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Visa review plan for Chinese visitors risks tourism revenue

By Arjay L. Balinbin
Reporter

A PROPOSAL to subject Chinese nationals to regular Philippine visa applications may lead to lower tourist arrivals and cut revenue from their travel spending here, according to the former executive vice-president of the Tourism Congress of the Philippines.

“Definitely, there will be less interest in the Philippines on the part of the Chinese,” Aileen C. Clemente, who is also president of Rajah Travel Corp., said by telephone on Friday. “Travel companies whose main market is China will be greatly affected.”

Chinese tourists in the Philippines don’t need to apply for a visa before coming here and are instead issued visas upon arrival. But Foreign Affairs Secretary Teodoro L. Locsin earlier said this must change to ensure national security.

“We need to put an end to visas upon arrival; all visas should be issued by consular offices after vetting,” he said on Twitter. “We must take extra care in outsourcing any part of the visa application process, picking only the most reputable worldwide.”

National Security Adviser Hermogenes Esperon Jr. is worried over the influx of Chinese nationals working in the Philippines, many of them illegally.

A total of 3.49 million tourists visited the Philippines in the five months to May, 9.8% higher than a year earlier, according to the Tourism department.

Korea was the country’s top source market with 788,530 arrivals, growing by 11.8%. China followed closely with 733,769 arrivals for a 30.96 percent growth.

Mr. Locsin might be serious with his proposal but it would still be President Rodrigo R. Duterte who will decide, Marlon M. Villarin, a political science professor at the University of Santo Tomas, said in a mobile phone message.

“The cost might be detrimental to us in terms of tourism revenue but it’s worth the loss for the sake of national security,” he added.

The Department of Tourism (DoT) is open to review the policy with the Foreign Affairs department and Bureau of Immigration, Tourism Secretary Bernadette Romulo-Puyat said in a mobile phone message.

“We agree that prime importance should be placed on the security and safety of our guests and locals,” she said. “The grant of visas is to ensure entry of desirable visitors.”

She declined to comment on the effect of the change in the visa application process on tourist arrivals in the Philippines and her agency’s target of 8.2 million arrivals this year.

“Visa upon arrival will encourage more Chinese tourists to come here and motivate them to spend more money in the country,” John Paolo R. Rivera, associate director of the Asian Institute of Management’s Dr. Andrew L. Tan Center for Tourism, said in a mobile phone message. The only drawback to it is foregone revenue from the regular visa application process, he added.

ECC cuts penalty on late SSS and GSIS remittances

THE Employees’ Compensation Commission (ECC) has cut by one point the monthly penalty on employers who fail to remit their workers’ pension contributions to 2%.

The changes are in keeping with the penal provisions of the law, Labor Secretary Silvestre H. Bello who heads the ECC board, said in a statement yesterday.

The new rates will cover both government workers under the Government Service Insurance System and private employees under the Social Security System, he said.

Under the Social Service Act of 2018, employers who fail to remit workers’ contributions on time must pay a penalty equivalent to 2% of the unpaid contribution a month. The GSIS Act of 1997 provides that the penalty should not be less than 2%.

“By revising the penalty for unpaid contributions and setting the penalty at a uniform rate with SSS and GSIS, the commission, with its implementing agencies, the SSS and the GSIS can better facilitate the implementation of its ECC Program,” ECC Executive Director Stella Zipagan-Banawis said in the same statement. — Charmaine A. Tadalan

Tropical storm Hanna to bring rains in Luzon, Visayas this week

TROPICAL STORM Hanna is not likely to make landfall but is expected to brings moderate to heavy rains in Luzon and the Visayas this week, according to weather bureau PAGASA. In its 5 p.m. Sunday bulletin, PAGASA said “moderate to heavy monsoon rains” will be experienced until Tuesday morning in the following areas: Metro Manila, Pangasinan, Zambales, Bataan, Pampanga, Bulacan, Rizal, Cavite, Batangas, Laguna, Mindoro provinces, northern portions of Palawan (including Calamian and Cuyo Islands), Romblon, Aklan, and Antique. Cloudy skies with rainshowers and thunderstorms are expected over the Cordillera Administrative Region, Bicol, Zamboanga Peninsula, Quezon, and the rest of Ilocos Region, Central Luzon, and the Visayas. No storm warning signal was up as of Sunday, but PAGASA said Hanna has “maintained its strength,” moving north-northwest at 15 kilometers per hour (kph) with maximum sustained winds of 65 kph near the center and gustiness of up to 80 kph. Hanna is forecasted to exit the Philippine area by Friday morning, when it will be 715 km northeast of Basco, Batanes.

25 confirmed dead as 3 boats capsize in Iloilo Strait

By Emme Rose S. Santiagudo
Correspondent

TOURISTS, TEACHERS, and children were among the 25 people confirmed dead after three boats capsized at the Iloilo Strait on Saturday afternoon.

Out of the 87 passengers, 53 survived while nine are still missing, according to Iloilo City Disaster Risk Reduction Management Office (CDRRMO) head Donna P. Magno.

“As of 1:00 p.m., we recorded 87 total passengers that were onboard the three motor bancas. Forty-seven of which boarded on MB Chi-Chi while 40 boarded MB Jenny Vince,” she said in a press conference Sunday.

Based on the situation report of the Joint Iloilo City-Guimaras Incident Command Post, the two motorized boats MB Chi-Chi and MB Keziah capsized due to strong winds as they were plying from Parola Wharf in Iloilo City to Jordan, Guimaras at around 12:15 p.m. on Saturday.

MB Chi-Chi was carrying 47 passengers, and 35 of them survived, Ms. Magno reported.

“We recorded 11 casualties while one passenger of MB Chi-Chi remains missing. MB Keziah only boarded its crew members and they were all safe,” she said.

At around 3:30 p.m. the same day, another pump boat, MB Jenny Vince, carrying 40 passengers plying from San Buenavista, Guimaras to Iloilo also capsized due to strong winds and rain.

Ms. Magno said that out of the 40 passengers, 14 were confirmed dead while eight are still missing.

Authorities retrieved 11 of the casualties from MB Jenny Vince off Dumangas town in Iloilo on Sunday morning.

One of the survivors onboard MB Jenny Vince, 36-year old Patrick M. Perales from Palawan, said the sun came out after the first incident, which is probably why trips were not cancelled.

Guimaras Governor Samuel T. Gumarin also said the crew members of MB Jenny Vince did not anticipate the student strong winds and rain.

“The motor boat captains really thought the weather is fairly good, that is why they did not anticipate that a strong wind and rain would overturn and capsize their motor boat,” he said.

Civil Defense Regional Director Jose Roberto Nuñez said the Philippine Coast Guard (PCG) is already conducting an investigation on why the motor boats were authorized to sail despite the weather and following the first incident.

Mr. Gumarin, meanwhile, said they asses existing local policies and protocols on sea travel.

“We have observed a lot of things that need to be changed, especially for our sailors and local government units, especially on the sea-worthiness of our motor boats,” he said.

As of Sunday, all trips between Iloilo City and Guimaras have been suspended.

8 neighboring towns, cities in Davao form disaster response alliance

EIGHT NEIGHBORING local government units (LGUs) in the provinces of Davao del Norte and Compostela Valley have signed a pact for joint disaster response measures, including shared trainings to strengthen rescue skills. Tagum City, capital of Davao del Norte and the lead LGUs for the alliance, will conduct the technical trainings for rescuers in the seven other LGUs and develop the operating procedures for the united response and relief operations. Part of the alliance are Panabo City, and the municipalities of Asuncion, New Corella, Braulio E. Dujali and Carmen in Davao del Norte; and the municipalities of Maco and Mawab in Compostela Valley. In a statement, Tagum City said the memorandum of understanding among the LGUs will strengthen and expand the existing practice of assisting each other during calamities.

Nationwide Round-up

Duterte to meet with Xi Jinping during China visit in time for FIBA World Cup

PRESIDENT RODRIGO R. Duterte will meet with Chinese President Xi Jinping during a visit to China later this month, where he also intends to watch the Fédération Internationale de Basketball Amateur (FIBA) Basketball World Cup 2019, according to his former special assistant and now Senator Christopher Lawrence T. Go.

Sa ngayon po ay inaayos po ang kanyang planong pagpunta sa bansang Tsina at magkakaroon siya ng meeting sa leader ng bansang Tsina na si (Preparations are underway for Mr. Duterte’s plan to go to China and he will have a meeting with Chinese) President Xi Jinping. Maybe towards the end of the month of August,” Mr. Go said in an interview with reporters aired on ANC on Saturday.

He added, “At plano rin niyang manood ng (And he also plans to watch the) FIBA. World po ito. Bihirang pagkakataon po ito na makasaksi si Pangulo (It’s a rare opportunity for the President to witness this). It’s been a long while po na hindi po tayo nag-qualify (since we last qualified). I think first in 50 years po.”

Mr. Duterte’s presence at FIBA will be in support of the Gilas Pilipinas team.

Gilas Pilipinas made it the FIBA World Cup by way of the back door, securing the best fourth-placed position in the qualifiers. The Philippine team is in Group D along with Serbia, Italy and Angola. — Arjay L. Balinbin

Senate treads carefully on priority bills

THE SENATE will proceed with caution in identifying the 18th Congress’ legislative agenda and priority bills after President Rodrigo R. Duterte vetoed last month the security of tenure bill approved by both chambers of the 17th Congress.

Senate leaders are set to meet with Mr. Duterte’s economic managers Monday in preparation for the full council meeting of the Legislative-Executive Advisory Council (LEDAC), a joint panel intended to ensure close coordination on priority measures between the Executive branch and Congress.

“It all depends on the LEDAC on Monday. We’ll have to wait on the LEDAC on Monday. Alam mo ang mahirap ngayon ingat na ingat na kami dito sa Senado dahil ‘yung ginagawa naming trabaho dito baka ma-veto ng ating Pangulo (You know, what is difficult now is that we are being very careful in the Senate, because the work that we do might be vetoed by the President,” Senate Majority Leader Juan Miguel F. Zubiri told BusinessWorld in a chance interview Wednesday evening.

“And you know, the request of all the foreign chambers, we want to, although I’m in agreement with many of those, we want to make sure that it is in line also, for example, with the Cabinet secretaries,” he added.

Finance Secretary Carlos G. Dominguez III on Thursday clarified in a mobile phone message to reporters that the meeting on Monday “is not a LEDAC, it’s preparatory meeting to a LEDAC.”

Fourteen local and foreign business groups on July 30 released two lists of legislative measures it submitted to the Office of the President and both houses of Congress. — Charmaine A. Tadalan

Local stocks up despite Trump’s tariff threat

LOCAL shares ended the week in the green, despite the United States’ fresh threats to impose more tariffs on Chinese goods.

The 30-member Philippine Stock Exchange index (PSEi) went up 31.77 points or 0.39% to close at 8,129.93 on Friday. The broader all-share index rose by 22.05 points or 0.45% to reach 4,926.56

“The index saw a stunning recovery late in the afternoon after dropping by as much as 91 points early on in the day. Initial weakness was due to movement of US markets last night from the threat of another round of tariffs from (US President Donald) Trump,” Papa Securities Corp. Sales Associate Gabriel Jose F. Perez said in an e-mail on Friday.

“Might be too soon to say that the index is out of the woods despite it being bought up at the close. Continue to monitor US markets for further developments as this could dictate regional market movement in the coming days,” he added.

According to reports, Mr. Trump said that he will impose a 10% tariff on another $300 billion worth of Chinese goods, which will take effect on September 1, after the latest bilateral talks showed little signs of development. This move will effectively tax all Chinese imports to the US, escalating the trade war between the world’s largest economies.

China has responded by saying that the US should know its responsibility and go back to resolving the trade war. Chinese Foreign Ministry Spokesperson Hua Chunying was quoted as saying the country would have to implement countermeasures if the US would push through with more tariffs.

“At home, the move was seen as less impactful and investors bought towards closing… The new import taxes, which Trump later said go could ‘well beyond’ 25%, will be imposed beginning Sept. 1 on a long list of goods expected to include smartphones, laptop computers and children’s clothing. A total of $250 billion of China-made products are already subject to a 25% import charge,” Luis A. Limlingan, head of sales of Regina Capital Development Corp., said in a text message.

Escalation of US-China trade tensions also weighed on US stocks. Dow Jones Industrial lost 280.85 points or 1.05% to 26,583.42, the S&P 500 index decreased 26.82 points or 0.90% to 2,953.56, while the Nasdaq Composite went down 64.30 points or 0.79% to 8,111.12.

As for Asian markets, Japan’s Nikkei 225 fell 453.83 points or 2.11% to 21, 087.16; Shanghai Composite shed 40.93 points or 1.41% to 2,867.84; Kospi Index slid 19.21 points or 0.95% to 1,998.13; and HongKong’s Hang Seng index also decreased 654.52 points or 2.37% to 26,911.18.

At the Philippine Stock Exchange, most subsectors were in the green except the services subsector, which lost 7.67 points or 0.47% to end at 1,613.12.

Gainers were led by mining and oil up by 129.63 points or 1.63% to 8,101.47, followed by industrials, which climbed 77.89 points or 0.69% to 11,412.13. Holding firms increased 51.87 points or 0.66% to 7,901.63, while property rose 21.76 points or 0.51% to 4,324; and financials added 2.32 points or 0.13% to 1,861.12.

Some 1.787 billion issues valued at P5.681 billion switched hands on Friday, lower than the previous session’s P6.66 billion.

Foreigner investors were buyers for two days straight with a P256.65 million inflow from Thursday’s P51.27 million. Advancers edged out losers, 129 to 61, while 52 issues were unchanged. — VMPG

PHL raises 92 billion yen from samurai bonds

By Karl Angelo N. Vidal, Reporter

THE Philippines raised ¥92 billion ($860 million or P44.3 billion) from the sale of ”samurai” bonds across four tenors, amid strong demand from investors.

According to a report from IFR, the government sold ¥30.4 billion in three-year bonds, carrying a coupon rate of 0.18%. The bonds were sold 23 basis points (bp) above the benchmark rate.

Another ¥21 billion was also raised via five-year papers with a coupon of 0.28% and 33 bps above benchmark. The state also sold ¥17.9-billion seven-year debt at a 0.43% coupon rate and a spread of 45 bps above benchmark.

Meanwhile, ¥22.7 billion was generated through a 10-year bond offer. This was priced at 0.59% and 53 bps above benchmark.

S&P Global Ratings assigned a “BBB+” long-term foreign currency rating to the yen-denominated senior unsecured notes issued by the Philippine government.

National Treasurer Rosalia V. De Leon said the government saw strong demand for the samurai bonds, prompting them to upsize the offer from the $750 million it announced previously.

“We have a strong book. We have more than $1 billion, but we decided to take only ($860) million,” Ms. De Leon told BusinessWorld in a phone interview on Friday.

“We intended to offer only $750 million, but because of the strong reception and to show appreciation to our investor for the good pricing… and we have new investors who also participated, we decided to increase the volume,” she added.

The Treasury tapped Daiwa, Mitsubishi UFJ Morgan Stanley, Mizuho, Nomura and SMBC Nikko to serve as the transaction’s lead managers.

The amount raised was smaller than the ¥154.2 billion ($1.39 billion) worth of “samurai” debt papers it issued in August 2018 in three-, five- and 10-year tenors, fetching 0.38%, 0.54% and 0.99% coupons, respectively.

The Philippines, one of Asia’s most active sovereign bond issuers, plans to borrow P1.189 trillion this year. Documents from the latest Development Budget Coordination Committee meeting showed that 73% of total borrowings will be sourced domestically, while the balance will be from foreign creditors.

This will be used to fund a budget deficit programmed at P624.4 billion, equivalent to 3.2% of gross domestic product, and support increased government spending programmed at P3.774 trillion.

The government returned to offshore market twice in May, raising €750 million ($842.33 million) in eight-year global bonds, as well as 2.5 billion renminbi ($363.3 million) in three-year “panda” bonds.

In January, the Philippines also sold $1.5 billion in 10-year offshore dollar bonds.

Ms. De Leon said the Japanese bonds will be settled on Aug. 15.

NBI to include retired generals in STL probe

JUSTICE Secretary Menardo I. Guevarra said that the National Bureau of Investigation will be investigating retired military and police generals who own small town lottery (STL) franchises after allegations were made that they had not been remitting the government’s share of the earnings.

“Definitely mako-cover rin sila kasi malawakan nga ’yung investigation na gagawin ang NBI (They definitely will be covered too because the NBI investigation will be broad),” said Mr. Guevarra in a press briefing on Friday, Aug. 2.

On Thursday, Senator Panfilo M. Lacson said that retired generals who had STL franchises from the Philippine Charity Sweepstakes Office (PCSO) have not been remitting the government’s share of their earnings.

The Justice chief said that one of the specific areas of the investigation will be the non-remittance of revenues of the gaming operations.

“I think one specific area ng investigation will be ’yung non-remittance or ’yung kakulangan sa nireremit to the government na mga revenues from gaming operations kasi dun nadadaya ’yung government (I think one specific area of the investigation will be the non-remittance or the inadequate remittance to the government of the revenues from gaming operations because the government is being cheated),” said Mr. Guevarra.

However, Mr. Guevarra said that the investigation into these retired generals does not necessarily mean they are involved in the alleged corruption at PCSO.

“Hindi naman natin sinasabing may ginagawang mali or parang napaboran ’yung mga generals (We do not mean that those generals did something wrong or were favored),” he said. “For all we know baka nasa ayos rin naman ang kanilang mga permits, kanilang mga franchises (For all we know, all their permits, their franchises are proper).”

On July 26, President Rodrigo R. Duterte ordered the closure of all gaming operations under the PCSO in a videotaped message, alleging widespread corruption. However, the President lifted the suspension on lotto operations after four days.

Meanwhile, all the other gaming operations with franchises, licenses, and permits given by the PCSO, such as STL, Keno, and Peryahan ng Bayan remain suspended pending investigation. — Vince Angelo C. Ferreras

No Martial Law in Negros until situation assessed — Lorenzana

DEFENSE SECRETARY Delfin N. Lorenzana said martial law in Negros Oriental province should not be declared until the recommendations of security officials on the ground and local government executives have been fully assessed.

This as Malacañang on Friday said that claims that the recent killings in the province were government-sponsored are “baseless” and “malicious.”

Mr. Lorenzana said the Philippine National Police (PNP), the Armed Forces of the Philippines (AFP), and local officials should first explain why the recent spate of killings would warrant such a declaration.

“Ako (As far as I am concerned) as of now, hindi ko pa nakikita na kailangan (I don’t see the need)… but we will wait for the recommendation of the PNP, AFP, and local government,” Mr. Lorenzana told the media after the turnover ceremony for the Regional Evacuation Center in Zarraga, Iloilo on Thursday.

“Pag sinabi nila na (When they say) ‘please declare martial law,’ then we might recommend, but until such time they can show us na there is a need for that, then hindi pa siguro (perhaps not yet),” he added.

Mr. Lorenzana said he believes that most of these killings could be “politically motivated.”

“[They are] more politically motivated than anything else,” he said, noting that political rivalries could still be intense in the aftermath of the May 2019 elections.

On Thursday, Presidential Spokesperson Salvador S. Panelo told reporters that President Rodrigo R. Duterte might use his “emergency powers under the Constitution to quell the lawless violence engulfing the island.”

Twenty people have been killed including four police officers, by either unidentified motorcycle-riding suspects or alleged members of the communist New People’s Army (NPA) in Negros Oriental between July 18 and July 27, said the PNP.

Meanwhile, on Friday Mr. Panelo issued a statement calling recent remarks by Bayan Muna Chairperson Neri J. Colmenares as “baseless” and “malicious.” Mr. Colmenares had blamed the PNP for the spate of deaths in Negros Oriental.

“The remarks of former senatorial candidate Mr. Colmenares, along with his blaming the police for the spate of deaths is… baseless and laced with malice,” Mr. Panelo said.

He said Malacañang agrees that justice must be given to the victims and their families.

“Such utterances of Mr. Colmenares are but a part of the propaganda of the Communist Party of the Philippines (CPP), to which obviously he subscribes [to] and parrots, to discredit the Administration and the security forces of the government, while trying to give himself the appearance of relevance after being repeatedly repudiated by the electorate in the national elections. Apparently, he has purposely turned deaf to the voice of the people,” Mr. Panelo said further.

The Catholic church has appealed for an end to the killings, with Bishop Gerardo A. Alminaza of San Carlos calling for prayer and action in a pastoral appeal issued last July 27.

“This pattern of systemic killings is alarming. Who will be next? We continue to express our collective cry, ‘End this evil madness! End these barbaric acts meant to instill fear!,’” he said in the letter. — Emme Rose S. Santiagudo and Arjay L. Balinbin

National Artist Ryan Cayabyab receives Ramon Magsaysay award

THE Ramon Magsaysay Award Foundation on Friday announced its 2019 awardees, which include National Artist for Music Raymundo “Ryan” P. Cayabyab.

“The Board of Trustees of the Ramon Magsaysay Award Foundation (RMAF) today announced that this year, five individuals from South Korea, Myanmar, India, Thailand, and the Philippines will receive Asia’s premiere prize, the Ramon Magsaysay Award,” the RMAF said in a statement.

Mr. Cayabyab is being recognized for “his compositions and performances that have defined and inspired Filipino popular music across generations,” said the RMAF.

The other awardees are Kim Jong-ki of South Korea, Ko Swe Win of Myanmar, Ravish Kumar of India, and Angkhana Neelapaijit of Thailand.

South Korea’s Kim Jong-ki is being awarded for “his quiet courage in transforming private grief into a mission to protect Korea’s youth from the scourge of bullying and violence.”

For his part, Ko Swe Win of Myanmar is being recognized for “his undaunted commitment to practice independent, ethical, and socially engaged journalism in Myanmar.”

Ravish Kumar of India receives an award for “his unfaltering commitment to a professional, ethical journalism of the highest standards.”

Thailand’s Angkhana Neelapaijit also gets recognition for “her unwavering courage in seeking justice for her husband and many other victims of violence and conflict in southern Thailand.”

The Ramon Magsaysay Award, which was established in 1957, is known as Asia’s highest honor, celebrating the memory and leadership example of the third Philippine President after whom the award is named, according to the RMAF.

This award is given every year to individuals or organizations in Asia “who manifest the same selfless service and transformative influence that ruled the life of the late and beloved Filipino leader.”

PHL, Indonesia agree to delineate overlapping EEZ boundaries

THE Philippine and Indonesian governments have agreed to implement the deal which delineates the boundary between the overlapping exclusive economic zones (EEZ) of the two countries.

The agreement, signed in May 2014, delimits the overlapping EEZs of both states. The Philippine Senate ratified the agreement on June 3.

On the sidelines of the 52nd ASEAN Foreign Ministers Meeting in Bangkok, Thailand, Foreign Affairs Secretary Teodoro L. Locsin, Jr. and his Indonesian counterpart Retno Marsudi signed the Protocols of Exchange of the instruments of ratification.

“The Agreement is expected to benefit both countries, economically and politically, by promoting more bilateral cooperation in the EEZ in order to advance the common interest of managing and preserving the resources in the EEZ and further strengthening maritime security cooperation between the two countries,” said the Department of Foreign Affairs in a statement release late Thursday, Aug. 1.

The agreement was ratified by President Rodrigo R. Duterte on February 2017 and by the Indonesian Parliament on April of the same year.

The Philippine Senate concurred the President’s ratification in June this year.

“Wide overlaps in the EEZ of the Philippines and Indonesia, which run across the Mindanao Sea and Celebes Sea, and in the southern section of the Philippine Sea in the Pacific Ocean, required the two countries to negotiate and agree on a shared boundary,” the statement read.

As parties to the 1982 United Nations Convention on the Law of the Sea, Philippines and Indonesia are entitled to EEZs of 200 nautical miles. — Vince Angelo C. Ferreras