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The economic upside of the 2026 budget

STOCK PHOTO | Image by Vectorjuice from Freepik

After a near stalemate and despite challenges encountered, the 2026 budget was finally approved by the bicameral conference committee. Next year’s P6.793-trillion budget is higher than the P6.326 trillion in effect this year.

The budget tells us many things, especially in terms of what this administration holds important, the competing issues it must weigh for the country’s growth and development, as well as the direction it wishes to take in being an investment-driven economy.

In its current form, the 2026 budget transmits positive signals to the Filipino public and to the business community. They are indications of stability, genuine intention to introduce reforms, a desire to strengthen local economies, a high awareness of risks, and a prioritization of human capital.

Foremost, the budget clearly reflects the economic agenda of the Marcos administration. The priority is clear, and that is to have steady fundamentals to lessen uncertainty and make planning easier for current and potential investors alike. International organizations like the World Bank and International Monetary Fund have downgraded their projections on the Philippines’ economic growth. The Philippines is resolute to achieve its growth targets nonetheless.

The 2026 budget is the first to be approved through a transparent process, with deliberations live-streamed and archived. This is a move that should inspire confidence among investors and the public alike, especially given the public works scandal that the nation is now facing. Transparent deliberations show that the government is serious about drastically minimizing the opportunities for corruption and other sinister moves on the part of public servants. While the livestream was not without challenges, it was clearly a move to improve investor trust in governance and public finance integrity.

Funds were also realigned toward health and disaster risk management. There was a conscious effort to divert funds away from the corruption-plagued Department of Public Works and Highways, whose budget was slashed by P351.4 billion to P520.6 billion, 40% lower than the P881 billion originally proposed by the Palace.

While the administration is cognizant of the need for infrastructure development and its multiplier effects, the 2026 budget showed caution in enabling a graft-ridden agency while reforms are still being implemented. The difference in funds was diverted to agencies like PhilHealth and the National Disaster Risk Reduction and Management Fund. These are intended to provide essential health services and ensure disaster resilience among Filipinos.

The 2026 budget also recognizes the supremacy of human capital and the need to invest in our nation’s future. The education sector is receiving a record allocation of P1.38 trillion, targeting workforce skills and human capital development. This will contribute to productivity and competitiveness in a tight labor market.

Finally, the budget intends to boost economic activity, not only on the national level but also on the local and regional level. The big increase in Local Government Support Fund (LGU financial assistance) — from the National Expenditure Program’s proposed P5 billion to about P37 billion — could drive regional infrastructure and services, pushing localized economic activities.

To be sure, despite the relative transparency of the process, several concerns have been raised. For instance, the restoration of P243 billion in unprogrammed appropriations raises concerns about transparency and accountability, given past controversies surrounding its use. While these funds provide flexibility to address unforeseen expenses and foreign-assisted projects, their reliance on excess revenues or foreign loans poses risks to fiscal stability. In fact, the Senate initially sought to eliminate unprogrammed appropriations entirely, citing concerns over its potential for misuse and lack of immediate funding.

However, the bicameral committee ultimately retained the funds, with assurances that they would not be used for controversial projects like flood control. Unprogrammed appropriations remains a critical tool for funding foreign-assisted projects and social programs, which are essential for development. All this simply exerts greater pressure on the government to ensure that such funds are allocated effectively, spent for the pure benefit of the people, and are handled free from corruption.

The budget does provide opportunities for economic growth through strategic investments. For instance, despite constraints, the inclusion of funding for foreign-assisted infrastructure projects. Approximately 55% of the P243 billion in unprogrammed appropriations is allocated to infrastructure projects co-financed by international development partners, such as the Japan International Cooperation Agency, the World Bank, and the Asian Development Bank.

Projects such as the Metro Manila Subway and the North-South Commuter Railway present an opportunity to boost economic activity, improve transportation, and attract foreign investments. Policymakers must focus on maximizing the impact of these projects while ensuring that they align with long-term economic goals.

In the end, the 2026 budget and the process that attended its finalization show the administration’s awareness of the issues that have prevented the budget from truly belonging to the people, and its intention to address these issues once and for all. Often, there are no clear-cut answers, and the decisions are about weighing the advantages and disadvantages of one course of action over another.

May the 2026 budget truly achieve its objective of helping Filipinos achieve a better quality of life and propel the Philippines to greater economic heights.

 

Victor Andres “Dindo” C. Manhit is the president of the Stratbase ADR Institute.

Megaworld sells additional 11% stake in Suntrust Resort Holdings

NEGATIVE SPACE/PEXELS.COM

LISTED property developer Megaworld Corp. has sold more of its stake in integrated resort developer Suntrust Resort Holdings, Inc.

In a stock exchange disclosure on Tuesday, Megaworld said it disposed of 814.67 million common shares in Suntrust through the open market at 60 centavos per share.

The shares represented an 11.24% interest in the resort developer, it added.

This follows an earlier sale of 900 million common shares at the same price, which accounted for a 12.41% stake in Suntrust.

Megaworld’s sister firm, Travellers International Hotel Group, Inc., recently gained majority control of the Westside Integrated Resort Project in Parañaque City.

Suntrust’s stake in the project has been reduced to 20% amid construction delays and financial setbacks. — Beatriz Marie D. Cruz

Why there’s always room for dessert — an anatomist explains

PHILSTARLIFE.COM

YOU PUSH BACK from the table after Christmas lunch, full from an excellent feast. You really couldn’t manage another bite — except, perhaps, a little bit of pudding. Somehow, no matter how much you’ve eaten, there always seems to be room for dessert. Why? What is it about something sweet that tempts us into “oh, go on then?”

The Japanese capture this perfectly with the word betsubara, meaning “separate stomach.” Anatomically speaking, there is no extra compartment, yet the sensation of still having space for pudding is widespread enough to deserve a scientific explanation.

Far from being imaginary, the feeling reflects a series of physiological and psychological processes that together make dessert uniquely appealing, even when the main course has felt like the limit.

A good place to start is with the stomach itself. Many people picture it as a fixed-size bag that fills steadily until it can take no more, as though another mouthful would cause it to overflow.

In reality, the stomach is designed to stretch and adapt. As we begin to eat, it undergoes “gastric accommodation”: the smooth muscle relaxes, creating extra capacity without a major increase in pressure.

Crucially, soft and sweet foods require very little mechanical digestion. A heavy main course may make the stomach feel distended, but a light dessert, such as ice cream or mousse, barely challenges its workload, so the stomach can relax further to make space.

HEDONIC HUNGER
Much of the drive to eat dessert comes from the brain, specifically the neural pathways involved in reward and pleasure. Appetite is not governed solely by physical hunger. There is also “hedonic hunger,” the desire to eat because something is enjoyable or comforting.

Sweet foods are particularly potent in this respect. They activate the brain’s mesolimbic dopamine system, heightening motivation to eat and temporarily weakening fullness signals.

After a satisfying main course, physiological hunger may be gone, but the anticipation of a sugary treat creates a separate, reward-driven desire to continue eating.

Another mechanism is sensory-specific satiety. As we eat, our brain’s response to the flavors and textures on the plate gradually diminishes, making the food less interesting. Introducing a different flavor profile — something sweet, tart, or creamy — refreshes the reward response.

Many people who genuinely feel they cannot finish their main course suddenly discover that they “could manage a little pudding” because the novelty of dessert re-engages their motivation to eat.

Desserts also behave differently once they reach the gut. Compared with foods rich in protein or fat, sugary and carbohydrate-based foods empty from the stomach quickly and require relatively little early breakdown, contributing to the perception that they are easier to accommodate even when you are full.

Timing plays a role, too. The gut-brain signaling that creates the sensation of fullness does not respond instantly.

Hormones such as cholecystokinin, GLP-1 and peptide YY rise gradually and typically take between 20 and 40 minutes to produce a sustained sense of satiety. Many people make decisions about dessert before this hormonal shift has fully taken effect, giving the reward system space to influence behavior.

Restaurants, consciously or otherwise, often time dessert offerings within this window.

Layered onto these biological processes is the influence of social conditioning. For many people, dessert is associated with celebration, generosity or comfort. From childhood onwards, we learn to regard desserts as treats or as natural components of festive meals.

Cultural and emotional cues can trigger anticipatory pleasure before the food even arrives. Studies consistently show that people eat more in social settings, when food is freely offered, or during special occasions — all situations where dessert typically features.

So the next time someone insists they are too full for another mouthful of dinner but somehow finds space for a slice of cake, rest assured: they are not being inconsistent. They are simply experiencing a perfectly normal and rather elegant feature of the human body. — The Conversation via Reuters Connect

 

Michelle Spear is a Professor of Anatomy at the University of Bristol.

Peso weakens further on dollar demand

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THE PESO dropped on Tuesday on increased demand for the dollar before the holidays.

The local unit closed at P58.85 per dollar, declining by 12 centavos from its P58.73 finish on Monday, Bankers Association of the Philippines data showed.

The peso opened Monday’s session slightly stronger at P58.70 against the dollar. Its intraday best stood at P58.655, while it dropped to as low as P58.88 versus the greenback.

Dollars exchanged climbed to $1.14 billion on Tuesday from $869.5 million on Monday.

“The peso closed higher. It was usually trading in a tight range,” a trader said in a phone interview. “Maybe because ahead of the holidays, there was some dollar demand ahead of the holiday.”

Bargain hunting by those with dollar requirements offset the support provided by holiday remittances, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The trader added that the November fiscal performance data released on Tuesday may have also affected market sentiment.

The government’s budget deficit narrowed by 55.4% year on year to P157.6 billion in November from P213 billion, the Bureau of the Treasury said. This was a reversal from the P11.2-billion surplus posted in October.

Philippine financial markets are closed on Dec. 24-25 for the Christmas holidays.

Meanwhile, the dollar index, which measures the US currency against six rivals, slid 0.2% to 98.061 on Tuesday, extending losses into a second day after dropping 0.5% on Monday, Reuters reported.

Investor focus was on US gross domestic product data due later on Tuesday. The data will likely confirm what economists call a K-shaped economy in which higher-income households are doing well, while middle- and lower-income are barely staying afloat. — Katherine K. Chan

The Philippines at a digital crossroads: Why trust will define 2026

STOCK PHOTO | Image by Stockgiu from Freepik

Every December, before the holidays fully take over, I try to find a quiet corner somewhere to reflect on the year that has passed. This time, I ended up in a small coffee shop in BGC, watching people go about their routines. One customer tapped her phone to pay. Someone beside her renewed a subscription online. Another checked a news update. A group of students scrolled through videos, debating whether what they watched was real. It occurred to me in that moment that almost everything we do today requires trust in a digital system. It also occurred to me how fragile that trust has become.

When people are asked what they trust, whether government services, financial platforms, digital identities, or even the information they consume online, their answers no longer come easily. Some are optimistic, many are doubtful, and quite a few admit they are simply moving through digital life because they have no choice. That quiet scene reminded me of a tension we have been struggling with all year: How can we build a strong digital nation when trust is the very thing that seems to be slipping through our fingers?

The trust deficit is not imagined. The country has been facing a steady wave of allegations, controversies, and corruption-related issues. Whether these accusations are substantiated or not, the public perception they create is powerful. Digital platforms have amplified this problem because information — or misinformation — spreads long before the truth can catch up. The tools meant to democratize access to information are also being used to distort it. As someone who works deeply in AI, blockchain, and cybersecurity, I have seen this erosion of trust firsthand across sectors. I have also seen how crucial trust is to progress. Without it, even the best innovations stall.

This is why I believe 2026 must be the year we commit to building a digital trust architecture for the Philippines. Not just to modernize systems and improve efficiency, but to restore confidence in how decisions are made, how money is spent, how identities are verified, and how truth is determined.

One of the most encouraging developments this year was the approval of funding in the national budget for the CADENA (Citizen Access and Disclosure of Expenditures for National Accountability) bill. I have always supported this measure because it represents a major step toward more transparent government processes. CADENA lays the groundwork for using blockchain and similar technologies to create tamper-resistant records across critical government transactions. In a country consistently challenged by corruption, adopting systems that cannot be quietly altered is one of the most powerful reforms we can make. CADENA will not eliminate corruption overnight, but it will make manipulation far more difficult and accountability far more traceable. As more agencies adopt its mechanisms, the bill has the potential to change not only government systems but public expectations of integrity.

Blockchain’s role in governance goes beyond theory. It can ensure that procurement records are permanent, that project timelines and disbursements remain visible throughout their lifecycle, and that important documents cannot simply go missing. Many countries have already operationalized similar models with measurable success. The Philippines is finally taking the first meaningful step toward this direction, and I strongly support its full implementation in 2026.

AI also has a vital role to play in restoring trust. It can detect anomalies in government spending, highlight unusual contractor patterns, and surface irregularities long before an issue becomes a scandal. AI transforms oversight from reactive to preventive. Instead of waiting for someone to blow the whistle, systems themselves can alert auditors and leaders to questionable activity. Used responsibly, this creates a more transparent and accountable governance environment.

At the same time, none of these reforms will hold if cybersecurity remains weak. A nation cannot rebuild trust if its systems can be breached, its records altered, or its data stolen. Strengthening cybersecurity is not an IT upgrade. It is a national integrity upgrade. When databases are protected and access is strictly controlled, confidence naturally grows. Citizens begin to believe that their institutions are not only digital but also dependable.

Reflecting on these themes, I realized something important. Nations that thrive in the digital age do not succeed because they have the most apps or the most platforms. They succeed because people believe in the systems that run their society. Trust is the real competitive advantage. Countries with secure digital identities, transparent data trails, and resilient architectures will attract more investment, deliver better public services, and strengthen their democracies. Those without them will struggle, no matter how advanced their technology appears.

For the Philippines, this means facing our reality honestly. We need trusted identity systems so that every citizen can transact confidently. We need trusted records so that public spending can be monitored without ambiguity. We need trusted systems that are secured, audited, and built to withstand manipulation. These are not merely technical goals. They are nation-building goals.

Leadership plays a central role in this. Over the past year, I have spoken to business leaders, government officials, educators, and young people, and the message has been consistent. Trust is no longer something we can hope for. It must be designed into our systems. Leaders must be ready to embrace transparency, even when it is uncomfortable. They must be willing to reduce discretion and rely more on processes that are verifiable and permanent. They must commit to adopting technologies that safeguard integrity.

If we choose this path, the benefits are enormous. Investors will enter a market where data is dependable. Citizens will support institutions that demonstrate accountability. Businesses will innovate more vigorously in an environment that is secure. And communities will gain confidence that the country is moving in a direction where fairness is systemic, not selective.

The Philippines is truly standing at a digital crossroads. We can continue relying on old structures and hope public trust will somehow return, or we can make 2026 the year we rebuild trust through deliberate, structural, technology-enabled reform. As I watched people in that coffee shop rely on invisible systems to live their daily lives, I felt a sense of responsibility. If technology touches everything now, then the systems behind it must be worthy of the trust they ask of us.

We have a rare opportunity. With blockchain slowly being adopted, with AI and cybersecurity more mature, and with strong private sector momentum, we can redesign our digital ecosystem in a way that strengthens the very foundation of our society. 2026 can be the year the Philippines rebuilds trust at scale. But only if we choose to make it so.

 

Dr. Donald Patrick Lim is the founding president of the Global AI Council Philippines and the Blockchain Council of the Philippines, and the founding chair of the Cybersecurity Council, whose mission is to advocate the right use of emerging technologies to propel business organizations forward. He is currently the president and COO of DITO CME Holdings Corp.

Agritech startup plans yield insurance to shield farmers from climate risks

PHILSTAR FILE PHOTO

By Beatriz Marie D. Cruz, Reporter

AGRILEVER, a local agritech startup, plans to launch a yield guarantee insurance product next year to protect farmers from income losses caused by natural disasters.

“This means we aren’t just giving farmers capital; we are guaranteeing profits for those who follow our agronomy advice. We are effectively removing the risk from the equation,” Agrilever Co-founder Yoav Schwalb said in an e-mail to BusinessWorld.

The startup is aiming to expand partnerships with insurance companies to support up to one million farmers through its upcoming new products.

“We are taking a phased, scalable approach. We are targeting an initial proof of concept (POC) with 150,000 farmers,” Mr. Schwalb said.

Agrilever seeks to improve Filipino rice farmers’ access to financing and technology to help raise productivity. Its services include smartphone and mobile data packages, as well as on-the-ground support for farmers.

The company is also looking to onboard four additional partner banks to extend more loans to farmers, Mr. Schwalb said.

At present, its partner institutions include the Land Bank of the Philippines, Guagua Rural Bank, Inc., SNR Bank, and Bank of the Philippine Islands (BPI) subsidiary BPI Direct BanKo, Inc.

Latest data from the Philippine Statistics Authority showed that farmers posted a poverty incidence rate of 27% in 2023, making them among the country’s poorest sectors.

Farmers continue to face challenges such as rising input costs, limited access to capital, competition from imports, and land disputes.

Mr. Schwalb also said unstable farmgate prices remain a major issue due to extreme weather conditions and unfair trading practices.

“To address this, we are currently developing Asia’s first downside protection mechanism for farmgate prices — similar to the safety nets farmers enjoy in the United States,” he said.

Agrilever said about 98% of the country’s rice farmers remain unbanked.

Mr. Schwalb noted that farmers’ non-performing loan ratio remains close to the Bangko Sentral ng Pilipinas’ latest reported industry average of 3.31% as of September.

“This validates our credit scoring model — farmers want to pay, and when given the right tools, they do,” he said.

Earlier this year, Agrilever launched a digital application that provides data-driven tools for farmers, including crop management, loan monitoring, and digital credit scoring.

The company recently partnered with US-based weather intelligence firm Tomorrow.io to integrate artificial intelligence-powered weather insights into its platform.

Agrilever is also looking to integrate a smart contract marketplace into its app to ensure transactions between farmers and buyers are properly executed, Mr. Schwalb said.

“When you combine guaranteed yields with transparent contracts, you create an environment where banks are eager to lend and farmers are confident to borrow,” he noted.

The startup is targeting two million downloads of its digital app next year.

For 2026, Agrilever plans to partner with more insurance technology firms and logistics providers to further support its financing initiatives and smart contract offerings, Mr. Schwalb said.

Barry Manilow shares cancer diagnosis as surgery prompts concert cancellations

AMAZON.COM

LOS ANGELES — US singer-songwriter Barry Manilow announced on Monday through Instagram that he has been diagnosed with lung cancer, prompting him to pause his scheduled concerts while he undergoes surgery.

“As many of you know I recently went through six weeks of bronchitis followed by a relapse of another five weeks,” the 82-year-old Grammy-winner wrote in the Instagram statement.

“Even though I was over the bronchitis and back on stage at the Westgate Las Vegas, my wonderful doctor ordered an MRI just to make sure that everything was OK. The MRI discovered a cancerous spot on my left lung that needs to be removed,” he said.

Mr. Manilow included the new schedule for his concerts in his post, and said he expects to be feeling better by February since his treatment does not require radiation or chemotherapy.

“Just chicken soup and I Love Lucy reruns,” Mr. Manilow wrote, referring to a classic US sitcom.

The singer ended his post by urging people to get tested if they have any health concerns.

Mr. Manilow, whose hits include songs “Mandy,” “Copacabana,” and “Can’t Smile Without You,” has a career spanning over 60 years.

He attended the New York College of Music and the Juilliard School, where he studied musical theater.

Apart from being a songwriter, Mr. Manilow has also worked on numerous films, Broadway shows and television productions.

His acting included roles in the film Hellboy II: The Golden Army and the television shows Family Guy, and Will and Grace.

Mr. Manilow married his high-school sweetheart, Susan Deixler, in 1964, but the marriage was short-lived.

In 2017, he spoke for the first time about being gay and his previously secret, almost 40-year romance with husband Garry Kief, saying he feared he would disappoint his mostly female fan base had he come out decades ago.

Mr. Manilow and his manager Mr. Kief, whom he met in 1978, had been together for years before marrying quietly in Palm Springs, California, in 2014. — Reuters

SEC tightens sustainability, ownership disclosure rules for companies

SEC.GOV.PH

By Alexandria Grace C. Magno

THE Securities and Exchange Commission (SEC) has mandated publicly listed companies (PLCs) and large non-listed entities (LNLs) to adopt Philippine Financial Reporting Standards (PFRS) S1 and S2 for sustainability disclosures, with phased implementation starting in fiscal year 2026.

Memorandum Circular (MC) No. 16, Series of 2025, provides guidelines for sustainability reporting and a roadmap for PLCs and LNLs to implement the new standards.

Beginning 2026, covered entities must follow PFRS S1, General Requirements for Disclosure of Sustainability-related Financial Information, and PFRS S2, Climate-related Disclosures, in a tiered approach based on market capitalization or annual revenue.

Tier 1 covers PLCs with market capitalization over P50 billion as of Dec. 31, 2025, with reporting starting in 2027. Tier 2 includes PLCs with market capitalization from P3 billion to P50 billion, with reporting starting in 2028.

Tier 3 comprises PLCs with market capitalization of P3 billion or less and LNLs with annual revenue exceeding P15 billion, with reporting starting in 2029.

“Market capitalization shall refer to the market value of a PLC’s outstanding equity securities, calculated as the total number of outstanding shares multiplied by their respective closing or last traded prices as of 31 December 2025,” the SEC said. Companies listed after Dec. 31, 2025, will base capitalization on the listing date.

MC No. 16 also provides transition reliefs, including delayed reporting timelines, exemptions from comparative disclosures, and phased mandatory limited assurance on Scope 1 and 2 greenhouse gas emissions.

LNLs are exempt if their parent company already prepares sustainability disclosures in the Philippines.

In a separate move, the SEC issued MC No. 15, Series of 2025, imposing stricter rules on beneficial ownership (BO) disclosure.

The rules aim to “reduce the risk of corporate entities being misused for illicit activities,” SEC Chairperson Francis Ed. Lim said.

The circular requires domestic and foreign corporations, partnerships, and one-person corporations to disclose detailed information on natural persons who own or control at least 20% of the entity or otherwise influence its affairs.

Companies must maintain accurate records, including names, addresses, tax identification numbers, nationalities, and ownership percentages.

A dedicated web-based BO registry will replace the current GIS system, and annual attestation of prior submissions will be required unless changes occur. Failure to disclose BO information will result in fines, which vary depending on retained earnings or fund balance, and may include disqualification of responsible officers. False information can incur fines of up to P2 million and may lead to corporate dissolution.

The new rules will take effect on Jan. 1, 2026.

This regulatory overhaul aims to improve corporate transparency, align sustainability reporting with global standards, and streamline beneficial ownership disclosures for better regulatory oversight, the SEC said.

Japan issues sternest intervention warning, says yen deviating from fundamentals

JAPANESE Yen and US dollar banknotes are seen in this illustration taken March 10, 2023. — REUTERS

TOKYO — Japan has a free hand in dealing with excessive moves in the yen, Finance Minister Satsuki Katayama said on Tuesday, issuing the strongest warning to date on Tokyo’s readiness to intervene in the currency market to arrest sharp declines in the currency.

“They absolutely do not reflect fundamentals,” Ms. Katayama told a news conference on the yen’s declines after Bank of Japan (BoJ) Governor Kazuo Ueda’s news conference last week.

“I don’t believe they would have gone that far unless there were speculative moves. The government will take appropriate action against excessive moves,” based on Japan’s agreement with the US in September on exchange rate policy, she said.

The remarks mostly echo those she made in an interview with Bloomberg on Monday.

The yen rose to around 156 per US dollar on Ms. Katayama’s remarks on Tuesday, though it wasn’t too far from the 11-month low of 157.78 touched on Friday.

In a joint statement issued in September, Japan and the US reaffirmed their commitment to “market-determined” currency rates, while agreeing that foreign exchange interventions should be reserved for combating excess volatility.

Japanese policymakers have cited the statement as giving them the right to intervene when yen moves deviate from economic fundamentals and make excessively big swings.

Tokyo last stepped into the foreign exchange market in July 2024, buying yen after the currency hit a 38-year low of 161.96 per dollar.

“If the dollar climbs past the post-BoJ press conference highs into 158 yen and beyond, the government would conduct intervention at some point for sure,” Hiroyuki Machida, director of Japan FX and commodities sales at ANZ, said.

A weak yen has become a source of headache for Japanese policymakers as it pushes up import prices and broader inflation, thereby increasing households’ cost of living.

Tuesday’s remarks contrasted with those Ms. Katayama made on Monday, when she said Japan will take appropriate action but did not define recent yen moves as out of line with fundamentals.

The BoJ raised interest rates to 0.75% on Friday, taking them to levels unseen in 30 years in another landmark step in ending decades of huge monetary support.

While the move helped narrow the interest rate gap with the US, the yen fell as markets interpreted comments from Mr. Ueda’s post-meeting press conference as signaling the BoJ was in no rush to raise rates further.

ANZ’s Mr. Machida said the yen’s recent weakness reflects both the government’s reflationary fiscal policies and the BoJ’s still-easy monetary policy.

With Prime Minister Sanae Takaichi’s administration preparing an expansionary budget for the next fiscal year, the market needs to see further monetary tightening for a correction in the yen’s weakness, he said. — Reuters

The new rules on extradition: Streamlining international cooperation while safeguarding due process

STOCK PHOTO | Image from Freepik

On April 8, the Supreme Court of the Philippines approved the Rules on Extradition Proceedings through A.M. No. 22-03-29-SC, marking a major procedural reform on how the country handles extradition cases. Effective Nov. 10, the Rules were promulgated to make extradition proceedings consistent, clear, and efficient. They cover all proceedings related to extradition, including applications for warrants of arrest, hold departure orders, and applications for bail. This codification reflects the judiciary’s commitment to harmonizing international obligations with domestic due process requirements.

CLEARER, MORE COHERENT FRAMEWORK
The Rules provide clarity on the scope and nature of extradition proceedings. Under Rule 1, Section 2, it applies to “all proceedings related to Extradition, including applications for warrants of arrest or hold departure orders, whether provisional and precautionary or otherwise, and applications for bail.”

Extradition is a process to remove a person from the Philippines to a foreign state to face prosecution or serve a sentence. Rule 1, Section 6 underscores that extradition proceedings are sui generis and summary in nature, clarifying that courts do not adjudicate guilt or innocence.

The Rules also delineate the roles of key authorities. The Central Authority, under Rule 1, Sec. 3(a) is the Secretary of Justice or a designated State Counsel who manages all requests for extradition before the courts and represents the requesting state. The Executive Authority, under Rule 1, Sec. 3(c), is the Secretary of Foreign Affairs or an authorized official who determines whether the extradition request meets legal and treaty requirements before forwarding it to the Central Authority.

EXTRADITABLE OFFENSES, PRINCIPLE OF DUAL CRIMINALITY
The Rules define an extraditable offense as one “punishable under the laws of both the Philippines and the requesting state by imprisonment or other deprivation of liberty” (Sec. 4, Rule 1). Complementing this, Sec. 5, Rule 1 provides the principle of dual criminality, which holds that the offense need not bear the same name or classification in both jurisdictions, provided the underlying conduct is criminal in both states. This echoes the principle in Government of Hongkong Special Administrative Region v. Muñoz1 where the Supreme Court ruled that under the double criminality rule, the extraditable offense must be criminal under the laws of both the requesting and the requested states.

Extradition proceedings formally commence with a verified petition filed by the Central Authority before the designated Extradition Court (Rule 2, Sec. 1). This court, a second-level trial court where the extraditee resides, retains jurisdiction throughout the case, even if the person moves to another locality.

The Rules strictly limit pleadings to the petition, answer, and bail-related filings. As stated in Rule 2, Sec. 11, motions for reconsideration, certiorari, or new trial are prohibited, thereby preventing dilatory tactics and promoting the summary nature of extradition proceedings. Hearings are designed to be swift and courts are required to decide within 30 days from the date the last witness is presented.

STANDARDS FOR WARRANT OF ARREST, BAIL
Before issuing an extradition warrant, the Extradition Court conducts an ex parte review to ensure that the petition is sufficient in form and substance and that probable cause exists. Probable cause is defined as “the existence of such facts and circumstances that would lead a reasonably discreet and prudent person to believe that the person sought to be arrested is extraditable” (Rule 2, Sec. 4). Once satisfied, the court issues an Extradition Warrant of Arrest.

The Rules establish a clear standard for bail. Under Rule 3, Sec. 1, bail may only be granted if the extraditee proves by clear and convincing evidence that they are not a flight risk and will abide by all the orders and processes of the Extradition Court. Bail is categorically denied to extraditees sought for the service of a sentence for a prior conviction in the requesting state or who have been convicted but not yet sentenced by the requesting state. This standard, previously articulated in Government of the United States v. Purganan2, is now formally included in the Rules.

For urgent cases, provisional arrest is also recognized (Rule 4, Sec. 1), allowing the Department of Justice to act while the requesting state completes formal documentation. The requesting state must then file with the Executive Authority the complete request within 60 days from the provisional arrest of the extraditee, or the extraditee must be released.

JUDGMENT, APPEAL, AND FINALITY
Once the Extradition Court finds a prima facie case, the petition is granted. Rule 2, Sec. 15 enumerates the criteria for granting extradition:

1. The petition complies with the law and the applicable Extradition treaty;

2. The Extraditee is the same person identified in the warrant of arrest, indictment, or judgment issued by the Requesting State;

3. The offense is an extraditable offense;

4. The Extraditee committed the offense subject of the warrant of arrest, indictment, or judgment issued by the Requesting State; and,

5. None of the grounds for mandatory refusal of Extradition under the applicable Extradition Treaty or international law and conventions raised by the Extraditee exists.

Either party may appeal to the Court of Appeals within 10 calendar days. The appellate decision is final and immediately executory (Rule 2, Sec. 18).

VOLUNTARY AND TEMPORARY SURRENDER
The Rules also introduce voluntary surrender. Under Rule 5, Sec. 1, the extraditee may waive formal proceedings via a notarized affidavit, executed with the assistance of counsel. Once the court confirms the waiver is knowing and voluntary, it issues an order directing surrender and terminating any pending proceedings.

Additionally, temporary surrender is provided for under Rule 2, Sec. 17, allowing the extradition to be postponed when domestic prosecutions are pending.

Significantly, the Rules apply to all pending extradition proceedings, including ongoing applications for warrants, hold departure orders, or bail (Rule 6, Sec. 4). This ensures that even in-flight cases conform to the streamlined procedures.

BALANCING EFFICIENCY, DUE PROCESS
The Rules on Extradition Proceedings represent a landmark reform in Philippine procedural law. By putting together jurisprudential standards on extradition, streamlining procedures, and institutionalizing inter-agency coordination, the Rules provide a standard and efficient framework for responding to lawful extradition requests.

In a world of increasingly cross-border crimes, these Rules signal that the Philippines is capable of balancing sovereignty, international cooperation, and constitutional due process. Success will be measured not only by procedural efficiency but also by the fidelity with which the judiciary protects liberty while honoring global obligations.

1G.R. No. 207342, Aug. 16, 2016.

2G.R. No. 148571, Sept. 24, 2002.

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

 

Mia Alexis A. Adarna is an associate of the Angara Abello Concepcion Regala & Cruz Law Offices (ACCRALAW), Cebu Branch.

maadarna@accralaw.com

Arthaland, Mitsui Fudosan unit partner on Makati luxury condo project

ARTHALAND CENTURY PACIFIC TOWER — ARTHALAND.COM

LISTED property developer Arthaland Corp. has signed a joint venture agreement (JVA) with its subsidiary Zileya Land Development Corp. (Zileya) and SEAI Metro Manila One, Inc. (SEAIMMO) to develop a condominium project in Makati City.

In a stock exchange disclosure on Tuesday, Arthaland said the JVA and investment agreement cover the development, construction, and sale of a residential condominium along Arnaiz Avenue, Legaspi Village, Makati City.

Under the agreement, SEAIMMO will acquire Arthaland’s rights, title, and interest in 40% of its shareholdings and advances to Zileya, the project company, for P724.83 million.

The amount is subject to the fulfillment of closing conditions specified in the definitive agreements, the company said.

SEAIMMO is a wholly owned subsidiary of Mitsui Fudosan Co., Ltd., a Japanese real estate developer listed on the Tokyo Stock Exchange. — Beatriz Marie D. Cruz

Printing provider widens service scope for small businesses

STOCK PHOTO | Image from Freepik

PRINTING AND SIGNAGE FIRM BesCost Printing said it is expanding its services for small and medium enterprises (SMEs) by offering integrated, end-to-end printing solutions.

The company said the expanded offering aims to address common operational challenges faced by small businesses, including unclear pricing, slow quotations, and the need to coordinate with multiple suppliers.

“Most small businesses do not struggle because of a lack of ideas or effort,” Jim Lester T. Besinio, chief executive officer and founder of BesCost Printing, said in a statement. “They struggle because simple things like getting signage, menus, or marketing materials done on time become complicated.”

Mr. Besinio said the company was built to remove these operational bottlenecks so entrepreneurs can focus on running and growing their businesses.

BesCost Printing offers an integrated model that combines digital printing, large-format signage, fabrication, delivery, and installation. The company said this setup allows SMEs to complete printing requirements through a single provider.

To improve transparency, customers can estimate service costs through the company’s website using a digital print service calculator, after which orders can be placed online.

Since its establishment in 2015, BesCost Printing said it has completed more than 8,000 projects.

The company started operations with an initial investment of P1 million and a 14-square-meter facility along Quirino Highway in Baesa, Quezon City, employing fewer than 10 workers.

It has since expanded to a 500-square-meter production facility and employs at least 36 workers as of September, the company said.

BesCost Printing said it plans to continue supporting SMEs through practical services, noting that small businesses remain a key contributor to the Philippine economy.

“Our role is not just to print,” Mr. Besinio said. “It is to support the people behind the businesses. When our clients grow, that is when we know we are doing our job right.” — Edg Adrian A. Eva

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