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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

Marcos touts Calabarzon projects

President Ferdinand R. Marcos, Jr. on Thursday distributed aid to farmers and fisherfolk in Dasmarinas, Cavite, where about 12,000 families benefited. The President said his government has spent about P10 billion for development projects in the Calabarzon region. — PPA POOL / MARIANNE BERMUDEZ

PRESIDENT Ferdinand R. Marcos, Jr. on Thursday said his government has spent about P10 billion for development projects in the Calabarzon region.

“From 2023 to 2024, we have given almost P10 billion for the Philippine rural development plan here in Region 4-A,” he said in a speech at an assistance distribution for farmers and fisherfolk in Batangas province.

“We are continuously working to boost the economy of Calabarzon.”

Projects in the region include the Taal Lake circumferential road and Lobo Malabrigo-San Juan Laiya Road in Batangas province and the Quipot irrigation project and Macalelon irrigation project in Quezon province, he said.

Meanwhile, in his visit to Cavite province, Mr. Marcos said the Light Rail Transit (LRT) Line 1 Cavite Extension project is nearing completion.

“The Cavite-Laguna Expressway-Cavite Segment and the South Luzon Expressway Toll Road 4 are also under construction,” he added.

In his Calabarzon trips, Mr. Marcos led the distribution of P10,000 cash aid to beneficiaries from the provinces of Batangas, Laguna and Quezon.

Batangas province also got 24.04 million, while Quezon and Laguna each received P28.81 million and P17.42. — Kyle Aristophere T. Atienza

Makabayan to field Senate bets

AN ACTIVIST group at the House of Representatives on Thursday said it will field 12 senatorial bets in the 2025 midterm elections, vowing to reject factions within the ruling Marcos coalition. 

In a statement, Koalisyong Makabayan said it would stand as “the people’s opposition” amid the growing rift between the group of President Ferdinand R. Marcos, Jr. and the family of ex-President Rodrigo R. Duterte.

“Makabayan is prepared to field not just one or two senatorial candidates but a full Senate slate of nationalist and progressive candidates who will push for a comprehensive national democratic program,” it said.

At a separate briefing, Makabayan member and former Party-list Rep. Neri J. Colmenares said the group would popularize an anti-war campaign amid tensions in the South China Sea.

Makabayan has been critical of both China and the US. — Kyle Aristophere T. Atienza

Bayan to burn effigies at SONA

ACTIVISTS and campaigners for various sectors march along Commonwealth Avenue in Quezon City on July 25, 2022 ahead of President Ferdinand R. Marcos, Jr.’s first State of the Nation Address. — PHILIPPINE STAR/ RUSSELL PALMA

BAGONG Alyansang Makabayan (Bayan) on Thursday said it would burn effigies at rallies during President Ferdinand R. Marcos, Jr.’s state of the nation address (SONA) before Congress later this month despite a warning from the Quezon City police.

“Burning of effigies is protected speech,” Bayan Secretary-General Raymond V. Palatino said in a statement. “It reflects people’s outrage over the gross incompetence and grave abuses of the Marcos government.”

He noted that the city prosecutor had dismissed a lawsuit filed by the Quezon City police over the burning of an effigy during a similar protest last year.

“Authorities are desperate in discouraging people to join the SONA protest by spreading fear and intimidating the public, but we will defy and resist it,” Bayan said. “We will burn an effigy of Marcos who represents the biggest scourge in the country today.”

Meanwhile, Vice-President Sara Duterte-Carpio said she would not attend Mr. Marcos’ third SONA. — Kyle Aristophere T. Atienza

Teen pregnancy bill passage urged

PIXABAY

POPULATION groups on Thursday asked senators to approve the Adolescent Pregnancy Prevention bill before Congress adjourns this month, saying teen pregnancies are a major barrier to human development.

“If the government can only optimize its working age population by employing them or utilizing human capital, they can accelerate socioeconomic development,” Lolito R. Tacardon, deputy executive director of the Commission on Population and Development, told a forum.

“Teenage pregnancy is one of the barriers to human capital development, and its impact is not only immediate; it has a lifelong implication.”  

Data from the local statistics agency showed that the number of live births among girls aged 14 and below jumped by 35.13% to 3,135 in 2022 from a year earlier.  Live births by women aged 19 and below rose by 10.15% to 150,138.

The Philippines loses P33 billion in potential income annually due to teen pregnancy, the United Nations Population Fund (UNFPA) said in a 2020 study. — Beatriz Marie D. Cruz

2 pupils missing after floods

COTABATO CITY — Rescuers were still searching for two grade school students swept away by rampaging floods that hit four Bangsamoro towns on Tuesday night, according to the Office of Civil Defense.

The floods destroyed hundreds of houses and ravaged swaths of agricultural lands.

The agency and Ministry of Social Services and Development and local governments in Matanog in Maguindanao del Sur and in Malabang, Balabagan and Kapatagan, all in Lanao del Sur, were distributing aid to about 10,000 villagers affected by the calamity.

The floods that hit the predominantly Moro villages were preceded by torrential rains early on Tuesday. — John Felix M. Unson

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