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PHL shares may move sideways before US data

BW FILE PHOTO

PHILIPPINE STOCKS may continue to move sideways as the market awaits the release of August US consumer and producer inflation data, which could provide more support to growing expectations of a US Federal Reserve rate cut this month, especially following the soft jobs reports released last week.

On Friday, the Philippine Stock Exchange index (PSEi) rose by 0.69% or 42.21 points to close at 6,149.13, while the broader all shares index went up by 0.4% or 14.79 points to 3,692.71.

Week on week, however, the PSEi went down by 6.44 points from its close of 6,155.57 on Aug. 29.

“Higher yet manageable August inflation and positive signs for Fed easing in September kept the PSEi above the 6,100 zone despite a frail start during the week,” online brokerage 2TradeAsia.com said in a market note.

“The market ended in the green, … supported by sustained buying pressure as investors continue to take advantage of relatively attractive prices. Moreover, the latest inflation report looks like it was received positively, coming in within the BSP’s (Bangko Sentral ng Pilipinas) target range and boosting sentiment,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

Headline inflation picked up to 1.5% in August from 0.9% in July, but was slower than the 3.3% recorded in the same month a year ago, the Philippine Statistics Authority reported on Friday.

This was slightly higher than the 1.3% median estimate in a BusinessWorld poll of 16 analysts but was within the central bank’s 1%-1.8% forecast for the month.

For the first eight months, inflation averaged 1.7%, matching the central bank’s forecast for this year.

Meanwhile, US job growth weakened sharply in August and the unemployment rate increased to nearly a four-year high of 4.3%, confirming that labor market conditions were softening and sealing the case for a US Federal Reserve interest rate cut later this month, Reuters reported.

Nonfarm payrolls increased by only 22,000 jobs last month after rising by an upwardly revised 79,000 in July, the Labor Department’s Bureau of Labor Statistics said on Friday. Economists polled by Reuters had forecast payrolls would rise by 75,000 jobs after a previously reported gain of 73,000 in July.

Financial markets expect the Fed will deliver a quarter-percentage-point rate cut at its Sept. 16-17 policy meeting, with two more such moves at its remaining two meetings in 2025. The central bank has kept its benchmark overnight interest rate in the 4.25%-4.5% range since December.

For this week, the market’s focus will be on the US inflation reports as these could pave the way for a Fed cut at next week’s review, 2TradeAsia.com said. It put the PSEi’s immediate support at 6,200 and resistance at 6,500.

Mr. Limlingan said markets are consolidating before the Fed’s meeting next week. “Markets are clearly rallying beneath the surface of shifting policy expectations and positioning.” — AGCM with Reuters

Creative industries counted on to make P2-T contribution to GDP

VECTORJUICE-FREEPIK

THE Department of Trade and Industry (DTI) is hoping to raise the creative industries’ contribution to gross domestic product (GDP) to P2 trillion this year.

“I hope we can reach P2 trillion this year. We really need to push the industry,” Trade Secretary Ma. Cristina A. Roque told reporters last week.

The creative economy posted an 8.7% increase in gross value added to GDP to P1.94 trillion last year, the Philippine Statistics Authority reported.

She said the DTI considers the creative industries to be a part of the economy where the Philippines holds a competitive edge.

“The creative industries are important for us because this is really where we excel, and I really believe that we must send our aces out there,” she said.

“When we travel, we get a lot of good reviews; we have used a lot of creative talent to really drive trade for us. But we really feel that the creative industries are a driver of trade and tourism,” she added.

She noted that South Korea has been using creative industries to drive trade and tourism.

To support the industry, she said that the DTI is seeking an increased budget for the creative industries.

“How can we push the industry when we don’t have a budget? They gave us only P50 million,” she said.

“And then we need to also talk to the different businessmen to explore our local talent,” she added.

Under the National Expenditure Program (NEP) 2026, the Malikhaing Pinoy Program has been allotted P50 million.

Among the segments being pushed by the department are gaming and animation.

“Anime and the game design are avenues where we feel we can really excel … I realized that a lot of people are already contracting with us, but a lot of people don’t know that that is also where our edge is,” she added.

On Thursday, the DTI opened the five-day Malikhaing Pinoy Expo 2025, which aims to highlight the Malikhaing Pinoy Program.

“We expect more people to know that there’s a Malikhaing Pinoy Program so more people can join, more people will be aware, and more people can support,” she added.

The event gathered representatives from the audiovisual media, visual arts, digital interactive media, design, performing arts, publishing, traditional cultural expressions, creative services, and cultural-site industries. — Justine Irish D. Tabile

Budget release rate hits 95.5% at end of August

BW FILE PHOTO

THE Department of Budget and Management (DBM) said 95.5% of the budget had been released at the end of August.

In its Status of Allotment Releases report, the DBM said P6.041 trillion of the P6.326-trillion budget has been disbursed, with P285.27 billion remaining undistributed.

The releases are behind the 96.9% pace posted at the end of August 2024. 

Among government agencies, 95.9% or P3.53 trillion has been released, with a remaining balance of P152.56 billion.

The Department of Public Works and Highways (DPWH) had received P1.13 trillion by the end of August or 97.7% of its allotted funds.

The new Public Works Secretary, Vivencio B. Dizon, and Budget Secretary Amenah F. Pangandaman have been given a two-week deadline to review the DPWH’s share of the proposed P6.793-trillion 2026 National Expenditure Program after irregularities surfaced in various government flood-control programs.

Special Purpose Funds releases totaled P394.86 billion, or 74.6%, with P134.73 billion remaining undisbursed.

Automatic Appropriation releases stood at P1.90 trillion, for a 90% release rate.

These included a P1.03-trillion National Tax Allotment for local governments, P636.02 billion in interest payments, and P83.42 billion for the Block Grant.

Additionally, P134.61 billion in unprogrammed appropriations were released, with P99.98 billion directed toward foreign-assisted projects.

Despite concerns surrounding the DPWH budget, the DBM expressed confidence that the overhaul of the 2026 NEP will not derail the budget process or result in a reenacted budget. — Aubrey Rose A. Inosante

PEZA obtains Taiwan investment pledges

THE Philippine Economic Zone Authority (PEZA) said it is expecting the entry of a number of proposed new-investment and expansion projects from Taiwan companies.

The commitments follow the Philippines-Taiwan Investment Forum, which drew around 100 representatives from Taiwan.

“The forum also served as a platform for targeted matchmaking and follow-up engagements, with investors expressing interest in opportunities across semiconductors, electronics, industrial estates, and consumer goods,” PEZA said in a statement over the weekend.

Among the projects secured during the event was a $4.3-million investment from Aromate Industries for the construction of a new facility at the LIMA Technology Center.

“This project marks the expansion of Aromate’s operations in the Philippines, following the start of its commercial operations in 2024,” PEZA said.

“The expanded facility will further strengthen Aromate’s manufacturing footprint in air care products for both regional and global markets,” it added.

Meanwhile, a Taiwan-based consumer electronics manufacturer earmarked up to a $6-million investment in a 1-hectare site in Batangas.

The facility, which will commence operations by November, will supply global clients seeking new production bases and is expected to create around 300 jobs.

A video products manufacturer also confirmed the establishment of its first production facility in the Philippines, which export premium video products worldwide.

“The company projects sales of up to $90 million within three years,” PEZA said.

Another commitment involves a global supplier of broadband and optical communication equipment which will start operating a new 18,000-square-meter facility in Laguna by next year.

Meanwhile, a pioneer in surface acoustic wave and bulk acoustic wave devices is planning to transfer additional capacity to the Philippines.

“Beyond company-specific projects, the (Philippine) delegation also engaged with like-minded industrial park organizations,” PEZA said.

“The meetings focused on investor briefings, cross-promotion, and investment facilitation, with both sides exchanging best practices on ecozone management, environmental systems, and talent development,” it added.

In particular, the delegation met with the Linhai Industrial Park Manufacturers Association to discuss opportunities in agro-industrial ventures, electronics, and related sectors.

To date, 78 Taiwan enterprises are registered with PEZA, accounting for over P17.1 billion in investments, $485 million in exports, and more than 26,600 jobs.

“Taiwan now ranks 8th among PEZA’s top investors, with sectors spanning semiconductors and electronics, information technology, fabricated metal, rubber, plastics, paper products, and other consumer goods,” PEZA said. — Justine Irish D. Tabile

National Tuna Plan to encourage more private fishing investment

PHILSTAR FILE PHOTO

THE National Tuna Management Plan (NTMP) will seek to encourage more private-sector investment in the tuna industry, the Bureau of Fisheries and Aquatic Resources (BFAR) said.

BFAR spokesman Nazario C. Briguera said the investment plan follows Agriculture Secretary  Francisco P. Tiu Laurel, Jr.’s calls for the private sector to participate in efforts to boost food security and self-sufficiency at the recent National Tuna Conference in General Santos City.

Mr. Briguera could give no estimates of the investment needed, but said private-sector participation “is one of the strategies identified in the National Tuna Management Plan.”

The NTMP updates the National Tuna Plan of 2018, and sets growth goals for the industry between 2026 and 2030.

Mr. Laurel has also called illegal fishing a direct threat to tuna stocks.

At the National Tuna Congress in General Santos City last week, Mr. Laurel said Philippine tuna enjoys a reputation for quality, but warned that “turbulent waters” lie ahead because of climate change, global sustainability mandates, labor issues, and the persistent threat of illegal, unreported, and unregulated (IUU) fishing,” according to a statement from the Department of Agriculture (DA).

The Philippine Statistics Authority reported that tuna production rose 20.5% in 2024 to 494,047.02 metric tons. Exports rose 31% to $514.47 million.

Overall fisheries output in the second quarter was down 2.6% year on year.

Mr. Laurel, speaking in General Santos called for united action across the entire industry, from fishing operators, canners, exporters, and regulators, and backed science-based management of tuna stocks, tighter enforcement, better traceability, and stronger support for fisherfolk.

The latest Illegal Fishing Index — a ranking of countries’ vulnerability to illegal fishing — puts the Philippines 21st out of 152 countries, with a score lower than the global average.

Republic Act No. 10654, or the Philippine Fisheries Code of 1998, restricts illegal fishing practices like explosives, poaching, and the capture of endangered species.

Mr. Briguera said fish imports scheduled for October to December are intended to offset low productivity of fisherfolk in this part of the year.

Mr. Briguera said BFAR supports the restoration of agriculture extension functions to the National Government, as proposed by Sen. Francis Pancratius N. Pangilinan.

Renationalization “will help the government deliver its serves more effectively and grant farmers and fisherfolk better access to technology,” Mr. Briguera said. — Andre Christopher H. Alampay

BIR exceeds excise tax target in first 7 months

REUTERS

EXCISE TAX collections exceeded the target for the first seven months, driven by tobacco products, the Bureau of Internal Revenue (BIR) said.

Excise tax collections amounted to P193.65 billion during the period, beating the target by 2.19%, the BIR said.

The seven-month total was also 15.10% higher than the year-earlier tally.

Collections at the end of July were equivalent to 56% of the full-year excise tax target of P343.10 billion.

Excise taxes are imposed on the production, sale or consumption of commodities such as tobacco, alcohol, and non-essential goods.

Tobacco products accounted for P94.46 billion of the excise tax haul, exceeding the target by 14.89%.

Year on year, tobacco tax collections were up 32.12%.

Taxes generated by alcohol products hit P66.58 billion during the period, missing the target by 7.25% but exceeding the year-earlier tally by 4.12%. 

Miscellaneous excise taxes — covering automobiles, sweetened beverages, cosmetic procedures, and other non-essential goods — were also below target at P25.03 billion, missing the goal by 11.62% and 4.99% lower than the year-earlier total.

Excise taxes on sweetened beverages (P21.59 billion) and automobiles (P3.26 billion) were also short of their targets.

Taxes generated by non-essential goods (P165.58 million) and cosmetic procedures (P11.30 million) both beat targets.

Excise tax collections generated by mining and mineral products amounted to P7.49 billion at the end of July, beating the target by 4.37%. They were up 17.58% from a year earlier.

Petroleum excise tax collections totaled P94.74 million, up 10.77% from a year earlier.

Overall, excise taxes accounted for 10.25% of the BIR revenue of P1.89 trillion at the end of July.

Overall collections were 1.25% under the target for the seven months but 12.34% higher year on year.

Growth in overall revenue had been driven by corporate income tax, value-added tax, and personal income tax.

The seven-month total represents 58.68% of the BIR’s P3.22-trillion full-year goal. — Aubrey Rose A. Inosante

Third phase of SCTEx toll hike approved

PHILSTAR FILE PHOTO

THE Toll Regulatory Board (TRB) approved the third and final tranche of toll rate adjustments for the Subic-Clark-Tarlac Expressway (SCTex).

Beginning Sept. 9, motorists are set to pay an additional 64 centavos per kilometer for class 1 vehicles, P1.29 per kilometer for class 2, and P1.93 per kilometer for class 3, NLEX Corp., a unit of Metro Pacific Tollways Corp. (MPTC), said in a statement over the weekend.

The adjusted rates follow the approval of the 2020 and 2022 petitions for periodic SCTEx toll adjustments, the toll operator said, noting that the TRB and Bases Conversion and Development Authority agreed to implement the adjustments in three tranches over a three-year period to cushion the impact on motorists.

Once implemented, motorists passing through Mabalacat City (Mabiga Interchange) to Tarlac will pay P25 more for class 1 vehicles and an additional P51 for class 2. Class 3 vehicles will pay P75 more.

Motorists passing between Mabalacat City (Mabiga Interchange) and Tipo, Hermosa, Bataan (near Subic Freeport) will be charged an additional P40 for class 1 vehicles, P80 for class 2, and P121 for class 3.

Meanwhile, motorists traveling the entire stretch of SCTEx or from Tipo to Tarlac will pay an additional P66 for class 1, P131 for class 2, and P197 for class 3 vehicles.

NLEX Corp., which manages and operates SCTEx, said it has implemented various infrastructure and enhancement projects along SCTEx.

It has completed the New Clark City Interchange, which serves as an alternate route for motorists traveling to Capas, Bamban, and New Clark City.

Radio-Frequency Identification (RFID) and toll systems also underwent upgrades, NLEX Corp. said, with improvements including conversion to neology antennas and stickers which offer better readability.

“These efforts reflect the tollway company’s unwavering commitment to delivering fast, reliable, and safe road access, while driving innovation and environmental responsibility for the benefit of all motorists,” NLEX Corp. said.

MPTC is the tollways unit of Metro Pacific Investments Corp. (MPIC), one of the three key Philippine subsidiaries of Hong Kong-based First Pacific Co. Ltd., alongside Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., holds a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose

The General Tax Amnesty bill: Opportunities for compliance and growth

IN BRIEF:

• The General Tax Amnesty Bill, formally known as Senate Bill No. 60, presents a significant opportunity for taxpayers to address their tax obligations while alleviating penalties and interest on unpaid taxes.

• This initiative aims to foster a culture of compliance among taxpayers, encouraging them to fulfill their obligations through transparent policies and processes.

• Understanding the provisions of the General Tax Amnesty can empower businesses to strategically manage their tax responsibilities and enhance their operational efficiency.

The introduction of the General Tax Amnesty Bill marks a pivotal moment for taxpayers. This bill seeks to provide relief to individuals and businesses by addressing the challenges posed by the previously vetoed 2018 Tax Amnesty Act. By offering a reprieve from penalties and interest on unpaid taxes, the General Tax Amnesty aims to promote compliance and encourage taxpayers to settle their obligations.

The General Tax Amnesty covers a wide range of taxes, including income tax, withholding tax, capital gains tax, donor’s tax, value-added tax (VAT), and excise tax. This coverage extends to the taxable year 2024 and prior years, regardless of whether assessments have been issued for unpaid taxes. 

However, it should be noted that estate tax and certain specified individuals or cases are excluded from this coverage. These cover withholding tax agents who withheld taxes but failed to remit the same, certain taxpayers with cases pending in appropriate courts (e.g., those involving tax evasion and other criminal cases), tax cases, delinquencies, and assessments that have become final and executory.

KEY PROVISIONS
The General Tax Amnesty encompasses various taxes collected by the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BoC). This comprehensive coverage underscores the government’s commitment to facilitating compliance among taxpayers.

ENTITLEMENT UNDER THE GENERAL TAX AMNESTY
The amnesty is applicable to both natural and juridical persons, providing flexibility in how taxpayers can settle their obligations. Taxpayers have two options for paying the amnesty tax, the first being 2% of total assets as of Dec. 31, 2024, as declared in the Statement of Total Assets. The second option is based on total net worth as of Dec. 31, 2024, as declared in the Statement of Assets, Liabilities, and Net Worth, with specific rates and minimum payments for various categories.

The rate for individuals (including trusts and estates) is 5% or P100,000, whichever is higher. For corporations, the rate depends on subscribed capital: 1) Over P50 million subscribed capital: 5% or P1,300,000, whichever is higher, 2) P20 million to P50 million subscribed capital: 5% or P650,000, whichever is higher, 3) P5 million to P20 million subscribed capital: 5% or P350,000, whichever is higher, 4) Below P5 million subscribed capital: 5% or P150,000, whichever is higher.

For other juridical entities (e.g., taxable cooperatives and foundations), the rate is 5% or P100,000, whichever is higher.

Taxpayers with negative net worth can still avail of the amnesty by paying the minimum tax, ensuring inclusivity.

PROCESS FOR AVAILING OF THE AMNESTY
To benefit from the General Tax Amnesty, taxpayers must file a sworn General Tax Amnesty Return accompanied by a notarized Statement of Total Assets or notarized Statement of Assets, Liabilities, and Net Worth, as the case may be, within one year from the effectivity of the Implementing Rules and Regulations. Payment of the amnesty tax is due at the time of filing, streamlining the process for compliance.

DISCOUNTS FOR EARLY PAYMENT
The bill incentivizes timely compliance by offering discounts for early payment: a 20% discount if paid within the first three months, a 15% discount if paid between the fourth and sixth months, and a 10% discount if paid between the seventh and ninth months.

These discounts not only encourage prompt action but also provide a financial incentive for taxpayers to settle their obligations swiftly.

IMMUNITIES AND PRIVILEGES
Those who avail of the General Tax Amnesty and have fully complied with all the conditions therein and upon payment of the amnesty tax are entitled to the following immunities and privileges:

Immunity from taxes: Taxpayers will be immune from the payment of taxes, additions thereto, and from all related civil, criminal, and administrative cases and penalties under the 1997 National Internal Revenue Code, as amended, for the taxable year 2024 and prior years. This immunity also extends to investigations or suits related to the assets, liabilities, net worth, and internal revenue taxes that are the subject of the tax amnesty.

Confidentiality of information: Any information or data contained in, derived from, or provided by a taxpayer in the Tax Amnesty Return, Statement of Total Assets, or Statement of Assets, Liabilities, and Net Worth will be confidential in nature and not be used in any investigation or prosecution before any judicial, quasi-judicial, and administrative bodies. However, the taxpayer may use this information as a defense in cases brought against them.

Exemption from examination: The books of account and other records of the taxpayer for the years covered by the tax amnesty will not be examined by the BIR, except under specific conditions such as verifying the validity or correctness of a claim for any tax refund, tax credit (other than refund of taxes withheld on wages), tax incentives, and/or exemptions under existing laws.

These immunities and privileges do not apply if the taxpayer fails to file the necessary returns or if there is a significant understatement of assets or net worth, or in cases of fraud.

SAFEGUARDS AGAINST TAX EVASION
To enhance the integrity of the tax system and address concerns related to tax evasion, the General Tax Amnesty Bill incorporates several essential safeguards. Notably, it includes provisions for lifting bank secrecy, which grants the Commissioner of Internal Revenue access to financial information necessary for verifying taxpayer declarations during the one-year period of the General Tax Amnesty.

Additionally, the bill requires the automatic exchange of information among relevant government agencies, facilitating a more comprehensive oversight of taxpayer compliance. Furthermore, it imposes penalties for inaccurate net worth or total asset declarations, serving as a deterrent against fraudulent reporting and emphasizing the importance of transparency in tax compliance.

By implementing these safeguards, the General Tax Amnesty Bill seeks to cultivate a culture of accountability and trust between taxpayers and the government, ultimately contributing to a more equitable tax system.

COMPLIANCE AND POTENTIAL FOR GROWTH
The General Tax Amnesty Bill represents a significant opportunity for taxpayers to address their obligations while minimizing penalties. By understanding the provisions and processes outlined in the bill, businesses can strategically navigate their tax responsibilities and enhance their operational efficiency.

However, it is important to note that the General Tax Amnesty Bill needs to go through the legislative process before it can become a law, and stakeholders should remain aware of potential changes that may arise during this period.

For organizations looking to leverage the benefits of the General Tax Amnesty, it is advisable to engage in discussions with tax advisors about the potential advantages of the program. By fostering a culture of compliance and taking proactive steps to manage tax obligations, businesses can build a positive reputation and strengthen their relationships with stakeholders.

In the context of the Philippine business environment, the General Tax Amnesty serves as a reminder of the importance of compliance and the potential for growth that comes from fulfilling tax obligations. By embracing this opportunity, businesses can position themselves for long-term success.

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.

 

Michael A. Madlangbayan is a global compliance & reporting (GCR) partner of SGV & Co.

Japan’s embattled Prime Minister resigns

JAPANESE PRIME MINISTER SHIGERU ISHIBA — REUTERS FILE PHOTO

TOKYO — Japanese Prime Minister Shigeru Ishiba said on Sunday he had decided to resign, ushering in a potentially lengthy period of policy paralysis at a shaky moment for the world’s fourth-largest economy.

Mr. Ishiba, 68, instructed his Liberal Democratic Party (LDP) — which has governed Japan for almost all of the post-war era — to hold an emergency leadership race, he told a press conference, adding he would continue his duties until his successor was elected.

Since coming to power less than a year ago, Mr. Ishiba has overseen his ruling coalition lose its majorities in elections for both houses of parliament amid voter anger over rising living costs.

Until Sunday, he had refused calls to step down following the latest of those losses in July’s upper house vote. He had focused instead on ironing out details of a trade deal with the United States on President Donald J. Trump’s tariffs, which have roiled Japan’s critical automotive industry and cast a shadow over weak growth.

“With Japan having signed the trade agreement and the President having signed the executive order, we have passed a key hurdle,” Mr. Ishiba said, his voice seeming to catch with emotion. “I would like to pass the baton to the next generation.”

Concern over political uncertainty led to a sell-off in Japan’s yen currency and its government bonds last week, with the yield on the 30-year bond hitting a record high on Wednesday.

Speculation over Mr. Ishiba’s fate was stoked by the LDP’s decision to schedule a vote for Monday on whether to hold an extraordinary leadership election.

KOIZUMI, TAKAICHI AMONG POSSIBLE SUCCESSORS
While a fresh leadership race could add pain for an economy hit by US tariffs, markets are focusing more on the chance of Mr. Ishiba being replaced by an advocate of looser fiscal and monetary policy, such as LDP veteran Sanae Takaichi, who has criticized the Bank of Japan’s interest rate hikes.

Mr. Ishiba narrowly defeated Mr. Takaichi in last year’s LDP leadership run-off. Shinjiro Koizumi, the telegenic political scion who has gained prominence as Mr. Ishiba’s farm minister tasked with trying to cap soaring prices, is another possible successor.

“Given the political pressure mounting on Ishiba after the LDP’s repeated election losses, his resignation was inevitable,” said Kazutaka Maeda, economist at Meiji Yasuda Research Institute.

“As for potential successors, Koizumi and Takaichi are seen as the most likely candidates. While Koizumi is not expected to bring major changes, Takaichi’s stance on expansionary fiscal policy and her cautious approach to interest rate hikes could draw scrutiny from financial markets,” Mr. Maeda said.

Since the party does not have a majority in either house, it is not guaranteed that the next LDP president will become prime minister.

Whoever becomes the next leader may choose to call a snap election to seek a mandate, analysts said. While Japan’s opposition remains fractured, the far-right, anti-immigration Sanseito party made big gains in July’s upper house election, bringing once-fringe ideas into the political mainstream.

Nearly 55% of respondents to a poll by Kyodo news agency published on Sunday said there was no need to hold an early election.

Mr. Ishiba’s last act as premier will have been to finalize the trade deal with the United States last week, under which Japan pledged $550 billion of investments in return for lower tariffs from President Trump. — Reuters

Thousands protest against President Trump’s National Guard deployment to Washington, DC

DEMONSTRATORS attend the “We Are All DC” march to protest against National Guard troops in Washington, DC, US, Sept. 6. — REUTERS/LEAH MILLIS

WASHINGTON — Several thousand protesters marched in Washington, DC, on Saturday to demand that US President Donald J. Trump end the deployment of National Guard troops patrolling the capital city’s streets.

With Mr. Trump vowing crackdowns in other Democratic-led cities as well, he appeared to threaten Chicago with migrant deportations in a social media post with an image that parodied the 1979 Vietnam war movie Apocalypse Now.

Protesters at the “We Are All DC” march, including undocumented immigrants and supporters of Palestinian statehood, chanted slogans denouncing Mr. Trump and carried posters, some of which read, “Trump must go now,” “Free DC” and “Resist Tyranny.”

“I’m here to protest the occupation of DC,” said Alex Laufer. “We’re opposing the authoritarian regime, and we need to get the federal police and the National Guard off our streets.”

Claiming that crime was blighting the city, Mr. Trump deployed the troops last month to “re-establish law, order, and public safety.”

Mr. Trump also placed the capital district’s Metropolitan Police Department under direct federal control and sent federal law enforcement personnel, including members of the Immigration and Customs Enforcement (ICE), to police the city’s streets, moves critics have decried as federal overreach.

Justice department data showed violent crime in 2024 hit a 30-year low in Washington, a self-governing federal district under the jurisdiction of the US Congress.

The National Guard serves as a militia that answers to the governors of the 50 states except when called into federal service. The DC National Guard reports directly to the President.

Mr. Trump said on Tuesday that he would also deploy National Guard troops to fight crime in Chicago, an extraordinary effort to militarize the country’s third-largest city that was likely to trigger a legal battle with local officials.

Illinois Governor JB Pritzker said after Mr. Trump spoke that he had learned from reporters that the administration has “gathered ICE agents and military vehicles, and that there are more ICE agents that are on the way.”

“What they’re trying to do in DC is what they’re trying to do with other dictatorships,” said Casey, who declined to give his last name. “They’re testing DC, and if people tolerate it enough, they’re gonna do it to more and more areas. So we have to stop it while we still can.”

More than 2,000 troops, including from six Republican-led states, are patrolling the city. It is unclear when their mission will end, though the Army this week extended orders for the DC National Guard through Nov. 30.

WASHINGTON FILES SUIT
Washington, DC, Attorney General Brian Schwalb filed a lawsuit on Thursday seeking to block the troop deployment, arguing that it was unconstitutional and violated multiple federal laws.

But some residents have welcomed the National Guard and called for the troops to be deployed in the less-affluent parts of the city where crime is rampant. The National Guard has been mostly visible in downtown and tourist areas.

Washington, DC, Mayor Muriel Bowser has praised Mr. Trump’s surge of federal law enforcement personnel in the city, but has said that she hopes that the National Guard’s mission will end soon.

Ms. Bowser said there had been a sharp decline in crime, including carjackings, since the surge. The mayor signed an order this week requiring the city to coordinate with federal law enforcement.

Mr. Trump was playing golf at his course outside Washington and was not at the White House when protesters marched past on Saturday.

But he appeared to step up pressure on Chicago in a post on his Truth Social platform that said, “I love the smell of deportations in the morning,” parodying a line from the 1979 movie.

“Chicago about to find out why it’s called the Department of WAR,” the President wrote, referring to his new order to rename the Department of Defense.

The post was accompanied by a seemingly artificial intelligence-generated picture of Mr. Trump dressed a military officer character in the film with helicopter gunships and explosions in the background. — Reuters

South Korea has finished talks with the US to release Korean workers

STOCK PHOTO | Image by Vitamin from Pixabay

SEOUL — South Korea has just wrapped up talks with the US for the release of detained Korean workers in Georgia, a presidential official said on Sunday.

A plane will be on its way to bring back the Koreans once administrative procedures are completed, Kang Hun-sik, Presidential Chief of Staff, said in televised remarks.

US federal agents carried out a raid at a Hyundai Motor manufacturing facility in Georgia this week in the largest single-site enforcement operation in the history of the Department of Homeland Security’s investigative operations.

The majority of those hundreds detained were Korean nationals.

South Korea has recently reached a major trade deal with the US, which includes a $350-billion fund to help Korean companies enter the US market.

US President Donald J. Trump may visit South Korea in October for the gathering of the Asia-Pacific Economic Cooperation event, CNN reported on Saturday, citing three Trump administration officials.

The South Korean official on Sunday said the government will seek ways to improve the visa system of Korean workers traveling to the US to “prevent a similar incident.” — Reuters

Popular Sydney beach deploys drones, helicopter after fatal shark attack

BONDI BEACH — BW FILE PHOTO

SYDNEY — Australian authorities on Sunday deployed drones and a helicopter to monitor the waters around a popular Sydney beach after a surfer was killed by a great white shark on Saturday, officials said.

Two beaches in Australia’s most populous city remained closed on Sunday after the attack on Saturday morning that took place about 100 meters (328 feet) from shore while the man was surfing with friends at Long Reef Beach, in the north of the New South Wales state capital.

The experienced surfer was pulled from the water by other surfers, but had lost too much blood and died at the scene, police said. It was the first shark-attack death in Sydney since a swimmer was killed off a beach in February 2022, which the city’s first since 1963.

On Sunday, the state’s main water rescue organization, Surf Life Saving NSW, deployed drones and a helicopter to surveil the area for the shark, New South Wales Department of Primary Industries and Regional Development (DPIRD) said.

More so-called SMART drumlines, which use satellite technology to notify authorities when a shark is hooked on a baited line, had also been installed, it said in a statement.

Government shark biologists, after assessing photos of the victim’s surfboard, “determined a White shark approximately 3.4-3.6 meters (11.15-11.81 feet) in length was likely responsible” for the mauling, DPIRD said.

White sharks are also commonly known as great white sharks or white pointers, according to the agency.

Saturday’s incident marked the fourth fatal shark attack in Australia in 2025, data from the state-run operator of Sydney’s Taronga Zoo shows. In March, a surfer was killed by a shark in shallow water on a remote beach in Western Australia.

Australia ranked behind only the United States in the number of unprovoked shark bites on humans in 2024, according to the University of Florida’s International Shark Attack File. Reuters