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PHL digital economy expected to sustain growth momentum

STOCK PHOTO | Image by andrespradagarcia from Pixabay

THE Philippine digital economy is expected to maintain its growth trajectory, driven by e-commerce and the continued development of digital infrastructure, according to a report issued on Wednesday.

The e-Conomy SEA report by Google, Temasek Holdings and Bain & Co. found that the Philippine digital economy is projected to grow 20% to $31 billion in terms of gross merchandise value (GMV), making it the fastest-growing digital economy in Southeast Asia.

The report also reiterated earlier market-size forecasts for the Philippines of $80 billion and $150 billion in GMV growth by 2030.

E-commerce will be the main driver for digital economy growth, with the segment projected to post $21 billion in GMV this year, up 23%.

Transport and food are expected to deliver $3 billion worth of GMV this year; while online media and online travel were valued at $4 billion and $3 billion, respectively.

“The increase in digital payment volumes is compelling service providers to maintain competitive fees while enhancing security and service reliability,” it said.

Digital payments are projected to post 22% growth in 2024 to $125 billion in gross transaction value (GTV). By 2030, digital payments are projected at between $200 billion and $300 billion in GTV.

GTV for digital payments includes the value of credit, debit, prepaid card, account-to-account, and e-wallet transactions, according to the report.

Google, the Singapore state investment company Temasek, and consulting firm Bain added that the surge in digital payments in the Philippines is keeping fees competitive while forcing providers to enhance security and service reliability.

“As the digital payments landscape matures and adoption becomes more widespread, e-wallet providers are increasing merchant discount rates,” according to the report.

The expansion of Philippine digital infrastructure is also expected to contribute to the overall digital economy’s growth, with broadband poised to connect even in remote areas. — Ashley Erika O. Jose

Saudi Arabia tapped for hydrogen, energy efficiency collaboration

REUTERS

THE Department of Energy (DoE) is hoping to develop a roadmap with the Saudi Arabian Ministry of Energy for collaboration in the areas of petroleum derivatives and native hydrogen, among others.

The two sides will finalize the roadmap early next year, the DoE said in a statement on Wednesday.

“This cooperation, through a well-defined roadmap, underscores the Philippine commitment to energy security, economic growth, and sustainable development, as it benefits from Saudi Arabia’s extensive experience and technological expertise,” the DoE said.

Last month, the DoE announced the signing of a memorandum of understanding (MoU) with the ministry.

The MoU also covers sustainable aviation fuel, digital technology for electrical systems management, and energy efficiency.

President Ferdinand R. Marcos, Jr. participated in the first-ever Association of Southeast Asian Nations-Gulf Cooperation Council Summit in Saudi Arabia in October 2023.

“During that visit, Saudi state-owned companies expressed strong interest in investing in the Philippine energy sector,” Energy Secretary Raphael P.M. Lotilla said.

Mr. Lotilla said Saudi Energy Minister Abdulaziz bin Salman Al Saud expressed interest in the Philippines’ native or naturally occurring hydrogen resources.

“Given Saudi Arabia’s extensive expertise in the exploration and development of upstream sectors, this cooperation holds promising benefits for both countries,” he said.

Earlier this year, two prospect areas in the Zambales Ophiolite Complex, were offered for hydrogen exploration, with awards to winning bidders forthcoming.

“By partnering with Saudi Arabia, the Philippines seeks to adopt cutting-edge energy efficiency technologies and best practices that could lower energy consumption, reduce costs, and contribute to sustainability,” the DoE said. — Justine Irish D. Tabile

BCDA taps NDC for Clark urban dev’t projects

THE Bases Conversion and Development Authority (BCDA) said it signed a partnership with the National Development Co. (NDC) to handle high-impact works in New Clark City.

In a statement on Wednesday, BCDA said it signed a memorandum of understanding (MoU) with the state-owned investment firm to carry out urban development projects that will help make New Clark City a smart city.

“We thank the NDC for readily offering to share with BCDA its knowledge and expertise in financing and implementing projects, particularly in urban expansion, industrial development, and energy, among others,” BCDA President and Chief Executive Officer Joshua M. Bingcang said. 

“With more than a hundred years of experience and track record, NDC will surely become instrumental in the transformation of New Clark City into the country’s first smart, sustainable, and future-ready metropolis,” he added.

Under the MoU, NDC and BCDA will explore potential areas of collaboration, such as a feasibility study that may include a review of the current developments within BCDA properties.

NDC General Manager Antonilo DC Mauricio said the partnership hopes to replicate developments like Bonifacio Global City, which like Clark was built on former military-controlled land in Metro Manila.

“We want to leverage our strategic areas with partners who understand city-building, especially the BCDA,” he said.

The NDC pursues commercial, industrial, agricultural, and mining ventures in support of national economic development.

In August, President Ferdinand R. Marcos, Jr. proclaimed a 191,000-square-meter new special economic zone known NDC Industrial Estate, worth P343 million. 

According to the Philippine Economic Zone Authority, the industrial estate is set to welcome three companies producing soap and other detergents, renewable energy, and custom electronics. — Justine Irish D. Tabile

CREATE-ing new strategies through tax-free reorganizations

In 2021, I discussed under this column the new tax-free exchange (TFE) provisions under Section 40(C)(2) of the Tax Code as introduced in the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE), and my initial impressions on how the rules could provide businesses with additional restructuring options and resolve pre-existing TFE implementation hurdles.

Over the past three years, new tax regulations and circulars have streamlined the procedural and documentary requirements for TFEs. While this has helped guide taxpayers in certain types of TFEs, we have yet to see illustrative examples and/or guidelines on how the additional tax-free reorganizations, recapitalizations, and reincorporations in the expanded provision are to be construed.

It’s interesting to note that the new TFE provisions appear to have been modeled after the corporate reorganizations in Section 368 of the US Tax Code. This reference to the US Code is not new, given that our Tax Code has historically been patterned after US tax laws.

Pending available local precedents and interpretation guidelines, let us compare the newly introduced tax-free reorganizations under the CREATE Act with their counterpart provisions in the US Code.

SECTION 40(C)(2)(B) VS US CODE’S ‘TYPE B REORGANIZATION’
Section 40(C)(2)(b) of the Philippine Tax Code covers “the acquisition by one corporation, in exchange solely for all or a part of its voting stock, or in exchange solely for all or part of the voting stock of a corporation which is in control of the acquiring corporation, of stock of another corporation if, immediately after the acquisition, the acquiring corporation has control of such other corporation whether or not such acquiring corporation had control immediately before the acquisition.” It is derived verbatim from Section 368(a)(1)(B) of the US Code (also known as a Type B Reorganization or a stock-for-stock acquisition). Under US tax laws, a Type B Reorganization involves an acquirer purchasing controlling shares in a target corporation (TargetCo) in exchange solely for its voting stock, or the voting stock of its parent entity.

How does a Type B Reorganization in the US differ from the general “share-for-share transfer to a controlled corporation” that existed prior to the CREATE Act and remains valid to date?

A further reading of US laws and related regulations will show that:

(a) “Control” is defined as at least 80% of both the voting shares and the total number of shares;

(b) A “triangular” Type B Reorganization — where, instead of its own shares, the parent corporation’s voting stock will be exchanged for shares in the TargetCo — is also tax-free;

(c) While the language of the law is immediate control post-acquisition, US treasury regulations generally permit a “creeping” acquisition of control; and

(d) Most notably, the absence of a five-transferor limit.

While the first two items are expressly codified under our Tax Code, we have yet to see if our courts and tax authorities will also adopt the bottom two items in our domestic tax rules. Compared with the already existing share-for-share TFE, businesses may, for now, consider Section 40(C)(2)(b) if their restructuring objectives involve owning shares in a TargetCo indirectly via triangular reorganization.

SECTION 40(C)(2)(C) VS US CODE’S ‘TYPE C REORGANIZATION’
Section 40(C)(2)(c) of the Philippine Tax Code deals with “the acquisition by one corporation, in exchange solely for all or a part of its voting stock or in exchange solely for all or part of the voting stock of a corporation which is in control of the acquiring corporation, of substantially all of the properties of another corporation.” It appears to have been lifted from Section 368(a)(1)(C) of the US Code (referred to as a Type C Reorganization or a stock-for-asset acquisition). In this type, an acquiring company exchanges its voting stock, or the voting stock of its parent corporation, for substantially all of the properties of a TargetCo (which eventually liquidates).

While taken from foreign laws, this type of reorganization looks familiar as it also describes a de facto merger in the Philippines. Prior to the CREATE Act, a de facto merger was already included in the definition under Section 40(C)(6)(b) of our Tax Code. In effect, the introduction of Section 40(C)(2)(c) adds a triangular de facto merger as another type of tax-free reorganization in the Philippines.

RECAPITALIZATION UNDER SECTION 40(C)(2)(D) VS US CODE’S ‘TYPE E REORGANIZATION’
The CREATE Act defines “recapitalization” as “an agreement whereby the stock and bonds of a corporation are readjusted as to amount, income, or priority or an arrangement of all stockholders and creditors to change and increase or decrease the capitalization or debts of the corporation or both.” The same term can be found in Section 368(a)(1)(E) of the US Code. However, it was not explicitly defined in the US Code itself. The recognized definition in the US comes from 1942 jurisprudence (Helvering vs Southwest Consolidated Corp.) which states that recapitalization “implies a reshuffling of a capital structure within the framework of an existing corporation.” However, the CREATE Act appears to have derived its local definition of recapitalization from a 1944 US Court of Appeals case (United Gas Improvement Co. vs Commissioner of Internal Revenue).

Considering the varying wordings from the 1942 and 1944 US court cases, it would be good to get clarity on how recapitalization will be interpreted locally by our tax authorities to help facilitate implementation. Nevertheless, the codification of Section 40(C)(2)(d) in our Tax Code reconfirms the non-imposition of taxes on mere recapitalization transactions in the Philippines (e.g., reclassification of ordinary to preference shares, among others).

SECTION 40(C)(2)(E) — REINCORPORATION
“Reincorporation” shall mean the formation of the same corporate business with the same assets and the same stockholders surviving under a new charter. The reincorporation provision in the CREATE Act does not have an exact equivalent in the US Code. This concept appears only in the laws of some US states to govern an entity’s transfer of corporate domicile among states, while retaining and continuing its corporate identity in the new state. Since the Philippines does not operate on a federal system like the US, a tax-free reincorporation under the CREATE Act should be interpreted as it is currently worded, pending local tax guidelines.

CONCLUSION
As the additional tax-free reorganizations are still relatively new within Philippine tax legislation, legal precedents and administrative guidelines may take time to develop. Also, foreign tax regulations/jurisprudence only have persuasive, and not binding, effect in the Philippines.

Regardless, by having our Tax Code align with globally recognized tax-free reorganizations, our country is on its way to becoming a more conducive place for acquisitions, expansions and inward investments. With thoughtful implementation and continuous development of guidelines, we can look forward to a future where our tax system supports business strategies that keep up with the international tax landscape.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.

 

Bon Yannicka M. Chua is a manager at the Tax Services department of Isla Lipana & Co., the Philippine member firm of the PwC network.

+63 (2) 8845-2728

bon.yannicka.x.chua@pwc.com

Japan envoy urges ASEAN to look at security issues ‘with fresh eyes’

PHILIPPINE COAST GUARD PHOTO

Countries in the Asia-Pacific region should look at security challenges “with fresh eyes,” Japan’s ambassador to the Philippines said on Wednesday, amid growing tensions in the South China Sea. 

“As we all face the serious security challenges in this region, we also have to think creatively how we can address this matter with fresh eyes.,” Japanese Ambassador to the Philippines Endo Kazuya said at a national security forum in Makati City on Wednesday. 

Agreements among countries in the Asia-Pacific (APAC) region are enough to keep the peace in the area, Philippine Navy spokesman Sea Roy Vincent Trinidad said on the sidelines of the forum.  

A security grouping of the Association of Southeast Asian Nations (ASEAN) similar to the North Atlantic Treaty Organization (NATO), as proposed by Japan’s prime minister, is unlikely to take off given “divergent views of ASEAN countries,” he added. 

Before taking office, Japanese Prime Minister Shigeru Ishiba floated the idea of forming a NATO-like security grouping in Asia. Tokyo is not pursuing the proposal, Japanese Foreign Minister Takeshi Iwaya later said. 

“The issue has been raised during the process of the election within the party,” Mr. Endo said, referring to the prime minister’s proposal. “And so far, since he took the position of prime minister, he has not raised this matter in the formal setting.” 

China claims the South China Sea almost in its entirety, including waters that fall within the Philippines’ exclusive economic zone (EEZ). 

At the forum, Mr. Trinidad noted that other Southeast Asian neighbors have yet to voice out their support for the Philippines and adherence to international law. 

“We have seen individual ASEAN countries express statements of support for the Philippines,” he said. “We need more participation from other ASEAN countries in giving out not only support for the Philippines but speaking up also for international law.” 

Japan has been one of the Philippines’ key partners as the US, Manila’s major security ally, pivots to the Indo-Pacific region. 

While the US and other Western nations have avoided taking a position on the South China Sea dispute, they have opposed and openly called out moves that go against freedom of navigation and peaceful resolution of disputes. 

In his speech, Mr. Endo said Tokyo is committed to strengthening its trilateral ties with Manila and Washington.  

“Japan has been and will continue to be supportive of the Philippines in enhancing its maritime law enforcement capabilities,” he said. “We recognize the critical importance of the secure maritime domain for both our nations and the broader region.”  

After their trilateral summit in April, Philippine President Ferdinand R. Marcos, Jr., US President Joseph R. Biden and then Japanese Prime Minister Fumio Kishida announced a plan to establish an economic corridor on the main island of Luzon.  

The so-called Luzon Economic Corridor, which will be funded by the US with the help of Japan, seeks to focus on “high-impact” infrastructure projects such as rails and ports and strategic investments involving semiconductors, clean energy and supply chains.  

At the forum, Mr. Trinidad noted that recent joint military exercises among the Philippines, the US and its Western allies have helped deter China’s “aggressive” actions within the Philippine EEZ.  

China has been deploying navy, coast guard and maritime militia vessels to prevent the Philippines from accessing some key South China Sea features.  

Those actions had not been when the joint drills among the Philippines, US and other nations dubbed the Multilateral Maritime Cooperative Activity (MMCA) were being held, Mr. Trinidad said. “During the conduct of MMCAs, there have been no observed coercive and aggressive actions by the [People’s Liberation Army] Navy, Coast Guard or the maritime militia.”  

Such joint drills help Manila “buy time as we continue developing our capabilities,” he added.  

Mr. Trinidad, who expressed disappointment in ASEAN members for “not doing enough” to support international law, urged them not to “suffer in silence” amid China’s expansionist agenda. — Kyle Aristophere T. Atienza 

NOTE: This story was corrected to remove a quote about a NATO-like grouping unlikely to take off in ASEAN, which was misattributed to Mr. Endo. The story and title were changed to reflect the Japanese envoy’s remarks. We regret the error. 

Marcos congratulates Trump, hopeful for ‘unshakeable’ ties

REUTERS

By Kyle Aristophere T. Atienza, Reporter

THE PHILIPPINES on Wednesday called its alliance with the US “unshakeable” in the face of Asian trade terms being reset if Republican candidate Donald J. Trump, who claimed victory in the presidential race, keeps his campaign promise to increase tariffs.

Philippine President Ferdinand R. Marcos, Jr. congratulated Mr. Trump, saying his robust leadership would result in a better future.

“President Trump has won, and the American people triumphed, and I congratulate them for their victory in an exercise which showed the world the strength of American values,” he said in a statement.

“I am hopeful that this unshakeable alliance, tested in war and peace, will be a force of good that will blaze a path of prosperity and amity, in the region, and in both sides of the Pacific,” he added.

Millions of Americans voted as early as Tuesday in what is considered to be one of the most important presidential elections in decades.

Mr. Trump and Democrat Kamala Harris were almost tied in opinion polls, but results as of Wednesday afternoon showed him leading in key battlegrounds. This complicates Ms. Harris’s path to the 270 electoral votes.

Mr. Trump has pushed protectionist policies and pledged to turn the US into a manufacturing superpower. He is seeking 60% or higher tariffs on all Chinese goods and a 10% universal tariff.

Mr. Marcos said he looks forward to working with Mr. Trump on a wide range of issues that “will yield mutual benefits to two nations with deep ties, shared beliefs, common vision and a long history of working together.”

“This is a durable partnership the Philippines is fully committed to because it is founded on the ideals we share — freedom and democracy.”

Earlier in the day, US Ambassador to the Philippines MaryKay Carlson said there’s strong support for foreign military financing to the Philippines from both Democrats and Republicans.

‘STEADFAST FRIENDS’
While there are nuances that will change in every US government, “the strength of the US-Philippine relations and the importance of the Indo-Pacific to the American people will remain,” she said on the sidelines of an election-viewing event in Manila.

“I am extremely confident that US-Philippine relations will remain steadfast friends and ironclad allies as well as partners in prosperity no matter who wins in the elections of the US today.”

Ms. Carlson said looking at the foreign military financing and the support for the US-Philippine military relationship, “it is as many Republicans as Democrats who are enthusiastically supporting the US-Philippine alliance.”

“It’s the Congress that holds the purse strings in terms of financing all of our operations overseas, whether it is civilian or military,” she added.

The US under President Joseph R. Biden has reiterated that its 1950s Mutual Defense Treaty with the Philippines covers armed attacks on Philippine vessels, personnel and other assets anywhere in the South China Sea.

It was Mr. Trump, who is leading the presidential race, who promoted the concept of a “free and open Indo-Pacific,” mentioning it during the Asia-Pacific Economic Forum in the Philippines in 2017.

Mr. Biden has widely supported the concept, launching an Indo-Pacific Economic Framework (IPEF) in 2022 with a dozen initial partners. Manila joined the informal economic bloc in the same year and signed a supply-chain agreement along with other members in 2023.

The US has cited its “ironclad commitment” to the Philippines amid China’s intrusions into Manila’s exclusive economic zone in the South China Sea, which has become one of the major geopolitical hotspots in recent years.

The US was the largest market for Philippine exports and the fourth-largest source of imports last year.

Ms. Carlson said bipartisan support for the Philippines goes “across the board, not just when it comes to our military-to-military relationship.” “We are very strong partners in prosperity,” she said, citing the various bilateral and multilateral economic partnerships established in the past years.

Philippine Ambassador to the US Jose Manuel “Babe” D. Romualdez noted that amid “a lot of speculations” on what the US elections would mean for the Philippines, “I confidently say that the US-Philippine partnership will endure under any US president.”

“We will continue to strengthen and enhance not only our bilateral defense cooperation, but our economic ties as well, cognizant that the economically secure and prosperous Philippines will be an even better ally and partner for the United States,” he said.

Mr. Trump’s recent policy remarks, including his famous America First policy and an emphasis on burden sharing, have stoked concerns that Washington could adopt an inward-looking and isolationist approach.

During his presidency, Mr. Trump withdrew from various global institutions including the Paris Climate Agreement and the Trans-Pacific Partnership.

Amid uncertainties, the Philippines has been urged to cement ties with the likes of Japan and Australia, which have been active in supporting Manila on the economic and security fronts.

Australian Ambassador Hae Kyong Yu in a speech at the same forum reiterated Australia’s commitment to Southeast Asian nations including the Philippines, citing its long-term economic plan for the region.

Australia’s Foreign minister in March said Australia would invest $2.5 billion over the next four years, including $1.55 billion in new funding to enhance Australia’s Southeast Asia maritime partnerships.

Ms. Yu said the funding would complement the next phase of Australia’s bilateral civil maritime investment in the Philippines, which “will double in size to P656 million.”

“In addition, Australia has been proud to join vessels from the Philippines and other states to participate in various maritime cooperative activities in the Philippines,” she added.

DMW: More than 300 Filipino workers to arrive from war-torn Lebanon this month

SMOKE rises over Beirut’s southern suburbs after a strike, amid ongoing hostilities between Hezbollah and Israeli forces, as seen from Sin El Fil, Lebanon, Oct. 1, 2024. — REUTERS

MORE than 300 overseas Filipino workers (OFW) are expected to arrive from war-torn Lebanon this month, the Department of Migrant Workers (DMW) said on Tuesday.

The Migrant Workers Office (MWO) in Beirut is still helping more than 200 migrant Filipinos get cleared by Lebanese Immigration so they could get repatriated, DMW Undersecretary Felicitas Q. Bay told a virtual news briefing.

Fifty Filipinos will come home on Nov. 8 and 45 more on Nov. 9, plus five dependents, she said. Twenty more OFWs are schedule to arrive on Nov. 13.

Ms. Bay said there are three shelters in Beirut and nearby areas that house 166 OFWs.

Migrant Workers Secretary Hans Leo J. Cacdac said no Filipino had been harmed so far since hostilities in the country erupted last year. “We continue to monitor the situation on the ground. Our services are available through our shelters.”

The DMW chief said assistance is available to OFWs who wish to come home but need to convince their employers. Lebanese employers have mostly been cooperative, he added.

After arrival, the OFWs will receive P150,000 in cash assistance from DMW and the Overseas Workers Welfare Association (OWWA).

Returning OFWs will also get immediate medical attention from the Department of Health, livelihood assistance from the Social Welfare department and skill training vouchers from the Technical Education and Skills Development Authority.

Tensions in the region intensified after Hamas launched missile attacks on Israel on Oct. 7 last year, killing about 1,200 people and taking about 250 hostages to Gaza, according to Israeli figures.

Hezbollah, a Lebanese militant group that supports Gaza, attacked Israel to show solidarity. Alert Level 3 is in effect in Lebanon, allowing Filipinos to opt for voluntary repatriation.

More than 3,000 people have died in Lebanon since late September, Reuters reported. Israeli airstrikes and widespread detonation of homes destroyed more than 40,000 housing units in the country’s border, it said, citing Lebanon’s state news agency. — Chloe Mari A. Hufana

House bill seeks to defer BARMM polls to 2026

@BANGSAMOROGOVT

A BILL seeking to postpone the general elections of the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) by a year to 2026 has been filed at the House of Representatives.

House Bill (HB) No. 11034, principally authored by House Speaker and Leyte Rep. Ferdinand Martin G. Romualdez, proposed to defer the region’s first general elections to May 11, 2026, from May 12, 2025, to give the Bangsamoro Transition Authority (BTA) time to address “key governance, electoral, and administrative issues.”

“This postponement is not a delay in progress, but rather a necessary step to ensure that the foundations we are building for BARMM are solid and capable of supporting a sustainable autonomous government,” Mr. Romualdez said in a statement on Wednesday.

A counterpart bill has been filed by Senate President Francis G. Escudero, highlighting the “urgency” of the measure.

The BTA served as the interim regional government in BARMM after the Organic Law for the BARMM, Republic Act (RA) No. 11504, was ratified in Jan. 2019.

Last Oct. 22, the BTA adopted Resolution No. 641, requesting both houses of Congress to extend the transition period from 2025 to 2028 to prepare for a “smooth democratic transition adequately,” according to the explanatory note of the bill.

“This bill seeks additional time to allow the resolution of various emerging legal issues, promoting broader participation from political parties and enhancing the electorate’s understanding of new electoral processes,” it added.

The Supreme Court (SC) in September upheld the law’s constitutionality, but ruled Sulu is not part of the region, a decision seen having political and financial implications to BARMM. 

Mr. Romualdez noted the ruling created a “legal vacuum” in the BARMM Parliament’s composition, particularly the allocation of parliamentary district seats.

The exclusion of Sulu gives rise to a need to recalibrate, requiring more time and extensive legislative adjustments, he added.

“The legislation is to properly respond to the demand of the current circumstances,” Lanao del Sur Rep. Zia Alonto Adiong, who is among the authors, said in Filipino in a media briefing on Wednesday.

“The Supreme Court ruling excluding Sulu from the core territory of the BARMM really has a substantial impact on how we would hold the elections… for the first time.”

The BARMM government’s lawmaking power is vested in parliament, composed of 80 members, of which 40 are political party representatives and eight are sectoral representatives, according to RA 11504.

The remaining 32 seats are allotted for BARMM’s congressional districts. Sulu province was slated to have seven districts up for grabs before the SC ruling.

“You’re not just talking about seven seats, you’re actually talking about… 14 seats all in all,” Deputy Majority Leader and Party-list Rep. Jude A. Acidre said in the same press briefing. “If you reduce the district seats in the Bangsamoro Parliament by seven, there will also be an adjustment in the reserved seats for party-lists.”

Sulu province’s exclusion from BARMM also affected the elections of its government’s chief executive, he added. “So, considering that for them, the chief minister is elected from parliament and by parliament, that’s a significant matter.”

HB 11034 defers BARMM elections to May 2026, providing that subsequent elections should be held every three years thereafter.

It also grants President Ferdinand R. Marcos, Jr. authority to appoint 80 new interim members of the BTA until successors are elected successors have been elected, according to the bill.

The terms of the sitting members of the Bangsamoro parliament would be deemed expired, the measure stated.

In a separate statement, Deputy Minority Leader and Basilan Rep. Mujiv S. Hataman said there should be public consultations first before policymakers start considering proposals to postpone the regional elections.

“Therefore, I oppose any proposal to postpone the 2025 BARMM elections because we must remain committed to upholding and defending the sacred right of the people to vote and elect leaders,” he said.

On Monday, the Commission on Elections started the period of the filling for candidacy, which will run up to Nov. 9. — Kenneth Christiane L. Basilio

DoJ task force to probe killings

PHILSTAR FILE PHOTO

THE Department of Justice (DoJ) on Wednesday created a new task force to investigate extra judicial killings (EJKs) under the administration of former President Rodrigo R. Duterte.

Justice Secretary Jesus Crispin C. Remulla in a statement said Department Order (DO) 778 is tasked to build cases against suspected perpetrators of the deadly drug war of Mr. Duterte.

“Spare no one, hold accountable every personality who had a hand in the senseless killing perpetrated by abusive persons in authority during the past admin’s anti-illegal drug campaign,” he added.

The Task Force is required to submit a report not later than 60 days from the issuance of DO 778.

The government estimates that at least 6,117 people died in Mr. Duterte’s drug war between July 1, 2016 and May 31, 2022, but human rights groups say the death toll could be as high as 30,000.

The tough-talking former President admitted having ordered police officers in his hometown of Davao City when he was its mayor to goad criminals to fight back during anti-illegal drug raids so cops will have a reason to retaliate, adding that he had a hit-squad tasked to eradicate crimes. — Chloe Mari A. Hufana

Rethink P39-B aid cut, Senate told

BW FILE PHOTO

CONGRESSMEN on Wednesday asked senators to reconsider the move to cut P39 billion in funding for a Social Welfare department’s social aid program for next year, saying they should look at how indigent Filipinos benefited from it.

The Senate finance panel has recommended the deletion of the Ayuda sa Kapos Ang Kita Program’s (AKAP) funding under the Department of Social Welfare Department’s (DSWD) budget, as contained under the House-approved General Appropriations Bill, according to news reports.

The House has allotted P39 billion to the social safety net program, according to the chamber’s budget bill.

“Though we respect the recommendation of the Senate, nonetheless, we’d like to invite our friends in the Senate to just look at the results of what has been done in the past months as we have been implementing the [program],” Deputy Majority Leader and Party-list Rep. Jude A. Acidre said in a media briefing in mixed English and Filipino.

“I hope that our senators will go beyond the noise of the issue, but rather look at the program on its own merits,” he added.

AKAP is a social aid program designed to prevent “near poor” Filipinos from “spiraling down below the poverty line,” DSWD Secretary Rexlon T. Gatchalian said in a statement in February. — Kenneth Christiane L. Basilio

Unified efforts vs POGOs pushed

Police raided a suspected Philippine offshore gaming operator hub in a building in Parañaque City. — PHILIPPINE STAR/EDD GUMBAN

A SENATOR on Wednesday urged government agencies to unify their efforts against Philippine Offshore Gaming Operators (POGOs), following a “flawed” raid in the capital Manila.

The Philippine National Police, the Presidential Anti-Organized Crime Commission, the National Bureau of Investigation, Bureau of Immigration, and other law-enforcement agencies such as the Philippine gaming regulator should “craft a consolidated approach” in dealing with POGOs, Senator Sherwin T. Gatchalian said in a statement.

“The absence of unity and coordination among all concerned agencies could potentially weaken our campaign and enable POGOs to exploit gaps and continue their operations.”

The Presidential Anti-Organized Crime Commission (PAOCC) last week said it was “falsely associated” with the operation in the 40-story Century Peak Tower on Adriatico Street in Ermita, Manila as it led to the release of 69 foreigners who could not be detained legally.

PAOCC said it was neither consulted nor informed about the “flawed” raid.

“We never release any foreign nationals caught in POGOs because all our operations are always properly coordinated with the DoJ-IACAT (Department of Justice Inter-Agency Council Against Trafficking) and the Bureau of Immigration,” the agency said in a statement on Saturday.

It denied calling the hub as the “mother of all POGOs.”

“Our advocacy to eliminate all illegal activities emanating from POGOs would be more efficient and effective if we adopt and implement a unified approach,” Mr. Gatchalian said. — Kyle Aristophere T. Atienza

Labor forecasting system urged 

WORKERS make customized pet plushies at a factory in Angeles City, Pampanga, March 10, 2023. — REUTERS

A CONGRESSMAN on Wednesday called for the implementation of a modernized labor forecasting system to address technical skills gaps and job mismatches of Filipino workers.

“An LMIS (Labor Market Information System) would help us address gaps and challenges such as skills mismatch, shortages, labor force needs, among others and would be useful for our learning institutions as they craft their training curriculums,” Rizal Rep. Juan Fidel Felipe F. Nograles, who heads the House labor committee, said in a statement.

A Philippine Institute for Development Studies (PIDS) report published in May said there is a need to improve labor forecasting through an LMIS, which would serve as a “central database” to analyze labor market trends and workforce needs.

“A key aspect in every effective strategy is having accurate and comprehensive data to guide our decisions,” Mr. Nograles said in a statement. “With such an information system, we can take steps towards guaranteeing that our workforce is equipped with the proper knowledge and skills to fulfill the needs of the economy.”

He said having an LMIS would ensure that the Filipino workforce’s skill sets would be on par with “evolving industry needs.” — Kenneth Christiane L. Basilio

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