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Axelum signs multi-year coconut water supply deal with US brand Vita Coco

AXELUM Resources Corp. signed a 10-year coconut water supply deal Thursday with US customer The Vita Coco Company., Inc.

Axelum Chairman and Chief Executive Officer Romeo I. Chan said that the deal runs until 2033, with an additional option for extension by another five years.

Asked about the value of the deal, Mr. Chan declined to answer.

He added that the supply deal will bolster the company’s “fastest-growing segments,” adding that the company is focused on meeting growing demand from Vita Coco.

Axelum recently constructed a new facility to bolster production and meet the long-term volume requirements of Vita Coco.

“We are buying coconuts up to a 200-kilometer radius all over Mindanao, and we’ve augmented the income of farmers by buying 187 million coconuts every year, that’s valued at P1.12 billion,” Mr. Chan said.

Axelum has business interests in manufacturing coconut water and other such products for the domestic and international markets.

It ships its products to the US, Canada, Australia, New Zealand, Europe, the Middle East, Japan, and elsewhere in Asia.

Mr. Chan said that the company has supplied about 260 million liters of coconut water since 2009, when Axelum became the first non-Brazilian supplier to Vita Coco.

Citing a report by SkyQuest Technology, Mr. Chan said that the global coconut water market is set to expand to $25.18 billion by 2031, with a compounded annual growth rate of 16.1%.

“As far as supply, we strive for the highest number. But our goal is to double and then redouble the business. We want to grow,“ Jonathan Burth, Vita Coco chief operating officer said.

Mr. Burth added that Axelum supplies around 40% of the company’s coconut water requirements.

Vita Coco’s products include Original Coconut Water, Farmers Organic and Pressed Coconut Water. — Adrian H. Halili

NEA loans to power co-ops hit P263.78M in first quarter

PHILSTAR FILE PHOTO

THE National Electrification Administration (NEA) said it lent P263.78 million in loans to 12 electric cooperatives in the first quarter of 2024.

Citing a report from its Accounts Management and Guarantee department, the NEA said that P178.45 million helped fund capital expenditure projects of nine electric cooperatives.

Meanwhile, three electric cooperatives availed of P72 million for working capital. These borrowers are Camarines Sur III Electric Cooperative, Inc., Camotes Electric Cooperative, Inc., and Negros Oriental I Electric Cooperative, Inc.

Bohol I Electric Cooperative, Inc. took on a P13.33 million calamity loan to rehabilitate the Janopol Mini-Hydro Power Plant which NEA said was damaged by Super Typhoon Odette in 2021.

“The NEA has been offering financial assistance to ECs (electric cooperatives) through its Enhanced Lending Program,” the agency said.

The program consists of regular, calamity and concessional loans, standby and short-term credit loans, single-digit system loss loans, renewable energy loans, and modular generator set loans.

Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001, tasks the NEA with overseeing missionary electrification and providing financial, institutional, and technical assistance to electric cooperatives. — Sheldeen Joy Talavera

US-China ‘decoupling’ seen disrupting Philippine trade

REUTERS

THE “decoupling” of the US and Chinese economies could affect Philippine trade as manufacturers rely on demand from both countries, with China also being a key source of imports, according to Moody’s Analytics.

“(The) Asia-Pacific economies are sensitive to changes in the world’s top two economies. US-China decoupling and changing growth dynamics within China are key risks for the region, although some countries and industries are more exposed than others,” Moody’s Associate Economist Dave Chia and Senior Economist Stefan Angrick said in a report.

The US-China trade war began in 2018 after hundreds of billions of dollars worth of tariffs were imposed by the two economies.

The US and China were the Philippines’ top export markets in 2023, according to the Philippine Statistics Authority (PSA). Its total exports to the US were valued at $11.55 billion while exports to China were worth $10.93 billion.

China imports are crucial to key Philippine industries like minerals and metals, electronics, textiles, machinery, agriculture, chemicals, and vehicles, according to a Moody’s chart.

“China is a key supplier of inputs and an increasingly important market for many of the region’s manufacturers,” Moody’s said.

Philippine imports from China were valued at $29.39 billion last year, with electronic products at $5.71 billion, the PSA reported.

“Most of the region’s high- and mid-income economies, from Singapore to the Philippines, are particularly dependent on machinery and electronics imports from China,” Moody’s said.

Export markets of the Philippines, South Korea, Malaysia, Vietnam, and Taiwan heavily rely on Chinese demand for electronics.

“Electronics and machinery are highly vulnerable to geopolitical disruptions — particularly those that relate to semiconductors,” Moody’s said.

The US recently asked South Korea to restrict exports of chipmaking equipment to China. It has also called on Japan and the Netherlands to impose export restrictions on the Chinese market.

Meanwhile, Asia-Pacific exports of finished goods to the US would also be affected by the decoupling.

“Low-income economies such as Cambodia and Vietnam export textiles to the US, while Taiwan, South Korea, Japan, Malaysia, Thailand, Vietnam, and the Philippines send their electronics and machinery there,” according to the report.

The Philippines’ key exports to the US include electronics, machinery, agriculture, and textiles.

“Imports from the US are insignificant for most Asia-Pacific economies, especially when compared with imports from China,” it said.

Hansley A. Juliano, who teaches political science at the Ateneo de Manila, said the Philippine government must consider alternative partners to avoid disruptions to its market.

“It would be the responsibility of our economic managers to begin actively identifying which these alternative countries are, to what extent are we at risk of competition with fellow Asia-Pacific (especially the Association of Southeast Asian Nations or ASEAN) countries, and to what extent collaborative efforts are possible yet will still make the Philippine economy profit,” he said in a Messenger chat.

On the other hand, Mr. Juliano said the effects of the US-China decoupling on local industries are an opportunity to revisit its sustainability and environmental impacts.

“A number of these rely on mining, and a number of them produce pollutants that ruin Philippine natural resources,” he said.

“Should this be seen as an overall threat or also an opportunity to revisit which of our competitive advantages (say agriculture and dying manufacturing sectors) should be resurrected instead?” he added. — Beatriz Marie D. Cruz

Beijing says gentleman’s deal on Second Thomas Shoal is no secret

AN AERIAL VIEW of the BRP Sierra Madre at the contested Second Thomas Shoal on March 9, 2023. — REUTERS

By John Victor D. Ordoñez, Reporter

CHINA has repeatedly informed the Marcos government about the so-called gentleman’s agreement that barred the delivery of construction materials and repairs to a Philippine outpost at Second Thomas Shoal, its embassy in Manila said, adding that the deal was no secret.

“In the beginning of this current Philippine administration, the said agreement was still being followed in handling the resupply mission at Ren’ai Jiao (Second Thomas Shoal),” it said in a statement.

“But since February 2023, the Philippine side has ceased to abide by the agreement, categorically denied its existence and kept stirring up trouble to provoke incidents.”

The Philippine Department of Foreign Affairs (DFA) did not immediately reply to a WhatsApp message seeking comment.

The Chinese Embassy said the Philippines and China had agreed to a “new model” in managing the situation at Second Thomas Shoal during negotiations earlier this year.

“Regrettably, only one round of the resupply missions was carried out within the realm of these understandings and arrangements before they were unilaterally abandoned by the Philippine side for no good reason,” it added.

The embassy noted that in September, Beijing invited Teodoro L. Locsin, Jr., President Ferdinand R. Marcos, Jr.’s special envoy to China, to discuss ways to manage the dispute on Second Thomas Shoal.

The discussions resulted in an “internal understanding” of how to handle the situation, it added.

Mr. Marcos earlier said he was “horrified” by the thought that his predecessor Rodrigo R. Duterte might have compromised Philippine sovereignty by agreeing to keep the status quo at the shoal.

Tensions between the two neighbors have worsened in the past year as China’s coast guard continues to block resupply missions to the shoal, where the Philippines grounded a World War II-era ship in 1999 to assert its sovereignty.

Mr. Marcos said Chinese Ambassador to the Philippines Huang Xilian and former officials should clarify the details of the deal to his government.

Former presidential spokesman Herminio L. Roque earlier said the Philippines had agreed with China to keep the status quo, which meant only basic supplies would be delivered to a handful of Filipino soldiers at BRP Sierra Madre.

But Mr. Duterte’s legal counsel Salvador B. Panelo said his former boss had not entered into any deal with Chinese President Xi Jinping.

“China once again urges the Philippines to honor its commitments and consensus with China, show sincerity, stop provocations, return to the right track of dialogue and consultation as soon as possible,” the Chinese Embassy said.

The Philippines should work with China in managing the situation at the shoal “and safeguard the hard-won peace and stability in the South China Sea.”

‘AGGRESSIVE BEHAVIOR’
Meanwhile, the DFA urged China to reflect on its “aggressive” actions in the South China Sea, adding that the Philippine decision to boost ties with Japan and the US at a recent summit was a “sovereign choice” for the country.

China earlier issued remarks criticizing the trilateral meeting.

“The source of tension in our region is well known to all,” the DFA said in a statement. “It is China’s excessive maritime claims and aggressive behavior, including its militarization of reclaimed features, that are undermining regional peace and stability and raising tensions.”

The Chinese Embassy in Manila did not immediately reply to a Viber message seeking comment.

Mr. Marcos met with US President Joseph R. Biden and Japanese Prime Minister Fumio Kishida in the nations’ first trilateral summit in Washington last week.

The leaders committed to boost ties in maritime security amid China’s growing assertiveness in the waterway.

Mr. Marcos on Monday told foreign journalists the three-way summit was not directed at anyone and only seeks to boost relations among the three nations.

Chinese Foreign Ministry Spokesperson Mao Ning on Monday told a news briefing Beijing opposed the bloc politics of the three nations, saying it could worsen tensions in the waterway.

She said the US was clinging to the “Cold War mentality” of threatening other countries by forming alliances with other nations.

The DFA said Philippine ties with US and Japan align with international law.

The Chinese ministry’s references to the Cold War “sensationalizes” the situation in the South China Sea and “misrepresents the peaceful purpose of the trilateral cooperation,” it added.

“Nevertheless, those who wish to invoke the lessons of the past should also recall the need for adherence to the rule of law and how peace and stability has been maintained in our region through the observance and respect for international law,” the DFA said.

A United Nations-backed tribunal in 2016 said China’s claim to nearly the entire South China Sea has no legal basis, but Beijing has largely ignored the ruling and continued its island-building activities.

Mr. Marcos on Monday said his government is considering including Japan in its annual military exercises with the US.

Manila and Washington are set to hold their annual Balikatan (shoulder-to-shoulder) military exercises on April 22 to May 18, with 5,000 Filipino soldiers and 11,000 American servicemen expected to participate.

For the first time, it will be held beyond the Philippines’ 12-nautical mile territorial waters.

“The trilateral initiative is another platform to further promote regional peace and security,” the DFA said. “It is only reasonable and responsible that the participants discuss regional security issues of mutual concern, challenges to the rule of law and the peaceful resolution of outstanding disputes.”

Bongbong makes it to Time Magazine’s 100 most influential people

PRESIDENT FERDINAND R. MARCOS, JR. — PHILIPPINE STAR/KJ ROSALES

By John Victor D. Ordoñez, Reporter

PHILIPPINE President Ferdinand “Bongbong” R. Marcos, Jr. Made it to Time Magazine’s 100 most influential people this year due to his efforts to oppose Chinese aggression in the South China Sea.

“Bongbong’s desire to rehabilitate the Marcos name has resulted in other shifts,” according to Time. “He brought technocrats back into government, steadied the post —pandemic economy and elevated the Philippines on the world stage.”

Time said Bongbong’s rise to the Philippine presidency in 2022 stemmed from efforts to whitewash his family legacy “through clever manipulation of social media.”

His dictator father plundered billions of dollars from state coffers and stood accused of grievous human rights violations until his ouster in 1986, it said.

“Bongbong has stood steadfast against Chinese aggression in the disputed South China Sea and bolstered his nation’s alliance with the US,” Time said. “Many problems persist, including extra-judicial killings and journalists routinely attacked. But by trying to repair his family name, Bongbong may reshape his country too.”

TIME’s 100 most influential list, first published in 1999, included artists, icons, titans, leaders, innovators and pioneers.

Taiwan President-elect William Lai Ching-te and Argentine President Javier Gerardo Milei were also on the list.

The Marcoses have been accused of living lavishly in the Philippine presidential palace while Filipinos suffered from a collapsing economy.

More than 70,000 were jailed, about 34,000 were tortured and more than 3,000 people died during the martial rule of his father, the late President Ferdinand E. Marcos, Sr., according to Amnesty International.

A popular street uprising toppled the Marcos regime in February 1986 and sent him and his family into exile in the United States.

The elder Marcos accumulated ill-gotten wealth of as much as $10 billion (P572 billion), according to government estimates, earning him a Guiness World Record for the “greatest robbery of a government.”

“Despite geopolitical tensions and hurdles posed by the COVID-19 (coronavirus-2019) pandemic, President Marcos has elevated the Philippines on the world state and contributed to regional stability, notably in the Indo-Pacific region,” the Presidential Communications Office said in a statement. 

Arjan P. Aguirre, who teaches political science at the Ateneo de Manila University, said the President’s positive image stems from his foreign policy shift toward the US, Japan and Australia.

“This is perceived as a complete departure from his predecessor’s excessive dalliance with Chinese interest that weakened the position of the Philippines regarding the territorial dispute in the West Philippine Sea,” he said in a Facebook Messenger chat, referring to Rodrigo R. Duterte.

“Marcos gets approval and praises for this foreign policy shift for it also favors or benefits the political interests of other players in the region like the US, Japan and Australia,” he added.

Maria Ela L. Atienza, who teaches political science at the University of the Philippines, said the Mr. Duterte had set the bar too low when it came to the Philippines’ standing in international community.

“For foreign governments and media, President Marcos’ intent to increase Philippine presence again in the global community hopefully to boost foreign investments is a breath of fresh air,” she said in a Viber message.

The Philippine leader last week met with US President Joseph R. Biden and Japanese Prime Fumio Kishida in the nations’ first three-way summit to boost ties in trade, energy and maritime security in the Indo-Pacific region.

Mr. Marcos on Tuesday vowed to bring down drug syndicates and the illegal drug trade without shedding blood.

Law enforcers on Monday seized a record P13.3-billion ($234 million) haul of crystal meth or shabu in Batangas province south of the capital.

“This is the biggest shipment of shabu that we caught, but not one person died,” Mr. Marcos said, in a subtle criticism of his predecessor’s deadly drug war.

“Like it or not, Marcos Jr.’s position in the driver’s seat means he is a functional linchpin of any geopolitical alliance that seeks hegemony within the Asia-Pacific region,” Hansley A. Juliano, who teaches political science at the Ateneo de Manila University, said in Facebook Messenger chat.

“Much of Mr. Marcos’ good press is really mostly his return to the pre-Duterte status quo of Philippine international relations.”

Marcos orders one-month grace period for e-bike, e-trike ban

PHILIPPINE STAR/EDD GUMBAN

PRESIDENT Ferdinand R. Marcos, Jr. on Thursday ordered the Metropolitan Manila Development Authority (MMDA) and local government units in the capital region to give e-bike and e-trike users that pass through national roads a month-long grace period so they can familiarize themselves with the ban and penalties.

“It is necessary to give enough time for the wide disclosure of information regarding the ban that we are implementing,” he said in an X post in Filipino on Thursday. E-bikes and e-trikes should not be issued tickets, fined or impounded during the grace period, he added.

The MMDA on Monday said it would start issuing traffic violation tickets to e-bikes, e-trikes and other light vehicles caught using national roads starting April 17.

The MMDA banned light vehicles from major roads due to the growing number of accidents involving these vehicles. It recorded 2,829 accidents in 2022 involving bikes, e-bikes and pedicabs.

Under the rules, violators will be fined P2,500.

“We need to give them an opportunity to know what the new rules are and how they should adjust,” Mr. Marcos said in Filipino in a video posted on the Presidential Communications Office’s Facebook page.

Mr. Marcos said the P2,500 is a lot of money “so let’s give them a month.”

Acting MMDA Chairman Romando S. Artes will hold a news briefing on Friday to address the President’s order, the agency told reporters in a Viber message.

Meanwhile, the Land Transportation Office (LTO) said it is fast-tracking the production of plate numbers before it enforces a “no plate, no travel” policy for motor vehicles starting July 1, LTO Assistant Secretary Vigor D. Mendoza II said at the agency’s 112th founding anniversary celebration.

The agency would shutter car dealers that fail to observe the five-day rule on the release of the official receipt/certificate of registration and license plates to their clients, he said.

“Starting next week, I’ll be visiting district offices and dealers,” Mr. Mendoza said. “I would like to start closing [and] suspending the operations of dealers who give LTO a bad light,” he added, noting that the LTO gets blamed for delayed plates when it is really the dealer’s fault.

“If they don’t release the plates within the [agreed timeframe], we will close them down,” he added.

Mr. Mendoza said the LTO has 12 billion backlogs on motorcycle plates. “We are still [facing] the enormous task [that] was passed on to us when we started here — 12 billion backlogs in motorcycles when we started the year. We’re down to 9 million.” —

In the same speech, he affirmed LTO’s drive against unregistered vehicles. “I would like to see people jailed within the year.”

On Wednesday, the MMDA signed a deal with the Department of Interior and Local Government and Department of Transportation in the crackdown against illegal vehicles in Metro Manila. — John Victor D. Ordoñez and Chloe Mari A. Hufana

Another round of fuel subsidies for farmers urged as prices climb

PHILSTAR

By Kenneth Christiane L. Basilio

THE DEPARTMENT of Agriculture (DA) should consider giving another round of fuel subsidies to farmers in the second half of the year if fuel prices continue to soar, a congressman said on Thursday.

Party-list Rep. Wilbert T. Lee cited rising tensions in the Middle East and the likelihood of oil prices to continue climbing as the premise for the DA to study the possibility of providing another round of fuel subsidies.

The government had already allocated P510 million in financial assistance to farmers to subsidize mounting fuel costs.

“A one-time P3,000 fuel subsidy is not enough (for farmers) given the rise in prices of oil products,” Mr. Lee said in Filipino.

He said the DA should also assist farmers in registering for the agency’s list of Filipinos engaged in agricultural activities so they can avail of the government’s fuel subsidy. 

CASH AID FOR FARMERS
In La Union, farmers and fisherfolk whose livelihoods are suffering due to extreme weather conditions brought about by El Niño are set to receive financial aid from the provincial government.

La Union Governor Raphaelle Veronica Ortega-David announced on Thursday the enactment Provincial Ordinance No. 425-2023 which would provide a cash assistance of P8,000 or P10,000 for farmers who recorded partial and total crop damages. Distressed fishermen are also entitled to the cash aid.

A total of P3 million has been appropriated for the Agricultural Emergency Trust Fund, which would benefit around 300 La Union farmers, said Sharon Viloria, officer-in-charge of the Provincial Agriculture Office. To qualify, an applicant must be a member of an accredited farmer/fisherfolks cooperative, Ms. Viloria required.

Meanwhile, Mr. Lee called on the DA to fast-track the modernization of its registry system of agricultural workers to ensure that all farmers and fisherfolk receive aid from the government.

“We have, for a long time, advocated for the modernization of the RSBSA (Registry System for the Basic Sectors in Agriculture) because many farmers and fishermen have not received aid because they are not included within the list,” he said in Filipino.

“The DA should give farmers and fisherfolks a chance to register in the RSBSA while there are still no final regulations on the fuel subsidy program,” he added in Filipino. — with a report from Artemio A. Dumlao

Evacuation of Mideast OFWs ready

PHILIPPINE STAR/WALTER BOLLOZOS

THE PHILIPPINE government is prepared to evacuate Filipinos in the Middle East should tensions escalate in the region, authorities told Thursday’s briefing in Congress as contingency measures were discussed in case hostilities between Israel and Iran and other parties turn for the worse.

However, Department of Foreign Affairs (DFA) Assistant Secretary Robert O. Ferrer, Jr. said details of the evacuation plans are kept confidential to avoid being sabotaged by terror groups who might take advantage of the situation.

“Contingency plans must not be publicized, we don’t want the (evacuation) details to fall into the wrong hands,” he said

“(We) briefed Filipino community leaders in the crisis plan. There, the Filipino community leaders had an understanding of the crisis plan,” seconded Department of Migrant Workers Officer-in-Charge Hans Leo J. Cacdac in the same briefing. 

The Armed Forces of the Philippines (AFP) said it is ready to evacuate Filipinos overseas. However, their contingency plan should be reserved “for last resort” only if other means of evacuating Filipinos fail.

The Middle East is home to at least 2.2 million Filipinos, according to a 2020 DFA report. It also hosts around 70% of all overseas Filipino workers (OFWs) abroad, Mr. Cacdac told BusinessWorld.

“With escalating hostilities, there’s a heightened risk of conflict spiraling over into neighboring countries where many overseas Filipino workers are deployed,” Party-list Rep. Ron P. Salo said. — Kenneth Christiane L. Basilio

Singapore FM seeks deeper ties

TWITTER.COM/VIVIANBALA- MARISSA/MFA

SINGAPORE Foreign Minister (FM) Vivian Balakrishnan and Philippine senators on Wednesday met to explore more areas of bilateral cooperation, particularly in agriculture, trade and maritime security.

“The senators and foreign minister (Mr. Balakrishnan) also agreed that the tensions in the South China Sea must be eased and that greater dialogue and restraint among countries must be encouraged in order to maintain peace, stability and prosperity of the region,” the Senate Public Relations and Information Bureau (PRIB) said in a statement.

The visiting Singaporean official met with Senate President Juan Miguel F. Zubiri and Senators Aquilino Martin D. Pimentel III, Maria Lourdes Nancy S. Binay and Cynthia A. Villar and “discussed the potentials of greater trade and investments, especially in agriculture and transportation,” it said. 

Mr. Balakrishnan and Philippine Foreign Affairs Secretary Enrique A. Manalo on Tuesday said both countries are pushing for a code of conduct in the South China Sea to ease Chinese aggression in the waterway.

“Nevertheless, (we are pushing this) because we believe it is one way to reduce the possibility of complications of collisions or disputes occur in the waves of the South China Sea,” he told a news briefing.

Mr. Zubiri also thanked Singapore for watching over the rights of 200,000 Filipino workers based in the country. — John Victor D. Ordoñez

SC: Child, wife abusers not just men

WIKIMEDIA/PATRICKROQUE01

THE PHILIPPINE Supreme Court (SC) has upheld rulings that any person, regardless of gender, can be charged with violence against women and children (VAWC) for committing such abuses against a woman or child.

“The law uses a gender-neutral term when referring to offenders,” wrote Senior Associate Justice Marvic M.V.F Leonen in the SC resolution released on Wednesday and discussed in a forum in Baguio City by Spokesperson Camille Sue Mae L. Ting.

Ms. Ting said the petitioner in the case filed to quash the complaint against her, claiming that as a woman, she cannot be charged with violations under the VAWC on the contention that the law was made against men’s abusive acts on women and children.

A regional trial court denied her petition and, subsequently, the Court of Appeals did so, too.

In the same forum, Justice Maria Filomena D. Singh underscored the need for Philippine laws to be updated to be gender-inclusive and gender sensitive.

“We are far from equality with our laws. We still have many laws discriminating against other genders,” she said in Filipino. At present, the Committee on Gender Responsiveness is focusing on raising consciousness and awareness, she said. — Chloe Mari A. Hufana

Customs seizes P218-M ‘shabu’

PHILSTAR FILE PHOTO

THE BUREAU of Customs (BoC) said it intercepted a parcel of methamphetamine or “shabu” worth an estimated P218 million.

In a statement on Thursday, the agency said that it seized a parcel containing about 32 kilograms of “shabu” in a warehouse in Pasay City.

“The shipment was declared as ‘machinery muffler’ from Zimbabwe and underwent rigorous profiling…which led to the discovery of shabu concealed inside the mufflers,” it added.

The agency said that the consignee was arrested, and charges will be filed accordingly. — Luisa Maria Jacinta C. Jocson

Zubiri seeks more trade with Japan

SENATE President Juan Miguel F. Zubiri met with Japanese Ambassador to Manila Kazuya Endo on Wednesday, asking the newly assigned envoy for constant engagement with Japanese businesses to boost trade and investments in the Philippines.

“He (Mr. Zubiri) also encouraged the Ambassador to engage private and business sectors from Japan in a healthy discussion once the CREATE MORE Act is being deliberated upon in the Philippine Senate, to further boost Philippines’ and Japan’s cooperation in terms of trade and investment,” the Senate Public Relations and Information Bureau said in a statement.

The House of Representatives on March 18 passed on final reading amendments to the law designed to revive the post-pandemic economy through tax incentives contained in the CREATE MORE Act. 

The CREATE MORE (CREATE to Maximize Opportunities for Reinvigorating the Economy) measure cuts corporate income tax to 20% from 25%. It also provides duty exemptions and value-added tax (VAT) exemptions on imports. The Senate has yet to deliberate on the measure.

Earlier, Senator Sherwin T. Gatchalian filed a resolution seeking to probe the large volume of denied VAT refunds, citing complaints from Japanese companies which threatened to leave Manila after finding it hard to apply for these.

In November, Japanese Chamber of Commerce and Industry of the Philippines President Shigeru Shimoda told a Senate hearing that Congress should push for more tax incentives for Japanese companies to expand their operations in the Philippines.

On another front, Mr. Zubiri said Thursday he was hopeful negotiations on the Reciprocal Access Agreement between Japan and the Philippines move forward to allow the deployment of troops on each other’s soil. — John Victor D. Ordoñez