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Government urged to consider inflation impact of new taxes

Marketgoers purchase fresh vegetables at the Marikina Public Market, Oct. 10, 2022. — PHILIPPINE STAR/WALTER BOLLOZOS

By Beatriz Marie D. Cruz

THE National Government must consider the inflationary impact of any new taxes, analysts said, noting the heavy tax burden on the middle classes.

John Paolo R. Rivera, an economist at the Asian Institute of Management, said by phone that many “are still recovering in terms of their income generating prospects.”

Calling for greater efficiency in collecting existing taxes, he pointed to the need for “being mindful of taxation’s impact on those people who are actually driving the economy like the middle classes because (they’re the) heavily taxed portion of society,” he said.

“It is important for government to ensure that additional taxes do not hit the same group of people every time,” Eleanor L. Roque, tax principal of P&A Grant Thornton, said in a Viber message.

Ms. Roque said that the government should also “prioritize bills which improve taxpayer services or make paying taxes easier such as the bill on ease of paying taxes.”

Senator Sherwin T. Gatchalian, who chairs the Senate Ways and Means panel, said last month that the proposed Ease of Paying Taxes Act may be given committee approval before year’s end. A similar bill seeking to modernize tax administration and improve collection efficiency was approved by the House of Representatives last year.

Mr. Gatchalian also told DZBB radio on Sunday that the Senate is working on a measure allowing faster payment of real property taxes. The proposed Taxpayers’ Bill of Rights is currently being deliberated at the Senate, he added.

The senator also pointed to the need to address tax evasion via smuggling.

“Before we talk about increasing taxes, we must first discuss reforms that curb smuggling and easing payment of taxes,” he said.

Ms. Roque also called for measures that protect taxpayers from harassment or unnecessary hardship during the assessment or refund process.

The Development Budget Coordination Committee (DBCC) last month said it is pushing for three additional tax reforms to boost revenue, specifically an excise tax on sweetened beverages, the motor vehicle road user’s tax, and the mining fiscal regime.

“I agree in principle,” House Ways and Means Committee Chairman and Albay Rep. Jose Ma. Clemente S. Salceda said, referring to the proposed excise tax on sweetened beverages.

“I intend to file the administration version as soon as (the Finance department is) ready with it,” he said via Viber.

Finance Secretary Benjamin E. Diokno said an excise tax on sweetened beverages is expected to generate P53.7 billion in revenue in its first year of implementation.

Mr. Gatchalian said the tax would help fund health programs.

Ms. Roque added that “it is still a move in the right direction to tax unhealthy products to dissuade people from indulging in them.”

Mr. Rivera, however, noted that taxing a product in high demand, especially sweetened beverages, might fuel inflation further.

“(Sweetened beverages are actually) in demand… so it might fuel inflation because people would still buy it,” he said.

Mr. Diokno said that a modern vehicle road user’s tax will generate P15.8 billion in revenue during its first year and up to P48.6 billion by the third year.

“We will look into the impact on logistics and how to mitigate the price effects, since the highest increases in rates will be for trucks,” Mr. Salceda said, noting that motorcycles-for-hire and tricycles could be exempt from the motor vehicle charge.

Mr. Rivera said that a motor vehicle tax can help mitigate the road congestion problem.

“Traffic especially in urban areas is driven by the flow of and volume of vehicles and one way to curb this is through taxation,” he said.

The DBCC is also seeking approval of a new mining fiscal regime, which is set for discussion at the House Ways and Means panel this week. The proposed regime for the mining sector is expected to yield P12.4 billion in 2025, P12.9 billion in 2026, P13.4 billion in 2027, and P13.9 billion in 2028.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that tax and other fiscal reform measures, alongside faster economic growth would help ease the Philippines’ debt-to-gross domestic product (GDP) ratio “to below the international threshold of 60% in the coming years and would help maintain or support the country’s relatively favorable credit ratings of 1-3 notches above the minimum investment grade rating.”

The Bureau of the Treasury puts the debt-to-GDP ratio at 61% as of the first quarter, higher than the 60.4% ratio at the end of 2021. The 60% threshold is the rule-of-thumb ceiling on debt levels considered manageable by developing countries.

“New taxes and higher tax rates need to be fair, equitable, and progressive, especially targeted to those that can afford them or those from the higher income brackets or at least prevent adding to the burden of the poor, the most vulnerable sectors, and/or those hit hard by the pandemic,” Mr. Ricafort said.

Rice inventory down 5.4% in early February

PHILIPPINE STAR/ MICHAEL VARCAS

THE rice inventory as of Feb. 1 fell 5.4% year on year to 1.52 million metric tons (MT), the Philippine Statistics Authority (PSA) said.

“Relative to their respective levels from the same period of last year, decrements in rice stocks were noted in all sectors,” the PSA said in a report.

Rice held by households fell 0.6% to 887.03 thousand MT, accounting for 57.6% of the total inventory.

Inventory held in commercial warehouses decreased 0.7% to 541.21 thousand metric tons, equivalent to 35.5% of the rice stock.

Rice stored in National Food Authority (NFA) depositories, which accounts for 6.9% of the total, fell 42.2% to 104.79 thousand metric tons.

On a month-on-month basis, the national rice inventory fell 17.7%.

“Compared with their record in the previous month, rice stocks in all sectors for February 2023 contracted by 19.1% in the household, 17% in commercial sector, and 8.8% in NFA depositories,” the PSA said.

In the same report, the PSA said the corn inventory declined 22.5% year on year to 336.40 thousand MT.

Household corn stocks, which accounted for 20.5% of the total, decreased 20.2% to 75.12 thousand MT.

Corn stored in commercial warehouses, which accounted for 79.5% of the total, fell 23% to 291.28 thousand MT.

Compared to a month earlier, the corn stockpile fell 10.5%.

“Of this month’s corn inventory, household stocks displayed a downturn of 4.7% from the previous month’s inventory level,” the PSA said.

“Consistently, a month-on-month decrement of 11.9% was observed in commercial stocks,” it added. — Sheldeen Joy Talavera

NGCP warns RE intermittency could pose grid integration issues

JEROME CMG-UNSPLASH

THE National Grid Corp. of the Philippines (NGCP) said renewable energy (RE) projects about to become operational will have to be integrated onto the grid with an eye towards the intermittency of their power generation.

“While we support all kinds of technology when it comes to supply, we also have to look at each of those technologies and how responsive our current regulatory measures are to address certain nuances of the sector,” Cynthia P. Alabanza, spokesperson of NGCP, said in a virtual briefing on Friday.

Ms. Alabanza was responding to a question on how the NGCP will address the intermittency of renewables as projects falling under Green Energy Auction Program (GEAP) start operating.

The Department of Energy (DoE) is set to offer 11,600 megawatts worth of RE in GEAP-2 in June.

“The influx of a lot of variable technologies will need a lot of upgrades from the grid and these should be considered in terms of whether the quickest and easiest solution is from the grid’s perspective or perhaps looking at technologies coming in and ensuring these harmonizes with the existing development plan of the transmission system,” she said.

Meanwhile, Ms. Alabanza said that NGCP has committed to finish the company’s priority transmission projects within the year.

“We committed to finish these within the next few months, so we can help strengthen the power system. But again, we can only commit to developing our part, but the whole energy supply chain needs to be resilient,” she said.

Ms. Alabanza was referring to the Hermosa-San Jose transmission project, Cebu-Negros-Panay interconnection and the Mindanao-Visayas Interconnection Project (MVIP).

The Department of Energy (DoE) has cited the delay in NGCP’s transmission projects as a factor in the tightness of power supply.

Last week, the Luzon power grid was placed under red and yellow alerts, with over 300,000 consumers within Metro Manila and nearby provinces experiencing rotational brownouts.

The red and yellow alerts were traced to the tripping of transmission lines which caused two power plants to go into forced outage.

“The projects really could have improved the system but again it is only one part of the supply chain, it’s three components — generation, transmission, distribution. But, yes, there are delays in our projects and there are many factors that contributed to this delay,” Ms. Alabanza said.

She said right-of-way issues contributed to the delay, while permit acquisition and the pandemic also affected timelines.

“We are grateful for the support of the DoE. We felt the support. In 2022 permitting was expedited. We hope that continues,” Ms. Alabanza said. —  Ashley Erika O. Jose

ChatGPT: A versatile AI model

(Second of two parts)

When ChatGPT 3.5 was released last year, it made global headlines for its ability to perform tasks such as analyzing professional contracts and complex spreadsheets. ChatGPT is a rapidly evolving text-based artificial intelligence (AI) that facilitates “human” interactions via its natural language responses. Despite its nascency, ChatGPT has already solidified its presence in various industries. Its myriad of functions (e.g., content creation, data analysis, and code generation) can help organizations enhance their products and services, streamline work processes, and refine customer service.

However, many are also deeply concerned about its use in business, education and various other sectors. In the first part of this article, we discussed the science behind Generative Pre-Trained Transformer (GPT), hot topics regarding its human aspect, its response biases, and potential business applications. In this second part, we discuss the practical ways ChatGPT can be used in business and the potential risks it presents.

PRACTICAL BUSINESS USE CASES
With the ability of AI to automate several tasks, businesses can reduce their labor costs while simultaneously enhancing workflows. ChatGPT’s flexibility can support and possibly even enhance various corporate functions such as customer service, data analytics, sales and marketing, and finance.

Customer service. Given its text-based nature, ChatGPT can leverage its ability to customize responses based on user prompts to facilitate a seamless user experience. The program’s versatility means that it can be incorporated into different platforms such as chatbots, e-mail, and SMS. ChatGPT can provide round-the-clock support, potentially becoming instrumental in the banking, healthcare and information technology (IT) industries. Small- and medium-sized enterprises (SMEs) can capitalize on AI by setting up a chatbot that can interface with customers without needing human moderation. Since the AI will continue to evolve through repeated customer interactions, the company can make use of the data for continuous improvement.

Data analysis. ChatGPT has a wealth of information to draw on, potentially making it an asset for tasks such as market research, research and development, and financial forecasts. Businesses will be able to analyze data more efficiently given its comprehensive set of information. A practical example would be ChatGPT’s capacity to break down complex code and generate bug fixes.

Sales and marketing. Sales and marketing are corporate functions that require a more personalized approach, and ChatGPT can address this by utilizing its natural language model to create bespoke solutions. Apart from generating SEO-friendly keywords to outlining drafts, ChatGPT can also produce personalized e-mails, blogs and video ideas.

BUSINESS RISKS
Despite ChatGPT’s potential for streamlining operations, it can pose risks for organizations. Given the nature of this AI and how it can evolve (i.e., it analyzes large data sets on the internet before generating a response based on the user prompt), security, accuracy and fairness are paramount concerns.

A potential pitfall for the AI lies in its primary competency — that it can facilitate more “human-like” interactions since humans are prone to error and subject to different biases. Its very strength can prove to be its weakness, since the conveniences it affords can also facilitate the spread of disinformation, ethical issues and copyright disputes.

Data accuracy. OpenAI, the company behind the program, acknowledged that the software produced erroneous and/or biased content. One of the program’s limitations is that its learning model was programmed in 2021, which means that it has little-to-no knowledge of developments since then. It is also worth mentioning that not all online information is accurate, proving to be a substantial constraint for ChatGPT. People have even claimed that the AI can “hallucinate” because it has populated user queries with false information, such as listing down incorrect credentials for public individuals.

Cybersecurity and data privacy. Its online nature makes ChatGPT vulnerable to cybersecurity attacks that make it a potential risk to businesses. The program can endanger one’s privacy because it can sift through a vast range of data accessible online. Businesses will have to deliberate whether the technology’s benefits outweigh its potential security risks. They must also be vigilant when it comes to the security of both themselves as well as their clients.

Bias. In the first part of the article, we discussed how ChatGPT has a category of answers that consists of subjective responses. This inherent bias may deter corporations from assimilating it into their established work systems. There was a case wherein ChatGPT was asked which airline passengers could pose a risk, and it asserted that individuals who traveled to North Korea, Afghanistan, Iraq and Syria were the more prominent dangers. The learning model is continuously evolving, but it still needs some form of arbitration to avoid ethics and bias-related issues.

Ethics. In academia, there have been longstanding, divergent opinions when it comes to technological advancements, ranging from the archaic decision of whether smartphones should be allowed in class, to more current concerns, such as the ethics of using AI to accomplish assignments and/or examinations. The jury is still out as institutions have varied responses, with some universities mandating the return of in-person exams to safeguard against cheating, whereas others have started to delineate AI-specific guidelines. Plagiarism, however, remains a principal concern. The convenience of AI may exacerbate issues when it comes to the originality of work, whether in academia or corporations.

Intellectual property and copyright. In light of ongoing discussions that ChatGPT can replace, or at the very least, assist with certain types of work, it is vital to understand the legal repercussions. With copyright protection, the US Copyright Office will not register work that was generated by an AI. In accordance with US law, AI-generated output will either be a claimless work available in the public domain or considered a derivative work of the tools that the AI was developed upon. This raises the question as to who the true owner is — the creators of ChatGPT or the user for whom the output was generated.

AI IS HERE TO STAY
As one of many developing AIs, ChatGPT offers advantages and risks for personal users and organizations. It is also apparent that human intervention is necessary to truly leverage its benefits and mitigate its intrinsic shortcomings.

With the current technological climate though, it seems that businesses will no longer be able to turn a blind eye to the program. Similarly, OpenAI is not the only company making headlines when it comes to artificial intelligence as other companies are racing to develop their own versions. One thing is clear — AI is here to stay.

Technology is at the forefront of business change and learning how to leverage it is critical. ChatGPT has jolted the corporate landscape, presenting both challenges and opportunities for organizations. For companies considering the use of AI, it is vital to evaluate its role in their respective ecosystems. Ultimately, the biggest question is whether hypothetical returns will be enough to mitigate the potential risks.

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinions expressed above are those of the author and do not necessarily represent the views of SGV & Co.

 

Randall C. Antonio is a technology consulting partner of SGV & Co.

Gilas women battle Malaysia for the SEA Games silver medal

GILAS PILIPINAS WOMEN — PHILIPPINE STAR/JUN MENDOZA

AS Indonesia clinched the gold medal, Gilas Pilipinas women stepped forth to capturing the next possible prize with an 82-70 win over Thailand in 32nd Southeast Asian Games (SEAG) on May 14 at the Morodok Techo Stadium Elephant Hall 2 in Phnom Penh.

Indonesia smothered Singapore, 86-39, to complete a 6-0 sweep of the tournament while back-to-back champion Gilas improved to 4-1 with a game to play against Malaysia.

Malaysia is also at 4-1, thus turning their duel against the Philippines a battle for the silver medal behind new SEA Games hoops queen Indonesia.

Gilas bowed to Indonesia, 89-68, for a foiled three-peat bid while 13-time champion Malaysia absorbed the same feat, 85-57.

Afril Bernardino flashed an all-around brilliance of 18 points, five rebounds, four assists, two steals and a block in 19 minutes of action to lead four players in twin digits for the Filipinas.

Khate Castillo (11), Jack Animam (10) and captain Janine Pontejos (10) provided coverage.

Holding on to a slim 68-63 lead early in the payoff period, Gilas banked on a telling 12-2 run to take command at 80-65 for its fourth double-digit victory.

Save for a dismal outing against the Indonesians, Gilas scored easy wins against Cambodia, 114-54, Singapore, 94-63, and Vietnam, 116-58.

Rattiyakorn Udomsuk (22) and Thunchanok Lumdabpang (11) and Kanokwan Prajuapsook (10) led the fight for the five-time champion Thais, who struggled this edition at 1-4.

Thailand also bowed to Indonesia, 70-69, and Malaysia, 64-48. — John Bryan Ulanday

This scavenger collects medals in international competitions

FILIPINA WEIGHTLIFTER LOVELY INAN — PHILSTAR FILE PHOTO

PHNOM PENH — Not so long ago, Lovely Inan was scouring the streets of Angono, Rizal for metal scraps, used bottles and plastics to sell to junk shops.

Now, the 17-year-old weightlifting prospect is in the business of hunting medals in international competitions.

The former “mangangalakal” (scavenger) scored her biggest collar to date when she won the silver in the women’s 49kg class in her maiden Southeast Asian Games outing behind Rio Olympics champion Sanikun Tanasan of Thailand no less.

“Mangangalakal po kami dati,” (We were scavengers before)

said Ms. Inan, who helped her father Manny Boy, a carpenter, and mother, Ceferina, a seamstress, make ends meet.

It was Ms. Inan’s scavenging activities when she was 10 that had led her to the path of weightlifting. Passing by the house/gym of the Pep Project Weightlifting, the girl carrying a sack of scraps caught the eye of owner and coach Richard Pep Agosto.

After dominating in the Batang Pinoy, Ms. Inan made it to the national team in 2021 and competed in a number of international tournaments, including the world youth.

Her breakthrough silver here guarantees Ms. Inan P150,000 in cash incentives from the government.

There’s one thing she might buy for herself as a reward.

“Baka iphone,” she said.

Asked what she can advise other scavengers, the SEAG silver medalist said: “Pumasok sila sa sports.” (Get into sports) — Olmin Leyba

Conqueror Indonesia or tough Thailand will be Gilas Pilipinas’ semifinals foe

PHILIPPINE STAR/JUN MENDOZA

PHNOM PENH — Gilas Pilipinas better be at their sharpest under the difficult conditions of the 32nd Southeast Asian Games or else suffer a more embarrassing finish than last time.

The Nationals continue their redemption drive from that numbing, unacceptable-to-most silver in Vietnam as they return to the linoleum surface of the Morodok Techo Elephant Hall 2 today in a can’t-lose semifinal game.

The opponent of the Group A No. 2 Filipinos in the 5 p.m. Final Four (6 p.m. Manila time) won’t be known until 2021 conqueror Indonesia and tough Thailand have settled their fight for top seeding over in Group B.

The Timnas and the Thais were slated to play last night.

Either way, it will be a tough matchup for the Chot Reyes-coached team, which is dealing with the slippery court and other off-court issues like lack of quality training venues on the side.

The Timnas are parading three naturalized players in Lester Prosper, Anthony Beane and Dame Diagne in a bid to retain the crown they famously snatched from Gilas last year.

Thai-Americans Tyler Lamb, Moises Morgan, Frederick Lee Jones Lish, Antonio Price Soonthornchote, and Jakongmee Morgan, meanwhile, lead Thailand’s ambitious rise-to-the-top mission.

Gilas goes into the semis as the No. 2 team in Group A on its 2-1 record, yielding the top seeding to a naturalized player-laden Cambodia, which went undefeated in three games.

After a 79-68 loss to Cambodia dropped them to 1-1, the Nationals rebounded with a 105-45 thrashing of lightweight Singapore to secure their semis entry.

“Of course, everyone was disappointed after the loss (to Cambodia). But we kept our focus in the big picture. We came here to win the gold so we’re focused on that,” said Mr. Reyes.

The Pinoy dribblers used the Singapore game as “preparatory practice” for the semis, where a loss could relegate them to the battle for the bronze. — Olmin Leyba

Manila Chooks! eyes podium finish in FIBA 3×3 Manila Masters

MANILA Chooks! is out to pull off big surprises in a bid to catch the podium in the return of the FIBA 3×3 World Tour Manila Masters next weekend at the Glorietta Activity Center.

Under the guidance of former player-turned-trainer Chico Lanete, Manila Chooks! is ranged against a stacked field from Europe, China, Japan, Qatar, Puerto Rico and Mongolia.

But Manila Chooks! is unfazed, especially with a chance to garner more points in boosting the country’s qualification bid to the Paris Olympics.

“We are set to encounter formidable opponents in the upcoming Manila Masters, yet I have full confidence that the new Manila Chooks! squad is more than capable of rising to the challenge,” said Chooks-to-Go President Ronald Mascariñas.

The Manila Masters is a Level 10 tourney — the highest in the 3×3 pro circuit — with a $40,000 grand prize at stake. It’s also a qualifier to the FIBA 3×3 World Tour finals in December to be held at the still-to-be-announced venue.

With productive stints in Mongolia and Amsterdam as well as a mission of surpassing its quarterfinal finish last year, the Philippine ball club vows to put on a show in front of home fans.

“I expect in this upcoming tournament that our run-and-gun style of play will be on full display. We can shoot outside and drive inside,” said Mr. Lanete in a media availability at the new Chooks dine-in restaurant in Pasay over the weekend.

Mac Tallo, the country’s top 3×3 player, headlines the Manila Chooks! pool with Brandon Ramirez, Dennis Santos, Dave Ando, CJ Payawal, Matt Salem and Paul Desiderio.

Standing in their way are elite bets from world No. 1 Ub Huishan of Serbia, No. 5 Riga of Olympic gold medalist Latvia, No. 6 Amsterdam HiPRO of the Netherlands and No. 8 Sansar MMC Energy of Mongolia among the few. — John Bryan Ulanday

Samuel ‘Pink’ Morrison rules -87kg class in taekwondo

PHNOM PENH — Samuel Morrison flew in with his hair dyed pink.

He said it’s not exactly “pahiyang” or luck in the taekwondo competitions here but more to do with the business he plans to put up after finishing his farewell tour this year.

“Na-tripan ko lang,” said Mr. Morrison, smiling as he touched the colored hair that stood out among the participants of the 32nd Southeast Asian Games.

Mr. Morrison ruled the men’s -87kg class to bounce back from his bronze last time in the -80kg play. The former UST star had won three straight golds in different weight divisions from 2015 to 2019 before an injury prevented him from snaring No. 4 in Hanoi.

Before he eventually calls it a national team career, Mr. Morrison wants to achieve something in the coming Asian Games in China.

Now 33 years old, Mr. Morrison feels he’s already served national duties extensively. — Olmin Leyba

Kerr wants to try again

Head coach Steve Kerr was nothing if not candid in the aftermath of the Warriors’ elimination from the 2023 National Basketball Association Playoffs. It wasn’t simply that he doffed his hat to the Lakers, viewing the purple and gold to be better and deserving of a spot in the Western Conference Finals. More significantly, it was that he acknowledged his charges’ ceiling to have been met. Never mind their inability to defend the championship; he particularly noted how their travails began from the get-go, and did not let up in the regular season and throughout the semifinals.

Indeed, Kerr admitted that the Warriors “maxed out.” And he’s right. From their hideous road record to their first-round difficulties against the Kings (who hadn’t made the postseason in 15 years) to their evident handicaps versus the Lakers, the blue and yellow needed to overcome myriad intrinsic infirmities just to try to compete on even footing. It didn’t help as well that their start was shrouded in controversy, with veteran stalwart Draymond Green and next-generation prospect Jordan Poole the subjects — and, yes, models — of endless speculation on the state of their esprit de corps.

All the same, Kerr pushed back against the notion that the Warriors’ core of Green, two-time Most Valuable Player awardee Stephen Curry, and five-time All-Star Klay Thompson are done. From his vantage point, the so-called dynasty may be on its last legs, but it isn’t dead yet. Which, in a nutshell, means he wants another crack at the hardware with them. All the others, Poole included, are deemed expendable. Whether it’s possible under the stricter financial vise of the new collective bargaining agreement — and with the renewal of the contract of general manager Bob Myers still a big question mark — remains to be seen.

Under the circumstances, there can be no doubting that Kerr and Company want to run it back. They’re not keen on seeing failure as the last chapter of their storied reign in the league. In this vein, it’s fair to argue that Green and Thompson, both eligible for contract extensions, will be open to accepting Warriors-friendly terms. That said, their To Dos are clear, and, needless to say, require no small measure of commitment. They lack size and depth, and how they get to address both will ultimately determine their fate.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and human resources management, corporate communications, and business development.

Philippines uses buoys to assert sovereignty in South China Sea

AN AERIAL photo of Philippine-occupied Thitu Island, locally known as Pag-asa, in the contested Spratly Islands. — REUTERS

By Kyle Aristophere T. Atienza, Reporter

THE PHILIPPINES has placed navigational buoys within its exclusive economic zone to assert sovereignty over the disputed Spratly islands in the South China Sea, a coast guard spokesperson said on Sunday.

The step comes amid China’s increased assertiveness in the South China Sea as Philippine President Ferdinand R. Marcos, Jr. pursues warmer ties with treaty ally the United States.

The Philippine Coast Guard said it had set up five buoys carrying the national flag on May 10 to 12 in five areas within the 200-mile (322-km) zone, including Whitsun Reef, where hundreds of Chinese maritime vessels moored in 2021.

“This move highlights the Philippines’ unwavering resolve to protect its maritime borders and resources and contribute to the safety of maritime trade,” Commodore Jay T. Tarriela, the coast guard spokesman on South China Sea issues, he said in a Twitter message at the weekend.

The Chinese Embassy in Manila did not immediately reply to a request for comment.

In May 2022, the Philippine Coast Guard installed five navigational buoys on four islands in the Spratlys.

A United Nations-backed international arbitration court based in the Hague voided China’s claim to almost the entire South China Sea in 2016.

Brunei, Malaysia, Taiwan and Vietnam also have claims in the Spratlys, where China has dredged sand to build islands on reefs and equipped them with missiles and runways.

Beijing has for years deployed hundreds of coast guard and fishing vessels in disputed areas.

Raymond M. Powell, a fellow at Stanford University’s Gordian Knot Center for National Security Innovation, urged Mr. Marcos Jr.  to push for legislation that would formalize the Philippine Coast Guard’s transparency strategy that exposes China’s illicit activities in Philippine waters.

“It is very important to formal-ize this strategy, at least through official policy, but preferably through legislation,” he said in a Twitter message at the weekend. “This protects the policy against the political pressures that will inevitably be brought by those who find the sunlight uncomfortable.”

He said maritime transparency builds “national resilience” against the gray-zone tactics of China, which he said wants to keep its coercion and harassment at sea “to stay as gray as possible.”

“They prefer to bully their smaller neighbors in the shadows, with private warnings between government officials to remain quiet,” he said, noting that the transparency strategy makes the Philippines a “harder target for bullying.”

In February, the Philippine Coast Guard released a video showing the Chinese Coast Guard’s use of a military-grade laser to harass a Philippine ship supporting resupply mission at the Second Thomas Shoal, which is within the Philippines’ exclusive economic zone. 

The coast guard has called China’s use of laser “a clear violation of Philippine sovereign rights.” China has rejected the claim, saying the use of laser was meant to “ensure navigation safety.”

The incident drew a sharp response from various countries including the United States, Australia, Japan, Canada, Germany, Denmark and United Kingdom.

“The transparency policy also builds support in the international community, mobilizing allies and partners to provide more security support,” Mr. Powell said.

“Finally, it increases the reputational costs for China, which over time should deter the use of these tactics by forcing them to recalculate the risk-reward calculus.”

‘INGENIOUS TOOL’
A Chinese Coast Guard and ships and Philippine patrol vessel carrying journalists almost collided on April 23.

It happened just a day after Chinese Foreign Minister Qin Gang met with Mr. Marcos in Manila where they agreed to establish more “lines of communication.”

During the incident the Chinese vessel kept a distance of 50 yards (46 meters) from the Philippine vessel BRP Malapascua.

The Philippine Coast Guard had spotted a swarm of more than 100 Chinese vessels during its April 18- 24 journey.

The Philippines, Vietnam, China, Brunei, Taiwan and Malaysia hold different — in some cases overlapping — territorial claims over the South China Sea.

Other countries that are also against China’s expansive activities in the South China Sea should also expose Beijing’s behavior at sea, security analyst Karl Gerard See said in a Facebook Messenger chat.

“The transparency policy is an ingenious tool that smaller actors in the region can use to expose China’s gray-area activities’,” he said. “The reason why these are called gray area is because they aren’t exactly legal.”

Mr. See and Jay L. Batongbacal, who heads the University of the Philippines Institute for Maritime Affairs and Law of the Sea, said it’s too early to say whether the transparency strategy has been effective in keeping China at bay. 

“Only time will tell because China tends to ignore media exposure and similar allegations,” Mr. See said. “But if a concerted effort is done by smaller actors in Southeast Asia to expose these activities, we might see the other side take a more cautious response.”

“Other claimants will do so if they see the benefits that arise out of transparency,” Mr. Batongbacal said in a Viber message.

The Gordian Knot Center last week said several Chinese maritime militia vessels accompanying a Chinese research ship were headed to Vietnam’s waters. The ships appeared to have interrupted their deployment to the Spratlys and approached the path of seven Association of Southeast Asian Nations and Indian ships holding a maritime exercise that sailed through the South China Sea, it said.

“This (transparency strategy) is not something intended to produce an instantly permanent reaction,” Mr. Batongbacal said. “China may decide to adjust and adapt by taking a new track.”

He also said legislation might not be an appropriate means of establishing policy “over a problem as dynamic as the West Philippine Sea and South China Sea disputes.” — with Reuters

De Lima acquittal shows how Duterte gov’t abused Justice system — analysts

By John Victor D. Ordoñez, Reporter

THE DISMISSAL of one of the two remaining drug trafficking charges against former Senator Leila M. de Lima, one of ex-President Rodrigo R. Duterte’s staunchest critics, showed how the government used the law to harass critics, according to political experts.

“Her delayed acquittal shows how corrupt and weak our justice system and institutions are,” Arjan P. Aguirre, who teaches political science at the Ateneo de Manila University, said in a Facebook Messenger chat at the weekend. “If they can do this to a senator, imagine what they can do to an ordinary citizen.”

Justice spokesman Jose Dominic F. Clavano IV did not immediately reply to a Viber message seeking comment.

A Muntinlupa court on May 12 acquitted Ms. De Lima and her former aide of drug trafficking charges, citing reasonable doubt.

The former lawmaker, who has been detained since 2017, faces one more illegal drug case. A trial court dismissed her first drug case in 2021.

Four witnesses have taken back their allegations against Ms. De Lima, all claiming to have been coerced by the government of Mr. Duterte to fabricate stories against her.

Ms. De Lima had applied for bail based on those retractions, for which the court had yet to rule. Her first application for bail was denied in 2020.

The former senator has asserted her innocence, saying she was being tried for criticizing the government’s deadly drug war.  Last year, the Ombudsman cleared her and her former aide of bribery charges for lack of evidence.

The Department of Justice would not oppose a bail plea by Ms. De Lima, Justice Secretary Jesus Crispin C. Remulla said in February.

“The acquittal is crucial in the sense that it proves the point that these are contrived cases and judges cannot find any justification to convict her,” Ephraim B. Cortez, president of the National Union of Peoples’ Lawyers, said in a Viber message.

He said the recent acquittal would not affect the court’s decision on the third drug trafficking case since it is based on a different set of facts.

“However, since the third case is also a contrived case, it cannot survive judicial scrutiny, just like what happened to the first and second cases,” Mr. Cortez said.

Amnesty International on Friday said the trial court’s decision was “long overdue.”

“We urge the authorities to also quash the remaining drug case and to ensure that her application for temporary freedom in this pending case is processed speedily and fairly,” interim Deputy Regional Director for Research Montse Ferrer said in a statement.

The global watchdog in February said the state violated her right to a fair trial through her arbitrary detention.

In 2016, Ms. De Lima led a Senate probe into vigilante-style killings in Davao when Mr. Duterte was still mayor and vice mayor of the city. She was arrested a year later after allegations of her involvement in the illegal drug trade.

At least 6,117 suspected drug dealers had been killed in police operations, according to data released by the Philippine government in June 2021. Human rights groups estimate that as many as 30,000 suspects died.

Mr. Duterte’s drug war is now being investigated by the International Criminal Court for possible “crimes against humanity.”

“Don’t forget, she has been robbed of her liberty, was denied of years of service as a senator, and constantly maligned and ridiculed for a crime that was only made up by the Duterte government,” Mr. Aguirre said.

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