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Thai firm hoping to ride PHL growth with plant launch by Q4

SHERAEU.COM

THAI construction materials company Shera PCL Ltd. said it hopes to start operations in the Philippines by the fourth quarter to grab a share of the country’s growing construction industry.

On the sidelines of the Philippine World Building and Construction Expo, Thunnop Jumpasri, Shera’s country head for the Philippines, said such an investment will be the company’s first outside Thailand. 

“The construction industry of the Philippines I think registered the highest growth among ASEAN countries and we have seen a lot of potential of the products here in the Philippines,” Mr. Jumpasri said.

“I think the outlook and the projection for Philippine gross domestic product this year is around 6-7% and normally the construction industry grows (at the same rate as) the economy,” he said.

The company’s first plant outside of Thailand will be located in Teco Industrial Park in Mabalacat, Pampanga and is registered with the Board of Investments.

“We plan to finish the construction of the factory within this year. The total investment is around P2 billion for the whole factory,” he added.

Initially, the factory is planned for output of 100,000 tons of fiber cement board, expandable later to 200,000 tons.

Once operational, the plant is expected to take on 120-150 employees, more than 90% of which will be local hires.

“We intend to recruit Filipinos for more than 90% of our workforce because we see that they have the capability and skill that are suited for our operations. And this will not only be for our facilities team; even our commercial team is composed of Filipinos,” Mr. Jumpasri said.

Shera has been present in the Philippines for over 15 years. The Philippines is its biggest market outside Thailand, followed by Vietnam and Indonesia.

Last year, the company booked P1.5 billion in sales in the Philippines, with expectations of sales growth of 10-15% this year. — Justine Irish D. Tabile

Disposable vape ban being studied

PHILIPPINE STAR/EDD GUMBAN

THE Department of Trade and Industry (DTI) said it is studying a Department of Health proposal to ban disposable vapor products (vapes).

“I think the issue with disposable vapes is that the device includes the actual refill product in one system, meaning it is not divisible into the actual vape device and the consumable,” DTI Consumer Protection Group Head Amanda F. Nograles said in a briefing.

She said because the devices do not break down into separate components, the consumable part of the disposable device cannot be tested.

“It’s harmful because how will you test the possible effects of pods? How will you test if it is really safe for consumption?” Ms. Nograles said.

Under Republic Act No. 11900 or the Vaporized Nicotine and Non-Nicotine Products Regulation Act, the DTI, in consultation with the Food and Drug Administration, sets the technical standards for safety and quality of vape products.

“Our rule is to subject the products to mandatory product certification and registration starting June. That is why we are preparing the testing facilities for the devices and the consumables (vape pods),” Ms. Nograles said.

In the absence of testing, the DTI currently accommodates “the manufacturer’s submission of testing results from accredited labs.”

Last month, the DTI said additional funding will be needed to upgrade capacity at DTI’s vape certification facilities.

According to the DTI, its facilities are not currently capable of processing HTP consumables, e-liquids for vapor products, and nicotine pouches.

Asked how much more funding is needed Ms. Nograles said: “We requested… less than P170 million.” — Justine Irish D. Tabile

Post-pandemic review questions practicality of specialist hospitals for infectious disease

PHILIPPINE STAR/MICHAEL VARCAS

HOSPITALS dedicated to treating infectious diseases are not cost-efficient, according to a doctor participating in a webinar organized by the Asian Development Bank (ADB).

Hyuncheol Bryant Kim, an associate professor at the Hong Kong University of Science and Technology, said establishing hospitals designed for use in pandemics may see low utilization rates.

“If it is dedicated only for the infectious diseases, it will basically be empty,” he said at the ADB webinar, “What Has COVID-19 Taught Us About Asia’s Health Emergency Preparedness and Response?”

In 2022, the House of Representatives approved on third and final reading a measure seeking to establish the Philippine Center for Disease Prevention and Control. A counterpart bill in the Senate is awaiting second reading.

“We do not have to focus too much on infectious diseases. But rather than we have to focus on our general muscles to fight against any type of enemies in the future,” Mr. Kim said.

When the coronavirus disease 2019 (COVID-19) pandemic broke out, governments implemented lockdowns to curb the spread of the virus.

The Philippines, which had one of the longest and strictest lockdowns in the world, posted negative growth, with students enduring a learning crisis as schools shut down.

The Philippines had over 4 million confirmed COVID-19 cases, resulting in more than 66,000 deaths. — Beatriz Marie D. Cruz

Subsidies may be needed to spur e-jeepney adoption

PHILIPPINE STAR/WALTER BOLLOZOS

ELECTRIC JEEPNEY adoption in the Philippines needs a push from government subsidies and incentives, according to a climate and energy policy group.

“Technology alone cannot drive change, and the systems approach to transitioning our public transport system cannot be overemphasized. We have to invest in the capacity of transport cooperatives, workers, and drivers, and strengthen partnerships among all stakeholders,” Institute for Climate and Sustainable Cities (ICSC) Director for Urban Development Maria Golda P. Hilario said in a statement on Thursday.

In a report by Sandy Mae Gaspay and Arse John Salison, “The Economics of e-Jeepney Transport Operations: Business Models, Enabling Factors, and Current Challenges,” the ICSC said among the challenges to accelerating electric jeepney adoption are the lack of a public transport route plan and access to financing.

“Support from the government, in terms of capacity building, subsidies, and service contracting, will be vital in the early stages to establish a firm foundation for these modernized fleets,” it said.

The government’s Public Utility Vehicle Modernization Program (PUVMP) aims to modernize traditional jeepneys with environmentally friendly vehicles that are costlier.

The program requires operators to consolidate individual franchises under cooperatives or corporations to facilitate the acquisition of new vehicles.

In 2023, the Electric Vehicle Association of the Philippines (EVAP) said it anticipates an electric vehicle fleet of seven million by 2030 as the Department of Energy pushes to accelerate EV adoptions.

Last year, EVAP estimated the EV fleet at 15,300 units, including 354 electric motorcycles and 88 electric buses.

Rene S. Santiago, former president of the Transportation Science Society of the Philippines, said fully electrifying jeepneys is impossible without government subsidies.

“Electrifying jeepneys is a pipe dream… If the government wants to accelerate EVs, it needs to subsidize 80% of purchase price,” Mr. Santiago said in a Viber message.

“At this point, it might be difficult to fully electrify jeepneys and other public transport vehicles, given the prohibitive capital outlay required to enter the commercial electric vehicle sector,” according to Terry L. Ridon, a public investment analyst and convenor of think tank InfraWatch PH.

The ICSC has recommended that to fully shift to EVs, the government must prioritize incentive schemes and rationalize routes.

To date, the Land Transportation Franchising and Regulatory Board is still in the process of completing the PUVMP route rationalization plan.

Route rationalization configures routes to better match passenger demand. — Ashley Erika O. Jose

Agri job losses in the ‘millions’ after holidays at end of 2023 

PHILIPPINE STAR/ MICHAEL VARCAS

LABOR UNIONS said “millions” of agriculture and forestry jobs have been lost due to the dearth of food processing companies to buy the farmers’ harvests.

Kilusang Mayo Uno Secretary-General Jerome M. Adonis told BusinessWorld via Viber that the losses are estimated at 2.68 million workers as of January.

“We don’t have an industry that can process even just basic goods for food. More so, farmers don’t have support from the government to produce food for the country’s needs. This is why farmers are at a loss. This is why the employment in agriculture fell,” he said.

Bukluran ng Manggagawang Pilipino National President Luke S. Espiritu told BusinessWorld in an e-mail that economic policy favors large companies, resulting in “productive sectors from the labor small-business, peasant, and fishing industries being overlooked.”

The agriculture and forestry sectors posted the second-largest job losses in January, as “this situation likely stems from the end of the cropping season and unfavorable weather conditions for agriculture, resulting in part-time or low-paying agricultural jobs that are not regarded as regular employment,” Federation of Free Workers President Jose Sonny G. Matula said in a Viber message.

Wage disparities are a factor behind workers quitting the sector, as is the lack of stable working conditions, Mr. Matula said.

The Philippine Statistics Authority on Friday released the January labor force survey, which reflected employment declines after the holiday season.

Agriculture accounted for 21.4% of the labor force, according to the survey.

Unemployment hit six-month high in January with 2.15 million jobless, compared to December’s 1.60 million. The reading was the highest since the 4.8% posted in July. — Chloe Mari A. Hufana

President Marcos to meet with Blinken to tackle security concerns, says palace

PPA-NOEL B. PABALATE

By Kyle Aristophere T. Atienza, Reporter

PHILIPPINE President Ferdinand “Bongbong” Marcos, Jr. will meet with US Secretary of State Antony Blinken next week to tackle security concerns, the presidential palace said on Thursday, amid increasing tensions with China.

“I will be meeting with Secretary Blinken on Tuesday,” the president told a news briefing in Berlin where he was on a state visit. “What is confirmed so far is the meeting with him.”

Mr. Blinken’s visit comes after Mr. Marcos visited Europe this week including Germany, where he cited China’s increasing assertiveness in the South China Sea.

Philippine Foreign Affairs Secretary Jose Enrique A. Manalo said his office had not received a confirmation from Japanese Foreign Minister Yoko Kamikawa if he would also come to Manila for a three-way ministerial meeting.

“As for Japan, it’s not confirmed if they will be coming or not, but at this stage we haven’t received any confirmation,” he said at the same briefing.

“We hope the intention is to continue to plan, to strengthen the cooperation between the three countries — the United States, Japan and the Philippines,” Mr. Marcos said.

“And we will perhaps formalize it. It is probably just formalizing what we are already doing, to put a bit more structure as to operability,” he added.

The possible three-way meeting comes on the heels of increasing tensions in the South China Sea, which China claims almost in its entirety.

Chinese President Xi Jinping last week called on his country’s armed forces to coordinate preparations for military conflicts at sea and help in the development of China’s maritime economy.

The Philippines should do what it can to defend its sovereignty, Mr. Marcos said, citing “a more active attempt by the Chinese to annex some of our territory.”

Mr. Marcos told Australia’s Parliament last month he would not allow any foreign power to take “one square inch” of the country’s territory. “I will not allow any attempt by any foreign power to take even one square inch of our sovereign territory,” he said in a speech during his visit.

Australia and the Philippines started their first joint sea and air patrols in the South China Sea in November, aimed at countering an increasingly assertive China.

The South China Sea is a conduit for more than $3 trillion (P166 trillion) worth of ship-borne commerce each year and is a major source of tension between the Philippines and China.

The Philippines accuses China of committing aggressive acts inside its exclusive economic zone (EEZ). A United Nations-backed arbitration court based in the Hague in 2016 voided China’s sea claims — a decision Beijing has rejected.

‘HISTORY’
Mr. Marcos’ meeting with Mr. Blinken and the possible three-way meeting among Manila, Washington and Tokyo could mean “expanded foreign military intervention and basing,” said Raymond Palatino, secretary-general of Bagong Alyansang Makabayan (Bayan), which has opposed US military presence in the Philippines.

“We never learn from history,” he said in a Facebook Messenger chat. “Those who posed as friends end up becoming ruthless invaders and colonizers.”

Bayan accused Mr. Marcos of advancing Washington’s geopolitical interest in the region “by shamelessly offering our country as an extension of the US military network.”

The Philippine leader has veered away from his predecessor’s pivot to China, boosting Philippine security ties with the US and other Indo-Pacific powers such as Japan and Australia.

In February, the Philippines gave the US access to four military bases on top of the five existing sites under their 2014 Enhanced Defense Cooperation Agreement.

Last week, the governor of the northernmost province of Batanes said a plan was under way for the construction of a US-funded civilian port.

Batanes is just more than 200 kilometers from Taiwan, which China claims as its own.

The US Indo-Pacific Command and Philippine military completed the third iteration of their maritime cooperative Activity, which started in November.

The Philippines and Japan last month agreed to finalize talks on a possible reciprocal access agreement similar to the Philippines’ visiting forces agreement with the US.

Mr. Marcos arrived in the Czech Republic on Mar. 13, a move that is seen as part of a broader effort to diversify the Philippine economy away from China, its largest trade partner.

Tensions between the Philippines and China have worsened in the past year as Chinese coast guard and militia ships continue to block resupply missions to a World War II-era ship that Manila grounded in 1999 at Second Thomas Shoal to assert its sovereignty.

Mr. Marcos before leaving for Germany this week said the Philippines should step up economic ties with “like-minded nations.”

There’s no one else to blame for Manila’s stronger partnership with the US and Japan but China, Chester B. Cabalza, founder of Manila-based International Development and Security Cooperation, said via Messenger chat. “Beijing’s belligerence and unstoppable gray zone tactics pushed President Marcos to the limit.”

A Chinese envoy said earlier this year the two countries’ relations were at a crossroads. The Philippine Foreign Affairs department last week said it had filed nine diplomatic protests against Beijing this year, bringing the total since Mr. Marcos assumed office in July 2022 to 142.

The Philippine military on Tuesday said it had spotted about 50 Chinese vessels within the country’s exclusive economic zone (EEZ) in the South China Sea, many of them near the disputed Scarborough Shoal.

At least four Philippine Navy officers were injured earlier this month after China’s coast guard fired water cannons at one of two wooden civilian boats used in a resupply mission at Second Thomas Shoal, according to the Philippine National Security Council.

The water cannons from two Chinese Coast Guard vessels shattered the windshield of Unaizah Mae 4, causing minor injuries to the officers, it said.

It also accused a Chinese coast guard vessel of executing “dangerous maneuvers” against the escort ship, leading to a minor collision that resulted in “superficial structural damage” to the hull of the Philippine Coast Guard vessel.

The US and Japan have condemned the incident.

Marcos to Germany: ICC has no power to probe Duterte for drug deaths

PHILIPPINE STAR/MIGUEL DE GUZMAN

PHILIPPINE President Ferdinand R. Marcos, Jr. on Wednesday told German Chancellor Olaf Scholz the International Criminal Court (ICC) has no authority to investigate his predecessor’s deadly war on drugs.

He also touted his government’s shift to rehabilitation in its anti-drug campaign, adding that erring cops have been punished.

“It is very difficult for the Philippines to accept that an outside court will, shall I say, dictate to our policemen who they will investigate, who they will arrest,” he told Mr. Scholz, based on a transcript from the presidential palace.

It did not say how Mr. Scholz, whose country had helped establish the ICC, responded to Mr. Marcos.

The government estimates 6,252 deaths in ex-President Rodrigo R. Duterte’s anti-illegal drug campaign, but domestic and international human rights groups say the death toll could be as high as 30,000, including 122 children.

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

The University of the Philippines Third World Studies Center’s Dahas project had said there were 342 drug-related killings a year into Mr. Marcos’ term, including 115 deaths during police drug raids.

The European Union has condemned the Duterte government’s drug war, even threatening to end trade preferences given to the Philippines. Germany in 2019 voted in favor of a United Nations resolution to probe the deadly campaign.

Mr. Marcos told Mr. Scholz his government has reorganized the Philippine police force to get rid of cops involved “in some of the more nefarious practices.”

He said the state’s approach had “changed significantly,” a claim that international group Human Rights Watch debunked, citing continuing drug-related killings.

“He cannot claim progress because the impunity persists,” Human Rights Watch Asia Deputy Director Bryony Lau said in a statement.

He also belied Mr. Marcos’s claim that some law enforcers have been “tried and convicted,” noting that only two cases have resulted in the conviction of police officers out of the thousands of killings since 2016.

“Investigation by the government into these killings has not produced any significant results, while authorities continue to refuse to assist in the investigations of government agencies such as the Philippines Commission on Human Rights,” he added.

Mr. Lau said the deadly war on drugs remains a “state policy.”

“Marcos has not rescinded Duterte’s issuances for the drug war,” he said. “He has likewise never categorically and publicly ordered law enforcers to stop the violence.”

Mr. Marcos has been met with protests during some of his foreign visits, with domestic and foreign groups pressing their governments to hold the Philippine leader to account for human rights violations.

Greens Party Senator Janet Rice, who was present during Mr. Marcos’ speech at the Australian Parliament in Canberra last month, pulled out a placard that read: “Stop the human rights abuses.”

Her colleagues at the Australian Greens Party, including senators Jordon Steele-John, David Shoebridge and Barbara Pocock, boycotted Mr. Marcos’ engagement with the Parliament and held protests outside.

“He cannot claim progress because the impunity persists,” Mr. Lau said. — Kyle Aristophere T. Atienza

China chides United States for ‘economic bullying’

CHINA on Thursday criticized a US trade mission to Manila for dissuading American allies including the Philippines from working with the economic superpower on semiconductors, accusing its trade rival of “economic bullying.”

“Instead of focusing on economic cooperation with the Philippines, the US Presidential Trade and Investment Mission dwelled on so-called national security and sounded clarion calls for ganging up against China’s technological development,” the Chinese Embassy in Manila said in a statement.

The embassy said US restrictions on semiconductor exports to China is a “clear case of economic bullying.”

The Philippines is one of seven countries that the US is working with to diversify its semiconductor supply chain under the CHIPS and Science Act.

Under the law, the US will shell out $52.7 billion in subsidies to boost chip manufacturing and entice chipmakers in China to move to the US or other friendly countries.

It also bars funding recipients from expanding semiconductor manufacturing to China and countries considered as national security threats to the US, according to PwC’s website.

“The Presidential Trade and Investment Mission was an opportunity to reaffirm the importance the United States places on strong bilateral trade and investment relationship with the Philippines,” US Embassy spokesperson Kanishka Gangopadhyay told BusinessWorld in a Viber message.

American companies are keen on investing in the Philippines’ semiconductor industry and would support doubling the number of packaging, testing and assembly facilities in the country, US Secretary of Commerce Gina Raimondo told a business forum in Makati on Tuesday during her two-day visit with the trade mission.

During his visit to Manila last month, US State Department Undersecretary for Economic Growth, Energy and Environment Jose W. Fernandez said high energy costs are keeping semiconductor companies and miners from investing in the Philippines.

The Philippines’ top exports in January were electronic products, accounting for $3.42 billion or 58.2% of total exports. Last year, the country’s electronic product exports hit $41.9 billion or 57% of total exports. 

“The US should immediately cease the wrong practice of politicizing… economic, trade and science technology issues,” the Chinese Embassy said.

“It should refrain from enticing its allies into decoupling from China,” it said. “China stands ready to take all necessary measures to resolutely safeguard its legitimate rights and interests.” — John Victor D. Ordoñez

NIA seals contract for P739-M dam in Cagayan; construction under way

NATIONAL Irrigation Administration officials led by Administrator Eduardo Eddie G. Guillen announced the beginning of construction of the P738.45-million dam project in Cagayan on Wednesday. — NIA PHOTO

By Justine Irish D. Tabile, Reporter

THE NATIONAL Irrigation Administration (NIA) said on Thursday that the contract agreement for an earthfill dam in the northern Luzon province of Cagayan has already been signed, marking the beginning of the P738.45-million project’s construction.

In a statement, NIA said that the contract for the construction of Calapangan Earthfill Dam in Santo Niño, Cagayan was signed on Thursday at the NIA Central Office in Quezon City.

The contract includes the construction of a 30.5-meter-high earthfill dam and appurtenances, irrigation and drainage facilities, access road, and project facilities, the NIA said.

“It aims to provide year-round irrigation service to 1,715 hectares of agricultural land in the barangays of Abariongan Ruar, Abariongan Uneg, Calassitan, Calapangan, Calapangan Sur, Calapangan Norte, and Tagao,” the agency said.

According to the NIA, the project will benefit around 887 farmers and their families in the area.

Aside from irrigation purposes, the Calapangan Earthfill Dam is also eyed to help aquaculture development, tourism promotion, and watershed management in Cagayan.

“The Calapangan reservoir irrigation project will not only help the farmers but also supports the government’s agricultural programs to ensure food security which is the topmost agenda of President Ferdinand R. Marcos, Jr.,” it said.

Last month, the NIA said it earmarked up to P40 billion for new irrigation projects this year, while it has completed 68% of its national irrigation development commitments.

Marcos rating up 3 points in December

PHILIPPINE STAR/KRIZ JOHN ROSALES

PHILIPPINE President Ferdinand R. Marcos, Jr.’s net satisfaction rating rose by 3 points to 47 in December from a quarter earlier, according to the Social Weather Stations (SWS).

In a statement, the pollster classified the score as “good,”

The president’s net satisfaction rating was highest in Luzon areas outside Metro Manila at 52 (very good), followed by the Visayas in central Philippines at 51 (very good), the National Capital Region at 44 (good) and Mindanao at 38 (good).

Hie net satisfaction rating fell by 12 points in Mindanao from a quarter earlier, SWS said. It rose by 8 points in Metro Manila, by 4 points in Luzon and by 18 points in the Visayas.

Mr. Marcos has pursued closer ties with the US and other western allies amid worsening tensions with China.

The poll, which interviewed 1,200 adults, had an error margin of ±2.8 points. — Kyle Aristophere T. Atienza

Bill to ban online gambling ads

SENATE PRIB

A SENATOR has filed a bill seeking to impose a fine of as much as P500,000 and jail time of up to three years against individuals promoting gambling online.

Under Senator Robin C. Padilla’s Senate Bill No. 2602, filed on March 12, the Department of Justice is tasked to issue an order restricting access to online content promoting gambling, with the National Telecommunications Commission in-charge of monitoring compliance.

Internet service providers would need to comply with the disabling orders within 48 hours after they are issued.

Mr. Padilla, who heads the Senate Commitee on Public Information and Mass Media, said in a statement on Thursday that the proposed laws aim to “lessen, if not eliminate the exposure and impact of gambling to the general public, especially the youth.”

“Considering the evolving landscape of social media platforms, this representation has been apprised of the availability of online user-generated content relating to gambling that demonstrates, promotes and provides instructions on betting or staking to the general public,” he said.

Meanwhile, Senator Mary Grace N. Poe-Llamanzares called on law enforcers to boost their efforts to act on Philippine Offshore Gaming Operators (POGO) that conduct fraud.

“Our inability to stop the POGO-related crimes will be a mockery of our laws and will perpetuate the cycle of exploitation and abuse not only of Filipinos but of their foreigner victims,” she said in a statement. — John Victor D. Ordoñez

Former QC mayor must face trial

THE PHILIPPINES’ anti-graft court has rejected a motion to dismiss a corruption lawsuit against former Quezon City Mayor Herbert M. Bautista in connection with the city’s P32.1-million deal with a local software company in 2019.

In a 23-page resolution dated March 8, the Sandiganbayan Seventh Division denied the junking of the prosecution’s evidence in the charge sheet against the ex-mayor and his co-accused, former Quezon City Administrator Aldrin C. Cuna.

Associate Justice Ma. Theresa Dolores C. Gomez-Estofesa penned the resolution denying Mr. Bautista’s motion for leave to file demurrer to evidence and ruling that there is probable cause for the case to proceed to trial.

Mr. Bautista and Mr. Cuna have been charged with violation of the Anti-Graft and Corrupt Practices Act (R.A. 3019) over alleged irregularities in the P32.1-million deal with Geodata Solutions, Inc. for the procurement of online occupational permitting and tracking systems for the city government. 

The anti-graft court denied Mr. Cuna’s motion for demurrer as well, and set the presentation of defense evidence on March 20.

Mr. Bautista had denied a conspiracy with Mr. Cuna, stating that he was not even part of the bids and awards committee and could not be faulted for any irregularity.

He also maintained that the deal was above board and delivered to the city government.

The resolution of the court noted that there was an appropriation ordinance for the project, contrary to the claim of the prosecution. But the prosecution also argued that Mr. Bautista and Mr. Cuna had allegedly approved full payment to Geodata even before it completed the delivery.

Associate Justices Zaldy V. Trespeses and Georgina D. Hidalgo concurred with the resolution that the case deserved a full-blown trial. — Kenneth Christiane L. Basilio