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Marcos signs law amending fixed terms for top military posts 

PHILIPPINE STAR/KRIZ JOHN ROSALES

PRESIDENT Ferdinand R. Marcos, Jr. on Wednesday approved Congressional amendments to a 2022 law that set a fixed term for key military positions. 

Mr. Marcos signed Republic Act (RA) No. 11939 on May 17, just four months after reports of rumblings in the Armed Forces of the Philippines (AFP) leadership, which were considered as “unintended consequences” of RA No. 11709, a law on professionalizing and modernizing the military. 

Under the new law, the AFP chief-of-staff would only have a maximum tour of duty of three consecutive years unless sooner terminated by the president.

Those who shall serve a maximum of two consecutive years include the service commanders of the Philippine Army (PA), Philippine Air Force (PAF), and Philippine Military Academy (PMA), all of whom will not be eligible for any position in the AFP unless promoted to the chief of staff post.

They must have at least one year remaining of active service before the compulsory retirement for them to be eligible for appointment or promotion to the grade of brigadier general, commodore or higher rank. 

Under the new law, the AFP chief of staff and heads of the army, navy, airforce, and academy shall compulsory retire upon completion of a tour of duty or upon relief by the President.

It said the second lieutenant or ensign, lieutenant general or vice general and any enlisted personnel shall retire at the age of 57 or upon accumulation of 30 years of satisfactory active duty. 

Those commissioned under the Presidential Decree 1908 and appointed in the Corps of Professors shall retire upon reaching the age of 60 or upon completion of 20 years of satisfactory active duty.  

The law increased to five years from three the maximum tenure of military officers with the rank of brigadier general or commodore, and to 10 years from eight years the maximum tenure of colonel or captain rank.  

Reports of destabilization plots circulated in January after an unexpected change of command at the military with the reappointment of General Andres C. Centino as chief of staff — five months after Mr. Marcos appointed Bartolome Vicente O. Bacarro to the post.

The instability pushed Defense officer-in-charge Carlito G. Galvez, who assumed the post left by Jose Faustino, Jr. amid the rumblings, to lobby for amendments to RA No. 11709, which was signed by former President Rodrigo R. Duterte in April last year.  

Congress passed the law in March.

Mr. Galvez, who at the time said the “rumblings” in the AFP “were actually more of a tampo (hurt feelings) by the troops over the law more than anything else,” said short-term appointments for top generals — which were enabled by the Duterte law — had caused a disturbance among junior military officers.

“The President may lengthen the tenure-in-grade of officers in the permanent grades of captain, major, and lieutenant colonel, or their equivalent, up to two promotional cycles when necessary, to maintain the desirable officer rank structure and uphold the progressive professional development of the officer corps,” according to the new law.  

It also modified the officer grade distribution in line with the AFP modernization program, adjusting the percentage for general or flag officers to 1.25% and for first lieutenant or lieutenant junior grade and second lieutenant and ensign to 42.75%.  

The law tasked the Defense agency to craft the rules and regulations needed to implement its provisions within 30 days from its effectivity, which will happen five days after its publication in the Official Gazette. — Kyle Aristophere T. Atienza 

Gov’t releases P7.68B for targeted cash transfer 

PHILIPPINE STAR/EDD GUMBAN

THE GOVERNMENT has approved the release of P7.68 billion for its targeted cash transfer (TCT) program. 

In a statement on Thursday, the Department of Budget and Management (DBM) said the fund will cover the remaining two months of the financial aid program, with each of the 7.6 million beneficiaries to get P500 per month. 

Earlier this year, Department of Finance Secretary Benjamin E. Diokno said that the government was allocating P9.3 billion for the cash transfer program.

“We have recomputed the TCT fund requirements based on the recalibrated number of targeted beneficiaries for the two-month period amounting to P7.68 billion,” Budget Undersecretary Goddes Hope O. Libiran said in a Viber message. 

Last year, the government released a total of P19.43 billion under the TCT program. 

The program was launched in June last year to help mitigate the impact of rising fuel prices and commodities on the most vulnerable households. — Luisa Maria Jacinta C. Jocson

PHL, Kuwait discuss migration issues 

A DELEGATION of Philippine government officials engaged in bilateral talks on migrant work issues with their Kuwait counterparts on May 16-17, the Philippine Department of Foreign Affairs (DFA) said on Thursday. 

“On issues related to services being rendered to our migrant workers, the delegation explained that all actions taken by the Philippine Embassy and the Philippine Government are solely to ensure the safety and welfare of our own nationals,” the DFA said in a statement.

It said the Philippines expressed its openness to constructive dialogue on how to address issues concerning overseas Filipino workers (OFWs).

This comes after Kuwait’s suspension of work and entry visas for Filipinos on May 11. Only Filipinos already with valid visas may enter Kuwait starting May 10.  

The DFA earlier said it hoped to reach a “mutually satisfactory solution” to issues between the countries, including the visa suspension. 

In January, Migrant Workers Secretary Maria Susana “Toots” V. Ople initiated a reassessment of the Philippines-Kuwait bilateral labor agreement after the murder of a Filipina domestic worker in the Middle Eastern country. 

“The DFA and DMW (Department of Migrant Workers) wish to assure our migrant workers in Kuwait as well as their families of the government’s full support and assistance,” the DFA said.  

Money sent home by OFWs rose by 3% in March with $2.67 billion remitted that month, amid the improving economic conditions in host countries, according to the Bangko Sentral ng Pilipinas. — John Victor D. Ordoñez

Tourism chief says 5-year plan paves way for sector’s transformation, employment opportunities

PHILIPPINE STAR/KRIZ JOHN ROSALES

THE RECENTLY approved National Tourism Development Plan (NTDP) 2023-2028 will give a boost to the transformation and employment opportunities in the sector, the country’s top tourism official said.    

“As a whole, the NTDP shall provide a guide for our regions as well in the efforts of our President to spread countrywide development through tourism,” Tourism Secretary Maria Esperanza Christina G. Frasco said in a statement on Thursday.   

“And what our fellow Filipinos can expect is that they will be given the opportunity to have tourism employment via the development of tourism circuits and to continue to push for tourism across our regions and provinces,” she added.    

President Ferdinand R. Marcos, Jr. approved earlier this week the five-year plan, which aims to establish a Philippine tourism industry “anchored on Filipino culture, heritage and identity which aims to be sustainable, resilient and competitive in order to transform the country as a tourism powerhouse.”   

The Department of Tourism (DoT) aims to generate 34.7 million tourism-related jobs and record 51.9 million international arrivals by 2028 as part of the NTDP’s targets.   

Ms. Frasco said the NTDP would help address issues faced by the local sector, adding that tourism is one of the few industries that could generate opportunities and livelihoods in remote communities.    

“So, it is by unlocking all of these roadblocks that we would be able to fully develop the tourism industry guided by the NTDP,” Ms. Frasco said.   

For 2023, the DoT is eyeing to attract 4.8 million international tourist arrivals, P316 billion worth of inbound tourism revenue, and P1.93 trillion in domestic revenue.    

As of May 15, the Philippines has logged 2.029 million international visitors, while P168.5 billion in visitor receipts were generated from January to April.    

‘REVENGE SPENDING’
The Tourism Congress of the Philippines (TCP), the industry’s private sector consultative body, is also upbeat about higher revenues from visitors.  

“Globally, the trend is not just revenge travel, but what is also happening is revenge spending,” TCP President Roberto Z. Zozobrado said in a Viber message to BusinessWorld on Wednesday.  

The DoT recorded P168.52 billion in inbound visitor receipts from January to April this year, almost eight times the over P19 billion generated in the same period last year when international borders were just reopened.     

For 2022, total tourism revenue amounted to P1.74 trillion, which the industry expects to definitely surpass this year.   

Mr. Zozobrado said he is optimistic that tourist arrivals and revenues will continue to increase, especially with certain Asia Pacific markets. 

“Remember, China is just starting to show its strength in arrival numbers once again, and it’s known that they’re big spenders,” he said.  

Ateneo de Manila University economics professor Leonardo A. Lanzona, however, cautioned that the valuable relief that the tourism sector is getting is largely arising from the people’s “hangover” from three years of on-and-off lockdowns. 

“However, as the hangover wears out, it seems unlikely that travelers are going to increase spending consistently, and so these revenues are eventually going to diminish,” he said in an e-mail interview.  

Loleth G. So, Hotel Sales and Marketing Association (HSMA) president, said in a Viber call that while revenge travel won’t last forever, it’s a good way to “carry the wave and transition to a post-pandemic stage.” 

“To be ready for the plateauing of revenge travel, we’re preparing to cater to the meetings, incentives, conferences, and exhibitions (MICE) market — that will sustain occupancy levels and revenue,” Ms. So said. 

In 2021, the tourism sector contributed 5.2% to the Philippines’ gross domestic product, a minimal rise from 5.1% in 2020. These contributions in the past two years are still significantly lower than the 12.7% seen in 2019.  

According to Mr. Lanzona, the government should not just pour huge investments in tourism, but also in industry and technology-based sectors, which do not rely on labor to expand.  

“The expansion of tourism remains dependent on labor and face-to-face transactions. That’s why it’s more productive to place investments in industry and technology, where capital itself creates output independent from the labor being employed,” he said.  

HSMA’s Ms. So said that while the government is striving to improve infrastructure and technology in ways that will also benefit tourism, the sector itself must find ways to keep growing as revenge travel subsides.  

This includes readying affordable stay and travel packages, contracting corporate accounts, and partnering with destination management companies, she said.  

“It’s great for us that all this tourist spending is happening right now but, at the same time, we must prepare by laying the foundation already with our partners in business,” she added. — Revin Mikhael D. Ochave and Brontë H. Lacsamana

Slain mayor’s lawyer acknowledges no direct evidence yet linking Teves to murder  

SCREENGRAB FROM REP TEVES FACEBOOK PAGE

THE EVIDENCE in the murder complaint against a Philippine congressman linked to the murder of Negros Oriental Governor Roel R. Degamo is mostly circumstantial, the lawyer of the slain provincial governor said on Thursday.  

“It is based on the totality of evidence rule,” Levy Baligod, who lawyers for the Degamo family, told CNN Philippines.   

“Even though there is no direct evidence according to the NBI (National Bureau of Investigation) investigation linking Negros Oriental Rep. Arnolfo A. Teves, Jr. to the killings, more than three circumstantial pieces of evidence would point to the fact that he was one of the masterminds.”  

Agents of the NBI on Wednesday filed a multiple murder complaint against the suspended congressmen, a copy of which has yet to be made public. 

The congressman, who had gone into hiding overseas, is accused of conspiring to murder Mr. Degamo and eight others on March 4. Fifteen people were also hurt during the shooting at the late governor’s residential compound.  

Mr. Teves has denied involvement in the crime and cited threats against him and his family. 

The Degamo family lawyer said some witnesses in the case had told him that they were offered bribes after a preliminary investigation hearing at the Department of Justice (DoJ).  

Justice Secretary Jesus Crispin C. Remulla said on Wednesday that Mr. Teves has to come home so he could answer the complaints before government prosecutors.  

Ferdinand S. Topacio, the congressman’s lawyer, said he had received information that some witnesses have recanted their testimonies against his client.  

“It’s about time,” he said on Wednesday, commenting on the filing of the complaints. “They [DoJ] claim to have solid evidence but I have heard from various sources that some witnesses have recanted their testimonies.”  

Last month, the House of Representatives suspended the congressman for 60 days for failing to report back to work after his travel authority expired on March 9.  

Speaker Ferdinand Martin G. Romualdez last week urged the suspended congressman to return to the Philippines and face the charges.  

Mr. Teves has asserted his innocence saying he would return to the Philippines when he feels safe.  

“The investigation should’ve been done first before their judgment,” Mr. Teves told a virtual news briefing on April 17. “I’ll go home when I feel safe.” — John Victor D. Ordoñez

Peace dividends: Economic, social projects inspire local terror group members to give up arms

POLICE and army officials inspect some of the firearms turned in by members of the Bangsamoro Islamic Freedom Fighters who surrendered to the Bangsamoro Police Regional Office on May 12. — JOHN M. UNSON

By John M. Unson, Correspondent  

COTABATO CITY — More than 70 members of local terrorist groups have laid down their arms in recent weeks, inspired by comrades who have surrendered earlier and are now living peaceful, productive lives back in their communities.   

Alim Kitem Ansao, one of the 50 members of the outlawed Bangsamoro Islamic Freedom Fighters (BIFF) who pledged allegiance to the government on May 12 at the Bangsamoro police regional headquarters, said he and his two siblings agreed to surrender after learning that their village in Midsayap, Cotabato was one of the beneficiaries of multi-million farming equipment grants from the Bangsamoro government. 

“We were told by BIFF recruiters in 2017 that we have to fight the government because it is only good at making the lives of Muslims in Mindanao difficult,” he said in an interview on Wednesday.   

“We realized they were wrong when we started hearing about the construction of barangay (village) halls and roads… by the Bangsamoro government. It was then we started planning secretly to surrender to the police and so it happened indeed,” Mr. Ansao said in the Maguindanaon language. 

One of Mr. Ansao’s companions, Badruddin Sangid Mongkas, said he agreed to surrender, with the help of Muslim preachers in Maguindanao del Sur, after learning that three of his cousins have returned to their home village after availing of livelihood support from the agriculture, local government and social welfare ministries of the Bangsamoro government.  

“I then heard each of them are now earning clean money from corn farming, enough for their schooling and other needs. They are back in high school and want to proceed to college, if possible,” Mr. Mongkas said.  

FISHING
Nine of the BIFF surrenderees were trained in making improvised explosive devices by the Malaysian terrorist Zulkifli bin Hir, also known as Marwan, according to Bangsamoro Police Regional Director Allan C. Nobleza.  

Marwan was killed in a clash with pursuing personnel of the police’s elite Special Action Force (SAF) in Mamasapano on Jan. 25, 2015, an incident that also left 44 SAF personnel, 13 members of the Moro Islamic Liberation Front (MILF) and four villagers dead.   

Hassan Samarudin Tantung, one of the bomb-makers, said what encouraged him to surrender was the construction of a barangay hall in their village at the border of Pigcawayan, Cotabato and Sultan Kudarat, Maguindanao del Norte. 

“There was no barangay justice system in our place before. Surely there will soon be with this barangay hall existing there now,” he said.  

His father also received a small, motorized boat with fishing equipment, which he now uses in the pawas, the local term for marsh which generally refers to the resource-rich 220,000-hectare Liguasan Delta. 

Cotabato Gov. Emmylou Taliño Mendoza said she is expecting the surrender soon of more BIFF and Dawlah Islamiya members in isolated barangays that used to be under her province and are now part the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).    

“I support all of these socio-economic programs of BARMM in its 63 barangays in my province because an increase in the rice and corn production in these areas will also bring progress to the main trading centers in the towns where these barangays belong,” she said.  

Ms. Mendoza, a Christian, has been a staunch supporter of Malacañang’s separate peace deals with the MILF and the Moro National Liberation Front.  

The MNLF and the MILF have large communities in the 63 BARMM barangays in Cotabato, now grouped together as the Bangsamoro Special Geographic Area (SGA).   

Residents of the SGA voted in favor of the inclusion of their barangays into BARMM’s core territory in a plebiscite in early 2019.  

Army 6th Infantry Batallion Commander Alex S. Rillera said while there are still a few remaining hardcore BIFF members, the national and Bangsamoro governments’ projects have significantly helped them secure the surrender of almost 300 BIFF and Dawlah Islamiya members since 2020. 

“When our men in the field convinced them to surrender, they used as examples how Malacañang and the BARMM governments, the municipal and provincial officials in provinces that we cover had cooperated in ushering those who surrendered ahead of them back to their barangays,” he said. 

DoJ: Marcos can reorganize executive branch to fast-track national ID rollout 

THE DEPARTMENT of Justice (DoJ) said it is within President Ferdinand R. Marcos, Jr.’s authority to reorganize the executive department to fast-track the roll-out of the digital national identification cards (national IDs).  

The reorganization would involve the transfer of some functions of the Philippine Statistics Authority (PSA) to the Department of Department of Information and Communications Technology (DICT).  

“Jurisprudence has likewise recognized this continuing power of the President to reorganize the offices and agencies in the executive department in line with the President’s constitutionally granted power of control over executive offices,” Justice Secretary Jesus Crispin C. Remulla said in a five-page legal opinion dated May 16 addressed to Executive Secretary Lucas P. Bersamin.  

Citing Supreme Court jurisprudence, he said the president has the power to “effect less radical or less substantive changes” to the structure of his office.  

In April, Mr. Marcos said during a Cabinet meeting that he wants to fast-track the roll-out of digital national IDs, ordering the DICT and the PSA to accelerate the distribution.  

Earlier this month, Senator Minority Leader Aquilino Martin “KoKo” D. Pimentel III sought to probe the delayed distribution. 

Republic Act No. 11055 or the Philippine Identification System Act (PhilSys) passed in 2018 provides for a single digital ID system for all citizens to ease transactions, access to social services, and boost financial inclusion.   

“Taking into consideration the foregoing and bearing in mind the objective of the PhilSys Act, which will ultimately result in the promotion of the general welfare and accessibility of public service, the President may, thus, exercise his power of control over the executive branch and reorganize it as he deems proper,” Mr. Remulla said. — John Victor D. Ordoñez

NGCP confident of hurdling proposed audit of operations

JEROME CMG-UNSPLASH

THE National Grid Corp. of the Philippines (NGCP) said it is confident that a review of the power grid’s privatization will find that the company introduced many improvements to the transmission system.

“NGCP is fully cognizant that its franchise is a privilege granted to it by government. We remain ready to answer any and all questions raised concerning how we do business,” Cynthia P. Alabanza, spokesperson of NGCP.

She made the remarks after the Presidential Communications Office announced that Senator Rafael T. Tulfo had asked President Ferdinand R. Marcos, Jr. to reassess NGCP’s performance, opening the door to a possible renationalization.

Ms. Alabanza said that the NGCP will follow the legal process and will continue to comply with all lawful directives while pursuing the company’s mandate.

Mr. Tulfo, who is also the chairman of the Senate’s energy panel, has said that he specifically wants to look into NGCP ownership and assess possible threats to national security.

A consortium led by Henry Sy, Jr. and Robert Coyiuto, Jr. won a 25-year concession to run the power transmission network in December 2007. State Grid Corp. of China owns a 40% stake in NGCP.

“We are confident that the improvements we have introduced and the P300 billion we have invested in strengthening the transmission system will be recognized,” Ms. Alabanza said.

Since it took over the transmission system from the government in 2009, the grid operator has expanded the transmission network, the NGCP said.

The company described the government-run transmission system as “aging” when it took over.

“NGCP’s P300 billion grid expansion, reinforcement, and upgrading initiatives from 2009 to present, as well as those in the pipeline, are meticulously planned by our engineers and updated year after year with careful consideration for the needs of every single area in the country,” NGCP said.

Between 2009 and 2022, the company completed about 56 projects deemed vital to the energy sector.

“We continue to be hopeful that improvements in all three sectors of the power delivery system are in sync with each other, so that one sector is not made to be the sole or principal solution to challenges in the other sectors,” NGCP added, referring to the industry’s major segments of generation, transmission, and distribution.

“This is a system, and to make it robust, resilient and responsive to the needs of a fast-growing economy, the direction and coordination must be clear, equally implemented, and objectively pursued. Our stakeholders can be assured that we remain committed to improving and delivering reliable power transmission services,” it said.

The Department of Energy (DoE) said it plans to audit the NGCP’s performance following the tripping of transmission lines which raised red and yellow alerts over the Luzon power grid on May 8.  

The NGCP has said it welcomes the audit if it is carried out within the regulatory framework, adding that the company has been subjected to numerous audits.

Energy Undersecretary Rowena Cristina L. Guevara said that the Energy department has met with the Power Sector Assets and Liabilities Management Corp. (PSALM), National Transmission Corp. (Transco), and Energy Regulatory Commission (ERC) in anticipation of an NGCP review.

“Basically, we have virtually met. The group will consist of DoE, PSALM, Transco and ERC. We have a starting paper but we still have to discuss because we don’t [have] a special order from the Secretary forming us,” Ms. Guevara told reporters on the sidelines of an energy conference.

She said the performance audit will review NGCP’s Transmission Development Plan, among others. — Ashley Erika O. Jose

Napocor targets off-grid areas for RE expansion

BW FILE PHOTO

THE National Power Corp. (Napocor) said it will focus its efforts in expanding renewable energy (RE) on off-grid areas, which are served by its Small Power Utilities Group (SPUG).

“We hope the first 25% will happen next year, then we’ll work on the 75% after that,” Fernando Martin Y. Roxas, Napocor president, told reporters on the sidelines of The Future Energy Solar Show Philippines 2023. He was referring to the targets for RE share in SPUG operations.

Currently, Mr. Roxas said renewable energy in SPUG operations consists of only 2%. He hopes to hit close to 100% in the four years after 2024.

SPUG serves remote areas typically by deploying diesel generators, making the group vulnerable to fuel price swings.

He said that Napocor is looking at many renewable energy technologies at the moment, with solar power currently in favor.

“We will start with solar, because that is easier, then we will work our way to other technologies,” Mr. Roxas said.

He noted that solar power suffers from shortcomings like intermittency, the loss of power generation capacity when the sun is unavailable.

In January, Napocor announced a plan to cut back on SPUG operations due to the high price of diesel fuel, but deferred implementation after a series of consultations. — Ashley Erika O. Jose

Sugar import order expected by end-May

PHILIPPINE STAR/MIGUEL DE GUZMAN

A NEW sugar order is expected to be released by the end of May after President Ferdinand R. Marcos, Jr., approved additional imports of 150,000 metric tons of sugar, the Department of Agriculture (DA) said.

Senior Undersecretary Domingo F. Panganiban said at a briefing on Wednesday that the new import program will head off a projected shortage and stabilize sugar retail prices at between P80 and P90.

“Actually, everybody is talking about the large volume of sugar in the country today,” he said, adding that the impending imports will be smaller than last year’s.

“Our production was only 1.7 million metric tons (MT) compared to our requirement which is 2.2 million MT so (imports of) 440,000 MT were necessary last year. This year, we expect a shortfall of 150,000 (MT), maximum,” he added.

Mr. Panganiban said that the import program was finalized by Mr. Marcos, who is also the Secretary of Agriculture, yesterday in a meeting with government and industry stakeholders.

Asked about the targeted arrival of the shipments, Mr. Panganiban said: “We need to have it before September.”

He said applications to ship in the sugar will be “open,” with importers to be selected based on the standards set by the Sugar Regulatory Administration (SRA).

In February, the SRA issued Sugar Order 6 authorizing the import of 440,000 MT of refined sugar. The shipment was privately awarded to three entities — All Asian Countertrade, Inc., (240,000 MT); Edison Lee Marketing Corp. (100,000 MT); and S&D Sucden Philippines, Inc. (100,000 MT) — with the DA citing the need to move quickly in bringing in sugar.

SRA Acting Administrator and Chief Executive Officer Pablo Luis S. Azcona has said that the imports will be “above board” and “open to all.”

Mr. Azcona’s estimate of the supply-demand balance was 3.102 MT in combined domestic production and imports, against demand of 3.151 MT.

On May 7, the SRA forecast the sugar inventory at a negative ending stock of 552,835 MT by the end of August.

Mr. Azcona added that the Philippines needs to maintain at least a 240,000 MT buffer stock before milling starts to prevent speculation that will send prices higher.

United Sugar Producers Federation President Manuel R. Lamata, who was also present at the meeting with the Palace, said that the new batch of imports will address the one-month gap as the industry transitions to the adjusted milling season.

“We were amenable to additional imports of 150k metric tons to supplement the month’s supply for August because the President wants (milling) to start in September to increase yields by 10%,” he said in a Viber message, referring to the additional sugar content expected if the crop is expected to develop further.

Mr. Azcona said that mills were forced to start in early August last year instead of the second week of September, producing immature cane and weak yields.

According to DA price monitors, the prevailing price of refined sugar in Metro Manila markets on Thursday was between P86 and P110. Washed sugar sold for P82-P90, and brown sugar P78-P95. — Sheldeen Joy Talavera

Industrialists see pickup in GDP growth after first-quarter slowdown

THE Federation of Philippine Industries (FPI) said it expects gross domestic product (GDP) growth to improve in the coming months after the indicator slowed in the first quarter.

“(GDP) will improve because we just came from a pandemic. Not all companies can get back on their feet right away,” FPI Chairman Jesus L. Arranza said on the sidelines of The Economist Impact’s Global Anti-Illicit Trade Summit in Taguig City on Thursday. 

“Look, we are (coming) from down there. There is no way except to go up,” he added.

According to Mr. Arranza,  industries driving the growth will include construction and manufacturing, which he said is being hampered by competition from smuggling.

“Construction is a big contributor. Manufacturing is also big. However, the manufacturing (sector) is having a lot of problems with smuggling of so many kinds, especially substandard (products). The worst is substandard because it is not only robbing manufacturers, dislocating workers, and is also risking life and limb of users,” Mr. Arranza said.

Gross domestic product grew 6.4% in the first quarter, against the 8% growth posted a year earlier, due to surging inflation, according to the Philippine Statistics Authority (PSA).

 Despite the slower growth, first quarter GDP remained within the administration’s 6-7% target for 2023.

According to preliminary data from the PSA, factory output as measured by the volume of production index slowed to 2.2% in March from the revised 5.2% growth in February and 346.2% growth in March 2022.

On May 16, Pulse Asia released a survey indicating 89% support for policies favoring manufacturing to boost growth.

The survey, commissioned by think tank Stratbase ADR Institute, indicated that half of respondents believe a manufacturing focus will boost investment, generate more jobs, and produce more goods for the domestic market and for export.  

“Investment in the manufacturing sector will lead to a domino effect that will increase productivity, create high quality jobs, provide income and food security, enable the affordability of goods, and spur consumer spending. But then again, setting up a manufacturing operation requires a significant investment in infrastructure, workforce, and knowledge capital,” Stratbase ADR Institute President Victor Andres C. Manhit said. — Revin Mikhael D. Ochave 

CAB reduces air carrier fuel surcharge for June

Airplanes are seen on the runway at the Ninoy Aquino International Airport. — PHILIPPINE STAR/ MICHAEL VARCAS

THE Civil Aeronautics Board (CAB) said it lowered the passenger fuel surcharge for June to Level 4 from Level 5 in May.

The June decision marks the third consecutive month of lower fuel surcharges, which had been set at Level 6 in April and Level 7 in March.

Level 4 sets the passenger fuel surcharge at between P117 and P342 for domestic flights and P385.70-P2,867.82 for international flights originating from the Philippines.

The current Level 5 sets the passenger surcharge at between P151 and P542 for domestic flights and P498.03-P3,703 for international flights.

Cielo C. Villaluna, spokesperson for Philippine Airline, said: “We acknowledge and will comply with the lowered fuel surcharge matrix that takes effect for next month’s ticket purchases.”

“PAL appreciates our customers’ loyalty and we are committed to continue supporting the nation as its flag carrier,” she added.

Budget carrier AirAsia Philippines said it expects the lowered surcharge to sustain demand for travel as the summer travel season comes to a close.

“The CAB decision to lower applicable fuel surcharge rates for domestic and international flights is expected to be advantageous for guests who may use the additional savings towards other amenities or activities during their trips in the coming months,” the airline said.

AirAsia also said the lowering of fuel surcharges over the past three months has positively affected travel.

Between March and May, the airline booked a 1.57 million seats, equivalent to 75% of pre-pandemic levels.

Steve F. Dailisan, communications and public affairs country head for AirAsia, welcomed the lower surcharge.

“Now that AirAsia Philippines has opened more international destinations, our guests can use the extra savings toward additional baggage allowance for pasalubong and other activities on their travel bucket list,” he said. — Justine Irish D. Tabile

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