Government and Taxes

Sunday, May 17, 2026

BWorld 867, Asia trade and the ASEAN summit

Asia trade and the ASEAN summit

May 5, 2026 | 12:02 am

My Cup Of Liberty

By Bienvenido S. Oplas, Jr.

https://www.bworldonline.com/opinion/2026/05/05/747325/asia-trade-and-the-asean-summit/

The annual summit of the Association of Southeast Asian Nations (ASEAN) will be held on May 7 to 8 in Lapu-Lapu City, Cebu. The Philippines is the Chair of the ASEAN this year.

The latest statement issued by the group was on April 30 — the “Joint Statement of the ASEAN Economic Community Council on the Economic Implications of the Situation in the Middle East.” In that 15-point statement, they reiterated among others the following:

“…to refrain from introducing unnecessary non-tariff measures and other trade-distortive measures, particularly on food, energy, other essential goods, and their associated inputs during periods of crisis” (point No. 6).

“… the importance of a rules-based, non-discriminatory, open, and predictable, multilateral trading system, with the World Trade Organization (WTO) at its core… global trading system remains open, predictable, transparent, and non-discriminatory” (point No. 12).

For me, these are very important points that must be reiterated: the importance of free trade, and non-discriminatory and non-arbitrary trading rules. This because the US is now the biggest violator of non-discriminatory, non-arbitrary trade rules, what with US President Donald Trump, Jr. announcing tariff hikes or tariff cuts any day on any country based on what annoys him or pleases him.

Last week, the Philippine Statistics Authority (PSA) released the March 2026 international merchandise trade statistics (IMTS) with comparative data for 2025. I checked the IMTS monthly database to get the numbers for 2024 and 2023, then I made the following observations:

1. Of the top 10 sources of Philippine imports, all are in Asia except for the US, five of which are from our ASEAN neighbors. More regional and geographical trade consolidation is good.

2. China’s share in Philippine imports keeps rising, from 21.7% in 2023 to 28.5% in 2026. South Korea’s share is also rising, from 7.1% to 11.5%.

3. The US’ share in Philippine imports keeps declining, from 6.7% in 2023 to 6% in 2026. Meanwhile, Indonesia, Thailand and Taiwan’s shares have also been declining (see Table 1).

These are my observations about our exports market based on IMTS date:

1. The US remains our No. 1 export market and its share in total Philippine exports is rising, from 14.1% in 2023 to 17.7% in 2026. Hong Kong came in second with its share rising rapidly from 9.6% in 2023 to 15.9% in 2026.

2. Only Singapore and Malaysia in Asia made it to our top 10 export markets and their combined share declined slightly, from 8.6% in 2023 to 7.5% in 2026. The combined share of Thailand, Vietnam, and Indonesia also declined, from 7.8% in 2023 to 6% in 2026.

3. The shares of China and Japan have also been declining, from 32.2% combined in 2023 to 22.8% in 2026. Meanwhile, the shares of Germany and Netherlands have increased slightly (see Table 2).

Our total trade (exports plus imports) has been rising consistently and this is good, from $48.8 billion in March 2023 to $58.2 billion in March 2026. But our trade deficit (exports minus imports) remains big, -$14.5 billion in 2023 to -$12.8 billion in 2026. This merchandise trade deficit must be compensated for by non-merchandise trade surplus (OFW remittances, BPO revenues, inbound tourism, etc.) to manage our current account and overall balance of payments, avoid further depreciation of the Peso vs the US Dollar and many other currencies.

President Ferdinand R. Marcos, Jr., Executive Secretary Ralph G. Recto, Trade Secretary Ma. Cristina Roque may take the opportunity during the ASEAN Summit this week to remind our ASEAN neighbors to also prioritize Philippine exports to their countries, the same way that their exports to the Philippines are given priority.

Beyond trade diplomacy, the Philippines should look inwards and expand our production capacity, modernize our roads and ports infrastructure, and increase electricity generation considerably in order to power large manufacturing, industrial, and commercial needs.

In 2024, the average power generation in kilowatt hours (kWh) per capita were as follows: the Philippines, 1,148 kWh; Indonesia, 1,332 kWh; Thailand, 2,840 kWh; Vietnam, 2,997 kWh; Malaysia, 6,381 kWh; China, 7,163 kWh; Japan, 8,204 kWh; South Korea, 12,085 kWh; and, Taiwan, 12,332 kWh.

Our Asian neighbors still rely heavily on coal and not wind-solar power. In 2024, the average generation in kWh per capita from coal alone was as follows: the Philippines, 701 kWh; Indonesia, 811 kWh; Vietnam, 1,508 kWh; Japan, 2,426 kWh; Malaysia, 2,930 kWh; South Korea, 3,636 kWh; China, 4,138 kWh; and Taiwan, 4,842 kWh. Thailand and Singapore are more dependent on natural gas, which is still a fossil fuel, than coal. For more details, read this column in the Feb. 17 issue, “On ASEAN energy, Terra Solar, and PEPIF 2026.”

We need more trade, more modern infrastructure, more power generation (especially from coal and gas), and more peace and prosperity.

PN 5, Part 1: Nickel potentials and Palawan

Part 1: Nickel potentials and Palawan

PROVINCES & PROSPERITY

Bienvenido S. Oplas Jr.

April 30, 2026

https://palawan-news.com/part-1-nickel-potentials-and-palawan/

Nickel is a good and versatile metal, corrosion-resistant used to produce stainless steel, batteries of electric vehicles (EV), superalloys, plating and many more. Nickel enhances strength, durability, and heat resistance in alloys for aerospace, construction, and electronics.

Global sources of nickel

The Philippines is the second largest producer of nickel ore in the world after Indonesia, with output of 330,000 tons in 2024. The country’s estimated value of nickel deposit is $170 billion from its 4.8 million tons of proven reserves.

The reserves/production (R/P) ratio, or the number of years that the reserves will be depleted assuming the annual production remains the same, is only 15 years for the Philippines, 25 years for Indonesia, 218 years for Canada and 38 years worldwide average (see table 1).

The Philippines exported 54 million wet metric tons of nickel in 2024, 92% raw, unprocessed ore with export value of P94.2 billion ($1.59 billion), second only to gold exports value. Some 81% of our nickel exports went to China and the balance of 19% went to Indonesia. China is the number 1 EV producer in the world now.

Philippines nickel reserves, CARAGA and Palawan

Philippine nickel deposits are of the laterite type — nickel-bearing soils derived from tropical weathering of ultramafic rock near the surface — and are extracted by open-pit, direct-shipping methods. These are concentrated in two major production zones, CARAGA region and Palawan with smaller deposits in Zambales (Luzon) and Tawi-Tawi.

Caraga Region, the nickel production heartland

Caraga region in northeastern Mindanao is often called the “mining capital of the Philippines.” It hosts 26 operating metallic mines, 23 of which are nickel. The two largest Philippine nickel companies, Nickel Asia Corporation (NAC) and Global Ferronickel Holdings Inc. are both headquartered in Surigao del Norte.

The three provinces of Caraga in particular:

– Dinagat Islands, with 10 active mines covering 24,221 hectares; declared a mineral reserve since 1939.

– Surigao del Sur, with six active mines covering 17,614 hectares (Carrascal-Claver corridor).

– Surigao del Norte, which hosts the Surigao Mineral Reservation (250,000 ha), containing an estimated 677 million metric tons of nickel-bearing laterite.

Palawan, high-grade deposits

Palawan is the westernmost major island of the Philippines and holds 11 active mines, three of which are large-scale nickel operations spanning four municipalities in the island’s southern end. Key operations include:

Rio Tuba (Bataraza), operated by NAC. One of the oldest and largest nickel mines in the Philippines, in production since 1969. Reserve is 60.2 million MT at 1.27% Ni.

Ipilan (Brooke’s Point), operated by Ipilan Nickel Corporation (Global Ferronickel affiliate). Maiden shipment in September 2022. Resource: ~80 million WMT, targeting 1.5–3.0 million WMT/year.

Berong (Quezon), Operated by Berong Nickel Corporation. The largest single nickel ore deposit by area in the Philippines is found in Barangay Berong, Quezon, southern Palawan.

(To be continued)

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BWorld 866, Implications and potential for PHL of the UAE’s exit from OPEC

Implications and potential for PHL of the UAE’s exit from OPEC

April 30, 2026 | 12:02 am

My Cup Of Liberty

By Bienvenido S. Oplas, Jr.

https://www.bworldonline.com/opinion/2026/04/30/746420/implications-and-potential-for-phl-of-the-uaes-exit-from-opec/

Last Tuesday, April 28, the United Arab Emirates (UAE) announced that they will be out of the Organization of the Petroleum Exporting Countries (OPEC) and OPEC+ starting May 1, giving just a few days’ notice.

OPEC has 12 member-countries led by Saudi Arabia. There are 10 non-OPEC countries, led by Russia, who are part of the Declaration of Cooperation (DoC) with OPEC. The combined crude oil production of OPEC and non-OPEC nations (22 countries) was 41.9 million barrels per day (mbpd) in 2025, 42.8 mbpd in February this year, declining to 35.1 mbpd in March.

Within OPEC, the UAE is the 4th largest crude oil producer after Saudi Arabia, Iraq, and Iran. The war and the choking of the Strait of Hormuz have adversely affected Saudi Arabia, Iraq, the UAE, and Kuwait — their combined reduction in output last March over February was 7.77 mbpd (see the table).

Our neighbors Malaysia and Brunei are among the non-OPEC nations which are part of the DoC, but their output is not significant enough to expand our oil supply security. Nonetheless they give us a lesson — we need to engage in more domestic oil-gas exploration and development to expand not only our gasoline-diesel supply stability, but to also expand the naptha and other feedstock for our domestic oil refinery and future petrochemical industry revival.

Among the reasons given by the UAE on why they will exit the OPEC: “The stability of the global energy system depends on the availability of flexible, reliable and affordable supplies, and the UAE has invested to meet the changing demands efficiently and responsibly, prioritizing supply stability, cost, and sustainability.”

I think the UAE is unhappy being an obedient follower of oil supply policies made by Saudi Arabia over the decades. The petrodollar scheme between the Middle East oil exporters and the US — that all oil purchases by countries should be paid for in US dollars, in return the US will provide military security for these oil exporters — has proven to be weak. Since the war broke out on Feb. 28, UAE territory has been breached many times by Iranian missiles and drones. The US security guaranty was somehow a failure.

I asked Arnel Santos, the COO of MGEN Thermal, if my hypothesis — that the UAE’s exit will be good in terms of more world oil supply and pricing competition — makes sense. He agreed. Mr. Santos was a Shell petrochemical executive for many years and hence a real expert in oil-gas economics.

“The impact becomes material after the conflict,” he said. “Once flows normalize, the UAE is no longer bound by quotas and will move to monetize its capacity. This shift changes how the system operates. The system transitions to more independent production behavior with reduced coordinated supply management. OPEC remains in place with a weakened ability to enforce production discipline.

“I assess this decision as driven by strategic and economic objectives rather than a response to Iranian retaliation,” he explained. “Exposure remains unchanged given geography and infrastructure. The decision reflects a move to gain production flexibility, assert independence from Saudi-led coordination, and position for market share in the next cycle.”

The Philippines has three potential benefits from the UAE in general, and its exit from OPEC in particular.

1. We can expect more oil, gas, petrochem, and fertilizer supply stability once the Middle East conflict ends. We have a Philippines-UAE Comprehensive Economic Partnership Agreement (CEPA) that was signed only this year. It is a good setup so that UAE can prioritize the Philippines in energy supply.

2. The UAE serves as a model for large-scale nuclear energy development. The UAE has invested a lot in nuclear energy — they had no nuclear power generation until 2019, then started producing 1.6 terawatt-hours (TWh) in 2020, 10.5 TWh in 2021, 20.1 TWh in 2022, 34.4 TWh in 2023, and 40.6 TWh in 2024 (Stat. Review of World Energy 2025). It could be 42+ TWh in 2025, constituting up to 25% of total power generation in the UAE.

3. The UAE has six of the top 30 richest sovereign wealth funds (SWF) in the world, with combined assets of $2.4 trillion, which is nearly 1,100 times larger than the assets of our Maharlika Investment Corp. (MIC) at $2.2 billion. MIC can partner with any of those six rich SWFs for more energy, infrastructure, and industrialization modernization of the country.

Executive Secretary Ralph G. Recto, Energy Secretary Sharon S. Garin, Foreign Affairs Secretary Ma. Theresa P. Lazaro, and other Cabinet officials will have additional challenges working with the UAE once the current Middle East conflict ends.

PhilStar 91, Energy developments and local government fiscal resilience

Energy developments and local government fiscal resilience

ENERGY, INFRA AND ECONOMICS - Bienvenido Oplas Jr. - The Philippine Star

April 30, 2026 | 12:00am

https://www.philstar.com/business/2026/04/30/2524508/energy-developments-and-local-government-fiscal-resilience

Last week until this Monday, a number of important developments in the energy sector were announced. I briefly discuss them below.

One, the Department of Energy (DOE) convening a Special ASEAN Ministers on Energy Meeting (AMEM) last April 27 via virtual platform to discuss the latest developments in the Middle East and their implications for regional and global energy security. The meeting was chaired by DOE Secretary Sharon Garin and attended by energy ministers and representatives from all ASEAN member-states.

Focus was on coordinated regional action affecting energy markets and supply chains, particularly in oil-gas supply. It also reaffirmed ASEAN’s collective responsibility to safeguard regional energy security through strengthened cooperation, including with dialogue partners through ASEAN-led mechanisms, and timely policy responses.

Two, the Energy Regulatory Commission decision last April 22 directing Meralco to refund the remaining balance of P14.17 billion to its customers. Meralco completed the regulatory “true-up” process for the distribution charges from July 2022 to December 2024. There was initial refund of almost P20 billion starting April 2025 at P0.12/kWh, remaining balance of P14.17 billion as of February 2026.

Three, National Grid Corp. of the Philippines earlier announced increase in transmission charge for April because ancillary service (AS) rates, a pass-through cost for supply by power generators that are AS providers during supply-deficit period, has increased from P0.83/kWh in February to P0.85/kWh in March. NGCP’s transmission wheeling rate slightly increased from P0.67/kWh in February to P0.70/kWh in March.

Four, Meralco press conference last Monday, April 27, clarifying many misleading claims about electricity bill charges. The company correctly reiterated that monthly electricity bills clearly show the breakdown of charges – generation charge, transmission charge, system loss charge, distribution charge, missionary electrification charge, taxes, subsidy charge to variable renewable energy via FIT-All, subsidies to poor consumers, and so on.

Five, Aboitiz Equity Ventures (AEV) press con also last Monday announcing its allocation of P88.5 billion in capital expenditures for 2026, P62 billion for AboitizPower (AP) alone. The important item is AP’s planned 25 percent stake in Van Phong Power Co. Ltd., subject to approvals, a beautiful coal power project in Vietnam. Last year AP acquired the 789-MW Caliraya-Botocan-Kalayaan Hydroelectric Power Plant (CBK HEPP) Complex in Laguna via a consortium with Sumitomo Corp. of Japan. AP also partnered with Meralco PowerGen Corp. (MGEN) in Chromite Gas Holdings Inc. in big capex.

All good, for stable grid and distribution system, for reliable power supply and overall energy security of the country. The most expensive electricity is no electricity, blackout. We should avoid blackout even for a minute. Power supply redundancy, transmission and distribution network redundancy, we should have more of them, not less.

Also last Monday the Office of Executive Secretary (OES) issued a statement, “Recto: No politics, no favoritism in Presidential barangay support.”

Executive Secretary Ralph Recto emphasized that the release of funds for President Marcos’ “Bawat Barangay Makikinabang Program” development support to 42,011 barangays nationwide is governed strictly by compliance with requirements – not by political considerations.

Under the program, each barangay will receive P200,000, half for development and safety projects such as street lighting, patrol vehicles, CCTVs, and power generators for health centers and evacuation facilities, the other half for “finisher program” for graduating college students to ensure that their education is not disrupted by economic shocks, expected to support up to 200,000 students at risk of dropping out.

I computed, (P200,000/barangay) x (42,011 barangays) = P8.4 billion. Not much given the P6.79 trillion total budget for 2026.

But since our budget deficit in the first quarter of 2026 has already reached P356 billion, and our interest payment for the same period has reached P273 billion or an average of P3 billion a day, interest payment alone, we need to cut some spending somewhere.

In this case, funding increase for local governments and barangays should be compensated by funding cut of some national agencies by at least a similar amount. My unsolicited advice is spending cut in 2027 of at least P4 billion for DILG and at least P4.4 billion for CHED and state universities and colleges.

Our outstanding public debt as of February 2026 was P18.16 trillion. Even if government will make zero new borrowings for the rest of the year, at 6.8 percent interest rate, the 10-year government bond rate, our public debt will rise to P19.39 trillion by February 2027. The P1.23 trillion is for interest payment alone, at an average of P3.37 billion a day.

Since it is impossible that government will make zero new borrowings, and net borrowings in the first quarter this year is already P539 billion or average of P6 billion a day, we are likely to have nearly P20 trillion by February 2027 with average interest payment of nearly P3.5 billion a day. What a waste.

Let us help the local governments to have fiscal resilience not by more taxation but by shrinking the budget of some national government agencies.

BWorld 865, Global energy Trumpflation and the rising budget deficit

Global energy Trumpflation and the rising budget deficit

April 28, 2026 | 12:02 am

My Cup Of Liberty

By Bienvenido S. Oplas, Jr.

https://www.bworldonline.com/opinion/2026/04/28/745779/global-energy-trumpflation-and-the-rising-budget-deficit/

It has been two months now since the US and Israel attacked Iran on Feb. 28. So I reviewed the prices of energy and related products since the Middle East crisis started and here are the trends.

1. Crude oil prices peaked in late March then pulled back slightly, though they mostly stayed above $100 a barrel. The world is suffering from “Trumpflation” as a result of US President Donald Trump’s irresponsible and prolonged attacks on Iran and Iran’s counterattacks and choking of the Hormuz Strait.

2. The Japan Korea Marker (JKM) LNG prices are 55% higher than they were before the war but the price of coal has increased by only 10%. Indonesia and Australia, the main sources of coal in the Asia-Pacific region, are far from the conflict area.

3. Non-fossil fuels remain generally as “non-alternatives” to hydrocarbons.

4. The prices of naptha — the main feedstock for various petrochemical products — and fertilizer inputs remain high, which explains point No. 3, since solar, wind, biomass, and nuclear power cannot produce petrochem products.

5. The local pump prices have reflected price changes in global crude oil (see Table 1).

The Philippines’ inflation rate increased year on year from 1.8% in March 2025 to 4.1% in March 2026. Among the major drivers of the inflation increase this year are Transport, prices of which increased 9.9%, and Electricity, Gas and Other Fuels that increased 7.2%.

What this shows is that our local power generation companies (gencos), especially those with coal plants that contribute 57-60% of total electricity production, were able to rein in the rise in electricity prices. Among these gencos which use considerable coal power are Aboitiz Power, Meralco PowerGen (MGEN), and SMC.

CASH AND DEBT

Last week, the Bureau of the Treasury (BTr) released the cash operations report for March 2026. We saw in it that the budget deficit was horrible at P350 billion in March alone as expenditures kicked high. So, I compared the January-March data over recent years and saw that the budget deficit this year of P356 billion is actually lower than last year’s P446 billion.

But given our continuously rising public debt level, our interest payment is high — P273 billion this year or an average of P3 billion/day, from P2.7 billion/day in 2025, P2.1 billion/day in 2024, P1.6 billion/day in 2023, and P1.2 billion/day in 2019 (see Table 2).

With the above data, the government and private sector should consider these short- to long-term measures.

1. Expand and accelerate exploration and development of more fossil fuels, more oil, gas, and coal instead of accelerating the development of wind and solar power. Even the resin, components of fiberglass and other parts of wind and solar power set-ups, are petrochem products.

2. Create new government subsidies and freebies or ayuda for the poor without resorting to more borrowing by cutting or shrinking some old and existing subsidies. Giving higher subsidies without cutting old subsidies means more borrowing that will require higher interest payments today and higher taxes tomorrow.

3. Suspend the excise tax on diesel and gasoline and discontinue cash aid for public transport and other subsidies. Tractors, harvesters, trucks, irrigation pumps, and fishing boats all use diesel so by suspending the excise tax there will be a decline in the cost of farming and fishing, contributing to lower food inflation.

4. Consider cutting or suspending irrigation subsidies made through the National Irrigation Administration’s big budget, instead of bowing to lobbying to give a fertilizer subsidy given the high prices of ammonia, urea, and sulfur, which are important inputs and fertilizer products.

5. On proposals to revive the domestic petrochemical industry through subsidies — the government should not rush towards this “industrial policy” lobby.

On the last point, I briefly chatted with Arnel Santos, a former Shell petrochemical executive and now COO of MGEN Thermal, and he said that “Base petrochemical investments that depend on imported feedstock and export markets remain structurally disadvantaged. Integration across refining and petrochemicals is only viable when it is connected to a system that provides access to feedstock, markets, and capital beyond what is available locally.”

Saturday, May 16, 2026

PN 4, Coal plants in Visayas-Mindanao and Palawan

Coal plants in Visayas-Mindanao and Palawan

PROVINCES & PROSPERITY

Bienvenido S. Oplas Jr.

April 26, 2026

https://palawan-news.com/coal-plants-in-visayas-mindanao-and-palawan/

This is somehow a continuation of the earlier paper in this column, “Coal plants in Luzon and Palawan” (April 07, 2026, https://palawan-news.com/coal-plants-in-luzon-and-palawan/).

Cebu province alone hosts a total of 894 MW of coal plants commissioned between 2010 to 2019. Iloilo hosts two coal plants with a total capacity of 452 MW. Negros island does not have any coal plants, but it regularly imports coal power from Cebu and Iloilo; otherwise, it might court a potential daily “Earth Hour.”

In Mindanao, five provinces host coal plants. Misamis Oriental alone hosts three plants with combined capacity of 802 MW, Lanao del Norte also hosts three plants with combined capacity of 866 MW. Davao del Sur and Davao Occidental each host a 300 MW plant.

Cebu, Iloilo, Misamis Oriental, and Davao del Sur are big provinces with huge provincial GDP of P483 billion to P1.25 trillion. In contrast, Palawan and the two Mindoro provinces have smaller provincial GDP (see table 1).

From the Independent Electricity Market Operator of the Philippines (IEMOP), data show that of the registered power plants at the Wholesale Electricity Spot Market (WESM) as of March 2026, of the total capacities in the Visayas grid, coal plants constituted 34% followed by geothermal and solar.

In the Mindanao grid, coal is 50% of total capacities, followed by hydro. Those are new coal plants commissioned only between 2015 and 2020 (see table 2).

Palawan can learn lessons from the seven provinces of Visayas and Mindanao that host the rich cities of Cebu, Mandaue, Lapulapu, Iloilo, Davao, Cagayan de Oro, and more. It is not possible to sustain the high business and economic activities there without huge supply of stable, reliable, and competitively priced electricity from coal plants.

Palawan still runs on predominantly big gensets that use diesel and bunker fuel. One liter of diesel can generate about three Kwh of electricity. So with diesel prices pre-Iran war of P60-P65/liter, the cost of diesel fuel alone would be between P20-P23/kWh, with machine depreciation, staff salaries, distribution cost, system loss, taxes, and other operating costs not included yet.

With the current high diesel prices, generation cost would easily rise to P30-P35/kWh. Adding the other costs like depreciation, salaries, distribution cost etc. would raise the cost of electricity in Palawan to P40-P45/kWh. But provincial residents pay only about one-third of that because they are subsidized by all on-grid consumers nationwide who pay the universal charge for missionary electrification (UC-ME).

There are moves to stop UC-ME in the future, meaning off-grid islands and provinces must find ways to bring down the cost of their electricity as the subsidies will dry up someday. Palawan, Mindoro and other off-grid provinces and islands can choose coal, small modular reactors (SMRs), run-of-river hydro, or intermittent RE like solar and wind.

Solar and wind are very land-intensive, and millions of trees in the midland to upland have to be murdered for land clearing to put up the solar and wind facilities plus the access roads.. Solar output at night is zero and small output in the daytime when cloudy and rainy. Wind output is also zero when the wind is not blowing.

Beautiful islands like Palawan and Mindoro should focus on food production and food manufacturing, tourism, and other activities. More land should be devoted for these activities and not to low-energy-density technologies like solar and wind. Coal power (and SMRs) is an old, mature, and proven technology that can help propel less developed cities and provinces towards modernization and economic prosperity.

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BWorld 864, Rising subsidies and the danger of debt explosion

Rising subsidies and the danger of debt explosion

April 16, 2026 | 12:02 am

My Cup Of Liberty

By Bienvenido S. Oplas, Jr.

https://www.bworldonline.com/opinion/2026/04/16/743152/rising-subsidies-and-the-danger-of-debt-explosion/

These are recent reports about rising subsidies — which can be dangerous to both short- and long-term fiscal discipline and consolidation — as reported in BusinessWorld: “Gov’t eyes P60-billion EV incentives” (April 10), “DEPDev wary of deficit impact if supplemental budget passes” (April 13), “Agri dep’t considering P10 per kilo subsidy for users of gov’t fishports” (April 13), and, “DBCC opposes suspension of excise tax on gas, diesel” (April 15).

The Department of Trade and Industry (DTI) is wrong to propose a revenue cut of P60 billion from electric vehicles (EV) fiscal incentives when the government now needs more revenue because of its ongoing and planned subsidies to help the public cope with the high prices of energy, transportation, fertilizers, other consumer goods.

Since the dictatorial lockdowns of 2020-2021, our budget deficit has plateaued at around P1.6 trillion/year from 2020-2026. There were too many subsidies and freebies even if there had been no more economic or virus crisis in 2022 to 2025.

In the first two months of 2026, the budget deficit had been miraculously controlled to only P6 billion due to high revenues from the Bureau of the Treasury in February, reflected in “non-tax revenues.” But our interest payments are now jumping like a kangaroo, P177 billion in January-February alone or an average of P3 billion/day, every day (see Table 1).

The high public debt stock of P18.2 trillion as of February plus high interest rates mean high interest payments, which will require more borrowing to serve past and current deficits. That is why the government should avoid creating new subsidies without first shrinking or abolishing old subsidies.

I checked the 10-year bond rates of East Asian economies and saw that the Philippines and Indonesia have the highest interest rates, 6.6% as of April 14. This is even higher than the peak rate of 6.43% in 2025 (see Table 2).

We need to cut oil taxes, especially that on diesel because this fuel is being used by tractors, trucks, harvesters, irrigation pumps, fishing boats, and buses. Estimates from trucking and logistics companies show that diesel alone accounts for up to 70% of their operating costs. Diesel also makes up to 70% of the cost of fishing boats operations from the previous 40-50%, according to Agriculture Secretary Francis Tiu Laurel, Jr.

Government should not give selective subsidies to, say, public transportation only — it should cover all vehicles. The suspension of oil taxes, especially on diesel, should have been prioritized.

Many SMEs are now searching for ways to survive and cope with limited spending by their consumers. A friend of a friend, Artel Sebastian, who owns a coffee shop, Adelle’s Food Services, in Malolos, Bulacan, asked me who in the Department of Trade and Industry (DTI) can help them avail of a loans program. I gave the name of DTI Undersecretary Jean Pacheco who patiently answered the concerns and questions of the entrepreneur.

I got this heartwarming feedback from Mr. Sebastian. He said, “As a small business owner, I am grateful for the guidance and support extended by Usec. Mary Jean Pacheco. Through her assistance, I was able to better understand and navigate the process of applying for the government-extended business loan through SBCorp. aimed at helping enterprises weather the current crisis. Her initiative made the program more accessible to small entrepreneurs like me, bridging the gap between government support and the real needs of businesses on the ground. This kind of leadership provides clarity, confidence, and hope for small food businesses that continue to operate despite challenging conditions. I can genuinely feel the presence and support of our government — something that many small business owners like myself have long hoped for. The assistance is timely and much needed by our sector, which strives to pay honest taxes, provide employment, and contribute to strengthening the economy.”

Thanks to Ms. Pacheco, there is one less confused SME owner who has been assisted by the DTI. Congrats!

Aside from the possible suspension of the diesel excise tax, the government can further ease the cost of doing business. During the government-business meeting on April 8, two proposals among others from the business sector stood out — address port congestion and revisit the duration of truck ban hours.

On the issue of port congestion, Executive Secretary Ralph G. Recto said that he referred the proposal to open container yards outside Metro Manila to the Bureau of Customs “for immediate action.” The issue on truck ban hours has been referred to the Metro Manila Development Authority for “urgent review and action.” And businesses’ appeal for lower fees charged by local governments “will be fast tracked.”

Good moves to cut bureaucracy, Mr. Recto.

Other measures that the government should consider are the following.

1. Cut the Military and Uniformed Personnel (MUP) pension, now reaching P250 billion a year, because the retired personnel contributed nothing to their own pensions during their active service, and because of an irrational provision of “indexing” the current pay to their old pay before they retired.

2. Cut the subsidies to state universities and colleges (SUCs) that keep expanding the number of campuses per province.

3. Control corruption, especially at the Department of Public Works and Highways.

Saturday, May 09, 2026

IPR and Innovation 50, Property Rights Alliance on World IP Day 2026

Two weeks ago, last April 22, the Property Rights Alliance (PRA) celebrated World IP Day 2026 and sent the Open Letter to World Intellectual Property Organization (WIPO). PRA in collaboration with 93 think tanks and advocacy organizations across 42 countries including Minimal Government Thinkers released an open letter commemorating World Intellectual Property Day. The letter, addressed to Director-General Daren Tang of WIPO affirms the coalition’s continued commitment to advancing strong and effective intellectual property rights worldwide—rights that empower creators, entrepreneurs, and innovators alike.

This year, PRA supported WIPO’s World IP Day theme:“IP and Sports: Ready, Set, Innovate.” Sports aren’t just about the game–they intersect with fashion, entertainment, media, health, gaming, and consumer goods. IP, such as patents, designs, trademarks, and copyrights, incentivizes innovation and enables cross-country connections with sport, sparking creativity, technological advancement, and economic growth.

The 3-pages letter plus 11-pages signatory think tanks with their logo and names of heads of organizations is here, https://propertyrightsalliance.org/wp-content/uploads/ATR_WIPO_Day_2026_v2.pdf.

Our letter's Conclusion:

On World Intellectual Property Day 2026, we reaffirm the essential role of intellectual property in advancing innovation, economic growth, and cultural vitality worldwide. Across sectors from sports and the creative industries to biopharmaceuticals and emerging technologies, strong IP frameworks enable creators and businesses to invest, collaborate, and deliver innovations that improve lives and connect societies. Intellectual property protections are not merely economic tools; they are foundational to sustainable development, expanded access to life-saving technologies and products, and the preservation of individual liberty and free enterprise. As global innovation accelerates, continued international cooperation remains vital to ensuring that IP systems remain balanced, effective, and inclusive. By safeguarding intellectual property, we empower creators, strengthen economies, and help build a future defined by progress, creativity, and shared prosperity.

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