Category: Business Mirror

From the time Spanish military forces surveyed its shores in 1868, to the point in history when the United States built its Naval Station here in 1905, Subic has always been valued for its deep-water port.

So, when the Americans finally left in 1991 after almost a century of developing Subic as a military resupply center and a bulwark of its military might in the Asia-Pacific region, Subic’s maritime industry became a focal point of development for the Subic Bay Metropolitan Authority (SBMA), the agency tasked to convert the former military base into an economic zone.

BusinessMirror, which celebrates its 20th founding anniversary this month, was there at the start of Subic’s determined journey to leverage its core advantage as a maritime port, starting with the full-blast construction in 2005 of the New Container Terminal-1, to its efforts to gain more maritime traffic in terms of cargo vessels, cruise ships, and even military ships that visit under the Enhanced Defense Cooperation Agreement.

Yet no maritime news from Subic was as compelling as the meteoric rise and fall of the Hanjin shipyard, the $1.7-billion project that made the Philippines at one point the fourth-largest shipbuilding country in the world.

Its story mirrored life’s triumphs and tribulations, and stressed the lesson that man’s undertakings, no matter how well-intentioned, may still fall apart and fail.

Hanjin arrives, and Subic too

HANJIN’S arrival in Subic in February 2006 was the biggest local news that year. When the SBMA signed in Hanjin Heavy Industries and Construction Co., Ltd. of South Korea for a US$1 billion shipbuilding project at the Redondo Peninsula, it created not just ripples, but a tsunami of opportunities in the otherwise placid pond that was Subic Bay.

Immediately, the Hanjin contract made Subic the country’s top heavy-hitter in foreign direct investments (FDIs) with P51.4 billion generated that year. This allowed the SBMA to corner 70.8 percent of the P73 billion investment projects approved by all investment promotion agencies (IPAs), and eclipsing the combined first quarter FDI tally of the Philippine Economic Zone Authority (PEZA), the Board of Investments (BOI), and the Clark Development Corporation (CDC).

The Hanjin investment also paved the way in 2006 for the entry of six more Korean firms that pledged a total of $6.5 million for various projects.

The growing job opportunities created by more investments further boosted the Subic economy, allowing the SBMA to rein in a total of P4.5 billion in revenues in 2006.

In June 2007, more good news arrived: Hanjin would top its $1-billion original investment with $684 million due to new orders for vessels to be made in its Subic shipyard.

From aAgolikos to Antoine de Saint Exupery

BusinessMirror also bore witness to the evolution of Hanjin’s shipbuilding projects.

In April 2008, the Korean shipbuilder launched the 4,300-TEU bulk carrier ‘Argolikos,’ the first ship ever to be built in its Subic shipyard. Greek firm Dioryx Maritime Corporation, which ordered Argolikos, has also placed orders for at least six vessels to be built by Hanjin, the SBMA said.

From there, Hanjin went on to build more-and bigger-ships. In September that year, the firm announced that it will construct two very large crude carriers (VLCCs) worth a total of $330 million for Emarat Maritime LLC (EML), a shipping firm headquartered in Dubai.

In January 2010, Hanjin unveiled ‘Leyla K,’ the first oil tanker to be built in Subic, thereafter delivering the 114,000-deadweight ton behemoth to the Kaptanoglu Shipping Lines.

In August that year, HHIC-Phil’s then general manager for external business Taek Kyun Yoo said the company had already booked 56 new shipbuilding projects with projected sales $4.9 billion, a return more than double the firm’s total investments of $1.9 billion in the past four years.

The new contracts, Yoo also said, would progressively increase the number of shipyard workers from 16,000 in 2008 to 22,000 by the end of 2010, and up to 24,000 in 2011 and 25,000 in 2012.

Hanjin-Subic made history again in September 2015 when it completed the first locally-made liquefied petroleum gas (LPG) carrier at its Redondo Peninsula facility, the M/V Kaprijke, which had a capacity of 38,405-cubic meters.

The firm’s contribution to the economy was recognized in December 2016 when the Department of Trade and Industry (DTI) recognized Hanjin as the country’s top exporter in the machinery and transport equipment sector.

Finally in January 2018, Hanjin marked another milestone as it unveiled the CMA CGM Antoine de Saint Exupery, the first 20,600 TEU container vessel built in Subic and one of the biggest ships ever built in the world.

The mammoth container vessel was built over a period of one and a half years, from Feb. 8, 2016 when the first steel cutting was made, to its launching in Aug. 19, 2017.

Fall from Grace

THE Antoine de Saint Exupery was supposed to be the first of three 20,600-TEU container ships that HHIC-Phil has committed to build for CMA CGM, but it turned out to be the last to be completed at the Hanjin shipyard.

On January 10, 2019, BusinessMirror broke the story that the giant shipbuilder, which had delivered 123 vessels since rolling out the ‘Argolikos’ in July 2008, had gone to court to initiate voluntary rehabilitation under Republic Act 10142, otherwise known as ‘An Act Providing for the Rehabilitation or Liquidation of Financially Distressed Enterprises and Individuals’.

As it turned out, the Subic shipbuilder had incurred at least $100 million losses that it attributed to stiff global competition, low prices of ships, and low production at the local shipyard.

Pyong Jong Yu, then HHIC-Phil’s executive director for administration, would also confirm in a meeting with SBMA officials later on that Hanjin has agreed to heavy-tail payments, whereby buyers made larger payment late in the building process, thus resulting to heavy borrowings by the shipbuilder.

As it would eventually come out, Hanjin owed some $400 million in outstanding loans from Philippine banks on top of another $900 million in debts with lenders in South Korea.

White knight

BusinessMirror would also cover the search for a white knight to save the shipyard from totally going under. But the no one was immediately forthcoming, leading to the closure of the Hanjin facility after the shipyard was placed on receivership.

It was only in March 2022 that Cerberus Capital Management acquired the Subic shipyard for $300 million, renaming it Agila Subic Shipyard and starting its redevelopment as a multi-use hub for industrial, naval and logistics operations.

This August, six long years after Hanjin left the shipbuilding facility, Aguila Subic announced that four major tenants have signed in to kickstart the revival of the Subic shipyard. These include Hyundai Heavy Industries, one of the biggest shipbuilders in the world today.

The following month, HD Hyundai Heavy Industries Philippines (HHIP) conducted a steel-cutting ceremony at the Redondo Peninsula shipyard, marking the start of construction of its first shipbuilding project.

The Department of Agriculture (DA) urged the Senate to support its proposed P216.1billion budget for 2026 and to regard it as an investment in food security and the future of farmers and fishers.

During a Senate hearing on the proposed budget of the DA on Wednesday, Agriculture Secretary Francisco Tiu Laurel Jr. said the proposed budget, an upgrade from P176.7 billion by the House of Representatives, represents a ‘long-overdue boost for a sector that feeds the nation but has long been underfunded.’

‘This is a meaningful investment in the future of those who diligently and faithfully feed us.’

He noted that years of ‘limited funding’ have weakened the farm sector’s role in the economy.

The DA said that even though the sector employs one in every five Filipinos, it contributed just 10 percent to GDP last year.

Meanwhile, the agency noted that underinvestment has widened the country’s agricultural trade deficit as food imports grow to meet the needs of the country’s population.

Despite being the backbone of the economy, millions in the sector remain among the country’s most financially vulnerable, with some unable to afford the food they produce.

‘As their representatives, it is our duty to be their advocates-to speak for them, to help them fulfill their dreams, realize their hopes, and empower them not only to uplift their own lives but also to sustain the tens of millions of Filipinos who rely on them for nourishment,’ the DA chief said.

Next year, the agency will focus on agricultural modernization, increasing incomes for farmers and fishers, and building resilience through infrastructure, climate-smart technologies, and disaster preparedness.

‘This budget is not just about funding-it is about fairness, urgency, and shared responsibility.’

Earlier, the DA received additional funding earmarked for its programs from the cancelled flood control projects.

This came from the House, which realigned the P255 billion originally allotted for flood control projects of the Department of Public Works and Highways.

In ancient times, townshipspertained to small, rural communities or settlements, often with a strong sense of local identity and governance.

In the Philippines, for example, communities developed with the creation of Barangays, which were made up of several dozen households bound together by social and political ties. These Barangays provided fellowship, security and survival for the families living therein.

In today’s world of real estate, townships refer to large-scale, integrated, mixed-used developments that combine residential, commercial, and recreational spaces within specific areas. Since their advent in the 2000s, townships have become thriving communities that offer many amenities and services that have attracted many investors and homeowners.

The reason for townships’ popularity is the variety of amenities and conveniences that they offer.

Nowadays, it’s common to find various types of residential units such as apartments, condominiums, villas, and townhouses; commercial spaces that offer banking, shopping, dining, and entertainment; recreational facilities like parks, gardens, theaters, gyms, sports complexes; and integrated, well-planned infrastructure like roads, utilities, and community services, all in one common expanse. Furthermore, townships provide easy access to amenities and services that are carefully planned and managed, providing a high quality of life and reducing the need to travel; they foster a sense of community among residents; and their value appreciate over time, making them a good investment option.

According to Sharon Joy Roset Saclolo of Leechiu Property Consultants, the way Filipinos choose where to live is evolving and infrastructure development is driving the transformation. With P1.54 trillion allocated to major projects in 2024 alone, the country is seeing significant improvements in roads, transport systems and interregional connectivity. These developments are expanding housing options beyond Metro Manila, creating new residential hubs and investment opportunities in emerging cities. Today, there are over 120 townships covering 134,000 hectares nationwide, offering residents the convenience of living near workplace, retail hubs and entertainment enters.

Examples of these are Filinvest City-a 244 hectare fully-integrated township with residential, business, leisure, education and medical areas, Greenfield District in Mandaluyong, Philippines-a 64-hectare township with residential, office, and commercial spaces, Eton City in Laguna, a 1,000-hectare township with residential, commercial, and recreational spaces, Megaworld’s Forbes Town in Bonifacio Global City and Pueblo de Panay in Roxas City, Capiz, which is the largest township in the Philippines.

David Leechiu of Leechiu Property Consultants, views townships as vital, maturing urban developments that thrive outside Metro Manila, supported by infrastructure and BPO growth with a future focus on transit-oriented developments and sustainability to improve quality of life. He said, ‘A buyer preference for landed homes over condominiums, a trend accelerated by high interest rates and identifies a growing demand for master-planned townships due to their flood protection and power reliability.’

Joey Bondoc of Colliers Philippines is optimistic that the development of more integrated communities in the city should result in the construction of newer and more sustainable office spaces. Tenants should be on the lookout for the completion of these high-quality spaces.

Indeed, townships are becoming increasingly popular in the property market because of their unique blend of convenience, community living, and investment potential.

JOY ASEO took over in the absence of Shaina Nitura to propel Adamson University to the second round with a quick sweep of Arellano University, 25-21, 25-17, 25-19, in the Shakey’s Super League (SSL) Preseason Unity Cup on Thursday at the Rizal Memorial Coliseum.

Aseo whipped up 12 points in the Lady Falcons’ second straight victory in as many games as they joined playoffs-bound and also unbeaten Far Eastern University at the top of Pool B.

Adamson University, which rested Nitura, was in full control of the match and booted out the Lady Chiefs in just 77 minutes.

‘We were patient and played as a team,’ said Aseo, who had eight kills and four aces. ‘Win or lose, we always keep pushing ourselves.’

Red Bascon finished with eight points while Abegail Segui and Frances Mordi added six points each for Adamson University, which annexed the National Invitationals Cebu Leg two months ago.

Jazmine Palalon and Jayde Dela Cruz scored seven and six points, respectively, to pace Arellano University, which ended its campaign with a 1-2 win-loss record.

College of Saint Benilde, meanwhile, rallied from a set down and survived an extended fourth frame in an 18-25, 25-13, 25-23, 33-31, victory over Ateneo de Manila University to complete a three-game sweep of Pool D.

The Lady Blazers turned to veteran Zam Nolasco for the finishing blows in the furious fourth set race to the finish to emerge unscathed in the group stage.

Saint Benilde squandered three match point advantages and had to fight through five set point deficits.

Nolasco tied the fourth frame one last time at 31 with a booming kill before shutting the door on Zey Pacia to push the Lady Blazers to match point.

The two-hour, two-minute encounter ended when Pacia smashed her spike attempt straight to the net.

Nolasco had 19 points from 15 kills and four kill blocks, Shahanna Lleses added 12 markers while Rhea Densing scored 11 for the four-time National Collegiate Athletic Association champion Saint Benilde.

Ateneo slid to a 1-1 card despite the 19-point effort of Ana Hermosura and 17 markers by Pacia. Faye Nisperos chipped in 14 points in a lost cause.

The Blue Eagles are in a must-win situation in their second round bid when they face also-ran San Sebastian College-Recoletos (0-2) on Friday.

Games in the SSL Preseason Unity Cup are available live and on demand via PusoP.com and Solar Sports.

IN a move to strengthen ethical governance and eliminate conflict of interest in public service, a lawmaker has filed a bill barring public officers and their relatives, and affiliated businesses from government contracts.

Agusan del Norte Rep. Dale B. Corvera has filed House Bill 5222, titled ‘An Act Prohibiting Public Officers and Their Relatives from Entering into Government Contracts and Providing Penalties Therefor.’

The measure seeks to categorically prohibit public officers, their relatives within the fourth degree of consanguinity or affinity, and business entities where they hold substantial shares or beneficial interests from entering into contracts with the government.

Corvera emphasized that the bill also covers individuals or entities granted licenses, franchises, permits, accreditations, or similar privileges by the government-prohibiting them from allowing any public officer, their relatives, or affiliated enterprises to exploit such privileges for personal or business gain.

‘This bill is about restoring public trust and ensuring that government transactions are free from undue influence and self-dealing,’ Corvera said. ‘It draws a clear line between public duty and private interest.’

Under the measure, violators will face imprisonment of one to 10 years and a fine equivalent to 50 percent of the total value of the government transaction, contract, or deal. Convicted individuals will also be perpetually barred from holding any public office.

‘This proposed law sends a clear message: public service is a calling, not a business opportunity,’ Corvera added. ‘By barring public officers and their close relatives from profiting through government contracts, this measure ensures that those who serve do so with integrity-not for personal gain.’

Corvera cited the constitutional principle that ‘a public office is a public trust,’ emphasizing that public officials and employees must embody integrity, accountability, and transparency in the performance of their duties.

The measure comes amid mounting public outrage over alleged corruption and irregularities in infrastructure projects across the country. In recent months, flood control and drainage programs in several provinces-particularly in Central Luzon-have come under scrutiny following reports of substandard works, ghost projects, and questionable bidding practices allegedly involving individuals linked to public officials.

President Marcos condemned these irregularities, revealing that nearly P100 billion worth of flood control projects-around 20 percent of the total-had been awarded to only 15 contractors.

The President described the situation as ‘shameful’ and subsequently created the Independent Commission for Infrastructure (ICI) under Executive Order 94 to investigate these anomalies and hold those involved accountable.

Corvera said these developments highlight the urgency of his measure.

While existing laws-such as Republic Act 6713 (Code of Conduct and Ethical Standards for Public Officials and Employees), Republic Act 3815 (Revised Penal Code), and Republic Act 12009 (New Government Procurement Act)-contain provisions on conflict of interest and disclosure, Corvera noted that these remain insufficient deterrents against unscrupulous practices.

‘Current mechanisms rely too heavily on self-declaration and after-the-fact accountability, creating loopholes that allow public officers to benefit indirectly through relatives, business partners, or proxies,’ he said. ‘By the time violations are discovered, public funds have already been spent, making recovery and accountability difficult.’

House Bill 5222 aims to close these gaps by clearly and directly prohibiting public officers and any person connected to them by marriage, blood, or business interest from directly or indirectly participating in any government contract or procurement activity.

The bill adopts the definition of ‘public officer’ under the Revised Penal Code-covering all elective and appointive officials, whether permanent, temporary, classified, or unclassified, who receive compensation, even nominal, from the government.

If enacted, the measure will serve as a strong deterrent against corruption and reinforce the principle that government service must be driven by public interest, not private profit.

JAPAN is closely monitoring the Philippine government’s ongoing anti-corruption investigation into flood control projects, a senior official from the Japanese Embassy said.

Naobumi Yokota, Minister for Economic Affairs at the Japanese Embassy in Manila, said that, so far, no Japanese-funded infrastructure projects in the country have been linked to the corruption allegations.

‘Japan continuously reviews the implementation of its Official Development Assistance [ODA] in the Philippines,’ Yokota told members of the Rotary Club of Manila during a regular meeting on Thursday.

President Ferdinand Marcos Jr. earlier revealed that funds intended as the Philippine government’s counterpart for ODA projects were allegedly diverted to budget insertions backed by lawmakers for the 2025 national budget. He warned that some ODA-funded projects could be at risk of cancellation due to the lack of local counterpart funding.

Japan remains the Philippines’ top ODA donor, supporting major infrastructure initiatives such as the Metro Manila Subway and the North-South Commuter Railway.

Yokota said Japan welcomes the Philippine government’s efforts to investigate and address corruption.

He also noted that during a bilateral ministerial meeting held in September, Japan affirmed its commitment to continue supporting ODA projects in the pipeline.

‘We understand that the Philippines is working to reallocate its budget for appropriate use. This will certainly help facilitate the ODA assistance that Japan provides,’ Yokota said.

He added that, to date, Tokyo and other Japanese stakeholders have not raised any concerns regarding the corruption issues surrounding Philippine infrastructure projects.

AFTER nine energy secretaries and six energy regulatory chiefs over the last two decades, the country’s power sector underwent transformative changes, many of which were anchored on major policy reforms.

In brief, EPIRA divided the power industry into four distinct sectors: generation, transmission, distribution, and supply. This opened the sector to private developers, encouraged competition, and enabled much-needed investments in new power projects.

‘EPIRA initiated the restructuring of the electric power industry and the privatization of government interests in the generation and transmission sectors.

The primary objective of these reforms was to foster competition within the generation and supply sectors while enhancing regulatory oversight in the transmission and distribution sectors,’ said ERC Chairman Francis Saturnino Juan.

The RE law, meanwhile, laid the foundation for the clean energy transition. It created a framework of incentives that encouraged private generators to invest in RE. This law, combined with the growing demand for cleaner power, has accelerated the entry of renewable technologies into the energy mix.

In 2024, 794 megawatts (MW) of new renewable capacity were installed. This exceeds the combined total of the previous three years. Today, renewables account for more than 20 percent of installed capacity, and this share continues to grow.

‘Over the past two decades, the Philippine energy sector has taken big strides – EPIRA opened the market, while the Renewable Energy Act enabled clean energy to gain ground,’ commented ACEN Corp. President Eric Francia.

More importantly, the RE law is a move to reduce reliance on imported fuels, a move towards energy transition, Developers of Renewable Energy for AdvancedMent, Inc. (DREAM) President Jay Layug pointed out.

AS trading platform

Aside from EPIRA and the RE law, Meralco PowerGen Corp. (MGen), the power generation arm of Meralco, cited another important development- the launch of the reserve market (RM). This is a trading platform for ancillary services (AS) or power reserves to secure the grid’s stability and reliability.

All of these reforms brought undeniable improvements. ‘They expanded private sector participation, increased generation capacity, and introduced more competitive dynamics,’ said MGen President Emmanuel Rubio.

According to the Department of Energy (DOE), these milestones highlight the progress in advancing market operations in the power sector.

‘The continuous development of WESM and the RM is building a more efficient, competitive, and responsive electricity market, ensuring improved reliability, better price signals, and stronger resource sharing across the country,’ it said.

As of July 2025, the DOE reported that the country’s total installed capacity reached 31,701MW, with a total dependable capacity of 27,812MW. It also recorded 16,783MW from committed power projects and 109,336MW from indicative power projects.

Upgrading the transmission network

IN 2020, a bold policy move from the DOE was the moratorium on new coal power projects. To achieve the 35-percent RE share in the energy mix by 2030 and 50 percent by 2040, the agency had to impose this to transition the country’s power supply away from fossil fuels, aligning with global climate goals.

Likewise, as of July 2025, coal-fired power plants contribute 13,000MW or 41 percent of the country’s total capacity.

The DOE is also the driving force behind another major milestone-the inclusion of nuclear energy in the mix. Recently, the Philippine Atomic Energy Regulatory Authority (PhilATOM) was established, which likewise led to the country’s election to the International Atomic Energy Agency Board. These developments put the country a step closer to realizing its target of 4,800MW of nuclear energy through 2040.

Other developments cited by the ERC over the past 20 years include the awarding of a transmission concessionaire to the National Grid Corporation of the Philippines (NGCP); rate unbundling of distribution utilities (DUs); removal of inter-class subsidies the distribution utilities’ rates; commercial operations of WESM; ERC adoption of Performance-Based Regulation (PBR) for setting the DUs’ rates; introduction of open access and retail competition (RCOA); and implementation of competitive selection process (CSP), among others.

Transmission challenge

When NGCP took over transmission operations in 2009, it was faced with the monumental task of operating, upgrading, and expanding the country’s aging power transmission network.

In just 16 years, NGCP upgraded critical high-voltage transmission lines and substations, resulting in a 167% increase in power delivery capacity, 100% connection of all new power plants, and an 88% increase in generation capacity.

‘Because of NGCP’s drive to strengthen the grid, the company was able to decrease power outages by 84.57 percent, greatly improving the stability and reliability of power delivery across the country,’ it said.

of NGCP’s most notable achievements include the completion of the Mindanao-Visayas Interconnection, which connected the power grids of all three major island groups; the Mariveles-Hermosa-San Jose 500kV transmission line, which further strengthened the reliability of the Luzon power grid; the Cebu-Negros-Panay 230kV backbone, which helped stabilize the power situation in Western and Central Visayas; and the Cebu-Bohol Interconnection, which enabled the transfer of power between the two islands.

With 99 completed projects and a P395-billion investment in the grid, NGCP provided more efficient and reliable transmission services while lowering the company’s part in the electricity bill at just 3.72 percent compared to the 50.1 percent generation charges and 20.67 percent distribution charges.

‘NGCP was able to provide better services and lowered rates-an effective and positive outcome of one of the country’s biggest public-private partnership initiatives,’ the Sy-led firm said.

WESM, RCOA

Notable to the DU’s operations are the establishment of the Wholesale Electricity Spot Market (WESM) in Luzon, Visayas, and Mindanao where electricity prices are driven by supply and demand, as well as the implementation of RCOA which later on formed part of the bigger Competitive Retail Electricity Market (CREM) which now includes the Retail Aggregation Program (RAP) that empowers consumers to choose their own electricity suppliers.

These are among the major transformations that continue to define how Meralco serves its more than eight million customers.

‘This really changed the landscape because it placed consumers at the center and pushed utilities like Meralco to innovate and provide better and more flexible offerings while still ensuring that we live up to our mandate to deliver stable, reliable, and cost-competitive power,’ said Meralco executive vice president and chief operating officer Ronnie Aperocho.

Over the years, the DOE introduced new policies that made the RE law successful by incentivizing RE developers and mandating the use of renewables. ‘We’ve also seen growing interest from households and businesses in solar energy, which Meralco supports through the Net Metering Program,’ which allows customers to install rooftop solar and offset their electricity consumption, Aperocho said.

Through the Renewable Portfolio Standards (RPS), DUs like Meralco are now required to source an increasing portion of their supply from renewables.

Green Energy Auction

Additionally, the Green Energy Option Program (GEOP) has allowed consumers to source their power directly from renewable energy suppliers. Meanwhile, the Green Energy Auction Program (GEAP) has driven even more investment into renewables by providing a market that caters to qualified technologies.

‘In terms of outcomes, many of these reforms and policies have been positive. Competition and market reforms have led to greater transparency, customer choice, and challenged distribution utilities to ensure service quality and efficiency,’ Aperocho added.

With the ongoing transition from centralized to decentralized systems and from captive to contestable customers, Aboitiz Power Corp. has likewise grown in the retail electricity space. By far, it has the highest market share based on demand at 27.27 percent of the total as per the latest ERC data.

The energy sector has indeed made big strides, but with more RE, there is a need for more transmission capacity, AboitizPower noted. The increase in variability also necessitates battery storage systems and reinforces the importance of baseload and flexible generation capacities.

‘Moreover, with the advancement of solar PV, the issue of its footprint on agricultural land has increasingly become more pronounced. With the energy transition in process, the energy sector workforce would also need a more diverse set of talents who can competently meet its evolving demands,’ it said.

Impediments

WHILE renewables are scaling up, ACEN agreed that the challenges in grid stability highlight the urgent need for greater investment in storage and transmission. ‘The next decade holds much promise as the industry accelerates the energy transition and opens the market to broader competition,’ added Francia.

The Independent Power Producers Association (PIPPA) raised similar concerns. ‘There are also operational challenges such as managing constraints for energy storage systems and implementing market interventions when necessary, such as the secondary price cap,’ said PIPPA President Anne Montelibano.

While the price caps are perceived to protect consumers from high WESM prices in the short term, they act as a deterrent for additional investments in generation capacity in the long term. The price caps are not reflective of market conditions that put further pressure on prices in relation to the limited supply.

As structural and market reforms were introduced over the years, consumers still find it hard to feel significant savings.

Consumer group Power for People (P4P) continues to protest the DU’s high electricity rates, which have increased by P3 per kilowatt hour for the past three years. ‘That’s an additional P26 million that consumers are pouring into its coffers every single month today,’ said Gerry Arances, Convenor of the Power for People Coalition.

The group also said there was ‘neglect’ on the ERC’s part for failing to act on the DU’s rate reset for many years.

The ERC chief explained that despite all efforts, his office is still subject to both criticism and commendation. ‘With generation capacity occasionally in short supply, recurring blackouts across the country, and persistently rising electricity prices, despite the restructuring, privatization, and liberalization of the power industry and more than a decade since the ERC’s RCOA declaration, substantial work remains to be done.’

The Sugar Regulatory Administration (SRA) is regulating the entry of imported molasses into the country after the temporary ban it imposed on shipments from abroad is lifted.

SRA Administrator Pablo Luis Azcona said regulating molasses shipments ensures that it would only serve as ‘a stopgap measure’ for beefing up local supply to meet domestic requirements.

‘We have to make sure that the local produce is withdrawn from the sugar mills before we allow importation,’ Azcona told the BusinessMirror on the sidelines of the Senate hearing on the proposed budget of the Department of Agriculture on Wednesday.

The agency had recently issued Molasses Order (MO) 1 which imposed a temporary ban on molasses imports following the surge in shipments from abroad and the spike in local production.

The SRA chief said the unabated entry of molasses shipments created storage problems during milling season.

Prior to MO 1, any trader can bring in imported molasses as the government did not require permits or allocations prior to shipment.

Azcona said the SRA Board is working on Molasses Order (MO) 2, which would outline the rules for importing molasses.

Under the draft order, allocations granted to importers will be based on their purchases of locally produced molasses. This was patterned after Sugar Order (SO) 2 which was issued during crop year 2024-2025.

Under SO 2 or the voluntary purchase program, sugar allocations for eligible entities are based on the raw sugar volume they purchased from local farmers at a premium price.

In return, eligible participants would be prioritized in the government’s future import programs at a ratio of 2 (locally produced raw sugar purchased): 1 (imported sugar).

‘We need to find an objective and performance-based system for giving molasses import allocations. So, there has to be proof of local purchase,’ Azcona said.

‘Once they have proof of local purchase, we will come up with a calibrated formula that has an equivalent import allocation.’

He added that the MO 2 would be released prior to the lifting of the temporary ban on imported molasses, which remains in effect until December 31.

‘We want it to be fair to everyone. So, if you support the local molasses industry, you are allowed to import. We also want a fair and accountable way to do it,’ Azcona said.

Meanwhile, the SRA chief allayed concerns that regulating molasses shipments could put pressure on quotations for animal feeds and pump prices.

‘They can rest assured that won’t happen. We will do our best to prevent shortages because we don’t want that, too.’

He also said that under MO 1, the agency can extend or cut short the temporary ban imposed on molasses shipments.

‘We’re monitoring prices weekly. If we see the need to lift the moratorium, we can stop it anytime to arrest a price increase. But we don’t see that happening yet.’

The SRA recently issued MO 1 after planters, sugar mills, and other stakeholders sounded the alarm over the stock balance of local molasses and the decrease in its millsite prices by 30 percent year-on-year.

Molasses imports for crop year 2024-2025 jumped to 853,285 metric tons (MT) as of end-August, 28 percent higher than the average annual shipments in the three previous crop years.

Local production of the sugar byproduct also rose by 21 percent to 1.18 million metric tons (MMT) in the reference period from 975,934 MT last year. This resulted in a domestic millsite stock balance of 303,961 MT.

‘There is thus a need to impose a moratorium on the importation of molasses, and to revisit and review the policies and practices on the same, if only to ensure a mutually beneficial relationship between the local production and the importation of molasses.’

IN the last 20 years, Philippine foreign policy has been a balancing act-sometimes bold, often reactive, always shaped by the push and pull of domestic politics, economic imperatives, and shifting global tides. From the courtroom victory in The Hague to the diplomatic fallout of the drug war, from Chinese-funded infrastructure to mini-lateral security drills, the country’s external engagements have mirrored its internal contradictions-and the world’s convulsions.

But the stakes have grown sharper. As the rivalry between China and the United States intensifies, the Philippines finds itself caught in the middle-geographically, economically, and strategically. Its location at the crossroads of the South China Sea and the Pacific makes it a critical node in regional security, trade routes, and military logistics. The proximity to Taiwan, just 400 kilometers north of Luzon, adds another layer of urgency. In any future flashpoint, the Philippines is not just a bystander-it’s a frontline state.

Presidents set the tone, but the world sets the tempo

FOREIGN policy in Manila has long been presidential. Gloria Macapagal-Arroyo leaned on Washington for counterterrorism and economic stability, especially in the wake of 9/11. The Philippines was among the first in Southeast Asia to support the US-led ‘War on Terror,’ hosting joint military exercises and intelligence exchanges. Benigno Aquino III took a legalist route, filing the landmark arbitration case against China. Rodrigo Duterte pivoted hard-at least rhetorically-toward Beijing and Moscow, while Ferdinand Marcos Jr. has since tried to recalibrate, restoring predictability with traditional allies while keeping China close for trade and investment.

Each shift came with costs. Projects were renegotiated. Defense postures were reworded. Diplomats had to explain sudden turns in tone. The Department of Foreign Affairs (DFA) often found itself playing catch-up, adjusting to the president’s voice rather than steering a long-term strategy.

Dr. Jay Batongbacal, director of the UP Institute for Maritime Affairs and Law of the Sea, calls this the ‘sakit talaga ng foreign policy natin.’ He explains: ‘It depends on the President. He is considered the sole architect of Philippine foreign policy. It means foreign policy is prone to the personality and personal preferences of the President. There is very little by way of legislation, practice, or custom that moderates the wild swings.’

The Hague ruling: A legal win, but not a strategic shield

IN 2016, the Philippines won big. The Permanent Court of Arbitration invalidated China’s sweeping ‘nine-dash line’ claims, affirming Manila’s maritime entitlements under the UN Convention on the Law of the Sea (UNCLOS). It was a textbook victory for rules-based diplomacy.

But the sea didn’t calm. Chinese coast guard ships continued to harass Filipino fishers. Swarms of militia vessels lingered near contested shoals. The legal win gave the Philippines moral and diplomatic leverage-but without sustained maritime presence, it couldn’t deter gray-zone tactics. Surveillance, patrols, and logistics became the new battlegrounds.

Batongbacal warns against viewing the Marcos recalibration as a radical shift. ‘UNCLOS has always been part of our foreign policy. We’ve always valued our seas. We’ve taken actions to exercise our rights. During the previous administration, it swung wildly to the other way. So pagbalik sa dati [when we try to restore the balance], the other side says we’re being provocative-which isn’t true when you look at it from a longer timeframe.’

Infrastructure diplomacy: Fast money, slow scrutiny

UNDER Duterte, Chinese loans and turnkey projects flooded in-bridges, roads, dams, and railways. The Build, Build, Build program became a showcase of Beijing’s economic clout. But speed came at a price. Some deals lacked transparency. Others triggered environmental and fiscal concerns. Audit reports and Senate hearings exposed gaps in procurement and accountability.

Miriam College President and former DFA Undersecretary Laura del Rosario recalls that this pattern began under Arroyo. ‘There was a shift to the economic aspect, leaning more toward China. That’s why she had plenty of projects-including the Northrail system and ZTE National Broadband Network that were later aborted. The policy wasn’t institutional. It was personality-led, dictated by close aides who had dinner with the Chinese ambassador.’

Del Rosario adds that Aquino’s rejection of China-funded projects wasn’t ideological-it was corrective. ‘He knew people made money from them. When he erased those projects for economic reasons, Scarborough Shoal happened.’

She’s referring to the 2012 standoff, when Chinese and Philippine vessels faced off over the disputed shoal. After weeks of tension, the United States brokered a deal for both sides to withdraw. The Philippines complied. China did not. Manila effectively lost control of the shoal-a turning point that hardened Aquino’s stance and transformed what began as an anti-corruption purge into a full-blown foreign policy shift. ‘So what started as an anti-China project initiative,’ Del Rosario explains, ‘naging anti-China policy because of Scarborough Shoal. Nagkatugma lang ‘yun.’

Defense upgrades: Hardware without staying power

IN recent years, the Armed Forces of the Philippines ramped up its modernization drive-acquiring new ships, aircraft, surveillance radars, and BrahMos supersonic missiles from India. Japan donated patrol vessels. The United States resumed large-scale joint exercises and loaned HIMARS missile systems. Australia, Canada, South Korea, New Zealand, and Japan joined maritime drills, signaling growing regional support for Philippine deterrence efforts.

Experts cautioned, however, that hardware alone doesn’t guarantee readiness. Without long-term sustainment funding, spare parts, and trained personnel, these assets risk becoming static displays. Maritime domain awareness improved on paper, but patrol days remained limited. Coast guard deployments were sporadic, often constrained by fuel budgets and crew availability. Intelligence and deterrence still leaned heavily on allied support. For now, Philippine presence at sea remains more symbolic than strategic.

Pandemic diplomacy and the OFW imperative

COVID-19 turned vaccine procurement into a diplomatic race. Manila negotiated with China, Russia, the US, and COVAX. Consular teams scrambled to repatriate stranded overseas Filipino workers (OFWs). Evacuations from Israel, Libya, and Gaza reminded the DFA that labor diplomacy isn’t just about contracts-it’s about crisis response.

Remittances kept the economy afloat. Protecting OFWs became a non-negotiable foreign-policy priority. Bilateral labor agreements, host-country protections, and digital consular services became central to Manila’s diplomatic toolkit.

The ICC withdrawal: A reputational wound that lingers

IN 2019, the Philippines formally withdrew from the Rome Statute, following the International Criminal Court’s preliminary examination into Duterte’s drug war. The move drew global criticism. Human rights groups called it a retreat from accountability. European partners expressed concern. Training programs and aid became more conditional.

Under Marcos Jr., the government has shown signs of improving its human rights record. But rejoining the ICC remains off the table. The reputational damage hasn’t fully healed. Manila’s moral authority in multilateral forums remains dented.

Global flashpoints, local recalibrations

THE world didn’t wait for Manila to catch up. After 9/11, the Philippines quickly aligned with the United States in counterterror operations-hosting Balikatan exercises, expanding intelligence cooperation, and receiving military aid. That alignment reaffirmed Manila’s strategic value in the Indo-Pacific, but also tethered its security posture to Washington’s global priorities.

Two decades later, the Ukraine-Russia war in 2022 forced another reckoning. The Philippines joined international calls to uphold sovereignty and territorial integrity, condemning the invasion in line with its own maritime claims. But the war also exposed economic vulnerabilities: fuel prices surged, supply chains buckled, and inflation rippled through Filipino households. Global conflict had once again reached local dinner tables.

Then came Israel-Gaza. In 2023, the Philippines abstained from a United Nations resolution calling for a humanitarian truce. Critics argued that Manila’s longstanding support for Israel came at the expense of its credibility on human rights. The abstention reflected a delicate calculus: protect OFWs in Israel, preserve defense ties, and avoid alienating Western allies. After Filipino hostages in Gaza and seafarers in Yemen were released, the government shifted-voting in favor of several UN General Assembly resolutions supporting Palestinian rights. But it stopped short of labeling Israel’s operations as ‘genocide,’ a move seen as calibrated restraint.

The swing revealed the limits of Manila’s moral diplomacy. In a world of hard choices, values often yield to vulnerability. And for a country caught between strategic alliances and economic dependencies, neutrality is rarely neutral.

Minilateralism over multilateral drift

Frustrated by Asean’s glacial pace in negotiating a binding Code of Conduct for the South China Sea, the Philippines began pivoting toward smaller, faster-moving coalitions. Trilateral dialogues with Japan and the United States yielded more tangible results. Joint patrols, status of forces agreements with Japan, Australia, and New Zealand, logistics and access arrangements with Washington, and real-time intelligence sharing proved far more practical than waiting for regional consensus.

Del Rosario sees the shift as symptomatic of deeper contradictions. ‘Thailand leaned toward China quietly for economic reasons,’ she notes. ‘But the Philippines became schizophrenic-economic China, political America. Namamangka sa dalawang ilog.’ Unlike Malaysia or Vietnam, she adds, the Philippines lacks the economic leverage to hedge confidently. ‘That’s why we need to lean more on Japan and Australia. They offer strategic depth without the baggage.’

What’s next: From improvisation to institution

AFTER two decades of tactical wins and strategic gaps, the Philippines stands at a crossroads. Will it continue to improvise-reacting to crises, presidential preferences, and geopolitical shocks-or will it finally build the institutional backbone needed for long-term strategy?

The options are clear. A Strategic Foreign Policy Council could anchor decisions beyond political cycles. A public register of foreign-funded projects would restore transparency and public trust. A sustainment guarantee for defense assets would ensure that modernization isn’t just procurement, but persistence.

Miriam College President and former DFA Undersecretary Laura Del Rosario believes the Department of Foreign Affairs must evolve. ‘Foreign affairs and defense are now intertwined,’ she says. ‘We need thought leaders who understand both. The National Security Council should play a bigger role in shaping foreign policy-not just reacting to it.’

The bottom line

PHILIPPINE foreign policy has weathered legal battles, maritime standoffs, reputational blows, and shifting alliances. It has won in court, lost control of shoals, and stumbled through global crises. The next chapter will depend not on improvisation, but on institution-on whether Manila can turn episodic diplomacy into sustained strategy. Because in the Indo-Pacific, where great power rivalry meets local vulnerability, improvisation is no longer enough.

WHAT started as a conversation last September 30, 2025, at the Asian Institute of Management (AIM) between officials of the Blockchain Council of the Philippines (BCP), the Department of Information and Communications Technology (DICT) and the Department of Public Works and Highways led to the launch of the ‘Integrity Chain.’

The ‘Integrity Chain’ is a blockchain-powered platform designed to embed transparency, accountability and public trust into national infrastructure projects. A Memorandum of Agreement was signed by BCP President Dr. Donald Patrick L. Lim and DPWH Secretary Vince B. Dizon, committing to digitizing and securing key data on selected national projects-such as budgets, procurement processes, and construction milestones-on an immutable blockchain ledger accessible to the public. The DICT was represented by Secretary Henry Rhoel R. Aguda.

As mentioned in the DPWH announcement on its website, the ”Integrity Chain’ aims to transform infrastructure governance by offering a real-time public dashboard that tracks project spending and progress, enabling citizen feedback and anomaly reporting, and providing tamper-proof records to deter corruption.’

In his remarks, Dizon expressed the full support of the DPWH. ‘By placing our foreign-assisted projects-those funded by Official Development Assistance (ODA)-on the ‘Integrity Chain,’ we welcome the scrutiny of the private sector, academe, and civil society.’

Lim, for his part, said: ‘For the first time, the private sector isn’t just demanding integrity-we’re building the infrastructure to deliver it.’

A historic statement of support

THE first ‘Integrity Chain’ briefing was held on September 24, 2025, and was attended and well-received by over 40 presidents and leaders of business, academe, and civic organizations.

The response confirmed the shared belief that blockchain and AI can be powerful tools to restore transparency, accountability, and trust in public governance. This then led to the formal signing of the ‘Statement of Support for the Integrity Chain’ during the launch on September 30, attended by more than 50 organizations at the AIM building in Makati City.

Among those who participated were major international development and lending agencies, including the Japan International Cooperation Agency (JICA), Korean Eximbank, Asian Development Bank (ADB), and the World Bank’s Road Transport and Country Operations. These agencies are key funders of the DPWH’s foreign-assisted flagship infrastructure projects under the ‘Build Better More’ program and implemented by the Unified Project Management Office (UPMO) Clusters. The latter will be the first to be recorded on the ‘Integrity Chain.’

In his statement of support on the DPWH website, Aguda called upon the BCP: ‘Let’s rally behind technology, let’s rally behind doing a new way of governance in the country.’

What’s next?

FOR the pilot, the BCP will provide the DPWH with a one-year complimentary subscription to the ‘Integrity Chain,’ including technical support, training and cybersecurity measures in full compliance with the Data Privacy Act of 2012.

Subsequent meetings will be organized to form the governance team to determine the specific role and commitment that founding organizations would like to take in advancing the ‘Integrity Chain,’ whether as an observer, validator, technical contributor, or partner in transparency.

The Bank Marketing Association of the Philippines (BMAP) is one of the founding organizations.