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Landslide toll climbs to 55; aid pours in for Mindanao

PHILIPPINE ARMY/PHILSTAR FILE PHOTO

By Kyle Aristophere T. Atienza, Reporter

THE DEATH toll from a landslide that struck the mining town of Maco, Davao de Oro province a week ago has climbed to 55, authorities said on Monday as aid poured in for areas of Mindanao plagued by disasters wrought by heavy rains in the past weeks.

In a situation report, the Davao de Oro province’s disaster agency said 32 people were still missing as of 7 a.m. on Monday after a landslide in the village of Masara last week.

The tally of missing individuals was still ongoing. On Sunday, 63 people were considered missing.

The landslide happened in the gold-mine village at around 7:40 p.m. on Feb. 6, amid heavy rains due to the combined effects of a northeast monsoon and the trough of a low-pressure area.

Apex Mining Co, Inc. earlier said the area where the landslide occurred was a vehicle terminal for buses and jeepneys servicing its employees as well as members of the community.

Masara, which had a population of 1,125 as of May 2020, was also the site of two landslides in September 2008 that killed 24 people and left two missing.

Operations of 300 rescuers from different disaster teams had been facing interruptions as they searched the area, Edward Macapili, an executive assistant on information and communications at the provincial government, said in a radio interview.

The Philippine disaster agency on Sunday said infrastructure damage from the rain-induced flooding and landslides in Mindanao had hit P738.6 million, P473 million of which was in Caraga region.

Two United States Air Force C-130 cargo planes were being used for the transport of family food packages to Davao region, the military said on Monday.

The US is providing P70 million ($1.25 million) in humanitarian aid for communities in Mindanao affected by recent flooding and landslides.

In a statement, the US Agency for International Development (USAID) said the US Department of Defense will also provide two C-130 aircraft to help the Department of Social Welfare and Development (DSWD) and the Office of Civil Defense to deliver 15,000 social welfare food packs to affected families.

USAID has also partnered with the Department of Human Settlements and Urban Development and the International Organization for Migration to provide emergency shelters for more than 5,000 people.

The agency is also working with the World Food Programme to transport DSWD food packs to 65,000 families. It said the recent floods and landslides had displaced and impacted nearly 1.2 million people.

Last Sunday, Social Welfare Secretary Rex T. Gatchalian led a relief mission in Barangay Masara, providing food and water purification packets from Procter and Gamble and World Vision.

The ethnic Blaan community and a private company, Sagittarius Mines, Inc., also provided P300,000 worth of relief assistance to families affected by the landslide in Barangay Masara.

The aid came in the form of rice, noodles, canned goods, and water, and was delivered by company representatives and Blaan chieftain Domingo N. Collado.

Blaan leaders and the firm are also preparing for the Tampakan Copper-Gold Project in Polomolok town in South Cotabato, 500 kilometers away from Maco. — with reports from John Victor D. Ordoñez and John Felix M. Unson

Wage hikes inflationary, prioritize growth — congressmen

A mural depicting a construction worker is seen in Manila. — PHILIPPINE STAR/KRIZ JOHN ROSALES

By Beatriz Marie D. Cruz, Reporter

TOP economists in the House of Representatives brushed off proposals for a legislated minimum wage increase on Monday, citing its inflationary effects and, instead, raised the need to push for growth and productivity across all sectors.

In a news briefing, House appropriations panel senior vice chairperson, Marikina City Rep. Stella Luz A. Quimbo, said the government should focus on easing inflation and increasing productivity to lessen sectoral risks as a result of possible wage hikes in the future.

“Let us think about the timing — we must first directly address inflation, push for economic growth, and then we can talk about increases in minimum wage,” Ms. Quimbo said in a mix of English and Filipino.

“Companies will pass their wage increase to its prices… a cost-push inflation will happen,” she explained. “You will temporarily satisfy our workers who are also consumers.”

The Senate is set to debate on a proposed P100 across-the-board wage increase for all private sector workers, with Senate President Juan Miguel F. Zubiri saying last week: “Our workers are the foundation of our society, and it is their right to earn a decent pay to have a decent life.”

But Ms. Quimbo maintains: “We can increase our minimum wage once we have productivity increases.”

Echoing her sentiments, Albay Rep. Jose. Ma. Clemente S. Salceda acknowledged the need for productivity enhancements before considering minimum wage adjustments, noting that smaller enterprises would not bear the cost of mandated wage hikes.

About 99.58% of Philippines’ business establishments are micro, small, and medium enterprises (MSMEs), according to a 2021 report by the Department of Trade and Industry (DTI).

Most MSMEs are in the industries of wholesale and retail trade, motor vehicle repair, accommodation and food services, and manufacturing, DTI data showed.

Wage proposals are currently reviewed and approved by regional wage boards. The Department of Labor and Employment (DoLE) noted that 15 out of the 16 Regional Tripartite Wages and Productivity Boards (RTWPBs) issued new wage orders last year.

However, labor groups argued that the wage hikes have been insufficient amid rising prices.

Last year, Federation of Free Workers (FFW) president Jose G. Matula said that regional wage boards have failed to boost productivity and attract investment in the provinces as workers move to Metro Manila for higher pay.

Trade Union Congress of the Philippines (TUCP) legislative officer Carlos Miguel S. Oñate said a legislated wage increase would lead to better productivity and strengthen workers’ purchasing power.

Meanwhile, Mr. Salceda reiterated Congress’ push to amend the 1987 Constitution, opening the Philippine economy to foreign investors, which would result in higher wages.

Foreign investors in the Philippines give 74% more wages than local enterprises, said Mr. Salceda, who heads the House Committee on Ways and Means panel.

P22.74B allotted for calamity fund

PHILIPPINE STAR/EDD GUMBAN

By Luisa Maria Jacinta C. Jocson, Reporter

THE GOVERNMENT is allocating P22.74 billion for its National Disaster Risk Reduction and Management Fund this year, the Department of Budget and Management (DBM) said.

Data from the DBM showed that the government had not yet released any amount from the fund as of end-January.

Last year, the government released P19.74 billion, accounting for 85% of the P23.205-billion allocation.

This year’s calamity fund is 2% lower than last year’s allocation.

In 2023, National Government agencies received P18.05 billion from the fund.

The Department of Public Works and Highways (DPWH) got the biggest allocation at P11.08 billion.

This was followed by departments of Social Welfare and Development (P5.05 billion), the Agriculture (P1 billion), Transportation (P342.47 million), National Defense (P207.64 million), and Science and Technology (P35.18 million).

The fund is tapped to provide relief and rehabilitation assistance to communities or areas affected by human-induced and natural calamities and other capital expenditure for disaster operations.

Brains of Marawi bombing slain

JOHN FELIX M. UNSON

A MAN implicated as the brains of the Dec. 3 bombing of Catholic mass goers at a university gymnasium in Marawi City was killed in a military operation last month, the Armed Forces of the Philippines (AFP) confirmed on Monday.

Khadafi K. Mimbesa, identified as the amir of the Dawlah Islamiyah–Maute Group and the alleged mastermind behind the deadly bombing at Mindanao State University (MSU), was “neutralized” in Lanao del Sur province, alongside other accomplices, during military operations carried out by the 103rd Infantry Brigade on Jan. 25-26, the AFP said.

Helping confirm the killing of Mr. Mimbesa, alias “Engineer,” was a “high-value individual” from the DI-Maute Group who surrendered to the 2nd Mechanized Brigade last Sunday.

President Ferdinand R. Marcos, Jr. personally awarded medals to four wounded soldiers and provided financial assistance to 12 others at the Army General Hospital in Taguig City.

He also assured additional equipment for enhanced medical services at military hospitals.

Recovered from the operation against the DI-Maute gunmen were nine high-powered guns, a bandolier, four Baofeng radios, and a smartphone.

The bombing occurred during a Holy Mass at the MSU gymnasium, claiming 11 lives. Marawi City, still recovering from a 2017 conflict with the Maute group, remains affected. — Kyle Aristophere T. Atienza and John Felix M. Unson

La Union posts tourism recovery

LA UNION tourism has gained momentum since the pandemic, welcoming 550,359 tourists in 2023, marking an 11-percent increase from the previous year’s 494,387, the provincial government said on Monday.

Governor Raphaelle Veronica “Rafy” Ortega-David hailed the upswing, attributing it to tourists rebounding from the pandemic slump. The figures, based on overnight visitors reported by local tourism offices to the Department of Tourism, do not include tourists passing through. The influx also fueled a 16% rise in tourism revenue, reaching over P1 billion in 2023 from P897 million in 2022.

Of the visitors, 6,450 were international tourists, and 543,909 were domestic. April saw the highest arrival rate, with 68,567 visitors.

Urbiztondo beach in San Juan topped the list with 257,559 day visitors, followed by Namacpacan Church in Luna town and Macho Temple in the City of San Fernando.

Other attractions included Tangadan Falls, Bauang’s grape farms, Baluarte Watch Tower, and private-owned destinations like Halo-Halo De Iloko and Pugo Adventure.

A visitor satisfaction survey, La Union Wonders and Adventure, revealed a 57% repeat visitor rate. Most tourists came from Manila, Central Luzon, CALABARZON, and the Cordillera Administrative Region.

Governor Ortega-David expressed gratitude for the province’s growth and pledged to position La Union as the Heart of Agri-Tourism in Northern Luzon by 2025.

The positive news coincides with La Union’s 174th Foundation Anniversary celebration, promising exciting activities for locals and tourists alike on March 2. — Artemio A. Dumlao

NBI investigating bomb threats

PHILSTAR FILE PHOTO

THE NATIONAL Bureau of Investigation (NBI) on Monday said it is working with the Japan Police Attache and other law enforcement agencies to look into the activities of a Japanese national who could be behind several bomb threats including one received by the Department of Environment and Natural Resources.

“The NBI is committed to conducting a thorough and impartial investigation, leaving no stone unturned in the pursuit of justice. We will keep the public informed of any significant developments in this case,” NBI Director Medardo G. de Lemos said in a statement, citing an order by Justice Secretary Jesus Crispin C. Remulla.

The bureau said the same Japanese national could have been behind a recent bomb threat targeting the Metro Rail Transit Line 3, which the Department of Transportation investigated in September last year. The man has been associated with bomb threats across different countries, it added.

“We urge the public to remain vigilant and report any suspicious activities or information related to this case to the authorities,” the NBI said. — John Victor D. Ordoñez

Peso weakens amid rising oil prices and better US job data

BW FILE PHOTO

THE PHILIPPINE PESO on Monday depreciated against the dollar amid higher global crude prices and US labor data that exceeded expectations.

It closed at P56.005 a dollar, 9.4 centavos weaker than its finish on Thursday, according to Bankers Association of the Philippines data posted on its website.

The peso opened at P56.05, strengthened to as much as P55.98 and weakened to as much as P56.16 against the greenback. Dollars exchanged went down to $947.75 million from $1.2 billion.

The peso was dragged down by higher global oil prices amid fading hopes of a temporary ceasefire between Israel and Hamas, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber message.

Oil prices settled higher on Friday, up by about 6% on a week-on-week basis, as worries about supply from the Middle East mounted, Reuters reported.

Brent crude futures rose by 0.7% or 56 cents to $82.19 a barrel. US West Texas Intermediate crude futures settled up 0.8% or 62 cents at $76.84 a barrel.

Oil futures rose throughout the week, buoyed by Israeli Prime Minister Benjamin Netanyahu’s rejection of a Hamas ceasefire proposal on Wednesday. It followed a 7% loss in the previous week.

“The peso weakened after the robust US initial jobless claims report last Thursday,” a trader said in an e-mail.

The number of Americans filing new claims for unemployment benefits fell slightly more than expected, pointing to underlying labor market strength despite a recent surge in announced layoffs, mostly in the technology industry, according to Reuters.

Initial claims for state unemployment benefits dropped by 9,000 to a seasonally adjusted 218,000 for the week ended Feb. 3. The decline reversed the bulk of the previous week’s increase, which had lifted claims to just over a two-month high.

Economists polled by Reuters had forecast 220,000 claims for the latest week. Claims were little changed from a year earlier. Unadjusted claims dropped by 31,192 to 232,727 last week amid sharp declines in filings in California, Ohio, Oregon, New York and Pennsylvania.

The decreases in these states partially unwound surges in the week ended Jan. 27.

The trader expects the peso to recover on Tuesday amid expectations of a softer US consumer inflation report.

The trader sees the peso moving between P55.85 and P56.10 a dollar, while Mr. Ricafort sees it ranging from P55.90 to P56.10. — Aaron Michael C. Sy

PSEi snaps out of rally as investors take profits

By Revin Mikhael D. Ochave, Reporter

PHILIPPINE STOCKS ended their five-day rally on Monday as investors booked profits and took a cautious stance ahead of the Bangko Sentral ng Pilipinas (BSP) policy meeting on Feb. 15.

The main Philippine Stock Exchange Index (PSEi) fell by 0.61% or 42.34 points to close at 6,807.82. The broader all-share index shed 0.22% or 8.15 points to 3,566.06.

“Investors took some gains following five consecutive days of market rally,” Claire T. Alviar, a research analyst at Philstocks Financial, Inc., said in a Viber message. “Many investors were also cautious while waiting for the BSP’s policy meeting this week.”

At its December meeting, BSP kept the benchmark rate steady at a 16-year high of 6.5%. This was after the Monetary Board tightened rates by 450 basis points from May 2022 to October 2023 to tame inflation.

The local bourse retreated as investors awaited Morgan Stanley Capital International (MSCI) rebalancing results, Luis A. Limlingan, head of sales at Regina Capital Development Corp., said in a Viber message.

“Investors took profit as many will be awaiting the latest results from the MSCI rebalancing and some key economic data in the United States this week,” he said.

The US will release inflation data on Feb. 13 that could determine the direction of policy rates for the rest of the year, he added.

Almost all of the market’s sectoral indexes fell on Monday, except for services, which gained 0.42% or 7.31 points to 1,720.84.

Property fell by 1.29% or 38.42 points to 2,931.37, while industrials declined by 1.06% or 97.93 points to 9,092.86. Mining and oil shed 0.77% or 69.49 points to 8,918.89, while holding firms lost 0.51% or 33.14 points to 6,388.20. The financial index lost 0.46% or 9.13 points to 1,955.80.

“Among the index members, GT Capital Holdings, Inc. was at the top, increasing by 2.81%, while ACEN Corp. lost the most by 3.20%,” Ms. Alviar said.

Value turnover fell to P4.19 billion with 510.17 million issues switching hands compared with 535.76 million issues worth P6.89 billion on Thursday.

Decliners beat advancers 106 to 81, while 51 shares were unchanged. Net foreign buying declined to P455.58 million from P953.68 million on Thursday.

Gradual cuts to PIFITA tax on interest removed

DOF.GOV.PH

THE Department of Finance (DoF) said on Monday that its revised proposal to simplify tax rates for passive income and financial intermediaries include keeping tax rates on interest income at 20% instead of the gradual reduction to 15% previously.

Keeping the rate at 20% instead of the gradual decrease by 2028 would generate about P30.8 billion in revenues, Finance Assistant Secretary Karlo Fermin S. Adriano told a Senate Ways and Means Committee hearing on the proposed Passive Income and Financial Intermediary Taxation Act (PIFITA).

The DoF is proposing to keep the 10% income tax rate for dividends instead of raising it to 15% to stay on par with the Southeast Asian regional average, Mr. Adriano said.

“The idea here is that dividends are already subject to corporate income tax, basically having it at 15% will make us not competitive because when you compare it to our neighbors 10% is the average,” he said.

“The goal is to frontload the implementation of the revenue-increasing provisions in 2024 and backload some of the administration of revenue-eroding provisions in 2028 when the country is in a better fiscal position.”

The adjusted tax reform proposal will decrease the previously projected P83 billion in foregone revenue from changes to taxes on passive income, financial intermediaries, financial transactions and excise tax on pick-up trucks to P12.2 billion in revenue, he said.

Mr. Adriano added that the DoF is working with the National Economic and Development Authority to determine the overall economic impact of the tax reform program.

Senator Sherwin T. Gatchalian, who heads the Ways and Means Committee, said technical working groups will finalize the PIFITA measure. — John Victor D. Ordoñez

Drought warning raised for provinces producing close to 50% of PHL rice

DROUGHT induced by El Niño is expected to hit five major rice-growing provinces that accounted for nearly half of the country’s rice output in 2023, the government weather service said.

In a report, the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) said the affected provinces are Nueva Ecija, Isabela, Pangasinan, Cagayan, and Negros Occidental, with drought conditions expected to prevail until the end of February.

PAGASA defines drought as three consecutive months of way below normal rainfall conditions or greater than 60% reduction from average rainfall.

PAGASA has said that the effects of El Niño may run until the second quarter. An estimated 63 provinces will experience droughts or dry spells.

In 2023, the Philippines reported output of 20.06 million metric tons (MT) of palay or unmilled rice, according to the Philippine Statistics Authority.

This exceeded the 20 million MT target set by the Department of Agriculture (DA) and was 1.53% higher than the prior year.

The five provinces represent 49.52%, or 9.93 million MT, of palay production in 2023.

The DA’s target was unchanged in 2023, with the impact of El Niño likely offsetting any productivity gains in the rice industry.

Iloilo, another top rice-producing province, is set to experience dry spells during the period. The province produced 1.07 million MT last year, or 5.33%.

PAGASA defines dry spells as “below normal” rainfall conditions for three consecutive months, or a 21–60% reduction from the area’s average rainfall.

Other top rice-producing provinces are expected to be unaffected by the ongoing El Niño until the end of February. They are Camarines Sur, Maguindanao, Tarlac, Bukidnon, and Cotabato.

The provinces made up 19.64% of palay production in 2023.

Initial reports put rice damage and losses from El Niño at P151.3 million, according to the DA’s third El Niño bulletin.

PAGASA said the strong and mature El Niño currently prevailing is projected to continue through February. A transition to a state known as ENSO-neutral (El Niño-Southern Oscillation) is then expected in the second quarter.

ENSO-neutral conditions are those that are neither El Niño nor La Niña, PAGASA said.

Last week, President Ferdinand R. Marcos, Jr. announced a solar irrigation program to mitigate the impact of El Niño and help farmers achieve rice self-sufficiency. — Adrian H. Halili

Bill seeking to ban POGOs clears House gaming committee

AIDAN HOWE-UNSPLASH

A HOUSE of Representatives committee approved a bill that seeks to ban and declare illegal Philippine Offshore Gaming Operators (POGOs), alleging that the gaming companies are involved in money laundering and human rights violations.

“The continued operation of POGOs is a public exhibition and a confession of frustration over (the government’s) inability to properly address our pitiful national economic condition,” Manila Rep. Bienvenido M. Abante, Jr. said in House Bill No. 5082.

The House gaming and amusements committee also approved a resolution urging the Philippine Amusement and Gaming Corp. (PAGCOR) to ban POGOs.

“The POGOs form part of a multi-billion gambling industry contributing revenue to the country, but they have also been allegedly used for illegal activities such as money laundering, illegal immigration and employment and kidnapping and other violent (offenses),” Cagayan de Oro Rep. Rufus B. Rodriguez said.

As many as 4,039 have been victims of POGO-related crimes, the Philippine National Police (PNP) told a Senate hearing last year.

“Law enforcement operations… reveal the involvement of licensed owners of POGOs in illegal activities such as human trafficking, kidnapping and scamming operations such as romance scams, investment scams and cryptocurrency scams,” the PNP’s anti-cybercrime group director, then-Brigadier General Sidney S. Hernia, told legislators.

PACGOR Chairman Alejandro H. Tengco noted an increase in POGO licensees coming from Singapore, Malaysia and Europe.

“Initially in 2019, 2020, 2021, majority of the licensees were composed of Chinese corporations. However, as the industry was evolving… especially… in the second half of 2022, that trend has been reversing,” Mr. Tengco said.

“There have been an increasing number of licensees coming from other countries like Singapore, Malaysia, and even Europe and companies coming from the US,” he said.

Mr. Tengco also said that all POGO licensees were declared probationary in September, and were required to reapply to assess the “worthy players or licensees in the industry.”

“From close to 295 licensees in 2019, we’re already down to about 75, or close to 30% (off the peak),” Mr. Tengco told the committee.

PAGCOR also noted a new classification of licensees called SBPOs under the business process outsourcing (BPO) sector.

“These companies service foreign operators, whether land-based or online, that are based either in Europe or in the US,” Mr. Tengco told legislators.

“We believe that so many Filipinos involved or working for BPOs are really basically gaining from all these.”

Around 15 SBPOs have been given a license to operate, he said. — Beatriz Marie D. Cruz

PPA awards P273-million Oriental Mindoro project

FACEBOOK/PORT OF BULALACAO

THE Philippine Ports Authority (PPA) said it awarded the P272.92-million Bulalacao Oriental Mindoro port expansion project to Orient Star Construction, Inc.

According to a notice of award dated Feb. 12, the Mindoro-based construction company was awarded the contract after passing the post-qualification evaluation of PPA’s bids and awards committee.

The company also submitted the lowest bid among five bidders for the project, the PPA said.

The PPA said only five of the initial six bidders submitted financial and technical proposals for the Bulalacao port expansion project after Luzviminda Engineering withdrew.

The other four companies that submitted bid proposals are Vicente T. Lao Construction; MAC Builders Corp.; J.C Piñon Construction, Inc.; and Sunwest, Inc.

Jay Daniel R. Santiago, PPA general manager, has ordered the company to conclude a contract with the agency and post a performance security within 10 days from the receipt of the notice of award.

“Failure to enter into the said contract or provide the Performance Security shall constitute sufficient ground for the cancellation of the award and forfeiture of your Bid Security,” Mr. Santiago said.

The port expansion project must be completed over 480 days or 16 months. The project includes removal and excavation and work on the port operations area and covered walkway, passenger terminal building and pumphouse. — Ashley Erika O. Jose

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