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CREATE MORE IRR sets rules for transfers of business registration

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THE INTERIM implementing rules and regulations (IRR) for the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act were issued on Tuesday, laying down the rules for the transfer of registrations to other investment promotion agencies (IPAs).

The interim IRR allows “Pre-CREATE RBEs (registered business enterprises) with investment capital exceeding P15 billion… to transfer their registration… (if they have) started operating or (are) in the pre-operating stage” as long as they have not availed of any income tax-based incentives.

Qualified RBEs intending to transfer their registrations, if approved to do so, must surrender their Certificate of Registration or Certificate of Registration and Tax Exemption for cancellation, prior to the issuance of a new certificate.

Last week, President Ferdinand R. Marcos, Jr.  signed the CREATE MORE Act into law. It further reduces the corporate income tax to 20% from 25% for RBEs.

CREATE MORE features income tax holidays, a 5% Special Corporate Income Tax, and duty exemptions on imports of capital equipment, raw materials, spare parts, and project accessories.

Additionally, RBEs will also enjoy local tax exemptions and VAT exemptions on imports and VAT zero-rating on local purchases of goods and services directly attributable to the registered project or activity.

“The reckoning period of the income tax-based incentive for operating RBEs issued with new Certificates of Registration shall be Jan. 1, 2025,” it added. — Aubrey Rose A. Inosante

Bill restoring NFA market powers being readied

PHILIPPINE STAR/MIGUEL DE GUZMAN

By Adrian H. Halili, Reporter

THE Department of Agriculture (DA) said it has initiated the process of drafting legislation proposing to restore the National Food Authority’s (NFA) power to intervene in rice markets and regulate prices.

“We plan to submit our wish list to the Office of the President by Friday… I’m already asking our legal to draft the bill,” Agriculture Secretary Francisco P. Tiu Laurel, Jr. told reporters late Monday.

He added that the DA will also urge President Ferdinand R. Marcos, Jr. to certify the impending bill as urgent.

At a House committee hearing on Tuesday last week, Mr. Laurel said that reinstating the NFA’s regulatory powers could help control rice prices.

Republic Act No. 11203 or the Rice Tariffication Law of 2019 stripped the power of the NFA to import and directly sell rice. The law instead implemented tariffs on imported rice at 35% initially, and 15% currently. The collected proceeds fund the Rice Competitiveness Enhancement Fund to modernize rice farming.

“The NFA used to have the power to tell all the retailers that you must sell NFA rice at this price… we don’t plan to control (the market), we just want to provide an option to buy rice at (the government) price,” he added.

The law had also limited the NFA’s functions to procuring domestically produced rice to hold in reserve for calamities. It is required to maintain a rice inventory equivalent to about nine days’ demand.

“With just the right budget and the right policy that allows the NFA to sell its rice to intervene, that will be enough (to tame prices),” Mr. Laurel said.

According to DA price monitors, as of Dec. 14, a kilo of well-milled rice sold for between P40 to P52 in Metro Manila public markets, while regular-milled rice fetched between P40 and P48.

Asked to comment, Federation of Free Farmers National Manager Raul Q. Montemayor said granting the DA or the NFA the authority to intervene by releasing cheap rice stocks could lead to a decline in farmgate prices.

“NFA intervention must be limited to situations where prices go beyond established thresholds or triggers, limited to areas where these price spikes occur, and targeted towards poor consumers only,” Mr. Montemayor said via Viber.

“Under normal circumstances, there should be no need for the NFA to intervene,” he added.

He cited the cost of intervention and the possibility of leakage, or the improper release of rice into the wrong hands, but also the risk of depressing palay prices due to the presence of cheap NFA rice on the open market.

Former Agriculture Secretary William D. Dar said that the NFA must be given the responsibility to maintain a one-month rice reserve instead of nine days demand, through a higher budget.

“With that level it can sell its aging stock to its network of retailers at about P35 per kilo. Another option is to sell to KADIWAs at P35. NFA intervention can provide relief to consumers in a big way,” Mr. Dar said via text.

The DA’s current program for distributing subsidized well-milled rice to the general public is known as Rice for All in KADIWA ng Pangulo outlets, since expanded to selected public markets and train stations.

The Rice for All program currently sells well-milled rice priced for P40 per kilo, with Mr. Laurel saying the DA is seeking to lower the price by January.

“I think we can make it P38-P39 by January. But we need (more) outlets,” he added.

House passes bill allowing foreigners 99-year leases

PHILIPPINE STAR/MIGUEL DE GUZMAN

By Kenneth Christiane L. Basilio, Reporter

THE House of Representatives on Tuesday approved on third and final reading its version of a measure setting the maximum length of land leases for foreigners at 99 years from 75 previously, with the bill touted as a means of attracting more foreign investment.

By a 175-3-2 vote, legislators approved House Bill No. 10755, which also includes protections for foreign investors entering into lease agreements.

The Senate passed its version of the measure on Monday.

The 1987 Constitution prohibited foreigners from owning land in the country, but the 31-year-old Investors’ Lease Act allowed foreign investors to lease private land for an initial period of 50 years, renewable once for a maximum of 25 years.

The proposed law was declared a priority measure by President Ferdinand R. Marcos, Jr. It had been introduced in June by Senate President Francis G. Escudero, after efforts to amend economic provisions of the 1987 Constitution stalled in Congress.

A total of $8.9 billion in foreign direct investment flowed into the Philippines in 2023, well behind Singapore’s $159.6 billion, Indonesia’s $21.6 billion and Vietnam’s $18.5 billion.

The bill seeks to allow foreign investors to sublet properties, unless prohibited under the lease contract. Sublease contracts longer than 25 years or more are required to be registered with the Register of Deeds, while sublet contracts less than 25 years are exempt.

The measure listed the approved purposes of land leases by foreigners to include industry, agro-industrial, commercial, tourism, agriculture, agroforestry and ecological conservation.

The inclusion of agroforestry purposes was designed to “spur foreign investment in tree plantations and carbon farming on private land,” Calixto V. Chikiamco, president of Foundation for Economic Freedom, said via Viber before the bill’s approval.

The measure stipulates that Board of Investments approval is required for lease agreements outside economic zones or freeports.  

George T. Barcelon, chairman of the Philippine Chamber of Commerce and Industry, said legislators should consider setting other conditions for such leases, such as the size of the investment, the jobs to be created, and the project’s contribution to the economy.

“We don’t want the land to be tied up for that long if they’re not putting in effort on the investments,” he said via phone before the bill’s approval.

Foreign investors that fail to initiate their planned investment projects on the leased sites within three years risk having the contract terminated by the Secretary of Trade or the heads of the economic zones or freeport areas, according to the bill.

The bill also imposes a prison term of up to six years and a fine of as much as P6 million for lessees and investors using the leased land in a manner contrary to Philippine law.

“While this reform would help improve the country’s investment climate, we believe additional reforms are needed to further promote investments and jobs in the Philippines,” American Chamber of Commerce of the Philippines Executive Director Ebb Hinchliffe told BusinessWorld via Viber before the bill’s approval.

“For example, we strongly support amendments to the Electric Power Industry Reform Act to help boost energy security and economic development;  the rationalization of the mining fiscal regime; the International Maritime Trade Competitiveness Act; the Konektadong Pinoy bill to expand internet connectivity; and the creation of the Philippine Airports Authority to improve our airports and support aviation and tourism sectors,” he added.

British Chamber of Commerce of the Philippines Executive Director Chris Nelson told BusinessWorld by phone that “compared (to other countries that allow) direct ownership, it is not the same… While we would welcome the extension, we would actually say that they should also be looking at the possibility of having land ownership.”

The Philippines should also consider joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to entice more foreign investments into the country, he added, speaking to BusinessWorld before the bill’s approval.

The CPTPP is a trade pact comprising Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. The UK last week became its 12th member.

BIR confident it will hit downgraded P2.85-T target

PHILIPPINE STAR/RUSSELL PALMA

THE Bureau of Internal Revenue (BIR) said it is on track to meet its downgraded P2.85 trillion collection target this year.

“As of November, the BIR is on track to meet its 2024 Emerging Goal (set by) the Development Budget Coordination Committee (DBCC) in March,” BIR Commissioner Romeo D. Lumagui, Jr. told BusinessWorld on the sidelines of a briefing at the House of Representatives. He noted that the target had been adjusted then to account for unpassed legislation and weaker-than-expected gross domestic product (GDP) growth.

In the first 11 months, the BIR collected P2.67 trillion, exceeding the P2.66 trillion goal for the period, it said in a Congressional hearing on Tuesday.

The total features a 36.67% increase in value-added tax collections to P622.24 billion.

The “other taxes” category posted 10.92% growth to P214.66 billion. Income tax grew 9.11% to P1.41 trillion.

Excise taxes totaled P284.53 billion, up 9.11%, with alcoholic beverages accounting for P103 billion and tobacco P130.83 billion.

Mr. Lumagui said excise performance reflects the shift in preference from cigarettes to vaping or electric cigarettes, and the impact of smuggling.

The P2.66 trillion collection for the 11 months would have failed to hit the earlier target of P2.84 trillion set in the Budget of Expenditures and Sources of Financing (BESF) issued in June 2023.

House Ways and Means Committee Chairman and Albay Rep. Jose Ma. Clemente S. Salceda said during the briefing: “If we did not (adjust) the BESF, then your performance would actually be negative.”

The economy expanded by a weaker-than-expected 5.2% in the third quarter, slowing from the revised 6.4% growth posted in the second quarter and 6% a year earlier.

This brought the nine-month growth average to 5.8%. Economic managers trimmed their GDP estimate for this year to 6-6.5% on Dec. 2.

“When the goal was set at P3 trillion, the forecast was that GDP would grow by 6-7%,” Mr. Lumagui said.

When the original target was set, it factored in revenue from unpassed legislation like the taxes on single-use plastics, pre-mixed alcoholic beverages, sweetened beverages and junk food, as well as the rationalization of the mining fiscal regime Mr. Lumagui said.

He called it “unfair” for the Bureau to be held to the original forecast when the new taxes did not happen.

“These are the laws that should have been passed for this year that could have or should have collected, that should have generated P107 billion. Shouldn’t that be removed from the goal because the law hasn’t been passed yet? You won’t be able to collect that for this year,” Mr. Lumagui said. — Aubrey Rose A. Inosante

Visitor arrivals hit 5.65 million at mid-December

IMAGE BY GIULIANO GABELLA VIA UNSPLASH

INTERNATIONAL visitors to the Philippines totaled 5.65 million as of Dec. 15, according to the Department of Tourism (DoT), well behind the pace needed to achieve the 7.7 million target for the year.

“South Korea remains our top source market, followed by the US and Japan,” Tourism Secretary Christina G. Frasco said at a briefing on Tuesday.

“To further expand our reach, we have intensified efforts to engage emerging opportunity markets, sharing the unique story of the Filipino and showcasing the rich array of experiences our country has to offer,” Ms. Frasco added.

The mid-December total is equivalent to 73.4% of the target for the year.

The DoT said that South Korea accounted for 1.15 million or 20.3% of the total arrivals, followed by the US with 889,489 or 15.7%, and Japan 367,747 or 6.5%.

Rounding out the top five were China, which sent 306,549 visitors or 5.4%, and Australia with 249,140 or 4.4%.

The other leading sources of visitors were Canada, Taiwan, Singapore, the UK, and Malaysia.

“We have graduated from measuring tourism merely by the number of people arriving, but rather on the more important numbers” like spending, length of stay, and return visits, she added.

Ms. Frasco said tourism receipts as of Dec. 15 amounted to P712 billion, exceeding the P697 billion booked in 2023.

“Tourists are now spending an average of over 11 nights in the country, and over 70% are repeat visitors,” she added.

“We are focusing on the numbers that drive the economy. Therefore, we are looking to surpass our visitor receipts in 2025,” Ms. Frasco said. — Adrian H. Halili

27 ecozones proclaimed during Marcos gov’t

THE Philippine Economic Zone Authority (PEZA) said 27 economic zones (ecozones) have been proclaimed during the Marcos administration.

“11 ecozones were proclaimed in 2023 (involving investment of) P3.538 billion. In 2024, 16 more ecozones at P5.637 billion. The zones are a mix of (information technology) and manufacturing,” PEZA Director-General Tereso O. Panga said at a briefing.

The investment promotion agency (IPA) said that the top nine local government units outside of Metro Manila, except Batanes, host PEZA ecozones.

“We see a direct correlation between LGUs hosting ecozones and higher levels of progress. This means a lot to us,” Mr. Panga said.

PEZA projects investment approvals this year at P215 billion, exceeding its target of P200 billion.

Mr. Panga said PEZA dividends remitted to the National Government for 2024 amounted to P1.36 billion, up from P900.14 million a year earlier, and the highest since 2021. — Adrian H. Halili

Power market operator sees reduced likelihood of red, yellow alerts in 2025

BW FILE PHOTO

RED AND YELLOW alerts will be less likely next year during the dry season, according to the Independent Electricity Market Operator of the Philippines (IEMOP).

“If you look at the weather now, according to (government weather service) PAGASA, La Niña has started,” Isidro E. Cacho, Jr., IEMOP’s head of trading operations, told reporters on Tuesday.

“Of course, its impact is different from last year’s El Niño. So, going into summer next year. Based on our latest projections, we don’t see any red and yellow alerts,” he added.

However, he does not rule out the possibility of unplanned or forced outages, leading to power interruptions.

PAGASA estimates a 74% probability of La Niña setting in by January, likely to persist through the rest of the first quarter.

“Next year, in terms of supply, we’re really seeing it to be quite stable,” Mr. Cacho said.

He cited the possibility of yellow alerts in the third quarter of 2025, particularly in the Visayas, due to the maintenance programs of some power plants.

“Compared to Luzon, the supply (in the Visayas) needs a bit of reinforcement,” he said.

Earlier this year, the Mindanao-Visayas Interconnection began full operations, enabling power sharing across all three main island grids.

The project allows excess power of up to 450 megawatts (MW) to be exported from the Mindanao grid to the Visayas.

This month, the market operator said power prices are low due to cooler weather and stable power supply.

IEMOP operates the Wholesale Electricity Spot Market (WESM), where energy companies can buy power when their long-term contracted power supply is insufficient for customer needs.

“Although there are outages — planned and unplanned — our demand has not been affected by the unplanned outages,” Mr. Cacho said.

According to the preliminary data from the IEMOP, spot prices system-wide fell 9.7% to P3.99 per kilowatt-hour (kWh) as of mid-December.

Between Nov. 26 and Dec. 15, the available supply increased 2.9% to 20,064 MW.

Demand, on the other hand, rose 0.2% to 13,692 MW.

On Luzon, the average price declined 10.6% to P3.79 per kWh.

Supply rose 4% to 14,191 MW, while demand rose 0.1% to 9,667 MW.

The WESM price in the Visayas dropped 8.9% month-on-month to P4.39 per kWh.

The grid’s supply during the period rose 2.3% to 2,449 MW. Demand grew 1.4% to 1,998 MW.

The average power price in Mindanao dropped 6.2% to P4.55 per kWh.

Available supply decreased 0.8% to 3,424 MW. Demand fell 0.2% to 2,026 MW. — Sheldeen Joy Talavera

China food expo yields P1.6B for PHL delegation

BW FILE PHOTO

THE PHILIPPINES obtained about P1.6 billion worth of food sales and firm purchase agreements during the China International Import Expo (CIIE) in Shanghai, the Center for International Trade Expositions and Missions (CITEM) said.

“The amount was a combination of reported sales, purchase agreements or memoranda of understanding, and business matching results following the six-day import-oriented trade show,” CITEM said in a statement on Tuesday.

It added that the Philippine delegation included 16 food exhibitors during the China based expo, this was also in collaboration with the Department of Agriculture.

It said that small and medium enterprises in the delegation highlighted products featuring the Philippine durian variety known as Puyat.

“Together with our valued partners from various government agencies and the private sector, CITEM is thrilled with the success of our seventh participation in CIIE. The country’s participation is expected to create jobs, providing bigger opportunities for local agricultural communities across the Philippines,” CITEM Executive Director Leah Pulido Ocampo said.

CITEM said that a memorandum of understanding was signed by Lionheart Farms Corp. and a Jiangsu-based company valued at $415,000, while Treelife Coco Sugar obtained more than $400,000 from a Shanghai e-commerce firm.

Dole Philippines, Inc. and Good Farmer acquired purchase agreements for fresh fruit, while SQ Fresh Fruits signed an agreement with Shishi Songhe International Trade Co. Ltd. to export durian.

“Durian is our next high-potential export revenue fruit. It was very evident from the expo goers’ overwhelming reception of our Puyat durian during our taste testing sessions that generated a lot of interest and inquiries,” Agriculture Assistant Secretary Philip C. Young said.

A coconut oil trading agreement was also reached by New Asia Oil, Inc. and Namchow Food Group during the event, though no details were provided.

CITEM said Liwayway International Co. Ltd. is also set to explore potential collaboration with Chinese firms on supply wchain optimization and channel expansion. — Adrian H. Halili

Digital economy growth challenging for revenue collection, legislator says

FREEPIK

THE GROWTH of digital marketplaces is posing challenges for the Bureau of Internal Revenue (BIR) in collecting taxes, a legislator said on Tuesday.

The Philippine digital economy was estimated at P2.05 trillion in 2023, accounting for 8.4% of gross domestic product, according to the Philippine Statistics Authority. The equivalent totals for 2022 were 7.7% and P1.9 trillion.

“The shift to the digital economy is making it difficult for the BIR to collect taxes on the domestic economy,” Albay Rep. Jose Ma. Clemente S. Salceda, said at a committee hearing.

The BIR is in the process of digitizing its internal processes, with a focus on training employees to be digitally savvy, upgrading technology infrastructure, and improving the taxpayer experience.

It has been transitioning to digital operations after adopting a 10-year digitalization roadmap in 2019.

“This isn’t a quick fix. This digital transformation is a long process. There’s a lot that needs to be done,” BIR Commissioner Romeo D. Lumagui, Jr. told BusinessWorld.

“As of now, we are on track in developing our digital (infrastructure)… with full implementation by 2028,” he added.

At the hearing, Mr. Salceda urged the government to collect digital value-added tax on goods sold through electronic platforms.

“I don’t know who is doing the IRR (Implementing Rules and Regulations), but goods over digital markets are not being included in the definition of the digital VAT,” he said. — Kenneth Christiane L. Basilio

Halal trade office established

FREEPIK

THE Department of Trade and Industry (DTI) said it established the National Halal Industry and Development Office (NHIDO) to oversee the industry’s development.

“The NHIDO will act as the central coordinating body for all Halal development efforts to streamline initiatives and foster collaboration,” the DTI said in a statement on Tuesday.

“The establishment of NHIDO marks a turning point for the Philippine Halal industry. It will serve as a unifying force to transform our goals into reality, unlocking opportunities for businesses, creating jobs, and elevating the Philippines as a Halal-friendly destination globally,” Halal Industry and Trade Office Program Manager Dimnatang M. Radia said.

The Trade department said that among the office’s key priorities is to simplify Halal certification and standards, ensuring easier access for medium, small, and micro enterprises (MSMEs).

“This initiative will be supported by expanded capacity-building programs that offer specialized training, equipping MSMEs and other stakeholders with the knowledge and skills needed to thrive in the Halal sector,” it added.

The agency said the NHIDO will collaborate with local government units and other agencies to put up Halal-compliant infrastructure, including slaughterhouses and cold storage facilities.

“This initiative will also involve regional integration efforts to enhance supply chains across Luzon, the Visayas, and Mindanao, creating the foundation for efficient Halal trade hubs,” it added. — Adrian H. Halili

PhilHealth has ‘adequate’ resources even without subsidy, Recto says

PHILIPPINE STAR/MICHAEL VARCAS

THE PHILIPPINE Health Insurance Corp. (PhilHealth) has enough reserves and a surplus to improve benefits next year even without the government’s subsidies, Finance Secretary Ralph. G. Recto said.

“PhilHealth has adequate resources to meet their obligations and even improve benefit packages for 2025,” Mr. Recto, who is also a PhilHealth board member, told reporters on Tuesday.

“They have adequate reserves, and they have a huge surplus which they can use for 2025.”

Lawmakers decided to cut PhilHealth’s supposed P74-billion state subsidy under the proposed 2025 national budget, citing its billions of unused funds.

According to PhilHealth’s financial statement, the state insurer’s reserve fund as of end-June was at P280.57 billion. However, this was down by 16.54% from P336.16 billion in the first half of last year.

Mr. Recto noted the reserve fund was enough to cover the benefits of its members.

“My understanding is, there was a board meeting about a few days ago and they increased the benefit package by 50%. So, the operating budget of PhilHealth next year is roughly P280 billion,” he said.

However, the Finance Secretary said he would like to “improve the benefit packages and reduce out of pocket expenses.”

PhilHealth Chief Executive Officer Emmanuel R. Ledesma said PhilHealth is “financially robust” to support its operations and finance the healthcare costs of Filipinos despite the move by Congress to deny it state subsidy for next year.

Mr. Ledesma told lawmakers on Tuesday the state health insurer has a surplus fund amounting to P150 billion, fund reserves totaling P280 billion, and investment resources of P490 billion.

“PhilHealth is still a very healthy corporation at the moment,” he told lawmakers during a House of Representatives hearing.

“These figures clearly demonstrate that PhilHealth is financially robust, well-positioned to sustain operations and fully capable of addressing the healthcare needs of our 115 million members,” he added.

In a separate statement on Tuesday, the state insurer also said benefits will improve and continue to be paid. It would do better to give the government reason to give it subsidies to use for long-term improvements, it added.

‘DIRECT ASSAULT’
A coalition of labor groups, however, decried the proposed zero-budget subsidy, calling it a “direct assault on social justice and the Constitution.”

The NAGKAISA Labor Coalition, the country’s largest alliance of labor groups, urged President Ferdinand R. Marcos, Jr. to veto the budget, restore the PhilHealth subsidy, and realign government spending to prioritize public welfare over what it described as excessive allocations for political and infrastructure projects.

“The zero subsidy is not just bad policy — it’s negative social justice,” said NAGKAISA Chair Jose Sonny G. Matula in a statement.

PhilHealth’s delayed payments have already forced hospitals to scale back services and left healthcare workers without compensation, NAGKAISA said. Without a subsidy, these issues could worsen, leaving patients and institutions struggling to stay afloat.

Mr. Matula argued that Mr. Marcos had been misled by advisers and questioned the accuracy of the cited figures.

“PhilHealth’s share of hospital expenses is already insufficient. Without a subsidy, families will have no choice but to pawn their land, homes, and even basic household items just to afford treatment,” Mr. Matula added in mixed English and Filipino.

Should the President sign the 2025 budget, the group said it is preparing to seek redress before the Supreme Court for violating the constitutional mandate to prioritize health and education.

The group urged Mr. Marcos to veto the 2025 national budget and reinstate the PhilHealth subsidy, but the President on Monday defended the decision to remove government subsidy for the state health insurer citing its reserves.

PhilHealth “has a P500-billion reserve and the cost to provide their services in 1 year is less than P100 billion…They have sufficient funds to carry on,” Mr. Marcos told reporters at the presidential palace.

Critics argue that PhilHealth is already balance sheet insolvent, with assets lower than liabilities, and that removing government subsidies could exacerbate its financial instability.

Despite these concerns, Mr. Marcos maintained that PhilHealth has sufficient funds to continue its services and has been efficient in providing coverage, including expanded services for cancer patients.

The bicam has also faced criticism over moves to cut the Department of Education’s (DepEd) budget by P10 billion, which Senate President Jose Francis “Chiz” G. Escudero said could be addressed through DepEd’s unspent funds.

“The President can augment any item in the budget from savings or unspent items in the budget,” he said in a text message to reporters.   

“There are lots of resources to augment. DepEd and its secretary should know because the submissions for the budget deliberations on their own dismal fund utilization came from them,” he added.

Education Secretary Juan Edgardo “Sonny” M. Angara earlier hit the budget cut, saying in an X post on Monday, “It seems the congressman wants us to sink even lower.”

In particular, DepEd can utilize the unspent P10.034 billion from its P13.068-billion in the 2022 General Appropriations Act (GAA) for its computerization program, Mr. Escudero said.

That fund would revert to the National Treasury by the end of the year, he noted.

DepEd can also tap the P10.2 billion that it has not obligated nor spent from the P20.4 billion that Congress allocated in the 2023 GAA for the similar program, he added.

The agency also has unspent P15.9 billion under the 2024 budget for its computerization program.

In a statement shared to reporters via Viber, Finance Undersecretary Annalyn M. Sevilla said of the P32 billion budget for the DepEd Computerization Program from 2022 to 2024, P28.5 billion has been obligated, as of Nov. 30, 2024.

Meanwhile, a private sector group advocating learning reforms has called on lawmakers to fix the cuts faced by the education sector under the proposed 2025 national budget, citing the Marcos administration’s push for human capital development.

In a statement, the Philippine Business for Education (PBEd) flagged that Manila has been allocating only 3.6% of its gross domestic product to the learning sector since 2022, a trajectory that is far below the global standard for education.

This is “far short of UNESCO’s (United Nations Educational, Scientific and Cultural Organization) recommendation of 4-6%,” PBEd said.

It said the Congress-approved budget for 2025 will provide the DepEd and its attached agencies a nominal increase of just P19.42 billion compared to the agency’s P758.6-billion funding under the 2024 national budget.

“A closer look shows that this increase only translates to an approximate of P1,600 spent for every student,” PBEd noted.

“We still have a long way to go in ramping up our efforts and ensuring that our students and our teachers are provided with the essential resources needed to succeed,” it said. “Investment in education must be a priority.”

PBEd cited the President’s “direction on improving our human capital.”

The Marcos administration’s eight-point socio-economic agenda under the Philippine Development Plan for 2023 to 2028 includes the target to “equip Filipinos with skills to participate fully in an innovative and globally competitive economy.”

Amid issues hounding the proposed 2025 national budget, Mr. Marcos on Monday said he would push for the restoration of DepEd’s budget cuts, particularly the P10-billion proposed funding for its national computerization program for 2025.

Speaking to reporters at the presidential palace, the Philippine leader said the cut does not align with his government’s thrust in science, technology, engineering, and mathematics (STEM) development.

“With this pronouncement on restoring the education sector’s budget, we remain hopeful that his leadership will inspire the necessary prioritization of education within the government,” PBEd said. — Aaron Michael C. Sy, Kenneth Christiane L. Basilio, Chloe Mari A. Hufana, and Kyle Aristophere T. Atienza

PSEi plunges to 6,500 level before policy meetings

BW FILE PHOTO

THE MAIN INDEX on Tuesday ended at the 6,500 level for the first time since August as the market succumbed to selling pressure before the policy meetings of the US Federal Reserve and the Bangko Sentral ng Pilipinas (BSP).

The Philippine Stock Exchange index (PSEi) fell by 1.71% or 113.45 points to close at 6,501.71 on Tuesday, while the broader all shares index declined by 1.12% or 42.30 points to end at 3,710.21.

This was the PSEi’s lowest close in over four months or since it finished at 6,433.24 on Aug. 6.

“The PSEi fell amidst strong selling pressure as foreigners sold nearly net P1.4 billion worth of shares and investors hedged risks ahead of the monetary policy meetings of the Federal Reserve and Bangko Sentral ng Pilipinas this week,” Chinabank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message.

Net foreign selling increased to P1.36 billion on Tuesday from P495.9 million on Monday.

“The local market plunged as investors kept a cautious stance while waiting for the policy meetings of the Federal Reserve and the Bangko Sentral ng Pilipinas. More than the interest rate decision, investors are looking forward to the policy outlook of both central banks, especially that of the Federal Reserve given the upside risks to the US’ inflation caused by President-elect Donald J. Trump’s planned protectionist policies,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

The Fed will hold its last policy meeting for the year on Dec. 17-18, while the BSP’s Monetary Board is scheduled to have its own review on Dec. 19. Both central banks are widely expected to cut benchmark interest rates by 25 basis points but signal a hawkish path ahead amid lingering uncertainties.

“The peso’s weakness against the US dollar also weighed on the market in today’s trading,” Mr. Tantiangco added.

The peso sank to a three-week low of P58.871 per dollar on Tuesday, down by 20 centavos from its P58.671 finish on Monday, Bankers Association of the Philippines data showed.

All sectoral indices closed lower on Tuesday. Financials declined by 2.51% or 57.42 points to 2,223.47; services dropped by 1.78% or 37.40 points to 2,054.09; property shed 1.29% or 31.41 points to end at 2,392.81; industrials went down by 1.25% or 113.06 points to 8,901.92; mining and oil retreated by 0.8% or 60.70 points to 7,465.64; and holding firms fell by 0.65% or 36.76 points to close the session at  5,588.43.

“JG Summit Holdings, Inc. was the top index gainer, climbing 2.55% to P20.10. Monde Nissin Corp. was the main index laggard, plummeting 7.5% to P7.40,” Mr. Tantiangco said.

Value turnover went up to P6.6 billion on Tuesday with 1.13 billion shares changing hands from the P4.64 billion with 533.34 million issues traded on Monday.

Decliners overwhelmed advancers, 124 to 65, while 51 names closed unchanged. — S.J. Talavera

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