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November factory output contracts 4.2%

Workers are seen inside a manufacturing plant in Sto. Tomas, Batangas, March 1, 2023. — PHILIPPINE STAR/KRIZ JOHN ROSALES

FACTORY OUTPUT declined in November by 4.2% year on year, with the indicator dragged down by consecutive typhoons, the Philippine Statistics Authority (PSA) reported on Tuesday.

According to preliminary results from the PSA’s Monthly Integrated Survey of Selected Industries, factory production, as measured by the volume of production index (VoPI), the November reading reversed a gain of a revised 0.7% in October and a 2.1% rise a year earlier.

The November reading was the weakest since the 5.1% contraction in September.

Month on month, the manufacturing sector’s VoPI fell 1.9%, deepening a 0.4% drop in October. Stripping out seasonality, factory output fell 1.9% in November from a 5.5% rise a month earlier.

Manufacturing output growth for the first 11 months averaged 1.1%, against 5.1% a year earlier.

The forward-looking indicators, on the other hand, are pointing to a recovery. The Philippine manufacturing purchasing managers’ index (PMI) compiled by S&P Global rose to 53.8 in November from 52.9 in October, the strongest reading since the 54.1 posted in May 2022.

PMIs are a gauge of the volume of raw material orders, which will be turned into manufactured goods later. The strength of purchasing is a proxy for how manufacturers forecast demand in the near future. A PMI reading below 50 points to a contraction in the manufacturing activity, while expansions are signaled by PMIs above 50.

“The supply chain disruptions as a result of adverse weather conditions, leading to port congestion and flooding and eventually to longer lead times for inputs,” Leonardo A. Lanzona, an economics professor at the Ateneo de Manila, said via Messenger.

Mr. Lanzona also said that inflationary pressures were present in November, raising input costs for manufacturers.

Inflation accelerated to 2.5% in November, as prices of vegetables, meat and fish rose after six typhoons entered the Philippine Area of Responsibility throughout the month.

Sergio R. Ortiz-Luis, Jr., president of the Philippine Exporters Confederation, Inc., said by telephone that disruptions in the global supply chain caused by geopolitical tensions have also affected the electronics industry.

The PSA said that the November decline was led by food manufacturing, which contracted 0.8%. Food products account for 18.7% of manufacturing activity.

The manufacture of transport equipment fell 0.4%, and the manufacture of computer, electronic and optical declined 5.6%.

Average capacity utilization rate was 75.6% in November, topping the 74.8% from November 2023. The October reading was a revised 75.8%.

Nineteen out of 22 industry categories posted average capacity utilization rates of more than 70%. — Pierce Oel A. Montalvo

German chamber finds energy costs, logistics topping businesses’ concerns

LUFTHANSA-TECHNIK.COM

GERMAN companies listed high energy costs, inadequate infrastructure, and supply chain disruptions as their top concerns that tempered their confidence in the Philippine market, the German-Philippine Chamber of Commerce and Industry (GPCCI) said.

Citing its World Business Outlook Survey, the GPCCI said in a statement on Tuesday that 54% of the respondents said they expect to expand their workforces in the Philippines, exceeding regional and worldwide averages.

Some 44% also said that they plan to increase investment in the Philippines, while 55% expressed positive sentiment towards the current business environment.

However, the GPCCI said that this optimism is being undermined by challenges in energy costs, infrastructure, and supply chains.

“The AHK World Business Outlook Survey demonstrates the Philippines’ ability to deliver good results, particularly in employment growth and investment intentions, compared to global counterparts,” GPCCI President Marie Antoniette Mariano said.

“However, while this optimism is encouraging, we must remain vigilant in addressing the structural challenges that could hinder sustained progress,” she added.

The GPCCI said that the Philippines showed higher sensitivity to rising energy prices and commodity costs compared to other ASEAN markets, while infrastructure bottlenecks were more pronounced.

“It is crucial to prioritize policies that enhance energy efficiency, modernize infrastructure, and build resilient supply chains to ensure long-term competitiveness and sustainable growth,” GPCCI Board Director and Policy and Advocacy Chairperson Marian Norbert Majer said. 

Meanwhile, the GPCCI said that businesses in the Philippines view efforts to meet sustainability requirements as a competitive advantage.

The GPCCI said 43% of the businesses identified sustainability practices as a growth driver. This is slightly higher than the global average of 41%.

To leverage sustainability, the chamber cited the need for reforms to address long-standing issues.

“Sustainability is a defining factor for the future of business, and the survey underscores its importance as a driver of competitiveness in the Philippines,” GPCCI Executive Director Christopher Zimmer said.

Around 44% of the companies cited a shortage of skilled labor as a risk, while 40% identified economic policy. — Justine Irish D. Tabile

BCDA says continued use of Capas, Tarlac landfill illegal

METRO CLARK WASTE MANAGEMENT FACEBOOK PAGE

THE Bases Conversion and Development Authority (BCDA) said on Tuesday that Metro Clark Waste Management Corp. (MCWMC) continues to operate at the Kalangitan Sanitary Landfill, violating the temporary restraining order against its use.

“The BCDA denounces the continuous illegal operations of the MCWMC of the Kalangitan Sanitary Landfill in Capas, Tarlac, in violation of the 60-day Temporary Restraining Order (TRO) issued by the Court of Appeals,” the BCDA said in a statement. 

“The TRO essentially allows the landowner, BCDA, to recover the state-owned property, there being no effective injunction that will hinder it (from doing) so,” it added.

According to the BCDA, it received reports that MCWMC had set up a station along the road outside the Kalangitan landfill.

“Aside from the barriers set up by MCWMC preventing recovery efforts, security on the ground reported a foul smell emanating from the Kalangitan Sanitary Landfill, raising health and safety concerns for the neighboring communities,” it said.

The BCDA said it contacted the Philippine National Police, the Department of Environment and Natural Resources, and sanitation inspectors and public health officials of the governments of Tarlac and Capas.

“BCDA urges MCWMC to uphold the rule of law, to stop trespassing on government property, and to cease its illegal operations at Kalangitan,” it said.

It also called on local government units, businesses, and other clients to stop using the landfill.

“To reiterate, the landfill has no Authority to Operate (ATO) or business permit. Continued use of the facility constitutes a violation of existing environmental laws such as Republic Act 9003, or the Ecological Solid Waste Management Act of 2000,” it added.

Last month, BCDA warned that the continuous use of the 100-hectare landfill is against the law and noted that the contract between its subsidiary Clark Development Corp. and MCWMC expired on Oct. 5 and cannot be renewed or extended. — Justine Irish D. Tabile

ERC capex aprovals in 2024 top P101B

THE Energy Regulatory Commission (ERC) approved capital expenditure (capex) proposals amounting to P101.81 billion in 2024.

The applications had been filed by the National Grid Corp. of the Philippines (NGCP) and various distribution utilities (DUs) and electric cooperatives, ERC Chairperson and Chief Executive Officer Monalisa C. Dimalanta told reporters at a recent briefing.

“All in all, these projects amounted to P101 billion in investments required from NGCP and the DUs” benefiting more than 185,000 customers, she said.

The commission issued decisions involving 37 capex projects. Thirteen applications were from the NGCP and 20 were from DUs.

It also promulgated 12 NGCP capex projects and three DU projects.

In 2024, the ERC approved of 11 power supply agreements, allowing the distribution of electricity generated by plants with capacity of up to 3,052.9 MW.

It also approved 31 ancillary services procurement agreements worth 41.63 MW and 15 point-to-point applications, paving the way for the delivery of 2,362.43 MW of capacity.

The ERC also approved 386 certificates of compliance (CoCs) and provisional authorities to operation for independent power producers, 3,806 CoCs for qualified end-users, 894 CoCs for self-generating facilities, and 53 CoCs for distributed energy resources.

A CoC is a license issued by the ERC that grants permission to operate, allowing the entry of a total of 27,424.327 MW new capacities from issued certificates.

“This year, we are targeting to issue the final decisions for all 36 ancillary services agreements. There are also 15 point-to-point (applications). These are the lines from the plant connecting to the grid,” Ms. Dimalanta said.

For 2025, the ERC’s first-half priorities include the completion of the rate reset processes covering the fourth and fifth regulatory periods for the NGCP and power distributor Manila Electric Co., respectively.

The rate reset process is usually a forward-looking exercise that requires the regulated entity to submit forecast expenditures and proposed projects over a five-year regulatory period. The ERC assesses the actual performance of the entity and adjusts rates as needed.

The commission is also hoping to act on the pending petitions of the state-run National Power Corp. (NPC) regarding its rate application for Universal Charge for Missionary Electrification (UCME), a monthly charge collected from on-grid electricity end-users used to subsidize cost of power in off-grid areas.

“Hoping by this first month of the year, we will resolve all the pending UCME petitions of NPC to align with the current UCME petitions,” the ERC chief said.

The commission is also hoping to finish the roadmap on Full Retail Competition and Open Access (RCOA) and the campaign on Omnibus Customer Choice Programs within the first half of the year. RCOA allows qualified electricity consumers to choose their own power supplier.

For the second half, the key priorities include the resolution for NGCP’s rate reset covering the fifth regulatory period, completion of the reset of other private DUs, and revision of the secondary price cap at the Wholesale Electricity Spot Market. — Sheldeen Joy Talavera

SC upholds contested EPIRA provisions

ANDREY METELEV-UNSPLASH

THE Supreme Court (SC) affirmed the constitutionality of several provisions of the Electric Power Industry Reform Act (EPIRA), ruling that electricity generation and supply are not public utility operations but remain subject to regulation by the Energy Regulatory Commission (ERC).

In a resolution promulgated on July 31, 2024, but publicized on Jan. 7, the Court, sitting en banc, dismissed a petition filed by Anakpawis Rep. Fernando L. Hicap, and others, against the ERC, Manila Electric Co. (Meralco) and the Executive Secretary, that had sought to declare several sections of the law unconstitutional.

The Court upheld Sections 6 and 29 of EPIRA, clarifying that electricity generation and supply are not considered public utility operations and remain subject to regulation by the ERC.

In the same Resolution, the Court also affirmed Sections 34 and 43(b)(ii) of the law, which grant the ERC the authority to determine and approve the universal charge imposed on electricity end-users.

Additionally, it upheld Section 43(f), empowering the ERC to establish charges that enable distribution utilities to recover their losses.

The Court found no grave abuse of discretion on the part of the ERC in its implementation of the law.

It said that for a business to be classified as a public utility, it must offer a service essential to the public.

Since power generation and supply companies serve only a limited customer base and do not interact directly with the public, they are not considered public utilities.

Nevertheless, companies remain subject to government regulation due to the safeguards outlined in the EPIRA, which are designed to prevent abuse or irregularities.

These safeguards include the requirement for companies to obtain a certificate of compliance from the ERC, along with other regulatory measures.

The court added the universal charge is not a tax, as it is not designed to generate revenue. Instead, it aims to support the sustainability of the electric power industry under the State’s police power to promote public welfare.

EPIRA grants the ERC the authority to determine and approve this charge.

In addition, the court affirmed the ERC’s authority to implement a system allowing distribution utilities to recover losses, thereby ensuring the efficiency and quality of their services.

The delegation of this power from Congress to the ERC is protected by clear standards and limitations outlined in the EPIRA, it ruled.

The petitioners had argued that the ERC committed grave abuse of discretion in issuing guidelines for the Automatic Adjustment of Generation Rate and System Loss Rates by Distribution Utilities (AGRA Rules).

They also questioned the ERC’s approval of a staggered implementation of power rate increases requested by Meralco in December 2013.

They also claimed that the universal charge is a form of tax, which must be set by Congress. — Chloe Mari A. Hufana

NZ poultry imports banned after bird flu outbreak

REUTERS

THE Department of Agriculture (DA) said it banned imports of poultry and wild birds from New Zealand (NZ) after an outbreak of Type H7N6 Highly Pathogenic Avian Influenza (HPAI), commonly known as bird flu.

In Memorandum Order No. 1, the DA said shipments of domestic and wild birds, poultry meat, day-old chicks, eggs, and semen from the country were suspended.

“There is a need to prevent the entry of the HPAI virus to protect the health of Philippine poultry,” it added.

New Zealand’s Ministry for Primary Industries submitted a report to the World Organization for Animal Health, regarding an outbreak of HPAI in Canterbury in November affecting domestic birds.

An official report from the New Zealand government was submitted on Dec. 1 following confirmation by the New Zealand National Animal Health Laboratory.

The DA suspended the issuance of sanitary and phytosanitary import certificates for poultry products from New Zealand.

According to the Bureau of Animal Industry, avian flu has been detected in 53 Philippine municipalities across five provinces as of Jan 3. — Adrian H. Halili

BCDA awards management deal for John Hay golf course

PHILSTAR FILE PHOTO

THE interim management contract for the golf facilities at Camp John Hay (CJH) in Baguio City has been awarded to Golfplus Management, Inc., the Bases Conversion and Development Authority (BCDA) said on Tuesday.

In a statement, the BCDA said Golfplus operates the driving ranges of the Nuvali and Alviera estates and of sports management and marketing agency DuckWorld PH.

“We know the CJH golf course is a crowd favorite in the golf community. New and former players will continue to enjoy premium services at the estate facilities during the interim period,” BCDA Vice-President Mark P. Torres said.

The golf estate facilities, which were formerly handled by CJH Development Corp. subsidiary CJH Golf Club, Inc., have been recovered by the BCDA after a notice to vacate was served to CJH DevCo on Monday.

“We will be introducing improvements and evaluating systems and protocols to provide appropriate recommendations when the estate is ready to be turned over to a long-term private partner,” Golfplus President and Interim Management Head Eduardo P. Arguelles said.

“We want to assure clients and stakeholders that we will be updating everyone regularly to guide them during the transition,” he added.

The golf estate facilities will be closed on Jan. 7 and 8 to facilitate an inventory of the property and other transitional activities.

“The new management will make sure services continue and workers and caddies are cared for,” John Hay Management Corp. President and Chief Executive Officer Marlo Quadra said.

“We look forward to upholding the prestige of the golf estate and quality of service for players and guests,” he added.

LODGING
Meanwhile, in a separate statement, the BCDA said the Manor and Forest Lodge at CJH will also have a new interim manager, Landco Pacific Corp.

“This is to assist the BCDA in transitioning the properties to a new private partner once they are ready to be awarded for long-term lease and management arrangements,” Landco said.

A subsidiary of Metro Pacific Investments Corp. (MPIC), Landco will be the interim operator of the facilities for one year, extendable to two.

“We are happy to assist the BCDA in this transition. CJH must realize its potential as a special economic zone. This is a significant first step,” MPIC Chairman Manuel V. Pangilinan said.

“We have assembled a highly capable team to make sure that these legacy properties are protected and enhanced as cornerstones of Baguio history and tourism. Staff and guests need not worry,” he added.

The interim task force for the management transition of the hotels will be led by Patrick C. Gregorio, the head of Landco Lifestyle Ventures. — Justine Irish D. Tabile

SEAG gold medalist Mervin Guarte stabbed to death in Calapan City

MERVIN GUARTE — PHILSTAR FILE PHOTO

SOUTHEAST ASIAN GAMES (SEAG) gold medalist Mervin Guarte suffered a tragic end after a stabbing incident that led to his demise on Monday in his hometown Calapan City, Oriental Mindoro.

“We are still in shock, very sad,” said Philippine Obstacle Sports Federation President Alberto Agra after learning of Mr. Guarte’s passing.

According to police reports, the unidentified assailant stabbed Mr. Guarte in the chest while the latter was sleeping in the living room of Brgy. Councilor Dante Albo Abel at 4:30 a.m.

Mr. Guarte, an Air Force man, managed to call for help and was rushed to a nearby hospital before expiring.

It was a gruesome death to an athlete who had brought honor to the country following a pair of SEA Games gold in obstacle racing and the same number of silver in athletics.

He was 33.

The incident drew an outpouring of condolences from friends and fellow national team mainstays including Olympic boxing medalists Nesthy Petecio and Eumir Felix Marcial.

“RIP boss meg,” said Ms. Petecio.

Rest in peace, meg,” said Mr. Marcial.

“Mourning for our one of the medalist athletes from Patafa to Obstacle for his untimely demise,” Philippine Olympic Committee President Abraham Tolentino, for his part, said.

“The Philippine sports community mourns the untimely death of Mervin Guarte, a long-time member of the national team and a multi-medalist from the Southeast Asian Games,” said Philippine Sports Commission Chair Richard Bachmann in a statement.

“Rest in peace! Thank you for your service to the country, Mervin (Guarte),” he added.

For Olympian pole-vaulter EJ Obiena, he will miss someone he considers like an older brother.

“I just learned the devastating news of the shocking death of my friend and National Teammate Kuya Mervin Guarte,” said Mr. Obiena. “May his soul rest in peace, and I am sending my deepest condolences to his family and loved ones.  What a tragedy.  Only 33 years old.”

“This is another poignant reminder to us all, that we must embrace every day as a gift as tomorrow is never guaranteed. Blessed to have shared the track with you. Rest well my friend,” he added. — Joey Villar

Eala suffers early exit at Aussie Open qualifiers

ALEX EALA — FACEBOOK.COM/ALEXEALA

ALEX EALA bowed to Croatia’s Jana Fett, 7-5, 6-2, to absorb an early exit in Round 1 of the 2025 Australian Open on Tuesday at the Melbourne Park.

Ms. Eala waxed hot early in the opening frame but lost steam down the stretch before being completely outclassed in the second set en route to a quick elimination in her highly-anticipated first major tourney this year.

Hopes were high for the 19-year-old Filipina pride to make her mark in the Land Down Under after impressive campaigns in the three other Grand Slams last year but to no avail in the match that lasted one hour and 59 minutes.

Ranged against the No. 27 seed Ms. Fett, the unranked but undaunted Ms. Eala managed to scoop a 2-0 lead in the extended first set but surrendered the next five games to stare at a sudden 2-5 deficit.

Ms. Eala, WTA No. 147 on the heels of a semifinal finish in the Workday Canberra International last weekend, would fight back by holding serve and breaking Ms. Fett’s twice to tie things up at 5-all before succumbing.

The WTA No. 134 Ms. Fett then stamped her class from there on, blitzing to a 4-0 lead in the second en route to the second round against Austria’s Sinja Kraus (WTA No. 211), which made short work of WTA No. Victoria Hrunkacova (WTA No. 168), in their own first-round duel, 6-1, 6-2.

Ms. Fett, a seasoned player with 14 pro titles, banked on her lethal offensive game by converting 61% of her serves while forcing Ms. Eala to five errors.

It’s a mastery of 28-year-old Ms. Fett on Ms. Eala once again after a 4-6, 6-3, 7-5 in the 2021 W25 Manacor in Spain, where the Filipina ace graduated as a scholar at the Rafael Nadal Academy.

Ms. Eala was a former junior champion in the 2020 Australian Open before climbing to the women’s division in a bid to become the first Filipina player ever to make it to a Grand Slam main draw.

Her early elimination in the Australian Open was a stark contrast to her qualifying final stints in the other majors of the French Open, Wimbledon and the US Open last season. — John Bryan Ulanday

Naturalized Korovin leads Philippines in Asian Winter Games

NEWLY naturalized world figure skating champion Aleksandr Korovin will spearhead the Philippines when it plunges into action in the 9th Asian Winter Games set from Feb. 7 to 14 in Harbin, China.

It officially materialized after the 30-year-old Russian-born Mr. Korovin took his oath of allegiance before Senate Majority Leader Francis Tolentino in a simple ceremony on Monday at the Senate.

Mr. Tolentino, who heads kickboxing, sponsored Mr. Korovin’s naturalization bill that was eventually enacted and signed into law by President Marcos in December last year.

Mr. Korovin is expected to partner with Filipina Isabella Gamez, whom the former has been paired with for about four years now.

Although he’s Russian, Mr. Korovin and Ms. Gamez carried the Philippine flag in their international stints that resulted in the country’s first international medal — a silver in 2022 in Nice, France.

The pair will be a part of the lean but mean 20-strong delegation vying for glory in Harbin.

And if the stars align, the duo hopes to make it to the Winter Olympics next year in Italy where they also hope to snare the country’s first medal, if not the gold itself. — Joey Villar

In matchup of undermanned teams, Grizzlies handle Mavs

WITH both teams missing key players, Jaren Jackson, Jr. and Jaylen Wells had double-doubles and the Memphis Grizzlies snapped a two-game skid with a 119-104 victory on Monday night over the visiting Dallas Mavericks.

Memphis played without injured starters Desmond Bane and Ja Morant, along with key reserves Santi Aldama and Marcus Smart. Stars Luka Doncic and Kyrie Irving did not play for the Mavericks, who have lost five in a row.

Jackson finished with 35 points and 13 rebounds, while Wells added 17 points and 11 boards. Jackson was 13 of 23 shooting and had five assists, three steals and a block. Scotty Pippen, Jr. contributed 18 points, five rebounds, five steals and four assists, and John Konchar grabbed 13 rebounds.

Dallas was led by P.J. Washington, who had 17 points, 10 rebounds and five assists. Naji Marshall scored 16, Klay Thompson had 15 and Dereck Lively II added 14 points, 12 rebounds and three blocks. Jaden Hardy scored 15 points, all in the second half.

Memphis broke open a close game in the second half and led by double digits for most of the fourth quarter.

The Grizzlies, returning home following a five-game road trip, fell behind by 12 early in the second quarter. Shooting 38.1% in the first quarter had Memphis playing catch-up from the outset.

But Jackson Jr. directed a second-quarter rally along with reserve Jay Huff, to help the Grizzlies go up by 56-55 at the half. Jackson Jr. had eight points in the quarter and 16 in the half. Huff scored five of his eight first-half points during a 12-0 Memphis run that gave the Grizzlies their first lead at 50-48. Huff’s corner three with 29.2 seconds to go provided the halftime cushion.

Marshall led Dallas in the first half with 13 points and Lively contributed 10 points and seven rebounds.

Memphis had a slim halftime lead despite shooting 39.1% in the half. A 32-26 rebounding edge, including 20-12 in the second quarter, allowed the Grizzlies to stay in the game.

The Grizzlies extended their lead to 12 in the third quarter behind Jackson Jr., who had 13 points in the period. The Grizzlies led 87-80 after three quarters.

Dallas reserve Daniel Gafford sprained his left ankle early in the second quarter and did not return. — Field Level Media via Reuters

Real Madrid thrashes Deportiva Minera 5-0 to reach Copa del Rey last 16

REAL MADRID booked their place in the last 16 of the Copa del Rey with an emphatic 5-0 win over fourth-tier Club Deportiva Minera on Monday, with striker Arda Guler scoring a superb double.

Madrid took an early lead when Federico Valverde volleyed home in impressive style within five minutes. Eduardo Camavinga doubled the lead just eight minutes later with a bullet header, while Guler added a third goal before the half-hour mark.

The hosts came closest to scoring when striker Omar Perdomo unleashed a long-range effort that flew just wide of Madrid goalkeeper Andriy Lunin’s far right post.

Luka Modric’s brilliant finish into the far corner 10 minutes after the break, following a clever combination with Brahim Diaz, brought the crowd in the Cartagonova stadium to their feet in a festive atmosphere even though the home side were trailing.

Despite conceding five goals, Minera goalkeeper Fran Martinez saved several good shots including efforts from Valverde and Kylian Mbappe.

Cartagena’s Deportiva Minera are currently top of Group 13 of the Segunda Federacion. Madrid leads LaLiga on 43 points, two clear of Atletico Madrid. — Reuters

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