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PSEi slips on profit taking, weak growth outlook

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THE MAIN INDEX inched lower on Tuesday due to profit taking and as expectations that Philippine economic growth would miss the government’s target this year affected market sentiment.

The benchmark Philippine Stock Exchange index (PSEi) dropped by 0.12% or 8.68 points to end at 6,734.21 on Monday, while the broader all shares index rose by 0.05% or 2.17 points to 3,791.77.

“The local market declined this Tuesday as investors quickly booked profits from [Monday’s] climb, reflecting their cautious stance amid lingering uncertainties,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

“Investors also digested the ASEAN+3 Macroeconomic Research Office’s (AMRO) downward revision of its Philippine economic growth forecast for 2024,” he added.

AMRO in its annual consultation report slashed its Philippine gross domestic product growth projection to 5.8% this year from its 6.1% estimate in October due to slower consumption.

This would fall below the government’s revised 6-6.5% growth target this year.

“Philippine and US equities delivered mixed results as investors await more data that would confirm that the world economy continues to show signs of recovery,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“US manufacturing improved in November, with the purchasing managers index exceeding expectations, though it remained in contraction ahead of Friday’s jobs report. Investors now await Friday’s November jobs report,” he added.

On Tuesday, Wall Street stocks were mixed, Reuters reported. The Dow Jones Industrial Average fell 0.29% to 44,782; the S&P 500 rose 0.24% to 6,047.15; and the Nasdaq Composite rose about 1% to 19,403.95.

Data showed US manufacturing contracted at a moderate pace in November, with orders growing for the first time in eight months and factories facing significantly lower prices for inputs. More economic data is expected this week, including the key monthly jobs report on Friday.

Back home, majority of sectoral indices ended lower on Tuesday. Holding firms went down by 0.56% or 32.76 points to 5,754.30; financials retreated by 0.15% or 3.52 points to 2,254.74; industrials dropped by 0.03% or 2.97 points to 9,220.99; and property declined by 0.03% or 0.99 point to 2,516.59.

Meanwhile, services went up by 0.53% or 11.17 points to 2,105.86; and mining and oil climbed by 0.03% or 2.27 points to 7,488.87.

Value turnover rose to P5.77 billion on Tuesday with 492.73 million issues traded from the P4.65 billion with 386.31 million shares exchanged on Monday.

Advancers outnumbered decliners, 103 versus 90, while 48 names were unchanged.

Net foreign selling increased to P389.94 million on Tuesday from P77.68 million on Monday. — Revin Mikhael D. Ochave with Reuters

House gives 2nd reading approval to zero-tariff bill for electric vehicles

REUTERS

THE House of Representatives approved on second reading on Tuesday a bill seeking to exempt imported electric vehicles (EVs) from tariffs.

House Bill No. 10960 will impose zero tariffs on imported two-, three- or four-wheeled EVs and their charging equipment between 2025 and 2030, and calls for a review of the Strategic Investment Priority Plan to include incentives for importing EV manufacturing equipment.

“This proposed legislation represents a critical step towards a sustainable future. It will boost the EV market, generate much-needed jobs, and help the Philippines transition to a greener economy, aligning us with global climate goals,” Party-List Rep. Margarita Ignacia B. Nograles, who sponsored the bill out to the plenary, said.

President Ferdinand R. Marcos, Jr. issued last year an executive order removing tariffs on EVs until 2028. It was subsequently expanded in May by the National Economic and Development Authority Board to include electric motorcycles, tricycles, and hybrid EVs.

The Department of Energy (DoE) has prepared a roadmap for wider EV adoption in the country to help ensure its transition towards a “sustainable… and… electrified transport sector.”

A DoE official said in September that a proposed EV incentives scheme, which would include fiscal and non-fiscal consumer incentives such as rebates and tax credits, is in the works and will likely be endorsed to Mr. Marcos by year’s end.

The Philippines aims to reduce greenhouse gas emissions by 75% by 2030, in line with commitments made under the 2021 Paris Agreement.

Analysts said the tariff exemption on imported EVs would reduce retail prices, benefiting consumers, but warned that the government should provide support to producers as they may lose out to imported competition, hampering the development of a domestic EV manufacturing industry, they added.

“There is nothing wrong with exempting foreign EVs from tariffs, but this only benefits consumers in the short term,” Leonardo A. Lanzona, an economics professor at the Ateneo de Manila, said via Messenger chat before the bill’s approval.

“The government should create a process of learning by assisting local manufacturers in creating unique brands,” he said. As such, the government should offer incentives for training and encourage foreign institutions to introduce efficient practices to manufacturers, he added.

“Without complementary industrial support and protection measures for Filipino firms, the direction is to create dependency on imports from the world’s major EV exporters,” Jose Enrique A. Africa, executive director at think-tank IBON Foundation, said via Viber.

He called for subsidies and incentives for EV manufacturers to help them establish assembly plants, he added, citing the need to develop expertise in manufacturing technology.

The government should also look at supporting efforts to construct EV charging facilities to help boost adoption, Terry L. Ridon, a public investment analyst and convener of think-tank InfraWatch Ph, said.

“Massive EV adoption may be delayed by limited public charging stations in metropolitan areas and along national highway routes for longer journeys,” he said via Facebook chat before the bill’s approval.

“Without adequate public charging facilities, EV adoption will be limited to users living in houses and townhouses with home charging units, and those working in office buildings with public charging facilities,” he added. — Kenneth Christiane L. Basilio

Peso hits near one-month high on Fed cut bets

IIIJAOYINGIII-PIXABAY

THE PESO appreciated to a near one-month high against the dollar on Tuesday after a US Federal Reserve official hinted at a rate cut this month.

The local unit closed at P58.58 per dollar on Tuesday, rising by 7.5 centavos from its P58.655 finish on Monday, Bankers Association of the Philippines data showed.

This was the peso’s best finish in nearly a month or since it closed at P58.26 per dollar on Nov. 8.

The peso opened Tuesday’s session slightly weaker at P58.69 against the dollar. Its intraday best was at P58.57, while its worst showing was at P58.705 versus the greenback.

Dollars exchanged inched down to $1.32 billion on Tuesday from $1.36 billion on Monday.

“The peso appreciated after dovish comments from Fed official Waller that the Fed has yet to deliver more rate cuts before reaching its neutral policy rate,” a trader said in an e-mail.

For Wednesday, the trader said the peso could appreciate further on expectations of softer US data. The trader sees the peso moving between P58.45 and P58.70 per dollar.

Federal Reserve Governor Christopher Waller, whose views are often a bellwether for US monetary policy, said on Monday that with inflation still forecast to fall to 2% he is inclined “at present” to support another interest rate cut later this month, Reuters reported.

“Policy is still restrictive enough that an additional cut at our next meeting will not dramatically change the stance of monetary policy and allow ample scope to later slow the pace of rate cuts, if needed, to maintain progress toward our inflation target,” Mr. Waller told a central bank symposium organized by the American Institute for Economic Research.

The Fed began reducing interest rates in September with a half-point reduction, following that with a quarter-point cut in November.

A further quarter-point cut in December has been expected, but recent inflation data raised concern that progress may have stalled. One key measure, the personal consumption expenditures price index stripped of food and energy costs, has been mired in a range from 2.6% to 2.8% since May, well above the Fed’s 2% target. — AMCS with Reuters

‘Green lane’ bill seen making EO reforms more permanent

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THE Board of Investments (BoI) said the bill that will turn the “green lane” scheme for expediting approvals of strategic projects into a law will give the reforms continuity across administrations.

Ernesto C. Delos Reyes, director of the BoI Investment Assistance Service and One-Stop Action Center for Strategic Investments (OSACSI), said the agency welcomes the unanimous approval on Monday by the House Ways and Means Committee of House Bill (HB) 8039.

HB 8039, or the Green Lanes for Strategic Investments Act, seeks to institutionalize Executive Order (EO) No. 18, also known as “An Order Constituting Green Lanes for Strategic Investments.”

“The formal codification of Executive Order 18 into law will establish a framework aimed at ensuring that highly desirable projects can be effectively implemented without delay,” Mr. Delos Reyes said.

“This legislative action will enhance and transform the process of investment assistance, making it more responsive to current needs and opportunities,” he added.

Written by Representative Jose Manuel F. Alba, the bill outlines the streamlining of the project permit process to unlock strategic investments.

“The law also aims to promote transparency in transactions with the government and reduce red tape,” Mr. Alba said.

According to Mr. Delos Reyes, the OSACSI has certified 167 projects for green lane treatment, valued at P4.457 trillion.

Of the total, P1.638 billion represents foreign investments.

Renewable energy (RE) projects accounted for 136 of all green lane endorsements with a total project cost of P4.064 trillion.

The government allowed full foreign ownership in RE, which previously had been capped at 40%. — Justine Irish D. Tabile

ADB approves $2.85-M package to support PHL energy transition

INSUNG YOON-UNSPLASH

THE Asian Development Bank (ADB) has approved a combined $2.85-million package for the Philippines to address climate change and expand access to renewable energy.

The package was approved on Nov. 28, the bank said on its website on Tuesday.

The Energy Transition Support Program package includes a $1.85 million grant from the ADB’s Technical Assistance Special Fund (TASF-other sources) and a $1 million grant from the Clean Energy Fund under the Clean Energy Financing Partnership Facility.

“The technical assistance (TA) will prepare sovereign-financed energy projects and programs of ADB in the Philippines, conduct due diligence for proposed loans, and help enhance project and program management capacities of the executing and implementing agencies,” the ADB said in a loan document.

It will help implement key priorities of the ADB’s country partnership strategy for the Philippines, 2024-2029, and build up the energy project pipeline to help the ADB achieve its climate finance target of $100 billion by 2030.

These include tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability.

In addition, the package will help establish the Geothermal Resource De-risking Facility to stimulate the second wave of geothermal investment in the Philippines.

The facility will supply contingent convertibles up to 50% of the total cost of drilling to reduce investment risk at the geothermal development chain exploration stage.

The Department of Energy will be implementing the geothermal funding set for an ADB loan commitment in 2025.

The package also supports the Offshore Wind Port Development Project, which aims to help the Philippines develop essential infrastructure for offshore wind farms.

The Wind Port project involves preparing feasibility studies and engineering plans to repurpose 10 ports to specialize in servicing offshore wind farms. The proposed project is set to receive an ADB loan commitment in 2027.

The package also supports the National Total Electrification Support Program, whose goal is universal access to electricity in the Philippines by 2028 through investments in distribution, transmission, and renewable energy systems in missionary areas.

Also supported is the Energy Efficiency in Public Buildings Program to facilitate the rollout of energy-efficient lighting, air conditioning, and rooftop solar photovoltaic systems in public buildings.

“The program may potentially be extended to smart metering and electric vehicle charging infrastructure,” according to the loan document. — Aubrey Rose A. Inosante

AI used by 75% of businesses worldwide, Microsoft reports 

REUTERS

ARTIFICIAL INTELLIGENCE (AI) has been adopted by 75% of businesses worldwide, IDC Research, Inc. and Microsoft said in a report.

“AI’s reach is expanding into every corner of the economy, and in the Philippines,” Peter D. Maquera, chief executive officer of Microsoft Philippines, said in a statement on Tuesday in the wake of the release of the IDC X Microsoft Business Opportunity of AI report.

“Generative AI is changing the way Filipino businesses approach their work,” Mr. Maquera added.

Microsoft found separately in its 2024 Work Trend Index that 89% of Filipino leaders believe adopting AI keeps their companies competitive, while 86% of Filipino knowledge workers use AI at work, well above the global average of 75%.

“With AI adoption rising, there is a growing need for local talent equipped to manage and develop AI solutions,” Mr. Maquera said.

Microsoft said Philippine companies are starting to tailor AI solutions to “streamline logistics and optimize other core operations.”

It added that companies in the Philippines deploying AI tools commonly report measurable returns within 13 months.

Businesses turning to AI are realizing returns averaging $3.70 globally for every dollar invested, with finance and media companies in the Philippines reporting returns on the order of $10 per dollar spent.

“AI’s value lies not only in what it can achieve today but in the speed with which businesses are realizing that value,” Mr. Maquera said.

Over the next two years, the application of AI in healthcare, manufacturing, and education is projected to rise, according to Microsoft.

“We look forward to seeing how Filipino organizations will continue to push the boundaries of what’s possible with AI,” Mr. Maquera added. — Almira Louise S. Martinez 

Council to enforce economic sabotage law could convene before end of year

PHILIPPINE STAR/MIGUEL DE GUZMAN

A DEPARTMENT of Agriculture (DA) official said the council that will enforce Republic Act (RA) No. 12022, or the Anti-Agricultural Economic Sabotage Act, could hold its first meeting before year’s end.

Felicisimo F. Madayag, special assistant to the DA assistant secretary for Inspectorate and Enforcement said at a forum that the first meeting will focus on appointing technical experts, organizing the executive committee, and other staffing matters.

The law created the Anti-Agricultural Economic Sabotage Council to oversee the implementation of RA 12022.

The council is composed of representatives from the DA, the departments of Justice, Finance, Interior and Local Government, Transportation, and Trade and Industry, the Anti-Money Laundering Council, and the Philippine Competition Commission. It is chaired by the President.

RA 12022 classifies agricultural smuggling, hoarding, profiteering, and its financing as economic sabotage. It levies fines equivalent to five times the value of any smuggled or hoarded agricultural products, with violators also facing the prospect of life imprisonment.

Mr. Madayag said seized agricultural and fisheries products have been valued at “more than P2 billion” in the year to date. He did not give a more detailed estimate. 

The law also requires the establishment of a daily price index (DPI) to help determine the value of commodities where smuggling and hoarding is alleged.

The DA has released Special Order No. 1804, which created a technical working group to establish guidelines on the compilation of the DPI. — Adrian H. Halili

DBM ‘dashboard’ to track LGU funding

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THE Department of Budget and Management (DBM) said it has introduced a dashboard to improve monitoring of Local Government Support Fund (LGSF) releases.

The LGSF helps local government units (LGUs) implement priority programs, the DBM said in a statement on Tuesday.

“At DBM, we embrace digitalization and transparency. Anyone can use the dashboard which is now up and running on the DBM website. Here, you can monitor our fund releases under LGSF anytime, anywhere, and with ease,” Budget Secretary Amenah F. Pangandaman said.

The dashboard can refine results by region, province, and city/wmunicipality and graphs each region’s share of released support funding, tracking data going back to 2021.

The DBM said the LGSF dashboard will be updated on the 15th of each month. — Aubrey Rose A. Inosante

Senate vows to remain impartial as Duterte faces impeachment moves

VICE-PRESIDENT SARA DUTERTE-CARPIO — PPA POOL/YUMMIE DINGDING

THE PHILIPPINE Senate is prepared to act as an impartial court ahead of a potential impeachment trial against Vice-President Sara Z. Duterte-Carpio, the Senate President said on Tuesday, as more groups seek the ouster of the country’s second highest ranking official.

“It is crucial that members of the Senate approach it with the impartiality and objectivity demanded of us,” Senate President Francis G. Escudero said in a statement.

“Experience has shown that impeachment proceedings are inherently divisive and have the potential to polarize the government and public.”

The Presidential Palace has denied it had a hand in the filing of the complaint, reiterating President Ferdinand R. Marcos, Jr.’s initial pronouncement against the pursuit of an impeachment case.

Civil groups on Monday filed an impeachment complaint against Ms. Duterte, alleging she committed graft and corruption, bribery, and betrayal of public trust among other crimes. The complaint was endorsed by Party-list Rep. Percival V. Cendaña.

The complainants cited 24 grounds overall, including Ms. Duterte’s alleged misuse of billions of pesos in confidential funds during her term as Davao City mayor and Vice-President, failure to account for government budgets, and refusal to attend hearings in Congress. 

Of the 24 articles in the complaint, nine were under culpable violation of the constitution and graft and corruption, with the complainants citing Ms. Duterte’s failure to account for her confidential funds in 2022 and 2023 at the Office of the Vice-President (OVP) and Department of Education (DepEd), which she headed from June 2022 to June 2024.   

They also cited “rigged” bidding for DepEd equipment and her office’s P15 billion in unutilized funds in 2023.

Ms. Duterte was also accused of bribery and having unexplained wealth, with complainants citing her alleged accumulation of P111 million in personal accounts and hundreds of million more in joint accounts with her father.

They also wrote two articles for betrayal of public trust, accusing Ms. Duterte of abandoning her duties during the onslaught of Super Typhoon Gaemi as she left for Germany, and failing to condemn Chinese aggression in the West Philippine Sea.

The complainants also cited nine articles for high crimes, such as direct involvement in extrajudicial killings and threats made against high-ranking officials.

ANOTHER IMPEACHMENT COMPLAINT
A bloc of minority lawmakers on Tuesday announced they will be endorsing what would be Ms. Duterte’s second impeachment complaint on Wednesday with around 50 representatives from “progressive organizations and concerned citizens” planning to file on the grounds of alleged corruption and misuse of funds.

“Not just the confidential funds, but also the regular funds of the Office of the Vice-President and the Department of Education,” Party-list Rep. Raoul Danniel A. Manuel said in Filipino in an earlier media briefing, citing the complaint’s basis. “Part of it is also her failure to fulfill her responsibility to explain how she used the funds.”

The complaint comes amid the chamber’s ongoing probe into the OVP’s alleged misuse of P612.5 million worth of confidential and intelligence funds in 2022 and 2023.

Under the 1987 Constitution, grounds for impeachment include treason, bribery, graft and corruption, high crimes or betrayal of public trust.

Both impeachment complaints zeroed in on Ms. Duterte’s use of secret funds, which has been the subject of a congressional investigation. She denies any wrongdoing stemming from the probe, saying it’s politically charged and could be laying the groundwork for her ouster.

The House will hear the complaint, requiring one-third of its members, or at least 102 congressmen, to agree with the impeachment rap before the case is elevated to the Senate for trial. The chamber is headed by Speaker Ferdinand Martin G. Romualdez, a cousin of the president.

Mr. Escudero also directed his colleagues in the Senate to avoid making public comments on the allegations against the Vice-President, in line since with the chamber’s rules on impeachment.

“The Senate stands ready to fulfill its constitutional mandate with integrity and impartiality while upholding national interest,” he said.

“The outcome, whether in favor of or against the official involved, should not impede the Senate’s broader mission to serve our countrymen.”

Meanwhile, the Presidential Palace on Tuesday distanced itself from the first impeachment complaint filed against Ms. Duterte.

Questions now center as to whether the complaint will actually help advance efforts to hold the country’s second highest official to account for her alleged misuse of funds at the OVP and DepEd given the one-year bar rule in the post-EDSA charter.

Executive Secretary Lucas P. Bersamin said the impeachment complaint filed in the House of Representatives by several private citizens is clearly the complainants’ independent initiative.”

The endorsement of the complaint is “the prerogative of any member of the House of Representatives,” he added in a statement.

“The Office of the President has nothing to do with it.”

President Ferdinand R. Marcos, Jr. last week confirmed that the text message discouraging Congress from pursuing an impeachment rap against Ms. Duterte was indeed his.

“The President’s earlier statement on the matter is unambiguous,” Mr. Bersamin said.

CAMPAIGN PERIOD
Commenting on the impeachment rap, Manila Rep. Joel R. Chua said lawmakers will be “busy” not just in Congress but also in their respective districts as the 2025 midterm polls approach.

“We know that it’s already the campaign period next year,” he told reporters in Filipino on the sidelines of an event at the presidential palace.

Mr. Chua chairs the House Committee on Good Government and Public Accountability, which is leading inquiries into Ms. Duterte’s alleged fund misuse.

The House leader, meanwhile, said the committee will include in its report the Philippine Statistics Authority’s certification that one of the declared recipients of Ms. Duterte’s confidential funds has no birth, marriage, and death records.

A certain “Mary Grace Piattos” appeared on acknowledgement receipts submitted by Ms. Duterte’s office to state auditors in 2022.

“It appears that the acknowledgement receipt was bogus,” Mr. Chua said in Filipino, adding that the committee will check the identities of other declared recipients.

The committee is seeking the help of the National Bureau of Investigation to verify the signatures in the receipts, he added. — John Victor D. Ordoñez, Kenneth Christiane L. Basilio, and Kyle Aristophere T. Atienza

South Korean military wares, tech transfer to boost PHL defense

PHILIPPINE COAST GUARD PHOTO

By John Victor D. Ordoñez, Reporter

MANILA should push for the acquisition of more South Korean military jets, frigates, and an increase of technology transfer with Seoul to boost the Southeast Asian nation’s defense posture amid tensions with China, according to security experts.

“We hope for the technology transfer from South Korea so that we can build our own offshore patrol vessels which would be beneficial to the Philippine defense industry,” retired Major General and former spokesperson of the Armed Forces of the Philippines Restituto F.  Padilla, Jr. told reporters on the sidelines of a forum on the unification of the Korean Peninsula.

This comes amid growing tensions between the Philippines and China over disputed areas of the South China Sea, including Scarborough Shoal, one of Asia’s most contested features.

China claims almost the entire South China Sea, a conduit for more than $3 trillion of annual ship-borne commerce. The Permanent Court of Arbitration in 2016 said China’s claims had no legal basis, a ruling Beijing rejects.

In October, South Korean President Yoon Suk Yeol met with Philippine President Ferdinand R. Marcos, Jr. and vowed to pursue deeper cooperation between their coast guards.

Both leaders agreed to uphold an international rules-based order, including on safety of navigation in the South China Sea, with Seoul vowing to take part in the modernization program of the Philippine military.

“The thing is, the crucial aspect is to gain the capacity to effectively use them (military equipment) and to have sustainability,” former Philippine Navy Flag Officer in Command Alexander P. Pama told reporters at the same event.

“It has to be in conjunction with whatever strategy we have, and the next thing is our capacity to maintain it.”

The Chinese Coast Guard on Monday said in a statement that it had taken “necessary control measures” against an “illegal gathering” of Philippine vessels in disputed waters of the Iroquois reef in the South China Sea.

This followed the China Coast Guard’s confirmation that it conducted patrols around the Scarborough Shoal, Reuters reported last week.

Reports of an alleged harassment of Filipino fishermen by a Chinese Navy helicopter have also prompted the Philippine Coast Guard to deploy two of its vessels to Rozul Reef, it said on Monday.

At the forum, Jae Woo Choo, a professor of Chinese foreign policy at Kyung Hee University in South Korea, said a multilateral coalition between the Philippines, Japan, the United States is likely to continue flourishing amid China’s growing assertiveness in the waterway.

“We are in the same shoes, we cannot defend our own waters, our own airspace independently and on our own feet,” he said.

“This is where the coalition is called upon and this is where Japan has also shared concern very much.”

The Philippine Senate Committee on Foreign Relations in November moved to endorse Manila’s Reciprocal Access Agreement (RAA) with Tokyo to the chamber’s plenary, as the deal aims to boost interoperability between their troops amid tensions with China in the South China Sea.

On Tuesday’s plenary session, Senator and Foreign Relations Committee Chairperson Maria Imelda R. Marcos sponsored the RAA treaty before the floor, citing the need for the Senate’s concurrence to ensure Manila has a credible defense posture.

Both countries signed the deal in July to ease the entry of equipment and troops for combat training from Japan.

The Philippines has a visiting forces agreement with the US and Australia. Tokyo, which hosts the biggest concentration of US forces abroad, has a similar deal with Australia and Britain, and is negotiating another with France.

“Because after all, what is being defined are rules that are made by the world itself so that there will be order in the world,” Mr. Padilla said.

China and the Philippines have been at loggerheads over confrontations near disputed features in the South China Sea, with Manila accusing China’s coast guard of aggression and Beijing furious over what it calls repeated provocations and territorial incursions.

DMW bats for green jobs for OFWs in Germany, Finland

PHILIPPINE STAR/WALTER BOLLOZOS

THE DEPARTMENT of Migrant Workers (DMW) is enhancing its agreements with various countries to strengthen green jobs, emphasizing sustainability for overseas Filipino workers (OFWs).

In its Overseas Labor Market Situationer report, launched on Tuesday in Makati City, the department said it is working with European nations Germany and Finland to create green jobs for Filipinos.

“This initiative helps expand employment prospects for Filipino workers and extensively aligns with global sustainability efforts by promoting environmentally friendly industries,” it said.

“The DMW is committed to ensuring that the Filipino workforce is equipped with the necessary knowledge and competency to thrive in the green industry, thereby contributing to both the economic development of the Philippines and the environmental goals of Germany,” it added.

It said it is also exploring new opportunities for OFWs in the Finnish market, targeting green jobs and various non-healthcare industries, reflecting the department’s commitment to diversify employment options and promote sustainable development for OFWs.

Apart from the Western nations’ emphasis on green jobs, Asian neighbor Japan is opening its labor market to about 820,000 overseas workers in the next five years, specifically opening for 24,000 taxi drivers, the study said.

Other job opportunities in the archipelago include nursing care, building cleaning management, electronics and industrial machinery, construction, shipbuilding and ship machinery, automobile repair and maintenance, aviation industry, accommodation industry, agriculture, fishery and aquaculture, manufacturing of food and beverages, and food service industry.

“The DMW acknowledges that Japan remains a suitable labor market for Filipinos due to its safety, stability, and straightforward and stringent labor laws and regulations providing more decent working terms and conditions for Filipino workers,” the study said.

DMW Secretary Hans Leo J. Cacdac told reporters on the sidelines of the launch that demand for OFWs stems from countries and employers, who aim to employ quality OFWs. — Chloe Mari A. Hufana

House panel OKs extension of village, youth council officers’ term limits

By Kenneth Christiane L. Basilio, Reporter

A HOUSE of Representatives committee on Tuesday approved a bill extending the term limits of barangay and Sangguniang Kabataan (SK) officials to six years from the current three to insulate local leaders from patronage politics.

Approved by the House local government panel, the unnumbered substitute bill provided for a maximum of two consecutive terms for barangay officials, capping their tenure at 12 years; while restricting SK leaders to a single term in office.

The extended office terms could help provide stability for local governance, while insulating barangay leaders from political pressures by higher-ranking city and provincial officials, said Oriental Mindoro Rep. Arnan C. Panaligan, who headed the bill’s technical working group.

“The committee’s goal is to provide continuity, stability, and to insulate barangay officials from politicking,” he told BusinessWorld in an interview in Filipino.

Parochial politics in the Philippines often revolve around the transactional relationship between higher-ranking leaders and barangay officials, with the dynamic often leading to local policies or programs that could help them secure re-election.

“The tendency is that after local elections, they (barangay officials) go to mayors or governors to strengthen their foothold. They seek protection and submit to their will because they only have three years. They want to be re-elected too,” Mr. Panaligan said.

The proposed law also seeks to defer the elections of barangay and SK officials to the second Monday of May 2029, according to a copy of the measure obtained by BusinessWorld. Incumbent local officials elected in 2023 would remain in office up until their successors have been elected.

The deferment could help save taxpayer money and deal with logistical challenges due to the awkward timing of barangay elections, Mr. Panaligan told congressmen during the hearing.

Congress allotted P15 billion for the conduct of the 2025 midterm elections, while pegging an additional P11.6 billion to fund the conduct of the barangay and SK elections in December of that same year.

The bill’s Senate counterpart has been referred to its plenary in November, with Senator Maria Imelda “Imee” R. Marcos urging the chamber to approve the proposal.

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