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BoI approves investments worth P950 billion in first six months

THE Board of Investments (BoI) said on Thursday that it approved P950 billion worth of proposed projects in the first six months.

The first half total is up 36.1% from a year earlier, the BoI said in a statement.

The bulk of the investments approved in the six months to June were from domestic sources, while 30%, or P286 billion, originated from overseas.

Trade Secretary and BoI Chairman Alfredo E. Pascual said that despite a 37% drop in foreign direct investment (FDI) for the period, he remains optimistic with the investment pipeline continuing to build up.

“Our confidence in the Philippine economy remains unshaken, supported by a 19% increase in FDI over the first four months of the year compared to last year,” Mr. Pascual said.

“We are also banking on the investment pipeline built from the BoI’s high level of foreign investment approvals,” he added.

The central bank reported on Wednesday that FDI net inflows slumped to a 10-month low in April to $556 million from $881 million a year earlier.

Meanwhile, four months to April FDI net inflows rose 18.7% to $3.53 billion.

Renewable energy investments continued to account for the biggest portion of the approvals, with the electricity, gas, steam, and air conditioning supply sectors making up 96.3% of the total.

The agriculture, forestry, fishing, and real estate industries also saw growth in potential investments during the period.

Region IV-A (Calabarzon) accounted for P592 billion of the approvals. Other top destinations were Region VI (Western Visayas) and Region III (Central Luzon).

For the Philippines to keep attracting global investments, Mr. Pascual cited the need for continuous promotion and streamlining of administrative processes.

“Our strategic focus on enhancing the ease of doing business and providing robust support for high-potential sectors is more crucial than ever,” he said.

“These efforts are pivotal in ensuring the Philippines remains a top-tier investment hub in Asia,” he added. — Justine Irish D. Tabile

10 Israeli firms looking into PHL agritech investments

REUTERS

By Adrian H. Halili, Reporter

THE Israeli ambassador said 10 companies from his country are currently considering agriculture technology ventures in the Philippines, noting the opportunity to raise production in rice, which the Philippines currently needs to import, and in high-value crops, where export potential is limited due to inadequate volumes.

“The challenge here is more about identifying resources in order to have the joint ventures, or co-investments,” Ambassador Ilan Fluss said on the sidelines of an agriculture forum on Thursday.

He added that Israeli companies have taken note of the challenges the Philippines is experiencing in rice and various high-value crops, to the extent that farmers cannot meet domestic demand.

The Philippines imports 20% of its rice requirement. It also imports, among others dairy, meat, and corn, where domestic production falls short of demand.

“Through implementing innovative technologies, productivity can grow,” he said.

He described the potential investors as representing “a wide range,” though some of them “are really new to the market and looking for new opportunities as part of their global expansion.”

He said Israeli companies can supply agricultural technology or services with the help of local partners.

He noted that the rate of technological adoption by small-scale farmers has been slow.

“I do recognize that really small-scale farmers, especially in the rice sector, have difficulty engaging in modern or commercial farming,” he said, noting the broader difficulties in integrating such farmers into the mainstream economy.

Raw sugar exports to US seen shipping out by Aug.

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THE Sugar Regulatory Administration (SRA) said it plans to allow exporters to start deliveries of raw sugar by August to meet the US quota.

SRA Administrator Pablo Luis S. Azcona quoted the sugar industry as saying that increased production will allow it to meet the US quota of 25,000 metric tons (MT).

According to the SRA, raw sugar production was 1.92 million metric tons (MMT) as of May 12, exceeding the 1.799 MMT brought in a year earlier.

“Sugar exports need to arrive (in the US) by September… they should start shipping out by August,” he said in a briefing on Thursday.

Mr. Azcona added that the SRA had sent out a draft sugar order (SO) to the industry for comment.

“After that, the board will deliberate on all the comments and suggestions, and we will come up with an SO for it,” he said.

The US grants the Philippines an export quota of 25,300 metric tons raw value of raw sugar at a favorable tariff. The Philippines has until Sept. 30 to fill the quota.

Exports of raw sugar to the US are optimized to stabilize prices during times of overproduction.

“This year, we didn’t do it in January-February because the US quota was issued in April. For now, so that we will not be a default of our commitment to them, we will export,” Mr. Azcona added.

During crop year 2023-2024, all raw sugar was classified “B” sugar or for domestic consumption, according to SO No. 1.

The Philippines last shipped raw sugar to the US during the 2020-2021 crop year, amounting to 112,008 MT of commercial weight raw sugar. The country has not exported sugar to the US since then due to domestic supply concerns.

The SRA has said that exporters have prequalified for the planned export program after participating in the voluntary purchase program authorized by SO No. 2.

The order called for the voluntary purchase of domestically produced sugar in order to stabilize farmgate prices. Participants were also eligible for an allocation in a future import program.

He said that about 20 exporters have volunteered to meet the US export quota, but cited the need for a replenishment program through imports.

The SRA’s replenishment program allows exporters of raw sugar to the US to import refined sugar in approved volumes.

Last month, the Department of Agriculture said it was planning to allow imports of about 200,000 MT of refined sugar to plug a possible supply gap before the start of the milling season on Sept. 15. — Adrian H. Halili

US energy storage company plans $100-M expansion, negotiating to use PHL facility

PHILSTAR FILE PHOTO

ILOILO CITY — US-based energy storage firm Amber Kinetics said that it is looking to invest at least $300 million for its expansion, including a $100-million capacity expansion for the Philippines.

At the US Embassy’s 16th Media Seminar on Tuesday, Amber Kinetics Chief Executive Officer Edgar O. Chua said that a further $200-300 million in investments will be made in the US.

“We are currently (fund-raising) both in the US and in the UK – London and New York, essentially,” he said, adding that it is seeking to tap sovereign wealth funds and investment companies.

Asked about plans to list, he said: “The initial public offering may come three to five years down the road once the company has demonstrated sustained profitability and growth because then we will have good pricing.”

Amber Kinetics’ expansion in the Philippines involves a four-and-a-half-hectare site where the company’s third plant will rise. It is targeted for completion by 2025.

“That plant will have a capacity of maybe 30,000 units, so together with our existing facility, which has a capacity of about 10,000 units, the Philippines will have a capacity of about 40,000 units,” he said.

However, he said that the expansion is still at the due diligence stage, with negotiations ongoing with the site owner, adding that the site used to be operated by a South Korean manufacturer.

For its expansion in the US, Mr. Chua said that the target is for its plant there to be operational in 12–18 months.

“We have prioritized about five to 10 areas in the US, and we are looking at putting up maybe two or three plants,” he said.

He said that the number of plants that it will put up in the US will depend on the company’s profits but noted that each plant in the US will have a capacity of 40,000 to 50,000 units.

Meanwhile, he said that there are also plans to put up a plant in Australia.

Amber Kinetics currently operates two manufacturing plants in economic zones in Batangas. — Justine Irish D. Tabile

Philguarantee expands portfolio by 28.82%

PHILIPPINE GUARANTEE Corp. (Philguarantee) grew its portfolio by 28.82% in 2023 to P236.98 billion, with its activities remaining focused on facilitating credit to socialized or low-cost housing projects, small businesses, and small-scale farmers and fisherfolk, the Department of Finance (DoF) said.

In a statement, the DoF said Philguarantee, a government-owned and -controlled corporation (GOCC), estimates that its credit facilitation activities reached 426,378 beneficiaries.

Philguarantee revenue rose 103% to P5.32 billion in 2023, generated primarily from guarantee fees and premiums, commitment fees, and the sale or rental of real estate.

Dividends remitted to the National Government rose 224.4% to P2.42 billion.

The GOCC also expanded its network of partner lending institutions to 152 in 2023 from 131 a year earlier, the DoF said.

“This robust performance is a testament to our country’s strong credit guarantee system,” Finance Secretary Ralph G. Recto was quoted as saying in the statement.

Philguarantee was created after five Philippine Guarantee Programs and Agencies (PGPAs) were consolidated in 2019 under Executive Order No. 58.

The GOCC provides credit guarantees to improve loan access of micro-, small- and medium-sized enterprises, exporters, infrastructure and energy projects, agricultural businesses or farm modernization projects, housing, tourism, and other parts of the economy.

Philguarantee is modifying its charter to continue integrating the merged PGPAs.

These include the Home Guaranty Corp., Agricultural Guarantee Fund Pool, Industrial Guarantee Loan Fund, the guarantee operations of the Small Business Corp., and the Philippine Export-Import Credit Agency.

“The changes will enable the Philguarantee to be more responsive to its mission of providing credit supplementation and its development financing objectives, particularly in key economic areas, where jobs and livelihood creation will be most felt,” the DoF said.

It also seeks to enhance its portfolio management, digitalization efforts, and personnel development as outlined in its Strategic Pillars and Sustainable Institutional Goals for 2023 to 2025, the DoF added. — Beatriz Marie D. Cruz

JLL positive on manufacturing as MNCs diversify supply chains

REUTERS

REAL ESTATE and investment management firm JLL said that the Philippines has the potential to grow its manufacturing sector as multinational companies (MNCs) diversify their operations away from China.

“Southeast Asia (SEA) and India stand to be net beneficiaries of companies diversifying manufacturing capabilities to complement existing bases in China,” JLL said in a statement on Thursday.

“For decades, China has dominated global manufacturing. However, companies are increasingly diversifying their operations elsewhere, adding manufacturing bases outside of China to hedge against supply chain disruptions,” it added.

Citing multiple sources, JLL said that the primary accelerator of the move outside China is the rising costs in the Mainland.

“Higher demand for industrial land, coupled with rising wages and material costs, has also pushed up land prices in China, which can be up to two times higher compared to some SEA countries and India,” it said.

“Furthermore, factors such as skilled labor, infrastructure, environmental regulations, proximity to suppliers and customers, and political stability contribute significantly to a factory’s long-term success and sustainability,” it added.

JLL said that although China still holds the biggest share of manufacturing foreign direct investment in the region, India and Vietnam are catching up.

In the Philippines, JLL identified the semiconductor and electronics and electrical industries as opportunities for attracting manufacturing investment.

“The Philippines is one of the seven countries that the US partnered under the CHIPS Act, which aims to expand and diversify the US semiconductor supply chain,” it said.

Within the semiconductor industry, the key activities JLL identified as having potential were assembly and testing services, integrated circuits, and RF (radio frequency) or microwave chips.

For the electronics and electrical industry, the key products were consumer electronics, industrial electronics, and telecommunication equipment.

JLL said the Philippines is implementing more policies that aim to boost its manufacturing industries, making land availability and access to capital sources critical.

In the Philippines, JLL said these enabling policies include the administration’s Build Better More program, which is expected to boost efficiency and productivity.

“Each economy in Southeast Asia is at a different level of its manufacturing story, but we can confidently say that policymakers are extremely keen to take advantage of diversification initiatives in supply chains,” said Peter Guevarra, JLL’s director for research consultancy in Asia-Pacific.

“Companies need to carefully evaluate various factors such as costs, market access, infrastructure, labor, and governmental support before determining their global manufacturing investment strategies,” he added. — Justine Irish D. Tabile

Record debt highlights need for efficient collection

REUTERS

THE GOVERNMENT must enhance revenue generation and ensure efficient spending to sustainably manage its debt over the medium term, GlobalSource Partners said.

“This is one big challenge to the Philippine government: to sustain its medium-term fiscal consolidation plan in order to minimize the need for borrowing and servicing both principal and interest,” GlobalSource country analysts Diwa C. Guinigundo and Wilhelmina Manalac said in a brief.

The National Government (NG) borrows from domestic and foreign resources to fund operations which cannot be supported from its revenue.

At the end of May, NG outstanding debt rose to a record P15.35 trillion from P15.02 trillion at the end of April, with 68% of the debt generated from domestic sources and 31.96% from foreign sources.

“Fiscal and debt sustainability can only be achieved if public revenue is maximized through appropriate taxation,” the analysts said.

“If this is not accomplished, the encouraging trend in public debt may be unsustainable over the medium term.”

Rizal Commercial Banking Corp. Michael L. Ricafort said encouraging tax compliance and expanding economic growth will help the country manage its debt.

“Priority would be the intensified tax collections from existing tax laws and encouraging compliance with the payment of the correct taxes and to run after tax cheats. The last option would be new and higher taxes, especially if inflation stabilizes in the coming months/years,” he said via chat.

Debt may also be curbed through government rightsizing and anti-corruption measures, he added.

In its latest meeting, the Development Budget Coordination Committee (DBCC) maintained its deficit projection for this year at P1.48 trillion, equivalent to 5.6% of gross domestic product (GDP).

For 2025, the DBCC raised the deficit ceiling to P1.537 trillion from P1.490 trillion, pushing the deficit-to-GDP projection to 5.3%, and to 3.7% by 2028.

Faster GDP growth would also help bring the national debt-to-GDP ratio to below 60%, the threshold deemed sustainable for developing countries by multilateral banks, Mr. Ricafort said.

The debt-to-GDP ratio currently stands at 60.2%.

Before the pandemic, the NG’s outstanding debt averaged P6.9 trillion, growing at an average of 8.3% yearly between 2016 and 2019. — Beatriz Marie D. Cruz

DoJ told to look into case of missing fisherman in Sunday’s hit and run

PHOTO shows a fisherman near the Scarborough Shoal in the South China Sea on May 16, 2024. — PHILIPPINE STAR/MIGUEL DE GUZMAN

A PHILIPPINE senator has asked the Department of Justice (DoJ) and Philippine Coast Guard (PCG) to investigate the case of a Filipino fisherman who went missing after his wooden boat was hit by a vessel with Chinese characters near Scarborough Shoal in the South China Sea on Sunday.

In a statement, Senate Majority Floor Leader Francis N. Tolentino said he had written to the agencies asking them to help the fisherman’s family and step up efforts to find him.

“The search continues, and we hope for the rescue operation to be successful,” the lawmaker said. “We will find out where the ship that bumped into the fishing boat is registered.”

He earlier told a news briefing that Philippine Coast Guard Admiral Ronnie Gil L. Gavan sent him a text message on Tuesday saying the agency had been looking for Jose Mondeñedo, who went missing on July 7 after a commercial boat with Chinese letters collided with his fishing boat.

Mr. Gavan said the coast guard had rescued his brother Roberto, who was also caught in the collision, the senator told a news briefing on Tuesday.

Mr. Tolentino earlier said the government would likely work with the International Maritime Organization to find which vessel was responsible for the incident.

The Senate in February approved on third and final reading a bill that will set up maritime zones and territories in the South China Sea and Benham Rise in the West Pacific.

The bill, which he has sponsored, also seeks to penalize foreign actors in these maritime zones with fines of at least $600,000 (P35 million) payable to the Philippine government.

The South China Sea is a conduit for more than $3 trillion worth of ship-borne commerce each year and is a major source of tension between the Philippines and China.

Mr. Tolentino earlier filed a bill setting a fine of as much as P10 million against ships that fail to help vessels and people in distress within the Philippines’ exclusive economic zone in the waterway.

China’s coast guard this week said it had on humanitarian grounds “allowed” the Philippines to evacuate a person who had fallen ill on a rusting warship beached on the Second Thomas Shoal, a claim Manila’s coast guard said was “ridiculous.”

“This statement confirms their illegal deployment of vessels within our EEZ (exclusive economic zone) and highlights their government’s view that the preservation of human life and welfare requires approval,” Philippine Coast Guard (PCG) spokesman Jay Tristan Tarriela said on X.

In a statement, the Chinese Coast Guard said it had monitored the entire rescue operation on Sunday, which a spokesperson said was made at the request of the Philippines.

The Philippine coast guard then reported “numerous obstructing and delaying maneuvers” by China’s coast guard while it carried out the medical evacuation.

A month ago, the PCG accused its Chinese counterpart of blocking a medical evacuation from the warship, calling the actions “barbaric and inhumane.”

China’s Foreign ministry said on the same day that China would allow the Philippines to deliver supplies and evacuate personnel if Manila notifies Beijing ahead of a mission.

The Philippines has soldiers living aboard a rusty, aging warship at Second Thomas Shoal, which Manila grounded in 1999 to reinforce its sea claims.

China’s navy has clashed several times with Philippine forces seeking to resupply the grounded ship.

A United Nations-backed tribunal based in the Hague in 2016 voided China’s claim to more than 80% of the South China Sea for being illegal. Beijing has ignored the ruling. — John Victor D. Ordoñez

Marcos vetoes police reform bill

PHILIPPINE STAR/EDD GUMBAN

PRESIDENT Ferdinand R. Marcos, Jr. has vetoed a bill seeking to reform the Philippine National Police (PNP), citing loopholes including a provision that goes against his government’s rightsizing push.

Mr. Marcos wants to ensure that any changes in the police force are “fair, clear and truly beneficial to everyone involved,” Executive Secretary Lucas P. Bersamin said in a statement on Thursday.

He said the bill pushes changes to police salaries that “could cause unfair disparities among officers.”

“The President believes it is essential to maintain fairness and equality in compensation for all members of the PNP,” he said.

He added that the bill could lead to unnecessary bureaucracy and inefficiency because it creates new offices under the PNP.

“Our administration’s goal is to streamline operations, not complicate them,” Mr. Bersamin said. “Furthermore, adding more liaison offices could pose security risks. The current structure already provides robust oversight and coordination.”

He said proposed changes to the Internal Affairs Service (IAS), which investigates police misconduct, could compromise its independence.

“Moreover, some parts of the bill are unclear, particularly regarding retroactive benefits for officers. The bill should avoid any confusion and ensure consistent application of rules,” he added. — Kyle Aristophere T. Atienza

Former palace spokesman threatens to sue for libel

HERMINIO “HARRY” L. ROQUE — PHILSTAR FILE PHOTO

EX-PRESIDENT Rodrigo R. Duterte’s former spokesman has threatened to sue several local newspapers for cyberlibel, accusing them of misreporting the gaming regulator’s testimony at a Senate hearing the day earlier.

In a Facebook post, former palace spokesman Herminio “Harry” L. Roque belied news reports that Philippine Amusement and Gaming Corp. (Pagcor) Chairman and Chief Executive Officer Alejandro H. Tengco had testified that he “lobbied for illegal POGOs (Philippine Offshore Gaming Operations).”

“This is a complete fabrication and a serious misrepresentation of the facts.”

Mr. Tengco on Wednesday told senators Mr. Roque lawyered for Lucky South 99, a POGO that authorities have linked to human trafficking, last year.

They later met to discuss the POGO’s unpaid taxes worth $500,000 (P29 million) in July last year, among other things.

Mr. Tengco said Mr. Roque was “not demanding,” adding that he did not feel pressured to do anything. “As a lawyer, he was probably just accompanying his client.”

“He confirmed that my interaction with Pagcor was solely to schedule a payment for Lucky South 99, which held a valid license from Pagcor at that time,” Mr. Roque said in his social media post.

The ex-Duterte spokesman on Wednesday denied lawyering for the Lucky South, whose hub was raided by law enforcers last month.

“I requested a rescheduling of arrears payment of a lessee and principal of my client Whirlwind Corp., a service provider to Lucky South, then a holder of a valid license from Pagcor,” he said in a Facebook video.

“I did not consent to nor was I informed of my name’s inclusion in any submission by Lucky South with Pagcor concerning license renewal,” he added.

He said he had met with Pagcor officials because he thought Lucky South 99 had fallen victim to estafa.

“As a lawyer, I could not directly engage with the POGO because of a potential conflict of interest and given the soured lease contract between Whirlwind and Lucky South,” Mr. Roque said.

At the Senate hearing, Mr. Tengco showed the organizational chart of the offshore gambling firm, which listed Mr. Roque as being part of “legal.”

Senator Ana Theresia N. Hontiveros, who heads the committee on women and children, invited Mr. Roque to the next hearing.

Meanwhile, Senator Emmanuel Joel J. Villanueva urged his colleagues to prioritize a measure that seeks to ban all forms of online gambling operations in the country, including POGOs, which have been linked to crimes.

In a statement, he said state revenues from online gambling and offshore gaming are not worth pursuing if crimes persist.

He also urged President Ferdinand R. Marcos, Jr.’s economic managers to discuss proposals to ban POGOs.

“From the very start until now, we believe that these do not bring any benefits,” Mr. Villanueva said in Filipino. “We owe it to our countrymen to prioritize their safety and welfare from any danger.”

In 2022, Mr. Villanueva filed Senate Bill No. 1281, which seeks to outlaw all forms of online gambling. The measure has yet to be tackled by a Senate committee.

Under the measure, people who gamble on the internet face six months of jail time and a fine of as much as P500,000. It will also repeal all laws, executive orders and other rules authorizing online gambling.

“The consequences of gambling and online gambling are too severe to be ignored,” Mr. Villanueva said in the bill’s explanatory note. “The cost of gambling is no longer limited to the loss of money, but extends to the loss of values and lives.”

Congress under former President Rodrigo R. Duterte passed a law taxing POGOs to legalize them, despite concerns about their social costs. Chinese President Xi Jinping had asked him to ban their operations.

Finance Secretary Ralph G. Recto on Monday said he would consider recommending the ban of these gambling operations, mostly Chinese firms that operate online casinos, to Mr. Marcos.

Philippine authorities have raided POGOs allegedly linked to crimes including human trafficking.

The Philippine Amusement and Gaming Corp. earlier said the government could lose P20 billion in yearly revenues if POGOs are banned. — John Victor D. Ordoñez and NPA

DoJ, UP and UN body agree to enhance probe of prisoners’ deaths

PHILIPPINE STAR/ MIGUEL DE GUZMAN

THE PHILIPPINES’ Department of Justice (DoJ) on Thursday signed a declaration with the University of the Philippines (UP)-Manila College of Medicine and United Nations Office on Drugs and Crime (UNODC) to strengthen the investigation process on the deaths of prisoners.

Under the commitment, dead convicts in Bureau of Corrections (BuCor) facilities in Metro Manila, including the Correctional Institution for Women (CIW), will be immediately sent to UP Medicine facilities that oversee autopsies and death investigations.

BuCor Director-General Gregorio Pio P. Catapang, Jr. told reporters on the sidelines of the signing that under the deal, all dead inmates will be autopsied, not just those with suspicions of foul play.

UP will provide technical expertise to conduct autopsies on bodies, led by forensic pathologist Raquel B. Del Rosario-Fortun.

Ms. Fortun said prison deaths should be treated as a health concern. She added that authorities should not just look for foul play, but also consider if those were preventable deaths.

She sought better healthcare for prisoners, noting that they should be accorded dignity even in death.

“Based on my professional experience both as a public defender and as a UN diplomat, when we help countries strengthen their forensic sciences, they are able to bring accountability in and out of government and across society and build the confidence of the citizens in the integrity of their government when they see justice served,” UNODC Regional Director Masood Karimipour said at the signing ceremony.

BuCor registered more than 4,600 prisoner deaths from 2020 to June 30, 2024. This year, BuCor counted 487 deaths, Mr. Catapang said.

The DoJ said the declaration emphasized the importance of the 2016 Revised United Nations Manual on the Effective Prevention and Investigation of Extra-legal, Arbitrary and Summary Executions, or the Minnesota Protocol.

The document helps direct the investigation of custodial deaths. — Chloe Mari A. Hufana

PHL, Cambodia eye investments

PHILIPPINE Ambassador to Cambodia Flerida Ann Camille P. Mayo on Wednesday met with Cambodian Senate President Techo Hun Sen to discuss boosting investments in the food and beverage, retail, health and education sectors between both countries, according to the Philippine Embassy in Cambodia.

“It bodes well for our countries’ friendship that our leaders have set the directions to expand our partnership for mutual benefit,” the envoy told Mr. Hun Sen, based on an embassy statement.

The embassy said the envoy and lawmaker discussed their countries’ ties in tourism and cybersecurity, international and regional issues.

It added that the Cambodian Senate leader had a “positive view” of Filipino workers and Philippine businesses in his country.

Philippine President Ferdinand R. Marcos, Jr. met with Cambodian Prime Minister Hun Manet on the sidelines of the 50th Association of Southeast Asian Nations-Australia Special Summit in March, where both agreed to work on rice deals and tourism. — John Victor D. Ordoñez

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