Category: Business Mirror

THE Philippines is seeking Thailand’s support for four labor initiatives as it pushes for concrete regional action on emerging workplace issues.

Labor Secretary Francis N. Tolentino presented the Philippine-led outcome documents during a bilateral meeting with Thai Minister of Labor Julapun Amornvivat on Tuesday, ahead of the 29th Association of Southeast Asian Nations (Asean) Labor Ministers’ Meeting (ALMM) and related meetings.

Four priority documents cover labor market and social resilience, fair, ethical and sustainable recruitment, labor inspection in the fishing sector, and occupational safety and health in the informal economy.

Philippine officials sought Bangkok’s backing for the endorsement of these deliverables as part of efforts to advance practical, worker-centered policies within Asean.

Platform workers also figured prominently in the talks, with Tolentino and Amornvivat discussing the ratification of International Labor Organization (ILO) Convention 193 on decent work in the platform economy.

Ride-hailing, delivery, freelancing and other digital platforms are among the emerging forms of work covered by the convention, reflecting the changing ways workers earn their livelihoods.

Possible cooperation on aquaculture development and workers’ rehabilitation likewise formed part of the bilateral discussions.

Thailand shared its experience in establishing rehabilitation centers for workers and invited Philippine officials to visit its facilities as Manila prepares to establish its own dedicated workers’ rehabilitation center.

Skills development was another area identified for closer cooperation, with the Philippines expressing support for Thailand’s priority to establish an Asean Center of Excellence for skills certification.

Manila reaffirmed its commitment to working with Bangkok in advancing ASEAN’s labor agenda and strengthening cooperation among member-states. The bilateral engagement forms part of the Marcos administration’s efforts to draw on regional expertise to improve programs and services for Filipino workers.

With workplaces and employment arrangements evolving, the Philippines is pushing Asean cooperation toward stronger labor protections, safer workplaces and better opportunities for workers across the region.

We’ve become pretty good at checking what’s on our food labels. Calories? Check. Sugar? Maybe a little alarming. Protein? The more, the better-or so the internet keeps telling us.

But between comparing nutrition facts in the grocery aisle and deciding what to eat for lunch, there’s another question worth asking: Where did this food actually come from?

Eating well is about more than counting calories or choosing the package with the shortest ingredient list. It can also mean understanding how food is grown, who produces it, and what it takes to bring it from the farm to our plates.

That broader conversation took center stage at European Organic Day Philippines 2026, where Naturland, through the European Union-supported ‘European Organic: Nurturing Every Juan’ campaign, brought together stakeholders from government, agriculture, sustainability, the food industry, and civil society to explore how organic food can become a more accessible option for Filipinos.

But the discussion went beyond simply encouraging consumers to buy organic. It looked at the systems behind those choices-from farmers and certification to market access and consumer education.

Organic doesn’t have to mean complicated

During the discussion ‘From Awareness to Action: Unlocking Demand for Organic Food,’ Chef Jayjay SyCip of The Fatted Calf Farmhouse Kitchen challenged the idea that choosing organic requires a complete lifestyle change.

‘To some people, organic can mean healthy, eating vegan, or going vegetarian. To some, eating organic is a change in lifestyle. But it is actually not,’ he said.

About 60 percent of the ingredients he uses in his restaurant are organic, he said, including free-range, organic chicken sourced from a farmer in Batangas.

‘It’s still chicken,’ SyCip said, emphasizing that choosing organic does not mean abandoning familiar foods. For him, it is more about being conscious of the ingredients and how they are produced.

That distinction is important. Organic and healthy are not necessarily interchangeable. Organic certification focuses on how agricultural products are produced and processed according to defined standards, while a healthy diet depends on the overall nutritional quality and balance of the foods we eat.

Still, knowing more about where food comes from can help consumers make more informed choices.

For SyCip, that connection is personal. His appreciation for fresh ingredients goes back to the food he experienced in his mother’s hometown in Bulacan and to his family’s connection to farming.

Behind every ingredient, he noted, is someone’s time, work, and care-something that can easily be forgotten once food reaches a restaurant kitchen or dining table.

From farm to certification

The journey from farm to table can also involve years of preparation and commitment.

Jakob Seck of Seck Winery shared how his family farm transitioned to organic production decades after it was established. The process took three years and involved moving away from pesticides and herbicides before the farm received organic certification.

Certification provides consumers with a way to identify products that have met established organic standards. But behind the logo is a process that can involve transition periods, inspections, documentation, and a long-term commitment to prescribed production practices.

For farmers and producers, however, meeting those standards is only part of the challenge. They also need reliable markets, technical support, and consumers who understand and value what the certification represents.

Making better choices possible

Consumer awareness can encourage demand, but awareness alone is not enough if healthier or responsibly produced choices remain difficult to find or afford.

Jo Sebastian, a registered nutritionist-dietitian, pointed to the abundance of nutritious ingredients already available in the Philippines.

‘Filipino food is actually very rich in vegetables. Our cuisine and our country is so rich in all of these produce and culture that allows us to actually have a healthy diet, but it’s definitely access and support that we need to try and prioritize and put more attention to,’ she said.

Her point underscores a larger challenge: eating well is not simply a matter of individual willpower. Food availability, affordability, agricultural support, market systems, and consumer knowledge all influence what ends up on the table.

These issues were central to European Organic Day Philippines 2026, held in partnership with the Department of Agriculture’s National Organic Agriculture Program (NOAP), with the support of the European Chamber of Commerce of the Philippines and Philippine social enterprise Mayani.

The event explored how greater knowledge exchange and cooperation could help strengthen organic agriculture and local food systems, while encouraging greater consumer understanding of organic products.

For consumers, the first step may be much simpler than a complete lifestyle overhaul: stay curious.

Read the label. Ask where an ingredient came from. Learn a little more about the people who produced it. Understand what an organic certification means-and what it does not mean.

Because helping consumers make better food choices also means building a system that gives farmers the support, markets, and opportunities they need to produce and sell those choices.

Eating well does not have to mean meal-prepping seven identical containers every Sunday or memorizing the nutritional value of every vegetable.

Sometimes, it can begin with paying closer attention.

Beyond the calories, protein, and sugar content, there is a much bigger story behind every plate. Understanding that story may be one more step toward learning how to eat well-and building a food system that makes it possible.

BUDGET constraints and red tape for land surveys for agricultural and residential free-patent, a primary mandate of the Department of Environment and Natural Resources (DENR), are forcing applicants to go to private land surveyors at their own expense, a party-list lawmaker said.

Speaking during DENR’s 2027 budget hearing in the House of Representatives (HOR), Party-list Rep. Elijah San Fernando of Kamanggagawa lamented that sometimes, the DENR officials in the provincial and municipal levels would ask applicants of agricultural or residential free patent to go back and forth to request a land survey, which is supposed to be free.

‘Instead, the Penros and Menros would ask the applicants to go to private surveyors,’ he lamented.

San Fernando sought clarification about the DENR’s mandate and process when it comes to public land surveys, classifications and patents.

Environment Secretary Juan Miguel Cuna, in response, said for alienable and disposable lands, the agency issues agricultural free patents and residential free patents. It starts from Cenros, Menros up to the Penros.

‘For those qualified, we issue agricultural free patents and residential free patents,’ he said.

The agency, as part of its mandate, determines the land classification or status, approves survey plans, determines if the land is alienable and disposable, and processes applications for residential and agricultural free patents.

Private…

Continued from A3

Cuna, when asked if the DENR has enough survey resources, said ‘no.’

Director Emelye V. Talabis of the Land Management Bureau, said the DENR’s budget is not enough to resolve disputes related to land survey.

Land cases handled by the DENR, she said, have a budget for budget resolution, but the budget is meager and not sufficient to resolve disputes, to which San Fernando asked back whether the DENR’s budget request for land survey is aided by the demand from the ground, namely Cenros and Penros.

Without providing details, he said applications for land surveys or survey requests are piling up because local DENR offices often point the applicants to go to the other offices for their survey requests because, allegedly, there’s no budget for land surveys.

The Undersecretary for Legal, Organization, Transformation and Human Resources, Ernesto Adobo, explained that sometimes, this happens because the budget is based on the DENR’s target for every year.

When the target is met, he said it also means the budget for land survey is already depleted or used up.

Cuna, for his part, said that upon requests by the local offices, the DENR Central Office also provides funding for land survey if it is necessary.

However, San Fernando said the problem also lies in the fact that the budget for land survey needs to be requested from the DENR Regional Offices, because the local offices have none for the purpose. ‘They have to go back and forth only to be told later that there’s no budget and asked to go to private surveyors,’ San Fernando said.

In San Narciso, Quezon, San Fernando noted that qualified applicants of land tenure or agricultural free patents complain of having no security of tenure because of the slow-paced processing of agricultural free patents.

The land, involving 40 hectares, needed to be surveyed as part of the process of granting an agricultural free patent.

This, he said, is not happening, even if the private claim was already rejected a decade earlier, thereby prolonging the wait of the applicants.

Many patients are only diagnosed with chronic kidney disease (CKD) when symptoms are already advanced. By the time they seek consultation, the disease has often progressed to a stage where treatment is not only complex, but significantly more costly.

This is not just an individual patient story. It reflects a broader national pattern.

CKD affects an estimated 13 million Filipinos, many of whom remain unaware they are already living with the condition. The result is a staggering P592 billion economic burden representing 41 percent of the country’s healthcare expenditure-one that is driven not only by the disease itself, but by how late it is diagnosed.

The scale of the challenge is difficult to ignore. Recent research commissioned by Boehringer Ingelheim suggest that as many as 35.9 percent of Filipino adults may already be living with CKD, more than double the global average. Every hour, another Filipino progresses to chronic renal failure, further increasing the burden on families and the healthcare system.

Perhaps the more uncomfortable question is this: if CKD can often be detected years before symptoms appear, why are so many Filipinos still being diagnosed only after the disease has already progressed?

CKD develops gradually and often without noticeable symptoms in its early stages. Without proactive screening, it can remain undetected for years. When symptoms finally appear, kidney function has often declined significantly.

Yet opportunities for earlier detection already exist.

CKD is closely associated with conditions such as diabetes and hypertension, which are routinely managed in primary care. This means the opportunity for earlier detection already exists within the system. Despite this, screening for kidney disease is not yet consistently integrated into everyday clinical practice.

This missed opportunity is particularly concerning given that CKD is already among the country’s top five causes of disease burden, alongside ischemic heart disease, stroke, and diabetes. Yet kidney damage often remains undetected until later stages, when treatment options become more complex and costly.

The cost implications are significant.

Early-stage CKD can often be managed at approximately P42,000 per year, through regular monitoring and appropriate medical management.

At this stage, the focus is on slowing progression and maintaining kidney function.

The financial gap widens dramatically as the disease advances. Research shows that direct medical costs increase approximately eleven-fold between early and advanced stages of CKD, illustrating how delayed diagnosis can quickly translate into significantly higher healthcare spending.

In contrast, costs increase substantially as the disease advances, with renal replacement therapies such as dialysis or transplantation costing over P400,000 annually in direct medical expenses alone, excluding additional non-medical and indirect costs. Care becomes long-term, resource-intensive, and life-sustaining.

This represents a several-fold increase in cost-even before accounting for indirect costs such as lost productivity and long-term care.

When viewed at a national level, this creates a pattern where more resources are naturally directed toward advanced disease. Over time, the P592 billion burden reflects this imbalance-not only in disease prevalence, but in how care is distributed across stages of illness.

Importantly, the tools for early detection are already available.

Tests such as urine albumin-to-creatinine ratio (uACR) and estimated glomerular filtration rate (eGFR) are simple, widely recommended, and clinically validated for identifying kidney damage at an early stage. However, these tests are not yet routinely integrated into primary care screening in many settings.

At the same time, healthcare-seeking behavior tends to be reactive. Many patients only consult only when symptoms appear, often due to financial constraints, limited awareness, or lack of preventive screening opportunities. Coverage structures also tend to prioritize treatment over early diagnostics, which can further reinforce this pattern.

Taken together, these factors create a system where CKD is more likely to be identified later in its progression, even when earlier detection would have been possible.

When identified early, CKD progression can often be slowed through timely intervention, appropriate medication, and lifestyle support. This helps preserve kidney function for longer and reduces the risk of complications later on.

It also helps reduce the long-term financial burden on both patients and the healthcare system.

In kidney care, timing is not just a detail in treatment. It is often one of the most important factors in improving early detection requires making it part of routine care, especially for high-risk individuals.

This includes integrating uACR and creatinine testing into primary care check-ups, where most patients first seek care, and strengthening community health systems such as barangay health centers so screening can happen closer to communities.

Local government units (LGUs) play a key role in normalizing preventive screening, with emerging public-private collaborations already showing how community-based early detection can be both feasible and scalable.

The P592 billion burden of CKD is often understood as the result of disease prevalence.[] But a closer look shows that a significant part of this cost is shaped by late detection and late intervention.

From a clinical perspective, this is an important distinction. It means that a large portion of this burden is not fixed-it is preventable.

The Philippines now stands at a point where the question is not whether CKD can be detected earlier, but whether early detection can be made part of everyday care.

The question is no longer whether CKD can be found earlier. The question is whether we can make early detection the standard rather than the exception.

Because when kidney disease is identified earlier, patients have a greater opportunity to preserve kidney function, avoid complications, and reduce the need for costly interventions later on.

Dr. Greta Cortez is a distinguished cardiologist and critical care specialist with over 14 years of clinical experience and more than a decade of leadership in the pharmaceutical industry. She currently serves as the Head of Medicine, Human Pharma at Boehringer Ingelheim Philippines, where she has been instrumental in shaping medical strategies and advancing patient-centric healthcare solutions. In parallel with her corporate role, Dr. Cortez practices as a Cardiologist and Critical Care Specialist at Cardinal Santos Medical Center and Mary Mediatrix Medical Center, reflecting her sustained commitment to both medical innovation and frontline patient care.

PhilCare, a premier Health Maintenance Organization (HMO) in the Philippines, has announced a landmark partnership with Hi-Precision Diagnostics to introduce the Precision Care product line. This collaboration aims to provide Filipinos with streamlined, technology-enabled healthcare plans that combine emergency coverage with the diagnostic expertise of Hi-Precision’s nationwide clinic network.

Hi-Precision Diagnostics is ISO 9001-certified and is the leading provider of quality and affordable diagnostic healthcare services in the Philippines.

‘This partnership strengthens our commitment to making healthcare smarter,’ said PhilCare President and CEO Jaeger Tanco. ‘By integrating Hi-Precision’s diagnostic excellence with our comprehensive emergency coverage, we are providing Filipinos with a holistic health solution that is both accessible and efficient.’

The Precision Care series is designed for individuals aged six months to 65 years, offering a range of benefits tailored to modern medical needs.

The partnership introduces three distinct variants-Basic, Plus, and Premium-each focused on delivering essential medical services like:

Emergency and Hospitalization Coverage

Provides single-use coverage of up to P60,000 for emergency care and hospitalization due to viral illnesses, bacterial infections, and accidental injuries. Members have access to over 600 accredited hospitals nationwide.

Unlimited Medical Consultations

Members enjoy unlimited outpatient consultations with General Physicians and Family Medicine Specialists across all Hi-Precision Clinics nationwide.

Outpatient Laboratory Procedures

Depending on the chosen variant, members receive an annual allowance for laboratory tests performed at Hi-Precision clinics ranging from P5,000 to P15,000.

Through the partnership, PhilCare members benefit from a simplified customer journey. Registration is fully digital, while availment at Hi-Precision branches is powered by PhilCare Xpress, allowing real-time validation of coverage and remaining benefit limits.

For more information about the Precision Care plans, visit the PhilCare website or scan the QR codes available at Hi-Precision branches nationwide.

THE Metropolitan Manila Development Authority (MMDA) and the local governments of Pasig, Marikina, Antipolo and Cainta have agreed to adopt a unified approach to addressing traffic congestion, road obstructions and other traffic concerns along Marcos Highway.

MMDA Chairman Romando Artes led the signing of a memorandum of understanding (MOU) on Wednesday at the agency’s headquarters in Pasig City.

He was joined by Pasig Mayor Victor Ma. Regis ‘Vico’ Sotto, Marikina Mayor Marjorie Ann ‘Maan’ Teodoro, Cainta Mayor Johnielle Keith Nieto and Antipolo Mayor Casimiro Ynares III.

The agreement seeks to improve coordination in managing Marcos Highway, which traverses several local government jurisdictions.

Under the MOU, the MMDA and participating LGUs will continuously clear their respective portions of Marcos Highway of obstructions, including illegally parked or stalled vehicles, unauthorized terminals and structures, and ambulant vendors and peddlers occupying sidewalks and other public spaces that impede traffic.

The parties also committed to ensuring that Marcos Highway is adequately manned and supervised at all times.

The LGUs will likewise deploy sufficient traffic personnel along local inner roads connecting to Marcos Highway, subject to the availability of personnel and resources.

‘The portion of Marcos Highway within Pasig is only about 70 meters. We are very thankful to the MMDA, especially under the leadership of Chairman Artes, for this initiative,’ Sotto said.

Teodoro said the agreement would help improve coordination among the different jurisdictions.

‘This is a good effort to unify traffic management. It would be a great help for Marikina,’ she said.

Nieto welcomed the initiative and thanked the MMDA for taking the lead, while Ynares said Antipolo was ‘more than willing to be part of a unified system.’

The agreement was prompted by severe traffic congestion along Marcos Highway on Dec. 6, 2025, when motorists were caught in a standstill lasting nearly six hours, with some delays stretching into the early hours of Dec. 7.

Following the incident, officials of the MMDA and traffic management heads of Antipolo, Cainta, Marikina and Pasig met on Dec. 9 to discuss traffic adjustments and measures to prevent a recurrence.

Through the agreement, the MMDA and the four LGUs committed to a more coordinated and responsive traffic management system along the major thoroughfare.

The initiative also supports President Ferdinand Marcos Jr.’s directive for stronger coordination between national agencies and local governments in addressing traffic congestion and improving mobility and transportation services.

Megaworld Corp. is further expanding its hospitality business by constructing more hotels in Palawan and Ilocos Norte, along with its current rollout in key tourism destinations in the country.

In a statement on Wednesday, the listed real-estate development concern majority led by business tycoon Andrew Tan, said this expansion plan will increase its number of hotel keys to 12,000 by 2032, from the current 8,700.

‘This expansion will include both Megaworld’s homegrown hotel brands and internationally branded brands, further strengthening the company’s position as the Philippines’s biggest developer and operator of hotel developments,’ said the company.

The news statement also confirms BusinessMirror’s earlier report that the company will be establishing Megaworld Global Hotels and Resorts (MGHR) and appointing two managing directors – Socrates ‘Sonny’ Alvaro and Anna Liza Vergara. (See, ‘Megaworld Hotels appoints new leaders,’ in the BusinessMirror, Aug. 20, 2026.)

MGHR oversees Megaworld Hotels and Resorts (MHR), which will manage its properites in Metro Manila, Boracay, Batangas, and Cebu, and Megaworld Global Hospitality (MGH), which will handle Mövenpick Manila Bay Westside, as well as the company’s new hotels in Palawan and three hotels in Iloilo namely, Courtyard by Marriot, Richmonde Hotel Iloilo, and Belmont Hotel Iloilo.

In this regard, Alvaro will manage the MHR properties and Vergara will manage the MGH hotels. Alvaro replaces Cleofe C. Albiso, MHR Managing Director, who is leaving the company at the end of August.

‘We see tourism as one of the most powerful engines of sustainable economic growth. Every hotel we build creates jobs, supports local businesses, brings visitors to new destinations, and opens more opportunities for communities to prosper,’ said Kevin L. Tan, president and chief executive officer of the Alliance Global Group Inc. (AGI), parent company of Megaworld.

‘Through our expanding hospitality portfolio under MGHR, we want to help continue unlocking the immense tourism potential of the Philippines and bring more of our country’s destinations, culture, and world-class Filipino hospitality to travelers from around the globe.’

For her part, Megaworld President and CEO Lourdes Gutierrez-Alfonso said: ‘One of our biggest contributions to nation-building is to help make our tourism industry more vibrant and attractive, especially to foreign visitors. To support this goal of helping boost our country’s tourism, we are making this bold move of expanding our hospitality organization with established veterans and innovators in the global hotels and leisure industry.’

Meanwhile, Alvaro is a seasoned hotelier, having spent years in senior leadership roads in MHR. He has also worked for 20 years in various capacities in hospitality properties abroad, such as the United Kingdom, United Arab Emirates, Egypt, the Maldives, Thailand, and key destinations in Asia.

Vergara has worked for 32 years in the Philippine properties of Marriott International, a leading global hospitality chain. She is currently the general manager of Sheraton Manila at Newport City, a hotel also owned by AGI under its Travellers International unit.

In the first half of 2026, MHR recorded P3.1 billion in revenues, an 11-percent increase year on year, making the unit Megaworld’s fastest-growing recurring income segment.

The strong performance was driven by the opening of the 405-room Belmont Hotel Iloilo, the company’s third hotel within its 72-hectare Iloilo Business Park and now the largest hotel in Iloilo City in terms of room inventory, bringing Megaworld’s total hotel portfolio in the city to nearly 1,000 rooms.

THE income of Filipino families increased over the last two years, but an economist noted that household spending grew at a much faster pace-potentially leaving families with less room to save.

On Wednesday, the Philippine Statistics Authority (PSA) reported that average family annual income grew by 16.5 percent to P411,350 in 2025 from P353,230 in 2023.

The PSA said family income increased across all income deciles. Higher-income households, particularly those in the seventh to 10th deciles, recorded faster income growth in 2023 to 2025 than in the previous two-year period.

Wages and salaries remained the primary source of family income, accounting for 54.6 percent of the total. This was followed by entrepreneurial activities at 15.5 percent, imputed rent at 8.7 percent, cash receipts from abroad at 8.5 percent, and cash receipts from domestic sources at 5.3 percent.

Other sources, including pensions, gifts, net receipts, dividends and shared income, accounted for the remaining 7.4 percent.

The increase in family income, however, came alongside a faster rise in household expenditure.

De La Salle University economist Ma. Ella C. Oplas said this could leave families with less capacity to save.

‘Spending is growing more than income. Worse is that given the need to spend, there is lesser capacity to save,’ Oplas told the BusinessMirror.

PSA data showed that average annual family expenditure rose by 24.7 percent to P321,850 in 2025 from P258,050 in 2023, faster than the 12.8-percent growth recorded between 2021 and 2023.

The increase in spending was recorded across all income deciles. In 2025, average annual expenditure ranged from P155,600 among families in the first decile to P693,810 among those in the 10th decile.

This is also reflected in household saving sentiment tracked by the Bangko Sentral ng Pilipinas (BSP). The share of households who said they would set aside savings remained below 35 percent throughout 2023 and 2024, before improving to 40.7 percent in the first quarter of 2025 and reaching 52.3 percent by the fourth quarter.

In 2023, the share ranged from 28.6 percent to 33.9 percent, while it was between 28.7 percent and 31.8 percent in 2024.

Oplas said the faster growth in spending relative to income pointed to pressure on household budgets, while inflation also affected purchasing power.

‘The gap suggests pressure on household budgets and may indicate that families are experiencing a squeeze in their purchasing power, which is the effect of inflation,’ she added.

According to the PSA, food and non-alcoholic beverages accounted for the largest share of household expenditure in 2025 at 33.3 percent.

This was followed by housing, water, electricity, gas and other fuels at 21.6 percent; restaurants and accommodation services at 7.0 percent; transport at 6.9 percent; personal care, miscellaneous goods and services at 4.2 percent; and health at 3.5 percent.

The spending figures came amid a period of easing inflation, with annual average inflation slowing to 3.2 percent in 2024 and further to 1.7 percent in 2025, from 6 percent in 2023.

Nominal vs. real

Oplas also pointed out that the Family Income and Expenditures Survey (FIES) figures are nominal, meaning they reflect the peso value of household income and expenditure without adjusting for changes in prices.

Looking at the figures in real terms, or after accounting for inflation, she said real family income growth may be only around 5 percent, while real expenditure grew by 12.2 percent.

While the gap between real income and expenditure growth remains substantial, Oplas said the growth rates themselves were relatively modest.

Oplas added that the weak growth in purchasing power could leave households with little income left after paying for basic needs.

‘So income is not enough to save, that’s why a lot of households are living from paycheck to paycheck,’ she added, partly in Filipino.

Cebu is seeking to diversify its investment base toward manufacturing as the province looks to reduce its dependence on the services sector and generate new employment opportunities, according to an investment official.

Bryan To, a consultant to the Cebu provincial government, said the province is pursuing foreign investments in manufacturing and other emerging industries amid concerns over service-sector companies leaving Cebu.

In an interview with the Cebu Economic Journalists Association, To said the shift is aimed not only at attracting new capital but also at creating a broader economic base that can generate jobs and support related sectors such as housing, education and health care.

‘We have to do something to mitigate,’ To said, referring to the potential impact of service companies leaving Cebu and the jobs and livelihoods tied to the sector.

He said simply recycling the same industries would not be enough and that the province needs to look for new opportunities and technologies.

One of the potential investments being explored is in electric-vehicle manufacturing, with an Association of Southeast Asian Nations (Asean)-based company considering Cebu as a possible test site for electric motorcycles.

The company is involved in the production of motorcycle parts, assembly and batteries, according to the Cebu Capitol consultant, who said the proposed venture could provide an opportunity for Cebu to develop manufacturing capabilities in the emerging EV industry.

To, however, declined to identify the company or disclose specific investment details, saying its chief executive is expected to make the formal announcement during the upcoming economic forum.

The province’s investment push comes as foreign investors from several countries show interest in Cebu.

To said the three previous investment forums had attracted participants from China, South Korea, Oman, Russia, and Europe, while Vietnam and Singapore have also expressed interest.

He estimated that about P4 billion in investments had been generated from the investment forums since the initiative began, with the investments largely focused on development and infrastructure rather than tourism.

Still, Cebu’s bid to attract more manufacturing investments faces infrastructure concerns, particularly power. To said investors typically consider labor, energy and water costs when evaluating potential investment destinations. The province is therefore looking at alternative energy technologies as part of efforts to improve its competitiveness.

The investment strategy is also being supported by efforts to streamline transactions for prospective investors.

Paulo Uy, the province’s investment and promotions officer, said the planned investment promotions office will establish an ease-of-doing-business help desk that will assist investors with bureaucratic requirements and route documents to the appropriate government offices.

The province is also exploring the development of idle government properties for investment, including a planned mega food hub on the Balili property in Naga City, southern Cebu, Uy said.

For Cebu, the objective is to move beyond traditional investment areas and attract new industries that can provide jobs, technology, and longer-term economic activity.

‘We have the workforce. We have motivated people. We have multilingual people. We have an adaptable workforce. Retrainable. Very quickly,’ To said, arguing that the province’s challenge is to match that workforce with new investment opportunities.

Introduction: We have come a long way, but are we there yet?

It has been more than a decade since RR No. 2-2013, or the Philippine TP Regulations, was formally established. Much has changed since then-from the audit techniques introduced under Revenue Audit Memorandum Order No. 1-2019 to BIR Form 1709, which requires certain taxpayers to disclose their related-party transactions. There is certainly an intention on the part of the tax administration to go after MNEs and domestic enterprises that may be taking advantage of related-party relationships to reduce their tax payments.

However, while we have come a long way, we still have a lot of catching up to do. While neighboring ASEAN members are already implementing their own versions of Pillar Two, the Philippines is only beginning to move in this direction. In August 2025, the BIR also presented draft regulations for a formal Advance Pricing Agreement program.

These are significant developments and, if I may say, long overdue. But the bigger question remains: Is the Philippines ready?

APA: A welcome development toward a more mature TP framework

An Advance Pricing Agreement (APA) is an arrangement between a taxpayer and the tax authorities to determine in advance how transactions between related companies will be priced for tax purposes. While prevalent mostly for cross-border transactions, it can also be entered into domestically through a domestic APA.

Controlled transactions covered by an APA generally cannot be audited by the BIR for a period of five years. Therefore, an APA provides tax certainty, especially for complex intercompany transactions. It also helps prevent double taxation since the contracting parties-or jurisdictions-are bound to respect and implement its provisions.

Among these benefits, I would like to emphasize the first one: tax certainty.

Transfer pricing involves considerable professional judgment. Taxpayers and the BIR may arrive at different conclusions despite evaluating similar facts and circumstances. They may disagree on the characterization of the entity, the most appropriate transfer pricing method, the tested party, whether domestic or regional comparables are appropriate, or even the arm’s-length outcome.

A taxpayer can therefore prepare extensive documentation today, only to discover several years later during an audit that the BIR has taken an opposing position. If transfer pricing is inherently judgment-driven, certainty may be just as important as having the right rules.

An effective APA program could provide this certainty and prevent burdensome and lengthy disputes. It could also allow the BIR to focus more resources on tax collection and other responsibilities that matter, while greater predictability could mean a great deal to investors considering the Philippines for their next ventures.

But an APA should not be viewed simply as another addition to the BIR’s transfer pricing arsenal. Its success should ultimately be measured by whether it makes the tax system more predictable and efficient.

The bigger question: Are we modernizing tax administration-or simply adding more compliance?

The continued development of Philippine transfer pricing is certainly welcome. But modernization should not automatically mean more compliance, more assessments, or more burden on taxpayers. If an APA program represents the next stage of Philippine transfer pricing, the more important question is whether our tax administration is ready to implement it efficiently.

The draft RR indicates that the program shall be administered by an Advance Pricing Arrangement Division, meaning that the BIR will establish a separate team to handle APAs. I wonder, however, how feasible this would be, knowing fully well that establishing a transfer pricing team is already a difficult feat considering the scarcity of resources. Adding another team could mean reallocating the limited manpower currently available across different divisions.

Another consideration is the timeline. The draft RR states that the BIR will endeavor to conclude APAs, whether UAPAs or BAPAs, within 12 to 24 months. Even in mature tax jurisdictions, it generally takes an average of three years to finalize a single bilateral deal. The proposed timeline is optimistic and may be difficult to achieve given the resources and coordination required.

I also have reservations about the procedures. These arrangements require sophisticated transfer pricing practices, careful functional and economic analyses, and, particularly for bilateral APAs, coordination between tax authorities. Considering where we currently stand in the development of our transfer pricing practice, I am quite worried about how these challenges could impact taxpayers hoping to avail themselves of the program.

An APA that requires years of negotiation and creates additional compliance issues for taxpayers would only defeat one of the primary purposes for which it was established: tax certainty.

The government undoubtedly has a legitimate responsibility to protect the Philippine tax base. However, better tax administration should not simply mean imposing additional requirements on taxpayers already within the system. As our tax rules become increasingly sophisticated, equal attention should be given to improving collection efficiency, simplifying compliance, reducing unnecessary administrative friction, ensuring consistency in the application of tax rules, and broadening the tax base.

This should also be viewed from an investment perspective. Businesses consider not only tax rates and incentives, but also tax certainty, compliance costs, predictability, and the risk of prolonged disputes when deciding where to invest or expand. A sophisticated tax regime may lose some of its appeal if it comes with greater uncertainty and administrative burden.

A stronger tax system should not only be better at collecting taxes. It should also help create an environment where there is more economic activity from which taxes can sustainably be collected.

If implemented properly, an APA should not become another layer of compliance, but rather a mechanism that provides certainty, prevents lengthy disputes, allows the BIR to use its resources more efficiently, and strengthens investor confidence.

4. Final thoughts: The real ‘next big move’

APAs could represent an important milestone in Philippine transfer pricing. But simply introducing an APA mechanism does not automatically bring the Philippines to the level of more mature TP jurisdictions. The real measure of success will be how it works in practice.

Can it provide certainty? Can it prevent lengthy disputes? Can it be administered efficiently? And can it improve the investment environment rather than simply add another layer of compliance?

The Philippines does not have to choose between protecting its tax base and remaining attractive to investors. A mature tax system should be capable of doing both.

Perhaps the Philippines’ next big move in transfer pricing should not simply be adopting more sophisticated rules, but building a system that taxpayers can understand, tax authorities can administer efficiently, and investors can trust.

The author is a Senior Manager of the International Tax and Transfer Pricing Unit of Du-Baladad and Associates (BDB Law) (www.bdblaw.com.ph).

The article is for general information only and is not intended, nor should be construed as a substitute for tax, legal, or financial advice on any specific matter. Applicability of this article to any actual or particular tax or legal issue should be supported, therefore, by a professional study or advice. If you have any comments or questions concerning the article, you may e-mail the author at joannelesley.padilla@bdblaw.com.ph or call 8403-2001 local 310.