President Ferdinand Marcos Jr. on Thursday told the Maritime Industry Authority to standardize its maritime procedures and harmonize them with international standards.
Marcos made the instruction as he vowed to focus on improving the well-being of Filipino seafarers as he announced the upcoming completion of the Maritime Industry Development Plan 2028 (MIDP).
“We are putting the final touches on the MIDP,” President Marcos said in a Facebook post.
“I want to emphasize that the plan prioritizes the welfare of our Filipino seafarers, who are vital assets to our economy and a source of pride for our nation,” he added.
The President highlighted the importance of safeguarding the rights and well-being of Filipino seafarers, who comprise a significant portion of the global maritime workforce. He emphasized the need for effective project implementation and international recognition of their qualifications.
Hence, Marcos met with MARINA chief Sonia Malaluan earlier this week to discuss the proposed MIDP 2028.
As Malaluan sought the President’s endorsement for this plan, he observed that numerous regulations and operations within the maritime sector are outdated, primarily because of the absence of a unified system overseeing the industry.
“These are all promotion and modernization, but let us standardize first our systems and at the same time, we undertake this like promotion of highly skilled Filipino maritime workforce. We haven’t done much to promote (shipbuilding and ship repair),” Marcos said.
“The rest are for further development. So, let’s standardize our practices so that we will be the same as our international counterparts. We have to fix our house first. Because we have to compete, and in order to do that, we should have an even playing field, and then we should gain an advantage,” Marcos added.
The President also examined the significant cost disparity in shipping within the country compared to international routes, where it is often more economical to ship goods from abroad, such as Hong Kong than domestically, like from Manila to General Santos City.
According to MARINA, several factors contribute to the relatively high cost of domestic shipping, including vessel size, the imposition of excise tax on fuel, and the quality of vessels. Vessels with international routes benefit from economies of scale due to their larger size, resulting in reduced travel costs and fares.
Concerning excise tax, ships traveling internationally are exempt from fuel excise tax, unlike domestic shipping in the Philippines, which incurs additional taxes on fuel.
Vessel quality is another issue, with the Philippines having an aging fleet, leading to inefficiencies. MARINA highlighted a lack of investor interest in the local shipping industry as a contributing factor.
MARINA emphasized the necessity of revising the current maritime policy, noting that the government still permits 20-year-old passenger ships and 25-year-old freight vessels to operate.
Marcos acknowledged the challenges highlighted by MARINA and stressed the need to standardize operations and practices in the maritime industry to implement effective programs.
“Let’s standardize and also prioritize in terms of the immediacy of some of these,” the President told the Marina official.
Established in June 1974, MARINA was created with the purpose of consolidating the development, promotion, and regulation of the Philippine maritime industry.
One of the agency’s key objectives is to spearhead a dynamic maritime administration committed to ensuring the safety and security of life and property at sea. Additionally, MARINA aims to safeguard the marine environment and enhance the global competitiveness of the Filipino maritime workforce.