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Kickstarting the PHL’s Comprehensive Archipelagic Defense Concept: The role of the PHL-Aussie strategic partnership

PRESIDENT Ferdinand R. Marcos, Jr. together with Australian Prime Minister Anthony Albanese signed the Joint Declaration on Strategic Partnership between Philippines and Australia at Malacañan Palace on Sept. 8, 2023. — YUMMIE DINGDING/ PPA POOL

In January 2024, Secretary of National Defense Gilberto Teodoro announced a new defense concept, the Comprehensive Archipelagic Defense Concept (CADC). The CADC is premised on the assumption that as an archipelagic country, the Philippines’ land mass is limited while its population is increasing, causing the need for resources to expand exponentially.

Since 2011, Manila has explored the prospect of surveying and exploiting the natural gas and oil deposits on Reed or Recto Bank, which is inside the country’s exclusive economic zone (EEZ). However, Mr. Teodoro observed: “The country’s resources in its maritime territory are illegally and unilaterally encroached upon by a country using a distorted nine-10-dash line, which nobody in the world accepts or recognizes since this would open a rewriting of international law. This is because China claims almost 90% of the South China Sea.”

The CADC requires the Philippine government to project the Armed Forces of the Philippines’ (AFP) capabilities in the Philippines’ EEZ and develop its strategic depth to enhance the defense of its archipelagic territory. This aims to address the Philippines’ strategic vulnerabilities and enhance the AFP’s capability to protect national interests through specific long-term plans. The AFP’s primary limitation is the inadequate naval and aerial assets of the Philippine Navy and Philippine Air Force. This strategic limitation can be attributed to the AFP’s continuous and protracted counterinsurgency campaigns that have shaped its trilateral structure, such as the Philippine Army, which has reconfigured itself to neutralize several insurgent groups since the late 1940s. The AFP urgently needs to develop its Maritime and Air Defense (MAD) capabilities to focus on the Philippines’ maritime and air domain, where the country has sovereign rights to explore, extract, and preserve the aquamarine environment and resources according to international law. An adequate, credible, and effective Philippine MAD is expected to protect, defend, and secure against foreign intrusion, extraction, and exploitation and to support law enforcement operations against transnational crimes within the country’s 200 nautical mile EEZ and 350 nautical mile continental shelf.

However, the implementation of the CADC faces two major obstacles: First, the prospective financial cost of this defense concept and the Filipino nation’s inclination to shoulder the enormous bill for the country’s expected increase in defense spending. Second, the willingness and capability of the US and its other treaty allies to assist the Philippines in jumpstarting and supporting the CADC, both technically and financially.

THE PHL-AUSSIE SECURITY PARTNERSHIP
Although an Indo-Pacific power, Australia is not directly involved in the South China Sea dispute. However, it has strategic interests in maintaining stability and order in the disputed waters. Canberra views Beijing’s expansion in this important strategic waterway as one of the dangerous flashpoints in the Indo-Pacific region. Canberra has voiced its grave concern over China’s construction and militarization of the artificial islands in the maritime domain, which the arbitral tribunal ruled as located within the Philippine EEZ. Australia has openly expressed that Chinese expansion and coercive actions against other claimant states in the South China Sea are grave threats to the freedom of navigation and the rules-based regional order.

This accounted for the dramatic improvement in Philippine-Australian security relations during the Duterte Administration. This improvement in the two countries’ security partnership was reflected in the following bilateral defense arrangements.: 1.) Australian Embassy Note 482/17 on Defense Cooperation between the AFP and the Australian Defense Force; 2.) Operation Augury – Philippines, 2017; 3.) the September 2018 Terms of Reference on Cooperation between the major services of the Philippines and Australian armed forces; and, 4.) the 2021 Philippine Australia Mutual Logistic Support Arrangement.

Under President Ferdinand Marcos, Jr., the Philippine-Australia security partnership has improved even more, with the administration adopting a firmer stance on the country’s maritime claims and doing much to publicize Chinese intrusion and coercive actions against the Philippines to the outside world.

In May 2023, Australian Foreign Minister and Senator Penny Wong’s four-day visit to the Philippines provided the impetus for developing the Philippine-Australian security partnership. She met Foreign Affairs Secretary Enrique Manalo to discuss issues of mutual interest, such as defense, security partnerships, development cooperation, trade and investment, and people-to-people ties. She announced initiatives to enhance maritime cooperation and more considerable official development assistance to the Philippines in 2023 and 2024. She said that maritime cooperation initiatives include technical assistance and capacity building for the Philippine Coast Guard; equipment, skills, and technology transfer to improve maritime domain awareness and marine protection; and assistance to mitigate the oil spill’s environmental impact off Mindoro.

On Sept. 8, 2023, President Marcos and visiting Australian Prime Minister Anthony Albanese signed a Joint Declaration on a Strategic Partnership between the Philippines and Australia in Manila. The new agreement effectively elevated the two countries’ security partnership from comprehensive to strategic. Several economic measures accompanied the upgrade of bilateral relations between the two countries. However, the security component drew the most attention, with the two US allies agreeing to convene an annual meeting of their defense ministers, and Australia confirming its commitment to hold joint naval patrols with the Philippines through the South China Sea.

All these developments point to Australia’s growing importance as one of the Philippines’ strategic partners, which is helping the AFP jumpstart the implementation of the CADC.

 

Dr. Renato Cruz De Castro is a trustee and convenor of the National Security and East Asian Affairs Program of the Stratbase ADR Institute.

Philippine F&B companies told to fast-track automation

FREEPIK

THE PHILIPPINE food and beverage (F&B) industry should quicken their automation push to boost efficiency and scale operations, according to a Malaysian software firm.

“The Philippines has a very mature food and beverage business environment,” Benny Chan, business development director at Codemax Pte Ltd., told BusinessWorld on the sidelines of Thaifex Horec Asia 2025 in Bangkok.

“The problem is that they are very much still dependent on labor and they have very much room to improve their efficiency and have a very big potential to grow,” he added.

Codemax, which provides automation and software solutions to the F&B sector, is interested in working with Philippine companies, Mr. Chan said.

He said they see the Philippines as a “huge market” and are in talks with a “Philippine representative” for their expansion plan.

He added that big companies and conglomerates in the Philippines are still very “backward,” relying on manual labor and processes, which could hinder operations.

The National Economic and Development Authority earlier said the economy could gain P2.6 trillion annually if domestic businesses adopt AI solutions.

The International Monetary Fund has cited data showing the Philippines’ share in the global outsourcing market at 15%. In 2024, it ranked 56th out of 188 countries in the Government Artificial Intelligence Readiness Index. 

“The purpose of having automation is to make things standardized, streamlined and consistent,” Mr. Chan said. “The biggest problem faced by [F&B companies] is that they have an issue maintaining the consistency across different locations, especially when they scale.” — J.V.D. Ordoñez

PXP raises stake in Forum Energy to 97.88%

PXPENERGY.COM.PH

PANGILINAN-LED upstream oil and gas firm PXP Energy Corp. has increased its stake in subsidiary Forum Energy Ltd. through a share swap with Hong Kong-based Tidemark Holdings Ltd., listed mining firm Atok-Big Wedge Co., Inc. (AB) said on Tuesday.

Under the transaction, PXP issued 430.24 million common shares valued at P1.56 billion to Tidemark in exchange for 24.13 million Forum Energy shares, AB disclosed to the stock exchange on Tuesday.

The shares were issued at P3.62 each.

Tidemark, a wholly owned subsidiary of AB, and PXP were both shareholders of Forum Energy, a company incorporated in the United Kingdom.

Forum Energy, through its wholly owned subsidiary Forum (GSEC 101) Ltd., is the operator of Service Contract (SC) 72 with a 70% participating interest. 

SC 72 covers the Recto Bank basin in the West Philippine Sea.

The Securities and Exchange Commission approved the transaction last month.

Following the share issuance, PXP’s effective ownership in Forum Energy rose to 97.88% from 77.88%, while Tidemark fully exited its direct stake in the company. PXP’s effective interest in SC 72 also increased to 68.5% from 54.5%. 

Tidemark now holds an 18% stake in PXP’s total issued and outstanding capital stock.

PXP and Forum Energy said last month that they remain committed to SC 72 and SC 75, an exploration block in Northwest Palawan, despite the extended force majeure imposed on both contracts. — Sheldeen Joy Talavera

Two rural banks merge

THE BANGKO SENTRAL ng Pilipinas (BSP) has announced the approval of the merger of Zambales Rural Bank, Inc. and Bridgeway Rural Banking Corp., with the former being the surviving entity.

In a circular letter signed by Deputy Governor Chuchi G. Fonacier, the BSP said the Securities and Exchange Commission (SEC) approved the articles and plan of merger of the two banks on Feb. 18.

Their amendments were also executed in April and August last year, respectively, by and between, Zambales Rural Bank, Inc., the surviving bank, and Bridgeway Rural Banking Corp., the absorbed bank.

The assets and liabilities of Bridgeway will be transferred to and absorbed by Zambales Rural Bank, the BSP added.

“The merger took effect on Feb. 18, 2025. Zambales Rural Bank, Inc. commenced operations as merged bank on Feb. 21, 2025.”

Zambales Rural Bank was established in 1974 as a domestic rural banking corporation. It offers savings, demand and time deposit products, as well as short-term and long-term loans to rural clients covering commercial, agricultural and housing needs, among others.

The bank operates in Zambales, Bataan, Pampanga and Baguio. It currently has 12 branches, according to the latest available data on its website.

The BSP has been encouraging rural banks to consolidate as part of its Rural Bank Strengthening Program (RBSP) that was launched in 2022.

The RBSP features five time-bound tracks that aim to strengthen the capital position of rural banks: merger/consolidation, acquisition/third-party investment, voluntary exit/upgrade of banking license, capital buildup program, and supervisory intervention.

In September 2022, the BSP raised the minimum capital requirement for rural banks with a head office and as many as five branches to P50 million, while those with six to 10 branches must have a minimum capital of P120 million. Those with more than 10 branches must have a capital of at least P200 million. Rural banks have until 2027 to comply with the new rules.

Rural banks booked a combined net income of P11.56 billion in 2024, rising from P8.22 billion in 2023, latest central bank data showed.

There were 382 rural banks in the Philippines at end-February, down from 388 a year prior, BSP data showed. — Luisa Maria Jacinta C. Jocson

Dulaang UP takes on the climate crisis

THE SECOND offering of Dulaang Unibersidad ng Pilipinas’ (Dulaang UP) 47th season is tackling pressing issues on the climate crisis through a twin bill: one play exploring local mythological creatures’ perspective of a disrupted balance, and the other depicting the experiences of everyday Filipinos who attempt to address the crisis.

Mga Anak ng Unos, which runs from March 28 to April 13, combines these two brand-new plays to “deepen our understanding of climate realities.”

“It looks at critical convergences in theater-making, nature, and the human condition,” said Dulaang UP artistic director Issa Manalo Lopez during a March 8 press visit for the forthcoming twin bill.

“These performances explore how human ways of living shape and dictate ecological conditions driving destruction and endangering the existence of all life forms. They arise from the urgent need to respond to the global climate emergency as the earth’s temperature surpasses the 1.5-°C critical threshold, an escalation marked by catastrophic weather that disproportionately intensifies climate change effects and impacts on developing nations,” Ms. Lopez said.

Mga Anak ng Unos is the first of Dulaang UP’s offerings under “DUP INNOVATE,” a lab dedicated to the creation of new, developing, and original works from Filipino theater practitioners.

GODS AND CREATURES
The first play is Sa Gitna ng Digmaan ng mga Mahiwagang Nilalang Laban sa Sangkatauhan, written by Joshua Lim So (who is in the Carlos Palanca Award for Literature Hall of Fame), under the direction of José Estrella. As the title hints at, the play shows bathalas (gods) and mythological creatures in the middle of a war against the sangkatauhan (humanity).

As the battle between the gods and humanity unfolds on stage, audience members are compelled to ask if we are indeed at war and if there is still time to change the course of the conflict.

“The worldbuilding in the script is from actual folk tales. We have gods who sustain themselves through humans, alliances of a military nature in their war on mankind, and many more,” Popo Amascual, the play’s assistant director, told BusinessWorld.

“From makeup to tattoos, we try to keep it all grounded in the original lore. The flavor we add are how these creatures could be strategic in their missions under this overarching war related to the climate crisis,” she added.

The dramaturgy team said that Mr. So, as the playwright, had a few sources for the script. One was permaculture farms, which are characterized by self-sustaining agricultural zones or ecosystems, inspiring the various planes of existence of the mythological creatures; the other was Edgar Samar’s book Mga Nilalang na Kagila-gilalas, which is basically a compendium of mythological creatures based on folklore from all over the archipelago.

“This play has dialogues between these creatures and interactions with humans who have been abusive towards the earth. It all stems from local folklore. We have bathalas, aswangs, diwatas,” explained Ms. Amascual.

Their differences in language, being from different regions in the Philippines, make up “an intriguing aspect of the play that other folklore-based tales haven’t really tackled,” she added.

Other members of the artistic team include dramaturgs Anril Tiatco and Jem Javier, dramaturg-in-training Gaby Asanza, set designer Mark Dalacat, costume designer Carlos Siongco, lights designer Barbie Tan-Tiongco, and sound designer Jack Alvero.

The cast of the ensemble piece, in alphabetical order, are: Raymond Aguilar, Tristan Bite, Kris Caaya, Jasper Cabra, Exequiel Camporedondo, Sheryll Villamor Ceasico, Kenneth Charles Famy, Belle Francisco, Lee Lim, Sarina Sasaki, Jigger Sementilla, Genalyn Suelto, and Ingrid Villamarin.

HUMAN RESPONSES
Climate in Crazies, the second play in the twin bill, looks at the expanse of global experience and “zooms in on the local and more personal experience of the global climate emergency.” It is directed by Issa Manalo Lopez and Tess Jamias and is based on Australian playwright David Finnigan’s Scenes from the Climate Era.

The ensemble transposed the original text into the Filipino understanding of the crisis and everyday problems, solutions, attitudes, and actions addressing it. This means it was written through the process of devising, which refers to a collaborative method of forming a script.

“In adapting the text, it wasn’t enough that we translate. It was part of our decision-making to either let go of sentiments that were too foreign or to try to make them more local,” co-director Ms. Jamias told BusinessWorld.

Ms. Lopez, also a director of the play, added that Mr. Finnegan’s script was already a combination of different conversations — with his father who is a climate scientist, and even with her as she told him about her experience in Tacloban with Typhoon Yolanda.

“Our aim is to make it accessible. We don’t want the audiences to passively absorb information. We want them to relate with the characters who are trying to segregate, doing their part, and also expressing doubts about their real impact,” she explained.

As hinted by the title, Climate in Crazies, a pun on the word “crisis,” the goal is to tackle the serious issue with “humor, levity, and playfulness.” While Mr. Finnegan meant for the text to be transposed to different countries, Dulaang UP’s version will mark the first from the perspective from a developing country, not from the global north.

Ms. Jamias said that in the process of developing the play, the artistic team and ensemble have been on a journey themselves. “We’re all trying to understand the climate crisis. What we want to do is to bring the audience on that journey.”

Other members of the artistic team include dramaturg Nikka De Torres, set designer Mark Dalacat, costume designer Carlos Siongco, sound designers Jose Buencamino and Sage Ilagan, and video designer Tofie Falcon.

The cast is composed of actor-devisers Delphine Buencamino, Bong Cabrera, Herbie Go, and Ethan King.

Mga Anak ng Unos will run at the IBG-KAL Theater, University of the Philippines Diliman, Quezon City from March 28 to April 13. Persons with disabilities and senior citizens may enjoy a discounted rate of P800, while regular tickets are available for P1,000, via Ticket2Me or bit.ly/MgaAnakNgUnosTickets. — Brontë H. Lacsamana

How to make billions selling $1 lemonade

A WINNING BUSINESS MODEL. — NA BIAN/BLOOMBERG

ONE CAN BECOME a billionaire selling ice cream, lemonade, and fruit smoothies — all for less than $1. Zhang Hongchao and Zhang Hongfu, two brothers who founded China’s largest freshly made drinks chain, are making a fortune by taking advantage of China’s fast-shifting labor dynamics.

Mixue Group’s blockbuster HK$3.5 billion ($444 million) public listing is a marvel for a difficult food and beverage industry where even the likes of Starbucks Corp. and McDonald’s Corp. are revamping their operations. With its share price surging, the Zhang brothers are now richer than Starbucks’ founder Howard Schultz.

Fast-growing cash cows are hard to find in this uncertain world. By number of stores, Mixue has become bigger than McDonald’s. It has over 45,000 outlets after more than doubling its locations in just three years. There’s no cash burn either. In the first nine months of 2024, revenue grew 21% to 18.7 billion yuan ($2.6 billion), while net profit came in at 3.5 billion yuan, a 42% year-on-year gain.

Behind Mixue’s growth is an army of franchisees. The company barely manages any stores itself. Rather, almost all of its revenue came from selling store supplies, including syrup, milk, and fruit, as well as equipment such as refrigerators and ice-cream makers, to its franchises.

Faced with weak job prospects, many Chinese might find Mixue’s business proposition palatable. The initial investment for opening a shop is only about 210,000 yuan.

One doesn’t need much expertise to run a business either. Mixue’s corporate headquarters have standardized everything, including advertising campaigns. For an aspiring entrepreneur, the only trick is spotting a site that can break even quickly.

Mixue is expanding just when China’s labor market is changing shape. Because of automation, even the world’s largest factory can’t provide so many manufacturing jobs. In 2023, wholesale and retail sectors employed 135 million people, 12 million more than manufacturing, according to the latest census. Many Chinese choose to be self-employed or work for family members, as larger companies lay off people and cut salaries. Ultimately, Mixue is not selling $1 lemonade, but an entrepreneurship dream.

But online complaints are growing louder, with many claiming that Mixue is making money at the expense of franchisees, that the company is shifting operational risks to small business owners.

By now, Mixue’s stores are peppered across China. Even in small towns, one street can have multiple outlets — some only 200 meters away from each other — competing for the same customers. There’s already a hint of cannibalization in the company’s financials: In the first nine months of 2024, the latest data available, the average daily gross merchandise value per store fell by 5% to 4,184 yuan.

In its franchise agreements, Mixue doesn’t require newly opened stores to keep a minimum distance from existing ones. Increasingly, for franchisees, it is hard work mixed with financial anxiety. On average, each store can expect to make 367 orders a day, or every two minutes for 12-hour days. But operators dare not slack off. It would take some shops two to three years to break even, much higher than what some company employees suggested, according to local media.

So far, Mixue is opening outlets a lot faster than it closes them, and people are only disgruntled online. Unfortunately, in a weak economy, small businesses have no power and the platform holds all the cards. But Mixue’s capital market success is exacerbating an economy driven by hyper competition, and portends the burnout that will eventually follow.

BLOOMBERG OPINION

Philippines climbs in Economic Freedom Index

THE Philippines went up six notches to 82nd out of 176 countries and is now considered “moderately free,” according to a global index on economic freedom by The Heritage Foundation. Read the full story.

Philippines climbs in Economic Freedom Index

Sprout Solutions eyes more industries for AI sales assistant

SPROUT.PH

SPROUT SOLUTIONS is looking to expand its artificial intelligence (AI) sales assistant Inbound to other industries to help accelerate deal closures.

“For anyone in sales, one of the hardest things isn’t really closing the sale; it’s getting enough customers to even talk to you at the very beginning,” Gian Paulo G. dela Rama, chief product and AI officer at Sprout Solutions, said in a video interview on March 4.

“It’s that specific pain point that we’re trying to address, so we want to deliver actionable leads to sales people, and to do that, we built this AI tool that will automate the lead engagement at the very beginning,” he added.

About 50 entities in the real estate and automotive sector use Inbound.

Launched in January, Inbound seeks to increase Philippine companies’ competitiveness by streamlining workflows, providing high-value leads and accelerating deal closures. It initially catered to the real estate and automotive sectors.

“With Inbound, managing and converting leads have never been easier,” Patrick Gentry, chief executive officer at Sprout Solutions, said in an e-mailed statement. “Automating complex workflows frees teams to focus on the most promising buyers and real opportunities, instead of getting bogged down in manual tasks.”

The platform provides businesses with data-driven analytics to track crucial metrics, namely conversion rates, lead engagement and product performance, sales volume and revenue.

It can also be integrated with other business tools, including customer relationship management, listing or inventory platforms and scheduling software like Google Calendar.

Inbound also has a setup guide and a team of experts to help businesses use the platform effectively.

Mr. Dela Rama said companies could train Inbound with its own information through the platform’s “state-of-the-art generative AI.”

Before, companies had to anticipate what questions customers would ask and create answers, he said.

“[Now,] our clients basically just need to upload whatever materials that they have, and our Inbound chatbot will be able to answer questions or generate answers based on the information that it has been trained on.”

The Inbound chatbot can also be customized according to the company’s branding and tone.

Customers can integrate Inbound’s chatbot into their website and Facebook Messenger accounts. Sprout Solutions is looking to integrate the chatbot to corporate e-mail accounts.

More than 240,000 companies in the Philippines and Thailand use Sprout Solutions’ AI-driven human resource and business solutions, Mr. Dela Rama said.

The Philippine economy is expected to gain P2.6 trillion annually if domestic businesses adopt AI solutions, according to the National Economic and Development Authority. — Beatriz Marie D. Cruz

SEC says GCash proposal to relax MPO rule ‘possible’

PHILSTAR FILE PHOTO

THE Securities and Exchange Commission (SEC) said it is possible to lower the 20% minimum public ownership (MPO) requirement for public listings to accommodate the planned stock market debut of mobile wallet platform GCash. 

SEC Commissioner McJill Bryant T. Fernandez said GCash must apply for exemptive relief with the corporate regulator.

“Should there be any lowering of the 20% (MPO rule), then that would still be an exemptive relief application. It is within the SEC’s power…” he told reporters on the sidelines of a recent listing event in Makati City.

“At the end of the day, we have to look at market conditions. We have to check exactly what they’re going to propose. But we have yet to see. The size of the offer would be considered. At the end of the day, we want a successful listing,” he added.

However, Mr. Fernandez said GCash has not yet submitted an application to the SEC.

“Formally, we have not yet received anything from GCash. We haven’t even conversed, formally or informally, about this. I’m aware that they’ve reached out to the Philippine Stock Exchange (PSE),” Mr. Fernandez said.

“From our end, we’re looking forward to this listing by GCash,” he added.

Globe Telecom, Inc. recently said it is seeking regulatory relief from the PSE and the SEC on the 20% MPO rule for the planned GCash initial public offering (IPO).

G-Xchange, Inc., which operates GCash, is a wholly owned subsidiary of Globe Fintech Innovations, Inc. (Mynt).

Globe President and Chief Executive Officer Ernest L. Cu recently said the GCash IPO could target an $8-billion valuation and might happen by year-end.

He added that the timeline will depend on the PSE and SEC’s decision on whether to lower the MPO rule to 10%-15% from 20%. 

PSE President Ramon S. Monzon said in January that the market operator, along with the SEC, is evaluating the possibility of reducing the 20% public float requirement. The PSE aims to have six IPOs this year. — Revin Mikhael D. Ochave

Arts & Culture (03/19/25)

Cristina Pantoja Hidalgo to lecture on historical novels

THE second installation of the lecture series “States of the Filipino Novel” will be held on March 21, 5 p.m., at the Natividad Galang Fajardo Conference Room of Ateneo de Manila University in Quezon City. It will be led by renowned professor, writer, and literary scholar Cristina Pantoja Hidalgo who will discuss the modern Philippine historical novel and women writers  Both the in-person talk and its livestream are free to the public.

Nicole Coson, Jon and Hanna Pettyjohn at Silverlens

SILVERLENS MANILA will hold a solo exhibition by Nicole Coson alongside a duo presentation of father and daughter potters Jon and Hanna Pettyjohn, both exhibits opening on March 20. Ms. Coson’s is titled Membranes, focusing on two everyday objects: styrofoam mesh fruit casing and standard plastic shipping crates. These items speak to the vast journeys that perishable goods undergo before eventual consumption, expressed in printmaking and painting for the show. Meanwhile, the Pettyjohns are presenting Reflections, in situ, featuring collaborative sculptures alongside individual works by each artist. Both artists articulate through their works a deep connection to the landscape of the Philippines through transformed raw materials, ceramics, paintings, and sculptures. Both exhibits run until April 25 at Silverlens, Chino Roces Ext., Makati.

Women’s Month opera to take place at Y Space

FOR an evening of powerful voices and soulful melodies, those who enjoy or are curious about opera can come to Her & Harmonies: A Women’s Month Opera Event, featuring sopranos Krissan Manikan-Tan and Kay Balajadia, on March 22, 6:30 p.m., at Y Space at the Yuchengco Museum, RCBC Plaza, Makati. Raki Gendrano will be on piano supporting the two opera singers. Tickets for the general public cost P1,500 while seniors, persons with disabilities, and academic faculty with valid IDs can attend for P1,200.

China Collages opening at MO_Space

THE SHOW, China Collages, will give viewers the chance to revisit Roberto Chabet’s pivotal series of works on paper this March. Done between the mid to the late 1980s, these collages represent a critical point in both Mr. Chabet’s career as an artist, as well as the evolving political landscape, bearing tumultuous undulations between order and chaos. In these works, Mr. Chabet reimagines collage through the functions of the map. China Collages is open for public viewing at MO_Space from March 22 to April 20 at the 3rd floor of Mos Design, 9th Avenue, BGC, Taguig.

Calle Wright holds talks on opening show

TWO TALKS will be held this month in conjunction with Calle Wright’s opening exhibit for the year, Hair tied together, embodied we speak / Pinagtaling buhok, kinatawang bigkas, a group show exploring photography, installation, and sound as tools for connection, resistance, and self-identity. The first talk is “Collective Envisioning: Art, Material, and the Body” on March 22, 3 p.m., with three of the exhibiting artists: Isola Tong, Patricia Perez Eustaquio, and Gina Osterloh. The talk will have them each delve into their works, which explore materiality, the body, and collective memory. The second is “Listening to Walls: Press, Lean, and Perform with Gina Osterloh” on March 23, 10 a.m., where Ms. Osterloh invites visitors into a quiet, meditative space to understand her unique video performance through simple, mindful gestures. Register to attend these events via Calle Wright’s pages. Calle Wright is located on 1890 Vasquez St., Malate, Manila.

Arthur Espiritu holding MiraNila concert

ON April 2, Filipino-American tenor singer Arthur Espiritu will be filling the halls of the MiraNila Heritage House & Library with his powerful voice. His one-night concert, in partnership with Leon Gallery and Gallery MiraNila of The Blue Leaf, is titled Tenor Arthur Espiritu Welcome-home Concert Amid Critical Acclaim in Europe. It starts at 6:30 p.m. at the Main Hall of MiraNila. The night marks his return from Europe after playing leading roles in various opera houses and concert halls. He will be performing pieces by Gabriel Fauré, Franz Lehar, Giacomo Puccini, Charles Gounod, Richard Strauss, Andrew Lloyd Weber, and Francesco Sartori, accompanied by soprano Jade Riccio and pianist Mariel Ilusorio. Doors open at 6 p.m. Tickets cost P1,500 for library seats and P2,500 for Main Hall seats and must be reserved in advance. MiraNila Heritage House & Library is located at 26 Mariposa St., Brgy. Bagong Lipunan, Crame, Quezon City.

Rep announces full cast of ART

REPERTORY PHILIPPINES (Rep) has announced the full cast and creative team for its 88th season offering of Yasmina Reza’s Olivier and Tony award-winning comedy, ART. The production, translated by Christopher Hampton and directed by Victor Lirio, features New York-, London-, and Manila-based creatives. In the cast are London-based Filipino-British actor Martin Sarreal, award-winning Manila-based actor Brian Sy, and British stage, film, and TV actor Freddy Sawyer. Rep’s ART will run from June 13 to 21, with regular performances on Fridays and Saturdays at 8 p.m., and matinee performances on Saturdays at 3:30 p.m. All performances will be at Rep’s recently inaugurated REP Eastwood Theater in Quezon City.

SM Podium opens Australian Book Nook

THE AUSSIE-STYLE Book Nook at SM Podium is now officially open. Its architect Shereen Sy and SM Supermalls president Steven Tan recently hosted Australian Ambassador HK Yu for its unveiling. Named Australia Corner, it houses a collection of children’s books, novels, and educational books about Australia, most of which are not available in book shops in the Philippines. The ambassador handed over a selection of books from the Australian Embassy and the Melbourne-based non-profit Give-A-Textbook Foundation. Book Nook is a community-driven library managed by SM Cares where anyone can read, donate, and share books. It first opened in SM Aura in 2020, and its second branch is located at the 5th level at SM Podium in the Ortigas Center.

TGA announces additional show for Into the Woods

THEATRE GROUP ASIA (TGA) has announced an extended run of its production of Into the Woods, with six additional shows from Aug. 28 to 31 at the Samsung Performing Arts Theater at Circuit Makati. There will be 7:30 p.m. shows on all four days, and 2:30 p.m. shows on Aug. 30 and 31. TGA also announced another cast member: veteran actor Rody Vera, who will play the Narrator/Mysterious Man.

Penguin is publishing Letters from Gaza

PENGUIN has announced the publication of Letters from Gaza, an intimate collection of personal writings that bears witness to one of the most devastating humanitarian crises of our time. This one-of-a-kind compilation by Gaza-based writers Mahmoud Alshaer and Mohammed Zaqzooq is an unflinching account of war told through the words of those living it — offering a deeply personal, urgent, and essential perspective that gets often lost in global headlines. Letters from Gaza is scheduled for release in April under the Penguin Select imprint.

Enhancing the Philippine tourism experience: VAT refunds for foreign tourists

PHILIPPINE STAR/JOHN RYAN BALDEMOR

The Philippines has long been regarded as a premier tropical destination for foreign tourists from around the world. From the pristine white sands of Boracay and the world-class surfing waves of Siargao, to the vibrant streets of Metro Manila and Cebu, the country offers a diverse range of attractions that cater to all types of travelers. In recent years, the Philippines has witnessed a remarkable surge in international arrivals, highlighting its growing appeal and competitiveness as a top travel destination.

Department of Tourism (DoT) Secretary Christina Garcia Frasco has formally announced that the Philippine tourism sector has firmly established its role as a key economic pillar of the national economy, as it achieved unprecedented record-high tourism revenue of approximately P760 billion in 2024.1

In a bid to further boost its appeal and competitiveness in the global tourism market, the Philippine government has introduced a significant policy shift through the enactment of Republic Act No. 12079 on Dec. 6, 2024. The legislation establishes a Value-Added Tax (VAT) refund system for non-resident tourists, aiming to encourage higher spending among foreign visitors and align the Philippines with other leading tourist destinations that offer similar tax incentives.

VAT is ultimately a tax on consumption, even though it is assessed on many levels of transactions on the basis of a fixed percentage. The ultimate burden of tax on consumer goods or services falls on the end user. Providers of these goods or services pass the liability to the final consumers, allowing the providers to offset their own VAT liability (input VAT) with the VAT payments they receive from the final consumers (output VAT).2 The VAT refund system for foreign tourists operates on the premise that the tourists who acquire merchandise in a tourism country do not consume the purchased goods in such country. Such a VAT refund for non-resident tourists adheres to the destination principle of the Philippine VAT system in which goods and services are taxed only in the country where they are consumed.3

The concept of a VAT refund for tourists is not entirely new to Filipinos. Many who have traveled abroad may have experienced and benefited from similar tax rebate systems in other countries. Japan, South Korea, and various European countries have long implemented efficient tax rebate systems that allow foreign tourists to reclaim a portion of the VAT paid on goods purchased during their stay in the country.

Under R.A. No. 12079, a tourist shall be eligible for a VAT refund on locally purchased goods if the following requisites are present:

a. Goods are purchased in person from duly accredited stores;

b. The goods are taken out of the Philippines within 60 days from date of purchase; and,

c. The value of the goods purchased per transaction is equivalent to at least P3,000.

The threshold for the value of the goods purchased per transaction is subject to review and adjustment every three years by the Secretary of Finance, upon recommendation of the Commissioner of Internal Revenue, taking into consideration the Consumer Price Index as published by the Philippine Statistics Authority.

The Department of Finance (DoF) is tasked with the responsibility of engaging reputable and experienced VAT refund operators to establish and manage an efficient refund system pursuant to the provisions of R.A. No. 12079. The VAT refund process will accommodate the preferences and convenience of non-resident tourists by allowing refunds to be processed either electronically or in cash, depending on the specific mechanisms implemented. As of this date, the DoF has not yet promulgated the rules and regulations necessary for the effective and faithful implementation of R.A. 12079.

With the implementation of the new law, an estimated 30% increase in tourist spending is projected, promising substantial economic benefits for a wide range of sectors within the Philippine economy.4 The anticipated surge in expenditures by foreign visitors is expected to significantly boost revenues for large-scale industries, including hospitality, retail, and transportation, which are well-positioned to accommodate higher tourist demand, as well as micro, small and medium enterprises (MSMEs).

The success of this legislation hinges not only on the issuance of clear and comprehensive rules and regulations, but also on the readiness of businesses to comply with new requirements brought about by the new law. For businesses and investors, particularly those in the retail sector, a thorough understanding of the legal and regulatory landscape will be essential in maximizing the opportunities presented by R.A. No. 12079. n

1 “PHL hits record high tourism revenue in 2024,” available at https://beta.tourism.gov.ph/news_and_updates/phl-hits-record-high-tourism-revenue-in-2024, last visited on March 9.

2 Commissioner of Internal Revenue v. Magsaysay Lines, G.R. No. 146984, July 28, 2006, 497 SCRA 63.

3 Commissioner of Internal Revenue v. Filminera Resources Corp., G.R. No. 236325, Sept. 16, 2020, 954 SCRA 505.

4 News releases — “PBBM okays proposals to boost tourism,” available at https://pco.gov.ph/news_releases/pbbm-okays-proposals-to-boost-tourism, last visited on March 9.

The views and opinions expressed in this article are those of the author. This article is for general informational and educational purposes only and not offered as and does not constitute legal advice or legal opinion.

 

Christine L. Paulma is an associate of the Angara Abello Concepcion Regala & Cruz Law Offices (ACCRALAW), Davao Branch.

(6382) 224-0996

clpaulma@accralaw.com

Higala gets $2.8 million in fresh funds for platform banking rollout

INSTANT PAYMENT system Higala has secured fresh funds from two venture capital firms to extend its seed funding round to $2.8 million, which will help fund its platform bank that will be rolled out next quarter.

The seed fund extension round was led by 1982 Ventures, a Singapore-licensed venture capital firm that invests in fintech startups in Southeast Asia. Also joining the round was Talino Venture Studios.

Higala is owned by Talino Venture Studios and Chemonics International.

“This funding milestone of Higala will greatly benefit its robust ecosystem, which now includes an instant payment system, a platform bank, and an extensive network of collaborators who are all committed to improving financial system resilience and accelerating the adoption of digital banking,” Higala and Talino Venture Studios Chief Executive Officer Winston L. Damarillo said at a media briefing on Tuesday.

“In fact, we have a very good long queue of funding. The next stage is once you launch, we’re going to raise another set of funding to scale the money,” Mr. Damarillo said.

Higala’s platform banking will allow smaller financial institutions to offer digital payment services.

Rizal Commercial Banking Corp. (RCBC) recently partnered with Higala to provide the core technology to SynerFi, an open payments platform.

“Some of the banks that have been publicly announced as part of Higala’s network include the initial 40 participants to RCBC’s SynerFi service and select rural banks that are part of the RCBC ATMGo network,” Higala said.

“This is the realization of BSP’s open finance roadmap initially focusing on open payments use cases making digital transactions more seamless and frictionless,” RCBC Executive Vice-President and Chief Innovation and Inclusion Officer Angelito M. Villanueva said. — A.E.O. Jose

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