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PHL growth likely second strongest among 6 major ASEAN economies

PHILIPPINE STAR/MICHAEL VARCAS

THE PHILIPPINES is expected to be the second fastest-growing economy of the six major Southeast Asian Nations countries in the next ten years due to robust infrastructure and its increasing workforce, Bain and Co., Monk’s Hill Ventures’ Angsana Council, and DBS Bank said.

In a report, they said Philippine gross domestic product (GDP) growth will likely average  6.1% yearly until 2034, upgrading the three firms’ earlier projection of 4-5% growth over the next 10 years.

“Since 2022, our projections have improved for the Philippines and Malaysia, thanks to significant efforts by the current administrations to become more ‘pro-investment’ and ‘pro-business,’” they said.

If the forecasts are borne out, the Philippines will trail only Vietnam (6.6%) while beating out Indonesia (5.7%), Malaysia (4.5%), Thailand (2.8%), and Singapore (2.5%). The Philippines would also outpace the six-country average of 5.1%.

“Indonesia and the Philippines, which start from a lower base, are moving in a positive direction, especially in economic innovation,” it said.

Main drivers of the Philippine economy include a “pro-growth administration” and priority investments in infrastructure, especially renewables, which are gaining interest among foreign investors.

“The Philippines and Vietnam have substantial offshore wind potential, and the region has vast untapped solar and hydropower availability. With improved grid infrastructure, government support, and financial incentives, Southeast Asia could deliver climate, economic, and energy security benefits regionally and abroad,” according to the report.

The Philippines, having one of the youngest workforces in the region, will also have demographics on its side, the report said.

“The Philippines leads with the strongest working population increase, whereas Singapore and Thailand are experiencing declines caused by low birth rates and ageing populations.”

Emigration from the Philippines and Indonesia has also slowed due to better job markets, it also said.

On the other hand, education, infrastructure, government effectiveness, and geopolitical tensions with China pose risks to Philippine growth.

“SEA-6 has shown generally positive trends for education spending with Indonesia, Vietnam, and the Philippines witnessing a sizeable increase in per capita spending on education; however, they still lag significantly behind their regional counterparts,” they said. — Beatriz Marie D. Cruz

China says Philippine-US tag team to worsen South China Sea tension

A SCREENGRAB from Philippine Coast Guard shows a Philippine vessel being water cannoned by the China Coast Guard on April 30, 2024. — PHILIPPINE COAST GUARD PHOTO

By John Victor D. Ordoñez, Reporter

A PHILIPPINES-US tag team against China would worsen tensions in the South China Sea, according to the Chinese Foreign Ministry, after Washington committed to give Manila $500 million (P29.3 billion) in military aid.

“The Philippines needs to see that ganging up with countries outside the region to engage in confrontation in the South China Sea will only destabilize the region ad create more tensions,” Foreign Ministry spokesman Lin Jian told a news briefing in Beijing on Wednesday evening.

He said Manila should focus on engaging in dialogue and consultation instead of allowing the United States to “interfere in the maritime issue.”

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

US Secretary of State Antony Blinken and US Defense Secretary Lloyd Austin III announced the new military funding on Tuesday in Manila after their 2 + 2 ministerial dialogue with Philippine Foreign Affairs Secretary Enrique A. Manalo and Defense Secretary Gilberto Eduardo C. Teodoro, Jr.

“To seek security assurance from external forces will only lead to greater insecurity and turn oneself into someone else’s chess piece,” the Chinese spokesman said.

He added that allowing the deployment of US missiles in the Philippines would fuel tensions and incite a regional arms race.

The US brought a mid-range missile system for the annual Balikatan or shoulder-to-shoulder military exercises with the Philippines earlier this year.

Philippine Senate President Francis G. Escudero on Wednesday said Washington’s military funding won’t provoke or agitate China, saying it is every country’s right to strengthen its military to keep the peace.

US President Joseph R. Biden, who signed the National Security Supplemental bill into law in April, had said it would help American allies “defend themselves against threats to their sovereignty and to the lives and freedom of their citizens.”

In April, Republican Senator Bill Hagerty and Democrat Senator Tim Kaine pushed a bill that increased US military aid for the Philippines to $500 million from $40 million over five fiscal years through 2029.

The Philippines, one of the weakest in the world in terms of military capability, is important to Washington’s efforts to push back against China, which claims the South China Sea almost in its entirety.

Manila and Beijing on July 2 reached a “provisional arrangement” for Philippine resupply missions to Second Thomas Shoal, which the Philippines calls Ayungin.

They resumed talks to ease tensions in the waterway after accusing each other of raising tensions in disputed shoals and reefs in the South China Sea.

Beijing has urged its neighbor not to “backpedal” or do anything that would complicate the situation in the waterway.

Philippine President Ferdinand R. Marcos, Jr. said in his third address before Congress that his government would continue to find ways to de-escalate tensions in contested areas in the waterway “without compromising our position and our principles.”

China claims more than 80% of the South China Sea, overlapping with the exclusive economic zones of Vietnam, Malaysia, Brunei, Indonesia and the Philippines.

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

About $3 trillion worth of trade passes through the South China Sea annually, and it is believed to be rich in oil and natural gas deposits, apart from fish stocks.

Study on Manila Bay reclamation to be done by September

PHILIPPINE STAR/MIGUEL DE GUZMAN

THE DEPARTMENT of Environment and Natural Resources (DENR) on Thursday said it seeks to wrap up its study on the environmental impacts of reclamation projects at the Manila Bay by September, after senators blamed these for heavy flooding.

“We believe by September we will be able to complete even the three-dimensional visualization of these impacts of reclamation,” Environment Secretary Maria Antonina Yulo-Loyzaga told a Senate public works committee hearing.

In August last year, Philippine President Ferdinand R. Marcos, Jr. suspended all reclamation projects at the bay, except for one, ordering the DENR to review their environmental effects.

Senators Juan Miguel F. Zubiri and Emmanuel Joel J. Villanueva earlier blamed the reclamation at Manila Bay for heavy flooding, especially in Manila, Pasay City and Bulacan province.

“In general, reclamation projects will slow down the flow of water and will change the circulation and retention of pollutants and organic materials that are already in the bay,” Ms. Yulo-Loyzaga said.

Public Works Secretary Manuel M. Bonoan on Tuesday told a news briefing that more than 5,000 flood control projects would be implemented across the country this year, after dozens died in floods caused by Super Typhoon Carina and the southwest monsoon rains last month.

At the hearing, the Public Works chief said flood control projects in Bulacan and Pampanga that were supposed to be ready this year were still in preparatory stages.

“The process of doing the detail and design for this type of mega-project takes time because we have to go on the ground,” he said.

Senator Ramon B. Revilla, Jr., the committee chairman, told the hearing that the government has spent about P1 trillion on flood control projects in the past decade.

Senator Maria Lourdes Nancy S. Binay told the committee that flood control projects over the years had “failed to produce the necessary improvements to safeguard communities.”

“It is deeply concerning that despite the significant funds allocated to the DPWH and the Metro Manila Development Authority, our flood management systems remain inadequate,” she said.

The Marikina River reached as high as 20 meters. Its water level rose to 21.5 meters during the 2009 devastation of Typhoon Ondoy, which killed more than 700 people, and to 22 meters during 2020’s Typhoon Ulysses, which killed about 100 people.

Speaker Ferdinand Martin G. Romualdez has said the House of Representatives would look into the government’s flood management budget to determine if it had been spent wisely.

The Philippines’ disaster agency on Tuesday said the death toll from the combined effects of Super Typhoon Carina (Gaemi) and the southwest monsoon had hit 39 and that the number of affected people had risen to 4.8 million. — John Victor D. Ordoñez

Immigration bureau warns vs rising use of fake passports

NINOY AQUINO INTERNATIONAL AIRPORT (NAIA) Terminal 3 — PHILIPPINE STAR/MIGUEL DE GUZMAN

THE BUREAU of Immigration on Thursday sounded the alarm about a rise in the use of fake foreign passports, citing threats from child trafficking.

The agency recently intercepted two Vietnamese girls at the Ninoy Aquino International (NAIA) Terminal 1 who presented illegally obtained German passports.

In a statement, Immigration Commissioner Norman G. Tansingco said this might be a case of child trafficking.

The two girls, aged 15 and 17, arrived in the Philippines from Saigon. They presented stolen German passports, whose owners had similar facial features.

Mr. Tansingco said the photos of the two girls matched only 4% and 9% of the photos on the German passports.

The girls, who showed their Vietnamese passports, admitted that the German passports were stolen and were given to them by fixers.

The German passports were surrendered to the German Embassy.

“They were look-alikes, but were detected as both German passports, which prompted a hit in the Bureau of Immigration’s Interpol derogatory check system, indicating that their travel documents were reported as lost or stolen,” Mr. Tansingco said.

They were denied entry to the Philippines and blacklisted.

Another Vietnamese minor was intercepted at the same terminal on July 23 before boarding a Korean Airlines flight bound for Incheon, en route to Toronto for his final destination.

The 17-year-old boy also presented a fake German passport.

During the interview, he admitted his real identity and showed authorities his Vietnamese passport.

He also confessed that he used the German passport to illegally enter Canada.

“It was surprising to hear how easy it was for him to acquire the passport online,” Mr. Tansingco said. “This seems to be another scheme illegal migrants use to be able to secure work abroad.”

Meanwhile, the Immigration bureau said it needs about P1.3 billion next year to upgrade its outdated security systems at Philippine airports so it could block members of criminal syndicates and other fugitives from justice.

“We need an upgrade because our matching system has a limited capacity,” Immigration bureau Management Information Systems Division chief Jolly Bert G. Galeon told a Senate committee on public services hearing.

“If people change their names even by one letter, it has trouble matching (their identity) in our database,” he added.

He said only electronic gates at airports could crossmatch identities accurately, but Immigration booths still lack updated technologies.

In June, the bureau nabbed two Chinese fugitives wanted for extortion at the Ninoy Aquino International Airport.

In January, the agency said 3,359 foreigners including wanted fugitives and sex offenders were barred from entering the country last year.

“If we need to upgrade or change the system, let’s do it even if it would cost billions to do so,” Senator Rafael “Raffy” T. Tulfo told the hearing in Filipino. “Because when it comes to national security, there should be no compromise.” — Chloe Mari A. Hufana and John Victor D. Ordoñez

Nutribun makes comeback

WIKIMEDIA COMMONS/SAMHOLT6

BAGUIO CITY — The late President Ferdinand Marcos, Sr.’s iconic bread project Nutribun was relaunched in his home province, led by his grandson Matthew Manotoc who is the governor of Ilocos Norte.

The province relaunched the Nutribun and pasteurized milk feeding project at the Ilocos Norte Centennial Arena in Laoag City on Wednesday in celebration of the 50th Nutrition Month.

The program seeks to combat malnutrition and promote healthy eating habits among children and families in the province by distributing Nutribuns, pasteurized carabao milk, multivitamins and hygiene kits to underweight children.

The Nutribun feeding program was first revived by Mr. Manotoc in 2021. The Ilocos Norte provincial government’s version of the Nutribun comes in various flavors such as squash, mung bean, ube, choco and yema, all produced by Bakers PH, a homegrown bakery chain.

The Nutribun is paired with pasteurized carabao choco-milk flavored drinks from the Philippine Carabao Center-Ilocos Norte. — Artemio A. Dumlao

Unprogrammed funds questioned

IIIJAOYINGIII-PIXABAY

SEVERAL minority congressmen on Thursday asked the House of Representatives leadership to halt the practice of including unprogrammed funds in the annual budgets submitted by the Executive, which they said could lead to corruption.

They also raised concerns about the potential inclusion of a provision in the 2025 General Appropriations bill allowing the National Government to do a cash sweep on unused and excess funds of government-owned and -controlled corporations (GOCC) to fund unprogrammed projects.

“[We should] stop the inclusion of unprogrammed appropriations because it bastardizes the budget process and weakens the power of the legislative branch to scrutinize the proposed budget from the executive branch,” Party-list Rep. Raoul Danniel A. Manuel told reporters in Filipino.

The Executive has allotted P158.6 billion for unprogrammed appropriations under the proposed P6.352- trillion national budget for next year, according to the 2025 National Expenditure Program. — Kenneth Christiane L. Basilio

Heart disease main cause of death

MANIACVECTOR-FREEPIK

ISCHEMIC heart disease, tumor growth and cerebrovascular diseases including stroke remained the three leading causes of death in the Philippines last year, according to the local statistics agency.

In a report, it said deaths due to ischemic heart disease — heart weakening caused by reduced blood flow to the heart — reached 122,027, 18.8% of 647,893 deaths listed last year.

Neoplasms or tumors were the second-highest cause of death with 69,449 or 10.7% of the total, followed by cerebrovascular diseases with 65,224 or 10.1%.   

Completing the top five causes of deaths were diabetes mellitus at 41,056 or 6.3% and pneumonia at 40,082 or 6.2%.

In a separate report, the Philippine Statistics Authority (PSA) said the country’s birth, death, and marriage rates declined by 7.6%, 4.7% and 13.3%, respectively from 2022.

Philippine births in 2023 fell to 1.3 million from 1.5 million, while deaths went down to 647,893 from 679,766. Marriages fell to 389,673 from 449,428. — Abigail Marie P. Yraola

Probe of Miru contract sought

A CONGRESSMAN has filed a resolution seeking to investigate the contract between the Commission on Elections and a South Korean technology provider Miru Systems Co, Ltd. to supply election equipment for the 2025 midterm elections.

Party-list Rep. Rodante D. Marcoleta, who sought the probe, accused the parties of collusion.

“I welcome any probe on the matter,” Comelec Chairman George Erwin M. Garcia told BusinessWorld in a Viber message. Miru Systems Co., Ltd. did not immediately reply to an e-mail seeking comment.

The congressman alleged that 49 offshore bank accounts registered in China, the US, Hong Kong, Singapore and the Cayman Islands owned by a top election official received P120 million from Miru officials.

“I issued a sworn affidavit of denial and sworn waivers of all the accounts and properties mentioned,” Mr. Garcia said. “I even authorized the National Bureau of Investigation and Anti-Money Laundering Council to investigate the truthfulness of the allegations.”

He said he only has two visas and has never been to the countries named by Mr. Marcoleta “and I have no intention to go there.” — Kenneth Christiane L. Basilio

SC rules on co-op franchises

BW FILE PHOTO

THE SUPREME COURT (SC) on Thursday said electric cooperatives (co-op) have no constitutional right to an exclusive franchise within their coverage areas.

The full court in a July 30 decision junked the petition of the Iloilo Electric Cooperative, Inc. I, II and III (ILECO) that questioned the validity of Republic Act No. 11918.

The law expanded the franchise of another energy provider, MORE Electric and Power Cooperation to areas within ILECO’s franchise to promote competition.

The 1987 Constitution bars exclusive franchises, according to the decision written by Justice Rodil V. Zalameda.

It added that since a franchise is a privilege granted by the state and is not the exclusive property of the franchisee, it should always serve the common good.

The top court had yet to upload a copy of the ruling on its website. — Chloe Mari A. Hufana

Japan backs voter awareness

REUTERS

THE JAPANESE government will provide about ¥234 million (P91 million) for a program that seeks to raise voter awareness in the Bangsamoro Autonomous Region in Muslim Mindanao.

The partnership with the United Nations Development Program (UNDP) and Commission on Elections (Comelec) aims to improve voter education and promote election digitalization.

“The Philippines is very much a significant country for Japan,” Japanese Ambassador to the Philippines Endo Kazuya told reporters after the signing of the deal. “The Mindanao peace process shows that issues can be solved through consultations and dialogues.”

The partnership aims to enhance democratic participation and inclusion by improving voter education.

It also seeks to use data analytics to help Comelec deal with the needs of localities and vulnerable populations.

The project will run for 18 months from Aug. 1. — Chloe Mari A. Hufana

Manila affirms stance vs nukes

MACROVECTOR-FREEPIK

PHILIPPINE Permanent Representative to the United Nations Ambassador Carlos D. Sorreta on Wednesday reaffirmed to foreign diplomats in Geneva Manila’s stance against the use of nuclear weapons.

“Ambassador Sorreta stated that the catastrophic humanitarian consequences of nuclear weapons should be at the forefront of the efforts towards nuclear disarmament,” the Philippine Embassy in Geneva said in a statement.

He issued the remarks on the sidelines of the Second Preparatory Committee for the 2026 Review Conference of the Treaty on the Nonproliferation of Nuclear Weapons. — John Victor D. Ordoñez

Akbayan members eye Senate

AKBAYAN Party on Thursday said it would field senatorial candidates for the 2025 midterm elections, citing the need to boost opposition in the Senate.

The party will ensure that its chairman emeritus, Senator Ana Theresia “Risa” Hontiveros-Baraquel, will have allies in the Senate as part of the democratic opposition, Akbayan President Rafaela David said at a party meeting.

Ms. Hontiveros-Baraquel failed in her first two senatorial bids that started in 2010. She won a Senate seat in the 2016 and is now the highest elected official among opposition forces.

Ms. David said Akbayan thinks former Senator Paolo Benigno “Bam” A. Aquino IV, Senator Francis “Kiko” N. Pangilinan and Jose Manuel I. Diokno could all “add to the voice of the democratic opposition” in the Senate.

Liberal Party spokesperson Leila M. de Lima earlier said Mr. Aquino, Mr. Pangilinan and Mr. Diokno would run for senator next year. — Kyle Aristophere T. Atienza