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AboitizPower taps Thai firm for smart power plants

BANGKOK — Aboitiz Power Corp. (AboitizPower) has partnered with Thailand-based REPCO NEX Industrial Solutions to turn its conventional coal power plants in the Philippines into smart facilities.

“This partnership between AboitizPower and REPCO NEX will establish the Philippines’ first smart power plant,” Ronaldo S. Ramos, chief operating officer at unit AboitizPower Thermal Business Group, said at the signing ceremony here on Monday.

He said the company would “harness the power of data science and AI (artificial intelligence) to create a digital twin technology.”

Its “Project Arkanghel” will develop digital twins for the 300-megawatt (MW) Therma South, Inc. in Davao City and the 340-MW Therma Visayas, Inc. in Toledo City, Cebu.

Both assets will serve as pioneer models for future installations at other thermal sites, AboitizPower said in a separate statement.

It added that digital twins are a virtual replica of a power plant that mimics its operational processes and systems, allowing operators to simulate or stress-test scenarios.

The technology will also let them detect faults and glitches earlier and in real time, all within a virtual environment.

A digital power plant will streamline data collection and review for the benefit of asset health monitoring, life cycle management and predictive maintenance, the company said.

“The energy landscape in the Philippines is constantly evolving on the path towards transition,” AboitizPower Chief Finance Officer Juan Alejandro “Sandro” A. Aboitiz said at the ceremony.

“Our economy continues to grow at a rapid pace, requiring new sources of dependable and reliable power supply to support that economic growth,” he added.

In 2022, the Aboitiz group launched its Great Transformation campaign to become the Philippines’ first “techglomerate” by using resources and cross-company synergies to deliver more value. — Sheldeen Joy Talavera

Furiosa, Garfield top disappointing Memorial Day weekend

Anya Taylor-Joy in a scene from Furiosa: A Mad Max Saga. — IMDB

Furiosa: A Mad Max Saga, the latest installment of the dystopian action films, took in $25.6 million in the United States in the first three days of the Memorial Day weekend.

The Warner Bros. Discovery, Inc. picture had been projected to generate between $30 million and $40 million, according to estimates from the research site Boxoffice Pro.

Meanwhile, The Garfield Movie, about the comic strip cat, came in second at $24.8 million, according to data from Comscore, Inc. Its distributor, Sony Group Corp. projected that Garfield would lead the weekend over four days through the Monday holiday.

Either way, the results could be the worst performance for a No. 1 film released on Memorial Day weekend in decades. The industry has been struggling to bounce back from the twin strikes by writers and actors last year and a consumer shift to watching films at home.

The opening of Furiosa was accompanied by a good deal of publicity, including a Cannes Film Festival premiere and much media attention to returning director George Miller and new star Anya Taylor-Joy. — Bloomberg

Fake scientific studies are a problem that’s getting harder to solve

BRANDI REDD-UNSPLASH

FAKING it until you make it may be a common practice in some careers. But it’s clearly unethical for scientists and medical researchers. All the same thousands of fake papers are churned out by so-called paper mills and published every year, many of them in peer-reviewed journals. The issue made headlines recently when Wiley, a respected publishing house, announced it would be dropping 19 of its journals associated with a publisher they had acquired, called Hindawi, in part because they were infested with fake papers. But the problem was known before: The fraud sleuthing blog For Better Science called attention to the “fraud-positive” attitude at Wiley back in 2022. (And I covered the problem of fake research on my Follow the Science podcast back in 2021.)

These aren’t just papers with fudged data — in many cases, all the data and the text have been invented from whole cloth, generated with artificial intelligence, or plagiarized. They’re fake all the way through. The creators of these fake papers have been dubbed paper mills, and they operate by reaching out to scientists and offering to write papers with the scientists’ names at the top — for a price.

Paper mills have proliferated because of a pathology that’s afflicted many areas of science. Scientists are rewarded for the quantity of their research more than its quality. And peer review is non-functional in many journals.

In that disturbed ecosystem, parasitic companies flourish by helping scientists cheat to bolster their resumes, snag competitive academic jobs, and impress funding agencies. Ultimately that causes some precious resources to get routed to cheaters and away from more worthy scientists.

Worse still, some of the fake results can seep into other articles, contaminating the state of medical knowledge, said David Sanders, a biologist at Purdue University who has been tracking scientific misconduct and the paper mill problem. For enough money, the paper mills can make a fake paper look more influential by creating other fake papers that cite it, he said. The paper mill studies can even get cited in seemingly legitimate review papers if the review authors — who are also trying for volume — don’t pay sufficient attention to what they’re reviewing.

Some paper mill papers show obvious flaws, including patently plagiarized graphs, images, and text. Some are translated from English to another language and back — and that can lead to bizarre wordings, such as “lactose intolerance” becoming “lactose bigotry,” said Sanders. Still others show absurdities like an experiment in which half a sample of ovarian cancer patients was male.

Now with the help of ChatGPT, paper mills can create much more coherent, plausible papers cheaply and effortlessly. Scientific fields beset by fake papers might do better to address the roots of the problem rather than trying to chase them down. Ivan Oransky, co-founder of the blog Retraction Watch, has been tracking problematic research for years. He said that paper mill output has been estimated to make up about 2% of papers. That may not sound big, but somewhere between 2 million and 6 million scientific papers are published every year, so 2% adds up to a lot.

Some journals are more than 50%-generated by paper mills, said Sanders. The way he described it, the paper mills find a susceptible journal and then “they completely parasitize it.”

He said he blames not just shoddy peer reviews, but a perverse system of evaluating scientific merit. “Hiring committees or grant committees don’t have the wherewithal to make an actual evaluation,” Sanders said. So, scientists get rewarded based on the number of publications they author and the number of other publications that cite these.

Even many legitimate journal articles don’t advance the state of knowledge, he said, at least in the biomedical arena. Researchers might have gathered a bit of additional data for an ongoing project, which should be deposited into a data bank rather than turned into an unnecessary paper. “I would say the majority of articles that are published now make no contribution beyond the data they present,” he said. “They are not worth reading.”

The whole incentive system is warped, he said, and people are so dependent on grants for their survival that they’ll “do whatever is necessary.”

The fake papers often use a pre-existing template, he said, filling in words and data like a game of Mad Libs. Paper mill creations are more pervasive in fields where papers tend to be formulaic, like nanotechnology, computer science, and an area of cancer research called microRNAs.

But some fault also lies with other scientists who cite these fake papers in review articles — which are proliferating at a rate far beyond what’s beneficial to science or society. Even when initial papers get retracted, their impact re-mains in the form of citations and mentions in review papers.

Eventually, the bad papers can contaminate standards of medical care, said Sanders. Some people are developing cancer diagnostics based on fake papers. He’s seen a paper mill product referenced in a thesis defense. He’s even heard from cancer patients citing a fake paper to inquire about alternative therapies.

Funding agents could help by refusing to fund work that goes into badly reviewed journals laden with fake findings. They could keep a list of approved journals that do rigorous peer review and only fund work aimed at get-ting published in those. Sanders said more funding should also go into fraud detection in science.

People don’t need millions of scientific papers, most of them doing little to advance our knowledge. We need more scientists to put their energy into quality control or slow, careful research. Science is a competitive field and those who make it shouldn’t be fakers.

BLOOMBERG OPINION

Steady rates expected for prime developments in CBDs — Cushman & Wakefield

OJ SERRANO-UNSPLASH

THE OFFICE VACANCY in Grade A and prime offices in Metro Manila rose during the first quarter, according to real estate services firm Cushman & Wakefield.

Office vacancies in Metro Manila increased to 16.53% from 16.16% between the first quarters of 2024 and 2023, Cushman & Wakefield said in a statement last week.

It expects vacancy rates to stay between 15% and 20% in the near to medium term.

This is because of the combined impact of new completions, the return of spaces from right-sizing initiatives by major occupiers, and the delayed expansion plans of certain information technology and business process outsourcing management (IT-BPM) firms, the real estate agency said.

“Despite the setback in overall market vacancies, we are optimistic that the commercial real estate market in Metro Manila will continue its recovery, albeit at a slower pace, for the remainder of 2024,” said Tetet Castro, director and head of Tenant Advisory Group at Cushman & Wakefield.

Meanwhile, the total supply is expected to increase by 0.44 million square meters (sq.m.) in the second quarter but completion delays are imminent.

The real estate agency also noted that the recovery of office space absorption in the office segment hit a snag due to delays in the expansion decisions of local IT-BPM companies.

The negative net absorption of roughly 25,000 sq.m. was due to slower take-up in the first quarter. Ms. Castro noted that average asking rates fell to P1,012 per sq.m. per month from P1,023 per sq.m. in the last quarter as high market and building vacancy rates rose.

The report said that despite a decline in headline rent, the majority of prime and Grade A developments in major central business districts (CBDs) are expected to keep their asking rates steady.

“With the impending passing of the proposed amendments to the Corporate Recovery and Tax Incentives for Enterprises (CREATE) bill, overall vacancies are bound to be affected in the medium term,” Cushman & Wakefield said.

Due to high vacancy rates, several office developments, especially in fringe locations, are being offered at lower rates, eventually reversing the upward growth trend of the overall average asking rates of Prime and Grade A developments in Metro Manila. — A.R.A. Inosante

Japan renews push to keep yen bears in check at Group of Seven meeting

A Japan Yen note is seen in this illustration photo taken June 1, 2017. — REUTERS

STRESA — Japan renewed its push to counter excessive yen falls during a weekend gathering of Group of Seven (G7) finance leaders, after a recent rise in bond yields to a 12-year high failed to slow the currency’s stubborn decline.

The effort by the government and central bank underscores the dilemma policy makers face as they seek to balance the need to arrest sharp yen drops that hurt consumption, while keeping borrowing costs low to underpin a fragile economy.

After lobbying by Japan, the G7 finance ministers reaffirmed in a communique issued after their meeting in Italy on Saturday their commitment cautioning against excess volatility in foreign exchange rates.

The agreement came after Japan’s top currency diplomat Masato Kanda on Friday talked up the chance of renewed currency-market intervention, telling reporters that Tokyo stood ready to act “any time” to counter excessive yen movement.

“If there are excessively volatile moves that have an adverse effect on the economy, we need to take action, and doing so would be justified,” he said.

Bank of Japan (BoJ) Governor Kazuo Ueda, who also attended the G7 meeting, signaled that soft consumption or rising bond yields will not get in the way of normalizing monetary policy.

Mr. Ueda said on Thursday a slump in first-quarter gross domestic product did not change the BoJ’s view that Japan’s economy was on track for a moderate recovery. Analysts have said the BoJ will likely raise interest rates in coming months if the economy moves in line with its forecasts.

He also refrained from speaking against a recent rise in the 10-year bond yield to a 12-year high, that was driven in part by market expectation the BoJ will soon embark on a full-fledged tapering of bond purchases.

“Our basic stance is for long-term interest rates to be set by markets,” Mr. Ueda said when asked about recent rises in Japan’s long-term rates.

The remarks followed a slew of hawkish signals by the BoJ that has heightened market expectation of a near-term hike in interest rates, or a scale-back in its huge bond purchases.

Mr. Ueda has ruled out using monetary policy to influence yen movement. But he escalated his rhetoric against the impact a weak yen could have on inflation, after the currency’s plunge led to suspected yen-buying intervention by the government on April 29 and May 2.

A Reuters poll showed many analysts project the BoJ to hike rates either in the third or fourth quarter this year.

DATA CLOUDS OUTLOOK
Mr. Ueda also signaled the BoJ’s readiness to slow but steadily raise interest rates, if inflation durably hits its 2% target in coming years as projected.

But data so far have not been promising. Consumption is weak as wage hikes have yet to catch up to the rising cost of living.

Service-sector inflation, closely watched by the BoJ as a key indicator of underlying price trends, also remains flat.

“Services inflation likely peaked out,” said Junichi Makino, chief economist at SMBC Nikko Securities. “It doesn’t seem like underlying inflation will accelerate towards 2%.”

Given such weak signs in the economy, some analysts are shifting attention to whether the BoJ will taper its bond-buying as part of efforts to slow the yen’s decline.

Mr. Ueda has ruled out using the BoJ’s bond-buying as a monetary policy tool, after having exited its radical monetary stimulus in March. But markets remain fixated on the BoJ’s market operations for clues on when it will start to taper.

Some analysts expect the BoJ to decide on slashing bond purchases as early as its next policy meeting in June.

Market expectations of a near-term tapering helped pushed the benchmark 10-year Japanese government bond yield to a 12-year high of 1.005% on Friday.

But the rise in yields has failed to give the yen JPY=EBS much boost. It stood at 156.98 to the US dollar on Friday, not far from the more than three-week low of 157.19 touched on Thursday.

“While markets seem excited about the chance of a policy shift, the BoJ is probably cool-headed about all this,” said Daiwa Securities chief market economist Mari Iwashita, who rules out the chance of a taper decision in June.

“Besides, there’s no guarantee such action could stop the yen’s fall.” — Reuters

Philippines falls to 63rd in Public Integrity Index

The Philippines went down by 10 notches to 63rd out of 119 countries in the 2023 edition of the Index of Public Integrity (IPI) by the European Center for Anti-Corruption and State-Building. It scored 6.03 out of possible 10. The report assesses a society’s capacity to control corruption and ensure that public resources are spent without corrupt practices using the index’s six components.

Philippines falls to 63<sup>rd</sup> in Public Integrity Index

PSEi member stocks performed — May 27, 2024

Here’s a quick glance at how PSEi stocks fared on Monday, May 27, 2024.

National Reinsurance Corporation of the Philippines to conduct its Annual Stockholders’ Meeting on June 26

NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
JUNE 26, 2024 / 2:00 P.M.

DEAR STOCKHOLDERS:

Please be advised that the Annual Meeting of Stockholders of NATIONAL REINSURANCE CORPORATION OF THE PHILIPPINES (the “Company”) will be held on June 26, 2024, Wednesday, at 2:00 p.m., at the Carlos P. Romulo Auditorium, Podium 4, Tower II, RCBC Plaza, 6819 Ayala Avenue, Makati City, with the following agenda:

  1. Call to Order
  2. Proof of Notice of Meeting and Certification of Quorum
  3. Approval of Minutes of Previous Stockholders’ Meeting held on July 5, 2023
  4. Management Report for the Year Ended December 31, 2023
  5. Ratification of All Acts of the Board of Directors and Officers during the Preceding
    Year
  6. Appointment of Independent Auditors for 2024 and 2025
  7. Increase in Directors’ Per Diem for attendance in Board and Committee Meetings
  8. Election of Directors
  9. Re-election of Mr. Medel T. Nera as Independent Director
  10. Other Matters
  11. Adjournment

Only stockholders of record at the close of business on May 13, 2024 are entitled to notice of, to attend, and to participate in this year’s Annual Meeting. Stockholders who are unable to attend the Annual Meeting in person may execute a proxy or vote in absentia.

Proxy
Proxies must be submitted and addressed to the attention of the Corporate Secretary at the 31st Floor BPI-Philam Life Makati, 6811 Ayala Avenue, Makati City, Philippines or via email at asm@nat-re.com not later than 3:00 p.m. on or before June 14, 2024.

A proxy executed by a corporation shall be in the form of a board resolution duly certified by the Corporate Secretary or in a proxy form executed by a duly authorized corporate officer accompanied by a Corporate Secretary’s Certificate quoting the board resolution authorizing the said corporate officer to execute the proxy. Validation of proxies shall be held on June 21, 2024, at 2:00 p.m. at the principal office of the Corporation.

Voting in Absentia
Stockholders who intend to vote in absentia must submit the requirements by email at asm@nat-re.com or at the registration portal.  Please refer to this link for the list of requirements – https://www.nat-re.com/investor-relations/annual-stockholders-meeting/#rvj.

The link for the online voting facility will be emailed to the concerned stockholders after the Company has validated the submitted requirements. Stockholders may cast their votes in absentia from May 28, 2024, until 11:00 a.m. of June 26, 2024.

On-site Registration
To avoid any inconvenience in registering your attendance at the meeting, you or your duly designated proxy, are required to bring this Notice, and any identification documents containing a photograph and signature, such as a passport, driver’s license, or any government-issued identification. Registration starts at exactly 1:00 p.m. and will close at 2:00 p.m. on June 26, 2024.

Copies of the Notice of the Meeting, Definitive Information Statement, and other related documents in connection with the annual meeting may be accessed through the company’s website and through the PSE Edge portal at https://edge.pse.com.ph.

For any concerns, please reach us through asm@nat-re.com.

For complete information on the Company’s annual meeting, please visit www.nat-re.com/investor-relations/annual-stockholders-meeting.

May 23, 2024, Makati City, Metro Manila.

Access to Notice of Meeting, Agenda Items and Explanation of Agenda Items, Proxy Form, Sample Secretary Certificate, Definitive Information Statement, Management Report, Financial Statements, SEC Form 17A and Minutes of Stockholders’ Meeting dated July 5, 2023 can be downloaded by scanning the QR code provided herewith.

Likewise, you may also download it from the Company’s website by clicking this link https://www.nat-re.com/investor-relations/annual-stockholders-meeting/#files.

Electronic copies of the same documents are also available at the PSE Edge.

For the Board of Directors,

(Original Signed)
NOEL A. LAMAN
Corporate Secretary

 

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Foreign chambers seek reforms at PHL airports

PHILIPPINE STAR/MIGUEL DE GUZMAN

THE Joint Foreign Chambers (JFC) declared support Monday for legislative action that will overhaul the governance framework for Philippine airports following flight delays at the Manila gateway.

In a statement, the JFC said it sent a letter to the Senate callings for the approval of “crucial” amendments to the Civil Aviation Authority Act, citing the need for changes after flights at Manila airport were delayed due to technical issues.

“These reforms are essential to enhancing the safety, efficiency, and overall quality of both domestic and international airports in the Philippines,” the JFC said.

The group, in particular, said that the amendments aimed to enhance Civil Aviation Authority of the Philippines’ (CAAP) safety oversight by enhancing its human resource development, fortifying its board and aligning the agency to global standards.

The JFC also called for the creation of the Philippine Airports Authority to separate the regulator and operator functions of the CAAP.

The JFC also backed the creation of the Philippine Transportation Safety Board, which will investigate accidents and improve safety.

“The letter comes after numerous flights in and out of the Ninoy Aquino International Airport last week were delayed due to technical issues with the navigation air traffic management  system,” the JFC added.

The chambers said reforms were also recommended last year following the legislative inquiry into the air traffic management glitch at the airport.

The JFC is a coalition of the American, Australia-New Zealand, Canadian, European, Japanese, and South Korean chambers and the Philippine Association of Multinational Companies Regional Headquarters, Inc.

The group comprises 3,000 members currently engaged in $100 billion worth of trade and $30 billion worth of investment in the Philippines. — Justine Irish D. Tabile

DoTr studying MRT-7 realignment proposal

PHILSTAR FILE PHOTO

THE Transportation department is considering the realignment proposal for the Bulacan segment of the Metro Rail Transit 7 (MRT-7).

“The Department of Transportation (DoTr) is studying the best possible alignment for San Jose City,” Jeremy S. Regino, undersecretary for railways, said in a Viber message to BusinessWorld. 

The DoTr has said that the MRT-7 project is experiencing delays due to the right-of-way issues particularly in San Jose del Monte, Bulacan.

Last week, Bulacan province said the possible realignment of MRT-7 went through the required consultation process.

According to the Bulacan government, it has proposed to divert the Quirino highway route as it is considered a key thoroughfare in the area.

The MRT-7 has a total of 14 stations. It will run from Quezon City to San Jose del Monte, Bulacan, and is expected to carry 300,000 passengers daily in its first year, and up to 850,000 passengers a day in its 12th year.

The commuter rail line’s stations are Quezon North Avenue Joint Station, Quezon Memorial Circle, University Avenue, Tandang Sora, Don Antonio, Batasan, Manggahan, Doña Carmen, Regalado, Mindanao Avenue, Quirino, Sacred Heart, Tala, and San Jose del Monte.

The project is run by San Miguel Corp., with the company financing the construction and set to operate the 23-kilometer commuter rail system under a 25-year concession agreement with the government.

The Transportation department has said it is looking at opening the Quezon North Avenue Joint Station to Lagro by the first quarter of 2025.

The full completion of the MRT-7 Bulacan segment is facing some right-of-way issues particularly in its Bulacan segment, the DoTr said, noting that oppositors are saying that the construction will cause heavy traffic flow in the area.

The Bulacan leg of the MRT-7 will not be completed by 2025 as only 12 stations of the commuter rail line will be operating by then, the DoTr said, adding that the new target for the line’s full operations is between 2027 and 2028. — Ashley Erika O. Jose

Dearth of foreign investment opened door for China to enter key industries — analysts

BW FILE PHOTO

By Kyle Aristophere T. Atienza, Reporter

THE PHILIPPINES needs to do more business with new markets to diversify its economy away from China, whose companies have been willing to invest in areas where other foreign entities have not, raising security concerns, analysts said.

The Philippines also needs to solidify its industrial base to climb the global value chain in response to Chinese moves to invest in strategic industries here, they added.

Brian Poe-Llamanzares, a political scientist and chief of staff to Senator Mary Grace Natividad S. Poe-Llamanzares, said China has made “significant investments” in key Philippine industries like electricity, telecommunications, and water, enabled by the absence of competing foreign investors.

“There are only a few investors who are looking at the Philippines, and many of us would question what China’s intention is in investing in these industries,” he said, speaking at a forum organized by WR Numero Research (WRN).

The National Grid Corp. of the Philippines, in which the State Grid Corp. of China has a 40% stake, has been flagged in various Senate inquiries as a possible national security threat.

China claims the South China Sea almost in its entirety, including areas that are well within the Philippines’ exclusive economic zone. Its Coast Guard has been performing dangerous maneuvers and deploying water cannon to block Philippine resupply missions to its outposts in disputed waters.

Under the previous administration, the Philippines welcomed DITO Telecommunity, in which  China Telecom has a 40% stake, as a the third player in the telecommunications market.

“In the spirit of a free-market economy and with the lack of competitors, it became necessary to bring in a third telco player that was willing to go through congressional scrutiny and service the unserved and underserved areas,” he said.

“It’s not like DITO was our first choice. It was our only option,” he added. “We were yet to see a serious attempt by any American or European player in the telco market.”

In 2019, DITO and the Armed Forces of the Philippines (AFP) signed a deal allowing the company to build facilities in military camps supposedly to help improve the AFP’s ICT infrastructure.

While the Philippines has been touting interest from other countries in helping build the Philippines’ telco and ICT infrastructure, “very few of them actually have put a bet on the table,” he said.

“A lot of them talk about building relations economically with the Philippines but we are yet to see the fruits of those economic (pledges),” he added, “and this becomes a problem for us because we’re a free market; anyone can come in.”

Mr. Poe noted that under the Duterte administration, China effectively entered the water industry by financing a dam.

He was referring to a $283.2-million loan secured by the past administration from China to build a dam to support Metro Manila’s water needs. Chinese contractor China Energy Engineering Corp. Ltd was selected to build the dam on the Kaliwa River, which straddles Rizal and Quezon provinces.

“We are facing an impending water crisis. And so we’re pushed against the wall and who comes to save the day? China,” he said.

“See if there’s anyone else willing to offer us a loan. No one. And so what happens is, China ends up entering the bid and they get the loan,” he added. “And you can’t fault them for doing it. It’s a free market. They can do it. They can provide it.”

Mr. Poe said Manila needs to harness the potential of its amended Public Service Act, which allows full foreign ownership in key domestic industries, by conducting more road shows overseas.

“It’s really important that we continue to expose ourselves to the international community because we were closed off for six years,” he said. “Next thing is we must create a competitive business climate.”

He noted that red tape continues to be a major concern among investors, limiting the sources of foreign investments. “We need more options,” he said.

He said the Philippines also needs to build industry and make its educational system competitive by “removing the stigma of vocational work.”

Bernardo M. Villegas, one of the founders of the University of Asia and the Pacific and a framer of the 1987 Constitution, said at the WRN forum that the Philippines can only make critical utilities independent from China if it embarks on road shows in more countries including Spain, South Korea, Taiwan, and Japan.

“The only way we can make sure that we declare our independence from China with regard to water and electricity is for us in the private sector to have dozens of road shows,” he said.

Mr. Villegas said he expects the planned establishment of a Luzon economic corridor to help the Philippines bag investments from companies seeking to diversify away from China or do business with friendly nations.

The US announced its plan to help establish a Luzon corridor with the help of Japan in April.

The proposed corridor seeks to boost connectivity between Manila, Batangas, and two former US military bases such as Subic Bay and Clark, with a focus on “high-impact” infrastructure such as rails and ports and strategic investments involving semiconductors, clean energy, and supply chains.

China is the Philippines’ largest source of imports and the second-biggest market for exports. The US, on the other hand, is the largest destination of Philippine products and the fifth-largest source of imports.

Mr. Poe said a potential escalation of tensions between the Philippines and China would have little to no impact on the Chinese economy because “what we’re providing them is not critical to China.”

“If they decided to stop trading and buying our fresh fruits and products, then it’s not going to hurt their economy too much.”

“But if we were to develop something more critical — like Taiwan did — an industry that’s indispensable not just to China but also the international community,  then suddenly we’re on negotiating terms.”

Finance dep’t expects rice prices possibly falling 20% by September

PHILIPPINE STAR/EDD GUMBAN

THE RETAIL PRICE of rice is expected to drop by September by as much as 20% due to the impact of improved domestic production and the relaxation of import procedures and tariffs, the Department of Finance said.

“We expect rice prices to go down by 20%, maybe by September. This would entail one, increasing production, and second, reducing tariffs,” Finance Secretary Ralph G. Recto said during the Philippine Economic Briefing on Monday.

The average retail price of well milled rice was P56.52 per kilogram as of early May, according to the Philippine Statistics Authority. A kilo of regular milled rice averaged P51.24 during the period.

“I think we have a game plan as far as that is concerned,” Mr. Recto added.

National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan said that the domestic price of rice has been a challenge for the past few months.

“The forecast on global rice prices by the second half of the year, particularly by September, is going down… It’s past El Niño and the election in India is over,” he added.

Mr. Balisacan said that by September, all restrictions on exports by major producing countries will have been lifted.

“Domestic prices simply reflect the trends in global prices, particularly for rice. So, as global prices come down, provided our exchange rate does not sharply depreciate, which I don’t expect, then we should see domestic prices coming down,” he added.

Separately, Agriculture Undersecretary Asis G. Perez said the decline in rice prices will require not just an increase in rice production, but also imports.

“That’s a common aspiration. That’s been discussed, and 20% is around P10 less in price. (We are) looking at whether we can increase our production,” Mr. Perez said on the sidelines of the briefing.

He added that rice prices could still be influenced by external factors like global price surges.

The Department of Agriculture (DA) downgraded its palay (unmilled rice) target to 20.4 million metric tons (MT) this year, citing the impact of El Niño on domestic production.

Its initial target had been 20.8 million MT. It had hoped to exceed the 20.06 million MT recorded in 2023. 

The reduced tariffs on rice imports were extended until December. Rates for rice imports were kept at 35%, regardless of the minimum access volume and country of origin.

Rice imports have totaled 1.89 million MT as of May 9, according to the Bureau of Plant Industry. — Adrian H. Halili

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