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Finance department bats for single tax rate on vapor products

PIXABAY

THE DEPARTMENT of Finance (DoF) pushed for a single tax rate on Thursday on all types of nicotine and vapor products to ease the collection burden on the Bureau of Internal Revenue (BIR).

“It is very hard for the Bureau of Internal Revenue to distinguish which is a freebase and a salt nicotine so there is actually an incentive for manufacturers to identity their products as freebase because it is taxed at a lower rate,” Finance Assistant Secretary Karlo S. Adriano Fermin told the Senate blue ribbon committee.

The government imposes a tax of P57 per milliliter (ml) on salt nicotine products, P6.3 per ml on freebase nicotine products, and P65 per 10 ml tax on classic nicotine products, according to the excise tax rates prescribed by the Bureau of Customs for 2024.

“Hence, we want to have a unitary rate for ease of tax administration because the BIR does not have that capacity to determine if this is salt nicotine or freebase,” Mr. Adriano said.

The BIR collected P130.91 billion in tobacco excise taxes in the first 11 months of 2024, well behind the pace needed to hit the year’s target of P185.34 billion.

In a separate statement, Finance Secretary Ralph G. Recto said his department is open to discussions on raising excise tax rates on tobacco products but warned that continuous tax increases could also make it more attractive and profitable to smuggle these products.

“We’re willing to listen because excise taxes on tobacco fell by roughly P50 billion. We want to increase our revenue there.”

“There is a relationship between high rates and illicit trade, smuggling.” Mr. Recto said. “That’s why we are looking for a sweet spot.”

The House ways and means committee is pushing for a moratorium on yearly excise rate increases on tobacco products.

According to an unnumbered substitute bill prepared by the committee obtained by BusinessWorld on Jan. 14, the pause in yearly hikes would start on Jan. 1 next year until Dec. 31, 2026, provided that a 5% increase will then be imposed starting Jan. 1 and every three years thereafter.

“The focus should be on enforcement because that’s what the experience has been,” Adolfo Jose A. Montesa, a program officer of the fiscal policy team at the Action for Economic Reforms, told BusinessWorld on the sidelines of the hearing.

“If you want to reduce illicit trade, you have to make it harder for people to access these products and you have to be able to go after the entire value chain.”

He cited the need for a track and trace system on tobacco products, requiring the DoF to bolster coordination with law enforcement bodies, and to impose stiffer penalties against smugglers.

President Ferdinand R. Marcos, Jr. has signed a law classifying agricultural smuggling, hoarding, profiteering, and financing of these crimes as acts of economic sabotage, if the goods exceed a valuation threshold of P10 million. — John Victor D. Ordoñez

BDO sees growth topping 6% in 2025; BPI estimates 6.3%

PHILIPPINE STAR/MIGUEL DE GUZMAN

THE economy’s 2025 expansion is expected to top 6% in 2025, Banco de Oro Unibank Inc. (BDO) said, with the Bank of the Philippine Islands (BPI) giving a 6.3% estimate for gross domestic product.

At the 9th Joint Economic Briefing organized by European chambers, BDO Investor Relations Group Senior Vice-President Dante Tinga, Jr. said he expects tempered inflation and lower interest rates boosting investment and consumption, noting that the private sector has had four years of subdued capital expenditure (capex) activity.

“Investments and consumption are picking up. And we believe that corporates that have held back on capex the past four years will resume capex spending, and that should push up Philippine GDP (gross domestic product) to over 6% in 2025,” Mr. Tinga said.

In a note, BPI Lead Economist Emilio S. Neri, Jr. said: “Consumer spending is expected to show stronger growth this year with inflation now at manageable levels. This improvement will likely be most apparent in discretionary spending after a period of slower growth caused by high inflation, as consumers focused more on essentials.”

For the first nine months of 2024, growth averaged 5.8%. Preliminary fourth-quarter and full-year GDP data will be released on Jan. 30.

The government was counting on 6-6.5% GDP growth in 2024, and 6-8% growth this year.

BDO’s Mr. Tinga said household consumption has been picking up from 4.6% in the first quarter of 2024 to 5.1% in the third quarter.

“The pickup is driven by improvement in essential spending. Essential spending, or spending by less affluent consumers, has actually been relatively weak since the pandemic,” he said.

He said that because the “inflation show is already behind us,” less affluent consumers are gaining some purchasing power, which increased their spending on basic necessities.

“We’re also seeing an improvement in private consumption and durable equipment, mainly importation of machinery in the third quarter,” he said.

“That’s a positive sign, because the private sector, even though their balance sheets have been healthy, when we talk to them, they held back on investments given volatility in exchange rates and interest rates,” he added.

He said that as interest rates and exchange rates stabilized, private construction and investments in machinery will continue to pick up.

“We are confident that the pick-up in consumption and investments that we saw in the second half of last year can be sustained, mainly because the drivers of private sector demand remain very much intact,” he said.

These drivers are foreign worker deployment, employment levels, and aggregate corporate and household balance sheets.

“For 2024 we are projecting that overseas foreign worker deployment will be over 2.6 million, and then that will translate to stable remittances that help support consumption spending,” he said.

Mr. Neri sees inflation remaining within the Bangko Sentral ng Pilipinas’ (BSP) 2-4% target in the coming months, but noted risks such as the possibility of La Niña and disruptions to global supply chains due to trade barriers.

“Inflation remains sensitive to adverse weather conditions, particularly for vegetable prices, which warrant close attention. On the other hand, stable commodity prices amid China’s economic slowdown, improving rice supply, and President Trump’s push to expand US oil production may offset these risks. Additionally, China’s surplus manufacturing capacity could lead to cheaper imports into the Philippines, further easing inflationary pressures. Average inflation may reach 3.5% in 2025,” he said.

Philippine headline inflation picked up to 2.9% in December from 2.5% in November, marking the third consecutive month of faster inflation.

Still, this was slower than the 3.9% reading in the same month a year prior.

December inflation brought the 2024 average to 3.2%, well below the 6% in 2023 and marking the first time since 2021 that the consumer price index settled within the central bank’s 2-4% annual target. This was also the weakest reading since the 2.4% average in 2020.

With a stable outlook for inflation, Mr. Neri sees the BSP cutting rates by 50 basis points (bps) in the first half, as the latter half could see the Federal Reserve turn hawkish due to US President-elect Donald J. Trump’s protectionist policies.

This would bring the BSP’s key rate to 5.25% by end-2025, which will also support household spending.

BSP Governor Eli M. Remolona, Jr. has said that the central bank is open to delivering another cut in its first policy meeting for this year, which is scheduled for Feb. 20.

However, he said that while the BSP remains in an easing cycle, 100 bps worth of cuts this year may be “too much” due to inflation risks. He added that they will continue to bring down benchmark interest rates in “baby steps.” — Justine Irish D. Tabile and Aaron Michael C. Sy

NCR wholesale building materials price growth steady in December

A WORKER cuts metal in a construction area in Binondo, Manila, March 24, 2022. — PHILIPPINE STAR/ RUSSELL PALMA

WHOLESALE price growth of construction materials in Metro Manila was flat while retail price growth accelerated in December, the Philippine Statistics Authority (PSA) reported on Thursday.

Citing preliminary data, the PSA said the construction materials wholesale price index (CMWPI) in the National Capital Region (NCR) remained at 0.2%, compared with the 1.3% posted a year earlier.

Year to date, the CMWPI averaged 0.6%, significantly lower than the 5.2% a year earlier.

The PSA noted that some sub-indices rose, such as hardware and lumber by 0.7% from 0.5% in the preceding month, and tileworks by 0.4%, compared to 0.3% in November.

“A slower annual decrease was recorded in the index of fuels and lubricants at 1.2% in December 2024 from 1.6% annual decline in the previous month,” the PSA said.

Electrical works price growth was 0.4%, decelerating from 0.5% in November, while structural steel prices declined 0.5%, compared to the 0.1% uptick in the previous month. A steeper decline was seen in plywood, where prices fell 0.5%, compared with the 0.3% decline in November.

Other wholesale indices for commodity groups remained steady.

Diwa C. Guinigundo, country analyst at GlobalSource Partners, said wholesale demand for construction materials in December was relatively steady compared to November as construction activity typically slows during the last quarter of the year.

“I just hope this is not symptomatic of weakening construction activity in general given the report of a potential glut in some high-end segments,” Mr. Guinigundo said via Viber.

The CMWPI is based on constant 2018 prices.

In a separate report, PSA said according to preliminary data, growth in the construction materials retail price index (CMRPI) in Metro Manila accelerated to 1.5% in December from 1.4% in the previous month and 1.4% a year earlier.

The CMRPI averaged 1.2% in 2024, significantly lower than the 2.5% posted a year earlier. This was the weakest reading in five years, or since the 0.7% growth in 2019.

The CMRPI is based on 2012 constant prices.

“The major contributor to the uptrend in the annual rate of CMRPI in NCR was the higher annual increase observed in the heavily-weighted tinsmithry materials index at 2.6% in December 2024 from 2% in the previous month,” the PSA said.

Additionally, electrical materials grew 1.9% in December from 1.8% in November, while masonry materials price growth accelerated to 0.3% from 0.2% a month earlier.

Mr. Guinigundo said the slight increase in retail prices suggests more activity in the smaller construction projects such as housing construction and repairs. — Kenneth H. Hernandez

Top Trump diplomat asks China to stop ‘messing around’ with PHL and Taiwan

PHILIPPINE COAST GUARD PHOTO

By Kyle Aristophere T. Atienza, Reporter

US PRESIDENT-ELECT Donald J. Trump’s pick for top diplomat urged China to stop “messing around” with the Philippines and Taiwan, saying Washington would keep its focus on the Indo-Pacific region.

The US and China could avoid conflicts if the latter would not destabilize the Indo-Pacific region, Florida Senator and Secretary of State-designate Marco Antonio Rubio said at his confirmation hearing, based on a video streamed live on Meta.

China should “stop messing around with Taiwan and with the Philippines, because it’s forcing us to focus our attention in ways we prefer not to have to,” he said.

Washington intends to keep its defense commitment to the Philippines and Taiwan, warning China against any “irrational” acts against them.

“The actions that they are taking now are deeply destabilizing,” Mr. Rubio said. “They are forcing us to take actions because we have defense commitments to the Philippines and we have commitments to Taiwan that we intend to keep.”

“If they want to keep some path of stabilization in our relationship, even as we remain engaged in global competition, and in some cases more adversarial than others, they really need to stop messing around with the Philippines and Taiwan,” he added.

Mr. Rubio’s statement gives clarity to questions hounding the stability of US-Philippines relations under Mr. Trump, who is set to take office on Jan. 20.

Mr. Trump has been known for his America-first policy, raising questions for US allies in the region.

“These pronouncements from the secretary of State-designate Mr. Rubio are undoubtedly reflective of the stance of Trump vis-a-vis China even during his first tenure as America’s president,” Josue Raphael J. Cortez, a diplomacy instructor at De La Salle-College of St. Benilde’s School of Diplomacy and Governance, said in a Facebook Messenger chat.

“We can expect that the trail the US will be pursuing as it works to counterbalance Chinese influence and strategic actions towards both the Philippines and Taiwan will be very much alike with the strategies it employed during the first Trump regime,” he added.

Mr. Rubio accused of China seeking to establish preeminence in the region, which he said will have “historical ramifications” for small nations.

The 53-year-old Republican said China believes “all roads lead back to Beijing.” But countries like Australia, Japan, South Korea and Vietnam do not view themselves as “tributary states,” he pointed out.

Mr. Cortez said given China’s continuous militarization efforts against Manila and Taiwan, “there is also a possibility that aside from pursuing a similar path, the US may further bolster and expand its presence within the region.”

“These are all for the sake of helping out the two countries in ascertaining their territorial integrity and security,” he added.

‘GEOPOLITICAL GAMESMANSHIP’
Ensuring a proper geopolitical balance between the US and China should be a major strategy of Washington, Mr. Rubio, who has served in the Senate since 2011, told the nomination hearing at the Senate foreign relations committee that lasted about five hours.

Regarding Taiwan, he said Washington should make China understand that the cost of invading the self-ruled island would be higher than the benefit.

“I think that’s critical, not just to defending Taiwan (but) to preventing a cataclysmic military intervention in the Indo-Pacific.”

Mr. Rubio described China as the “most potent and dangerous adversary” the US has ever faced.

China claims the South China Sea almost in its entirety, including parts of the waterway that fall within the Philippines’ exclusive economic zone (EEZ).

Manila on Tuesday accused China of intimidating Filipino fishermen near Scarborough Shoal and normalizing its “illegal presence” after Beijing sent its biggest coast guard ship into the Philippine EEZ.

The monster ship, first detected near the Zambales coast on Jan. 4, was last spotted 77 nautical miles west of Capones Island, the Philippine Coast Guard said on Tuesday.

“In line with the US’ ‘ironclad commitment’ to us — popularized by Trump during his first term — and our ever-closer ties with Washington under the Marcos regime, we can expect more agreements between the two leaders given that even Republicans themselves highly value the security commitments America forge with the rest of the world,” Mr. Cortez said.

“The Indo-Pacific is the West’s gateway to further expand its trade with Southeast and East Asia, therefore it is also part and parcel of their national interest that they get to have the dominant hand in its affairs,” he added.

Ateneo Policy Center Senior fellow Michael Henry Ll. Yusingco said the Marcos government should resist the temptation to use Mr. Rubio’s soundbite in its national security messaging.

“This is how the US projects power, but the Marcos government shouldn’t rely on this as a commitment set in stone,” he said via Messenger chat.

He urged the government to build a constituency behind its national security policy “by highlighting what we need to do to protect ourselves.” “We must be projecting internal fortitude and resolve to defend our sovereignty and way of life. We shouldn’t be acting like a former colony of the US,” he added.

“The US is an ally and their politicians can huff and puff against their adversaries all they want,” Mr. Yusingco said. “But we shouldn’t allow ourselves to be a pawn in their geopolitical gamesmanship.”

“The Marcos administration shouldn’t project itself as a mere US mouthpiece in Asia. So he shouldn’t conflate this soundbite with our national defense messaging,” he added.

Also on Thursday, Philippine and Chinese representatives met in Xiamen, Fujian in China — the hometown of majority of Chinese Filipinos — for their 10th bilateral consultation on the South China Sea, the Philippines’ Department of Foreign Affairs (DFA) said in a statement.

DFA Undersecretary Ma. Theresa P. Lazaro and Chinese Vice Foreign Minister Chen Xiaodong had “frank and constructive discussions” on the situation in the South China Sea and other bilateral issues.

“Our position is clear and consistent, but so is our willingness to engage in dialogue,” Ms. Lazaro said in her opening remarks. “We firmly believe that despite the unresolved challenges and differences, there is genuine space for diplomatic and pragmatic cooperation in dealing with our issues in the South China Sea.”

The two sides exchanged views on the Philippines’ rotation and reprovisioning missions to BRP Sierra Madre at Second Thomas Shoal and “agreed to continue its implementation to sustain the de-escalation of tensions without prejudice to respective national positions.”

The Philippines also expressed serious concern about the recent activities of China Coast Guard ships including its biggest one near Philippine maritime zones. These are inconsistent with the 1982 United Nations Convention on the Law of the Sea the Philippine Maritime Zones Act, it said.

“The meeting agreed to reinvigorate the platform for coast guard cooperation,” the DFA said. “The two sides also identified ocean meteorology as an area of focus for a workshop on marine scientific cooperation.”

The Philippines will host the next bilateral consultation mechanism at a later date, it said.

House won’t push Sara’s impeachment — lawmaker

VICE-PRESIDENT SARA DUTERTE-CARPIO — PHILIPINE STAR/ RYAN BALDEMOR

By Kenneth Christiane L. Basilio, Reporter

THE House of Representatives is no longer keen on pursuing impeachment complaints against Vice-President Sara Duterte-Carpio given President Ferdinand R. Marcos, Jr.’s opposition to it, a congressman said on Thursday.

The House is also not sure whether it could get a conviction before the Senate, Manila Rep. Bienvenido M. Abante, Jr. told a virtual news briefing on Thursday.

Many of his colleagues also think they don’t have much time. Filipinos will choose a new set of congressmen for the House and 12 of the 24-member Senate on May 12, apart from other local government officials.

“The lawmakers I’ve talked to are more amenable to discuss impeachment in the next Congress,” he said in Filipino.

Ms. Duterte is at the center of a developing political crisis after the collapse of her alliance with Mr. Marcos, a union that propelled them to two of the country’s highest posts in 2022.

The estranged vice-president has since criticized the Marcos government and had threatened to have Mr. Marcos, his wife and the Speaker assassinated if she was killed.

She made these comments amid a House investigation of her alleged misuse of P612.5 million worth of confidential and intelligence funds in 2022 and 2023. She has denied any wrongdoing, calling the probe politically motivated.

The Office of the Vice-President did not immediately reply to an e-mail seeking comment.

The House should hear the impeachment complaints even if the President is against it, Michael Henry Ll. Yusingco, a constitutionalist and senior research fellow at the Ateneo Policy Center, said in a Facebook Messenger chat.

“It is unconstitutional for the President to interfere in the impeachment process, either to say that it should proceed or not,” he said. “Impeachment is a constitutional duty imposed on lawmakers who are expected to perform this duty with independence.”

At least three impeachment complaints against Ms. Duterte have been submitted to the House. While some congressmen from the majority have said they would toe the president’s line, civil groups and minority lawmakers remained bent on her removal.

She faced a slew of impeachment raps filed by civil society groups, activists and clergymen in December. They accused Ms. Duterte of corruption, bribery and betrayal of the public trust.

“Why waste time on it?” Mr. Marcos said in November. “None of this will help improve a single Filipino life. As far as I’m concerned, it’s a storm in a teacup.”

“That statement… is quite strong,” Mr. Abante said in mixed English and Filipino. “We must remember that the President still has influence over a lot of congressmen. I think some congressmen are cool (to the impeachment) because of the President’s pronouncement.”

Any Filipino can file an impeachment complaint at the House of Representatives, but at least a third of the chamber must approve it so an impeached official could be tried by the Senate sitting as an impeachment court.

“We are not actually sure if the Senate will proceed with the impeachment or approve it,” Mr. Abante said.

While the House is led by Speaker Ferdinand Martin G. Romualdez, the president’s cousin, the Dutertes maintain a few key allies in the Senate, including ex-President Rodrigo R. Duterte’s former police general and chief presidential aide.

“The upcoming election is definitely a factor,” Mr. Abante said, remaining optimistic that administration bets would win Senate seats. “Because in midterm elections, it’s usually the administration candidates who win.”

Meanwhile, a minority lawmaker said the House should act on the impeachment complaints to hold Ms. Duterte accountable for her alleged crimes.

“Every day that Ms. Duterte remains in office, we are enabling her to undermine our laws and to continuously perpetuate her family’s legacy of not answering for their crimes,” Party-list Rep. Percival V. Cendana said in a statement.

Also on Thursday, representatives from three impeachment complainants said Ms. Duterte’s removal from office is a “moral obligation” for lawmakers. “To Congress: Honor your constitutional mandate with courage and integrity. History will judge your resolve or your silence,” they said in a joint statement.

MMDA eyes 7 a.m.-4 p.m. work for state employees

PHILIPPINE STAR/MIGUEL DE GUZMAN

THE Metropolitan Manila Development Authority (MMDA) wants work in National Government agencies to start an hour earlier to ease the traffic congestion in the capital region as the main EDSA highway prepares for rehabilitation.

In a statement on Thursday, the agency said it would propose a 7 a.m. to 4 p.m. work schedule to President Ferdinand R. Marcos, Jr., citing its “positive effect” on the traffic flow after it was enforced in local government units.

“Adopting the schedule will bring faster travel time during peak hours in Metro Manila’s major thoroughfares, as well as a decrease in traffic delays,” it added.

The MMDA said about 176,000 National Government workers who use private cars would have to go to work earlier. It added that about 224,000 workers who use public transport could avoid joining the rush hour alongside private sector employees.

MMDA Chairman Romando S. Artes will recommend the plan to the President after getting a consensus from local governments in Metro Manila.

“We’ll get first the consensus of the mayors,” he told a news briefing after a Metro Manila Council meeting. “We’ll coordinate with them and ask them what their preference is so that the data we’ll be submitting to the President is complete and the recommendations will be in line with various experiences of each of the LGUs.”

The MMDA chief seeks to finish the recommendation before March, which is the target date for the start of the EDSA rehabilitation.

San Juan City Mayor and Metro Manila Council President Francis M. Zamora and Pasay City Mayor Emi Calixto-Rubiano both expressed support for the new work schedule, the MMDA said.

Manila was the 14th most congested city in the world, with an average travel time of 32 minutes, according to the latest edition of the TomTom Traffic Index.

The index assessed cities and metropolitan areas across 62 countries by their congestion and travel times and how many hours commuters stuck in traffic have lost. — Chloe Mari A. Hufana

Senate action on prevention bill pushed amid alarming rise in teenage pregnancies

VANESSA-UNSPLASH

THE Commission on Population and Development (CPD) has flagged rising incidence of adolescent pregnancies, particularly those under 15 years old, urging the Senate a teenage pregnancy bill.

The live births among minors aged 10-14 are at an alarming state “that needs a more responsive policy,” it said in a statement on Wednesday evening.

It said the number of live births among “very young adolescent mothers” under 15 rose by 6.6% to 3,343 in 2023 from 2,411 a year earlier.

Repeat pregnancies also remain an issue, the CPD said, noting that in 2023, 38 young girls under 15 have experienced it, while 17 women have had five and more live births before they turned 20 years old, it added.

The problem calls for a “comprehensive, age-sensitive sexuality education to address the issue,” Undersecretary Lisa Grace S. Bersales said.

“Our emphasis is on protection from abuse and equipping adolescents with life skills to make informed decisions.”

“Given the significant increase of live births among adolescent girls aged 10-14 and the life-long and serious implications on their wellbeing and to the country,” the CPD said.

It called on senators to pass the Adolescent Pregnancy Prevention Bill, which remains under interpellation.

The measure pushes for a national program and seeks the creation of a Comprehensive Sexuality Education curriculum in schools.

The curriculum would tackle topics such as human sexuality, informed consent, adolescent reproductive health, effective contraceptive use, disease prevention, HIV/AIDS, sexually transmitted infections (STIs), gender sensitivity, gender equality and equity, teen dating, gender-based violence, sexual abuse and exploitation, peer pressure, women’s and children’s rights, issues like pornography, among others, according to the bill.

“The purpose of which is to equip them with the knowledge, skills, and values to make informed and responsible choices about their sexual and social relationships,” the bill also read.

“We call for urgent action on this issue given that it affects the health and well-being of this segment of the population, who will be the future workforce of the country,” Ms. Bersales said.

“This will significantly impact on the gains from demographic dividend, a condition where the country gains traction for economic growth, since the population is mostly made up of working ages 15-64,” she added. — Kyle Aristophere T. Atienza

PhilHealth amends confinement rule

FREEPIK

THE PHILIPPINE Health Insurance Corp. (PhilHealth) has done away with a policy that requires patients who experience life-threatening medical emergencies to be confined in a hospital for 24 hours before qualifying for the agency’s health benefits.

“We also cover outpatient emergency care benefit for more comprehensive financial protection against the unexpected,” PhilHealth Chief Executive Officer Emmanuel R. Ledesma, Jr. told a Senate health and demography hearing on Thursday, citing the Jan. 1 PhilHealth Circular No. 2024-0033 issued by the agency.

“For life-threatening medical emergencies not requiring hospitalization beyond 24-hours, our members can count on PhilHealth.”

The agency’s outpatient emergency care benefit package also includes coverage for cases such as dizziness, diarrhea, persistent vomiting, elevated blood pressure, provided the health facility is accredited by PhilHealth.

President Ferdinand R. Marcos, Jr. on Tuesday ordered the Department of Health to ensure the uninterrupted delivery of services by PhilHealth after it was given zero subsidy. — John Victor D. Ordoñez

Jobs growth still too weak — ILO

PHILSTAR FILE PHOTO

EMPLOYMENT growth remains too weak to significantly impact persistent decent work deficits, an International Labour Organization (ILO) report found.

While employment growth remains steady, various factors are testing the resilience of labor markets worldwide, the World Employment and Social Outlook: Trends 2025 report, released on Thursday, read.

“Decent work and productive employment are essential for achieving social justice and the Sustainable Development Goals (SDGs),” ILO Director-General Gilbert F. Houngbo said in a statement.

“To avoid exacerbating already strained social cohesion, escalating climate impacts, and surging debt, we must act now to tackle labor market challenges and create a fairer, more sustainable future,” he added.

In 2024, global employment grew alongside the expanding labor force, maintaining the global unemployment rate at a steady 5%, consistent with the level recorded in 2023, the ILO noted.

However, this growth remains insufficient to address persistent decent work deficits as young workers continue to face high unemployment rates, around 12.6%, with little sign of improvement, it added.

The global economy is projected to slow down, hindering a stronger labor market recovery. Economic growth was at 3.2% in 2024, down from 3.3% in 2023 and 3.6% in 2022.

The weakening economic growth contributed to stagnating wage growth as real wages in most countries have not rebounded yet from the pitfalls of the pandemic years and the inflationary episode that followed, the report noted.

Compounding these challenges, labor force participation has slightly also declined, particularly in low-income countries, which has weighed on employment growth.

Persistent gender gaps in participation also remain a significant barrier, with women facing greater obstacles to entering the workforce compared to men.

The global jobs gap, which measures the overall number of missing jobs, stood at 402.4 million in 2024. This includes the unemployed, discouraged workers, and those unable to work due to care obligations.

Working poverty persists, especially in low-income countries, with 240 million workers experiencing extreme poverty, the report found.

Informality also persists, with over half the global workforce lacking adequate social security and legal protection.

A major bottleneck in expanding decent work opportunities is slowing productivity growth, which has fallen by half a percentage point from the pre-pandemic long-term average.

OPPORTUNITIES AND SOLUTIONS
To address the challenges, the report urged an increase in productivity by investing in skills training, education and infrastructure to support economic growth and job creation.

It added expanding social protection to provide better access to social security and safe working conditions to reduce inequality.

Lastly, the report emphasized the importance of effectively utilizing private funds, highlighting how low-income countries can leverage remittances and diaspora contributions to drive local development initiatives.

Meanwhile, the green transition is opening new opportunities for decent jobs, driven by increased investments in renewable energy and sustainable industries, the report said.

Investments in green energy and mobility created new job opportunities with an additional 16.2 million jobs, mostly concentrated in East Asia.

“However, job creation in renewable energy production is unequally distributed around the globe. Almost half of new green job opportunities have been in Eastern Asia; there have been few decent work benefits in other developing and emerging economies.”

The report also emphasized the need for innovative solutions to accelerate progress towards social justice and the SDGs of the United Nations.

It called for addressing bottlenecks in structural transformation, reducing spatial inequalities and ensuring that new technologies boost productivity growth.

Furthermore, providing skills and education to young people is essential for their successful participation in the labor market.

The report also emphasized that decent work and productive employment remain the cornerstones of achieving the SDGs by 2030. — Chloe Mari A. Hufana

DHSUD resolves all 2024 cases

DHSUD

THE DEPARTMENT of Human Settlements and Urban Development (DHSUD) said it has garnered a 100% resolution rate in addressing complaints in 2024.

The agency received a total of 758 concerns from Jan. 1 to Dec. 31, 2024 and was able to deal with the majority of the cases within the 72-hour period, according to a report from the Office of the President’s 8888 Citizen’s Complaint Center (CCC).

DHSUD also recorded a 98.55% rate for the 72-hour compliance period.

Of all the cases handled, 255 were related to private developers, while 245 complaints were about homeowners’ associations, DHSUD said in a statement.

Only 11 cases were not addressed within the three-day period, it noted.

“This shall serve as an inspiration for all of us to strive better. Let us keep improving the high quality and quick services to Filipinos,” DHSUD Secretary Jose Rizalino L. Acuzar said in a statement.

In the first half of the year, the agency also recorded a 100% resolution rate, addressing most of the 433 concerns received from January to July.

The 8888-CCC complaints are being handled by the agency’s Strategic Communications and Public Affairs Service, in collaboration with its PASPAS Serbisyo Aksyon Officers, as well as its regional offices. — Beatriz Marie D. Cruz

Bill reforming DND filed

A BILL seeking to modernize the Philippine defense establishment by overhauling the mandate and authority of the Department of National Defense (DND) was filed at the House of Representatives last month.

Laws governing the DND and the military were promulgated in the 1930s, according to House Bill (HB) No. 11208. “The statutes that govern these agencies, however, were promulgated way back from the Commonwealth.”

“It is incumbent upon this Chamber to provide the legislative basis for a comprehensive national defense policy reflective of the current security situation in both the regional and the international stage,” according to the bill’s explanatory note, which was filed by Batangas Rep. Gerville R. Luistro on Dec. 16.

The government is currently modernizing its military assets and defense capabilities amid Chinese incursions into Philippine maritime waters.

“The defense establishment shall be maintained to maximize its effectiveness for guarding against external and internal threats to national peace and security,” the bill stated.

The DND should formulate the country’s defense policies, strategies, plans, and programs for the sake of preserving Philippine sovereignty, according to the bill.

It should also craft a self-reliant defense posture to “guarantee the enhancement of responsive and progressive capabilities and maximum utilization of resources.”

Philippine President Ferdinand R. Marcos, Jr. in Oct. 2024 signed into law a measure requiring the government to pursue a defense posture reliant on local manufacturers to enable the country to develop technologies capable of countering “unconventional threats.”

The Defense department should also implement Manila’s military treaties and security commitments with other countries, according to HB No. 11208.

“The [DND] is hereby authorized to enter into, make, perform, and carry out contracts of every class, kind, and description which are necessary or incidental to the performance of its mandate… with any person, firm or corporation, public or private, and with foreign government entities,” the bill stated.

The purchasing of military equipment would also be exempted from procurement laws “when the acquisition… involves special defense equipment.”

“All acquisition of defense materiel by the Department and its bureaus shall be exempt from import and other licenses imposed by other agencies of the government,” it added. — Kenneth Christiane L. Basilio

SEC opens Laoag City office

BAGUIO CITY — The Securities and Exchange Commission’s (SEC) first extension office in Northwestern Luzon has opened in Laoag City, Ilocos Norte.

Governor Matthew J. Marcos Manotoc and SEC Chairperson Emilio B. Aquino, both emphasized during the opening “the importance (of the office) in further boosting the economic performance of the provinces (in the area).”

The SEC Laoag extension office, located on the 5th floor of the Dap-Ayan Commercial Center, will accommodate the registration, compliance processes, and other SEC-related transactions of businesses across Ilocos Norte, Ilocos Sur, La Union, and Pangasinan, ensuring the timely and efficient delivery of services.

It will also facilitate the Commission’s investor protection and education programs to safeguard businesses against scams and other fraudulent schemes. — Artemio A. Dumlao

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