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PSEi drops to 6,800 level as investors pocket gains

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PHILIPPINE SHARES dropped to the 6,800 level on Thursday, tracking Wall Street’s decline overnight, as investors continued to book profits before the month’s close.

The Philippine Stock Exchange index (PSEi) fell by 0.95% or 66.46 points to end at 6,891.55 on Thursday, while the broader all shares index dropped by 0.69% or 26.26 points to finish at 3,733.29.

This was the PSEi’s worst close in almost two weeks or since it finished at 6,889.87 on Aug. 19.

“The local bourse extended its decline amid continuous profit-taking after the market failed to break the 7,000 resistance,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.

“Negative cues from Wall Street further weighed on the market, affecting Asian peers as well,” she added.

Asian shares followed Wall Street futures lower on Thursday as Nvidia’s results disappointed some bullish investors, Reuters reported.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.3% as tech stocks dragged. The Nikkei eased 0.2% while South Korea dropped 1%.

Nvidia’s third-quarter revenue forecast of $32.5 billion surpassed Wall Street estimates, but the results still failed to impress the most bullish investors, who have driven a dizzying rally in its shares.

Wall Street’s main indexes finished lower on Wednesday. The Dow Jones Industrial Average fell 0.39% to 41,091.42; the S&P 500 lost 0.6% to 5,592.18; and the Nasdaq Composite lost 1.12% to 17,556.03.

“Philippine shares slipped just below the 6,900 level as investors sold ahead of the August closing and the MSCI rebalancing [on Friday],” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“Sentiment also was pulled down from across the region, with US stocks dipping Wednesday, led by a decline in Nvidia Corp. as investors awaited its earnings report and the upcoming July personal consumption expenditures price index,” he added.

Majority of sectoral indices closed lower on Thursday. Holding firms retreated by 1.98% or 115.59 points to 5,717.44; financials dropped by 1.37% or 29.43 points to 2,104.28; services went down by 0.51% or 11.35 points to 2,201.47; and industrials declined by 0.1% or 10 points to 9,291.35.

Meanwhile, mining and oil climbed by 0.33% or 27.74 points to 8,263.42 and property increased by 0.13% or 3.72 points to 2,769.98.

“Among the index members, Ayala Land, Inc. led the gainers, up by 2.5%, while Converge ICT Solutions, Inc. was at the bottom, losing 4.29%,” Ms. Alviar said.

Value turnover increased to P6.64 billion on Thursday with 959.59 million issues changing hands from the P5.34 billion with 1.27 billion shares traded on Wednesday.

Decliners outnumbered advancers, 117 versus 79, while 51 names were unchanged.

Net foreign buying climbed to P888.76 million on Thursday from P687.06 million on Wednesday. — R.M.D. Ochave with Reuters

Bangko Sentral terminates National ID printing contract

PHILIPPINE STAR/ MICHAEL VARCAS

THE Bangko Sentral ng Pilipinas (BSP) said it has terminated the printing contract for Philippine Identification System cards, or the National ID.

“This is a real problem… the contractor for these IDs has not been able to deliver, so we have terminated the contracts,” BSP Governor Eli M. Remolona, Jr. told a forum.

“We are negotiating for damages and at the same time we’re looking for a new vendor for this contract. But we’re working on that issue,” he added.

The central bank is responsible for printing the National ID, with the Philippine Statistics Authority (PSA) taking charge of gathering the data that goes into the cards.

The central bank is considered a recognized government printer, providing printing management requirements for various agencies, apart from its primary task of printing banknotes.

The BSP’s card printing supplier is AllCard, Inc.

In a statement on Thursday, the PSA backed the central bank’s decision to engage another supplier.

“The PSA trusts the assessment and decision of the BSP to terminate its contract with their supplier for the National ID card production,” it said.

“We affirm our unwavering commitment to delivering a reliable and secure National ID system, ensuring that every registered person will receive their National ID,” it added.

Legislators have raised concerns over the slow production and delivery of the National IDs.

In June, the PSA said that the backlog is currently 32 million physical cards. It cited the limited capacity of printing facilities.

A total of 51.6 million PhilIDs have been printed and distributed as of the end of May, according to the PSA. Meanwhile, 87.6 million citizens have registered for the National ID, with an eventual target of 100% registration.

The National ID is considered a means of achieving greater financial inclusion, with banks compelled to accept it as proof of identity in lieu of the old practice of requiring multiple proofs of identity.

The ID restrictions are thought to have prevented millions of Filipinos from opening bank accounts and joining the formal economy. — Luisa Maria Jacinta C. Jocson

Foreign chambers urge Senate to work on stalled connectivity measure

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THE Joint Foreign Chambers (JFC) called on the Senate to make progress on the Open Access in Data Transmission Act, or Konektadong Pinoy Act, after no action was taken since Senator Alan Peter S. Cayetano’s sponsorship speech on Aug. 5.

“The foreign chambers look forward to the enactment of Konektadong Pinoy, given the support of the executive, with the National Economic and Development Authority (NEDA) as the main champion,” the JFC said in a statement on Thursday.

“This bill is crucial to achieving the President’s call for digitalization. It will simplify the licensing of broadband network operators, which will support ease of entry and ease of doing business and attract foreign investors,” he added.

The House of Representatives passed a version of the measure on third reading in December 2022.

“To date, the two chambers are aligned, with Senate President Francis G. Escudero giving priority to Konektadong Pinoy,” the JFC said.

Currently set for floor debate, Senate Bill No. 2699 aims to attract network operators, which will promote the resilience and security of the internet in the Philippines.

“The Konektadong Pinoy bill seeks to empower internet service providers in bringing accessible, reliable, and affordable internet to communities,” the JFC said.

The bill seeks to simplify the approval process for network operators, promote efficient management of the radio spectrum, and promote the sharing of infrastructure.

It is among the bills prioritized for passage within the 19th Congress by the Legislative-Executive Development Advisory Council.

The Philippine Chamber of Commerce and Industry (PCCI), the Philippine Exporters Confederation, Inc. (Philexport), and the Employers Confederation of the Philippines (ECOP) have also expressed support for the bill after the sponsorship speeches in the Senate.

PCCI President Enunina V. Mangio said that the bill will benefit micro, small and medium enterprises, which make up 99.5% of the businesses in the country.

“Bringing them online is crucial to make them competitive. With the Konektadong Pinoy Act, small entrepreneurs even in rural areas can participate in e-commerce and use e-payments,” she said.

ECOP Chairman Edgardo G. Lacson said such a measure will help businesses increase their productivity by enabling the use of new technology.

“Harnessing the power of artificial intelligence (AI) requires robust connectivity. With Konektadong Pinoy, businesses of all sizes can leverage AI and other digital technologies to increase productivity and develop a globally competitive workforce,” Mr. Lacson said.

“Filipino businesses are ready for the global market. Once passed into law, Konektadong Pinoy will bring a reliable and secure internet that will help exporters access modern technologies and participate in international trade,” Philexport President Sergio R. Ortiz-Luis, Jr. said. — Justine Irish D. Tabile

E-visa, VAT refund scheme seen crucial for PHL ambition to become ‘shopping capital’

PHILIPPINE STAR/KRIZ JOHN ROSALES

E-VISA and value-added tax (VAT) refunds for international visitors will help establish the Philippines as a shopping destination, Secretary Frederick D. Go said.

Mr. Go, who heads the Office Special Assistant to the President for Investment and Economic Affairs, said: “I think we always have that potential to be a shopping capital in Asia. But we need two things — e-visas … (to) make it easier for travelers to come to the Philippines (and) VAT refunds for tourists. Because practically every country in Asia has a VAT refund and we don’t.”

He was speaking to reporters on the sidelines of the National Retail Conference and Expo on Thursday.

“So if we indeed want to become a shopping capital of Asia or of the world, we need to have those two (which are) very fundamental to becoming a shopping capital,” he added.

Aside from attracting tourists, Mr. Go said that the VAT refund scheme may also persuade more luxury brands to come into the Philippines.

Philippine Retailers Association President Roberto S. Claudio said a VAT refund scheme for tourists will not only boost retail sales but also increase tourism revenue.

“This is where we incentivize tourists and note that the second biggest expense of tourists is shopping,” he said.

“Majority of the tourists come to visit the country not just for the attractions or the resorts or diving or food, but they all shop before they go,” he added.

He said that the measure on tax incentives for tourists is now in the Senate. The House approved its version of the bill last year.

Senate Bill No. 2415 aims to provide non-resident tourists with VAT refunds on purchases worth at least P3,000 to encourage more visitor spending.

“I’d like all retailers to start preparing for this, which, once signed by the President, will boost tourist arrivals,” Mr. Claudio said.

“The overall benefit to the economy is going to be enormous, and we retailers will be the first ones to be in the front line,” he added.

Asked about the prospect of catching up with the early implementers of the VAT refund, Mr. Claudio said: “People travel every day, every week, every month; you never miss the boat.”

“They were ahead of us in doing this. But it’s never too late because the people who traveled there last year can travel to the Philippines next year,” he added. — Justine Irish D. Tabile

ADB finalizing $500-M PHL climate financing package

ILIGAN CITY DRRMO

THE Asian Development Bank (ADB) is moving towards the approval of a $500-million loan to support Philippine efforts to mitigate climate-related disasters, the Department of Finance (DoF) said.

At a forum on Wednesday, ADB President Masatsugu Asakawa told Finance Secretary Ralph G. Recto processing the loan, which will be extended under the Climate Change Action Program (CCAP) Subprogram 2, is in its final stages, the DoF said in a statement.  

The loan forms part of the bank’s $10-billion climate finance commitment for the Philippines through 2029, as announced by Mr. Asakawa during the United Nations Climate Change Conference in Dubai last year.

“The financing commitment aims to improve the climate resilience of communities, ecosystems, and the national economy. It focuses on investments in public transport, clean energy, disaster risk management, and social protection,” the DoF said.

CCAP Subprogram 2 aims to address poverty and reduce inequalities, accelerate progress promoting gender equality, build climate and disaster resilience, and enhance environmental sustainability. It also seeks to promote rural development and food security, and strengthen governance and institutional capacity, the ADB said on its website. 

In 2022, the Philippines received $250 million under CCAP 1, the ADB’s first climate change policy-based loan program.

The bank will also continue leveraging regional facilities like the ASEAN Catalytic Green Finance Facility and the Green Climate Fund to enhance the Philippines’ access to grant financing, Mr. Asakawa said.

The ADB also held a first meeting on the ASEAN (Association of Southeast Asian Nations) Climate Finance Policy Platform, which will support Southeast Asian finance ministry leaders in pushing for collective climate action, he said.

The ADB Board is also set to review its new Country Partnership Strategy for the Philippines for 2024 to 2029 next week, according to Mr. Asakawa.

The framework will focus on critical areas like human development, economic competitiveness, quality infrastructure, climate action, and private sector development, the DoF said.

Mr. Asakawa also noted the bank’s support for the Philippines’ hosting of the Loss and Damage Fund Board, “emphasizing that this will further cement the country’s leadership on climate change issues in the region.”

President Ferdinand R. Marcos, Jr. on Wednesday signed Republic Act No. 12019 or the Loss and Damage Fund Board Act. The law grants juridical personality and legal capacity to the board, which oversees the international climate change fund. 

The Philippines suffered around $10 billion in damage from climate hazards between 2010 to 2020, the DoF said. — Beatriz Marie D. Cruz

DICT bats for more data center funding 

STOCK PHOTO | Image by DC Studio from Freepik

DATA CENTERS will require more funding from the budget to better handle the expected surge in data as the government digitizes, the Department of Information and Communications Technology (DICT) said.

Speaking before the House appropriations committee on Thursday, Information and Communications Technology Secretary Ivan John E. Uy said the resources available to the DICT as the government migrates its systems to digital platforms are inadequate.

“Additional funding would be necessary for us to meet this growing demand,” Mr. Uy said, noting that the DICT is tasked with managing the National Government data center cloud services program, for which P325 million was budgeted. With this amount, the DICT must maintain 650 of the 1,277 government cloud systems. The data center budget, meanwhile, was set at P425 million.

“The ideal is P15 billion (for data center development), in fact we just submitted a proposal of P2.3 billion but what was approved (for data center management) is only P750 million,” Undersecretary David L. Almirol, Jr. said.

The DICT’s overall allocation was P10.43 billion in the National Expenditure Program for 2025, which Mr. Uy said will “allow us to expand our operations, enhance our performance and ICT governance, develop new systems and infrastructures.”

These funds will be allocated for, among others, the National Government Portal project (P302.86 million); and the e-Government System Development program servicing 45 National Government agencies (P1.37 billion).

The government has yet to complete its first data center despite growing computing needs and the need to keep sensitive data under Philippine control, Mr. Almirol said.

“Our first data center is still being developed. Right now, we are just co-locating. We do not have one,” Mr. Almirol said, referring to the government’s current reliance on the cloud.

“Data centers are important. Our government data, which is hosted by the DICT, should be ours and owned by the Philippines. Right now, it is outside the country, within cloud services. This is dangerous because we do not have our own data and are just relying on foreign cloud services,” Party-list Rep. Bernadette Herrera-Dy said during the hearing. — Ashley Erika O. Jose

Cebu, Maguindanao, Sulu targeted for KADIWA stores’ VisMin launch

PHILIPPINE STAR/WALTER BOLLOZOS

THE Department of Agriculture (DA) said Cebu province, Maguindanao, and Sulu were the sites chosen to launch the KADIWA store network in the Visayas and Mindanao.

“By September we will be opening KADIWA stores in Visayas and Mindanao. We’re targeting Cebu, Maguindanao and Sulu,” Agriculture Assistant Secretary and Spokesman Arnel V. de Mesa said in a briefing on Thursday.

The DA has said it hopes to open about 60 KADIWA stores in September.

Government-subsidized KADIWA stores offer low-cost produce to the public, while allowing farmers to sell directly to consumers by doing away with the middleman stages of the supply chain.

Mr. De Mesa added that the KADIWA locations will offer rice at P29 per kilogram to vulnerable segments of society, with the general public also free to buy subsidized rice at other prices.

“The P29 rice locations have NFA (National Food Authority) warehouses near their sites,” he said.

Mr. De Mesa said that operating days for the stores will be Thursday to Saturday, in line with other locations.

The DA said it aims to open a network of 1,500 KADIWA outlets nationwide. — Adrian H. Halili

SBCorp to offer small firms loans for typhoon recovery

EARTH.NULLSCHOOL.NET

THE Small Business Corp. (SBCorp) is offering a special loan facility to micro, small and medium enterprises (MSMEs) affected by Typhoon Carina, the Department of Trade and Industry (DTI) said.

“We understand the challenges businesses face as they work to rebuild and resume normal operations after the devastating impact of this typhoon, which surpassed even the rainfall record of Super Typhoon Ondoy,” SBCorp President and Chief Executive Officer Robert C. Bastillo said.

“This emergency fund, offering concessional terms not currently available in the market, aims to finance the immediate needs of MSMEs. These needs include the repair and replacement of damaged fixed assets and inventory, operational disruption, and revenue losses,” he added.

Borrowers will be offered up to P300,000, payable monthly over up to three years with a three-month grace period.

The loan will be interest-free in the first year, and charge 1% interest on the balance in subsequent years.

According to SBCorp, MSMEs in the National Capital Region, Ilocos Norte, La Union, Bataan, Pampanga, Bulacan, Cavite, and Rizal are eligible to apply for the program.

Meanwhile, small businesses in some municipalities in Tarlac, Laguna, Oriental Mindoro, Romblon, Zamboanga, Davao Occidental, and Cotabato may also qualify.

“Existing borrowers who are (actively paying loans) and have yet to fully reach the P300,000 loan cap can quickly access this facility without needing to submit any documentary requirements,” Mr. Bastillo said.

“New borrowers only need to submit their Mayor’s Permit or Barangay Micro Business Enterprise (BMBE) Certificate for loans over P100,000, or Barangay Certification for loans of up to P100,000,” he added.

All new borrowers are also required to provide government-issued ID, proof of bank or e-money account, and corporate documents, if applicable. — Justine Irish D. Tabile

Cash utilization rate hits 94% at end of July

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GOVERNMENT agencies’ cash utilization was 94% in the seven months to July, the Department of Budget and Management (DBM) said.

In a report, the DBM said the National Government, local governments and state-owned companies used P2.58 trillion of the P2.74 trillion worth of notices of cash allocation (NCAs) issued as of the end of July. Unused NCAs amounted to P153.8 billion.

The cash utilization rate at the end of July was ahead of the 92% year-earlier pace.

NCAs are a quarterly disbursement authority that the DBM issues to agencies, allowing them to withdraw funds from the Treasury for their spending needs.

In the seven-month period, line departments used P1.91 trillion or 93% of their allotments.

The Commission on Human Rights posted the highest budget usage rate of 99% at the end of July. This was followed by the Commission on Audit (98%), the departments of National Defense (96%), Education and Interior and Local Government (both 95%).

The Department of Migrant Workers recorded the lowest usage rate of 68%.

The DBM reported earlier that it had released P5.43 trillion or 94.2% of the P5.768-trillion 2024 national budget as of the end of July. — Beatriz Marie D. Cruz

BIR warns of fake documentary stamps

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THE Bureau of Internal Revenue (BIR) said taxpayers need to purchase documentary stamps from authorized revenue officers, noting that fake stamps are proliferating.

“Loose documentary stamps shall only be purchased from and sold by the authorized specialized revenue collecting officers (SRCO)/revenue collection officers (RCO) assigned at the national office and revenue district office of this bureau,” the BIR said in a Revenue Memorandum Circular.

The BIR said it has received reports of fake eDST system-printed and loose documentary stamps being affixed to taxable documents. Stamps were also being sold online or in physical stores, sometimes for more than the prescribed amount.

Loose documentary stamps are attached to official documents or certificates issued by government agencies as proof of payment of the documentary stamp tax. — Beatriz Marie D. Cruz

Philippines soliciting offers as it plans to buy 40 fighter jets to boost defense

DEFENSE SECRETARY GILBERTO C. TEODORO, JR. — DND

THE PHILIPPINES has started soliciting offers as it plans to buy 40 new multi-role fighter aircraft to boost its territorial defense, according to its Defense chief.

Bidders should propose a financing package where payment can be spread out, Defense Secretary Gilberto Eduardo C. Teodoro, Jr. told a budget hearing at the House of Representatives on Thursday.

He did not specify which models the Philippines was seeking to buy, or who the potential bidders are.

The timeframe for the procurement was also not immediately clear, though he said the government is looking to buy it “as soon as possible.”

The military is allotting as much as P400 billion for the acquisition of the military jets, Mr. Teodoro told reporters after the budget hearing.

The Philippines, a defense ally of former colonial power the United States, is seeking to modernize and beef up its military inventory, and its air force has few fighter jets.

Mr. Teodoro has said the country needed “faster and more lethal” multi-role jet fighters on top of its South Korean FA-50s.

The government is looking at reasonable financing schemes to fund its modernization program, including tapping syndicated loans from private lenders, he added.

“My instruction is to divide it into at least 60% of the useful life of the asset,” he told congressmen. “The financing should be that long to make it more digestible for the economy.”

“The decided acquisitions shall be for capabilities that can make a real difference,” Mr. Teodoro said. “For multi-role fighters, we believe one dozen will not make any difference at all.”

President Ferdinand Marcos, Jr. has approved “Re-Horizon 3,” an acquisition plan for new military weaponry and equipment worth P1.89 trillion ($33.6 billion) to boost its defense.

Philippine lawmakers have pushed higher budgets for defense agencies amid rising sea tensions with China.

Also on Thursday, the Chinese Embassy in Manila said it had filed a diplomatic protest with the Japanese Embassy in the Southeast Asian country concerning “irresponsible” remarks its ambassador made regarding Sabina Shoal in the South China Sea.

In a statement, the Chinese embassy said the comments displayed “ignorance of the facts and contained unwarranted accusations against China.”

Japan’s ambassador on Monday tweeted a video of a Chinese Coast Guard vessel under the words “another unacceptable development around Sabina Shoal.”

The Philippines has accused China of dumping dead corals at Sabina Shoal, another feature in the South China Sea that both claim, to alter its elevation so it could reclaim the area.

Both countries have been trading blame over collisions near the shoal, which has been a staging ground for Philippine resupply missions to Second Thomas Shoal. Both shoals are within the Philippines’ exclusive economic zone.

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On Sunday, Manila’s South China Sea task force accused Chinese vessels near Sabina Shoal of ramming and using water cannons against a Philippine fishery vessel transporting food, fuel and medicine for Filipino fishermen.

The Chinese Coast guard said the Philippine vessel “ignored repeated serious warnings and deliberately approached and rammed” China’s law enforcement boat, resulting in a collision.

China claims sovereignty over nearly all of the South China Sea, including areas claimed by Brunei, Indonesia, Malaysia, the Philippines, Taiwan and Vietnam. Beijing has deployed an armada of vessels to protect its claims.

A United Nations-backed tribunal based in the Hague in 2016 voided Beijing’s expansive claim for being illegal. China has ignored the ruling.

On Wednesday, the Philippines’ National Maritime Council said there’s a need to update the Manila’s Mutual Defense Treaty (MDT) with Washington, citing the changing geopolitical landscape.

“Maybe it’s high time now to make the review,” council spokesman Alexander S. Lopez, Jr. told reporters, noting that the treaty should be “relevant to new security challenges.”

Washington is bound by the treaty to defend the Philippines in case of an armed attack on its forces, public vessels or aircraft in the South China Sea.

There have been domestic calls to clarify provisions of the treaty after a June 17 standoff at Second Thomas Shoal, where Chinese forces allegedly threatened, using bladed weapons, Filipino troops delivering supplies to a Navy outpost there.

Filipino soldiers fought with bare hands, and one of them lost a thumb when his vessel was rammed by Chinese forces, according to the Philippine military.

Raymond M. Powell, a fellow at Standard University’s Gordian Knot Center for National Security Innovation, on Wednesday said the main question is whether the treaty should be updated or “simply needs its application clarified under current conditions.”

He noted that top United States officials including President Joseph R. Biden and Defense Secretary Lloyd J. Austin have repeatedly clarified that the treaty applies to the South China Sea.

Formal consultations under Article III of the 1951 Mutual Defense Treaty (MDT) should be the initial steps in any attempts to update the treaty, Mr. Powell said in an X message.

Under the treaty, both countries through their Foreign ministers will regularly consult each regarding the pact’s implementation and “whenever in the opinion of either of them the territorial integrity, political independence or security of either of the parties is threatened by an external armed attack in the Pacific.”

“Trying to push a revised MDT through both nations’ Legislature is a long and difficult process,” Mr. Powell said. “Perhaps it would be worth doing, but Article III consultations would help determine if the payoff would be worth the effort.”

He said the Philippines is threatened by an “external armed attack,” so consultations would be appropriate. “It would also serve as an important signal to China that its aggression has brought it to a dangerous point.” — Kenneth Christiane L. Basilio with Reuters

Marcos signs bill on Loss and Damage Fund Board

PRESIDENT FERDINAND R. MARCOS, JR. — PHILIPPINE STAR/KRIZ JOHN ROSALES/ PPA POOL

PRESIDENT Ferdinand R. Marcos, Jr. has signed into law a bill that a United Nations-backed Loss and Damage Fund Board juridical personality and legal capacity, as the Philippine leads the push to help vulnerable countries to the climate crisis.

Signed on Wednesday, the Loss and Damage Fund Board Act allows the entity to contract, acquire and dispose of immovable and movable property, and start legal proceedings.

It can also negotiate, conclude and enter into a hosting agreement with the World Bank as an interim trustee and host of the Fund’s secretariat, and undertake activities needed to discharge its duties.

The Philippines in July was elected to host the board, which is composed of 26 parties to the United Nations Framework Convention on Climate Change and the 2015 Paris Agreement.

The board oversees a fund that seeks to help vulnerable countries deal with losses and damage caused by climate change, which according to a recent global study strengthens typhoons.

Environment Undersecretary Analiza Rebuelta-Teh told a Senate hearing earlier this month the World Bank is bound by the decisions of board members.

The World Bank will host the fund for four years under an independent secretariat.

Rich countries that account for most of the world’s greenhouse gas emissions have pledged $661.39 million to the fund, falling short of the $100 billion to $580 billion global estimates for the annual loss and damage in developing countries.

The new law boosts Philippine climate initiatives and will “solidify the Philippines’ leadership in championing the voices of those most impacted by climate change,” Finance Secretary Ralph E. Recto said in a statement.

“We are determined for our hosting to set the gold standard for climate finance and action, not just across Asia and the Pacific, but around the globe.”

By hosting the board, the Philippines will play a leading role in helping attract support from developed countries and development partners to provide financial contributions in addressing losses and damage due to climate change, Mr. Recto said.

A devastating typhoon that tore through the Philippines, Taiwan and China last month, destroying infrastructure and leaving more than 100 people dead, was made significantly worse by human-induced climate change, scientists said in a report on Thursday.

Super Typhoon Gaemi (Carina), which killed dozens of Filipinos and triggered more than 40 landslides, also exposed the Philippines’ weak urban planning, according to the study by the World Weather Attribution.

As another typhoon made landfall in Japan, climate researchers said warmer seas were providing extra “fuel” for tropical storms in Asia, making them more dangerous.

Typhoon Gaemi swept across East Asia beginning on July 22, with more than 300mm (11.81 inches) of rain falling on the Philippine capital Manila in just a day.

Wind speeds as fast as 145 mph (232 kph) drove storm waves that sank an oil tanker off the Philippine coast and a cargo ship near Taiwan. Rain from Gaemi also caused fatal mudslides in the Chinese province of Hunan.

Typhoon Gaemi’s wind speeds were about 9 mph more intense and its rainfall up to 14% higher as a result of warmer sea temperatures, according to the scientists.

“With global temperatures rising, we are already witnessing an increase in these ocean temperatures, and as a result, more powerful fuel is being made available for these tropical cyclones, increasing their intensity,” Nadia Bloemendaal, a researcher at the Royal Netherlands Meteorological Institute, told a briefing on Wednesday before the report was released.

At the same briefing, Clair Barnes, a research associate at London’s Grantham Institute, said typhoons were now 30% more likely to occur compared with the pre-industrial age, warning that they would become even more common and intense if global temperature increases reach 2 degrees Celsius (3.6 Fahrenheit).

East Asia is accustomed to extreme weather, but its flood prevention infrastructure and emergency response planning are coming under increasing pressure, said Maja Vahlberg, a climate risk consultant with the Red Cross Red Crescent Climate Centre.

“Even our best efforts are being stretched to their limits,” she said. — Kyle Aristophere T. Atienza with Reuters