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Philippines says ship did not intrude into Scarborough Shoal

PHILSTAR FILE PHOTO

By John Victor D. Ordoñez, Reporter

THE PHILIPPINES on Thursday said it did not intrude into China’s territory when its military ship patrolled waters near Scarborough Shoal in the South China Sea on Monday.

“It is China that is intruding into Philippine waters,” the Department of Foreign Affairs (DFA) said in a statement.

“Chinese authorities are reminded that its apparent exercise of maritime law enforcement powers, interference with Philippine vessels, harassment and intimidation of Filipino fisherfolk… are violations of international law, particularly the United Nations Convention on the Law of the Sea (UNCLOS) and the arbitral award,” it added.

The Philippines as a sovereign state does not need to seek approval from other countries when navigating its own maritime territories, DFA said.

The Chinese Embassy in Manila did not immediately reply to a Viber message seeking comment.

The DFA was referring to a 2016 ruling by a United Nations-backed tribunal that ruled China had violated Philippine sovereign rights in its exclusive economic zone by building artificial islands and failing to prevent its citizens from fishing there.

China has ignored the ruling. Aside from the Philippines and China, Brunei, Malaysia, Taiwan and Vietnam also have claims to parts of the waterway.

The Scarborough Shoal is claimed by China, the Philippines and Taiwan.

China’s military on Monday said the Philippine military ship had “illegally entered” waters near Scarborough Shoal, locally known as Bajo de Masinloc, urging the Philippines to stop its provocations.

China had mostly directed warnings over moves in the disputed water against United States warships in the region.

Meanwhile, political analysts said the growing presence of maritime vessels from Europe and Asia that seek to patrol the South China Sea with the Philippines could make China think twice about its tactics in the waterway.

“Taken together, these patrols by Europe, Canada, India, Australia, Japan, South Korea, etc. add up to a significant statement of international interest,” Raymond Michael Powell, a fellow at Stanford University’s Gordian Knot Center for National Security Innovation, said in an X message.

“That makes a difference, as China now has to consider this growing international concern when throwing its weight around against its neighbors.”

‘INTERESTING ACTOR’
Dutch Minister of Foreign Affairs Hanke Gerdina Johannette Bruins Slot told a news briefing in Manila on Monday the Netherlands plans to send a warship to patrol the South China Sea with the Philippines next year.

“Both our countries are committed to upholding the international law of the sea, that’s why we will work jointly to build capacity concerning the content and relevance of the law of the sea,” she said.

She reiterated the Netherlands’ support for the 2016 ruling, which voided China’s claim to more than 80% of the South China Sea.

“As a major trading nation, Amsterdam has an abiding interest in freedom of navigation of global critical passageways like the South China Sea,” Lucio B. Pitlo III, a research fellow at the Asia-Pacific Pathways to Progress Foundation, said in a Facebook Messenger chat.

He said the Netherlands is known for shipbuilding, adding that cooperation in this area could help the Philippines improve its maritime security.

“In addition, Rotterdam is one of the world’s biggest and busiest container ports, making the Netherlands a capable partner in modernizing Philippine port operations,” Mr. Pitlo added.

The Netherlands’ stance on the sea dispute is consistent with the positions of other European powers such as the United Kingdom and France, Aaron Jed Rabena, who is also a research fellow at the Asia-Pacific Pathways to Progress, said in a Messenger chat.

France and the UK have expressed support for the 2016 ruling that favored Manila, calling on China to abide by the United Nations Convention on the Law of the Sea.

“It still depends on where the Dutch ship will be in traversing the South China Sea, but this will give a signal to the Chinese that the South China Sea is becoming more militarily internationalized,” Mr. Rabena said.

“Bringing in the Dutch would be an interesting actor especially as they do not share negative neocolonial baggage compared to America,” Hansley A. Juliano, a political science lecturer at the Ateneo de Manila University, said via Messenger chat.

“Our relationship with the Netherlands is much defined by our migrant community there.”

The Philippines on Oct. 23 filed a diplomatic protest against China and summoned its envoy in Manila after its ships collided with Philippine vessels on a resupply mission to Second Thomas Shoal.

China Coast Guard vessel 5203 collided with an Armed Forces of the Philippines-contracted indigenous resupply boat 13.5 nautical miles (25 kilometers) east-northeast of BRP Sierra Madre, the National Task Force for the West Philippine Sea said on Oct. 22.

A Chinese maritime militia vessel had also bumped a Philippine Coast Guard patrol vessel that was escorting the resupply mission about 6.4 nautical miles northeast of the shoal, it said.

DICT doesn’t need secret funds — cyber expert

DICT FACEBOOK PAGE

By John Victor D. Ordoñez, Reporter

THE DEPARTMENT of Information and Communications Technology (DICT) should focus on developing a national cybersecurity plan and seeking out international partners to boost the country’s capacity to deter cyber-attacks and data breaches instead of relying on confidential funds, a cybersecurity expert said.

“This is not only about legislation but this is about placing the right people that can implement and enforce cybersecurity policies in the country,”  Allan S. Cabanlong, regional director for Southeast Asia at Global Forum on Cyber Expertise, said in a Viber message.

“DICT doesn’t need confidential funds in cybersecurity since threat intelligence tools can be procured through the bidding process,” he pointed out.

Last month, DICT Secretary Ivan John E. Uy said it would ask Congress to restore its proposed P300 million in confidential funds in its proposed P9.73-billion budget next year.

The Philippines ranked 20th out of 161 countries with the most data breaches in the second quarter of this year, according to virtual private service provider Surfshark.

Global cybersecurity firm Kaspersky said in a report on April 17 that web attacks targeting entities in the Philippines rose to 492,567 in 2022 from 382,940 a year earlier.

Mr. Cabanlong said data breaches are caused by the poor enforcement of the DICT’s and the National Privacy Commission’s policies and other programs.

He added that unnecessary confidential funds could open the door to corruption.

“Strengthening international cooperation and implementing a multi-stakeholder approach are keys to improving cybersecurity in the country,” Mr. Cabanlong said.

The NPC in September told senators that the agency would need about P510 million to boost its capacity to probe data breaches in the country.

Senators are in the middle of investigating recent cyberattacks on government systems such as the House of Representatives website, data breaches and ransomware attacks in the Philippine Health Insurance system and the Department of Science and Technology.

Last month, Senator Alan Peter S. Cayetano said the DICT should enforce a reward system that would pay anyone who could provide information about hackers.

There should also be stiffer penalties against hacking. “It will prevent major breaches in our cybersecurity and it’s worth it,” he said.

In September, Senate President Juan Miguel F. Zubiri said the Senate would hike the intelligence funds of the National Intelligence Coordinating Agency (NICA) and National Security Agency (NSA), citing the need to protect the country from cyberattacks

Laborers reject pay hike delays

A mural in Paco, Manila is seen on May 16, 2022. — PHILIPPINE STAR/KRIZ JOHN ROSALES

THE COUNTRY’S biggest pro-labor coalition on Thursday objected to the Philippine Chamber of Commerce and Industry’s (PCCI) opposition to the proposed P150 legislated wage hike and its call to delay state-imposed salary increases.

“This is the right time for a wage increase,” Jose “Sonny” G. Matula, president of the Federation of Free Workers and chairman of the Nagkaisa Labor Coalition, said in a statement in Filipino.

The PCCI had argued against Senate Bill No. 2002, the Across-the-Board Wage Increase Act of 2023, and suggested that the government delay another wage hike until the country’s inflation reaches the 2% to 4% target range to assist businesses in managing the increase in labor expenses. As of September, the inflation rate soared to 6.1%.

But Mr. Matula said a wage hike will support the workers who bear the brunt of the high inflation rate. 

“Failing to act on a nationwide wage increase disregards the essential needs of our workforce as they grapple with the high inflation rate amid the ongoing economic recovery from the COVID-19 pandemic,” he said.

Mr. Matula added that national legislation for a wage hike is needed as not all of the Regional Tripartite Wage and Productivity Boards (RTWPBs) have issued their own orders. “These disparities perpetuate wage discrimination and hinder economic inclusivity,” he said.

As of September, Metro Manila has the highest daily minimum wage in the country at P610 with a 6.1% inflation rate, while the lowest is in the Bangsamoro Region at P341 with a 6.4% inflation rate.

Inflation-adjusted wages were lower by around P62.82 to P105.01 (15% to 22.8%) from the current daily minimum wages set by RTWPBs, according to the data from the Department of Labor and Employment’s National Wages and Productivity Commission and Philippine Statistics Authority.

The Senate bill, introduced by Senator Juan Miguel F. Zubiri on Mar. 14, has been undergoing committee review since Oct. 5. — Jomel R. Paguian

Job security key to 4PH — Acuzar

BAGUIO CITY — Livelihood and skills training for beneficiaries of the Pambansang Pabahay para sa Pilipino Program (4PH) is key to the sustainability of the flagship program of the Marcos administration, the country’s housing czar said on Thursday.

Department of Human Settlements and Urban Development (DHSUD) Secretary Jose Rizalino L. Acuzar stressed the significance of employment and sustained livelihood for beneficiaries in aiding the success of the 4PH.

He highlighted his department’s signing of the memorandum of agreement with the Technical Education and Skills Development Authority (TESDA) to meet these ends at the recent National Shelter Month celebration.

“It is important that 4PH beneficiaries could establish livelihood or stable jobs within the vicinities of government housing projects, which is what President Marcos’ concept of sustainable human settlements and township development is all about,” said Mr. Acuzar.

The MoA between DHSUD and TESDA seeks to fill in the gaps in existing industries in areas where the beneficiaries of housing projects are located.  Under it, the DHSUD is tasked to gather data on the preferred skills of beneficiaries and provide TESDA with the list of participants for the training, among other related responsibilities.

Apart from skills and livelihood training, TESDA is expected also to provide other forms of technical assistance as necessary, subject to government rules and regulations. — Artemio A. Dumlao

P15.8B set for feeding program

PHILSTAR FILE PHOTO

CONGRESS has allocated P15.8 billion for the Education and Social Welfare departments’ feeding programs in schools and daycare centers, a lawmaker said on Thursday.

“We are counting on feeding programs to help alleviate child hunger, improve the nutrition of learners from food-insecure households, and prevent pupils-at-risk from dropping out of school,” Makati City Rep. Luis Jose Angel N. Campos, Jr. said in a statement.

Under the total allocation, P11.7 billion is earmarked for the Department of Education’s (DepEd) School-Based Feeding Program (SBFP) and P4.1 billion for the Department of Social Welfare and Development’s (DSWD) Supplementary Feeding Program (SFP).

“The combined P15.8-billion provision for the SBFP and the SFP next year is P5 billion or 46% greater than the P10.8 billion that the two feeding programs are getting this year,” said Mr. Campos, who is also the vice chairperson of the House appropriations panel.

The DepEd’s SBFP is expected to provide food for 220 days and milk for 55 days for underweight elementary pupils, said Mr. Campos.

He added that the DSWD’s SFP will fund meals for 2 million children in daycare centers supported by local government units and in supervised neighborhood play groups.

Last month, the Department of Health said 26% of Filipino children aged below five are shorter for their age. — Beatriz Marie D. Cruz

BAYAN warns vs ‘US agenda’

ACTIVISTS from the group Bagong Alyansang Makabayan (BAYAN or New Patriotic Alliance) are opposing the planned reciprocal security agreement between the Philippines and Japan, accusing Tokyo of advancing Washington’s agenda in the Indo-Pacific region.

“We are being made to believe that all these military exercises are all meant to protect us from China, when the reality is that these are all meant to advance US hegemony in the region,” the group said in a statement on Thursday, ahead of Prime Minister Fumio Kishida’s official visit to the Philippines today.

Tokyo-based Kyodo News earlier said the two countries were expected to begin formal talks in November for a reciprocal military access agreement that is aimed at facilitating the presence of visiting forces. 

BAYAN said the US has made Japan “a junior partner” and the Philippines a “vital cog” in its supposed “war machine” in the region. “The US has been involved in failure after failure in its interventionist actions, from Iraq, Afghanistan, Libya, Ukraine and now Palestine. Why would we entrust our security to an interventionist power and its junior partner?” it said. — Kyle Aristophere T. Atienza

Early voting for elderly pushed

PHILIPPINE STAR/EDD GUMBAN

A PHILIPPINE senator has called for the approval of a bill that would give senior citizens and persons with disabilities (PWDs) the option to vote earlier in the next national elections.

“It is encouraging to hear from our Commission on Elections Chairman about the positive reception of our senior citizens and PWDs to the early voting scheme,” Senator Juan Edgardo “Sonny” M. Angara said, citing Senate Bill 777 filed last year which would allow the elderly and persons with disabilities (PWDs) to vote no less than two days and no more than 15 days before the date of elections.

The measure, which is still pending at the committee level, would authorize Comelec to designate voting precincts as accessible voting areas exclusively for senior citizens and PWDs. These voting centers will have support facilities for various disabilities and also benefit at least 11.6 million registered voters aged 60 and above.

In Monday’s village and youth council polls, the Comelec allowed polling centers in Muntinlupa City, Metro Manila and Naga City in Bicol to give the elderly, PWDs and the heavily pregnant the exclusive chance to cast their ballots from 5 a.m. to 7 a.m. — earlier than the general opening of poll precincts. — John Victor D. Ordoñez

PHL minerals seen playing key role greening US economy

REUTERS

By Justine Irish D. Tabile, Reporter

A PARTNERSHIP with the Philippines covering critical minerals is deemed critical for the US push to make its economy greener, the US Chamber of Commerce (USCC) said.

John Patrick Goyer, USCC executive director for Southeast Asia, said both the US and the Philippine government have been discussing such an agreement for some time.

“I don’t really have a good sense of how far those conversations have gone. But I think that in order for, certainly for the US, to move forward effectively on its climate agenda, it is going to require access to certain critical minerals and rare earth elements (and) the Philippines has some of these,” Mr. Goyer told BusinessWorld.

However, he said there are still concerns in the US government and Congress about the impact of extracting green minerals on the environment and mine workers.

“I think there is a way to come up with some sort of cooperation, whether it’s through technical assistance, upgrading standards in that sector, or providing help on best practices,” he said.

“But those minerals are necessary to combat climate change. And while the process and the extraction itself has many risks, I don’t think there’s any choice but to try to move forward in the best way possible,” he added.

He added nickel and cobalt are needed to produce electric vehicle (EV) batteries and other components that the US needs to produce cleaner energy.

“Companies worldwide are increasingly having to price in climate risk as they consider investment plans,” he added.

Earlier this year, the US and Japan signed a critical minerals agreement to strengthen and diversify supply chains and promote the adoption of EV battery technology.

Trade Secretary Alfredo E. Pascual said in September that a critical minerals agreement with the US is being discussed in the context of the Indo-Pacific Economic Framework (IPEF).

IPEF is an economic bloc launched in 2022 with 14 participating founding members — Australia, Brunei, Fiji, India, Indonesia, Japan, Malaysia, New Zealand, the Philippines, Singapore, South Korea, Thailand, US and Vietnam.

BIR sees threat of site blocking as first step in taxing digital economy

Figures are seen in front of displayed social media logos in this illustration taken on May 25, 2021. — REUTERS

THE Bureau of Internal Revenue (BIR) is exploring technologies to help it monitor the digital economy, and has determined that it needs the power to shut down sites for a taxation campaign or a crackdown on other abuses to be effective.

“The first thing the Commissioner is doing is to look for the means to shut down websites… We need to be equipped with that kind of technology before we go after them,” BIR Assistant Commissioner Jethro M. Sabariaga told reporters last week.

Mr. Sabariaga noted the difficulty of generating revenue from the digital economy.

Last year, the digital economy was estimated at P2.08 trillion, equivalent to 9.4% of gross domestic product.

The BIR has said it is looking for ways to improve the tax compliance of social media influencers, noting inadequate levels of tax registration in that trade.

“We’re engaging (with) the social media influencers. We’re trying to win them over… the more you can (bring about) voluntary compliance, (the) better,” he said.

Under Revenue Memorandum Circular No. 97-2021, influencers are defined as “all taxpayers, individuals or corporations, receiving income, in cash or in kind, from any social media sites and platforms in exchange for services performed as bloggers, video bloggers or as influencers, in general, and from any other activities performed on such social media sites and platforms.”

The circular noted that influencers were liable to pay income tax and business tax, which can come in the form of percentage tax or value-added tax.

The BIR is also looking to start imposing a creditable withholding tax on partner-merchants of online platforms by December.

This year, the BIR aims to collect P2.64 trillion. It collects about 70% of government revenue.

BIR collections rose 7.25% year on year to P1.86 trillion in the nine months to September period, but missed the P1.93-trillion target for the period. — Luisa Maria Jacinta C. Jocson

Clark Dev’t Corp. seeking to attract more EV locators

MABALACATCITY.GOV.PH

CLARK Development Corp. (CDC) said it hopes to attract more electric vehicle (EV) manufacturers to the Clark Freeport Zone.

“Right now, we have one. It’s an American company. But we need more,” CDC President and Chief Executive Officer Agnes VST Devanadera told reporters last week.

“We have available area and you know, they don’t really require big sites. That is why we want manufacturing and the information technology investment — they only require small areas,” she added.

She said that some foreign investors have expressed interest in investing in the freeport, “but again, some are looking at our policies.”

She also added that Filipino investors in the EV industry have also indicated interest in Clark.

“There is one that expressed interest. I think it’s serious about manufacturing electric motorcycles and also electric golf cars,” she said. 

“We are shifting from just inviting foreigners to also inviting Philippine entrepreneurs,” she added.

Earlier this year, US EV maker Envirotech Vehicles, Inc. signed a lease agreement with Berthapil, Inc., a real estate developer in the freeport, to build a plant in the zone.

“They want to move to Asia and they think that politically and in everything else the Philippines is more stable than other Asian locations,” Ms. Devanadera said.

Envirotech hopes to start operating its assembly plant in Clark this year, Ms. Devanadera said.

“We have existing facilities … (so locators can) plug and play,” she said.

The facilities, she said, were used by previous locators who closed during the pandemic.

Asked about the size of Envirotech’s site, she said: “It is not big, that is why we were so encouraged to invite more because they don’t really need big facilities.” — Justine Irish D. Tabile

Relex AI pitched to food retailers seeking supply chain efficiencies

PHILSTAR FILE PHOTO

By Adrian H. Halili, Reporter

FINLAND’s Relex Solutions said its artificial intelligence (AI) platform holds the potential to improve supply chain efficiencies for food retailers.

“The Philippine retail market… can benefit by increasing margins, reducing waste, and increasing efficiency,” Relex Solutions Philippines Head of Sales Donald Felbaum said in an interview with BusinessWorld.

“One of the core things that we do is we use a lot of AI machine-learning based technologies to automate a lot of repetitive tasks and make more intelligent decisions,” Mr. Felbaum added.

He said retailers can be assisted with demand forecasting, which in turn “helps you figure out how much stock and space you have and how much people actually want.”

Mr. Felbaum said that the proprietary software can also project spoilage in fresh produce, eliminating waste and improving margins.

“What we do is give (businesses) better understanding of demand; looking at things like seasonality, previous sales history, and future external factors,” he added.

“A lot of the buying within the marketplace today is inefficient leading to scarcity,” he said.

Mr. Felbaum said Relex is seeking out new partnerships with retailers to expand its business.

“We’re talking to some of the big players in the Philippines,” he added.

Cebu-based Prince Retail Group has tapped Relex Solutions to automate demand forecasting across its supermarket chain.

“The Philippines has a huge opportunity to offer more value to consumers… with the (country) being archipelagic, supply chains can be more complex,” he said.

“Even without software, better planning can have a positive impact on the environment and to the consumer,” he added.

Relex Solutions specializes in software that assists retailers and consumer goods brands in optimizing operations, including supply chain and space management.

NGO wants nuclear project estimates to reflect cost of radioactive waste disposal

REUTERS

COST PROJECTIONS for electricity generated by proposed nuclear power plants need to reflect the cost of storing radioactive waste material, a non-government organization (NGO) said.

Gerry C. Arances, convenor of People for Power Coalition and executive director of the Center for Energy, Ecology and Development, said nuclear power proponents who put forward affordability arguments are not accounting for the cost of storing nuclear waste.

“(We need to) see the pricing when the nuclear proponents incorporate waste disposal and waste management because that’s one of the largest (expenses),” he said in an interview on the sidelines of a briefing.

Energy Secretary Raphael P.M. Lotilla said in a forum last month that the government is laying the groundwork to “satisfy the competency requirements” based on the milestone approach of the International Atomic Energy Agency (IAEA).

Mr. Lotilla said the Department of Energy has started drafting the national policy and strategy for safety in nuclear energy, which will set out the government’s commitment to achieve the fundamental safety objectives and to adopt the safety principles established by the IAEA.

The policy document is intended to foster transparency in all activities related to the nuclear energy program, particularly on the protection of people and the environment, he said.

Mr. Arances said that unlike nuclear energy, renewable energy has “already proven” its low cost.

With renewable energy, “there is no risk, no need to import,” he added.

The government hopes to increase the share of renewable energy in the power mix to 35% by 2030 and to 50% by 2040.

“In all the studies that have been released, those have not incorporated the financials of waste materials. Who will ensure the security of waste materials? National Government? Does that (include) all the risks and financial requirements?” Mr. Arances said. — Sheldeen Joy Talavera

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