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PHL to keep ‘strategic’ presence at Sabina Shoal

PHILIPPINE COAST GUARD/ONE NEWS FILE PHOTO

By Kyle Aristophere T. Atienza, Reporter

THE PHILIPPINES will go beyond ship deployment in keeping a “strategic” presence in Sabina Shoal, a maritime council said on Monday after the pullout of the country’s largest coast guard vessel from the disputed atoll.   

“The President’s directive is to maintain our presence in Escoda Shoal,” National Maritime Council spokesperson Alexander Lopez told reporters at the presidential palace in mixed English and Filipino.

“When we say presence, strategic presence, not just physical presence,” he added. “I just want to make clear that our presence is not limited to sending a single ship.”

Mr. Lopez said the pullout of the 97-meter BRP Teresa Magbanua five months after its deployment to Sabina should not be a cause for concern as the government uses other measures to monitor the South China Sea feature that he said is as big as the cities of Caloocan, Navotas, Malabon, and Manila combined.

“Even if Teresa Magbanua left, it did not diminish our presence in the area because we have other ways to monitor,” he said, citing the deployment of planes and technical surveillance capabilities.

“We are also asking for help from our allies on how to go about this technical coverage,” he added.

Mr. Lopez said the Philippine Coast Guard (PCG) had already sent a replacement for its largest ship after it left Sabina Shoal on Sept. 14.

The council also said the ship needed to undergo repairs and that some of its crew needed to address their medical needs. The repositioning would also give the ship’s crew a furlough so they could have a reunion with their loved ones, it added.

BRP Teresa Magbanua was deployed in mid-April amid reports that Beijing was dumping the atoll with dead corals to alter its elevation.

There have been collisions of Chinese and Philippine vessels since last month near Sabina, which lies 140 kilometers off the Philippine westernmost island of Palawan.

NOT LOST TO CHINA
PCG spokesman for the West Philippine Sea Jay Tristan Tarriela said separately on Monday that the pullout of the Philippine vessel did not mean that the country had lost Sabina Shoal to China.

“As far as the Philippine Coast Guard is concerned, we have not lost anything,” he said at a news conference.

“Escoda Shoal, no matter how many instances we intend to go there, we will be able to patrol and deploy our vessel,” he added.

He said despite China’s presence, Philippine vessels can still go to Sabina because it has many entry points unlike Scarborough Shoal, which has only one entrance.

Beijing has effectively controlled Scarborough, which also falls within Manila’s exclusive economic zone (EEZ) but is also claimed by several other countries, in 2012 after maintaining constant coast guard presence there, according to the Asia Maritime Transparency Initiative.

“Bajo de Masinloc only has one single entrance and that is the southeast entrance of the lagoon in Bajo de Masinloc,” he said.

“Escoda Shoal is composed of two lagoons on the west side and eastern side,” he added. “Each lagoon has different areas where you can pass through.”

China claims the South China Sea almost in its entirety including within the Philippine EEZ, rejecting an international ruling that its assertions based on a 1940s map has no legal basis.

Sabina has been a staging ground for Philippine resupply missions to Second Thomas Shoal, in which Manila grounded a Navy vessel in 1999 to serve as an outpost for Filipino troops.

Manila and Beijing came up with a resupply deal during a so-called bilateral consultation mechanism (BCM) in July following a June 17 standoff in which Chinese forces threatened Filipino troops delivering supplies to the Navy outpost, using bladed weapons. 

Mr. Lopez, speaking to Palace reporters, reiterated that the pullout of Magbanua was not a capitulation to previous Chinese demands.

“We did not withdraw, and this was not the agreement during the last BCM. People might think we gave in, but in fact, we didn’t,” he said in mixed English and Filipino.

“We stood our ground during the meeting in Beijing and our Department of Foreign Affairs stated that our presence will be maintained at the shoal, so it’s not a withdrawal.”

Mr. Tarriela said Chinese vessels had successfully blocked previous resupply missions of Philippine ships in Sabina Shoal because China already knew that BRP Teresa Magbanua was the destination.

“But right now, there is no reason for us to be blocked. We can go to Escoda Shoal with such a total area and it’s almost impossible for the Chinese government to block our intent to patrol the entire vicinity,” he said.

HIGHER PCG FUNDING
A senate leader on Monday said Congress should ensure more funding for the PCG to maintain the country’s presence in the disputed waters following the pullout of the Philippine vessel after a months-long standoff with China.

“Increasing budgetary support is essential to ensure that all deployed vessels receive adequate provisions and regular maintenance to sustain seaworthiness,” Senate President Pro-Tempore Jose “Jinggoy” P. Estrada, Jr. said in a statement.

He cited the need to provide medical and welfare support for coast guard personnel and for the government to invest in technologies that would help navigation in extreme weather.

Mr. Estrada told a forum last month that the Senate is likely to boost funding for Manila’s coast guard and the armed forces to beef up the country’s defenses amid growing tensions with Beijing.

Defense agencies will get P256.1 billion under the Budget department’s P6.352-trillion proposed national budget for next year.

The Philippine Army, Air Force, and Navy will get P204.4 billion, while P50 billion will go to modernization efforts of the Armed Forces of the Philippines, according to a summary of the Budget department’s national expenditure plan.

“By allocating the necessary budgetary resources, we can uphold the PCG’s role as a formidable force in defending our maritime territories and protecting our national interests,” Mr. Estrada said.

RULES-BASED ORDER
Also on Monday, the German government, through its envoy in Manila, affirmed its commitment to upholding a rules-based international order amid rifts in the South China Sea as two naval ships docked in Manila for the Indo-Pacific Deployment 2024 (IPD 24).

“The visit today here is a clear commitment to freedom of navigation, a clear commitment to the United Nations Convention on the Law of the Sea (UNCLOS), a clear commitment to freedom of navigation and the international rules-based order,” German Ambassador to the Philippines Andreas Michael Pfaffernoschke told reporters in a news briefing in Manila City on Monday.

“In the West Philippine Sea, Germany stands with the Philippines on the side of international law. Our message is clear: respecting UNCLOS by all parties concerned is essential for lasting peace and stability in the region. This is what the IPD stands for,” said the envoy.

International affairs lecturer at the De La Salle-College of St. Benilde School of Diplomacy and Governance Josue Raphael J. Cortez said the visit of the German ships is timely as the two countries aim to sign a defense deal.

“This is undoubtedly timely given that the Philippines and Germany are targeting to sign its defense deal prior to the end of 2024,” he told BusinessWorld in a Facebook Messenger chat on Monday.

“It is a way to signal that despite the treaty being still a draft and awaiting signatures by the two countries, Germany is committed to aiding the Philippines should China undertake something in relation to their ongoing fiasco on the disputed territories,” he added.

Mr. Pfaffernoschke said that Berlin had pledged to ensure free and secure shipping routes in its 2020 Indo-Pacific Strategy, reaffirming the promise in its 2023 German National Security Strategy.

Manila and Beijing are facing maritime conflicts in the South China Sea as the latter continues to ignore a 2016 Permanent Court of Arbitration ruling in favor of Manila.

The Chinese Embassy in Manila did not address the issue in their response to a Viber message seeking comment. — with reports from John Victor D. Ordoñez and Chloe Mari A. Hufana

Mpox cases up by 3, total at 18 — Health department

REUTERS

THE PHILIPPINES has posted three new monkeypox cases, bringing the total to 18, according to its health agency.

The three patients, all of whom were male, came from Calabarzon and Metro Manila, Health Secretary Teodoro J. Herbosa said at a news conference on Monday.

He said 13 of the 18 cases were active, while five others were already released from isolation.

“The good thing is, all the 18 cases that we have picked up as of now, have not infected anyone,” he said in Filipino.

“They don’t have an epidemiological link, which means that when we isolate them, the transmission of the disease stops.”

The Philippines is set to receive 2,500 doses of mpox vaccines in the coming months.

Pending the arrival of the vaccines, Mr. Herbosa said the disease could still be controlled in the country through “cleanliness.”

“Mpox is very easy to control. I don’t need a vaccine to control it. What we only need is good public health — the prevention, detection, and isolation of mpox cases can prevent the spread,” he said.

The Health department said in a message to reporters that the East Avenue Medical Center in Quezon City was now ready to do PCR testing for mpox.

It said other hospitals such as the Lung Center of the Philippines in Quezon City, San Lazaro Hospital in Manila City, Baguio General Hospital, Vicente Sotto Medical Center in Cebu City, Southern Philippine Medical Center in Davao City, Western Visayas Medical Center, and Bicol Medical Center were undergoing training for reactivation.

An outbreak in African countries prompted the World Health Organization (WHO) to declare a global health emergency in mid-August, and launch a $135-million response.

The Philippine Health department last month said it had already signified intent to the WHO to get access to smallpox vaccines.

The WHO said common mpox symptoms include skin rash or mucosal lesions which can last two to four weeks, accompanied by fever, headache, muscle aches, back pain, low energy, and swollen lymph nodes.

It can be transmitted through close contact with someone who has mpox, with contaminated materials, or with infected animals, it said. The virus may be passed to the fetus, or to the newborn during or after birth, during pregnancy.

DENGUE CASES UP
Also on Monday, Mr. Herbosa said dengue cases in the country had risen to 208,000, 68% higher compared to the same period last year.

The country logged a 25% increase in cases in the past three to four weeks. But the number of fatalities remained low, he said.

Regions that have experienced significant increase in cases include Central Luzon, Western Visayas, Central Visayas, and Metro Manila.

Still, Mr. Herbosa said the declaration of a nationwide dengue outbreak was not needed. The declaration should be based on the decision of local governments, he added.

“There are no national outbreaks because dengue is endemic. This means that all year round, there’s dengue in the Philippines. It’s not a new disease,” he said.

He said some LGUs were declaring an outbreak because their hospital occupancy rates might have reached critical levels. — Kyle Aristophere T. Atienza

Senate passes bill on VAT refund for tourists on second reading

Tourists are seen at the beach of Boracay island, Aklan province. — PHILIPPINE STAR/KRIZ JOHN ROSALES

THE SENATE on Monday approved on second reading a measure seeking to set up a value-added tax (VAT) refund system for tourists to encourage visitor spending.

Senate Bill No. 2415 aimed to provide nonresident tourists with VAT refunds for local purchases worth at least P3,000. The House of Representatives approved its version on third and final reading in March last year.

Under the Senate bill, tourists will be entitled to these refunds if they had purchased the goods from government-accredited stores within 60 days of seeking the VAT refund. The bill allows the refunds to be made electronically or in cash.

The measure also grants the Finance secretary the authority to adjust the 3,000-peso threshold based on inflation, administrative costs, and other market conditions, upon the recommendation of the Commissioner of Internal Revenue.

“By incentivizing tourists to spend within our borders, we will undoubtedly drive economic growth, create employment opportunities, and enhance the overall well-being of our people,” Senator Sherwin T. Gatchalian said in his sponsorship speech in September last year.

REVENUE LEAKAGES
Senate Minority Leader Aquilino Martin “Koko” D. Pimentel, however, opposed the measure, saying it could lead to revenue leakages and that the government should focus on improving the tourist experience and infrastructure instead.

“The bill lacks the assurance that it will genuinely boost the economy or that VAT refunds will be claimed solely by bona fide non-resident tourists, in short we are afraid of leakages or scams,” he said in his speech on Monday opposing the proposal.

Citing a 2018 World Bank study, he said the Philippines has lost about P539 billion in potential revenues due to VAT leakages and exemptions. He said the government would be better off spending on tourism infrastructure and easing the travel and accommodation of visitors in tourist spots.

Mr. Gatchalian earlier pushed for the creation of more medical facilities and police forces in the country’s tourist spots to complement the proposed tax refund mechanism.

The minority leader said the VAT refund mechanism would likely be very costly for the government to set up as it would entail hiring more personnel, setting up refund booths, and managing the program.

The Department of Tourism is aiming to post 7.7 million international tourist arrivals this year. As of Aug. 7, the Philippines has received 3.62 million inbound visitors, with 92% of them being foreigners, the agency said last month.

“If we cannot prevent leakage and abuse in the current system, how can we expect that this new VAT refund program won’t suffer from similar inefficiencies?” Mr. Pimentel said.

“Let us find more meaningful ways to boost our economy without compromising our tax revenues or creating new avenues for abuse.” — John Victor D. Ordoñez

Gov’t asked to fill learning losses linked to bullying, class suspensions

PHILSTAR FILE PHOTO

THE PHILIPPINE government should look to address issues, such as bullying and suspending classes for too long during extreme weather, to make up for learning loss and improve student performance, education experts told senators on Monday.

“We will not be able to keep students in school if we keep suspending classes and not make up for the suspension,” Lizamarie C. Olegario, an associate professor of education psychology at the University of the Philippines (UP), told the Senate Committee on Basic Education.

“Teachers need to be empowered in implementing education in times of emergencies.”

She said the government should consider giving financial aid to families that live in far-flung areas, especially those affected by extreme weather.

Citing a 2020 data from the World Bank, Ms. Olegario said the learning gap in the Philippines is 5.5 years, indicating how far behind Filipino students are in their academic abilities.

In a separate 2022 study, the World Bank also found that nine in 10 Filipino children cannot read and understand simple reading materials by age 10, a learning poverty rate of 91%.

The Philippines also had a learning deprivation rate of 90.4%, which is among the highest in Southeast Asia.

“While we strive to raise learning gains, there is also a need to plug holes in learning losses and there are a lot of holes that we can plug,” Philippine Institute of Development Studies senior research fellow Michael Ralph M. Abrigo told the same panel.

He said bullying, student’s school environment, and the extended suspension and closure of school operations due to them being used as evacuation centers as factors contributing to learning loss.

Ms. Olegario cited the need for schools to focus on improving their instructions in basic subjects, such as literacy, numeracy and socio-emotional literacy.

Since August last year, the Department of Education has been implementing the Matatag curriculum, which seeks to streamline learners’ education by focusing on reading, literacy, and numeracy in the first three schooling years of a student.

Filipino students were among the weakest globally in mathematics, reading and science, based on the 2022 Programme on International Student Assessment (PISA). The Philippines ranked 77th out of 81 countries, performing worse than the global average.

The country placed 63rd out of 64 countries in the PISA assessment that ranked 15-year-old students worldwide in producing and evaluating original ideas that would translate into effective solutions.

“We don’t have to change timetables or calendars, or have catch-up Fridays to do this,” Ms. Olegario said. “We need to strengthen teaching the fundamentals in all classrooms.”

Data from the Asian Development Bank showed that 21% of children from middle-income countries who are of school age by 2030 will not learn basic primary-level skills.

Students in the Philippines and Indonesia are more than a year behind in their learning because of the pandemic, McKinsey & Co. said in a report published in 2022. — John Victor D. Ordoñez

Tropical Depression to make landfall in Isabela or Aurora–PAGASA

PAGASA.DOST.GOV.PH

THE Philippine Atmospheric, Geophysical, and Astronomical Services Administration (PAGASA) said that Tropical Depression (TD) “Gener,” would make landfall over Isabela or Aurora province by Monday night or early Tuesday (Sept. 17).

“Gener will likely cross the landmass of mainland Luzon as a tropical depression, although the possibility of reaching tropical storm category or slight weakening prior to landfall is not ruled out,” PAGASA noted in a 5 p.m. report.

The state weather bureau said that Gener had intensified into a tropical depression category east of Aurora province in early-Monday.

As of 5 p.m., Gener was last seen 290 kilometers east of Tuguegarao City, Cagayan province. It was packing maximum sustained winds of 55 kilometers per hour (kph) and moving northwestward at 10 kph.

The weather agency said that the TD may likely intensify into a tropical storm over the West Philippine Sea.

Tropical Cyclone Wind Signal no. 1 has been raised over the provinces of Cagayan including Babuyan Islands, Isabela, Quirino, Nueva Vizcaya, Apayao, Kalinga, Abra, Ifugao, and Mountain Province.

Signal no. 1 was, likewise, hoisted in Benguet, Ilocos Norte, Ilocos Sur, La Union, Pangasinan, Zambales, Tarlac, Nueva Ecija, Aurora, and the northern portion of Quezon including Polillo Islands.

Areas placed under storm signals are expecting wind speeds of 36 kph to 61 kph along with intermittent rains in the next 36 hours.

PAGASA added that Gener may exit the Philippine Area of Responsibility between Sept. 17 and Sept. 18 (Wednesday).

The weather bureau had also issued a gale warning over the coastal waters of Southern Luzon, the seaboards of Visayas, and Mindanao.

“Sea travel in these waters is risky for small seacrafts, including all types of motor bancas,” PAGASA added. — Adrian H. Halili

Senate OKs college accreditation

PHILIPPINE STAR/EDD GUMBAN

THE SENATE on Monday approved on third and final reading a bill allowing senior high school and technical vocational school graduates to earn bachelor’s degrees through credited work experience in their chosen field.

Twenty-three senators unanimously voted in favor of Senate Bill No. 2568, which tasks the Commission on Higher Education to carry out the Expanded Tertiary Education Equivalency and Accreditation Program (ETEEAP), which provides an alternate path for Filipinos earn school credits for a college degree.

The program allows applicants who are at least 23 years old and have at least five years of work experience in an industry to pursue these degrees in their chosen industries.

Senator Emmanuel Joel J. Villanueva told the Senate floor that he is aiming for 3,000 applicants to finish the program every year.

“In ETEEAP, all work experience whether formal or informal will have corresponding points or ‘credits’ to obtain a bachelor’s degree or higher in a shorter period of time,” he said in Filipino after the bill’s approval.

“Every experience we have teaches us a lesson, the concept of lifelong learning, which is clearly evident in ETEEAP.” — John Victor D. Ordoñez

SC asked to nullify Comelec rule

BW FILE PHOTO

AN ELECTION lawyer on Monday asked the Supreme Court (SC) to nullify the rule that allows public officials to hold office after accepting a party-list nomination.

Romulo P. Macalintal filed the petition before the high court on Monday, arguing the rule had violated Section 4, Article IX-B of the Constitution.

The rule is stated in Commission on Elections (Comelec) Resolution No. 11045, allowing officials to be party-list nominees while holding public office.

Mr. Macalintal sought the issuance of a temporary restraining order to prevent the rule from being implemented in next year’s midterm elections.

“While it may be argued that the candidates in party-list are the party-list groups themselves, it will be the height of hypocrisy to say that these public appointive officials who are nominees of party-list will not engage in electioneering or partisan political activity,” Mr. Macalintal said in a separate statement. 

He said if the top court would not intervene, the contested Comelec rule might allow several high-ranking public officials to seek nominations from party-list groups, giving them unfair advantage over candidates who have no public seat.

“These public appointive officials will remain in office while campaigning for party-list and if they lose, they are not considered resigned from their positions. In a word, nothing to lose and everything to gain for these lucky government personnel.” — Chloe Mari A. Hufana

Marcos birthday bash slammed

PRESIDENT FERDINAND R. MARCOS, JR. — PCO.GOV.PH

A CONGRESSMAN on Monday said that President Ferdinand R. Marcos, Jr.’s birthday celebration last week was “extravagant” and insensitive as millions of ordinary Filipinos grapple with socioeconomic pressures, including stubbornly high costs of commodities.

Despite a clarification that public funds were not used for Mr. Marcos’ celebration, Deputy Minority Leader and Party-list Rep. France L. Castro said the event still paints the government in a bad light.

“This ostentatious display during President Marcos’ birthday, regardless of who footed the bill, is in extremely poor taste,” she said in a statement.

“While millions of Filipinos are grappling with economic hardships, such a lavish celebration only underscores the stark contrast between the ruling elite and the ordinary citizen,” she added. 

Mr. Marcos drew flak from the public due to the celebration of his birthday at a hotel in Pasay City featuring an English pop rock band. — Kenneth Christiane L. Basilio

P10M cannabis burned in Kalinga

CRYSTALWEED CANNABIS-UNSPLASH

BAGUIO CITY — A total of P10.2 million worth of fully grown marijuana shrubs were burned down after a two-day operation over the weekend in Barangays Dananao and Butbut Proper in Tinglayan, Kalinga.

Cordillera police director Brig. Gen. David K. Peredo said 51,000 fully grown marijuana plants were discovered in a plantation spanning 3,400 square meters.

No cultivator was caught though, Mr. Peredo said, while vowing investigators will find out who might have been behind the plantation. 

After documenting the haul, the marijuana was put on fire. — Artemio A. Dumlao

Peso at 6-month high before Fed cut

BW FILE PHOTO

THE PHILIPPINE peso appreciated to a six-month high against the dollar on Monday amid market expectations of a US Federal Reserve rate cut this week.

It closed at P55.888 a dollar, 10.7 centavos stronger than its P55.995 finish on Friday, Bankers Association of the Philippines data showed. This was the peso’s strongest close since P55.58 on March 16.

The peso opened at P55.94, which was also its weakest showing. It strengthened to as much as P55.83 against the greenback. Dollars exchanged fell to $1.2 billion from $1.497 billion on Friday.

“The peso strengthened amid persistent market views of a potential 50 basis-point policy rate cut from the US Federal Reserve this week,” a trader said in an e-mail.

The Federal Reserve will lower interest rates by 25 bps at each of the US central bank’s three remaining policy meetings in 2024, according to most economists in a Reuters poll that found only nine of 101 expected a half-percentage-point cut next week.

With inflation approaching the Fed’s 2% target and some signs of an economic slowdown, policy makers have made it clear “the time has come” to start reducing the federal fund rate, which has stayed at 5.25%-5.50% since July 2023, Reuters reported.

After the release on Friday of a mixed job report for August, interest rate futures contracts briefly priced in more than a 50% chance of a half-percentage-point cut next week, but the chances have narrowed to about one in four. Rate markets are still pricing in more than 100 basis points of cuts this year.

The peso’s rise followed the dollar’s decline on Monday, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber message.

The dollar index fell by 0.2% to 100.8 on Monday while Asian currencies rose, with the Malaysian ringgit and Korean won up by 0.8% each and leading gains, Reuters reported.

The trader expected the peso to continue strengthening on Tuesday ahead of a likely softer US retail sales report.

The trader said the peso was likely to move between P55.75 and P56 a dollar, while Mr. Ricafort expects it to trade at P55.80 to P56. — Aaron Michael C. Sy

PSEi rallies as markets expect Fed rate cut

The lobby of the Philippine Stock Exchange in Taguig City, Sept. 30, 2020. — REUTERS

PHILIPPINE shares rallied on Monday amid expectations of a US interest rate cut this week, as well as a more optimistic forecast for the local economy.

The benchmark Philippine Stock Exchange Index (PSEi) went up by 1.15% or 81.35 points to close at 7,104.20. The broader all-share index gained 0.82% or 31.37 points to 3,820.

“Optimism towards a possible rate cut by the Federal Reserve in their meeting this week drove the local bourse higher,” Japhet Louis O. Tantiangco, a senior research analyst at Philstocks Financial, Inc., said in a Viber message.

“The local currency, which exhibited strength against the dollar in today’s trading, also contributed to the market’s climb,” he added.

The Fed is expected to cut its benchmark rate for the first time in more than four years at its policy meeting on Sept. 17-18.

The peso closed at P55.888 a dollar, 10.70 centavos stronger than its P55.995 finish on Friday, based on Bankers Association of the Philippines data. This was the peso’s strongest close in almost six months.

Markets were also buoyed by the World Bank’s growth forecast for the Philippines this year, Luis A. Limlingan, head of sales at Regina Capital Development Corp., said in a Viber message.

“Philippine shares started the week positively, buoyed by the World Bank’s forecast of a 5.8% gross domestic product (GDP) growth for 2024, driven by lower interest rates boosting domestic consumption,” he said.

World Bank lead economist Gonzalo J. Varela last week said the lender is confident about the country’s economic growth. It expects the economy to grow by an average of 5.9% from this year until 2026.

All of the market’s sectoral indices closed higher. Mining and oil rose by 1.58% or 125.09 points to 8,004.81, while financials increased by 1.43% or 30.80 points to 2,183.09. The industrial index went up by 1.37% or 127.54 points to 9,429.51.

Holding firms gained 1.29% or 77.03 points to 6,021.97, while the property index added 0.64% or 18.05 points to 2,837.56. Services rose by 0.39% or 8.69 points to 2,225.41.

Value turnover dropped to P3.96 billion from P5.41 billion. Traded stocks rose to 724.3 million from 695.45 million on Friday.

Advancers beat decliners 115 to 85, while 53 stocks were unchanged. Net foreign buying fell to P158.29 million from P188.92 million. — Revin Mikhael D. Ochave

National ID registrations approaching 89 million

PHILSTAR FILE PHOTO

AROUND 89.7 million registrations have been logged for the Philippine Identification System (PhilSys) card, or the National ID, the Philippine Statistics Authority (PSA) said on Monday.

The signups constitute 97% of the government’s 90-million target for the year, Assistant National Statistician Emily R. Pagador told reporters on the sidelines of a forum.

By next year, the PSA aims to have the entire population registered, Ms. Pagador said.

While the PSA has yet to deliver 35 million physical National ID cards, those registered under PhilSys may use the digital version of the IDs in government and bank transactions.

The PSA is also working with other banks to accept the National ID for authentication. It recently began the pilot use of National ID authentication services with the Land Bank of the Philippines East Avenue branch.

“We have issued an advisory about the acceptance of the digital National ID. It has the same validity as the physical ones,” Ms. Pagador said.

Last month, the Bangko Sentral ng Pilipinas (BSP) issued a memorandum requiring all BSP-Supervised Financial Institutions to accept all forms of the National ID, including the digital version.

Entities that have integrated the National ID into their operations include Asia United Bank, GCash, GoTyme, Bank of the Philippine Islands, Home Credit Philippines, the Government Service Insurance System, the Home Development Mutual Fund or Pag-IBIG, and the Philippine Health Insurance Corp.

Ms. Pagador added that complaints regarding organizations not accepting the National ID have fallen to the single digits. They topped 100 in 2021.

The National ID has helped lower the cost and time for residents seeking to obtain a business permit by 75%, World Bank Senior Digital Development Specialist Naoto Kanehira told the forum.

Meanwhile, Republic Act No. 11055 or the Philippine Identification System Act still requires the delivery of the physical National ID cards.

“We are working on something to continue the printing of the (physical) cards,” Ms. Pagador said.

The central bank terminated its printing contract with AllCard, Inc., and the dispute has gone to arbitration. The BSP is overseeing the printing of physical ID cards.

The National ID is expected to help boost growth in the next decade by helping the vulnerable and the unbanked access key government and financial services, Information and Communications Technology Secretary Ivan John E. Uy told the forum.

“The National ID will be instrumental in driving the nation’s economic growth. It is projected to contribute significantly, up to 10%, in GDP (gross domestic product) over the next 10 to 15 years,” he said.

The PSA has partnered with the University of the Philippines and the Modular Open Source Identity Platform to launch a research and design center to realize the potential benefits of the National ID. — Beatriz Marie D. Cruz

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