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By Kenneth Christiane L. Basilio, Chloe Mari A. Hufana and Adrian H. Halili, Reporters
SENATORIAL hopefuls in this year’s Philippine midterm elections will emphasize small business growth, while safeguarding local industries from an impending global trade conflict that endangers economic progress, employment, and wages.
They additionally committed to advocating for more job opportunities and initiatives that would enhance food security in light of surging global prices.
“The answer to that is jobs, jobs, jobs,” stated former Senator and pound-for-pound boxing icon Emmanuel “Manny” D. Pacquiao, who is contesting for a Senate seat on May 12, in a conversation with BusinessWorld in Filipino. “I will advocate for substantial investments in public infrastructure particularly in rural regions and support initiatives for micro, small, and medium enterprises (MSMEs).”
“People require sustainable livelihoods, not just handouts,” he mentioned in a Viber message.
The administration of President Ferdinand R. Marcos, Jr. has fallen short of growth expectations over the last two years, with economic output increasing by 5.5% in 2023 — below the 6-7% target — and 5.6% in 2024, failing to meet the 6-6.5% objective.
Mr. Marcos approaches the latter half of his term this year, three years after promising to rejuvenate an economy impacted by the COVID-19 pandemic, weakened consumption, and diminished agricultural output.
The Philippines is also urged to enhance intra-regional trade as U.S. President Donald J. Trump’s tariffs progressively hinder a global economy that has for years thrived on predictable free trade.
BusinessWorld sought insight from the top 18 senatorial candidates in mid-April regarding critical economic matters, but only Mr. Pacquiao, Las Piñas Rep. Camille Villar-Genuino, former Senator Panfilo M. Lacson, and Party-list Rep. Erwin T. Tulfo responded.
“One of my chief priorities will be to foster inclusive economic development by empowering MSMEs,” Mr. Lacson expressed in a Viber message. “They are facing hardships due to restricted access to capital, bureaucratic obstacles, and rising expenses.”
MSMEs constitute over 99% of all enterprises in the Philippines, account for 67% of the nation’s total employment, and contribute approximately 40% to the gross domestic product (GDP), as stated by the United Nations Development Program.
Mr. Lacson indicated he would advocate for provisions that would streamline business regulations, offer tax benefits, and facilitate access to MSME loans.
At the same time, Ms. Villar stated she would introduce legislation aimed at enhancing the agriculture, manufacturing, and service sectors, while reforms in business regulations and good governance would attract investments.
“The nation must concentrate on three vital areas — boosting competition and global integration, investing in skills development, and fortifying institutions,” she added.
Mr. Tulfo mentioned he would propose initiatives to expand irrigation systems, support the establishment of post-harvest facilities, and provide assistance to local producers, especially in times of crisis.
“We will advocate for the effective enforcement of the Ease of Doing Business law in the country to invite more investments that will create additional jobs for Filipinos,” he noted.
NO NEW TAXES
All four candidates were hesitant to increase or implement new taxes, choosing to focus on enhancing tax collection instead.
“The government should primarily address inefficiencies in tax administration,” asserted Mr. Lacson, who led the campaign against pork barrel funds during his senatorial term before they were deemed illegal by the Supreme Court. He promised to rigorously oversee the government budget if elected senator.
Finance Secretary Ralph G. Recto mentioned last week that the government was not planning to impose new taxes after achieving its revenue targets, with the government amassing P931.5 billion in revenue during the first quarter.
Mr. Tulfo stated he intends to monitor the implementation of the Ease of Paying Taxes Law, ensuring its proper enforcement to improve revenue collection without introducing new taxes.
“I am for the diligent implementation of taxes and honest tax collection, and pursuing those who evade taxes,” Ms. Villar asserted.
“I do not wish to place an additional burden on the impoverished,” Mr. Pacquiao remarked. “Before contemplating new taxes, we must first eliminate corruption and improve tax collection efficiency.”
The senatorial candidates also committed to introducing measures aimed at protecting local industries and promoting industry diversification in response to U.S. President Donald J. Trump’s sweeping reciprocal tariffs.
They indicated that the Philippines should nurture its domestic industries to shield itself from global economic instabilities.
“We truly need to bolster domestic production and trade by supporting our local producers and MSMEs,” Mr. Tulfo remarked.
He mentioned he would convene relevant agencies such as the Trade and Agriculture departments to formulate a strategy that would protect exporters from the impending global trade conflict.
“If we establish reliable commerce within the country, we can replicate that by diversifying our exports to other nations,” he continued.
Mr. Pacquiao emphasized the necessity of investing in sectors where the Philippines excels, such as agriculture, digital services, and creative industries.
“I will advocate for trade diversification and seek improved trade agreements with the Association of Southeast Asian Nations (ASEAN) and Asia-Pacific countries to reduce dependency on U.S.-China markets,” he added.
Mr. Lacson advised that the government should prioritize the passage of a bill that diversifies the nation’s trade and investment partners. “Trade opportunities from underutilized regions such as Southeast Asia, Africa, and Europe should be encouraged through simplified export processes, lower tariffs, and trade agreements,” he added.
“Prior to permitting measures that would liberalize trade restrictions, we must confirm that our own products are globally competitive,” noted Mr. Lacson.
Ms. Villar remarked that the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE Act) would “enhance our capability to attract investors intending to expand or relocate to the Philippines, considering the relatively lower tariffs imposed on our exports to the United States.”
Both Mr. Pacquiao and Mr. Lacson highlighted the importance of promoting renewable energy sources, such as solar, wind, and nuclear power.
The boxing champion suggested that the nation should seriously contemplate establishing nuclear power plants to meet industrial and household power requirements.
Fiber optic technology could revolutionize energy transmission by providing faster, more efficient, and stable energy distribution across the region, he further noted.
“Unlike traditional copper cabling, fiber optics minimizes energy loss, lowers maintenance costs, and enhances overall power infrastructure resilience,” he stated, adding that the country should upgrade its fiber optic networks nationwide to ensure improved connectivity.
ELECTRICITY PRICES
Mr. Lacson advocated for enhancing Filipino farmers’ access to alternative energy sources, while
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tax benefits ought to be granted to renewable energy production firms.
“Legislators can additionally utilize their supervisory authority to examine whether current statutes regarding electric cooperatives are being enforced effectively,” he mentioned. “The Senate ought to advocate for an examination of all additional fees on electricity bills, including contract expenses, universal charges, and system losses.”
Mr. Lacson also recommends imposing a limit on system losses, which are transferred to consumers, to reduce electricity costs.
“As consumers suffer the consequences, power generation companies often become negligent in delivering services. Consequently, we are essentially rewarding them for failing to fulfill their responsibilities,” he remarked.
Mr. Lacson stated that amendments to the Electric Power Industry Reform Act should encompass openness in power supply agreements between distribution and generation firms to avert detrimental pass-through costs to the public.
Ms. Villar intends to lower the “excessively inflated 15% weighted average cost of capital,” which she claims increases electricity expenses.
She also aims to reevaluate all “unjust and deceitful contracts, energy shortages, and postponed transmission projects that directly impact consumers.”
In the meantime, Mr. Pacquiao and Mr. Tulfo intend to revise the Rice Tariffication law.
“Promote local production,” Mr. Pacquiao stated. “I will advocate for a review of the Rice Tariffication law and provide more subsidies to our rice farmers.”
Mr. Tulfo mentioned that reinstating the authority of the National Food Authority to buy and sell rice “will open avenues for lower prices and competition,” as traders and intermediaries continue to manipulate farmgate and retail rates.
Ms. Villar, whose mother was instrumental in the Rice Tariffication law, asserted she would support the appointment of an official tasked with maintaining stable rice prices.
“I am in favor of the appointment of a rice czar who will aid the Agriculture secretary in endeavors to uphold rice pricing,” she stated. “This individual will also oversee the sustainability of rice in the marketplace.”
“I will propose a ‘Farmer First’ law — increased funding for irrigation, mechanization, and farm-to-market routes,” Mr. Pacquiao declared. “We require food terminals and chilled storage facilities so that farmers do not incur losses.”
Ms. Villar mentioned that she would endorse governmental initiatives to modernize agriculture by mechanizing farming processes, enhancing farm and post-harvest infrastructure, improving logistics, and adopting scientifically-based methods.