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There are a number of good business and economic news recently. From The Philippine STAR, “Marcos backs ASEAN non-retaliatory stand on tariffs” (May 27), “Budget surplus at P67 billion in April” (May 28).
From BusinessWorld, “GOCC dividends seen topping 2024 collections” (May 21), “Bataan-Cavite Interlink bridge construction expected soon” (May 26), “PHL-Canada to conduct exploratory talks for a bilateral FTA in June” (May 26), “Air passenger volume up 10.9 percent in 1st quarter” (May 27), “PHL eyes more investments from UAE sovereign wealth funds” (May 28).
From those reports and related stories I put forward these 10 proposals, some old and some new. Secretary Frederick Go has also articulated some of these proposals during his keynote speech at the BusinessWorld Economic Forum last week May 22 held at Grand Hyatt BGC. I like the opening remarks by Mr. Miguel Belmonte, president and CEO of The STAR and BusinessWorld where he mentioned that “the private sector drives momentum and serves as primary engine of economic growth, job creation and innovation in the country.”
One, move toward more free trade agreement (FTA) or Comprehensive Economic Partnership Agreement (CEPA) with more countries outside ASEAN. The Philippines-United Arab Emirates (UAE) CEPA is expected to be signed next month. It will be the Philippines’ first FTA with a Middle Eastern country and member of the Gulf Cooperation Council (GCC). UAE has its own sovereign wealth funds (SWF) and it is very rich, managing $2.39 trillion as of May 2025.
Two, fiscal consolidation toward lower budget deficit. April of each year is fiscal surplus always due to income tax deadline, except during 2020-2021 lockdown period where revenues were down while expenditures were high. April 2025 saw a huge budget surplus of P67.3 billion, second highest in history after April 2019 surplus of P86.9 billion, and April 2023 was third highest at P66.8 billion.
Three, control national government (NG) subsidies as local governments share in taxes keep rising, they can continue the subsidies in their localities. Some subsidies and freebies made during lockdown 2020-2021 are still continued and it is 2025 already. Allocation to LGUs of P48 billion in April 2019 has doubled to P93.1 billion in April 2025, and NG disbursements also doubled during that period when it could have pulled back, the population did not double within six years.
Four, continue raising more non-tax revenues like higher remittances by government-owned and controlled corporations (GOCCs) to the national treasury. In 2024, the Department of Finance (DOF) under Secretary Ralph Recto collected P138.5 billion from GOCCs and in January-May 2025 the DOF has already collected P76 billion. Implying that full year 2025 remittances by GOCCs would be much higher than 2024 level.
Five, GOCCs that cannot give big enough yearly, if not losing, should be privatized. Privatization revenues in April 2019 was P2.3 billion while in April 2025 it was only P0.16 billion.
Six, explore the possibility to securitize the long term privatization of NAIA land itself at 646 hectares, Bilibid Prison land in Las Piñas with about 400+ hectares and Iwahig Colony in Palawan with about 14,000 hectares. These three big government lands can fetch no less than P10 trillion value some 10 years from now.
Seven, all revenues from privatization should be used entirely to retire some maturing public debt and not earmarked to any agency or any subsidy program. We should bring down our debt/GDP ratio to below 45 percent by 2028.
Eight, the mining tax can greatly help raise more revenues especially from gold-producing mining companies. Recent rise in gold prices is almost hyperbolic, from $2,000/oz in January 2024 to current prices of $3,300/oz, and projected to further rise to $4,000, even $5,000 in the next two years.
Nine, infrastructure spending should go for connecting islands with bridges. The Cavite- Corregidor-Bataan Bridge spans 32 kilometers and construction will start next month, then the Panay-Guimaras-Negros Bridge, also 32 kilometers and construction to start in July 2026. Then the Batangas-Mindoro bridge, Aklan-Boracay Bridge, and so on.
The proposed Accelerated and Reformed Right-of-Way (ARROW) bill should become a law soon to facilitate more big infrastructure projects. There are 212 flagship projects worth P9.8 trillion.
Ten, amending the Investors’ Lease Act, move from 25 years to 99 years lease, in order to attract more big and long-term investments.
There are a number of good business and economic news recently. From The Philippine STAR, “Marcos backs ASEAN non-retaliatory stand on tariffs” (May 27), “Budget surplus at P67 billion in April” (May 28).
From BusinessWorld, “GOCC dividends seen topping 2024 collections” (May 21), “Bataan-Cavite Interlink bridge construction expected soon” (May 26), “PHL-Canada to conduct exploratory talks for a bilateral FTA in June” (May 26), “Air passenger volume up 10.9 percent in 1st quarter” (May 27), “PHL eyes more investments from UAE sovereign wealth funds” (May 28).
From those reports and related stories I put forward these 10 proposals, some old and some new. Secretary Frederick Go has also articulated some of these proposals during his keynote speech at the BusinessWorld Economic Forum last week May 22 held at Grand Hyatt BGC. I like the opening remarks by Mr. Miguel Belmonte, president and CEO of The STAR and BusinessWorld where he mentioned that “the private sector drives momentum and serves as primary engine of economic growth, job creation and innovation in the country.”
One, move toward more free trade agreement (FTA) or Comprehensive Economic Partnership Agreement (CEPA) with more countries outside ASEAN. The Philippines-United Arab Emirates (UAE) CEPA is expected to be signed next month. It will be the Philippines’ first FTA with a Middle Eastern country and member of the Gulf Cooperation Council (GCC). UAE has its own sovereign wealth funds (SWF) and it is very rich, managing $2.39 trillion as of May 2025.
Two, fiscal consolidation toward lower budget deficit. April of each year is fiscal surplus always due to income tax deadline, except during 2020-2021 lockdown period where revenues were down while expenditures were high. April 2025 saw a huge budget surplus of P67.3 billion, second highest in history after April 2019 surplus of P86.9 billion, and April 2023 was third highest at P66.8 billion.
Three, control national government (NG) subsidies as local governments share in taxes keep rising, they can continue the subsidies in their localities. Some subsidies and freebies made during lockdown 2020-2021 are still continued and it is 2025 already. Allocation to LGUs of P48 billion in April 2019 has doubled to P93.1 billion in April 2025, and NG disbursements also doubled during that period when it could have pulled back, the population did not double within six years.
Four, continue raising more non-tax revenues like higher remittances by government-owned and controlled corporations (GOCCs) to the national treasury. In 2024, the Department of Finance (DOF) under Secretary Ralph Recto collected P138.5 billion from GOCCs and in January-May 2025 the DOF has already collected P76 billion. Implying that full year 2025 remittances by GOCCs would be much higher than 2024 level.
Five, GOCCs that cannot give big enough yearly, if not losing, should be privatized. Privatization revenues in April 2019 was P2.3 billion while in April 2025 it was only P0.16 billion.
Six, explore the possibility to securitize the long term privatization of NAIA land itself at 646 hectares, Bilibid Prison land in Las Piñas with about 400+ hectares and Iwahig Colony in Palawan with about 14,000 hectares. These three big government lands can fetch no less than P10 trillion value some 10 years from now.
Seven, all revenues from privatization should be used entirely to retire some maturing public debt and not earmarked to any agency or any subsidy program. We should bring down our debt/GDP ratio to below 45 percent by 2028.
Eight, the mining tax can greatly help raise more revenues especially from gold-producing mining companies. Recent rise in gold prices is almost hyperbolic, from $2,000/oz in January 2024 to current prices of $3,300/oz, and projected to further rise to $4,000, even $5,000 in the next two years.
Nine, infrastructure spending should go for connecting islands with bridges. The Cavite- Corregidor-Bataan Bridge spans 32 kilometers and construction will start next month, then the Panay-Guimaras-Negros Bridge, also 32 kilometers and construction to start in July 2026. Then the Batangas-Mindoro bridge, Aklan-Boracay Bridge, and so on.
The proposed Accelerated and Reformed Right-of-Way (ARROW) bill should become a law soon to facilitate more big infrastructure projects. There are 212 flagship projects worth P9.8 trillion.
Ten, amending the Investors’ Lease Act, move from 25 years to 99 years lease, in order to attract more big and long-term investments.
One thing I notice with some DPWH projects is that they destroy non-ugly roads and replace with “new roads” on the same spot, no lengthening or expansion, nor widening of the road, then declare it as “new infra spending.”
Instances like that I wish that DPWH can be abolished along with their regional offices, all big infra projects be done via public-private partnerships (PPP) while all small and local infra projects should be done by LGUs, their budget be raised from savings of devolved DPWH budget.
Many other national agencies can be abolished along with their regional offices, their functions be devolved to LGUs. This will not eradicate waste and corruption but this will help control and minimize waste as some LGUs will be serious in developing their localities as LGUs go into infra competition, peace and order competition, power supply competition with each other.
This is easier said than done as this will require legislation but the idea of incentivizing LGUs competition and reducing national agencies inefficiencies should be explored. Then Budget Secretary Amenah Pangandaman and her successors will have less headache pandering to various agencies and legislators.
