Richard Javad Heydarian is a Manila-based academic, columnist and author
September 25, 2022
"In the face of great diversity, we believe that partnerships form the bridge to unite all of us in promoting peace and stability in the Asia-Pacific region," Filipino President Ferdinand Marcos Jr declared in his first speech before the UN General Assembly.
In his first global address, Mr Marcos Jr called on the international community to work towards "transcending our differences and committing to end war, uphold justice, respect human rights and maintain international peace and security".
By touching on common global concerns, from climate change to weapons of mass destruction and disruptive technological innovations, he projected global leadership. It also allowed him to shun more controversial issues, including the ongoing conflict in Ukraine, maritime disputes in the South China Sea, as well as the rights and corruption record of his own family.
Exactly 50 years after Ferdinand Marcos Sr established a dictatorship in the Philippines, his namesake son is seeking to open a new chapter in the family’s, as well as the country’s, relations with the outside world. Barely three months into office, he has signalled his commitment to a dynamic foreign policy that enhances the Philippines’ regional leadership, and pursues fruitful and balanced relations with all major powers, especially the US and China.
To this end, Mr Macros Jr chose Indonesia and Singapore, fellow South-East Asian countries, as his first foreign visits, while simultaneously wooing investments from and trade with both the US and China. In a number of ways, the Filipino leader is following in the footsteps of his father, who actively pursued warm relations with fellow developing nations as well as competing superpowers.
At the dawn of the post-colonial era, when western empires disintegrated in face of anti-colonial struggles from Africa to India, the Philippines occupied a distinctly challenging position.
On one hand, it was a staunch military ally of the US, which colonised the Philippines in the opening decades of the 20th century. Meanwhile, Filipino nationalists sought to enhance the country’s strategic autonomy and build bridges with other post-colonial nations in Asia. Chief among them was Carlos Romulo, a Pulitzer Prize-winning writer, Second World War hero and the first Asian president of the UN General Assembly, who would soon become the Philippines’ longest-running foreign secretary.
Ferdinand Marcos was president of the Philippines from December 1965 to February 1986. AFP
Former US president Richard Nixon speaks with Marcos during his visit to the White House on April 1, 1969. Getty Images
Marcos sits with his wife, Imelda, and their children, from left, Bongbong, Iren and Immee in Manila in November 1969. AP
Marcos is interviewed on March 11, 1985, by Georges Biannic, Agence France Presse regional director for Asia and the Pacific, at Malacanang Palace in Manila. AFP
Marcos salutes during the 84th anniversary of the foundation of the Philippine Constabulary in Manila on August 25, 1985. AFP
Marcos and his wife, Imelda, appear before about 35,000 college students undergoing two-year compulsory military training in Manila on November 15, 1985. AFP
Marcos speaks to journalists during his campaign in his home province of Ilocos Norte on December 17, 1985. Reuters
Marcos takes the oath of office on February 24, 1986, in Manila while his wife looks on. AFP
Marcos, Imelda and Ferdinand Marcos Jr, far right, stand on the balcony of Malacanang Palace on February 25, 1986, right after Marcos took the oath of office. AP
Ferdinand Marcos Jr, also known as 'Bongbong', autographs a portrait of his father during a campaign rally in Manila on May 5, 1995. AFP
The Bandung Conference in 1955, which gathered leaders of newly independent nations from all the major continents, proved a decisive moment in the Philippines’ emerging foreign policy. There, Romulo crossed swords with leading post-colonial leaders, most notably India’s Jawaharlal Nehru, who zeroed in on mobilising global co-operation against new forms of western imperialism. In contrast, the Filipino diplomat was “opposed to every form of domination, subjugation, or the exploitation of peoples", including from the communist bloc nations, most notably the Soviet Union.
Drawing from his Korean War experience, which saw the Korean Peninsula torn asunder by rival superpowers, Romulo foresaw China’s border wars with India as well as the Soviet intervention in Afghanistan. Decades after their spirited debate, Nehru reportedly told his Filipino colleague: “Gen Romulo, how right you were at Bandung. And how wrong was I.”
Ferdinand Marcos Sr, who would become the longest-serving Filipino president, would largely embrace Romulo’s foreign policy vision. While the Philippines maintained its treaty alliance with the US, it also cultivated ties with post-colonial states across Asia, Africa and Latin America as well as with Maoist China, the Soviet Union, and members of the Warsaw Pact in Eastern Europe.
Crucially, the Philippines also became among the founding members of the Association of South-East Asian Nations. This allowed Marcos Sr to project himself as one of Asia’s grand statesmen and a paramount leader in the region. By adopting a multi-vector foreign policy, Marcos Sr enhanced both his personal as well as the Philippines' strategic room for manoeuvre.
Half-a-century later, his son embarked on a similar mission just months into office. Mr Marcos Jr chose Indonesia and Singapore, two pillars of Asean integration in recent decades, as his first foreign destinations. In both Jakarta and Singapore, Mr Marcos Jr secured various agreements for enhanced defence and strategic collaboration.
To boost post-pandemic recovery at home, the Filipino president also bagged close to $14 billion in investment pledges from the two key South-East Asian countries. Along with his Singaporean and Indonesia counterparts, Mr Marcos Jr projected regional leadership by emphasising his commitment to jointly uphold a rules-based order in the region.
In many ways, Indonesia and Singapore, two nations that have deftly managed bilateral relations with competing superpowers throughout the decades, also serve as role models for Mr Marcos Jr. Vowing to pursue an “independent” foreign policy, he has, unlike most of his predecessors, refused to choose between either the US or China.
Instead, Mr Marcos Jr has welcomed expanded co-operation with both superpowers, while making his red lines crystal clear. With respect to Beijing, he has taken an uncompromising stance on the maritime disputes in the South China Sea. He also suspended a number of Chinese infrastructure projects due to concerns over high interest rates and insufficient financing.
With Washington, Mr Marcos Jr has made it clear that he wants a mutually beneficial and equitable relationship based on trade rather than aid.
Having clarified the boundaries of bilateral relations with the two superpowers, the Filipino leader held cordial meetings with multiple top officials from both countries over the past three months.
During his meeting with US Secretary of State Antony Blinken in August, he praised the “constant evolution” in bilateral relations. Upon visiting New York ahead of his UN speech, Mr Marcos Jr wooed American private investments by touting the Philippines’ new investor-friendly legislation as well as a booming middle class, which represents a major consumer market and offers a high-quality labour force.
The Filipino coast guard during a maritime drill in the disputed South China Sea. EPA
Mr Marcos Jr emphasised how “truly grateful” he is to American investors, who have been the backbone of his country's $30bn BPO industry. At the same time, it’s China that represents a major potential source for public infrastructure investments.
In terms of economic recovery, Mr Marcos Jr has described China as the Philippines’ “strongest partner”. Despite mounting public debt, Manila is determined to press ahead with a huge infrastructure project for the foreseeable future. The bulk of former president Rodrigo Duterte’s $160bn-$180bn “build, build, build” infrastructure projects are yet to be finalised.
Thanks to periods of economic protectionism at home, the future of America’s trade and investment policy in Asia is still uncertain. So far, the Biden administration’s Indo-Pacific Economic Framework is largely an expression of Washington’s intent to expand its economic footprint in the region rather than a concrete policy.
In contrast, China’s established global expertise in public infrastructure development, and its Belt and Road Initiative, would be crucial to the attainment of Mr Marcos Jr’s economic goals. Last month, the Philippines and China relaunched bilateral trade and investment negotiations in order to expedite joint infrastructure projects. On its part, Beijing has promised to help “achieve more tangible fruits” amid generally warm bilateral relations in recent years.
Just months into office, Mr Marcos Jr has demonstrated his commitment to ushering in a new era of stability and dynamism in Philippine foreign policy. Whether he sustains his initial momentum is far from certain. But what’s clear is that for the first time in recent memory, after wild swings in its foreign policy, the Philippines finally enjoys warm relations with both US and China.
2. End hunger, achieve food security and improved nutrition and promote sustainable agriculture
3. Ensure healthy lives and promote well-being for all at all ages
4. Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all
5. Achieve gender equality and empower all women and girls
6. Ensure availability and sustainable management of water and sanitation for all
7. Ensure access to affordable, reliable, sustainable and modern energy for all
8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
9. Build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation
10. Reduce inequality within and among countries
11. Make cities and human settlements inclusive, safe, resilient and sustainable
12. Ensure sustainable consumption and production patterns
13. Take urgent action to combat climate change and its effects
14. Conserve and sustainably use the oceans, seas and marine resources for sustainable development
15. Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss
16. Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
17. Strengthen the means of implementation and revitalise the global partnership for sustainable development
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
Results
5pm: Al Maha Stables – Maiden (PA) Dh80,000 (Turf) 1,600m; Winner: Reem Baynounah, Fernando Jara (jockey), Mohamed Daggash (trainer)
5.30pm: Wathba Stallions Cup – Maiden (PA) Dh70,000 (T) 1,600m; Winner: AF Afham, Tadhg O’Shea, Ernst Oertel
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
Captain Marvel
Director: Anna Boden, Ryan Fleck
Starring: Brie Larson, Samuel L Jackson, Jude Law, Ben Mendelsohn
4/5 stars
Defence review at a glance
• Increase defence spending to 2.5% of GDP by 2027 but given “turbulent times it may be necessary to go faster”
• Prioritise a shift towards working with AI and autonomous systems
• Invest in the resilience of military space systems.
• Number of active reserves should be increased by 20%
• More F-35 fighter jets required in the next decade
• New “hybrid Navy” with AUKUS submarines and autonomous vessels
What sanctions would be reimposed?
Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:
An arms embargo
A ban on uranium enrichment and reprocessing
A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
A targeted global asset freeze and travel ban on Iranian individuals and entities
Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer