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Stocks up on easing oil prices, window dressing

BW FILE PHOTO

LOCAL SHARES closed higher on Tuesday as investor sentiment was buoyed by easing global oil prices and window dressing before the end of the month.

The benchmark Philippine Stock Exchange index rose by 40.07 points or 0.63% to end at 6,309.57, while the broader all shares climbed by 10.48 points or 0.31% to close at 3,358.70.

“Philippine shares continued their upward momentum, making a challenge towards the 6,400 level, as investors gear up for the last month and prepare for some window dressing before November closes,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message. 

The local bourse ended in positive territory amid easing global oil prices, Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.

“The local bourse gained by 40.07 points to 6,309.57 thanks to the easing of oil prices amid the temporary truce between Israel and Hamas, coupled with the potential cut in oil supply by OPEC+ (Organization of the Petroleum Exporting Countries and its allies),” Ms. Alviar said.   

“Easing oil prices could support the growth of the Philippines, especially in the last quarter of the year,” she added.

OPEC+, which includes OPEC countries and other countries such as Russia, is scheduled to have an online ministerial meeting on Thursday to discuss production targets for next year.

On Tuesday, US crude eased 0.13% to $74.76 per barrel and Brent was back below $80, with oil prices swaying between gains and losses ahead of OPEC+ meeting later this week, Reuters reported.

At home, as of Tuesday, year-to-date price adjustments stood at P12.30 per liter for gasoline, P6.00 per liter for diesel, and P1.74 per liter for kerosene.

The majority of the sectoral indices closed higher on Tuesday. Property increased by 90.30 points or 3.35% to 2,780.18; holding firms went up by 31.34 points or 0.52% to 6,007.62; mining and oil climbed by 20.67 points or 0.21% to 9,680.97; and financials rose by 0.53 point or 0.03% to 1,746.25. 

Meanwhile, industrials declined by 118.13 points or 1.32% to 8,808.19, and services inched down by 0.21 point or 0.01% to 1,521.08. 

“The property sector surged the most, advancing by 3.36%, largely influenced by the 4.46% gain of SM Prime Holdings, Inc. and the 3.68% increase of Ayala Land, Inc., positioning them at the top among the index members. Meanwhile, Universal Robina Corp. was at the bottom, losing by 3.39%,” Ms. Alviar said.

Value turnover rose to P5.34 billion on Tuesday with 382.74 million issues changing hands from the P2.68 billion with 445.73 million issues recorded on Friday.

Decliners beat advancers, 106 to 79, while 39 names ended unchanged. 

Net foreign buying reached P670.36 million on Tuesday versus the P123.04 million in selling seen on Friday.

Philippine financial markets were closed on Monday due to a public holiday for Bonifacio Day. — R.M.D. Ochave with Reuters

‘Not right time’ to increase port storage fees — AmCham

PHILIPPINE STAR/EDD GUMBAN

THE American Chamber of Commerce of the Philippines (AmCham) said it does not support increasing port storage fees as the economy continues to recover from the pandemic.

“We have been lobbying against any kind of storage (fee) increases; it is not just the right time,” said Ebb Hinchliffe, AmCham’s executive director, on the sidelines of the Management Association of the Philippines Annual General Membership Meeting on Tuesday.

“You know, we are just coming out of the mess of the pandemic … I think (the government has) got better things to worry about,” Mr. Hinchliffe said.

Last month, the Philippine Ports Authority (PPA) proposed an increase in storage rates in an online public consultation on Oct. 18, according to the Philippine Exporters Confederation, Inc. (Philexport).

In its proposal, the PPA said that it is planning to increase the storage charges by 32% for import, export, and transshipment containers and to add a 150% surcharge on the corresponding storage rates with increase for refrigerated containers.

Philexport, citing the PPA, said the increase in storage charges will ensure optimal use of the yards and encourage immediate withdrawal of containers to prevent congestion.

In its position letter submitted to the agency on Nov. 6, Philexport recommended that the proposal go through a regulatory impact assessment as a standard operating procedure under the Ease of Doing Business law.

Philexport said that the increase is too onerous if the PPA imposes fees on overstaying containers for reasons beyond the shipper’s control, such as during the arming and disarming of E-TRACC devices on containers and downtime periods in the PPA’s IT.

Asked to comment, the PPA had not replied at the deadline.

Meanwhile, Mr. Hinchliffe said that the chamber is currently in the process of joining other business groups in preparing a position paper.

“I think the Joint Foreign Chambers will be sending out a statement,” he said.

Earlier this month, the European Chamber of Commerce of the Philippines also opposed the increase in storage charges, noting that it will make the Philippines less competitive. — Justine Irish D. Tabile

Japanese chamber bats for pre-CREATE investors’ VAT perks to be grandfathered in

THE original value-added tax (VAT) waiver for Philippine Economic Zone Authority locators, which was in force before the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law, needs to be restored, the Japanese Chamber of Commerce and Industry of the Philippines, Inc. (JCCIPI) said on Tuesday.

At a Senate Ways and Means Committee hearing on Tuesday, Shigeru Shimoda, president of the JCCIPI, said the chamber is asking senators to reconsider the imposition of a sunset period for the 5% tax on gross income earned granted to the projects and activities registered prior to the enactment of the CREATE law.

“Attractive incentives should be offered to invite investments in manufacturing to keep up with competitors from neighboring countries,” he said.

“In order to restore confidence in the investment environment in the Philippines, it is essential (for Congress) to reinstate the original PEZA incentives for the companies that had invested in the Philippines before the enactment of the CREATE Law.”

The Finance and Trade and Industry departments recently approved the amendment of Rule 18 Section 5 of the CREATE implementing rules and regulations, allowing transitory domestic market enterprises availing of the 5% gross income tax scheme to register as VAT taxpayers.

Senate President Juan Miguel F. Zubiri has said Japanese companies have threatened to leave the Philippines after encountering value-added tax refund issues after the CREATE Law came into force.

Last week, the House Ways and Means Committee approved the CREATE MORE (CREATE to Maximize Opportunities for Reinvigorating the Economy) bill, which aims to introduce a “simplified and streamlined” refund system.

The measure also seeks to give the President the power to modify, draft and grant incentive packages, without the recommendation of the Fiscal Incentives Review Board.

The House bill has yet to be debated in the plenary before the House gives its final approval, which is needed before the measure can be transmitted to the Senate.

“Incentives are one of the deciding factors for Japanese companies or foreign companies in expanding overseas,” Mr. Shimoda said. “I respectfully say that the Philippines should not miss this opportunity to invite a number of foreign investments.” — John Victor D. Ordoñez

Maharlika must address governance, ‘crowding-out’ concerns — AMRO

THE Maharlika Investment Fund (MIF) has the potential to succeed if properly managed, but must address governance issues and the possible threat to fiscal stability, the ASEAN+3 Macroeconomic Research Office (AMRO) said. 

“With a strong legal framework, the MIF has the potential to be a successfully managed national investment fund,” AMRO said in its latest Annual Consultation Report.

“However, the MIF’s success would also depend on the actual implementation of the law and whether the fund is operated with a robust risk management framework, taking cognizance of the potential risks and governance concerns addressed earlier,” it added.

The revised implementing rules and regulations (IRR) of the law creating the MIF was released earlier this month after being suspended by President Ferdinand R. Marcos, Jr. in October to improve its organization structure.

Shortly after, Mr. Marcos announced the appointment of Rafael D. Consing, Jr. as chief executive officer (CEO) and president of the Maharlika Investment Corp. (MIC), which is tasked to manage the fund.

AMRO said that the MIF is more of a national investment fund as it will invest “mainly within the country to support national development strategies.” 

It said this is in contrast to sovereign wealth funds, which are “state-owned investment funds comprising money generated by the country.” It also noted that sovereign wealth funds typically invest overseas using funds from surplus revenue from oil, natural resources, or fiscal surpluses.

Mr. Consing in a recent briefing said that the MIF is a “sovereign national development fund.”

“There’s a very big difference between a sovereign development fund and a sovereign wealth fund. A sovereign wealth fund typically presupposes the investment of excess financial assets, of which this fund is not, but rather a sovereign national development fund is one wherein it is being invested in the country particularly in terms of developing the needs of the country,” he said.

AMRO said that the fund is expected to enhance investment capital to boost economic growth and job creation, promote infrastructure development, and attract foreign investment.

On the other hand, AMRO also noted the potential risks with the operations of the fund.

“While the new MIF Act has laid down a strong legal framework, at the operational level, the authorities should clearly define its role in infrastructure investment with appropriate governance stipulated to avoid misuse of funds. The MIF should be run by professionals and the board should comprise independent directors,” it said.

“There could be a risk in terms of governance, especially if the fund’s role in infrastructure investment is not clearly defined, which could lead to misuse of funds and lack of accountability,” it added.

It recommended that the fund should have clear guidelines on what assets it can invest in, including “rigorous due diligence and risk assessment” especially for investments in infrastructure projects.

“Given the MIF has to ensure long-term value and promote socio-economic development, there could be a risk that the different goals might be at odds with each other in some investments, for instance, there could be a trade-off between the rate of return and the public good nature of certain projects,” it said.

Mr. Consing earlier said that the fund will focus its investments on key areas such as tourism infrastructure, agro-urbanism, energy security, and digital infrastructure.

AMRO also said government agencies’ contributions to the fund could “crowd out planned expenditure in other areas.”

“Although the contributions to the MIF’s capital from government financial institutions (GFIs) are relatively small compared with the size of their investible funds, there could be some impact on the institutions’ financial position in the event of losses,” it added.

Under the law, the Land Bank of the Philippines (LANDBANK) and the Development Bank of the Philippines (DBP) are required to contribute P50 billion and P25 billion, respectively, for initial funding of the MIC. The MIC has an authorized capital stock of P500 billion.

Earlier concerns were raised by analysts that the state banks’ contributions could impact their financial stability.

In a Palace briefing on Tuesday, Finance Secretary Benjamin E. Diokno said that he is “confident” that the fund will be operational by the end of the year.

He also confirmed that the remaining vacant positions in the MIC board have yet to be filled.

“I understand the advisory body has submitted the list, but I don’t think there has been an appointment… I have not been informed of any appointment,” Mr. Diokno said.

These include the two regular directors and three independent directors.

Apart from these positions, the MIC board is also composed of the Secretary of Finance as ex-officio chair, the MIC president and CEO as the vice chair, the LANDBANK president and CEO, and the DBP president and CEO. — Luisa Maria Jacinta C. Jocson

Agri-marine estates proposed to ensure adequate food stocks

PHILSTAR FILE PHOTO

THE Department of Agriculture (DA) said on Tuesday that it plans to build a network of agro-industrial and marine estates to ensure the adequacy of food supplies.

In a statement, Agriculture Secretary Francisco T. Laurel, Jr. said he is planning to amend the charter of the Philippine Fisheries Development Authority (PFDA) to make it responsible for developing and managing the facilities.

Mr. Laurel added that tweaking the PFDA’s functions aligns with the goals of the Philippine Rural Development Program and the current administration’s plan to modernize agriculture.

The estates will serve as “one-stop shops” with ports, cold-storage facilities, silos, and warehouses.

“I’ve seen this model successfully implemented in South Korea and Japan. I hope the World Bank can help us realize this vision,” Mr. Laurel said.

According to the DA, the World Bank has indicated that funding sources are available in the form of grants from the Global Environment Facility and the European Union, which support marine protected areas.

He added that agri-fisheries logistics needed to be improved, and called for a “logistics masterplan” for the industry.

“That is one thing I think is lacking in the DA,” he added.

Mr. Laurel said he would designate an assistant secretary to take charge of logistics.

“We need to scale up and get our priorities straight,” he said. “I have technically three-and-a-half years to accomplish these things. The DA, under my watch, will do its best to speed things up.”

Additionally, Mr. Laurel said he was seeking possible adjustments to the DA budget for 2024 to better align with the administration’s farm production goals and to raise incomes of farmers and fishermen.

The DA had earlier proposed a budget of more than P167.5 billion for 2024.

“The government estimates that around 10 million farmers and fishermen live below the poverty line despite agriculture providing jobs for one in every four Filipino workers,” it added. — Adrian H. Halili

International visitor arrivals breach 4.8 million DoT target

REUTERS

THE PHILIPPINES welcomed over 4.8 million international visitors as of late November, surpassing the target set by the Department of Tourism (DoT) for 2023.

“As of Nov. 27, the country has registered a total of 4.82 million visitors who visited the country,” the department said in a statement on Tuesday.

South Korea remained the top source of foreign arrivals, accounting for 1.27 million tourists or 26.37% of the total.

Rounding up the top five were the US with 797,181 (16.53%), Japan 272,735 (5.66%), China 242,107 (5.02%), and Australia 225,464 (4.68%).

Tourism Secretary Maria Esperanza Christina G. Frasco said in a statement that the visitors spent P404 billion, “underscoring the value of tourism to our economy.”

She said that tourism continues to drive growth and provide incomes and jobs following the implementation of the National Tourism Development Plan 2023 to 2028.

“We are beginning to see the merits of our strategies towards increasing connectivity, convenience, and equality in tourism development and promotions, as well as the invaluable partnership of our tourism stakeholders in the private sector,” she added.

Tourism employs 5.35 million, the department said.

The DoT said it will be positioning the country as a global hub for sports tourism, including golf, through the Philippine Golf Tourism Summit this week. “It’s about time that the government and the private sector come together to converge and to collaborate,” she said.

The Philippines has over 100 golf courses.

“Golf tourism represents a promising frontier for the Philippines and this summit highlights our proactive approach in understanding, nurturing, listening to the golf tourism industry and developing this niche as part of our tourism industry portfolio,” Ms. Frasco said. — Justine Irish D. Tabile

RE contract awards hit 1,300 as of end-Oct.

WORLDBANK.ORG

THE Department of Energy (DoE) said it has awarded 1,300 renewable energy (RE) contracts with a total potential capacity of 130,880.8 megawatts (MW) as of the end of October.

“As of now, we have issued around 1,300 (contracts) with a total potential capacity of 130 gigawatts (GW). So, you can see wind has a lot of projects,” Energy Assistant Secretary Mylene C. Capongcol said at a forum in Makati City on Tuesday.

The forum was organized by the Institute for Climate and Sustainable Cities (ICSC), The Climate Reality Project, and the Institute of Corporate Directors.

Of the total, 225 wind energy contracts have been awarded with combined capacity of 83,079.3 MW. This was followed by 356 solar energy projects with capacity of 27,889 MW and 430 hydropower projects with capacity of 18,924.4 MW.

Geothermal energy had 37 contracts with potential capacity of 779.2 MW while biomass had 58 contracts with capacity of 174.9 MW. Nine ocean energy contracts have been awarded with capacity of 34 MW.

Noting the government’s target of 35% renewables in the power mix, “We will be needing around 52 gigawatts of new additional renewable energy capacity. This is how (much) we need investors to really invest in renewable energy projects,” Ms. Capongcol said.

“The offshore wind, actually, is an emerging RE technology that really challenges the Department of Energy because there’s no model as far as price discovery mechanism for pricing those properly,” she said.

To date, the DoE has awarded 80 offshore wind service contracts this year with a potential capacity of 62 GW.

“Based on the global energy transition, the Philippines is willing to contribute in the areas of offshore wind development — upscaling capacity building for our renewable energy workers,” Ms. Capongcol said.

She said the DoE has been working on “major RE challenges” such as permitting requirements, grid integration, and limited access to financing.

“Among the existing mechanisms, the Green Energy Option Program empowers consumers and corporate leaders with the choice of RE. To integrate sustainability in our private, government spaces… enables us to share the co-benefits of climate action,” ICSC Executive Director Angelo Kairos T. Dela Cruz said.

Last year, the Energy department said that on-grid power suppliers must expand the share of RE in their output to 2.5% starting in 2023 from 1% previously.

RE accounted for about 22% of the Philippines’ energy mix, with coal-fired power plants providing nearly 60% as of the end of 2022. — Sheldeen Joy Talavera

WTO expects stronger global trade in 4th quarter

WORLD TRADE ORGANIZATION

THE World Trade Organization (WTO) said global merchandise trade will likely post strong growth in the fourth quarter, allowing it to maintain its global trade growth forecast of 0.8% in 2023 despite the impact of geopolitical disruptions.

In its Goods Trade Barometer, WTO said world merchandise trade volume was little changed in the second quarter.

The barometer is a composite leading indicator for world trade, providing an early indication of the trajectory of merchandise trade relative to recent trends, said the WTO.

The current value of the global trade barometer index is at 100.7 in September, which is above the latest reading for quarterly trade volume and close to the baseline value of 100.

“This suggests that merchandise trade volume will gradually revert towards its medium-term trend in the second half of 2023, although uncertainty remains high due to mixed economic data and rising geopolitical tensions,” WTO said.

However, it said that it expects trade statistics for the third and fourth quarters to come in stronger despite the geopolitical tensions.

“Trade statistics for the third quarter should come in slightly stronger thanks to faster gross domestic product growth in the US and China, even as the European Union economy continued to stagnate,” WTO said.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that this is also the same case for the Philippines.

“The continued economic recovery narrative in which more economies worldwide are moving further towards greater normalcy or are already above pre-pandemic levels support the normalization of global supply chains and the global trade,” Mr. Ricafort said in a Viber message. 

He said that the reopening of China as well as the signals of “reduced odds of recession” in the US as gleaned from Federal Reserve statements point to stronger global trade.

For the fourth quarter, the WTO expects year-on-year trade growth likely to be strong “due to the slump that began in the same period last year.”

“These developments are consistent with the WTO’s forecast on Oct. 5, which foresaw an 0.8% increase in global trade volume in 2023,” WTO said.

“While the forecast remains unchanged, risks to the trade outlook have shifted towards the downside in light of recent developments in the Middle East,” it added.

The barometer’s component indices ended mixed during the period as some rose above the trend while others remained on or below trend.

Gains were seen in the indices for automobile sales and production (110.0) and electronic components trade (109.8).

The indices for air freight (100.3), export orders (99.4) and container shipping (98.0) finished on or slightly below trend, while the raw materials index (95.6) sank below trend, WTO said.

“The strength of the automotive products and electronic components indices may be explained by surging global demand for electric vehicles, while the weak result for raw materials may be partly due to weakening property markets as interest rates remain elevated,” the WTO said.

This is also the same case in the Philippines as electronics and semiconductors still comprise the biggest share in the country’s merchandise trade, said Mr. Ricafort.

However, he said that this will be further supported by continued and emerging innovation in electronics and semiconductors such as those related to artificial intelligence.

“Technological advancements in the automotive industry such as the greater shift to electric vehicles and self-driving vehicles will boost the global supply chains for batteries, nickel and other auto parts,” he said. — Justine Irish D. Tabile

Senator joins calls for Marcos gov’t to cooperate with ICC probe of Duterte

PHILIPPINE STAR/ MIGUEL DE GUZMAN

AN OPPOSITION senator has filed a resolution urging the government of Philippine President Ferdinand R. Marcos, Jr. to cooperate with the International Criminal Court’s (ICC) investigation of his predecessor’s deadly drug war.

“The Philippines has historically been at the forefront of advancing humanitarian law and international justice, and it is high time that we affirm our commitment to these values before the international community,” said Senator Ana Theresia N. Hontiveros-Baraquel, who filed Senate Resolution 867.

The senator, a member of the minority bloc, said the Constitution commits the Philippines to “value the dignity of every human person and guarantee the full respect for human rights.”

Similar resolutions have been filed at the House of Representatives.

Senator Ronald M. dela Rosa, who enforced the anti-illegal drug drive as Mr. Duterte’s national police chief, told a news briefing he expected opposition lawmakers to file the resolution but does not expect it to gain traction.

On Monday, he said the government should first resolve sovereignty issues involving the ICC before rejoining the tribunal.

The Philippines under ex-President Rodrigo R. Duterte withdrew from the ICC in 2019 amid criticisms that his government systemically murdered drug suspects in police raids. It took effect a year later.

The Supreme Court in 2021 ruled the government must cooperate with court processes that started before it canceled its membership in the ICC.

Senator Maria Imelda “Imee” R. Marcos, sister of the President, accused Ms. Hontiveros-Baraquel of stirring up trouble. “So they really want trouble?” she asked. “Well, PRRD (President Rodrigo R. Duterte) has said ‘Bring it on!’ But the decision to cooperate or not is one for the Executive, and my brother, the President of the Philippines, has already made it clear that the ICC has no jurisdiction to conduct the probe. I share that view.”

The Marcos government appeared to be shifting its stance and would probably end up giving up Mr. Duterte to ICC investigators, political analysts said at the weekend.

Mr. Marcos on Friday said his government is considering rejoining the ICC, which is investigating Mr. Duterte for alleged “crimes against humanity.”

“Should we return under the fold of the ICC? So that’s again under study,” he told reporters. “So we’ll just keep looking at it and see what our options are.”

Manila Rep. Bienvenido M. Abante, Jr., Party-List Rep., France L. Castro and Albay Rep. Edcel C. Lagman earlier filed separate resolutions urging the state to cooperate with the ICC probe.

Mr. Marcos had ruled out cooperation with the international court, saying its probe violates Philippine sovereignty given the country’s fully functional justice system.

NO CHANGE
Last week, his daughter, Vice-President Sara Duterte-Carpio said allowing the ICC to probe crimes committed in her father’s deadly war on drugs would undermine the Philippine justice system.

Meanwhile, the Department of Justice (DoJ) said its stance against the ICC investigation was unchanged.

“Our stance remains that the ICC has no jurisdiction, although, we will be open if we see any changes in policy,” Justice Assistant Secretary and spokesman Jose Dominic F. Clavano IV told state-run media PTV in Filipino.

He made the remarks after Ms. Dutere-Carpio asked the agency to reaffirm its position on the matter. She told reporters on Monday her office would continue to reach out to the DoJ regarding the ICC investigation on her father’s drug war.

“There is really no need to request it because the DoJ’s stance has not changed,” Mr. Clavano said, adding that DoJ is only studying the case because there are calls from the House of Representatives to allow the ICC probe

“It is also our job to listen to a co-equal branch of the government.”

Justice Secretary Jesus Crispin C. Remulla said last week the ICC probe “needs a serious study” because the Philippines is no longer a member.

When asked about the possibility of the Philippines returning to the ICC treaty, Mr. Clavano said in Filipino: “We don’t want to look like turncoats. We need to be deliberate, and we should carefully study it so that our decision does not adversely affect our country.’

Ms. Hontiveros-Baraquel said the President’s recent statement offers hope for families of drug war victims.

“The best way for Malacañang to show its commitment to upholding human rights is to work with the ICC in securing justice for victims of human rights violations, and in upgrading mechanisms of human right protection in the Philippines,” she added.

Senate President Juan Miguel F. Zubiri said it would be up to the President whether to rejoin the ICC.

“It is the decision of the President of the republic, being the Chief foreign policy maker of our country,” he said in a statement. “He alone makes that decision and everything else is just noise.”

The Hague-based tribunal, which tries people charged with crimes against humanity, genocide, war crimes and aggression, earlier said it was not satisfied with Philippine efforts to probe human rights violations during the campaign.

The Philippines has accepted 200 recommendations from the UN Human Rights Council, including investigating extralegal killings and protecting journalists and activists.

More than 30 member-states of the United Nations (UN) Human Rights Council in November last year urged the Philippines to do something about extralegal killings in connection with Mr. Duterte’s anti-illegal drug campaign.

The Philippine government estimates that at least 6,117 suspected drug dealers were killed in police operations. Human rights groups say as many as 30,000 suspects died. — John Victor D. Ordonez and Jomel R. Paguian

Civilian convoy to South China Sea gets NSC nod

THE BRP SIERRA MADRE, a marooned transport ship which Philippine Marines live in as a military outpost, is pictured in the disputed Second Thomas Shoal, part of the Spratly Islands in the South China Sea. — REUTERS

By Kyle Aristophere T. Atienza, Reporter

LOCAL SECURITY officials on Tuesday said they would protect a civilian-led convoy to Philippine-occupied features in the South China Sea next month, days after rejecting the plan amid worsening tensions with China.

In a statement, the National Security Council (NSC) said it would allow the Christmas convoy of about 40 civilian vessels to pass through Second Thomas Shoal, which has been a major source of tensions with China in recent months.

A team led by Senator Risa Hontiveros-Baraquel’s Akbayan Party will go to various Philippine-occupied features in the South China Sea on Dec. 10 before heading to Pag-Asa Island to “bring Christmas cheer” to fisherfolk and soldiers stationed there,” council Assistant Director-General Jonathan E. Malaya said.

The group originally planned to hold a convoy to BRP Sierra Madre, a World War II-era vessel that the Philippines deliberately grounded at Second Thomas, locally called Ayungin, in 1999 to serve as an outpost for Filipino troops.

The NSC had opposed the plan, saying it could escalate tensions with China.

“Both parties agreed that a convoy to BRP Sierra Madre in Ayungin Shoal would not be advisable at this time since the safety of the civilian convoy is of paramount consideration,” Mr. Malaya said.

He said Christmas gifts and donated supplies for troops at BRP Sierra Madre would instead be delivered by Philippine military troops and Coast Guard personnel during their regular rotation and resupply missions.

The group earlier said civilian voyages within the Philippines’ exclusive economic zone in the South China Sea should be normalized. “For each act of Chinese aggression, the Philippines must respond with more supply missions,” it said.

China has been blocking Philippine resupply missions to BRP Sierra Madre. Second Thomas Shoal is about 200 kilometers from the Philippine island of Palawan and more than 1,000 kilometers from China’s nearest major landmass, Hainan Island.

The Philippine Coast Guard (PCG) is ready to help the civilian team during the convoy, Mr. Malaya told reporters on the sidelines of a security forum in Taguig City.

The team will also coordinate with the Western Command of the Armed Forces of the Philippines.

He said they have yet to decide how many vessels will accompany the convoy. “What is paramount for us is their safety and security. The final number will depend on discussions between the coast guard, Western Command and the Atin ‘To Coalition.”

Don Mclain Gill, who teaches foreign relations at De La Salle University in Manila, hailed the security sector for its “careful and balanced deliberations.”

“China can go to any extent to cement its expansive interests in the West Philippine Sea, even if it may come at the expense of the safety of our civilians. Hence, caution remains a priority,” he said in a Facebook Messenger chat, referring to areas of the South China Sea within the country’s exclusive economic zone.

Marcos gov’t, Maoist party agree to restart peace talks

SECRETARY Carlito Galvez held up the agreement for the Philippine government and National Democratic Front to peacefully resolve their armed conflict at a press conference in Malacañang on Tuesday. — PHILIPPINE STAR/KRIZJOHN ROSALES

By Kyle Aristophere T. Atienza, Reporter

THE PHILIPPINE government and the coalition of revolutionary groups supporting the communist insurgency have agreed to restart peace talks amid foreign threats and other challenges facing the country, officials announced on Tuesday.

In their joint statement signed in Oslo, Norway on Nov. 23, the Philippine government and the National Democratic Front of the Philippines (NDFP) cited “serious socioeconomic and environment issues” as well as “foreign security threats” for agreeing to “a principled and peaceful resolution” of their armed conflict.

“The parties acknowledge the deep-rooted socioeconomic and political grievances and agree to come up with a framework that sets the priorities for the peace negotiation with the aim of achieving the relevant socioeconomic and political reforms towards a just and lasting peace,” they said.
In resolving the roots of their armed conflict, both parties see that ending the armed struggle “shall pave the way for the transformation” of the Communist Party of the Philippines (CPP), its armed wing the New People’s Army (NPA), and the NDFP.

They agreed to craft a framework that will set the parameters for the final peace agreement.

High-ranking delegations from both sides that met in Oslo last week agreed to a “common vision for peace” that sought to address key obstacles, according to a separate statement by Norway’s foreign ministry also on Tuesday.

If negotiations succeed, the rebels will end their armed struggle and transform into a political movement, according to Norway, which has facilitated the Philippines’ peace process for around 20 years.

Removing the communist party and affiliated groups from a government list of designated terror organizations was included in the talks, government Peace Process Adviser Carlito G. Galvez, Jr. told a press conference in Malacañang on Tuesday.
He said the NDFP was represented by Luis G. Jalandoni, a member of its National Executive Council; Julieta de Lima, interim chairperson of the negotiating panel; and Coni K. Ledesma, who is also a panel member.

Signatories on the part of the Philippine government include Mr. Galvez, Special Assistant to the President Antonio F. Lagdameo, and Retired General Emmanuel Bautista, who served as a special representative.

No immediate ceasefire was announced, however, and operations against the rebels would continue, Philippine military chief General Romeo S. Brawner, Jr. said.

But Brawner also said an eventual peace deal would allow the armed forces to focus on external and territorial defence rather than domestic conflict.

“If this conflict will finally end, your Armed Forces of the Philippines will be able to shift our focus to external or territorial defence. Our resources, efforts will be poured into defending our territory,” he said.

President Ferdinand R. Marcos, Jr. has veered away from some of the key policies of his predecessor, standing up to China amid its aggression at sea and vowing to shift the focus of the drug war to rehabilitation.

Since taking office in late June last year, Mr. Marcos has also vowed to put focus on the climate crisis and economic insecurities, including the rising prices of basic commodities.

His predecessor, Rodrigo R. Duterte, had been known for tagging critics and activists alike as communists. He had launched a deadly war on drugs and a bloody campaign against the Maoist insurgency, which domestic and international watchdogs said resulted in rampant human rights violations.

The Duterte administration pushed for peace talks with the Maoist movement in 2016, with Norway hosting the negotiations.

But the talks did not last long, with the government and rebels accusing each other of ceasefire violations. Negotiators representing the communist movement had belied military officials’ claims.

The NPA has been waging one of the world’s longest-running insurgencies. It had significantly expanded across the impoverished country under the late dictator Ferdinand E. Marcos, whose son clinched a remarkable victory in the 2022 presidential election.

During the presidential race last year, Mr. Marcos capitalized on a promise of unity and called for national healing amid serious economic challenges facing the nation.
The bloody conflict between authorities and the CPP-NPA has raged for over 50 years and killed more than 40,000 people. — with Reuters

Gov’t told to pursue renewable over nuclear energy

BW FILE PHOTO

By John Victor D. Ordoñez, Reporter

THE PHILIPPINES should diversify its renewable energy mix instead of pushing nuclear energy, which could end up costing more than reliable power sources, according to analysts.

“The government should continue pursuing its policy of broadening the nation’s renewable energy mix, while considering the limitations of renewables in ensuring a stable and reliable baseload,” Terry L. Ridon, a public investment analyst and convenor of think tank InfraWatch PH, said in a Facebook Messenger chat.

If the government decides to go all out on nuclear energy development, it should consider environmental, he added, noting that these factors are rarely reflected in nuclear supply contracts.

Mr. Ridon said the state should develop a national policy on regulating the use of nuclear energy power generation to mitigate and assess the industry’s risks.

Last week, the House of Representatives approved on third and final reading a bill seeking to establish an agency that will regulate the nascent nuclear industry.

The proposed Philippine National Nuclear Energy Safety Act will set up a Philippine Atomic Regulatory Authority that will “have the sole and exclusive jurisdiction to exercise regulatory control for the peaceful, safe and secure uses of nuclear energy and radiation sources,” according to a copy of the bill.

Speaker Martin G. Romualdez earlier said the measure would aid the Philippines’ path toward energy security.

The Philippines and the United States on Nov. 17 signed a deal that would allow Washington to export nuclear technology to Manila so it can develop a civilian nuclear energy infrastructure.

“We see nuclear energy becoming a part of the Philippines’ energy mix by 2032 and we are more than happy to pursue this path with the US,” President Ferdinand R. Marcos, Jr. said last week.

The government should make use of state-of-the-art technology in pursuing the development of the nuclear industry to ensure safety in harnessing the energy source, Senator Sherwin T. Gatchalian said last week.

“The country is much better off seriously pursuing the development of Filipino technological and manufacturing capacity in wind, solar and hydro in a carefully paced manner,” Jose Enrique A. Africa, executive director of think tank Ibon Foundation, said in a Viber message.

He said the Philippines should lean on these energy sources since they are guaranteed to be cleaner and more affordable than nuclear power.

The Department of Energy (DoE) has said renewable energy accounted for about 22% of the country’s energy mix at the end of 2022, while coal-fired power plants accounted for almost 60%.

The government wants to boost the renewable energy share in the power mix to 35% by 2030 and to 50% by 2040.

As of June, the Energy department had awarded 1,087 renewable energy service contracts with a total potential capacity of 113.5 gigawatts.

Party-List Rep. Raoul Danniel A. Manuel, who voted against the House measure, said reliance on nuclear energy would risk the Philippines becoming “a potential dumpsite for the US and other countries’ nuclear waste.”

“We have much more experience with these options that are guaranteed cleaner and whose reliability and affordability are unambiguously improving as global use rapidly increases,” Mr. Africa said.

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