Integrated geospatial, AI data platform for smarter governance – DOST

The Department of Science and Technology (DOST) is developing an integrated geospatial and artificial intelligence platform that will consolidate its vast datasets to enhance government decision-making, planning and innovation.

Science Secretary Renato Solidum Jr. announced the initiative during the Geospatial Analytics and Technology Solutions (GATES) Program stakeholder conference, where he emphasized that information, particularly geospatial data, is a ‘strategic resource for national development.’

‘It is the foundation for sound decision-making, for responsive governance, and for Agham na Ramdam – science that protects, empowers, and uplifts lives,’ he said.

Through the GATES program, the DOST seeks to harmonize data from its 18 attached agencies, 17 regional offices, and 80 provincial science and technology centers into a single, interoperable system.

These include datasets on food, climate, disaster resilience, infrastructure and health, which will become more accessible and useful across government sectors.

‘With GATES, we are ensuring that the right data is available at the right time, to the right people, powered by the right tools, for science-based planning, research, and innovation,’ said Solidum.

The program features four interlinked projects aimed at strengthening the DOST’s geospatial and AI ecosystem.

DOST Assistant Secretary for development cooperation Rodolfo Calzado Jr. said the initiative will help the agency ‘break silos and strengthen collaboration’ by facilitating data sharing across sectors.

‘GATES operationalizes the National AI Strategy through geospatial intelligence and responsible innovation – building a connected, spatially intelligent DOST and charting a future-ready nation,’ he said.

To further promote a whole-of-nation approach to AI-driven governance and development, the DOST also held the National AI Stakeholders’ Conference from Oct. 13 to 14, 2025.

The event aimed to build a collaborative AI ecosystem that enhances public services and supports industries.

Since 2017, the DOST has been laying the groundwork for an AI-ready Philippines through initiatives such as the DOST Summer School for AI, AI-related R and D projects, and investments in high-performance computing.

Together with the Department of Trade and Industry and the Department of Education, the agency has also supported AI roadmaps and the establishment of the Education Center for AI Research.

‘These efforts form part of a larger vision now taking shape through the National AI Strategy of the Philippines,’ Solidum said, adding that by 2028, the DOST envisions a ‘new Philippines powered by AI – where innovation is inclusive, governance is smarter, and communities are empowered.’

The GATES program supports DOST’s strategic pillars of human well-being, wealth creation, wealth protection, and sustainability, in line with its OneDOST4U campaign: ‘Solutions and Opportunities for All.’

Kathryn Bernardo latest Filipino to get Madame Tussauds wax figure

The Hong Kong branch of Madame Tussauds has tapped actress Kathryn Bernardo to join its hall of celebrity statues, with Bernardo becoming the latest Filipino to get a wax figure.

Madame Tussauds Hong Kong hosts the wax replicas of Filipinos Manny Pacquiao, Pia Wurtzbach and Catriona Gray. A wax figure of Lea Salonga, meanwhile, can be viewed at the Singapore branch on Sentosa island.

Having a statue in Hong Kong hits close to Kathryn’s heart as her 2019 blockbuster “Hello, Love, Goodbye” withh Alden Richards was shot there while its 2024 sequel “Hello, Love, Again”, is currently the highest-grossing Filipino film of all time.

The company also took note of Kathryn’s rise in star power since her start as a child actress, going on to appear in projects like “Mara Clara”, “Got to Believe”, “Pangako Sa ‘Yo”, “The Hows of Us” and “A Very Good Girl”, many of them opposite ex-boyfriend Daniel Padilla.

Forbes Asia recognized Kathryn as one of the most influential celebrities on social media in the Asia-Pacific region in 2020, with her fan base reaching Vietnam, Thailand and South Korea.

In a statement, Kathryn shared that having her own wax figure was a dream come true and expressed her gratitude to the Madame Tussauds Hong Kong team for their trust.

“I’m excited for my fans worldwide to visit and interact with my twin, especially in Hong Kong since it’s such a meaningful milestone for me,” added Kathryn, who had her measurements taken last August.

Wade Chang, General Manager of Merlin Entertainments Hong Kong, noted the value of the Filipino market and praised Kathryn as “an inspiring artist who has worked tirelessly to achieve her success.”

Kathryn’s statue is currently being sculpted and is slated to be unveiled next year, joining the likes of Rihanna, Timothée Chalamet, Chris Hemsworth, Ahn Hyo-seop, Kim Soo-hyun, Bae Suzy and Hyun Bin.

EDITORIAL – Demonetizing not a good idea

One of the most unforgettable pieces of evidence presented of ill-gotten wealth from corruption in the flood-control projects was a photograph of wads upon wads upon wads of ?1,000 bills arranged like blue building blocks on top of a table in a DPWH regional office.

Yes, we all saw it; a physical representation of the wealth that most of us will never earn in our lifetime, or even two or three, and the insatiable greed of some people.

This led to proposals to demonetize ?1,000 and ?500 bills to curb corruption; they assume it will make it inconvenient for contractors to pay government officials or politicians if they don’t have ?1,000 and ?500 bills.

Sure, it sounds like a good idea, but the way we see it, it will be the public and those who don’t engage in corruption who will be more inconvenienced by such a move.

For this piece, let’s limit our argument to the ?1,000 bill only. Let’s be honest about something first; the peso isn’t exactly a strong currency taking into consideration other currencies around the world, and daily transactions here amounting to thousands of pesos are becoming more common.

We are talking about eating out, going for groceries, or even buying fruits in the local talipapa, etcetera. Because of inflation, the ?1,000 bill is no longer as rare as it used to be and is becoming more part of everyday transactions.

So if ?1,000 bills are to be done away with, people will have to bring in their wallets 10 ?100 bills or 20 ?50 bills, or a combination of both denominations. This isn’t only inconvenient, it’s also impractical. It will be like the days of World War II where Filipinos had to bring bags of Japanese ‘Mickey Mouse’ money because of its low value.

Let’s also not forget that, like everyday purchases, transactions involving corruption can be done via bank transfer or other cashless means. No physical cash actually has to change hands for a transaction to be made. As they say: If there’s a will, there’s a way. So why target the bills of larger denominations?

There are many ways to curb corruption, but demonetizing ?1,000 and ?500 bills isn’t the way to go and may cause more harm than good.

Supreme Court pressed to act on P89.9-B PhilHealth fund transfer case

Former Bayan Muna representatives have asked the Supreme Court to immediately decide on consolidated petitions questioning the transfer of P89.9 billion in excess funds from the Philippine Health Insurance Corp. (PhilHealth) to the national treasury.

In a Motion to Resolve filed on Wednesday, October 21, former lawmakers Neri Colmenares, Ferdinand Gaite and Carlos Isagani Zarate urged the high court to rule on the merits of the petitions and issue ‘constitutional guidelines’ to prevent similar budgetary irregularities in the future.

‘Petitioners most respectfully pray that the consolidated petitions be immediately resolved on the merits and that the Court issue constitutional guidelines to ensure a budgetary process that abides by the 1987 Constitution,’ the motion read.

The petitions challenge what the group described as ‘questionable budgetary practices’ involving the transfer of government-owned and -controlled corporations’ reserve funds to the national treasury for unprogrammed appropriations.

Call for constitutional clarity

Bayan Muna said that despite President Ferdinand Marcos Jr.’s decision to return P60 billion of PhilHealth’s excess funds to the state insurer, the lack of clear constitutional parameters could still allow ‘unconstitutional and illegal acts’ to recur in future budget cycles.

‘Even if public outrage deters such abuses for the 2026 GAA, the absence of defined parameters invites similar tactics in future GAAs once attention and anger subside,’ the group said.

The petitioners also asked the high court to define:

The limits of presidential certification of urgency;

The prohibition against amending bills already approved on third reading by a small committee; and

Whether the bicameral conference committee can insert new or unapproved items into the budget.

They further sought clarification on whether Congress can reclassify unprogrammed appropriations to increase the national budget beyond constitutional limits.

PhilHealth, PDIC fund transfers

The Bayan Muna petition is part of consolidated cases pending before the Supreme Court questioning the legality of transferring P89.9 billion from PhilHealth and P106 billion from the Philippine Deposit Insurance Corp. (PDIC) to the treasury.

The high court issued a Temporary Restraining Order (TRO) in 2024, halting the transfer of the remaining P29.9 billion after the first P60 billion had already been remitted earlier that year.

Previous transfers included P20 billion on May 10, P10 billion on August 21, and P30 billion on October 16, 2024.

Oral arguments began on February 21 and concluded on April 3 this year.

Phinma Properties gears up for aggressive expansion

Phinma Properties, the residential arm of the Del Rosario family’s Phinma Group, is gearing up for an aggressive expansion to provide more Filipino families with affordable and accessible homes, with plans to match the number of units it has built in nearly four decades over the next 10 years.

‘What we’ve done from 1987 to 2024, I want to do exactly the same number in 10 years. That is my personal ambition,’ Phinma Properties president Raphael Felix told The STAR.

Since 1987, Phinma Properties has built over 22,000 units, serving families across 32 communities in 15 cities and municipalities.

The company is set to come up with a five to 10-year plan, which will map out its medium to long-term expansion targets.

‘It really situates us to do more. It goes beyond home building. It’s home building, community development and urbanizing correctly,’ Felix said.

‘Our long-term vision is guided by a simple principle: to build communities that make life better and more dignified for Filipino families. It’s less about size or numbers and more about the kind of impact we create through our developments. Of course, as we multiply our communities, we also multiply that impact – reaching more families, creating more opportunities and helping shape more livable cities across the country,’ he said.

Over the years, Phinma Properties has expanded its presence nationwide, transitioning from vertical residences to holistic communities.

At present, Felix sees the Subic-Clark corridor all the way to Batangas City as an area that poses a significant opportunity for expansion.

‘It will still be a growth driver all the way to 2050 and even beyond,’ he said.

Felix said the company also continues to strengthen its presence in the cities where it already has a footprint like Cebu, Davao, Batangas and Bacolod by growing its existing communities.

‘Rather than aggressively entering new locations, our strategy is to deepen our roots where we’ve built trust – expanding responsibly within these growth centers and enhancing the quality of life for the families who live there,’ Felix said.

‘We’ve also reactivated Phinma Community Housing, our platform dedicated to serving low-income wage earners and the underserved market, reaffirming our long-standing mission of making lives better through shelter,’ he said.

Phinma Community Housing aims to help address the country’s huge unmet need for dignified, affordable shelter for underserved markets.

Phinma Community Housing targets to break ground on its first housing project in Davao within the fourth quarter.

‘By continuing to grow across different market segments – from community housing to masterplanned townships – we’re creating a sustainable, inclusive pipeline that mirrors how Phinma defines progress: growth that uplifts everyone,’ Felix said.

In terms of products, Felix said that Phinma Properties is focusing on refining its current product offerings to serve Filipino families better instead of chasing new formats.

Phinma Properties has recently expanded into new segments through Saludad, which introduced commercial lots and retail spaces alongside its residential developments.

Saludad township in Bacolod marks Phinma Properties’ entry into mixed-use and township development, allowing the company to build more complete and self-sustaining communities.

International Series Philippines: Major champs eye domination as home bets hopes aim to break through

The International Series Philippines blasts off Thursday, October 23, at the Sta. Elena Golf and Country Club in Laguna, setting the stage for a thrilling showdown between the game’s global giants and the country’s most promising talents.

At the heart of this $2-million championship lies a compelling narrative: the collision of decorated champions and hungry underdogs, a classic case of power and pedigree facing off against pride and passion.

Among those drawing the spotlight is Miguel Tabuena, the country’s top golfing export. A two-time Philippine Open champion and seasoned international campaigner, Tabuena finds himself in rarefied company, grouped alongside two of the sport’s most recognizable names – Dustin Johnson, the 2016 US Open and 2020 Masters champion, and Louis Oosthuizen, the 2010 Open Championship winner.

It’s a career-first for Tabuena, teeing it up directly against a former world No. 1 and No. 4, and while the mere thought may rattle even the most seasoned of nerves, the Filipino ace is channeling the moment into motivation.

‘It means a lot,’ said Tabuena. ‘This is what I have been dreaming off, to play in my home country with the best players.’

Their highly anticipated clash begins at 11:40 a.m. off the first tee, marking one of the marquee matchups of the opening round in what’s billed as one of the most star-studded golf events ever staged in the country.

For the elite international cast, including Patrick Reed, another Masters champion (2018) who’s in top form following a win at LIV Golf Dallas and a runner-up finish at the International Series Macao, the mission is clear: conquer Sta. Elena, and solidify their path to next season’s LIV Golf League.

Reed, the highest-ranked player in the field this week at No. 46, kicks off his bid just ahead of the Tabuena-Johnson-Oosthuizen trio, alongside Dean Burmester and John Catlin forming yet another star-packed group for fans to follow.

And then there’s Johnson – a name synonymous with distance and dominance. The long-hitting American, who once held the world No. 1 spot for 64 consecutive weeks, is expected to treat Sta. Elena’s long par-4s and reachable par-5s as his personal playground.

With the course meticulously prepped to championship standards, Sta. Elena promises to offer a true test – but for players of Johnson and Oosthuizen’s caliber, even the sternest challenges can be dissected with clinical precision.

‘There’s nothing like seeing how major champions strategize and execute up close,’ said a former Filipino pro. ‘They bring an entirely different level of consistency and mental strength.’

While the spotlight may shine brightest on the visiting stars, local hopefuls are determined to rise above the shadows and put on a show of their own.

Keanu Jahns, enjoying a stellar season on the Philippine Golf Tour with two wins and a couple of top finishes, leads off the action at 6 a.m., hoping to set the tone against China’s Zihao Jin and Thailand’s Sinsrang Witchayapat.

Carl Corpus, Sean Ramos, Aidric Chan, Rupert Zaragosa, Clyde Mondilla, Justin Quiban and veteran Angelo Que – all familiar names in the Philippine golf circuit – will also be gunning for strong starts. Their mission? To not only make the cut, but to contend and perhaps even shake up the leaderboard.

Jitters are natural. After all, many of these players grew up watching the likes of Johnson and Reed on TV. But with home-soil knowledge, crowd support and a fearless mindset, the locals are embracing the challenge.

Tabuena, in particular, made the decision to withdraw from the Macao Open after an opening-round 72 – an intentional move to focus all energies on this week’s massive task.

As excitement grips Sta. Elena and anticipation builds among fans and players alike, the International Series Philippines is shaping up to be more than just a tournament – it’s a moment of reckoning, a celebration of golf’s global appeal, and a test of heart, talent and resolve.

While the odds favor the major winners, golf’s unpredictability leaves room for surprises. A single round can shift momentum. A bold putt, a brave approach or a magical recovery shot can tilt the scales.

One thing is certain: history is in the making at Sta. Elena.

Taking care of the oldies

A relative who had worked in the United States but decided to go back to Manila is living off her monthly social security pension. She couldn’t live off that pension in the United States. How she manages to survive here with it, is a mystery to me.

The last time I checked my account, my monthly SSS pension has increased but it still barely covers the cost of my prescription maintenance medications. It will probably cover my annual abdominal ultrasound test.

This is why 15 years after I have officially retired from my main job, I still work. I feel so blessed by our Lord that He guided me to save some during my working years to cover the costs of getting old.

But most senior citizens in our country today are left with too little resources to cover the increasing costs of living. Essentially, the biggest worry for those in my generation is getting very sick and not being able to afford the cost of the pay-as-you-go system in our for-profit hospitals.

These morbid thoughts about the economic costs of aging were sparked by an article last week that declared the Philippine pension system as the third worst in the world. That’s according to the 2025 edition of Mercer CFA Institute’s Global Pension Index.

Our grade improved to 47.1 in 2025 from 45.8 in 2024, way below the 64.5 global average. Last year, the Philippines’ pension system was also the third worst out of 48 systems.

And here’s the kicker: The Philippines was the only economy in the integrity sub-index that had an ‘E’ grade, which indicates ‘a poor system that may be in the early stages of development or nonexistent.’

The Mercer CFA Institute report said the Philippine pension systems could be improved if the minimum level of support for the poorest elderly is increased and the benefits are aligned with the country’s cost of living. Sounds reasonable but nothing that we can expect soon.

It also said the Philippines’ requirements for vesting in private sector plans should be improved.

Speaking of pensions, Duterte only took care of the military and the police when he increased their pensions and indexed it to current salaries of serving personnel. That’s obviously because he was buying the support of the folks who have guns and have in the past, overthrown governments.

The budget for military and uniformed personnel (MUP) pensions is rising significantly, with a proposed 2026 allocation of P216.54 billion, which is up 50 percent from the previous year.

Unlike private sector workers and other government employees, MUPs do not contribute to their pension fund. Costs are entirely shouldered by taxpayers.

Indexing the retirees’ benefits to active personnel’s salaries, which averaged P335 billion annually from 2019-2022, has made the pension cost a growing fiscal burden.

The Department of Finance noted that the MUP pension was 80 percent of expenditures for active-duty personnel services in 2022. That’s almost like having double our MUP personnel count with only half working.

We are not saying the MUPs do not deserve their comparatively generous pensions. Indeed, the indexation, for instance, recognized a need that should have also been recognized for other government workers.

That the MUPs are the only ones who do not contribute to their pension plan is a sour point that has also made it financially unsustainable. Because it is an unfunded liability, the finance department has warned that failing to reform it could lead to a fiscal collapse or jeopardize the country’s investment-grade rating.

Unfortunately, Duterte placed all future administrations in a bind. It will be difficult and dangerous to take back benefits already given, especially because the affected groups have control of the national armory.

Without diminishing the worthiness of the MUPs to enjoy their generous pensions, who is to say that the public school teachers are less worthy to enjoy a similar one? The danger of Duterte playing favorites will be for future generations to live with.

As for the rest of the oldies struggling with financial challenges at a time of diminished economic earning capacity, they also deserve the government’s special concern beyond the patronage ayudas.

One government agency with a plan to help members save for old age is the Pag-IBIG Fund. The fund is supposed to help members get proper housing, but it has the voluntary Modified Pag-IBIG 2 (MP2) savings program.

For 2024, the Pag-IBIG MP2 savings program paid an annual, tax-free dividend rate of 7.10 percent. This was a slight increase from the 7.05 percent rate in 2023 and the 7.03 percent in 2022.

The rate is not guaranteed and varies each year based on the fund’s financial performance. This allows members to grow their funds, with the total accumulated value being refundable upon retirement.

Pag-IBIG’s MP2 has shown pretty good performance that can compete with what private sector fund managers like insurance mutual funds offer. But it seems to be a well-kept secret and the Pag-IBIG Fund should publicize it more. Again, it’s tax free.

The SSS has a similar plan called Workers’ Investment and Savings Program (WISP) Plus and the Personal Equity and Savings Option (PESO) Fund. Those in the middle class now in their 40s should consider savings plans like these so they won’t have to worry about sliding to poverty in their older years.

And for seniors who choose to continue working, a lifetime exemption from income and other taxes is a reasonable way to recognize their contributions to society and the economy. Senior citizens discounts are peanuts and not really demonstrative of the government’s appreciation of their contributions to society.

There are supposed to be representatives of senior citizens sitting in Congress as party-list members. Unfortunately, they aren’t innovative nor caring of their constituents. It is time for them to show they are worth their seats.

llagan feted as ‘Most Business Friendly’ city

Be it in sports, tourism, agriculture and business, the City of Ilagan has continued to make its mark.

Just a year after being named as the sports tourism hub of the north and third overall throughout the country, Ilagan has added another feather to its cap by being awarded the Most Business Friendly for the second straight year from among Level 2 of Local Government Units in the just-concluded 51st Philippine Business Conference and Expo.

Ilagan City was chosen from among the cities, which belong to the first and second class component cities, but the Corn Capital of the Philippines was adjudged as the winner in Level 2 for the second straight year, besting the other finalists that included the City of Biñan, City of Calamba, City of Legazpi and City of Tarlac.

By winning the most prestigious awards being handed out by the leaders in the business industry, the City of Ilagan is just one title away from becoming a Hall of Famer, which put this hotbed of agriculture, sports and tourism on track of its aspirations of being the livable city by 2030.

‘This is a validation of the efforts of our LGU in terms of business-matching in encouraging our investors. The impact of this award is huge because local, multi-national and international investors will be more attracted in making an investment in the City of Ilagan, Isabela,’ said Mayor Jay Diaz, who received the award on stage.

Diaz credited the support he received from Ricky Laggui, the city’s head of the general services division, Executive Secretary Lucas Bersamin, Department of Information and Communication Technology Secretary Henry Rhoel Aguada and Dennis Uy, chief executive officer of Converge ICT and chairman of the 51st Philippine Business Conference and Expo.

Sports is one of the areas where the city has been making its mark.

Since the completion of the 10,000-seater Capital Arena early this year, the city was able to host major sporting events, among them include the preseason game of the PBA between Rain or Shine and Meralco, and brought to the people of the Cagayan Valley some of the games in the Premier Volleyball League where teams like Creamline, Choco Mucho, Farm Fresh, PLDT, Chery Tiggo, Petro Gazz and Galeries Tower were able to take part.

International events such as the upcoming East Asia Super League and The Asian Tournament as well as the Bakbakan Sa Ilagan boxing event were also some of the sporting landmarks the city was able to stage.

On the tourism side, the city is vying for the Asean Clean Tourist City award.

The latest feat as champion of Level 2 in the 51st PBC and E for the second straight year, capped another big year for Ilagan City.

‘More than the accolade and the award, we were able to uplift our fellow Ilaguenos in making Ilagan a livable city in 2030. We are trying to increase our purchasing power and strengthen our pillars in making Ilagan as a city with a robust economy,’ added Mayor Diaz.

Trillanes: Garma ICC testimony to proceed

Retired police colonel Royina Garma will push through with her testimony against former president Rodrigo Duterte before the International Criminal Court (ICC), former senator Antonio Trillanes IV said yesterday.

In an interview with ‘Storycon’ on One News yesterday, Trillanes said Garma would not be affected should the Interpol issue a red notice against her.

Garma has arrived at her ‘final destination’ and is under the protection of the ICC, he said.

‘The ICC itself will take care of lifting (the red notice) through Interpol,’ Trillanes said.

While Garma is not in ICC custody, Trillanes said she qualifies for the court’s witness protection program.

‘She’s not necessarily under ICC safekeeping, but it has a witness protection program where they constantly monitor and assess the witness’ situation. If relocation is needed, they will facilitate it,’ Trillanes explained.

She is expected to testify in Duterte’s crimes against humanity case that stemmed from his war on drugs.

Asked about the possibility of arrest warrants for Senators Ronald dela Rosa and Bong Go, Trillanes said it is only ‘a matter of time.’

‘Based on the information we have, Dela Rosa will be the first. It’s a waiting game now,’ he said. ‘As for Go, maybe early next year.’

Garma is facing murder charges for the killing of Philippine Charity Sweepstakes Office board secretary Wesley Barayuga in 2020.

On Oct. 16, a Mandaluyong court ordered the Department of Foreign Affairs to cancel Garma’s passport.

Another corruption scam exposed

There seems to be no end to the corruption scams unravelling in government. We’ve all heard about the flood control scams that lawmakers and their contractor cohorts have feasted on. This time, let me shine the light on another racket raging in government – cigarette smuggling.

Over the last three years, government has lost tens of billions in excise tax revenues from cigarette smuggling. The numbers are staggering – collections peaked at P176 billion in 2021 and plunged to just P134 billion by 2023 – that’s a P40-billion free fall due to smuggling. Collections continue to drop until today.

Why is this relevant? Because excise taxes fund the country’s Universal Health Care program. The less funds collected, the less funding for UHC.

For 2025, the cumulative shortfall in the Universal Health Care funding is projected to reach P123.7 billion. For context, this amount can buy two million hospital beds, enough to ease the national shortage. It could build and upgrade hundreds of rural health centers or subsidize PhilHealth premiums for millions of indigent families.

When Congress passed the Sin Tax Reform Law of 2012, it was hailed as both an economic and public-health triumph. On one hand, it discouraged tobacco consumption – while on the other, it raised funds for both PhilHealth’s USC program and DOH’s Health Facilities Enhancement Program (HFEP). It was a win-win situation.

Between 2012 and 2018, the programed worked well, helping to quadruple the DOH’s budget. The increase in funding enabled PhilHealth to expand medical coverage to millions of Filipinos who could never afford hospitalization. Simultaneously, the ‘price shock’ from higher cigarette prices pushed adult smoking prevalence down from 31.0 percent in 2008 to 18.5 percent by 2021.

Then came the criminal syndicates.

As excise taxes increased, cigarette prices jumped to P100+ per pack. Smugglers found an opportunity. They began to import cheap cigarettes without paying appropriate taxes, enabling them to flood sari-sari stores with chemical-laced cigarettes retailing for as low as P40 a pack.

Government and industry estimates now place the illicit-trade share of smuggled cigarettes at 18 to 20 percent of all cigarettes sold nationwide. Every stick that escapes taxation is a peso stolen from UHC. The Bureau of Internal Revenue (BIR) estimates that up to P40 billion to P60 billion a year vanish into the black market.

This is not petty smuggling – this is institutional-scale economic sabotage. Behind counterfeit tax stamps and hidden warehouses are the same criminal networks that traffic drugs, weapons and other contraband. They siphon billions meant for health care into the coffers of organized crime.

The repercussions

Smuggling has undone decades of progress. Taxes meant to save lives are leveraged by criminal elements while government watches on the sidelines, doing little to arrest the problem. Ordinary Filipinos pays the price. Consider these figures:

PhilHealth budget cuts. In 2023, PhilHealth’s allocation stood at P100.2 billion. By 2024, it was slashed to just P61.5 billion due to a shortfall in excise tax collections.

DOH programs stalled. HFEP funds used to upgrade provincial hospitals and purchase essential equipment were drastically reduced. As a result, dialysis slots are now rationed in DOH hospitals. Provincial health centers run out of cancer medications halfway through the year. Poor municipalities are left with crumbling wards and outdated machines. Rural clinics still lack doctors.

Household burden rising. As public funds shrink, out-of-pocket expenses for ordinary Filipinos soar. As it stands, Filipinos already shoulder one of the highest health care spending-to-income ratios in ASEAN. This is because when government subsidies retreat, medical spending, debt and untreated illnesses follow.

Cheap, illegal cigarettes have made smoking accessible again to the young. According to the 2023 National Nutrition Survey, smoking among adolescents doubled from 2.3 percent in 2021 to 4.8 percent in 2023. Among adults, prevalence rose from 18.5 to 23.2 percent within two years. Illicit cigarettes, typically sold without graphic health warnings and tax stamps, now sit beside candies and soft drinks in public markets and sari-sari stores. Many contain unregulated chemical mixtures far more toxic than legal products.

What can be done?

Tighten enforcement. The BIR and Bureau of Customs must be empowered to deploy digital tracking, increase field inspections and tighter coordination with the PNP and LGUs. Confiscations alone will not suffice – supply-chain reforms are key.

Increase penalties. The cost of getting caught must outweigh the gains for the smuggler, the retailer and the user. Illicit-trade profiteers should face economic-sabotage charges, not token fines.

Regulate new nicotine products. Vape and heated-tobacco products are the next frontier of tax evasion. The law must keep pace with technology.

Sustain public education. Youth smoking spike is reversible if government and civil society reclaim the narrative with science-based campaigns.

Above all, political will is non-negotiable. The same vigor shown in taxing honest businesses must be applied to dismantling syndicates that rob us blind.

The illicit-tobacco trade steals from the poor twice. First by luring them into addiction through cheap cigarette prices, then by draining the fund that could pay for their cure. Every smuggled pack is a hospital bed lost, a cancer patient denied medicine and a community health worker left unpaid.

The health of a nation cannot depend on the mercy of smugglers. If we fail to plug this leak, the promise of health for all will continue to elude the Filipino, gasping for air amid the smoke of smuggled cigarettes.

The sin-tax system was one of the few public-finance reforms that worked. To allow its collapse by corruption will solidify the notion that this administration is one where public theft and economic sabotage are the norm.

Now that this scam is exposed, we will watch what the Bureau of Customs, the BIR, the Department of Health and Anti-Corruption Commission will do next.