Binay Platform

8/18/2019 Binay Platform

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PRESIDENT JEJOMAR C. BINAY

PLATFORM OF GOVERNMENT

TABLE OF CONTENTS

A. Macro Economy: Binay Economic Agenda

B. Poverty Alleviation and Social Protection

C. Healthcare

D. Education

E. Labor and Employment

F.

Overseas Filipino Workers (OFWs)

G. Mindanao

H. Shelter

I. Fiscal Policy (Revenue Generation, Taxes, Spending)

J. Infrastructure and Public Works

K. Investment, Doing Business and Government Operations

L. Trade (Tariffs, Trade Pacts, Goods and Services, OFWs)

M. Tourism

N.

Agriculture and Food

O. Anti-Corruption

P. Metro Traffic and Public Transportation

Q. Tax Reform

R. Micro, Small and Medium Enterprises (MSMEs)

S. Mining and Oil Exploration

T. Power and Energy

U. Manufacturing

V.

Constitution

W. Peace and Order

X. Philippines-China Relations and Foreign Policy

Y. Disaster Preparedness and Climate Change

Z. Agenda for Women


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PRESIDENT JEJOMAR C. BINAY

PLATFORM OF GOVERNMENT

A. MACRO ECONOMY

1. Precis

Increasing number of poor, jobless growth, distorted budget priorities and

underperformance of many industry sectors: these are the current major

macroeconomic problems and biggest challenges of the Philippines.

While the Philippine economy has registered consistent increases in gross domestic product (GDP) over thelast five years, there has been no significant change in the percentage of people living below the poverty line

from 2009 to 2015. We cannot be satisfied with a 26.3% poverty incidence as this means at least one of everyfour Filipinos has an income lower than the poverty threshold for the year. With increasing population, the

total number of Filipinos living in poverty has been rising annually despite the Pantawid Pamilya Pilipino

Program (4Ps) and its corresponding increase in annual budget allocation from approximately P21 billion in2011 to P62 billion in 2015. The statistics on employment also contradict any claim of a meaningful

economic growth. As example, despite the rise in GDP for 2013 at 7.1%, the employment rate was at its

lowest at 92.7% in the last seven years. This only means that the economic growth did not translate into

creation of more jobs and employment opportunities. On the other hand, the annual budget have grownsignificantly over the last five years from P1.3 trillion in 2010 to P2.6 trillion in 2015 but figures on povertyincidence have not improved to reduce the number of poor families. There is also a big imbalance on the

performance of economic sectors. Agriculture and manufacturing have failed to gain any sustained tractionfor the last five years preventing the Philippines from attaining inclusive growth. One third of the workforce

is engaged in agriculture but this industry contributed very little to the country’s GDP. Due to the slow

infrastructure development and government underspending, new business and livelihood opportunities havenot reached expected levels to contribute to economic development. Those living below the poverty line are

mostly from this sector and accordingly should have received more budget allocation. Interestingly, 15 of the poorest provinces in the Philippines are agricultural areas with eight located in Mindanao.

2. The Binay Economic Agenda

On the basis of the foregoing and as a fundamental economic thrust, the Binay administration will pursue amandate for equitable, inclusive and sustained economic growth geared towards: (a) creating jobs and

livelihood opportunities, (b) meaningful income for Filipino workers and (c) adequate and affordable food

for every Filipino. This will be achieved through a balanced combination of economic and social government policies that are sensitive to the needs of its constituents and those who do business in the country. Moreimportantly, the Binay government is committed to the proper and efficient implementation and timely

delivery of priority projects using experience and competence. He will implement his plans on the basis of

his core governance values of Competence ( Kakayahan), Executive Experience ( Karanasan), SocialInclusion ( Kasama at Kabilang ) and Compassion and Care ( Kalinga).

The Binay Economic Agenda is anchored on the following five fundamental pillars:

A. First Pillar. Develop key industries, including Agriculture, Manufacturing and Exports, Tourism,

Infrastructure and Services, through appropriate government support and funding with private sector participation


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Three of these sectors already comprise 100% of our current employment with Services generating54.5%, Agriculture providing 29.6% and Industries and Manufacturing providing 15.9% of allemployment opportunities in the Philippines as of October 2015. President Binay deems it proper for the

government to continue to support and give importance to these key industries of the Philippine

economy.

B.

Second Pillar. Attract foreign direct investments to create business, livelihood and employmentopportunities through necessary economic structural changes

The economic provisions of the 1987 Philippine Constitution shall be amended to allow foreigners to

engage in specific industries where foreign funds are needed as the Philippines is lagging behind foreigndirect investments. The Binay government shall shorten business registration process and establish one-stop shops for ease of doing business.

C. Third Pillar. Pursue equitable distribution of economic wealth through tax reform

Towards this objective, a Binay Presidency will institute a genuine tax reform policy that espouses more

economic wealth to low and middle-income individuals. This reform is based social justice and fairness.

The Binay Tax Reform Plan involves working towards the removal of individual taxes on workersreceiving a monthly salary of P30,000 or less and a holistic package that will ensure more efficient tax

and revenue collection. A Binay presidency will reduce both personal and corporate income tax rates toa level that is more competitive with our ASEAN peers. Tax brackets must be adjusted to inflation.

D. Fourth Pillar. Deliver efficiently basic government services such as shelter, health, employment,

education and food

The Binay administration will make quality healthcare with focus on primary care accessible to everyFilipino with the participation of the private sector. The Binay administration will make quality

education accessible to all. A Binay Presidency will give full protection to labor, promote fullemployment and equality of employment opportunities for all. The Binay government will make

affordable and decent shelter to underprivileged and homeless families.

E. Fifth Pillar. Increase social protection of poor families through expansion of targeted subsidy program, Pinagandang Pantawid Pamilya Pilipino Program (5Ps)

The Binay administration will increase access of poor families to basic services in partnership with the private and business sector. 5Ps will include senior citizens aged 60-64 years old and will focus onlivelihood creation for the beneficiaries.

B. POVERTY ALLEVIATION AND SOCIAL PROTECTION

1. Challenges

Despite the average GDP growth of 6% for the last five years of the Aquino administration, poverty

incidence in the Philippines has not been drastically reduced. Approximately 25 million Filipinos continue to

live below the poverty line.

2. Binay Social Protection Plan

The Binay administration will increase access of poor families to basic services (shelter, health, education,

employment and food) with private sector participation. Binay will: (a) Expand and implement 5Ps and


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include 60-64 senior citizens and technical-vocational trainings; (b) Ensure access tosocial protection services and programs (sustainable livelihood, farmers, fishermen,PWDs and disaster victims programs, see also tax reform); (c) Develop social

worker programs; (d) Increase absorptive capacity of government (recruit more

social worker personnel); (e) Enhance social welfare facilities (upgrade, constructday-care, senior citizens and family centers).

C. HEALTHCARE

1. Challenges

The Philippines has not been able to meet its millennium development goals inmaternal mortality, access to reproductive health and HIV/AIDS (where cases have in fact doubled from

2011-2013). Six out of 10 Filipinos die without ever seeing a doctor. The national average of 3.5 doctors per

1,000 population is a far cry from the ideal ratio of 1.5 doctors for every 1,000 population. According to the

Commission on Audit report, the Department of Health has failed to start, complete or use P909 millionworth of infrastructure. Many hospitals lack basic IT infrastructure to allow for better hospital management.

2.

Binay Health Plan

The Binay administration will make quality health care accessible to every Filipino with private sector participation. Binay will establish a comprehensive healthcare system anchored on primary care (promotive, preventive, curative and rehabilitative) all over the Philippines using the Makati Health Plus Model and

provide free medical services for indigents and senior citizens through public-private partnership. Binay will

support LGUs in the delivery of health and medical services and propagate rural health units to give free

medicines to the poor for the most prevalent diseases like hypertension, diabetes and common infections.Binay will also increase compensation of and grant compensation-related benefits to public health workers.

The Binay Health Plan is anchored on the following five pillars:

A.

Ensure access to quality Universal Health Care Services with Primary Care to every Filipino

Free hospitalization to all LGUs through the Makati “Health Plus” Model with the participation of the private sector. Assist indigent patients and provide affordable medicines through LGUs.

B. Enhance Health Facilities

Establish and rehabilitate hospitals, clinics, evacuation centers, health centers in every barangay (free

medicine and hospital services to indigents in every barangay).

C. Develop Health Human Resource

Increase benefits of health workers, nurses, midwives and their families. Implement the Doctors to Barrios and rural health practice programs.

D. Manage Disease and Illnesses

Escalate awareness of HIV/AIDS and other infectious diseases. Promote quarantine international health

surveillance campaign.

E. Improve Regulation and Policy


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Institute a health care awareness and prevention drive.

D. EDUCATION

1. Challenges

While the Department of Education budget has received the largest budget allocation of P430.7 billion in the

2016 national budget, the education sector is still hounded by lack of classrooms, displaced college teachers,lack of water and energy supply in public schools. A total of 84,728 target classrooms for 2014-2016 have

yet to be completed. An estimated 80,000 college instructors and non-teaching personnel will be displacedduring the transition period of the K to 12 program. 15.21 % of public elementary schools and 4.2% of publichigh schools remain un-energized. 3,628 elementary and secondary schools have no regular source of safe

and clean water.

2. Binay Education Plan

The Binay administration will make quality education accessible to all. As highlights, the Binay government

will provide free textbooks, school supplies, uniforms and food to at least 20 million public school students.The Binay government will complete the construction of at least 50,000 classrooms during his first year in

office and build all necessary education infrastructure facilities. He will support and improve the K to 12 program and ensure vocational and technical training. In college, he will implement nationwide the dualizededucation system of the University of Makati to match the skills of the students with the needs of the private

institution for employment purposes.

Binay’s Education Plan is anchored on the following five pillars:

A. Ensure Basic Services Delivery and Distribution

Provide computers, internet facilities, sports equipment. Distribute free textbooks, instruction materials,

school uniform and school supplies. Supply sports equipment and erect sports facilities.

B. Develop and Construct Infrastructure

Construct school buildings, classrooms, laboratory and other facilities, including access infrastructure to

schools. Eliminate backlog of classrooms. Establish interconnectivity and internet facilities in all publicschools.

C. Build and Empower Competence

Increase teachers’ salaries and administer further training. Provide scholarship grants and training

support.

D. Enhance National Curriculum and Programs

Strengthen K to 12 program and ensure protection to all affected stakeholders. Carry out co-curricularspecial learning support program. Implement alternative learning and delivery mode programs, includingrequirement for learning centers.

E. Preserve Culture and Heritage by promoting rights of Indigenous Peoples, Nationalism and Patriotism


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E. LABOR AND EMPLOYMENT

1. Challenges

Despite average GDP growth rate of 6% for the last five years, the unemployment rate

in the Philippines remains high at 5.6% or approximately 3.7 million people. This rateis higher than other ASEAN-6 nations like Thailand (0.95%), Vietnam (2.4%),

Singapore (2.6%) and Malaysia (3.05%). The manufacturing and agricultural sectors,two of the biggest generators of jobs, are declining.

2. Binay Labor and Employment Plan

The Binay administration will give full protection to labor, promote full employment and equality of

employment opportunities for all.

The Binay Labor and Employment Plan is anchored on the following five pillars:

A.

Promote Full Employment and Capacity Building

Create 2 million jobs per year and increase job opportunities from agriculture, manufacturing, export,tourism, trade and BPO.

B. Enhance Social Protection for Vulnerable Workers

Engage rural and emergency employment services. Enhance speedy adjudication of labor disputes.Increase productive, remunerative employment.

C. Ensure Labor Welfare and Protection

Promote workers’ organizations and tripartism. Implement worker empowerment programs. Promotesettlement of labor disputes through conciliation and collective bargaining. Strictly enforce rules against

labor-only contracting.

D. Increase tatay Welfare and Protection – see Binay OFW Plan

E. Improve Policy Formulation and Employment Regulation

Continue participation in International Labor Organization Conferences. Develop employment, industrial peace, working conditions and standards. Prioritize workers with special concerns. Implement

international labor affair policies.

F.

OVERSEAS FILIPINO WORKERS

1. Challenges

The GDP growth has not induced creation of more stable jobs in the Philippines resulting in more Filipinosworking outside for better employment opportunities. Under the Aquino administration, the number of

OFWs leaving the country increased by 34% from 4,018/day in 2010 to 6,092 in 2015. Out of 10.44 millionFilipinos worldwide, 2.3 million Filipinos are OFWs, mostly laborers and skilled workers in the Middle East.

OFW remittances in 2015 amounted to P1 trillion or 9.8% of GDP.


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2. Binay OFW Plan

The Binay administration will give priority to the welfare and protection of our Overseas Working Filipinos.

The Binay OFW Plan is anchored on the following five pillars:

A. Create OFW Pension Plan and Waive OFW Membership Fees

B. Create OFW Roadmap (from pre-departure to reintegration)C. Promote OFW Welfare and Protection against Exploitation and Violence (strictly enforce illegal

recruitment and anti-trafficking laws)D. Improve Basic Government Services (welfare, livelihood assistance programs, simplify process for

Overseas Employment Certificates)

E. Strengthen Delivery of Diplomatic and Consular Services (re-institute Legal Assistance Fund in national

budget, deploy experienced labor attaches and consulate officials, enhance bilateral, multilateral and

regional arrangements to protect OFWs)

G. MINDANAO

1. Challenges

The poverty incidence in Mindanao is the highest in the entire Philippines. ARMM has the highest povertyincidence of families in 2014 at 48.7%. Of the 16 poorest provinces in the Philippines, eight are located in

Mindanao and all are agricultural provinces, including Lanao del Sure, Lanao del Norte, Maguindanao,

Saranggani, Zamboanga del Norte and North Cotabato. 220,000 individuals have been displaced also due to

the conflict and violence in Mindanao.

2. Binay Mindanao Plan

The Binay administration will uplift the lives of Mindanao people.

The Binay government will: (a) Pursue economic development through investments and government

spending particularly on infrastructure (farm-to-market roads, airports, (b) Reduce poverty incidence throughagriculture plan; (c) Address displacement of Mindanao people due to conflict and violence; (d) Resolve

human rights violations against indigenous cultural communities and peoples; and (e) Improve delivery of

basic services (shelter, health, education, employment, food).

H. SHELTER

1. Binay Shelter Plan

The Binay administration will make available affordable and decent shelter to underprivileged and homeless

families. Binay will push for the creation of the Department of Human Settlement and Urban Developmentand a shelter unit for each LGU. Binay will also optimize the implementation of housing programs through

appropriate housing government agencies without any political interest and implement calamity recovery

measures.

The Binay government shall: (a) Ensure access to socialized and economic housing (offer Pabahay Caravan

program for indigents, accelerate low cost house financing, establish a comprehensive shelter plan); (b)Accelerate subdivision survey of proclaimed lands for socialized housing; (c) Pursue drive against

professional shelter syndicates; (d) Enhance capacity (create Department of Human Settlement and Urban


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Development and shelter unit for each LGU, develop shelter monitoring informationsystem); and (e) Implement calamity recovery measures (institute housing assistance program for calamity victims).

I. FISCAL POLICY (REVENUE GENERATION, TAXES AND SPENDING)

1.

Challenges

There is a need to reform the Philippine tax system. The Philippines currently hasthe highest personal income tax rate at 32% and the highest corporate income tax

rate at 30% among its ASEAN-6 peers. This makes the country’s tax system“uninviting” as the region moves toward economic integration. Because of the morelenient and reasonable income tax rates in the region, some talented Filipinos have chosen to live and work

abroad, resulting in “brain drain.” The current tax system puts too much burden on working class taxpayers

and very little on well-off individuals. Up to 85% of the total collection of individual income taxes is paid by

the working class while only 15% comes from self-employed individuals and professionals. Tax rates and brackets have become unreasonable. When the Tax Code was passed 19 years ago, the Philippine peso is

only worth 43 centavos today. Since the tax rate has remained the same, the government is effectively

robbing the working class.

2. Binay Tax Reform Plan: On Revenue Generation and Taxes

The Binay administration will pursue a comprehensive tax reform plan to gradually reduce income and

corporate income taxes by adjusting existing brackets according to current inflation rates. This includes

income tax exemption of Filipino workers earning monthly salary of P30,000 or less. This plan will also

move towards reducing corporate and personal income taxes to 25% to draw more foreign investments andcreate more jobs for our people.

Following the recommendations of the Tax Management Association of the Philippines, the Binay TaxReform Plan includes improvement of tax compliance of self-employed individuals and professionals by: (a)

adopting a simplified net income tax scheme for self-employed individuals and professionals; (b) redefining base for computing optional standard deduction to 40% of gross income; and (c) simplifying VAT system for

self-employed and professionals. The Binay Tax Reform Plan will also pursue tax administrationimprovement initiatives by: (i) streamlining bureaucratic processes to render efficient taxpayers’ services and

increase tax collection; (ii) modifying audit trainings for revenue examiners to attain uniform identification

of issues; and (iii) reviewing revenue regulations that require burdensome and unnecessary documentaryrequirements.

To ensure a holistic and sustainable approach to responsible fiscal reform without courting macro instabilityand credit downgrade, Binay will, among others: (a) improve the management of investment tax incentives

1,

including implementation of Tax Incentives Management and Transparency Act (TIMTA) and the passage of

the Fiscal Incentives Rationalization or Reform Bill that are expected to contribute to an additional 0.5%-

1.0% of GDP2

; (b) consider the sale of government assets and privatization of select government-owned andcontrolled corporations; and (c) implement stronger crackdown on smugglers as the government is estimated

to be losing P230 billion a year from agricultural products smuggling, P30 billion from oil smuggling and

P12 billion from tobacco smuggling.

3. Improving Public Spending

1 Recommendation from OGP Fiscal Reform Coalition.2 Based on Bangko Sentral ng Pilipinas, P757.9 billion GDP as of 2015 (constant 2000 prices).


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From 2011-2014, the Aquino government has been consistent in not meeting its spending targets and indisbursing the funds already approved by Congress, which has affected the Philippine economic growth.

2011 2012 2013 2014

Total Underspending:P411.7 billion

Total Unobligated

Allotment: P164 billion

Total Unreleased:

P247 billion

Total Underspending:

P333.7 billion

Total UnobligatedAllotment: P183.6 billion

Total Unreleased:

P150.1 billion


P589.5 billion


Total Unreleased:

P244.6 billion


P850.1 billion


Total Unreleased:

P347.7 billion

Source: Commission on Audit, Annual Financial Report, National Government Agencies 2011-2014.

The Binay administration will ensure implementation of government projects through timely government

spending. Binay will ensure consistency in government policies and rules on budget spending and increaseabsorptive capacity of each department to implement projects.

J. INFRASTRUCTURE AND PUBLIC WORKS

1. Challenges

This government’s failure to spend budgeted funds has delayed infrastructure development in the Philippines.

In 2015, infrastructure budget was at P569.9 billion but only about P291.3 billion has been utilized as of

November 2015. The Commission on Audit has also pointed out poor planning, inaccurate status reports and political interventions that have resulted in the deficiencies in implementing the Department of Agriculture’sfarm-to-market roads. On the other hand, the International Air Transport Association (IATA) has declared

the Ninoy Aquino International Airport (NAIA) as a high-risk airport with problems in safety, security andoperations, infrastructure capacity and ownership and control. Only three domestic airports have nightlanding capability such as Butuan, Laguindingan and Tacloban airports. Other airports meanwhile have short

and inefficient runways. The ideal length is 9,500 feet but some are short of such requirement: PuertoPrincesa (8,530 feet), Caticlan (3,116 feet), Kalibo (7,175 feet), Tagbilaran (5,837 feet), Legaspi (7,489 feet)and Tacloban (7,014 feet).

2. The Binay Infrastructure and Public Works Plan

The Binay administration will increase public investment in infrastructure development and encourage more

private sector participation.

To address the challenges above, the Binay government will, among others: (a) invest and efficiently spendat least 5% and move towards 7% of the GDP in infrastructure projects; (b) accelerate construction andcompletion of: (i) social services infrastructures like hospitals, school, housing, (ii) roads, bridges andhighways, railroads, airports, (iii) irrigation and flood control, (iv) water supply facilities, sewerage and

drainage systems, and (iv) information and communication technology; (c) implement mega infrastructure

projects in every region and major infrastructure projects in every province; and (d) push for passage of

right-of-way bill and amendment of the Build-Operate-Transfer (BOT) Law.


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The Binay administration will also continue and enhance the implementation of thePublic-Private Partnership (PPP) strategy by eliminating technical and legal bottlenecks to accelerate completion of important projects and strictly honoring

legal contracts and implementing consistent government policies. Binay identifies

the need to closely monitor airport projects under PPP (Mactan-Cebu InternationalAirport, Bacolod-Silay, Davao, Iloilo, Laguindingan, New Bohol and Puerto

Princesa Airports’ operations and management) and the need to shift to a dualairport system. To attract more foreign direct investments for this purpose, the

Binay government will pursue amendment of the economic provisions of the 1987Philippine Constitution to allow foreigners to operate efficiently public utilities

such as airports and railways.

In sum, the Binay Infrastructure and Public Works Plan is anchored on five basic pillars:

A. Infrastructure Development

B. Procurement and Bureaucratic Process ImprovementC. Regional and Rural Advancement

D. Competence Building and Absorptive Capacity Expansion

E.

Climate Change and Environmental Adaptation

K. INVESTMENT

1. Challenges

The economic restrictions under certain provisions of the 1987 Constitution have prevented the entry of

foreign investors especially in capital-intensive industries. The flip-flopping government policies and theinefficient delivery of basic government services have also turned off investors to do business in thePhilippines.

2. The Binay Investment Plan

To address the problem above, the Binay government will prioritize the amendment of the economic

provisions of the 1987 Constitution to increase foreign direct investments in major sectors of the Philippineeconomy. Binay will convene the Legislative-Executive Development Advisory Council (LEDAC) to discuss

the measure and certify the bill as urgent in the next Congress.

The Binay administration will make the Philippines a more competitive investment alternative by improvingease of doing business and streamlining fiscal incentives. The Binay government will, among others: (a)

implement clear, consistent, investor-friendly and simplified government rules and regulations to encouragemore investments and reduce cost of business; (b) institute fast and simplified system of registration and

securing permits and licenses through a National “One-Stop-Shop” Program; (c) honor sanctity of legal

contracts entered into by the national government; (d) rationalize fiscal incentives to ensure maximum

benefit; and (e) increase foreign investment opportunities in agriculture, manufacturing, tourism, responsibleand sustainable mining export and business process outsourcing sectors.

The Binay administration will also ensure excellence in delivering quality public services. Binay will, amongothers: (a) improve absorptive capacity of every department to ensure efficient delivery of governmentservices; (b) improve coordination between the local government units and the national government; (c)

strengthen the Anti-Red Tape Law implementation; (d) support passage of Freedom of Information bill toensure good governance and reduce corruption; (e) involve private sector, civil society, grassroots


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organizations; and global development partners; and (g) most important of all, appoint cabinet officials basedon competence, integrity and decisiveness.

L. TRADE (TARIFFS, TRADE PACTS, MOVEMENTS OF GOODS AND SERVICES, OFWS)

1. Challenges

The economic provisions of the 1987 Constitution have restricted entry of foreign direct investments in some

major sectors of the Philippine economy. The same has constrained the country from pursuing free tradeagreements with other economies. The Philippines’ adherence to quantitative restrictions on rice has also

resulted in a restrictive rice import environment.

2. The Binay Trade Policy

The Binay administration will push for amendments of the restrictive economic provisions of the

Constitution. Binay will immediately convene LEDAC to discuss the measure and certify it as urgent. Inaddition, once the quantitative restrictions on rice lapse in 2017, the Binay government will end the rice

monopoly of the National Food Authority, reform the agency to focus on ensuring food security and allow

the private sector to participate in rice importation.

3. The Binay Overseas Filipino Workers (OFWs) Plan

The Binay administration will prioritize the welfare and protection of OFWs to enable them to realize their

full potential in the service of the nation.

As primary programs, Binay will, among others: (a) waive the OFW membership fee; (b) establish a pension plan for OFWs; (c) provide social benefits, education and training benefits; (d) implement welfare assistance,livelihood, repatriation and re-integration programs for OFWs and their families; (e) re-institute the Legal

Assistance Fund for OFWs in the national budget; (f) create a roadmap for OFWs to ensure promotion oftheir welfare and interest encompassing pre-departure service to re-integration in Philippine society.

The Binay OFW Plan is anchored on the following basic pillars:

A. Creation and Implementation of OFW Roadmap

Involve decision makers at all levels (local, regional, national), OFWs and their families, civil societyand other stakeholders in developing the OFW roadmap.

B. Promotion of OFW Welfare and Protection Against Exploitation and Violence

Implement strictly the placement fee limitation and no placement fee for household service workers and

seafarers. Implement strictly the laws against illegal recruitment and anti-human trafficking. Institute

measures to deter unfair treatment against OFWs and improve information, education andcommunication campaigns.

C. Improvement of Basic Government Services

Simplify process of obtaining Overseas Employment Certificates. Implement foreign employer

accreditation by Philippine Overseas Labor Offices. Improve licensing and regulation of privaterecruitment and manning agencies. Provide information and education seminars on pre-departure,

emergency procedures in cases of natural disasters and armed conflicts.


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D. Strengthening Delivery of Diplomatic and Consular Services

Deploy experienced labor attaches and consulate officials and add manpower at

locations with large concentration of OFWs. Enhance bilateral, multilateral andregional agreements with labor receiving countries for more protection and better

employment terms and conditions for OFWs.

M. TOURISM

1. Challenges

The Philippines has faced poor infrastructure, constant risk of natural calamities and limited resources todevelop tourism sites, all of which have hampered full development of tourism sector.

NAIA has exceeded its design capacity of 31 million passengers with a passenger load of about 33 million

annually. Most of the 70 domestic airports cannot accommodate evening flights. Local ports have poorfacilities and old hand-me-down vessels. There is a supply shortage of hotel rooms with 80,162 available

rooms but a demand of 121,875 rooms. The Philippines also suffers from damaged infrastructure and travelrisks that result in cancelled trips and loss of potential revenues due to the effects of 20 typhoons a year.

2. The Binay Tourism Plan

The Binay administration will formulate and implement local tourism plans. Similar to the National Tourism

Development Plan (2011-2016), each local government unit (LGU) must come up with its own tourism

development plans with the help of the national government. In this connection, the Binay government will

pursue necessary legislation to allow larger allocation and distribution of internal revenue allotments to poorer municipalities. LGUs must partner with the Department of Tourism to improve tourist destinationswhile protecting national wildlife sanctuaries in cooperation with the Department of Environment and

Natural Resources.

The Binay administration will improve maritime transport facilities and infrastructure. Ports must bemultiplied, upgraded and maintained. There is a need to utilize Subic and Batangas to free up the Port ofManila. The RORO Program under the previous government was a good start and must be further developed

to improve the flow of goods and people within the archipelago. There is a need to expand or initiate new

itineraries for international cruise ships to divert their destinations into the Philippines.

The Binay administration will improve international airports and facilities. There is a need to shift to a dualairport system. Pending developments at Clark International Airport must be accelerated to help ease

congestion in NAIA. Binay will open alternative feasible locations with the participation of the privatesector.

The Binay administration will pursue opportunities in Eco-Tourism that will involve education of visitors.The Binay government will encourage tourism in, among others, Batanes Islands, a high value destination,Palaui Island in Cagayan Province, a protected landscape and seascape in Luzon and ranked 25

th among the

top 100 beaches in the world according to CNN, and Sagay, Negros Occidental, home to one of the biggest

marine reserves in the Philippines.

The Binay administration will pursue opportunities in Medical Tourism. The Philippines has the highest

concentration of health workforce and second largest exporter of talent to OECD countries. A vibrant


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medical tourism will allow OFWs in the medical field to come home and simultaneously address brain drainin the workforce.

N. AGRICULTURE, FOOD

1. Challenges

Most poor Filipinos are in agriculture. Three of four Filipinos live in rural areas and depend on agriculture.

51% or more than two million households under the 4Ps are engaged in farming, fishery and forestry.Agriculture’s share in GDP has been declining over the years primarily due to low productivity and adverse

effects of climate change despite the increasing budget of the Department of Agriculture in the last six years.

2. The Binay Agriculture Plan

The Binay administration will ensure, give and promote adequate food supply and increase agriculture

production, while increasing incomes of small farmers. Binay will, among others: (a) provide support andsubsidies to Filipino agriculture farmers to ensure their social and economic inclusion in the growth of

Philippines economy; (b) increase bigger budget for agriculture and build farm-to-market roads more

efficiently to reduce post-harvest losses; (c) increase production of export products and convert Philippineagriculture into a reliable earner of foreign exchange; (d) remove irrigation fees that burden average Filipino

farmers; (e) increase farm productivity and promote crop diversification and high-value crops in areas notconclusive to rice planting; and (f) capacitate farmers to shift from subsistence farming to agribusiness.

The Binay Agriculture Plan is anchored on the following basic pillars:

A. Infrastructure Development

Construct, rehabilitate and repair farm-to-market roads and small-scale irrigation projects. Implement

disaster-resilient agricultural infrastructure projects.

B.

Food Security, Affordability and Production

Implement agriculture and fisheries modernization program. Distribute and develop seeds that areoptimally adaptive to present and future climate conditions. Procure community mechanization and post-

harvest equipment and facilities.

C. Increase Population of High Value Agricultural Crops

Provide food production program grants.

D. Regulation and Policy Improvement

Strengthen crop insurance services and credit guarantee. Reduce interest rates on agricultural loans.Institute reforms in National Food Authority. Promote production and consumption of non-rice staples

(white corn, saba, cassava and sweet potato).

E. Agricultural Competitiveness

Implement comprehensive scholarship program for poor and deserving students in state universities andcolleges with course offerings related to agriculture, forestry, fisheries and veterinary medicine.


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O. ANTI-CORRUPTION

1. Challenges

The Philippines ranks 95th out of 168 countries in the 2015 Corruption Perceptions

Index reported by Transparency International or 10 notches lower than its rank in

2014. The Philippines needs to improve this rank particularly in eradicatingcorruption in all levels of government.

2. Binay Anti-Corruption Plan

The Binay administration will reduce anti-graft and corruption in all levels ofgovernment.

Binay shall: (a) Issue EO No. 1 to ensure transparency in executive department and pursue approval of

Freedom of Information bill; (b) Enhance public service (ensure efficient delivery of public services,improve LGU and national government coordination); (c) Strengthen Anti-Red Tape Law implementation

and intensify efforts against smuggling and tax evasion; (d) Improve business environment through clear,

consistent, investor-friendly and simplified government rules and regulations; and (e) Involve private sector,civil society, grassroots organizations and NGOs in governance monitoring and budgeting process. Please

also see section on Investments, Doing Business and Government Operations.

P. METRO TRAFFIC AND PUBLIC TRANSPORTATION

1. Challenges

Daily traffic in Metro Manila costs P2.4 billion per day. Philippines is considered as the 9th worst place to

drive. 20% of total income of the poor in Metro Manila is spent on transportation. Vehicle increase, lack of

roads and increasing population are considered as the main causes of traffic.

2.

Binay Traffic Plan

The Binay administration will ensure that every Filipino can travel safely and quickly to and from theirhomes.

On a short term basis, the Binay government shall fast-track completion of the NAIA expressway project phase 2, accelerate pending or stalled developments at Clark airport and utilize Subic and Batangas portsmore. On a long-term basis, the Binay government shall invest in mass transport system, accelerate bus rapid

transit system, award MRT maintenance to an experienced contractor with good track record, recapitalizePhilippine National Railway and complete the NLEX-SLEX connector and flood control projects.

The Binay government shall: (a) Improve basic government services (motor vehicle and driver’s license

registration services, create two separate Department of Transportation and Department of Information,Communications and Technology; appoint only competent people); (b) Implement comprehensive air, sea

and land transportation plan (ameliorate traffic management plan, execute major transport PPP projects); (c)

Build necessary infrastructure (improve mass transit network, modernize road-based public transport,upgrade main urban road and expressway network); (d) Improve access to transportation services (redevelop NAIA, expand capacity of ports, harbours, train stations and airports); and (e) Institute climate change and

environment adaptation (reduce emissions, build according to environment hazards and risk standards).


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Q. TAX REFORM

1. Challenges

The Bureau of Internal Revenue (BIR)’s revenue and tax collections are always below target. BIR has lostmany court cases for failing to follow the National Internal Revenue Code or Tax Code. Unfortunately, the

Tax Code is outdated. The Philippines has the highest income tax rates for fixed-income earners andcorporations. The Aquino administration has rejected the lowering of corporate and individual income tax

rates.

2. Binay Tax Reform plan

The Binay administration will institute tax reforms and improve tax collection.

The Binay government shall: (a) Exempt individuals earning P30,000 or less monthly salary from income

taxes; (b) Restructure personal and corporate income tax structure and adjust to inflation (reduce towards25%); (c) Improve tax compliance of self-employed individuals and professionals (adopt simplified net

income tax scheme for self-employed and professionals, re-define base for computing optional standard

deduction); (d) Institute tax administration improvement initiatives on tax audits, taxpayer service (improvetax collection and rectify all erroneous BIR rulings and issuances); and (e) Increase tax compensatory

measures through prevention of smuggling, implementation of Tax Incentives Management andTransparency Act (TIMTA), passage of Fiscal Rationalization bill, etc.

R. MICRO, SMALL AND MEDIUM ENTERPRISES (MSMES)

1. Challenges

Lack of funding or source of credit, poor infrastructure, shortage of skilled workers and low access to

technology hamper potential growth of MSMEs. Roads, reliable supply of power and water are important to production of goods.

2. The Binay MSMEs Plan

The Binay administration will, among others: (a) open key sectors to foreign investors to allow the

government to channel more funds to programs that will benefit MSMEs; (b) streamline business

registration; (c) boost digital infrastructure for easier connectivity of products and services with the creationof the Department of Information and Communications Technology; (d) grant incentives to companies thatwill participate in the government’s training and apprenticeship program; (e) promote MSMEs financing

programs especially in rural areas as MSMEs are currently concentrated only in 5 regions; (f) increase the budget allocation for TESDA to train more skilled workers; and (g) ensure proper implementation of K-12 to

equip students with technical-vocational skills.

S.

MINING, OIL EXPLORATION3

1. Challenges

" For oil exploration, please see separate discussion on Power and Energy section. The Binay administration will pursue more

frequent energy contracting rounds for bidding of petroleum service contracts for oil and gas exploration.


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Despite being ranked as the 5th most mineral-rich country in the world with at least

$840 billion mineral reserves and with gold reserves amounting to P7.36 trillion in2011 (according to the National Statistical Coordination Board), the Philippines has

faced major challenges in the mining sector. For the last six years, mining has

contributed very little to the Philippine economy (only 0.7% of GDP in 2014) and hasgenerated only 235,000 employment opportunities (only 0.6% of national

employment). The moratorium in granting new mining permits and contracts underExecutive Order No. 79, inconsistent mining policies and regulations, unregulated

operations of small-scale mining companies all have contributed to the decline of themining sector under the Aquino administration.

2. The Binay Mining Plan

The Binay administration will, among others: (a) repeal Executive Order No. 79; (b) convene the Mining

Industry Coordinating Council and LEDAC with other stakeholders to draft a bill that will determine the

appropriate mining fiscal regime that will attract only responsible foreign mining investors and promoteresponsible and sustainable mining; (c) include mining in the future Investments Priorities Plan; (d) establish

one-stop shop for mining applications to hasten approval of exploration permits; (e) conduct public

information campaigns to engage concerned groups in dialogues to address social and environmentalconcerns; and (f) continue dialogues with LGUs, religious sector, non-government organizations, indigenous

peoples to find solutions to specific mining and exploration projects.

T. POWER AND ENERGY

1. Challenges

The major challenge of every administration in this sector is ensuring energy and power supply security andreliability. Currently, the Philippines relies heavily on the Malampaya Deep Water Gas-to-Power Projectwhich supplies approximately 30% of the total power requirements of the Philippines. The Malampaya

service contract however will end by 2024 and no additional natural gas reservoir has been found as a

replacement. The Philippines also is a net importer of oil for its transportation and power needs andaccordingly is susceptible to the negative effects of oil price fluctuation and volatility.

2. The Binay Energy Plan

The Binay administration shall ensure long-term energy supply and security, instill professional competence

in the energy industry and pursue energy policy reforms. The Binay Energy Plan is anchored on five basic pillars:

A. Ensure reliable energy data for supply and demand for the Philippine Energy Plan and PowerDevelopment Plan

Enable government competence and expertise through technical and institutional assistance to assessmore accurate supply and demand outlook. Address Philippine economic growth through reasonably priced electricity, energy affordability and access.

B. Build all necessary infrastructure and implement all needed policies for energy resource exploration and production


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Achieve energy self-sufficiency by utilizing indigenous energy resources such as oil, gas, renewableenergy (biomass, geothermal, solar, hydro, ocean and wind) through credible energy contracting rounds.Harmonize local and national government issues through cooperation.

C. Create investment opportunities in the upstream, midstream and downstream energy and powerindustries

Implement Master Plan for Natural Gas for long-term gas supply viability including the construction of

natural gas infrastructure (pipeline, onshore or offshore gas receiving terminals, etc.). Recalibrate feed-intariff policy to facilitate construction of renewable energy power plants. Ensure grid infrastructure

development to allow expansion of generation capacity.

D. Implement and review statutory and policy framework for power and electricity

Fully implement the Electric Power Industry Reform Act of 2001 including the Retail Competition and

Open Access. Review rules on Wholesale Electricity Spot Market to address inefficiencies. ImprovePhilippine power market though responsive policies, rules and regulations. Enforce electricity

governance, political leadership and regulatory administration. Honor sanctity of legal service contracts.

E. Institute social protection programs to mitigate effects of volatile oil prices

Consider effects of oil prices on public transport sector and implement mitigating measures. Expandalternative fuels for transport and power sectors to give choices to general public. Complete

electrification of households and sitios to ensure wider energy access. Accelerate implementation of

Energy Regulations 1-94 projects for electrification, development, livelihood fund, reforestation,

watershed management, health and environment enhancement.

U. MANUFACTURING

1. Challenges

Manufacturing sector, one of the biggest generators of jobs, is still declining. The share of the manufacturingindustry to total employment has declined from around 11.3% in the mid-1970s to about 8.33% in 2012.Manufacturing sector is one of the smallest providers of jobs: 8% contribution to the total employed

percentage as of October 2015.

2. The Binay Business Plan

The Binay administration will make the manufacturing sector more competitive by: (a) improving

infrastructure, technology and logistics that will reduce cost of production; (b) streamline bureaucratic process of putting up a business in the Philippines; and (c) ensure affordable and reliable power supply.

Please see also section on Power and Energy.

The Binay government will also pursue an industry dispersal program to move industries away from urbancenters in order to equitably distribute the consumer market throughout the country. Binay will cluster

manufacturing zones, preferably in related industries, as manufacturing requires the majority of the “supply

chain” component players to be accessible to each other.

V. CONSTITUTION

1. Challenges


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As previously discussed, the restrictive economic provisions of the 1987Constitution have turned away foreign direct investments (FDIs). More FDIs will

result in more jobs in urban and rural areas, more competition to driver better

services and ultimately lower prices for Filipino consumers. More FDIs will allowthe Philippines to break away from a jobless growth to a more inclusive and

sustainable economy.

2. The Binay Policy

The Binay administration will pursue amendment of the economic provisions of the1987 Constitution. Binay will immediately convene LEDAC to discuss the mostefficient timetable for constitutional amendment.

The Binay administration also supports federalism as a long-term goal and only after certain prerequisites are

obtained. In particular, the shift to this form of government requires: (a) stronger administrative and politicalinstitutions; (b) determination of laws that should continue to be national in scope ( e.g., defense foreign

policy, taxation); and (c) identification of approaches to assist regions that are not financially ready for

autonomy. Currently, the devolution of agriculture and healthcare is not doing well because many LGUs donot have sufficient resources. The parameters for IRA distribution are also not equitable, as poorer

municipalities need a bigger share of the IRA. The Binay government can serve as the transition periodtowards a federal form of government.

W. PEACE AND ORDER

1. Challenges

Loss of lives who are caught in the cross-fire, displacement of families in areas of conflict, sexual

harassment, abuse and violence against women, drug-related crimes, high crime incidence (1.2 millioncrimes reported in 2014 with 100,000 population experiencing 1,004 crimes), communist and rebel

insurgency, continued conflict in Mindanao are major challenges currently faced by the Philippines.

2. The Binay Peace and Order Plan

The Binay government will, among others: (a) hire more policemen to reduce crime; (b) increase daily

subsistence allowance and provide health and legal assistance to AFP/PNP personnel; (c) increase combatduty pay to 25% of their base pay of AFP/PNP personnel and provide mission allowance of 50% of theirmonthly salary; (d) continue housing program for the police and military; (e) implement AFP and PNP

modernization plans to boost their crime-fighting capabilities; (f) continuously hold consultations with allfactions to attain lasting peace; (g) appoint Senator Greg Honasan as crime czar for a dynamic and effective

law enforcement; and (h) adopt a comprehensive, national, long-term peace policy that addresses the root

causes of crimes, e.g., poverty, lack of decent jobs, weak government institutions and slow justice system.

The Binay Peace and Order Plan are divided into three major components:

A. Interior and Local Government

The Binay administration will make every Filipino home and community safe and secure. This

component is governed by the following principles: (i) Good Local Governance; (ii) Local Disaster RiskManagement Reduction; (iii) Social Inclusion, Grassroots and Kasama Programs; (iv) LGU Capacity


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Development and Performance; and (v) Public Order and Safety, which includes escalation of crime prevention and suppression services, boosting crime investigation services and reducing crime.

B. Defense

The Binay Defense Plan is anchored on the following basic principles: (i) Territorial Defense Security

and Stability Services; (ii) Procurement and Bureaucratic Improvement; (iii) Skills TrainingAdvancement; (iv) Military Benefits Improvement; and (v) Military and Civilian Action Harmonization.

C. Foreign Affairs

Please see discussions on Philippines-China Relations section below.

X. PHILIPPINES-CHINA RELATIONS

1. Challenges

The territorial dispute with China poses the biggest challenge for the Philippines.

2. The Binay Foreign Policy

The Binay administration will protect and preserve sovereignty of the Philippines under a principle of globalcooperation and multilateralism. This is consistent with the mandate of the State under the 1987 Constitution

to pursue an independent foreign policy. The paramount consideration in our relationship with other states

shall be national sovereignty, territorial integrity, national interest and rights to self-determination.

The Binay government will, among others: (a) take on a cooperative foreign policy that emphasizesconstructive engagement without sacrificing sovereign rights; (b) marshal a regional effort to resolve the

territorial disputes that adheres to the principle of statesmanship and cultural respect; and (c) rebuild andimprove bilateral partnerships with other countries necessary to address common issues but sovereignty is

non-negotiable. Binay will create two commissions that will address separately the issues of preventivediplomacy and economic diplomacy. Within 100 days from assuming office, Binay will personally talk to

China and rebuild damaged relationship and discuss agriculture, manufacturing, tourism and other economicactivities.

Included in the pillars of the Binay Foreign Policy are:

A. Preservation and Enhancement of National Security

Binay will: (i) strengthen bilateral relations with ASEAN member states; and (ii) support the United

Nations in promoting global peace.

B.

Promotion and Attainment of Economic Security

Binay will: (i) relax foreign restrictions to attract more FDIs; and (ii) participate in regional and

international organizations such as APEC and WTO. Binay can pursue dialogues with China and otherASEAN neighbors on trade and economy. The agriculture, infrastructure and tourism sectors will benefitthe most with a constructive economic and trade discussion with China.

C. Protection of Rights and Promotion of the OFW Welfare and Interests


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Binay will: (i) provide legal assistance fund to distressed OFWs; and (ii) deliverfast, accessible, citizen-oriented and efficient legal, consular and other forms ofassistance to Filipinos at home and abroad.

Y. DISASTER PREPAREDNESS AND CLIMATE CHANGE

1.

Challenges

The Philippines is one of the most vulnerable countries to the effects of climatechange. Approximately 50% of total land area and 81% of total population in the

Philippines are affected by natural disasters. Climate change impacts diverse rangeof sectors, including agriculture, health, biodiversity and coastal and marineresources. Typhoon Yolanda alone has affected 3.4 million families, 16 million persons affected in 12, 139

barangays, 44 provinces, 591 municipalities and 57 cities in Regions IV-A, IV-B, V, VI, VII, VIII, X, XI and

CARAGA. The total estimated damage cost is P95.4 billion.

2. Binay Climate Change Plan

The Binay administration will work towards a climate-resilient and climate-smart Philippines.

The Binay government shall: (a) Implement National Climate Change Action Plan which includes strategic priority areas including food and human security; (b) Enhance social protection for farming and fishingcommunities and utilize Quick Respond Fund immediately; (c) Protect food security through sustaining crop

supply and live stock that withstands climate change; (d) Ensure sustainable water supply and promote use of

renewable energy sources such as biomass, geothermal, solar, hydro, ocean and wind; and (e) Reduce risk of

vulnerable groups from disasters through LGU programs and establish evacuation centers and calamityhousing programs

Z. AGENDA FOR WOMEN

The Binay administration will ensure the fundamental equality before the law of women and men and upholdwomen’s rights and welfare.

The Binay government shall: (1) Support legislations that strengthen gender equality (amend Family Code to

provide equality in giving parental consent, joint administration of properties, joint exercise of parental

authority); (2) Protection against women violence (establish separate detention facilities for womendetainees; ensure presence of women security personnel during interrogation); (3) Promote Women’sHealthcare (establish shelter and refuge; promote programs for maternal and child healthcare); (4) Ensure

Provision of Safe and Healthful Working Conditions (support specific legislations to ensure job security towomen victims of violence) and (5) Promote Women’s Participation and Empowerment (establish resource

development and crisis assistance centers in every province/city).

JEJOMAR C. BINAY

NOTE: You may email your comments and inquiries to:Secretary Gary Teves: [email protected] Atty. Jay Layug: [email protected]

Documents

Binay Platform