Senators' bets drive growth of MSME and protect local sectors from tariffs

go through Kenneth Christiane L. Basilio, Chloe Mari A. Hufana and Adrian H. Halili, reporter

Senate candidates in the Philippines midterm elections this year will prioritize small business development while buffering local industries for the looming global trade war, putting economic growth, employment and wages at risk.

They also vow to push more work and measures to improve food security amid rising global prices.

“The solution is to work, work, work, work,” Emmanuel “Manny” D. Pacquiao, a former Senator and heavy-weight boxing camp, ran for the Senate on May 12 BusinessWorld in the Philippines. “I will promote large-scale investment in public infrastructure, especially in rural areas, and provide support programs for micro, small and medium-sized enterprises (MSMEs).

“People need livelihoods, not just phase-outs,” he said in a Viber message.

President Ferdinand R.

Mr. Marcos will enter the second half of his term in the second half of this year, three years after pledging to revive the economy weakened by the 199 pandemic, gentle consumption and lower farm output.

As tariffs by U.S. President Donald J. Trump increasingly hinder the wheel of the global economy, the Philippines has been oiled by predictable free trade for decades, and the Philippines is under pressure to increase intraregional trade.

BusinessWorld Comments were sought in mid-April about the top 18 senators’ bets on major economic issues, but only Mr. Pacquiao, Rep. Camille Villar-Genuino, former Senator Panfilo M. Lacson and party Rep. Erwin T. Tulfo answered.

“One of my top priorities is to drive inclusive economic growth by enhancing MSMES,” Laxon said in a Viber message. “They are struggling because of limited access to capital, traditional tape festivals and rising costs.”

Under the UN Development Plan, MSMES accounts for more than 99% of all operations in the Philippines, 67% of the country's total employment and contributes about 40% to gross domestic product (GDP).

Mr Laxon said he will take steps to simplify business rules, provide tax incentives and easily obtain MSME loans.

Meanwhile, Ms. Veral said she will submit bills to try to promote agriculture, manufacturing and services sectors, while reforms in business regulation and good governance will help attract investment.

She added: “The country needs to focus on three key areas – strengthening competition and global integration, investing in skills and strengthening institutions.”

Mr Turfo said he would propose measures to expand the irrigation system and support the construction of post-harvest facilities and provide assistance to local producers, especially during the crisis.

He added: “We will promote the ease of implementing the country’s effective business laws so that more investments can enter the country create more jobs for Filipinos.”

No new taxes
All four candidates are reluctant to raise or introduce new taxes, but focus on improving tax collections.

“The government should first address the leak in tax administration,” Mr. Laxon said, who remained a senator campaign against pork barrel funds. If elected to the Senate, he vowed to strictly monitor the government's budget.

Finance Minister Ralph G. Recto said last week that the government does not want a new tax after the state meets its revenue target. The government collected pesos of revenues of 931.5 billion in the first three months.

Mr Turfo said he planned to oversee the implementation of the Simplified Tax Act to ensure that revenue collections are properly mandated without introducing new taxes.

Ms. Veral said: “I want taxes and honest taxes and pursue those who evade taxes.”

“I don’t want to add a burden to the poor,” Pacquiao said. “Before we discuss the new tax, we must first eliminate corruption and increase tax efficiency.”

Senate candidates also vowed to take steps to protect local industries and in U.S. President Donald J.

They say the Philippines should develop its domestic industries to alleviate global economic uncertainty.

“We really have to strengthen domestic production and commerce by supporting local producers and MSME,” Turfo said.

He said he would gather relevant agencies such as the trade and agriculture sector to develop a strategy to ease the looming global trade war.

He added: “If we have reliable trade in that country, we can copy it by spreading exports to other countries.”

Mr. Pacquiao said it is necessary to invest in strong industries in the Philippines, such as agriculture, digital services and creative industries.

He added: “I will support trade diversification and promote better trade agreements with Southeast Asian countries (ASEAN) and the Association of Asia-Pacific countries to reduce dependence on the U.S.-China market.”

Laxon said the government should prioritize the passage of a bill to diversify the country's trade and investment partners. He added: “Trading in Southeast Asia, Africa and Europe should be incentivized through simplified export procedures, reducing tariffs and trade agreements.”

“We should ensure our own products are competitive globally before allowing measures to release trade restrictions,” Laxon said.

Ms. Veral said that corporate recovery and tax incentives for businesses maximize the opportunity to revitalize the economy (create more behaviors) will “enhance our ability to attract investors who want to expand or relocate to the Philippines, given the relatively low tariffs on our exports to the United States.”

Mr. Pacquiao and Mr. Laxon also cited the need to promote renewable energy sources such as solar, wind and nuclear power.

The boxing champion said the country should seriously consider building nuclear power plants to support industry and household electricity demand.

He added that fiber optic technology could revolutionize power transmission by ensuring faster, more efficient and more stable energy distribution across the region.

“Unlike traditional copper wiring, fiber optics minimize energy losses, reduce maintenance costs and increase resilience of overall power infrastructure,” he said.

Electricity Price
Mr Laxon said opportunities for Filipino farmers to enter alternative energy sources should be improved, while tax benefits should be provided to renewable energy companies.

“Mr.com can also use their oversight to study whether existing laws regarding electric cooperatives are implemented properly,” he said. “The Senate should take a review of all surcharges to electricity bills, such as contract costs, general expenses and system losses.”

Mr Lacson also recommended limiting system losses to consumers to reduce electricity prices.

He added: “Since consumers are the first to be hit, power generation companies tend to become lax when it comes to rendering services. So, in fact, our consumers are rewarding them for not having a job.”

Mr Laxon said changes to the Power Industry Reform Act should include transparency in the power protocol between distribution companies and power generation companies to prevent tolls that are harmful to the public.

Ms. Veral plans to cut “overly high 15% weighted average cost of capital,” which she says increases electricity costs.

She also wants to review “all unfair and fraudulent contracts, power shortages and transmission projects that directly affect consumers”.

Meanwhile, Mr. Pacquiao and Mr. Toulfu wanted to revise the Rice Destruction Act.

“Support local production,” Mr. Pacquiao said. “I will work to review the rice flour method and provide more subsidies to our rice farmers.”

Mr. Tulfo said that resuming the power to buy and sell rice “will pave the way for cheaper options and competition as businessmen and middlemen continue to manipulate Farmgate and retail prices.”

Ms. Veral’s mother, who is head of the Rice Destruction Act, said she would push for the appointment of an official responsible for keeping rice prices stable.

“I'm trying to designate a Mitsar, who will supplement with the Agricultural Secretary to maintain the price of rice,” she said. “He will also manage the sustainability of rice in the market.”

“I will propose 'farmers first' laws – more irrigation budgets, mechanization and farm-to-market roads,” Mr. Pacquiao said. “We need food docks and refrigeration facilities so that farmers don't lose money.”

Ms. Veral said she will support the country’s efforts to modernize agriculture by mechanizing farm processes, improving farm and post-harvest infrastructure, enhancing logistics and adopting science-based strategies.