Articles authored by Stratbase Institute’s Non-Resident Fellows and Team Members are featured in this section.
No shortcuts to inclusive governance
December 3, 2025
Prof. Victor Andres “Dindo” Manhit | Founder and CEO of Stratbase Group
The Nov. 30 rallies served as Part 2 of the Sept. 21 mass action where Filipinos came out to show their outrage against corruption.
Many things happened between the two dates. In September, the exposés were fairly new, and each revelation during the congressional hearings drew shock and disbelief from the public. The Independent Commission for Infrastructure (ICI) was just newly created—10 days old, to be exact.
By November, the ICI had held numerous hearings and recommended the filing of charges against certain individuals involved in the mess. Boxes upon boxes of documentary evidence had been examined. Warrants of arrest had been issued and a handful—employees of the Department of Public Works and Highways—had been detained.
Still, while there have been early gains in the fight that began with President Marcos’ “Mahiya naman kayo!” speech during his State of the Nation Address in July, much more remains to be done.
On the streets, on social media, and even in surveys, Filipinos have made their sentiments known. It is through these sentiments that the administration should more carefully tailor its action in its fight against corruption. For example, an October 2025 Social Weather Stations survey across Mega Manila shows that 83 percent of Filipinos believe corruption is most rampant on the level of the national government, and 73 percent believe it is prevalent among high-ranking officials such as Cabinet members and senior management.
People are not satisfied with how the country is being governed. In Mega Manila, 77 percent of respondents—and 80 percent in the National Capital Region—feel corruption has become more widespread. Meanwhile, 60 percent believe that the government’s anticorruption efforts are not effective.
Public frustration is also driven by the misuse of public funds. Seventy-six percent of Filipinos believe that poorly built or unfinished government projects are a direct result of corruption. Following the exposure of substandard projects in Bulacan, 62 percent agree that corruption in Bulacan’s infrastructure sector reflects a broader, nationwide problem.
Moreover, people demand accountability and transparency, not just as buzz words but through action. Filipinos overwhelmingly support tougher action against corruption. Specifically, 74 percent favor stiffer penalties for corrupt officials, 71 percent support the filing of cases against those implicated, and 71 percent of respondents in Mega Manila believe that public movements such as the Trillion Peso March can push the government to act.
There is also substantial backing for transparency measures such as making the statement of assets, liabilities, and net worth accessible (63 percent) and passing the Freedom of Information Act (59 percent).
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Amid the growing clamor for results, and especially as the Christmas season draws near, Filipinos are hoping that bigger names involved in the scandal would be jailed. If big fish are allowed to escape prosecution, this sends a message that crime does pay, and that being in power indeed makes one immune from the consequences of crime.
Ultimately, this is not about the political affiliation of any single personality. Whatever color and persuasion, corruption is a reprehensible thing that should be punished, whoever is involved. This is what we have to impress upon the majority of our people, lest they believe this is a witch hunt for any political personality or group.
More importantly, investors, while acknowledging the potential of the Philippines in terms of human capital and other resources, are adopting a wait-and-see attitude. The push toward investment-led growth is a pressing concern for the administration, because attracting investments will have exponential effects on job creation and income generation. A corrupt environment will cause investors to lose interest in the Philippines altogether.
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The words of Cardinal Pablo Virgilio David during the Trillion Peso March are both sobering and enlightening. He pointed out that calls for resignation may be untenable because resignation is a voluntary act by someone who has good values and character.
But “Mahiya naman kayo” presupposes that everyone is capable of shame.
I agree with the Cardinal that we are not looking for fast and easy solutions. Instead, what we are aiming for are lasting reforms even as we try to hold accountable those who are proven to have committed corruption against our people. We will fight corruption through steady, consistent action and inclusive governance. Governance is not only the turf of the leaders, but a joint undertaking between multiple sectors: the government, the public sector, civil society, and all citizens.
Nov. 30, which coincided with the birth anniversary of Andres Bonifacio whom we celebrate for his courage, was a day for a collective call for justice and governance. We hope this unites Filipinos of different political persuasions, sectors, geographic areas, and socioeconomic classes, to work toward a future of integrity, equity, and progress for the nation. We thus commit ourselves to a long and arduous battle, for the sake of our nation and our children.
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This article was originally published in Philippine Daily Inquirer.
From Infrastructure to Strategic Terrain: Securing the Digital Lifelines Beneath Our Seas
By RADM Rommel Jude G. Ong (Ret)
Background
Submarine cables beneath our seas are the invisible lifelines of modern civilization. Submarine cables carry over 97% of global data traffic, such as financial transactions, military communications, and cloud services. In 2024, an alleged Russian-linked “shadow fleet” disrupted NATO connectivity in the Baltic. In 2025, the cables linking Taiwan to Penghu Island were cut, while in the Red Sea, the digital disconnection affected Asia, Africa, and Europe. A single cable cut, deliberate or accidental, can disrupt stock exchanges, isolate command centers, and fracture diplomatic communications across continents. In contested maritime spaces, these cables are exposed and may take several weeks to restore services, considering that repair fleets are insufficient. Permitting delays and access restrictions in conflict zones further complicates the response. In the Indo-Pacific, delays can be strategically exploited, given the layered and persistent maritime disputes.
The three objectives of this month’s Stratbase Policy Brief are as follows:
- Advocate for the establishment of a Regional Cooperation Agreement on Submarine Cable Security (ReCAAP-CS) within ASEAN to strengthen collective resilience, improve incident response, and promote legal harmonization for protecting critical digital infrastructure.
- Propose innovative approaches such as deploying acoustic sensors, satellite-based networks, and seabed monitoring systems to safeguard submarine cables against hybrid threats, sabotage, and natural disasters.
- Encourage the adoption of international legal instruments like UNCLOS Article 113 and the Paris Convention principles, while advocating for a UN resolution to condemn intentional cable sabotage and expand ASEAN’s mandate to address hybrid threats to submarine cables.
International Legal Frameworks
Recognizing the strategic and commercial importance of global communications as early as the 19th century, the 1884 Paris Convention for the Protection of Submarine Telegraph Cables was signed on March 14, 1884, and came into effect on May 1, 1888. As of 2013, 36 states remained parties to the Convention, including the United States, the United Kingdom, and France. It was the first international agreement that was intended to protect the integrity of global communications at that time, and it also established the principle that submarine cables on the high seas are part of a shared global infrastructure deserving legal protection. Among its key provisions are: (1) applicability even outside territorial waters; (2) sanctions against deliberate or accidental damage to a submarine cable; (3) a one-nautical-mile safety zone for cable-laying vessels; and (4) a mitigation and reporting protocol in case of accidental damage.
On the other hand, the United Nations Convention on the Law of the Sea (UNCLOS) contains several articles that are relevant to the protection of submarine cables. It protects the global communications infrastructure, clarifies liability and enforcement across jurisdictions, and supports the peaceful use of the seas for digital connectivity.
Table 1 – Relevant UNCLOS Provisions on Submarine Cable
| Article | Title | Key Points |
| 79 | Submarine Cables and Pipelines on the Continental Shelf | States may lay submarine cables and pipelines on the continental shelf.Coastal states may not impede the laying or maintenance of cables, though they can regulate resource exploitation and environmental protection. |
| 87 | Freedom of the High Seas | Laying submarine cables is considered a freedom of the high seas, available to all states. |
| 113 | Breaking or Injury of a Submarine Cable | Willful or negligent damage to submarine cables that disrupt communications is punishable under national laws.This mirrors the 1884 Convention’s criminalization of cable damage. |
| 114 | Liability for Damage | If a cable owner damages another cable or pipeline, they are liable for repair costs. |
| 115 | Indemnity for Sacrifices | A vessel that sacrifices its anchor or fishing gear to avoid damaging a cable may be entitled to compensation, provided it took precautions to avoid contact. |
However, its provisions have a different take in the following: (1) its scope covers all submarine cables and pipelines; (2) its jurisdiction applies across maritime zones; (3) its enforcement relies on national implementation; (4) it allows for indemnity claims for compensation in damages; and (5) it provides an active legal framework for current cables.
ASEAN Guidelines, Regional Practices and Gaps
Submarine cables are the backbone of Southeast Asia’s digital economy and strategic communications. However, they remain vulnerable to accidental damage, sabotage, and geopolitical disruption—especially in contested maritime zones like the South China Sea. ASEAN has developed the ASEAN Guidelines for Strengthening Resilience and Repair of Submarine Cables.[i]Its features include: (1) encourages member states to streamline permit processes for cable repair; (2) recommends appointing a ‘single point of contact’ for cable-related applications; and (3) promotes transparency and coordination among national authorities.
In 2013, a study made by the UN Economic and Social Commission for Asia and the Pacific (UN-ESCAP) highlighted the need for risk reduction measures and regional coordination to protect critical infrastructure.[ii]
Fast forward to today, Dr. Su Wai Mon surmised that ASEAN does not have a binding legal instrument specifically for submarine cable protection.[iii] Each member state has its respective national laws, which have led to inconsistent enforcement and emergency response protocols. Dr. Su recommended that ASEAN needs a regional agreement that covers coordinated patrols, surveillance, and law enforcement regulations to protect the cables. From a defense perspective, such agreements could enhance collective deterrence, incident response, and infrastructure planning, particularly in contested waters like the South China Sea.
Submarine Cable Landing Sites Along the South China Sea and the Philippines
Submarine cable landing sites can be found in ASEAN states surrounding the South China Sea. These include the Philippines, Vietnam, Malaysia, Singapore, Thailand, and Indonesia. These sites serve as critical nodes for regional and global connectivity. They form part of the “digital maritime infrastructure” that parallels traditional sea lanes and chokepoints, and are often located near naval bases, economic zones, or disaster-resilient areas. It should be noted that redundancy and diversity in landing sites help mitigate risks from natural disasters, sabotage, or geopolitical tensions.
Table 2 – ASEAN Strategic Landing Points
| Country/Site | Particulars | |
| Philippines | ||
| La Union[iv] | Landing site for SEA-H2X cable, connecting to China and other ASEAN states. | |
| Batangas and Cavite | Host multiple domestic and international cables. | |
| Subic Bay and Luzon Strait | Strategic for transpacific routes and redundancy | |
| Vietnam | ||
| Vung Tau | Major landing site for the Asia-America Gateway (AAG) and other cables | |
| Da Nang and Haiphong | Serve regional connectivity and backup routes | |
| Malaysia | ||
| Mersing (Peninsular Malaysia | Landing site for SEA-ME-WE cables | |
| Kota Kinabalu[v] (Sabah, Borneo) | Part of SEA-H2X and other intra-Asia systems. | |
| Singapore | ||
| Changi and Tuas[vi] | Singapore is a major hub with multiple landing stations, including SEA-ME-WE, AAG, and SEA-H2X cables. | |
| Acts as a regional switching center for Southeast Asia | ||
| Thailand | ||
| Songkhla and Chonburi | Connect to regional cables like AAG and FLAG. | |
| Landing sites support links to Vietnam, Malaysia, and Singapore | ||
| Indonesia | ||
| Batam and Jakarta | Key landing points for regional and global cables | |
| Manado and Surabaya | Support eastern Indonesia and Pacific routes | |
Submarine cable landing sites on the Philippines’ east coast include La Union, Baler (Aurora), and Davao, with La Union emerging as a strategic node for transpacific connectivity. La Union is emerging as a transpacific hub, with SEA-H2X connecting to Hong Kong, Hainan, and eventually California. Baler offers a redundant east Luzon route that is useful for disaster resilience and domestic traffic. On the other hand, Davao supports southern corridor connectivity, linking Mindanao to Southeast Asia and the Pacific. These sites complement West Coast hubs like Batangas, Cavite, and Subic, ensuring multi-directional cable access for the Philippines.
Table 3 – Philippine Strategic Landing Points
| Location | Region | Cable Systems | Strategic Role |
| San Fernando, La Union | Ilocos Region (North Luzon) | SEA-H2X, Asia-America Gateway (AAG | Gateway to Taiwan, Hong Kong, and the U.S. West Coast |
| Baler, Aurora | Central Luzon | Domestic and regional cables (e.g., PDSCN) | Redundant route for Luzon connectivity |
| Davao City | Southeastern Mindanao | Domestic and international (e.g., EAC-C2C) | Link to Indonesia, Malaysia, and the Pacific routes |
Sources: Submarine Cable Map, Submarine Networks Philippines, Submarine Networks
ReCAAP: Model for Intergovernmental Collaboration
As a way ahead, ASEAN may consider the following: (1) drafting a binding regional convention modeled on UNCLOS and the Paris Convention; (2) establishing a joint monitoring mechanism or regional cable protection task force; and (3) integrating cable security into broader maritime domain awareness and digital infrastructure resilience initiatives.
Perhaps, the appropriate model for ASEAN is the ReCAAP (Regional Cooperation Agreement on Combating Piracy and Armed Robbery against Ships in Asia). It is a government-to-government organization established through a formal multilateral agreement, which was signed in 2004 and entered into force in 2006. There were 14 countries as original signatories, but it has since increased to 21 countries, not only from Asia, but also from Europe and the Americas. It is an intergovernmental organization (IGO) rather than a non-governmental organization (NGO). The signatory governments are responsible for appointing national focal points and coordinating maritime security efforts.
ReCAAP has an Information Sharing Centre (ISC) located in Singapore, which serves as the operational hub for real-time reporting and analysis of piracy and armed robbery incidents. It also provides capacity-building through training, workshops, and joint exercises for maritime law enforcement. It also promotes coordinated patrols and responses among member states. It focuses its attention on high-risk areas like the Straits of Malacca and Singapore, the South China Sea, and the Sulu-Celebes Seas. It also supports regional maritime domain awareness and complements broader frameworks like UNCLOS and ASEAN maritime cooperation, and enhances interoperability among navies, coast guards, and maritime agencies. ReCAAP strengthens regional maritime security by: (1) facilitating real-time information sharing between governments; (2) supporting capacity building for coast guards and navies; and (3) promoting legal harmonization and operational cooperation.[vii]
ReCAAP can be a conceptual model for a regional organization focused on submarine cable security, focusing on (1) information sharing, (2) capacity building, and (3) operational coordination. While its original mandate targets piracy and armed robbery, its structure offers valuable lessons for protecting critical maritime infrastructure like undersea cables.
Table 4 – ReCAAP Model for Submarine Cable Security
| Feature | ReCAAP Application | Submarine Cable Relevance |
| Information Sharing | Real-time incident reporting via Focal Points | Could track cable damage, tampering, or outages |
| Capacity Building | Training for maritime law enforcement | Could extend to cable repair crews and port authorities |
| Operational Coordination | Joint patrols and alerts | Could support coordinated protection and rapid response |
| Legal Harmonization | Encourages national laws against piracy | Could promote unified cable protection legislation |
| Regional Ownership | Led by Asian governments | Aligns with ASEAN’s multilateral ethos |
The success of ReCAAP demonstrates how regional states can cooperate despite differing capabilities and interests. Its architecture could be adapted to include telecom regulators, cable operators, and coast guards. Moreover, in contested areas like the South China Sea, a ReCAAP-like body could help depoliticize cable protection and focus on shared resilience.
Way Ahead: Regional Cooperation Agreement on Submarine Cable Security (ReCAAP-CS)
Manila is the current chair of ASEAN, which provides an opportunity for the government to propose the establishment of a Regional Cooperation Agreement on Submarine Cable Security (ReCAAP-CS). The proposal can be presented at the ASEAN Defense Ministers’ Meeting Expert Working Group on Maritime Security initially, complemented by supporting presentations before the ASEAN Navy Chiefs Meeting (ANCM) and the ASEAN Coast Guard Forum (ACF). The members of this proposed intergovernmental organization can be drawn from the ASEAN member states, its dialogue partners, and perhaps other interested countries in Europe and the Americas. In setting it up, we can explore synergies with the relevant UNCLOS articles, Quad Cables Initiative[viii], and the ASEAN Digital Economy Framework Agreement (DEFA).[ix]
Its functions would cover the following: (1) incident reporting and forensic analysis; (2) coordinated repair and permit facilitation; (3) legal and regulatory harmonization, (4) strategic mapping of cable routes and chokepoints
Table 5 – Proposed Framework: ReCAAP-CS
| Component | Function |
| Information Sharing Center | Real-time reporting of cable damage, outages, and suspicious activity. |
| National Focal Points | Designated agencies in each member state are to coordinate cable-related incidents. |
| Legal Harmonization | Encourage adoption of UNCLOS Article 113 and Paris Convention principles. |
| Operational Coordination | Joint patrols, surveillance, and rapid response protocols for cable protection. |
| Capacity Building | Training for coast guards, telecom regulators, and cable operators. |
| Strategic Mapping | Shared database of cable routes, landing sites, and risk overlays. |
The proposal can follow a standard roadmap:
Table 6 – Notional Implementation Roadmap forReCAAP-CS
Phase 1: Dialogue and Design
- Convene the appropriate committee in the ASEAN Defense Ministers Meeting Plus to assess the feasibility.
- Draft Terms of Reference and governance structure.
Phase 2: Pilot and Integration
- Launch pilot ISC-CS in Singapore,
- Integrate with existing maritime domain awareness platforms, such as the Changi Information Fusion Centre or the ReCAAP Information Sharing Centre.
Phase 3: Treaty and Expansion
- Formalize agreement as a regional convention.
- Expand membership starting with the ASEAN Dialogue Partners and then inviting other interested states.
Hopefully, the ReCAAP-CS will improve resiliency with a faster response to incidents of outages and sabotage, enhance deterrence as increased regional coordination signals collective resolve, develop interoperability as we align civilian and military protocols for infrastructure protection, and encourage trust-building, as we depoliticize cable security through shared norms and transparency.
Way Ahead: The Philippine Response
The national focal point for the ReCAAP-CS should be the Presidential Office on Maritime Concerns (POMC) and supported by representations from the Department of Information and Communications Technology (DICT), Department of Foreign Affairs (DFA), Department of Science and Technology (DOST), Maritime Industry Authority (MARINA), National Telecommunications Commission (NTC), and the National Task Force-WPS (NTFWPS).Its operational arms shall be the Philippine Navy (PN) and the Philippine Coast Guard (PCG).
The PCG is already an active partner of ReCAAP in terms of anti-piracy operations and infrastructure protection. It will collaborate with other agencies, such as the DICT, NTC, and MARINA, on maritime infrastructure. It will also coordinate with the private sector, such as telecommunications companies and cable operators. Operationally, the PCG can cover the areas within our territorial waters, along the exclusive economic zone, and it designates maritime safety zones.
The PN shall provide strategic deterrence by protecting cable routes in critical areas of the South China Sea. It should capacitate itself for rapid response to address high-risk incidents or sabotage scenarios by participating in regional naval exercises and contingency planning. It should employ its intelligence capabilities to monitor threats to maritime infrastructure from state and non-state actors.
The POMC’s Submarine Cable Security Plan can consider the following lines of effort:
Strategic Deterrence
- Acquire and deploy acoustic sensors for anomaly detection.
- Harden the identified cable landing stations against hybrid threats.
- Integrate cable protection into the patrol plans of PN and PCG, particularly in the Luzon Strait, Luzon Sea, Palawan Passage, and the West Philippine Sea.
Coalition-Building
- Pursue the establishment of ReCAAP-CS among the different ASEAN mechanisms.
- Public-private partnerships must be institutionalized—bringing together telecommunications companies, cable operators, multinational companies, PN and PCG, and government regulators.
- Capacitate POMC as the national focal point to coordinate cable protection across sectors.
Legal Approaches
- Advocate before local and international legal forums that the seabed must not remain a lawless frontier.
- Advocate for a UN resolution condemning intentional cable sabotage as a violation of international law.
- Expand the mandate of ASEAN and other appropriate international bodies to include hybrid threat response.
Innovative Approaches
- Developing satellite-based networks like Starlink can provide emergency redundancy.
- Study the use of high-altitude platforms that can restore connectivity in crisis zones.
- Study the use of seabed monitoring systems using AI and sonar for early warning and attribution.
Summary
The region and the country need to build a coalition framework for maritime resilience and strategic deterrence to protect submarine cables, which are the digital lifelines of our time. It connects us—not just technically, but politically and symbolically. To protect them is to protect our sovereignty in the digital age, through cooperation, innovation, and strategic foresight. Because beneath the waves lies not just infrastructure, but sovereignty. Not just cables, but connections. Not just data, but deterrence.
[i] ASEAN Guidelines for Strengthening Resilience and Repair of Submarine Cables. https://asean.org/wpcontent/uploads/2012/05/ASEAN-Guidelines-for-Strengthening-Resilience-and-Repair-of-Submarine-Ca….pdf
[ii] Dir. Philip A. Varilla. “ASEAN Submarine Cable International Connectivity (Protection and Risk Mitigation).” National ICT Governance Group DOST‐ICTO, Philippines. 2013. https://www.unescap.org/sites/default/files/3.3%20ASEAN%20Submarine%20Cable%20International%20Connectivity.pdf
[iii] Dr. Su Wai Mon. “Protection of Submarine Cables and Pipelines: The Legal and Regulatory Practices of ASEAN Member States.” Center for International Law. National University of Singapore. 2025. https://cil.nus.edu.sg/wp-content/uploads/2025/09/Session-2-Dr.-SU-Wai-Mon-Protection-of-Submarine-Cables-and-Pipelines-The-Legal-and-Regulatory-Practices-of-ASEAN-Member-States.pdf
[iv] Winston Qiu.” SEA-H2X Lands in China and the Philippines.” Submarine Cable Networks. 2024. https://www.submarinenetworks.com/en/systems/intra-asia/sea-h2x/sea-h2x-lands-in-china-and-the-philippines
[v] Qui, Ibid.
[vi] Ibid.
[vii] The Philippines is a contracting party to ReCAAP and actively contributes to incident reporting and regional coordination. It has assigned a PCG officer as liaison at the ISC. On the other hand, ReCAAP has supported Philippine efforts to counter armed robbery at sea and kidnapping at the height of the Abu Sayyaf presence in the Sulu and Tawi-Tawi areas decades ago.
[viii] Strategic partnership launched by the Quad countries—Australia, India, Japan, and the United States—to strengthen submarine cable infrastructure and resilience across the Indo-Pacific. Its intent is to enhance cable connectivity, improve resilience, promote standards and transparency, and reduce exposure to state-backed actors that may compromise cable integrity or data security.
[ix] Landmark regional pact set to be signed in 2026, aiming to harmonize digital trade rules and boost cross-border digital services across Southeast Asia.
Treading the path to prosperity: Technology, capital, and the spirit of dialogue
November 3, 2025
Prof. Victor Andres “Dindo” Manhit | Founder and CEO of Stratbase Group
Twenty-one member economies comprise the Asia-Pacific Economic Cooperation (APEC). Together, they account for 61% of global gross domestic product and half of global trade. Indeed, for the past 36 years, APEC has served as a venue for the incubation of ideas. APEC meetings have allowed its members a platform for presenting their views, forging consensus, and working collectively toward regional prosperity.
One such gathering, the 2025 APEC Economic Leaders Meeting, will take place from Oct. 31 to Nov. 1 in the Republic of Korea, specifically in the city of Gyeongju, Gyeongsangbuk-do. Gyeongju is the ancient capital of a millennium-old kingdom, and the center of its culture. Serving as the capital of Silla Dynasty from 57 BC to AD 935, Gyeongju flourished for nearly a thousand years and is home to a remarkable concentration of UNESCO World Heritage sites.
The theme for the APEC meeting is “Building a Sustainable Tomorrow: Connect, Innovate, Prosper.”
As this year’s host, Korea will put forth two key issues affecting global prosperity: cooperating in the area of artificial intelligence (AI), and responding to demographic shifts.
Specifically, on AI cooperation, it will set an APEC-wide direction for AI utilization by focusing on capacity building and the creation of a sustainable AI investment ecosystem.
Korea is an acknowledged world leader in the field of AI. It has passed its AI Basic Act, which will take effect in January, that establishes the country as a global pioneer in the development of reliable and forward-looking AI. South Korean President Lee Jae Myung has secured a landmark partnership with asset manager BlackRock to help make Korea a regional hub for AI.
Korea was also the president of the recent Security Council Open Debate on Artificial Intelligence and International Peace and Security, through Mr. Lee, at the United Nations.
Mr. Lee described AI using metaphor — that of a very cute tiger cub, according to an op-ed by South Korean Ambassador Lee Sang-Hwa published in another newspaper. The tiger cub, like AI, may grow into a devouring predator, or it could also be a beloved companion, citing a character from a famous Korean show.
Aside from this AI milestone at the UN, Korea is also a leader, alongside the Netherlands, of the Responsible Artificial Intelligence in the Military Domain (REAIM) Initiative. This is a global platform that seeks to ensure the transparency and accountability of AI applications in defense, and to keep it firmly under human control.
Korea enjoys great credibility in this area, because it believes that “innovation and ethics must advance as one, and that even in matters of security, humanity’s fate should never be left to an algorithm,” wrote the ambassador.
Yet another key issue to govern the coming talks is the need, and ideal ways to respond to demographic shifts, Korea will propose cooperative policies to build responsive systems for aging societies, strengthen human resource mobility, and promote innovation in healthcare and technology to turn demographic challenges into opportunities for future growth and innovation.
But at a time of heightened geopolitical and geoeconomic challenge, both within the individual economies and in the greater Indo-Pacific and Asia-Pacific regions, is it even realistic and possible to imagine any pathways to prosperity for our people? And how does the Philippine economy, with all its nuances and unique features, fit the bigger picture?
Just this September, at the Subic Shipyard, the HD Hyundai shipbuilding venture was inaugurated through a symbolic cutting of steel, which marks the birth of a vessel.
At least 2,000 jobs will be created by this investment, which was granted fiscal incentives under the CREATE More Act.* According to Ambassador Lee, the Philippines-Korea Free Trade Agreement was — signed by the leaders of both countries in September 2023, ratified by their respective legislative bodies the following year, and which took effect at the end of 2024 — solidifies Korea’s standing as one of the biggest investors in the Philippines. Hyundai has substantially committed to Subic.
“It has always been more than a harbor,” he wrote. “It is a symbol of openness to trade, business, and diplomacy.”
Given all these, the Philippines will be an eager participant in the coming APEC meeting in Korea. The principles of the economic block resound with our own economic objectives as a nation. We also aim to advance trade and investment within the Asia-Pacific region and strengthen connectivity through physical, institutional, and people-to-people exchanges.
We seek to promote digital innovation by ensuring that we tap into the advantages of technology while mitigating their pitfalls and risks.
Through all these, we pursue sustainable and inclusive growth as we prepare to squarely address global issues of energy, food security, and demographic shifts.
We share APEC’s commitment to dialogue and cooperation. While we face many daunting issues domestically, regionally, and globally, we keep our faith in the power of dialogue and cooperation, just as the APEC does.
* Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy
This article was originally published in BusinessWorld.
End cycle of corruption, empty promises
October 29, 2025
Prof. Victor Andres “Dindo” Manhit | Founder and CEO of Stratbase Group
The scandal involving flood control projects becomes bigger every day. With every new revelation comes the realization that corruption in the Philippines is the norm rather than the exception. Behind the repeated promises to serve the “interest of the public” citizens see only hollow words, leaving trust in politicians at an all-time low.
A survey by Pulse Asia, conducted in September, shows an alarming and sobering picture: 97 percent of Filipinos believe that corruption is widespread, and 85 percent say it has worsened over the past year. Fifty-nine percent agree that it is just “a normal part of politics.” This is normalization’s ugly and dangerous face. Furthermore, 90 percent believe that there is collusion among public officials and private contractors in the misuse of public funds, especially in infrastructure projects.
What is happening is ugly because it takes so much away from the people who barely earn enough for the daily sustenance of their family, and whose lives and homes are put in harm’s way during bad weather and the resultant flooding. It is dangerous because when people accept corruption as normal, democracy becomes just for show. Accountability collapses—if it was ever there in the first place.
Thus, in the span of just a few months, coinciding with the time President Marcos first delivered his “mahiya naman kayo” State of the Nation Address and the subsequent probes and revelations, corruption has jumped to become the second-biggest issue of concern for Filipinos, next only to the prices of goods. From just 24 percent of respondents citing it as an urgent national concern, now 51 percent say so, with corruption overtaking even the gut issues of jobs and poverty.
And rightly so. This surge reflects not just moral outrage, but the sense that corruption worsens inflation, weakens services, and consigns the poor to even greater poverty.
In addressing corruption, the people’s sentiments on the government’s efforts are dismal: just 17 percent approve of how the government is fighting graft, while a staggering 69 percent disapprove. What this tells us is that the people do not believe the government is doing enough to change deeply entrenched and widely practiced corruption among the ranks. A 19-point percentage jump compared to June also tells us that recent events have caused people to feel this strongly. The administration’s anticorruption narrative is no longer credible to most Filipinos, who perceive the system as self-protective and selective.
It only follows that when the nation is outraged, its trust and approval of top officials also suffer a blow. Mr. Marcos’ approval rating fell to 33 percent, while Vice President Sara Duterte’s approval slipped to 37 percent. Their trust ratings also declined, reflecting discontent with the state of governance.
Some 81 percent of respondents said they have little to no trust in the Department of Public Works and Highways. Even the Senate (37 percent) and Ombudsman (39 percent) received only moderate trust, reflecting an overall institutional credibility crisis.
The same surveys show that people are now trusting other institutions, specifically the media (51 percent) and nongovernment organizations (50 percent).
These survey results lay down an unequivocal message: the people are disgusted with corruption and their officials’ behavior and hypocrisy. And in their demand for transparency and accountability, what is being done is barely adequate to even scratch the surface of the crisis. As corruption worsens and government performance falters, Filipinos lose confidence in their leaders.
This crisis of trust gripping the nation has profound implications.
The decrease in trust suggests that citizens no longer see the government leadership as credible or responsive to their most pressing needs, including high prices of basic commodities, low wages, and persistent corruption. Increasingly, people are becoming aware that their hard-earned taxpayer money is being pocketed by dishonest government officials and used to fund lavish lifestyles.
What are Filipinos doing about their disgust and desperation? They are expressing them on social media. They are taking it to the streets. Students have been staging walkouts and there have been rallies, big and small alike, in many locations and by many groups.
How these sentiments will evolve in the following years will translate to votes in the next elections.
The people are demanding to see something drastic, substantial, sincere, and specific. Full transparency and accountability in procurement and performance. Greater power for independent oversight bodies. Institutionalized whistleblower protection and citizen monitoring mechanisms. Greater political accountability for criminal acts and ethical breaches that betray public trust.
The logical question is: What is the government going to do about it, when it appears that its current efforts are not enough?
This article was originally published at the Philippine Daily Inquirer.
Department of National Defense (DND) and Armed Forces of the Philippines (AFP): An Alternative Approach to a Defense Posture
October 21, 2025
By RADM Rommel Jude Ong (Ret.)
Background
Transforming while performing will have to be the mantra of the Department of National Defense (DND) and the Armed Forces of the Philippines (AFP), considering that the two institutions are currently committed to several fronts. These includes defending our sovereign rights against China’s coercive actions in the West Philippine Sea (WPS), the prosecution of the campaign against remnants of the Communist Party of the Philippines/New People’s Army/National Democratic Front (CPP/NPA/NDF), maintenance of a fragile peace among contending parties in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), support to the public’s outcry against systemic corruption in government, and the thwarting of awkward attempts by political interest groups to destabilize the nation.
Aligning Strategy with Organizational Reform
Such a transformation should be anchored to a ‘grand strategy’ and should work with other state institutions to respond to the emerging challenges in the regional and domestic environment. DND Secretary Gilbert Teodoro’s Comprehensive Archipelagic Defense Concept (CADC) offered a fresh start, but it needs to be reconciled with the DND’s National Defense Strategy, the AFP’s National Military Strategy, and its external defense campaign plan. Without a clear-cut strategy, any changes in the DND and AFP organization may lack the discipline needed for reform to succeed. For example, in a prior Stratbase ADR Institute paper on the Filipino Theory of Victory, we espoused a ‘denial strategy’ to deal with the current situation in the West Philippine Sea, and a ‘cost-imposition strategy’ in case of a conflict scenario in the future. [1]
Force structure affects the patterns of leadership, the manner in which decisions are made, the formulation and execution of strategies and campaigns, and, most importantly, the efficient allocation and use of financial resources. The process of review of the military organization is essentially political. As one deals with issues of relevance and redundancies in legacy organizations, there is always resistance among leaders and internal stakeholders affected by organizational changes. Any change needs to happen on three levels: (1) within DND itself, (2) between DND and the General Headquarters, and (3) between the AFP’s Major Services and the Unified Commands.
At the DND level, the challenge is how to expand its civilian workforce given the staffing summary ceiling normally imposed by the Department of Budget and Management (DBM). This will impede any attempt to reform the DND in the long term. On the other hand, at the level between DND and GHQ, we need to recognize that certain tasks are best performed by bureaus under DND direct supervision instead of the AFP. These include national-level intelligence, countering foreign influence and interference in government and private sector, cyber defense, space systems, modernization, public health for veterans and active service, and military education.
Table 1: Notional DND Additional Bureaus
| Force Package | Particulars | |
| 1 | Defense Intelligence Bureau | Notional office manned by a civil-military workforce responsible for intelligence on the regional, domestic, cyber, and geospatial areas of interest. Its mission is to synthesize intelligence from multiple sources, develop an order of battle of regional militaries, and provide advice to all levels of the government. This can be formed from the existing AFP intelligence Command and the Intelligence Service, AFP. |
| 2 | Defense Counterintelligence Bureau | Notional office responsible for implementing an amended anti-espionage law and other relevant laws to counter malign foreign interference and influence in the country. It could investigate insider threats within DND, AFP, government agencies, and government-controlled corporations. It could also assist other agencies in vetting foreign direct investments or economic activities with national security implications. This can be formed from the AFP Counterintelligence Group and augmented by military and civilian lawyers. |
| 3 | Defense Cyber Security Bureau | Notional office manned by a civilian workforce responsible for cyber-defense and offensive activities at the regional and strategic levels, and the collection of cyber-related intelligence. Its mission is to defend the national government’s information technology infrastructure and collaborate with the private sector to secure their critical systems. It can be based on an expanded AFP Cyber Command with a large infusion of qualified civilian personnel. |
| 4 | Defense Space Systems Bureau | Notional office responsible for space-related activities in support of DND, AFP, and other relevant agencies. In collaboration with the Philippine Space Agency, it will operate a constellation of micro-satellites designed for surveillance, target acquisition, and communications. It can be based on an expanded Geospatial Intelligence Group of ISAFP with a large infusion of qualified civilian personnel. |
| 5 | Defense Logistics Bureau | Notional office patterned after the French Directorate General of Armament (DGA). It will be responsible for defense procurement and technology, taking over the entire process involved in the AFP’s modernization program, and collaborating with the private sector and other government agencies on research and development, domestic defense industry concerns, and acquisition of major equipment from abroad. This can be formed from the existing Defense Acquisition Office, the AFP Systems Engineering Office, and relevant divisions under the Joint Staff for Logistics. |
| 6 | Defense Health Services Bureau | Notional institution already under consideration. It should cater to active service and veterans and their families, and is run by qualified hospital administrators. It can loosely be patterned after the US Veterans Administration or the United Kingdom public health system. Its health workers will be civilian doctors, dentists, veterinarians, and nurses. This will be spun off from the Veterans Memorial Medical Center and the V Luna Medical Center, and hopefully include other secondary military hospitals and affiliated hospitals from the public and private sectors. |
| 7 | Civil Defense Bureau | An existing office of the DND, currently focused on disaster mitigation, response, and emergency preparedness activities in support of other government agencies and local government units. It can expand to cover interagency collaboration to protect critical infrastructure involving mass transport systems, energy, telecommunications, public health, and banking. It should orchestrate planning among other agencies for the continuity of government services in case of man-made or natural disasters. |
| 8 | National Defense University | Notional institution that can provide tertiary, post-graduate, and doctoral degrees in national security administration, strategic studies, and advanced studies on joint operations and specialized types of warfare. The university can be an amalgamation of the National Defense College (NDCP), the AFP Education Training and Doctrine Command, and the Philippine Military Academy. |
On the level of the AFP, there is a need to revisit the ’force provide-force employer concept,’ which made the Unified Commands solely responsible for the conduct of joint operations and relegated the Army, Air Force, and Navy to a supporting role. If a reset to the Administrative Code of 1987 is realized, the major services will be able to restore their mandate to conduct operations. Joint activities will be done by identifying the supported and supporting organizations, with the former taking the lead in its planning and direction and the latter assisting.
Archipelagic defense, then, will involve the collaboration between the Navy, Air Force, and the Marine Corps. Collectively, they will be responsible for the security of the airspace, the territorial seas and coastline, the Exclusive Economic Zone, the extended continental shelf, and the seven archipelagic straits and associated island groups. These services should be able to act unilaterally, jointly with each other, in an interagency setting, in cooperation with the Coast Guard, or multilaterally if patrolling with allies and partners. Its missions would range from critical infrastructure protection to strategic lift, patrol and surveillance, interdiction, coastal defense, operational fires, strike, control of SLOCs, and sea denial.
A Strategic Defense Command can be established to orchestrate the combined, joint, and interagency operated being undertaken by the Navy, Marine Corps, Air Force, and Coast Guard, supported by a notional Maritime Intelligence Operations Fusion Center to develop the air-sea operating picture for awareness, and complete the kill-chain. It should be commanded by a senior naval or air force officer of equal rank to the Flag Officer in Command of the Navy and the Commanding General of the Air Force.
Table 2: Archipelagic Defense
| Force Package | Particulars | |
| 1 | Strategic Defense Command | Operational command responsible for maritime and air defense of the archipelago. It implements the maritime and air campaign plan approved by the Chief of Staff of the AFP (CSAFP) and concurred to by the Secretary of National Defense (SND). |
| 2 | Maritime Intelligence and Operations Fusion Center | Notional C4I node that should be operated jointly by the Navy, Marine Corps, Air Force, and Coast Guard. It collects information, synthesizes, and disseminates processed intelligence to relevant stakeholders. It translates actionable intelligence into operational directives to relevant units under its control. |
| 3 | Fleet Surface Action Groups | Ad hoc units that can be organized from the Fleet’s frigates, corvettes, offshore patrol vessels, coastal patrol vessels, and amphibious ships, and tasked to conduct patrols, anti-surface- anti-air, and anti-submarine warfare operations along the country’s EEZ, territorial waters, and internal waters. |
| 4 | Marine Littoral Task Groups | Ad hoc units organized from the Marine Corps’ line brigades, combat support and service support brigades, reconnaissance units, the Naval Special Warfare units, and the Fleet’s fast attack crafts. It could be augmented later on by future capabilities such as short-range anti-ship missile batteries, naval mines, and drones. Their mission is to defend the seven (7) archipelagic straits and the island groups within these strategic waterways. |
| 5 | Interagency Auxiliary Groups | Ad hoc units that can be formed from Coast Guard and Fisheries patrol vessels. They can escort civilian convoys, conduct search, and rescue missions, and protect critical maritime infrastructure. They operate independently under current conditions, but are under the Navy’s operational control during a conflict scenario. |
| 6 | Marine Coastal Defense Regiment | Standing Marine Corps unit that operates the BrahMos anti-ship missile batteries and associated air defense systems, tasked with conducting sea denial operations across the entire WPS. They collaborate with surface action groups and air force squadrons to provide operational fires through a robust kill-chain system. |
| 7 | Maritime Strike Squadron | Notional air force unit formed from either the 5th Fighter Wing or the 15th Strike Wing. It can be tasked to conduct anti-shipping operations along the WPS and operate in tandem with the surface action groups. It should be studied whether the current FA-50 aircraft can fulfill this role, or if the Air Force considers an alternative type of aircraft, if funds are available. |
| 8 | Air Defense Squadrons | Formed from the 5th Fighter Wing, tasked to patrol the PADIZ, interdict anomalous contacts, and establish local air superiority in conflict areas. This is whether the Air Force will acquire multi-role fighters. |
| 9 | Air Defense Artillery and Engineering Squadrons | Standing Air Force unit responsible for protecting military and civilian aerodromes of strategic value. They will defend against airborne attacks and provide rapid response engineering capability to repair damaged runways under hostile conditions. |
On the other hand, homeland defense becomes the responsibility of the Army and the Reserve Forces of the three services. The Commanding General of the Army is the head of Homeland Defense. It is responsible for combined, joint, interagency operations in the defense of the three main island groups, the seat of national government, and critical infrastructures scattered nationwide. Its mission will range from protecting critical facilities, government offices, civil defense, combat, and civil engineering, to combined arms operations.
The game changer is the transformation of the Unified Commands into an Army Corps. The corps can also be designated as Joint Force Commands to allow for the attachment of Air Force and Navy units and personnel. The Army’s existing divisions will have to be reconfigured as mechanized or motorized infantry, mountain, or littoral divisions to conform to its dominant operating environment. Its special operations, combat, and civil engineering, aviation, intelligence, and civil-military units will also have to be redesigned to accommodate the integration of joint and air force units. To wit:
Table 3: Homeland Defense
| Force Package | Particulars | |
| 1 | Homeland Defense Command | Operational Command responsible for the territorial defense of the mainland employing Army and Reserve Forces. It implements the homeland defense campaign plan approved by CSAFP and SND. |
| 2 | Army Corps | Notional Army unit formed from an existing Unified Command that will control the two Army Divisions assigned within its jurisdiction and be responsible for the ground defense of the regions. As a collateral task, these Corps can also be designated by CSAFP as Joint Force Commands, and will be assigned a planning staff along with relevant tactical units from the Air Force and Navy. |
| 3 | Army Divisions | Notional Army Divisions reconfigured to thrive in their prevailing operational environment, such as: 6th and 7th Mechanized Infantry Divisions for combined arms operations in the plains of Central Luzon and Central Mindanao 2nd and 5th Mountain Divisions deployed in the Sierra Madre and Cordilleras 3rd, 8th, and 11th Littoral Divisions with associated capabilities for seaborne operations for island defense 1st, 4th, and 10th Motorized Infantry Divisions for light infantry missions. Note that under this scheme, the existing Armor and Artillery Divisions will be unfilled; their equipment will be distributed to the relevant numbered divisions. |
| 4 | Army Special Operations Division | Army elite units repurposed to support homeland defense requirements. For example: Special Forces Regiment can be the dedicated cadre of specified reserve forces Scout Ranger Regiment can specialize in irregular warfare and be allowed to operate independently in teams against high-value targets or personalities. Light Reaction Regiment, which specializes in urban warfare, can be assigned in Metro Manila to defend the national seat of government. It can be designated collaterally as the Joint Task Force-NCR, with relevant Air Force and Navy tactical units. |
| 5 | Army Engineering Division | Army unit reconstituted from the existing five brigades to an expanded three brigades, and deployed in the three main island groups with a force-mix of combat and civil engineer battalions. – Combat engineer companies can work as part of a combined arms operation or in support of an infantry operation Civil engineer companies can be tasked with constructing hardened facilities serving as C4I nodes, road networks, and bridges essential for the rapid movement of military traffic and logistics, as well as repair work. |
| 6 | Army Aviation Division | Notional Army unit expanded by integrating its existing aviation unit with the Air Force’s 205th Helicopter Wing, the 18th and 20th Rotary Attack Squadrons from the 15th Strike Wing, and the 505th Search and Rescue Squadron tasked to conduct missions independently or as part of a combined arms operation: Attack Squadron tasked to conduct strike missions Airmobile Squadrons tasked to conduct tactical airlift missions SAR Squadron tasked to conduct combat SAR and medical evacuation missions Fixed Wing Squadron tasked to perform limited transport or surveillance missions in permissive operating environments using light aircraft. |
| 7 | Army Intelligence Division | Notional Army unit expanded by integrating the Military Intelligence Battalions with the Military Intelligence Groups of Intelligence Service of the AFP (ISAFP). It will be responsible for providing information for ground operations and counterintelligence missions against foreign influence and interference activities among local communities under its jurisdiction. This setup avoids redundancies in intelligence collection on the ground and focuses financial and other resources on a single unit. |
| 8 | Army Civil Military Operations Division | Notional Army unit expanded by integrating the Civil-Military Operations (CMO) Battalions with the Civil Relations Groups of the Civil Relations Service of the AFP (CRSAFP). This will be the principal unit to counter foreign influence and interference at the local government unit level and can assist DND in the conduct of civil defense missions. |
Reserve Forces, or the Citizen Armed Force, is composed of reservists and reserve forces from the three major services.[2] It will have to be integrated into the regular force, instead of operating independently under a redundant command structure. The Philippine Coast Guard (PCG), Bureau of Fisheries and Aquatic Resources (BFAR), and the Philippine Ports Authority (PPA) will be integrated as part of the naval auxiliary. On the other hand, the Philippine National Police (PNP), other uniformed agencies such as the Bureau of Jail Management and Penology (BJMP), Bureau of Fire Protection (BFP), Bureau of Corrections (BUCOR), and local public safety offices, will be part of the Army Auxiliary, while airport administrators are enjoined to be part of the Air Auxiliary.
Reserve Forces organized from private companies will all be integrated into the Army for homeland defense. Afloat Reserve Squadrons composed of shipping, passenger ferry, and commercial fishing companies will be under the supervision of the relevant Army divisions. The Army Reserve Battalions that are involved in land transport, forwarding logistics, civil engineering, and construction will be supervised by appropriate support units. Air Reserve Squadrons composed of Filipino-owned airline companies and aircraft maintenance firms will be part of the AFP’s strategic airlift capability.
Table 4: Reserve Force and Citizen Armed Force
| Force Package | Particulars | |
| 1 | Auxiliaries are sourced from national government agencies and integrated into the standing or regular force in times of crisis or conflict. | Naval Auxiliary Force should include the Philippine Coast Guard (PCG), Bureau of Fisheries and Aquatic Resources (BFAR), and the Philippine Ports Authority (PPA). The seaborne units of PCG and BFAR can escort civilian convoys, perform combat SAR missions, patrol the internal waters, or secure the approaches to major ports. The PPA and PCG can operate and secure civilian ports as alternate basing and logistics facilities for naval, coast guard, and international navies. Army Auxiliary Corps should include the Philippine National Police (PNP), other uniformed agencies such as the BJMP, BFP, BUCOR, and local public safety offices. These agencies can secure major cities, protect critical transport, energy, and fuel storage facilities, maintain civil order in communities, perform CBRNE missions, and assist in civil defense missions. Air Auxiliary Division should include administrators of public airports for international and domestic travel and cargo. These facilities can be repurposed as aerodromes or dispersal airfields to serve the Air Force or allied and partner militaries. |
| 2 | Reserve Forces are organized from private companies integrated into the Army for homeland defense in case of a conflict scenario. | Afloat Reserve Squadrons are composed of shipping, passenger ferry, and commercial fishing companies based in various ports in the country. They can support the Littoral Divisions by serving as troop transport and logistics vessels to move units across the islands in Visayas and Southwestern Mindanao. Fishing vessels can be used to escort transport vessels, to deploy naval mines, or to act as intelligence-gathering platforms (AGI). Army Reserve Battalions are composed of private companies involved in land transport, forwarding logistics, civil engineering, and construction, among others. They can augment the logistics requirements of the Army Divisions within their respective jurisdictions. Air Reserve Squadrons are composed of Filipino-owned airline companies, aircraft maintenance firms, and flying schools. The airlines can augment the strategic airlift requirements of the Air Force. The flying schools can be attached to the Army Aviation Division, and their light training aircraft can be used for limited reconnaissance missions. |
| 3 | Reservists are volunteers who joined any of the three major services, the administrative and technical services. | Naval Reservists are recruited, processed, accounted, and trained in a Naval Reserve Center. Upon completion of training, they will be assigned to the naval base or station nearest to their residence or place of work. They will be assessed for individual competency so that they can perform office duties in a naval station or facility. Marine Corps Reservists are recruited, processed, accounted, and trained in a Naval Reserve Center under the supervision of a staff from the Marine Corps. Upon completion of training, they will be assigned to the Marine Reserve Brigade or Battalion nearest their residence or place of work. In times of crisis or conflict scenarios, they will be tasked to augment the naval base security force or protect civilian airports and harbors used as alternate facilities for the Air Force, Navy, and Coast Guard. Army Reservists are recruited, processed, and accounted for by a Division Reservist Management Center and trained in a Division Training Center. Upon completion of training, the Division Personnel Staff will assign a reservist to a battalion nearest his residence or place of work. Reservists may opt to enlist or apply for commission later on, depending on skills and quota, while those of senior age may be called up annually for assembly and refresher training as long as they remain physically fit and able to serve. Air Force Reservists are recruited, processed, and accounted for by an Air Division Reservist Management Center and trained in an Air Division Training Center. They will be sourced from freelance fixed-wing and rotary pilots, air traffic controllers, flying school instructors, retired aircraft mechanics, or aeromedical doctors and nurses. They will be administratively assigned to the nearest air base or station for accounting purposes. |
Individual reservists from the Navy can be assigned to the naval base or station to perform office duties, while those with the Marine Corps can augment the naval base security force or be tasked to protect civilian ports and harbors being used as alternate naval facilities. Army Reservists can be assigned to a battalion nearest their residence or place of work for community defense. Air Force Reservists can be sourced from freelance fixed-wing and rotary pilots, air traffic controllers, flying school instructors, retired aircraft mechanics, or aeromedical doctors and nurses.
Leadership, Resources, and the Workforce
If some of the critical workload of the CSAFP and General Headquarters is elevated to the DND, the AFP’s senior leadership can now focus on warfighting and campaign execution, while its joint staff can work under a 24/7 battle rhythm. However, care must be taken with the sudden increase of three-star and two-star rank senior officers in the organization. These are cost drivers. If left unchecked, there is always a danger that resources will be concentrated at the upper tier of the organization, instead of cascading to the warfighting units that form the tip of the spear. With the three major service chiefs allowed to direct ground, air, and maritime operations in defense of the archipelago and homeland, resources can be concentrated on frontlines. Operational and tactical commanders should be encouraged to learn to ‘lead from the front.’
Secretary Teodoro has also expressed his desire to increase the strength of the AFP to 220,000 to 250,000 across all services. Considering the impact of such an increase on the AFP’s budget for Personnel Services, perhaps other options can be considered as alternatives for DND to consider as a way to mitigate the lack of personnel. These include the hiring of additional skilled civilians, civilianizing the leadership of finance, procurement, special services, and health services offices, subcontracting to the private sector for food preparation and catering, forwarding of supplies and non-lethal materiel, bus transportation, maintenance of staff vehicles, security, and maintenance of regular offices and buildings. For the Navy and Air Force, the introduction of unmanned systems in the Navy and Air Force would lessen the need for manned ships and aircraft. The Army, on the other hand, can consider merging its battalions to improve the personnel readiness profile, and the integration of reservists at the Army Division level to fill up battalions in cleared areas.
Summary
Strategy is the heart and soul of any consequential defense posture. It is the focal point not only of organizational reforms, but also operational and resource planning, capability development, and human capital investment. Given the current security regional and domestic challenges faced by the country, time is not our friend.
[1] Rommel Ong. Special Study: “Making a Filipino Theory of Victory Work: Retooling Our Defense and Security Posture” Stratbase ADR Institute. June 5, 2025
[2] Republic Act No. 7077, or the Citizen Armed Forces of the Philippines Reservist Act. https://lawphil.net/statutes/repacts/ra1991/ra_7077_1991.html
“No pleasantries: A telling message from the Chinese“
October 2, 2025
Prof. Victor Andres “Dindo” Manhit | Founder and CEO of Stratbase Group
At first blush, it sounded as though outgoing Chinese Ambassador Huang Xilian was just being pleasant when he addressed Vice President Sara Duterte during China’s 76th founding anniversary and his farewell reception, “At this moment of parting, I bid farewell to VP Sara Duterte. Madam Vice President, thank you for your support and dedication to China-Philippines friendship. Hope our bilateral relations will get back to a sound and healthy track soon,” he said.
But nothing is accidental in the geopolitical arena and in diplomacy. Every word is deliberate. And in the context of Philippines-China relations, especially our current rejection of the latter’s expansionist stance and its gray-zone tactics, the outgoing ambassador’s message is rife with meaning.
Huang’s words were not just polite farewell words of any ambassador about to leave his post. He looked upon and addressed the Vice President fondly and with effusive praise. Under the administration of the VP’s father, the Philippines adopted a policy of appeasement toward China. Between 2016 and 2022, Manila leaned away from its traditional partners toward accommodation of China, despite the maritime tensions it initiated. In fact, the former President Rodrigo Duterte declared that Philippine relations with China were at their best during his time.
The Chinese thus likely hoped that with the election of President Ferdinand Marcos, Jr., Sara Duterte’s running mate, their happy days would continue. Sara Duterte as Vice President provided some hope that even with the change in administration, the Philippines would still accommodate China’s bullying. They expected a foothold in Philippine politics that can secure its strategic interests beyond the Duterte presidency.
But Marcos Jr. had a different policy altogether, even declaring that the Philippines would not surrender even a square inch of territory to any foreign power.
Getting back to a “sound and healthy track” tells us that China sees the current relationship as unsound and unhealthy. The Marcos administration has visibly pushed back and resisted China’s attempts to assert its unfounded claims on our sovereignty, even going to the extent of spreading disinformation on the matter.
In pursuit of its own interests, China may be seeing this stance by the Philippines as offtrack, an aberration. It may be longing for the Dutertes as their preferred partners in Manila. For the Chinese, the healthy path means returning to the Duterte-era policy of preferential engagement and turning a blind eye to Chinese incursions into the West Philippine Sea.
The words are a thinly veiled criticism of Mr. Marcos’ firmer stance in defending Philippine sovereignty, reinvigorating defense ties with like-minded partners.
With the arrival of a new Chinese ambassador, there is little reason to expect a change in Beijing’s posture. Its pattern of aggression reflects a long-standing strategy that transcends personalities in the embassy. Diplomats may change, but China’s objectives remain the same: to expand its hegemonic control in the entire South China Sea.
But equally telling was what VP Sara Duterte said during the event. She described Philippines-China ties in language uncannily similar to Beijing’s script: “mutual respect, sovereign equality, and a shared commitment to peace,” even claiming that cooperation was “anchored in international law.”
Such statements are far removed from the lived reality of Filipinos in the West Philippine Sea, where China has ignored international rulings, harassed fishermen, and undermined Philippine sovereignty. Sara Duterte should not deny the depth of the Filipino people’s opposition to Beijing’s influence: in a September 2024 survey held by Pulse Asia, 72 percent of Filipinos said they would support an anti-China candidate, while only 17 percent favored a pro-China candidate. The decisive margin underscores that any political figure openly aligned with Beijing risks losing the confidence of a clear majority of voters. These results confirm that defending Philippine sovereignty in the West Philippine Sea is not just a foreign policy imperative but also an important issue in the country’s electoral politics.
With Filipinos overwhelmingly rejecting pro-China candidates, defending sovereignty in the West Philippine Sea has become a defining political issue.
And our leaders must listen.
China is pursuing its expansionist ambition, even if that means disregard for international law and baseless claims regarding its own and other countries’ sovereignty. But Philippine leaders—acting on China’s behest and adopting a policy of appeasement and accommodation when they should be the first ones to defend our country from persistent acts of aggression—are another story.
We must be extremely wary of them, see through their crafty messages, and refuse to let them represent us again.
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This article was originally released in the Philippine Daily Inquirer.
“Transparency, accountability, and growth”
September 29, 2025
Prof. Victor Andres “Dindo” Manhit | Founder and CEO of Stratbase Group
The people are angry, and rightly so. Corruption in the country hurts us numerous times over. The taxes we pay from our earnings simply fatten the pockets of the corrupt. We are not able to get the services that we deserve. Corruption affects our prospects for long-term prosperity, because it discourages business and investments.
It is a gross miscalculation to think that a country’s economic journey is far removed from good governance. Issues on transparency, accountability, and the fight against corruption could no longer be dismissed as noisy or counterproductive, or having no real effect on a country’s economic prospects.
Inclusive governance and economics are two concepts that are not divergent but in fact very closely intertwined. Inclusive governance is crucial in attracting and sustaining investments because it fosters transparency, accountability, and trust, which are essential for long-term economic growth and stability.
Consider these findings: A survey conducted by PwC Philippines and the Management Association of the Philippines revealed that 91 percent of CEOs—leaders and steerers of major private organizations in the country—believe that our country is falling short in addressing corruption, which undermines investor confidence and economic stability.
This widespread concern from the business community highlights how corruption erodes trust in institutions, increases operational costs, and creates uncertainty for investors. Corruption undermines the rule of law and weakens institutional frameworks, making it difficult for businesses to operate efficiently and securely.
And then, the World Bank Governance Indicators (2023) show the Philippines has declined in key areas such as voice and accountability, government effectiveness, rule of law, and control of corruption. This downward trend threatens investor confidence which affects long-term economic stability.
These indicators signal a troubling trend that could deter investors. They are critical measures of how well a government functions and how effectively it upholds democratic principles, enforces laws, and delivers public services. A decline in these areas suggests weakening institutional frameworks, reduced public trust, and a less predictable business environment.
For investors, such governance issues increase risks, discourage long-term commitments, and make the Philippines less competitive compared to its regional peers.
Despite the fact that the Philippines improved in economic performance, rising from 57th to 33rd in the 2025 IMD World Competitiveness Ranking, it dropped to 51st place in governance efficiency and to 46th in business efficiency. These show that our overall competitiveness has taken a hit.
These drops indicate persistent challenges in institutional effectiveness, regulatory frameworks, and operational environments for businesses. Governance inefficiencies, such as bureaucratic red tape and lack of transparency, can hinder economic progress by creating barriers to investment and innovation.
Similarly, lower business efficiency reflects issues like inadequate infrastructure, labor market challenges, and inconsistent policy implementation, which can deter investors and limit the country’s ability to compete globally.
There has also been no significant improvement in our performance in the Corruption Perceptions Index 2024 of Transparency International. Furthermore, the Philippines ranks 6th among Southeast Asian countries, placing the country near the bottom in regional corruption perception.
Such a perception of widespread corruption undermines the country’s reputation as a reliable destination for investments. It signals systemic issues in governance, including weak enforcement of anti-corruption laws, lack of accountability, and inefficiencies in public service delivery. For businesses, corruption increases operational costs, creates uncertainty, and fosters an uneven playing field, deterring both local and foreign investors.
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A critical move forward in the country’s anti-corruption drive is the signing into law of Republic Act No. 12254 or the E-Governance Act just earlier this month. This law digitizes public services, reduces red tape, and increases transparency and accountability across agencies. It also enhances service delivery and access to information.
This is, however, just one among many ways forward in instituting inclusive governance. Inclusive institutions and accountable leadership build trust with both foreign and local investors. Inclusive policies ensure that economic growth benefits all sectors of society.
Thousands of Filipinos in Metro Manila took to the streets on Sunday, Sept. 21. They were driven by anger over how public funds were diverted and misused to their detriment. But let us not stop with our anger. More than ever, we need to ensure that transparency and accountability are not just used as catch words but as living principles. Only then can we put up a confident front as we encourage the outside world to take a chance on and invest in the Philippines.
“Agenda for prosperity and accountability“
August 28, 2025
Prof. Victor Andres “Dindo” Manhit | Founder and CEO of Stratbase Group
The budget deliberations for 2026 are happening at a time of great public outrage and criticism over the abuse of funds supposedly for flood control projects. Unfolding details of how taxpayer money was pocketed by greedy individuals, both from the public and private sectors, should compel us to be vigilant and to push for greater transparency and accountability among our officials.
The budget is a good starting point.
For next year, some P6.793 trillion is being proposed by the Executive to the Legislative branch, reflecting a strategic alignment with the country’s development goals. Titled “Agenda for Prosperity: Nurturing Future-Ready Generations to Achieve the Full Potential of the Nation,” the budget bill focuses on fiscal discipline, transparency, and alignment with the Philippine Development Plan 2023-2028.
The 2026 budget emphasizes efficient resource allocation and intends to ensure that funds are spent as intended on impactful programs. It acknowledges that transparency is nonnegotiable in reducing corruption and other inefficiencies.
Equally important is the fact that the budget strives to be attuned to what Filipinos consider urgent concerns. The budget makes social services, economic growth, and infrastructure expansion a priority. It addresses key issues like education, health care, job creation, and poverty reduction. These issues directly respond to the people’s primary concerns, which includes staying healthy, securing income, and providing education for their children.
It is also important that the budget does not only address current concerns but looks toward the future. The priority accorded to education, health care, and social welfare, as well as infrastructure and economic modernization, signifies a commitment to nurture a generation that is future ready, against the backdrop of sustainable development and long-term national growth. The 2026 budget also includes climate action and disaster resilience. These are designed to contribute to long-term environmental sustainability and safeguard communities against risks in the future.
Additionally, the challenges that this administration inherited from its immediate predecessor are formidable. During the pandemic, the economy contracted by as much as 9.5 percent. The country inherited a debt of P12.8 trillion, aside from finding itself in the midst of global uncertainties such as geopolitical tensions and trade wars.
Other unresolved issues from the past are ghost infrastructure initiatives and controversial agreements under the Belt and Road Initiative. Such projects have exhibited red flags on issues of transparency, environmental impact, and financial sustainability. Kaliwa Dam is an example that easily comes to mind.
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A plan, no matter how well-meaning and ambitious, will remain just that—good on paper, if the resulting appropriations law or its implementation strays from the objective of achieving fiscal discipline, openness, and transparency.
A well-designed, well-researched plan would mean nothing if the execution were haphazard and left to the mercy of opportunists, and if funds do not reach their intended beneficiaries. It is appalling to know that a substantial portion of precious taxpayer money only ends up lining the pockets of corrupt officials. As a result, it is the people who get shortchanged.
Scrutinizing the budget and its implementation is not only the job of public officials or watchdogs. More and more, increased citizen involvement, online and offline, has been sending a message to our leaders that we are watching their actions. We are taking note of which politicians are acting in a way contrary to their sworn duty, and even contrary to their motherhood pronouncements.
The latest revelations concerning anomalous flood control projects has sparked indignation and anger among the people, but it is not far-fetched that this is only the tip of the iceberg. After all, the list of the 15 most favored contractors that President Ferdinand Marcos Jr. identified only covers the first three years of his administration, and only those involving flood control. What about irregularities committed during the previous administration, and those involving other projects outside of flood control infrastructure? Insertions done stealthily and collusion between government officials and their favored contractors have been around for decades, and have prevented these projects from benefiting the people as they should.
An agenda for prosperity, indeed, is an agenda that safeguards the interests of Filipinos and, through transparency and accountability, protects it from the machinations of greedy, double speaking leaders who claim that their hearts are for the people but are deceitfully invested in their own interests.
It is time we made the budget truly for the people, and only for the people.
This article was originally released in Philippine Daily Inquirer.
“Truth under siege: The national security threat we can’t ignore“
August 27, 2025
Prof. Victor Andres “Dindo” Manhit | Founder and CEO of Stratbase Group
Technology is neutral. It is neither good nor bad — it simply amplifies intent. It is a double-edged sword: it can make life better and more efficient, but it also creates serious risks that harm individuals, societies, nations — even the global order.
The internet, social media, and artificial intelligence have transformed our lives and brought conveniences unimaginable a generation ago. We benefit daily — personally, socially, and professionally — from technology’s reach. Finding information now takes seconds. A simple search can return millions of results. Experts weigh in on every topic.
But that same access to information can backfire when it opens the floodgates to misinformation and disinformation.
At the personal level, this is already dangerous. Internet users can fall for hoaxes, scams, or deceptive offers. Rumors can mislead. Fraud can spread.
But the deeper threat strikes at democracy and national security. False narratives move faster than facts. They erode trust, deepen divisions, and distort public discourse. What once seemed like isolated rumors now have the power to sway elections, destabilize societies, and weaken democratic foundations.
In the Philippines — and in democracies worldwide — defending the truth is a shared responsibility of governments, institutions, and citizens.
GLOBAL THREATS
The United Nations Global Risk Report 2024 found that 35.4% of respondents ranked misinformation and disinformation among the top global threats. The same report warned that societies remain largely unprepared to face these risks, which can worsen geopolitical tensions, fuel unrest, and disrupt crisis response.
The World Economic Forum’s Global Risks Report 2024-2025 echoed this, identifying disinformation as the most urgent short-term global risk through 2027. More troublingly, it is expected to remain a top long-term threat — alongside cyber warfare and AI-related risks — over the next decade.
Both reports point to a future in which information itself becomes the battlefield. Truth remains the goal — but it grows harder to find amid noise, manipulation, and deceit.
The rapid evolution of technology makes this worse. It allows disinformation to spread faster, look more convincing, and become harder to detect.
This is especially dangerous because the true aim isn’t just to mislead — it’s to shape behavior.
Originally designed to encourage positive habits, persuasive technologies are now being deployed to influence user decisions, often without awareness or consent. According to the Australian Strategic Policy Institute’s 2024 report, “Persuasive Technologies in China: Implications for the Future of National Security,” malicious actors exploit psychological insights and real-time data to manipulate users at scale.
This makes us deeply vulnerable — especially in matters of national security. Disinformation and propaganda enable foreign interference, mass surveillance, and economic coercion by hostile states and authoritarian regimes. For example, even as China continues to harass our military and fishermen within our Exclusive Economic Zone in the West Philippine Sea, it simultaneously spreads state-sponsored narratives abroad. It uses coordinated online networks to undermine our democratic institutions and attack the rule of law.
PROTECTING THE PUBLIC
What can be done to protect the public from digital exploitation?
The question is urgent — particularly in the Philippines, where millions get their news not from legitimate media but from social media. Many Filipinos still struggle to distinguish between real and fake content, even as awareness of the threat grows. According to the Reuters Digital Report 2025, seven in 10 Filipinos are seriously concerned about the spread of misinformation and disinformation — the highest level recorded since 2020. As a result, the use of fact-checking sites in the Philippines has risen to 34%, far above the global average of 25%.
To counter this growing menace, a bill called The Anti-Fake News and Disinformation Act has been filed in the House of Representatives. It aims to stop the deliberate spread of falsehoods on digital platforms while respecting free speech. The bill criminalizes the creation, funding, and dissemination of disinformation — including the use of troll farms and bot networks.
The measure also places obligations on digital platforms, requiring them to designate liaison officers with the Department of Information and Communications Technology, while mandating congressional oversight and embedding legal safeguards against abuse.
Securing our information infrastructure — and integrating cybersecurity and persuasive technologies into national defense — is essential. Technology moves fast, and any delay today makes us more vulnerable tomorrow.
Indeed, whether through international cooperation, stronger governance, or empowered citizens, the fight against disinformation is no longer just about correcting lies — it’s about defending democracy itself. We face adversaries that are organized, well-funded, and relentless. Awareness is no longer enough; what we need is resolve.
The Anti-Fake News and Disinformation Act is a critical first step — but it must be backed by strong institutions, smart investments, and a digitally literate public. We must confront this threat now, or risk becoming cyber-manipulated society. Truth is under siege — and defending it is not a choice. It’s our duty.
This article was originally released in BusinessWorld.
“No more closed doors in the budget process“
August 18, 2025
Prof. Victor Andres “Dindo” Manhit | Founder and CEO of Stratbase Group
The Department of Budget and Management has formally submitted the 2026 National Expenditure Program to Congress, beginning the next cycle of the appropriations process. Amid the controversy over secret insertions and realignment of allocations, the question persists: Does the current process of reviewing and approving the budget genuinely serve the public interest?
One notable reform effort to confront this issue is Joint Senate Resolution No. 1, introduced by Senate Minority Leader Tito Sotto. It marked a decisive move toward dismantling the secrecy that has long characterized budget negotiations in Congress. The resolution mandates public access to all bicameral conference committee deliberations, whether conducted in person or livestreamed, and has earned the support of Senators Risa Hontiveros, Ping Lacson, Loren Legarda, Migz Zubiri, Kiko Pangilinan, and Bam Aquino.
Following Sotto’s lead, the Senate recently adopted Senate Concurrent Resolution No. 4, authored by Sen. Sherwin Gatchalian. It seeks to reinforce transparency and accountability measures in the budget process. Gatchalian has pledged to limit bicameral procedures strictly to disagreeing provisions between the House and Senate versions, bar insertions, open sessions to the public, and release both chambers’ versions of the budget bill.
This comes amid corruption scandals and controversies across the political spectrum. The Senate recently archived the impeachment complaint against Vice President Sara Duterte after the Supreme Court declared it null and void. A major component of the complaint was the misuse of confidential and intelligence funds by the Office of the Vice President. More recently, President Marcos unveiled the top 15 contractors that bagged flood-control projects during his first three years in office. Yet, during recent typhoons, those projects failed to protect people from destructive flooding.
Insertions in previous budgets have also stirred public outrage.
The people are angry. In response, bold reforms to open the bicameral committee proceedings can be game-changing.
Speaker Martin Romualdez, the proponent of House Resolution No. 94, coauthored with Tingog party list representatives, aims to promote greater transparency by requiring the livestreaming of bicameral conference committee meetings and the participation of accredited civil society organizations as nonvoting observers. By institutionalizing public access and oversight, the authors aim to strengthen accountability and restore public trust in how budget decisions are finalized.
These resolutions are steps forward. But unless their principles are applied consistently—from open bicameral sessions to eliminating hidden insertions—they will remain promises without substance.
Shielding bicameral discussions from public view weakens accountability and allows arbitrary insertions, omissions, or last-minute deals.
A proposed subcommittee can help ensure all amendments undergo deliberation, documentation, and explanation. This would deter hidden insertions and promote responsible budgeting.
We urge our leaders to break the cycle of corruption, which can begin as early as the budget phase.
With public sentiment demanding reform, lawmakers have the chance to institutionalize openness. By enforcing transparency at the bicameral level, legislators can show they answer to the people, not to political allies. Open hearings allow the media, civil society, experts, and citizens to observe and offer input, leading to better decisions.
It doesn’t matter that many politicians do it—putting their own interests first. Or how long it’s been the norm. The public’s demand is clear: we want to know how our money is spent.
Congressional leaders must deliver on their vow to open deliberations and prevent budget insertions that don’t match planned expenditures. Investigations must proceed even if they involve allies. Corruption knows no political color.
Public servants must do more than make sweeping pronouncements about fighting corruption. They need to translate their strong words into even stronger action. Only then will the public rest assured in the belief that transparency and accountability are not merely fashionable buzzwords, but virtues that are revered and lived in our government and society.
This article was originally released in Philippine Daily Inquirer.
“Challenging the corrupt: A test of political will”
August 6, 2025
Prof. Victor Andres “Dindo” Manhit | Founder and CEO of Stratbase Group
“Mahiya naman kayo,” President Ferdinand Marcos Jr. said several times during his State of the Nation Address (Sona) on July 28. Only a few days before, a succession of typhoons and “habagat” had caused untold damage and suffering in many places in the country.
In his speech, the President castigated officials who had profited from flood control projects designed to protect the people from the effects of the new normal in weather conditions, but which have failed to do so either because they are poorly planned, substandard, or nonexistent. He said the public was much too aware of the shady activities by politicians—kickbacks, “initiatives,” errata, so-called standard operating procedures, and funds “for the boys.”
He then directed the Department of Public Works and Highways to submit a list of flood-control projects in the past three years; the Regional Project Monitoring Committee will then examine these projects. Audit and performance reviews will be done on these projects. And then, he said, all found accountable will be charged in court alongside their corrupt contractors.
Mr. Marcos touched on numerous issues during his Sona, but this one hit close to home. It demonstrated that corruption has a very real and tangible effect on the everyday lives of Filipinos, and has the potential to cause not only disruption but devastation and death. In using the flood projects as a springboard to talk about government corruption, the President had an opportunity to demonstrate leadership and to reaffirm the administration’s commitment to addressing this societal plague.
Outside of the Sona, we note that the Marcos administration has scored some wins in the transparency drive. A key milestone was our removal from the Financial Action Task Force’s gray list, showing that our anti-money laundering efforts are yielding results. Another major reform is the New Government Procurement Act, signed in July 2024, which updates the outdated Republic Act No. 9184, also known as the Government Procurement Reform Act, by requiring full public disclosure of procurement documents across all stages and agencies. It also supports the administration’s digital agenda through enhancements to Philippine Government Electronic Procurement System and the creation of an e-marketplace similar to commercial e-commerce platforms.
Two years ago, the President issued Executive Order No. 31 to institutionalize the Philippine Open Government Partnership and to embed open government values in government policies and programs, promote transparency, accountability, citizen participation, and harness technology and innovation.
A study conducted by the Stratbase Institute showed corruption is a persistent problem, with the impeachment of Vice President Sara Duterte—notorious for the use of “confidential funds”—drawing significant public attention, even as the Supreme Court has struck down this year’s complaint as unconstitutional. The study emphasized that the success of reforms will ultimately depend on effective implementation and supporting mechanisms.
Of course, corruption continues. Aside from robbing the people of the services that are due them, corruption also undermines investor confidence and economic growth. Strengthening transparency and accountability, reducing regulatory complexity, and ensuring policy stability are essential for sustained growth. The effective enforcement of reforms enhanced public sector capacity, and stronger anti-corruption measures will be critical to improving governance, attracting investment, and fostering long-term economic resilience.
Indeed, governance cannot be a concern that is divorced from economic growth. It is an essential part of it. Investors want a clean and transparent government, where economic policies are not subject to whim, and where costs are clear and predictable.
The gains the country has achieved in terms of good governance reforms should be maintained and strengthened. These reforms, ranging from increased transparency through Freedom of Information and digitalization to more inclusive policymaking, have laid the groundwork for more responsive, accountable, and citizen-focused governance.
Moving forward, the Marcos Jr. administration must sustain the momentum it has created. It must enforce laws consistently, help institutions build their capacity for governance, and firmly commit to transparency at all levels of government. Strengthening public trust also means preventing the misuse of power and ensuring that anti-corruption efforts are implemented fairly and effectively. Ultimately, good governance should enable the creation of a system that genuinely serves and empowers the people while helping to address economic challenges.
We heard strong words from the President on the fight against corruption. The next three years will be a critical test—not just of his resolve, but of whether those words can translate into meaningful reforms. Turning these avowed objectives into tangible results will require not only political will, but active participation from all sectors of society.
This article was originally released in Philippine Daily Inquirer.
“Peace through the rule of law and partnerships”
July 11, 2025
Prof. Victor Andres “Dindo” Manhit | Founder and CEO of Stratbase Group
Tomorrow marks the ninth anniversary of the July 12, 2016 decision of the Permanent Court of Arbitration (PCA) recognizing the Philippines’ sovereignty in the West Philippine Sea. It is a victory not only for us Filipinos but for the community of nations that respects the supremacy of international law.
That ruling was a decisive and moral victory for the Philippines. Grounded in the United Nations Convention on the Law of the Sea, it affirmed the legitimacy of the country’s maritime entitlements and nullified China’s expansive claims as baseless.
Tomorrow marks the ninth anniversary of the July 12, 2016 decision of the Permanent Court of Arbitration (PCA) recognizing the Philippines’ sovereignty in the West Philippine Sea. It is a victory not only for us Filipinos but for the community of nations that respects the supremacy of international law.
That ruling was a decisive and moral victory for the Philippines. Grounded in the United Nations Convention on the Law of the Sea, it affirmed the legitimacy of the country’s maritime entitlements and nullified China’s expansive claims as baseless.
The late Foreign Affairs secretary Albert del Rosario, who served as honorary chair of The Stratbase Institute, said: “The award is final and binding. We won on every significant point. It is a victory not just for the Philippines but for the rule of law, and for all nations that seek to maintain peace and stability through international law.”
We remember these words as we commemorate the PCA ruling amid China’s continued coercive acts. This year alone, over 260 Chinese vessels—warships, coast guard, and maritime militia—have swarmed Philippine waters, blatantly violating our sovereignty.
Just last month, China Coast Guard ships harassed Philippine Bureau of Fisheries and Aquatic Resources vessels near Bajo de Masinloc, issuing radio threats and attacking with water cannons.
Since 2016, hundreds of incursions have been recorded across key maritime features such as Ayungin Shoal, Sabina Shoal, and Pag-asa Island. These incidents have grown in both frequency and severity—ranging from ramming to obstruction of resupply missions—endangering Filipino lives and our marine ecosystems.
In response, the Philippines continues to protest every incursion, filing over 400 diplomatic notes since 2016. We uphold diplomacy, but with firm assertion of our rights under international law. But our defense must also confront a more insidious front: information warfare.
The recently published statement of Col. Raymond Powell, director of SeaLight and nonresident fellow of the Stratbase Institute, warned, “The People’s Republic of China has waged a coordinated information warfare campaign—not just against me or the SeaLight initiative—but against the Filipino people’s right to truth in the West Philippine Sea.”
He probed into Beijing’s extensive disinformation campaign as a systematic distortion of facts, and a desperate smear campaign against all advocates exposing the truth. I agree with his observation that, “some elected officials—not fringe voices, but those entrusted with safeguarding national interest”—have become amplifiers of these falsities. for either political interest or plain opportunism. Amidst overwhelming public sentiment against China’s persisting violations of our sovereign and territorial rights, their silence reveals a traitorous, opportunistic political agenda.
Powell aptly states, “Its goal is to delegitimize the Philippines’ evidence-based defense of its maritime rights by turning truth into treason.”
As we assert our maritime claims diplomatically and legally, we must also remain vigilant against coordinated efforts to erode public trust, confuse the national narrative, and weaken our resolve from within. Asserting our rights in the West Philippine Sea and exclusive economic zone is fought not only in our waters but in the information space—and both fronts demand clarity, courage, and unity.
We are also building self-reliance in defense and deepening alliances with like-minded states. The United States, Australia, Japan, and others have consistently reaffirmed their support for the 2016 ruling.
A recent example is the joint statement by the defense ministers of Australia, Japan, the Philippines, and the United States in May, wherein they announced coordinated efforts in defense investments, intelligence sharing, cybersecurity resilience, and expanded joint operations—all aimed at strengthening regional deterrence and promoting a free and open Indo-Pacific.
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Today, Stratbase Institute is holding a forum titled “The Ninth Year of the Arbitral Victory: Defending the Rules-Based Order Through Reinforced Defense Capabilities and Partnerships.” Among the speakers are ambassadors from Australia, the UK, Canada, the EU, France, Germany, India, Japan, South Korea, New Zealand, the United States, and Vietnam—demonstrating the breadth of global support for the Philippines and for rules-based peace in the Indo-Pacific.
The forum reinforces a united front to uphold the rules-based order and safeguard the gains of the arbitral ruling—sending a clear message: defending the West Philippine Sea is a global imperative grounded in international law and sustained by strong partnerships.
We bank on this solidarity to defend our sovereignty and uphold peace, stability, and the rule of law in the region and beyond.
This article was originally released in the Philippine Daily Inquirer.
“Refusal to champion Philippine interests is a dereliction of sworn duty”
July 7, 2025
Prof. Victor Andres “Dindo” Manhit | Founder and CEO of Stratbase Group
That Chinese aggression of Philippine vessels right within our own Exclusive Economic Zone is taking place with alarming frequency does not make it any less reprehensible, legal, or morally right.
Just a few days ago, on June 20, Chinese Coast Guard (CCG) vessels once again harassed Philippine Bureau of Fisheries and Aquatic Resources (BFAR) vessels near Bajo de Masinloc. CCG ship 4106 shadowed and issued radio threats to the BRP Datu Daya and BRP Datu Bangkaya, falsely claiming the area as Chinese territory.
On the same day, other Philippine vessels—BRP Datu Taradapit and BRP Datu Tamblot—were also attacked with water cannons. The United States, South Korea, and New Zealand have publicly denounced these water cannon attacks.
These incidents are only the latest in the established dangerous pattern where China harasses Filipino fisherfolk, destroys our marine ecosystems, and blatantly ignores international law including the 2016 decision by the Permanent Court of Arbitration. It is imperative that as Filipinos, we protest these actions every step of the way, assert our sovereignty, and emphasize the supremacy of international law.
Unfortunately, we have leaders in our midst who, instead of championing Philippine interests, conduct themselves in a manner that betrays our trust.
Unfortunately, we have leaders in our midst who, rather than defending Philippine sovereignty with clarity and conviction, choose instead to cast doubt on our strategic direction. Instead of confronting the real dangers posed by Chinese aggression, they question the wisdom of our alliances and paint our foreign policy as overly reliant on partners who have consistently stood by us.
These remarks, while couched in calls for independence and neutrality, echo narratives long pushed by Beijing to weaken our resolve in the West Philippine Sea. By blurring the lines between neutrality and indifference, such statements risk undermining public understanding of the stakes and suggest a false equivalence between aggressor and ally.
When public officials hesitate to clearly stand on the side of our national interest, it raises serious concerns. Filipinos expect their leaders to be resolute in the face of external threats—not to muddy the waters or diminish the gravity of what is happening in our own waters.
**
Filipinos are well aware of the issue of China’s bullying at sea. Surveys have consistently shown that the people overwhelmingly support a firm position in the West Philippine Sea. In a February 2025 poll, eight of ten respondents said the government should strengthen alliances through joint patrols, joint sails, and military exercises to defend our maritime rights.
In a May 2025 survey, the majority of Filipinos – 72% — expressed preference for candidates who take a strong position against China. This distrust of pro-China political figures shows that the public is aware, informed, and unwilling to tolerate weak leadership. Leaders who pander to Beijing are losing public support—and rightfully so.
Externally, the drive to defend ourselves against incursions into our sovereignty is supported by the international community. This international support is not accidental—it is the result of the Marcos Jr. administration’s consistent diplomatic engagement, strengthened defense cooperation, and assertive transparency strategy to expose China’s aggression. The Philippines is fortunate to have like-minded countries that share our respect for and commitment to the established rules-based order. We are, thankfully, in good company.
The protection of our territory is spelled out in our Constitution. It is the embodiment of patriotism – loving what is ours and ensuring that no other entity lays claim to it, harms and threatens our people. China’s undeniable acts of aggression call for a response that is assertive and firm as much as it is diplomatic. We are a peace-loving nation, sure. But peace must not be mistaken for complacency and capitulation, even to a bigger power with a stronger military. This very principle is what is protected by international law.
We choose the officials who lead us because we believed them when they promised to champion our interests – above their own, above others’. This is exactly why we are rejecting those who are parroting the lines of a foreign aggressor, twisting the facts, and downplaying the implications of the aggression on the life of our nation.
The attitude of our officials must at least match the dedication of our military and the civilians bravely taking part in missions to assert our sovereign rights in the West Philippine Sea. The lack of courage to stand up to China’s bully tactics reveals fundamental flaws as a leader and public servant. What we need now is moral clarity and political courage.
The stakes are not abstract—they affect the livelihoods of our fisherfolk, the safety of our waters, and the dignity of our nation.
Leaders who remain vague, evasive, or sympathetic to aggression must be reminded: silence and equivocation, in the face of threats to sovereignty, is complicity. The Filipino people deserve—and demand—leaders who do not flinch in the defense of what is rightfully ours.
This article was originally released in BusinessWorld.
“Economic gains, uneven lives”
July 2, 2025
Prof. Victor Andres “Dindo” Manhit | Founder and CEO of Stratbase Group
One in two or 50 percent of families rated themselves poor, according to an April 23-28, 2025 survey conducted by the Social Weather Stations (SWS) among household heads across the country. Those who said they were not poor comprised 42 percent of respondents, while 8 percent said they were borderline poor/not poor. Self-rated poverty was highest in the Visayas at 67 percent. Mindanao came second at 61 percent, Balance Luzon at 43 percent, and Metro Manila at 33 percent.
Earlier in the month, or on April 11-15, 2025, the percentage of self-rated poor families was at 55 percent, from 52 percent in March, 51 percent in February, and 50 percent in January.
A record-high 42 percent of respondents rated themselves not poor in the said period, topping the previous record of 36 percent in March 2025. The percentage of those who said they were “not poor” increased in all areas, rising by 15 points in Metro Manila (45 percent to 60 percent), 13 points in Mindanao (16 percent to 29 percent), 7 points in Balance Luzon (44 percent to 51 percent), and 3 points in the Visayas (21 percent to 24 percent).
These findings highlight positive developments in poverty reduction and economic well-being in the Philippines this year. They also jibe with the Philippine Statistics Authority’s figures that say gross domestic product grew by 5.4 percent in the first quarter of this year, well within targets, and that headline inflation further slowed to 1.3 percent in May 2025 from 1.4 percent in April.
Still, much work needs to be done. A Pulse Asia Research, Inc. survey conducted in April 2025 showed that 70 percent of Filipinos remain highly concerned about controlling inflation and identified this issue as their most urgent national concern.
Meanwhile, 34 percent cited increasing the pay of workers and 26 percent are concerned about creating more jobs. PSA figures say unemployment rose to 4.1 percent—2.06 million individuals—in April 2025 from 3.9 percent in March. Underemployment also went up to 14.6 percent. Amid these, the SWS reported that self-rated joblessness climbed to 41.7 percent in March before easing slightly to 38.6 percent in April—figures significantly higher than those reported by the PSA. This discrepancy suggests that labor market difficulties may be deeper and more widespread than reflected in official statistics.
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The issue of poverty in the Philippines is not felt just by the individual. It is, instead, a family experience—from the parents to the children—being deprived of basic needs in the present and not being secure about how to survive in the immediate future.
While the Marcos Jr. administration has done many things to alleviate poverty and address the people’s economic concerns, it needs to calibrate its efforts in terms of focus and inclusion. The socioeconomic challenges that we face are interconnected, such that equitable access to resources and sustainable development for Filipino families must be the goal.
To do this, government efforts alone are not enough. Collaboration with the private sector and with civil society is a far better approach because these sectors bring to the table their own unique perspective and expertise in understanding the human condition.
The collaborative approach must be applied in finding lasting solutions to economic issues that hound the Filipino family. And just as different sectors must be tapped in finding solutions, various perspectives must also be taken to see the issues from different vantage points.
For example, adopting a governance perspective will allow officials to leverage self-rated poverty data to design realistic, family-centered programs for sustainable growth and inclusive development. A social protection system view expands social safety nets in empowering vulnerable families and narrowing poverty gaps.
An economic and labor market perspective tackles unemployment and underemployment by fostering job creation and improving labor market conditions, including efforts to raise workers’ pay and improve the income stability of families. Strategic planning and data-driven approaches bank on hard data to align programs with families’ needs and to improve access to essential services like transportation and telecommunication.
Collaboration with civil society and grassroots organizations will allow for stronger community-based programs to address cost-of-living challenges on the local level. Finally, issue-based action and advocacy will enable targeted programs to combat food insecurity and reduce regional disparities.
The challenges faced by the Filipino family can never be addressed by a single stroke. The government must acknowledge the nuances of each issue as seen through multiple perspectives. Ultimately, Filipino families will rise and fall with the economic and sociopolitical decisions made on their behalf and for their benefit.
This article was originally released in the Philippine Daily Inquirer.
“Accountability and transparency on trial”
June 16, 2025
Prof. Victor Andres “Dindo” Manhit | Founder and CEO of Stratbase Group
Last week’s political events are shaking the foundations of our government institutions to the core. That all this happened on the week of the commemoration of our country’s 127th Independence Day lends an even greater significance—and irony. As the Senate stalls on convening the impeachment trial, the disconnect between democratic values and political interests is appalling.
Though the Senate convened itself into an impeachment court, it made the unprecedented move of remanding the impeachment complaint to the House of Representatives, citing a much-debated technicality that required a certification from the House that the one-year rule was not violated. Responsively, the House—without losing precious time—issued a resolution certifying that the impeachment proceedings that it had initiated in February fully complied with the law. In effect, the Senate’s move assured the continuance of the impeachment trial in the 20th Congress with the newly elected senators as impeachment judges.
Widespread outrage from various sectors erupted outside the Senate and across social media spaces. Are our leaders serving the Filipino people—or simply shielding political allies for personal gain? To delay or in any way, undermine the impeachment process is to deny Filipinos the right to know the truth and to hold government officials accountable for their acts in office.
The impeachment case will test each senator-judge on their commitment to transparency, accountability, and justice. Its subsequent trial and eventual outcome will shape political dynamics beyond this administration.
The people are watching whether their elected representatives would in fact act on behalf of their interests. A Social Weather Stations survey, conducted in partnership with the Stratbase Group, revealed that 88 percent of Filipinos believe Vice President Sara Duterte must address the impeachment charges, answer to corruption allegations, and clear her name.
An earlier OCTA Research survey, conducted from April 20 to 24, 2025, showed that 78 percent of Filipinos want Duterte to face a Senate trial or impeachment court to formally respond to the charges.
These numbers are consistent and unequivocal: there is strong public demand not only for Duterte to face trial but also for the Senate to fulfill its constitutional duty to “forthwith proceed” with the impeachment process. The people don’t want confusing legalese spins.
On the other hand, the impeachment trial is the Vice President’s opportunity to face the charges and clear her name as she confidently claims.
It is thus baffling why some senators would do everything in their power to frustrate the democratic process when all that is being sought is to conduct the trial as the Constitution mandates, and for them, sitting as senator-judges, mete out fair judgment consistent with the facts and evidence.
Transparency and accountability are not just buzz words. They are sacred principles that demand concrete action and uncompromising reverence to the rule of law. Only this will ensure the kind of democracy and governance that our people deserve.
As citizens, we have the right to express our outrage. They have to know that they are accountable not to their political patrons but to the people who gave them the mandate and who pay their salaries. Those tasked to carry this out must not play God with the rules for the exigency of their political agenda.
The backlash has been swift and widespread coming from religious leaders, business groups, academia, and civil society alike. What we’re hearing is the voice of the people who’ve had enough—of the blatant cover-up, of the hypocrisy, of the delay, of the betrayal of public trust. This is a collective cry against the erosion of our democratic values.
The people demand that the impeachment trial of Duterte move forward—not as a political spectacle, but as a demonstration of our nation’s commitment to truth, accountability, and justice. Justice lies not only in finding someone guilty or innocent. It is also in ensuring that the process is observed and carried out in accordance with the letter and spirit of the law.
If the Senate fails to deliver justice, it sets a dangerous precedent: that the powerful can evade accountability, and our government institutions can be bent into tools of impunity and political abuse.
This article was originally released in the Philippine Daily Inquirer.
“Partnerships are the heart of strategic defense”
June 10, 2025
Prof. Victor Andres “Dindo” Manhit | Founder and CEO of Stratbase Group
On May 26, the Philippine Marine Corps and the United States Marine Corps opened the ninth iteration of the Kamandag Exercises, drills that aim to strengthen defense interoperability and promote regional peace and security in a free and open Indo-Pacific.
The Kamandag Exercises, which ran until June 6, featured scenario-driven drills including live-fire exercises, maritime strike operations, and counter-landing maneuvers—aimed at strengthening joint operational readiness and interoperability with the Philippines and allied forces.
Some 2,000 participants from both marine corps took part in the drills, with other countries like the Japan Ground Self-Defense Force, Republic of Korea Marine Corps, and United Kingdom Armed Forces also participating. Serving as observers were the Netherlands, Bahrain, Canada, New Zealand, among others.
These recent joint exercises demonstrate the Philippines’ effort to strengthen its defense capability while also fortifying its cooperation with other countries that, like it, are committed to peace, stability, and cooperation, with a view to maintaining the international rules-based order.
These are challenging times in the quest to maintain this order. Most recently, at the summit of the Association of Southeast Asian Nations (Asean) held in Kuala Lumpur, President Ferdinand Marcos Jr. appealed to our fellow Asean members to adopt a legally binding Code of Conduct in the South China Sea. The code, he said, is needed to prevent further escalation given the region’s volatility and potential to disrupt communities and supply chains.
Indeed, the Philippines is a key geopolitical actor in the Indo-Pacific region, thus the need to enhance its defense capabilities and expand its defense cooperation. The latter has also been evident in recent developments as the administration’s utmost priority.
Among the like-minded countries with which the Philippines has recently entered into agreements are Germany and New Zealand. Both countries support the development of the Philippines’ defense forces through training missions and joint military exercises.
On May 14, Philippine Defense Secretary Gilberto Teodoro and German Defense Minister Boris Pistorius signed the defense cooperation arrangement, paving the way for joint military activities between the two countries. The signing was held on the sidelines of the United Nations Peacekeeping Ministerial conference in Berlin.
Following the signing, both ministers convened for the 3rd Philippines-Germany Security and Defense Staff Talks to review and finalize proposed joint activities and initiatives to be implemented under the new arrangement.
During a forum we recently hosted together with Konrad-Adenauer-Stiftung Philippines, the consensus was that in the 70 years of diplomatic relationship between the Philippines and Germany, the partnership has entered into a new era, from diplomacy to invigorated, strategic ties.
And then, on April 30, the Philippines and New Zealand signed the Visiting Forces Agreement. The VFA enables joint military exercises and deeper defense cooperation between the two countries, underscoring both countries’ commitment to upholding international law and maritime security in the Indo-Pacific.
Events in the West Philippine Sea in recent years show that the Philippines faces escalating tensions in its maritime territory, with threats spanning multiple domains. We deal with them on our own, tailor fitting our military priorities and allocating resources toward strengthening our forces. On this note, the President, who ordered the courtesy resignation of his Cabinet members and other officials, rejected the resignation of Defense Secretary Gilberto Teodoro. This signals the continued confidence in the way the Defense Department is being steered in order to achieve our goals. This will also enable the continuity of initiatives begun by the current administration in pursuing security and territorial integrity under the ambit of international law.
But cooperation with other nations is equally crucial.
More than their help in modernizing our military, their steady presence and reliable support for our strategic efforts in upholding our maritime interests—particularly in the West Philippine Sea, and in the areas of cybersecurity, defense armament, and logistics—are priceless. We are thankful for these like-minded countries. These defense cooperation agreements come at a pivotal time.
Beyond our national interests, there is a broader objective: maintaining a stable and peaceful Indo-Pacific region. Our strategic partners share a commitment to Indo-Pacific stability, emphasizing maritime security through the protection of open sea lanes and freedom of navigation.
Threats notwithstanding, the Philippines and its partners will build on shared values of trust, peace, and mutual cooperation for a secure nation and a stable region.
This article was originally released in the Philippine Daily Inquirer.
“The Balikatan: A demonstration of full-scale commitment to peace”
May 5, 2025
Prof. Victor Andres “Dindo” Manhit | Founder and CEO of Stratbase Group
“Balikatan” means, literally, standing shoulder to shoulder. The annual bilateral defense drill has long symbolized the enduring alliance between the Philippines and the United States.
This year’s iteration of the Balikatan, the 40th, is imbued with an even greater significance. It takes place at a critical point where security no longer only refers to the defense of physical territory. Over time, there have emerged numerous other ways in which security can be threatened. This is also a time when many external factors threaten to challenge the two countries’ mutual commitment to each other and to peace.
Indeed, the Balikatan Exercises that began on April 21 this year stands out both in scale and in strategic importance.
According to the Armed Forces of the Philippines (AFP), this year’s Balikatan is the most comprehensive iteration of the annual bilateral exercise to date. It is a full-scale defense drill designed to enhance interoperability between the two nations’ militaries “under the most realistic and challenging conditions.”
Balikatan 2025 is unique for its multi-domain focus. It spans traditional air, land, sea, and space operations, featuring components such as Integrated Air and Missile Defense (IAMD), Maritime Strike (MARSTRIKE), and Counter Landing Live Fire Exercises (CLLF).
At the same time, it also tries to address emerging threats in the cyber and digital domains. According to the AFP, the exercises include Combined Joint All-Domain Operations (CJADO), These high-level drills are complemented by the Cyber Defense Exercise (CYDEX), a key initiative that brings together cyber units from both countries to enhance resilience and coordination in defending critical digital infrastructure.
What this year’s Balikatan represents is credible deterrence, a product of the Philippines’ ongoing military modernization that also enjoys the growing support of like-minded nations like the US.
The modernization of the military is an essential part of beefing up the Philippines’ defense capabilities. Thus, a range of military assets acquired through the Philippines’ ongoing modernization efforts are set to be tested during Balikatan 2025, including the C-Star cruise missile, the Philippine Navy’s most advanced anti-ship weapon.
These will be accompanied by a wide array of air assets.
There will also be a deployment of advanced military assets from the US, including the NMESIS coastal anti-ship missile platform. As stated by the US Ambassador to the Philippines MaryKay Carlson, the US is “committed to bolstering deterrence and there is no better way to do that than Balikatan. Through the additional deployment of NMESIS, the full battle test, and all domain capabilities training, our combined joint force is taking our alliance to the next level.”
Then again, when we say like-minded nations, we do not just refer to the US. Many other countries are taking part in the Balikatan as either active participants or observers. According to the Department of Foreign Affairs and the AFP, these countries include Japan, Australia, the United Kingdom, France, Canada, Germany, the Czech Republic, Poland, and Colombia.
For the first time, the Japan Maritime Self-Defense Force (JMSDF) is joining the Multilateral Maritime Event (MME), a positive development following the ratification of the Japan-Philippines Reciprocal Access Agreement.
In a statement, the Australian Government emphasized that the participation of around 260 members of the Australian Defense Force is a way of “improving interoperability with partner nations and strengthening defense cooperation.”
The United Kingdom, which had previously participated only as an observer, has now signified that its defense forces will actively take part in this year’s exercise.
MUTUAL DEFENSE TREATY
The Balikatan is rooted in the 1951 Mutual Defense Treaty between the US and the Philippines. Amid global events and factors that threaten peace, and despite numerous points of uncertainty, Balikatan 2025 affirms the alliance between the two countries, described by no less than US officials as “ironclad” on numerous occasions. Through expanded troop deployments, the introduction of cutting-edge military technology, and strengthened multilateral engagement, the exercises clearly demonstrate that the United States remains deeply committed to supporting the Philippines and upholding a free and open Indo-Pacific.
No doubt, the geopolitical landscape has become more complex. Today the Philippines is battling several simultaneous threats on different fronts, necessitating fast, decisive action as well as cooperation with like-minded nations. The West Philippine Sea, despite the favorable ruling of the Permanent Court of Arbitration in 2016, and despite the popular global acknowledgment as reflected in its entry in Google Maps, remains persistently challenged by audacious actors asserting their dubious claims.
Amid all these, the Balikatan sends a strong and unequivocal message: that credible deterrence is built on strong partnerships, modern capabilities, and collective resolve. By expanding the scale, scope, and participation of the exercises, the Philippines is not only reinforcing its alliance with the United States but also demonstrating its strategic importance in promoting regional security and safeguarding the rules-based international order.
The geopolitical challenges we are facing are daunting, but our alliances and partnerships with countries who share our values and their commitment to support us in pursuit of our common goal emboldens us to stand strong. The Balikatan has always been an important part of our defense and diplomacy, and now, more than ever, it assures us we are not alone in facing the threats that confront us.
This article was originally released in the BusinessWorld.
“Secure, affordable, competitive energy sector“
April 28, 2025
Prof. Victor Andres “Dindo” Manhit | Founder and CEO of Stratbase Group
Global powers are voicing concern over the aggression and bullying that the Philippines is facing from China in the West Philippine Sea.
The most prosperous nations of the world—Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States, through their foreign ministers, as well as the High Representative of the European Union—met on March 12-14 in Quebec, Canada. The group issued a collective statement expressing their concern over the situation in the South China Sea, including the increasing use of dangerous maneuvers and water cannons against Philippine vessels.
These nations remain concerned about China’s military buildup and the rapid expansion of its nuclear arsenal. They called on China to engage in strategic risk reduction discussions and promote stability through transparency. They emphasized that China should not conduct or condone activities aimed at undermining the security and safety of our communities and the integrity of our democratic institutions.
The G7 similarly reaffirmed its commitment to an Indo-Pacific that is free, open, secure, and thriving—grounded in respect for sovereignty, territorial integrity, peaceful dispute resolution, and the protection of fundamental freedoms and human rights. It characterized China’s actions as “illicit, provocative, coercive, and dangerous.”
It is heartening to hear such support, but China shows no signs of backing down, pushing its gray zone operations to new extremes. In the meantime, as the Philippines grapples with its own domestic issues—upcoming elections, political rivalries, and economic challenges—it has to defend itself and assert its sovereignty against China. It needs the help of its friends.
For Women’s Month, we at Stratbase reiterated the need to explore partnerships with like-minded nations such as Australia, and ensure that all sectors of society, including women, are involved. In partnership with the Australian Embassy, we held a forum on March 14 called “Women in the Maritime Space: Securing the Future of the Indo-Pacific through Strategic Collaboration.”
The speakers included Secretary Antonia Yulo Loyzaga, of the Department of Environment and Natural Resources (DENR) who shared some of her agency’s efforts toward environmental protection and sustainability in the West Philippine Sea.
“At the DENR, our contribution to protecting the Philippines’ maritime domain lies primarily in advancing climate action, conserving marine biodiversity, and the overall health of our ocean ecosystems beyond our national jurisdiction,” she said.
“Recognizing this momentum, we are compelled to act with the same level of urgency and resolve—ensuring that our work strengthens the country’s maritime security, while safeguarding the natural resources that sustain millions of Filipino lives.”
Among the initiatives of the DENR is the establishment of eight marine scientific stations, including a new research station on Pag-asa Island, and the upgrading of the Tubbataha Reef Ranger Station and the Snake Island Station in Palawan.
Last February, the DENR conducted integrated research on biodiversity conservation and carbon sequestration in the West Philippine Sea (BIOCONSEQ-WPS Project) in Pag-asa Island. In April, more work is expected to be done at the Recto Bank and Rizal Reef.
But it’s not just the government that is making strides in our maritime defense. The Atin Ito Coalition said it would embark on its third civilian mission in the West Philippine Sea and hold a “Peace and Solidarity Sea Concert” on May 25.
Safeguarding the West Philippine Sea and reinvigorating partnerships have certainly become a national priority. A Stratbase-commissioned Social Weather Stations survey in February revealed that 77 percent, or eight out of 10 Filipinos, agree that the Philippine government must further strengthen its alliance with other countries through joint patrols, joint sails, and joint military exercises to assert and defend the Philippines’ territorial and economic rights in the West Philippine Sea.
According to the same survey, and in view of the coming elections on May 12, 78 percent (eight out of 10 Filipinos) would vote for a candidate who believes that the Philippines must assert its rights against China’s aggressive actions in the West Philippine Sea.
This is no longer just the concern of the Armed Forces, or the Department of Foreign Affairs. Instead, events in recent years and months and the escalating audacity with which China has been trampling on our rights, have become an issue that strikes at the core of who we are as Filipinos.
This article was originally released in the Philippine Daily Inquirer.
“Still ironclad: US reaffirms its commitment to alliance with the Philippines“
April 9, 2025
Prof. Victor Andres “Dindo” Manhit | Founder and CEO of Stratbase Group
United States Defense Secretary Pete Hegseth’s visit to the Philippines last week underscored the two countries’ deep ties amid — or despite — an increasingly uncertain environment.
The uncertainty comes from many factors. There were initial misgivings regarding the commitment of the new administration of US President Donald Trump, who has been making unconventional executive decisions not only domestically but also on foreign policy.
He announced that he would impose sweeping tariffs on American imports from the rest of the world. These will take effect today, April 9.
And then, here at home, the Philippines continues to grapple with China’s provocative maneuvers in the West Philippine Sea. Furthermore, reported spying activities here have given rise to deep concerns regarding its next moves.
The fact that Mr. Hegseth chose to make the Philippines his initial stop in his Indo-Pacific tour — his first official overseas visit as defense chief — is a strong indication of Manila’s strategic importance to Washington.
That the alliance of the US and the Philippines is “ironclad” has been a characterization often invoked at the height of China’s provocative acts in recent years. Changes notwithstanding, Mr. Hegseth’s visit showed that this remains so.
He met with his counterpart, Defense Secretary Gilberto Teodoro, Jr. In their conversation, the former underscored America’s enduring commitment to the Philippines and pledged continuity in US security assistance, including the continuation of $500 million in military financing. This sends a strong signal that programs initiated under the previous administration will not only be maintained but strengthened under the new US administration.
Mr. Hegseth’s visit, then, did not just reaffirm existing ties — it elevated them. Just days after his engagements in Manila, the US State Department approved a potential Foreign Military Sale to the Philippines involving 20 F-16 fighter jets. This move reflects Washington’s view of the Philippines’ strategic importance in the Indo-Pacific region.
“This proposed sale will support the foreign policy and national security of the United States by helping to improve the security of a strategic partner that continues to be an important force for political stability, peace, and economic progress in Southeast Asia,” the announcement stated.
During their meeting, the two defense chiefs outlined a bold and forward-looking defense agenda, agreeing on several initiatives that will significantly enhance interoperability, readiness, and joint capability between the US and Philippine armed forces.
There are several initiatives: the deployment of advanced capabilities, for instance, includes the Navy-Marine Expeditionary Ship Interdiction System (NMESIS), a cutting-edge mobile anti-ship missile platform, along with highly capable unmanned surface vessels. These assets are designed to provide strategic coverage of vital sea lanes from Philippine coastal positions to reinforce deterrence. This will form part of the 40th iteration of the Balikatan exercises scheduled from April 21 to May 9 this year.
This year’s Balikatan will serve as a clear demonstration of this deepened partnership. With new technologies, joint exercise, and high-level strategic alignment, the exercise will not only boost interoperability but also send a clear signal to the region — that the US and the Philippines are ready to respond to any challenge, together.
Filipinos themselves are well aware of the strategic importance of such an exercise. In a Stratbase commissioned survey conducted last month by SWS, the findings showed that 77% of Filipinos agree that the Philippine government must further strengthen its alliance with other countries. This will be accomplished through joint patrols, joint sails, and joint military exercises to assert and defend the Philippines’ territorial and economic rights in the West Philippine Sea.
Indeed, as Balikatan 2025 draws near, Filipinos can take confidence in the strengthening of the Philippines’ defensive posture, backed by the world’s most powerful military.
Other initiatives that were discussed include the special operations forces training to be held in Batanes, the crafting of a defense industrial cooperation vision statement, and a bilateral cybersecurity campaign.
The new Defense Industrial Cooperation Vision Statement was released a few days before Mr. Hegseth’s visit, and it outlines plans for co-production of unmanned systems, enhanced logistics cooperation, and the reduction of barriers to defense technology transfer — promoting not only maritime security but also economic security.
“The United States and the Philippines are committed to a strong and enduring alliance that is anchored in a shared, ironclad commitment to a secure and prosperous Indo-Pacific region. Built on the 1951 Mutual Defense Treaty, the 1998 Visiting Forces Agreement, and the 2014 Enhanced Defense Cooperation Agreement, the United States and the Philippines have developed close and continuing bilateral defense cooperation. Defense and security cooperation has been a vital pillar of engagement in the ever-deepening partnership between the United States and the Philippines,” the first paragraph of the statement read.
Finally, because both countries recognize the importance of digital resilience, they have launched a campaign to strengthen cyber defenses. This includes the development of secure defense networks, a capable cybersecurity workforce, and operational cooperation.
These initiatives go beyond building military capability. They position the US-Philippines alliance as a credible force for deterrence in the face of mounting threats in the region. As coercive actions in the West Philippine Sea continue to challenge Philippine sovereignty, we take comfort in the message: the Philippines does not stand alone.
This article was originally published in BusinessWorld.
“Maritime security is a core issue for Filipinos“
April 2, 2025
Prof. Victor Andres “Dindo” Manhit | Founder and CEO of Stratbase Group
Global powers are voicing concern over the aggression and bullying that the Philippines is facing from China in the West Philippine Sea.
The most prosperous nations of the world—Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States, through their foreign ministers, as well as the High Representative of the European Union—met on March 12-14 in Quebec, Canada. The group issued a collective statement expressing their concern over the situation in the South China Sea, including the increasing use of dangerous maneuvers and water cannons against Philippine vessels.
These nations remain concerned about China’s military buildup and the rapid expansion of its nuclear arsenal. They called on China to engage in strategic risk reduction discussions and promote stability through transparency. They emphasized that China should not conduct or condone activities aimed at undermining the security and safety of our communities and the integrity of our democratic institutions.
The G7 similarly reaffirmed its commitment to an Indo-Pacific that is free, open, secure, and thriving—grounded in respect for sovereignty, territorial integrity, peaceful dispute resolution, and the protection of fundamental freedoms and human rights. It characterized China’s actions as “illicit, provocative, coercive, and dangerous.”
It is heartening to hear such support, but China shows no signs of backing down, pushing its gray zone operations to new extremes. In the meantime, as the Philippines grapples with its own domestic issues—upcoming elections, political rivalries, and economic challenges—it has to defend itself and assert its sovereignty against China. It needs the help of its friends.
For Women’s Month, we at Stratbase reiterated the need to explore partnerships with like-minded nations such as Australia, and ensure that all sectors of society, including women, are involved. In partnership with the Australian Embassy, we held a forum on March 14 called “Women in the Maritime Space: Securing the Future of the Indo-Pacific through Strategic Collaboration.”
The speakers included Secretary Antonia Yulo Loyzaga, of the Department of Environment and Natural Resources (DENR) who shared some of her agency’s efforts toward environmental protection and sustainability in the West Philippine Sea.
“At the DENR, our contribution to protecting the Philippines’ maritime domain lies primarily in advancing climate action, conserving marine biodiversity, and the overall health of our ocean ecosystems beyond our national jurisdiction,” she said.
“Recognizing this momentum, we are compelled to act with the same level of urgency and resolve—ensuring that our work strengthens the country’s maritime security, while safeguarding the natural resources that sustain millions of Filipino lives.”
Among the initiatives of the DENR is the establishment of eight marine scientific stations, including a new research station on Pag-asa Island, and the upgrading of the Tubbataha Reef Ranger Station and the Snake Island Station in Palawan.
Last February, the DENR conducted integrated research on biodiversity conservation and carbon sequestration in the West Philippine Sea (BIOCONSEQ-WPS Project) in Pag-asa Island. In April, more work is expected to be done at the Recto Bank and Rizal Reef.
But it’s not just the government that is making strides in our maritime defense. The Atin Ito Coalition said it would embark on its third civilian mission in the West Philippine Sea and hold a “Peace and Solidarity Sea Concert” on May 25.
Safeguarding the West Philippine Sea and reinvigorating partnerships have certainly become a national priority. A Stratbase-commissioned Social Weather Stations survey in February revealed that 77 percent, or eight out of 10 Filipinos, agree that the Philippine government must further strengthen its alliance with other countries through joint patrols, joint sails, and joint military exercises to assert and defend the Philippines’ territorial and economic rights in the West Philippine Sea.
According to the same survey, and in view of the coming elections on May 12, 78 percent (eight out of 10 Filipinos) would vote for a candidate who believes that the Philippines must assert its rights against China’s aggressive actions in the West Philippine Sea.
This is no longer just the concern of the Armed Forces, or the Department of Foreign Affairs. Instead, events in recent years and months and the escalating audacity with which China has been trampling on our rights, have become an issue that strikes at the core of who we are as Filipinos.
This article was originally released in the Philippine Daily Inquirer.
“Embracing our identity as a maritime nation“
March 26, 2025
Prof. Victor Andres “Dindo” Manhit | Founder and CEO of Stratbase Group
There are many ways to characterize the Philippines as a nation. We have a young, robust population. We are the second-largest archipelagic country. We have more sea than land, and our coastline is the fourth-longest in the world. We belong to the 18 mega-diverse countries in the world. We are a maritime nation.
The current administration of President Ferdinand Marcos Jr. has acknowledged our identity as a maritime nation. Our maritime identity is “an intrinsic and undeniable part of the national Filipino character,” he said during the ceremonial signing of the historic Philippine Maritime Zones Act and the Philippine Archipelagic Sea Lanes Act in November last year.
And when he talked about the Comprehensive Archipelagic Defense Concept (CADC) during the Shangri-La Dialogue, Asia’s premier defense summit held in Singapore in May 2024, he said it was intended to bolster the Philippines’ capacity to protect its waters and maritime resources.
Indeed, the opportunities for a maritime nation such as ours are immense. Our resources are vast, and our potential is high. We would be able to enhance food security by promoting responsible fisheries and aquaculture, drive economic growth by expanding marine-based industries such as tourism and shipbuilding while creating more jobs, and strengthen energy security through offshore wind projects.
As a result, the Philippines can generate more jobs, boost local industries, and improve the quality of life for its people while ensuring the sustainable use of its vast marine resources.
During his second State of the Nation Address in 2023, President Marcos emphasized the need to develop the blue economy. This directive is embodied in Senate Bill 2450, or the Blue Economy Act, considered priority legislation. The bill aims to adopt the blue economy as a framework for the sustainable and responsible use of the country’s marine resources, positioning them as a key pillar of the national economy.
It is also expected to boost local industries and generate jobs by promoting sustainable ocean-based economic activities such as fisheries, aquaculture, marine tourism, shipbuilding, renewable energy, and maritime logistics.
A specific provision is the establishment of Blue Economic Zones (BEZs) to encourage investments and economic activities in the country’s coastal and maritime areas. These zones will serve as hubs for marine-based industries and help ensure the sustainable management of the country’s vast ocean resources.
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But while there are opportunities, there are also threats. This is why alongside exploring and maximizing the potential of the Philippines’ blue economy, we also need to be mindful of the risks confronting us as a maritime nation.
These threats come in different forms and are multi-faceted.
We have to deal with overfishing and habitat degradation – years of irresponsible exploitation of resources have led to these conditions. Climate change is also causing adverse effects on our seas and corals, posing risks to their sustainability.
Finally, there are increasingly aggressive and provocative actions in the West Philippine Sea. These acts threaten our sovereign rights and access to vital areas and resources. They prevent the Philippine economy from maximizing the benefits from resources within our Exclusive Economic Zone. They try to make a mockery of the rules-based international order and insult the values and principles that the Philippines and other members of the international community hold dear.
They also put the safety and livelihood of Filipino fisherfolk in peril.
In order to address these threats and to continue working toward achieving the potential of our blue economy, the Philippines is correct to adopt a comprehensive and coordinated approach that integrates maritime security, environmental protection, and sustainable economic policies.
We are fortunate to be able to collaborate with like-minded countries. Another blue-economy nation that comes to mind is France, with its extensive expertise in harnessing its own and the marine resources of its territories. By forging stronger partnerships with France, the Philippines can harness its maritime resources more effectively to ensure long-term economic growth while safeguarding its marine environment.
The French Embassy in the Philippines has partnered with the Stratbase Institute in organizing a hybrid event titled “Strengthening Philippines-France Cooperation for a Sustainable Blue Economy.”
The event, happening this Friday, March 28, will focus on strategic blue economy industries where strengthened bilateral cooperation between France and the Philippines could promote growth. It will bring together key stakeholders from the government, diplomatic community, the academe, and think tanks to discuss challenges and actions needed to unlock the potential of the Philippines’ blue economy.
I look forward to the conversations we will have in this event. The avenues for discussion and collaboration are as vast as the potential of our seas. We have now identified this growth area, bolstered by pronouncements from the Executive and initiatives from the Legislative. Now we are emboldened by the show of cooperation and partnership by an established blue nation as France, and driven by a desire to maximize the benefits of our resources and channel them to the ultimate good of our people. Let’s make our blue economy work, because this is who we are.
“Governance and growth: Twin concepts in building a nation“
March 22, 2025
Rupert Paul Manhit | COO of Stratbase Group
This month has especially been trying for Philippine politics. Reports and different narratives on the arrest of former President Rodrigo Duterte dominate the news. This has heightened polarization anew, pitting one political camp against each other. The followers of former President Duterte are angry as he is now in the custody of the ICC. The impeachment trial of Vice President Sara Duterte deepened political divisions.
The noisy Duterte supporters protesting these developments are well within their rights. Political expression is a cornerstone of democracy — so long as they do not resort to violence and fake news. These issues emphasize how the rule of law applies to all and must be applied evenly. No individual is above accountability no matter how powerful they might be. The International Criminal Court is a manifestation of the workings of the rule of law on an international level.
The rule of law provides stability and confidence—essentials not only for a functioning society but also for attracting business investment. The Philippines has long acknowledged the role of foreign investments in bolstering economic growth and generating jobs for Filipinos. For this year, the government is aiming to achieve an economic growth of between 6% and 8%; an investment-led growth is ideal.
Thus, efforts of the government to make the Philippines attractive to investors should revolve around stability and confidence, and these could only be achieved through the pursuit of good governance and following the rule of law.
To govern well, an administration must be able to address people’s top concerns. A Pulse Asia survey commissioned by the Stratbase Group conducted February 20-26, 2025 found that five of the top 10 most urgent national concerns in the Philippines are largely economic. Controlling inflation ranked as the highest priority, identified by 73% of Filipinos. Other key concerns include increasing workers’ pay (32%), reducing poverty (24%), creating more jobs (24%), and addressing involuntary hunger (18%).
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What does it mean for economic growth to be driven by investments?
This kind of growth hinges on investments in infrastructure and manufacturing industries. Through these big-ticket initiatives, the Philippines can create jobs, raise incomes, and continue to pump a resilient economy. These investments will generate a multiplier effect, fueling economic progress that would in turn give way to even more investments.
Public-private partnerships (PPPs) are crucial because it synergizes the leadership and vision of the government with the efficiency and performance capabilities of the private sector in terms of access to capital and technical expertise.
As of February 2025, a total of 187 strategic investments in the sectors of renewable energy, digital infrastructure, food security, and manufacturing were certified amounting to PHP 4.6 trillion. These investments are expected to generate 300,000 jobs for Filipinos—a testament that investments can drives a trickle-down effect that directly benefits its citizens. With stable employment, more Filipinos can afford essential necessities and further bolsters an already strong consumption economy.
Between planning and execution lies a vast field of possibilities, and government offices like the Department of Budget and Management (DBM) and the Anti-Red Tape Authority (ARTA) have been instrumental in streamlining regulatory and administrative processes that tend to frustrate businesses with time wasting bureaucratic barriers. We are hopeful that local government units will follow suit the executive branch.
Initiatives to ensure a transparent conduct of government transactions were beefed up. In July 2024, President Ferdinand Marcos Jr. signed the New Government Procurement Act (NGPA), a landmark anti-corruption measure introducing open contracting for full transparency in procurement. The revival of the Digital Information for Monitoring and Evaluation (Project DIME) also strengthens oversight, using satellites, drones, and geotagging to prevent “ghost projects” and ensure infrastructure funds translate into real progress.
Meanwhile, ARTA’s electronic Business One-Stop Shop (eBOSS) has streamlined and digitalized government processes. As of February 2025, almost 200 LGUs are fully compliant, highlighting the significant reduction in business permit processing times and increase in registration and revenues.
President Marcos’ Executive Order 18 on Strategic Investments Green Lanes must be converted into a law in order to further support the initiatives of ARTA.
At the core of these initiatives is a commitment to ensuring that every peso spent on infrastructure and every investment received translates into tangible benefits for the Filipino people.
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An example of foreign investments in our country is the construction of the South Commuter Railway Project (SCRP), a section of the North-South Commuter Railway. It is a nearly 55-kilometer modern suburban railway line connecting Metro Manila and Calamba City. It is expected to reduce travel time by 50%. It also aims to contribute in reducing greenhouse gas emissions in the country, in line with our climate change agenda, as well as in generating jobs for Filipinos.
ACCIONA, a global leader in sustainable infrastructure and renewable energy, has commenced the construction of the permanent works on the SCRP this month. All around the globe, ACCIONA has built more than 3,000 km of rail track and 1,200km of high-speed lines. Now, they are bringing their expertise to the Philippines.
This example shows us that attracting investments through good governance is possible.
Governance and business are deeply connected. Attracting investors to the Philippines requires more than a business-first approach—it demands strong governance that addresses broader economic and policy dynamics harmonized towards achieving sustained and inclusive prosperity.
Investors pay close attention to how a country is governed—whether technology is used to streamline transactions and reduce corruption, and whether officials are held accountable for misconduct.
Upholding the rule of law promotes accountability and fairness, strengthens institutions, and gives businesses confidence that their investments are secure. Economic growth cannot happen without effective governance. For the Philippines to achieve real, investment-driven progress, both must go hand in hand.
This article was originally published in Philstar.
“Defense transcends physical territories”
March 14, 2025
Prof. Victor Andres “Dindo” Manhit | Founder and CEO of Stratbase Group
The defense of a nation is usually contemplated in terms of the protection of territories. Each country has its own bounds, within which it is free to do as it deems right. Any foreign country infringing into another’s established domain is a violation of international law and basic decorum.
China’s recent actions in the West Philippine Sea, for instance, are clearly an issue of national defense. How else can we present the presence of a so-called monster ship, the use of military-grade laser or of water cannons, the sideswiping of Philippine vessels, and even that audacious act of a helicopter coming within just three meters of a Philippine aircraft?
The Philippines is right to exhaust all diplomatic measures to protest such aggressive acts. Our military has, in the best interest of the nation, pivoted its approach so that it could now focus on external defense.
But this is not all there is to defense.
Times are changing fast, and technology has opened up new avenues for communication, work, and study. The new normal includes greater reliance on technology. This is also evident in how digital interconnectedness has enabled economic growth and development. Corporations and industries rely on technology to facilitate the exchange of goods and services. Our national leaders have themselves announced that it is their aim to make the Philippines a digitally powered economy.
But this new, convenient world could come at a price.
Because we have come to rely on the ease and convenience offered by technology, we also become easy prey to those with sinister motives, whether these are financial, personal, or political, and whether they are acting on their own or are sponsored by a nation-state. These criminal elements are able to achieve their objectives without firing a single shot or launching a single plane or boat. They never show their faces. And yet they are often able to get what they want.
It is precisely because of this that cyberattackers have evolved into modern-day rogues. It is against this new breed of attackers that we have to protect our security. The ways in which they cause damage are many: data breaches, scams, and fraud, identity theft, and information warfare – specifically misinformation and disinformation.
Just look at the current propaganda being spread on how the island of Palawan does not belong to the Philippines. We can always refute this using what we know, but what about the many others who are easily swayed by propaganda or do not see the reason for this move?
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As the 2025 midterm elections draw near, it is critical to reinforce cyber defense capabilities especially in combating foreign malign influence, and disinformation and misinformation campaigns via social media.
The latter is especially alarming given the fact that the latest Pulse Asia survey conducted from January 18 to 25 this year showed that eight in ten Filipinos use the internet as a source of news. The same survey revealed that 98% of Filipinos use Facebook and 89% use YouTube to read, listen to, or watch the news.
Unfortunately, not all Filipinos are aware that just because something is on social media does not mean it should be believed. Social media, which was once heralded as a force for freedom and democracy, has come under increasing scrutiny for its role in (1) amplifying disinformation, (2) public opinion manipulation, (3) inciting division/polarization, and (4) lowering levels of trust in traditional media and democratic institutions.
Knowing the power of social media, candidates are allotting a significant portion of the campaign funds to use this platform to shape public opinion, boost their political agendas and messaging, and propagate ideas. This would be all right if none of them resorted to misinformation and disinformation to mislead the public.
The prevalence of digital consumption among our people has an accompanying responsibility – making sure that we do not fall prey to inauthentic and misleading material online. The task of ensuring that our people are discerning consumers of digital information is a shared burden among the government, the private sector, civil society including the media and schools, and the families and individuals themselves.
As technology becomes integral to our daily lives, we increasingly depend on information from digital platforms to decide whom to vote for and whom to reject. Thus, technology influences how we engage in our country’s democratic exercise. We must protect cyberspace with the same vigilance we devote to defending our territorial and maritime domains.
This article was originally published in the Philippine Daily Inquirer.
“Accelerating the transport infra agenda“
February 28, 2025
Prof. Victor Andres “Dindo” Manhit | Founder and CEO of Stratbase Group
When people are appointed to a position, they are usually expected to take some time learning the ropes, so to speak, or gathering knowledge on what the job entails. For some, the learning curve is steady; for others, it could be steep.
Newly appointed Transportation Secretary Vince Dizon has no such problem. He is most definitely hitting the ground running.
I have known Dizon for many, many years, starting from his days as an outstanding associate here at the Stratbase Institute. I never doubted that this young man would go places given his natural intelligence and leadership, and his keen sense of what is urgent and what will be the next big thing. His career path led to such key posts as presidential adviser for flagship programs and projects, and president and chief executive officer of the Bases Conversion and Development Authority.
In this latter role, his leadership was instrumental in projects such as the New Clark City and the Clark International Airport’s new passenger terminal building. He also had some experience in the private sector as chief regulatory officer of Prime Infrastructure Holdings.
All these will be instrumental as he takes the helm of the Department of Transportation (DOTr), which is saddled with numerous strategic challenges.
Dizon’s main task is to help implement the government’s flagship infrastructure program, “Build better more (BBM).” The BBM program seeks to sustain annual infrastructure spending at 5 to 6 percent of the Philippines’ GDP. It is composed of 186 infrastructure flagship projects on physical connectivity, water resources, agriculture, health, digital connectivity, power and energy, education, and other infrastructure, which are collectively worth P9.60 trillion.
The Marcos administration’s acknowledgment of the importance of public-private partnerships (PPP) represents a strategic shift toward more balanced and dynamic development strategies. It is through PPP that the infrastructure needs of the Philippines will be expedited. It is an avenue to build a culture of cooperation that can, in turn, drive long-term development and progress.
But while these plans are sound and good for the country, the administration does not have a lot of time; it appears that some prioritization is in order if officials truly want to make the best of the remaining half of the administration.
In the transportation sector alone, there are so many contending issues that need to be addressed. However, we believe that railway and mass transport projects must be its focus, given its potential contribution to the economy through the number of people and the volume of goods and services that would be affected.
Specifically, railway and mass transport projects will help address traffic congestion and mobilize products and services. Expanding rail networks—which face a significant number of challenges, particularly in terms of project execution, cost overruns, and the management of critical infrastructure developments—ensures long-term solutions to urban congestion and interregional connectivity.
We can think of at least three strategic railway projects that must be advanced.
The North-South Commuter Railway is currently experiencing delays due to issues in right of way (ROW) acquisition. There are also unpaid claims from contractors amounting to P26 billion. The PNR line was also closed last year, specifically the Alabang to Tutuban route. However, no construction has been made.
Thus, if the DOTr is committed to delivering high-impact projects such as this, addressing ROW is the first step to move the project forward.
Another rail project is the MRT 7, a project led by the San Miguel Corp. This has also been long delayed, with still no movements in the road component that includes a 22-kilometer highway to connect San Jose Del Monte, Bulacan to the Bocaue/Balagtas Interchange at North Luzon Expressway.
Finally, the LRT 1 Cavite Extension from Sucat Station to Bacoor Station must be pushed, as do projects to connect LRT-1 from Roosevelt (FPJ) Station to the Grand Central Station in Trinoma.
Thus, the main tasks would be to ensure that critical railway projects move forward in the project development cycle, resolve ROW issues and payment to contractors, and ensure interconnectivity among transport modes for a more seamless commuter experience.
Dizon will no doubt take stock of what has been accomplished by his predecessor to assess the progress of all projects across different stages of the project development cycle and build from there. He knows the demands of the job, and I can only wish him luck and assure him of our support.
This article was originally released in the Philippine Daily Inquirer.
“Going full throttle: Driving the build better more vision“
February 22, 2025
Rupert Paul Manhit | COO of Stratbase Group
I was happy to hear that Vince Dizon had been appointed the next Secretary of the Department of Transportation. I know his strengths, having practically known him since our younger years. I know of his qualities that have made him suited to take on the task ahead of him now.
These tasks are sure not easy.
Infrastructure is a buzz word these days, and it sounds as though it could easily be the key, as it actually is, to a nation’s progress and development.
But what exactly does it take to complete a single infrastructure project? The planning, the access to funds and technical expertise, the scale of the undertaking, the administrative issues, the management of the interests of the different stakeholders, the relatively long period between conception and completion, and all other challenges foreseen or not — to say it is difficult would be an understatement.
The previous transport secretary, Jaime Bautista, identified one major hurdle in Philippine infrastructure issues: right of way. He highlighted the need for closer coordination among government agencies to resolve disputes and facilitate project progression.
Indeed, addressing ROW bottlenecks is key to delivering quick and high-impact improvements in infrastructure. We are hopeful that the Senate will still have enough time to pass in June when they resume, Senate Bill 2821, the Accelerated and Reformed Right of Way Act.
By putting new developments in the ROW process, DOTR will be able to focus on low-hanging fruits like pending railway projects; port expansions and the modernization of public transport. The department can drive meaningful progress at a faster pace. Strong collaboration with the private sector and other government agencies will be essential in accelerating these efforts.
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Infrastructure encompasses many things, and these are all big-ticket endeavors. The question is, given limited resources and time, how does one determine which areas need urgent action, and which areas can afford to wait a bit more?
We have seen the commitments and ongoing port projects in the Luzon and Visayas region, which have seen major investments in recent years. For Mindanao, the public-private partnership (PPP) venture with port operator ICTSI in Cagayan de Oro is a good example of tapping potential and the effectiveness of public-private partnerships in port development.
Let us be hopeful on the soon tender of the Philippine Ports Authority for the Port in General Santos, which also plays a vital role in supporting industries such as agriculture, fisheries, and manufacturing, all of which are key to Mindanao’s economy.
A modernized port will enhance trade efficiency, strengthen supply chains, and attract both local and foreign investments. This will create jobs, improve export competitiveness—especially in tuna processing and agri-business—and drive overall regional development.
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An efficient port system would also significantly diminish smuggling activities and reinforce the country’s seriousness in doing trade, all above board, with the rest of the world. It will help other regions realize its economic potential and enable its people to achieve sustainable prosperity, and be integrated into the national and global trade networks.
Another reason is the need to support offshore wind projects that would be brought in from overseas. In fact, in 2022, the World Bank Offshore Wind Roadmap identified several areas in the Philippines as potential offshore wind development zones: Northwest Luzon, the Manila Area, Northern Mindoro, Southern Mindoro, the East Guimaras Strait, and Negros or West Panay. However, Mindanao was notably absent from this list, largely due to the lack of sufficient port infrastructure to support offshore wind projects.
Ports must have the necessary infrastructure including deep-water access, sufficient cargo handling capacity, and specialized storage and assembly areas. The government must evaluate whether existing ports can be upgraded or if new facilities need to be developed to accommodate the demands of offshore wind operations.
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Other important areas that the new transport secretary can focus on are further making our transport system efficient, smoother flow of traffic in our toll roads, and airports we can be proud of.
The EDSA bus carousel concept can further be expanded in other main thoroughfares like Commonwealth Avenue, and Quezon Avenue. We can even be more ambitious by consolidating the bus companies and convert these buses to electric buses made by BYD or Hyundai, for example.
The Jeepney modernization which is scheduled to be fully implemented in 2028 is also a project the public looks forward to. I believe the government can afford to lessen the stake of our jeepney drivers and operators for this project. If this happens, we just need to get quality manufacturers like Toyota, Isuzu, or Hino to produce these modern jeepneys/mini buses.
For toll roads, we look forward to the pending projects of San Miguel and Metro Pacific to be fully constructed and for new tollway PPPs to be bid out to further connect the farther provinces of Luzon to Metro Manila.
I know that Secretary Vince, just cancelled the implementation of the cashless toll fee yesterday, February 21. But I am still hopeful that once proper policies and efficiencies are done for this initiative, barrier-less and cashless toll gates in the country will be more successful.
For railways, the North South Commuter Railway, must be focused on since I heard there have been project delays for this due to ROW issues. We need this badly to connect Pampanga and Bulacan to Metro Manila. I am also curious to know about the status of the rail repairs of the PNR line. So far, I have not seen any progress or workers doing repairs in the rail line in the Makati and Manila areas.
For airports, Bacolod, Busuanga, Iloilo, and Puerto Princesa have been identified as key hubs for infrastructure upgrades. We will look forward to the bid out of the PPP for these airports.
I am also hopeful for the new DOTR leadership to look into Caticlan airport which has not expanded its terminal until now. Last but not the least, I look forward to more developments in NAIA since other than reshuffling of air carriers not much has been really done.
Secretary Dizon has his work cut out for him, but I do not doubt that he would do a good job.
This article was originally released in Philstar.
“Purging the culture of impunity”
February 13, 2025
Prof. Victor Andres “Dindo” Manhit | Founder and CEO of Stratbase Group
Two things took place on Wednesday, Feb. 5, that had a lot to do with the fight against corruption.
The more publicized was the impeachment of Vice President Sara Duterte for, among other grounds, the betrayal of public trust, graft and corruption, and bribery.
The second, less controversial but just as important, was the start of the Open Government Partnership (OGP) Asia Pacific Regional Meeting here in the Philippines. The OGP is a worldwide initiative among national and sub-national governments that aims to promote transparency in government, take measures to combat corruption, and foster good governance.
One of the side events of the summit was the forum, “Leveraging Strategic Collaborations to Address Corruption,” organized by the Stratbase Institute, in partnership with Democracy Watch Philippines.
In her keynote address, Budget Secretary Amenah Pangandaman described corruption’s corrosive effects on people, societies, and economies. She cited the signing, just last July, of the New Government Procurement Act which introduces open contracting, thus enabling the disclosure of data and documents at all stages of procurement, from planning to contract implementation.
Another important aspect of the fight against corruption is the use of technology. Pangandaman said the government was reviving Project DIME, or the Digital Information for Monitoring and Evaluation, which enables a more open monitoring and evaluation of big-ticket infrastructure projects.
Digitalization is also at the core of fighting red tape and corruption, according to Anti-Red Tape Authority (Arta) director general Ernesto Perez. The best evidence is the employment of technology by local government units (LGUs) in their service delivery. Specifically, electronic business one-stop shops across LGUs in Metro Manila have shown a notable reduction in business permit processing times and an increase in registration and revenues.
The link is clear, he said: the easier it is to do business, the stronger the economy becomes.
Arta is working closely with regulatory agencies to remove unnecessary barriers across key sectors, including telecommunications, energy, logistics, housing, health care, and infrastructure.
“Government alone cannot achieve this. We need the active participation of civil society and the private sector to sustain a culture of integrity. Corruption cannot flourish if there is a strong private sector helping, assisting, and collaborating with the government in fighting this. Public-private collaboration remains a cornerstone of our work,” Perez said.
Given all these, it is clear that for the fight against corruption to take root and to hold sustainably, we need to put in office people who have the intestinal fortitude to see the fight through despite the difficulties. This takes on a special significance as the election draws near.
A Pulse Asia survey conducted Nov. 26 to Dec. 3 last year found that 90 percent of Filipinos believe government officials involved in corruption must be held accountable. Moreover, 41 percent of Filipinos believe that addressing corruption should be a top priority for senatorial candidates.
Complementing this are the findings of a January 2025 survey by the Social Weather Stations, which found that nine out of 10 Filipinos will vote for candidates who advocate for job creation, food security, health-care programs, access to education, and OFW welfare.
Filipinos will vote for candidates who advocate for increasing job opportunities, the development of agriculture, and ensuring food security (94 percent); a stronger health-care system (93 percent); equal access to education, workers’ rights, and OFW welfare (92 percent); reduced poverty and hunger, and addressing the impact of climate change (87 percent), and better prices of goods and services (85 percent). Other issues include food security, inflation control, the defense of our territory in the West Philippine Sea, and the attainment of energy security.
Success in these result areas is a function of conducting government business efficiently and transparently. Indeed, the fight against corruption is not an issue of mere politics or policy. Our leaders must be brave enough to tackle this issue in a sustained manner in everyday decisions, big and small.
Most importantly, the fight involves the active participation of all sectors, including government, civil society, and the private sector.
Corruption has thrived because of a culture of impunity on the part of the perpetrators, and a defeatist mindset that has prompted people to think that the problem is too big to fight. But it is possible to fight corruption. We just have to demand integrity from our leaders, call them out loudly for their misdeeds, and set in place systems that would make impunity less likely.
The stakes are just too high. The people must take back their power.
This article was originally released in the Philippine Daily Inquirer.
“We must break corruption’s grip on our democracy“
February 5, 2025
Prof. Victor Andres “Dindo” Manhit | Founder and CEO of Stratbase Group
Corruption is a plague that has held our nation hostage for generations, and which continues to get in the way of genuine and sustainable development for the good of the people.
It’s not just economics or governance experts who are saying this. According to a Pulse Asia survey conducted from Nov. 26 to Dec. 3 last year, 90% of Filipinos believe that government officials involved in corruption must be held accountable. Moreover, 41% of Filipinos believe that addressing corruption must be a top priority for senatorial candidates.
What is clear here is that the people are aware: Corruption is a lingering national issue that undermines public service delivery, wastes public funds, emboldens abusive officials and makes them act with impunity, ultimately resulting in an erosion of people’s trust in government.
Corruption is not a one-time or linear event. Instead, it is a cycle. Incumbent officials who have access to and discretion over public funds abuse them to finance their political campaigns in the next elections, or to endear themselves to the public. They launch or rush government projects, beating the law-mandated election freeze, leading to inefficient or substandard outcomes.
They build up their campaign machinery, cleverly using funds intended for services like healthcare, education, and infrastructure. They dole out money in the guise of assistance and compassion, effectively buying votes to gain the support of local officials who will further their political objectives at the grassroots level. When these politicians win and take their oaths anew, the vicious cycle begins again.
Meanwhile, Filipinos continue to be most urgently concerned with the struggle with rising prices. In the same Pulse Asia survey among 2,500 respondents across the country, inflation was identified as the top national concern by 74% of Filipinos. Some 36% are concerned with increasing the pay of workers, while 31% think poverty reduction is a pressing concern. Twenty-seven percent believe that job creation and the fight against graft, theft, and corruption are key issues.
Coinciding with the Pulse Asia findings was the report of the Philippine Statistics Authority at around the same period that headline inflation increased from 2.5% to 2.9% month on month, driven by higher costs in housing, water, electricity, gas, and other fuels, as well as transport.
Also in the fourth quarter of 2024, the Social Weather Stations Governance Report Card, with more than 2,000 responses, illustrated both positive and negative developments. Net satisfaction with the government’s efforts in helping the poor rose from +51 in September to +57 in December, while public satisfaction with policies aimed at creating job opportunities saw a 7-point increase to +51. However, inflation remains a major concern, with net satisfaction dropping to -12 — the only negative rating.
All these, taken together, underscore what are truly important to the ordinary Filipino: providing the basic needs of the family, primarily food on the table, and securing a better future.
Corruption directly affects economic growth and development.
First, the lack of transparency deters local and foreign investors by creating bureaucratic inefficiencies and legal uncertainties. Foreign direct investment is crucial to job creation and economic growth. Thus, if investors stay away from the Philippines to avoid corrupt environments, there will be fewer job opportunities for Filipinos.
Second, corruption in procurement drives up costs, leads to substandard projects, and burdens the public. Bribery forces contractors to cut corners, resulting in poorly built infrastructure. Delayed or incomplete projects disrupt trade, logistics, and further raise costs.
Finally, corrupt officials divert funds meant for education, healthcare, and social welfare, depriving citizens of essential services and worsening poverty and inequality.
Corruption is a seemingly endless problem that requires sustained solutions. And with the 2025 elections fast approaching, Filipinos are again forced to confront realities in our political system: Is corruption so entrenched in our national DNA and are we powerless to break the vicious cycle that has prevented us from achieving our true potential as an economy and as a people?
Certainly, to be resigned to this fate will be detrimental to our nation.
We look forward to having conversations on this matter today, Feb. 5, as the Stratbase Institute hosts a forum entitled “Leveraging Strategic Collaborations to Address Corruption.” This side event of the 2025 Open Government Partnership (OGP) Asia and the Pacific Regional Meeting will be held from 1-4 p.m. at the Grand Hyatt Manila, Taguig City.
Specifically, we will be looking at how Filipinos can ensure transparency and accountability among government officials and in government affairs to ensure economic growth. We will explore the correlation between abuse of state resources and elections. Most importantly we will talk about what we can realistically do, right now and with the means we have at our disposal, to take on the issue of corruption head on.
The coming elections will be an opportunity for Filipinos to choose well and choose better. With the global movement for open governments and good practices among different countries, we can share experiences, principles, and approaches on how to combat the menace of corruption that has already taken much out of our nation. No single sector, entity, organization, or person has the monopoly in wanting a clean and honest government. Different perspectives and strategies are best put together in order to achieve desired results.
We owe our people, and the next generation of Filipinos, no less.
This article was originally released in BusinessWorld.
“Governance and economic growth are deeply intertwined”
January 15, 2025
Prof. Victor Andres “Dindo” Manhit | Founder and CEO of Stratbase Group
A new year is supposed to occasion introspection and a new way of seeing things. As we welcome 2025, it is time to change the mindset that good governance on one hand, and economic growth on the other, are mutually exclusive concerns. On the contrary, they are deeply intertwined, and one will hardly exist without the other.
It is always good to have our ears on the ground. What are our people saying and feeling? A November 2024 survey conducted by Pulse Asia made it clear that Filipinos are most pressingly concerned about economic issues. Seventy-four percent of respondents are primarily concerned with inflation, 36% with increasing workers’ pay, 31% with reducing poverty, 27% with creating more jobs as well as with fighting graft, theft, and corruption in government.
During the month that this survey was taken, the Philippine Statistics Authority reported that headline inflation slightly increased to 2.9% from the 2.5% registered the previous month. The uptick was driven by higher costs in housing, water, electricity, gas, and other fuels, as well as transport.
In the same survey, Pulse Asia also found that a majority of respondents – 61% — believe that controlling corruption leads to economic growth. Other beneficial consequences are good law enforcement (48%), effective delivery of public services (47%), improving the lives of ordinary citizens (46%), and the efficient utilization of government funds and resources (40%).
The people are dissatisfied with how the current administration is handling the rising prices of basic commodities, with 82% expressing disapproval. They are also not happy with the administration’s performance in fighting graft and corruption: 45% disapprove, 40% are undecided, with only 16% approving.
Another polling firm, Social Weather Stations, found that the people’s trust in President Ferdinand Marcos Jr. dropped from 57% in September to 54% in December. The same trend is observed when it comes to the Vice President, who has figured in controversies surrounding her use of confidential and intelligence funds, even as her numbers remain strong in her family’s bailiwick in Mindanao.
In fact, in the latter part of 2024, top national officials suffered declining approval and rising disapproval across the board, albeit in different degrees.
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Our leaders must listen, and listen well.
The people are telling them something. Political noise notwithstanding, what Filipinos care about is that they are able to afford the basic needs of their families and enjoy a measure of security in their economic future. The trends observed last year, as demonstrated by the surveys, show a widening gap between public expectations and government action.
This indicates that the people want more. Their confidence in their leaders is waning and they are very much aware of the leadership and governance challenges that have been left unaddressed.
Perceptions of a nation governed well, with the principles of transparency and accountability in motion, creates a ripple effect within the country and outside it as well. From outside our shores, foreign investors with their capital, infrastructure, and know-how will be encouraged to establish their presence in a country with reasonable policies, evenly and consistently implemented. From within, our people will be driven to take part in economic activity, using their skills and upgrading them, because they are confident that the taxes they pay are spent wisely by their leaders acting as stewards of public resources.
These principles gain an even greater significance now that another election will be held in May. Corruption has stunted our country’s growth for decades and has prevented us from realizing our true potential. This time around, the electorate is more conscious of how integrity should serve as the cornerstone of both the national and local government. They will be able to see through the claims and promises of candidates and will be able to discern who among the candidates, judging from their actions and track record, really have their constituents’ best interests at heart. In addition, restoring public trust lies in the transparent and truthful disclosure of Statements of Assets, Liabilities, and Net Worth (SALN), reinforcing collective commitment of the Filipino to accountability and ethical leadership.
Again, no single sector can effect such a big change. The government for its part has been too steeped in its own decades-old practices and mindsets, even as there are pockets of good intentions and beginnings of reform. The private sector, with its advantages in technology, access to capital, evidence-based measures of performance, and civil society with its long-held ideals and bias for participation and transparency, will always be good partners of the government as it strives to serve the people better.
The next leaders in government must prioritize national interests and ensure that efforts to combat corruption align with the broader goal of safeguarding the country’s future, promoting good governance, and addressing the pressing needs of the nation. It is not a case of making governance or economics a priority; it is addressing them both through strategic thinking, even implementation, and multi-sectoral collaboration.
This article was originally released in BusinessWorld.
“PH-Japan’s long-standing friendship“
January 13, 2025
Prof. Victor Andres “Dindo” Manhit | Founder and CEO of Stratbase Group
The Philippines enters this new year fully cognizant of the numerous and multifaceted threats that it faces, both within its territory and as part of the Indo-Pacific region. If we are to look at the year 2024 as an indication, then we would acknowledge that the international situation is precarious and complex, and that we have been on the receiving end of gray zone operations perpetuated by our main adversary, our giant neighbor to the West.
Navigating these challenges means employing well-thought-out strategies that balance diplomacy and a rejection of escalation on the one hand, and a firm assertion of our rights and beliefs on the other. And indeed, the Marcos administration is putting these security concerns at the center of its defense policy this year.
The midterm election in May also lends an additional layer of importance as the Filipino people once again get the opportunity to elect the people to represent them and make decisions on their behalf and for their supposed benefit.
Fortunately, the Philippine government inspires confidence among the people when it comes to taking action on these traditional and evolving security concerns. In the fourth quarter of 2024, we witnessed the signing and enactment of several landmark measures that signal the administration’s move to further assert the country’s rights in key domains such as the West Philippine Sea.
The President signed the Philippine Maritime Zones Act (Republic Act No. 12064) and the Philippine Archipelagic Sea Lanes Act (RA 12065). These landmark laws are designed to strengthen the country’s rights in the West Philippine Sea, align domestic legislation with international maritime law, and reinforce the nation’s jurisdictional boundaries.
The Philippines also ratified its Reciprocal Access Agreement with Japan reflecting the strong bond between the two countries. The landmark agreement will strengthen the cooperation between the Armed Forces of the Philippines and Self-Defense Forces of Japan.
And before the year ended, the President signed the General Appropriations Act, which includes PHP 35 billion in funding for the Armed Forces of the Philippines’ Modernization Program for 2025.
A crucial part of the Philippines’ defense strategy is strengthening alliances and partnerships with like-minded nations. A Stratbase-commissioned survey showed that the United States, Japan, and Australia remained the most trusted partners among our people, at 73 percent, 51 percent, and 48 percent, respectively. There is also a sense of urgency to strengthen the military capability of the country by conducting joint patrols and military exercises with friends.
In keeping with what is strategically necessary and what Filipinos believe to be the right course of action, the Stratbase Institute, in partnership with the Embassy of Japan in the Philippines, held a lecture entitled “Reinforcing Japan-Philippines Strategic Cooperation to Maintain Peace and Stability in the Indo-Pacific” on Jan. 10, 2025.
This gathering of experts explored how the behavior of aggressive actors in the international arena affects national interests and how like-minded nations such as Japan and the Philippines can foster collaboration to maintain regional peace and stability despite differing interests.
In his message, Ambassador Endo Kazuya emphasized the exceptional state of Japan-Philippines relations, describing it as being in a “golden age.” He expressed determination to further unlock the partnership’s full potential, highlighting ongoing efforts to fortify security and defense cooperation alongside allies like the United States and Australia. “Together,” he stated, “we will continue to send a powerful message of unwavering commitment to regional peace and stability, anchored on the rule of law.”
Meanwhile, Dr. Shin Kawashima, a professor in the Department of International Relations at the University of Tokyo, underscored the vast opportunities for Japan-Philippines cooperation. Among these, he pointed to enhancing coast guard interoperability to address shared maritime challenges and improve disaster response capabilities.
The Japan-Philippines strategic partnership has reached unprecedented heights, with further avenues for collaboration anticipated this year.
Every decision carries weight, and navigating challenges with caution and respect for international law remains paramount.
By adhering to these principles, we can approach 2025 and the coming years with cautious optimism, seizing opportunities to strengthen cooperation, and foster peaceful coexistence among nations.
This article was originally released in the Philippine Daily Inquirer.
“Key strengths, sound policy, and political will”
November 25, 2024
Prof. Victor Andres “Dindo” Manhit | Founder and CEO of Stratbase Group
The administration of President Ferdinand Marcos Jr. is deliberate and resolute in anchoring the country’s economic growth on our inherent strengths as a nation. Our young and dynamic population, abundant natural resources, and strategic location at the heart of the Indo-Pacific region are our core advantages that provide us with a distinct edge.
These key strengths, on their own, however, are not enough to guarantee a robust economy powered by foreign investments. Fortunately, our current set of leaders are also aware that in order to attract investors, the Philippines must have a favorable policy environment that would demonstrate the government’s support for the private sector. The environment should not only attract, but nurture and maintain private partners for the good of the national economy.
There have been notable initiatives toward this end.
For example, the Foreign Investments Act liberalizes certain key industries where there were previously caps on foreign ownership. The creation of special economic zones, on the other hand, provides incentives such as tax holidays and duty-free imports, fostering growth in sectors like manufacturing, IT, and BPO.
These measures have positioned the country as an appealing destination for investors seeking new opportunities in Southeast Asia. While challenges such as bureaucracy and corruption exist, the ongoing reforms and expanding infrastructure continue to create positive prospects for business growth.
In 2021, in the middle of the pandemic, the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act was passed. The law attempted to boost investments by lowering corporate income tax from 30% to 25%, with further annual reductions to 20% by 2027. It also offers incentives for projects under the Strategic Investment Priority Plan (SIPP), based on location and industry.
Three years later, or just this November 11, President Marcos signed into law Republic Act No. 12066 or the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act. This law is one of the 28 bills that the Legislative-Executive Development Advisory Council (LEDAC) has been pushing for passage before the end of the year.
The CREATE MORE Act aims to promote the Philippines as a prime investment destination, building on the game-changing economic reforms introduced under the CREATE Act by making the country’s tax incentives regime more globally competitive, investment-friendly, predictable and accountable.
Under CREATE MORE, the Fiscal Incentives Review Board (FIRB) can grant incentives for investments over PHP 15 billion, with approval for smaller investments delegated to investment promotion agencies (IPAs). Moreover, the scope of VAT zero-rating on export sales has been expanded to include the sale of raw materials and packaging materials to non-resident buyers for use by local export-oriented enterprises in manufacturing or processing in the Philippines. Similarly, VAT-exempt transactions now include the importation of fuel, goods, and supplies for international shipping or air transport, and goods imported by export-oriented enterprises with exports exceeding 70% of their total production, provided the goods are directly tied to export activities.
The attention given to incentives is apt: To attract high-value investments in emerging sectors, the Philippines needs to keep its incentives competitive. Without proactive and continuous improvements, it risks falling behind regional competitors who regularly update their policies to attract global investors.
Other laws toward the same end are the Capital Markets Efficiency Promotion Act, and amendments to the Foreign Investors Long-Term Lease Act, and the Blue Economy Act. The green lanes for strategic investments were created by Executive Order 18 in February 2023
Most importantly, such initiatives need to be complemented as well by efforts toward good governance. No matter the laws in place, investors will ultimately look for how these laws are implemented on the ground, and how the national and local governments conduct themselves. Are the objectives of the law achieved, are regulations reasonable and consistent, is the environment predictable? Do the rules of the game stay the same all throughout? Are the leaders proclaiming adherence to the rule of law, transparency, and accountability actually practicing what they preach? Will there be no changes on a whim, and will there be no vindictive, impulsive acts that run counter to established business and governance principles?
Only through a combination of these can the Philippines attract the investment needed to propel its economy forward and maintain its competitive edge in the global market.
This article was originally released on Philippine Daily Inquirer.
“Dynamic response to security challenges”
November 11, 2024
Prof. Victor Andres “Dindo” Manhit | Founder and CEO of Stratbase Group
A significant part of the 20 years that the Stratbase Group has been around has been spent campaigning for the observance of the rules-based international order, and respect for the sovereignty of nations.
This is a continuing quest as the Philippines faces sustained challenges from China in the West Philippine Sea.
China had the temerity to summon our ambassador after President Ferdinand Marcos Jr. signed two new laws – the Maritime Zones Act (RA 12064) and the Philippine Archipelagic Sea Lanes Act (RA 12065) — asserting our rights over areas that China is claiming. These are key pieces of legislation that recognize the maritime and archipelagic identity of the country. They reinforce our policies for ensuring both economic and national security.
The first law defines the extent of our maritime entitlements and fully declares their bounds in accordance with our Constitution and with the UNCLOS, President Marcos said during the signing: “By defining and asserting our maritime zones, we project to the international community that we are staunchly committed to nurturing, cultivating and protecting our maritime domain.”
Meanwhile, the second law complements both our maritime and aerial policies by establishing a route system in our country’s archipelagic waters and as well the airspace above it.
“The designated archipelagic sea lanes and air routes aim to facilitate safe passage for foreign ships and aircraft without compromising our national security nor diminishing our capacity for good environmental stewardship,” Marcos said.
We need these laws. Over the past years, China has employed numerous forms of harassment as it continues to ignore the 2016 ruling of the Permanent Court of Arbitration favoring the Philippines. It has resorted to water cannons, military grade laser, side swiping, verbal attacks, and many other tactics as it tries to twist the narrative to present itself as the aggrieved party.
Of course, we know that is only propaganda – something in which our giant neighbor has become so good at – and that it has an ultimate objective that would go against international law and the rights of the Philippines.
**
On November 6 and 7, Stratbase held its ninth Pilipinas Conference that brought together key leaders and experts to discuss the pressing issues in our country.
The first day was devoted to security challenges, in the face of emerging threats, from maritime disputes to cyberattacks and disinformation. In navigating these complex challenges, the Philippines needs a comprehensive defense strategy that extends beyond conventional security measures.
Rear Admiral Roy Vincent Trinidad said the external defense plans of the Armed Forces are multi-dimensional. Armed Forces of the Philippines Chief of Staff Romeo Brawner Jr. said cyber defense is a core component of the Armed Forces’ new Comprehensive Archipelagic Defense Concept. In fact, MGen. Rommel Cordova, Deputy Chief of Staff for Plans (J5) of the Armed Forces of the Philippines shared that the AFP had activated the Cyber Command on November 5. Gen. Brawner, however, emphasized that success in countering pressing threats depends on collaboration.
BGen. Leo Fontanilla, the Wing Commander of the 5th Fighter Wing of the Philippine Air Force emphasized that strengthening our partnerships with allied nations and bolstering regional cooperation will be critical in addressing shared security concerns and ensuring safe and secure skies for all. CG COMMO Jay Tarriela echoed these sentiments and stated “Our forefathers managed to unify Filipinos despite a lack of connectivity. But I am uncertain now whether the current cyber connectivity we enjoy will foster our unity or contribute to the fragmentation of our collective stance on the West Philippine Sea.”
Over the years we have seen the support of like-minded nations such as Australia, Canada, European Union, Japan, New Zealand, Norway, Poland, Republic of South Korea, Vietnam, United States, and many others. Particularly, Australia announced through its Foreign Minister that it would invest $2.5 billion over the next four years, including $1.55 billion in new funding to enhance Southeast Asia’s maritime partnerships.
Indeed, the fight for the rule of law is not a fight of any single country. Shared commitment and values bring countries close together as they address a common threat, and help each other become stronger.
The geopolitical landscape today has changed much from the time Stratbase was established 20 years ago. With our will and commitment, and our friends by our side, we are ready to step up to the dynamics of this multipolar world.
This article was originally released on Philippine Daily Inquirer.
“Twenty years of Stratbase”
November 6, 2024
Prof. Victor Andres “Dindo” Manhit | Founder and CEO of Stratbase Group
Let me wax nostalgic today as I commemorate the establishment of the Stratbase Group 20 years ago. It is as if a long time had passed, and yet at the same time, the events beginning 2004 seem to have happened only yesterday. I believe that looking back at our organization’s history and accomplishments will ground us on what is truly important and inspire us to strive even harder to reach more people and have a positive impact on society.
It was just after the controversial 2004 elections that we wanted a more institutionalized platform for our governance advocacy. Like any other Filipino, we were full of good intentions and thought we had a measure of competence to help enhance the country’s situation to improve the lives of the Filipino people. We did not harbor the illusion that we had all the answers, but we felt at least we could help in our unique way.
Thus, we brought together a team of political experts to the world of research and consulting, drawing inspiration from the United States model where the private sector provides insights on policies and their direction.
Two years later, in 2006, we partnered with Bower Group Asia, a Washington DC-based consulting firm. This opened doors for us among Fortune 500 companies, such that we eventually started policy research and business advisory consulting services for the top private players in the country, including monitoring of regulatory and legislative issues which may affect them.
And then, in 2014, we relaunched our research arm and named it after our chairman, Secretary Albert Del Rosario – the Stratbase ADR Institute for Strategic and International Studies, which in turn eventually launched its National Security and Indo-Pacific Affairs Program. We strongly advocated the use of the term “West Philippine Sea” instead of the “South China Sea”, in support of the country’s territorial sovereignty.
Through Stratbase ADRi’s private sector partners, the Institute was able to raise funds to have its defense and security advocacies reach Washington DC, such as through the Center for Strategic and International Studies (CSIS), as well as in countries like Japan, Australia, India, Europe, Taiwan, and other Southeast Asian nations.
Today, the Stratbase Group is a policy research and business advisory firm, building a trusted clientele over the years through a foundation of trust, commitment, and impactful service delivery across various sectors. Its work in the last two decades has highlighted the importance of partnerships across sectors to drive the effective implementation of reform agendas. “Stratbase makes business and politics work” by bridging gaps between the private and public sectors for mutual benefit and progress.
Stratbase has expanded and now partners with around 60 corporation clients, with the focus of bridging the divide between corporate and government objectives. Its think tank arm, the Stratbase Institute, successfully advocated for significant reforms aimed at ensuring transparency and accountability in public service, creating avenues for more investments, etc.
We continue to grow and expand our range of expertise, continuously monitoring and advocating for various priority sectors: agriculture and food, banking and financial technology, consumer and retail, defense and security, environment and mining, health, information and communications technology, infrastructure and public utilities, power and energy, trade and investment, education, and tourism and gaming.
**
Coinciding with our commemoration of our 20th year is the holding of the Pilipinas Conference 2024, which will be on its ninth year. The two-day conference starts today, November 6.
The event aims to advance multi-sectoral collaboration to shape policies that address the complex social, political, and economic challenges impacting the Philippines and the broader Indo-Pacific region. This year’s theme is “Navigating a Complex Geostrategic Landscape: Building Resilience Through Cohesive.” On Day 1, we will talk about defense and security while on Day 2, we will cover the partnership between the government and the private sector.
With each passing year, each Pilipinas Conference solidifies Stratbase’ position in the Philippines not only as a partner to Philippine and foreign owned corporations but also as an established top partner for the country’s like-minded allies in advocating for strengthening their bilateral relations with the country.
Indeed, in the past two decades, Stratbase has provided a platform for conversations, discussions, and interaction among representatives of the government, the private sector, civil society, and the diplomatic community. As Stratbase Group celebrates its 20th year of advancing the Philippines’ position in the global scale, the Group will continue to build partnerships and bridge the gap between business and politics through its common goal of improving the quality of life for every Filipino.
We have been facilitating essential dialogues on defense, foreign policy, trade, and governance. Stratbase has been an active participant in shaping national policy, but we will not stop there. We know that the challenges are evolving – there are issues now that we never contemplated when we were just starting out – but we are emboldened by aspirations of a prosperous, just, and competitive Philippines.
This article was originally released on BusinessWorld.
“Peace and stability are the business of all countries”
October 31, 2024
Prof. Victor Andres “Dindo” Manhit | Founder and CEO of Stratbase Group
The world is not in a good place right now, with conflicts in Ukraine and in the Middle East, with the majority of the people suffering the consequences of decisions they never made.
Then again, we do not have to look too far to know that times are precarious. Here at home, the Philippines continues to grapple with a confluence of asymmetric security challenges that cut across multiple dimensions—in the sea, in the air, and even in cyberspace.
In the maritime domain, particularly in the West Philippine Sea, we have been subjected to an increasing intensity and regularity of Chinese expansionist and militaristic activities in the area. Our vessels have faced harassment – through aggressive maneuvers, for instance, water cannons, blockades, sideswiping, and the use of military-grade laser. China has consistently employed gray zone tactics, such as deploying maritime militia and coast guard vessels, to provoke the Philippines and escalate tensions in the West Philippine Sea, all while avoiding direct military engagement.
This has extended to our airspace. On August 8, two Chinese fighter jets harassed a Philippine Air Force NC-212i aircraft near Scarborough Shoal, deploying flares and conducting dangerous maneuvers. The flares could have caused serious damage to the aircraft. In a deceptive response, China said it was the Philippines that illegally entered its airspace.
Despite improvements in the Global Cybersecurity Index, the Philippines remains vulnerable to cyberattacks. Cyber threats such as smishing, ransomware, and disinformation campaigns have increased, complicating national security efforts. Notably, 54.5% of incidents addressed by the National Computer Emergency Response Team (NCERT) targeted critical infrastructure, including government and emergency services. This highlights the growing threat of cyber warfare and the manipulation of public opinion, posing serious risks to both private sectors and democratic institutions.
We cannot afford to compromise these assets. They are essential to our daily lives, and especially at a time like this when disaster strikes, and coordination is necessary for relief and rehabilitation efforts.
The current administration is aware of these threats. It has employed minilateral and multilateral approaches to strengthen and expand cooperation with like-minded partners. Our Stratbase survey commissioned to Pulse Asia in September found that 79% of Filipinos see the US as its most trusted national development partner, followed by Japan (50%), Canada (43%), and Australia (42%). Only 1% of respondents cited China. Indeed, China’s aggressive acts have made it to Filipinos’ consciousness.
These partners are trustworthy and reliable, and share our commitment to the fundamental values of the rule of law and the international order. Ultimately, this is not just about these trusted countries coming to the Philippines’ rescue.
What happens to the Philippines happens to the entire Indo-Pacific region. Our strategic importance to our immediate region is extensive—from maritime security, supply chains, connectivity, and green transition. Developments in the geopolitics of the Philippines send powerful ripples across the entire international community. It serves as the vital access toward economic prosperity and security, regional stability, and multilateralism in the Indo-Pacific.
Thus, collective action is not just ideal, but necessary.
President Ferdinand Marcos Jr. has emphasized the shared responsibility for peace and security, urging ASEAN nations to confront external aggression. Recent engagements have strengthened the Philippines’ defense ties with key allies. Philippine and U.S. defense officials discussed upgrading military capabilities and finalizing the GSOMIA. Additionally, the Philippines committed to enhancing cyber resilience in collaboration with the U.S. and Japan. Furthermore, joint patrols with defense forces from the U.S., Australia, Japan, and New Zealand in the West Philippine Sea underscored cooperation in upholding international law and freedom of navigation.
These are promising initiatives that make this part of the world at least a safer place. Indeed, peace is everybody’s business.
We at the Stratbase group, as we celebrate our 20th year, is one with Philippine society in upholding our national interests. We will continue to live up to our role as a vital platform for igniting constructive discussions on the pressing issues facing Philippine society. We will once again step up the occasion during our annual Pilipinas Conference on November 6 and 7, when geopolitics and other issues will be taken up by thought leaders from the government, private sector, the academe, and different stakeholders in our society.
This article was originally released on Philippine Daily Inquirer.
“PPPs powering growth”
October 23, 2024
Prof. Victor Andres “Dindo” Manhit | Founder and CEO of Stratbase Group
At the outset, President Ferdinand Marcos Jr. made it clear that infrastructure was going to be a priority of his administration. Given its multiplier effects on employment, income generation, delivery of basic services, and many others, infrastructure will power the growth of our economy, for the good of all.
The Build Better More flagship program targets infrastructure investment of 5% to 6% of GDP, to be done through the evaluation, approval, and rollout of 186 infrastructure flagship projects with a combined value of P9.6 trillion, or approximately US$ 163 billion. Infrastructure is indeed a pillar of economic growth. This is also expressed in the Philippine Development Plan 2023-2028.
“This government will continue to invest in job-generating infrastructure, social protection programs, health and education for all Filipinos. We will not rest on our laurels but use them to propel us forward into social and economic transformation,” the President said in a video statement uploaded on the Presidential Communications Office’s official Facebook page in August 2024.
In itself, however, infrastructure is a broad word that encompasses a wide range of sectors. Thus, there is need to further qualify and define what kinds of infrastructure are needed in different areas of the Philippines, and how such big-ticket projects will be accomplished in order to attain their ultimate objective. For example, the PDP identifies infrastructure connectivity, limited water resources and accessibility, and high electricity prices as major challenges to the attainment of our country’s economic goals.
To address these challenges, it is good to acknowledge that the government cannot accomplish its goals on its own.
The private sector plays an essential and indispensable role in nation-building. Collaboration between the public and private sector fosters mutual trust through shared objectives. Risks are spread and mitigated, and collective benefits are realized. After all, the public and private sectors, with their complementary roles, are seen as two halves of the same whole, working together to facilitate growth and sustainable development.
The PPP-powered infrastructure opportunities are not limited to the National Capital Region, either. There remains vast room in an archipelago such as the Philippines to become infrastructure hubs. The central Visayas is one such place. This early, there have been several success stories in terms of PPPs in these crucial sectors, with infrastructure investments proving key.
One such example is the partnership with ACCIONA, a Spanish infrastructure company that entered our country in 2016 and has recently solidified its commitment by moving its regional headquarters from Singapore to the Philippines.
ACCIONA’s presence in the Philippines addresses the multiple challenges of infrastructure connectivity, renewable energy, and water resources. It is a prominent force behind the Cebu-Cordova Link Expressway (CCLEX). It has partnered with the Cebu government to develop a US$ 130 million solar project in Daanbantayan to meet Cebu’s electricity demands and enhance the region’s energy security. In the South of Manila, ACCIONA with its partners have been awarded the contract to design and construct the East Bay 2 drinking water treatment plant (DWTP) in Pakil. Drawing water from Laguna de Bay, the largest lake in the Philippines, the plant aims to provide clean and healthy drinking water to two million people. ACCIONA’s facilities focus on advanced treatment of untreated raw water, addressing the significant lack of access to clean water among many households in the country despite abundant resources.
During a conference hosted by the Spanish Chamber of Commerce in the Philippines and the Stratbase ADR Institute in Cebu City earlier this month, the potential and power of investments in strategic infrastructure were central to the discussions.
Ruben Camba, Managing Director for Infrastructure, Southeast Asia, ACCIONA and the President of Spanish Chamber of Commerce in the Philippines – La Cámara, emphasized the importance of friendships, trust, and a long-term view.
Ignacio Domecq, Managing Director for Southeast Asia, ACCIONA Energia, said that they were comfortable investing in the Philippines because it has rule of law. “This place is a good example,” he said. “It’s creating a very good vantage for this country to work with the others.”
Jose Maria Ortega, Water Development Director for Australia and Asia, ACCIONA, said it is not enough to generate water; there must also be mechanisms to distribute it efficiently. Just as we’re bringing technology, we’re also bringing the hunger to learn what the specific needs in Cebu are so that we can create projects here.”
These milestones are in no way ends by themselves. They serve to show us that genuine collaboration is possible if both parties are earnest and have the best interests of the people in mind. A combination of strategic planning and direction, financial muscle, technical expertise, integrity and a willingness to constantly improve the investment and regulatory environment will ensure that the planned infrastructure projects will not remain plans. They will instead become realities that would make the Philippines sustainable, competitive, and able to bring a better life to its people.
This article was originally released on BusinessWorld.
“Collaborating with the French to save our seas”
October 16, 2024
Prof. Victor Andres “Dindo” Manhit | Founder and CEO of Stratbase Group
The Philippines is an archipelago with over 7,000 islands and 36,000 kilometers of coastline. This unique feature endows our nation with rich marine diversity – a variety of ecosystems, including coral reefs, mangroves, seagrass beds, and marine-protected areas that are home to thousands of marine species.
The situation, however, is far from idyllic.
The Philippines faces numerous challenges to its marine environment, including overfishing, pollution, and habitat destruction. We also have to contend with the impact of climate change such as rising sea levels and ocean acidification.
As if these were not enough, the illegal activities of irresponsible states like China exacerbate the situation. These activities include incursion into what has been legally established as belonging to our Exclusive Economic Zone, intimidating our soldiers, using water cannons and military-grade laser, as well as building artificial islands. These artificial islands threaten the environment and contribute to tensions in the region, further complicating efforts to ensure sustainable resource management.
Geopolitical tensions in the West Philippine Sea also affect Filipino fishermen. According to data from the Philippine Statistics Authority, fish catch in the area dropped by 6.78% in the first half of the year compared to the same period last year. Overfishing by foreign vessels, particularly from China, along with coral reef destruction and rising fuel costs, are key factors behind the decline.
According to the Philippine Chamber of Agriculture and Food Inc, fish production in the West Philippine Sea fell to 53,158.94 metric tons in the second quarter compared to 54,213.84 metric tons in the same quarter of the previous year.
The livelihood of our local fishermen are at stake. Fishing communities derive their income exclusively from fishing activities, and now these are threatened by the presence of the Chinese.
The administration is not taking this sitting down. During the 27th ASEAN-China Summit, President Ferdinand Marcos Jr. called for urgent action to prevent such behavior. He took the opportunity to criticize China’s disregard for international law. At the same time, he reaffirmed the Philippines’ commitment to regional peace and urged ASEAN to expedite negotiations for a binding Code of Conduct to manage tensions and promote stability in the region.
Further, during the 27th ASEAN Plus Three Summit in Laos, the President emphasized the need for ASEAN member-nations to adopt sustainable agricultural practices to strengthen regional food security amid supply chain disruptions, economic shocks, and climate change. He stressed the importance of supporting farming communities and leveraging agricultural technologies to build more resilient food systems.
**
Effectively protecting our marine environment can only be achieved through cooperation with states who share our values. France is one of the countries that come to mind. In June next year, France will host the 2025 United Nations Oceans Conference, a global forum that will foster international cooperation, enabling nations to share best practices, innovations, and forge partnerships to protect marine biodiversity and support sustainable development.
But France is not just a leader in global marine conservation efforts. More importantly, it has engaged in a crucial bilateral collaboration with the Philippines. For example, on the eighth anniversary of the Philippines’ arbitration victory against China last July 12, Ambassador Marie Fontanel of the Embassy of France to the Philippines emphasized her country’s commitment to supporting the Philippines in our efforts in safeguarding the West Philippine Sea. She highlighted France’s increased activity in defense and security partnerships in the Indo-Pacific, specifically the French Indo-Pacific Strategy.
France’s experience in managing marine reserves, enforcing fishing regulations, and reducing carbon emissions from marine activities provides valuable lessons that can be applied to Philippine waters, helping to improve conservation outcomes.
France has been at the forefront of marine conservation through initiatives like the Blue Nations Project, which emphasizes the protection of marine biodiversity, reducing plastic pollution, and promoting sustainable use of ocean resources. The Blue Nations initiative is one channel through which we are enhancing our partnership with France. These will drive economic benefits, particularly in coastal communities where the development of a blue economy can create new opportunities for sustainable livelihood, while ensuring the protection of the marine ecosystems on which these communities depend.
The collaboration between France and the Philippines underscores the shared responsibility of both nations in safeguarding vital ecosystems and promoting sustainable development, particularly in the context of international law and multilateralism.
“Conserve and sustainably use the oceans, seas and marine resources for sustainable development.” This is the 14th Sustainable Development Goal of the United Nations. As we strive to move toward the global goal on one hand, and secure our sovereign rights, protect the livelihood of our people, and conserve our marine resources, it is reassuring to think that we can look to other countries like France. Collaboration is crucial in operationalizing our commitment to safeguarding marine ecosystems for future generations.
This article was originally released on BusinessWorld.
“Competitive Selection Process operationalizes the principles of transparency, accountability, and fairness”
October 2, 2024
Prof. Victor Andres “Dindo” Manhit | Founder and CEO of Stratbase Group
Contrary to the usual notions, transparency, accountability, and good governance are concepts that are not confined to the public sector. It is not only governments that must be transparent. Private corporations, especially those engaged in businesses that have to do with public trust, must also be upfront about their processes every step of the way.
Energy security is an area in which these principles apply. With the growing population and rising demand for electricity, it is critical to explore alternative sources of energy to meet consumer needs. Electricity is a basic need and utility, providing stability to individuals, businesses, and the nation. It enables individuals to thrive in their respective activities and businesses to operate efficiently. Energy companies must always be mindful of their role in the economic life of the nation.
Achieving energy security is one of the main thrusts of the administration. We are aware that the Philippines has one of the highest costs of electricity in our region. This has hampered our growth in the past and has prevented investments from coming in. As we work toward lowering our energy costs and finding a stable and reliable supply to power our collective needs, we bear in mind that our objective is to make low-cost electricity available across the country — even in geographically isolated and disadvantaged areas.
Securing energy comes in different phases. There is generation, transmission, and distribution. The closest and most immediate to consumers is the business of power distribution through distribution utilities. For Metro Manila and its neighboring areas, for instance, the dominant Distribution Utility (DU) is Meralco which enters into power supply agreements with power generation companies. Meralco then distributes the power from these suppliers to individual homes.
At every step, the objective is to provide better service through reliable supply and low costs and ensuring that price fluctuations are kept to a minimum if not eliminated altogether.
But how does Meralco know from which power supplier it should get its electricity?
The Energy department prescribes a process called Competitive Selection Process, or CSP. This is a process wherein a power supplier is selected to supply electric power requirements to a DU such as Meralco. This process is in keeping with Section 2 of Republic Act No. 9136 or the Electric Power Industry Reform Act. The provision declares that it is the policy of the State “to ensure the quality, reliability, security, and affordability of the supply of electric power; to ensure transparent and reasonable prices of electricity in a regime of free and fair competition and full public accountability to achieve greater operational and economic efficiency and enhance the competitiveness of Philippine products in the global market; and to protect the public interest as it is affected by the rates and services of electric utilities and other providers of electric power,” among others.
In the CSP, the DUs make transparent their process of selecting which power suppliers to choose so that they can provide the best price to their customers. This is a customer-centric approach that puts the customer’s needs front and center in making the procurement decision, letting only transparency and fairness determine the result of the bidding process.
The CSP has ensured the transparent and efficient contracting of power supply agreements from diverse energy sources for the baseload power requirements of approximately 7.7 million Meralco customers using coal and mid-merit renewable energy sources like liquefied natural gas (LNG).
Thus, this approach not only reduces the risks of supply shortages, which can arise from various factors such as geopolitical tensions or market volatility, but also ensures the availability of reliable power to meet the country’s growing energy needs.
According to procedures being enforced by the Department of Energy and the Energy Regulation Commission, the process is conducted in a hybrid format. There are attendees both in-person and online, as the process is streamed live. The bidders are present, of course, and so are representatives of the Department of Trade and Industry-accredited consumer groups, community representatives, and civil society organizations. All of them act as observers.
Yesterday, Oct. 1, was the most recent round of Meralco’s CSP. It featured the bid submission and bid opening of the 400-MW supply of prospective bidders. Six power generation companies participated in the bidding. They were First Gas Power Corp., First Natgas Power Corp., FDC Misamis Power Corp., GNPower Dinginin Ltd. Co., Masinloc Power Co. Ltd., and Sual Power, Inc.
The aim of the CSP is to secure a 15-year Power Supply Agreement/s for Meralco’s mid-merit requirement due to start on Aug. 26 next year. The results will undergo the review and approval process of the Energy Regulatory Commission before any agreements are implemented.
Transparency and accountability are fundamental pillars of governance that both the Government and the private sector must not only uphold but actively embody in their functions. By consistently practicing these values, it fosters a culture of integrity and earns the trust and confidence of the people they serve. Without this foundation, true progress and public faith become impossible, making transparency and accountability non-negotiable for sustainable and ethical operations in any sector.
With CSPs in motion, these principles are taken to heart to guarantee energy security and to ensure that all consumers will reap the economic benefits of reliable and stable power services at the least cost.
This article was originally released on BusinessWorld.
“PH and South Korea: 75 years and counting”
September 23, 2024
Prof. Victor Andres “Dindo” Manhit | Founder and CEO of Stratbase Group
The Philippines was the fifth country to recognize the Republic of Korea (ROK), which was inaugurated in August 1948. The two countries’ bilateral relations began in March 1949; such a relationship was strengthened by the sending of the Philippine Expeditionary Force to Korea—PEFTOK—during the Korean War in the 1950s.
Seventy-five years on, Philippine-Korea relations are still thriving amid an environment of asymmetric security challenges in the Indo-Pacific region. The past seven and a half decades have been built around a shared history, the common values of freedom and democracy, aspirations for a peaceful and secure region, and robust collaboration that spans various areas of cooperation.
Today as before, the friendship is cemented by how our two countries strive to flourish despite the precarious environment we both find ourselves in. The challenges we face are similar. Their Korean Peninsula and our West Philippine Sea (WPS) are both flashpoints for conflict. Our friendship with Korea, thus, is sustained by an affinity from a long history, a shared predicament, and equally firm commitment to freedom, democracy, and the rule of law.
The friendship is not only defined by lofty diplomatic declarations, of course. The robust partnership extends across various sectors.
On trade and investment, for instance, the ROK serves as one of the top Philippine beneficial investment partners. According to the Export-Import Bank of Korea, the ROK invested more than $120 million (156 cases) in the Philippines in 2023.
In line with this, high-tech electronics and semiconductor companies, such as Samsung Electro-Mechanics Philippines Corp. and SFA Semicon Philippines Corp., are thriving. Furthermore, the upcoming establishment of Hyundai shipyard in Subic Bay is expected to be the largest foreign direct investment in the country’s history.
The signing of the ROK-Philippines Free Trade Agreement, which will be enacted soon, is also a testament to the strengthening of the economic ties between the two countries.
In the area of defense and security, South Korea has been our staunch ally as we uphold the preservation of the international rule of law. It has been a major supporter of the 2016 ruling of the Permanent Court of Arbitration on the WPS. And beyond mere expression of support, it has been helping us bolster our military capabilities so we can defend ourselves better.
South Korea has actively participated in joint military exercises, including Balikatan and Pacific Partnership, and has maintained regular military exchanges and visits with the Philippines. Last June, the Korea Coast Guard visited Manila to conduct the first-ever joint exercises with the Philippine Coast Guard.
It is also a vital partner as we modernize our armed forces. This modernization is an integral component of the Comprehensive Archipelagic Defense Concept which our government recently adopted. In fact, South Korea’s presence and support is felt and seen in all three areas of our military.
For instance, in 2022, their government donated the K-136 “Kooryong” multilaunch rocket system to the Philippine Army, further strengthening both our internal and external defense.
The Philippine Air Force operates South Korean-made FA-50PH light jet fighters, which have significantly improved our air defense capabilities. They are considered the most capable and potent aircraft in the country’s inventory and have been deployed to participate in joint exercises with other countries.
And then, concerning the Philippine Navy, one of the two guided-missile corvettes procured by the Philippines from the South Korean manufacturer HD Hyundai Heavy Industries (HHI) was recently launched in South Korea. It is expected to be delivered in 2025, with the second one slated for delivery the following year. Even before this, HHI had already constructed two Jose Rizal-class frigates, which are presently the most advanced warships in the Philippine Navy.
Earlier this year, Navy spokesperson Commander John Percie Alcos announced that Philippine Navy personnel are scheduled to be deployed to South Korea next year for training.
Finally, Korean defense firm Hanwha Ocean has also stepped up and offered to build submarines, aiming to further enhance the Philippines’ naval capabilities.
All of the above are prime examples of the continuing bond between our two peace-loving countries.
Friends may have similar circumstances and deal with similar struggles but if their relationship is not nurtured, the friendship would not have longevity. In the case of Korea, we are happy and thankful that both our countries have been actively taking care of the partnership over the years.
The relationship is set to reach new heights with the anticipated signing of the Joint Declaration on the Strategic Partnership between the Philippines and ROK.
Indeed, the challenges of today demand an even deeper relationship. We look forward to an even more meaningful connection with our friend and partner, ROK.
This article was originally released on Philippine Daily Inquirer.
“Foreign Minister Sikorski’s Visit to Manila: A Glimpse at a Geopolitical Mirror“
September 16, 2024
RADM Rommel Jude Ong PN (Ret.) | Non-Resident Fellow of Stratbase Institute; Retired Philippine Navy Rear Admiral; Professor of Praxis at Ateneo School of Government
Polish Foreign Minister Radosław Sikorski recently visited the capitals of Singapore, Malaysia, and the Philippines in his tour of Southeast Asia. Passing by Manila was auspicious, as both countries will commemorate the 51st anniversary of diplomatic relations on September 22. During this three-day stay from September 3 to 5, he met with President Ferdinand Marcos Jr, Foreign Affairs Secretary Enrique Manalo, and National Defense Secretary Gilberto Teodoro Jr. He discussed security and economic issues affecting Europe and our region. Minister Sikorski also had the opportunity to deliver a lecture at an event hosted by Stratbase ADR Institute on September 5, on economic, social, political, and strategic issues.
In a nutshell, Sikorski’s lecture sought to promote a deeper understanding of the complex global security environment and stronger forms of cooperation to deal with shared concerns. Specifically, he highlighted the impact of regional conflicts, such as the ongoing Ukraine-Russian War, on global peace and order. He advocated for stronger ties among like-minded democracies and diversified supply chains to mitigate vulnerabilities to coercion. He identified opportunities for defense cooperation in cybersecurity, counter-terrorism, and maritime security. Sikorski emphasized his country’s commitment to multilateralism and international cooperation, stressing the importance of alliances and partnerships in addressing common security challenges. Lastly, he expressed Poland’s support for ASEAN’s centrality in regional security architecture and highlighted the potential for deeper EU-ASEAN cooperation, arising from Poland’s ascendancy as EU president in 2025.
Despite being continents apart, Poland and the Philippines share similarities in defense and security matters. As a strategic location, Poland is a frontline state for the rest of Central Europe. It is a buffer against Russian aggression, which may come from the direction of Russia, Kaliningrad, or Belarus. On the other hand, the Philippines sits astride the South China Sea which Beijing wants to control, and between two maritime axes of advance: one heading towards the mid-Pacific and the Americas, the other headed towards the Indian Ocean and beyond to Africa, the Middle East and Europe. The South China Sea is a nexus for maritime trade, and any tension in the region has an impact on the safety of international shipping.
Poland sits at the immediate periphery of the Ukraine-Russian conflict. For now, it bears the brunt of wayward missiles intended for its eastern neighbor. But there is always the unthinkable scenario of Russian armor, infantry, and drones overrunning Ukraine’s defenses and expanding toward the rest of Central Europe. For the Philippines, the 200 Chinese navy, coast guard, and militia vessels concentrated within the South China Sea, are probing into and encroaching within the country’s exclusive economic zone. On any given day, the country’s control over key features in the Spratlys Group of Islands is challenged by Beijing, either through the blockade of occupied shoals or the harassment of its resupply vessels. Russia and China are irridentist states that covet the land and seas of their neighbors, that have broken the UN Charter and other relevant international laws, and that have used their hard power to compel and coerce their neighbors to acquiesce to their demands.
Poland benefits from the collective defense arrangement of the North Atlantic Treaty Organization (NATO) and hosts troops and infrastructure from the other members. This alliance is a remnant of the Cold War, but it has regained relevance following the recent display of Russian aggression in Ukraine and in the Black Sea. On the other hand, the Philippines is a Major Non-NATO Ally (MNNA) eligible for certain defense trade and security cooperation arrangements with NATO. Of course, it has a mutual defense treaty with the US and strategic partnerships with other Indo-Pacific middle powers such as Australia, Canada, India, Japan, and South Korea. This engagement entails multilateral and bilateral exercises, port visits, personnel exchanges, and capacity-building programs to improve the Armed Forces of the Philippines (AFP).
For defense spending, Poland is looking at a 2%-of-GDP baseline for military expenditure. The Philippines is also bent on increasing its defense budget in response to the emerging security challenges in the region. Part of this is channeled to the AFP modernization program, which should support a nascent comprehensive archipelagic defense posture. Polish manufacturer PZL Mielec has provided 48 S-70i Black Hawk helicopters for the AFP. There are other competencies from which the AFP can benefit from Polish experience and expertise. Lessons can be drawn from the setup of the National Cyber Security Center. Other areas are air defense and military engineering.
On the developments unfolding in the South China Sea, Minister Sikorski’s statement during his Singapore visit resonates. He pointed out that imperialism has historically benefited a few while oppressing many. In the case of China, the CCP’s brand of imperialism has made it the apex predator in its society and Southeast Asia, controlling and exploiting its citizens and neighboring states to serve the interests of the party.
He also extolled the value of multilateralism, despite its failures and shortcomings in global affairs. Again, this resonates. ASEAN may have been found wanting to prevent the major powers from making the region a battleground for influence and competition. The Philippines can be the region’s game changer by pushing for an alternative multilateral mechanism. This would be a network of mini-laterals, cooperating in synergy whenever their interests converge, ad hoc but agile, and postured to deliver results with little formality, consisting of the like-minded democracies in East Asia and beyond.
Here in the Indo-Pacific, if China is Russia, and Taiwan is Ukraine, then the Philippines is Poland. The curse of geography compels us to mature as a state and accept our responsibility as a middle power. The future peace and stability of the region will be predicated on the Philippines as the fulcrum and rallying point of like-minded democracies against China’s hegemonic ambition.
This article was originally released on Philippine Star.
