Philippine seafaring industry helping economy hurdle uncertain economic times

Philippine seafaring industry helping economy hurdle uncertain economic times
Komfie Manalo November 19, 2025 https://thechronicle.com.ph/philippine-seafaring-industry-helping-econom...

Dr. Winston Padojinog, President of Center for Research and Communication, presenting the result of his study on the impact of the seafaring industry to the Philippine economy.
The Philippine seafaring sector remains one of the country’s strongest economic anchors, helping the nation navigate global uncertainty through the combined spending of foreign shipowners and the steady flow of remittances from Filipino crew. In 2024 alone, shipowners poured an estimated ₱54.3 billion into the local economy through pre-deployment expenses, while Filipino seafarers sent home ₱277.4 billion in wages.

Together, this generated ₱331.7 billion in direct economic activity and an impressive ₱1.06 trillion in total output, according to Center for Research and Communication President Dr. Winston Conrad B. Padojinog, DBA.

Padojinog stressed that the industry’s contribution is massive, accounting for about 4 percent of the country’s GDP and making it one of the Philippines’ single largest economic drivers. Beyond macro indicators, the sector generated ₱150.1 billion in household income and supported nearly 400,000 Filipino jobs, equivalent to 0.8 percent of national employment.

Shipowners’ pre-deployment spending alone—from training and medical exams to government fees, accommodations, uniforms, and other services—produced ₱54.3 billion in direct impact, ₱174.9 billion in total output, ₱43.7 billion in household income, and 116,155 jobs. Meanwhile, seafarers’ remittances, once spent on essentials such as food, housing, education, utilities, and transport, created ₱277.4 billion in direct impact, ₱888.4 billion in total economic activity, ₱106.4 billion in household income, and 282,684 jobs.

The numbers show a simple truth: every peso spent by shipowners and every peso remitted by a seafarer multiplies nearly threefold across the Philippine economy. As Padojinog explained, when a seafarer is hired and sends money home, and when shipowners spend on local services before deployment, the benefits ripple far beyond individual families. Entire communities feel the impact.

For this reason, strengthening the manning and seafaring sector is not merely a matter of labor deployment. Padojinog described it as a strategic economic policy, a vital engine that sustains livelihoods and supports national growth. But this engine faces threats. Regulatory uncertainty, inconsistent enforcement, and legal ambiguities risk undermining the very confidence that keeps shipowners contracting Filipino crew. Once that confidence is shaken, shipowners do not debate—they shift quietly to other countries.

To safeguard the sector’s trillion-peso contribution, Padojinog laid out several urgent reforms. He called for the creation of a Blue Check certification program to help identify ethical and compliant manning agencies, offering faster processing and reinforced foreign principal trust while isolating bad actors without penalizing the entire industry. He also pushed for a tiered penalty framework at the regulatory level, ensuring predictable rules where minor offenses prompt corrective action, repeat violations face targeted sanctions, and only the most serious proven cases result in full cancellation.

Padojinog urged the government to stand firm in defending reforms under the Magna Carta for Seafarers, warning that weakening EMSA compliance and anti–ambulance chasing provisions could damage international credibility and reduce hiring opportunities for Filipino crew. He also emphasized the need to overhaul voluntary arbitration at the NCMB by elevating evidence standards, ensuring consistent due process, and appointing arbitrators through the Office of the President for greater professionalism.

Modernizing tax administration was another priority, with recommendations for no-contact digital audits, clear and published rules, strict processing timelines, online tracking for Letters of Authority, and an independent panel for tax dispute resolution.

Padojinog concluded by underscoring that protecting the manning and seafaring industry means protecting jobs, safeguarding remittances, sustaining household spending, and defending a trillion-peso lifeline that stabilizes the Philippine economy. These reforms, he said, are essential to uphold global confidence, strengthen compliance, ensure fairness, and secure the Philippines’ place as the world’s leading provider of maritime talent.