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Marcos told to prioritize key issues over ‘Cha-cha’

By Kyle Aristophere T. Atienza, Reporter

THE PHILIPPINES’ largest business group has called on the government of President Ferdinand R. Marcos, Jr. to work on lowering energy and logistical costs as well as deal with geopolitical risks instead of creating political instability by pushing changes to the 1987 Constitution.

The Philippine Chamber of Commerce and Industry (PCCI) also cited the slow progress in the country’s anti-corruption fight and the political squabble between the President and his predecessor Rodrigo R. Duterte, which it said is undermining the country’s image on the global stage.

Rising energy and shipping costs and worsening geopolitical conflicts are hurting Philippine businesses and making the country unattractive to foreign investors, PCCI Chairman George T. Barcelon said by telephone.

“All these costs, we can see a steady increase in the trend,” the businessman said. “These issues should be addressed first before Charter change (‘Cha-cha’).”

The outlook for Philippine energy is bleak as the Malampaya gas field gets depleted by 2027. Malampaya, whose supply is expected to dwindle this year, is the Philippines’ only indigenous source of natural gas.

Output loss is expected to result in 12- to 15-hour rotational brownouts across the main island of Luzon.

Meanwhile, tensions in the Red Sea, a major global shipping route, have remained elevated as Iran-backed Houthi rebels continue to attack cargo ships and tankers amid the conflict between Israel and Gaza, affecting the movement of goods globally and driving shipping rates up.

Philippine Economic Zone Authority Director-General Tereso O. Panga earlier said rerouting ships around the Red Sea could make shipping costs 15% more expensive due to additional fuel per trip between Asia and Northern Europe.

He also said rising fuel prices spurred by wars including Russia’s invasion of Ukraine, and El Niño that is is expected to last until the second quarter is affecting Philippine farm output.

Philippine inflation averaged 6% in 2023, the second straight year that it breached the central bank’s 2-4% target.

Senators and congressmen continue to trade accusations amid the push to amend the Constitution, and the President and his wife have been dragged into the mess.

The Senate has rejected a so-called people’s initiative for Charter change, which Mr. Duterte and his allies have linked to Mr. Marcos and his cousin Speaker Martin G. Romualdez.

The Commission on Elections on Monday suspended proceedings on the initiative, which senators led by presidential sister Maria Imelda “Imee” Marcos are investigating.

“What is the extent of this ‘Cha-cha?’” Mr. Barcelon asked. “We don’t see any new specific issues that this Charter change seeks to address,” he added, noting the business community is wary about where it is headed.

He said the country in recent years has relaxed restrictions in many sectors without constitutional amendments.

‘NOT HELPING’
He cited changes to the Public Service Act in 2022 to allow full foreign ownership in key domestic sectors including airports, railways, subways, tollways, telecommunications and domestic shipping, as well as amendments to the Retail Trade Liberalization Act that lowered the minimum paid-up capital requirements for foreigners.

Mr. Marcos on Tuesday night said his government is after economic provisions of the Charter. “We have been in continuous discussion with both Houses in recent days. In fact, I met with our legal luminaries and tried to find a way because I’m really after the economic provisions,” he told reporters while on a state visit to Vietnam.

The “Cha-cha” push is also a source of tension between Mr. Marcos and Mr. Duterte, who on Sunday accused him of being a drug addict.

National Economic Development Authority Secretary Arsenio M. Balisacan on Wednesday said political instability is bad for the local investment climate.

Mr. Marcos and his predecessor’s daughter Sara Duterte-Carpio ran in tandem in the 2022 elections under a platform of unity.

“There has to be a cease-fire,” Mr. Barcelon said. “We have a former and a present leader talking about those topics, and we think it projects the wrong image for our country. It’s not helping any, especially at a time when we face headwinds.”

He also lamented the slow progress in the fight against corruption.

Philippines ranking in Transparency International’s 2023 Corruption Perceptions Index inched up one spot to 115th out of 180 countries, while its score remained at a record low.

“We have not improved a lot,” the PCCI chief said. “It shows that corruption is still an issue. When you talk about the issue of ease of doing business, that can be translated into both the bureaucracy and, on the flip side, corruption.”

“That has also always been on the mind of various business groups.”

Mr. Barcelon said Vietnam has attracted foreign direct investments (FDI) despite foreign ownership restrictions in some of its key sectors.

Vietnam had FDIs worth $112 billion from 2010 to 2019, compared with $57 billion for the Philippines. Its merchandise exports in 2019 hit $300 million, compared with $70 million for the Philippines.

“We have all the conditions to attract FDIs,” the businessman said. “But somehow, it’s a matter of perception. And this political squabble is affecting our image. It’s causing uncertainties.”

“There are other aspects that we know very well have been there. Our logistics costs are one of the highest. Our energy costs are also among the highest. In the immediate term, these issues must be addressed,” he added.

PHL House think tank proposes 3 tiers for sugar tax

PHILSTAR FILE PHOTO

A TAX on sweetened drinks has failed to stop Filipinos from consuming unhealthy beverages, forcing many of them to shift to cheaper alternatives instead, according to a House of Representatives think tank.

“While it has raised billions [of pesos] in revenues for the government, its capacity to curb sugar-sweetened beverage consumption is expected to vary wildly from product to product,” the Congressional Policy and Budget Research Department (CPBRD) said in a report posted on its website.

The government raised an average of P38 billion from 2018 to 2022 from the sugar tax. But it only managed to narrow the gap between the per liter prices of the most expensive sugar-sweetened beverages and more affordable variants.

“This, in turn, afforded consumers ample opportunities for substitution, the CPBRD said.
The government charges P6 per liter of sweetened beverages sweetened with caloric or noncaloric sweeteners and P12 per liter for beverages sweetened with high-fructose corn syrup amid a rising incidence of obesity.

The tax increased the price of imported soda by 20%, causing a 10% decrease in demand in 2018, the think tank said.

“This observation, in turn, suggests that Filipinos are, given prevailing prices and economic conditions, relatively insensitive to price increases in Coca-Cola,” according to the report.

It also noted that the sugar tax had failed to distinguish the risks of sugar content for each drink. “As a result, the tax fails to provide consumers with critical information needed to make truly informed decisions.”

The tax for sweet drinks should have a “three-tier system” based on sugar content to push manufacturers to resort to drinks with low-sugar content, the House think tank said.

“This tax structure can be strongly argued to have the capacity to nudge consumers towards low-sugar products and encourage manufacturers to keep the sugar content of their products as low as possible as it imposes appreciable costs on high-sugar, sugar-sweetened beverages,” it added.

While a specific tax per gram of sugar content would generate the most economically optimal outcomes, it is likely difficult, if not impossible, to administer, according to the report. “The next best alternative would be a tiered sugar content tax regime wherein tax rates are defined by sugar content cutoffs.”

It cited the United Kingdom soft drink industry levy, in which a one-liter bottle of Coca-Cola is taxed under the second tier given that it has over 7.5 grams of sugar per 100mL.
The think tank also noted that Filipino companies shifted from high-fructose corn syrup as sweeteners because of the higher tax.

“The paper therefore argues that a sugar content tax regime is more effective in giving consumers price signals that clearly distinguish between high-sugar, high-risk sugar-sweetened beverages and low-sugar, low-risk sugar-sweetened beverages,” it said.

Moving toward a sugar content-based taxation approach supported by legislation on consumer education could optimize health outcomes while minimizing unintended health consequences, it added. — Beatriz Marie D. Cruz

Pangilinan sees chance to attract supporters amid UniTeam discord

Francis “Kiko” N. Pangilinan — PHILSTAR

ONE of the main figures of the opposition in the Philippines has called for openness among their ranks to any dialogue with those supporting the personality-driven alliance of President Ferdinand R. Marcos, Jr. and Vice President Sara Duterte-Carpio as it may tend to a shift in political tides.

Speaking on Thursday, former senator Francisco “Kiko” N. Pangilinan of the Liberal Party said insulting words aimed at people who backed the so-called UniTeam alliance in 2022 polls does “not help advance the cause we fought for then and continue to fight for now.”

In particular, Mr. Pangilinan was referring to social media posts and memes with the phrase, “tama nga kami” (we are correct) and followed by the phrase “tanga kami” (we are stupid).

There have been calls for opposition forces to recalibrate their strategies to expand their bases in the face of the word war between the President and his predecessor, Rodrigo R. Duterte, which is believed to widen the gap between Mr. Marcos and Ms. Duterte-Carpio, who both ran under a platform of unity in the 2022 elections.

“We need to persuade and convince. We do not need to ridicule and insult,” Mr. Pangilinan said. “We need to communicate and listen, not insult and start a fight.”

In a rally in Davao City last Sunday, Mr. Duterte called his successor a “drug addict” and his son, Davao Mayor Sebastian Z. Duterte, publicly asked Mr. Marcos to resign. The following day, Mr. Marcos remarked that his predecessor’s tone could be a result of fentanyl — a drug Mr. Duterte previously said he had taken as a pain reliever.

While the President has since said he would maintain Ms. Duterte-Carpio in his Cabinet and, in turn, the Vice President thanked Mr. Marcos for his trust in her, their coalition is seen by opposition forces as an opportunity to provide political alternatives to the public.

“A divided UniTeam means a division in their numbers which is ultimately a good opening for the opposition — old or new,” WR Numero Research chief executive officer and President Cleve V. Arguelles said in a Facebook Messenger chat.

Mr. Arguelles stressed that getting elected to power “is a math game as much as it’s a battle of ideas and platforms.”

“If we look at past polling data and election results, the Marcos and Duterte factions when divided can mobilize less numbers than what they currently enjoy. Like around 30% each,” he said. “That leaves the rest of the country, at around 40%, to be convinced that a country led by the opposition leaders is a country better governed.” — Kyle Aristophere T. Atienza

SC denies seaman’s benefits

THE SUPREME COURT (SC) has affirmed a Court of Appeals (CA) ruling dismissing the claim of a seafarer’s widow to Social Security System (SSS) death benefits, failing to prove an employer-employee relationship with a shipping firm when her husband died.

In an eight-page resolution, the SC said the widow of the seaman in this case failed to provide evidence that her husband’s accident in 1994 that resulted in a contusion in his left lumbar was the cause of his death six years later.

Also, the High Court affirmed the CA ruling that upheld the SSS finding that the widow had failed to prove her husband’s employer-employee relationship with Philimare Shipping, Inc. at the time of his death.

It cited that the Employees’ Compensation Commission (ECC) had also denied the death benefits claim, since her husband stopped working as a seaman until the time of his death.

The commission had ruled that there was no proof that the seaman was suffering from a lung ailment at the time he was onboard a vessel. The High Court noted that the widow failed to include certified true copies of the ECC’s decision in her claim.

“Clearly, petitioner failed to substantiate her claim that her husband’s accident in March 1994, which led to a contusion on his left lumbar, ultimately led to his death in December 2000 due to tuberculosis,” the SC ruling stated. — John Victor D. Ordoñez

Angkas eyes four-wheel service

RIDE-HAILING mobile app, Angkas, is targeting to launch a four-wheel service called Angcars, the motorcycle taxi and delivery service provider said on Thursday.

“Angcars is designed to be an advanced ride-hailing app that seamlessly blends affordability with user-friendly navigation,” Angkas Chief Executive Officer George Royeca said in a statement.

The soon-to-be-launched app seeks to introduce options like Angcars Economy and Angcars Plus, which would allow a passenger to request four-seater or six-seater vehicles, respectively.

For the motorcycle taxi app, the company is eyeing to include service features such as Angkas Health and Angkas Padala.

Angkas Health will provide “straightforward five-step process” that includes home blood testing by licensed medical professionals, while Angkas Padala will be equipped with digital seller tools, payment and disbursement access. — Sheldeen Joy Talavera

Probe women’s cases, UN agent told

BW FILE PHOTO

A PRO-WOMEN’S party-list lawmaker on Thursday called on United Nations (UN) Special Rapporteur for Freedom of Opinion and Expression Irene Khan to investigate cases of alleged “state-perpetrated” violence against women in the Philippines amid the lack of action in Congress.

“With the National Task Force to End Local Communist Armed Conflict (NTF-ELCAC) and under the Anti-Terror Law, many women experience abuses and have been filed trumped-up cases,” Gabriela Party-list Rep. Arlene D. Brosas said in a statement.

She lamented that despite the submission of 33 resolutions before the House of Representatives during the 18th Congress, no progress has been made on inquiries into alleged rights violations of women human rights defenders and activists.

“It is alarming how the government has been wielding its power to silence women who are fighting for the rights of the people amid the lack of decent jobs, meager wages, lack of genuine land reform, and deteriorating human rights situation in the country,” Ms. Brosas said.

Party-list Rep. Raoul Danniel A. Manuel, also submitted a separate report to Ms. Khan calling for an investigation on the government’s alleged attacks against student groups.
Human rights group Karapatan reported that there are 795 political prisoners in the country with 84 arrested under the Marcos administration as of November last year. — Beatriz Marie D. Cruz

DTI coffee hub to boost MSMEs

THE Tsokokapetearia Café of the Department of Trade and Industry Region 12 in Koronadal City is a very promising venture to boost micro, small and medium enterprises (MSMEs) which was launched early this week. Photo by THE PHILIPPINE STAR/JOHN FELIX M. UNSON

KORONADAL CITY — In support of micro, small, and medium enterprises (MSMEs), the regional office of the Department of Trade and Industry (DTI-12) opened here this week a coffee shop with a “pasalubong center” showcasing goods from local enterprises in central Mindanao.

DTI-12 Director Flora P. Gabunales said the opening of TsokoKapetearia aims to connect coffee producers in Kidapawan, Tacurong, Koronadal, General Santos, Cotabato, Sultan Kudarat, South Cotabato, and Sarangani to external markets.

“We capacitate them (MSMEs) to become self-reliant and agents of social change,” she said of the café, which was originally planned for launching in 2021 but delayed by the COVID-19 pandemic.

In a statement Thursday, Cotabato Gov. Emmylou Taliño-Mendoza, who chairs the Regional Development Council 12, said she will support the establishment of other TsokoKapetearia outlets in other provinces in the region to further capacitate MSMEs. — John Felix M. Unson

Gov’t urged to investigate Dutertes

HUMAN rights group Karapatan urged the Marcos administration on Thursday to investigate testimonies given by whistleblowers that incriminate former president Rodrigo R. Duterte in violent excesses during his administration’s bloody war on drugs.

“Not only have the whistleblowers implicated Duterte’s group in the DDS killings. They have pinpointed Rodrigo Duterte as one of, if not the biggest, drug lord in the country who used his aggressive anti-drugs war as a convenient cover and an opportunity to eliminate rival drug kingpins,” said Kaparatan secretary-general Cristina Palabay.

She was referring to previous testimonies given by self-confessed hitman, Edgar Matobato, retired police officer Arturo Lascañas.

Last Wednesday, Mr. Lascañas named Mr. Duterte, Vice President Sara Duterte-Carpio, as well as Senators Ronald M. Dela Rosa and Christopher Lawrence T. Go as responsible for the “war on drugs” that killed thousands.

In response, Ms. Duterte-Carpio called the accusations “a new script” from critics.

“In my years as a vice mayor and mayor of Davao City, my name was never involved in any of these issues,” she said in a statement.

But Ms. Palabay said that Mr. Matobato’s previous testimony on the alleged involvement of the Dutertes and their allies on vigilante killings in Davao City must also be revisited.

“It is high time that these revelations not only be seriously investigated through Philippine domestic mechanisms. For the sake of the victims, who number in the tens of thousands, the investigations must exact justice and accountability from the perpetrators,” she said. — Beatriz Marie D. Cruz

 

Shares drop as Powell rules out March rate cut

COURTESY OF PHILIPPINE STOCK EXCHANGE, INC.

PHILIPPINE SHARES closed lower on Thursday as US Federal Reserve Chair Jerome H. Powell said they were unlikely to cut rates next month following their policy meeting this week.

The benchmark Philippine Stock Exchange index (PSEi) dropped by 23.43 points or 0.35% to 6,623.01 on Thursday, while the broader all shares index declined by 13.46 points or 0.38% to 3,486.03.

“This Thursday, the local market dropped by 23.43 points to 6,623.01 due to negative spillovers from Wall Street overnight as the Federal Reserve downplayed rate cut hopes for March in its first meeting for the year,” Philstocks Financial, Inc. Research and Engagement Officer Mikhail Philippe Q. Plopenio said in a Viber message.

“With the current path of inflation in the US, Fed Chair Jerome Powell stated that the committee is not yet confident to cut rates in their next meeting,” he added.

Asian shares faltered on Thursday after Wall Street took a late spill, while investors stuck to bets for sizable cuts in US interest rates this year even if the kickoff might now be a little later than first hoped, Reuters reported.

The Federal Reserve committee’s decision to hold rates at 5.25-5.5% on Wednesday was no surprise, it took a dovish twist by emphasizing that rates would not be cut until it had more confidence that inflation was truly beaten.

In a media conference, Mr. Powell flatly stated a cut as early as March seemed unlikely, but also conceded that everyone on the committee was looking to ease this year.

“Oil prices spiked following the US-Iran conflict. Since Friday, Iran militants have killed three US soldiers, and this development raises crude supply concerns,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan added in a Viber message.

Most sectoral indices ended lower on Thursday. Mining and oil fell by 135.42 points or 1.46% to 9,111.97; property dropped by 25.13 points or 0.86% to 2,896.36; services went down by 8.83 points or 0.54% to 1,609.46; industrials retreated by 34.67 points or 0.38% to 8,885.31; and holding firms declined by 23.84 points or 0.37% to 6,305.23.

Meanwhile, financials rose by 5.44 points or 0.28% to 1,891.19.

“Among the index members, Century Pacific Food, Inc. was at the top, climbing 3.49% to P34.10. Nickel Asia Corp. lost the most, dropping 2.89% to P4.70,” Mr. Plopenio said.

Value turnover decreased to P4.15 billion on Thursday with 280.66 million issues switching hands from the P6.76 billion with 423.55 million shares traded the previous day.

Decliners outnumbered advancers, 118 to 46, while 55 names closed unchanged.

Net foreign buying climbed to P460.42 million on Thursday from P256.1 million on Wednesday. — R.M.D. Ochave with Reuters

Rogen Ladon and Aira Villegas advance to Boxam Elite semis

FILIPINO Olympian pug Rogen Ladon

FILIPINO Olympian pug Rogen Ladon and Aira Villegas pulled off contrasting results to assure themselves of a bronze medal in the Boxam Elite in La Nucia, Spain Tuesday.

Mr. Ladon, a 2016 Rio de Janerio Games veteran and World Championship bronze winner, did just enough to edge Nick Richards of Wales, 3-2, while Ms. Villegas routed Ireland’s Caitlin Fryers, 5-0, to barge into the semis.

There, Mr. Ladon squares off with Mexican Ari Bonilla, a 4-1 winner over Hungarian Attila Bernath, while Ms. Villegas battles England’s Kelsey Oakley, who routed Hungary’s Petra Mezei with an identical 5-0 result.

Mr. Ladon is on the comeback trail after failing to make the cut for what could have been his second Olympic stint in the 2021 Tokyo Games where the Filipino boxers scooped up two silvers from Carlo Paalam and Nesthy Petecio and a bronze from Eumir Marcial.

The wins by Mr. Ladon and Ms. Villegas cushioned the impact of the losses suffered by countrymen Riza Pasuit (women’s 60kg), Mark Ashley Fajardo (men’s 43lg) and Ronald Chavez, Jr. (-71kg).

Ms. Pasuit succumbed to Kazakhstan’s Aidana Zabynbekova, 4-1; Ms, Fajardo sputtered against England’s Cameron McKay, 3-2; and Mr. Chavez fell to Uzbekistan’s Asadullaev Khavasbek, 5-0.

Filipinos left standing were Mr. Paalam, Ms. Petecio and Hergie Bacdayan, a former wushu fighter and 2022 world champion in vovinam.

They are all eyeing spots to this July’s Paris Olympics and join already qualified Marcial. — Joel Villar

Eala outlasts Yashina and moves to W50 Indore quarterfinals

FACEBOOK.COM/ALEX EALA

ALEX EALA zoomed to another playoff run, carving out a 7-6(1), 6(4)-7, 6-0 win against Russian Ekaterina Yashina to move on to the W50 Indore quarterfinals in India.

Ms. Eala, now the WTA No. 184 for her new career-best ranking, needed everything she could handle in the first two sets before flashing her brilliance in the perfect third-set performance for the gritty win in two hours and 39 minutes.

The 18-year-old Filipina tennis sensation flipped a 5-6 deficit in the first set and emerged victorious in the tiebreaker before absorbing the same fate in the second after wasting a 5-4 cushion.

But there was no stopping Ms. Eala, seeded No. 3, in the clincher by unloading crisp serves behind five aces and breaking Ekaterina’s own attempts for the win.

It’s the second straight quarterfinal stint for Ms. Eala in as many singles outings in India after also a Top-8 finish in W50 Pune last week.

In the same tournament, Ms. Eala captured her first doubles championship in the women’s professional circuit with partner Darja Semenistaja from Latvia.

Ms. Semenistaja, the No. 1 seed, however exited early in W50 Indore with a stunning 6-3, 6-4 defeat against Japan’s Saki Imamura in the second round.

Up next for Ms. Eala is the winner between No. 6 seed Anca Alexia Todoni and Japan’s Rina Saigo for a seat in the Final Four of the elite $50,000 tourney. — John Bryan Ulanday

IM Quizon seen to top ‘Bolok’ Memorial Open chess tourney

DANIEL QUIZON — PHILSTAR FILE PHOTO

OLYMPIAD-bound teenage International Master (IM) Daniel Quizon eyes a third title this year as he wades into battle in the Antonio “Bolok” Santos Memorial Open chess tournament set Feb. 10 in Brgy. Dela Peña, Marikina City.

The 19-year-old Mr. Quizon would come in riding the crest of his sterling triumph in the Philippine National Championships also in Marikina City last month that earned him a spot to the team seeing action in this September’s FIDE World Chess Olympiad in Budapest, Hungary.

He followed it up with triumph in the Predator a week later in Pasig City that put him as the early favorite to win the seven-round event that is staking P10,000 to the eventual winner.

Other notable titled players joining are Grandmaster (GM) Darwin Laylo, IMs Chito Garma, Barlo Nadera, Ronald Dableo, Rolando Nolte, Ronald Bancod, Hamed Nouri, Angelo Young, Jose Efren Bagamasbad, Cris Ramayrat and Ricky de Guzman, FIDE Masters Roel Abelgas, Christian Gian Karlo Arca, Noel dela Cruz, Alekhine Nouri, Adrian Pacis and Ed Garma, and WGM candidate Kylen Joy Mordido.

The event is part of Mr. Quizon’s preparation for the Olympiad as well as in his search for the GM title. — Joey Villar

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