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RBA holds rates steady in Lowe’s last policy meet

REUTERS

SYDNEY — Australia’s central bank on Tuesday kept interest rates steady for a third month at the last meeting chaired by Governor Philip Lowe, encouraging speculation the tightening cycle was over as policy makers indicated they have a firmer grip on prices.

Wrapping up its September policy meeting, the Reserve Bank of Australia (RBA) held rates at 4.1%, and said recent data were consistent with inflation returning to the 2-3% target range in late 2025. It reiterated that further tightening may still be required to bring inflation to heel.

Markets and economists had wagered on a steady outcome after a batch of economic data — including inflation, wages and jobs – came in below expectations and offered no compelling reason to restart the tightening cycle.

The Australian dollar extended earlier losses to be 1.2% off to $0.6384, the lowest in more than a week. Markets moved to trim bets of one last hike before the yearend to just 30% from around 36% early in the session.

A majority of economists polled by Reuters still expect one more hike by the end of the year after the third quarter inflation report, which is likely to point to lingering price pressures.

“Inflation is coming down, the labor market remains strong and the economy is operating at a high level of capacity utilization, although growth has slowed,” said Mr. Lowe, who will be handing over the reins to his deputy Michele Bullock on Sept. 18.

Mr. Lowe said the board will continue to monitor the global economy — noting uncertainty with the Chinese economy, household spending, and the outlook for inflation and the labor market to see if further tightening would be needed.

He warned that prices of many services are rising briskly and rent inflation was also elevated.

Minutes of the August meeting showed the central bank now sees a credible path where inflation would return to the target band in 2025, with interest rates at their current level, implying the hurdle to another hike is high.

‘EXTENDED PAUSE’
The incoming governor Ms. Bullock last month struck a similar tone to Mr. Lowe, saying rates may need to rise again and policy makers would be watching data and decide on rates on a monthly basis until at least the end of this year.

“Recent data has fallen the way the RBA would have hoped,” said Tony Sycamore, market analyst at IG.

“While RBA Governor Lowe may have been slow to start hiking rates, he departs with his head held high, knowing that much of the heavy lifting required to bring inflation under control is in place ahead of Michele Bullock’s tenure.”

Consumer inflation eased by more than expected to 4.9% in July, while soft wages data suggest the chance of a much feared price-wage spiral is low and the red-hot labor market might be at a turning point.

The RBA has jacked up interest rates by a whopping 400 basis points since May last year, with the cash rate sitting at 11-year highs, but the full impact of the tightening is only being felt now as inflation eases and economic growth slows.

Data on Tuesday showed the Australian economy got a boost from net exports and government spending in the second quarter, greatly lessening the risk of a contraction in gross domestic product (GDP). The second-quarter GDP data is due on Wednesday.

However, growth is set to stay subdued, with analysts expecting GDP to have expanded by a meager 0.3% in the quarter as consumers tightened their belt in the face of high cost of living and rising mortgage repayments.

“Overall, we see nothing in today’s decision or statement to push us off our view that the RBA is on an extended pause as it examines how the 400 bps of monetary tightening to date washes through the economy,” ANZ economists said in a note. — Reuters

Woody Allen hails ‘very lucky life’ as he presents 50th film

MELVIL Poupaud and Lou de Laâge in Coup de chance. —IMDB.COM

VENICE — US director Woody Allen presented his 50th film to the Venice Film Festival on Monday, telling reporters he had had a “very, very lucky life,” making no reference to the scandals that have dogged his later years.

“I have had nothing but good fortune and I hope it holds out, although obviously it is early this afternoon,” he told reporters ahead of the premiere of his first French-language film, Coup de Chance.

“I had two loving parents, I have good friends, I have a wonderful wife and marriage, two children. In a few months I will be 88 years old. I have never been in a hospital. I have never had anything terrible happen to me,” he said.

The four-time Oscar-winning director of Annie Hall and other comedies has had a turbulent personal life that has seen him increasingly shunned by many celebrities and executives in Hollywood.

He hit the headlines in the 1990s following his affair and marriage to Soon-Yi Previn, the adopted daughter of his former lover, Mia Farrow, as well as sex abuse accusations by their adopted daughter Dylan Farrow. He has always denied the accusations and was never charged.

Mr. Allen and Soon-Yi, who have a 35-year age difference, are still married and have two adopted daughters.

In a separate interview to Variety on the sidelines of the film festival, Mr. Allen said he supported the #MeToo movement, which has brought intense focus to sexual misconduct in the entertainment industry. But he added that it could also become “silly … When it’s being too extreme.” The Venice Film Festival was denounced by some critics for giving Mr. Allen a prestigious slot for his new movie, and a small group of protesters demonstrated noisily as he arrived on the red carpet ahead of the premiere of his film, chanting “abusers” and scuffling with police.

The red carpet arrivals continued unhindered and the group were soon removed from in front of the Lido cinema, witnesses said.

DEATH
Mr. Allen originally intended to cast US actors in the main roles, but said he had always been inspired by European filmmakers so was happy to switch languages, even though he doesn’t speak French.

“It was very simple. If you watch a Japanese film, you can tell if the acting is good, realistic and natural, or if it is dramatic and silly and too exaggerated. It is the same thing here,” he said.

Like many of his films, Coup de Chance draws inspiration from the themes of love, adultery, and death. However, Mr. Allen said it was not worth dwelling too long on death.

“There is nothing you can do about it. It is a bad deal and you are stuck with it,” he said.

Mr. Allen has previously suggested Coup de Chance might be his final movie. However, on Monday he said he had a good idea for a story based in his native New York and would make it if he could find a backer willing to accept his terms — not to read the script or to know whom he had cast.

“If some foolish person agrees to that, then I will make the film in New York,” he said. — Reuters

PHL startup ecosystem needs clarity in ‘nat’l vision’ to grow — think tank

DYLAN GILLIS-UNSPLASH

By Miguel Hanz L. Antivola

A COMPREHENSIVE and clearly outlined “national vision” for the startup ecosystem is needed to facilitate its growth, according to a Singapore-based think tank.

The Philippines, like many other countries, recognizes the potential of startups to drive innovation, economic growth, and job creation. To fully harness this potential, it is imperative to establish a roadmap that outlines the desired trajectory of the startup ecosystem, Peng T. Ong and Doris Magsaysay Ho, trustees of the Angsana Council, said in an interview with BusinessWorld.

“The most important thing for alignment is a clearly articulated vision — what it looks like for the Philippines five to ten years from now in terms of the sectors and industries we want to create and develop,” Mr. Ong said.

“You can systematically go through a high-level vision and ground it in the reality of what you need today for the next ten years,” he added. “I think it’s eminently possible, but someone needs to take the ball and run with it.”

The Philippines slipped two places, now ranking 59th out of 100 countries, in the 2023 edition of the Global Startup Ecosystem Index by the research center StartupBlink. With a score of 2.469, the Philippines is still the seventh-lowest scoring country among its peers in the Asia-Pacific region.

Mr. Ong noted that local investment funds are key to startups’ growth. “We could ramp that up. We could create policies that generate more funds to enable more startups.”

However, economic development initiatives need to be better aligned with processes treated like one would approach a business, according to Ms. Ho.

“Maybe we can put money in building new technology that we own,” she said on the proper allocation of government funds for a unified growth approach.

The country must come up with specific, grounded goals that maximize the abundant resources, according to Ms. Ho. “We actually do have a lot of the aspects. We just have to put it together.”

Mr. Ong cited the Philippines aiming to become the artificial intelligence (AI) hub in Asia as an example.

“Maybe every year in the next five to ten years, there is an AI-based services company that IPO’s (initial public offering) as a unicorn,” he said on a daring vision grounded in reality. “How many companies should start up today? How much fund? Do I have enough people?”

“Because we have a huge BPO (business process outsourcing) industry, a fund can be put together to bring in all kinds of startups looking for AI solutions,” Ms. Ho added.

“Just get clear with the results you want and how it is going to help the industry or replace parts of it,” Mr. Ong said.

Mr. Ong and Ms. Ho said that a structure for startups, in which the government provides the funds and the private sector takes action, can help ideas flourish, similar to the technology innovation incentives and schemes in Singapore.

“We have to copy those things that work because it’s better to have the government fund the decision made by someone who knows what they’re doing, who has skin in the game.”

While taking inspiration from other countries and how they manage their startup ecosystem, Mr. Ong and Ms. Ho mentioned the need to strengthen diaspora and academic participation.

“The diaspora is a grossly underestimated strength of the Philippines,” Mr. Ong said. “If you can inspire three or five percent of global Filipino top-notch executives to have the vision of what this country can be, get them back here, and help them, I think it’s a no brainer.”

“Give them the sense of mission to come back and bring the country forward,” Ms. Ho added. “If the Vietnamese and Indians can do it, why not the Filipinos?”

Ms. Ho said that the academe plays an important role as incubators of thought for anyone to come up with the next bright solution to the country’s problems and beyond.

“The problems in Indonesia, Thailand, and Vietnam are not that different from those in the Philippines,” Mr. Ong said.

“There’s a whole market that could be ready for companies, products from here going out towards not just Southeast Asia but the rest of the emerging markets, from Africa to South America.”

Education priorities

STUDENTS of Aurora Aquino Elementary School in Malate, Manila attends their first day in school. — PHILIPPINE STAR/EDD GUMBAN

Vietnam’s great leader Ho Chi Minh is quoted to have said that if the plan is for 10 years, we should plant trees. But if the plan is for 100 years, we should invest in our people. To this day, “Uncle Ho” inspires the Vietnamese who are becoming more and more prosperous with time. Already, they have replaced our country as the second biggest coffee producer in the world. In fact, we are importing coffee from them now to cover the shortfalls in our coffee processing plants.

More significantly, Vietnam has been scoring among the highest in Southeast Asia in student competence tests, while we are lagging way below. Of course, we already know that we have been importing rice from them. We must be doing something wrong; and they must be doing something right.

Our Vice-President, who also heads our Department of Education, has asked Congress for P150 billion in confidential intelligence funds. These are monies which do not need to be accounted for. Vice-President Sarah Z. Duterte says that education is closely linked to national security. Meanwhile, the Commission on Audit has disclosed that the Office of the Vice-President spent an average of P7 million a day during the Christmas season last year. The funds came from a contingent fund that is still to be accounted for.

Meanwhile, we have a classroom shortage of almost 170,000 rooms, and a teacher shortage of 80,000. And we are concerned with the ideology of our youth? Vietnam has a successful communist government; why are we worried about so called “leftists”?

This is a country with almost half of the population living below the poverty line, including about 40% experiencing involuntary hunger. There is still much injustice and corruption in our flawed democracy. We should be proud if the best and the brightest of our youth are advocating more equitable and pro-poor policies. The status quo is full of injustice. An Englishwoman once said that if you are 20 years old or less and you are not left-leaning, then you have no heart.

As a constitutional democracy, our national security apparatus should protect the will of the people. And if that will is left-leaning, so be it. Communism, after all, is no longer illegal in our country. In advanced democracies such as Great Britain, the leftists are represented in Parliament; and they have to be legally contended with by whoever is in power. In our own Congress, we should be glad there are so-called left-leaning members. They are the least likely to be guilty of graft and are generally independent of the powerful presidencies. Moreover, the pressure they exert against unjust legislation and social injustices has helped protect the powerless.

Our Constitution provides for education to have the biggest share in our National Government’s budget. Rightly so. But we need to seriously review the effective use of this money that is intended to enhance the potential of our people. Why are we doing so badly in comparison with our neighbors?

For instance, there is too much emphasis on the acquisition of knowledge, rather than skills. Reading and mathematics, in which we do so poorly, call for the sharpening of skills, rather than quantity of knowledge. In this day and age of internet access to information and data, what we should instead sharpen is skills in independent research, or know-how on finding knowledge. Independent research helps enhance critical thinking, which our graduates don’t seem to have enough of.

Of course, we should include orientations on social and civic responsibility. This is something that can be better developed during class discussions or simulations, rather than just lectures. This will perhaps help improve the critical thinking of our voters and lead to more responsible political leaders.

I have been a teacher in schools and at the workplace. I find that students and new hires need to be challenged to think. They have been so used to feeding back what the teachers have lectured on or what their boss tells them to do. It takes about a year or more to radically convert their mindsets; but it is possible. I have facilitated the conversion of corporate culture into a more participative and empowered one which turned a struggling, small ad agency into what is now part of the biggest ad agency in the country. My high school students in a provincial town became champions in many provincial academic competitions because I challenged them to think and take initiatives.

But it will take a radical change in teaching methods to convert teachers into making use of student-centered learning methodologies.

For a start, teacher education institutions such as normal schools should radically transform the way our teachers educate our youth. Instead of depositing information in the minds of the students as in “banking,” they must learn to facilitate and enhance the learning experience of their students.

We will have to reduce the number of subjects required in schools, and enrich the impact of facilitated skills-based learning as human development objectives. There should be less emphasis on “objective” tests for the sake of computing grades, and more attention to class participation in discussions.

Perhaps the conversion has to start with the Secretary of Education who seems more concerned about “national security.” Otherwise, it is frightening to consider what kind of president she can be, given her close proximity to the highest leadership post in the land. The Education Secretary’s big policy decision for instance, has been to ban visual aids on the walls of classrooms! Alas.

 

Teresa S. Abesamis is a former professor at the Asian Institute of Management and Fellow of the Development Academy of the Philippines.

tsabesamis0114@yahoo.com

How much did each commodity group contribute to August inflation?

HEADLINE INFLATION accelerated for the first time in seven months in August, amid a spike in the prices of rice, vegetables and fuel, the Philippine Statistics Authority (PSA) said on Tuesday. Read the full story.

How much did each commodity group contribute to August inflation?

Filinvest Land tops off Cainta condo building

FILINVEST LAND, Inc. has topped off Building B of its mid-rise community under its brand for smart-value and family-oriented development projects.

“We are pleased to have reached this significant milestone in the construction of Futura East Building B,” said Aven D. Valderrama, Filinvest Land’s first vice-president-brand product and regional project head, in a statement on Tuesday.

Futura East is under the full-range property developer’s Futura by Filinvest brand.

“With its strategic location, extensive amenities, and commitment to green spaces, Futura East is poised to be the standard of condo living in Cainta, Rizal,” the official said.

Filinvest Land said the topping-off event signifies “remarkable progress” in the green community and brings more buyers and investors in Cainta, Rizal closer to experiencing Futura East’s advantages.

The project is located along Felix Ave., the main thoroughfare in Cainta. Its location offers residents “the benefits of the metro and the wonders of Rizal.”

“Its accessibility is enhanced by its proximity to Marcos Highway, which conveniently connects the prominent cities of Quezon, Pasig, and Antipolo. The prime location also ensures that Future East residents can easily access urban centers or indulge in the scenic beauty and nearby cultural attractions of Rizal,” the company said.

Futura East is part of Filinvest Land’s mixed-used township East Town, a 7.9-hectare development that mixes “urban convenience and refreshing surroundings.”

The company said 60% of East Town is dedicated to open spaces, while the inclusion of a commercial strip provides shopping and dining options.

Futura East Building B is targeted for completion by the first quarter of 2025.

On Tuesday, shares in Filinvest Land were unchanged at P0.65 each.

How PSEi member stocks performed — September 5, 2023

Here’s a quick glance at how PSEi stocks fared on Tuesday, September 5, 2023.


 

Japan’s Hamaguchi revives himself with dark nature film

EVILDoes Not Exist (2023) —IMDB.COM

VENICE — Director Ryusuke Hamaguchi felt he needed a break after promoting two back-to-back hits, so he vanished into the Japanese countryside to make a new movie, Evil Does Not Exist, which premiered at Venice on Monday.

Mr. Hamaguchi won an Oscar for best international film with Drive My Car in 2022 and took the Grand Jury Prize at the 2021 Berlin Film Festival with his romantic drama Wheel of Fortune and Fantasy, significantly boosting his international profile.

“I felt the need to rest and to recover from the promotional period, which really took its toll on me. I think that’s why I made this film,” Mr. Hamaguchi told Reuters ahead of the screening of Evil Does Not Exist.

“Making this movie was like a process of recovery for me and I feel very fortunate it also resulted in getting invited to a festival like this,” he said.

Few people even realized he was making the feature and its inclusion in the Venice line-up — the only Asian movie in the main competition — came as a total surprise to many.

The film shows what happens to a small, rural community when a Tokyo talent agency decides to build an upmarket glamping site in the nearby woods, threatening to contaminate the village water supply and disturb the balance of nature.

“What I found interesting was that this really happened and the plan and proposal were so sloppy that there was no way it would have ever worked,” Mr. Hamaguchi said.

The developers try to involve the local handyman, a single father raising an inquisitive young girl, in their ill-conceived project and a slow sense of doom gradually envelops the film, calling into question its very title.

“Where the title came from is really me watching and observing nature,” said Mr. Hamaguchi.

“There seems to be no evil there. But that’s not really the message of the film and I don’t think anyone watching the film will think that evil does not exist,” he said.

Mr. Hamaguchi brought much of his cast to Venice, including the young protagonist, who waved enthusiastically to photographers as she walked the famous red carpet.

The director said he had been due to come to Venice three years ago after Wife of a Spy, for which he wrote the screenplay, got selected. However, the COVID pandemic prevented him from attending.

“I can’t say this makes up for it, exactly, but I am very happy to get to come to this beautiful city this time around.” — Reuters

Stricter free college education law to keep poor Filipinos in poverty — CHED

SEAN DUNCAN S. REYES

By Kyle Aristophere T. Atienza, Reporter

A PUSH to tighten eligibility for free college education in the Philippines amid a tight state budget risks keeping poor families in poverty, according to the Commission on Higher Education (CHED).

A high dropout rate does not justify repealing the law on free education, CHED Chairman Prospero E. de Vera II told the ABS-CBN News Channel on Tuesday, noting that many college students drop out because they don’t have money for school.

He blamed the “inability of students to have money for their day-to-day expenses” for the dropout rate, which was the highest among third- and fourth-year college students.

Many Filipino students also stopped schooling amid a global coronavirus pandemic, Mr. De Vera said.

“Shouldn’t the government, therefore, provide poor students with the capability to continue schooling?” he asked. “It’s also a function of the lack of support from the government.”

Finance Secretary Benjamin E. Diokno earlier sought a review of the Universal Access to Quality Tertiary Education Act, which was enacted in 2017 after years of lobbying by student movements.

Mr. Diokno, who was the Philippines’ Budget secretary when the law was passed under then President Rodrigo R. Duterte, said the program is unsustainable and a waste of public funds because of the high dropout rate.

Data presented by CHED during a House of Representatives budget hearing earlier this month showed that 37% of college students who entered the academic year 2020–2021 dropped out or temporarily stopped schooling.

Mr. De Vera, who was also the CHED head of the past government, said the dropout rate is high not just in the Philippines but in many countries as well. “Therefore, you cannot connect the dropout rate to free higher education.”

Mr. Diokno also cited the need to filter beneficiaries through a nationwide entrance test.

But Mr. De Vera said it would be “disastrous” if the proposed nationwide test would be patterned after the University of the Philippines College Admission Test (UPCAT), which he said has favored students with access to review centers.

“Those who pass the UPCAT are students coming from relatively richer families from urban areas who have the money to do review classes, who are more prepared to pass the admission test,” he said. “Is that the admission test we want in this country?”

Mr. De Vera said it is a state obligation to boost poor families’ access to education, including indigenous groups.

“We have a responsibility as a country to take steps to make sure that we bring them to the mainstream,” he said. “We give them hope so that they will not fight the government, so that insurgency will be reduced.”

He also said free college education could boost the Philippine workforce. It also has the highest return on investment at 17% compared with 10% for elementary and 7% for high school, he added, citing World Bank data.

“The message there is if you want a workforce that is competitive, the government must invest in higher education now,” Mr. De Vera said.

Mr. Diokno’s proposal came months after the government of President Ferdinand R. Marcos, Jr. sought a review of the country’s pension system for the military and police.

The government is looking for more sources of revenue to fund its ambitious infrastructure projects amid a ballooning national debt, which is expected to hit P15.84 trillion next year.

But the P50-billion budget for free college education is less than 1% of next year’s national budget, Mr. De Vera said.

“Infrastructure is, in fact, P890 billion. This is only P50 billion, to have education that emancipates the poor from the bondage of poverty,” Cagayan de Oro Rep. Rufus B. Rodriguez told his colleagues earlier.

Youth and teachers’ groups have opposed Mr. Diokno’s proposal, including Kabataan Party-list, co-author of one of the bills that eventually became Republic Act No. 10931.
“Reversing the hard-earned victory to provide free college education to students will negatively impact not just current beneficiaries but erect a barrier once again, blocking poorer students from claiming their right to education,” Party-list Rep. Raoul Danniel A. Manuel said earlier.

“The rising dropout rate is not because of free college education but rather, because of its inadequacy,” David Michael M. San Juan, a professor at De La Salle University and convener of Professionals for a Progressive Economy, said in Facebook Messenger chat.

“Despite the fact that state universities and colleges are now tuition-free, students still have to pay for so many things like books, dormitories and uniforms,” he added.

He said many state university students are forced to drop out due to the worsening economic situation of their families.

The government has set the poverty threshold at P12,030 a month for a family of five, which is equivalent to P79 daily for each person.

“With the government’s laughably low poverty threshold, it is very possible that if the government imposes a filtering system, very few students will be able to comply,” Mr. David said. “Many really poor families are not considered poor under the government’s low threshold.” 

‘NO-COLLECTION POLICY’
Also on Tuesday, Senator Sherwin T. Gatchalian sought a review of the law to ensure there are enough classrooms and facilities to accommodate more students.

“I am committed to ensuring the law’s efficient implementation and funding so that it can benefit more students,” senator, who heads the Senate education committee, said in a statement.

Mr. Gatchalian said a screening test as proposed by the Finance chief would be redundant since state universities already have their own admission exams.

“At this point, the urgent concern for the government is expanding the capacity of our public colleges and universities,” he said.

Meanwhile, Senator Rafael “Raffy” T. Tulfo has filed a bill that seeks to bar the collection of fees and contributions from students in public elementary and high schools.

“By implementing a no collection policy in public schools, this bill seeks to eliminate the barriers that hinder the enrollment and retention of students,” he said in a statement.

“Families with limited financial means will no longer face out-of-pocket costs associated with sending their children to school, thus promoting inclusivity and equal opportunities in education,” he said, citing his Senate Bill 2420.

He said the measure seeks to uphold the constitutional right to free public education in elementary and high school. — with JVDO

House panel swiftly OK’s President’s budget

PHILIPPINE STAR/KRIZ JOHN ROSALES

THE HOUSE of Representatives committee on appropriations on Tuesday swiftly ended a hearing on the P10.70-billion budget of the Office of the President (OP) amid questions about the President’s expenses for foreign trips and inter-agency fund transfers.

Abra Rep. Ching B. Bernos moved for the termination of the budget hearing “as part of a longstanding tradition and practice in the House of Representatives and the committee on appropriations to extend parliamentary courtesy to the Office of the President.”

“Courtesy? Respect? Don’t government agencies especially the Office of the President owe the public more the courtesy and respect?” Deputy Minority Leader and Party-list Rep. France L. Castro told the budget hearing. “The OP owes the public an explanation of how it spends each centavo allocated to them.”

She cited a consistent increase in confidential and intelligence funds of the Office of the President, to P4.56 billion next year.

The same House committee last week swiftly approved the 2024 budget of Vice-President Sara Duterte-Carpio, citing “parliamentary courtesy.” It also turned off the mic of minority lawmakers so their objections would not be heard.

Party-list Rep. Raoul Danniel A. Manuel said the OP should explain why it granted funds worth P221 million to the Office of the Vice President last year.

State auditors had flagged the OVP for spending confidential funds worth P125 million in the absence of a specific budget.

Assistant Minority Leader and Party-list Rep. Arlene D. Brosas said the Office of the President should clarify its stance on wage increases and price controls for other commodities aside from rice.

She added that the office should clarify funds spent on President Ferdinand R. Marcos, Jr.’s foreign travels, which the Commission on Audit (CoA) said increased by P366 million to P403 million last year.

The office should also answer questions about its special purpose and unprogrammed funds, as well as fund transfers to the country’s anti-communist task force and anti-terror council, Ms. Brosas said.

Executive Secretary Lucas P. Bersamin told reporters after the hearing he was “happy” with the outcome of the budget hearing.

Ms. Castro told reporters the Makabayan bloc was unsatisfied with how the committee handled the hearing.

“We don’t want to give away our right and obligation to scrutinize the budget of the Office of the President,” she said.

The presidential palace has said the release of P221.424-million confidential funds to the Office of Vice President last year was legal and had been recommended by the Budget department.

“Vice-President Sara, who was newly elected then, needed funds for her new programs for the remaining period of 2022,” the Office of Executive Secretary Lucas P. Bersamin said in a statement.

“The President supported this initiative and released the funds, with the favorable recommendation of the Department of Budget and Management,” it added. — Beatriz Marie D. Cruz and K.A.T. Atienza

Analyst: Marcos should push security agenda at ASEAN

OPS/ROBERTSON NINAL

THE ASEAN Summit in Jakarta this week should help the Philippines push forward its security agenda in the region, where cooperation with neighboring states and the international community is crucial, according to a Manila-based think tank.

“In the context of China’s new standard map, the Association of Southeast Asian Nations (ASEAN) summit comes at the right time for the Philippines to gather support in rejecting these desperate claims that infringe on ASEAN states’ territories,” Stratbase ADR President Victor Andres C. Manhit said in a Facebook Messenger chat on Tuesday.

A few days before the summit, China revised its standard map that now features a 10-dash line. The Philippines, Malaysia, Taiwan and India protested the Chinese action, which they said was illegal.

“Malaysia has also called out this new map, so the summit is an opportunity to encourage a more assertive stance in promoting a peaceful resolution based on international law,” Mr. Manhit said.

The Philippines should lead its ASEAN neighbors in pushing for a maritime policy based on the 2016 arbitral ruling that voided China’s claim to more than 80% of the South China Sea, he added.

The Philippines and other Southeast Asian nations have been seeking to finish a proposed code of conduct in the South China Sea.

But Foreign Affairs Assistant Secretary Daniel Espiritu earlier told a Palace briefing the summit would be “too short” for ASEAN leaders to finalize the proposed code of conduct.

Philippine President Ferdinand R. Marcos, Jr., who has pursued closer ties with the US and its allies amid China’s increasing assertiveness at sea, is in Indonesia for the ASEAN Summit.

Before leaving the Philippines, he vowed to promote “a rules-based international order, including in the South China Sea.” — KATA

Rice emergency bill stretches Palace powers

PHILIPPINE STAR/EDD GUMBAN

By Beatriz Marie D. Cruz, Reporter

A CONGRESSMAN has filed a bill seeking to empower the President to declare a “state of national rice emergency” amid increasing prices of the nation’s staple food.

“The proposed Philippine Rice Emergency Response Act is not just a reaction to these challenges. Rather, it is a strategic set of solutions — a comprehensive tool kit — that seeks to shield consumers and our local farmers, as well as traders, during tight conditions in the rice market,” Marikina Rep. Stella Luz A. Quimbo said in a statement.

Under House Bill No. 9030, the President, in consultation with the Agriculture Secretary, has the authority to declare a national rice emergency due to extreme rice shortage, or either from the sustained or spike increase in rice prices.

In the event of a rice emergency, the President may also propose to Congress to subject rice imports to reduced or zero tariffs, and must also provide subsidy with the help of concerned agencies.

The bill also seeks to use the Rice Competitive Enhancement Fund (RCEF) for programs that will response to the rice emergency, including cash assistance to farmers and other affected sectors, regardless of whether the tariff revenues from rice importation exceeded P10 billion.

During a rice emergency, the National Food Authority (NFA) may also import to maintain buffer stock, subject to the President’s approval.

Meanwhile, Speaker Ferdinand Martin G. Romualdez urged Congress to earmark P2 billion to assist retailers affected by the rice price ceiling ordered by the President last week.

House Appropriations Committee Chairman and Party-list Rep. Elizaldy S. Co said the budget will come from the government’s unprogrammed funds and existing funds from the Department of Agriculture.

On Tuesday, the Department of Trade and Industry (DTI) led an inter-agency joint monitoring team to check on compliance with the imposed rice price ceiling in markets in San Juan and Quezon Cities.

Interior and Local Government Secretary Benjamin C. Abalos, Jr., who joined the monitoring team, said he was enlisting the cooperation of Metro Manila mayors and market administrators to enforcing the mandatory price ceiling on rice.

Likewise, the DA said it was coordinating with the Bureau of Customs (BoC) in stabilizing the supply of rice.