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Peso rises further on US CPI data

THE PESO strengthened against the dollar on Thursday as US consumer inflation eased last month, renewing bets of an early rate cut by the US Federal Reserve.

The local unit closed at P57.465 per dollar on Thursday, strengthening by four centavos from its P57.505 finish on Wednesday, Bankers Association of the Philippines data showed.

The peso opened Thursday’s session at P57.35 against the dollar. Its intraday best was at P57.24, while its weakest showing was at P57.48 versus the greenback.

Dollars exchanged rose to $1.76 billion on Thursday from $1.27 billion on Wednesday.

“The peso appreciated after US consumer inflation for April came in weaker than market expectations after three months of upside surprises,” a trader said in an e-mail.

This resulted in increased expectations of an earlier rate cut by the US Federal Reserve, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message

US consumer prices increased less than expected in April, suggesting that inflation resumed its downward trend at the start of the second quarter in a boost to financial market expectations for a September interest rate cut, Reuters reported.

The consumer price index (CPI) rose 0.3% last month after advancing 0.4% in March and February, the Labor department’s Bureau of Labor Statistics said.

In the 12 months through April, the CPI increased 3.4% after climbing 3.5% in March. Economists polled by Reuters had forecast the CPI gaining 0.4% on the month and 3.4% year-on-year.

Financial markets saw a roughly 73% probably of a rate cut in September, up from 69% before the data. A few economists anticipate the Fed will start lowering borrowing costs in July.

For Friday, the trader said the market would digest comments from Bangko Sentral ng Pilipinas Governor Eli M. Remolona, Jr. that rate cuts could start by the third or fourth quarter amid easing upside risks to inflation.

The trader sees the peso moving between P57.30 and P57.55 per dollar on Friday, while Mr. Ricafort expects it to range from P57.35 to P57.55. — A.M.C. Sy with Reuters

PSEi up as slower CPI boosts Fed rate cut hopes

REUTERS

PHILIPPINE STOCKS climbed on Thursday as US consumer inflation eased last month, boosting US Federal Reserve rate cut hopes, and as the market awaited the Bangko Sentral ng Pilipinas’ (BSP) policy announcement after trading hours.

The Philippine Stock Exchange index (PSEi) rose by 1.06% or 69.57 points to end at 6,628.20 on Thursday, while the broader all shares index went up by 0.71% or 25.10 points to 3,524.52.

“The index rose with most Asian markets as data showing that US consumer inflation eased slightly in April reignited bets that the Federal Reserve will start cutting interest rates this year,” Chinabank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message.

AB Capital Securities, Inc. Vice-President Jovis L. Vistan likewise said in a Viber message that cooler US consumer inflation “reignited optimism for potential rate cuts in the US.”

“This development reignited optimism for potential rate cuts in the US, with the market now factoring in the likelihood of two cuts within the year. Consequently, this has alleviated some of the pressures on the Philippine local currency and domestic interest rates,” Mr. Vistan said.

US consumer prices increased less than expected in April, suggesting that inflation resumed its downward trend at the start of the second quarter in a boost to financial market expectations for a September interest rate cut, Reuters reported.

The consumer price index (CPI) rose 0.3% last month after advancing 0.4% in March and February, the Labor department’s Bureau of Labor Statistics said.

In the 12 months through April, the CPI increased 3.4% after climbing 3.5% in March. Economists polled by Reuters had forecast the CPI gaining 0.4% on the month and 3.4% year on year.

Mr. Colet added that the PSEi rose as investors expected the BSP to keep benchmark rates unchanged on Thursday. The Monetary Board maintained its policy rate at 6.5% for a fifth straight meeting, it announced after market hours.

BSP Governor Eli M. Remolona, Jr. said after the meeting that they are now “less hawkish” as upside risks to inflation have ebbed, adding that rate cuts could start by the third or fourth quarter.

Almost all sectoral indices rose on Thursday, except for financials, which dropped by 0.33% or 6.71 points to 2,024.75.

Property climbed by 3.72% or 91.66 points to 2,552.23; holding firms went up by 1.63% or 94.56 points to 5,876.51; mining and oil rose by 0.2% or 18.66 points to 9,217.99; services increased by 0.19% or 3.84 points to 1,973.99; and industrials inched up by 0.01% or 1.73 points to 9,170.95.

Value turnover rose to P7.05 billion on Thursday with 886.04 million shares switching hands from the P5.5 billion with 464.27 million issues traded on Wednesday.

Advancers outnumbered decliners, 120 to 78, while 46 names were unchanged.

Net foreign selling went up to P196.95 million on Thursday from P84.66 million on Wednesday. — Sheldeen Joy Talavera with Reuters

Filipino activists fail to sail closer to Scarborough Shoal, avoid China clash

CIVILIAN VESSELS on a symbolic mission to assert the Philippines’ claim to Scarborough Shoal (Bajo de Masinloc) in the South China Sea were blocked by a Chinese Coast Guard ship while a Philippine Coast Guard vessel kept watch on May 16, 2024. — PHILIPPINE STAR/MIGUEL DE GUZMAN

A CIVILIAN flotilla of Filipino activists on Thursday failed to sail closer to a disputed shoal in the South China Sea, avoiding a clash with dozens of Chinese Coast Guard and militia vessels patrolling the area.

Still, the Atin Ito civic coalition in a statement called its mission to Scarborough Shoal a success after it managed to distribute food packs and about 1,000 liters of fuel to Filipino fishermen.

Akbayan Party President and Atin Ito convenor Rafaela David, who was part of a 10-man team that sailed a day earlier, said they had managed to breach China’s “illegal blockade.” “Mission accomplished.”

The main convoy was composed of at least four commercial fishing boats carrying more than 100 volunteers, journalists and fishermen, Emmanuel Hizon, one of the organizers, said by telephone. They were accompanied by about 100 fishermen on wooden boats on the first leg of the mission.

“This stands as a testament to the ingenuity, resourcefulness and bravery of the Filipino spirit amidst formidable challenges,” she added.

China said on Wednesday it has sovereignty over the shoal, which it calls Huangyan Island, and its adjacent waters.

The advance team went as near as 25 nautical miles (46 kilometers) from Scarborough Shoal, a triangle-shaped atoll with a vast fishing lagoon that China seized in 2012 after a tense standoff with Philippine ships, on May 15.

“China may possess larger and more vessels and wield strong water cannons, but we possess a secret weapon: our diskarteng Pinoy (Filipino strategy) which, when coupled with determination and love for fellow citizens and country, can surmount even the most daunting adversity,” Ms. David said.

Joshua Bernard B. Espeña, vice president of Manila-based International Development and Security Cooperation, said the civilian mission fills the void left by the government in defending the country’s claims in the waterway.

“Politicians should not hype these activities and put civilians in harm’s way,” he said in a Facebook Messenger chat. “Instead, these activities by civil society should serve as a signal for them to strengthen the country’s defense capabilities.”

The Philippines sent three coast guard vessels to ensure the safety of the civilian flotilla during the mission. About 100 smaller wooden fishing boats joined the initial part of the trip.

A Philippine Coast Guard aircraft was also deployed to monitor the situation at Scarborough Shoal, where Manila and Beijing have been embroiled in heated standoffs over competing claims, it said on Tuesday.

Chinese state broadcaster CCTV reported that the Chinese Coast Guard recently held routine drills at the shoal.

The main Atin Ito convoy did not proceed to the shoal after learning that their advance team had handed out fishing supplies and after a report that Filipino fishers in the area had been driven away by Chinese vessels.

The group got information that “most, if not all, Filipino fishermen had been driven away,” Mr. Hizon said.

“Upon learning that the advance team was able to conduct an effective supply run for fishers in Scarborough, the general assessment of the main mission was that the objective of getting to the vicinity of the shoal was already achieved,” he added.

‘ALIGNMENT OF INTERESTS’
The main convoy only managed to reach 50 nautical miles from the shoal, while about 40 Chinese vessels were positioned 40 nautical miles from it, Mr. Hizon said.

He said the main convoy was set to go to a fish port in Subic, Olongapo City to conclude the mission.

“The Atin Ito mission highlights not only the maritime security in the West Philippine Sea but also the most critical issue of food security and sustainability,” said Gary Ador Dionisio, dean of De La Salle–College of Saint Benilde School of Diplomacy and Governance.

“The negligence of the past administration to assert our rights in the Philippines exclusive economic zone resulted in the decimation of both our territorial and food security claims,” he said in a Facebook Messenger chat.

Former President Rodrigo R. Duterte led a pivot to China when he came to office in 2016 in exchange for investment pledges, few of which materialized.

“The Atin Ito campaign is an important facet in strengthening people’s awareness of the issues in the West Philippine Sea, including its role in the country’s food security, not only national sovereignty,” said Randy P. Tuaño, dean of the Ateneo de Manila University School of Government.

“By highlighting the ecological and economic significance of this region, the campaign educates the public about the critical marine resources that sustain local fisheries and support livelihoods,” he said via Messenger chat.

Don Mclain Gill, an international relations lecturer at De La Salle University, said the civilian mission illustrates the “alignment of interests between the government and the public toward exercising sovereignty and sovereign rights” within its exclusive economic zone.

“However, such undertaking must be planned thoroughly beforehand with the Philippine defense sector to ensure the feasibility of future missions,” he said via Messenger chat.

Mr. Hizon said Atin Ito aims to normalize civilian missions in the face of China’s growing aggression.

Philippine lawmakers hailed the civilian mission. 

Senator Jose Pimentel “Jinggoy” Ejercito, Jr., who heads the Senate defense committee, said it reflects ordinary Filipinos’ love for country.

Manila Rep. Bienvenido M. Abante, Jr. said he wanted to invite some congressmen to go with him to the South China Sea.

Filipinos should condemn China’s bullying at sea, he said in a statement. “We are just a pawn in the motive of China to control international trade because more than 60% of all trade pass through [that sea].”

Atin Ito led a similar mission in December to deliver supplies to troops stationed at Second Thomas Shoal, but it cut short its journey due to what it described as shadowing and harassment by Chinese Coast Guard ships.

China claims almost all the South China Sea, including parts claimed by the Philippines, Brunei, Malaysia, Taiwan and Vietnam.

A United Nations-backed tribunal based in the Hague in 2016 voided China’s sweeping claims in the South China Sea for being illegal. — Kyle Aristophere T. Atienza

Speaker tells Philippine Coast Guard to detail modernization program

PHILIPPINE STAR/EDD GUMBAN

By Kenneth Christiane L. Basilio

THE HOUSE of Representatives has asked the Philippine Coast Guard (PCG) to submit its modernization plan, which lawmakers could use as a basis to increase its budget next year.

The plan should include steps and the resources it needs amid growing tensions with China, Speaker and Leyte Rep. Ferdinand Martin G. Romualdez said in a statement on Thursday.

“By ensuring that our Coast Guard is well-equipped and well-funded, we can better protect our territorial integrity against external threats and assert our sovereign rights in these contested waters,” he added.

Congressmen on Wednesday said they were open to increasing the Armed Forces of the Philippines (AFP) budget next year, citing the need to defend the country from foreign encroachment.

The House will discuss the budgets of state agencies from August to October.

Mr. Romualdez said the PCG should say what equipment and vessels it needs to patrol the country’s seas more effectively.

Michael Henry Ll. Yusingco, a senior research fellow at the Ateneo de Manila University Policy Center, said the coast guard should ask for equipment separate from the Philippine Navy.

“The navy is at the forefront of our external maritime defense,” he said in a Facebook Messenger chat. “Hence, it will need ships and vessels that are suited for this task. The PCG plays a mere supporting role in this instance, and therefore its needs will be starkly different.”

Don McLain Gill, an international relations lecturer at De La Salle University, said the coast guard modernization should ensure interoperability with its allies including the United States and Japan.

“Modernization must also be centered on our partnerships, particularly with Japan and the US, which have been pivotal in improving the capabilities of our PCG,” he said via Messenger chat.

Its modernization would directly improve the country’s food security, Rocio Salle Gatdula, a defense economist at the University of Asia and the Pacific, said in a Messenger chat.

The South China Sea is a vital source of fish for Filipinos, think-tank Stratbase ADR Institute said in a 2019 report.

Bureau of Fisheries and Aquatic Resources has said Filipino fishermen catch about 275,520 metric tons of fish in the disputed sea each year, contributing to 6-7% of the Philippines’ total fishery output.

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

The Permanent Court of Arbitration in the Hague in 2016 voided China’s expansive claims over the South China Sea, a ruling that Beijing rejected.

Bill seeks automatic adjustment of aid to gov’t workers

PHILSTAR

A PHILIPPINE senator has filed a bill that seeks to automatically adjust to inflation the financial aid given to civilian state workers.

Under Senate Bill No. 2673, which Senator Rafael “Raffy” T. Tulfo filed on May 14, the government’s monthly Personnel Economic Relief Allowance (PERA) will be doubled to P4,000 a month.

“The Personnel Economic Relief Allowance being granted to employees of the government shall be subject to an automatic yearly adjustment equivalent to any increase of the annual inflation rate in the country,” according to a copy of the bill.

The measure will cover civilian state workers in national and local governments.

A similar bill seeking to increase the allowance to P4,500 was filed before the House of Representatives in March last year.

In 2022, Senators Jose Pimentel “Jinggoy” Ejercito, Jr. and Mark A. Villar filed separate bills seeking to double the allowance to P4,000.

PERA, the government’s financial assistance program for state employees, was first implemented in 1990 and started at P900 a month. Congress increased it to P2,000 in 2009.

“In today’s context of high inflation and economic uncertainty, increasing and regularly adjusting PERA is vital to ensure that public sector workers are adequately supported,” Mr. Tulfo said in the bill’s explanatory note.

In the first four months of the year, inflation averaged at 3.4%, below the Philippine central bank’s 3.8% full-year forecast.

On Tuesday, Budget Secretary Amenah F. Pangandaman said government workers will get their midyear bonus starting May 15.

She told a palace briefing that a midterm report studying a wage increase for public servants is expected to be available by June.

“By increasing the PERA and instituting an automatic adjustment mechanism, the bill ensures that government employees can maintain their economic stability and continue to perform their duties effectively,” Mr. Tulfo said. — John Victor D. Ordoñez

Marcos vows to crush destabilization plots, combat disinformation online

PHILIPPINE STAR/KRIZJOHN ROSALES

By Kyle Aristophere T. Atienza, Reporter

PHILIPPINE President Ferdinand R. Marcos, Jr. vowed on Thursday to fend off destabilization plots, as he cited disinformation efforts spreading online to undermine his administration.

“We will also not allow agents within the country to destabilize our government and create division within our nation,” he said before an audience of troops at a military camp in Cagayan de Oro City in southern Philippines.

Mr. Marcos urged them to develop new skills “to combat new forms of warfare, including those that extend up to the digital realm.”

“We must be prepared to fight false narratives, disinformation, and digital operations that seek to sow conflict [against us] and among us,” he said.

In a press release, the Presidential Communications Office said the President also warned that the country’s enemies “may be hiding in the shadows, or infiltrating the very communities and institutions that the government seeks to protect.”

Mr. Marcos said his government is ready to counter any destabilization attempts. Last week, he said he had not received any destabilization plot report involving active police officials, although he did not rule out the possibility of retired officials making such a move.

Former senator Antonio F. Trillanes IV, a former soldier, earlier said ranking police officials were recruiting colleagues to join a supposed ouster plot against the Marcos administration.

He has been linking the alleged plot to the camp of former president Rodrigo R. Duterte, who led a political rally earlier this month calling for Mr. Marcos’ resignation.

At the House of Representatives on Thursday, Mayor Rey T. Uy of Tagum City told reporters that Davao del Norte Rep. Pantaleon D. Alvarez — an ally of Mr. Duterte — should be expelled from Congress for calling on the Philippine military to withdraw their support for the President.

“Congressman Alvarez, during the rally, (called) for the… military, army to withdraw their support to President Marcos. To us, that’s unacceptable,” said Mr. Uy on the sidelines of the hearing on his ethics complaint against the former House speaker.

However, Party-list Rep. Felimon M. Espares, who chairs the House ethics committee, said the panel was only concerned with deliberating whether or not Mr. Alvarez’s conduct during the political rally was unbecoming of a congressman. The panel won’t deliberate the legal and criminal aspects of his statements, he said.

In April, Mr. Alvarez urged the Armed Forces of the Philippines (AFP) to withdraw their support for Mr. Marcos to de-escalate tensions with Beijing over the South China Sea.

The Philippine leader has veered away from some of the key policies of his predecessor, standing up to China amid its intrusions into Philippine waters and vowing to shift the anti-drugs campaign to rehabilitation from a deadly approach. — with a report from Kenneth Christiane L. Basilio

1 in 3 Filipino kids stunted — study

BETH MACDONALD-UNSPLASH

ONE in three Filipino children are experiencing stunted growth or malnutrition due to a lack of high-quality early childcare and prenatal care, according to the report released by the Philippine Institute for Development Studies (PIDS) and the Second Congressional Commission on Education (EDCOM-2) this month.

In a statement on Thursday, EDCOM-2 said that there is a “severe underinvestment” in the welfare of very young children in the Philippines, which also causes their early education to suffer.

“Overall, the current supply of capital investments for ECCD (early childhood care and development) in the country falls short of meeting the goal of universal access for children aged 3-4 to ECCD services,” the study dated May 2 said.

The government only spends about P3,870 per child for health, compared to the $150 (P8,588.55) other lower and middle-income countries spend on children’s health, it added.

PIDS noted that participation in early education of Filipino children aged 3-4 is also still below pre-pandemic levels.

“The country’s current facilities are insufficient by around 33,000 to meet the 96,000 daycare/child development centers required to meet 100% of the demand,” the report said.

EDCOM-2 Executive Director Karol Mark Yee said despite the government’s array of feeding programs, it is still crucial to start boosting investments in early childhood care to address malnutrition and stunting.

“We need to go the extra mile to understand the complexities of the underlying ills of our education system, so that our proposals are needs-based, responsive, feasible, and sustainable,” said Mr. Yee. “This would include identifying the right investments for our Filipino children.”

Senator Sherwin T. Gatchalian, who heads the Senate Basic Education Committee and co-chairperson of EDCOM-2, said education stakeholders and local government units should boost cooperation in early childhood care and education.

“Moving forward, local government units should also have more accountability in ensuring that the benefits of early childhood care and development) programs, including health and nutrition interventions, are felt by every Filipino child,” he said. — John Victor D. Ordoñez

OSG forms team to probe mayor

THE OFFICE of the Solicitor-General (OSG) said on Thursday it has formed a team to investigate a mayor at the center of controversy over her citizenship and legal right to hold public office.

In a Viber message to BusinessWorld, Solicitor General Menardo I. Guevarra said: “I created a special team of solicitors last week to look into the matter and determine if there is good reason to believe that the subject is unlawfully holding or exercising a public office.”

The team, he said, is working with the Commission on Elections (Comelec), the Departments of the Interior and Local Government (DILG) and of Education (DepEd), the Philippine Statistics Authority (PSA), and the Bureau of Immigration (BI), among others.

“We’re in the fact-finding stage. If there’s enough factual basis, the OSG may consider a quo warranto proceeding,” said Mr. Guevarra.

In a Senate hearing last week, Senator Ana Theresia “Risa” N. Hontiveros-Baraquel questioned the mayor’s citizenship after pointing out alleged irregularities in the information presented on her background, calling them “dubious.”

Comelec Chairman George Erwin M. Garcia said a quo warranto may be filed by the OSG against the mayor because “citizenship and residency are continuing qualifications to hold public office.”

However, he explained that when Comelec had accepted her certificate of candidacy (CoC) to run for mayor back in 2022, their duty in that official transaction was merely “ministerial.”

Comelec Spokesman John Rex C. Laudiangco, in a separate Viber message, told BusinessWorld that since the mayor already took her oath and assumed office after her proclamation, questions about her qualification to remain in her post is now within DILG’s jurisdiction.

“The jurisdiction of Comelec as far as candidates are concerned, starts from the filing of the candidacy and ends upon proclamation,” Mr. Garcia said.

BusinessWorld reached out repeatedly to the mayor in question, but did not receive a reply.

Speaking in Cagayan de Oro City on Thursday, President Ferdinand R. Marcos. Jr. addressed the issue, saying that the mayor had long been under investigation.

“I know all the politicians from Tarlac, and no one knows her,” Mr. Marcos, speaking in Filipino, said. “So, we are wondering where she came from?”

He said that apart from the Senate, the Bureau of Immigration should also be investigating the truth behind the mayor’s identity and origin.

Earlier, the mayor was being linked to the operation of a Philippine Overseas Gaming Operator in her town which had employed hundreds of Chinese citizens. — with a report from Kyle Aristophere T. Atienza and Chloe Mari A. Hufana

Probe of drug killings sought

PHILIPPINE STAR/ MIGUEL DE GUZMAN

NEARLY two years after former president Rodrigo R. Duterte stepped down from power, a congressman wants to open an investigation into alleged extra-judicial killings (EJK) during his administration in the House of Representatives.

“The main point of my committee is to be able to determine the human rights violation on these (incidents),” House Committee on Human Rights Chair and Manila Rep. Bienvenido M. Abante, Jr., speaking partly in Filipino, said in a media briefer. “For example, the drug pushers, why didn’t they undergo legal processes, why were they killed immediately?”

A total 8,663 Filipinos have been killed under Mr. Duterte’s “war on drugs,” according to a report by the United Nations (UN) Office of the High Commissioner for Human Rights.

Estimates by Philippine human rights groups are three times more than the United Nations figure, indicating that around 27,000 to 30,000 throughout his administration.

However, Mr. Abante said that the proposed investigation will not call Mr. Duterte or his former police chief, Senator Ronald M. dela Rosa, to the hearing.

They would not be invited due to parliamentary courtesy reasons, Lanao del Sur Rep. Zia Alonto Adiong said in the same briefing, noting that “the House really gives primacy on the parliamentary courtesy principle.”

Among the high-ranking officials set to be invited to the House panel would be former Department of Justice (DoJ) Secretary Menardo I. Guevarra and former PNP Chief Oscar D. Albayalde, who succeeded Mr. Dela Rosa as head of the Philippine National Police. — Kenneth Christiane L. Basilio

Woman convicted of terrorism

FREEPIK

A MEMBER of the radical group Maute was found guilty of terrorism financing last Wednesday by a Taguig court, sentencing her to reclusion perpetua and a fine of P500,000.

In a 39-page decision, Judge Marivic C. Vitor of the Taguig City Regional Trial Court Branch 266 found a female member of the Maute family from Marawi City guilty of allowing five members of the group to use her car with several improvised explosive devices.

The court said the female member and the five terrorists executed a series of kidnappings and beheadings of civilians in Lanao del Sur in 2016.

“After a judicious review of the records and evidence of this case, the Court finds that the prosecution was able to prove the elements of the crime of terrorism financing,” ruled Ms. Vitor.

In a statement, Justice Secretary Jesus Crispin C. Remulla welcomed the decision, saying: “We are committed to scoring more convictions, particularly on cases involving terrorism and terrorism financing.”

“We will never let terrorism prevail nor let it sow fear among our people,” he added. — Chloe Mari A. Hufana

Officials mull airport for Basilan

STOCK PHOTO

COTABATO CITY — Top officials of two Bangsamoro regional agencies are in talks with Governor Hadjiman H. Salliman of Basilan for the viability of building the first airport on the island province to boost its economy.

BARMM Transportation and Communications Minister Paisalin P. Tago told reporters on Thursday that after a meeting with Mr. Salliman in Zamboanga City last Wednesday, they have forged an agreement for a joint feasibility study on the construction of a commercial airport in Lamitan City.

Basilan, home to mixed Muslim and Christian residents, is now touted as the new investment hub in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) that also covers the provinces of Maguindanao del Norte, Maguindanao del Sur, Lanao del Sur, Sulu and Tawi-Tawi and the cities of Lamitan, Marawi and Cotabato. 

The Bangsamoro Planning and Development Authority (BPDA) and Lamitan City Mayor Roderick H. Furigao were also parties to the MU on the planned Basilan Airport Development Project to rise in Barangay Calugusan.

“We are looking forward to a fruitful outcome of this joint endeavor. We are sure this airport project will improve commerce and trade in Basilan. This is a long-time wish by me and my constituents,” Mr. Salliman said.

“There is peace now in Basilan and this project can certainly boost the island’s economy,” Mr. Tago said. — John Felix M. Unson

Verde Island protection pushed

TWO companies under the Lopez Group have teamed up with government agencies for the conservation of the Verde Island Passage (VIP), a significant marine ecosystem in the country.

First Gen Corp. and the ABS-CBN Foundation signed a memorandum of understanding with the Department of Environment and Natural Resources (DENR) and the Department of Energy (DoE) on Thursday.

The Verde Island Passage is a strait between Batangas and Mindoro Island noted for its high concentration of fish, coal, crustacean, mollusk, seagrass, and mangrove species, making it a leading biodiversity site. 

“In our quest to conserve, preserve, and protect the critical marine ecosystem of the VIP, FirstGen and the ABS-CBN Foundation are pioneers in this important area in terms of its support for science, as well as the championing of ESG and climate action,” Environment Secretary Maria Antonia Yulo-Loyzaga said in a briefing.

“The Lopez Group, FirstGen, along with the ABS-CBN Foundation, have been working to protect and conserve the Verde Island Passage for the last 20 years,” she added.

FirstGen, through First Philippine Conservation, Inc., developed and implemented the ecosystem-based Verde Island Integrated Conservation and Development Program.

Earlier this month, conglomerates San Miguel Corp., Metro Pacific Investments Corp., and Aboitiz Equity Ventures, Inc. also signed an MoU with the DENR and the DoE.

The MoU covers a period of five years with funding from each of the companies, and will ensure VIP and its nearby province will continue to thrive as a marine protected area. — Sheldeen Joy Talavera