Philippines Roundup: Political rivalry, typhoon destruction, education, military cooperation

Military cooperation

The geopolitical landscape of the Philippines is undergoing significant developments with the Chinese aircraft carrier CNS Liaoning operating near Mindanao, coupled with the deployment of U.S. Marines from the Marine Rotational Force – Southeast Asia (MRF-SEA) for a six-month engagement aimed at bolstering regional military cooperation. According to the US Naval Institute, this strategic positioning comes at a critical time as both nations enhance their presence in the Indo-Pacific region, with MRF-SEA planning to undertake eight exercises until March 2025.

Political rivalry

Furthermore, internal tensions are mounting in the Philippines following the arrest of Apollo Quiboloy, the controversial founder of the Kingdom of Jesus Christ Church, on charges including human trafficking and child abuse. This incident has intensified the political rivalry between President Ferdinand Marcos Jr. and Vice President Sara Duterte, particularly as the nation approaches midterm elections. Quiboloy's legal troubles extend beyond the Philippines, as he faces sex trafficking indictments in the U.S., Asia Nikkei reports.

Typhoon Krathon

As the nation grapples with political upheaval, Typhoon Krathon is wreaking havoc, accounting for at least three deaths in the Philippines and one in Taiwan. Classified as a Category 3 storm, with winds reaching 173 km/h, the typhoon is expected to make a historical landfall near Kaohsiung, leading to extreme weather conditions and potential flooding. According to The Independent, Taiwanese authorities have preemptively closed schools and cancelled flights in anticipation of the storm's disastrous impacts, echoing the devastation caused by Typhoon Thelma in 1977.

Education

In an educational milestone, the U.S. Government has announced an additional funding initiative amounting to Php485 million ($9 million), boosting the Advancing Basic Education in the Philippines (ABC+) project to Php2.6 billion ($47.5 million). The US Embassy in the Philippines reports that this initiative aims to enhance the literacy and mathematical competencies of Filipino children, targeting new regions and enabling the distribution of 900,000 educational resources. With an increasing total of 2.8 million benefiting students, the initiative signifies a collaborative effort between USAID and the Philippines Department of Education to improve educational outcomes.

VAT on digital services

Lastly, the implementation of a 12% value-added tax (VAT) on digital services from global tech leaders like Amazon and Netflix marks a significant regulatory move to promote fair competition with local businesses. Enacted by President Ferdinand Marcos Jr., this tax is projected to generate approximately 105 billion pesos ($1.9 billion) from 2025 to 2029, with a portion designated for the support of creative industries. This legislation also underscores the shift in digital consumption patterns seen during the pandemic in Southeast Asia and addresses the tax disparity between foreign digital services and local enterprises, Investing.com reports.