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House bill filed to mandate use of non-lethal weapons for law enforcement

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A BILL has been filed at the House of Representatives that seeks to mandate the carrying and use of non-lethal weapons by law enforcers.

Magdalo Rep. Manuel D.G. Cabochan III filed House Bill 10546, or the Mandatory Use of Non-Lethal Weapons Act, “to help cultivate the trust of the people” in state forces.

“This is envisioned to curtail the risk of unnecessary use of lethal force against the public,” it says in a copy of the bill.

All law enforcers, peacekeepers, security personnel, and jail officers would be required to have non-lethal weapons as part of their standard uniform.

Training on the use of these weapons will be mandated to be part of the basic and refresher courses of law enforcement officers.

Mr. Cabochan said that he filed the bill to avoid incidents where unarmed offenders are killed, such as when retired Army Corporal Winston Ragos was shot by Police Master Sergeant Daniel Florendo, Jr. at a checkpoint in Quezon City for allegedly pulling out a weapon. Investigators later found that the victim did not have a weapon in his sling bag and had been suffering from post-traumatic stress disorder.

The congressman added that incidents like this “have put the police in bad light which erodes the trust of the public.” — Russell Louis C. Ku

Passage of legislation necessary for 1961 convention on statelessness to proceed successfully, says Security chief

THE PASSAGE of legislation is necessary for the country to concur to the accession of the 1961 Convention on the Reduction of Statelessness successfully, a Foreign Affairs legal officer said on Friday.

The United Nations multilateral treaty aims to prevent statelessness and reduce it over time. It establishes an international framework to ensure the right of every person to a nationality, requiring states to establish safeguards in their nationality laws to prevent statelessness at birth and later in life.

Maria Cristina B. Exmundo, National Security Council Division Chief of the Legal and Legislative Liaison Office, said that they supported the move to join the convention, but noted the need to pass an Act that looks into the details of the convention while ensuring it is aligned with international law.

“The obligatory provisions of the convention, we really need to have legislation on that,” she added during the Foreign Affairs committee hearing, especially for welfare arrangements such as education and employment.

Senator Aquilino Martin de la L. Pimentel III, who chaired the hearing, said that the convention, as discussed by other resource persons present, complimented the country’s laws and responsibilities. “We could see its consistency with our other commitments, with our basic beliefs as a country.”

The 1954 convention relating to the status of stateless persons was signed by President Rodrigo R. Duterte in August, which makes the Philippines the first Southeast Asian country to become a party to the convention that outlines the minimum rights and defines who a stateless person is.

The country also has a National Action Plan to End Statelessness, launched in 2017 with 2024 as a target. An updated Philippine development plan was also made which includes enhancing the legal framework for stateless persons.

“This should really be a non-controversial action on the part of the Philippines to accede to this convention,” Mr. Pimentel said.

Normina E. Mojica, Council for the Welfare of Children Officer-in-Charge, told the hearing that the passage of this convention “resolves our problem in terms of the so-called stateless children that we have in other countries.”

The Institute of Statelessness and Inclusion estimated that there are about 15 million stateless people around the world. Approximately one-third of those are children, with 144 stateless children born every day.

Many of these children are either born out of wedlock or born in other countries without access to basic services due to their being regarded as stateless, said Ms. Mojica.

While the Philippine constitution guarantees nationality to everyone, including those who are overseas, on the basis of blood relations, Center for Migrant Advocacy Executive Director Ellene Sana said that mothers or parents of children born overseas “may be in various circumstances that can prevent them from registering their babies upon birth.”

The leading reason would be the legal status of the parents, she said. If the guardians are undocumented, the children are also undocumented because their parents are unable to go to the embassy to register their baby due to strict security.

Many of the children, she added, reach adolescence without a clear status. “Undocumented Filipinos are rendered invisible, denied access to basic services including medical treatment” which is especially challenging amid the pandemic.

There are currently 77 countries party to the 1961 convention which provides a menu of options to prevent and reduce statelessness, according to the United Nations High Commission for Refugees. — Alyssa Nicole O. Tan

Solon pushes approval of Media Workers Welfare Bill amid killing of community journalist

Malabanan -- Philstar

A HOUSE LAWMAKER is urging Congress to approve a measure that would ensure the protection and sustained benefits of media workers following the killing of community journalist Jesus “Jess” Malabanan.

ACT-CIS Party-list Rep. Rowena Nina O. Taduran said on Friday that the approval of House Bill 8140 or the Media Workers’ Welfare Act will provide media with security and protection beyond the assistance of the Presidential Task Force on Media Security.

“Media workers need a law to give them security,” she said in a statement.

Under the bill, media workers who are reporting in areas that would expose them to occupational risks or peril to life are entitled to hazard pay of at least P500 per day.

Those covering in dangerous areas should also be provided with basic safety gear such as bulletproof vests, helmets, and first-aid kits by their employers. The bill also requires employers to provide additional insurance coverage such as death, disability, and medical benefits. The measure also seeks to ensure that media workers are covered by social welfare and retirement benefits upon employment.

The bill has already been approved on third and final reading in the House while two counterpart bills are pending at the committee level in the Senate.

Ms. Taduran also urged authorities to immediately investigate and resolve Mr. Malabanan’s murder.

“I am shocked at how journalists are being silenced by bullets. Their courage stems from their desire to tell the truth. We must not allow violence to kill that flame,” she said.

Mr. Malabanan was a correspondent for the Manila Standard, The Manila Times, Reuters, and Bandera.

Motorcycle-riding gunmen shot Mr. Malabanan in the head on Wednesday as he was watching television inside his family’s retail store Calbayog City, Samar.

Journalist Manuel Mogato said Mr. Malabanan worked on the Reuters reports on President Rodrigo R. Duterte’s drug war, which won the Pulitzer Award in 2018.

The Commission on Human Rights and Presidential Task Force on Media Security are currently investigating the killing, along with local police. — Russell Louis C. Ku

PHL economy seen to grow by 5.3% in 2021

THE ECONOMY could grow by 5.6% this year, boosted by the faster-than-expected third quarter expansion and increased business activities following the easing of mobility restrictions, Sun Life Investment Management and Trust Corp. (SLIMTC) said. 

In a presentation at a briefing on Friday, SLIMTC President Michael Gerard D. Enrique said their latest 2021 growth forecast is higher than the 4.5% estimate they gave in October. 

“The fourth quarter estimate previously was at 6%, now it’s at 6.6%. The third quarter really surprised. With looser restrictions, more mobility is happening during the fourth quarter, and people are more optimistic in terms of their sentiment spend,” Mr. Enrique said in an online briefing. 

More businesses have expanded their operations as restrictions were eased after a decline in coronavirus cases. 

In the third quarter, Philippine GDP grew by 7.1% year on year. This brought the nine-month average to 4.9%, which is near the upper end of the government’s downward-revised 4-5% target. 

In 2022, Mr. Enriquez said SMILTC expects the economy to grow by 5-7%. 

However, the possibility of a spike in infections due to the Omicron variant could dampen growth prospects. 

“The consumption story and business confidence can spiral back down if we see more alert levels to go up again,” he said. 

“We were expecting election-related spending to be a bit muted given that there may be some mobility restrictions but as we see it now, we may expect more normalcy in terms of how we’ve seen previous election campaigns in terms of consumption spending,” Mr. Enriquez added. – LWTN 

GlobalSource says improved unemployment data masks extent of joblessness

PHILIPPINE STAR/ MICHAEL VARCAS

A THINK TANK has flagged the alarming labor situation in the Philippines, as the number of Filipinos looking for more work or longer working hours increased.  

While the country’s unemployment rate improved last month, overall joblessness rose to 21.9% in 2020 and 22.3% in 2021 from 16.8% in 2019, think tank GlobalSource Partners noted in an emailed report. 

“Unemployment rate has declined this year but masks extent of joblessness,” it said. 

GlobalSource said the number of Filipinos wanting to work more hours went up to 16.1% or 7.04 million people in October from 14.2% or 6.18 million in September. 

“[Compared] with pre-pandemic (2019), employment increased by only about a third or about 1.3 million jobs,” it said. “Moreover, the sectoral and occupational jobs breakdowns provide a grim picture of the post-pandemic recovery where new jobs are largely in low-productivity, low-skilled and thus low-wage segments.” 

The think tank said between 2019 and 2021, the labor force “grew faster than the working age population” due to the hundreds of thousands of repatriated overseas workers seeking local employment as deployment opportunities slumped.  

“There may also be those who saw family incomes decline during the pandemic and are now forced to work to make ends meet,” GlobalSource said.  

The country’s unemployment rate decreased to 7.4% last month from 8.9% in September, the lowest in three months or since July 2021’s 6.9%, the government reported earlier this week. 

This is equivalent to about 3.5 million jobless Filipinos in October, down from 4.255 million unemployed in September. — K.A.T. Atienza 

Meycauayan East Service Road opened to public

THE Meycauayan East Service Road was formally opened to the public on Friday, NLEX Corp. said in an e-mailed statement.    

The new access road connects Meycauayan city’s Libtong and Lawang Bato in Valenzuela City, which will “ease both northbound and southbound traffic in the city.”   

The Department of Public Works and Highways (DPWH) constructed the new service road to be an alternative for the MacArthur Highway. The one-kilometer, two-lane service may be used by motorists to travel between Meycauayan and Venezuela.   

“Aside from relieving traffic, this infrastructure is seen to enhance mobility and make economic activities in Meycauayan and nearby areas more efficient,” NLEX Corp. Vice President Donna Faylona-Marcelo said.   

Present at the opening ceremony were Bulacan 4th District Representative Henry R. Villarica, Meycauayan City Mayor Linabelle Ruth R. Villarica, Meycauayan City Vice Mayor Josefina O. Violago, Toll Regulatory Board (TRB) Executive Director Alvin A. Carullo, DPWH District Engineer George Santos, and NLEX’ Ms. Faylona-Marcelo.  

The new road aims “to provide motorists with a direct local route and help improve traffic flow, especially during rush hours at [the] Meycauayan Interchange.”  

“The service road will improve the accessibility and address the increasing traffic volume in our city as we host many manufacturing and industrial companies,” Mr. Villarica said.  

NLEX Corp. said the development is part of planned road network improvements after traffic along the east and west of Meycauayan increased “dramatically.”   

Together with DPWH, NLEX Corp. is also working on a “more direct local route” for the 190-meter Marilao East Service Road which may be used by motorists to and from Meycauayan and Marilao. 

NLEX Corp. is part of Metro Pacific Tollways Corp., the tollway unit of Metro Pacific Investments Corp. (MPIC). MPIC is one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc. 

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Keren Concepcion G. Valmonte 

Banks’ NPL ratio eases to six-month low in October

BANKS’ soured debt continued to decline as of October, bringing the non-performing loan ratio to its lowest since April, latest data from the Bangko Sentral ng Pilipinas (BSP) showed. 

Central bank data showed the industry’s non-performing loans (NPL) inched down 0.49% to P483.98 billion as of October from P486.362 billion at end-September. 

However, the end-October NPL level rose 22.5% from P395.058 billion a year earlier. 

The banking industry’s loan portfolio rose 3.2% to P10.959 trillion as of October from P10.61 trillion a year earlier. 

This brought the bad loan ratio to 4.42%, easing from the 4.44% in September but higher than the 3.72% a year ago. October’s NPL ratio is the lowest in six months or since the 4.35% seen as of April. 

Analysts attributed the lower NPL ratio to the economy’s recovery and its impact on borrowers’ capacity to pay their debts. 

“NPL could have eased slightly as business activity comes back to life, helping both corporates and households make payments on time,” ING Bank N.V.- Manila Senior Economist Nicholas Antonio T. Mapa said in an email. 

“Business is slowly rebooting and income generating activities are starting to take pace. NPL declines when the economy improves because money can circulate better in the economy,” John Paolo R. Rivera, an economist at the Asian Institute of Management (AIM), said in an email. 

The economy grew by 7.1% year on year in the third quarter, bringing the nine-month average to 4.9%. BSP Governor Benjamin E. Diokno said gross domestic product expansion could surpass the government’s 4-5% target this year as fourth quarter growth could reach 7% or higher. 

BSP data showed past due loans increased 10.3% year on year to P565.776 billion as of October from P512.889 billion. This brought its share in banks’ lending book to 5.16% from 4.83%. 

Meanwhile, restructured loans more than doubled to P337.817 billion from P137.079 billion. These loans made up 3.08% of banks’ loan portfolio, increasing from 1.29% as of October 2020. 

Loan loss reserves amounted to P413.375 billion at end-October, higher by 18.8% from the P347.771 billion. This brought its share in banks’ loans to 3.77% from 3.28%. 

Still, NPL coverage ratio — which indicates banks’ allowance for potential losses due to bad loans — declined to 85.41% from 88.03% a year earlier. 

ING Bank’s Mr. Mapa said the NPL ratio may continue to decline if the economic rebound is sustained. 

“NPL ratio can still improve as we contain the pandemic. This is a good development,” AIM’s Mr. Rivera said. 

BSP officials earlier said they expect the NPL ratio to hit 5-6% by end-2021 before peaking at 8.2% by 2022. If realized, this will still be lower than the 17.6% seen in the aftermath of the Asian Financial Crisis in 2002. — Luz Wendy T. Noble 

BPI looking to raise at least P5 billion from bond offer

BANK of the Philippine Islands is looking to raise at least P5 billion from it offer of peso-denominated bonds in January, it said on Friday. 

“Proceeds from this bond offering will be used for general corporate purposes including refinancing,” the bank said in a filing with the local bourse on Friday.  

The papers will have a tenor of two years. The upcoming issuance is the fourth tranche of the bank’s P100-billion bond program.  

BPI will offer the papers from Jan. 6-21. Its issue and listing date will be on Jan. 31. 

Investments start at P1 million and in increments of P100,000 afterwards. 

The bank said it may update the offer’s terms and schedules. 

BPI Capital Corp. and The Hongkong and Shanghai Banking Corp. (HSBC) are the joint lead arrangers for the offering. The selling agent for the bonds will be BPI Capital, while HSBC will serve as participating selling agent.  

In August 2020, the lender raised P21.5 billion through its COVID Action Response bonds that were oversubscribed by more than seven times versus the P3-billion target. The proceeds were used to finance lending for small businesses during the crisis. 

BPI’s third quarter net income inched up 3% year on year to P5.657 billion from P5.495 billion, as lower credit provision offset the decline in interest earnings. This brought its nine-month net profit up by 1.8% year on year to P17.5 billion. 

The bank’s shares went down by P2.25 or 2.42% to close at P90.65 apiece on Friday. — Luz Wendy T. Noble 

BSP fully awards one-month bills

BW FILE PHOTO

THE BANGKO SENTRAL ng Pilipinas (BSP) fully awarded its offer of one-month securities on Friday, with its average rate going down following the government’s retail bond offering. 

The central bank awarded P80 billion in short-term bills as planned as the offer fetched bids worth P105.85 billion, making it oversubscribed by 1.32 times. This was also higher than the P102.042 billion in demand seen a week earlier. 

Accepted rates for the 28-day bills were from 1.77% to 2.038%, slimmer than the 1.76% to 2.09% logged in the prior auction. With this, the average rate of the papers stood at 1.8653%, down by 0.96 basis point from 1.8749% previously. 

The central bank uses its short-term securities and term deposit facility to mop up excess liquidity in the financial system and guide market rates. 

The average rate of the central bank’s one-month bills dipped as the national government’s cash position increased following its retail Treasury bond (RTB) issue, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message. 

The Bureau of the Treasury sold P360 billion in five-and-half-year RTBs after a two-week offer. Proceeds from the issuance will be used to fund the government’s pandemic response and recovery programs. — LWTN 

No rediscount borrowings in November

BANKS did not touch the rediscount facility of the Bangko Sentral ng Pilipinas (BSP) in November amid ample liquidity and relatively slow lending growth.  

“For the period Jan. 1 to Nov. 30, total availments of banks against their rediscount loans remain unchanged at P6.12 million for loans under the peso rediscount facility,” the central bank said in a statement on Friday. 

There were also no availments under the Exporters’ Dollar and Yen Rediscount Facility (EDYRF). 

The BSP’s rediscount facility gives banks access to additional money supply by posting their collectibles from clients as collateral. 

In turn, banks may use the cash — denominated in peso, dollar or yen — to extend more loans to their corporate or retail clients and service unexpected withdrawals. 

In 2021, lenders have so far only tapped the central bank’s rediscount facility in June, July, and September. 

Lenders did not borrow from the rediscount facility in November as they have ample liquidity and lending growth remains muted, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message. 

“Banks also have other options for funding such as the interbank market and the capital markets,” he added. 

Outstanding loans by big banks rose 3.5% year on year to P9.268 trillion in October, based on latest BSP data. Production loans rose 4.9%, while retail borrowings dropped by 7.2%. 

In the same month, liquidity growth slowed to 8.2% from 8.3% in September. 

Meanwhile, for December, the applicable rate for peso rediscount loans will be 2.5%, regardless of maturity. 

Rates of dollar- and yen-denominated loans, regardless of maturity, are at 2.17325% and 1.91533%. – L.W.T. Noble 

Peso down on trade data

THE PESO retreated versus the greenback on Friday as the country recorded a wider trade deficit in October and ahead of the release of the latest US inflation report. 

The local unit closed at P50.35 per dollar on Friday, weakening by nine centavos from its P50.26 finish on Thursday, data from the Bankers Association of the Philippines showed. 

Week on week, the peso appreciated by a centavo from its P50.36 finish on Dec. 3. 

The peso opened Friday’s session at P50.28 per dollar, which was also its intraday best. Meanwhile, its worst showing was at P50.39 versus the greenback. 

The local unit weakened as the country posted a wider trade deficit, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message. 

Data released by the Philippine Statistics Authority on Friday showed the trade deficit widened to $4.01 billion in October from the $2.04-billion gap a year earlier. It was also the biggest deficit since the $4.27 billion posted in January 2019. 

That month, exports rose 2% year on year to $6.41 billion, slower than the 6.4% growth in September. Meanwhile, imports surged 25.1% to $10.43 billion. 

The market was also cautious ahead of the release of the November US consumer price index, a trader said in a Viber message. 

A faster-than-expected inflation print could strengthen the case for the US Federal Reserve to tighten their monetary policy this December, Reuters reported. — L.W.T. Noble with Reuters 

Shares drop on profit taking ahead of US data

Philippine Stock Exchange index

STOCKS declined on Friday on profit taking ahead of the release of the US consumer price index report. 

The benchmark Philippine Stock Exchange index (PSEi) fell 42.75 points or 0.59% to close at 7,192.17 on Friday, while the broader all shares index slid by 12.12 points or 0.31% to 3,830.43. 

“Local shares were sold as investors took in some of their profits ahead of the CPI data release this Friday in the US. Economists, as surveyed by Dow Jones, expect the Nov inflation to hit 6.7% year on year—the hottest since June 1982,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message. 

The US CPI for November was due later on Friday and a Reuters poll of economists expect it to have risen 6.8% year-on-year, overtaking a 6.2% increase in October, which was the fastest gain in 31 years. 

Any upside surprise will likely be interpreted as a case for a faster Federal Reserve taper and bring forward expectations for interest rate rises. 

“After PSEi gained for five straight days, the decline today is considered healthy,” Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said in a Viber message on Friday. 

All sectoral indices closed in the red on Friday. Financials fell 21.76 points or 1.35% to 1,590.47; property lost 31.54 points or 0.96% to 3,233.90; industrials dropped 35.63 points or 0.34% to 10,397.95; mining and oil decreased 16.76 points or 0.18% to 9,196.45; holding firms gave up 9.54 points or 0.13% to 6,968.68; and services went down 1.01 points or 0.05% to 1,993.97. 

Value turnover increased to 15.52 billion with 3.57 billion issues switching hands on Friday from the P8.61 billion with 1.87 billion shares traded on Thursday. 

Decliners beat advancers, 103 against 99, while 43 names closed unchanged. 

Net foreign selling jumped to P9.57 billion from the P1.09 billion seen the previous trading day. 

Mr. Ricafort said the PSEi’s immediate support is at the 7,000-7,040 levels, while immediate resistance will be at 7,230-7,260.  

“Support may be drawn at the 6,800 area, while 7,454.50 may be considered the resistance area to watch next week,” Timson Securities, Inc. Trader Darren Blaine T. Pangan said in a Viber message. — M.C. Lucenio with Reuters