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Coco fund law amendment seen boosting replanting

CENTURYPACIFIC.COM.PH

THE Department of Agriculture (DA) asked the 20th Congress to amend the Coconut Farmers and Industry Trust Fund Act to refocus the law to support replantings.

“We must revise the law to focus the trust fund’s resources on the most critical needs — particularly replanting,” Agriculture Secretary Francisco Tiu Laurel, Jr. said in a statement.

“Many of our coconut trees are senile. If we don’t replace them immediately, we risk the industry’s future.”

Coconut trees over 50 years old produce less than half the typical yield. Younger trees produce around 80-100 nuts a year.

“While the fruit-bearing capacity of older trees may be temporarily boosted with salt fertilization, replanting is the only long-term solution to sustain the viability of the coconut sector,” the DA said.

With 3 million farmers working on 3.6 million hectares of coconut plantations, the Philippines is the world’s second-largest coconut producer and exporter after Indonesia.

But the DA said the sector is “underperforming,” with only 134 processing plants operating — many at just 50% capacity — and 60 oil mills remaining well below their combined capacity of 3.7 million metric tons due to “low farm yields.”

“These reforms are about more than productivity — they’re about securing the livelihoods of millions of Filipino coconut farmers,” the DA said.

Each year, the industry exports an average of $2 billion worth of crude and refined coconut oil, desiccated coconut, copra meal, and coconut water from about 14 to 15 billion nuts.

“If the Philippines can increase yields, it could ride the wave of increasing demand for coconut oil, particularly in Europe,” the DA said.

“Although the yearly targets are expected to be met, the current pace of planting still needs to be accelerated to assure the industry’s sustainability,” it added.

The Philippine Coconut Authority (PCA) planted 8.6 million seedlings in 2024, exceeding the 8.5 target even during El Niño.

President Ferdinand R. Marcos, Jr. set a target of planting 100 million coconut trees by 2028.

For 2025, the government has allocated P1 billion for planting and P1.8 billion for fertilization. 

“But to truly scale the effort, the P80-billion trust fund must be refocused toward high-impact programs that lift productivity and farmer incomes,” the DA said.

“The proposed amendment will allow greater flexibility to ensure a more responsive and adaptive approach to the evolving needs of coconut farmers and the industry.”

Aside from replanting, the proposed amendment to the trust fund law should also finance drip irrigation, water impounding, fertilization, and farmer welfare programs. — Kyle Aristophere T. Atienza

Farm output likely benefited in Q2 from weak year-earlier base

A FARMER prepares to plant rice in Malilipot, Albay province, June 16, 2023. — PHILIPPINE STAR/EDD GUMBAN

By Kyle Aristophere T. Atienza, Reporter

AGRICULTURE OUTPUT likely grew in the second quarter after year-earlier production was held down by the El Niño, analysts said, adding that high-value crops like rice and corn are believed to have driven growth.

The second-quarter result also came in before consecutive tropical storms traversed the Philippines in July.

Federation of Free Farmers (FFF) National Manager Raul Q. Montemayor said via Viber that the second quarter data will reflect a “slight increase” because of base effects. The year-earlier result had been “relatively low” because of dry conditions resulting from El Niño.

“Crops may exhibit a slight rebound, while poultry will continue to be the lone bright spot in the agricultural sector,” he said.

The value of production in agriculture and fisheries at constant 2018 prices dropped 3.3% to P413.91 billion in the second quarter of 2024, with crops and livestock production leading the declines.

It was the biggest drop since the 3.4% contraction posted in the first quarter of 2021.

Former Agriculture secretary William Dar said via Viber that crops like vegetables likely performed in the second quarter because of favorable weather.

Corn and rice are believed to have driven growth in the crops sector, former Agriculture undersecretary Fermin D. Adriano said via Viber.

“Vegetable production will likely increase given good weather,” he added.

Crop output, which accounts for half of agricultural production, fell 8.6% year on year in the second quarter of 2024, with production of palay and corn declining 9.5% and 20.3%, respectively.

Sugarcane, onion, tomato, mung bean (monggo), and abaca also posted double-digit declines in production.

The Philippine Statistics Authority said last week that palay (unmilled rice) harvest may have increased 13.2% to 4.35 million metric tons (MMT) in the second quarter.

It said as of June 1, almost 90% of the 972,750-hectare standing crop was harvested, yielding palay output of 3.89 MMT.

Mr. Montemayor of the FFF said poultry likely continued to be the “lone bright spot” in agriculture in the second quarter.

“Poultry and fishery production might rebound again because of good weather compared to the same quarter last year when El Niño struck the country,” Mr. Adriano said.

Poultry output rose 8.7% year on year in the three months to June 2024, with chicken egg, chicken, duck, and duck egg production rising.

Fisheries output, meanwhile, rose 2.2% in the second quarter of 2024, a turnaround from the 13.8% decline a year earlier, amid gains in the catches of skipjack or gulyasan, bigeye tuna, yellowfin tuna, frigate tuna or tulingan, P. Vannamei, blue crab, fimbriated sardines, and cavalla or talakitok.

“The fisheries sub-sector will likewise post minimal growth,” Mr. Dar said.

The analysts said livestock output likely contracted in the second quarter of 2025.

“The piggery sub-sector continues to be posting dismal output due to the prevalence of the African Swine Fever (ASF),” Mr. Dar said.

Hogs account for 12.4% of livestock production.

The Food and Drug Administration has yet to approve a Vietnamese vaccine against ASF for commercial rollout, though Agriculture Secretary Francisco Tiu Laurel, Jr., said in late July that the first 150,000 doses of the AVAC have been distributed.

“Livestock will continue its downward trend due to the persistent spread of ASF,” Mr. Adriano said.

The Bureau of Animal Industry reported active ASF cases in 32 barangays across the country as of June 20, down from 64 a week earlier.

As of July 11, the number of affected barangays had declined to 28.

Livestock production fell 0.3% in the second quarter of 2024, reversing the 0.7% expansion a year earlier, led by weak goat, carabao, and hog production.

SC partly rejects VAT claim in Coral Bay Nickel ecozone case

PHOTO BY MIKE GONZALEZ

THE Supreme Court (SC) rejected the applicability of the cross-border doctrine in the case of a nickel miner registered with the Philippine Economic Zone Authority (PEZA) that had been claiming exemption from value-added tax (VAT).

In a March 2025 decision written by Associate Justice Japar B. Dimaampao and only made public on Monday, the court partially granted a refund claim filed by Coral Bay Nickel Corp., a PEZA-registered exporter of nickel and cobalt sulfide, for unutilized input VAT on purchases consumed outside the ecozone but within Philippine territory.

“Having been consumed outside of the ecozone, the cross-border doctrine finds no application,” according to the 15-page ruling.

“The same could not have been deemed ‘exported’ to Coral Bay. Having been rendered within the Philippines’ customs territory, it is naturally subject to national internal revenue laws such as VAT,” it added.

The High Court upheld the ruling and computation of the Court of Tax Appeals (CTA) Third Division, awarding the company the reduced refund amount of over P11.88 million, representing its unutilized input VAT attributable to its zero-rated sales for taxable year 2012.

The SC ruled that while ecozones are treated as foreign territory for tax purposes under the cross-border doctrine, VAT exemptions apply only to goods or services consumed within these zones or exported overseas.

Purchases made and consumed outside PEZA zones — even if within the Philippines — remain subject to VAT.

The decision reversed an earlier ruling by the full tax court, which had found Coral Bay to be fully VAT-exempt by virtue of its PEZA registration.

The SC said this interpretation was inconsistent with Republic Act No. 7916, which granted PEZA firms a preferential 5% tax on gross income in lieu of all national and local taxes, with the explicit exception of VAT.

“When the nuances of the foregoing pronouncements and issuances are taken together, two key concepts are established: one, PEZA-registered enterprises are not absolute VAT-exempt entities; and two, the VAT treatment of its transactions depends on whether the cross-border doctrine applies,” it added. — Chloe Mari A. Hufana

DoT exploring ways to expand visitor traffic from India

REUTERS

TOURISM Secretary Ma. Esperanza Christina G. Frasco will meet with Indian counterparts to explore ways to increase two-way visitor traffic, according to a Facebook post by the Department of Tourism (DoT).

It said Ms. Frasco will be in President Ferdinand R. Marcos, Jr.’s entourage during his state visit to India beginning Monday.

“The DoT chief has important meetings lined up… including a meeting with the Federation of Indian Chambers of Commerce and Industry (FICCI),” the DoT said on Monday.

“The meeting will zero in on strategies to boost the number of Indian visitors to the Philippines and explore ways to encourage Filipinos to travel to India, among others,” it added.

She is also set to meet with executives from the aviation industry, including flag carrier Air India and budget airline IndiGo.

Meetings are also scheduled with the Indian hotel, resort, and accommodation industry, as well as travel companies.

“The tourism secretary will also have a meeting with the National Film Development Corp. Ltd. (NFDC), a film producer based in India, for potential areas of collaboration,” the DoT added.

India was the Philippines’ 13th largest source of visitors in the four months to April, accounting for 28,842, or 1.37%, of the total arrivals.

Last year, arrivals from India hit 78,995, up 12.4%.

In his pre-departure message, Mr. Marcos cited “much potential for cooperation with India.”

“We intend to explore these by charting a plan of cooperation across a broad spectrum of shared interests: from defense to trade, investment, health, pharmaceuticals, connectivity, agriculture, tourism, and many other areas,” he said.

“In the lead-up to this visit, we have already announced our grant of visa-free privileges for Indian travelers, which we expect will boost our tourism-related industries and further bring mutual understanding and mutual benefits,” he added.

India, together with the Middle East and the Gulf Cooperation Council, is among the markets being explored by the DoT to compensate for the fall-off in arrivals from China.

China visitors amounted to 92,659 in the first four months, down 34.4% from a year earlier.

In the first four months, total arrivals hit 2.1 million, against 2.12 million in the same period last year. — Justine Irish D. Tabile

Proposed flood-control budget reduced 26% to P275 billion

PHILIPPINE STAR/EDD GUMBAN

THE Department of Budget and Management (DBM) said the government is proposing a 26.08% reduction in flood-control funding to P274.9 billion in 2026.

According to the National Expenditure Program (NEP) — the document prepared by the Executive branch that serves as the basis for budget legislation, flood-control related funds for the Department of Public Works and Highways (DPWH) are set to fall compared with the P346.6 billion allocation in the 2025 General Appropriations Act (GAA).

The DBM said the sharp cuts were the result of the removal of budget “insertions.”

“As a whole, the (NEP) budget of the DPWH went down compared to the 2025 General Appropriations Act,” Budget Secretary Amenah F. Pangandaman told reporters on Monday during her inspection of flood-control projects in Pampanga.

President Ferdinand R. Marcos Jr. singled out graft-ridden flood control projects during his State of the Nation Address last week, after consecutive typhoons submerged large parts of the country.

In his speech, the President ordered the DPWH to investigate flood control projects that failed during the recent storms, calling out widespread corruption in infrastructure spending and warning of criminal charges for those found responsible.

On Monday, the DBM visited the municipalities of Apalit and Arayat.

Apalit Mayor Oscar D. Tetangco, Jr. said the local government is currently dumping sand to mitigate flooding, adding that once rains resume, the sand is likely to wash away.

Ms. Pangandaman said the government can tap the DPWH’s fund for road maintenance and the Quick Response Fund, an emergency standby fund to support disaster preparedness, relief, and rehabilitation. 

“Apalit, San Simon, Minalin, Santo Tomas — all of these are in the Pampanga 4th District. We still need P389 million. The Apalit portion is P166 million,” Ms. Pangandaman said when asked about the cost of road repairs in the province.

She also inspected the construction of flood mitigation structures of the eroded river bank in Barangay Candating, Arayat, which was destroyed last year.

The government has allocated P100 million for the project in the 2025 GAA.

The project remains with the contractor as it is still under warranty, the DBM said. — Aubrey Rose A. Inosante

Business registrations dip after POGO ban

PHILIPPINE STAR/EDD GUMBAN

BUSINESS NAME registrations fell 8.9% year on year in July to 79,316, the Department of Trade and Industry (DTI) said, with analysts attributing the decline to the ban on Philippine Offshore Gaming Operators (POGOs).

According to the DTI’s business name registration system, 69,709 were new business name registrations in July, while 9,607 were renewals.

In the first seven months, registrations amounted to 708,336, down 7.5%. Of these, 607,129 were new business names while 101,207 were renewals.

Rizal Commercial Banking Corp.  Chief Economist Michael L. Ricafort said the POGO exit, could have reduced the number of new ventures or suppliers catering to the operators.

“The resulting slowdown in the real estate sector in terms of higher vacancies after the exit of POGOs could have also (disrupted) the supply chains of some property companies, thereby slowing down new business ventures that would have otherwise serviced them,” he added.

He said the new US tariff regime could have reduced the appetite for opening new businesses.

“Higher US tariffs and other protectionist policies could have led to some caution, especially from the point of view of some exporters and those belonging to the supply chains of global exporters,” he said.

“This may have slowed down new investment and expansion plans, global trade, employment, and overall world economic growth,” he added.

US President Donald J. Trump imposed a 19% duty on goods from five members of the Association of Southeast Asian Nations.

The new rate will take effect on goods coming from the Philippines, Cambodia, Malaysia, Thailand, and Indonesia starting Aug. 7.

Some 84.42%, of business registrations were filed online, while 13.6% were done through a combination of online and on-site transactions.

Women-led businesses accounted for 60.26%, or 429,574, of the total registrations.

Region IV-A accounted for 129,971 registrations, followed by the National Capital Region and Region III, which had 94,645 and 92,991, respectively.

Some 351,176 registrants were engaged in retail trade, excluding motor vehicles and motorcycles.

Also topping the registration list were companies engaged in food and beverage services, real estate, other personal activities, and wholesale and retail trade and repair of motor vehicles and motorcycles. — Justine Irish D. Tabile

Alaska Milk not expecting to raise prices this year

ALASKA MILK Corp. said that it will be keeping prices steady this year, citing the need to maintain affordability and accessibility across its product lineup.

“For the rest of the year, which is five months, we are not looking at any price increases, as that is also going against the principle of affordability,” Alaska Milk Managing Director Tarang Gupta told reporters on the sidelines of the 2025 Nutrition Forum.

He said that the company has been trying to hold the line on prices.

“We are trying to do as much as possible to hold prices steady because (we consider) affordability to be critical,” he added.

According to the Department of Trade and Industry (DTI) Suggested Retail Price Bulletin of basic necessities and prime commodities, a 165-gram unit of Alaska Fortified Powdered Milk Drink is sells for P44.

This year, Trade Secretary Ma. Cristina A. Roque said no price increases are expected.

Mr. Gupta said that the company has been pursuing cost-efficient solutions since the high-inflation year of 2022.

“We are trying to stay away from price increases. Rather, we are focusing more on pricing and packaging in such a way that we can support affordability,” he added.

He also said that Alaska Milk is also working with the government to help address persistent malnutrition.

Citing results of the 2023 National Nutrition Survey, Mr. Gupta said malnutrition has been persistent across age groups, resulting in stunting among children and increasing obesity in adolescents.

“This is not just a statistic; it is a call to action … We must make significant investments in human capital today to secure the nation’s tomorrow,” he added.

To help address malnutrition, he said Alaska Milk has been developing accessible and fortified dairy products and training dairy farmers.

According to Mr. Gupta, only 1% of the milk supply is produced locally, leading to the launch of its Dairy Development Program in 2021.

The program has trained over 1,500 dairy farmers to build up the dairy industry.

This year, he said the target is to train 500 more beneficiaries nationwide, predominantly in Southern Luzon. — Justine Irish D. Tabile

Davao, Siargao, Bicol airports upgrade proposal under review

PHILSTAR FILE PHOTO

THE Department of Transportation (DoTr) said the bundled unsolicited proposal to modernize and upgrade three regional airports is now being assessed.

“Our airports are a priority…  This is the first bundled airport unsolicited proposal that we have received since we took over the DoTr earlier this year,” Transportation Secretary Vivencio B. Dizon said in a statement on Monday.

The DoTr said it had received the first bundled unsolicited proposal to upgrade and expand Davao, Siargao, and Bicol airports from a consortium composed of JG Summit Infrastructure Holdings Corp. and Filinvest Infra-Solutions Ventures, Inc.

The DoTr said the unsolicited proposal for the three airports will be subject to negotiation in accordance with the Republic Act No. 11966 or Public-Private Partnership (PPP) Code.

According to the PPP Center, the P16.05-billion bundled airport project includes the development, operation, and maintenance of the Davao International Airport, and Bicol International Airport over a 30-year concession period, and a 15-year concession period for Siargao airport.

The PPP Center endorsed the proposal to the DoTr through the Civil Aviation Authority and the Davao International Airport Authority.

“The Civil Aviation Authority and the Davao International Airport Authority informed the proponent and the PPP Center that it will proceed to the detailed evaluation of the proposal,” the PPP Center said. — Ashley Erika O. Jose

Typhoons, losses, and taxes

The Philippines, being an archipelago in the Pacific Ring of Fire and a frequent target of tropical cyclones, faces recurring challenges from natural disasters. Just last month, our country was devastated by typhoons Crising, Dante, and Emong, plus the southwest monsoon (Habagat), which caused widespread flooding.  We are just in the second half of the year, and unfortunately, the Philippine Atmospheric, Geophysical, and Astronomical Services Administration (PAGASA), is projecting up to 16 cyclones between August and December. 

Natural disasters bring not only humanitarian crises but also significant economic disruption. For businesses, the damage can be extensive — destroyed assets, halted operations, and financial losses. While recovery is paramount, understanding the tax implications of such losses is essential for financial resilience.

Typhoons affect businesses in multiple ways, such as damage to property (inventory, building, and equipment, among others), operational downtime, and financial losses. These losses, if properly documented, may be claimed as deductions for income tax purposes.  Please note, however, only property used in business may be eligible for deductions.

Under the 1997 Tax Code, as amended, losses to property connected with the trade, business, or profession actually sustained in a taxable year and not compensated for by insurance or other forms of indemnity can be claimed as deductions for income tax purposes. These losses could arise from even ordinary and casual losses.

Casualty losses refer to damage or destruction of property due to unexpected events like typhoons. Taxpayers may deduct such losses from gross income, provided they meet specific criteria.

To be deductible for income tax purposes, the following criteria must be met for losses, whether they are ordinary or casualty losses:

• They must be related to trade, business, or profession;

• They should be actually sustained and written off during the year;

• They should not be compensated for by insurance; and

• They must be evidenced by closed and completed transactions.

It is important to note that the amount of loss that is compensated for by insurance coverage cannot be claimed as a deductible loss. If the insurance proceeds exceed the net book value of the damaged properties/assets, such excess shall be subject to the regular income tax but not to the VAT since the indemnification is not an actual sale of the goods.   

Aside from the foregoing requirements, for casualty losses, the taxpayer must also file a sworn declaration of loss within 45 days from the date of the event.  The declaration of loss must contain, among others, the nature and timing of the event, a description and location of damaged property, and details necessary to compute the losses (i.e., cost or basis of the property, depreciation allowed value before and after the event, cost of repair, and insurance or compensation received or receivable, among others). It must also be accompanied by supporting documents such as financial statements for the year preceding the event, insurance policies (if applicable), photographs before and after the event, receipts, vouchers, cancelled checks, and police reports (for theft or looting). These documents must be retained and made available during audits of the Bureau of Internal Revenue (BIR).

The deduction of assets as losses must be properly recorded in accounting records, with the adjustment of the applicable amounts and the restoration of the damaged property or the acquisition of the new property to replace it properly recorded and recognized either as repair expenses or capitalized as an asset.

In the event of total loss or destruction, the net book value immediately preceding the natural disaster should be used as the basis for claiming casualty losses and must be reduced by the amount of insurance proceeds received.

While casualty losses affect income tax computations, they also have VAT implications. Insurance proceeds received as indemnification for damaged assets are not subject to VAT. This is because the transaction is not a sale of goods or services but a reimbursement.  In BIR Ruling No. OT-406-2022, the BIR also opined that inasmuch as indemnification cannot be regarded as an actual sale of goods, the insurance proceeds derived/to be derived by the taxpayer due to the destruction of its insured assets does not form part of gross sales for VAT purposes pursuant to Section 105 of the Tax Code, as amended.

Casualty losses also do not generate output VAT since there is no sale or exchange of goods or services. However, the sale of damaged goods may be subject to VAT.

On the other hand, taxpayers may also claim input VAT on expenses incurred for repairs or replacement of damaged assets, provided such are used in VAT-registered activities and these are supported by VAT invoices containing all information required under the invoicing regulations.

Typhoons are an unfortunate but recurring reality for businesses operating in the Philippines. Beyond the immediate physical and financial damage, these events pose long-term challenges to business continuity and fiscal health. However, with proper documentation and strict adherence to tax regulations, businesses can mitigate some of the financial impact through allowable deductions and VAT considerations. Casualty losses — when substantiated with complete and accurate records — can be deducted from taxable income, offering a measure of relief during recovery. It is essential that businesses maintain a robust system for tracking asset values, insurance coverage, and repair costs to ensure compliance and maximize tax benefits.

Incorporating tax planning into your disaster recovery strategy is not just smart — it’s essential. Engage your finance and legal teams to align on documentation, insurance, and tax compliance before the next storm hits.  Preparedness is key to resilience.

Let’s Talk Tax is a weekly newspaper column of P&A Grant Thornton that aims to keep the public informed of various developments in taxation. This article is not intended to be a substitute for competent professional advice.

 

Edward L. Roguel is a partner for the Tax Advisory & Compliance Practice Area of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd.

business.development@ph.gt.com

Philippines, India hold 1st joint naval drills in contested South China Sea

BW FILE PHOTO

By Kenneth Christiane L. Basilio, Reporter

THE PHILIPPINES and India held their first joint naval exercises in the disputed South China Sea, Philippine military officials said on Monday, just as President Ferdinand R. Marcos, Jr. left for a state visit to New Delhi.

The two-day sea drills began on Sunday and have been “productive so far,” according to Armed Forces of the Philippines (AFP) Chief-of-Staff General Romeo S. Brawner, Jr.

Philippine and Indian forces have met their “objectives for the exercise,” he said in mixed English and Filipino, based on a video shared with reporters.

“We are hoping that these would continue because we still have many exercises and activities with the Indian Armed Forces,” he added.

The naval exercise proceeded without incident, despite the presence of two Chinese warships in the area. “We didn’t experience anything untoward,” Mr. Brawner said. “There was shadowing, but we expected that already.”

Philippine Lieutenant Colonel John Paul C. Salgado said two vessels from the People’s Liberation Army-Navy were monitored near the area but did not interfere.

“The activity proceeded without interference… However, they were continuously monitored and tracked,” he said via Viber message.

The South China Sea remains a key regional flashpoint, with China asserting sweeping claims based on its so-called nine-dash line, overlapping with the exclusive economic zones of countries like the Philippines, Vietnam, and Malaysia.

A 2016 ruling by a United Nations-backed tribunal in The Hague voided Beijing’s claim, but China has rejected the decision and maintains significant naval presence in contested areas, including the Spratly Islands and Scarborough Shoal.

Clashes between Philippine and Chinese vessels have intensified in recent months, as Manila pushes back against what it calls repeated incursions into its waters.

In his pre-departure speech, Mr. Marcos expressed hope for closer ties with India, highlighting shared maritime interests and challenges.

“Our geostrategic position as coastal states that border the busiest international trade routes and critical sea lines of communication in the Indo-Pacific region… and our unwavering commitment to regional peace and cooperation serve as a credible foundation of our active and growing maritime cooperation,” he said, according to a transcript from the Presidential Communications Office.

Like the Philippines, India has been entangled in border disputes with China along the Himalayan region. The two nuclear-armed nations share about 4,000 kilometers of border, much of which is contested.

Manila has been pushing India’s inclusion in the Squad, an informal grouping of the US, Australia, Japan and the Philippines formed in 2024 to bolster regional maritime security and conduct joint patrols in the South China Sea.

The Philippines and the US earlier this month affirmed their commitment to boosting deterrence measures in the South China Sea amid China’s increasing assertiveness in the contested waterway.

Philippine National Security Adviser Eduardo M. Año said he had met with US Secretary of State Marco Antonio Rubio in Washington, DC, where both sides discussed efforts to deepen their alliance and expand cooperation in defense and security.

The meeting came as both countries aim to counter increasingly aggressive Chinese activities in the region, including the deployment of China Coast Guard and maritime militia vessels near Philippine-occupied features.

The 1951 Mutual Defense Treaty obligates both nations to come to each other’s aid in case of an armed attack in the Pacific area, including the South China Sea.

Relations between the two countries have strengthened under Mr. Marcos, who has taken a more assertive stance against Beijing’s maritime claims.

The Marcos administration has expanded joint military exercises with US forces, opened additional sites under their Enhanced Defense Cooperation Agreement (EDCA) and pursued stronger ties with other Indo-Pacific partners.

Congressmen file bill to institutionalize freedom of information in gov’t

PHILIPPINE STAR/MICHAEL VARCAS

PHILIPPINE lawmakers on Monday refiled a Freedom of Information (FOI) bill that would require government agencies to disclose monthly transactions and require top officials to release their annual statements of assets, liabilities and net worth (SALN).

Deputy Minority Leader and Party-list Rep. Leila M. de Lima said the bill offers Congress a chance to act on long-standing demands for transparency, particularly after President Ferdinand R. Marcos, Jr.’s recent remarks condemning corruption in infrastructure spending.

“It’s about time,” she told reporters in mixed English and Filipino. “We have heard from the President during the State of the Nation Address (SONA), and it came from him that he wants to know what happened to infrastructure projects. This is actually an opportunity.”

Although the 1987 Constitution recognizes the people’s right to access public information, an enabling law is needed for full implementation.

Multiple FOI proposals have been filed since 1992 but failed to pass, primarily due to a lack of legislative urgency. A 2016 executive order by former President Rodrigo R. Duterte established FOI mechanisms for the Executive branch, but not for Congress or the Judiciary.

“Current inconsistencies and lack of mandatory disclosure highlight the need for a legislated FOI policy,” Ms. De Lima, a former senator, said in a statement. “This proposed measure is a powerful weapon against corruption, disinformation and the absence of integrity and accountability in government.”

House Bill No. 2897, authored by Representatives Edgar R. Erice (Caloocan), Adrian Michael A. Amatong (Zamboanga del Norte), Arlene J. Bag-ao (Dinagat Islands), Jaime R. Fresnedi (Muntinlupa), Cielo B. Lagman (Albay), Alfonso V. Umali (Oriental Mindoro) and Ms. De Lima, seeks to “adequately address the vulnerabilities and problems that arise from the lack of transparency and access to information,” according to its explanatory note.

The measure requires all government agencies to make public “all information on official acts, transactions, decisions, as well as government research data used as a basis for policy development.”

Agencies must also publish monthly records on budgets, collections, expenditures, procurement plans, contracts, bidding documents and trade or investment agreements.

Exemptions include documents deemed sensitive to national security or foreign relations, as well as privileged court communications and records from congressional executive sessions.

“The exceptions cannot be invoked to cover up legitimate investigations being conducted by law enforcement agencies or the Legislature involving the commission of a crime, wrongdoing, graft, corruption, or any unlawful activity,” according to the bill.

The proposed law also requires the President, Vice-President, Cabinet members, lawmakers, Supreme Court justices, top military officials and heads of constitutional commissions to submit and publicly disclose their SALNs each year.

Noncompliance may result in administrative sanctions, while officials who intentionally conceal or destroy requested public information could face imprisonment of up to six years and a fine of as much as P1 million.

‘CLAMOR FOR TRANSPARENCY’
Meanwhile, the Senate will prioritize a more transparent and accessible budget process amid mounting public calls for accountability, said Senator Sherwin T. Gatchalian, who heads the finance committee.

“There is a big clamor for transparency,” he told reporters at a news briefing. “The direction we are going is that we will undergo a golden age of transparency and accountability.”

Last year’s budget deliberations drew criticism after the bicameral conference committee reportedly increased unprogrammed funds to more than P500 billion and included so-called “blank line-items” — prompting concerns that changes were made after Congress ratified the budget.

President Ferdinand R. Marcos, Jr., in his SONA last week warned Congress that he would reject any budget proposal that does not align with his administration’s priorities, even if it results in a reenacted budget.

To improve transparency, Mr. Gatchalian said he is pushing the publication of more budget documents in online formats to allow the public to track each stage of the budget process.

He said these would include the full proposed budget approved by the House of Representatives, funding requests submitted by agencies, the Senate committee report and third reading version, and the reconciled version produced by the bicameral conference committee.

“So this is what I call the golden age of transparency because the people can now follow the budget process step by step,” he said. “From the NEP [National Expenditure Program] to the General Appropriations bill, to the Senate third reading version, to the bicameral conference, until it is signed by the President.”

Only the spending plan and final General Appropriations Act are published online. Mr. Gatchalian said he also intends to introduce a feedback mechanism to allow public scrutiny throughout the process.

To institutionalize the proposed transparency measures, the senator said he would file a concurrent resolution that would require the cooperation of the House of Representatives.

Mr. Gatchalian said the Senate would push to increase education spending in the 2026 national budget.

“We will prioritize education in the 2026 budget; this will be an education budget. We will push education to exceed 4% of our GDP (gross domestic product),” he added.

The 2025 General Appropriations Act earmarked P1.055 trillion for the education sector, but critics argued it fell short of giving education the highest priority, as mandated by the Constitution.

The Development Budget Coordination Committee has proposed a P6.793-trillion budget, 7.4% higher than this year’s allocation and equivalent to 22% of GDP. The House of Representatives is expected to start the budget process this month, once the Executive branch submits its proposed national spending plan. — Kenneth Christiane L. Basilio and Adrian H. Halili

Marcos heads to India to boost trade, investment and economic diversification

PRESIDENT Ferdinand R. Marcos, Jr., accompanied by First Lady Liza Araneta-Marcos, left from Villamor Air Base in Pasay City on Aug. 4 for a state visit to India. — PHILIPPINE STAR/ RYAN BALDEMOR

By Chloe Mari A. Hufana, Reporter

PRESIDENT Ferdinand R. Marcos, Jr. Left for India on Monday for a state visit aimed at strengthening economic ties with the world’s fourth-largest economy, as the Philippines looks to deepen partnerships beyond its traditional allies.

Speaking at Villamor Air Base in Pasay City before his departure, he underscored the growing opportunities for cooperation with India, particularly in areas such as information technology, pharmaceuticals, agriculture and infrastructure.

“There is much potential for cooperation with India that will mutually benefit our peoples,” he said, according to a transcript from the Presidential Communications Office. “We intend to explore these by charting a plan of cooperation across a broad spectrum of shared interests: from defense to trade, investment, health, pharmaceuticals, connectivity, agriculture, tourism, and many other areas.”

India remains one of the Philippines’ most significant trading partners, with bilateral trade reaching $3.53 billion in fiscal year 2023–2024, up from $3.05 billion the year before, based on data from the Indian Embassy in Manila.

India exports engineering goods, auto parts, electronics, petroleum, steel, medicines, chemicals, rice, and meat to the Philippines. In turn, the Philippines exports electrical machinery, semiconductors, copper, lead, plastics, precious stones and animal feed.

The Philippines also imports about 20% of India’s pharmaceutical exports to Southeast Asia, making it a key partner in the region’s healthcare supply chain.

Mr. Marcos is accompanied by top Cabinet officials and a business delegation, who are set to hold meetings in New Delhi and Bangalore, India’s technology hub. The visit seeks to attract Indian investments, especially in the information technology and business process management and healthcare sectors.

He said the trip is part of the country’s broader effort to position itself as a regional hub for digital services and advanced manufacturing. “I want this visit to bring concrete benefits to the people, such as more affordable medicine and greater connectivity and food security,” Mr. Marcos said.

The state visit comes amid the 75th anniversary of diplomatic relations between the Philippines and India. In June, the Philippines started granting visa-free entry to Indian nationals, which is expected to boost tourism and business travel and further strengthen bilateral ties.

Mr. Marcos cited the importance of expanding cooperation with India, citing its growing role in global supply chains and its strategic significance in the Indo-Pacific region. “It is incumbent upon us, now more than ever, to maximize the opportunities in trade and investment with the world’s fourth-largest economy,” he added.

Foreign policy experts say the President’s visit reflects a broader shift in the Philippines’ external relations strategy.

Josue Raphael J. Cortez, a diplomacy lecturer at De La Salle-College of St. Benilde, said the trip “reflects a more dynamic and adaptive Philippine foreign policy” as Manila seeks to engage with countries outside its traditional alliances.

This approach aligns with the Association of Southeast Asian Nations’ (ASEAN) broader strategy of navigating global uncertainties by maximizing opportunities within the Global South,” he said in a message via Facebook Messenger.

He added that shared concerns over maritime tensions and economic challenges are driving closer ties between the Philippines and India.

“With a looming economic tension that can debilitate our respective economies, it is no surprise that the Philippines is becoming keener to working and expanding its ties with countries that share the same sentiments,” he said.

He also cited India’s potential as a growing source of tourism to the Philippines, saying this could play a crucial role in boosting the Philippine economy.