Only P9-B fiscal support for car makers’ perks By Andrea E. San Juan
T
HE Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) Program, the government’s new incentives blueprint for local car makers, is seen to provide a P9-billion total fiscal support to three participating car makers as they are expected to produce a lower volume requirement but within a tighter timeframe, according to the Board of Investments (BOI). Under the six-year Comprehensive Automotive Resurgence Strategy (CARS) program, the previous incentives program for
WORLD » A13
ISRAEL’S WEST BANK CRACKDOWN TRIGGERS WAVE OF DISPLACEMENT UNSEEN IN DECADES
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local car makers, P27 billion was earmarked by government for the three participating car makers (PCMs), with each enrolled model enjoying up to P9 billion of subsidy. Now, with the RACE program— dubbed the “new” incentives program of this administration—the government is only allocating a total of P9 billion in fiscal support for the three participants which came from the unused third slot in the CARS program. This represents one-third of the P27 billion total fiscal support provided by the government under the CARS program. In a Viber message sent to the BusinessMirror, Corazon Dichosa,
Executive Director for Industry Development Services of the BOI explained: “In CARS, we had P27B for 3 models so basically P9B per model, but only 2 slots were taken up. So one slot at P9B was unused. This is the budget now being used for RACE,” Dichosa told this paper. A briefer provided to reporters on Wednesday noted that the RACE program is set to be implemented to “sustain the gains achieved” during the implementation of the CARS program. The new program “seeks to sustain the viability of the local automotive sector, particularly the manufacture of ICE vehicles in transition to electric vehicles,
through targeted investments and support,” according to the briefer. “By providing the necessary support and incentives, the government aims to create a thriving automotive ecosystem that benefits the economy,” the briefer noted.
RACE Program requirements
ACCORDING to the investment promotion agency attached to the Department of Trade and Industry (DTI), the RACE Program will cover the production of three specific models of four-wheeled ICE vehicles, with a commitment to manufacture 100,000 units. This Program, the BOI said, will See “P9-B,” A2
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‘U.S. RECIPROCAL TARIFFS n
TO HURT PHL BUSINESS’
Govt earnings from seized Pogo assets to top P20-B
By Reine Juvierre S. Alberto @reine_alberto
T
HE impact of the United States’s reciprocal tariffs will hurt Philippine manufacturers and exporters, according to Moody’s Analytics. Moody’s Analytics economist Sarah Tan said in a television interview on Wednesday that while the Philippines’s trade deficit with the US is “rather small” compared to other global or Asean economies, there’s a universal reciprocal tariff that will be imposed by the US. “[The reciprocal tariffs] will hurt the Philippines because the duties that are levied on US imports into the Philippines are higher than the other way around,” Tan said. “If there is a matching of tariffs, then that will make the Philippines’s goods to the US more costly and less competitive, which will ultimately hurt our Filipino manufacturers and exporters,” Tan added. With the US being the Philippines’ largest export destination, Tan said tariffs are “worrying.” Data from the Philippine Statistics Authority (PSA) showed that the country’s exports to the US in 2023 amounted to $11.54 billion, while Philippine imports from the US reached $8.4 billion. This translates to a nearly $4-billion trade deficit for the US. (See: https://businessmirror.com.ph/2024/12/03/dti-phlmay-not-be-focus-of-trumps-tariff-plan-dti). “I believe our impact in the Philippines is rather small given our low trade exposure with the US. That said, there are indirect channels of impact on the Philippines because of how dependent we are on the US as the largest export destination,” Tan said. Japan-based think tank Nomura Asia earlier said that the Philippines’ is more susceptible to being slapped with high reciprocal tariffs by the US. (See: https://businessmirror. com.ph/2025/02/18/higher-phlntbs-put-it-at-risk-of-reciprocaltariffs/). Nomura explained that non-tariff barriers are “harder to quantify.” See “U.S.,” A5
By Samuel P. Medenilla
T
HIGH-OCTANE AIRFARES Aviation fuel trucks line up near NAIA Terminal 2 in Pasay City, poised for operation. As the summer season approaches, airfares are expected to rise in March due to
an increase in fuel surcharges. The Civil Aeronautics Board (CAB) has announced an adjustment in the fuel surcharge rate, which may impact ticket prices. This change comes amid recent fluctuations in fuel prices, with gasoline experiencing a net increase of P2.65 per liter as of February 3, 2025. Travelers are advised to book flights promptly to secure current rates. NONIE REYES
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HE government is poised to earn an estimated P20 billion worth of seized assets from its two-year crackdown on illegal Philippine Offshore Gaming Operators (POGO), according to the Presidential AntiOrganized Crime Commission (PAOCC). The Commission said the projected gains from confiscated assets are expected to more than offset the government’s expenses from its anti-POGO campaign, currently estimated at P210 million. In a press briefing in Malacañang on Wednesday, PAOCC director and spokesperson Winston John R. Casio said their initial valuation of the seized properties and illegal POGOs is between P20 billion and P30 billion. “And so, we are just waiting for the evaluation, but it’s going to happen in the next two weeks because the Executive Secretary gave the order for the AMLC [Anti-Money Laundering Council] to conduct the market valuation on all items,” Casio said partly, in See “Govt,” A2
PAGCOR UPBEAT ON SCBPO EXPANSION IN PHL By Reine Juvierre S. Alberto
T
@reine_alberto
HE Special Class Business Process Outsourcing (SCBPO) sector is poised for further expansion in the Philippines, with the country’s gaming regulator affirming support amid growing foreign investments and job growth. State-run Philippine Amusement and Gaming Corporation (Pagcor) cited the sector’s contributions in providing quality jobs to Filipinos. “We recognize the immense contribution of the SCBPOs in creating thousands of jobs for our countrymen, and we thank
our foreign investors for recognizing the unique talent of our workers who provide excellent outsourced services for them,” Pagcor Chairman and Chief Executive Officer Alejandro H. Tengco said. There are close to 5,000 Filipinos who work in the SCBPO sector to date, according to Pagcor. SCBPOs are required to hire Filipinos for at least 95 percent of their total workforce. Like ordinary BPOs, SCBPOs are licensed by Pagcor and support business operations of up to five legitimate gaming companies in other countries by providing human resources, marketing, graphic design, accounting and
other back-office work. The gaming regulator collects $100,000 in application fees and another $100,000 in renewal fees per year, which shall be applied for each licensed operator abroad. Pagcor is also paid a monthly administrative fee worth $10,000 for each licensed operator overseas. “We also make sure that the SCBPOs are not directly engaged in gaming operations such as taking or soliciting bets,” Tengco said. Pagcor said foreign principals overseeing SCBPO firms plan to expand both SCBPOs operations See “Pagcor,” A2
NOTICE OF FILING OF APPLICATION/S FOR ALIEN EMPLOYMENT PERMIT/S (AEP/S) Notice is hereby given that the following companies/Employers have filed with this Regional Office application/s for Alien Employment Permit/s: ESTABLISHMENT / ADDRESS No.
NAME OF FOREIGN NATIONAL , POSITION AND BRIEF DESCRIPTION
QUALIFICATION AND SALARY RANGE
24 INCH GAUGE CONSTRUCTION INC. Lot 4519a-b Manalo Compound, 4th Estate Subdivision, San Antonio, City Of Parañaque NGO THI NU Marketing Specialist 1.
Brief Job Description: Responsible for coordinating with other marketing and sales professionals to implement innovative campaigns for branding or product launches.
Basic Qualification: Ability to work under pressure and motivation to succeed in a competitive environment. Should have a bachelor’s degree in journalism, marketing, communications or a related field. With good communication and interpersonal skills. Salary Range: Php 30,000 - Php 59,999
See “dole ncr” on A6-A9
PESO EXCHANGE RATES n US 58.2120 n JAPAN 0.3829 n UK 73.4286 n HK 7.4876 n CHINA 8.0035 n SINGAPORE 43.3932 n AUSTRALIA 36.9646 n EU 60.8199 n KOREA 0.0404 n SAUDI ARABIA 15.5219 Source: BSP (February 19, 2025)