Marcos told to prioritize key issues over ‘Cha-cha’
THE PHILIPPINES’ largest business group has called on the government of President Ferdinand R. Marcos, Jr. to work on lowering energy and logistical costs as well as deal with geopolitical risks instead of creating political instability by pushing changes to the 1987 Constitution.
The Philippine Chamber of Commerce and Industry (PCCI) also cited the slow progress in the country’s anti-corruption fight and the political squabble between the President and his predecessor Rodrigo R. Duterte, which it said is undermining the country’s image on the global stage.
Rising energy and shipping costs and worsening geopolitical conflicts are hurting Philippine businesses and making the country unattractive to foreign investors, PCCI Chairman George T. Barcelon said by telephone.
“All these costs, we can see a steady increase in the trend,” the businessman said. “These issues should be addressed first before Charter change (‘Cha-cha’).”
The outlook for Philippine energy is bleak as the Malampaya gas field gets depleted by 2027. Malampaya, whose supply is expected to dwindle this year, is the Philippines’ only indigenous source of natural gas.
Output loss is expected to result in 12to 15-hour rotational brownouts across the main island of Luzon.
Meanwhile, tensions in the Red Sea, a major global shipping route, have remained elevated as Iran-backed Houthi rebels continue to attack cargo ships and tankers amid the conflict between Israel and Gaza, affecting the movement of goods globally and driving shipping rates up.
Philippine Economic Zone Authority Director-General Tereso O. Panga earlier said rerouting ships around the Red Sea could make shipping costs 15% more expensive due to additional fuel per trip between Asia and Northern Europe.
He also said rising fuel prices spurred by wars including Russia’s invasion of Ukraine, and El Niño that is is expected to last until the second quarter is affecting Philippine farm output.
Philippine inflation averaged 6% in 2023, the second straight year that it breached the central bank’s 2-4% target.
Senators and congressmen continue to trade accusations amid the push to amend the Constitution, and the President and his wife have been dragged into the mess.
The Senate has rejected a socalled people’s initiative for Charter change, which Mr. Duterte and his allies have linked to Mr. Marcos and his cousin Speaker Martin G. Romualdez.
The Commission on Elections on Monday suspended proceedings on the initiative, which senators led by presidential sister Maria Imelda “Imee” Marcos are investigating.
“What is the extent of this ‘Cha-cha?’” Mr. Barcelon asked. “We don’t see any new specific issues that this Charter change seeks to address,” he added, noting the business community is wary about where it is headed.