THE Makati Business Club (MBC) on Wednesday supported the government’s declaration of a national energy emergency which recognizes the country’s vulnerability to external supply shocks and volatile global oil markets.
Executive Order 110, signed by President Ferdinand Marcos Jr. last week, authorizes a unified package covering livelihoods, industry, food and transport. The national energy emergency measure was prompted by the Iran war, which has disrupted supply chains and triggered oil price shocks, posing a threat to the country’s energy security.
“The declaration can help mobilize resources, streamline responses and bring into sharper focus long-standing structural issues in the country’s energy sector. [It] should serve as a catalyst for deeper reforms that strengthen not only the country’s energy security but also other aspects of the economy, such as transportation, logistics, agriculture and manufacturing, among others,” the business group said in a statement.
However, it opposed the proposed suspension of fuel excise taxes.
“Given the limited fiscal space of the government, we believe that the suspension of excise taxes on fuel will further erode the government’s ability to provide the short-term targeted assistance needed while other medium- and long-term projects are being implemented,” MBC said.
Instead, the group made some recommendations.
“This crisis should force the country to hasten planned infrastructure programs such as cold storage facilities, port upgrades, etc., to bring down the cost of agricultural products. There is a need to utilize innovation and technology for a more efficient economy, e.g., utilizing empty returning trucks to backhaul other goods, resulting in almost halving the transportation cost,” the group said.
Ongpin resigns
Meanwhile, MBC announced the resignation of its executive director Rafael “Apa” Ongpin, who assumed the position only on Jan. 1, 2025.
“His leadership supported MBC’s efforts in advancing its mission and strengthening engagement with members and partners on key business and economic issues,” the group said in a statement.
Ongpin’s resignation is effective April 30. MBC has appointed its deputy executive director Michelle Dee as officer in charge, while the MBC secretariat continues its regular work and scheduled programs.
Before joining MBC, Ongpin worked in media including ABS-CBN, and then at Transnational Diversified Group, PhilWeb Corp. and Alphaland Corp.
FPI supports ‘buy local’ thrust
Also on Wednesday, Federation of Philippine Industries (FPI) chairman Elizabeth Lee said the country must strengthen its industrial capacity to withstand external shocks.
“Today’s environment is a preview of what lies ahead. External shocks — from foreign exchange volatility to supply chain disruptions — are becoming more frequent and more complex. Without deliberate action to build resilience, their impact will continue to deepen across industries and the broader economy. These structural realities require a coordinated and equally structural response,” Lee said in a statement.
She noted that global disruptions have created a window to advance a more sustained “buy local” agenda. Realizing this opportunity, however, will depend on systemic reforms and stronger industrial capacity, Lee said.
The Tatak Pinoy Act, which FPI supported, provides a clearer framework for upgrading local industries and moving up the value chain, while the government has signaled greater emphasis on local sourcing in procurement, Lee said.
Signed into law by President Ferdinand Marcos Jr. on Feb. 26, 2024, Republic Act 11981, or the Tatak Pinoy Act, seeks to enhance diversity, sophistication and complexity of Philippine products and services to foster global competitiveness.
While the Government Procurement Reform Act has strengthened transparency, competition and value-for-money principles, its current framework — still largely anchored on price-based evaluation — presents an opportunity for further alignment with industrial development goals, Lee said.
“By more deliberately integrating domestic value creation into procurement decisions, government spending can serve as a stronger engine for resilience and growth. Procurement can help build supply chain stability, industrial capability and long-term competitiveness,” Lee noted.
The law standardizes, modernizes and regulates how Philippine government agencies purchase goods, infrastructure and consulting services. It promotes transparency, accountability and efficiency, primarily through competitive public bidding and digital systems.
Lee suggested reforms to strengthen the country’s local industry participation:
– Anchor demand through government procurement by maximizing existing local preference mechanisms and integrating domestic value considerations.
– Translate Tatak Pinoy into sector-specific roadmaps with clear local content strategies.
– Address structural cost constraints, particularly in energy and logistics, while improving infrastructure.
– Strengthen enforcement of standards and intensify efforts against smuggling and unfair competition.
– Encourage private sector local sourcing, and deepen small and medium enterprise integration into domestic supply chains.