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Ilocos Norte wooing firms from sister-province Shandong, China; Cebu Pacific resumes Manila-Laoag flights 

ILOCOSNORTE.GOV.PH

ILOCOS Norte is aiming to attract companies from its sister province Shandong in China to venture in the northern Philippine province. 

The Ilocos Norte provincial government said Gov. Matthew Marcos Manotoc continuously works to create a more investment-friendlyenvironment by ensuring quality infrastructures are built to accommodate business operations, offering strong government support through the amendment of the provinces code to maximize the benefits of all economic activities to all stakeholders.”    

The sisterhood agreement between the two provinces was signed in 2002 and various cooperation and partnership programs have been established in different sectors.  

Ilocos Norte is eyeing new investments from Shandong, one of the biggest provinces in China in terms of population and economic output.  

A delegation from Ilocos Norte including government officials and representatives of food and agriculture, tourism and creative industries, and trade and investment promotions sectors were in Shandong last week for a trade mission and explore new partnerships and exchange programs.  

Meanwhile, budget carrier Cebu Pacific launched on Monday the return of its flights between Manila and Laoag City, capital of Ilocos Norte.   

Laoag plays a crucial role in preserving the country’s rich history and culture, and Cebu Pacific is excited to finally be able to bring more Juans to this beautiful city,said Michael Ivan S. Shau, Cebu Pacific Air chief corporate affairs officer.  

Perry Martinez, general manager of the Metro Ilocos Norte Council, said in a press briefing Sunday that plans are set for the Laoag Airport expansion to accommodate more domestic and international.  

We are thrilled to welcome back Cebu Pacific to our province, as this signals a renewed hope for our tourism industry. We hope that more airlines will follow suit, as we continue to work together to revitalize our economy and bring back the vibrancy of Ilocos Norte’s tourism sector,said Mr. Manotoc in a statement from the airline. Artemio A. Dumlao  

FedEx opens Cebu logistics solution for dangerous goods 

FEDEX PHOTO RELEASE

FEDEX EXPRESS, a subsidiary of New York Stock Exchange-listed FedEx Corp. has launched its one-stop-shop logistics solutions for dangerous goods in Cebu.   

The facility can handle shipment of more than 2,200 types of dangerous goods such as paints, perfumes, bleaches and electronic devices with lithium batteries to overseas markets, the company said in a statement on Monday. 

“This suite of services gives businesses enhanced capabilities to expand their portfolio and meet the growing demands of their customers,FedEx Express Philippines Managing Director Maribeth Espinosa said in the statement.  

We hope to open up more possibilities for local businesses to tap into global trade opportunities, as well as contribute towards Cebus continuous growth, as one of the countrys key economic and tourism hotspots,” she said.  

Dangerous Goods are items or substances that may pose health, safety, or environmental hazards if not handled carefully.   

FedEx said it has also recently relaunched its International Economy services, 

which gives Philippine businesses with less urgent shipments more flexible connection to 170 markets. 

Senate passes bill on shared-service facilities for MSMEs 

THE SENATE has approved a bill seeking to establish common service facilities or production centers for micro, small, and medium enterprises (MSMEs) nationwide.  

The proposed measure will institutionalize the Trade and Industry departments shared service facilities (SSF) program that was launched in 2013 and has since set up various communal centers for equipment and training initiatives.   

On Monday, 22 senators voted yes to Senate Bill No. 2021, while none negated nor abstained.   

According to the measure, SSFs will give MSMEs access to better technology and more sophisticated equipment to accelerate their bid for competitiveness,and help them enter the global supply chain.  

The DTI, alongside relevant government agencies, local government units, private institutions, and stakeholders, will establish SSF-Fabrication Laboratories in at least one strategic location per province to assist MSMEs.   

The laboratories will be attached to state or local universities and colleges, private schools, colleges and universities, and government academic training institutions in the province.  

A similar measure was filed at the House of Representatives last week. 

Funding for the program will come from the national budget under the DTI. Beatriz Marie D. Cruz 

Peso down vs dollar

THE PESO weakened against the dollar on Monday as discussions regarding the US debt ceiling stalled over the weekend.

The local currency closed at P55.82 versus the dollar on Monday, down by 15 centavos from Friday’s P55.67 finish, data from the Bankers Association of the Philippines showed.

The local unit opened Monday’s session flat at P55.67 per dollar. Its worst showing for the day was at P55.84, while its intraday best was at P55.65 versus the greenback.

Dollars traded inched up to $981.5 million on Monday from the $979.6 million recorded on Friday.

“The peso weakened from market caution amid reports that the US debt ceiling negotiations have stalled anew during the weekend,” a trader said in an e-mail.

The peso was dragged down by a stronger dollar last week after House Republican negotiators walked out of the meeting discussing the debt ceiling on Friday, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

US President Joseph R. Biden, Jr. and House Republican Speaker Kevin McCarthy were set to meet to discuss the debt ceiling on Monday, after the two leaders held a phone call on Sunday as the president flew back to Washington that both sides described as positive, Reuters reported.

Less than two weeks remain until June 1, when the Treasury department has warned that the federal government could be unable to pay all its debts, a deadline US Treasury Secretary Janet Yellen reaffirmed on Sunday. A failure to lift the debt ceiling would trigger a default that would cause chaos in financial markets and spike interest rates.

The dollar was steady against the euro and yen on Monday, as US debt ceiling negotiations were set to resume and after Federal Reserve Chair Jerome H. Powell indicated he favors a meeting-by-meeting approach when it comes to future policy moves.

The greenback was down 0.1% at 137.85 yen to start the week, having snapped a six-day winning streak on Friday, pulling back from a six-month peak.

For Tuesday, the trader said the peso could depreciate further against the dollar on expectations of hawkish comments from Fed officials.

The trader sees the peso moving between P55.70 and P55.95 per dollar, while Mr. Ricafort sees it trading from P55.70 to P55.90. — AMCS with Reuters

Stocks fall on profit taking as market eyes leads 

PHILIPPINE STAR/KRIZ JOHN ROSALES

PHILIPPINE SHARES closed lower on Monday due to profit taking, with investors staying on the sidelines as they await progress in the US debt ceiling talks and fresh leads.

The bellwether Philippine Stock Exchange index (PSEi) fell by 43.72 points or 0.65% to close at 6,620.83 on Monday, while the broader all shares index went down by 14.34 points or 0.4% to end at 3,534.03.

“The PSEi closed lower, cutting short its positive momentum last Friday, as investors take profit ahead of the crucial US debt ceiling talks later tonight (Philippine time),” Unicapital Securities, Inc. Senior Equity Research Analyst Carlos Angelo O. Temporal said.

“Part of it can be also attributed to a technical correction after the index flirted with key resistance level of 6,700 last Friday,” Mr. Temporal added.

AB Capital Securities, Inc. Vice-President Jovis L. Vistan likewise said in a Viber message that stocks fell due to profit taking.

“The lack of volume also means there’s little bid and ask volume, which tends to create price volatility on either side,” Mr. Vistan said.

“The local bourse lost 43.72 points (0.66%) to 6,620.83 amid concerns over the US debt ceiling. Investors will be waiting for any developments on the matter, as its resolution or lack thereof could significantly impact the economy and the market. There was also a lack of catalysts to drive the market upwards,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.

US President Joseph R. Biden and House Republican Speaker Kevin McCarthy were set to meet to discuss the debt ceiling on Monday, after the two leaders held a phone call on Sunday as the president flew back to Washington that both sides described as positive, Reuters reported.

Less than two weeks remain until June 1, when the Treasury department has warned that the federal government could be unable to pay all its debts, a deadline US Treasury Secretary Janet Yellen reaffirmed on Sunday. A failure to lift the debt ceiling would trigger a default that would cause chaos in financial markets and spike interest rates.

Back home, all sectoral indices fell on Monday except for mining and oil, which rose by 8.54 points or 0.08% to 10,305.36.

Meanwhile, financials declined by 20.93 points or 1.11% to 1,858.13; property went down by 19.52 points or 0.7% to 2,736.68; industrials shed 64.28 points or 0.67% to end at 9,436.44; holding firms fell by 29.50 points or 0.44% to 6,583.76; and services decreased by 5.32 points or 0.33% to 1,571.63.

Value turnover rose to P7.03 billion on Monday with 1.73 billion shares changing hands from the P5.77 billion with 21.32 billion issues traded on Friday.

Decliners outnumbered advancers, 116 versus 67, while 47 names closed unchanged.

Net foreign buying surged to P2.84 billion on Monday from the P298.73 million seen on Friday.

AB Capital Securities’ Mr. Vistan placed the PSEi’s support at 6,500 and resistance at 6,800. — A.H. Halili with Reuters

Napocor seeking P10B from LANDBANK as diesel bill rises

PHILSTAR FILE PHOTO

THE National Power Corp. (Napocor) said it plans to borrow P10 billion from Land Bank of the Philippines (LANDBANK) to keep its Small Power Utilities Group (SPUG) running in the face of higher diesel prices.

Fernando Martin Y. Roxas, Napocor president, said that Napocor is planning to borrow more from LANDBANK on top of the P5 billion Napocor obtained earlier.

“We’re hoping to get it by August or September this year. Hopefully by August this year,” Mr. Roxas told reporters at an energy conference.

Napocor serves remote areas not connected to the grid through SPUG, which mainly operates diesel power plants.

He said the P10 billion is estimated to be sufficient to fund Napocor’s fuel requirements for the rest of the year.

Mr. Roxas said the plan to seek financing has been lodged with the Monetary Board.

“We already asked for the Monetary Board’s approval and are beginning to apply for the sovereign guarantee,” he said.

In March, Napocor announced that it will no longer go ahead with an earlier plan to reduce the operating hours of its SPUG power plants.

The plan to reduce operating hours had been floated at a time of unusually high diesel prices, following the outbreak of the Russia-Ukraine war.

Napocor has since pivoted to the expansion of off-grid renewable energy (RE) power plants, with a target of going full RE before 2030. — Ashley Erika O. Jose

LTO’s Tugade says departure will give Transport department ‘free hand’ in running agency

ASSISTANT Transport Secretary Jose Arturo M. Tugade said his departure from the Land Transportation Office (LTO) was the result of a conflicting ideas on how to run the office with the Department of Transportation (DoTr), its parent agency.

“For this reason, I am stepping down so Secretary Jaime J. Bautista will have the free hand to choose who he can work best with,” Mr. Tugade said in a statement.

“Even as the Department of Transportation (DoTr) and LTO both aim to succeed in serving the public, our methods to achieve that success differ,” Mr. Tugade said.

Mr. Tugade did not elaborate on his differences with the DoTr.

The resignation takes effect on June 1.

Mr. Tugade took office on Nov. 17, 2022. He is the son of the former Transport Secretary, Arthur P. Tugade.

“I will continue to root for the LTO’s success even as a private citizen, because I will always share in Secretary Bautista’s belief that our offices can be a formidable force for good in our country,” he said.

In a separate statement, Mr. Bautista said that the DoTr will recommend to the Office of the President a new official to head the LTO.

“We extend our appreciation to Assistant Secretary Tugade for his seven-month stint as Assistant Secretary of the LTO,” Mr. Bautista said.

“His pursuit of service innovations at LTO benefited the public, for which this office is grateful,” he said.

During his term, Mr. Tugade introduced electronic systems, online renewal options, a cap on driving school rates, incentives for electric vehicle users, and a three-year validity period for registering motorcycles with engine displacements of 200 cubic centimeters and below.

Late Monday, the Palace announced in a statement the appointment of Roque I. Verzosa III as regional director of the LTO-National Capital Region (NCR).

The appointment signals the merger of LTO’s the two NCR offices, the Palace said.

“With the appointment of Mr. Verzosa, the LTO-NCR East and the LTO-NCR West are now merged into one regional office, which shall be composed of at least 65 field district offices, extension offices, licensing centers, including those located at malls, and other similar offices,” the Palace said.

Before the appointment, Mr. Verzosa had served as officer-in-charge regional director of LTO-NCR-West starting October 2022. He also held the position of assistant regional director of LTO-NCR-West. — Justine Irish D. Tabile

Miners facing scrutiny over type of energy used

MINING COMPANIES are increasingly being evaluated by their buyers over the type of energy they use in their operations, an industry official said.

“A new ethic in doing business, particularly in the mining industry, is now emerging worldwide,” Offshore Mining Chamber of the Philippines, Inc. Chairman Michael Raymond A. Aragon said in a statement.

Mr. Aragon said that miners are now being required to disclose to their buyers the types of energy they use.

“If the energy source used for mining is not clean or green then most buyers will refuse the miner’s business,” he said.

“We welcome this new emerging norm in doing business transactions internationally especially in the mining industry… we all have to act on the urgent need to fight the global climate emergency that threatens humanity with species extinction if not abated soon,” he added.

Michael L. Ricafort, chief economist from the Rizal Commercial Banking Corp., said demand for clean energy in supply chains is largely driven by companies who are being rated on their performance on environmental, social, and governance (ESG) criteria.

He said ESG drives many companies to “further reduce, if not eliminate, carbon emissions/footprint in the coming years” with the encouragement of institutional investors and regulators.

“This encourages the shift towards more renewable and sustainable power/energy and other business practices as the cost of renewable power such as wind, solar, hydro, among others has decreased in recent years,” he said in a Viber message.

However, Mr. Ricafort said some miners in the Philippines remain constrained due to the lack of access to renewable power.

“One of the challenges includes the need to bring in/roll out more renewable power capacity in the country and reduce dependence on non-renewable power sources such as coal and other petroleum-based energy/hydrocarbons,” he said.

The Department of Energy estimates that renewable energy (RE) capacity increased 4% to 8,255 megawatts in 2022.

RE currently accounts for 29% of the energy mix, with a target to expand to 35% by 2030 and 50% by 2040. — Sheldeen Joy Talavera

Labor sector pushes back against proposal to restructure Duty Free PHL

DUTY FREE PHILIPPINES

By John Victor D. Ordoñez, Reporter

A RETRENCHMENT PLAN for Duty Free Philippines Corp. (DFPC) runs counter to a government pledge to raise employment in the tourism industry over the next five years, a labor group said.

“The Federation of Free Workers (FFW) is committed to supporting initiatives to generate jobs from tourism,” FFW President Jose G. Matula said in a Viber message.

“To protect jobs in the industry, FFW urgently calls on the government to halt the ongoing downsizing plan and worker retrenchment within DFPC.”

In March, DFPC released the implementing rules and regulations for its rightsizing plan, which the FFW said could lead to the retrenchment of over 700 rank-and-file employees.

The retrenchment plan is authorized by Republic Act 10149 or the Government-Owned and -Controlled Corporation Governance Act of 2011.

DFPC had not replied to a request for comment at the deadline.

Mr. Matula said the government should ensure security of tenure for government employees in the tourism industry.

“The government should avoid any unnecessary terminations and explore alternative measures such as retention, redeployment, and performance evaluations to ensure the workforce remains intact and productive,” he said.

The Department of Tourism (DoT) hopes to generate 34.7 million tourism-related jobs and take in 51.9 million international arrivals by 2028, according to the recently approved National Tourism Development Plan.

Last week, President Ferdinand R. Marcos, Jr. approved the plan, which aims to establish a tourism industry “anchored on Filipino culture, heritage and identity which aims to be sustainable, resilient and competitive in order to transform the country as a tourism powerhouse.”

Jose Enrique A. Africa, executive director of the think tank IBON Foundation, said the government should also consider workers’ rights as well as tourism’s impact on the environment and local communities.

“We’d also be concerned about the obsession with metrics for tourism success like investment, revenue and visitors yet heedless of the economic rights of workers in the industry,” he said in a Viber message.

“An industrialized economy is the only real and sustainable source of economic dynamism and strength for the Philippines.”

The government should look to the modernization of agriculture and industrialization in fostering development and job creation, Mr. Africa added.

This year, the DoT aims to attract 4.8 million international tourists and set a revenue target of P316 billion from foreign tourist spending. The revenue goal for domestic tourist spending is P1.93 trillion.

The Philippines has logged 2.029 million international visitors and P168.5 billion in visitor receipts in the four months to April, according to the Tourism department.

House approves measure calling for 30-year infrastructure program plan on third reading

PHILIPPINE STAR/ MICHAEL VARCAS

THE House of Representatives approved on third reading a bill seeking to adopt a 30-year National Infrastructure Program (NIP).

At Monday’s plenary session, 254 legislators voted to approve House Bill No. 8078, with three voting against and zero abstentions.

The infrastructure plan aims to achieve “the overall long-term development vision for the Philippines by the middle of the century as a prosperous, predominantly middle-class society,” according to the bill.

The bill proposed to focus infrastructure efforts on transportation, energy, water resources, information and communications technology, agri-fisheries modernization and food logistics, and social infrastructure.

The NIP will be funded by the national budget, public-private partnership (PPP) arrangements, including hybrid PPPs, or local government units, or a combination of these sources.

The measure set a goal of developing a national transport system that is safe, efficient, economical, accessible, affordable, environmentally sustainable, user-oriented, integrated, and seamless. It also seeks to address the “fragmented” nature of water resources management.

The bill set objectives for a digital infrastructure network that ensures internet access to unserved and underserved areas, and to provide schools with facilities for online or distance learning.

“Massive infrastructure spending has been a consistent feature of previous and current administrations, (which see it) as key driver of economic growth and a generator of job opportunities. However, we have seen how this policy thrust has barely translated to meaningful transformative changes in the Philippine economy, especially on the quality of life,” Assistant Minority Leader and Gabriela Party-list Representative Arlene D. Brosas, one of the legislators voting against the measure, said.

She added that the NIP “will lock in public resources towards projects that will primarily benefit foreign investors, exporters of steel and cement and local partners for a long period of time.”

She said that resources should be focused on producing capital goods and achieving genuine agrarian reform. — Beatriz Marie D. Cruz

Nuclear planners should prepare for plant life cycles of up to 100 years — PIDS 

DOOSAN HEAVY INDUSTRIES

THE PHILIPPINES must be prepared for some of the little-discussed aspects of operating nuclear power plants, including a plan life cycle of as long as 100 years, a government think tank said.

“Should the Philippines commit to a nuclear energy program, it must be prepared for a period of 100 years from construction to decommissioning,” Adoracion M. Navarro, senior research fellow at the Philippine Institute for Development Studies (PIDS), said in a statement.

At a webinar organized by PIDS, Ms. Navarro said the government must look into all the ramifications of adopting nuclear power.

“The Philippines is not letting go of its nuclear power ambitions; that is why we need to seriously consider the implications,” she said.

According to Ms. Navarro, the positive side of the nuclear power equation includes “reliability and how it can help the country’s climate targets given nuclear power’s zero carbon emissions.”

She said issues that need to be addressed include safety, waste disposal, and the cost of complying with rigorous international rules governing nuclear power.

Ms. Navarro recommends that the government conduct a comprehensive assessment of a nuclear power plant’s disaster risks and establish clear protocols for construction, decommissioning, and waste disposal and storage.

The Philippine Nuclear Research Institute has said that the government is considering small modular reactors in Occidental Mindoro and Palawan.

“It is the DoE (Department of Energy) that knows the suitable locations for SMRs, if SMRs are pursued. For big nuclear power plants our option is to revive BNPP or build a new one beside it because there is space for another reactor. The original plan for BNPP is to have two reactors. It depends on the decision of policymakers and willingness of private investors,” Ms. Navarro said.

At the webinar, Anne Estorco Montelibano, president of Philippine Independent Power Producers Association, said a policy and regulatory framework should be established to assess the feasibility of nuclear power.

“It needs a strong framework both on the policy and regulatory side. As investors, as generators, we would like to see what direction it is headed before actually trying to evaluate feasibility. As regards SMRs, the technology is expensive without the proper framework and we don’t want to pre-empt anything. This is a technology that we have to be very careful with,” Ms. Montelibano said.

Kris A. Francisco, a research fellow at PIDS said that the government should also ensure climate-proofing the power infrastructure surrounding any plant, which she called a significant investment that needs to be planned for. — Ashley Erika O. Jose

House approves land use, town specialization bills on third reading

PHILSTAR FILE PHOTO

THE House of Representatives passed on third reading measures that optimize land use and encourage municipalities to consider product specialization.

At Monday’s plenary session, 262 legislators voted in favor of House Bill (HB) No. 8162, while three voted against and zero abstained.

The proposed National Land Use Act seeks to help local governments and land users identify the best use of land.

The measure proposes to create the National Land Use Commission (NLUC) under the office of the President. It will be authorized to resolve land use conflicts between and among agencies, branches, or levels of government. The NLUC will take over the powers of the National Land Use Committee, which will be abolished.

The NLUC is tasked with drafting the National Physical Framework Plan, which will have a 30-year timeline and must be updated every 10 years.

The bill calls for a 5% idle land tax on any person or entity that causes irrigated land to remain unproductive for more than a year. If the land remains unproductive for two years, it will revert to the State.

Meanwhile, 268 legislators also approved on third reading HB 1171, which seeks to institutionalize the Trade and Industry department’s One Town, One Product (OTOP) Philippines program. No legislator voted in opposition or abstained.

The OTOP program was first launched in 2004, and has since been extended to micro, small, and medium enterprises.

The measure seeks to ensure that OTOP production follows standards set by the Department of Trade and Industry, including brand development.

The Senate approved a similar bill in March. — Beatriz Marie D. Cruz

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