By Justine Irish D. Tabile, Reporter

CLARITY on the provisions of the mining fiscal regime is expected to attract more investment in mineral processing, the Chamber of Mines of the Philippines (CoMP) said.

On the sidelines of the 13^th Arangkada Philippines Forum, CoMP Chairman Michael T. Toledo said investors have cited unstable regulation and the uncertain fiscal regime as behind their reluctance to invest in the Philippines.

“The first thing that they say always will be ‘The problem with mining is that your laws always change and then your fiscal regime is unclear and there seems to be no transparency or flip-flopping of policies’ … So those are the reasons why they have been very hesitant,” Mr. Toledo said.

However, he said this will be addressed once the government signs into law the proposed fiscal regime for the mining industry.

At the same event, Senate President Francis G. Escudero said Congress is hoping to pass the measure in the remaining 41 session days until June 30, 2025.

“This was passed in the Lower House months before, so now it’s pending in the Senate. And we are hoping that it will be passed, and it will be the first time that we will have in place a mining fiscal regime bill that will actually govern the industry,” Mr. Toledo said.

“With a law clearly defining and governing the rights of all those into the industry, government, the mining operators, and the other related government agencies and other stakeholders, it will attract more investment,” he added.

He said that the passage of the bill will help ensure transparency and predictability, which will allow investors to make long-term plans.

The House of Representatives approved its version of the measure in September last year, while the bill is awaiting second reading at the Senate.

Senate Bill No. 2826 aims to establish a five-tier margin-based royalty rate range of 1-5% and a five-tier windfall profit tax range of 1-10%.

Meanwhile, House Bill No. 8937 aims to charge large-scale miners 4% of their gross output and to set up a margin-based royalty range of 1.5–5% with eight tiers and a 1–10% windfall profit tax with 10 tiers.

According to Mr. Toledo, the Senate’s version of the bill incorporates input from the CoMP, the Department of Finance, the Anti-Red Tape Authority, the Department of Trade and Industry, and other stakeholders.

“The technical working group hearings were very exhaustive … because we really want this bill to be passed because if not, it might be hard to get another bill on mining,” he said.

“This is only what businessmen from overseas are waiting for before they invest billions of dollars here so they can help the industry … Mining can do many things as long as it is responsible and sustainable,” he added.

Aside from pushing for the passage of a mining fiscal regime, Mr. Toledo said that the industry is also seeking local ordinances to not go against the laws passed by the Congress.

“Why are we allowing a local ordinance issued by a local government, for example, to ban mining or ban a certain methodology of mining, like open-pit mining, when there is a law that states that it is allowed? Isn’t that a violation of the law?” he said.

“If you are a local government official, you are supposed to execute the laws that were passed by Congress, who is tasked under the Constitution to pass laws and to legislate, and the Supreme Court and the courts to interpret the law,” he added.

MASS HOUSING developer Raemulan Lands, Inc. said the national and local governments must engage in a coordinated effort to address the housing crisis.

On the sidelines of the EY Entrepreneur of the Year 2024 Philippines Awards Banquet, Raemulan Group Executive Officer Jacinto Ng, Jr. said the issue has already been declared a crisis.

“If you remember during the pandemic, COVID-19 was of course declared a national crisis, and the response of the government was to have an Interagency Task Force (IATF), and that brought everybody together,” he told BusinessWorld.

He said what is needed is more than a one-stop shop, but rather policy coordination at all levels of government and alongside private companies, developers, suppliers, and contractors.

“I don’t think it’s red tape. I think in some areas, the process needs to be simplified and coordinated. More than that, I think it’s an appreciation of the benefits of doing socialized housing and therefore, to be more proactive in promoting an environment for socialized housing,” he said.

“In our experience, families actually improve their economic status once they have a house of their own. So when their economic status improves, then theoretically, consumption and tax collection should improve in that locality also. So there will be a domino effect,” he added.

He said that benefits start as early the house construction stage, as the manufacture of building materials such as steel bars, pipes, and concrete create jobs.

“So the National Government should be able to provide support to the local government units (LGUs) as well, especially in the beginning. Because, of course, you need to establish the services first, and sometimes you need to invest in those,” he said.

“I think some LGUs are unfortunately not equipped, especially the LGUs that are far from the metropolis. So, I think that’s where collaboration between national and local governments is important,” he added.

He said demand for socialized housing is still on the rise and remains an underserved market.

“Our government in every election always highlights how many homeless families there are. During the last election, it was 6.5 million,” he said.

The study that said there was 6.5 million homeless families also stated there would be 12.5 million homeless families by 2030, he said.

“So, it’s a huge issue. If you do the math, it represents a trillion-peso industry,” 

Socialized housing not only tackles social challenges but also plays a crucial role in driving economic growth for the country, he added.

“It is of great importance because that’s millions of families that are suffering every single day by not having their own home,” he said.

“It’s a huge source of continuing poverty. It almost perpetuates poverty, especially when children are born into it,” he added.

Raemulan operates in Cavite, Laguna, Rizal, Bulacan, and Pampanga under the Pasinaya, Pagsikat, and Pagsibol brands.

He noted that costs continue to rise for social housing developments near the capital region.

“It is impossible for socialized housing to be affordable to the everyday minimum wage earner. Apart from that, there are actually restrictions against socialized housing in various municipalities in the periphery of Metro Manila,” he said.

“Some local government units cannot sustain socialized housing, and we do not know why. And so, they are not incentivizing it because I think they have some administrative or management issues,” he added.

He said that mass housing developers are having a hard time finding good locations that are not too far out from Metro Manila.

He said the company has a target to build 10,000 units per year, starting in 2024. — Justine Irish D. Tabile