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Passage of stalled tax measures critical to meet revenue collection targets

PHILIPPINE STAR/RUSSELL PALMA

By Kenneth Christiane L. Basilio, Reporter

LEGISLATORS need to approve pending tax measures before the 19th Congress ends to help the government meet its 2025 revenue collection goals, Revenue Commissioner Romeo D. Lumagui, Jr. said.

Measures yet to be passed include an excise tax on single-use plastics, the rationalization of the mining fiscal regime, tax reforms in the Philippine capital markets, and a proposed hike to the motor vehicle road user charge.

The House of Representatives has approved the pending tax measures, some as early as 2022; while its counterpart measures are stalled at the Senate.

“It will be helpful for the BIR if these laws are passed for us to achieve our collection goal; because our collection goal assumes that these laws will be passed this year,” he told BusinessWorld on the sidelines of a House hearing last week.

“Our goals will be affected if these laws are not passed because these pending tax measures were included in the budgeting (of the 2025 national budget),” he added.

Expected government revenue was forecast at P4.64 trillion in 2025, against an approved P6.326-trillion national budget, according to the Finance department statement.

Direct tax revenue is expected to account for P4.3 trillion of government revenue, according to the Budget department. The BIR is expected to generate P3.2 trillion, while the Bureau of Customs contribution is pegged at P1.06 trillion.

Meanwhile, non-tax revenue and privatization of government assets are expected to supply P210 billion and P101 billion, respectively.

While the 19th Congress is scheduled to end on July 27, both the Senate and House of Representatives will go on a four-month break from February to June to give way for the 2025 midterm elections.

Albay Rep. Jose Ma. Clemente S. Salceda, who heads the House ways and means committee, said legislators will likely approve reforms to the mining fiscal regime and capital markets before the 19th Congress ends, citing close coordination between the legislative chambers.

“We definitely have time for the mining fiscal regime and the capital markets taxation reform,” he told BusinessWorld via Viber.

“We are moving towards a meeting of minds,” Mr. Salceda said, referring to efforts to tax the country’s capital markets. He hopes the Senate will adopt his proposal for a corporate pension scheme, which could expedite the bill’s approval by bypassing the bicameral conference committee.

Meanwhile, he said that provisions promoting mining industry transparency and curbing transfer pricing “are still in the Senate,” which hopes will be retained by the Senate.

The mining and capital markets measures could generate P6.3 billion and P8.2 billion a year respectively, according to Mr. Salceda.

Analysts said that passing major tax bills before the end of Congress is crucial for the government to meet its revenue collection targets. Failing to do so could widen the fiscal deficit, forcing the government to resort to borrowing to sustain spending.

“These tax measures are critical for achieving the government’s 2025 revenue collection goals as they aim to expand the tax base and address revenue gaps,” John Paolo R. Rivera, senior research fellow at the Philippine Institute for Development Studies, said via Viber.

“Failure to pass these tax measures could widen the fiscal deficit. The government might struggle to meet its revenue collection targets, forcing it to borrow more and potentially raising public debt levels,” he added.

The pending tax bills could face an uphill battle as legislators seeking reelection could be reluctant to support new taxes.

“It might be tricky for reelectionists to support a measure that will impose or increase taxes… because businesses and the public are normally averse to paying more taxes,” Jean S. Encinas-Franco, a University of the Philippines political science professor, said via Viber.

Politicians should make the case for prospective taxes to mitigate the risk of electoral blowback, according to Anthony Lawrence A. Borja, an associate political science professor at De La Salle University.

“All taxes face the same political challenge of trying to justify why the government should dip into private pockets for public funds,” he said via Facebook Messenger.

“If they want these passed, then lawmakers can power through the reluctance in their own ranks while providing convincing justifications for such measures,” he added.

They said it is possible that incumbents will let the next batch of legislators deal with the pending tax measures.

“They might reason out that they do not have the time or just leave it to the next batch of legislators to decide,” said Ms. Franco.

The government should explore “alternative revenue sources” if pending tax reforms are not approved to support the national budget without having to borrow, according to Jonathan L. Ravelas, senior adviser at professional service firm Reyes Tacandong & Co.

“If these measures are not passed, the government could explore alternative revenue sources such as increasing taxes on other goods and services, implementing new fees or levies, or seeking new foreign investment,” he said via Viber.

“The government could focus on improving tax collection efficiency and cracking down on tax evasion to ensure that existing revenue streams are maximized,” he added.

Meanwhile, Mr. Rivera said “adjustments” to the excise tax rates on fuel, alcohol and tobacco could help support government revenue.

The House is currently revisiting excise tax rates on tobacco products amid the “increasing illicit trade” in cigarette products, Mr. Salceda said. “We hope to fix the administration of excise taxes towards the end of the term (19th Congress).”

The revenue commission collected P130.91 billion in tobacco excise taxes in the first 11 months of 2024, well behind the pace needed to hit the P185.34-billion target.

ARTA hoping to enroll 200 LGUs in one-stop shop system this year

BW FILE PHOTO

THE Anti-Red Tape Authority (ARTA) has set a target of signing up 200 more local government units (LGUs) for the electronic Business One-Stop Shop (eBOSS) system this year.

“As of the moment, 112 LGUs are eBOSS compliant, and the target for 2025 is to have an additional 200 LGUs,” ARTA Deputy Director General Gerald G. Divinagracia said via Viber.

If realized, Mr. Divinagracia said that the year will end with over 300 eBOSS-compliant LGUs.

Republic Act (RA) No. 11032 or the Ease of Doing Business and Efficient Government Service Delivery Act requires LGUs to adopt eBOSS.

Asked about the locations of the 200, ARTA said they are largely in “the eight regions where we have people: Northern Luzon, Central Luzon, Southern Luzon, the Western Visayas, the Eastern Visayas, Northern Mindanao, Eastern Mindanao, and Western Mindanao,” he said.

The Philippines has over 1,600 LGUs.

He also noted that in the National Capital Region, three LGUs are still not eBOSS-compliant, including Makati City.

“In Makati, definitely, we are having a hard time. It is hard because they have their own system. The thing about Makati is that there’s a digital divide,” he told reporters on the sidelines of the SGV Tax Symposium last week.

“If you want to automate, everything will be online,” he said, but noted the need for “a good program that allows users to know how to use computers or the system, or maybe make the system more user-friendly.”

The Pasig LGU is also not yet eBOSS-compliant but is already implementing it.

“That is also in RA 11032. If you are not yet capable of full digitalization, you can have a BOSS,” he said. A BOSS system involves co-locating the business permit function with other agencies to ensure services follow the one-stop shop model.

However, he said that having a physical BOSS is inadequate, as demonstrated by the pandemic.

“I hope it will not happen again, but if there is another pandemic and we are locked down, then you can’t have a BOSS; you need an eBOSS,” he added.

He said that ARTA will target making the remaining Metro Manila eBOSS-compliant in the next two quarters. — Justine Irish D. Tabile

ERC proposes voluntary scheme for net metering

ROBERT LINDER-UNSPLASH

THE Energy Regulatory Commission (ERC) said it is proposing to make the installation of renewable energy certificate (REC) meters voluntary.

This was among the amendments the ERC is proposing to Resolution No. 6, Series of 2019, or the Resolution Adopting the Amendments to the Rules Enabling the Net-Metering Program for Renewable Energy.

“The installation of the REC meter shall be voluntary. The DU (distribution utility) shall be entitled to an RE certificate resulting from the net-metering arrangement,” the commission said.

It said that an REC must be based on the gross generation as measured through the REC meter and must be credited as compliance with the DU’s obligations under the Renewable Portfolio Standards (RPS).

RECs are issued to participants in the RPS scheme, indicating the energy sourced, produced, and sold or used is from eligible RE systems.

Net metering allows power users that generate their own electricity via RE to sell some of their excess output to the grid, with the proceeds credited against their power bills.

Under RPS, DUs, electric cooperatives, and retail electricity suppliers are required to source a portion of their energy supply from eligible RE sources.

Among other key amendments being considered by the ERC are allowing the banking of net-metering credits for transfer in case property ownership changes.

In such instances, the credits accrued by the original property owner will be transferred to the new owner, provided they are compliant with the requirements, which may include a new net-metering agreement with the DU.

“To improve transparency, the ERC also proposes to mandate DUs to prominently display on their websites an itemized breakdown of their generation charges, along with their hosting capacities. These capacities must be delineated on both a substation and per-feeder basis, using a format prescribed by the Commission,” the commission said.

The ERC is inviting comment on the draft amendments by Jan. 17. — Sheldeen Joy Talavera

Unveiling the opportunities of the CREATE MORE Act

IN BRIEF:

• The CREATE MORE Act signals a renewed commitment to fostering a more attractive and competitive environment aimed at attracting more FDI into the economy.

• The Act intends to help the country gain a more significant share in the near-shoring activities of manufacturing plants and support the continued growth of the BPO industry, among others.

The government is taking bold steps to significantly enhance the investment landscape and address investor concerns with the signing of Republic Act No. 12066 (Maximize Opportunities for Reinvigorating the Economy) or the CREATE MORE Act. This landmark legislation signals a renewed commitment to fostering a more attractive and competitive environment for businesses. By introducing expanded tax incentives, streamlining VAT processes, and clearly defining eligibility criteria, the CREATE MORE Act aims to stimulate economic growth and position the Philippines as a prime destination for foreign direct investment (FDI).

Over the past three years, the Philippines has faced challenges in attracting FDI compared to its neighbors. The World Bank estimates that from 2021 to 2023, Indonesia outpaced the Philippines by 122% in FDI inflows. Similarly, Vietnam and Malaysia surpassed the Philippines by 70% and 41%, respectively. Thailand also surpassed the Philippines by 10%. However, with the CREATE MORE Act, the government is poised to arrest this trend and create a more vibrant and investor-friendly economy.

WHAT RBEs CAN EXPECT
Pre-CREATE RBEs are currently enjoying the sunset provisions under the CREATE Act which provides that those currently enjoying 5% Gross Income Tax (GIT) are given until April 2031 to continue under this regime. However, with the effectivity of CREATE MORE, these pre-CREATE RBEs have been given an extension to Dec. 31, 2034 to continue enjoying the 5% GIT. The clarification on VAT zero-rating as discussed below will also have a positive impact on pre-CREATE RBEs.

The CREATE MORE Act introduces the concept of High-Value Domestic Market Enterprise (HVDME) in addition to the existing Registered Export Enterprises (REEs) and Domestic Market Enterprises (DMEs). HVDMEs refer to registered domestic market enterprises with an investment capital exceeding P15 billion and are engaged in sectors classified as import-substituting, or with export sales in the immediately preceding year of at least $100 million or its equivalent. In other words, HVDMEs can have high export sales but fall short of the 70% threshold requirement to be considered REEs. In terms of incentives, HVDMEs appear to be a hybrid of REEs and DMEs since HVDMEs can enjoy VAT zero-rating on local purchases, VAT exemption on imports, and customs duty exemption, just like an REE. However, unlike REEs, HVDMEs are not eligible for 5% SCIT, which is also true for DMEs.

Another interesting provision is that RBEs now have the option to entirely skip the Income Tax Holiday (ITH). This is particularly advantageous for RBEs that anticipate losses during the initial years following the commencement of their commercial operations. As it is, RBEs now have more flexibility in electing the incentive package it deems most beneficial from a global perspective, taking into account the potential impact of BEPS 2.0.

DMEs can take advantage of favorable developments, as they are now eligible for the same duration of income tax-based incentives as REEs of up to 17 years if the project is approved by the Investment Promotion Agency (IPA), or has investment capital not exceeding P15 billion. Meanwhile, those approved by the Fiscal Incentives Review Board (FIRB) with investment capital exceeding P15 billion can enjoy up to 27 years.

Under the CREATE Act, RBEs generally preferred the 5% Special Corporate Income Tax (SCIT) due to its perceived advantages and the simplicity of its calculation. However, with the CREATE MORE Act, those enjoying the Enhanced Deductions Regime (EDR) will get to enjoy the reduced Corporate Income Tax rate of 20%. Moreover, the additional deduction for power expenses is increased from 50% to 100%, among others. This may be significant for companies, especially those in energy-reliant sectors like manufacturing and heavy industries, considering that high power costs, one of the long-standing challenges of operating in the Philippines, have generally been a deterrent to investment, especially from manufacturers with substantial energy requirements.

For RBEs enjoying 5% SCIT, the good news is the SCIT now covers local fees and charges. These two were explicitly excluded in the CREATE Act. Meanwhile, RBEs enjoying ITH or EDR will now be subject to a local tax of up to 2% (otherwise called the RBE Local Tax or RBELT), which is based on the gross income. The tax base to compute for the RBELT is the same as the MCIT, which is basically gross profit.

What’s interesting about RBELT is that this is already in lieu of all local taxes, local fees, and charges. This effectively tackles the concerns of RBEs encountering difficulties in renewing their business permits. However, for its imposition, the Local Government Units (LGUs) must pass an ordinance, and it is only then that the RBEs can avail of the RBELT and ascertain the exact rate applicable.

Another piece of exciting news for REEs is that VAT incentives are no longer timebound. This means that REEs can enjoy the VAT incentives for the entire duration of their registration provided that they continue to meet the conditions. Even after the expiration of the registration period, export-oriented enterprises, meaning those not necessarily registered in any IPAs, will get to enjoy the VAT incentives, subject to compliance with certain conditions. This is a very welcome development as this will address the cash flow issues arising from input VAT accumulated by exporters.

Customs duty exemption still seems to be timebound. As such, after the end of the registration period and expiration of income tax-based incentives, REEs no longer enjoy customs duty exemption unless there is an applicable Free Trade Agreement (FTA) with the country of origin. For DMEs, the customs duty exemption is coterminous with its income tax-based incentives.

The phrase “directly and exclusively used” has been one of the main concerns of the investors when the CREATE Act was implemented since it appears to be very limiting and restrictive. This has been abandoned in the CREATE MORE Act, which now uses the phrase “directly attributable” and refers to goods and services that are incidental to and reasonably necessary for the registered activity or export activity of the export-oriented enterprise. These include janitorial, security, financial, consultancy, marketing and promotion services, and services rendered for administrative operations such as human resources, legal, and accounting. Notably, the enumerated purchases are the exact purchases explicitly provided in RR No. 3-2023 as purchases that are previously excluded from VAT zero-rating. The determination of what constitutes as “directly attributable” will be made by the IPA.

It is important to highlight that the option to choose an incentive package is irrevocable and that it will be elected at the time of application. As it is, given several key amendments in the 5% SCIT and EDR, a simulation exercise is necessary for the companies to arrive at a decision that will be most advantageous for their intended investment.

REINVIGORATING THE ECONOMY
Inherent in the passage of a new law are the questions which we hope to be addressed in the coming weeks once the implementing rules and regulations are issued. With the end-goal to make the Philippines more attractive to investors, the Act intends to help the country gain a more significant share in the near-shoring activities of manufacturing plants and support the continued growth of the BPO industry, among others.

It remains to be seen though how these changes will influence economic indicators over time, but clearly the CREATE MORE Act reflects the government’s commitment to fostering an environment where businesses can thrive and contribute meaningfully to national prosperity.

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinions expressed above are those of the authors and do not necessarily represent the views of SGV & Co.

 

Cheryl Edeline C. Ong is a tax partner and Virnee Agot-Ting is a tax senior manager of SGV & Co.

China emboldened to occupy EEZs of other countries if unchallenged — PCG

PHILIPPINE COAST GUARD PHOTO

THE PHILIPPINE Coast Guard (PCG) on Sunday said China might infringe upon other countries’ exclusive economic zone (EEZs) if its vessel deployments in Philippine waters remain unchallenged.

This was after China’s largest coast guard ship returned to the Philippines’ EEZ in the South China Sea and tried to move closer toward the Zambales coastline.

Beijing’s goal is “to normalize such deployments, and if these actions go unnoticed and unchallenged, it will enable them to alter the existing status quo,” Philippine Coast Guard spokesman Jay Tristan Tarriela said in a statement, citing satellite imagery.

“This strategy of normalization, followed by altering the status quo and ultimately operationalizing their illegal narrative, has consistently been part of the Chinese playbook,” he added.

The PCG on Saturday marked the eighth day of “monitoring and vigilant pursuit” of China Coast Guard vessels “illegally operating” within the Philippine EEZ.

The PCG first reported the presence of China Coast Guard-5901 on Jan. 5, saying it had promptly dispatched the 44.5-meter BRP Cabra after the “monster ship” was detected using Canada’s dark vessel detection system.

The ship’s erratic movements within the Philippine EEZ “indicate it is not engaged in innocent passage,” the PCG said, adding that it was “conducting a law enforcement operation, claiming jurisdiction over these waters as belonging to the People’s Republic of China.”

In the afternoon of Jan. 8, the PCG said China’s monster ship had left the coastline of Zambales and was set to be replaced by China Coast Guard-3103, which left Guangdong Province on Jan. 7.

But on Jan. 9, the PCG noted that China Coast Guard vessel-3103 was being replaced by vessel 3304, which was “illegally sailing” about 70-80 nautical miles (129.6-148.2 kilometers) off the coast of Zambales on Jan. 10.

On Saturday, the PCG said BRP Teresa Magbanua gradually pushed away vessel 3304 from the coastline of Zambales, prompting Beijing to redeploy its monster ship in an attempt to outmaneuver the Philippine ship.

“Despite the imposing size of CCG-5901, the PCG vessel has boldly approached its starboard side at a close range, effectively hindering the China Coast Guard vessel’s attempts to move towards the Zambales coastline,” the PCG said.

It said the monster ship was positioned 97 nautical miles off the coast of Zambales.

Mr. Tarriela said China could be emboldened to infringe upon the EEZ of other nations such as Vietnam, Brunei, Malaysia and Indonesia if the international community remains passive amid the “illegal deployment” of China’s maritime forces.

Executive Secretary Lucas P. Bersamin, who heads the National Maritime Council, earlier said the Philippines government views the monster ship’s presence within the Philippine EEZ “with concern.”

“The Coast Guard, our Coast Guard, has always been very alert in following up the presence of that monster ship.”

Mr. Tarriela said the PCG would continue to “actively expose” to the global community what it said were unlawful deployments of Chinese vessels, “ensuring that such actions are not normalized and that this bullying behavior does not succeed.” — Kyle Aristophere T. Atienza

Economists: Senate and House should prioritize power sector reforms

PHILIPPINE STAR/EDD GUMBAN

By John Victor D. Ordoñez and Kenneth Christiane L. Basilio, Reporters

CONGRESS should tackle measures that seek to ensure transparency and accountability in power generation via changes to the two-decade-old Electric Power Industry Reform Act (EPIRA) to ensure fair electricity prices for Filipinos amid constant blackouts, economists said at the weekend, as sessions resume this week.

“Addressing longstanding power issues should be a top priority,” John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said in a Viber message. “Amending EPIRA can help reduce electricity costs, improve reliability and attract investments in renewable energy.”

The House of Representatives would focus on exercising its oversight functions, continuing inquiries on food smuggling and mounting power prices, Senior Deputy Speaker and Pampanga Rep. Aurelio D. Gonzales, Jr. said in a separate statement.

The chamber would also take up bills seeking to improve the productivity of small businesses, amending the Universal Healthcare Act, and start discussions on the creation of a “national flood control plan,” he added.

“We will continue to strengthen the oversight power of the House to address irregular activities… [and] wrongful practices that lead to high prices of food and electricity,” he said. “We are uncovering the mechanisms that allow cartels to thrive, and this House is determined to dismantle these networks of greed.”

Mr. Rivera said Congress should also push bills that would incentivize investments in the renewable energy sector to help the country diversify its energy mix.

The Philippines is under pressure to find other sources of indigenous energy with the imminent depletion of the Malampaya gas field, where the country gets a fifth of its power requirements. The gas field is expected to run out of easily recoverable gas by 2027.

The government aims to raise the share of renewable energy in the country’s energy mix to 35% by 2030 and to 50% by 2040 from 22% now.

Senators and congressmen return from holiday break to tackle pending priority measures, such as proposed changes to EPIRA, the Rightsizing bill and a measure that seeks to enhance the country’s fiscal regime for the mining sector, among other measures.

“A better direction for the power industry would be steady measures towards nationalization with much greater public transparency and accountability to check performance,” Ibon Foundation Executive Director Jose Enrique “Sonny” A. Africa said in a Viber message. “Unfortunately, the EPIRA fundamentally gives unwarranted emphasis on private profit-seeking players.”

In his third address to Congress, President Ferdinand R. Marcos, Jr. sought a review of EPIRA to address issues hounding the energy sector, particularly high energy prices.

The House energy committee in November approved a bill that would give the Energy Regulatory Commission (ERC) “quasi-judicial, quasi-legislative and administrative” powers to fast-track the resolution of pending applications and cases.

Energy Undersecretary Sharon S. Garin earlier urged senators to amend the Energy Regulatory Commission (ERC) charter to allow price increases without regulatory approval as long as these fall within a set benchmark or bracket.

This would allow the ERC to do away with the cumbersome approval process that power distributors have complained about, she told a Senate energy committee hearing that is looking at changes to the 23-year-old EPIRA.

“The Senate leadership should try to do more, particularly amendments to the EPIRA, as this might translate to better and lower prices for consumers nationwide,” Terry L. Ridon, a former congressman and a public investment analyst and convenor of think tank InfraWatch PH, said in a Facebook Messenger chat.

Mr. Rivera said a measure that seeks to cut the tax on stock transactions from 0.6% to 0.1% would encourage more Filipinos to invest in the stock market.

“Reducing the stock transaction tax can also stimulate activity in Philippine capital markets, attract more foreign and local investments and promote financial inclusion,” he said. “These reforms would also enhance the capital market’s role as a source of funding for businesses.”

Senator Sherwin T. Gatchalian, who filed Senate Bill No. 2865 or the Capital Markets Efficiency Promotion Act earlier said lowering the stock transaction tax would make the Philippines’ capital market more competitive with its regional peers.

Citing a forecast by the Philipine Stock Exchange, the senator said the lowered 0.1% stock transaction tax would boost stock trading to P4.9 trillion by 2029.

But Mr. Africa said the government is better off taxing billionaires and big businesses to generate revenues for investment in social services, agriculture and for micro, small and medium enterprises (MSME).

“Cutting taxes on financial transactions just benefits wealthy and institutional investors at the expense of public revenues,” he said. “This will just add further pressures for fiscal austerity, which always disproportionately falls on social services.”

Congress will be in session until Feb. 7 before it adjourns for four months to give way for the 2025 midterm elections.

Filipinos on May 12 will elect 12 new senators and members of the House. All local positions are also up for grabs.

Mr. Gonzales said they would discuss a bill that seeks to enhance the productivity of MSMEs through shared-use equipment and resources, which could help make them become “globally competitive.”

Amendments to the Universal Healthcare Act would also be tackled to “improve benefit packages and adjust premium contribution.”

The House would also look at establishing a unified flood control program nationwide to address recurring flooding in disaster-prone areas, he added.

Congressmen will also deliberate on pending education bills including proposals to create a voucher program for private senior high school students and set up a private education bureau, Mr. Gonzales said.

Philippines to open 4 more foreign offices — Marcos

PRESIDENT FERDINAND R. MARCOS, JR. — PPA POOL/NOEL B. PABALATE

THE PHILIPPINES will open four foreign offices in North America and the Asia-Pacific region, according to President Ferdinand R. Marcos, Jr.

This, as the Southeast Asian nation broadens its diplomatic reach and pushes an “independent foreign policy.”

The Philippines opened four embassies in Europe and Latin America last year, Mr. Marcos told the diplomatic corps during the vin d’honneur at the presidential palace in Manila late on Saturday.

The country’s foreign service posts this year will reach 102 in total, with more missions set to open, he added.

By the end of 2025, the Philippines will have had 102 posts, effectively widening its reach globally, he said.

“We are poised to establish more down the road,” Mr. Marcos said. “We welcomed the opening of some embassies in Manila in 2024, such as Bahrain and Slovenia, and are eager to welcome new foreign missions in the years to come, such as from Central Asia.”

Mr. Marcos said his government’s pursuit of an independent foreign policy has allowed the Philippines “to function and flourish in the complex web of interactions with various international actors.”

The Philippines, through international partnerships, has increased its bilateral engagements and cooperation with traditional partners and new allies in key economic sectors and security areas.

Manila has boosted its partnership with the US and its allies in the Indo-Pacific region amid growing tensions with China in the South China Sea.

In 2023, it gave the US access to four more military bases on top of the five existing sites under their 2014 Enhanced Defense Cooperation Agreement.

The Philippine leader said his country’s foreign policy would remain anchored on “peace” and would continue fostering cooperation. It will help ensure international law is “faithfully complied with.” — Kyle Aristophere T. Atienza

Filipino workers favor stability, flexibility and work-life balance — JobStreet study

BW FILE PHOTO

ALMOST 7 out of 10 Filipino employees place stability and work-life balance at the forefront when choosing where to work, urging employers to offer flexible working options such as working from home, a report found.

According to JobStreet by SEEK’s Decoding Global Talent Report: GenAI Edition, which surveyed over 6,000 Filipino workers of various ages nationwide, 67% of Filipino talents prefer stable jobs with a good work-life balance.

They are also more likely to stay with companies that offer flexible working options, such as work-from-home or hybrid arrangements.

“Filipino employees aspire to work for reputable companies that offer flexibility, stability with good work-life balance, and the chance to explore new professions through reskilling,” it said.

Additionally, the report highlighted that Filipino talents favor a traditional full-time, five-day workweek and are more inclined to take on multiple full-time jobs rather than part-time roles.

“Filipino candidates seek companies that provide clear career growth opportunities, with the potential to rise into leadership positions,” it added.

Almost half of Filipino workers (49%) satisfied with their jobs are also less likely to consider leaving, compared to those who are not.

The report highlighted the increasing significance of factors beyond salary, such as work-life balance, meaningful relationships and opportunities to work for organizations that positively impact society.

It also noted that mental health and overall well-being services have become a “critical priority” for workers, reflecting a shift in workplace expectations and the need for employers to create a supportive and holistic work environment.

Achieving this can be done by establishing cross-cultural teams and training managers on unconscious bias, ensuring that everyone’s culture and beliefs are respected and valued, it added.

“Access to relevant content such as stress management and psychological safety should be seen as essential rather than merely a ‘nice to have’,” it added.

Additionally, when employers promote learning initiatives, it motivates employees to reach their full potential in the workplace, which can further encourage them to remain with the company.

“By nurturing a robust learning culture, hirers can ensure their employees see a bright future within the organization, leading to higher engagement and retention,” it noted.

STRONG LEARNING CULTURE
Lastly, four out of ten Filipino workers are willing to dedicate time to learning new skills at least once a week, showcasing a strong learning culture among Filipino talent.

Employers can leverage this by offering personalized skill-building opportunities, the report said.

Laborers are particularly interested in developing analytical and job-specific skills and enhancing creativity and project management abilities, it noted.

Filipino professionals prefer training methods such as videos, online tutorials, workshops, seminars, and learning from their professional networks, it added.

“By investing in upskilling and reskilling initiatives that align with these preferences, employers can create a motivated, future-ready workforce,” it said.

This not only equips employees with the tools they need to excel but also fosters loyalty and long-term commitment to the organization.

“The Filipino workforce’s dedication to learning is a tremendous asset that drives innovation and long-term success,” Jobstreet by SEEK, Philippines Head of Marketing Joey Yusingco said in a statement.

“Moreover, the commitment to growth and adaptability is essential for retaining talent and equipping individuals to adjust and thrive in an ever-changing work environment.” — Chloe Mari A. Hufana

Trilateral meeting moved — Palace

US PRESIDENT Joseph R. Biden, Jr. (right) shakes hands with Philippine President Ferdinand R. Marcos, Jr. during a meeting at the White House in Washington, D.C., May 1, 2023. — PHILIPPINE STAR/KRIZ JOHN ROSALES/PPA POOL

THE VIRTUAL meeting among American President Joseph R. Biden, Japanese Prime Minister Shigeru Ishiba, and Philippine President Ferdinand R. Marcos, Jr. has been postponed, according to Malacañang.

The so-called trilateral call was originally scheduled for Jan. 12 but Acting Presidential Communications Secretary Cesar B. Chavez said the US had requested to move it to 7 a.m. the following day.

He cited recent wildfires in Los Angeles.

“It was conveyed that this was due to the ongoing wildfires in Los Angeles.”

The Palace has not disclosed the agenda of the virtual trilateral meeting.

Mr. Marcos, Mr. Biden, and former Japanese Prime Minister Fumio Kishida held a trilateral meeting in Washington in April last year.

The three countries held a maritime cooperative activity in December 2024, in line with their commitment to keeping peace and freedom of navigation in international waters and in the Indo-Pacific region.

The US and Japan have been on forefront of international condemnation of China’s intrusions into Philippine waters in the South China Sea, which Beijing claims almost in its entirety.

Security analysts have said the three-way partnership is likely to continue under President-elect Donald J. Trump, who promoted the concept of a “free and open Indo-Pacific” in his first US presidency. — Kyle Aristophere T. Atienza

PHL to help OFWs in Lebanon

PHILSTAR FILE PHOTO

THE PHILIPPINE Embassy in Beirut has vowed to double its efforts to aid Filipinos caught in war-torn Lebanon and the Middle East return to Manila through its voluntary repatriation programs.

“The Philippine Embassy in Lebanon commits to bring home every Filipino by any means possible due to the developing political and security situation in Lebanon and in the larger Middle Eastern region,” it said in a statement.

The Department of Foreign Affairs (DFA) earlier placed Lebanon under Alert Level 3 and Crisis Alert Level 3, which suspends the return of contract workers to the West Asian country.

Lebanon and Israel had agreed to a 60-day ceasefire amid Syria’s political transition after the fall of the Al-Assad government.

The embassy said it worked with the Philippine Embassy in Damascus to process repatriation applications, citing a group of 25 Filipino workers and four children being repatriated on Dec. 26.

The 29 Filipinos was the largest batch of repatriated Filipinos by the embassy in the last two years after the fall of the Al-Assad Rule on Dec. 8.

Both embassies helped the group pass through the Masna Border between Lebanon and Syria.

“The Philippine Embassy in Lebanon coordinated with Lebanese Immigration General Security to secure clearances for the incoming Filipinos at the border and procured the tickets for the repatriation group,” it said.

More than 3,000 people have died in Lebanon since late September, Reuters reported. Israeli airstrikes and widespread detonation of homes destroyed more than 40,000 housing units in the country’s border, it said, citing Lebanon’s state news agency. — John Victor D. Ordoñez

LGU tax share not shortchanged

DOF.GOV.PH

THE Department of Finance (DoF) said it has been adhering to the Mandanas-Garcia ruling and computation for local governments’ shares in national taxes.

In a statement on Sunday, the department said it ensures the “strict compliance with the Supreme Court decision and relevant laws in determining the National Tax Allotment (NTA) shares for local government units (LGUs).”

“Nothing is shortchanged. We are very much welcome and open to having continued dialogues with our LGUs to help them strengthen their fiscal capacities and optimize resource utilization to deliver more and better services to Filipinos,” Finance Secretary Ralph G. Recto said.

This after a group of local government unit leaders called on the department to disclose the accounting of the NTA as they claimed they were being “shortchanged” of their shares.

LGUs are given a 40% share of the National Government’s tax revenue under the Mandanas-Garcia ruling.

The DoF said it refers to the Supreme Court decision as well as the 1987 Constitution when determining the deductions.

The Finance chief will also schedule a meeting with LGUs this week to discuss the matter, it added. — Luisa Maria Jacinta C. Jocson

‘Side effect’ label on meds urged

PHILSTAR FILE PHOTO

THE Food and Drug Administration (FDA) should mandate drug companies to plaster warnings informing of possible side effects on the medical products they sell, a congressman said on Sunday.

“If cigarettes… have such labels, then it is only right that all medicinal products, especially those we ingest or inject into our bodies, should also have warning labels about adverse side effects,” Surigao del Norte Rep. Robert Ace S. Barbers said in a statement.

He said he’s willing to draft a bill requiring drug manufacturers to affix side effect warnings on medicines if the FDA has no compelling authority over them.

Mr. Barbers’ call for transparency about possible adverse medical events comes after he received concerns that prolonged use of some maintenance medication has led to further illness. — Kenneth Christiane L. Basilio

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