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DBP charter changes to support capital position

BW FILE PHOTO

PROPOSED CHANGES to the charter of the Development Bank of the Philippines (DBP) that would allow for public ownership could help support the state-run lender’s capital restoration following its contribution to the country’s sovereign wealth fund and boost its credit profile, debt watcher Fitch Ratings said.

“The proposed amendments to Development Bank of the Philippines’ charter, which will allow the state to sell part of its stake in the bank, are unlikely to have any impact on the bank’s sovereign support-driven Issuer Default Ratings (IDR),” Fitch said in a commentary on Monday.

“However, a stake sale that significantly improves DBP’s capital position may be positive for the bank’s standalone credit profile, as it can restore underlying capital buffers that were eroded when DBP injected capital into Maharlika Investment Fund in late 2023,” it said.

Fitch in March affirmed DBP’s long-term foreign- and local-currency IDRs at “BBB” with a “stable” outlook, matching its assessment of the Philippines.

However, it downgraded the bank’s Viability Rating (VR) to “bb-” from “bb” following its capital contribution to the Maharlika Investment Corp. (MIC), as this would have “reduced its common equity Tier 1 (CET1) ratio by 4pp (percentage points) and resulted in a breach of the local capital requirement if not for regulatory forbearance.”

The Senate in September approved on final reading a bill that seeks to amend the DBP’s charter.

Under Senate Bill No. 2804 or “The New Development Bank of the Philippines Act,” which will repeal Executive Order No. 81 issued in 1986 or DBP’s current charter, the state-run bank’s capital will be hiked to P300 billion from P35 billion — part of which can be raised via public listing — to help finance its priority sectors.

The bill said that the National Government will own 70% of the DBP’s capital stock at all times, with P32 billion or 10.67% being fully subscribed to and paid for by the state.

Under the measure, the DBP will also be allowed to engage in financial leasing in connection with government projects. The amendments will likewise streamline the bank’s bond issuance process.

Fitch said that while the proposed new DBP charter allows for its public listing, which would dilute the government’s ownership, it ensures that the state will still retain majority control of the lender.

“We believe DBP continues to play a strategic role in advancing the state’s policy agenda that the government is likely to retain, notwithstanding the possibility of lower public ownership. DBP’s policy role underpins its sovereign support-driven IDR of ‘BBB’/Stable, which is equalized with the Philippines’ sovereign rating,” it said.

“However, capital injection via a potential stake sale that enhances DBP’s capital position materially could lead to an upgrade in the bank’s Viability Rating, which reflects its standalone credit strength,” Fitch added.

The debt watcher said the bank’s capitalization has improved, with its parent-level CET1 ratio at 13.8% as of end-September 2024, up from 13% at end-2023, factoring in regulatory relief.

“We expect the bank’s capital buffers to continue to rise steadily as profitability improves, helped by lower credit costs amid a robust economic environment,” Fitch said.

“We have not factored in any potential stake sale in our base-case projections, given the significant uncertainty surrounding the timeline and execution of any sale, but more concrete plans could buoy the VR if and when they are announced. Beyond enhancements in its capitalization, DBP’s VR could also be upgraded should we see improvement in its asset quality and profitability.”

DBP and Land Bank of the Philippines (LANDBANK) earlier sought regulatory relief from the central bank following their contributions to the MIC. DBP and LANDBANK were mandated to contribute P25 billion and P50 billion, respectively, as initial seed capital for the MIC, which were remitted in September 2023.

DBP booked a net profit of P4.68 billion at end-September 2024, down by 8.95% year on year. — Luisa Maria Jacinta C. Jocson

ALI’s Vermosa holds ‘Open Streets’ weekend until Feb.

AYALA Land, Inc. (ALI) is closing portions of its Vermosa estate in Cavite every weekend beginning Jan. 18 to promote car-free and pedestrian-friendly activities.

The “Open Streets” program will close sections of Vermosa Boulevard, Champions Loop, and Olympic Drive every weekend until Feb. 23 to give way for physical activities such as cycling, running, and community assemblies.

“This initiative embodies Vermosa estate and Ayala Land’s commitment to promoting an active lifestyle and strengthening community bonds,” May P. Rodriguez, vice-president and senior project development head of ALI’s Estates Group, said in a statement.

The initiative was inspired by “Car-Free” Sundays on Ayala Avenue, launched by Ayala Land and Make It Makati in 2023.

The program not only encourages physical activity but also allows families to enjoy quality time and neighbors to connect with each other, Ms. Rodriguez added.

It will also feature various community-building activities, such as roller skating, painting, pocket fitness classes, group classes, and food and retail booths.

These will be held around the estate’s nature-inspired spaces, including the Vermosa Greenway and landscape parks.

“Vermosa Open Streets is more than just a weekend activity; it’s a testament to Ayala Land’s vision of creating communities that are forward-thinking, sustainable, and environmentally conscious,” said Christine C. Roa, corporate and estates marketing and communications group head at Ayala Land.

The initiative is expected to attract visitors from nearby towns, ALI said.

Key facilities such as Cavite Red Cross, Bureau of Fire Protection, Philippine National Police, and the Imus Government Center are also located within the estate.

Vermosa boasts proximity to major roadways and establishments such as Ayala Malls Vermosa and the De La Salle Santiago Zobel Vermosa Campus. The property covers the cities of Imus and Dasmariñas in Cavite. — Beatriz Marie D. Cruz

The world is getting used to Trump

RAWPIXEL

WHEN Donald Trump first won the presidency, the world had a bit of a freak-out. The French ambassador to the US melted down on social media. Germany’s Angela Merkel fretted that Washington was abandoning the international system it had built. The global elites of Davos lauded China’s Xi Jinping when he promised, risibly, to be the defender of an open, cooperative world.

Now, Trump is back, and he certainly hasn’t mellowed. Yet this time, much of the world is more calmly, even optimistically, awaiting his second term. That moderated reaction speaks volumes about how the world’s expectations of America have changed over the past eight years — and how the world itself has gotten more Trumpy.

For insight, consult new polling by the European Council on Foreign Relations. Most European populations still dislike Trump. Still, Trump has encountered little of the overt hand-wringing or resistance diplomacy that characterized his first time around. Rather, European leaders — including French president Emmanuel Macron and NATO Secretary General Mark Rutte — have rushed to engage with Trump even before his inauguration. And if most European elites seem resigned to Trump redux, other parts of the world are downright welcoming.

Publics in key states — including India, Saudi Arabia, China, Russia, Brazil, Turkey and Indonesia — think Trump will be more good than bad for their countries. On balance, the world expects he will help rather than hurt the chances for peace in Ukraine and the Middle East. Even Ukrainians themselves are more bullish than bearish. What exactly is going on?

Trump’s critics would argue that Russia and China like the incoming president because he’ll take a wrecking ball to the US-led order, while America’s closest allies in continental Europe, the United Kingdom, and South Korea fear him for that same reason. That’s true, to an extent. Whatever losses China suffers in a Trump 2.0 trade war, it could recoup — and then some — from the damage he might do to the US alliances that have long constrained Beijing.

Yet that’s just one of several dynamics at work.

In some ways, foreign leaders are more restrained because they’ve seen what works and what doesn’t. Allied leaders who clashed openly with Trump after 2017 rarely benefited: Merkel nearly saw one-third of the US troop contingent removed from Germany. Allies that fared better, such as Japan and Poland, typically flattered Trump and touted their ability to support his political and geopolitical agenda. That’s a commentary on Trump’s almost juvenile tendency to personalize key relationships. Yet it’s a reality US partners can’t ignore.

There’s also global frustration with the world Joe Biden left behind. If Ukrainians are Trump-curious, that’s because Biden saved their country from losing its war of survival quickly in 2022 — only to put it on the road to losing that war slowly in the years thereafter. The Saudis hope Trump can finally end a grinding, regionally consuming war in Gaza: The nascent ceasefire he helped broker can only encourage that belief. More broadly, Biden’s foreign policy was cool and mostly competent, yet the world is still more violent, more chaotic than it was four years ago. So just as voters punished incumbents nearly everywhere in 2024, the world seems to be looking for change in Washington, too.

The change that’s coming, moreover, won’t be such a surprise this time. In 2016, so many leaders found it hard to believe that America, long the protector of the liberal order, had elected a president who openly loathed that project. Now, presumably, they see Trump’s return as part of a larger shift in which the US takes less responsibility for global order and becomes more nakedly transactional in its dealings with the world. Whatever the consequences of that shift — and they may not be pretty — it’s counterproductive to act as though Trump represents an aberration anymore.

Most fundamentally, the world is less horrified by Trump because it has become more like him. The ideas that Trump rode to power — hostility to migration and globalization, an emphasis on national identity and sovereignty — now animate political debates and political disrupters across multiple continents. Populists and strongmen are enjoying a global moment: Trump has counterparts in India’s Narendra Modi, Saudi Arabia’s Mohammad bin Salman, Russia’s Vladimir Putin, China’s Xi Jinping, Italy’s Georgia Meloni, and Hungary’s Viktor Orban. There is a generalized sense, moreover, that entrenched establishments have failed their citizens — which is why countries throughout the democratic world are experiencing such pronounced political weakness and upheaval.

A warning: Those looking forward to a Trump presidency may come to regret it, if he governs by abandoning Ukraine, tearing up a global trading system that benefits so many countries, and stoking rather than suppressing the geopolitical chaos. For the moment, however, the international response to this transition shows we’re already living in Trump’s world.

BLOOMBERG OPINION

 

Hal Brands is a senior fellow at the American Enterprise Institute, the co-author of Danger Zone: The Coming Conflict with China, and a member of the US-China Economic and Security Review Commission. He is a senior adviser to Macro Advisory Partners.

Citicore eyes higher capex to support projects

CITICORE

RENEWABLE ENERGY developer Citicore Renewable Energy Corp. (CREC) is expecting a higher capital expenditure (capex) budget for this year as it works towards its five-gigawatt (GW) project roadmap, its president said.

“Most likely higher,” CREC President and Chief Executive Officer Oliver Y. Tan told reporters last week when asked about this year’s capex.

For 2024, CREC allotted a capex of around P35 billion, primarily for renewable energy projects.

Mr. Tan said the company is working on the first GW worth of energy projects targeted to come online this year, which are mostly under the government’s second green energy auction held in 2023.

“We have four solar projects in Tuy, Batangas, one in Arayat, two in Pangasinan, and two in Pagbilao that will come online within the year,” Mr. Tan said.

The company is targeting to energize projects with a capacity of 200 megawatts (MW) by April and 800 MW by August, he said.

With the development, CREC sees ending the year with almost 1.2 GW of capacity, contributing to its goal of reaching 5 GW of capacity by 2028.

“We’re rolling out the second GW pipeline this year,” Mr. Tan said.

Meanwhile, CREC said in a regulatory filing on Monday that the company and Indonesian state-owned PT Pertamina Power Indonesia (Pertamina NRE) are targeting to implement their P6.7-billion investment deal by the first quarter of 2025.

“The subscription is targeted to be implemented by the 1st quarter of 2025,” CREC said.

Earlier this year, CREC announced that its board of directors approved Pertamina NRE’s subscription to a 20% interest or 2.23 billion common shares of CREC, at P3 per share, raising an estimated value of P6.7 billion.

The partnership marks Pertamina NRE’s first investment in the Philippines, according to CREC.

Proceeds from the deal will contribute to the development of CREC’s pipeline of renewable energy projects nationwide in line with its energy goal.

CREC, directly and through its subsidiaries and joint ventures, manages a diversified portfolio of renewable energy generation projects, power project development operations, and retail electricity supply services.

At present, the company has a combined gross installed capacity of 285 MW from its solar facilities in the Philippines. 

On Monday, shares in the company fell 2% to close at P3.43 apiece. — Sheldeen Joy Talavera

Pru Life UK partners with Al-Amanah to promote Islamic finance

PRU LIFE Insurance Corp. of UK Philippines (Pru Life UK) has partnered with Al-Amanah Islamic Investment Bank of the Philippines (AAIIBP) to promote Islamic finance.

The partnership aims to “promote Islamic finance and takaful through financial education and capacity-building initiatives and help expand reach of financial inclusion to more Filipino communities, primarily in the Bangsamoro Autonomous Region in Muslim Mindanao,” Pru Life UK said in a statement on Monday.

“This collaboration between Pru Life UK and AAIIBP is a promising step towards a more inclusive and financially resilient Philippines,” it said.

The life insurer last year secured its takaful window operator license from the Insurance Commission (IC). It previously said it aims to launch its first takaful insurance product within this quarter.

Takaful is a type of Islamic insurance where members contribute a certain sum of money to a common pool. Takaful insurance needs to be compliant with Shari’ah law, which prohibits riba (interest), al-maisir (gambling), and al-gharar (uncertainty) principles.

“Pru Life UK’s Takaful journey is driven by our commitment to social inclusion, aiming to provide financial protection to more Filipino families. We are excited to collaborate with AAIIBP on financial education and capacity-building to help address the need to fill in the gap in financial education especially for Muslim communities,” Pru Life UK Chief Legal, Government Relations and Sustainability Paul Mandal said.

“As the country’s first Islamic bank, AAIIBP is committed to advancing financial inclusion through Shariah-compliant solutions. The partnership with Pru Life UK on financial education and capacity building is a significant milestone in our efforts to uplift Muslim communities and empower them to become key contributors to the nation’s progress. We are eager to witness the positive impact this collaboration will bring,” AAIIBP Chairman and Chief Executive Officer Amilbahar Amilasan, Jr. said.

Pru Life UK booked a premium income of P46.19 billion and a net income of P4.36 billion in 2023, IC data showed.

Meanwhile, AIIBP posted a net loss of P81.44 million in 2023, narrowing from the P86.448-billion loss in 2022, its financial statement showed. — AMCS

Entertainment News (01/21/25)


Renée Zellweger returns for Bridget Jones 4

ROMANTIC comedy franchise Bridget Jones Diary is back with another heartfelt chapter, Bridget Jones: Mad About the Boy. Renée Zellweger reprises her role as the titular lead who tries to rekindle the spark in her life after the death of her husband Mark Darcy, played by Colin Firth. Now a single mother to two children, her loved ones encourage her to pursue a new path into life and love, often with hilarious results. The film opens in Philippine cinemas on Feb. 12.


Sunshine official entry to Berlin Film Fest

Sunshine, the latest film by Antoinette Jadaone starring Maris Racal, has been chosen as an Official Selection at this year’s Berlin International Film Festival under the Generation 14plus Program. The 75th edition of the festival takes place from Feb. 13 to 23.


Ronan Keating headlines Valentine’s concert

THIS February, the Irish singer-songwriter and global heartthrob Ronan Keating will make hearts swoon with a special Valentine’s concert at the Newport Performing Arts Theater. He will serenade fans in the one-night only concert on Feb. 13, 8 p.m. Prices range from P4,000 to P20,000.


Surge Fitness + Lifestyle offers wellness packages

AT premium club Surge Fitness + Lifestyle, clients are invited to refocus and welcome the new year with revitalized fitness objectives. Themed “RESET,” the club is offering wellness packages this January. These include Surge JR for kids, yoga and mindfulness sessions, nutrition plans, recovery rooms, and even a golf simulator, pickleball court, basketball court, bowling lanes, and billiards for leisure and sport enthusiasts. Exclusive member events are Cheatday Friday, Family Sunday, and the newly launched Sports Saturday (happening every 2nd and 4th Saturday of the month) where the club community comes together for fun, food, and inspiration. For more updates and news, follow Surge Fitness + Lifestyle’s social media pages.


Stories of the Heart for Valentine’s Day

THIS Valentine’s season, Newport World Resorts is staging Stories of the Heart, a concert that brings together three original Pilipino music (OPM) icons: Erik Santos, Christian Bautista, and Yeng Constantino performing a romantic soundtrack to life. For the first time, these three will join forces to headline the two-night show on Feb. 14 and 15, 8 p.m., at the Newport Performing Arts Theater. Ticket prices range from P2,300 to P9,500.


Marvel, Disney bring Daredevil: Born Again

COMIC book characters Matt Murdock and Wilson Fisk will face off once again in Marvel Television’s all-new series, Daredevil: Born Again. In it, Charlie Cox reprises his role as Matt Murdock, a blind lawyer with heightened abilities, as he fights for justice through his law firm, while Vincent D’Onofrio plays former mob boss Wilson Fisk who pursues his own political endeavors in New York. When their past identities begin to emerge, both men find themselves on an inevitable collision course. It premieres on Disney+ on March 5.


Kaloy Tingcungco releases debut single

GMA Sparkle artist Kaloy Tingcungco has released his first single, “Infatuation,” a song that explores the complexities of emotions and relationships. The debut single was a collaboration with GMA Playlist, which helped Tingcungco bring this passion project to life.


K-pop concert  in Manila

The K-pop concert IAM K-POP will be bringing some of Filipinos’ favorite South Korean artists to the Smart Araneta Coliseum in Quezon City on March 29. Among the K-pop acts that have been revealed to be part of the concert thus far are boy groups RIIZE and HORI7ON and pop stars IRENE and Seulgi from Red Velvet. More details will be announced soon.

How PSEi member stocks performed — January 20, 2025

Here’s a quick glance at how PSEi stocks fared on Monday, January 20, 2025.


Philippines worsens in military strength list

The Philippines fell seven notches to place 41st out of 145 countries in the latest edition of the Military Strength Ranking by Global Firepower (GFP) with a PowerIndex score of 0.6987. The ranking utilizes over 60 individual factors to determine a nation’s PowerIndex (PwrIndx), covering war-making capability across land, sea, and air fought by conventional means.* The smaller the PwrIndx value, the more powerful a nation’s perceived fighting capability is.

Philippines worsens in military strength list

Manila says it will keep challenging China’s ‘illegal patrols’ in own EEZ

CHINA COAST GUARD VESSEL 5901, nicknamed the “monster ship,” off the coast of Capones Island, Zambales on Jan. 4, 2025. — PHILIPPINE COAST GUARD

THE Philippine Coast Guard (PCG) on Monday said it would continue to confront illegal patrols in the South China Sea as it tries to prevent China from “normalizing such unlawful actions.”

“If we fail to challenge this, China will succeed in establishing a precedent for its maritime forces’ illegal patrols in the future,” it said in a statement.

It added that the deployment of white hull vessels in the face of China’s incursions into its waters signals its intent to manage tensions peacefully.

The Philippine Coast Guard said the use of its assets amid the presence of Chinese vessels including China’s “monster ship” within Manila’s exclusive economic zone (EEZ) in the South China Sea “aims not to provoke China, but to resolve differences through rational discussion and adherence to international law.”

“It is also important to highlight that the deployment of our white hull vessels to address China’s unlawful presence demonstrates the government’s intent to deescalate tensions and pursue a peaceful resolution to these violations of international law,” it added.

The Philippines last week accused China of intimidating Filipino fishermen near Scarborough Shoal and normalizing its “illegal presence” after Beijing sent its biggest coast guard ship into the Philippine EEZ.

China Coast Guard (CCG)-5901 was about 175.94 kilometers from the coast of Zambales province as of 9 p.m. on Sunday.

The monster ship, first spotted within the Philippine EEZ on Jan. 4, “moved further away” from the PCG vessel Gabriela Silang, the agency said in a statement on Sunday night. It said another Chinese vessel, CCG-3304, approached the coast of Zambales at 120.38 kilometers.

“Although the monster ship has departed, it is important to note that CCG-3304, its replacement, remains larger than the largest PCG vessel,” the Philippine side said, referring to the 97-meter muti-role response vessel BRP Teresa Magbanua.

CCG-3304 is 111 meters long and 46 meters wide, it said.

It said the 83-meter French-built BRP Gabriela Silang “continues to diligently fulfill its patriotic mission of challenging the unlawful presence of the Chinese Coast Guard.”

The Philippine Coast Guard said it must confront illegal patrols “as it prevents China from normalizing such unlawful actions.” “If we fail to challenge this, China will succeed in establishing a precedent for its maritime forces’ illegal patrols in the future.”

“Therefore, no matter how long it takes, the PCG vessels will always be present to prevent China from changing the status quo,” it added.

The PCG said China’s “disregard of international law” is a matter of concern not only for the Philippine government but for the entire region and the international community.

“If the People’s Republic of China feels emboldened to ignore UNCLOS (United Nations Convention on the Law of the Sea) and unlawfully patrol the EEZ of other states, what will stop it from doing the same to additional countries?” it asked.

“While some may argue they are prepared to defend their rights, isn’t that precisely what we are trying to prevent?” it added.

“A world increasingly dominated by rising tensions among sovereign nations is not what we desire. This is why international law has been established — to ensure equality and uphold the sovereignty of all nations.”

A United Nations-backed tribunal in 2016 voided China’s expansive claims in the South China Sea, as it ruled Scarborough Shoal, which Beijing has controlled since 2012, is a traditional fishing ground for Filipino, Chinese and Vietnamese fishermen.

The shoal, which Manila calls Bajo de Masinloc, is 241 kilometers off Zambales and is within the Philippines’ 200-nautical mile EEZ. — Kyle Aristophere T. Atienza

Marcos says Duterte lied about blank budget items

PRESIDENT FERDINAND R. MARCOS, JR. — PHILIPPINE STAR/NOEL PABALATE

By Kyle Aristophere T. Atienza, Reporter

PRESIDENT Ferdinand R. Marcos, Jr. on Monday called out his predecessor for “lying” after claiming that the 2025 General Appropriations Act (GAA) is invalid for having blank items.

“He’s lying,” he said. “He was a president. He knows that you cannot pass a GAA with blanks,” he told reporters on the sidelines of an event in Taguig City, referring to former President Rodrigo R. Duterte. “And he’s lying because he knows perfectly well that that doesn’t ever happen.”

Mr. Duterte and Davao City Rep. Isidro T. Ungab at the weekend said in an online program that the 2025 national budget is “invalid.” The congressman accused his colleagues of approving a spending plan that included “blanks.”

Mr. Ungab said the bicameral conference committee report approved by the Senate and House of Representatives had line items without the amounts. The Executive branch might have filled it out later, he added.’

“In the entire history of the Philippines, the GAA is not allowed to have an item without specifying the project, its cost and funding,” Mr. Marcos said. “So, it’s a lie.”

Mr. Duterte and Mr. Ungab were joined in the program by former Executive Secretary Victor D. Rodriguez and Duterte-era Land Transportation Franchising and Regulatory Board chairman Martin Delgra III.

Malacañang earlier on Monday said Mr. Duterte’s allegations were “malicious.”

“Some quarters, including a former president, have maliciously peddled fake news about President Marcos having signed the GAA of 2025 with certain parts of the enactment purposely left blank to enable the administration to simply fill in the amounts like in a blank check,” Executive Secretary Lucas P. Bersamin said in a statement.

“The peddling of such fake news is outrightly malicious and should be condemned as criminal. No page of the 2025 National Budget was left unturned before the President signed it into law,” he added.

Mr. Bersamin said items in the GAA were “exhaustively reviewed” by hundreds of professional staff from Congress and the Department of Budget and Management.

“This meticulous line-by-line scrutiny is a pre-enactment check performed by dedicated civil servants to ensure that the GAA contained no single discrepancy in the amounts being appropriated,” he added.

Mr. Bersamin said it would be impossible for any funding items to be left blank, “as alleged by misinformed and malicious sources.” “The true facts and the printed figures appearing in the GAA easily debunk the malicious claims of deliberate blanks being left for filling in.”

The Budget department said the allegations were “completely false and reckless.”

“Under the 1987 Constitution, it is the General Appropriations Bill, and not the bicameral report that is officially submitted for the consideration and approval or veto of the President,” it said in a separate statement.

It said the bill, with all its details, was presented to the President. “Once signed, the GAB becomes the Law — the GAA.”

“To reiterate, the bill presented to and signed by the President is a complete document, with no blank pages or missing details. In no case does the Executive issue a GAA with blank pages or figures,” the DBM said.

Mr. Marcos said the public should see the budget for themselves, citing the availability of the GAA on the DBM website.

“Take a look at it. You don’t even need to read the whole document,” he said in Filipino. Just look for the items they claim are blank checks.”

The Executive branch prepares a proposed budget for the next fiscal year. Both chambers of Congress deliberate on the proposed budget, and government agencies must defend their proposed funding.

The budget is then passed separately by the House and Senate. A bicameral conference committee reconciles differences between the two versions.

Mr. Marcos, before the approval of the GAA, said the bicameral committee’s spending version was far from the version the Executive branch submitted to the House of Representatives in July.

The Executive can veto the budget items or the entire bill.

Mr. Marcos on Dec. 30 signed into law the P6.326-trillion national budget for 2025 but vetoed more than P194 billion worth of line items that he said were inconsistent with his administration’s priorities.

Marcos to veto anti-teen pregnancy bill, says it promotes ‘woke mentality’

PRESIDENT FERDINAND R. MARCOS, JR. — PHILIPPINE STAR/NOEL PABALATE

PRESIDENT Ferdinand R. Marcos, Jr. on Monday vowed to veto a bill that seeks to prevent teen pregnancy through a comprehensive sex education campaign, saying it promotes “woke mentality.”

He noted that while he is in favor of sex education, he was “appalled” by some elements in Senate Bill 1979 or the proposed Prevention of Adolescent Pregnancy Act.

He echoed an allegation by a conservative group led by former Chief Justice Maria Lourdes P.A. Sereno that the bill seeks to teach kids how to masturbate, a claim that the bill’s proponent in the Senate has debunked.

Mr. Marcos blamed “woke mentality” that he said the bill’s proponents are “trying to bring into our system.”

“You will teach four-year-olds how to masturbate,” the President said. “That every child has the right to try different sexualities. This is ridiculous. It is abhorrent.”

“It is a travesty of what sexual and sex education should be to the children. If this bill is passed in that form, I guarantee all parents, teachers, and children: I will immediately veto it.”

Ms. Sereno’s Project Dalisay linked the measure’s sex education provision to a technical guidance by the United Nations Educational, Scientific and Cultural Organization and World Health Organization for sex education, which tackles masturbation.

“The two international documents are quite candid about its normalization,” the group of the ousted chief justice said in a statement earlier this month.

In response to Mr. Marcos’ remarks, Senator Ana Theresia “Risa” Hontiveros-Baraquel reiterated that nowhere in the bill is childhood masturbation mentioned.

“Mr. President, with all due respect, it’s clear that there is no such word as masturbation in the bill,” she said in a video statement.

She also said the bill does not encourage kids to “try different sexualities.” “Child sex education contains the very same things you support: teaching kids — anatomy and the consequences of early pregnancy.”

“I am willing to accept amendments to refine the bill so we can steer it to passage,” she added.

Ms. Hontiveros has said Project Dalisay’s claims were fake news.

The Senate bill pushes a compulsory comprehensive sex education in schools that is “medically accurate, culturally sensitive, rights-based and inclusive and nondiscriminatory.”

With the passage of the Reproductive Health Act of 2012, sex education has been incorporated into the curriculum of public school students aged 10-19. The Senate bill is yet to be scheduled for floor debates.

The Commission on Population and Development last week flagged the rising incidence of teen pregnancies, particularly those under 15 years old, as it urged the Senate to pass the teenage pregnancy bill.

Pregnancies among minors aged 10 to 14 are at an alarming state “that needs a more responsive policy,” it said in a statement.

Repeat pregnancies also remain an issue, with 38 young girls under 15 having experienced it in 2023, it said. Seventeen women have given birth to five or more babies before they turned 20, it added.

The problem calls for a “comprehensive, age-sensitive sexuality education to address the issue,” Undersecretary Lisa Grace S. Bersales said.

The sex education curriculum will tackle “human sexuality, informed consent, adolescent reproductive health, effective contraceptive use, disease prevention, HIV/AIDS, sexually transmitted infections, gender sensitivity, gender equality and equity, teen dating, gender-based violence, sexual abuse and exploitation, peer pressure, women’s and children’s rights and issues like pornography,” according to the Senate bill. — Kyle Aristophere T. Atienza

Peso climbs as dollar drops before Trump’s return to White House

BW FILE PHOTO

THE PESO gained against the dollar on Monday as market focus turned to US President-elect Donald J. Trump’s inauguration.

The local unit closed at P58.52 per dollar on Monday, strengthening by 12 centavos from its P58.64 finish on Friday, Bankers Association of the Philippines data showed.

The peso opened Monday’s session stronger at P58.52 against the dollar, which was also its closing level. It climbed to as high as P58.45, while its worst intraday showing was at P58.60 versus the greenback.

Dollars exchanged went down to $1.23 billion on Monday from $1.6 billion on Friday.

The peso-dollar pair mostly moved sideways amid cautious trading ahead of Mr. Trump’s inauguration overnight, a trader said by phone.

The local unit rose as the dollar weakened before Mr. Trump’s inaugural speech, where he was expected to make policy pronouncements, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

On Tuesday, the peso’s performance against the dollar could depend on Mr. Trump’s speech, the trader said. The trader sees the peso moving between P58.40 and P58.70 per dollar, while Mr. Ricafort expects it to range from P58.40 to P58.60.

The US dollar dropped on Monday before Mr. Trump’s inauguration as US president later in the session, with investors focusing on policy announcements that could immediately affect the greenback, Reuters reported.

Trading volume was expected to be thin due to the US markets being closed for the Martin Luther King Jr. Day holiday.

Softer US inflation data and the prospect of multiple Federal Reserve rate cuts have recently boosted risk assets.

Investors’ attention was firmly fixed on the policies Mr. Trump will enact on his first day in office. At a rally on Sunday, Mr. Trump said he would impose severe limits on immigration.

The dollar index, which measures the US currency against six peers, was 0.32% lower at 109.08. It hit last week a 26-month high of 110.17.

It has risen 4% since the November presidential election as traders anticipate Mr. Trump’s policies will boost growth and inflation. — A.M.C. Sy with Reuters

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