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CAAP to focus navigation system upgrades on hardware this year

THE Civil Aviation Authority of the Philippines (CAAP) said it will focus on hardware upgrades to its communications, navigation, surveillance and air traffic management (CNS/ATM) systems this year. 

“For 2024, … we completed the software upgrade. What we want to happen now is to complete the hardware upgrade,” CAAP Director General Manuel Antonio L. Tamayo said.

He said CAAP is planning to tap the loan extended by Japan International Cooperation Agency (JICA) for this upgrade program.

“The primary concern is funding. However, we have savings from the JICA fund that was supposed to be used in constructing the existing CNS/ATM. JICA extended the loan; now we have approximately P2.1 billion (available),” he said.

This system upgrade, which was integrated last year — is part of CAAP’s program to enhance the air traffic management system, making air traffic operations more efficient and reducing delays.

The CAAP embarked on the system upgrades following the power outage that hit CAAP facilities in 2023, which affected thousands of passengers. — Ashley Erika O. Jose

Business groups urge Senate to pass Konektadong Pinoy bill

PHILSTAR FILE PHOTO

BUSINESS GROUPS have renewed their call for the Senate to pass the Konektadong Pinoy bill before the 19th Congress steps down, after President Ferdinand R. Marcos, Jr. certified the bill as urgent.

“Versions of the Konektadong Pinoy bill, or the proposed Open Access in Data Transmission Act, have passed on third reading in the House of Representatives for three Congresses since the 17th Congress,” they said in a joint statement on Thursday.

“Movement of the legislation stalled in the Senate in previous years,” it said, adding that the bills chances of passing have improved “thanks to strong backing from President Marcos.”

The Konektadong Pinoy bill, or Senate Bill No. 2699 was one of the two bills certified as urgent by the Office of the President earlier this week, along with the measure postponing the parliamentary elections in the Bangsamoro Autonomous Region in Muslim Mindanao.

“With Konektadong Pinoy certified as urgent, the fate of this landmark digital connectivity legislation now rests in the hands of Senator Alan Peter Cayetano, chairman of the Committee on Science and Technology,” the business groups said.

“Stakeholders look forward to Senate President Francis G. Escudero leading the passage of the bill now that it has been certified as urgent,” they added.

The Konektadong Pinoy bill aims to encourage more entrants seeking to participate in the digital infrastructure buildout by simplifying the licensing process for network providers.

The National Telecommunications Commission is tasked by the bill with regulating the data transmission industry.

“The Philippines has consistently ranked poorly in global and regional information and communication technology rankings, including the Digital Competitiveness Index and Network Readiness Index,” the business groups said.

“Philippine internet is one of the slowest but also one of the most expensive in the world. Poor digital connectivity can be attributed to outdated laws that discourage investment and prevent new players from putting up much-needed internet infrastructure, especially in the countryside,” they added.

The groups that signed the joint statement include the Alliance of Tech Innovators for the Nation, the American Chamber of Commerce of the Philippines, the Analytics & Artificial Intelligence Association of the Philippines, the Asia Open RAN Academy, the Association for Progressive Communications, Better Internet PH, and the Canadian Chamber of Commerce of the Philippines;

Democracy.net.ph, Employers Confederation of the Philippines, European Chamber of Commerce of the Philippines, Fintech Alliance.PH, Foundation for Media Alternatives, Global Digital Inclusion Partnership, Institute for Social Entrepreneurship in Asia, and the Internet Society;

The Japanese Chamber of Commerce and Industry of the Philippines, Korean Chamber of Commerce Philippines, National ICT Confederation of the Philippines, Philippine Association of Multinational Companies Regional Headquarters, Inc., Philippine Cable and Telecommunications Association, Inc., the Philippine Chamber of Commerce and Industry, and Philippine Exporters Confederation, Inc. — Justine Irish D. Tabile

Chip firms could get top-tier perks in CREATE MORE IRR

THE Philippine Economic Zone Authority (PEZA) said semiconductor industry investors are considered strong candidates for being classified into the top tier of fiscal-incentive recipients.

“For strategic, high-value and high-tech semiconductor manufacturing and services-related activities, the government may consider granting outright Tier 3 incentives — instead of the usual Tier 1 or Tier 2,” PEZA Director-General Tereso O. Panga said via Viber.

President Ferdinand R. Marcos, Jr. said last week that his government is considering inserting a special provision favoring semiconductor companies in the Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 12066 also known as the CREATE MORE Act.

Mr. Marcos signed the CREATE MORE Act in December. The interim IRR was released last month.

Tier 3 investors, according to the interim IRR, are export enterprises approved by the Foreign Investment Review Board (FIRB), eligible for a six-year income tax holiday (ITH) plus 20 years of an enhanced deduction rate (EDR) regime or special corporate income tax (SCIT), or 26 years of EDR/SCIT if they are in Metro Manila.

The corresponding incentives are a seven-year ITH followed by 20 years of EDR/SCIT, or 27 years of EDR/SCIT if they are in metropolitan areas adjacent to the National Capital Region; and a seven-year ITH plus 20 years of EDR or SCIT, or 27 years of EDR/SCIT if they are in other areas.

Domestic enterprises approved by FIRB may avail of a six-year income tax holiday (ITH) plus 20 years of EDR/SCIT, or 26 years of EDR if they are in Metro Manila; a seven-year ITH followed by 20 years of EDR, or 27 years of EDR if they are in metropolitan areas adjacent to the National Capital Region; and a seven-year ITH plus 20 years of EDR, or 27 years of EDR if they are in other areas.

Classifying chip companies into Tier 3 is expected to attract leading integrated circuit (IC) makers and printed circuit board (PCB) designers, as well as AI and robotics companies, Mr. Panga said.

“This will complement and diversify our existing strengths in Outsourced Semiconductor Assembly and Test (OSAT), and Assembly, Testing, and Packaging (ATP).”

Mr. Panga also urged the FIRB to release “as soon as possible” the guidelines that will authorize the President to grant longer ITH and SCIT periods and other incentives for highly desirable and strategic projects investing a minimum of P50 billion or those employing at least 10,000.

“This could be game changer as we leverage the ally-shoring strategy to be able to attract wafer fab and big-ticket semiconductor and other manufacturing companies that will be shifting production out of China, Mexico or Vietnam in light of President Trump’s policy shifts to reduce the US trade deficit and to de-risk the global supply chain,” he said.

The President brought up with the Private Sector Advisory Council-Education and Jobs Sector Group last week the absence of a specific provision on incentives for the semiconductor companies in the CREATE MORE law, while detailing incentives for industries like car manufacturing.

“We’ll do it through the IRR, perhaps. Because it took us such a while to get the CREATE MORE in the first place,” Mr. Marcos said at the meeting, according to a statement released by his office.

Mr. Marcos signaled possible incentives for semiconductor locators after US President Donald J. Trump took office on Jan. 20.

The US and the Philippines under then President Joseph R. Biden committed to boosting their semiconductor partnership, particularly under the provisions of the US CHIPS Act.

“We support the President’s push for the grant of specific incentives to accelerate growth and expansion of the semiconductor and electronics industry,” Mr. Panga said.

“This can be addressed within the framework of the CREATE & CREATE More laws, including the Strategic Investment Priority Plan (SIPP).”

He said the FIRB is currently drafting the CREATE More IRR in consultation with the investment promotion agencies (IPAs).

Electronics is the single biggest export of the Philippines, accounting for nearly 60% of merchandise exports. The bulk of these exports are finished semiconductor products that are incorporated into electronic devices.

Semiconductor exports fell 33.1% to $1.91 billion in November, amid soft global demand.

Semiconductor locators have been “one of the long-term and consistent investors” in PEZA economic zones, and account for 15% of gross domestic product, Mr. Panga said.

He said PEZA also accounts for 56% of the country’s commodity exports, “the biggest of which come from the semiconductor and electronics sector.” — Kyle Aristophere T. Atienza

P30-billion industrial park planned for New Clark City

THE Bases Conversion and Development Authority (BCDA) said it tapped Science Park of the Philippines, Inc. (SPPI) to develop a P30-billion industrial park in New Clark City.

The BCDA on Thursday signed a 50-year lease agreement with SPPI on Jan. 23. The park is expected to create 30,000 new jobs and generate P1.9 billion in tax revenue for the government, the BCDA said.

BCDA President and Chief Executive Officer Joshua M. Bingcang said the jobs include those in food production, textiles, automotive parts, electric vehicles, semiconductors, and data centers.

SPPI operates six sites in Central Luzon, Southern Luzon and the Central Visayas. — Justine Irish D. Tabile

Peso rises as market awaits US GDP report

BW FILE PHOTO

THE PESO appreciated against the dollar on Thursday as players took positions before the release of US gross domestic product (GDP) data overnight.

The local unit closed at P58.28 per dollar on Thursday, strengthening by 14.5 centavos from its P58.425 finish on Tuesday, Bankers Association of the Philippines data showed.

The peso opened Thursday’s session slightly weaker at P58.43 against the dollar, which was also its worst showing. Its intraday best was P58.29 versus the greenback.

Dollars exchanged decreased to $1.33 billion on Thursday from $1.66 billion on Tuesday.

Philippine financial markets were closed on Jan. 29 (Wednesday) for the Lunar New Year holiday.

The peso closed higher on expectations of weaker fourth-quarter US GDP growth, the first trader said in a phone interview.

The local unit was initially weaker following the lackluster Philippine GDP data released earlier on Thursday, the trader noted. The Philippine economy grew by 5.6% in 2024, missing the government’s 6-6.5% full-year target.

“The peso appreciated from easing expectations of a US Federal Reserve rate hike as Fed Chair Jerome H. Powell dismissed such possibility,” the second trader said in an e-mail.

For Friday, the second trader said the peso could rise further on potentially weak US GDP data.

The first trader expects the peso to move between P58.10 and P58.50 per dollar, while the second trader sees it ranging from P58.25 to P58.40.

US economic growth likely slowed in the fourth quarter as imports surged and a strike at Boeing hurt spending on aircraft, though strong domestic demand will probably keep the Federal Reserve on a shallow interest rate cut path this year, Reuters reported.

The advance gross domestic product report from the Commerce department on Thursday was also expected to show consumer spending maintaining a robust pace of growth last quarter. Consumer spending is being underpinned by a resilient labor market, which is churning out solid wage gains.

While the fourth-quarter growth pace would mark a slowdown of the brisk pace notched in the July-September quarter, the economy last year defied dire predictions of a recession that had been fanned by the US central bank hiking rates by 5.25 percentage points in 2022 and 2023 to quell inflation.

The Fed on Wednesday left its benchmark overnight interest rate in the 4.25%-4.5% range, having reduced it by 100 basis points since September. It removed a reference to inflation having “made progress” toward the Fed’s 2% inflation goal.

Mr. Powell told reporters that the economy “is strong overall.” Dissatisfaction with the economy swept US President Donald J. Trump to victory in the Nov. 5 election.

GDP likely increased at a 2.6% annualized rate last quarter after accelerating at a 3.1% pace in the July-September quarter, a Reuters survey of economists showed. Estimates ranged from a 1.7% pace to a 3.2% rate.

The survey was concluded before data on Wednesday showed the goods trade deficit vaulted to a record high in December, which prompted the Atlanta Fed to slash its GDP forecast to a 2.3% rate from an earlier estimate of 3.2%.

Growth for the full year was estimated at 2.8%. The economy grew 2.9% in 2023.

The Fed has forecast only two rate cuts this year, down from the four it had projected in September, when it embarked on its policy easing cycle.

That reflected uncertainty over the economic impact of fiscal, trade and immigration policies from the new Trump administration. Economists view the planned tax cuts, broad tariffs on imports and mass deportations of undocumented immigrants as inflationary. They expect economic growth to falter by the second half and inflation to rise. — A.M.C. Sy with Reuters

PSEi declines further on GDP miss, cautious Fed

BW FILE PHOTO

THE BENCHMARK stock index dropped on Thursday to move closer to bear territory after Philippine economic growth in 2024 missed the government’s target for a second straight year and with the US Federal Reserve signaling a cautious stance amid inflation risks.

The Philippine Stock Exchange index (PSEi) fell by 0.74% or 45.81 points to end at 6,107.66, while the broader all shares index declined by 0.66% or 24.20 points to close at 3,599.32.

This was the PSEi’s lowest close in nearly 15 months or since it ended at 6,078.03 on Nov. 6, 2023. It is now down by 19.68% from its latest high of 7,604.61 recorded on Oct. 7, 2024, putting it closer to bear territory, which is at least a 20% decline from the benchmark’s most recent peak.

“The local market extended its drop to its fourth straight day as the Philippines’ 2024 economic growth disappointed investors,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

Philippine gross domestic product (GDP) expanded by 5.6% in 2024, below the government’s 6-6.5% growth target. This was also a tad slower than the 5.7% median estimate yielded in a BusinessWorld poll of 18 economists and analysts but was slightly faster than the 5.5% growth in 2023.

“Philippines shares tumbled after the Federal Reserve kept interest rates unchanged in its first policy decision of the year. The Fed maintained the federal funds rate at 4.25% to 4.50%, with its post-meeting statement signaling a cautious stance on persistent inflation,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

The US central bank held interest rates steady on Wednesday and Federal Reserve Chair Jerome H. Powell said there would be no rush to cut them again until inflation and jobs data made it appropriate, Reuters reported.

After the Fed lowered rates three times in the latter part of last year, inflation has largely moved sideways in recent months, but “remains elevated,” the central bank’s policy-setting Federal Open Market Committee said in a statement.

Fed officials say they largely believe the progress in lowering inflation will resume this year, but have now put rates on hold as they await data to confirm it.

Back home, majority of sectoral indices ended in the red on Thursday. Mining and oil declined by 3.12% or 238.04 points to 7,376.44; holding firms retreated by 2.11% or 110.11 points to 5,095.29; financials went down by 1.05% or 22.99 points to 2,150.46; and industrials sank by 0.79% or 69.19 points to 8,621.41.

Meanwhile, property climbed by 0.67% or 15.25 points to 2,289.51 and services went up by 0.48% or 9.57 points to 1,964.95.

Value turnover dropped to P4.95 billion on Thursday with 1.11 billion shares traded from the P5.64 billion with 1.53 billion issues exchanged on Tuesday.

Decliners beat advancers, 118 versus 76, while 36 names were unchanged.

Net foreign selling stood at P398.32 million on Thursday, a reversal of the P199.32 million in net buying recorded on Tuesday. — R.M.D. Ochave with Reuters

Marcos seeks Trump immigration talk, offers ‘deal’ with China on US missiles

PRESIDENT FERDINAND R. MARCOS, JR. — PCO.GOV.PH

PHILIPPINE President Ferdinand R. Marcos, Jr. on Thursday said he plans to meet with US President Donald J. Trump to discuss various issues including immigration, in an effort to influence policy that he said could affect a large number of Filipinos in the US.

“We will see how we can influence policymaking in terms of immigration,” Marcos said without saying when that meeting would take place.

Mr. Trump has clamped down on immigration, vowing to undo the policies of his predecessor that he said enabled the large influx of undocumented immigrants.

The Department of Foreign Affairs (DFA) has said it is impossible for about 300,000 undocumented Filipinos in the US to be deported in the next four years.

“About a few hundred Filipinos have been sent home,” Mr. Marcos said in Filipino. “This is something that we have to work through and hopefully resolve because the Filipinos in the United States, especially, have really [become an] important part already of their workforce.”

Speaking with reporters on various topics, Mr. Marcos also said he would return a Typhon missile system to the US if China ceased what he said was aggressive and coercive behavior, including claiming features in the South China Sea.

China has opposed the US deployment of the missile system for exercises in the Philippines, a defense ally of Washington, and has repeatedly called for its withdrawal.

“I don’t understand the comments on the Typhon missile system,” Mr. Marcos said. “We don’t make any comments on their missile systems and their missile systems are a thousand times more powerful than what we have.”

“Let’s make a deal with China: Stop claiming our territory, stop harassing our fishermen and let them have a living, stop ramming our boats, stop water cannoning our people, stop firing lasers at us and stop your aggressive and coercive behavior and I’ll return the Typhon missiles,” he added.

China, which claims sovereignty over most of the South China Sea, has repeatedly accused Philippine vessels of encroachment on its territory. Bilateral ties are at their worst in years after repeated confrontations and heated diplomatic rows.

The Chinese Embassy in Manila did not immediately respond to a request for comment on the President’s remarks.

The Typhon missile system was deployed by US forces to the Philippines in April last year as part of their Balikatan or “shoulder-to-shoulder” military exercises, and has since stayed in the country.

The launchers were redeployed to a new location in the Philippines, which officials declined to disclose, Reuters reported last week.

RADIO CHALLENGE
Meanwhile, the Philippine Coast Guard said its largest ship had been issuing hourly radio challenges to a Chinese vessel near the coast of Zambales province.

“The BRP Teresa Magbanua is actively and resolutely addressing the unlawful presence of the China Coast Guard (CCG) vessel with bow number 3304 within the Philippines’ exclusive economic zone (EEZ),” it said in a statement on Wednesday night.

The actions of CCG 3304 “violate the Philippine Maritime Zones Act, the United Nations Convention on the Law of the Sea (UNCLOS), which China has ratified, as well as the 2016 arbitral award,” the PCG said.

“It is worth noting that the PCG vessel successfully pushed CCG 3304 further away from Zambales, achieving an approximate distance of 85-90 nautical miles (157 to 167 kilometers),” it added.

The Philippine Coast Guard (PCG) on Tuesday night said it had sent the 97-meter BRP Teresa Magbanua to monitor Chinese vessels near the coast of Zambales province in the country’s north. Teresa Magbanua replaced the 44-meter vessel BRP Cabra, which arrived at Subic Port on Tuesday morning to unload the body of a fisherman that it recovered on Monday.

Teresa Magbanua can displace 2,265 tons of water, compared with 12,000 tons for China Coast Guard ship 5901, the largest coast guard cutter in the world.

The PCG on Monday night accused China Coast Guard (CCG) 3304 of shadowing its ship that was rescuing a distressed fishing boat near the Zambales coast.

It said Cabra navigated through heavy waves to retrieve the body of a Filipino fisherman using its crane.

“It is crucial to note that the Chinese Coast Guard vessel CCG 3304, despite being aware of the distress call from the Filipino fishermen, engaged in shadowing that hindered the PCG vessel’s efforts to recover the body,” the PCG earlier said.

The Philippines has accused China of intimidating Filipino fishermen near Scarborough Shoal and normalizing its “illegal presence” after Beijing sent its monster ship into the Philippine EEZ on Jan. 4.

A United Nations-backed court in The Hague voided China’s expansive claim in the South China Sea in 2016, as it ruled the shoal is a traditional fishing ground for Filipino, Chinese and Vietnamese fishermen. — Kyle Aristophere T. Atienza with Reuters

House committee approves P200 daily wage increase

PHOTO SHOWS workers at a construction site in Quezon City on Thursday. The House labor committee has approved a bill for a P200 across-the-board daily wage hike. — PHILIPPINE STAR/NOEL B. PABALATE

By Kenneth Christiane L. Basilio, Chloe Mari A. Hufana and John Victor D. Ordoñez, Reporters

A HOUSE of Representatives committee on Thursday approved a bill that seeks to grant a P200 across-the-board wage increase for private-sector workers, nudging the bill forward after it was mothballed for eight months.

The House labor committee unanimously approved an unnumbered substitute bill, consolidating three measures that seek to raise wages by P150 to P750.

“The House… deemed it necessary to propose a wage increase for our workers due to rising prices,” Rizal Rep. Juan Fidel Felipe F. Nograles, who heads the House labor body, told reporters in Filipino after the bill’s approval.

The power or mandate to pass laws belongs to both Houses of Congress,” Labor Secretary Bienvenido E. Laguesma told BusinessWorld in a Viber message. “If the proposed wage hike bill becomes a law, the duty and obligation of the Labor department is to implement it.”

Minimum wages in the Southeast Asian nation are set by regional wage boards. But slow and meager increases amid rising prices have prompted lawmakers to push the legislated wage increase. The Senate approved a counterpart proposal for a P100 daily wage increase for private-sector workers in February last year.

“All employers in the private sector, whether agricultural or nonagricultural, regardless of capitalization and number of employees, shall pay their workers an across-the-board wage increase in the sum of P200 a day upon the effectivity of this act,” according to a copy of the bill.

The Labor department must inspect the payroll and financial records of Philippine companies to check compliance. Noncompliant employers face imprisonment of up to four years and a fine of as much as P100,000.

“The employer concerned shall be ordered to pay an amount equivalent to double the unpaid benefits owed to employees.”

The House labor committee pushed a P200 wage increase to boost 5 million minimum wage earners out of poverty, Deputy Speaker and Party-list Rep. Raymond Democrito C. Mendoza, who authored the bill, said in a statement.

“At present, everyone is below the poverty threshold, except in the National Capital Region,” he told reporters in Filipino. “All regions will be over the threshold [once the bill is enacted].”

A family of five needed at least P13,873 a month to meet minimum basic food and nonfood needs in 2023, according to the Philippine Statistics Authority. There are about 2.9 million Filipino families living in poverty.

Only 16% of all Filipino workers stand to benefit from the proposal, Sergio R. Ortiz-Luis, Jr., president of the Employers Confederation of the Philippines (ECoP), told reporters via teleconference. “Let’s leave it to the Regional Wage Boards. We’re quite sad that it’s being pushed again now.”

“What needs to be known is that out of the 52 million workers in the labor market, only 16% would benefit from the legislated wage hike. The other 84% are from the informal sector,” he said in Filipino.

There were 49.54 million employed Filipinos in November 2024, according to latest government data.

Mr. Ortiz-Luis said businesses are at risk of shutting down if the wage hike order is signed into law. “There’s only one remedy — they’ll try to raise their prices if the market can handle it, reduce their workforce, or if they really can’t manage, they’ll just close down.”

“For the benefit of a few, we will sacrifice the economy,” he added.

Mr. Nograles said they are looking at supporting micro, small and medium enterprises (MSME) that would be affected by the wage hike.

“That’s a separate matter because our bill is only about the wage increase,” he said in Filipino. “We need a separate law or policy to support MSMEs.”

Mr. Mendoza urged President Ferdinand R. Marcos, Jr. to certify the wage hike bill as urgent to fast-track its approval. Congress will adjourn for four months next week to give way for the 2025 midterm elections.

Senate President Francis “Chiz” G. Escudero said they would work with the House to refine the bill.

“Although we have only nine session days left, I welcome the openness of the House, at this time, in passing this Senate-initiated measure,” he told reporters in a Viber message. “I look forward to working with them on this.”

“I will instruct committee secretaries to monitor House hearings so the members of the Senate can be kept abreast [of developments],” he added.

The Regional Tripartite Wages and Productivity Board of the National Capital Region in July last year approved a P35 minimum wage hike for workers in Metro Manila, bringing the daily pay for nonagricultural workers to P645.

BETTER THAN NOTHING
This was way lower than the petitions filed by labor groups seeking monthly pay increases of P597 to P750.

Labor groups welcomed the House committee’s approval of the P200 wage hike, but said it is still far from a livable minimum wage.

“For too long, wages have been stagnant — stuck longer than EDSA traffic — while prices of basic goods like rice, gas and transportation including Social Security System and Philippine Health Insurance Corp. contributions continue to climb like they’re in a race we never signed up for,” Jose Sonny G. Matula, president of the Federation of Free Workers, said in a statement.

The labor group said it remains firm in seeking a “true living wage” under the 1987 Constitution —“one that ensures workers can live with dignity, provide for their families and keep up with rising costs.”

The proposed P200 wage increase is better than nothing, University of the Philippines Diliman School of Labor and Industrial Relations Assistant Professor Benjamin B. Velasco told BusinessWorld.

“While people will suspect that this is just electioneering by the House leadership, the labor movement should grab the opportunity to push its wage campaign and get ordinary workers on board and develop a movement,” he said in a Facebook Messenger chat.

“A P200 wage hike will be good for workers and the economy because it will boost consumer purchasing power and boost gross domestic product. Even big businesses and MSMEs will benefit,” he added, noting that the last across-the-board hike was in 1989, when the daily minimum wage was raised to P64 from P25.

Employers Confederation of the Philippines Governor Arturo C. Guerrero III said the wage hike is being pushed ahead of the midterm elections in May.

Wage hikes must go through the wage boards, he told BusinessWorld by telephone, noting that the Philippines has the second-highest daily minimum wage in Southeast Asia.

At least 14 wage boards issued daily wage increases of P21 to P75 for private sector workers in 2024, according to the Labor department.

Senator pushes raw ore export ban to spur processing

APEXMINES.COM

A PHILIPPINE senator on Thursday said a proposed export ban on raw ores would boost the country’s mineral processing capacity, responding to the Chamber of Mines of the Philippines’ concerns about potential mine closures and joblessness.

Senator Joseph Victor “JV” G. Ejercito told a news briefing the ban under a Senate-approved priority bill that seeks to rationalize the mining fiscal regime would lead to the construction of more mineral processing plants in the country.

“The rationale is for the mining firms to establish their processing plants because we want the finished product instead of just putting out raw materials for export,” he said in mixed English and Filipino.

“And if they process these (minerals) here, that will result in more employment and additional revenue. We patterned this after the Indonesian mining sector.”

The deputy majority floor leader said lawmakers would decide whether to keep the clause in a bicameral conference committee once the measure is passed on third reading.

The Senate on Monday approved on second reading Senate Bill No. 2826, which seeks to set up a five-tier margin-based royalty and windfall profit system for the mining industry, which is expected to raise the government’s share in mining profits.

Under the law, mining companies pay corporate income tax, excise tax, royalty, local business tax, real property tax and fees to indigenous communities.

“So, we’ll see if we can extend the time to set up their factories and processing plants to seven years instead of five, which the chamber thinks is too short,” Mr. Ejercito said.

The Chamber of Mines on Wednesday backed the bill’s approval but called on senators to scrap the raw ore export ban, saying it would lead to hundreds of thousands of Filipino workers losing their jobs.

The mining group said mining companies are unlikely to finish building their plants within five years, adding that the ban could disrupt mineral trading.

The bill calls for a five-tier margin-based royalty system ranging from 1% to 5%, while the five-tier windfall profit tax system will range from 1% to 10%. 

The House of Representatives approved its version of the bill in September.

Under House Bill No. 8937, large-scale miners inside mineral reservations must pay the government only 4% of their gross output, while the Senate version requires them to pay 5%.

The House version proposes an eight-tier margin-based royalty regime of 1.5% to 5% and a 10-tier windfall profit tax system of 1% to 10%.

Mr. Ejercito also pushed the construction of more power plants to address high power costs that mining companies are worried about. “I’m hoping that in the next three years of the administration, we can focus on infrastructure and energy.”

“We need more power plants, stable but cheap energy, and with this development (new mining fiscal regime), it is with further urgency that the government needs to act on this.”

The Department of Finance expects to generate P6.26 billion in additional annual revenue from the revised mining tax regime. — John Victor D. Ordoñez

Senate administration bets keep dominance in SWS January poll

BW FILE PHOTO

CANDIDATES endorsed by Philippine President Ferdinand R. Marcos, Jr., continue to lead in the latest senatorial survey conducted by Social Weather Stations (SWS), with Party-list Rep. Erwin T. Tulfo maintaining his position as the frontrunner.

The survey, commissioned by the Stratbase Group, found 45% of respondents would vote for Mr. Tulfo if the elections were held from Jan. 17 to 20. Former Senate President Vicente C. Sotto III followed in 2nd place with 38%, climbing from 5th place in December 2024.

The survey was conducted through face-to-face interviews with 1,800 registered voters. It had a ±2.31% margin of error at the national level.

Senator Manuel M. Lapid emerged as the biggest gainer, securing 3rd-4th place (37%) in January from 11th place (23%) in December. He tied with Senator Christopher Lawrence T. Go, whose support also increased by 5% over the past month.

Former Senator Panfilo M. Lacson also climbed to 5th place with 35%, up from 7th in December.

Broadcaster Bienvenido T. Tulfo retained 6th place, while Senator Pilar Juliana S. Cayetano dropped to 7th-8th place from 3rd-4th place with 33%, now tied with former Senator Emmanuel D. Pacquiao.

Makati Mayor Mar-len Abigail S. Binay-Campos rose to 9th from 10th place, while Senator Ronald M. Dela Rosa gained momentum, rising to 10th place from 12th to 14th in the previous month.

Senator Ramon B. Revilla, Jr. registered the biggest decline, falling 10 spots to 11th-13th place (29%) from 2nd place (33%) in December. He is now tied with television host Wilfredo B. Revillame, who also dropped from 8th-9th place.

Former Senator Francis Pancratius N. Pangilinan re-entered the winning circle, rising from 20% in December to 29% in January, tying with Mr. Revilla and Mr. Revillame.

The January poll also saw Senator Maria Imelda Josefa Remedios Romualdez Marcos-Manotoc falling out of the top 12, down to 14th place with 28%. — Chloe Mari A. Hufana

No backups if GAA unconstitutional

PRESIDENT FERDINAND R. MARCOS, JR. — PHILIPPINE STAR/RYAN BALDEMOR

PRESIDENT Ferdinand R. Marcos, Jr. on Thursday said his government will “shut down everything” if the Supreme Court (SC) rules in favor of a petition filed by his former executive secretary challenging the constitutionality of the 2025 national budget.

Mr. Marcos made the remark when asked whether his government has a contingency plan in the event the high court declares the 2025 General Appropriations Act (GAA) unconstitutional.

“No, we shut down everything. I guess that’s what they want,” he told reporters on the sidelines of an event in Cebu City.

“They want the government to cease working so their destabilization plan comes through,” he added in mixed English and Filipino.

Former Executive Secretary Victor B. Rodriguez, Davao Rep. Isidro T. Ungab and other petitioners on Tuesday filed a petition against the 2025 GAA before the SC, citing several violations of the Constitution including the supposed blank items in a bicameral conference committee report.

The House of Representatives, headed by Speaker Ferdinand Martin G. Romualdez, the Senate of the Philippines, represented by Senate President Francis G. Escudero, and Executive Secretary Lucas Bersamin were named respondents in the petition. 

Mr. Marcos said the government has a “solid footing in terms of constitutionality” of the budget law.

“Well, the SolGen [Solicitor General Menardo I. Guevarra], of course, will be the one who will argue for the government, and he tells me — SolGen Menardo — that we are on a solid footing in terms of constitutionality,” he said.

“Anyway, it’s not for me to make the argument. We will let the SolGen make the argument before the Supreme Court and we are very confident that our case is strong,” he added.

Earlier in the day, Mr. Marcos assured that the 2025 GAA has no blank items.

“Just last month, I had to read 4,057 pages of the General Appropriations Act of 2025. Because I reviewed it, analyzed, and yes — in parts vetoed it,” he said in a speech at the 20th National Convention of Philippine Lawyers in Cebu City, based on a transcript from his office.

“I really am convinced that they simply do not exist because it is not allowed to exist. So, for those of you who think that the Presidency is just handshakes, photo ops, I assure you, that fine print is alive in my office as well.” — Kyle Aristophere T. Atienza

Marcos to expedite airport projects

MEGAWIDE.COM.PH

PRESIDENT Ferdinand R. Marcos, Jr. on Thursday vowed to fast-track airport improvement projects in central Philippines.

This, as he recognized Visayan regions for contributing significantly to the country’s growth output.

“We are also implementing projects to improve the airports of Bohol, of Dumaguete City, of Iloilo, Antique, Siquijor, [and] Tacloban,” he said in a lunch meeting with Visayas governors and officials of the ruling party One Cebu at the Cebu Provincial Capitol, based on a transcript from his office.

“We are implementing road and bridge projects, improving the connectivity in Panay, Guimaras and Negros; Bohol; Siquijor; Biliran; Northern Samar; Eastern Samar; Samar; Leyte; and Southern Leyte,” he added.

Central Visayas was the fastest-growing region in the country in 2023, with a 7.3% expansion. It was followed by Western Visayas, which grew by 7.2%. Eastern Visayas, meanwhile, ranked sixth with a 6.4% growth.

The President said that Western and Eastern Visayas surpassed the country’s overall gross domestic product growth for the same year.

“This growth supports the development of industries, creates jobs and livelihoods for our people,” he said. 

Later in the day, Mr. Marcos inaugurated the Mactan-Cebu International Airport’s alternate runway, which he dubbed as the first and only parallel runway in the Philippines.

Mr. Marcos said the alternate runway is also a preparation for “critical repairs” of the airport’s first runway starting May.

Last year, the airport catered to 8.5 million domestic passengers and 2.8 million international passengers.

By 2028, the parallel runway will be used simultaneously with the original runway to ensure “greater efficiency and capacity,” in keeping with the “demands of a rapidly evolving and growing aviation industry,” the President said.

“With two runways running full-time, the airport will now be — will have the capacity, the capability to cater up to 18 million passengers a year,” he added. — Kyle Aristophere T. Atienza

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