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Peso rises to new 7-month high on GDP

BW FILE PHOTO

THE PESO climbed to a new seven-month high against the dollar on Thursday as the Philippine gross domestic product (GDP) growth was above target in 2022.

The local currency closed at P54.40 versus the greenback on Thursday, rising by 23 centavos from Wednesday’s P54.63 finish, data from the Bankers Association of the Philippines showed.

This is the peso’s best close in over seven months or since it finished at P54.265 on June 21, 2022.

The peso opened Thursday’s trading session at P54.50 per dollar. Its weakest showing was at P54.58 while its intraday best was at P54.39 against the greenback.

Dollars traded dropped to $730 million from $1.02 billion on Wednesday.

The peso was supported by data showing strong GDP growth in 2022, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“The peso appreciated after the full-year Philippine economic growth for 2022 was reported at 7.6%, surpassing the government’s target of 6.5%-7.5%,” a trader likewise said in an e-mail.

The 2022 GDP growth print was the best annual performance since 1976. It was faster than the 5.7% in 2021 as well as the 7.5% median estimate of 23 economists in a BusinessWorld poll last week.

In the fourth quarter of 2022, the economy expanded by 7.2%, slower than the 7.6% in the third quarter and 7.8% in the same period a year earlier.

For Friday, the trader expects peso to appreciate further against the dollar on expectations of weaker US economic growth last quarter.

The trader sees the peso moving between P54.25 and P54.50, while Mr. Ricafort gave a forecast range of P54.30 to P54.50 per dollar. — A.M.C. Sy

PSEi down on profit taking after GDP, trade data

SHARES dropped on profit taking after the release of full-year 2022 Philippine gross domestic product (GDP)  and trade data.

The benchmark Philippine Stock Exchange index (PSEi) went down by 38.66 points or 0.54% to close at 7,042.70 on Thursday, while the broader all shares index lost 9.87 points or 0.26% to end at 3,692.89.

“The PSEi inched down on Thursday amid profit taking as investors widely expect the strong fourth-quarter and full-year 2022 Philippines’ GDP performance. On a positive note, the robust Philippine GDP growth report supports the sideways movement of the PSEi just above the 7,000 level,” Unicapital Securities, Inc. Equity Research Analyst Neil Andrew L. Maderaje said in a Viber message.

The economy expanded by 7.6% in 2022 amid robust domestic demand despite rising inflation, preliminary data from the Philippine Statistics Authority showed.

This exceeded the government’s 6.5-7.5% target for the year and was faster than the 5.7% GDP growth in 2021.

This was also slightly better than the 7.5% median estimate of 23 economists in a BusinessWorld poll last week.

In the fourth quarter alone, GDP expanded by 7.2%, slower than the 7.6% in the third quarter and 7.8% in the same period a year earlier.

Investors were also waiting for more catalysts, such as the US Federal Reserve’s policy meeting next week and the start of the corporate earnings season next month, Mr. Maderaje said.

“The local market inched down this Thursday as investors worried over the decline in the Philippines’ exports last December 2022, which somehow reflects the challenging global economic environment due to several headwinds offshore such as the ongoing Russia-Ukraine war, China’s economic slowdown and the tight monetary policy in the US,” Philstocks Financial, Inc. Research and Engagement Officer Mikhail Philippe Q. Plopenio said in a Viber message.

The value of merchandise exports contracted by 9.7% year-on-year to $5.67 billion in December 2022 versus the 7.3% growth in the same month in 2021 and the 13.2% expansion recorded in November last year.

All sectoral indices closed lower on Thursday. Services declined by 29.51 points or 1.64% to 1,764.61; mining and oil lost 79.75 points or 0.68% to end at 11,516.64; industrials dropped 61.77 points or 0.62% to 9,883.77; holding firms went down by 20.02 points or 0.29% to 6,864.51; financials retreated by 4.74 points or 0.26% to 1,806.47; and property decreased by 4.07 points or 0.13% to 3,116.19.

Value turnover went down to P5.11 billion on Thursday with 1.34 billion shares changing hands from the P5.75 billion with 1.86 billion issues traded on Wednesday.

Advancers outnumbered decliners, 107 versus 99, while 49 names closed unchanged.

Net foreign buying climbed to P519.19 million on Thursday from P237.29 million the previous trading day.

Unicapital Securities’ Mr. Maderaje said they see the PSEi’s strong support at 6,900. — J.I.D. Tabile

Marcos wants to beef up maritime security duties of PHL Coast Guard

PCG

PRESIDENT Ferdinand R. Marcos, Jr. wants the Philippine Coast Guard (PCG) to go beyond its sea rescue mission and maritime patrol duties to strengthen the country’s territorial defense, according to the presidential palace.

Members of the PCG should become “frontliners ready to confront whatever threats are coming through the country’s coastlines,” Mr. Marcos said during an oath-taking ceremony for coast guard personnel in Malacañang on Thursday.

The PCG, a uniformed armed service, is under the Department of Transportation and is not part of the military.   

Mr. Marcos said many duties of the Philippine Navy have been transferred to the PCG but it remains a non-threatening unit as it is not technically part of the armed forces.   

“The reason for this is very simple: We do that so that we will not raise the tensions by putting in units and assets of the Philippine military into the area. Also, we are saying that these are not military vessels, they are coast guard,” he said.

“But as many of the incidents have started to show over the past few years, that mission has become more, shall we say, intense,” he added. “Now you are expected to defend not only the coastline, but to defend our nationals.”

The coast guard’s primary mandates include maritime search and rescue, maritime safety, marine environmental protection and maritime security.

The PCG used to be under the Department of National Defense before it was transferred to the Office of the President on March 30, 1998 through an order issued by the late President Fidel V. Ramos.

Less than a month later, Mr. Ramos eventually transferred the PCG to the Department of Transportation and Communications, which was split into two separate agencies in 2016 through a 2015 law signed by then President Benigno S.C. Aquino III.

At the ceremony, Mr. Marcos also cited the importance of upgrading the agency’s facilities and equipment, saying it is “critical to the safety” of Filipinos. 

“It is critical in the defense of the Republic,” he added. “It is critical to the defense of our territory.” — Kyle Aristophere T. Atienza

Economists, legal experts frown upon charter change   

PHILIPPINE STAR/MICHAEL VARCAS

AMENDING the Philippine Constitution should not be the top priority of Congress at this point, economists and legal luminaries said on Thursday, citing the need to focus more on measures that will address poverty and development as well as changing the political landscape dominated by dynasties.

At a House committee meeting on Thursday tackling proposed charter changes and a call for a constitutional convention, Solita Collas-Monsod, professor emeritus of the University of the Philippines School of Economics, said, “Amending the Constitution is neither necessary nor a sufficient condition to attract FDI (foreign direct investments) and may entail burdensome costs.”

Marinduque Rep. Lord Allan Jay Q. Velasco and Parañaque Rep. Gus S. Tambunting filed a Resolution of Both Houses seeking to amend economic provisions of the Constitution to allow foreign capital investments in restricted sectors.

Ms. Monsod said the legislature should instead focus on addressing weaknesses in “infrastructure, governance, corruption, (and) ease of doing business,” among others.

Under the previous administration, former President Rodrigo R. Duterte signed laws easing foreign ownership restrictions in several key sectors such as retail, telecommunications and domestic shipping.

“Despite vastly growing foreign investment inflows, we have not seen the national economic progress that has been promised,” Jose Enrique A. Africa, executive director of IBON Foundation, said.

Mr. Africa said since the period of trade liberalization in the 1980s, the manufacturing and agricultural sectors have had the smallest share in the country’s output and employment in post-war history.

Aries A. Arugay, chair of the UP Political Science department, said that “Constitutional change is not the ‘silver bullet’ or the holy elixir to cure our country’s problems.”

He added that should the legislature “decide to constitute itself as a Constituent Assembly, Congress has to ensure that it will complete the process without taking time and resources away from other legislative priorities.”

In the same hearing, Christian S. Monsod, one of the framers of the 1987 Constitution told the panel that “real change cannot happen until we strike at the roots and not the branches of the problem.”

“The problems of poverty, corruption, social justice did not come from the Constitution,” said Neri J. Colmenares, chair of National Union of People’s Laywers.

“If we resolve corruption, poverty, security of tenure, genuine agrarian reform…we will be a developed country, we won’t even need to ‘ChaCha’ (charter change),” Mr. Colmenares said in Filipino.

Vicente V. Mendoza, former associate justice of the Supreme Court, raised cost and propriety concerns of a constitutional convention.

“Is it proper for the Congress to vote additional powers to itself as a Congress?” he asked.

Camarines Sur Rep. Luis Raymund Villafuerte Jr., Leyte Rep. Richard I. Gomez, and Manila Rep. Bienvenido M. Abante, Jr. filed House bills calling for a constitutional convention, to be composed of delegates from each legislative district. The election of these delegates will be done during the barangay elections.

In his bill, Mr. Abante said a constitutional convention would ensure “that national interest will prevail over vested interests of incumbent officials,” as members will be directly elected by people and should not have any under government office.

Constitutional amendments committee chair Rep. Rufus B. Rodriguez filed House Joint Resolution 12, also calling for a convention “composed of elected delegates from all regions of the country.”

Mr. Monsod, however, said, “Political dynasties now control Congress, and electing the delegates by district will only result in a mirror image of the composition of the Congress with the same control of outcomes by the dynasties.”

He said what the country needs more urgently are laws against political dynasties and amending the party-list law. — Beatriz Marie D. Cruz

Over 50% of Filipinos see POGOs as damaging

MICHAL PARZUCHOWSKI-UNSPLASH

MORE THAN half of Filipinos believe offshore gaming operations are harmful to the Philippines, according to a Pulse Asia survey commissioned by Senator Sherwin T. Gatchalian.

The survey, conducted from Nov. 27 to Dec. 1, showed that 58% of 1,200 respondents see the adverse effects of the continued presence of Philippine Offshore Gaming Operators (POGOs).

The sentiment was true across location and class, Mr. Gatchalian said in a statement on Thursday. 

Most respondents were against the continuation of POGOs due to the proliferation of related vices and crimes, especially those involving Chinese nationals.

Others were concerned about tax evasion by the gaming companies as well as the increasing the number of Chinese nationals employed by POGOs.

Respondents also had concerns with the increasing cost of rent for residential or business properties as an offshoot of the presence of POGOs. 

“The survey results are an important piece of data that we will take into consideration as the data represents the sentiments of our people and provides relevant insights on the issue at hand,” said Mr. Gatchalian, who chairs the Senate Ways and Means Committee.

The committee is currently investigating the economic benefits versus the social costs of continued POGO operations in the country.

Several lawmakers have called for the government to ban offshore gaming operations in the Philippines, saying these have become a breeding ground for illegal activities including kidnapping and money laundering.

In an earlier hearing, Mr. Gatchalian also called out the Philippine Amusement and Gaming Corp. (Pagcor) for failing to regulate POGOs and stem abductions involving mostly Chinese workers in the Philippines. — Alyssa Nicole O. Tan

68 diplomatic protests sent to China under Marcos government

A CHINESE Coast Guard ship ‘shadowing’ a Philippine vessel on its way to deliver supplies on Dec. 17, 2022 to troops stationed at the BRP Sierra Madre, which is grounded in Ayungin Shoal in the West Philippine Sea. — WESTERN COMMAND AFP

THE DEPARTMENT of Foreign Affairs (DFA) on Thursday said 68 diplomatic protests over maritime incidents have been filed against China since the Marcos administration began in July.

“That’s 68 NVs (note verbale),” DFA Spokesperson Maria Theresita C. Daza told reporters.

“From 2016 to 2021, there were 262 NVs sent. In 2022, 195, and as of Jan. 3, 2023, there was 1 NV already sent,” she said. 

Ms. Daza said Beijing responded to some of the diplomatic notes.

“There are cases… where they’ve also responded to the protests and actually answered, so it is an exchange.”

The Philippine Coast Guard reported last weekend that a Chinese Coast Guard vessel allegedly drove away a Filipino fishing boat from the Second Thomas Shoal, locally known as Ayungin, which is within the Southeast Asian nation’s exclusive economic zone.

The DFA is still awaiting official reports from various agencies for proper verification and assessment before taking action. 

“Bilateral maritime issues and incidents including the reported fishing incident in Ayungin shoal on January 2023 will continue to be discussed through existing diplomatic channels,” Ms. Daza said.

President Ferdinand R. Marcos, Jr. said earlier this week that Manila had used a new communication mechanism, agreed upon during his state visit to China in the first week of January, to contact Beijing directly over the latest incident.   

“So we have immediately used that thing, that mechanism that I talked about,” he said.

“But it does not preclude us from continuing to make protests and continuing to send note verbale concerning this,” he added.

Mr. Marcos was referring to the implementation of the Philippine-China 2017 Memorandum of Understanding on strengthening cooperation, Ms. Daza said, which provides an enhancement of communication and coordination on major issues.

“The arrangement establishes a communication mechanism in maritime issues between the DFA and the Chinese foreign ministry. It does not involve other Philippine or Chinese agencies,” she said.

China maintains its rejection of a 2016 arbitral ruling that voided its claim to more than 80% of the South China Sea based on a 1940s nine-dash line map.

The Permanent Court of Arbitration based in the Hague upheld the Philippines’ rights to its exclusive economic zone within the disputed waterway.

Ms. Daza said different levels of bilateral and regional engagements are continuing.

“Our business is actually ensuring that we continue to dialogue, we continue to negotiate, we continue to make representation,” she said. — Alyssa Nicole O. Tan

Remains of Filipino worker murdered in Kuwait to be repatriated on Friday

THE REMAINS of a Filipino worker who was allegedly murdered by the 17-year-old son of her employer will be repatriated from Kuwait on Friday, according to the Department of Foreign Affairs (DFA). 

The Filipino domestic helper, Jullebee Cabilis Ranara, was reportedly abused and killed brutally, then left in a desert by the perpetrator.  

The remains will be brought home on Friday night,DFA Undersecretary for Migrant Workers Affairs Eduardo Jose A. de Vega told reporters on Thursday.  

The employers of Ms. Ranara agreed to shoulder the expenses for the return of her body to the Philippines.   

The employer, being the father of the suspect, had no problem funding it,Mr. De Vega said, noting that the Philippine government will not cover any cost.   

The suspect has been arrested, he added, and the DFA is currently waiting for more updates from Kuwaiti authorities.  

The undersecretary assured that a lawyer has been hired for Ms. Ranara to ensure that justice will be served.  

Migrant Workers Secretary Susan V. Ople said Ms. Ranara is entitled to full burial and death benefits being a member of the Overseas Workers Welfare Administration. Scholarships will also be provided for her children, as well as cash benefits, among others.   

Senators have pitched for a renewed deployment ban on the Middle Eastern country, but the Department of Migrant Workers has ruled this out saying they will be working on a bilateral labor agreement that would ensure ample benefits, security, and protection for Filipino workers. Alyssa Nicole O. Tan 

Proposed new term limits for president, VP opposed 

FERDINAND “BONGBONG” R. MARCOS, JR. took his oath of office as the 17th president of the Philippines before Chief Justice Alexander Gesmundo at the National Museum of Fine Arts in Manila on Thursday, June 30, 2022. — PHILIPPINE STAR/KRIZ JOHN ROSALES

A FORMER lawmaker opposed the proposed change in term limits for the two highest elected positions in the country to five years with a chance to run for a second 5-year term.  

The basis (of this provision) is not clear, especially that there are examples of (Congress) in other countries that are able to do their jobs without the need for term extension,Neri J. Colmenares, chair of National Union of Peoples Lawyers, said during a House committee meeting on constitutional amendments on Thursday.  

The proposal is contained in Resolution of Both Houses No. 1, filed on the first day of the current Congress on June 30.  

The resolution calls for the Senate and the House of Representatives to convene as a constituent assembly to amend provisions of the Constitution and related laws on the term limits of the president, vice president, House representatives and local government officials.   

The resolution also proposes that a vote for the president be a vote for the vice president, with the two belonging to the same political party.  

Raul L. Lambino, a member of the 2005 Constitutional Commission, supported the provision allowing a singular vote for a presidential and vice-presidential candidate of the same party.  

However, he proposed to maintain the two executive positionssix-year term and allow reelection. 

The six-year term of office of the president is enough but let us give a competent president a chance to be reelected for another six-year term. If they are not competent, then they wouldnt be reelected,Mr. Lambino said.  

He added that such amendment could also be applicable to the vice-president.  

He also called to remove term limits for senators, leaders in congress, and local officials.   

When it comes to other officials: senators, congressmen, local officials, let us remove its term limits, (which is) three term limits only. Nine years is too short, and then their spouse, child, sibling would eventually replace them. The issue of giving others a chance is not addressed,Mr. Lambino said.  

Mr. Lambino further proposed a political subdivision wherein there will be eight senatorial regions.   

Three in Luzon (northern Luzon, National Capital Region, southern Luzon); two in the Visayas (eastern and western); and three in Mindanao (eastern, western, and the Bangsamoro autonomous region).  

(In this set up), we think that the senators will be more responsive and more responsible because the laws they will be creating will cater to the needs of their constituent regions, Mr. Lambino said.   

Christian S. Monsod, another one of the framers of the 1987 Constitution, said term limits are a matter of social justice.   

If you read Section 1 of Article XIII, it is to try to address the social, economic, and political inequalities by equitably diffusing wealth and political power for the common good.  

Article XIII Section 1 says the State must regulate the acquisition, ownership, use, and disposition of property and its increment.  

Former Supreme Court Justice Adolfo S. Azcuna, a member of the 1971 and 1986 Constitutional Conventions, said term limits were placed in the Constitution to give chances to others to also hold public office.  

You should uphold the right of the people to choose whoever they want,Mr. Azcuna said. Beatriz Marie D. Cruz

Slain labor activist’s wife appeals dismissal of murder raps vs cops  

PHILIPPINE STAR/RUSSELL PALMA

THE WIFE of slain labor activist Emmanuel Asuncion has asked the Department of Justice (DoJ) to reconsider its decision clearing 17 cops linked to the murder of her husband during a series of police raids in March 2021 where nine activists died. 

In her appeal filed on Thursday, Liezel Asuncion said the police officers involved in the shooting had the clear intent of committing extralegal killings during the raids. 

“The circumstances surrounding the case show clear conspiracy and evident premeditation,” she said.   

“The fact is that nine unarmed activists were summarily killed on the same date and almost the same time, within minutes of purportedly serving the search warrant issued by the same Vice-Executive Judges of the same court, on the exact same charges, she added.   

The police raids were based on 24 search warrants issued by trial courts in Manila and Quezon City.  

A panel of DoJ prosecutors earlier cleared the law enforcers as they found no probable cause to charge them with the crime.  

They said Ms. Asuncion had failed to see the face of the cops who allegedly killed her husband.  

Federation of Free Workers (FFW) President Jose “Sonny” G. Matula earlier said law enforcement agencies did not do enough to ensure the prosecution of those behind the labor leader’s murder.  

Philippine labor groups on Monday submitted a report on human rights violations against workers and union organizers to the International Labor Organization (ILO), which is conducting its high-level tripartite mission from Jan. 23 to 26.  

Justice Secretary Jesus Crispin C. Remulla had said the government does not sanction attacks, harassment or intimidation of activists.  

He said an inter-agency task force on extralegal killings had investigated at least 17,000 police officers. 

The UN Human Rights Committee has said the Philippines should comply with international human rights mechanisms.  

RED-TAGGING
Meanwhile, global watchdog Human Rights Watch on Thursday urged the Marcos administration to issue a directive that would prevent state forces from red-tagging indigenous peoples (IP) and activists opposed to government-backed projects.   

At the same time, the watchdog noted that private firms have been working with the security sector to harass communities opposed to development projects.  

Tagging IP leaders and activists as armed fighters or supporters of the local Maoist insurgency is a deadly practice that puts members of local communities at risk, Human Rights Watch said in a statement.  

The administration of President Ferdinand Marcos, Jr. should urgently issue a clear directive to all government officials to stop red-tagging and take appropriate action against those responsible,it said.  

The group said the attacks on indigenous peoples contribute to making the Philippines one of Asias most dangerous countries for environmental activists and land defenders.”   

In a 2021 report, non-profit organization Global Witness said the Philippines was the fourth deadliest country in the world for land and environmental defenders, noting that killings of IPs were rampant in the Southeast Asian nation. 

Indigenous communities have the right to peacefully express their views and protect their land and cultural heritage without fear of violence or death,the group said, citing harassment reports from organization leaders, including Beverly Longid of Katribu who has been targeted for online demonization efforts.  

Human Rights Watch said red-tagging has been used to exclude indigenous communities opposed to state-backed projects from the free, prior and informed consentrequirement, an international principle adopted by the Philippineslaw on IPs. John Victor D. Ordoñez and Kyle Aristophere T. Atienza

BoC intercepts P9.5-M smuggled onions in Zamboanga  

BOC PHOTO

CUSTOMS and law enforcement authorities seized P9.49 million worth of suspected smuggled red onions inside boats that arrived in Zamboanga City on two separate operations.   

In a statement on Thursday, the Bureau of Customs (BoC) said the onions have no Sanitary and Phytosanitary Import Clearance from the Department of Agricultures Bureau of Plant Industry.    

BoC said the shipments violate Republic Act 10863 or the Customs Modernization and Tariff Act of 2016 in relation to R.A. 10845 or the Anti-Agricultural Smuggling Act of 2016.   

Sacks of red onions were found in a wooden watercraft marked as TIMZZAN along the coast of the city in southern Philippines. The vessel was carrying 1,624 bags of imported red onions amounting to P2.6 million.   

Another 4,308 bags of onions worth P6.9 million were seized in a vessel marked as MJ MARISSA in another coastal area of Zamboanga City.   

The confiscated onions are temporarily stored at the Agriculture departments research center in the city.   

The BoC-Port of Zamboanga will continue to boost its efforts against smuggling in line with President Ferdinand R. Marcos Jr.’s standing order to intensify border control measures to curb smuggling,the BoC said. Keisha B. Ta-asan 

AF Payments’ Beep launches advance booking feature for Manila-Davao bus route 

PHILIPPINE STAR/ MICHAEL VARCAS

AF PAYMENTS, Inc., operator of the reloadable contactless smart card Beep, announced on Thursday a new advance booking system feature for a Manila-Davao bus route.  

The system will be implemented initially by the Davao Metro Shuttle in its Metro Manila-Davao route, AF Payments said in an e-mailed statement.  

Passengers of the bus company will be able to reserve bus tickets in advance starting Jan. 27.  

They can purchase and rebook tickets at the Parañaque Integrated Terminal Exchange Terminal using their Beep cards, according to AF Payments. 

With our new Advance Booking System feature, AF Payments is expanding the roster of solutions to continuously support the business needs of our partner transport operators nationwide,AF Payments Chief Commercial Officer Sharon Fong said.  

She said the company hopes to help improve the commuting experience of the riding public.  

This 2023, we hope to be able to bring our technology to more routes by doubling our efforts at reaching out to interested partners,Ms. Fong added.  

The company targets to expand the adoption of its payment solutions among buses and modern jeepneys in more provinces this year.   

It also intends to partner with transport operators completing their compliance with the governments public utility vehicle modernization program.  

The Beep card of AF Payments, a consortium between the Ayala Group and the First Pacific Group, is also used in rail lines and modern public utility vehicles. Arjay L. Balinbin

Sarangani obtains P1-B LANDBANK loan for development projects 

A PLANNED agri-fisheries complex is one of the projects that will be funded by the P1-billion loan secured by Sarangani from LANDBANK. — SARANGANI PIO

LAND BANK of the Philippines (LANDBANK) has approved a P1-billion loan for the Sarangani provincial government to fund development projects.  

Sarangani will spend half of the money to buy heavy equipment, P200 million for hospital and medical equipment, and P300 million for the establishment of a provincial agri-fisheries complex, the state-owned bank said in a statement on Thursday.   

The loan will “fuel the work of the Provincial local government unit (LGU) as we intensify our efforts in delivering more basic services to the people, as well as reach targeted goals for a more resilient, dynamic, and progressive Sarangani,” Governor Rogelio D. Pacquiao said.  

Mr. Pacquiao and LANDBANK President and Chief Executive Officer Cecilia C. Borromeo signed the term sheet for the loan on Jan. 19, and the credit was approved by the banks board on Jan. 25.  

LANDBANK fully supports the vision for Sarangani Province to have a self-sustaining and globally competitive economy,Ms. Borromeo said.   

The lender also announced the signing of a memorandum of understanding with the provincial government for the use of Link.BizPortal, LANDBANKs electronic payment channel.   

Through the portal, Sarangani residents can digitally pay for taxes and other fees to the provincial government.  

LANDBANK said its Link.BizPortal facilitated 5.8 million transactions amounting to P11.6 billion in 2022. Aaron Michael C. Sy