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Widodo pitches military aircraft deal to Marcos amid geopolitical tensions

PRESIDENT Ferdinand R. Marcos, Jr. and Indonesian President Joko Widodo led the toast at a state luncheon for the visiting Indonesian leader in Malacañan Palace on Wednesday. — PPA POOL/YUMMIE DINGDING

By Kyle Aristophere T. Atienza, Reporter

INDONESIAN President Joko Widodo on Wednesday asked Philippine President Ferdinand R. Marcos, Jr. to buy anti-submarine aircraft from Indonesia.

“I also seek your excellency’s support related to the purchase of anti-submarine warfare aircraft for the Philippine Navy from Indonesia,” the Indonesian leader, who is in Manila for a three-day visit, told Mr. Marcos during a meeting in Malacañang.

Mr. Widodo said Indonesia is also committed to keep market access open for Philippine crops.

In their meeting, Mr. Marcos, who visited Indonesia in September last year, cited flourishing bilateral ties that allowed partnerships in renewable energy, the creative economy and infrastructure development.

“Indonesia continues to be one of our closest friends and regional partners,” he said. “As neighbors we must remain united in addressing challenges that the region now faces.”

The Philippine military last year said it would deploy anti-submarine aircraft in the South China Sea, including two choppers from the United Kingdom, as it faced increasing threats from Chinese ships.

Military chief Romeo S. Brawner, Jr. in October said the British AgustaWestland 159 Wildcat chopper has a torpedo that can hit any submarine illegally entering Philippine territorial waters.

The Philippines was expected to procure four more anti-submarine aircraft.

“The Philippines’ anti-submarine warfare (ASW) capabilities are a long-lost operational art of the Philippine Navy, which the service must be able to execute well to gain a relative edge in its exclusive economic zones and the high seas,” Joshua Bernard Espeña, who teaches international relations at the Polytechnic University, said in a Facebook Messenger chat.

“Indonesia, with its wider archipelagic domain compared with the Philippines, can provide the appropriate assistance to training and doctrine development,” he added.

But Mr. Espeña said Indonesia’s navy is believed to have been built by a hodgepodge of technologies, which raises maintenance questions for its anti-submarine aircraft.

“We are not sure about the origins of the ASW aircraft technology,” he said. “Analysts consider Indonesia’s Armed Forces as a hodgepodge of technologies. If they derive mainly from Russian or Chinese origins, the Philippines may likely face maintenance concerns due to limitations brought by Washington’s sanctions over Russian and Chinese technologies.”

“But this is where Filipino diplomacy should be assertive. Manila must ensure guarantees from Jakarta to cover maintenance concerns,” he added.

The submarine deal could lead to an intra-ASEAN (Association of Southeast Asian Nations) endorsement of military modernization, Chester B. Cabalza, founder of Manila-based International Development and Security Cooperation, said in a Messenger chat.

The plan could also encourage the Philippine military to rethink the government’s self-reliant defense posture program, which made Jakarta realize the value of supporting an industrial military complex, he said.

“The confidence of military interoperability and deterrence become contagious if countries in the region like Indonesia and the Philippines support each other’s defense artilleries,” he added.

Mr. Espeña said defense exports let Indonesia boost its economic strength. “As long as geopolitically troubled customers like the Philippines are demonstrating demand, it is a good business for them for years to come.”

During their bilateral meeting, Mr. Widodo said the two countries should boost political and security ties “through concrete steps.”

“I welcome the strengthening of cooperation on border security, including through joint patrols, but there are many things that still need to be improved,” he said, citing the need to expedite proposed deals on border crossing and joint patrols.

“Settlement of continental set boundaries needs to be pushed,” he added.

The two leaders met amid heightened tensions between the Philippine and China. The Chinese Coast Guard on several occasions last year fired water cannons at Philippine ships trying to deliver food and other supplies to an outpost at Second Thomas Shoal.

“While Jakarta is not vocal about Manila’s stance against Beijing, it nevertheless understands Filipino concerns — albeit silently,” Mr. Espeña said.

Assisting the Philippines in its defense needs demonstrates Indonesia’s de facto leadership in the regional bloc, he said. “Whether this momentum continues in a post-Widodo presidency, only time can tell.”

38,000 drivers could lose jobs with modernization

PHILIPPINE STAR/WALTER BOLLOZOS

ABOUT 38,000 jeepney drivers could lose their jobs next month as the government’ transport modernization program takes effect, the Land Transportation Franchising and Regulatory Board (LTFRB) told congressmen on Wednesday.

The number represents units, which make up 24% of the total, that have not been consolidated under a cooperative or corporation, LTFRB Chairman Teofilo E. Guadiz III told a House of Representatives transportation committee hearing.

“About 38,000 drivers will be affected [by the] one driver, one jeepney [policy],” he said.

Unconsolidated public utility vehicles (PUV) have until Jan. 31 to operate, or a month after the year-end consolidation deadline.

Labor groups have sought a review of the plan, citing loss of control over individual franchises and high membership fees.

Joel J. Bolano, head of the LTFRB technical division, said about 76% or 146,897 PUV units had been consolidated by the end of last year. He added that 6,877 or 72.2% of routes nationwide have been consolidated.

He said 75% or 112,801 jeepneys have been consolidated.

Mr. Bolano said 15,928 or 82% of UV express units, 17,785 or 86% of public buses and 383 or 45% of minibuses have been consolidated.

LTFRB board member Riza Marie T. Paches said cooperatives could buy modern PUVs without increasing fares, which depend on fuel prices.

Party-list Rep. Bonifacio L. Bosita said a cooperative must raise more than P40,000 per unit a month to afford modern jeepneys, which cost P2.8 million each.

The minimum fare for traditional jeepneys is P13 and P15 for modern jeepneys.

Think tank IBON Foundation estimates that PUV fares could increase by as much as P50 in the next five years. — Beatriz Marie D. Cruz

Filipinos flock to Facebook for yearly Catholic feast of Black Nazarene

PHILIPPINE STAR/KRIZ JOHN ROSALES

SOME FILIPINOS turned to Facebook to avoid the crowd and coronavirus during the return of the Black Nazarene procession in Manila, where more than 6 million devotees took part, after a three-year break, according to research firm Capstone-Intel Corp.

The annual Catholic feast of the Black Nazarene, an idol of Jesus believed to have healing powers, got a 701,025 engagement score with 2,566 total posts, yielding 3.4 million reactions on the social media platform, Capstone-Intel said in a statement on Wednesday.

“Facebook love” accounted for 64.5% of the total reactions at 2.2 million, followed by 1.2 million likes (35.2%), “Facebook haha” at 4,795 (0.1%), “Facebook wow” with 2,144 (0.1%), “Facebook sad” with 1,808 (0.1%) and “Facebook angry” with 748 reactions, Capstone-Intel said.

“More Filipinos are now using the digital space to practice their faith, and looking at the data, a significant number of devotees have been taking their spirituality along with the changing digital landscape and accessibility to online platforms,” it said.

Aside from reaching 42.4 million people online in the Philippines, the feast also reached audiences in Syria (3.9 million), France (541,096), the United States (137,052), India (52,346), Russia (47,092), the United Kingdom (24,312), Canada (15,665), Australia (11,637) and Ukraine (9,352), Capstone-Intel said.

Meanwhile, small entrepreneurs took advantage of the procession to sell their wares.

Mae de los Reyes and her relatives, based in the district of Tondo, Manila sold hand-printed face towels bearing the image of the Black Nazarene.

“We spent P18 to produce each towel,” she said in an interview near Quiapo Church. “Initially, we were selling each towel for P25, but we decided to cut the price to P20 each.”

Unsold items would be sold online after the feast, she said.

“It’s a season that creates a surge in demand for the products of small-scale businesses,” John Paolo R. Rivera, an economist at the Asian Institute of Management, said in a Facebook Messenger chat. “Revenues from the occasion may be equivalent to days or weeks of work.”

Errol Jarapa from Quezon City sold calendars with the image of the Black Nazarene for P160 each, earning P60. Unsold items would be returned to the owner of a printing press, he said.

“The continued reopening of the economy toward greater normalcy has benefitted micro, small and medium enterprises, especially those that were hit hard by the pandemic,” Michael M. Ricafort, chief economist at Rizal Commercial Banking Corp., said via Messenger chat.

“The resumption of religious festivities such as the Black Nazarene feast helps generate more sales, earnings and employment for more people.”

Marites Arevalo, a 46-year old vendor from Caloocan City, had sold 3,000 leis of sampaguita by 3 p.m. and was expecting to earn P2,000.

“After the feast, I’m back to doing house-to-house selling in our community,” she said. “I go to Quiapo every Nazareno feast to sell Sampaguita because there are so many people.”

“Filipinos have a very tangible faith,” said Jairus D. Espiritu, a philosophy lecturer at Mapua University, noting that touching images of saints is part of their worship.

“Some scholars would argue that these practices are remnants of an animistic past,” he said in a Messenger chat. “Perhaps they are, but it is undeniable that it has already taken a uniquely different form — one that is truly Filipino, but still Catholic.”

With a P25 capital, Dennis Tiron sold necklaces with a Black Nazarene pendant for as much P100 during the feast. “Overall, I spent P10,000 to buy these items wholesale. I’m also expecting P10,000 or more in profit.” — Kyle Aristophere T. Atienza

Iloilo lost P3.8B due to blackouts — governor

PHILSTAR FILE PHOTO

ILOILO has suffered about P3.8 billion in economic losses due to the recent four-day blackout in Western Visayas, which lawmakers are looking into, according to Governor Arthur R. Defensor, Jr.

At a Senate energy committee hearing looking into the two blackouts since Jan. 2, Mr. Defensor said the Iloilo government is eyeing legal action against agencies found liable for the power failure.

Iloilo City Mayor Geronimo P. Treñas told the same hearing that the city has lost about P500 million a day or about P2 billion in the four days without power.

“I am angry for the suffering of our beloved Ilonggos and the rest of Western Visayas, the people affected by this region-wide power outage,” the mayor told the hearing.

Senators had urged the Nation Grid Corporation of the Philippines (NGCP) and the Department of Energy (DoE) to be more transparent and to accept accountability for the blackouts.

“NGCP’s failure to immediately acknowledge the shortcomings in managing the Panay power outage further erodes trust and raises concerns about their commitment to transparency in addressing systems issues within their operations,” said Senator Francis N. Tolentino in his opening statement at the hearing.

In a separate statement, the NGCP said it had followed Energy Regulatory Commission (ERC) protocols when it responded to the multiple plant shutdowns in Panay, adding it did not observe abnormalities in the power system.

Citing the Philippine Grid Code, the NGCP said when there are unplanned outages of a plant, but the system is considered stable, the power transmission operator is not allowed to impose “manual corrective actions,” in anticipation of another blackout or outage.

“It only means that disengaging loads manually or disconnecting thousands of households from their supply of power, as recommended by the DoE and the Independent Electricity Market Operator of the Philippines, in anticipation of a subsequent grid event, is prohibited under the rules,” it said.

“We (NGCP) strictly abide by the rules to run the grid smoothly and avoid disturbances,” it added. — John Victor D. Ordoñez

TUCP pushes labor-friendly laws

THE TRADE Union Congress of the Philippines (TUCP) urged Congress on Wednesday to pass more laws upholding workers’ right to organize, claiming it would attract more foreign investors to set up shop in the country.

Earlier, TUCP Rep. and House Deputy Speaker Raymond Democrito C. Mendoza had filed bills on the ease of union registration and the removal of dismissal and imprisonment as penalties for illegal worker strikes.

“TUCP proposes a whole-of-society response to ensure that workers and their rights are upheld at all times so that more foreign investors can set up shop here with the expectation, as a result of worker rights-friendly policies, that their products produced here can be exported tariff-free,” TUCP vice president Luis C. Corral said in a statement, referring particularly to the United States and European markets. 

Following the report that the jobless rate in the country dropped to 3.6% in last November, the lowest in 18 years, the TUCP expressed its intention to collaborate with the Marcos administration on trade strategies aligning with labor rights compliance and good governance for tariff-free access to US and European markets.

“That translates to the creation of hundreds of thousands of decent, well-paying jobs here at home,” Mr. Corral said. The report had noted job quality was stagnant as the underemployment rate, which measures Filipinos already working but looking for more work or longer working hours, stayed at 11.7%.

The TUCP stressed the need for regular and decent jobs, stating that Presidential Adviser on Investment and Economic Affairs Frederick D. Go’s approach and the economic management team’s strategy will impact foreign investments.

“These vital reforms will upgrade our investment profile and the global stature of the Philippines as truly modern,” said Mr. Corral. — John Victor D. Ordoñez

SEC names 8 unregistered firms

SEC.GOV.PH

BAGUIO CITY — The Securities and Exchange Commission (SEC) in this city has identified eight entities operating like Ponzi schemes and lacking the required licenses for soliciting investments.

The SEC-Baguio City identified the unauthorized entities as: House of Forex/H. Flores Business Consultancy Services, Foto Trading International, HarvestCTMall, Crypace Limited/Crypace Financial Consultancy Services, DNKC Corporation, Gainz Philippines, S&M Ventures, and Salon de Alexis.

It warned the public against engaging with these entities and described some of their investment schemes as resembling the outlawed pyramid or Ponzi schemes.

In such schemes, earnings come from recruitment fees rather than the sale of actual products/services, and investors are paid using contributions from new members.

Earlier, the SEC named several firms involved in Ponzi schemes and encouraged the public to stay informed by visiting the website www.sec.gov.ph. — Artemio A. Dumlao

Apo Agua supplies water in Davao

BW FILE PHOTO

DAVAO CITY — Apo Agua Infrastructura, Inc. (AAII) has commenced supplying water to the Davao City Water District (DCWD) and is now in the fine-tuning stage of interfacing activities for the over P13-billion Davao City Bulk Water Supply Project (DCBWSP) since last month.

“The construction and commissioning of Apo Agua’s critical facilities have been completed since December 2023,” said AAII external relations officer May Che Capili, who made the announcement on Tuesday before the City Council when she gave updates on Part A of the project.

According to the announcement, Apo Agua — which is the water business unit and subsidiary Aboitiz InfraCapital (AIC) — has been supplying bulk water to its Calinan, Tugbok, Riverside, Dumoy, Cabantian, and Panacan water supply systems (WSS) since Dec. 1.

In a joint statement, Apo Agua and DCWD said that prior to distribution they have verified that the water quality meets the Philippine National Standards for Drinking Water.

Apo Agua, which is the builder of the state-of-the-art bulk water facility that includes a 300 million liter per day (MLD) water treatment plant with a 70-kilometer pipeline, also guarantees sustainable delivery of quality bulk water supply to six DCWD water supply systems.

Part A of the project involves Apo Agua’s construction of raw water intake facilities, a hydroelectric power plant, a water treatment plant, and a treated water pipeline, while Part B is for DCWD’s undertaking that involves the construction of facilities for various off-take points, primary transmission and distribution pipe mains and storage facilities, and the distribution of treated water to residential, governmental, commercial, industrial, and water end-users.

DCWD spokesperson Jovana Cresta T. Duhaylungsod said the distribution is still a part of the ongoing preparations and interfacing activity of both Parts A and B.

Starting Jan. 1, 2024, the DCWD has been accepting new service connection applications in more areas, particularly in: all areas in Panacan WSS — Sasa, Panacan, Ilang, Tibungco, Bunawan, and Lasang; all areas in Cabantian WSS — Cabantian, Communal, and Indangan; and most of Dumoy WSS — Sasa, Pampanga, Lanang, Bajada, Buhangin, Indangan, Mandug, Agdao, and downtown proper. — Maya M. Padillo

Customs seizes P7.5-M ‘shabu’

PHILSTAR FILE PHOTO

THE BUREAU of Customs (BoC) announced on Wednesday that it intercepted an illegal shipment of methamphetamine hydrochloride or “shabu” valued at P7.507 million just before being exported to New Zealand last Jan. 3.

“The export shipment originating from Parañaque City was initially tagged as suspicious by X-ray Inspection Project personnel. It immediately underwent K9 sniffing and physical examination, which resulted in the discovery of three packs of white crystalline substances weighing 1,104 grams concealed inside a shaft drive,” the BoC said in a statement.

Meanwhile in Mindanao, anti-narcotics agents seized another P6.8 million worth of “shabu” in an entrapment of a dealer only known as “Dhats,” in Barangay Tapayan, Sultan Mastura, Maguindanao del Norte.

Gil Cesario P. Castro, director of the Philippine Drug Enforcement Agency-Bangsamoro Autonomous Region in Muslim Mindanao, revealed that Dhats managed to elude arrest when his companions engaged the agents in a shootout. — Luisa Maria Jacinta C. Jocson and John Felix M. Unson

House leader calls on senators to reconsider Charter change

PHILIPPINE STAR/MICHAEL VARCAS

A LEADER of the House of Representatives called on senators on Wednesday to support the call of business groups for changes to the 1987 Constitution, citing necessary amendments in order to create more jobs.

“We can accelerate capital formation and hasten our economic growth for the benefit of our people if we can introduce constitutional reform,” House Senior Deputy Speaker and Pampanga Rep. Aurelio D. Gonzales, Jr. said in a statement.

Mr. Gonzales said amending the Charter would help in further decreasing the number of jobless Filipinos, which had already gone down to 1.83 million in November 2023 from 2.09 million in the previous month, according to the latest Philippine Statistics Authority (PSA) report.

“This means that there were an additional 260,000 of our labor force who got themselves employed in jobs created in the economy through investments. We could create more job and income opportunities for our people if we could attract more investments, especially funds from foreign investors,” he said.

Last year, the House passed Resolution of Both Houses No. 6, seeking to amend the Constitution through a constitutional convention. The measure only reached the Senate committee level, with many senators deeming the proposal unnecessary.

In December, House Speaker Ferdinand Martin G. Romualdez revived proposal to amend the 1987 Constitution to ease economic restrictions.

Senator Robinhood C. Padilla, who heads the Senate constitutional amendments and revision of codes committee, said any calls to revise the Constitution should come from the public.

“We must discuss people’s initiative thoroughly. Such a power of the people should not be twisted by some politicians to suit their ambitions,” Mr. Padilla said in a statement.

Meanwhile, House Deputy Minority Leader and Party-list Rep. France L. Castro sounded the alarm over a particular television advertisement allegedly promoting Charter change.

“We are now mulling to file a House resolution to probe the funding used for the pro-Charter change ad now running on television,” she said in a statement.

For his part, Interior Secretary Benjamin D. Abalos, Jr. told DzBB radio that the Department of the Interior and Local Government (DILG) is not participating in any signature campaign supporting Charter change.

Earlier, Albay Rep. Edcel C. Lagman said municipal mayors were allegedly asked to give P100 to every constituent who signs up a petition to amend the 1987 Charter through a people’s initiative. — Beatriz Marie D. Cruz

PHL-Indonesia deal may cushion coal, gas shocks

REUTERS

THE PHILIPPINES and Indonesia signed an energy collaboration deal designed to smooth out any supply disruptions in critical fuels like coal and liquefied natural gas (LNG).

The signing of the memorandum of understanding (MoU) between the Philippine Department of Energy and Indonesian Ministry of Energy, which was witnessed by President Ferdinand R. Marcos, Jr. and visiting Indonesian President Joko Widodo. It updates the long-term energy cooperation arrangements between the two countries, Energy Secretary Raphael P.M. Lotilla said in a statement.

“On the part of the Philippines, it is an offshoot of our President’s efforts to achieve higher energy security through energy diplomacy,” he said.

Under the MoU, the two countries will collaborate via their respective business sectors “during periods of critical supply constraints on energy commodities such as coal and liquefied natural gas,” Mr. Lotilla said.

He said bilateral agreements on energy should consider the increasing role of the private sector in the two countries’ energy sectors, noting that previous deals “reflected the dominance of state-owned companies in the power sector in the Philippines and the upstream sector including coal mining in Indonesia.”

The Philippines has been a key market for Indonesian coal, which accounted for 98% of Philippine coal imports in 2022, “consistently increasing from 88% in 2017,” Mr. Lotilla said.

He noted that a coal export ban imposed by Indonesia in January last year following the failure of its coal mines to provide adequate supply for domestic power plants and markets pushed coal prices higher.

“This forced countries like the Philippines to scramble for alternative sources of coal and caused coal prices to spike,” he said. “The Philippines imported more than 80% of its coal requirements in 2023 and even more than 90% in previous years.”

“Since then, the Philippines exerted diplomatic efforts to ensure a steady flow of coal supply from Indonesia,” he added.

Mr. Lotilla said the two countries remain highly dependent on coal-fired power plants and that their transition to cleaner technologies should not affect their energy stability.

Indonesia and the Philippines, respectively, are second and third globally in terms of installed capacity of geothermal generation plants, he noted.

“Transitioning to clean energy to achieve energy security goals would require a transition fuel capable of providing baseload generation that would fill in the gap when existing coal-fired power plants start to retire,” he said.

“Natural gas, including LNG, is a suitable transition fuel where the private sector investments in this technology will be facilitated to address the variability of renewable energy capacity additions and ensure the reliability and security of the power system,” he added.

“The two countries are major sources of minerals needed for the energy transition and have vast potential for solar, wind and ocean energy production.”

Philippine energy security has emerged as a critical issue as the Malampaya gas field approaches commercial depletion. Malampaya is the Philippines’ only indigenous commercial source of natural gas.

The loss of Malampaya output could result in 12 to 15-hour rotational brownouts across Luzon.

“This is a strategic collaboration especially since the Philippines imports more than 90% of its coal requirements from Indonesia. The LNG cooperation will also help the Philippines address its supply requirements since Malampaya gas reserves continue to deplete,” according to Jose M. Layug, Jr., president of Developers of Renewable Energy Advancement, Inc.

The agreement “speaks well of the Marcos administration’s forward-looking approach towards long-term energy sustainability,” he said in a Viber message.

Bienvenido S. Oplas, Jr., president of think tank Minimal Government Thinkers, noted that sharing of knowledge and technology in gas exploration and development between the two countries could be leveraged into a long-term partnership.

“Indonesia is not so much a gas exporter, Brunei is. But it’s good to mention that in the MoU because Indonesia’s gas potential reserves may not have been tapped yet; neither have those of the Philippines’,” he said in a Viber message.

Mr. Oplas said the deal also signals the continuation of the Philippines’ reliance on coal, which he said will remain a significant source of energy for many countries “because it’s abundant, cheap and easy to transport and store, and can provide dependable, reliable, 24/7 electricity except during maintenance shutdowns.”

“The so-called transition away from coal did not happen in Germany, did not happen in many other ‘decarbonizing’ countries,” he said, noting that coal accounted for 62% of Indonesia’s electricity generation in 2022.

Indonesia is a major coal exporter and the Philippines generated about 60% of total electricity from coal-fired plants in 2022 and 2023, he said.

Indonesian Energy Minister Arifin Tasrif assured the Philippines of “continued and uninterrupted coal supply from Indonesia” in a bilateral meeting with Mr. Lotilla during the Asia Zero Emission Community Ministers’ Meeting in Tokyo in March 2023 and the 41st ASEAN Energy Ministers Meeting in August 2023 held in Bali. — Kyle Aristophere T. Atienza

Budget, infra constraints expected to hinder DA food stockpile plan

PHILIPPINE STAR/ MICHAEL VARCAS

THE lack of storage infrastructure and funding may pose challenges as the Department of Agriculture (DA) gears up to stockpile agricultural commodities in response to possible shortages, analysts said.

Roy S. Kempis, a retired Pampanga State Agricultural University professor, said in a Viber message that infrastructure like shared community facilities, equipment, and farm-to-market roads will be a challenge if the government plans to build up reserves of agricultural products.

On Monday, the DA said that it is drafting the implementing rules and regulations (IRR) for Section 9 of the Price Act.

Section 9 of the law authorizes the allocation of funding for the procurement, purchase, import, or stockpiling of basic necessities or prime commodities, and determine ways to distribute these items during shortages or in the event of a need to influence market prices.

Philippine Institute for Development Studies Senior Research Fellow Roehlano M. Briones said that the DA would need the spending capacity to continue stockpiling commodities like rice if it is to move market prices significantly.

“The big problem is the cost of the rice stockpile; we’ll need a much larger budget if we want to have a stockpile large enough to stabilize prices,” Mr. Briones said in a Viber message.

The National Food Authority (NFA) is authorized to purchase domestically grown rice and hold it in reserve in the event of shortages or calamities, as outlined in the Rice Tariffication Law of 2019 (Republic Act No. 11203).

Philippine Chamber of Agriculture and Food, Inc., President Danilo V. Fausto said NFA warehouses, which are typically used for rice storage, should also be configured to store prime commodities like high-value crops.

“It is not just funding that they need, but storage as well. I recommend the use of NFA facilities for storage,” Mr. Fausto said by telephone.

A technical working group created by the DA will consult with consumer groups and collaborate with the Department of Trade and Industry and other government agencies to develop the IRR.

Under the Price Act, the DA has the power to monitor the prices of crops, fish and other marine products, fresh meat, fresh poultry, dairy products, fertilizer and other farm inputs during emergencies.

Mr. Fausto listed products like high-value crops, meat, fish, and dairy as candidates for stockpiling.

“All seasonal commodities should (also be stockpiled,” he said.

“Due to seasonality, there are times when products like high-value crops have price surges when there is insufficient supply,” he added. — Adrian H. Halili

Philippines’ 2024 GDP growth may fall short of gov’t target — BPI

PHILIPPINE STAR/ MICHAEL VARCAS

BANK of the Philippine Islands (BPI) expects gross domestic product (GDP) growth of 6.2% this year, short of the official government target.

“While significant uncertainties remain, the country may maintain its position as one of the fastest-growing economies in the region with a full year growth rate of 6.2% in 2024,” BPI said in a statement.

BPI’s forecast is below the government’s 6.5-7.5% target range for GDP growth this year.

GDP growth accelerated to 5.9% in the third quarter, bringing the nine-month average to 5.5%, still below the government’s 6-7% full-year target.

“With the anticipated easing of 2024 inflation, consumer spending may recover in 2024,” BPI said.

The bank sees headline inflation averaging 3.7% this year, within the Bangko Sentral ng Pilipinas’ (BSP) 2-4% target, but cited upside risks like El Niño, which may reduce food harvests and send prices higher.

Inflation is expected to rise again in the second quarter, breaching 4%, before settling within the BSP’s 2-4% target range in the second half.

Inflation slowed to 3.9% in December, settling within the central bank’s 2-4% target for the first time in nearly two years, and easing from 4.1% in November and 8.1% a year earlier. This also was the lowest reading in 22 months or since the 3% posted in February 2022.

Inflation averaged 6% for 2023 from 5.8% in 2022, marking the second straight year of inflation breaching the BSP’s 2-4% target.

BPI sees investment spending ramping up this year, driven by the construction sector and with companies becoming more aggressive in capital expenditures on the expectation that interest rates have peaked. 

“Public construction will continue to be a major driver of capital spending as the government ramps up its infrastructure program, including the implementation of its Build, Better, More (BBM) projects,” BPI said.

BPI sees the BSP keeping rates steady until the second half until inflation is firmly within the central bank’s target, before mirroring the Federal Reserve’s easing cycle.

“So far, Fed officials have signaled the possibility of rate cuts amounting to 75 bps (basis points) in 2024. We also expect a 75-bp cut from the BSP this year, which will bring the policy rate to 5.75% by end-2024,” BPI said. — Aaron Michael C. Sy