Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 1336

DBM confident debt-to-GDP ratio will dip below 60% by 2026

BW FILE PHOTO

THE Department of Budget and Management (DBM) said on Thursday that revenue measures and fiscal reforms in the pipeline are likely to bring the debt-to-gross domestic product (GDP) ratio down to 60% by 2026.

While the government expects its borrowing to hit over P17 trillion next year, it is confident that the debt-to-GDP ratio will decline to 60% by 2026 based on current revenue projections and the passage of a number of economic reform bills, Budget Undersecretary Joselito R. Basilio said at a Palace briefing on the proposed National Expenditure Program for 2025.

A debt-to-GDP ratio of 60% is the rule-of-thumb maximum sustainable debt load for developing countries, according to international development banks.

Central banks are expected to pursue rate cuts after making significant gains against inflation, potentially lowering the Philippines’ interest payments on external debt, Mr. Basilio added.

Finance Secretary Ralph G. Recto has said that the government will wait on rate cuts from the Federal Reserve and the Bangko Sentral ng Pilipinas before embarking on new external borrowing next year.

“We’re waiting for the Fed to reduce interest rates, and I think our central bank, will also reduce policy rates,” he said on the sidelines of a Senate hearing.

The National Government set its borrowing program for 2025 at P2.55 trillion, 0.97% lower than the P2.57 trillion planned for this year, with gross domestic borrowing set at P2.04 trillion and gross external borrowing at P507.41 billion.

Government debt hit a record P15.35 trillion at the end of May, according to the Bureau of the Treasury, citing the impact of the weaker peso.

The Philippine Development Plan 2023-2028 sets a target of a 3% deficit-to-GDP ratio and a debt-to-GDP ratio of 48-53%.

The government expects tax collections for 2025 to hit P4.3 trillion, of which P3.2 trillion is expected to be generated by the Bureau of Internal Revenue.

About P1.064 trillion will come from the Bureau of Customs, a level of contribution which Mr. Basilio described as unprecedented.

Non-tax revenue and privatization proceeds, meanwhile, are expected to hit P210.8 billion and P101 billion, respectively.

Fiscal analysts have noted that President Ferdinand R. Marcos, Jr. outlined programs that require massive funding in his third address to Congress last month, but failed to say how the government aims to boost funding.

The National Government borrows from both foreign and domestic lenders to fund its budget deficit as it spends more than its revenues to support infrastructure projects and boost economic growth. The budget deficit in the January-May period widened 24.06% to P404.8 billion.

Diwa C. Guinigundo, a former central bank deputy governor, said in a Viber message that if borrowing is not translated into growth, “debt servicing could divert public money away from supporting more infrastructure and productive activities.”

“Our debt levels (will) eventually (decline) to what we are targeting. So it will be less than 60% of our level of debt, let’s say 60% of GDP by 2026 onwards,” Mr. Basilio said.

“And it can happen even before that, depending on the performance of the economy and of course revenue collection.”

The proposed taxes on single-use plastics and digital transactions are among the priority measures that both houses of Congress could pass before the midterm elections next year. On the other hand, a measure seeking to reform the pension system for military and uniformed personnel has not been included in the Legislative Executive Development Advisory Council’s priority list released in July.

“Our debt-to-GDP ratio has been going down, and with our fiscal consolidation, we are expecting that it will further go down,” Budget Secretary Amenah F. Pangandaman said at a briefing on the proposed 2025 national budget.

The Executive Branch proposed a P6.352 trillion for 2025, with Ms. Pangandaman noting efforts to “decrease the deficit and at the same time maximize whatever revenue that we have.” 

Mr. Basilio, meanwhile, said government spending for the first half of 2024 was 14% higher compared to the same period last year, exceeding the Development Budget Coordination Committee projection.

The slower economic growth during the second quarter of 2023 has been largely blamed on slow government spending.

Mr. Basilio said government spending is being driven by the Road Infrastructure Network Program of the Department of Public Works and Highways, the modernization program of the Armed Forces of the Philippines, service enhancements by the Department of Social Welfare and Development, and spending by the Commission on Elections for the local and national elections next year. — Kyle Aristophere T. Atienza

Human Settlements dep’t issues challenge to private sector to build resilient communities

PHILIPPINE STAR/EDD GUMBAN

THE Human Settlements department has invited the private sector to collaborate with the government in building communities that are resilient in the face of climate change and natural disasters.

Undersecretary Henry L. Yap of the Department of Human Settlements and Urban Development (DHSUD), in a keynote speech at a forum organized by BusinessWorld, said “all stakeholders” need to work to create resilient communities.

“To achieve our goal, we need a united front. The realization of an inclusive, resilient, and sustainable human settlements entails coordination and support from all stakeholders, as well as significant funding and investment,” Mr. Yap said at the BusinessWorld Insights Forum, “Building Sustainable and Inclusive Communities for the Future” in Makati City on Wednesday.

“We are inviting the private sector partners, business people and leaders, development partners, and our local government units to partner with us in building a better Philippines,” he added.

Urban planner and Palafox Architecture Group, Inc. President Felino A. Palafox, Jr. said the Philippines needs to have 100 new “sustainable, resilient, and smarter” cities by 2050 to house a population projected to grow to over 150 million.

“By 2050, it is forecast that the Philippines will be the 16th largest economy in the world. There will be 150 million Filipinos by 2050, of which 70% will be urban population. We need 100 new cities by 2050. Otherwise, our existing cities will be as bad, if not worse, than Metro Manila today,” he said.

“We need strong political will with visionary leadership, urban design, and excellent management,” he added.

Ramon Rivero, Robinsons Land Corp. head of corporate planning, strategy, and sustainability, said that sustainable real estate development is an imperative rather than an option.

“Our cities are expanding at a fast rate and with this growth comes the need for more housing, commercial space, and infrastructure. However, this growth must not come at the expense of our environment,” Mr. Rivero said.

“We have to make sustainability very easy for our people, be it in the form of incentives or form of education. It has to be an easy option. You have to design it in a way that is easy and accessible for them to implement,” he added.

TruNorth Homes Founder and Chief Executive Officer Earl Forlales said that sustainable infrastructure and solutions should be more accessible to promote broader adoption by consumers.

“There is no use for a well-planned sustainable community if people cannot afford to live in it. If we’re able to infuse sustainable features and still make it affordable, that would make a sustainable community,” he said.

“Sustainable infrastructure has to be affordable to the regular consumer. The more that we can make sustainable solutions more affordable, behavioral change will naturally follow on the consumer level without forcing it,” he added.

Yvonne Flores, Gokongwei Group head of sustainability and corporate social responsibility, said inclusive urban planning should be approached systemically.

“It is looking at the overall system and implementing solutions systemically,” she said.

“Resilience is an existential must for all of us. We must make sure that the vulnerable within our communities are included in the solutions we’re looking at. It’s about looking those who are vulnerable and ensuring that because we are part of the community, even the vulnerable are protected and included in the solutions that we are looking at,” she added.

Aboitiz Infracapital Economic Estates Vice-President Jolan Formalejo said that committing to sustainable urban development should be the guiding principle in planning inclusive communities.

“With this comes making sure that inclusivity is integrated. The solution is to decongest these cities by providing new regional areas,” he said.

“Once we start in the regions, we have the full opportunity to make a difference,” he added.

BusinessWorld Executive-Vice President Lucien C. Dy Tioco said sustainable cities and communities remain a challenge for the Philippines.

“In an era marked by rapid urbanization and unprecedented global challenges, the need to make our cities and communities inclusive, sustainable, and resilient has never been more critical,” he said.

“Even the effects of recent Typhoon Carina and the southwest monsoon in Metro Manila and Luzon alarm us once again of how crucial it is to make our communities not just ready for disasters but capable of mitigating their impacts to avoid casualties,” he added. — Revin Mikhael D. Ochave

Congress pitched on using RCEF for solar irrigation, pest control

PHILIPPINE INFORMATION AGENCY

THE Department of Agriculture (DA) said on Thursday that it is proposing to tap the Rice Competitiveness Enhancement Fund (RCEF) for use in pest management and solar irrigation programs.

“We would like to also add new components to the RCEF like pest and disease management… and to use if possible RCEF funds for solar irrigation, small water impounding, (as well as) post-harvest machinery and facilities,” Agriculture Secretary Francisco P. Tiu Laurel, Jr. told a Congressional oversight committee on agricultural and fisheries modernization.

The Rice Tariffication Law, (Republic Act No. 11203), funds RCEF from rice import tariffs. It liberalized rice imports but made importers pay a 35% tariff on Southeast Asian grain.

Last month, the government slashed rice tariffs to 15% until 2028 via Executive Order No. 62.

“We need a few more years to ensure that we give the right support through mechanization, to increase production,” he added.

Mr. Laurel said the DA is also hoping to establish a program management office for rice industry development.

He said the DA is planning to harmonize its two rice programs — RCEF and the National Rice Program.

Amendments proposed in the House of Representatives seek to raise RCEF’s annual allocation from tariffs to P15 billion a year from P10 billion currently. They also seek to tweak the way RCEF is spent, with 53% going to mechanization, 28% to rice seed, and the remainder to farm credit and extension services.

Federation of Free Farmers National Manager Raul Q. Montemayor said RCEF should also be more flexible to address location-specific requirements and the preferences of rice farmers.

He added that RCEF should also provide additional funds for common service facilities that farmers can access.

“We are seeing a lot of idle equipment in the field coming from RCEF, because the equipment given to farmers and cooperatives is not being fully utilized,” Mr. Montemayor said. — Adrian H. Halili

Senior high e-commerce track launched via Thames International tie-up

BW FILE PHOTO

AN E-COMMERCE track for senior high school (SHS) learners was launched on Thursday in a tie-up involving the departments of Education (DepEd) and Trade and Industry (DTI) as well as Thames International School, Inc., the DTI said.

“A dedicated e-commerce track in SHS is a strategic step toward creating a future-ready workforce. We need to prepare our workforce for the emerging industry, which is digital and AI (artificial intelligence)-driven,” Trade Secretary Alfredo E. Pascual said at the signing ceremony on Thursday.

“This track will provide students with the technical skills needed for e-commerce and foster an entrepreneurial mindset, preparing them to be job creators and innovators,” he added.

Thames Co-Founder and President Jaime Noel J. Santos said that the target is to implement the additional track within the current school year.

“We are chasing it because the school year has just started, but the students can still transfer tracks within the first semester, within the first term … We are working on around 50 schools in three regions,” Mr. Santos said.

He said the selected regions — National Capital Region, Central Luzon, and Calabarzon — have a high concentration of e-commerce companies.

“So, immediately upon graduating, the hiring companies are there for them,” he added.

Mr. Santos said the target is 1,000 students for the first batch, with an ultimate goal to graduate 50,000 students within the next four years.

Initially, Thames will be the first to implement the program, with plans to replicate it in DepEd schools through a train-the-trainer program.

Education Secretary Juan Edgardo M. Angara said that the tie-up can potentially offer alternative paths to the 4 million SHS students.

“This will give a greater chance for SHS graduates to be employed, and that is the promise of the government when it passed K–12,” Mr. Angara said.

The DepEd said that the new track will be considered in the ongoing review and revision of the senior high school curriculum.

“We can see the potential of this to be part of our new senior high school curriculum, which is still currently undergoing review and redevelopment,” it added.

Philippine Retailers Association President Roberto S. Claudio said demand for additional manpower in the retail industry is around 500,000 positions.

“There are a lot of retail jobs that do not require college graduates. So this is a good program… at an early stage, they will be employable,” Mr. Claudio said.

“But it should not stop there. What I’d like to see is for it to have a track where they can move up to higher skills and higher education at the same time so they can still upskill,” he said. — Justine Irish D. Tabile

$80 Dubai crude price set as trigger for farmer fuel subsidy

CHRISTINE WALKER-UNSPLASH

THE Department of Agriculture (DA) said a fuel subsidy for farmers that own or rent machinery will kick in when the benchmark Dubai crude price hits $80 per barrel.

Memorandum Circular (MC) No. 27 defined the $80 trigger point for the subsidy, as certified by the Department of Energy.

“Fuel expenses is one of the important operating cost in farming,” the DA said, adding that the subsidy will be handed out once, regardless of the number of machines operated on farms.

The DA has said registered farmers will receive P3,000 in fuel assistance. It has allocated over P510 million to aid about 160,000 registered beneficiaries.

“The fuel assistance shall be used for all types of machinery utilized in crops, livestock, and poultry production,” the DA said.

MC 27 stipulated that eligible farmers must be clustered or work in consolidated farms.

The DA said that the funds will be distributed via cards issued by the Development Bank of the Philippines and its financial technology partners. — Adrian H. Halili 

 

June NCR retail price growth slowest in over three years

PHILIPPINE STAR/ MIGUEL DE GUZMAN

RETAIL PRICE growth of general goods in Metro Manila eased in June to their weakest level in three years, the Philippine Statistics Authority (PSA) reported on Wednesday.

According to preliminary data from the PSA, growth in the general retail price index (GRPI) in the National Capital Region (NCR) eased to 1.8%, from 2% in May and 4.4% a year earlier. It was the weakest reading since the 1.6% posted in February 2021.

In the first half of the year, NCR retail price growth averaged 2.1%, unchanged from a year earlier.

Slower annual increases were seen in the indices for food (2.4% from 2.5%), beverages and tobacco (2.6% from 3%), mineral fuels, lubricants and related materials (5.7% from 6.1%), chemicals, including animal and vegetable oils and fats (2% from 2.2%) and manufactured goods classified chiefly by materials (1.1% from 1.3%).

Accelerating in price growth were crude materials, inedible except fuels (0.8% from 0.6%), and miscellaneous manufactured articles (1.5% from 1.2%).

Security Bank Corp. Chief economist Robert Dan J. Roces said in an e-mail that the slowdown was broad-based.

“This deceleration was primarily driven by slower price increases across several commodity groups… food, beverages and tobacco, and mineral fuels,” Mr. Roces said.

“Looking ahead to July, while the overall trend suggests potential further deceleration or stability in the GRPI, the trend will depend on various factors, including global commodity prices, exchange rates, and new economic policies or events,” added Mr. Roces. — Lourdes O. Pilar

BIR maintains P3-trillion collection target

BW FILE PHOTO

THE Bureau of Internal Revenue (BIR) said it will maintain its P3.055-trillion revenue target for this year.

“Despite the figures mentioned there, this was still not yet transmitted to us, that’s why our collection target is still P3 trillion,” BIR Commissioner Romeo D. Lumagui, Jr. told reporters on the sidelines of an event, referring to a report indicating that the target had been downgraded.

The Department of Budget and Management’s Budget of Expenditures and Sources of Financing report released on Monday contained a downgraded BIR collection target of P2.85 trillion for this year.

It also noted that the revenue stamps on vape products have generated around P100 million since all vape manufacturers were ordered to affix stamps to their products.

However, Mr. Lumagui noted the high collection target, tax non-compliance, and shift to online selling platforms as risks to achieving the revenue goal.

“While the tax efficiency of BIR has been increasing, its collection targets remain low because many are shifting from traditional purchases to online, so many transactions there are not covered by the BIR,” he said.

The BIR said it is more confident of hitting its revenue targets next year as it expects more collections from the recently imposed withholding tax on online sellers.

The BIR accounts for nearly 70% of government revenue.

Meanwhile, Finance Secretary Ralph G. Recto noted that the BIR’s deadline extensions for taxpayers affected by the recent typhoon is not expected to have a significant impact on the agency’s collections.

“We thought it best to give people a chance,” he said. “I don’t think it’ll have that big of an impact.”

In the wake of Typhoon Carina, the BIR granted taxpayers in selected regional district offices a six-day extension, or until July 31, to settle their dues.

The BIR missed its midyear collection target by 2.92%, generating only P1.36 trillion out of the P1.4-trillion goal for the period. — Beatriz Marie D. Cruz

IC studying rules for selling insurance to OFWs

PHILSTAR FILE PHOTO

THE Insurance Commission (IC) is planning to issue a circular that will govern the sale of insurance to overseas Filipino workers (OFWs).

“We’re preparing the proper circular, but we’re coordinating with the Department of Migrant Workers (DMW) on the manner in which we’ll be executing this (to ensure they do not violate) not only of our laws, but also the laws and rules of the host country,” Insurance Commissioner Reynaldo A. Regalado told reporters.

Mr. Regalado said the circular will need to work around a law allowing insurance companies to sell policies only to Filipinos in the Philippines.

Republic Act No. 10607 or the Amended lnsurance Code deems all licenses issued to companies and agents to be valid within the Philippines only.

lC Circular Letter No. 2020-109 likewise reiterates that insurers may only insure persons or risks situated within the Philippines.

“We cannot remove that. We have to see how best we can have that implemented. There must be some way, even prior to entering a foreign country,” Mr. Regalado said.

The IC is planning a pilot program in certain countries to ensure no legal issues in selling policies to OFWs.

“We want to have one in the Middle East, one in Asia, and one in North America, at least. But we’re still not very clear on that. We have to coordinate with the Department of Foreign Affairs (DFA) also,” Mr. Regalado said.

He said he hopes the circular is released within the year.

The IC also hopes to require mandatory coverage for OFWs before they leave the Philippines.

“It’s not required yet by the DMW. We’re taking the cue from them,” he said. — Aaron Michael C. Sy

PHL growth likely second strongest among 6 major ASEAN economies

PHILIPPINE STAR/MICHAEL VARCAS

THE PHILIPPINES is expected to be the second fastest-growing economy of the six major Southeast Asian Nations countries in the next ten years due to robust infrastructure and its increasing workforce, Bain and Co., Monk’s Hill Ventures’ Angsana Council, and DBS Bank said.

In a report, they said Philippine gross domestic product (GDP) growth will likely average  6.1% yearly until 2034, upgrading the three firms’ earlier projection of 4-5% growth over the next 10 years.

“Since 2022, our projections have improved for the Philippines and Malaysia, thanks to significant efforts by the current administrations to become more ‘pro-investment’ and ‘pro-business,’” they said.

If the forecasts are borne out, the Philippines will trail only Vietnam (6.6%) while beating out Indonesia (5.7%), Malaysia (4.5%), Thailand (2.8%), and Singapore (2.5%). The Philippines would also outpace the six-country average of 5.1%.

“Indonesia and the Philippines, which start from a lower base, are moving in a positive direction, especially in economic innovation,” it said.

Main drivers of the Philippine economy include a “pro-growth administration” and priority investments in infrastructure, especially renewables, which are gaining interest among foreign investors.

“The Philippines and Vietnam have substantial offshore wind potential, and the region has vast untapped solar and hydropower availability. With improved grid infrastructure, government support, and financial incentives, Southeast Asia could deliver climate, economic, and energy security benefits regionally and abroad,” according to the report.

The Philippines, having one of the youngest workforces in the region, will also have demographics on its side, the report said.

“The Philippines leads with the strongest working population increase, whereas Singapore and Thailand are experiencing declines caused by low birth rates and ageing populations.”

Emigration from the Philippines and Indonesia has also slowed due to better job markets, it also said.

On the other hand, education, infrastructure, government effectiveness, and geopolitical tensions with China pose risks to Philippine growth.

“SEA-6 has shown generally positive trends for education spending with Indonesia, Vietnam, and the Philippines witnessing a sizeable increase in per capita spending on education; however, they still lag significantly behind their regional counterparts,” they said. — Beatriz Marie D. Cruz

China says Philippine-US tag team to worsen South China Sea tension

A SCREENGRAB from Philippine Coast Guard shows a Philippine vessel being water cannoned by the China Coast Guard on April 30, 2024. — PHILIPPINE COAST GUARD PHOTO

By John Victor D. Ordoñez, Reporter

A PHILIPPINES-US tag team against China would worsen tensions in the South China Sea, according to the Chinese Foreign Ministry, after Washington committed to give Manila $500 million (P29.3 billion) in military aid.

“The Philippines needs to see that ganging up with countries outside the region to engage in confrontation in the South China Sea will only destabilize the region ad create more tensions,” Foreign Ministry spokesman Lin Jian told a news briefing in Beijing on Wednesday evening.

He said Manila should focus on engaging in dialogue and consultation instead of allowing the United States to “interfere in the maritime issue.”

The Philippine Department of Foreign Affairs did not immediately reply to a WhatsApp message seeking comment.

US Secretary of State Antony Blinken and US Defense Secretary Lloyd Austin III announced the new military funding on Tuesday in Manila after their 2 + 2 ministerial dialogue with Philippine Foreign Affairs Secretary Enrique A. Manalo and Defense Secretary Gilberto Eduardo C. Teodoro, Jr.

“To seek security assurance from external forces will only lead to greater insecurity and turn oneself into someone else’s chess piece,” the Chinese spokesman said.

He added that allowing the deployment of US missiles in the Philippines would fuel tensions and incite a regional arms race.

The US brought a mid-range missile system for the annual Balikatan or shoulder-to-shoulder military exercises with the Philippines earlier this year.

Philippine Senate President Francis G. Escudero on Wednesday said Washington’s military funding won’t provoke or agitate China, saying it is every country’s right to strengthen its military to keep the peace.

US President Joseph R. Biden, who signed the National Security Supplemental bill into law in April, had said it would help American allies “defend themselves against threats to their sovereignty and to the lives and freedom of their citizens.”

In April, Republican Senator Bill Hagerty and Democrat Senator Tim Kaine pushed a bill that increased US military aid for the Philippines to $500 million from $40 million over five fiscal years through 2029.

The Philippines, one of the weakest in the world in terms of military capability, is important to Washington’s efforts to push back against China, which claims the South China Sea almost in its entirety.

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

They resumed talks to ease tensions in the waterway after accusing each other of raising tensions in disputed shoals and reefs in the South China Sea.

Beijing has urged its neighbor not to “backpedal” or do anything that would complicate the situation in the waterway.

Philippine President Ferdinand R. Marcos, Jr. said in his third address before Congress that his government would continue to find ways to de-escalate tensions in contested areas in the waterway “without compromising our position and our principles.”

China claims more than 80% of the South China Sea, overlapping with the exclusive economic zones of Vietnam, Malaysia, Brunei, Indonesia and the Philippines.

A United Nations-backed tribunal in 2016 voided China’s claim over the waterway for being illegal. Beijing has ignored the ruling.

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.

Study on Manila Bay reclamation to be done by September

PHILIPPINE STAR/MIGUEL DE GUZMAN

THE DEPARTMENT of Environment and Natural Resources (DENR) on Thursday said it seeks to wrap up its study on the environmental impacts of reclamation projects at the Manila Bay by September, after senators blamed these for heavy flooding.

“We believe by September we will be able to complete even the three-dimensional visualization of these impacts of reclamation,” Environment Secretary Maria Antonina Yulo-Loyzaga told a Senate public works committee hearing.

In August last year, Philippine President Ferdinand R. Marcos, Jr. suspended all reclamation projects at the bay, except for one, ordering the DENR to review their environmental effects.

Senators Juan Miguel F. Zubiri and Emmanuel Joel J. Villanueva earlier blamed the reclamation at Manila Bay for heavy flooding, especially in Manila, Pasay City and Bulacan province.

“In general, reclamation projects will slow down the flow of water and will change the circulation and retention of pollutants and organic materials that are already in the bay,” Ms. Yulo-Loyzaga said.

Public Works Secretary Manuel M. Bonoan on Tuesday told a news briefing that more than 5,000 flood control projects would be implemented across the country this year, after dozens died in floods caused by Super Typhoon Carina and the southwest monsoon rains last month.

At the hearing, the Public Works chief said flood control projects in Bulacan and Pampanga that were supposed to be ready this year were still in preparatory stages.

“The process of doing the detail and design for this type of mega-project takes time because we have to go on the ground,” he said.

Senator Ramon B. Revilla, Jr., the committee chairman, told the hearing that the government has spent about P1 trillion on flood control projects in the past decade.

Senator Maria Lourdes Nancy S. Binay told the committee that flood control projects over the years had “failed to produce the necessary improvements to safeguard communities.”

“It is deeply concerning that despite the significant funds allocated to the DPWH and the Metro Manila Development Authority, our flood management systems remain inadequate,” she said.

The Marikina River reached as high as 20 meters. Its water level rose to 21.5 meters during the 2009 devastation of Typhoon Ondoy, which killed more than 700 people, and to 22 meters during 2020’s Typhoon Ulysses, which killed about 100 people.

Speaker Ferdinand Martin G. Romualdez has said the House of Representatives would look into the government’s flood management budget to determine if it had been spent wisely.

The Philippines’ disaster agency on Tuesday said the death toll from the combined effects of Super Typhoon Carina (Gaemi) and the southwest monsoon had hit 39 and that the number of affected people had risen to 4.8 million. — John Victor D. Ordoñez

Immigration bureau warns vs rising use of fake passports

Passengers are seen at the departure lobby of the Ninoy Aquino International Airport (NAIA) Terminal 3 in Pasay City. — PHILIPPINE STAR/MIGUEL DE GUZMAN

THE BUREAU of Immigration on Thursday sounded the alarm about a rise in the use of fake foreign passports, citing threats from child trafficking.

The agency recently intercepted two Vietnamese girls at the Ninoy Aquino International (NAIA) Terminal 1 who presented illegally obtained German passports.

In a statement, Immigration Commissioner Norman G. Tansingco said this might be a case of child trafficking.

The two girls, aged 15 and 17, arrived in the Philippines from Saigon. They presented stolen German passports, whose owners had similar facial features.

Mr. Tansingco said the photos of the two girls matched only 4% and 9% of the photos on the German passports.

The girls, who showed their Vietnamese passports, admitted that the German passports were stolen and were given to them by fixers.

The German passports were surrendered to the German Embassy.

“They were look-alikes, but were detected as both German passports, which prompted a hit in the Bureau of Immigration’s Interpol derogatory check system, indicating that their travel documents were reported as lost or stolen,” Mr. Tansingco said.

They were denied entry to the Philippines and blacklisted.

Another Vietnamese minor was intercepted at the same terminal on July 23 before boarding a Korean Airlines flight bound for Incheon, en route to Toronto for his final destination.

The 17-year-old boy also presented a fake German passport.

During the interview, he admitted his real identity and showed authorities his Vietnamese passport.

He also confessed that he used the German passport to illegally enter Canada.

“It was surprising to hear how easy it was for him to acquire the passport online,” Mr. Tansingco said. “This seems to be another scheme illegal migrants use to be able to secure work abroad.”

Meanwhile, the Immigration bureau said it needs about P1.3 billion next year to upgrade its outdated security systems at Philippine airports so it could block members of criminal syndicates and other fugitives from justice.

“We need an upgrade because our matching system has a limited capacity,” Immigration bureau Management Information Systems Division chief Jolly Bert G. Galeon told a Senate committee on public services hearing.

“If people change their names even by one letter, it has trouble matching (their identity) in our database,” he added.

He said only electronic gates at airports could crossmatch identities accurately, but Immigration booths still lack updated technologies.

In June, the bureau nabbed two Chinese fugitives wanted for extortion at the Ninoy Aquino International Airport.

In January, the agency said 3,359 foreigners including wanted fugitives and sex offenders were barred from entering the country last year.

“If we need to upgrade or change the system, let’s do it even if it would cost billions to do so,” Senator Rafael “Raffy” T. Tulfo told the hearing in Filipino. “Because when it comes to national security, there should be no compromise.” — Chloe Mari A. Hufana and John Victor D. Ordoñez

1...1,3351,3361,337...12,695Page 1,336 of 12,695
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube