Funding still a problem for small PHL businesses

October 2, 2024 | 12:01 am

PHILIPPINE micro and small enterprises are having a hard time meeting the requirements from government and private lenders, the Philippine Chamber of Commerce and Industry (PCCI) said on Monday.

PCCI President Enunina V. Mangio said these entrepreneurs often lack the capacity to produce documents showing their capacity to pay.

“Our microenterprises don’t have financial statements,” she told a news briefing. “They don’t have the documents needed by the banks and Small Business Corp. (SB Corp.) to avail themselves of the financial programs.”

Even small corporations encounter the same problem, she pointed out. Once banks see that they have a negative or very low net income, their loan application will get rejected, she added.

Ms. Mangio said that some loan applications are being shut down without them being able to share how they plan to expand their business.

SB Corp. is an attached agency of the Department of Trade and Industry that provides financing to micro, small, and medium enterprises (MSME) in the Philippines.

On its website, it lists government-issued IDs and permits, proof of sales, proof of value of fixed assets, and financial statements filed with the Bureau of Internal Revenue showing positive income in the past years as requirements for first-time borrowers.

This presents a problem since most microenterprises are in the informal sector, PCCI Vice-President for International Affairs Jude Aguilar told the same briefing.

“We all agree that 99.5% of our businesses are MSMEs. Out of the MSMEs, 90.5% are microenterprises, 8.6% are small and 0.4% are medium-sized,” he pointed out. Of all the country’s microenterprises, more than 80% are in the informal sector, he added.

He said there is a push from the Trade department to encourage microenterprises to move to the formal sector.

“Because when they do that, they will have access to financing, and they will be able to apply for benefits for their employees, but of course, that is expensive,” he said.

“And how do you get financing when you are in the informal sector? Maybe they can, but it will have larger interest rates,” he added.

Trade Undersecretary Blesila A. Lantayona said the agency seeks to create more focused training programs to help MSMEs learn how to prepare financial statements.

“Our MSMEs should be trained also, and that is where we can have collaboration on the ground,” she said. “They have to be trained on how to prepare simple financial statements.” — Justine Irish D. Tabile

How PSEi member stocks performed — October 1, 2024

October 2, 2024 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Tuesday, October 1, 2024.

ReForm Plastic uses tech to upcycle single-use plastics

October 1, 2024 | 11:16 pm

REFORM PLASTIC, a social enterprise under Evergreen Labs Inc., is equipping local sectors with technology to upcycle single-use plastic into plastic boards for various industries.

“It is a collaborative effort to reduce the number of low-value plastics (single-use plastics) in places that we don’t want them to be,” Isidro Luis “Chino” Borromeo, operations coordinator at ReForm Plastic said in an interview.

Resource Person: Isidro Luis “Chino” Borromeo, Operations Coordinator at ReForm Plastic

Interview by Edg Adrian A. Eva
Editing by Jayson John D. Mariñas

Marcos-Duterte battle in focus as PHL prepares for midterm elections

October 1, 2024 | 9:29 pm

By Chloe Mari A. Hufana, Reporter

REGISTRATION on Tuesday opened in the Philippines for midterm elections next year, headlined by what could be a bitter proxy battle between President Ferdinand R. Marcos, Jr. and his firebrand predecessor Rodrigo R. Duterte.

Seventeen senatorial and 15 party-list hopefuls formalized their candidacies at a Commission on Elections (Comelec) satellite office inside the Manila Hotel, Comelec Chairman George Erwin M. Garcia told a news briefing.

The May 2025 elections will be a litmus test of Mr. Marcos’ popularity and a chance to consolidate power and groom a successor, which the influential Duterte family has signaled it is determined to stop after an acrimonious falling out.

Philippine presidents are limited to a single six-year term.

Though 317 seats at the House of Representatives and thousands of regional and city posts are up for grabs among 18,000 positions, the attention is on 12 spots in the 24-seat Senate, a high-profile chamber with outsized influence and typically stacked with political heavyweights.

Speculation has swirled that Mr. Duterte, 79, and two of his sons will contest the senatorial race to try to weaken Mr. Marcos. Mr. Duterte’s office and that of his daughter, Vice-President Sara Duterte-Carpio, did not immediately respond to requests for comment.

The midterms come after the collapse of what was an unstoppable alliance between the two families that delivered a landslide election win for Mr. Marcos in 2022. Ms. Carpio had been the frontrunner for president in surveys but opted instead to become Mr. Marcos’s running mate.

But their relationship has since turned hostile, owing to policy differences, the unravelling of Mr. Duterte’s pro-China foreign policy and investigations into his bloody war on drugs, plus other scandals implicating his associates.

Ms. Carpio resigned from the Cabinet and last week suffered a humiliating two-thirds slashing of her office’s budget by a House led by the President’s cousin, after she refused to attend hearings and objected to scrutiny of her spending.

Senate seats could give the Dutertes a powerful platform in the Philippines’ personality-driven politics to shore-up support, challenge Marcos legislation and initiate investigations into his government.

“All eyes will be indeed on who among them would run… or all of them,” said Ederson Tapia, professor of public administration at the University of Makati. “The Dutertes, notwithstanding the controversies hounding VP Sara, remain a formidable force.”

Mr. Marcos is bolstering his base by endorsing big local names for the Senate, including three former movie actors, the daughter of the country’s richest man, plus two of his presidential election rivals, among them global boxing icon Emmanuel “Manny” D. Pacquiao, Sr.

A notable absence from his Senate slate will be sister Maria Imelda “Imee” R. Marcos, who is seeking reelection but declined her brother’s endorsement, which she said was to avoid putting him in a difficult position.

Jean Encinas-Franco, a political science professor at the University of the Philippines, said success for Mr. Marcos in the midterms could be vital to his legacy.

“If the majority of those he endorsed win in the Senate and the House, it ensures that his legislative agenda will push through,” she said. “It ensures that he will have enough clout to anoint someone who he is going to support in the 2028 (presidential) elections.”

Senator Francis N. Tolentino, who is running under the ruling Alyansa para sa Bagong Pilipinas, was the first among seven reelectionists to file his bid.

Bayan Muna party-list, which lost its re-election bid in the previous election, is seeking a comeback with human rights lawyer Neri J. Colmenares as its first nominee, followed by ex-House Deputy Minority Leader Carlos Isagani T. Zarate and for representative Ferdinand R. Gaite.

Meanwhile, at a separate filing office in Makati, outgoing Senator Ma. Lourdes “Nancy” S. Binay-Angeles filed her certificate for Makati mayor. Her sister, outgoing Mayor Mer-len Abigail S. Binay-Campos, has said her husband was eyeing the post.

Speaker Ferdinand Martin G. Romualdez in a Facebook post said he is gunning for his sixth term in the House as Leyte’s representative. He filed his certificate in the province.

MAGIC 12
Meanwhile, senatorial candidates from the ruling coalition got 10 of 12 spots in the race, according to a survey by the Social Weather Stations.

The study, commissioned by Stratbase Group, showed that leading the race was Party-list Rep. Erwin T. Tulfo with 54% of Filipinos likely to vote for him.

He was followed by former Senate President Vicente C. Sotto III with 34%, and Senator Pilar Juliana “Pia” S. Cayetano with 31%.

Hansley A. Juliano, a political science professor at the Ateneo de Manila University, said Senate independence is unlikely to be affected in case most administration candidates win.

“Independence wise, we have seen before that the Senate, depending on their composition, can choose to be as supine to the President as the lower House or try to fight out its institutional independence,” he told BusinessWorld in a Facebook Messenger chat.

Mr. Duterte’s preference rate dipped to 25% in September from 36% in March, putting him in the 4^th-5^th place from second. Tied with him was Senator Marcos, whose support increased by 3 points to 25% in September.

In the sixth and seventh spots were Senator Ramon “Bong” B. Revilla, Jr. and ex-Senator Panfilo M. Lacson, Sr.

House Deputy Speaker and Las Piñas Rep. Camille Lydia A. Villar-Genuino climbed to the eighth spot in September with 21% from 20^th-24^th place in March.

Ms. Binay-Campos entered the “magic 12” on the ninth to 10^th spot, tied with Senator Manuel “Lito” M. Lapid at 20%.

“Dynastic names continue to dominate Senate races both due to name recall, incumbency and previous publicity record,” Mr. Juliano said. “This clientelist standard continues to persist to the detriment of newer and more professional voices, even if young people may be inclined to vote for progressive candidates.”

From the administration slate, only Mr. Tolentino (14^th) and Interior Secretary Benjamin C. Abalos, Jr. (16^th-17^th) failed to make it to the top 12.

The filing of candidacies will end on Oct. 8. — with Reuters

Philippines told to bring sea row with China to UN

October 1, 2024 | 9:28 pm

MANILA should pursue bringing its sea dispute with Beijing to the United Nations (UN) General Assembly, a Philippine senator said on Tuesday, adding that China should stop “dangerous actions” that risk the lives of Filipino fishermen and maritime authorities.

“It’s high time that the Department of Foreign Affairs (DFA) heed the Senate’s call and take a decisive step in pursuing the filing of a resolution before the United Nations General Assembly to call for the immediate cessation of all activities by China against our maritime authorities and Filipino fisherfolk,” Senate President Pro-Tempore Jose “Jinggoy” P. Estrada, Jr. said in a statement.

“Are we going to wait for something more serious to happen before we act?” he added in Filipino.

The DFA and Chinese Embassy in Manila did not immediately reply to separate WhatsApp and Viber messages seeking comment.

Beijing’s military conducted combat readiness patrols in parts of the South China Sea on Monday and Tuesday, Chinese state media reported on Tuesday.

At the weekend, Manila conducted joint patrols in the waterway with Washington, Canberra, Tokyo and Wellington to improve interoperability of their military forces.

The Philippines’ BRP Antonio Luna and BRP Emilio Jacinto, America’s USS Howard, Australia’s HMAS Sydney, Japan’s JS Sazanami and New Zealand’s HMNZS Aotearoa participated in the joint patrols, according to the US Naval Institute website.

On Sunday, the Armed Forces of the Philippines said Chinese navy vessels had kept an eye on and tailed the ships that participated in the joint patrols.

Tensions between the Philippines and China have worsened in the past year as Beijing continues to block resupply missions to Second Thomas Shoal, where Manila has a handful of troops stationed at a beached vessel.

In 2016, a United Nations-backed tribunal based in the Hague voided China’s claim to more than 80% of the South China Sea for being illegal.

The Philippines has been unable to enforce the ruling and has since filed hundreds of protests over what it calls encroachment and harassment by China’s coast guard and its vast fishing fleet.

Philippine Foreign Affairs Secretary Enrique A. Manalo said in his speech at the UN General Assembly at the weekend that Manila would pursue peaceful and diplomatic means to resolve disputes, citing the importance of upholding a rules-based international order.

He earlier said the Philippines plans on raising its dispute with China with the Association of Southeast Asian Nations (ASEAN) when it heads the agency in 2027.

The ASEAN and China have been in talks as far back as 2002 to craft a code of conduct in the South China Sea.

“By bringing this matter to the attention of the UN, we emphasize that this issue extends beyond just two countries,” Mr. Estrada said. “It is about upholding international law and the sovereignty of all nations, regardless of their size.”

Manila and Beijing on July 2 reached a “provisional arrangement” for Philippine resupply missions to Second Thomas Shoal, which the Philippines calls Ayungin.

About $3 trillion worth of trade passes through the South China Sea annually, and it is believed to be rich in oil and natural gas deposits, apart from fish stocks. — John Victor D. Ordonez

CHED eyes boosting credentials of college graduates

October 1, 2024 | 9:27 pm

By John Victor D. Ordoñez, Reporter

THE Commission on Higher Education (CHED) on Tuesday said it would roll out programs that seek to boost the credentials of Filipino college graduates and allow senior high school and technical vocational school graduates to earn degrees through work experience.

“We are also in the process of finalizing the crafting of the guidelines for micro-credentials, as well as the enhancement of the implementation of the expanded tertiary education equivalency accreditation program,” CHED Director Cherrie Melanie Ancheta-Diego told a Senate hearing.

Last month, the Senate passed a bill setting up the accreditation program, which will credit relevant work experience to school credits for a bachelor’s 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.

At the same hearing, Senator Sherwin T. Gatchalian pushed an increase to the P23.38-billion budget for free college education programs, saying it would help more students earn degrees and find quality jobs.

“Free higher education is an investment,” he said. “Free higher education will yield the country more students who will graduate with a diploma, and that will enable them to look for meaningful jobs in or outside the country.”

Senator Emmanuel Joel J. Villanueva urged CHED to do something about four in 10 college students nationwide dropping out of school last year. CHED Chairman Prospero E. de Vera said many students dropped out last year because their families were still recovering financially from the coronavirus pandemic.

About 37% of students dropped out in 2021-2022. The college dropout rate spiked to 41.03% in the following school year before settling at 29.4% in 2024.

Meanwhile, the Philippine Business for Education (PBEd) urged CHED to shut down poorly performing training programs for teachers that fail to get them licensed.

“With systemic issues plaguing the current teacher education framework, updating policies and ensuring quality standards are critical in restoring trust and ensuring that only well-prepared educators enter the profession,” PBEd Executive Director Justine B. Raagas said in a statement.

More than half of teacher education institutions in the country performed below the national average in the board licensure exams for professional teachers between 2010 and 2022, she said, citing a PBEd study.

Maria Ella Calaor-Oplas, an economics professor who specializes in human capital development research at De La Salle University, said the government should lighten teacher workloads and lessen the number of students per teacher.

“Teachers are less effective in delivering their lessons if there are too many students since this is physically and mentally draining,” she said in a Facebook Messenger chat.

The government should also provide more subsidies and incentives for research papers to encourage teachers to publish more academic work, Ms. Oplas said.

The Department of Education earlier said it is looking at hiring about 26,000 teachers next year to close the gap in the country’s shortage of 46,000 educators to serve 43,000 schools nationwide.

The agency’s proposed P793.177-billion budget next year has allotted P3.43 billion for nonteaching positions to ease the administrative load for teachers.

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

“Teachers play a pivotal role in developing the foundational skills of our learners,” Ms. Raagas said. “Therefore, we must continuously update our strategies to ensure we recruit and train only the best educators for our students.”

Fratmen in Castillo hazing case convicted

October 1, 2024 | 9:26 pm

A MANILA court convicted 10 fraternity members guilty of violating the Anti-Hazing Act in connection with the September 2017 hazing of University of Sto. Tomas (UST) law freshman Horacio Tomas “Atio” T. Castillo III that led to his death.

The Manila Regional Trial Court Branch 11 on Tuesday said ten members of the Aegis Juris fraternity were guilty beyond reasonable doubt for the death of Mr. Castillo. They were sentenced to reclusion perpetua.

The 1995 hazing law provided that a penalty of up to 40 years imprisonment will be imposed on those who actually participated on the hazing or other forms of initiation rites that lead to death, rape, sodomy, or mutilation.

Acting Presiding Judge Shirley L. Magsipoc-Pagalilauan also ordered the fraternity members to pay over P680,000 in damages, which covers the actual expenses for the death and burial of Mr. Castillo, civil indemnity, moral damages, and exemplary damages.

“The untimely death of Atio caused pain, agony, anxiety, suffering, and mental anguish to his heirs because it deprived them of his company, love, support, and companionship,” the ruling explained in demanding moral damages.

The 22-year-old freshman law student died due to hazing injuries after he was punched and paddled for four hours as part of the fraternity’s initiation rites. He was declared dead on arrival at the Chinese General Hospital on Sept. 17. His death paved the way for the enactment of the 2018 anti-hazing law.

UST law school dean and Aegis Juris alumnus Nilo T. Divina, who previously faced a lawsuit from Mr. Castillo’s parents, said he “acknowledges the court’s decision.”

“It underscores the importance of the rule of law and our trust in due process and the legal system. I continue to pray for all parties concerned,” he told BusinessWorld in a Viber message on Tuesday, noting his sympathies for the parents of Mr. Castillo.

Mr. Divina, however, stood firm that the University and the Faculty of Civil Law did not fail to protect Mr. Castillo.

“The university and the faculty have always implemented and upheld policies that promote the safety and welfare of all students. Unfortunately, no institution is spared from the actions of individuals who choose to disregard these measures,” he said.

“We remain committed to ensuring a safe environment and continuously improve our efforts to prevent a repetition of such tragedy.”

This followed the statement of Mr. Castillo’s parents, calling for accountability from UST, as they spoke to members of the media at Manila City Hall.

“I would like to say that I am holding UST responsible for the death of our son. It has been proven that Aegis Juris has been practicing hazing and it is time to check your policies and laws in the school,” his mother, Carmina, said.

“I would like to reiterate that the school, the university, the civil law department, the dean himself failed to protect our son,” she added. “They should have prevented the hazing, the crime of hazing from happening.” In the same briefing, Mr. Castillo’s father said “heads should roll” in the university. — Chloe Mari A. Hufana

NNIC defends NAIA parking rates

October 1, 2024 | 9:25 pm

NEW NAIA Infrastructure Corp. (NNIC), the operator of Ninoy Aquino International Airport (NAIA) said the hike in parking fees is part of its overall plan to help improve airport flow.

“[This order] is the result of a comprehensive review of fees for various regulated airport services,” NNIC said in a statement on Tuesday.

The previous parking fees unintentionally invite the misuse of the airport’s limited parking spaces, NNIC said, adding that this created a parking shortage for passengers which resulted in congestion.

“Many individuals, including those from nearby establishments and with no airport-related business, were taking advantage of the low rates for overnight or long-term parking,” NNIC said.

The NAIA operator said the newly implemented higher parking fees were meant to prioritize passengers as it is “designed” to discourage nontravelers from using airport facilities for long-term parking.

“By discouraging long-term and overnight parking, the new rates will reduce the number of vehicles circling the airport to search for spaces, easing traffic flow and improving the overall airport experience,” NNIC said.

In an administrative order effective Oct. 1, NNIC said the standard parking fees for cars will increase by 25% to P50 from P40 for the first two hours; while it will also impose P25 charge for succeeding hours or a fraction thereof.

Standard overnight parking fees for cars also increased fourfold to P1,200 from the previous P300, according to NNIC. For motorcycles, NNIC said it will impose P480 parking fees for 24-hour stay; and P2,400 for buses.

“The goal is to optimize parking for our passengers. While the previous rates may have been convenient for some, they created significant disadvantages for travelers. We believe these changes will create a more efficient and passenger-friendly airport experience,” NNIC said.

NNIC, led by San Miguel Corp., took over the operations and maintenance of NAIA on Sept. 14, outlining modernization efforts that include road improvements, terminal expansion, and new parking facilities to improve passenger experience and airport capacity.

“NNIC plans to increase parking capacity by building new facilities, starting with Terminal 3, which currently accommodates 65,000 to 68,000 passengers daily,” it said. — Ashley Erika O. Jose

PhilHealth can afford premium cuts

October 1, 2024 | 9:25 pm

SENATE President Francis G. Escudero on Tuesday said the Philippine Health Insurance Corp. (PhilHealth) can afford to bring down its mandatory contribution rates as its reserve fund has reached nearly P500 billion and its yearly subsidies, which he said should be used lower the premium rates and for more medical services.

“For me, it is better to use this fund to help our countrymen through additional medical services and to lower the premiums they have to pay,” he said in a statement in Filipino.

“There is more or less P500 billion that they can use to absorb to pay for these premiums.”

The Senate president noted that government provides a yearly subsidy of about P70 billion to PhilHealth to carry out its National Health Insurance Program, which covers the premiums of indirect contributors, poor Filipinos and senior citizens.

In August, the Senate passed on final reading a bill that seeks to cut PhilHealth premiums to 3.25% next year from 5% this year under the Universal Healthcare Act.

The measure, if signed into law, would set PhilHealth premium contribution at 3.25% this year for those with a monthly income of P10,000 to 50,000, with incremental increases of 0.25% each year

Senator Joseph Victor “JV” G. Ejercito, who sponsored Senate Bill No. 2620, initially sought a 4% premium rate this year but senators decided to set it at 3.25% since it would be difficult to refund payments made by PhilHealth members since January.

The agency started hiking its monthly contribution rate in 2019 so that it can sustain the benefits given to its members. The contribution rates this year will stay at 5% from 2.75% five years ago.

PhilHealth spent P75.8 billion for its benefit payouts last year, almost half of the amount paid by state insurer in 2022 at P143 billion and P140 billion in 2021, PhilHealth Executive Vice-President Eli Dino D. Santos told congressmen in May. — John Victor D. Ordoñez

Corruption tops Filipinos’ concerns

October 1, 2024 | 9:24 pm

money-anti corruption — JESUS MONROY LAZCANO-UNSPLASH

MORE Filipinos now see corruption as the top pressing issue the government should urgently act on, overtaking economic concerns such as inflation and poverty, according to a September survey conducted by PUBLiCUS Asia, Inc..

In a statement, the pollster said 18% of Filipinos view corruption as an issue requiring immediate action from President Ferdinand R. Marcos, Jr. It overtook inflation, economic, and poverty concerns, with 15%, 12%, and 11% of Filipinos seeing the issue as a leading problem, respectively.

“While the public’s concerns remain largely consistent, there is a notable shift in the ranking of these issues,” PUBLiCUS Asia, Inc.said. “Corruption now tops the list, reflecting a growing frustration with governance and accountability across different sectors of society.”

The pollster noted that economic issues remain to be a “persistent issue” for Filipinos despite ranking lower than corruption. “Rising costs of essential goods continue to strain household budgets… underscoring the public’s desire for policies that directly address their day-to-day challenges.”

Inflation slowed to a seven-month low in August due to a moderate rise in food and a decline in transport costs. Consumer prices rose by 3.3% from 4.4% in July and 5.3% a year earlier, the Philippine Statistics Authority said in early September.

PUBLiCUS interviewed 1,500 Filipinos on Sept. 15 to 19, with an error margin of 3%. — Kenneth Christiane L. Basilio

Roque’s plea vs QuadComm denied

October 1, 2024 | 9:24 pm

THE Supreme Court (SC) junked a former Presidential Spokesman’s writ of amparo plea against the House of Representatives Quad-Committee, citing the limitations of the writ.

In a press briefing on Tuesday, SC Spokesperson Camille Sue Mae L. Ting said former president Rodrigo R. Duterte’s spokesman Herminio “Harry” L. Roque, Jr.’s petition for the writ of amparo is incorrect as such writ is only reserved for extralegal killings and enforced disappearances, none of which are present in this case.

Mr. Roque’s daughter Hacintha filed the case before the top court alleging the Quad-Committee’s contempt and detention orders threatened Mr. Roque’s rights to life, liberty, and security.

He did not immediately respond to a Viber message seeking comment.

The tribunal ordered the committee to comment on Mr. Roque’s petition for prohibition within ten days.

The committee ordered the ex-spokesman’s arrest and detention after being cited for contempt the second time for failing to submit subpoenaed documents necessary to the panel’s probe in relation to Philippine Offshore Gaming Operators.

It found evidence linking Mr. Roque to Lucky South 99, an illegal operation in Porac raided last June. — Chloe Mari A. Hufana

BARMM studying Malaysia’s programs

October 1, 2024 | 9:24 pm

COTABATO CITY — Planners in the Bangsamoro Ministry of Transportation and Communications are studying the viability of applying the public service programs of Malaysia in the autonomous region.

Bangsamoro Transportation and Communications Minister Paisalin P. Tago told reporters in Cotabato City on Tuesday that he and his subordinate-officials were so impressed with Malaysian policies on airport and seaport management, which can be applied in the autonomous region.

Mr. Tago led the team that toured Malaysia last week and met Malaysian officials who, in dialogues, shared to them governance and public service insights.

“We are keen on adopting some of their governance and public services thrusts for regional application,” Mr. Tago told reporters.

While in Malaysia, Mr. Tago, Deputy Minister Muhammad Ameen Abbas, and other officials met with their counterparts from the Malaysian Ministry of Transportation, the Tabung Haji, and the International Institute of Advanced Islamic Studies.

The Tabung Haji is an agency focused on facilitating savings, through investments, for the yearly pilgrimage of Malaysians to Makkah in Saudi Arabia. It also has programs promoting finance, health, property and information technologies. — John Felix M. Unson