Luna, Gael Garcia Bernal bring boxing drama to Hulu
Mexican actors and childhood friends Diego Luna and Gael García Bernal have paired up again, to deliver Hulu’s first Spanish-language series, La Máquina.
Mr. Luna and Mr. Garcia Bernal have been best friends since childhood and have worked on several projects including Y Tu Mamá También in 2001 and Rudo y Cursi in 2008.
After a decade of creating and producing, Mr. Luna believes the timing is perfect.
“Ten years now make sense in a way, you know, because we couldn’t be more ready, basically and … it feels like the right moment,” Mr. Luna said. “It means a lot, you know, it’s … the time to do it.”
La Máquina delves into the world of professional boxing, with Mr. Garcia Bernal playing Esteban, a boxer who, despite his knowledge and passion for the sport, is grappling with the realities of retirement due to his body’s limitations. Mr. Luna plays his manager Andy, who places a higher value on success and money than life.
The show began streaming on Hulu on Wednesday.
The actors reflected on their friendship and the opportunities that have come their way.
“There is that little moment of, well, this is crazy. Like … who would have thought that we were … riding on the bicycles together and all of a sudden we’re doing this. It’s crazy,” Mr. Garcia Bernal said.
Mr. Luna added that “it’s important to allow that, you know, to come. … There’s something beautiful about having another opportunity to tell another story.”
Director Gabriel Ripstein said the chemistry between the two actors on set was both a benefit and a drawback.
“It became a challenge at certain points, where we had to like hit the dramatic scenes and these guys would just go off and it was very contagious,” Mr. Ripstein said. “It became like a snowball of comedy and my job many times was — OK guys, let’s bring it down because … we need to shoot.” — Reuters
DoE: Green energy auction finished within the year
THE Department of Energy (DoE) has assured lawmakers that the third round of the green energy auction (GEA-3) will be completed before the end of the year, anticipating additional renewable energy capacities.
“Our target for the Green Energy Auction 3 is to finish it before the end of the year such that the pumped storage hydro, [more than] 3,000 megawatts, will be able to come in five years from now,” Energy Undersecretary Rowena Cristina L. Guevara told a Senate budget hearing on Wednesday.
The GEA program aims to promote renewable energy as one of the country’s primary sources of energy through competitive selection.
Renewable energy developers compete for incentivized fixed power rates by offering their lowest price for a certain capacity.
“We’re going to be issuing the terms of reference soon… the performance or nonperformance of projects will be included,” Ms. Guevara said.
Sen. Pilar Juliana “Pia” S. Cayetano said that investors are anticipating the upcoming round of GEA.
“I understand we have investors who are ready to get it done. And we need it because this will address Senator Risa’s (Hontiveros) and my concern, and all the other renewable energy advocates’ concern because we’ll have the storage,” she said.
“We keep on saying that is the problem why we cannot fully embrace renewables as fast as we want to,” she added.
The DoE staged GEA-1 in 2022 and attracted 1,966.93 MW worth of bids for renewables, while GEA-2 was held last year, where 3,440.76 MW worth of service contracts were awarded.
In February, the department said that it would auction off renewable energy technologies worth a total capacity of 4,399 MW.
GEA-3 will cater to non-feed-in-tariff (non-FIT) eligible renewable energy technologies such as geothermal, impounding hydro, and pumped storage hydro.
The upcoming auction will also cater to run-of-river hydro, which is a FIT-eligible renewable energy technology.
Broken down, estimated capacities for non-FIT eligible renewable energy technologies are 699 MW from impounding hydro, 3,120 MW from pumped storage hydro, and 380 MW from geothermal.
Capacities from impounding hydro and pumped storage hydro are targeted to be delivered by 2028 to 2030 and 2024 to 2030 for geothermal.
An estimated 200 MW of capacity is expected to be auctioned from run-of-river hydro, with a target delivery starting in 2026 to 2028. — Sheldeen Joy Talavera
How PSEi member stocks performed — October 10, 2024
Here’s a quick glance at how PSEi stocks fared on Thursday, October 10, 2024.
Marcos urges ASEAN, China to speed up dialogues on sea code of conduct
PHILIPPINE President Ferdinand R. Marcos, Jr. pressed Southeast Asian leaders and China at a regional summit on Thursday to urgently speed up negotiations on a code of conduct for the South China Sea, while accusing Beijing of harassment and intimidation.
Speaking in Laos to leaders of the Association of Southeast Asian Nations (ASEAN) and Chinese Premier Li Qiang, Mr. Marcos said substantive progress needed to be made and all parties must “be earnestly open to seriously managing differences” and reducing tension.
China and US ally, the Philippines have been at loggerheads over a succession of confrontations near disputed features in the South China Sea, with Manila accusing China’s coast guard of aggression and Beijing furious over what it calls repeated provocations and territorial incursions.
The rows have been heated and have raised regional concerns of an escalation that could eventually involve the United States, which has a 1951 defense treaty that commits it to defend the Philippines if it is attacked.
“There should be more urgency in the pace of the negotiations of the ASEAN-China code of conduct,” Mr. Marcos told the meeting, according to a statement from his office.
“It is regrettable that the overall situation in the South China Sea remains tense and unchanged. We continue to be subjected to harassment and intimidation.”
In a statement, House Speaker Martin G. Romualdez said Mr. Marcos cited “recent harassment and aggressive actions” by the China Coast Guard against Philippine vessels and aircraft.
Mr. Marcos stressed the need for a “concerted and urgent effort to adopt measures to prevent their recurrence.”
The Bureau of Fisheries and Aquatic Resources (BFAR) on Tuesday confirmed reports that Chinese vessels fired water cannons at its two ships delivering supplies for Filipino fishermen in Scarborough Shoal, which Manila calls Bajo de Masinloc.
Mr. Marcos said despite China’s aggression, his country would continue to exhaust all diplomatic means to manage the tensions.
“The House of Representatives stands solidly behind President Marcos in his steadfast efforts to secure a common ground for all stakeholders towards greater cooperation and security in the South China Sea,” said Mr. Romualdez, who was present at the summit.
“This summit isn’t just about foreign policy. The President is working hard to safeguard our natural resources, which directly affects our fishermen and the communities that depend on them for their livelihood.”
On the basis of its old maps, China claims sovereignty over almost the entire South China Sea and has deployed a fleet of coast guard deep into Southeast Asia, including the exclusive economic zones of Malaysia, Brunei, the Philippines and Vietnam.
The idea of a maritime code was first agreed between China and ASEAN in 2002 but the formal process of creating one did not start until 2017.
Progress has since been painstakingly slow, with years spent discussing the framework and modalities for negotiations and guidelines issued to try to speed it up. Some ASEAN members are concerned the code of conduct will not be legally binding.
Marcos voiced frustration that parties involved could not agree on many things, adding “the definition of a concept as basic as ‘self-restraint’ does not yet enjoy consensus.”
ASEAN leaders will be joined on Thursday by US Secretary of State Antony Blinken, Indian Prime Minister Narendra Modi, Japan’s new Prime Minister Shigeru Ishiba, and Russian Foreign Minister Sergei Lavrov, before Friday’s East Asia Summit plenary gathering.
South Korean President Yoon Suk Yeol and Japan’s Ishiba were scheduled to hold their first summit in Laos on Thursday, as the neighbors seek to deepen security and economic ties.
TYPHON MISSILE SYSTEM
Meanwhile, Senate President Francis G. Escudero on Thursday said there are no plans yet to “permanently” keep Washington’s midrange missile system left in Manila in April, following joint exercises between their militaries amid growing tensions with Beijing.
“My understanding of the US defense system was only in connection with exercises being conducted with the United States here and that there is no intention as of yet to keep it here permanently,” he told a news briefing.
Reuters reported in September that the US has no immediate plans to withdraw its Typhon missile system from the Philippines and is studying its use in a regional conflict.
The US Army flew the Typhon, which can launch missiles including SM-6 missiles and Tomahawks with a range exceeding 1,600 kilometers (994 miles), to the Philippines in April in what it called a “historic first” and a “significant step in our partnership with the Philippines.”
Philippine Defense Secretary Gilberto Eduardo Gerardo C. Teodoro, Jr. has said Manila is considering all security options that would deter Chinese aggression in the South China Sea.
Beijing and Moscow have criticized the move to keep the missile system in Manila, saying it could fuel an arms race in the region.
DIPLOMATIC ROUTE
Also on Thursday, Senator Ana Theresia N. Hontiveros pushed for the government to double its efforts to pursue diplomatic solutions.
“If I’m not mistaken, all members around the South China Sea are in favor of a code of conduct,” she told a separate news briefing in mixed English and Filipino.
“It is just China that is against a multilateral process since they want a bilateral process.”
Leaders of the ASEAN discussed progress toward a South China Sea code of conduct and agreed that the United Nations Convention on the Law of the Sea (UNCLOS) should be followed in settling sea disputes, Thailand Foreign Ministry spokesman Nikorndej Balankura said on Wednesday.
A 2016 arbitral ruling that voided China’s claims in the South China Sea said the shoal is a traditional fishing ground for Filipino, Chinese and Vietnamese fishermen. China has controlled the shoal since 2012.
The Philippines has been unable to enforce the ruling and has since filed hundreds of protests over what it calls encroachment and harassment by China’s coast guard and its vast fishing fleet.
Ms. Hontiveros also agreed the country should boost domestic defense capabilities over keeping Washington’s missile system, citing the recently signed Republic Act No. 12024, Self-Reliant Defense Posture Revitalization Act.
Mr. Marcos on Tuesday signed into law a bill requiring the Philippine government to pursue a defense posture reliant on local manufacturers.
Senator Joseph Victor G. Ejercito on Wednesday pushed funding of at least P100 billion for the Philippine military’s modernization program to acquire more missile systems and fighter jets to deter Chinese aggression at sea.
This also comes amid the Philippines’ two-week military exercises with the United States, and four other countries, Australia, Japan, Canada, and France, which is seen building the Philippines’ capacity to act in its own defense. — John Victor D. Ordoñez and Kyle Aristophere T. Atienza with Reuters
ASEAN leaders explore new ways to address Myanmar political crisis
PRESIDENT Ferdinand R. Marcos, Jr. on Thursday said Southeast Asian leaders were exploring new strategies including informal talks to address the political crisis in junta-led Myanmar.
While a five-point consensus has been pushed for since 2021, it has “not been very successful” in improving the situation in Myanmar, he told Philippine reporters on the sidelines of the 44th and 45th summits of the Association of Southeast Asian Nations (ASEAN) in Laos, based on a transcript from his office.
“So, we are trying to formulate new strategies.”
Mr. Marcos said the Philippines’ position on the consensus remains the same, there should be new ways to “move forward.”
The consensus called for an immediate end to violence in Myanmar, dialogue among all involved parties, the appointment of a special envoy, humanitarian assistance from ASEAN, and a visit to the junta-led country by a special envoy.
The ASEAN has barred Myanmar’s junta from attending its summit after the 2021 coup, which saw the arrest of democratically elected leaders, including Nobel laureate Aung San Suu Kyi, due to its failure to comply with the consensus.
In an unexpected development, the Myanmar junta sent a “non-political” delegate to the high-level talks this week.
STABILIZING FORCE
The ASEAN bloc remains a “stabilizing force” in Southeast Asia despite making only incremental progress on key issues, including Myanmar’s civil war and the drafting of a code of conduct for the South China Sea, its secretary-general said.
Leaders of the 10-member ASEAN are meeting in Laos this week with heads of government and top diplomats from partners including the United States, China, Japan and Russia.
The bloc, home to over 685 million people and representing around 8% of global exports, has been unable to push resolutions on difficult regional issues, which analysts say risks undermining ASEAN’s central role in its backyard.
But ASEAN’s Secretary-General Kao Kim Hourn insisted the grouping has constantly pushed for dialogue and diplomacy, ensuring that negotiations move ahead.
“ASEAN has been, I would say, the stabilizing force,” the former Cambodian diplomat told Reuters in an interview late on Wednesday.
“We take the issues head on,” he said. “People always put too much emphasis on problems, but the way I look at ASEAN, we have come a long way.”
For instance, Kao Kim Hourn said, with member economies increasingly integrated and trade agreements in place with many external partners, ASEAN attracted $230 billion in new investments in 2023.
“The fact that there is confidence and trust in ASEAN, that’s why the $230-billion investment moves into ASEAN,” he said. “The future is here.”
MYANMAR IS ‘COMPLEX’
ASEAN has made little progress with its “Five Point Consensus” peace plan for Myanmar, unveiled months after a 2021 coup, but Kao Kim Hourn said the leaders of ASEAN remain adamant that the grouping will stay engaged with Myanmar.
“We need time and patience,” the secretary-general said. “Myanmar is such a complicated, a complex issue… We should not expect a quick fix.”
Conflict has raged in Myanmar, with an expanding armed resistance against the military government. Some 18.6 million people, more than a third of the population, are estimated to be in need of humanitarian assistance.
Despite losing control of wide swathes of territory and being pinned down across multiple frontlines, the junta appears to be pushing ahead with plans for an election next year, which has been widely derided as a sham.
ASEAN will continue to push for “inclusive political dialogue” among all conflicting parties in Myanmar, said Kao Kim Hourn, even as leaders look to scale up humanitarian assistance.
Thailand has offered to host an “informal consultation” on Myanmar in December among ASEAN members, some of whom are divided between those who want the junta to do more and those calling for more talks among warring parties.
SOUTH CHINA SEA DISPUTE
Another major concern for ASEAN is tension in the South China Sea, where confrontations in disputed waters continue between China and the Philippines, and more recently Vietnam.
The situation has brought renewed attention to ASEAN’s protracted negotiations with Beijing towards creating a code of conduct for the vital waterway, a process in motion since 2017.
“Until now, there have been ongoing negotiations,” Kao Kim Hourn said, “It’s not static, it’s not standstill, but things are still moving ahead.”
China claims almost the entire South China Sea, a conduit for $3 trillion of trade annually, and has deployed an armada of coast guard deep into areas claimed by ASEAN members Vietnam, the Philippines, Indonesia, Malaysia and Brunei.
While some ASEAN countries hope the code can be concluded in a few years, prospects for a legally binding text remain distant, analysts say.
“The good part is that as long as there are still dialogue and diplomacy on the table and moving forward, I think there’s a lot of hope there,” Kao Kim Hourn said. — Kyle Aristophere T. Atienza with Reuters
Over 400 PHL repatriation applications pending in Lebanon
OVER 400 Philippine applications for repatriation from war-torn Lebanon have yet to be processed by authorities there, according to Manila, as Israel continued to launch airstrikes on its Middle Eastern neighbor.
“We have around 413 pending (applications) — still to be processed by Lebanese immigration authorities,” Migrant Workers Secretary Hans Leo J. Cacdac said at a news briefing on Thursday.
He said a total of 192 Filipinos in Lebanon were ready for repatriation and were booked in different commercial flights spanning Oct. 11 to 28. Eleven of them may arrive in the Philippines as early as the weekend, he added.
There are about 11,000 documented overseas Filipino workers (OFWs) in Lebanon.
Mr. Cacdac said the Philippine government had put up 179 temporary shelters for Filipinos in Lebanon.
“The capacity is not yet filled so definitely our four shelters can still accommodate some more stayers or occupants.”
Philippine President Ferdinand R. Marcos, Jr. on Wednesday held a Zoom conference with Cabinet officials on the repatriation of Filipinos from Lebanon, which has seen over 1,000 citizens killed and 1.5 million people displaced since Israel launched its ground incursion and intensified airstrikes earlier this month.
Mr. Cacdac said the Philippine government was eyeing to raise the Alert for Lebanon to Level 4, which would trigger mandatory evacuation.
He said many overseas Filipino workers were hesitant to be repatriated because of their nature of work.
“Most of our OFWs are domestic workers running up to nearly 100%, I would say about 98% of OFWs in Lebanon are domestic workers,” he said.
“Therefore, their places of work would be the employer’s households. So, they are, should I say, devoted to or in daily service of their respective employers,” he explained.
“They might have served long enough to have a sense of loyalty and commitment to serve and to work for their employer households,” he added. “The emotional ties may be a little stronger.”
He said it’s “almost similar” to the situation in Israel, where most OFWs were caregivers.
To address concerns on loss of income, Mr. Cadac said the Department of Migrant Workers and the Overseas Workers Welfare Administration — combined — are offering as high as P150,000 upon OFWs’ arrival in the Philippines.
“That’s good for four to six months’ salary.”
Israel has vowed to conduct raids against “Hezbollah terror targets” that it said were “immediate threat” to northern Israeli communities.
The group had said it was “ready for a direct confrontation with the enemy forces that dare or attempt to enter Lebanese territory and to inflict the greatest losses on them.”
The Philippine presidential palace on Wednesday said Israeli warplanes launched over 30 overnight air raids on the southern suburbs of Beirut on Oct. 6. But there were no reported injuries or casualties among Filipinos as of Oct. 7, it added, noting that the airstrikes were focused on southern Lebanon and the southern suburbs of Beirut.
The Philippines last month joined 123 other countries in favoring a United Nations resolution urging Israel to end its occupation of Palestinian territories within a year.
Israeli settlement activities involved the transfer of its nationals “into the occupied territories, the confiscation of land, the forced transfer of Palestinian civilians, including Bedouin families,” according to the November resolution.
The settlements also involved “the exploitation of natural resources, the fragmentation of territory and other actions against the Palestinian civilian population,” among other issues. — Kyle Aristophere T. Atienza
DENR eyes at least 4,200 new mining permits, contracts next year
THE DEPARTMENT of Environment and Natural Resources (DENR) is planning on issuing at least 4,211 mining permits and contracts next year, with its focus on securing more deals on smart mining, according to the Environment secretary.
“The agency wants to strengthen public and private sector collaboration in emerging knowledge and technology-intensive industries such as smart mining,” DENR Secretary Maria Antonio J. Yulo-Loyzaga told a Senate budget hearing on Thursday.
She said that by 2028, her agency aims to have 85% of surface metallic mines to be compliant with safety and health, and environmental standards.
For next year, the DENR plans on issuing at least 715 mining contracts that comply with work program, safety, environment, and social development programs.
Citing government data, Ms. Yulo-Loyzaga said the mining industry contributed about P56.5 billion to the country’s gross domestic product in the first quarter this year, or about 0.53%.
Senators are set to deliberate on a measure that would boost the government’s share in the mining industry’s profits through a simplified five-tier royalty tax system.
Senate Bill No. 2826, sponsored by Senator Joseph Victor “JV” G. Ejercito, proposes a five-tier windfall profit system that ranges from 1- 10%. It will require large-scale miners inside mineral reservations to pay a royalty rate of 5% based on gross output.
The House of Representatives approved its version of the bill in September last year. The Department of Finance has said the government could generate about P6.26 billion in additional annual revenues from the new mining tax regime.
Mining companies currently pay corporate income tax, excise tax, royalty, local business tax, real property tax, and fees to indigenous communities. — John Victor D. Ordoñez
P10B to power rural areas pushed
A CONGRESSMAN on Thursday pushed to lodge an additional P10 billion under the National Electrification Administration’s (NEA) 2025 budget to boost nationwide rural electrification efforts.
The NEA earmarked P2.6 billion for next year’s spending, 89% lower than its P23.7 billion funding proposal to the executive branch, according to Cagayan de Oro Rep. Rufus B. Rodriguez.
“I am urging the Senate to augment the NEA budget for next year,” he said in a statement, adding the House of Representatives could push for his budget adjustment request once Congress convenes in a bicameral conference committee.
President Ferdinand R. Marcos, Jr. said during his state address last year that he is aiming to electrify all households nationwide by the end of this term. Budgetary constraints, however, could delay Mr. Marcos’ electrification goal by two to three years, Mr. Rodriguez said.
Providing more NEA funding would allow rural areas to economically prosper, he added. “Like roads, electricity is an important factor in developing country, especially remote barangays.” — Kenneth Christiane L. Basilio
DoH secretary resignation sought
THE PHILIPPINES’ top health official should step down if he fails to uphold the commitment to make healthcare affordable for Filipinos, a congressman said on Thursday, urging the Department of Health (DoH) to stay true to the promises it made to Congress before yearend.
Health Secretary Teodoro J. Herbosa and Emmanuel R. Ledesma, Jr., president of state-run Philippine Health Insurance Corp. (PhilHealth), promised the House of Representatives last month they’ll make medical care cheaper by increasing health insurance benefits while expanding its coverage, according to Party-list Rep. Wilbert T. Lee.
“What should be focused on now is the implementation of the commitment that DoH Secretary Ted Herbosa and PhilHealth Chief Mandy Ledesma signed, aimed at significantly lowering the hospital expenses of Filipinos,” he said in a statement in Filipino.
“If Secretary Herbosa has no intention of fulfilling the agreement, he should resign now,” he added.
PhilHealth and the DoH promised to institute a 50% across-the-board health benefit increase and to cover at least 80% of cancer treatment and heart operation expenses by November 2024, according to a commitment letter signed by Mr. Herbosa and Mr. Ledesma.
They also agreed to make various health diagnostic scans, such as Computed Tomography (CT) and Magnetic Resonance Imaging (MRI) free, making it part of outpatient services rendered by PhilHealth.
Meanwhile, Iloilo Rep. Janette L. Garin said amendments to the Universal Health Care Act should be taken up instead of replacing the heads of Philippine health agencies, noting the need to review “restrictive” provisions.
“We can change the PhilHealth chief a hundred times but unless we amend the law as soon as possible, Universal Health Care can never be achieved,” Ms. Garin, a former Health secretary, said. “I call on the leadership of both Houses to make the amendment… a priority.”
She cited the need to ease clinical trial restrictions on drugs and medical devices entering Philippine markets. Only a Phase III clinical trial approval would suffice for most medicines, enough to consider it “safe and efficacious.”
Clinical trials are studies to determine the effectiveness and safety of new medicines and other forms of medical treatment.
Sec. 34 of the 2019 health law mandated that pharmaceutical products and medical procedures should undergo a Phase IV clinical trial before being allowed in the country.
“With this requirement of Phase IV, Filipinos will have no recourse but to go to other countries to gain access to any breakthrough in science,” she said. “This Section 34… is just one of the many provisions deemed restrictive and detrimental to health care accessibility.” — Kenneth Christiane L. Basilio
CHR backs K-12 Curriculum bill
THE Commission on Human Rights (CHR) expressed its support for House Bill No. 9997, a proposal aimed at reducing road traffic-related accidents by incorporating road safety education into the country’s K-12 school curriculum.
According to CHR, the bill recognizes the added challenges faced by individuals with disabilities, who are at a greater risk when traveling on roads that lack disability-inclusive signage and infrastructure.
The CHR emphasized that road safety is not only a public health issue but also a human rights matter, as it directly affects individuals’ right to life, safety, and mobility, increasing awareness among students to help them become more responsible road users.
“This legislation affirms the State’s obligation to protect and promote the welfare of all road users, particularly the most vulnerable populations, such as children, persons with disabilities, and the elderly,” it added in a statement.
“To ensure a well-rounded learning experience for Filipino youth, it is vital for Congress to enact measures that enhance the understanding of every citizen’s responsibility toward road safety, starting in the classroom.” — Chloe Mari A. Hufana
Senate building now costs P31B
A SENATOR on Tuesday said construction costs of the new Senate building in Fort Bonifacio, Taguig City have ballooned to P31 billion from P8.6 billion, updating a previous estimate of P27 billion.
“We’re going to put up a new senate coordinating committee because there is too much red tape, too many levels,” Senator Alan Peter S. Cayetano told a news briefing. He said the rising costs were due to inflation over the years and changes in construction plans concerning the building.
Public Works Undersecretary Antonio V. Molano, Jr. earlier told senators that the cost had increased by about 20% to 25%, or P27 billion, including the cost of land.
The Department of Public Works and Highways earlier said the project has been delayed by 852 days due to rising costs and “variation orders.”
Senate President Francis “Chiz” G. Escudero earlier said the Senate would not be transferring to the Taguig building by September or anytime next year — John Victor D. Ordoñez