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Shares climb on expectations of easing inflation

BW FILE PHOTO

PHILIPPINE SHARES closed higher on the first trading day of 2024 as investor sentiment was lifted by expectations of slower inflation in December.

The benchmark Philippine Stock Exchange index (PSEi) jumped by 104 points or 1.61% to end at 6,554.04 on Tuesday, while the broader all shares index rose by 41.38 points or 1.2% to close at 3,465.97. 

“We welcome 2024 with hopes of a better performance for the stock market. We are also optimistic that our regulator will continue to support the initiatives we will introduce to boost participation and liquidity in the market,” PSE President and CEO Ramon S. Monzon said in a statement.

Shares rose on Tuesday as inflation likely slowed further last month, Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.

“The possibility that inflation rate would settle within the 2-4% target of the government in December lifted market sentiment. Investors were also waiting for some economic data set to be released this week,” Ms. Alviar added. 

Headline inflation likely eased to 4% in December, according to the median estimate of a BusinessWorld poll conducted last week. This is within the 3.6-4.4% forecast of the Bangko Sentral ng Pilipinas (BSP) for the month.

If realized, December would mark the first time that inflation met the BSP’s 2-4% target and the slowest since the 3% print in February 2022.

At 4%, December inflation would be a tad slower than 4.1% in November and significantly lower than 8.1% in December 2022.

This would bring the 2023 inflation average to 6%, matching the BSP’s baseline forecast.

The Philippine Statistics Authority will release December inflation data on Friday.

“The market’s rally is due to the seasonally strong period of New Year’s optimism and growing interest rate cut bets in 2024,” First Metro Investment Corp. Head of Research Cristina S. Ulang added in a Viber message.

The majority of sectoral indices climbed on Tuesday. Holding firms rose by 217.37 points or 3.56% to 6,323.37; services increased by 37.45 points or 2.33% to 1,642.44; industrials went up by 85.71 points or 0.94% to 9,161.62; and financials added 7.73 points or 0.44% to end at 1,746.61.

On the other hand, mining and oil fell by 114.50 points or 1.14% to 9,885.93, and property dropped by 19.33 points or 0.67% to 2,835.61. 

“The mining sector was at the bottom, down by 1.14%, weighed by the performance of Nickel Asia Corp., which declined by 3.83%,” Ms. Alviar said. 

Value turnover dropped to P3.66 billion on Tuesday with 379.80 million issues switching hands from the P4.88 billion with 1.12 billion shares seen on Friday.

Advancers outnumbered decliners, 100 to 77, while 47 names closed unchanged. 

Net foreign buying rose to P443.11 million on Tuesday from P208.97 million on Friday. — R.M.D. Ochave

Peso weakens as dollar climbs

REUTERS

THE PESO dropped on the first trading day of 2024 as remittance flows eased after the holidays and as the dollar gained versus major currencies.

The local unit closed at P55.67 per dollar on Tuesday, weakening by 30 centavos from P55.37 on Friday, based on Bankers Association of the Philippines data.

The market was closed on Monday for New Year’s Day.

The peso opened Tuesday’s session weaker at P55.45 against the dollar. Its intraday best was at P55.44, while its worst showing was its close of P55.67 versus the greenback.

Dollars exchanged went down to $1.26 billion on Tuesday from $1.32 billion on Friday.  

The peso dropped against the dollar after remittances slowed as the holiday season ended, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The peso was also dragged down by a stronger dollar following a rise in global crude oil prices amid escalating tensions in the Red Sea, Mr. Ricafort added.

The dollar crept higher on the first trading day of the year as attention turned to economic data this week that may provide clues on the US Federal Reserve’s next moves, Reuters reported.

The dollar index, which measures the US currency against six rivals, fell 2% in 2023, snapping two years of gains. It was last at 101.44, up 0.059%, as investors weighed the prospect of the Fed cutting rates this year.

The dollar’s ascent weighed on the Japanese yen the most, with the Asian currency down by 0.35% at 141.36 per dollar, having slid 7% in 2023.

Markets are now pricing in an 86% chance of interest rate cuts from the Fed to start from March, according to CME FedWatch tool, with over 150 basis points of easing anticipated in the year.

Meanwhile, oil prices jumped on Tuesday, with Brent crude futures and US West Texas Intermediate crude futures each rising roughly 2%, due to potential supply disruptions in the Middle East after a naval clash in the Red Sea, among other things.

Brent gained $1.56 to $78.59 a barrel, while US crude rose $1.28 to $72.93.

“The peso depreciated on bargain hunting ahead of a likely uptick in the US manufacturing PMI (purchasing managers’ index) for December 2023,” a trader said in an e-mail.

For Wednesday, the trader said the peso could weaken further ahead of the release of US jobs data this week.

The trader sees the peso moving between P55.55 and P55.80 per dollar on Wednesday, while Mr. Ricafort expects it to range from P55.55 to P55.75. — A.M.C. Sy with Reuters

International visitor arrivals hit 5.45M in 2023

EL NIDO, PALAWAN — EIBNER SALIBA-UNSPLASH

THE PHILIPPINES logged 5.45 million international visitors in 2023, beating the 4.8 million target, the Department of Tourism (DoT) said on Tuesday.

“From Jan. 1 to Dec. 31, 2023… 91.8% or the bulk of international arrivals recorded at 5,003,475 were foreigners. The remaining 8.2% or 447,082 are overseas Filipinos,” the DoT said in a statement.

The 2023 total more than doubled the 2.6 million reported a year prior.

South Korea remained the top source of foreign arrivals during the year, accounting for 1.44 million tourists or 26.41% of the total.

Also in the top five were the US with 903,299 tourists (16.57%), Japan 305,580 (5.61%), Australia 266,551 (4.89%), and China 263,836 (4.84 %).

“Other foreigners who visited the country from other top source markets after China were from Canada, Taiwan, the UK, Singapore, and Malaysia,” it added.

The DoT said that total international tourism receipts for the year amounted to P482.54 billion. This was more than double the P214.58 billion from a year earlier.

It added that the Philippines was at about 66% of the pre-pandemic arrivals record posted in 2019.

International arrivals in 2019 amounted to 8.26 million, generating P482.15 billion in receipts, according to the DoT.

“We have set our goals for the industry not only in terms of international visitor arrivals but most importantly, the number of Filipinos, including their families, who will benefit from the opportunities generated by our efforts to make the industry prosper,” Tourism Secretary Maria Esperanza Christina G. Frasco said.

“We are poised for a thriving tourism landscape, evident in surpassing our targets in international and domestic arrivals and receipts, fostering economic prosperity and further job creation for our people,” she said.

The DoT is targeting 7.7 million international visitors for 2024. — Adrian H. Halili

DoE blames metering problems for low lifeline rate registration

BW FILE PHOTO

THE Department of Energy (DoE) said registration for the lifeline rate program has been hindered by the practice of several households sharing power meters, making consumption by eligible users difficult to track.

Luningning G. Baltazar, director of the DoE’s Electric Power Industry Management Bureau, said users who would otherwise qualify for the lifeline rate cannot register because their homes did not have a dedicated meter.

“We will look into how we can address this issue,” Ms. Baltazar told government television network on Tuesday.

She added that registering as a group of households would bring many poor users above the lifeline consumption threshold, making them ineligible for subsidized power rates.

“We still encourage them to register since we are still studying the question of what would be the appropriate threshold,” she said.

The lifeline rate applies to users with a monthly power consumption of 100 kilowatt-hours or less. Under the revised rules, customers living in condominiums, subdivisions, and those with net-metering services do not qualify for the lifeline rate even if their consumption falls below the threshold.

Also, eligible for lifeline rates are beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps) and qualified marginalized end-user applicants who are not 4Ps beneficiaries but belong to a household of at least five members in which the combined monthly income is no more than P12,030.

Citing ERC data, Ms. Baltazar said that about 191,399 4Ps members were registered for the program as of Dec. 15. However, she said that the full list of 4Ps members is about 4.2 million, according to the Department of Social Welfare and Development.

The ERC said in an advisory last week that the full implementation of the program starts on Jan. 1.

“We will continue to do the lifeline caravan, information campaign so that many will be aware of the program,” Ms. Baltazar said. — Sheldeen Joy Talavera

BoI planning push to encourage more biofertilizer use in rice, corn farming

THE Board of Investments (BoI) said on Tuesday that it will support a biofertilizer company in its capacity expansion by helping to promote the expanded use of its products and encouraging investment to develop the industry.

“Encouraging potential technology adaptors to invest in this industry, the BoI and other stakeholders aim to strengthen the information dissemination and education campaign for farmers to facilitate the shift from traditional fertilizer to biofertilizer,” the BoI said in a statement.

The BoI added that it will support the commercialization of the Bio-N fertilizer product which promises to raise crop yields by 11%.

The BoI said the campaign will be undertaken in collaboration with Laguna-based AgriSpecialist, Inc. (ASI), a Laguna company.

“Both BoI and AgriSpecialist agreed (on the importance of) having an industrialization partner from the beginning of the research and development process,” it added.

ASI President Mario Labadan, Jr. said farmers should be made aware of the advantages of using biofertilizer, which will be a domestically produced product.

According to the BoI, about five to six 200-gram sachets of the biofertilizer product can replace two 50-kilogram bags of urea per hectare planted to rice. The product has the potential to save producers about P10,000 per hectare.

ASI said that it aims to become the first commercial-scale manufacturer of biofertilizer.

Expansion plans for its Laguna plant will result in sufficient capacity to supply “100% of the country’s biofertilizer requirement for the lands planted to rice and corn.” — Adrian H. Halili

Biodiesel manufacturer sees higher coconut content improving mileage

PHILSTAR FILE PHOTO

INCREASING the coconut content of the biodiesel blend will have a minimal impact on price but may also improve vehicle mileage, producing net savings, a coco biodiesel producer said.

“More significant will the mileage improvement expected with B3. Because mileage can improve by 5-15% the net savings can be rather significant in peso terms,” Jun Lao, president of Chemrez Technologies, Inc., told BusinessWorld in a Viber message. B3 refers to biofuel with 3% coconut content.

On its website, Chemrez — a subsidiary of publicly listed D&L Industries, Inc. — operates the country’s first continuous-process biodiesel plant.

In a draft circular, the Department of Energy is proposing to implement an increase in the coconut methyl ester (CME) blend to 3% (B3) starting July 1, from the current B2.

It also proposed to raise the biodiesel blend to 4%, effective July 1, 2025, and to 5% on July 1, 2026.

The Biofuels Act of 2006 requires that all liquid fuels contain domestically sourced biofuel components.

“If the price of CME is lower than diesel, the blend will make the pump price lower. Depending on the prevailing prices prior to the effectivity of B3, it can also go the other way.  Either way the price difference of B2 and B3 will be minimal,” Mr. Lao said.

A combustion engine operating at a given efficiency and fuel quality can produce incomplete combustion, he said, with inefficient engines producing black smoke from the exhaust system.

“You can improve combustion by overhauling the engine and using better quality fuel. CME does the latter,” Mr. Lao said.

“CME improves the fuel quality, so it burns more completely. There is more power and less black smoke. That means the car engine will perform better by delivering better mileage,” he added.

He said a car performing at 10 kilometers per liter (kms/liter) will soon achieve 11 kms/liter when B3 takes effect, effectively bringing down the cost of fuel by 10%, Mr. Lao said.

“So I expect the cost of transport to drop with B3 implementation. Along with that is the cleaner emission from cars. Then a massive reduction in CO2 (carbon dioxide) from land transport,” he said. — Sheldeen Joy Talavera

Panay power plant outages raise yellow alert in Visayas

BW FILE PHOTO

THE Visayas power grid was placed on yellow alert on Tuesday after major power plants on Panay Island stopped operating, reducing the safety margin for available power, the National Grid Corp. of the Philippines (NGCP) said.

In a statement, the NGCP said it issued a yellow alert over the Visayas grid for between 4 p.m. and 10 p.m.

“Restoration of affected plants is ongoing. While NGCP did not implement manual load dropping, distribution utilities may implement load drops due to voltage-sensitive loads or manual disconnection to secure voltage levels,” the NGCP said.

According to the grid operator, multiple plants tripped starting with the power plant unit 1 of the Panay Energy Development Corp. (PEDC) as of 12:06 p.m.

This outage was followed by PEDC Unit 2, the tripping of the power plant of Palm Concepcion Power Corp., and “other plants” in Panay Island.

About 302 megawatts (MW) was lost to the power grid, in addition to 150 MW from the planned maintenance shutdown of PEDC Unit 3.

“In total, 452 MW is unavailable. Currently, none of the power plants in Panay Island is generating power,” the NGCP said.

It has yet to disclose the cause of the power plant outages.

“NGCP is focusing its efforts on stabilizing voltage, and has extended feedback power to Iloilo and PEDC,” the grid operator said. “Load restoration will be done conservatively, by matching loads to restored generation, to prevent repeated voltage failure.”

The Negros-Panay interconnection was restored at 3:24 p.m. after a brief trip at 3:07 p.m.

Meanwhile, the Department of Energy (DoE) said in a statement that it is closely coordinating with the NGCP and all affected generation plants and distribution utilities.

“We assure the public that power restoration is a priority,” the DoE said.

The Energy Regulatory Commission is investigating the incident, according to the Energy department. — Sheldeen Joy Talavera

Beekeepers to be tapped for export markets

PHILIPPINE STAR/ANDY ZAPATA JR.

THE Department of Agriculture (DA) said it hopes to expand the beekeeping industry, citing the prospect of new export markets.

Agriculture Undersecretary Deogracias Victor B. Savellano said the DA will explore funding for the expansion to be overseen by the Bureau of Animal Industry.

“Beekeeping is a high-value farm sector. It has export potential given an organized national program to develop it,” Mr. Savellano added.

He said Philippine honeybee breeds are easy to raise, setting the stage for a significant expansion.

“The program offers huge opportunities as income earners for farmers. Honey has medicinal and pharmaceutical properties,” he added.

The DA said it plans to accredit bee suppliers to develop the industry, as a measure to reduce the smuggling of queen bees.

“Queen bee smuggling has been destroying our domestic industry,” he said.

The DA added that apiculture products include antibacterial soap, massage oil, lip balm, and shampoo.

“Philippine bee products have reportedly been reaching prominent export markets,” it said.

The DA has also partnered with the University of the Philippines-Los Baños (UPLB) to develop a roadmap for developing export markets and a community-based beekeeping program.

“UPLB has been developing technologies using native bees, particularly stingless bees, in order to raise crop yields and sustain biodiversity,” the DA said.

The project has benefited communities of Lanao del Norte and indigenous Mangyan in Victoria, Occidental Mindoro.

It added that bee farms are also being developed as agriculture tourism sites.

“One of the sites is the Balay Buhay sa Uma Bee Farm in Bulusan, Sorsogon. It is accredited by the Department of Tourism,” it said.

Additionally, the program is also set to establish a Food and Drug Administration-accredited bee facility for testing product quality. — Adrian H. Halili

Miners expect ‘green transition’ minerals to drive industry growth

EREN GOLDMAN-UNSPLASH

By Adrian H. Halili, Reporter

MINERS are expected to perform well in 2024 due to increased demand for transition minerals used by the renewable energy industry, mining officials said.

“The government is pushing for local mineral processing of energy transition metals such as nickel and copper and the Philippine metallic mining industry would like to participate and take advantage of opportunities presented by this development,” Michael T. Toledo, chairman of the Chamber of Mines of the Philippines (CoMP), said in a Viber message.

Environment Secretary Maria Antonia Yulo-Loyzaga has said that the Department of Environment and Natural Resources (DENR) will encourage exploration for critical minerals this year, with the Mines and Geosciences Bureau (MGB) instructed to gear up for enabling projects undertaken with foreign mining partners.

Nickel, cobalt, and copper are deemed essential for the production of electric vehicles (EVs), the large-scale batteries which power them, and also wind and solar farms.

“A lot still needs to be done but we believe the signposts show we are on a course that is likely to result in success,” Mr. Toledo added.

The Philippine Nickel Industry Association (PNIA) said the industry is pushing for the government to fast-track the approval of mining permits by establishing a “one-stop shop” application process.

According to the PNIA, the streamlining of approvals will attract more investment in mining.

About 470 applications are currently awaiting approval. They are proposing to explore for copper, chromite, nickel, and cobalt, according to the MGB.

Phase 1 of the MGB’s priority list consists of metallic mines, with about 12 projects expected to start operations in the next six months.

“If realized, this (encourages) upbeat expectations for the production and export of more of these goods, given the high level of global demand,” the MGB said in its metallic production report.

These operations are a magnetite sand (Iron) site in Region 2, nickel laterite in Region 3, gold in Region 5, four nickel, copper and gold sites in Region 11, and five nickel, copper and gold sites in Caraga.

CoMP said metals prices would mainly depend on the recovery of China’s economy, a major user of Philippine minerals.

“Traders are cautious of the incoming year, considering the weaker Chinese economy and significantly cheaper nickel pig iron (NPI) from Indonesia,” Mr. Toledo said.

He added that the mining industry expects Indonesia to keep up its NPI output.

NPI is low-grade ferronickel, which serves as a cheaper alternative to higher-grade nickel used in stainless steel production.

“We don’t know when China’s economy will improve. Most developed countries are challenged at this time,” he said.

PNIA has said that nickel production this year will likely remain flat due to the limited capacity in ore-supplying regions.

The MGB said however that due to domestic nickel supply concerns in Indonesia, Chinese demand for nickel ore from the Philippines will rise.

It added that Indonesia has become a new export market for nickel ore. The Philippines has exported about 102,100.72 dry metric tons of nickel ore to Indonesia amounting to P171.37 million during the nine months to September.

Mr. Toledo said that the industry is optimistic that the Philippines can service global copper demand.

However, he said that in the absence of new copper mining operations in the next five years, “there could be a supply deficit that would drive prices upward.”

“In the next few years, we believe the Philippine copper sector can keep up with the demand for this metal as an input for renewable energy technologies,” he said.

“As the global demand for critical minerals for the energy transition intensifies, however, there are concerns on whether copper from Philippine mines can keep up,” he added.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the demand for raw materials from the renewable energy industry is expected to grow in the coming years.

“There will still be a large shift towards renewable and towards electric vehicles for the coming years amid the need for more sustainable source of energy and the need to reduce carbon emissions,” Mr. Ricafort said in a Viber message.

Mr. Ricafort added that a decline in global interest rates could also drive more investment towards minerals.

“Lower borrowing costs will encourage more investment and business activity, as well as the demand for minerals,” he said.

The Federal Reserve maintained its target rate in the 5.25%-5.5% range for a third straight meeting on Dec. 12-13.

The Bangko Sentral ng Pilipinas kept its key borrowing rate unchanged at 6.5% during its Dec. 15 meeting.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan said metal prices will largely be influenced by the strength of the Chinese economy and its adoption of EVs.

“The Philippines will be able to take advantage, should responsible mining practices be put in place to allow further export of our precious minerals,” Mr. Limlingan said in a Viber message.

Prices for nickel ore declined to $10.39 per pound from $11.97 per pound the previous year.

“For nickel, attributing factors to growth during the period are the improvement of nickel ore prices and better loading conditions on account of good weather, particularly in the southern part of the country,” Mr. Toledo said.

The price of gold increased to $1,932.07 per troy ounce, while copper prices fell to $3.9 per pound from $4.12 a year earlier. Silver prices rose 7.32% to $23.55 per troy ounce.

“The low copper prices were offset also by good weather, which resulted in less production interruptions, as well as by the strong dollar-to-peso exchange rate,” he added.

Marcos should have vetoed P450-B unprogrammed funds hike — Lagman

BW FILE PHOTO

By John Victor D. Ordoñez, Reporter

A PHILIPPINE lawmaker scored President Ferdinand R. Marcos, Jr. on Tuesday for not striking down the P450-billion increase in unprogrammed funds in this year’s P5.768-trillion General Appropriations Act (GAA), saying it is illegal.

“The President’s utter failure to veto the excess items aggravates the constitutional defect,” Albay Rep. Edcel C. Lagman said in a statement.

“Consequently, a constitutional challenge before the Supreme Court is in order to cleanse the General Appropriations Act of a fatal defect and give guidance to the Congress and the President in the future budget seasons.”

Unprogrammed appropriations are funds on standby in case of additional priority programs or projects when revenue collection exceeds targets.

Under the Constitution, the lawmakers are barred from boosting appropriations recommended by the President “for the operation of the government as specified in the budget.”

Mr. Lagman said the increase has boosted unprogrammed funds which could be used to fund politically motivated projects.

“The unprogrammed appropriations have become the sanctuary of partisan and pet projects where funding and releases for implementation would even antedate programmed appropriations,” the congressman said.

Senate Minority Leader Aquilino Martin “Koko” D. Pimentel, III said he would challenge the legality of the boosted allocation in unprogrammed appropriations since the Budget department only recommended a total of P281.9 in these funds.

The President had vetoed sections of the 2024 GAA that are related to a proposed revolving fund for the Department of Justice, and a provision related to the implementation of the National Government’s Career Executive Service Development Program.

Mr. Marcos signed the spending plan on Dec. 20, which he called a “battle plan” to boost education, combat hunger, and create more jobs.

“Verily, since the Constitution does not distinguish between the programmed appropriations and the unprogrammed appropriations with respect to the congressional ban, the ceiling of both cannot be exceeded by the Congress,” Mr. Lagman said.

“These are serious allegations which should first be provided with actual evidence by Rep. Lagman, particularly a supposed previous practice in which it has ‘become the sanctuary of partisan and projects.’ In the first place, unprogrammed appropriations remain unfunded appropriations unless and until adequate funding is found by government in the course of the fiscal year.”  Terry L. Ridon, a public investment analyst and convenor of think tank InfraWatch PH, said in a Facebook Messenger chat.

159 Filipinos in Japan evacuate after quakes

CHRIS BARBALIS-UNSPLASH

AT LEAST 159 Filipinos have been evacuated in western Japan after a 7.6-magnitude earthquake rocked the island of Honshu on Monday, resulting in a tsunami sweeping the west coast, the Philippine Department of Foreign Affairs (DFA) said.

No Filipino was among the 30 reported fatalities, based on official reports on Tuesday, Foreign Affairs Undersecretary Jose Eduardo A. de Vega told BusinessWorld in a WhatsApp message.

But he confirmed the number of Filipinos who fled danger areas and stayed at evacuation centers. A total of 157 of them have since returned to their homes, according to latest updates reaching the DFA.

On Monday, the Japanese government issued tsunami warnings for the central prefecture of Ishikawa and the coastal areas of Toyama, Fukui, and Hyogo prefectures as over 140 tremors have been detected since the first quake hit the coast.

Over 100,000 people were ordered to evacuate their homes to sports halls and school gymnasiums.

In an advisory later the same day, the Migrant Workers Office of the Philippine Consulate General in Osaka asked employers and supervisors in the affected prefectures to immediately report any incident involving Filipino workers related to the earthquakes.

Here in Manila, the Department of Migrant Workers activated hotlines for affected Japan-based migrant workers.

President Ferdinand R. Marcos, Jr. also issued this statement: “We are deeply saddened to hear of the magnitude 7.6 earthquake in Japan on New Year’s Day. We are in close collaboration with the Japanese government to secure the welfare of our countrymen, who thankfully remain unharmed.”

Japanese Prime Minister Fumio Kishida had ordered over 3,000 Japanese army personnel, firefighters and policemen across the country to the quake sites in the Ishikawa prefecture.

“The search and rescue of those impacted by the quake is a battle against time,” he told an emergency meeting on Tuesday.

Local authorities said the 30 deaths were all in Ishikawa prefecture, but more than 33,000 households in Western Japan were plunged in darkness due to power outages.

Temperatures in the area have reached below-freezing numbers, according to Hokuriku Electric Power Company, which supplies power to Toyama, Ishikawa, and Fukui prefectures.

There are about 469 Filipinos living in the Ishikawa Prefecture and 725 in the Toyama Prefecture, Migrant workers officer-in-charge Hans Leo J. Cacdac said in a statement.

He said about 90% of them work in the manufacturing, welding, and carpentry sectors, while 10% are caregivers.

“We are monitoring the employment situation of OFWs, especially in the Ishikawa and Toyama Prefectures. We will provide financial assistance to OFWs whose employment has been suspended or ceased due to the quake,” Mr. Cacdac said. — John Victor D. Ordoñez

Youth groups join clamor vs public transport policy

PHILIPPINE STAR/EDD GUMBAN

By Jomel R. Paguian

VARIOUS youth groups have voiced their opposition to the Public Utility Vehicle Modernization Program (PUVMP), expressing solidarity with the plans of jeepney drivers and operators to wage more strikes this month.

In an interview with BusinessWorld, youth coalition Samahan ng Progresibong Kabataan (SPARK) national coordinator John Lazaro said support for drivers and operators will continue as long as the government proceeds with its modernization policy, which is claimed to have failed in consulting the transport sector.

“If the government continues to make policies that actively harm the livelihood of the working class, then we have a duty to stand by them,” he said.

Meanwhile, 111 Sangguniang Kabataan (SK) officials throughout the country signed a year-end unity statement condemning the PUVMP and its franchise consolidation deadline, encouraging the youth to advocate for the preservation of the livelihoods and rights of public transport workers.

“We, the undersigned members of the Sangguniang Kabataan, stand in solidarity with our fellow Filipinos — especially the 200,000 jeepney drivers and operators — whose livelihoods are a stake due to the looming Dec. 31 franchise consolidation deadline,” read part of the statement.

Kabataan Partylist national executive vice president Renee Louise Co, spearheading the unity statement, told BusinessWorld that the group currently receives additional signatories from more SK officials.

For SPARK, Mr. Lazaro added that the phaseout of unconsolidated public utility jeepneys (PUJs) will affect not just the livelihood of the transport workers but also the situation of students who rely on public transport.

“When the livelihood of PUJ drivers is affected, our livelihood, our right to education and learning are also at risk,” he said in Filipino. “We are connected to every move of our workers; hence, we support them in their strikes”

Days before the New Year, the Land Transportation Franchising Regulatory Board (LTFRB) issued new guidelines permitting unconsolidated public utility vehicles (PUVs) to operate until Jan. 31 — a month-long grace period beyond the Dec. 31, 2023 consolidation deadline.

The Department of Transportation (DoTr) on Monday said only 40% of jeepneys in Metro Manila have consolidated their franchises under the PUVMP. Nationwide, the numbers reached approximately 70%.

The year-end deadline for the application for consolidation pushed through despite opposition from transport groups and a pending Supreme Court petition.

Mr. Lazaro argued that the grace period is insufficient to address their demands as no amendments to the franchise consolidation component of the PUVMP have been made.

In a separate interview on the sidelines of a year-end protest against franchise consolidation under the PUVMP in Manila last week, members of the Kabataan Partylist declared opposition to the modernization plan.

“The Kabataan Party supports the strikes because the struggles of drivers are also the struggles of commuters,” said Party member Carmela Aldip in Filipino. “Fare increases may occur because of the program which adds difficulty for students who depend on their parents.”

Progressive-leaning think tank IBON Foundation last month said that jeepney fares could surge up to fivefold, attributing it to the percentage of consolidated public utility vehicles nationwide.

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