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Stocks to drop as data fuel rate hike expectations

REUTERS

PHILIPPINE SHARES are expected to decline this week as economic data fueled expectations of more rate hikes from both the US Federal Reserve and the Bangko Sentral ng Pilipinas (BSP).

The Philippine Stock Exchange index (PSEi) inched down by 2.08 points or 0.03% to close at 5,932.19 on Friday, while the broader all shares went up by 0.80 point or 0.02% to 3,200.59.

Week on week, the PSEi gained 191.12 points or 3.33% from its close of 5,741.07 on Sept. 30.

“The market took a breather from last week’s rout, as bargain hunters came alive ahead of September 2022 earnings season,” online brokerage 2TradeAsia.com said in a report on Friday.

AB Capital Securities, Inc. Vice-President Jovis L. Vistan in a Viber message said that the market moved sideways on Friday as investors stayed on the sidelines ahead of the release of the latest US jobs data that night.

Nonfarm payrolls increased by 263,000 jobs last month after rising by an unrevised 315,000 in August, the US Labor department reported on Friday.

China Bank Securities Corp. Research Director Rastine Mackie D. Mercado said the jobs report may cause the market to decline this week “as this further cements prospects of continued aggressive rate hikes from the Fed.”

“Worries over further rate hikes by the Fed could be strong this week following the US’ strong September labor market data. Investors may also look towards our balance of trade and foreign investment data for cues,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message. 

“Lingering concerns from the peso’s weakness to inflationary risks in the Philippines, to the hawkish monetary policy outlooks of the Federal Reserve and the Bangko Sentral ng Pilipinas may weigh on sentiment,” Mr. Tantiangco added.

Philippine headline inflation rate rose to an over 13-year high of 6.9% in September from 6.3% in August and 4.2% in the same month last year, fueling expectations that the BSP will continue to hike rates.

The Monetary Board has raised borrowing costs by 225 bps since May. Its next policy-setting review will be on Nov. 17.

Meanwhile, the US central bank has hiked rates by 300 bps since March, with policy makers saying there may be a need to continue tightening aggressively as inflation remains stubbornly high.

The release of latest US consumer price index (CPI) data will also drive trading this week, Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message. September US CPI data will be released on Oct. 13.

Philstocks Financial’s Mr. Tantiangco and 2TradeAsia. com put the PSEi’s support at 5,700 and resistance at 6,000-6,100; China Bank Securities’ Mr. Mercado placed support at 5,830 and resistance at 6,050-6,200. — A.E.O. Jose

CSB survives the San Beda scare, keeps its solo lead of Season 98

MIGUEL OCZON (8) scores a team high 19 points highlighted by 5 treys. — NCAA/SYNERGY-GMA

Games Tomorrow
(Filoil EcoOil Centre)
12 p.m. — SSC-R vs JRU
3 p.m. — AU vs LPU

COLLEGE of St. Benilde’s (CSB) Miguel Oczon routinely shoots a thousand triples just before the crack of dawn every day without fail for the big moment that he hopes will arrive.

It came yesterday.

The 21-year-old, six-foot gunslinger from Davao City buried a flurry of threes late as CSB weathered a James Kwekuteye-whipped San Beda storm and hacked out a 78-69 victory yesterday that kept its iron grip of the solo lead in NCAA Season 98 at the Filoil EcoOil Centre.

With their double-digit lead blown and trailing by two with less than five minutes to go, Mr. Oczon went on a three-point shooting spree and knocked down three of those including one with a defender on his face and their shot clock winding down that turned things around in their favor.

The sweet-shooting, high-scoring Mr. Kwekuteye utterly dominated Mr. Oczon and erupted for a game-best 28 points that included a rain of six triples.

But Mr. Oczon had the last laugh as he strung together those napalm-injected threes late while Mr. Kwekuteye was silenced.

When it was over, Mr. Oczon ended up with a team-high 19 points highlighted by what he does best—five booming treys—and CSB its seventh win in eight outings and a firmer grip of No. 1.

“I thank the Lord for making this win possible and Miggy Oczon also,” said CSB coach Charles Tiu. “I was teasing him up a bit because he couldn’t make a shot.

“But he’s the hardest worker in the team, wakes up 4 or 5 a.m. every morning just to shoot. It’s nice to see his hard work paying off,” he added.

The Lions slipped to 5-3.

Earlier, Lyceum of the Philippines University outlasted San Sebastian in overtime, 82-79, to zoom to No. 2 with a 6-2 card.

The Stags dropped to 2-5. — Joey Villar

The scores:

First Game

LPU 82 – Guadana 14, Bravo 14, Barba 11, Umali 9, Penafiel 9, Navarro 8, Valdez 7, Montano 5, Cunanan 3, Larupay 2, Aviles 0, Villegas 0

San Sebastian 79 – Escobido 12, Desoyo 12, Calahat 9, Felebrico 9, Villapando 7, Altamirano 7, Cosari 7, Sumoda 5, Una 3, Yambing 3, Concha 3, Shanoda 2, Are 0

Quarterscores: 27-29; 48-46; 61-64; 73-73 (OT); 82-79

Second Game

CSB 78 – Oczon 19, Gozum 16, Corteza 11, Nayve 10, Carlos 5, Cullar 4, Sangco 4, Lepalam 4, Pasturan 3, Marcos 2, Flores 0, Cajucom 0

San Beda 69– Kwekuteye 28, Cometa 10, Bahio 9, Ynot 8, Sanchez 5, Alfaro 3, Andrada 2, Cortez 2, Payosing 2, Jopia 0, Visser 0, Cuntapay 0

Quarterscores: 17-14; 37-31; 51-49; 78-69

San Miguel Beer steals a win from TNT in 3×3 Leg 4 finals

SAN MIGUEL Beer is PBA 3x3 First Coference Leg 4 winner. — PBA MEDIA

SAN Miguel Beer (SMB) foiled what appeared to be an imminent TNT triumph, stealing glory in the PBA 3×3 First Conference Leg 4 with a gutsy 22-20 come-from-behind overtime victory in the finals yesterday at Robinson Place Malabon.

Ken Bono knocked down a clutch two-pointer at the buzzer to send the game into overtime after TNT got on the hill at 20-13 then canned the winning bucket in the sudden death period to seal SMB’s amazing fightback.

Mr. Bono banged in eight points to lead the Beermen’s rise to their first leg win of the season worth P100,000. Wendell Comboy (six), Jeff Manday (five) and Raffy Verano (three) also played solid ball as SMB joined the Tropang Giga (Leg 1), Cavitex (Leg 2) and Meralco (Leg 3) in the winners’ circle.

Messrs. Comboy and Manday hit back-to-back two-pointers then Mr. Bono nailed a short bucket and a long bomb to get SMB on level after 10 minutes. Messrs. Comboy and Bono iced it with a jumper and an inside shot in OT.

TNT’s Almond Vosotros, Lervin Flores, Gryan Mendoza and Ray Mark Acuno fell short of their bid to become the first two-leg ruler and settled for runner-up honors worth P50,000.

Meanwhile, Meralco beat Platinum Karaoke, 19-12, to cop third place and P30,000. — Olmin Leyba

Patrick Cantlay fires 60 to vault into co-lead at Shriners

TEAM USA golfer Patrick Cantlay putts on the 16th hole during the singles match play of the Presidents Cup golf tournament at Quail Hollow Club. — PETER CASEY-USA TODAY SPORTS/REUTERS

PATRICK Cantlay fired a Saturday-best 60 to climb into a tie for the lead with Tom Kim after three rounds of the Shriners Children’s Open in Las Vegas.

Kim carded a solid 62 himself at TPC Summerlin to join Cantlay at 19-under 194 as the pair hold a three-stroke lead heading into Sunday’s final round.

Second-round leader Mito Pereira (third-round 67) and Mattew NeSmith (63) are tied for third at 16 under. South Koreans Sungjae Im (63) and Seonghyeon Kim (64) are T5, four shots off the lead.

Five players trail the leaders by five strokes, grouped in a tie for seventh.

Cantlay played a superb round, opening his round with four straight birdies en route to 11 on the day and turning in a clean card.

“I was really happy with today. I played great,” Cantlay said. “Had a bunch of looks and made most of them. … I hit good putts all day today. You can’t make every single one as much as you’d like to. I’m very happy with how I played, and I’m in a good spot going into tomorrow.”

Kim played bogey-free golf as well, recording just two birdies fewer than Cantlay. Kim birdied five of his last six holes.

“I took care of what I really needed to take care of on this golf course and just needing a good round to give myself a chance on Sunday really because I’m really happy with myself just keeping it tight,” said Kim, who added he wasn’t leaderboard-watching to see what Cantlay was doing.

“No, I just told myself let’s play my own game,” Kim said. “I accidentally took a glance at it, but I was kind of coming through a stretch of birdies, so I just told myself, ‘Well, let’s just kind of focus on what I need to do right now.’” — Reuters

Mariners rally from 7-run deficit to stun Blue Jays, clinch series

TORONTO — Adam Frazier hit a two-out RBI double in the ninth inning and the visiting Seattle Mariners overcame an 8-1 deficit Saturday to defeat the Toronto Blue Jays 10-9 and clinch their American League wild-card series.

The Mariners swept the best-of-three series despite two home runs and four RBIs by Toronto’s Teoscar Hernandez.

The Mariners tied the second-biggest comeback in postseason history. The Philadelphia A’s overcame an eight-run deficit to win Game 4 of the 1929 World Series against the Chicago Cubs, and the Boston Red Sox escaped a seven-run hole in Game 5 of the 2008 American League Championship Series against the Tampa Bay Rays.

“Heckuva win and really happy to have an opportunity to bring a playoff game back home to Seattle,” Mariners manager Scott Servais said. “It has been a long time and our fan base is certainly deserving of it.”

It was also the biggest road comeback in postseason history.

“That’s awesome,” Servais said. “Our team is the ultimate gritty team. We’ve had some guys have big years. We probably have the Rookie of the Year. We’ve got pitchers that have had great years. What Cal Raleigh has done, unbelievable.”

Seattle tied it in a four-run eighth on a two-out, three-run bloop double by J.P. Crawford as center fielder George Springer and shortstop Bo Bichette collided. Springer was taken from the field on a cart with an apparent head injury.

“He’s doing OK,” Blue Jays interim manager John Schneider said of Springer. “He’s going to be evaluated for a couple of different things. He said some nice things to his teammates just now, so we’ll know more in the next couple of days.

“Bo and George kind of both going for it. I haven’t even had a chance to look at it on video yet, but I think it was Bo’s elbow to George’s shoulder or head area. I’m not quite sure,” Schneider added.

Jordan Romano (0-1) allowed Cal Raleigh’s one-out double to set up Frazier’s two-out double.

Carlos Santana hit a three-run home run for Seattle.

Toronto starter Kevin Gausman allowed four runs in 5 2/3 innings.

Seattle left-hander Robbie Ray allowed four runs in three-plus innings.

Alejandro Kirk doubled, and Hernandez homered in the second for a 2-0 Jays lead.

Santiago Espinal doubled in the third and scored on Vladimir Guerrero Jr.’s two-out single for a 3-0 lead.

Hernandez homered on the first pitch of the home fourth.

Frazier started the fifth with a single, Seattle’s first hit of the game. He took third on Santana’s double. Jarred Kelenic hit a sacrifice fly.

Espinal singled against Paul Sewald to open the home fifth and took third on Bichette’s double. Guerrero was intentionally walked. Espinal scored on a passed ball, Kirk walked to load the bases, Hernandez was hit by a pitch to force in a run, Matt Chapman hit a sacrifice fly and Danny Jansen hit an RBI double to give the Jays an 8-1 lead.

Seattle loaded the bases with no outs in the sixth on singles by Ty France, Eugenio Suarez and Raleigh. Tim Mayza replaced Gausman with two outs. A wild pitch scored one run before Santana homered to left, slicing the lead to 8-5.

Penn Murfee replaced Matthew Festa with one out and one on in the bottom of the seventh. Hernandez stole second, took third on Chapman’s infield single to first and scored on Jansen’s RBI single.

Suarez led off the eighth with a double against Anthony Bass and scored on Raleigh’s single. Mitch Haniger singled. Romano replaced Bass and allowed Frazier’s single to load the bases for Crawford’s tying double.

Andres Munoz (1-0) pitched around a walk and a stolen base in the bottom of the eighth. George Kirby pitched around a ninth-inning walk to earn the save. — Reuters

NFL: League, players agree to enhanced concussion protocols

THE NATIONAL Football League (NFL) and its players’ association have agreed to enhanced concussion protocols after a head injury suffered by Miami Dolphins quarterback Tua Tagovailoa prompted widespread concern.

A joint statement from the two parties on Saturday said ataxia – which includes abnormal balance, motor coordination or “dysfunctional speech” — would be added as a “no-go” symptom. Players diagnosed with ataxia during a game will not be allowed to return to the field.

Tagovailoa was carried off the field last week when his head slammed into the turf as he took a sack during a game against the Cincinnati Bengals.

Fans and armchair experts alike questioned why he was allowed to play against the Bengals as four days prior he looked disoriented after hitting his head to the ground during a game against the Buffalo Bills.

Miami coach Mike McDaniel defended his decision to allow Tagovailoa to play against the Bengals, saying “several layers of medical professionals” had cleared the quarterback.

The NFLPA initiated an investigation into the incident.

“While the investigation determined that the team medical staff and unaffiliated medical professionals followed the steps of the Protocol as written, the NFL and NFLPA agree that the outcome in this case is not what was intended when the Protocols were drafted,” the joint statement read.

Miami Dolphins Tagovailoa will not travel for his team’s Sunday game against the New York Jets. — Reuters

Out of line again

Draymond Green was extremely contrite in a Saturday news conference necessitated by the altercation he had with Warriors teammate Jordan Poole during a practice session earlier in the week. Player disagreements are common — even, as head coach Steve Kerr argued, those that lead to blows. That said, any mending of fences that the longtime starter tried to do the day after — and promises to continue doing — became complicated after video of him throwing a punch that landed squarely in the jaw was made public. The suddenness and violence of the action he took then became fodder for all and sundry, placing the blue and yellow under a microscope.

Green understood the consequences of what he did, especially in the context of it going beyond Warriors confines. As he noted, “I watched the video 15 times, maybe more, because when I watched the video, I’m like, ‘yo, this looks awful.’ This looks even worse than I thought it was. It’s pathetic.” And so the “mutual decision” was for him to take a leave of absence for the foreseeable future. “I’m going to continue to stay away, as I’ve been away, and continue to do work on myself, but also just give guys space … I want to give Jordan some space, and then also take a few days and continue to work on myself.”

Under the circumstances, it’s fair to wonder if Green would have been asked to spend time away from the Warriors had the video not been leaked. Prior to TMZ releasing the footage, general manager Bob Myers noted that the four-time All-Star had already apologized to the team, Poole included, and that any penalties arising from his transgression would be dealt with in-house. “These things happen. Nobody likes it, we don’t condone it, but it happens.” That said, it’s evident that the road to recovery will not be easy. Once again, he was out of line; he had previously cost them Game Six of the 2016 National Basketball Association Finals and, perhaps, Kevin Durant. And, once again, he had to regain the trust and respect needed for everyone to move on.

Make no mistake. Green was, and is, integral to the Warriors’ championship aspirations. On the other hand, they’re in a financial crunch that compels them to ponder their future without him. He’s 32 and on the wane, with a player option after the 2022-23 season. Meanwhile, Poole is slated to be rewarded with a contract extension similar to that which fellow 2019 draft pick Tyler Herro received from the Heat. And as much as they would be willing to take on $400-million-plus payrolls, the time is coming — or, to be more precise, has already come — for them to see how they can ease the burden on their coffers.

Green insisted in his presser that contract talks had nothing to do with the incident. However, he did acknowledge that “I was in a very, very bad space mentally … As a leader of this team, I needed to have a better feel for myself and just know and understand where my wick’s end was and what could possibly push me the wrong way. Frankly, I didn’t handle that well and I failed as a leader. I failed as a man, and I failed as a leader.” What an understatement, and one that figures to complicate aims of the defending titleholders to keep the Larry O’Brien Trophy in their grasp.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and Human Resources management, corporate communications, and business development.

Marcos gets failing mark from analysts; businessmen disagree

PHILIPPINE PRESIDENT FERDINAND R. MARCOS, JR. — PHILIPPINE STAR/KRIZ JOHN ROSALES

By Kyle Aristophere T. Atienza and Revin Mikhael D. Ochave, Reporters
and Matthew Carl L. Montecillo

PHILIPPINE President Ferdinand R. Marcos, Jr. failed to lay down a program to help the poor and use his political capital to reform the government in his first 100 days, economists and political analysts said on Sunday.

“Marcos tried to portray himself as a busy, man-on-the-go president who is on top of the situation,” Leonardo A. Lanzona, who teaches economics at the Ateneo de Manila University, said in a Facebook Messenger chat. “This is all performative with no real performance to speak of.”

The economy is worse, which the government has blamed on external causes, he added.

Executive Secretary Lucas P. Bersamin did not immediately reply to a Viber message seeking comment.

“We don’t see any well-directed programs that can alleviate the situation of people most affected by the global economic recession and the aftermath of the pandemic,” Mr. Lanzona said, citing the need to boost jobs and agricultural output.

Economic recovery is at risk from spiraling costs and the battered peso, which fell to a record last week. 

He said Mr. Marcos should have given up the Agriculture post to someone who can focus on the job, he said.

“This is all for show since he does not know a thing about production and distribution,” Mr. Lanzona said. “While this seemingly busy facade might be good for the ratings, it only botched up all our chances of a quick recovery.”

“The administration only managed to function in its first 100 days,” said Jan Robert R. Go, a political science professor at the University of the Philippines. “There was really nothing much.”

People would remember the president’s first 100 days for the sugar fiasco that led to his top aide quitting as executive secretary. He also failed to provide a clear vision for the country, Mr. Go said in a Messenger chat.

“For a presidential campaign that relied heavily on imaging, the president’s team failed in that aspect. We see officials resigning or being removed from office one after another,” he said. “This is not a good sign.”

The Marcos government had also failed to show that it’s on top of the country’s problems, Mr. Go said. “We are not expecting complete solutions, but a clearer plan or agenda must be laid out. People need work to fulfill their needs. This should be the focus of this administration.”

A survey by Pulse Asia Research, Inc. on Sept. 17 to 21 showed that 42% of Filipinos disapproved of the government’s handling of inflation, a problem that remained the top concern of Filipinos.

The lack of a clear agenda during his presidential campaign has led to uncertainties on both the economic and political fronts, said Philip Arnold “Randy” P. Tuaño, dean of the Ateneo School of Government.

‘LEADERSHIP IN DISARRAY’
“The president’s failure to participate in election debates strengthened this perception,” he said in a Viber message. “The government needs to address the rising prices of food and fuel, address the gaps in pandemic response and providing employment.”

The resignation of his Cabinet officials showed that Mr. Marcos is not in control, Arjan P. Aguirre, a political science professor at the Ateneo, said in a Messenger chat. “It proves that the existence of in-fighting between forces or factions wanting to have better access to or control of important positions in the government is real.”

“What we are witnessing here is that a particular camp is getting the upper hand,” he added.

The resignation of Executive Secretary Victor D. Rodriguez, Press Secretary Trixie Cruz-Angeles and Commission on Audit Chairman Jose C. Calida “showed a national leadership in disarray,” said Terry L. Ridon, a public investment analyst and convenor of think tank InfraWatch PH.

“It reflects the political infighting among various groups within the Marcos Cabinet, which the president could not contain,” he said in Messenger chat, adding that it could affect his unity narrative. 

He added the public does not care about the infighting and are more concerned about how he solves rising prices and poverty.

George T. Barcelon, Philippine Chamber of Commerce and Industry (PCCI) president, gave the president a passing mark for approving sugar imports and choosing the “right” Cabinet members.   

“He set the direction of where he would like the country to be,” he said by telephone. “With the selection of the right Cabinet members, the business sector has been quite positive because these are people who have credentials.”

Mr. Marcos had passed policies to improve the country’s image as an investment destination, Francisco Alcuaz, Jr., executive director of the Makati Business Club, said in a Viber message.

“The main achievements in the business and economic space are amending the Build-Operate-Transfer Law implementing rules and regulations and giving business process outsourcing firms the flexibility in remote work,” he said.

De Lima safe after being taken hostage by inmate

FORMER Senator Leila M. de Lima — OFFICE OF LEILA DE LIMA

FORMER Senator Leila M. de Lima, one of ex-President Rodrigo R. Duterte’s fiercest critics, was taken hostage by one of three inmates who tried to escape jail near the Philippine capital on Sunday morning, police said.

Responding Special Action Forces shot and killed the inmates, who were suspected members of the Abu Sayyaf terrorist group, after negotiations failed, the Philippine National Police (PNP) said in a statement.

A police officer was rushed to the hospital after being stabbed during the escape attempt. Another cop on duty shot two of the culprits, while the third one entered Ms. De Lima’s cell inside the Camp Crame police headquarters in Quezon City and held her hostage.

Ms. De Lima was safe, police said. Her lawyer and spokesman, Filibon F. Tacardon, in a Viber message she was not hurt.

The PNP also said tension in the detention facility had been defused, while investigation of the incident was ongoing. Ms. De Lima was undergoing medical checkup at a nearby hospital.

“Following this morning’s incident at Camp Crame, I will be speaking to Senator De Lima to check on her condition and to ask if she wishes to be transferred to another detention center,” Philippine President Ferdinand R. Marcos, Jr. tweeted.

Human Rights Watch in a statement urged the government to release Ms. De Lima, who is on trial for alleged drug trafficking.

“De Lima has been held hostage by the Philippine government for the past five years for her views and human rights advocacy,” the global rights watchdog tweeted. “She should be released from police detention immediately.”

In 2016, Ms. De Lima led a Senate probe into vigilante-style killings in Davao when Mr. Duterte was still mayor and vice mayor of the city. She was arrested a year later after allegations of her involvement in the illegal drug trade.

Other senators also expressed concern for Ms. De Lima.

Senator Aquilino Martin “Koko” L. Pimentel III said police should come up with a detailed report on what happened and how this happened since the former senator was in a separate area away from other inmates.

“We are glad with the initial report that she is OK,” he said in a statement. “The wheels of justice in this country must move quicker.”

Senator Ana Theresia “Risa” N. Hontiveros-Baraquel called the incident “unjust, barbaric and despicable,” demanding an explanation and investigation by police and the Justice department. “We need answers.”

“How can armed detainees easily gain access to the custodial cell of Senator Leila which is deep inside the PNP national headquarters? What lapses in security must be addressed, and most of all, who is responsible for these lapses? We strongly deplore this breach of duty,” she told reporters in a Viber group message.

“I urge the PNP to increase the security arrangements around former Senator De Lima, and ensure that no similar incident will ever occur against her or other detainees,” she added.

“Now more than ever, we call for the immediate release of former Senator Leila from her unjust detention and the dropping of the trumped-up charges against her,” she said.

Former Senator Panfilo M. Lacson, Sr., a former national police chief, also sought an investigation of the hostage-taking incident.

“While we are extremely thankful that Senator De Lima is unharmed, we are alarmed that this incident can happen right inside the maximum security custodial center within the PNP national headquarters,” former Senator Francis “Kiko” N. Pangilinan said in a separate statement.

“We seek a full accounting of the incident and find out if there was negligence,” he said. “Former Senator De Lima does not belong in prison, is being unjustly detained and must be released.”

Also on Sunday, Party-list Rep. France L. Castro said asked her peers to support the passage of a resolution calling on the Justice department to withdraw the charges against the former lawmakers.

“With the recent foiled hostage-taking victimizing former Senator Leila de Lima, it is urgent that she be freed immediately or at least be granted bail,” she said in a statement. — Alyssa Nicole O. Tan, Kyle Aristophere T. Atienza and Kyanna Angela Bulan

Government told to keep promise to United Nations on human rights

PHILIPPINE STAR/ MIGUEL DE GUZMAN

By John Victor D. Ordoñez, Reporter

THE PHILIPPINES should keep its promise to the United Nations (UN) Human Rights Council to overhaul its justice system or risk losing its credibility, political analysts said at the weekend.

“There seems to be a commitment to less punitive measures and more focus on rehabilitation in the war on drugs as well as an acknowledgment of the need to improve the justice system,” Maria Ela L. Atienza, who teaches political science at the University of the Philippines, said in a Viber message. “But talk is cheap and the government should deliver on these commitments.“

Global human rights groups may find it difficult to take the Justice chief’s UN speech seriously since most see the current administration as a continuation of the Duterte government’s policies on the drug war, she added.

Justice Secretary Jesus Crispin C. Remulla told the UN council last week the government aims to “change the culture” of the local justice system, which he said is prone to delays.

The government aims to release about 5,000 inmates next year, as it tries to decongest the world’s most crowded jails, the Justice chief said in his UN statement, a copy of which was given to reporters on Oct. 5.

The state released more than 350 inmates last month including the sick and elderly, many of whom had already served their sentences.

With 215,000 prisoners nationwide, Philippine jails and prisons are overfilled more than five times their official capacity, making them the most overcrowded prison system in the world, according to the World Prison Brief.

The Justice department also plans to increase the prosecution success rate by streamlining processes between government prosecutors and law enforcement agencies.

“We are reforming our system to deliver what our people deserve — real justice in real time,” said Mr. Remulla, who represented the Philippines at the 51st regular session of the UN council in Geneva, Switzerland.

Marlon M. Villarin, a political science professor at the University of Santo Tomas, said the Justice chief’s speech to the UN clearly conveyed the government’s intention to abide by international human rights standards.

“Secretary Remulla’s stance shows the country’s solid commitment and submission to the UN Universal Declaration of Human Rights,” he said in a Viber message.

“The government’s relationship with the international community would depend on the quality or results the present administration can achieve in improving our local justice system,” he added.

South Korea FTA to unlock FDI in electric vehicle components, food processing

REUTERS

A FREE trade agreement (FTA) with South Korea is expected to generate foreign direct investment (FDI) mainly in electric vehicle components and the food industry, the Department of Trade and Industry said.

“FDI potential is between P150 billion to P200 billion in three years, particularly from the electric vehicle (EV) value chain and also in agricultural processing,” Trade Undersecretary Ceferino S. Rodolfo said on the sidelines of a Makati City event last week.

 Mr. Rodolfo said the FTA signing with South Korea is targeted for November.

 “We are done with the legal scrubbing. I will be going to Korea from Oct. 14 to 17 for a Joint Economic Cooperation session. But that also includes a meeting with my counterparts on the FTA to prepare for the signing,” Mr. Rodolfo said.

FTA negotiations between the Philippines and South Korea started in June 2019 and ended in October 2021.

Philippine products covered by the FTA include banana and pineapple. South Korean products that will enjoy free-trade privileges include vehicles and auto parts.

Under the FTA, Philippine banana exports to South Korea will be charged zero duty in five years while processed pineapple exports will be duty-free in seven years.

 “For the Philippine banana exports, (the FTA) reduces the competitive disadvantage in terms of tariff compared to countries like Vietnam. That would be enough so that the investors in banana plantations here will not shift their plantations to Vietnam,” Mr. Rodolfo said.  

“Another important thing in the Philippines-South Korea agreement would be the ecotechnology chapter where there are strong provisions on collaboration in green technology, including electric vehicles, health, and biologics,” he added. — Revin Mikhael D. Ochave 

Mining industry faces ESG, gov’t tax pressures

MINERS are under increasing pressure from the challenges of meeting their environmental, social, and governance (ESG) mandates as governments all over the world set their sights on the industry to fill gaps in their tax revenue, according to an EY Global study cited by EY Philippine affiliate SGV & Co.

“Among the top risks and opportunities, the mining sector in the Philippines is greatly impacted by geopolitical uncertainty, maintaining a license to operate due to anti-mining sentiments, and rising costs and productivity challenges,” SGV Mining and Minerals Industry Sector Leader Eleanor A. Layug said in a statement.

“On the other hand, the increasing focus on ESG, the disruption brought about by digital transformation, and the advent of new business models provide mining players the opportunity to future-proof their businesses,” she added.

“The sector needs to do more to improve health, safety and wellbeing. A balanced approach to managing both critical risks and foundational workplace safety and well-being can help companies build a holistic, robust approach,” the study added.

According to the study, global conflict and ongoing disruption are also creating new urgency for miners to rethink traditional operating and business models.

“Geopolitics has risen to number two in the ranking and global volatility is likely to be ongoing, driven by changing governments in key markets, competition between key economies, and a growing tide of resource nationalism,” according to the study.

“We see evidence that governments are trying to fill revenue gaps created through the COVID-19 pandemic with new or increased mining royalties. For example, Chile plans to introduce copper royalties, and in Australia, the Queensland state government has already increased royalties on coal. For mining and metals companies, the ability to quickly assess the impact of these changes, as well as different alliances, trade flows and governments on business decisions will be critical,” it added.

Meanwhile, the survey also found that ESG has become a priority for key stakeholders.

“Managing ESG risk is becoming more complex. Miners who get it right can get an edge on competitors in many ways — from accessing capital, to securing a license to operate, attracting talent, and mitigating climate risk.”

Mining and metals companies have also become progressively better at managing climate risk, but there are still opportunities to improve.

“Not enough miners are taking action to minimize the physical risks of climate change, which may threaten operations,” the study read.

“Many mining and metals companies have committed to highly ambitious decarbonization targets and a sharper focus on reporting emissions, but 2023 will reveal whether the sector is on the trajectory to net zero,” it added.

Mining and metals executives surveyed say that data mining and automation, as well as the introduction of an ESG platform to track metrics and reporting, will be the focus of digital investment over the next one to two years.

“We still see some miners taking a siloed approach to implementing technology. An integrated, business-led approach to digital transformation can identify more opportunities to solve some of miners’ biggest challenges, including ESG, climate risk, productivity and costs,” the study also found. — Luisa Maria Jacinta C. Jocson

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