PHILIPPINES Trends and Developments Contributed by: Valeriano Del Rosario, Maria Francesca V Bautista and Celestine Jeanne M Generillo, VeraLaw
The Magna Carta hopes to be a win-win scenario as this law will now assist in striking a balance between the needs and demands of both the seafarers and their employers. The law will assist in further produc - ing world-class seafarers, while the improved labour regime brought about by it will push the manning industry into an upward trend. Support for Foreign Investments In 2013, the Philippines liberalised foreign investments in various industries through the amendment of the Public Service Act. Previously, the shipping industry was limited to only Philippine-owned corporations, with a maximum foreign equity of only 40%. With the government’s goal of providing “efficient, reliable and affordable basic services to all”, as well as revitalising the country’s economy damaged by the COVID-19 pandemic, it felt the need to increase and diversify investment sources. The Philippine shipping industry was among those removed from the classification of “public utility”, which is still limited to Filipino con - trolled corporations (60% Filipino equity). Thus, with the amendment of the law, restrictions on foreign own - ership in the domestic shipping sector were modified. So long as a corporation, though 100% foreign- owned, is registered with the Securities and Exchange Commission and obtains accreditation as a domestic shipping company or a maritime enterprise, it can par - ticipate in the industry. In fact, to further encourage investments from both the domestic and foreign sec - tors, MARINA has made efforts to improve its services through streamlining and digitalisation of application processes. While foreign entities have not fully capital - ised on this privilege, the foundation has been set for its immediate use ( “Foreign shipping firms interested, but in no rush to enter PH”, Roumina Pablo, 1 March 2024). Future Trends and Threats The Philippines’ economy has been experiencing robust growth, and with that growth, the country has a voracious appetite for power. The Philippines’ econ - omy continues to grow, but at a more sluggish pace as the world comes to terms with the Trump tariffs. The Philippines – a US treaty ally – was not exempted, and is subject to a 19% tariff on exports to the USA
(Chynna Grace Ong, “Tit for tat: How PH deals with Trump tariffs”, The Manila Times, 4 January 2026). To power economic growth, the Philippines contin - ues to rely on coal-fired power plants. According to the International Energy Agency (IEA), in its annual coal report, the Philippines’ consumption of coal likely grew by 5% to 42 million tons in 2024 from 40 million tons in 2023. The IEA said: “power generation primar - ily drives coal consumption with most coal imported from Indonesia”. The IEA projects that, based on the Philippines’ growth rate, in the next three years the Philippines will reach 47 million tons. “Coal-fired power plants are typically regarded as the cheapest among the scheduled based load generation facilities that can operate continuously and provide consistent power to meet the base demand of the grid” (Brix Lelis, “Philippines soaring power demand triggers rise in coal use”, The Philippine Star Global, 5 Jan 2025). The Indonesian archipelago lies due south of the Phil - ippines in the southern hemisphere, and numerous tugs and barges ferry their coal cargo from the Indo - nesian mining ports and pass through the Sulu Sea to reach their destination in the Philippines. The shortest route will take the tug and barge array through the Sulu Sea, and there are ecologically sensitive areas along their route such as the Tubathaha Reef Nation - al Park. When tugs and barges need to seek shelter, they will head for smaller islands that have shallow waters with extensive fields of sea grass that feed marine mammals such as sea cows. One such island is Cagayancillo in the Sulu Sea, which was the site of a casualty known to the firm. The traditional typhoon warnings that existed during the 20th century – such as the severity of typhoons based on a number system and the location of the typhoon within the grid known as the Philippine Area of Responsibility – no longer provide a good guide. The typhoons have become stronger and their outer bands’ circumferences have become much wider. A recent example was the oil spill from the motor tanker Terranova , mentioned above. Typhoon Gaemi was already well north of the Philippines and outside the Philippines Area of Responsibility when she was cleared by the Coast Guard to sail, but she experi -
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