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Concepcion Industrial earnings up 86% in 2023

LISTED Concepcion Industrial Corp. (CIC) said its consolidated earnings grew by 86% to P667.3 million last year, led by higher net sales.

The company said in a regulatory filing on Wednesday that its full-year net sales rose 11% to P14.7 billion carried by strong fourth quarter results.

During the fourth quarter, CIC recorded a 195% increase in consolidated earnings to P177.9 million on the back of better margins and solid sales performance.

The company added that its net sales for the October to December period grew by 9% year on year to P3.8 billion due to sales growth in its commercial business. The commercial business was driven by heat, ventilation, and air conditioning (HVAC) equipment sales and progress in both air conditioning and elevator projects.

Net sales of CIC’s consumer business saw a 1% decline to P2.4 billion due to weaker demand for window room air conditioners and direct cool refrigerators.

“CIC has shown time and again our ability to overcome challenges as our resilient business allows us to adapt quickly and pivot when the situation calls for it. As we reflect on our achievements in 2023, we look ahead with opti-mism, ready to welcome opportunities and face the challenges of 2024,” CIC Chairman and Chief Executive Officer Raul Joseph A. Concepcion said.

“CIC is well positioned to capitalize on emerging opportunities, and our commitment to innovation, customer satisfaction, and operational excellence remains firm. We continue to embark on a promising journey, confident in our ability to drive growth and deliver value to our stakeholders,” he added.

Shares of CIC fell by 94 centavos or 6.91% to P12.66 apiece on Wednesday. — Revin Mikhael D. Ochave

Real-time digital payment system means business for Philippines

UNSPLASH

By Leslie Choo

REAL-TIME payments allow the transfer of money between businesses and consumers within seconds instead of days. This instantaneous process enables a more seamless transaction, improving liquidity and overall market effi-ciency toward unlocking economic growth.

According to the 2023 Prime Time for Real-Time report published by ACI Worldwide, 195 billion real-time payment transactions were recorded globally in 2022 and are forecasted to reach 511.7 billion by 2027, representing a compound annual growth rate (CAGR) of 21.3%. In the Philippines, real-time payment transactions are expected to grow to 1.5 billion by 2027 from 625 million in 2022, representing a CAGR of 18.7%.

A PROMISING GREENFIELD MARKET FOR DIGITAL PAYMENTS

As one of the fastest-growing economies in the Association of Southeast Asian Nations (ASEAN) region, the Philippines posted a high gross domestic product (GDP) growth rate of 7.6% in 2022 and 6% in the third quarter of 2023. With a population of more than 116 million, the Philippine economy is driven by a digital-savvy citizenry with an internet penetration rate of 73.1% of the total population. But even with this tech-forward populace, the country’s banking penetration is relatively low at 56%.

Recognizing the pivotal role of digital finance in fueling economic growth, the Philippine government is making significant strides in its push for digitization. Under its Digital Payments Transformation Roadmap, the Bangko Sentral ng Pilipinas (BSP) aims to shift 50% of total retail transactions to electronic channels and increase the number of Filipino adults with bank accounts to 70% in 2023. InstaPay and PESONet recorded 557 million transactions as of August 2023, 38.9% higher than the 401 million in the same period a year prior.

Against the backdrop of a robust economy and the government’s push for digitization lies a burgeoning, but still largely untapped, demand for digital financial services in the Philippines.

REMITTANCE AND CROSS-BORDER PAYMENTS AS KEY GROWTH ENGINES

Remittances are an important factor supporting domestic consumer spending in the Philippines. According to BSP, personal cash remittances grew by 3.6% to $36.14 billion in 2022, accounting for 8.9% of the Philippines’ GDP. The strong demand for cross-border digital remittances and a large unbanked population represents huge potential for banks in the Philippines to capitalize on real-time payments as a growth catalyst.

Enhancing the efficiency of cross-border payments will help lessen frictions such as high remittance costs, lengthy processing times, and inadequate transparency regarding service fees and processing status. BSP — with the central banks of Indonesia, Malaysia, Singapore, Thailand, and Vietnam — established the Regional Payment Connectivity (RPC) initiative to strengthen and enhance collaboration on payment connectivity by developing faster, cheaper, more transparent, and more inclusive cross-border payments.

Cross-border real-time payments encourage the use of local currency and are vital in strengthening financial resilience in the region. In the long term, cross-border payment cooperation in the region can keep the countries’ currency exchange rates more stable, reducing the reliance on external currencies such as the US dollar. When regional cooperation between countries becomes more economically integrated and sustainable, it stimulates the growth of ASEAN as a whole.

REAL-TIME PAYMENTS ARE TABLE STAKES FOR BANKS

Philippine banks are realizing that real-time payment enablement is more than just a technological upgrade; it is important for customer acquisition and retention, innovation, and efficiency. Traditional banks running on siloed legacy banking systems often lack integration capabilities and require manual processes, leading to inefficiencies and errors. With the industry moving towards the ISO 20022 messaging standard, banks should look to overhaul their systems and take advantage of the opportunities generated by the enriched data to capture customer insights. An ISO 20022-native real-time payments system improves processing time and accuracy, enhances security, and facilitates effective real-time controls against fraud and money laundering.

Digital overlays are integrated value-added services that drive new sophisticated use cases for consumers and businesses and help expand the reach and ubiquity of real-time payment services. An example is Malaysia’s DuitNow Request, which allows payees to send a digital payment request to collect funds from a payer via e-wallet, mobile, or Internet banking. This is particularly useful for businesses that have a variable payment amount or need to re-quest payment for services rendered. With Request to Pay, banks can offer an alternative, digital mode of payment acceptance to the end merchants, billers, and corporates that provides businesses real-time visibility of their in-coming payments while lowering transaction costs, fraud, and disputes.

In Thailand, the National Interbank Transaction Management and Exchange (ITMX) implemented ACI’s real-time payments solution to modernize its bulk payments processing system. Its critical payments infrastructure is utilized for corporate payments, including payroll, dividends, interest, loans, securities, government bonds, tax refunds, goods, and services. Real-time bulk payments can assist with government disbursements such as the senior citizen welfare fund, farmer’s subsidies, COVID-19 relief fund, and emergency support measures. However, for this to be successful, processors and banks need to be backed by scalable and high-performing solutions.

Similar to the Philippines, Indonesia previously faced challenges with slow transactions, high fees, and limited accessibility in remote areas. The Indonesia Fast Payment System (BI-FAST) was introduced by the country’s central bank in December 2021 to transform Indonesia’s payment landscape. BI-FAST serves as an integral part of the Indonesia Payment System Blueprint 2025 vision for inclusive economic growth. ACI provides the central infrastructure for Indonesia’s BI-FAST as well as the gateway for banks and multi-tenant aggregators. BI-FAST, one of the world’s largest real-time payment systems, which will incorporate 135 banks, is accelerating the digital transformation of Indonesia’s economy, driving economic growth and bringing millions of unbanked citizens into the formal financial sector.

By looking at other ASEAN countries’ experiences and successful use cases, the Philippines can enhance its real-time payment system to enable faster, more efficient, and secure transactions, ultimately driving economic growth and financial inclusion.

SECURITY BANK PARTNERS WITH ACI

ACI partnered with Security Bank Corp. in the Philippines to build the bank’s next-generation cloud-native enterprise payment hub, a single platform for retail and corporate banking. Through the partnership, ACI is helping Security Bank realize a unified, omnichannel payment experience and bolstering the bank’s technology transformation journey to meet evolving customer requirements and demands. The new modernized payment hub empowers Security Bank to roll out innovative products and services to customers faster and add new payment types to its core infrastructure seamlessly and cost-effectively.

Guided by our mission to accelerate global commerce through real-time payments, ACI is committed to helping Philippines banks harness the full potential of real-time payments and provide Filipinos with a modernized, secure, and delightful banking experience.

 

Leslie Choo is a ACI Worldwide’s senior vice-president and managing director for Asia Pacific.

Chita Rivera, West Side Story Broadway star, 91

CHITA RIVERA — PLAYBILL.COM

NEW YORK — Chita Rivera, the musical theater legend and multiple Tony winner who created the role of Puerto Rican firebrand Anita on Broadway in West Side Story and other memorable characters, has died at the age of 91.

The petite, raven-haired dancer, singer and actress made history when she became the first Hispanic woman to receive a prestigious Kennedy Center Honor in 2002. She also received the Presidential Medal of Freedom from President Barack Obama in 2009.

“It is with great sadness that Lisa Mordente, the daughter of Chita Rivera, announces the death of her beloved mother who died peacefully on Tuesday, Jan. 30, 2024 in New York after a brief illness,” her daughter Lisa said in a statement.

Ms. Rivera was nominated for 10 Tony awards and won twice. She also received a special Tony for Lifetime Achievement in 2018 for a career that spanned nearly seven decades.

Celebrated playwright Terrence McNally, who wrote the book for Ms. Rivera’s Tony-winning roles in The Rink opposite Liza Minnelli in 1984 and Kiss of the Spider Woman a decade later, described her as “a walking history book of the golden age of American musical theater.”

From the chorus in 1950s Broadway musicals Guys and Dolls and Can-Can, Rivera moved to center stage as murderess Velma Kelly in the original 1975 Broadway production of Chicago and created the role of Rose in the surprise hit Bye, Bye Birdie with Dick Van Dyke in 1960.

But it was her portrayal of the sassy, hip-swaying Anita sashaying across the stage singing “America” or warning her friend about “A Boy Like That” in West Side Story that made Rivera a star.

“To be there when those geniuses created that show was something that is a blessing, you know. It’s something that you can never, ever forget,” Ms. Rivera once said about the groundbreaking musical by Leonard Bernstein and Stephen Sondheim.

NOBODY LIKE CHITA
“When she let those limbs loose she was a one-woman showstopper and every choreographer wanted her,” award-winning producer and director Harold Prince once said. “There is nobody who can dance, sing and act like Chita Rivera.”

Rivera was born Dolores Conchita Figueroa del Rivero on Jan. 23, 1933 in Washington, D.C. Her father, Puerto Rican musician Pedro Julio Figueroa del Rivero, died when she was seven.

One of five children, she studied ballet from a young age and won a scholarship to George Balanchine’s School of American Ballet in New York. She was still a teenager when, on a whim, she auditioned with a friend for the touring company of the musical Call Me Madam and landed a role.

“I always tell kids today never to look down on the chorus and working there,” Ms. Rivera said in an interview with the website thestage.co.uk in 2015. “It’s an extraordinary place to be — you will learn everything you will eventually have to do.”

In 1957 she married Tony Mordente, an actor and dancer in the show. She was such an integral part of West Side Story that its London production had to be delayed until after she gave birth to her only child, Lisa, in 1958.

Ms. Rivera’s career was interrupted in 1986 when she suffered a compound leg fracture in a car accident in New York while appearing in Jerry’s Girls. Doctors had to insert many pins to repair her shattered limb.

“Just like the movies, they told me I would never dance again,” she told Variety in 2005. “And just like the movies, here I am I don’t know how many performances later.”

REBOUND
After rigorous physical therapy Ms. Rivera not only recovered from the accident but went on to win her second Tony for Kiss of the Spider Woman in 1993 and scored another nomination for Nine, opposite Antonio Banderas, a decade later.

Ms. Rivera also appeared regularly on TV entertainment shows and was in the film version of Sweet Charity in 1969 with Shirley MacLaine and Chicago in 2002.

In her mid-70s, when other dancers had slowed down or retired, she starred in Chita Rivera: The Dancer’s Life, a stage show that combined music, dance, and storytelling.

“This bona fide Broadway icon … looks as fit as a well-tuned fiddle,” Time Out magazine said in its 2005 review of the show.

A decade later, Ms. Rivera appeared in a PBS television retrospective of her career called Chita Rivera: A Lot of Livin’ To Do. The same year she earned her 10th Tony nomination as a revenge-seeking millionaire in the musical The Visit. It was the last of several collaborations with the songwriting team of John Kander and Fred Webb.

“You really never know what the next day brings you,” Ms. Rivera told the senior advocacy group AARP in a 2011 interview. “I have a very young outlook. I don’t think you know how much you can do until you try.” — Reuters

China merges hundreds of rural banks amid mounting financial risks

CARLOS DE SOUZA-UNSPLASH

China is embarking on its biggest consolidation in the banking industry by merging hundreds of rural lenders into regional behemoths amid growing signs of financial stress.

After engineering mergers of rural cooperatives and rural commercial banks in at least seven provinces since 2022, policy makers pinpointed tackling risks at the $6.7-trillion sector as one of its top priorities for this year. That means another wave of consolidation is on the way across the nation.

China’s banking industry has been weighed down by a litany of troubles over the past years, including a deepening slump in the real estate market and an overall fragile economy. The 2,100 banks in the rural coop-erative system saw their bad-loan ratio stand at 3.48% at the end of 2022, more than twice as high as that for the whole sector.

“It’s where risks are the most concentrated among smaller financial institutions, so China is pushing the reform at a faster pace,” said Liu Xiaochun, deputy director of think-tank Shanghai Finance Institute. “And one key solution to resolving the risks is through mergers and reorganizations.”

The stakes are high politically as well. Hundreds of people protested in central Henan province in 2022 after a multibillion-dollar scam at several local lenders left them clamoring for their savings.

Jason Bedford, who predicted earlier troubles at China’s regional banks that rocked markets in 2019, said the rural cooperatives are “probably the least transparent part of the banking system.” China has disposed of bad debt equivalent to about 13% of its gross domestic product in its last big cleanup of the banking system during 2016 and 2022, he said.

“We’re left with only a toxic tail of significantly smaller institutions,” said Mr. Bedford, a former analyst with Bridgewater Associates and UBS Group AG. While the contagion risk across the financial system is seen limited, these lenders can be “very disruptive” within their specific regions should they blow up.

While China’s multi-year crackdown on risks has halved the total number of high-risk lenders to 337 by June, some 96% of them were small rural commercial banks and credit cooperatives as well as village and county banks, ac-cording to the central bank.

First created in early 1950s, the cooperatives were in their early days mutually funded, collectively owned institutions by farmers in socialist communes. The majority of them had been transformed into rural commercial banks over the years.

While the system plays a crucial role in lending to underdeveloped areas, many had long struggled with weak profits, soured assets and lax governance. The group has also been operating in a more difficult environment since 2019, when China’s push for more loans toward small- and medium-sized enterprises triggered a price war with bigger banks.

Lack of oversight and proper governance at these lenders has been a persistent issue. Some rural cooperatives are operated essentially as a “cash machine” for big shareholders, the central bank said in its 2023 financial stability report. Some had also deviated from their policy role of servicing the rural and agricultural areas by extending big loans to other areas to achieve growth.

The latest push to merge lending cooperatives got underway in 2022, when regulators called on transforming 25 provincial-level cooperatives created in the early 2000s into modern financial enterprises to further cut risks.

Bad Loans

The government had since authorized seven provinces to consolidate their over 500 smaller lenders either through mergers or a shareholding structure, according to data compiled by Bloomberg.

While the mergers created bigger financial institutions, they aren’t necessarily stronger because the transactions weren’t always done in a market-oriented approach.

One case is Liaoshen Bank Co., which China created in 2021 to absorb dozen lenders with soured balance sheets. The lender still had a bad loan ratio of 4.67% as of end-2022, according to its filing, compared with 1.85% for city commercial banks on the whole.

“The reform will have to really tackle the problems instead of sweeping them under the rug,” said Liu, who in early years of his career oversaw some rural credit cooperatives for Agricultural Bank of China Ltd. in Zhejiang. “Legacy issues could cripple the operations of newly formed institutions if they’re simply covered up, and in a worse case induce more problems and bigger hazards.”

Conflicts may also arise on internal management level, as all parties brought together, strong or weak, will now have to carve up one big cake, according to Shen Meng, a director at Beijing-based investment bank Chanson & Co.

“You don’t really get a big ship by just bundling ten dinghies,” Shen said. “The fundamental issues are still left unresolved.” — Bloomberg

Food must be served

ROBERT MATHEWS—UNSPLASH

FOOD, and any excuse to serve or share it, is part of our culture of hospitality. An unwritten rule on Filipino etiquette seems to expect meals as the center of any occasion. There seems to be an unbreakable social rule — where two or more are gathered for any reason, food must be served.

There are of course formal occasions that send out invitations, expecting food to be served like weddings, birthdays, corporate anniversaries, board meetings, and onboarding of new recruits.

Informal get-togethers also feature lighter meals. These include wakes, budget meetings, bridal showers, book launches, lectures on mental health, economic briefings, alumni chats and any event where participants need to be together for more than 15 minutes — just coffee and corned beef sandwich for me, please.

The convention of serving food at any social gathering attracts uninvited walk-ins whose primary motive is nutrition. (They don’t wear name tags.) The free meal accounts for the appearance of mothers with toddlers in tow in such unlikely corporate settings as an annual stockholders’ meetings of listed companies. (Where’s the buffet table?) Such stragglers arrive just when the reception desk is about to pack up. (Ma’am, is the baby suckling at your breast a preferred or common stockholder?) This opportune gate crash time comes after the president’s report, and just before “other matters.” (Are there any questions?) Corporate freeloaders don’t ask questions about EBITDA for the year and capex overruns. They head directly to the buffet where the lines are just forming.

Organizations, including civic clubs, are mindful of the expectations of the staff as part of an inclusive corporate culture. There are festivals that even welcome children and dependents into the hallowed corporate halls. The elevators can be full of guests and their caregivers when it is Halloween. The only passport to enter any floor with its celebrations is a costume — a cape will do even if it looks like a blanket.

Our foodie culture has its supply-side aspects.

Hosts of events that involve catering arrangements are frustrated in their inability to nail down the exact number of guests to expect with the determined refusal of invitees to follow RSVP protocol. (I’ve scheduled meditation sessions with my guru.) Even with reception desks outside venues where gifts are deposited and seating is assigned (Table #25), there are still walk-ins that just slip through — I just came from the washroom. And they have big bags.

A trip abroad to the international head office can be a cultural jolt. Food is considered merely a nutritional necessity and not part of corporate etiquette. If it is served at all, it is during a working lunch where culinary enjoyment complete with the smacking of lips is considered bad form like the opening monologue of an awards show. There may be sandwiches available in tiny self-sealed servings. Condiments like catsup and salad dressing are in sachets.

Even when a foreign host takes the visitor to lunch, it is likely to be at the office canteen where snacks (turkey breast on whole wheat) are the main feature. The occasion is likely to be on a Dutch treat basis as well. (Warm or iced water?) The visitor is informed that there is a coffee shop near his hotel that serves iced café latte. (Be sure to leave a 20% tip.)

Why is food a cultural part of our meetings? Can this meal culture be cut back, not just to improve the bottom line but contribute to a healthier workforce and shorter meetings? Constant snacking is certain to lead to obesity since social meals are often heavy in carbo and sugar — can you pass the doughnuts?

But if meals are removed from meetings, it is not the intended beneficiaries that may raise an eyebrow or two. One must only observe what happens to untouched leftovers to see where the pinch will be felt. It is no mystery then why there is too much food on the table at meetings even when there are only a few attendees. The meal option affects the serving staff and her preferred caterer, who is ready to pack the leftovers in nice boxes to take home.

Sequels to meetings only extend the food mandate. In case of a deadlock of ideas, the meeting is adjourned — let’s discuss that over lunch tomorrow.

 

TONY SAMSON is chairman and CEO of TOUCH xda
ar.samson@yahoo.com

Alec Baldwin to be arraigned this week for Rust movie-set shooting

ACTOR Alec Baldwin in a scene from Rust. — IMDB

ACTOR Alec Baldwin will be arraigned on Thursday in New Mexico after he was charged again with involuntary manslaughter in the fatal 2021 shooting of a cinematographer on the set of the film Rust, officials said on Tuesday.

A spokesperson for New Mexico’s court system said in an e-mail that Mr. Baldwin’s arraignment in the First Judicial District Court in Santa Fe would be a virtual proceeding.

Mr. Baldwin’s attorneys did not immediately respond to a request for comment. Earlier this month when the new charges were announced Mr. Baldwin’s attorneys Luke Nikas and Alex Spiro issued a statement saying: “We look forward to our day in court.”

The Oct. 21, 2021, shooting on the set of Rust killed cinematographer Halyna Hutchins. The reinstated criminal case against Mr. Baldwin comes months after previous charges were dropped.

The new charges came in an indictment by a New Mexico grand jury after an independent forensic test concluding that Baldwin would have had to have pulled the trigger of a revolver he was using in a rehearsal for it to fire the live round that struck Ms. Hutchins in the chest and killed her.

The finding was the same as a previous FBI test on the firearm.

When prosecutors announced their intention in October to bring the case to a grand jury, the defense lawyers called the situation a “terrible tragedy” that “has been turned into this misguided prosecution.”

Mr. Baldwin, the Emmy-winning performer who starred in the hit NBC television comedy 30 Rock, has denied pulling the trigger and said he was not responsible for Ms. Hutchins’ death.

The movie’s director, Joel Souza, was struck and wounded in the shoulder by the same bullet that killed Ms. Hutchins during production of the film on a set outside Santa Fe.

According to a police report, David Halls, the assistant director who handed the gun to Mr. Baldwin, told the actor the weapon was “cold,” an industry term meaning it did not contain live ammunition or even blank rounds. Mr. Halls told police he was unaware the gun was loaded.

Last year as part of a plea agreement Mr. Halls was sentenced to a six-month suspended sentence with unsupervised probation, a $500 fine, 24 hours of community service and a firearms safety class on a charge of negligent use of a deadly weapon.

The movie’s chief weapons handler, Hannah Gutierrez, who handled the gun before Mr. Halls, has also been charged with involuntary manslaughter. She faces trial this year.

Prosecutors previously dismissed charges against Mr. Baldwin based on evidence the hammer of the revolver might have been modified, allowing it to fire without the trigger being pulled. — Reuters

How PSEi member stocks performed — February 1, 2024

Here’s a quick glance at how PSEi stocks fared on Wednesday, February 1, 2024.


China’s claim to Scarborough Shoal has no legal basis, Philippines says

A LANDSAT 7 image of Scarborough Shoal in the West Philippine Sea. — WIKIPEDIA

CHINA’s repeated claims of sovereignty over the Scarborough shoal in the South China Sea has no legal basis under international law, a senior Philippine security official said on Wednesday.

“Since the Philippines exercises sovereign rights over Bajo de Masinloc and its surrounding waters under international law, only the Philippines has the authority to exercise maritime law enforcement functions to the exclusion of other countries,” National Security Council spokesman Jonathan Malaya said in a statement, referring to the disputed shoal by the Philippine name.

China’s coast guard late on Tuesday said Beijing has indisputable sovereignty over the shoal, which is located within the Philippines’ exclusive economic zone.

China has indisputable sovereignty over the Scarborough Shoal and its adjacent waters, and has always resolutely countered infringements by the Philippines, a spokesperson for the China Coast Guard said in a statement released late Tuesday.

The spokesperson said four Philippine personnel illegally intruded in certain areas on Jan. 28, and the coast guard warned them to leave in accordance with the law. The interaction was “professional and standardized,” according to the statement.

Accusations and run-ins have occurred frequently between the two countries in the past year over disputed areas of the South China Sea.

China claims sovereignty over almost the entire South China Sea, which has angered neighboring countries that dispute some boundaries they say cut into their exclusive economic zones.

Meanwhile, President Ferdinand R. Marcos, Jr. on Tuesday night said he is still pushing a separate South China Sea code of conduct with Vietnam.

“We are pretty much there,” he told reporters when asked about the progress of the code. “The memorandum of understanding that we have done between our two coast guards, including the plan to conduct joint cruises, joint exercises this year, 2024, was about that.”

Mr. Marcos held a two-day visit to Hanoi that started on Monday, resulting in the signing of several bilateral deals, including a joint maritime cooperation between the Philippine Coast Guard and its Vietnamese counterpart.

The two nations also signed a memorandum of understanding to prevent untoward incidents in the South China Sea.

Mr. Marcos first announced the country’s efforts to forge a separate South China Sea code of conduct with Vietnam and Malaysia during his visit to the United States in November.

The Philippine leader cited the slow pace of progress of the code between China and members of the Association of Southeast Asian Nations.

China had warned against the initiative, saying any departure from the Declaration on Conduct of the Parties in the South China Sea would void.

The push for a separate code of conduct with Malaysia and Vietnam are very unlikely to succeed because of their contrasting diplomatic approaches and reluctance to undermine ties with Beijing, Aushaz Irfan, an intelligence analyst at United Kingdom-based Healix International told BusinessWorld this month.

Mr. Marcos has pursued closer ties with the US and allies like Japan and Australia. In February last year, he gave the US access to four more military bases on top of the five existing sites under their 2014 Enhanced Defense Cooperation Agreement (EDCA).

Three of the new EDCA sites are in parts of northern Luzon facing Taiwan, while one is on the island of Palawan facing the South China Sea.

Political group P1NAS said it was alarmed by the US government’s allocation of more than $30 million for the upgrade of Basa Air Base in Pampanga province north of Manila because it makes the Philippines “a pawn in the escalating tensions between the US and China.”

“This move further entrenches the country into the US-led war preparations in the region,” it said in a statement.

Under the US government’s budget for military construction for 2024, $35 million was allocated for the construction of a “transient aircraft parking apron” at Basa Air Base, P1NAS said.

The parking apron could accommodate as many as 20 aircraft for use by the US Air Force since Basa does not have enough space now, it said, citing reports.

Last year, the two countries completed a $25-million repair and upgrade of the Basa Air Base runway “to accommodate larger aircraft,” according to the US Naval Institute website.

“Public pronouncements both by the US and Philippine government have sought to highlight how these investments will be used to enhance humanitarian assistance and disaster relief operations,” P1NAS spokesman Antonio Tinio said. “In reality, the explicit objective is to enable the US to deploy its combat aircraft and related military assets as it prepares for war with China.” — Kyle Aristophere T. Atienza with Reuters

Philippine opposition told to consolidate amid rift in Marcos gov’t alliance

FORMER Vice-President Maria Leonor “Leni” G. Robredo attracted more than 400,000 supporters at a campaign rally on April 23. — PHILIPPINE STAR/ MIGUEL DE GUZMAN

By Kyle Aristophere T. Atienza, Reporter

NONALIGNED voters who supported opposition candidates in the 2022 elections have yet to be transformed into a solid political base even as the ruling coalition led by Philippine President Ferdinand R. Marcos, Jr. faces internal rumblings, according to political analysts.

“We have yet to see if the support base of the opposition in 2022 is still there since it has never transitioned into a working body or a real political force,” Arjan P. Aguirre, who teaches political science at the Ateneo de Manila University, said in a Facebook Messenger chat on Tuesday.

The opposition should have managed to sustain a support base that is “capable of organizing people other than those within their existing network of movements and organizations,” he added.

Mr. Marcos ran for President in 2022 under a platform of unity that in recent days has become difficult to achieve.

The Philippine leader is now being challenged by the family of Vice-President Sara Duterte-Carpio, who ran in tandem with him in the 2022 elections, after his allies in Congress stripped her of confidential funds worth P650 million in this year’s national budget.

The Marcos-Duterte quarrel is bad for the country’s investment climate, National Economic and Development Authority Secretary Arsenio S. Balisacan told a news briefing where 2023 economic output data were released.

“It’s okay to have all these exchanges and political debates,” he said in mixed English and Filipino. “That’s OK because that’s democracy. But it should not create political instability because it will affect the economy.”

Former Vice-President Maria Leonor G. Robredo, who lost to Mr. Marcos in 2022, managed to draw hundreds of thousands of crowds during her campaign. Ms. Robredo founded a nongovernment group composed of volunteers in July 2022 after her term as vice-president ended.

“There is a difference between an electoral mobilization and a political mobilization,” Mr. Aguirre said. “It’s not easy to transition from one mobilization to another. One needs to have a solid base of supporters who are always there to sustain the mobilization effort.”

On Sunday, at least two major political gatherings were held in the Philippines, one of which was an administration-led rally in Manila under the theme “Bagong Pilipinas” (New Philippines), which the President and Ms. Duterte-Carpio attended.

In Davao City in southern Philippines, ex-President Rodrigo R. Duterte and his supporters held a prayer rally where he accused Mr. Marcos of being a drug addict. His successor has shunned his key policies by standing up to China and pursuing closer security ties with the US.

The gathering that was highly critical of Mr. Marcos and his cousin Speaker Ferdinand Martin G. Romualdez, who has been linked to a so-called people’s initiative for Charter change, was also attended by Ms. Duterte-Carpio and presidential sister Senator Maria  Imelda “Imee” R. Marcos.

CAMPAIGN STRATEGY
As the rift widens, opposition forces including Bagong Alyansang Makabayan (Bayan) and Akbayan Party are doubling their consolidation efforts as they plan to hold large anti-Charter change rallies next month in time for the commemoration of the popular street uprising that toppled the dictatorial regime of Mr. Marcos’s late father and namesake in February 1986.

Bayan and Akbayan have major political differences and had been political foes in the past. These political groups, which have united on key issues under the Duterte government, are opposing changes to the country’s 36-year-old Constitution.

“At present, the opposition seems to be still reeling from its major electoral losses and political bullying especially during the Duterte administration,” Mr. Aguirre said.

“They are also almost always distracted with the numerous issues that exist in society. They seem to be incapable of focusing on a single mainstream issue that is relevant to the public,” he added.

Senator Risa Hontiveros-Baraquel, the lone opposition candidate who won a Senate seat in 2022, on Monday hit the Marcos and Duterte camps for their petty quarrel.

Hansley A. Juliano, a political science lecturer at the Ateneo, said the pro-Robredo movement called Kakampink should reach out to more people, including those who had supported the Marcos-Duterte tandem.

“The continuing nostalgia consumption of the opposition remains its most persisting discourse,” he said via Messenger chat. “The opposition’s brand, as long as it’s defined by EDSA nostalgia, Aquino nostalgia, or Kakampink bitterness, will not attract votes or rebuild a genuine opposition.”

He cited the need to rebuild and recapture elements linked to other losing candidates such as former Senators Panfilo M. Lacson and Emmanuel D. Pacquiao and ex-Manila Mayor Francisco Domagoso.

“Only then can they expect to build a slate that may matter in 2025,” he said. “The snobbishness of ‘we’re clean, we’re moral, we’re better than everyone else’ as a campaign strategy has to go.”

Akbayan expects the Marcos-Duterte tension to worsen.

“We urge the public to remain steadfast in opposing all forms of Cha-cha and vigilant against any extra-constitutional schemes from the Dutertes aimed at evading accountability and usurping power,” Akbayan Party President Rafaela David said in a Messenger chat.

Mr. Juliano said if the Marcos-Duterte tension leads to a split, “it will at least make explicit to both camps how big their base really is.” “It will also make clear who the ‘left-behind camps’ (Lacson, Pacquiao and Moreno) should go to, if they were not already in UniTeam in the first place.”

Mr. Aguirre urged the opposition not just to oppose the government but also to provide “workable and practical alternative policies and programs.”

Inflation remains a key risk to Philippines economic growth and is a top concern for most Filipinos, based on previous polls. It slowed to 3.9% in December after hitting a 14-year high in January last year.

An Octa Research Group poll on Dec. 10-14 showed that 14% or 3.7 million Filipino families considered themselves poor, worse than 10% or 2.6 million families in September.

Congressman: Senate ‘Cha-cha’ to only unlock 3% of economic output

A PHILIPPINE Senate proposal to ease economic restrictions in the 1987 Philippine Constitution would unlock 3.1% in economic output, which is not enough, according to a congressman.

“In agriculture, we have restrictive provisions on land ownership and land tenure [despite] having the biggest potential,” Albay Rep. Jose Ma. Clemente S. Salceda told a news briefing in Filipino on Wednesday.

The lawmaker pushed the House of Representatives’ Resolution of Both Houses No. 2, which seeks to open the Philippines to foreign investments in agriculture, education, land lease and ownership, conveyance, media and advertising through constitution changes.

A similar Senate resolution seeks to open the country to investments only in public utilities, advertising and education.

Land ownership in the Philippines is limited to Filipino citizens and corporations that are at least 60% Filipino-owned. The Philippine Condominium Act allows foreigners to own units.

President Ferdinand R. Marcos, Jr. is against foreign ownership of land, Senate President Juan Miguel F. Zubiri said earlier, citing potential problems in the government’s housing program, as well as a potential increase in land tax and prices.

“Our Southeast Asian neighbors don’t have any restrictions [in foreign investment,]” Mr. Salceda said in Filipino.

Meanwhile, Speaker Ferdinand Martin G. Romualdez said he supports the Senate’s scheduled deliberations on its own Charter change (“Cha-cha”) resolution.

“As the Senate embarks on this momentous task, the House of Representatives stands ready to collaborate and contribute to this significant legislative endeavor,” he said in a statement.

Mr. Romualdez had helped the People’s Initiative for Reform Modernization and Action (PIRMA) to get signatures for Charter change, PIRMA lead convenor Noel Oñate told a Senate hearing on Tuesday.

Mr. Romualdez said he met with the group “in the spirit of open dialogue and understanding of civic actions spearheaded by our citizens.” “My role, as misinterpreted by some, is not as an orchestrator but as a facilitator for healthy democratic processes,” he said on Tuesday.

The Commission on Elections (Comelec) suspended proceedings on a people’s initiative for constitutional change.

Congressmen will wait until the commission lifts its suspension, Mr. Salceda said. — Beatriz Marie D. Cruz

Modern healthcare facilities likely to keep nurses from leaving — USAID

LEVI MEIR CLANCY-UNSPLASH

By John Victor D. Ordoñez, Reporter

THE PHILIPPINE government must invest more in developing and modernizing local healthcare facilities as a way of encouraging nurses to stay instead of seeking jobs abroad, the United States Agency for International Development (USAID) said on Wednesday.

“The process of making it attractive (for health workers) to stay here is about building strong centers where people can feel rewarded, serve their communities and feel that they have the supplies,” USAID Assistant Administrator for Global Health Atul Gawande told a media roundtable at the University of the Philippines Manila College of Medicine.

“The Philippines has become an important supplier to the world of medical talent who are extremely skilled and very, very capable and can easily work anywhere in the world with English language skills,” Mr. Gawande said.

The USAID official said as more countries invest in Philippine healthcare, more local healthcare workers will be more willing to stay in their communities.

“Yes, pay makes a difference,” he said. “But mostly, people in the health profession want to feel they’re effective at their job and can save lives and make a difference in their communities.”

He said healthcare workers will find it discouraging if medications and supplies are insufficient.

Mr. Gawande, who was part of the Biden administration’s coronavirus 2019 (COVID) transition Advisory Board, said the Philippines is one of seven countries being prioritized by the US for enhanced support in developing local primary healthcare services.

In a statement, the USAID said it has invested more than P14.6 billion ($260 million) in health programs in the Philippines to address tuberculosis and HIV from 2018 to 2023.

It also helped the Department of Health (DoH) identify more than 750,000 Filipinos with tuberculosis and assisted in treating them.

In addition, USAID assisted the Philippines so that more than 24,800 Filipinos are enrolled in receiving pre-exposure prophylaxis (PrEP), an HIV prevention drug.

During his visit to Manila this week, Mr. Gawande met with Philippine Health Secretary Teodoro J. Herbosa to discuss ways on strengthening the Philippines’ primary healthcare and how it can achieve its Universal Health Care goals.

“The Philippine government is pursuing an ambitious plan to radically strengthen primary healthcare — the key scaffolding to enable longer life and better health for all Filipinos,” Mr. Gawande said. “USAID is proud to be a partner in ensuring the plan’s success.”

Imee blames minions for Duterte’s rift with President

IMELDA “IMEE” R. MARCOS — SENATE PRIB

SENATOR and presidential sister Maria Imelda “Imee” R. Marcos said on Wednesday that people around the Marcos-Duterte political alliance are to blame for the widening a rift between the political families.

“In my opinon, the ‘Uniteam’ now clearly has a crack (may tama, may lamat) in its unity, but I think the principals aren’t having any trouble, rather the demons and snakes on the side are stirring up trouble,” she told a news briefing in Filipino on Wednesday.

Former President Rodrigo R. Duterte earlier claimed President Ferdinand R. Marcos, Jr. was on a so-called “narco-list” of drug users that was submitted to him when he was still mayor of Davao, which the Philippine Drug Enforcement (PDEA) vehemently denied.

Mr. Marcos struck back on Monday, saying his predecessor’s alleged use of fentanyl, a highly addictive synthetic opoid for pain relief, could have affected his judgement. Mr. Duterte admitted to using the drug in 2016 for pain relief after a motorcycle accident.

On Wednesday, Mr. Marcos said his relationship with Vice President Sara Z. Duterte-Carpio, Mr. Duterte’s daughter, was still “vibrant” despite the recent trading of verbal barbs.

“It is still working… we will continue,” he said in news briefing, based on a statement published by the Presidential Communications Office.

House Speaker and presidential cousin Ferdinand Martin G. Romualdez earlier urged the former president to show proof of his drug allegations.
Ms. Marcos said she would leave it to her brother and Mr. Duterte to settle their differences.— John Victor D. Ordoñez

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