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How the Philippines compares with its peers in digital evolution

The Philippines’ ranking worsened in the latest edition of the Digital Evolution Index (DEI) published by The Fletcher School at Tufts University in collaboration with Mastercard. The country fell by a notch to 77th out of 125 economies in the Digital Evolution State factor while it slipped three places to 53rd in the Momentum factor. The index evaluates the competitiveness of an economy’s digital evolution as a function of two factors: state (the level of digital advancement) and momentum (the pace of digitalization over time). A higher score means higher level of digital advancement.

How the Philippines compares with its peers in digital evolution

Philippines says Chinese vessels harassed its civilian ships at Sandy Cay

PHILIPPINE STAR/MICHAEL VARCAS

By Kenneth Christiane L. Basilio, Reporter

THE PHILIPPINES on Thursday accused China of endangering Filipino researchers in the South China Sea, saying its coast guard harassed two Philippine civilian vessels at a disputed reef on Wednesday, further raising tensions in the contested waterway.

The Philippine ships BRP Datu Sanday and BRP Datu Pagbuaya were on a routine scientific mission to collect sand samples at Sandy Cay, where they encountered “dangerous maneuvers and illegal acts” from Chinese coast guard and militia ships, according to Manila’s fisheries bureau.

The Chinese Embassy in Manila did not immediately reply to a Viber message seeking comment.

A Chinese coast guard vessel fired its water cannon at BRP Datu Sanday — the first time it has been used against Philippine ships at the disputed reef — before colliding the vessel, damaging its bow and chimney, the Bureau of Fisheries and Aquatic Resources said in a statement.

“Despite the aggressive interference, dangerous maneuvers and illegal acts by the China Coast Guard and Chinese maritime militia vessels, the Philippine scientific team was able to complete its operations in Pag-Asa Cays 1, 2 and 3,” the fisheries agency said, referring to the Sandy Cay features by their Filipino names.

“The incident occurred within the territorial sea of the Philippines,” it added.

The sandbars have become a flashpoint in the ongoing dispute between the two nations in the South China Sea, where they both lay competing claims. Confrontations between Manila and Beijing at other sea features have involved the use of water cannons and sideswipes by Chinese vessels on Philippine ships.

Manila has condemned such acts as aggressive and unlawful, while Beijing maintains its actions are meant to defend Chinese sovereignty.

China claims nearly all of the potentially mineral- and oil-rich South China Sea based on a 1940s nine-dash line map that overlaps with the exclusive waters of the Philippines and neighbors like Vietnam and Malaysia.

Chinese state media in mid-April reported that China’s coast guard had asserted sovereignty over the Sandy Cay by landing and displaying Beijing’s national flag on the feature.

But Manila has denied China’s claim over the sandbar, deploying its own contingent of troops shortly after to reinforce its position and challenge Beijing’s assertion of control.

The sandbank lies close to Thitu Island, where the Philippines maintains a military outpost and a small Filipino community has lived since 1971.

“Despite all the harassment, we’re still going to continue our maritime scientific research,” Philippine Coast Guard (PCG) spokesman for the West Philippine Sea Commodore Jay T. Tarriela told reporters on the sidelines of a maritime security forum in Manila.

“We’re still going to exercise our sovereignty and sovereign rights in the West Philippine Sea,” he added, using the Philippine name for parts of the South China Sea within the country’s exclusive economic zone.

Mr. Tarriela declined to say whether PCG vessels would escort future scientific research missions to the sandbars but confirmed that coast guard personnel were on board the ships during Wednesday’s operation.

SEA CODE
Meanwhile, a Philippine state lawyer said on Thursday that the finalized code of conduct for the disputed South China Sea must align with international maritime law and uphold Manila’s arbitration victory over Beijing.

“The code of conduct should not have any provisions that would supervene the provisions of the United Nations Convention of the law of the Seas (UNCLOS),” Fretti G. Ganchoon, senior state counsel at Manila’s Justice department, told a maritime security forum.

“The UNCLOS is considered as the highest instrument of the Constitution for the oceans, and so the code of conduct must be consistent with it. It cannot have rules there that would, for example, impair the arbitral award,” she added.

Manila took legal action against China in 2013 over its blockade on Philippine vessels going to Scarborough shoal, a prime fishing ground claimed by both nations that Beijing has controlled since 2012.

In 2016, a United Nations-backed tribunal ruled that China had interfered with Filipino fishermen’s rights to access the area. It also voided its expansive sea claim in the contested waterbody for being illegal. Beijing has continued to deploy vessels around the maritime feature to assert its claim despite the ruling.

The Association of Southeast Asian Nations (ASEAN) and China pledged in 2002 to come up with a code of conduct on the South China Sea, a framework that seeks to prevent conflict through diplomatic means, but it has remained elusive due to slow progress.

Philippine Foreign Affairs Secretary Enrique A. Manalo last month said ASEAN and Beijing are “politically committed” to finalize the South China Sea code by next year, when the Philippines is set to host the regional grouping.

“At an early stage, we need to use the UNCLOS as a framework,” Hamzah bin Ishak, deputy director-general of national security at Malaysia’s National Security Council, said in the same forum.

“We are not living in the jungle, where people who are strong can do whatever they do,” he added. “We believe that UNCLOS remains relevant in disputes on the rights and responsibilities at sea.”

Mr. Hamzah said that “political solutions” outside the international treaty should only be explored if negotiations reach a deadlock. “I think ASEAN will continue to use the framework in the negotiations.”

Philippines, Australia seek deeper cyberdefense ties

DEFENSE Secretary Gilberto C. Teodoro, Jr. and Australia Defense Force’s Cyber Command chief Paul Pettigrew committed to strengthening cyber defense cooperation in a meeting in Manila on Wednesday. — DND

THE PHILIPPINES and Australia vowed to strengthen their cyberdefense cooperation on Wednesday, as top security officials from both nations committed to advancing their cybersecurity capabilities amid evolving national security threats in the digital space, according to Manila’s Defense agency.

Defense Secretary Gilberto C. Teodoro, Jr. met Australia Defense Force’s Cyber Command chief Paul Pettigrew in Manila, where Canberra pledged support for the Philippines’ efforts to strengthen its cyberdefense systems, it said in a statement late Wednesday.

“Both sides emphasized the need to deepen the enduring partnership between the Philippines and Australia, particularly in the cyber domain and highlighted that collaboration is needed not only at the tactical level, but also in governance and strategic planning,” the Philippine Department of National Defense (DND) said.

It noted discussions covered potential areas for cyber capacity building and collaboration with the DND and the Philippines’ armed forces.

The Philippines’ weak cyberdefense systems have led to national security vulnerabilities and economic losses, with incidents ranging from foreign actors allegedly breaching the President’s office and stealing sensitive documents to more than 80% of businesses facing cyberattacks last year.

Bolstering Manila’s cyberdefense capabilities has become increasingly urgent as Beijing has allegedly escalated state-sponsored attacks since last year, according to a report by US-based cybersecurity company CrowdStrike.

“The underlying motivation is likely China’s desire for regional influence in the nation’s near abroad,” it said in its 2025 report.

China has become increasingly assertive in the South China Sea, deploying a fleet of vessels to stake its sovereignty in the disputed waters, a key global trade route that is believed to be rich in minerals and oil deposits.

Manila and Beijing have repeatedly locked horns over maritime features that both nations claim in the contested waterbody, leading to confrontations that involve the use of water cannons and repeated sideswipes by Chinese vessels against Philippine ships.

The Philippines has stepped up efforts to counter China’s expansive claims in the South China Sea, broadening defense partnerships beyond its traditional ally, the US, to include Japan, Australia, and other western nations.

“Both sides concluded the meeting with a shared vision of deepening bilateral defense ties and promoting a free, open and secure Indo-Pacific region,” the Defense department said. — Kenneth Christiane L. Basilio

Congress told to push land use, homebuyer financing bills

PHILIPPINE STAR/NOEL PABALATE

By Beatriz Marie D. Cruz, Reporter

LAWMAKERS in the 20th Congress should pass bills seeking to institutionalize a national land use policy and a homebuyer financing program for the poor to address the country’s housing woes, according to analysts.

“We believe this new chapter in national governance presents a vital opportunity to tackle with even greater focus the issue of homelessness which remains one of the country’s most urgent and persistent challenges,” Noel Toti M. Cariño, national president of the Chamber of Real Estate and Builders’ Associations, Inc. (CREBA), said in a Viber message.

The Philippines faces a housing deficit of 6.5 million units, which could rise to 22 million by 2040 if not addressed, according to the United Nations Human Settlements Program.

In a document sent to BusinessWorld, CREBA urged congressmen to pass the proposed national land use policy, which seeks to establish parameters for land use to address the unequal distribution of economic resources.

The measure, which is among the Marcos administration’s priority bills this year, has been stuck in Congress for nearly three decades.

CREBA also called for the passage of a bill that seeks to establish a centralized homebuyer financing program.

The proposed law aims “to establish a permanent revolving fund pool to be used exclusively for home lending to the low- and lower- middle-income, and link up lending operations with secondary market operations,” CREBA said. 

The group is also pushing for amendments to Republic Act (RA) No. 7279, the Urban Development and Housing Act of 1992, which would address low private sector participation and lack of funding in housing projects.

CREBA also sought to amend RA 6552, the Realty Installment Buyers Protection Act, as its defects have led to “untold losses for developers.” The chamber noted this has impaired the financial capability of developers to cross-subsidize socialized and low-income housing.

Moreover, CREBA called for the approval of bills instituting land registration reforms, authorizing electronic notarization of real property transactions, and requiring usufruct for government-owned lands used in social housing projects.

“CREBA stands ready to work with the 20th Congress in crafting legislation toward a future where every Filipino has a place to call home—and where housing becomes the cornerstone of a stronger, more resilient economy,” Mr. Cariño said.

Marcos to meet with ASEAN leaders next week

President Ferdinand R. Marcos, Jr. is set to deliver his second State of the Nation Address before Congress on Monday. — PPA POOL/RENE H. DILAN

PRESIDENT Ferdinand R. Marcos, Jr., is set to meet with Association of Southeast Asian Nations (ASEAN) leaders next week during the 46th ASEAN Summit ahead of the Philippines’ chairmanship of the regional bloc in 2026.

Speaking in a palace briefing on Thursday, Foreign Affairs Deputy Assistant Secretary Dominic Xavier M. Imperial said Mr. Marcos will be meeting with leaders of Laos and Vietnam at the ASEAN Summit in Kuala Lumpur, Malaysia, on May 26 and 27.

He will also meet with Kuwaiti leaders, although the Gulf country is not a member of ASEAN, Mr. Imperial said, noting the list is still being finalized.

“He will be accompanied by the Secretary of Foreign Affairs, Enrique A. Manalo, and Trade Secretary Cristina A. Roque,” Mr. Imperial said.

Mr. Marcos’ visit will also include his participation in two expanded engagements: the 2nd ASEAN-Gulf Cooperation Council (GCC) Summit and the ASEAN-GCC-China Summit.

A key agenda item for the summit will be ASEAN’s unified response to the recent imposition of unilateral tariffs by the United States.

Mr. Imperial said that while ASEAN remains concerned about the economic impact of these tariffs, the bloc has agreed not to retaliate. Instead, member states are focusing on enhancing bilateral and multilateral engagement with the US, a strategy strongly supported by Mr. Marcos.

President Marcos supports this non-retaliatory, dialogue-focused approach aimed at benefiting all ASEAN member states, he added.

The summit is expected to release a joint statement on the agreements among ASEAN leaders, with the GCC, and China, covering ASEAN’s three pillars of peace and security (including maritime cooperation), economic cooperation (such as digital transformation and artificial intelligence), and socio-cultural ties (including people-to-people exchanges and climate change).

The summit will also discuss Timor-Leste’s pending membership in the world’s 5th largest economy, but Mr. Imperial noted they may not yet vote on its application yet. — Chloe Mari A. Hufana

June 6 declared regular holiday

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

PRESIDENT Ferdinand R. Marcos, Jr. declared June 6 a regular holiday nationwide in observance of Eid al-Adha or the Feast of Sacrifice.

Mr. Marcos signed Proclamation No. 911 on May 21.

Eid al-Adha is one of the two major holidays in the Islamic calendar, alongside Eid al-Fitr, which marks the end of the holy month of Ramadan.

The day commemorates the willingness of Prophet Ibrahim to sacrifice his son in obedience to Allah’s command.

In observance, Muslims traditionally slaughter sheep, goats, cows, or camels, with the meat shared among family, friends, and those in need. — Chloe Mari A. Hufana

PCO: Marcos won’t sit in budget bicam

PRESIDENT FERDINAND R. MARCOS, JR. — PHILIPPINE STAR/NOEL PABALATE

PRESIDENT Ferdinand R. Marcos, Jr. will not sit as part of bicameral proceedings for next year’s budget, the palace clarified on Thursday.

“He will not definitely sit during the Bicam meeting, this is just an expression to show to the people that he will keep an eye on the national budget for 2026,” Presidential Communications Office (PCO) Undersecretary Claire B. Castro told a media briefing on Thursday.

“The budget should base on the priorities of the government, and it should prioritize the projects of the government.”

Budget Secretary Amenah F. Pangandaman on Tuesday said Mr. Marcos is keen on keeping an eye out for the budget, noting that should it be deemed necessary, the President will “sit in the Bicam.”

A lawmaker said Mr. Marcos should have no role in the government’s budgeting process amid a controversial spending plan it approved last year.

In a statement on Thursday, House Deputy Minority Leader and Party-list Rep. France L. Castro said that Mr. Marcos should have no role in the finalization of the proposed national budget, as it could undermine the separation of powers between government branches.

“The bicameral conference committee is a responsibility of the legislature — it should not be interfered with or attended by the President,” she said in Filipino.

“The presence of Mr. Marcos or any representative of the executive in the bicameral imposes unnecessary pressure and threatens the freedom of lawmakers to decide based on the interests of the people.”

The Philippines’ P6.326-trillion budget this year faces legal challenges due to unresolved issues due to allegations of mismanaged allocations and shady maneuvers in its drafting last year.

In December, Mr. Marcos signed into law the 2025 budget but vetoed P194 billion worth of line items that he said were inconsistent with his government’s priorities. — Kenneth Christiane L. Basilio

Marcos seeks stricter ODA rules

PRESIDENT FERDINAND R. MARCOS, JR. — YUMMIE DINGDING / PPA POOL 

PRESIDENT Ferdinand R. Marcos, Jr., on Thursday, said the government will impose stricter rules on the approval of Official Development Assistance (ODA) loans as he called on implementing agencies to ensure that government-funded projects are completed on time.

“I’ve said before that all ODA loans, especially those that have been severely delayed, must be thoroughly reviewed,” he said in Filipino during the presentation of the country’s newly enacted laws to implementing agencies and stakeholders during a ceremony.

“The approval of ODA loans will also be stricter from now on,” he added. He did not elaborate on the details.

ODA refers to concessional financing extended by foreign governments and multilateral institutions, such as the Japan International Cooperation Agency, the World Bank, and the Asian Development Bank, to support the development priorities of partner countries.

These loans are typically offered at lower interest rates and with longer repayment terms compared to commercial loans, making them a crucial source of funding for developing countries like the Philippines. ODA loans are often used to finance large-scale infrastructure projects, social services, and capacity-building initiatives that are critical to national development. — Chloe Mari A. Hufana

Senate to convene court for VP trial

BW FILE PHOTO

SENATE President Francis “Chiz” G. Escudero said that the Senate is expected to convene as an impeachment court for the trial of Vice-President (VP) Sara Duterte-Carpio on June 3, following the reception of House prosecutors a day before.

In a letter sent to reporters on Thursday, Mr. Escudero said that the Senate is set to convene as an impeachment court at 9 a.m. on June 3, where it will issue the summons and other relevant orders.

The letter, dated May 19, had also scheduled the formal reception of House prosecutor at 4 p.m. on June 2, following the resumption of Congress.

Congress, which went on a nearly four-month break on Feb. 8 for the midterm elections, is set to resume for a two-week session from June 2 to 13.

“The Senate shall expect the prosecution to read the seven charges under the Articles of Impeachment in open session,” Mr. Escudero added.

The House impeached the vice-president on Feb. 5, alleging secret fund misuse, unexplained wealth, acts of destabilization and plotting the assassination of Mr. Marcos, his family, and the Speaker of the House. Ms. Duterte has denied any wrongdoing.

The impeachment complaint was filed and signed by more than 200 congressmen, meeting more than the one-third legal requirement before it could be sent to the Senate. The Vice-President is expected to face the Senate as an impeachment court once her trial commences in July.

The letter was sent to House Speaker Martin G. Romualdez and to the Office of the Vice-President. This was received by both offices on May 19. — Adrian H. Halili

GCash still keen on expanding services abroad

PHILSTAR FILE PHOTO

GCASH is still keen on expanding its services outside the Philippines, an official said, although the electronic wallet platform is still identifying its target territory.

“I think GCash is planning to expand its presence,” GCash Senior Manager and Partnerships and Business Development Head for GInsure Jay Young said on the sidelines of BusinessWorld Economic Forum on Thursday.

“In terms of expansion, let us talk about how you are able to apply for a GCash account. First requirement is you have to have a Philippine issued ID, and a Philippine-registered number. So long as they can prove they are Filipino, I think in terms of expansion and offering our services, we are limited by these requirements.”

To recall, the e-wallet giant is planning to expand its services in the Middle East, Asia-Pacific and Europe.

To date, GCash has a total of 94 million registered users.

In January, GCash also partnered with Ria Money Transfer for international remittance services for Filipinos abroad.

GCash has been pushing to expand its presence overseas by also seeking to boost the country’s remittances.

GCash services are currently available in 16 markets, including the US, the United Kingdom, the United Arab Emirates, Australia, Canada, Germany, Hong Kong, Italy, Japan, Saudi Arabia, Kuwait, Qatar, Singapore, South Korea, Spain, and Taiwan. — Ashley Erika O. Jose

Binay to tackle ‘Embo’ issue

PHILSTAR FILE PHOTO

OUTGOING PHILIPPINE Senator and Makati Mayor-elect Maria Lourdes Nancy S. Binay on Thursday said that she is planning to meet with the Taguig City mayor to discuss issues regarding the “Embo” villages.

“It’s easy for the two of us to talk. Makati still has assets in Taguig, so that’s one of the things we’ll talk about,” Ms. Binay said at a news briefing.

Last year, the Supreme Court had ruled with finality on a case upholding Taguig’s ownership of the 729-hectare Bonifacio City Complex and several adjoining neighborhoods. This included 10 enlisted men’s barrios or “Embo” villages, which Makati had delisted after the resolution of a territorial dispute with Taguig.

Ms. Binay said that she will ask for the courtesy resignation of all department heads of the Makati City government once she is in office.

“At some point, we will also ask for the courtesy resignation of department heads of Makati,” she added.

Local government officials are set to take office in their elected positions by June 30. — Adrian H. Halili

DBM OKs 10,000 non-teaching posts

PHILIPPINE STAR/EDD GUMBAN

THE creation of an additional 10,000 non-teaching positions has been approved by the Department of Budget and Management (DBM), it said on Thursday.

In a statement, the DBM said among the approved posts is Administrative Officer II with Salary Grade 11 for elementary, junior high school, and senior high school in all regions.

“I am happy to confirm that we’ve approved a total of 10,000 non-teaching positions to provide our teachers with necessary support. This is on top of the 16,000 newly created teaching positions in public schools that we have recently approved for school year 2025 to 2026,” Budget Secretary Amenah F. Pangandaman said.

The DBM Chief said this aims to lessen the administrative burden of teachers, which affects their mental health and overall well-being.

“When we opened these positions, we also spoke with our Secretary of the Department of Education, Secretary Sonny Angara. Our request was to hopefully fill the teaching and non-teaching positions we opened, especially since the start of classes is approaching. There are many of these positions, so we understand that it won’t be easy,” Ms. Pangandaman said in mix of English and Filipino. — Aubrey Rose A. Inosante

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