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MRT-7 denies causing flood along Commonwealth Avenue

PHILSTAR FILE PHOTO

SAN MIGUEL CORP. (SMC) through the management of Metro Rail Transit Line 7 (MRT-7) has denied that it is responsible for Commonwealth Avenue flooding.

“Its facilities near Batasan Station on Commonwealth Avenue are not the cause of the flooding that occurred in the area, following renewed statements linking the incident in part to the ongoing project,” MRT-7 Project Management Office said in a statement on Tuesday.

This came after the Department of Transportation said that the contractors of the MRT-7 project were ordered to clear blockages along Commonwealth Avenue.

SMC, through its wholly owned unit SMC MRT-7 Corp. holds the concession to build, operate, and maintain the MRT-7.

The company said all MRT-7 structures in the area, including columns and footings, were built outside of the existing drainage lines and do not obstruct the water flow.

“These were constructed with full consideration of the drainage layout and in compliance with approved engineering plans,” it said, adding that the construction of the project was fully coordinated with the Department of Public Works and Highways.

It also added that its engineers inspected the area and pointed out that the drainage outlets were clogged with plastic waste and debris.

“This significantly reduced the system’s capacity to carry rainwater, which likely contributed to surface flooding,” it said. — Ashley Erika O. Jose

Disaster resilience bill refiled

PHILIPPINE STAR/MIGUEL DE GUZMAN

A SENATOR on Tuesday said he had refiled a bill that seeks to create a government agency for disaster preparedness and a network of food banks.

In a statement on Tuesday, Senator Jose “Jinggoy” P. Ejercito Estrada said that he had refiled the Disaster Resilience Bill that seeks to create a government agency that coordinates, enhances, and expedites operations related to disaster preparedness, response, and recovery.

He had also refiled the Disaster Food Bank and Stockpile Bill, which seeks to create local food and non-food stockpiles to ensure urgent relief and humanitarian assistance for families displaced by natural calamities and emergencies.

“Disaster resilience begins long before the typhoon hits or the ground shakes. It starts with smart planning, readiness, and rapid response capabilities,” he said. “These two proposed laws aim to address the gaps that often lead to avoidable loss of lives, hunger, and delayed recovery.”

The Philippines, which lies along the typhoon belt in the Pacific, experiences about 20 storms each year.

It also lies in the so-called Pacific Ring of Fire, a belt of volcanoes around the Pacific Ocean where most of the world’s earthquakes strike. — Adrian H. Halili

Benguet lawmaker calls for online learning contingency

La TRINIDAD, Benguet — Benguet Representative Eric Go Yap is pressing for online learning contingency amid class suspensions during typhoons and monsoon rains.

Hoping to help curve learning crisis across the country, “it is high time to develop an online learning contingency for suspended classes,” Mr. Yap said.

“We should consider adding a category to shift to online learning when in-person classes are suspended. Not always, because sometimes internet connections are affected,” he added in mixed English and Filipino.

Mr. Yap further proposed a possible shift to online learning could be one way of reducing educational crisis in the country, as some students in both private and public schools struggle to recover from lost lessons due to limited remedial programs and the absence of consistent alternatives during suspensions.

While acknowledging that implementation will be difficult, he stressed the urgency of starting the transition, which could help preserve the academic calendar, reduce backlogs, and maintain learning momentum, even amid frequent disruptions.

The Department of Education in the Cordillera Administrative Region (CAR) reported they recorded 35 class disruptions in 2024 alone, accounting for the highest number of school days lost in the country, mainly due to natural disasters and calamities.

“We are facing a learning crisis. Frequent class suspensions will not help address this. We are a disaster-prone country. Not to mention, we have a lot of national and local holidays. There are way too many disruptions,” Mr. Yap said. — Artemio A. Dumlao

P1.7-M drugs seized in PDEA-BARMM operation

COTABATO CITY — Agents of the Philippine Drug Enforcement Agency (PDEA) and policemen seized P1.7 million worth of crystal meth (shabu) from two peddlers entrapped in one of the barangays in this city on Monday.

Senior city officials and Moro traditional leaders who helped the PDEA-Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) plan the successful sting confirmed to reporters on Tuesday, that plainclothes anti-narcotics agents had seized from the two male suspects during a tradeoff at the Martinez area in Barangay Poblacion 4 in Cotabato City.

Gil Cesario P. Castro, director of the PDEA-BARMM, said on Tuesday that the two suspects are now locked in their detention facility, to be prosecuted for violation of the Comprehensive Dangerous Drugs act of 2002 using the 250 grams of shabu confiscated from them as evidence.

The suspects were immediately frisked and cuffed by PDEA-BARMM agents and policemen under Cotabato City’s police director, Col. Jibin M. Bongcayao, after selling their illegal merchandise.

Mr. Castro said the operation that led to their arrest was supported by the office of Cotabato City Mayor Bruce D. Matabalao. — John Felix M. Unson

Shares inch up ahead of Marcos-Trump meeting

BW FILE PHOTO

PHILIPPINE SHARES edged up on Tuesday as investors await updates on bilateral talks between the Philippines and the United States and on expectations of further monetary easing at home.

The benchmark Philippine Stock Exchange index (PSEi) inched up by 0.04% or 2.95 points to end at 6,355.69, while the broader all shares index rose by 0.1% or 3.76 points to 3,757.20.

“The PSEi corrected higher for the third consecutive trading day as President Ferdinand R. Marcos, Jr. is scheduled to meet US President Donald J. Trump on July 22 (US time) that could lead to a possible trade deal,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“The market also improved after the latest dovish signals from Finance Secretary Ralph G. Recto on possible 50-basis-point (bp) rate cuts for the rest of 2025…,” he added.

Mr. Marcos is in the US from July 20-22. He had a meeting with US Secretary of Defense Pete Hegseth at the Pentagon on the first day of his three-day working visit.

Mr. Marcos is also set to meet with Mr. Trump to discuss trade and security. Mr. Trump earlier announced a 20% “reciprocal” import tariff on Philippine products starting Aug. 1, higher than the initial 17% duty set in April.

Meanwhile, Mr. Recto, who sits on the central bank’s policy-setting Monetary Board, said last week that the Bangko Sentral ng Pilipinas (BSP) has room for two more 25-bp cuts this year amid subdued inflation.

Last month, the BSP delivered a second straight 25-bp cut to bring its policy rate to 5.25%. The Monetary Board has three more meetings this year.

“The PSEi remains above the 6,350 mark, holding modest gains as sentiment showed slight improvement despite lower than usual market volume,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan added in a Viber message. “Technical setups hint at renewed confidence while still cautious after last week’s dip, most likely awaiting the development of the trade discussions in Washington this week and upcoming corporate earnings.”

Majority of sectoral indices rose on Tuesday. Mining and oil climbed by 0.89% or 81.67 points to 9,199.41; property increased by 0.69% or 16.41 points to 2,391.26; financials went up by 0.64% or 14.37 points to 2,248.90; and industrials inched up by 0.11% or 10.40 points to 9,140.11.

Meanwhile, holding firms dropped by 0.61% or 33.11 points to 5,397.20 and services went down by 0.13% or 2.79 points to 2,139.35.

Value turnover decreased to P5.01 billion on Tuesday with 1.07 billion shares traded from the P5.79 billion with 1.14 billion shares exchanged on Monday.

Advancers edged out decliners, 97 versus 96, while 45 names were unchanged.

Net foreign selling went down to P14.67 million on Tuesday from P36.3 million on Monday. — Revin Mikhael D. Ochave

BPOs wary of ‘indirect’ effects of US tariffs

STOCK PHOTO | Image by DC Studio from Freepik

By Justine Irish D. Tabile, Reporter

THE IT & Business Process Association of the Philippines (IBPAP) said US tariffs may result in disruptions to global investment flows that could ultimately affect its industry.

IBPAP President and Chief Executive Officer Jonathan R. Madrid said no direct impact is expected on the information technology and business process management (IT-BPM) industry, which is also known as the Business Process Outsourcing (BPO), because it supplies services and not goods.

“(Nevertheless), we are closely monitoring the broader economic and investment impacts this may indirectly bring,” he told BusinessWorld.

US President Donald J. Trump announced a 20% tariff on the Philippines this month, higher than the 17% reciprocal tariff he initially imposed in early April.

Mr. Madrid said the government has responded to the US tariff decisions promptly, with a diplomatic push by President Ferdinand R. Marcos, Jr., who is visiting Washington for “a strategic dialogue.”

“Their efforts reflect a strong commitment to investment promotion and economic diplomacy at a critical time,” he added.

He said sustained engagement and collaboration with the US will help “ensure that the Philippine economy remains resilient and attractive to global investors, especially with US counterparts.”

Mr. Marcos and tariff negotiators are in the US to negotiate a lower rate.

Mr. Marcos was due to meet Mr. Trump on Tuesday, Washington time, becoming the first head of state from the Association of Southeast Asian Nations to meet the US President during his second term.

IBPAP said it still expects a 5% increase in industry revenue this year and between 4% and 5% workforce growth.

“For 2025, we are going to show growth. I think we will touch $40 billion in revenue as an industry and should touch 1.9 million in terms of number of workers,” Mr. Madrid said.

Biodiesel blend changes suspended amid high global prices of coco oil

An attendant fills up a vehicle at a gasoline station in Manila, Sept. 18, 2023. — PHILIPPINE STAR/EDD GUMBAN

THE Department of Energy (DoE) said it suspended the planned increase in the coco methyl ester (CME) component of biodiesel, citing the potential impact on pump prices.

In an advisory dated July 17, the DoE informed the downstream oil industry, biodiesel producers, and other stakeholders of the suspension of the CME hike in the biodiesel blend.

The increase to 4% biodiesel blend (B4) was due to be implemented on Oct. 1, going to B5 a year later.

National Biofuels Board (NBB) issued a resolution in May to suspend changes to the biodiesel blend due to “anticipated significant impact on pump prices and the potential inflationary effects on the national economy.”

Energy Undersecretary Alessandro O. Sales said last month cited the current high cost of coconut oil, a primary feedstock for CME.

Mr. Sales said that the global price of coconut oil at the start of the year was about $1,100 per metric ton. This increased to over $3,000 per metric ton at the time of the NBB decision.

“Moving forward, the NBB shall regularly assess and recommend appropriate market interventions to help stabilize the price of biodiesel and its feedstock,” the DoE said.

The DoE will issue a directive to resume the upward adjustments once the NBB gives its approval.

The Biofuels Act of 2006 requires that all liquid fuels for motors and engines contain locally sourced biofuel components.

Under the law, the NBB is tasked with monitoring the implementation of the National Biofuel Program as well as the supply and usage of biofuels and biofuel blends.

The CME blend in diesel was raised to 3% on Oct. 1, 2024 from 2% previously. The blending of biofuels was originally intended to decrease dependence on imported fuel, reduce greenhouse gas emissions, and support the biodiesel industry. — Sheldeen Joy Talavera

PAGCOR driving upside surprise in GOCC dividends, Recto says

GOVERNMENT-OWNED or -controlled corporations’ (GOCCs) dividends will be stronger than expected this year, with the gaming industry regulator largely responsible for the upside, Finance Secretary Ralph G. Recto said.

“PIGO (Philippine Inland Gaming Operations) led to an increase in dividends from PAGCOR (Philippine Amusement and Gaming Corp.), which we did not expect,” he told reporters recently.

Mr. Recto has said that GOCC dividends overall will exceed the target by “P90 billion to P110 billion.”

The Budget of Expenditures and Sources of Financing report had assumed that state-run firms will remit only P20 billion this year.

Asked to clarify whether Mr. Recto meant the final dividend tally would be P110-P130 billion, Undersecretary Ma. Luwalhati C. Dorotan-Tiuseco provided confirmation.

The Department of Finance (DoF) reported on Tuesday that GOCCs had remitted P105 billion to the Bureau of the Treasury as of July, indicating that dividends are currently approaching the low end of the projected range. 

The top source of dividends was the Land Bank of the Philippines, which had remitted P26 billion.

This was followed by the Bangko Sentral ng Pilipinas (P18.91 billion), PAGCOR (P12.68 billion), and Philippine Deposit Insurance Corp. (P10.13 billion), Power Sector Assets & Liabilities Management Corp. (P8.96 billion), the Philippine Ports Authority (P5.20 billion) and Manila International Airport Authority (P3.32 billion).

Rounding out the list of top remitters were Clark Development Corp. (P2.49 billion), the Philippine National Oil Co. (P2.43 billion) and the Bases Conversion and Development Authority (P2.20 billion) also among the top remitters.

In order to boost nontax revenue, the DoF had requested GOCCs to remit dividends equivalent to 75% of their net earnings, well above the 50% floor set by Republic Act No. 7656 or the Dividend Law.

Separately, Mr. Recto ruled out any possible sales of major government assets this year, saying that any disposals will be small.

Asked for updates on the proposed sale of the government’s stake in the Subic-Clark-Tarlac Expressway (SCTEX), Mr. Recto said: “I think that’s still being worked on” by Metro Pacific Investments Corp. and the Bases Conversion and Development Authority.

Last year, the BCDA said it was considering selling its remaining stake in the toll road to MPIC.

Mr. Recto also floated the possibility of the Social Security System or Government Service Insurance System taking over the SCTEX stake, failing which the two government pension funds could look into “other privatization assets.”

The government is set to generate P36.26 billion from the sale of the Caliraya-Botocan-Kalayaan hydroelectric complex.

For 2026, the goal for privatization proceeds has been set at around P100 billion after changes to the medium-term fiscal framework approved by the Development Budget Coordination Committee. 

MPIC is one of the three key Philippine units of Hong Kong’s 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 share in BusinessWorld through the Philippine Star Group, which it controls. — Aubrey Rose A. Inosante

Ban on e-gaming could result in job losses, attract underground operators — consultant

BW FILE PHOTO

THE proposed online gaming ban could result in job losses, the proliferation of underground gaming operations, and a decline in government revenue, a regulatory consultant said.

The current operators “implement robust (know-your customer protocols), age verification, self-exclusion tools, and real-time monitoring. You ban those, and what you get is a black-market surge,” according to Marie Antonette B. Quiogue, chief executive officer of Arden Consult, which advises technology companies on navigating Philippine regulations.

Senators Juan Miguel F. Zubiri and Christopher Lawrence T. Go have filed separate bills seeking to ban e-games.

Ms. Quiogue said in a statement that illegal and unregulated gambling operations are the “real enemy” and not licensed platforms that follow global best practices.

“The infrastructure is already in place. What we need is stronger enforcement against illegal operators, not policies that penalize the compliant,” she said.

The administration’s economic managers support stricter regulation of the industry instead of a ban.

Finance Secretary Ralph G. Recto said the government is considering raising the levy on e-gaming operators proposed that operators be required to list on the Philippine Stock Exchange.

Secretary Arsenio M. Balisacan of the Department of Economy, Planning, and Development said supported such a tax hike while floated a proposal to tax e-wallets.

A group of 14 licensed operators has warned that a ban will result in 50,000 lost jobs.

Mr. Recto has said that about 60% of the gaming market operates illegally. — Aubrey Rose A. Inosante

DA says crop damage initially estimated at P134.7 million

PHILIPPINE STAR/MICHAEL VARCAS

THE Department of Agriculture (DA) said preliminary crop damage estimates totaled P134.7 million following heavy rains generated by tropical storm Crising and the southwest monsoon.

Citing the DA’s Disaster Risk Reduction Management Operations Center, the DA said the estimate covers losses to rice, corn, cassava, high value crops, fisheries, livestock and poultry.

“Affected areas span 8,035 hectares while affected farmers and fisherfolk number 6,377,” it added.

“We are keeping a close watch to prevent significant price increases on key agricultural commodities,” particularly highland vegetables, it said.

The DA has allocated P495.4 million to provide inputs to affected farmers, on top of its quick-response funds, which can be tapped for rehabilitation, survival, and recovery loans, as well as indemnification via the Philippine Crop Insurance Corp. — Kyle Aristophere T. Atienza

PCCI backs 20 measures to ‘unlock economy’s potential’

PHILSTAR FILE PHOTO

THE Philippine Chamber of Commerce and Industry (PCCI) said it supports 20 legislative measures which it hopes will help President Ferdinand R. Marcos, Jr. “unlock the full potential of the economy.”

“The proposals target structural reforms to unlock the full potential of our economy and ensure broadly shared and sustainable growth,” PCCI President Enunina V. Mangio said in a statement on Tuesday.

“The measures align with the administration’s momentum in enhancing competitiveness, expanding economic opportunities, and driving innovation,” she added.

The business group’s endorsements cover measures promoting digital transformation and infrastructure.

“Among the top priorities is the Open Access in Data Transmission Bill (or the proposed Konektadong Pinoy Act), which seeks to expand high-speed internet access nationwide and fully leverage the Digital Transformation Roadmap and National Fiber Backbone,” it said.

“PCCI also backs the passage of a National Comprehensive Infrastructure Masterplan, providing a long-term framework for strategic and resilient infrastructure investment,” it added.

The business group sought the passage of the proposed International Maritime Competitiveness Act and amendments to the charters of the Philippine Ports Authority and the Civil Aviation Authority of the Philippines.

According to the PCCI, these measures, which will resolve conflicting mandates and enhance regulatory oversight in the shipping and aviation sectors, will help improve logistics efficiency and reduce costs.

The PCCI also hopes the President backs the passage of amendments to the Magna Carta for micro, small, and medium enterprises, which it said will help enhance access to finance, markets, and technology for small businesses.

“Agricultural and fisheries reforms are also on the agenda, including the Blue Economy Act, Corporate Farming Act, amendments to the Agri-Agra Law, ASIN Law, Warehouse Receipts Act, and the long-awaited National Land Use and Management Act,” the PCCI said.

The PCCI also sought the President’s support for the proposed Apprenticeship Training System Act, amendments to the Dual Training System Act, and the proposed National Quality Infrastructure Act.

“To enhance public service delivery and fiscal accountability, the PCCI urges the passage of the (proposed) Budget Modernization and Reform Act and Customs Amnesty Act,” it added.

The group recommends the passage of the proposed Cybersecurity Act, E-Governance Act, and Artificial Intelligence Act.

“These measures address structural bottlenecks that hinder investment, logistics, rural development, and regulatory efficiency,” Ms. Mangio said.

“We believe strong endorsement of these bills during the State of the Nation Address will help fast-track their passage and demonstrate the administration’s commitment to inclusive and future-ready economic growth,” she added. — Justine Irish D. Tabile

Document ‘leaking’ PHL stance on tariff talks rejected as fake

DTI Undersecretary Ma. Cristina A. Roque

TRADE Secretary Ma. Cristina A. Roque rejected as “fake” a document circulating on social media purportedly outlining the Philippine position on tariff negotiations with the US.

In an advisory, Ms. Roque said that the social media post claims to instruct the Philippine technical working group (TWG) attached to the tariff talks to take positions that will assure that the US achieves its market-access objectives, described as the so-called 6As — “agriculture, automotive, artificial intelligence-driven technologies, advanced manufacturing and alternative energy sectors, and assured access to Philippine critical minerals.”

Negotiations with the US are covered by confidentiality agreements, with leaks likely to undermine a country’s negotiating position. Philippine industries, including agriculture, have expressed fears that the US will strong-arm Philippine negotiators into lifting restrictions on the entry of US goods.

“I want to inform the general public that I did not issue such a document; hence, it is fake and my signature appearing therein is a forgery. I therefore condemn the malicious and irresponsible circulation of this document and the information contained therein,” Ms. Roque said.

“The sensitivity of the subject matter and the timing of its release to the scheduled engagement of President Marcos with President Trump in Washington, DC reflects the ill motive of whoever is responsible for the document,” she added.

President Ferdinand R. Marcos, Jr. is scheduled to meet US President Donald J. Trump on Tuesday (Washington time), making him the first Southeast Asian leader to meet Mr. Trump since he retook the White House in January.

The document circulating online carries the title “Message to Technical Working Group.”

“The Philippines needs to ensure US farmers, ranchers, factory workers, and business access to almost $500 billion in commercial benefits in the next four years. We are open to negotiate and make these concessions permanent,” according to the document.

It claimed the Philippines is ready to eliminate tariffs on soya, wheat meslin, wheat starch, wheat gluten, and lead-acid batteries while reducing tariff rates for crude oil and wheat seed.

According to the document, the Philippines plans to increase imports of soya, wheat, chicken leg quarters, dairy products, raw materials for the manufacture of firearms, and hardwoods used in furniture.

It also outlined plans to increase imports of liquefied natural gas and ethanol and facilitate US companies’ applications to explore for energy in the West Philippine Sea. — Justine Irish D. Tabile

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