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Gov’t to tackle CARS funding gap

REUTERS

THE Department of Budget and Management (DBM) said it will meet with the Department of Trade and Industry (DTI) to address the funding gap for the government’s major automotive incentive programs, which could derail benefits for carmakers operating in the Philippines.

Speaking in a Palace briefing, Budget Secretary Rolando U. Toledo will address the funding shortfall for the stripped allocations for the Comprehensive Automotive Resurgence Strategy (CARS) and the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) under the 2026 national budget.

“We’ll be having our meeting tomorrow with the DTI to look at how we can settle this account as far as our party, which is the Toyota and the Mitsubishi,” he said on Tuesday.

President Ferdinand R. Marcos, Jr. recently vetoed unprogrammed appropriations worth P92.5 billion, including P4.32 billion in fiscal support for the CARS program and P250 million for the RACE program.

The CARS program offers automakers incentives to produce 200,000 mass market units over six years in the form of tax payment certificates (TPCs), which can be applied to offset participants’ tax and duty liabilities.

Dapat ma-issue po iyong TPC na tinatawag bago sila magbayad. But at this time, it has only been earned; na-earn pa lang nila pero hindi pa naisyu iyong TPC,” he said.

(The TPC should be issued before they make payment. But at this time, it has only been earned — they’ve earned it, but the TPC has not yet been issued.)

The DBM will issue the appropriate resolutions or responses to the concerns related to the CARS program, Mr. Toledo said.

At the same time, the DBM chief said the agency plans to further reduce unprogrammed funds in 2027, after setting them at P150 billion this year. The absolute amount was the lowest since the 2019 budget.

“Most likely yes, we will look at that unprogrammed appropriation, which should probably be lower than they are now,” Mr. Toledo said, when asked if the agency would enforce the 5% cap on such allocations proposed by his predecessor, Amenah F. Pangandaman.

In the 2025 General Appropriations Act, the P363.42-billion unprogrammed funds were equivalent to 5.7% of the budget.

Mr. Toledo also defended the use of unprogrammed appropriations, saying they provide funding for foreign-assisted projects that lack perfected loans or contracts before the cutoff date.

He warned that otherwise the rollout of foreign-assisted projects could be delayed.

He also noted that while Mr. Marcos has no direct order on the share of unprogrammed funds in the budget, the economic managers and the Public Financial Management follow the cap of at least 5%.

In the same briefing, Mr. Toledo said the government has allotted nearly P40 billion for the National Disaster Risk and Reduction Management Fund in 2026.

“(Of the) P39.82-billion National Disaster Risk Reduction and Management Fund (NDRRMF) for 2026, P15.33 billion will be directly allocated for the rehabilitation and construction projects of local government units,” he said.

Comelec doubts BARMM March polls

@BANGSAMOROGOVT

THE Commission on Elections (Comelec) cast doubts on Tuesday over whether the Philippines can realistically hold the first-ever Bangsamoro parliamentary elections by March 30, citing unresolved legal questions and tightening operational timelines linked to districting rules and pending legislation.

Comelec Chairman George Erwin M. Garcia told reporters over Viber that the poll body was “confronted with strong legal and operational issues” affecting the feasibility of the scheduled elections, even as it welcomed the Bangsamoro Parliament’s recent passage of a long-delayed electoral measure.

“We are now confronted with strong legal and operational issues as to whether the conduct of the first Bangsamoro parliamentary election is still feasible by March 30,” Mr. Garcia said.

“Since there is no law yet fixing the date of the election, at this point, the same is still a question mark.”

Mr. Garcia said that Comelec had earlier fixed March 30 as the election date pursuant to existing mandates, but the newly passed Bangsamoro districting law — once signed and made effective — could collide directly with that prohibition.

“The Supreme Court clearly emphasized that there should be no redistricting 120 days before the election. Since as mandated by the decision, we fixed the date of election on March 30, 2026, this will now run contrary to the prohibition mentioned and the provision of the law,” Mr. Garcia said.

Asked directly whether the election in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) could be postponed again, Mr. Garcia said it was too early to give a definitive answer.

“We are not yet prepared to answer that question this early,” he said. — Erika Mae P. Sinaking

P106-M illicit cigarettes seized

PHILIPPINE STAR/ROEL PAREÑO

THE Bureau of Customs (BoC) seized about P105.58 million worth of illicit cigarettes in Bataan, with shipments traced to China, Vietnam, and South Korea.

In a statement on Tuesday, the BoC announced the confiscation of P105.58 million worth of smuggled cigarettes in Barangay Santa Isabel, Dinalupihan, Bataan, following a compound inspection backed by a letter of authority.

It found 12 motor vehicles carrying 1,030 master cases of tobacco products bearing brands such as Modern, RGD, Nise Baisha, HP, Power, Carnival, Playboy, and President.

“This successful operation demonstrates our relentless drive to combat smuggling and protect government revenue,” Customs Commissioner Ariel F. Nepomuceno said.

Smuggled cigarettes deprive the government of potential import duties for Customs and excise taxes collected by the Bureau of Internal Revenue.

This comes as the BoC works to meet a higher revenue goal of P1.0138 trillion in 2026, after it fell short of its P958.7-billion target in 2025.

It collected only P934.4 billion in revenues for the full year 2025 amid a rice import ban and weak import volumes.

“Through collaboration and cooperation among government agencies, we can work together to solve this problem and ensure that those who attempt to circumvent our laws are held accountable,” he added.

The BoC said an initial investigation showed that the illicit cigarettes were intended for local distribution in Regions II (Cagayan Valley) and III (Central Luzon).

Customs added that it has stepped up its crackdown on illicit trade, apprehending suspected long-standing smuggling syndicates and posting record tobacco seizures, through its Customs Intelligence and Investigation Service and Enforcement and Security Service. — Aubrey Rose A. Inosante

Gov’t to continue asset recovery despite possible ICI closure

GOVERNMENT asset recovery efforts will remain operational despite uncertainty over the possible closure of the Independent Commission for Infrastructure (ICI), officials said on Tuesday, as the ICI-Technical Working Group (TWG) resumed its meetings.

ICI Special Adviser and lead investigator Rodolfo S. Azurin, Jr. said the TWG is expected to “survive” regardless of the future structure of the ICI, as inter-agency coordination will remain critical, particularly when cases are referred to the Office of the Ombudsman.

“I think so. Definitely. Because if you look at it, with or without the ICI, when a case is referred to the Ombudsman, it’s like a switch, like a trigger,” Mr. Azurin told a press briefing.

“For the government agencies assisting the ICI, we advise everyone to keep working so that we can deliver the results expected by the public, including the recovered assets that may form part of our investigations,” he added.

Chris Noel A. Bendijo, deputy chief of staff at the Bureau of Customs (BoC), added that the resignation of two commissioners has not affected TWG operations. He credited the systematic and well-defined framework under the chairmanship of Cybercrime Investigation and Coordinating Center Undersecretary Renato “Aboy” A. Paraiso, for ensuring asset recovery work remains “ongoing and functional.”

“Each agency clearly defines its role in asset recovery. Even in the absence of two commissioners at ICI, the work of TWG continues,” Mr. Bendijo said. He also noted that memoranda of agreement among agencies are being finalized, alongside the development of a centralized database and framework agreement to prevent duplication and resolve jurisdictional conflicts.

Mr. Bendijo said the Anti-Money Laundering Council (AMLC) has so far frozen P21.2 billion in assets — including bank accounts, e-wallets, insurance policies, motor vehicles, and air assets — linked to the personalities involved in the ongoing flood control investigation.

“To be very clear with the figures, we will create a master list of these assets, including those sold at auction and those subject to forfeiture, such as those currently held by the ICI,” he explained.

Currently, eight vehicles are in the custody of the ICI compound allegedly linked to former lawmaker Elizaldy S. Co. These seized vehicles are also part of asset recovery and ongoing investigations, according to Mr. Azurin.

“Through this detailed search, we may be able to determine whether items were misclassified, misdeclared, or if different import entries were used with varying declarations,” Mr. Bendijo added. “Again that will be determined, that’s ongoing work for now.”

The meeting on Tuesday was attended by representatives from the AMLC, Armed Forces of the Philippines, BoC, Bureau of Immigration, Bureau of Internal Revenue, Department of Justice, Department of Trade and Industry, Department of Public Works and Highways (DPWH), Office of the Ombudsman, and the Philippine National Police — Criminal Investigation and Detection Group, among others.

In a statement, the ICI said the agencies also discussed the development of the Asset Recovery Coordination and Management Dashboard System, a platform designed to consolidate information on assets subject to recovery, focusing on properties owned by individuals and entities with pending court cases, as well as those referred by the ICI and DPWH.

Agencies with regulatory or supervisory authority over monetary, real estate, and movable assets will be integrated into the dashboard to ensure alignment on frozen or recovered assets. — Erika Mae P. Sinaking

Former Bulacan district engineer denies recanting claims in flood control probe

FORMER Bulacan 1st District Engineering Office Engineer Henry C. Alcantara has categorically denied claims that he recanted prior statements made during Senate Blue Ribbon Committee hearings, his legal counsel confirmed on Tuesday.

In a statement issued by Atty. Emil Karlo L. Joven of ELJ Law Office, Mr. Alcantara’s legal counsel described recent reports circulating on social media and some news outlets as “categorically false and misleading.”

The statement, forwarded to reporters, maintained that Mr. Alcantara remains fully committed to cooperating with the Department of Justice (DoJ) as part of his participation in the Witness Protection, Security and Benefit Program. It added that his participation follows a Memorandum of Agreement with the DoJ, which serves as a prerequisite for regular admission into the program.

“In short, Engr. Alcantara is not recanting his prior statements,” Mr. Joven said. The lawyer further stressed that evaluation of Mr. Alcantara’s statements, alongside those of other parties in related cases, is a matter solely for the state prosecutors, in accordance with law and procedure.

“The general public must remain vigilant and should obtain information only from verified, identifiable, and reliable sources. Any information coming from sources other than the Department of Justice or from the undersigned should be treated with caution for potential inaccuracy,” he added.

Mr. Alcantara was also spotted at the DoJ on Tuesday for matters relating to the witness protection program, according to Justice department spokesman Raphael Niccolo L. Martinez. — Erika Mae P. Sinaking

PHL population could reach 123.96 million by 2035

PHILIPPINE STAR/RYAN BALDEMOR

THE Philippine population is projected to reach 123.96 million by 2035, the Philippine Statistics Authority (PSA) said on Tuesday.

With an average annual growth of 0.9%, the country’s total population is expected to increase by 14.76 million in 2035 from 109.20 million total population registered in 2020, according to the PSA’s 2020 Census-Based Population Projections.

The report highlights data in the 2020 Census-Based Population Projections at the regional, provincial, highly urbanized city and city/municipality levels.

These projections were prepared by the local statistics agency in partnership with the Inter-Agency Working Group on Population Projections, with technical assistance from the United Nations Population Fund Philippines.

Based on the report, the male population will be about 62.64 million by 2035, accounting for 50.5% of the total projected population.

The female population is expected to reach 61.32 million, or 49.5% of the total population.

Calabarzon is projected to be the most populous region with 19.07 million estimated population. The National Capital Region followed with 14.49 million and Central Luzon with 14.02 million.

The Cordillera Administrative Region is expected to be the least populous region with a projected population of 2.13 million.

By 2035, 12 regions are anticipated to reach the five-million mark, increasing from nine regions as of the 2020 mid-year population. — Isa Jane D. Acabal

GSIS turns over P81.34 million in fire insurance claims to Manila

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THE GOVERNMENT Service Insurance System (GSIS) has paid P81.34 million in fire loss insurance claims to the City Government of Manila.

The amount will cover the damages from the Pritil Market fire in Tondo in April 2023, which destroyed around 584 market stalls and affected the livelihoods of hundreds of vendors, the state insurer said in a statement on Tuesday.

GSIS Core Business Sector Executive Vice President Jason C. Teng, representing GSIS President and General Manager Jose Arnulfo “Wick” A. Veloso, turned over the check to Manila City Mayor Francisco “Isko” M. Domagoso on Dec. 23, 2025.

The state insurer said that the Manila City Government has also renewed fire insurance for all its hospitals, public schools, and buildings to ensure financial coverage in case of emergencies.

GSIS booked a net income of P112 billion in the first nine months of 2025, it previously said. — Aaron Michael C. Sy

Bill allows gov’t employees to work from home

A WOMAN in a remote meeting via videoconference works from her living room. — REUTERS

A BILL seeking to allow government employees to work from home (WFH) and grant an allowance to remote workers was filed at the House of Representatives.

House Bill No. 6802 would expand the current telecommuting law to cover public sector employees, permitting them to work from alternative sites and provide all WFH workers a P1,000 nontaxable allowance while in such a setup.

“The current legal framework remains limited in scope and lacks provisions that address the realities of a more hybrid, technology-driven workforce,” Negros Occidental Rep. Javier Miguel L. Benitez said in the measure’s explanatory note.

The Philippines outperformed nine other AsiaPacific cities in flexible workspace demand in 2025, according to a global advisory firm The Instant Group report, underscoring the preference of Filipino workers for WFH and flexible arrangements. — Kenneth Christiane L. Basilio

Bill reconfiguring BARMM parliamentary districts approved

COTABATO CITY — The Bangsamoro Parliament approved before dawn on Tuesday a measure reconfiguring the 32 parliamentary districts in the autonomous region, a requisite of its first ever elections since its creation in 2019.

The first ever electoral exercise in the Bangsamoro region was deferred until March 2026, after the Supreme Court declared unconstitutional the two related enabling measures meant to reconfigure the parliamentary districts in the autonomous region.

Sulu had seven parliamentary districts while still one of the six provinces in the Bangsamoro region, now covering only Maguindanao del Norte, Maguindanao del Sur, Lanao del Sur, Basilan and Tawi-Tawi provinces and the cities of Lamitan, Marawi and Cotabato.

Jet L. Lim, floor leader and spokesperson of the 80-seat parliament in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), told reporters on Tuesday that regional lawmakers made sure that the Parliament Bill 415 is “constitutionally sound” and attuned to the Supreme Court’s guidance on the setting up of the parliamentary districts in the region after having taken Sulu out of BARMM.

Parliament Bill 415, which regional lawmakers approved on third and final reading, during an extensive session that culminated after midnight on Monday, allocated nine parliamentary districts in Lanao del Sur, five each in Maguindanao del Norte and Maguindanao del Sur, and four each in Basilan and Tawi-Tawi.

It also established three parliamentary districts in Cotabato City and two in the Bangsamoro Special Geographic Area (SGA) in Cotabato province.

The SGA covers 63 barangays that originally belonged to different towns in Cotabato province, whose residents voted in favor of the inclusion of their ancestral domains in the contiguous areas into the core territory of the Bangsamoro region during a plebiscite in 2019.

Members of the BARMM parliament, among them Naguib G. Sinarimbo, former regional local government minister, said they made sure that the Parliament Bill 451 legitimizes the conduct of the first regional elections in the autonomous region, slated in March this year.

“This bill was crafted to directly address the legal issues raised by the Supreme Court pertaining to the setting up of the parliamentary districts in the Bangsamoro region,” Mr. Sinarimbo said.

Mr. Sinarimbo said the measure ensures the conduct of BARMM’s first parliamentary elections within the High Tribunal’s prescribed timeline.

All 80 members of the BARMM parliament are functioning as presidential appointees, without electoral mandate, since the region’s creation in 2019. — John Felix M. Unson

Infra spending, consumption expected to stay weak — HSBC

Workers are seen in a construction site in Manila. — PHILIPPINE STAR/RUSSELL PALMA

THE ECONOMY may struggle to reach its potential this year as the flood control corruption scandal continues to dampen infrastructure spending, with corresponding spillover effects on consumption, HSBC Global Investment Research said.

HSBC Global said gross domestic product (GDP) growth will likely come in at 4.7% in 2025 with the fourth-quarter reading possibly ending at or under 4% with “risks tilted to the downside.”

“(I)f public infrastructure spending continues to dip by 40% in November and December, there is a risk that growth can go below 4% for the fourth quarter of 2025,” HSBC economist for ASEAN Aris D. Dacanay said at a briefing on Tuesday in Taguig City.

HSBC’s projections fall below the Department of Economy, Planning, and Development’s 4.8%-5% for the year.

The infrastructure corruption scandal that cast a cloud over Public Works officials, legislators, and private contractors triggered a review of public works spending, with knock-on effects on household consumption, dragging down economic growth to an over four-year low of 4% in the third quarter.

In October, infrastructure spending dropped for a fourth straight month, falling 40.1% year on year to P65.9 billion. It also fell 16.2% from September.

Household consumption growth slowed to 4.1% in the three months to September from 5.3% in the second quarter and 5.2% a year earlier, the Philippine Statistics Authority (PSA) reported.

The PSA is set to release fourth-quarter GDP data on Jan. 29. 

Mr. Dacanay noted the continued slowdown may cause GDP growth to settle at 5.2% by year’s end, towards the lower end of the government’s 5%-6% target band.

“Consumption will likely be slow in 2026, even when wages are increasing, because families, households in the Philippines usually tend to rein in their spending to prepare for the uncertain times ahead, whatever may come,” he said.

He said Bangko Sentral ng Pilipinas (BSP) expectations that the economy will begin to recover by the latter half of 2026 will materialize only if the government implements institutional reforms. 

The recovery will happen “if we’re able to push through with the necessary institutional reforms,” he said. “But at the status quo… I don’t think so.”

Nevertheless, the BSP may have enough leeway to further reduce key borrowing costs this year to spur demand, Mr. Dacanay said.

HSBC sees scope for a sixth straight 25 basis-point (bp) cut from the Monetary Board within the first quarter, even if the Federal Reserve decides to hold its rates steady.

“With consumption strong, growth strong, unemployment not really so bad but inflation becoming sticky, we’re not forecasting the Fed to cut rates further… Even if the Fed doesn’t cut rates, we do think the BSP will do the unprecedented and narrow its differential with the Fed by 50 basis points,” he said.

The Monetary Board capped off 2025 with a fifth consecutive 25-bp reduction at its December meeting, bringing the benchmark policy rate to an over three-year low of 4.5%. This brought its total cuts to 200 bps since it began its easing cycle in August 2024.

The central bank has noted that the current easing cycle is nearing its end, but BSP Governor Eli M. Remolona, Jr. still left the door open for another 25-bp cut at the next meeting on Feb. 19.

However, he noted a sixth straight cut may be “unlikely” considering current economic data and as the current policy rate is approaching their neutral rate. — Katherine K. Chan

Farmers yet to feel benefits of improved agricultural trade balance, analysts say

A Filipino worker inspects coconuts at a plantation in Quezon province in this picture taken on Aug. 11, 2004. — REUTERS

By Vonn Andrei E. Villamiel

THE Philippines’ agricultural trade deficit narrowed to a 21-month low in November, driven by a surge in exports and a pullback in imports, but analysts said the improvements have yet to trickle down to farmers, who continue to grapple with persistently low farmgate prices.

The Philippine Statistics Authority, citing preliminary data, said the trade deficit in agricultural goods shrank 20% year on year in November to $806.34 million. Agricultural exports rose 18.9% to $806.18 million.

Imports of farm commodities dipped 4.4% year on year to a five-month low of $1.61 billion. The decline was driven largely by a 51.5% drop in cereal imports, following a four-month rice import ban that began in September.

For the first 11 months, the agricultural trade deficit totaled $10.3 billion, narrowing about 4.6% from a year earlier.

Agricultural exports in the year to date amounted to $8.33 billion, up 18.8%, exceeding the full-year 2024 total of $7.75 billion.

Despite the narrower deficit and stronger export performance, an analyst said there is little reason to celebrate, particularly from the perspective of producers.

“There is an expected slight decrease in our agriculture trade deficit last year, given the unprecedented volume of imports of rice, pork, and chicken in 2024,” Jayson H. Cainglet, executive director of the Samahang Industriya ng Agrikultura, told BusinessWorld via Viber.

In 2024, the Philippines imported a record 4.8 million metric tons (MMT) of rice, up from around 3.6 MMT in 2023, as traders accelerated purchases amid concerns over weaker harvests caused by El Niño and La Niña.

The Bureau of Animal Industry also reported that the Philippines imported a record 1.45 MMT of meat in 2024, up 20.43%, driven by higher pork and chicken meat purchases.

“The narrower deficit can be attributed to a higher base in 2024, and its impact was felt by producers last year through the huge drop in farmgate prices,” Mr. Cainglet said.

He added that improvement in the trade balance should be felt by domestic producers through strong farmgate prices, especially for commodities that directly compete with imports.

“From the producers’ perspective, the tangible measurement of our trade deficit in agriculture is how traders and trader-importers are setting prices at the farmgate for import-favored commodities like rice, pork, chicken and vegetables,” he said.

Mr. Cainglet said that with cheaper imports and a lowered tariff regime, however, farmgate prices of major agricultural commodities have been pushed close to, or even lower than, production costs.

Danilo V. Fausto, president of the Philippine Chamber of Agriculture and Food, Inc., also said gains from improved trade balances have yet to be felt at the farm level.

Improvements in farmgate prices and farmer incomes are not yet apparent, he told BusinessWorld via Viber.

Still, Mr. Fausto said a healthier trade balance could eventually support demand and productivity, especially if accompanied by stronger support for farmers.

“The improved trade balance will steer up demand and productivity. Therefore, there is a need to increase support for agricultural export champions,” he said.

Mr. Fausto added that reforms should focus on strengthening backward linkages, including more efficient access to raw materials and improved logistics, to bring down production costs.

NIA launches Swiss challenge for First Gen’s 120-MW Nueva Ecija pumped-storage project

FIRSTGEN.COM.PH

THE National Irrigation Administration (NIA) is inviting counter-proposals for a Swiss challenge to the 120-megawatt (MW) Aya Pumped-Storage Project at the Pantabangan Dam complex in Nueva Ecija, whose original proponent is First Gen Hydro Power Corp.

The Swiss challenge invites bidders to improve on the terms proposed for the unsolicited development, operation, and maintenance project, with First Gen Hydro holding the option to match any counter-proposals.

First Gen Hydro, a unit of Lopez-controlled First Gen Corp., signed a memorandum of understanding with the NIA in 2019 to develop the project.

In the bid notice, the NIA said prospective challengers can purchase a complete set of tender documents from Jan. 13 to 19 for a non-refundable fee of P75,000.

Interested parties must indicate their intent to challenge by Jan. 27, with a pre-challenge conference scheduled on Jan. 31.

The counter-proposals are due on Feb. 3, during which the proposals will also be opened and examined for completeness. — Vonn Andrei E. Villamiel