CAPS and Partners Inc.

Strengthening Science-Based Harm Reduction for a Healthier Philippines

The conversation on to***co harm reduction continues to evolve, and CAPS & Partners, Inc. remains committed to contributing evidence-driven perspectives that support smarter public-health policy.

In a previous engagement at the Harm Reduction & Ni****ne Summit, our CEO Michael Eric Castillo joined health experts, consumer groups, and industry leaders in pushing for a regulatory environment grounded in science, compassion, and practical public-health outcomes.

Mr. Castillo emphasized a critical point that remains even more relevant today: complex tax structures and inconsistent enforcement create opportunities for smuggling and unregulated products—undermining public health and pushing Filipino consumers toward unsafe markets.

As illicit trade continues to rise, the call for rational and science-aligned policy becomes increasingly urgent.

CAPS & Partners continues to stand with partners in advocating for accessible, regulated, and safer alternatives for adult smokers. We support measures that empower consumers with accurate information, improve enforcement against illicit trade, and align taxation with genuine public-health objectives.

The goal: a Philippines where informed choices, innovation, and strong regulatory systems work together to protect lives and strengthen national health outcomes.

Health Experts, Consumer Advocates Join Forces to Strengthen Calls to Protect To***co Harm Reduction as Pillar of Public Health - SDN - Science & Digital News Medical experts and consumer advocates banded together to call for step up harm reduction initiatives in the Philippines at the “Harm Reduction & Ni****ne Summit” on October 15. Short link:…

📣 Blue Economy Policy Forum

🌊 Looking back to when our CEO, Michael Eric Castillo, helped advance the national conversation on the Philippines’ blue economy.

During the Science Policy and Information Forum on the Philippine Blue Economy organized by the National Academy of Science and Technology (NAST Philippines), Michael served as a key discussant and policy resource speaker—sharing crucial insights on how sustainable maritime development can lift coastal communities and drive inclusive growth.

He underscored that “if we are going to make a dent in poverty reduction, the locus of policy implementation should be at the coastal community.”

In his presentation, Castillo highlighted the gaps in implementing the National Marine Policy, and proposed strategic measures such as:

⚓ Establishing a National Marine Research Agenda (NMRA);
⚓ Developing a National Maritime Industry Development Agenda; and
⚓ Exploring the creation of a Department of Marine Affairs to better integrate policy, development, and regulation.

Castillo emphasized that most of the country’s poorest communities live along the coast, making it essential for poverty reduction strategies to focus on coastal areas. He also proposed developing a National Marine Research Agenda and a National Maritime Industry Development Plan to guide long-term policymaking for sustainable ocean-based industries.

The discussions reaffirmed a central idea: inclusive development for an archipelagic nation begins with responsible stewardship of its seas.

Policies crucial in blue economy development – NAST PHL National Academy of Science and Technology

✈️ Michael Eric Castillo, CEO of Caps and Partners, delivered a compelling lecture on the evolving landscape of aviation careers during the 3rd Philippine Aviation Summit held recently in Pasay City. His talk, titled “Emerging Skills: What the Future Aviation Workforce Must Learn,” shed light on the rapidly changing demands of the aviation industry and the need for a future-ready workforce.

Castillo emphasized that traditional skills are no longer sufficient in today’s fast-evolving aviation sector. “The aviation professionals of tomorrow must be more tech-savvy, environmentally conscious, and adaptable than ever before,” he stated. “These emerging skills are not optional—they are the keys to thriving in a new era of aviation.” 🚀

In his lecture, Castillo identified seven critical competencies shaping the future of aviation careers:

1. 🧠 Digital Literacy and AI Competency – Proficiency in AI tools, data analytics, and automation systems is foundational, enabling workers to manage intelligent systems like predictive maintenance and AI-assisted flight control.

2. 🌱 Sustainability and Green Technology Expertise – Knowledge of sustainable aviation fuels (SAF), electric propulsion, and emissions management is crucial as the industry shifts toward environmentally responsible operations.

3. ⚡ Electric and Hybrid Aircraft Technical Skills – The rise of electric and hybrid aircraft demands specialized training in battery systems, electric powertrains, and next-generation propulsion technologies.

4. 🛫 Urban Air Mobility and eVTOL Integration – Professionals must be prepared to manage vertiports, integrate eVTOLs into urban settings, and comply with new airspace regulations.

5. 🛡️ Cybersecurity Awareness – With digital infrastructure becoming more integral, cybersecurity competence is essential to protect aircraft systems, passenger data, and operational integrity.

6. 📚 Adaptability and Continuous Learning – The fast pace of innovation requires a growth mindset and the use of emerging training tools like VR, AR, and AI-assisted platforms.

7. 🤝 Human Factors in Automated Environments – Even in highly automated systems, human interaction remains vital. Strong communication, customer service, and human-machine collaboration skills are needed to ensure safety and efficiency.

Castillo’s insights resonated strongly with the summit’s goal of aligning workforce development with the needs of a rapidly modernizing aviation industry. His presentation called for stakeholders—government, private sector, and academic institutions—to prioritize upskilling and reskilling programs that prepare Filipino aviation professionals for the demands of the future. 🇵🇭

The Philippine Aviation Summit gathered key figures from across the aviation sector to discuss industry trends, regulatory developments, and innovation-driven strategies to advance the country’s role in global aviation. 🌍✈️

✈️ The future of aviation is here.

Michael Eric Castillo, CEO of CAPS and Partners, shared key insights on the evolving landscape of aviation jobs during the 3rd Philippine Aviation Summit held at the Marriott Grand Ballroom in Pasay City.

In his lecture on “The Future of Aviation Jobs: Understanding Workforce Demand and Emerging Skills,” he outlined six major trends shaping the industry:

1️⃣ Global recovery and market growth
2️⃣ Expansion of maintenance, repair, and overhaul (MRO)
3️⃣ Sustainability and green aviation
4️⃣ Advanced air mobility (eVTOLs and urban air transport)
5️⃣ Technological advancements and digital transformation
6️⃣ AI-augmented flight and air traffic management

Castillo highlighted the urgent need for reskilling, digital literacy, and workforce adaptation to meet the demands of this fast-changing industry.

📢 The fight against illicit trade is also a fight for better governance.

CAPS and Partners President & CEO Michael Eric Castillo delivered a strong message at the 8th Senate Tax Study and Research Office (STSRO) Tax Forum, highlighting how weak enforcement and poor policy alignment are allowing illicit trade to thrive in the Philippines.

Citing the 2025 Illicit Trade Index, Castillo revealed that the country placed 5th among ASEAN nations, with a score of 31.2 — far below the global average. He emphasized the need for realistic, data-driven tax policies and stronger governance to close dangerous gaps.

“When tax rates rise faster than enforcement systems can adapt, we open the door to smuggling, counterfeiting, and tax evasion,” Castillo warned.

“Kabalo ka sa “budget insertions”?

Mao ni ang mga dugang o kausaban nga ginabuhat sa mga senador o kongresista sa proposed national budget nga gihatag sa Presidente. Legal ni siya basta mosunod lang sa balaod ug mga proseso nga gi-set sa gobyerno.

Kasagaran, mahitabo ni siya panahon sa budget deliberations sa Kongreso, kung asa gihisgotan ug gi-review ang National Expenditure Program (NEP). Ang NEP kay mao ni ang draft budget nga gihimo sa Presidente.

Kinsa ang naay katungod mag-insert ug budget?
Ang Kongreso, kay sila man ang gitawag nga may “power of the purse” — sila ang mo-decide kung asa gamiton ang kwarta sa gobyerno. Pero, dili pud sila pwede magbuot lang basta-basta. Naay mga balaod ug constitutional limits para masiguro nga transparent, accountable, ug dili abusado ang paggasto.

Mga Balaod ug Regulasyon nga Nagkontrol sa Budget Insertions:

1. 1987 Constitution sa Pilipinas
- Kinahanglan magsugod sa House of Representatives ang tanang appropriation bills.
- Dili pwede nga gamiton ang budget para sa kaugalingong benepisyo sa mga mambabalaod (self-serving).
- Kinahanglan sundon ang prinsipyo sa transparency (kaliwanagan), equity (katarungan), ug accountability (pananagutan).

2. Revised Budget Act (Republic Act No. 9926)
- Ang mga proposal sa budget kinahanglan base sa functions, activities, ug projects (FAPs) nga klaro ang gusto makab-ot.
- Dili pwede ma-insert ang project kung wala pa ni gi-aprubahan sa department nga mo-implement ani.
- Ug bisan ma-aprubahan na ang GAA (General Appropriations Act), ang Presidente gihapon ang mo-decide kung i-release ba ang pondo para sa inserted items.

3. Congressional Insertions Transparency Act (Senate Bill No. 2623)
- Nag-demand ni nga dapat i-disclose tanan detalye sa insertions: asa gamiton, pila ang amount, ug unsay tuyo.
- Kinahanglan ipublish ni sa newspaper ug website sa Senado ug House.
- Bawal ang double appropriation (duha ka budget para sa usa ra ka project), ug self-serving nga mga insertions.
- Kung dili klaro ang insertion o wala ma-disclose tarong, mahimo kining i-declare nga walay bisa.

Asa ug Kanus-a Mahitabo ang Budget Insertions?
Mahitabo ni kasagaran sa:
- Budget hearings sa House ug Senate (ilabi na sa Appropriations Committee).
- Bicameral Conference Committee, kung asa gi-merge ang duha ka versions sa budget (gikan sa House ug Senate).

Ang Problema kung Walay Sakto nga Pagplano
Kung maghimo ug insertions nga walay feasibility study o klarong plano, posible nga dili ma-implement ang project. Sayang lang ang pondo.
Mao nga kinahanglan:
- Moagi gihapon sa standard na proseso — procurement, evaluation, ug monitoring.
- Tanang inserted items subject gihapon sa rules sa DBM (Department of Budget and Management) ug COA (Commission on Audit).

Checks and Balances
Bisan pa ang Kongreso ang mo-approve sa budget, ang Presidente gihapon ang naay final say.
- Pwede niya i-veto ang specific items sa budget (apil na ang insertions).
- Ug maski naa na sa GAA, ang pondo dili gihapon i-release kung dili siya mouyon.
Kini nga kapangyarihan sa Presidente nagservisyo isip check-and-balance aron malikayan ang pang-abuso.

Okay ra ang budget insertions, basta:
- Transparent (klaro ang detalye),
- Dili self-serving,
- Naay plano,
- Uyon sa national goals, ug
- Kontrolado gihapon sa Executive Branch.

Ang tumong ani tanan: masiguro nga ang kwarta sa gobyerno magamit sa tarong, dili masayang, ug makahatag ug tinuod nga serbisyo sa katawhan.

🚨 Illicit trade is rising fast in the Philippines.

At the 8th STSRO Tax Forum, CAPS and Partners Inc. CEO Michael Eric Castillo revealed alarming numbers: illicit cigarette market share jumped from 5.4% in 2020 to 16.4% in 2024.

He called for smarter, data-driven tax policies—warning that when sin taxes rise faster than enforcement can adapt, we fuel smuggling, counterfeiting, and tax evasion.

🔑 Key solutions:
✅ Recalibrate tax design
✅ Stronger enforcement & border control
✅ Consumer education
✅ Transparency & anti-corruption reforms

Madalas nating naririnig ang salitang “budget insertion” tuwing pinag-uusapan ang pambansang badyet, pero ano nga ba talaga ito?
Tuwing taon, nagsusumite ang Pangulo ng panukalang badyet sa Kongreso. Ito ang tinatawag na National Expenditure Program (NEP). Sa madaling salita, ito ang plano ng gobyerno kung saan gagastusin ang pera ng bayan. Pagkatapos, dumadaan ito sa deliberasyon o pag-uusap sa Kongreso—dito pumapasok ang budget insertion.

Ang budget insertion ay ang mga pagbabago o dagdag sa orihinal na panukalang badyet na ginagawa ng mga miyembro ng Kongreso. Halimbawa, puwedeng magdagdag si Congressman o si Senator ng proyekto para sa kanyang distrito—tulad ng kalsada, paaralan, o health center—na wala sa orihinal na panukala ng Pangulo.
Legal ba ang budget insertion?

Oo, ligal ito. Bahagi ito ng kapangyarihan ng Kongreso pagdating sa paggawa ng badyet. Pero may mga batas at alituntunin na kailangang sundin para masigurong maayos at makatarungan ang paggamit ng pondo.

Ayon sa Revised Budget Act (Republic Act No. 9926), lahat ng paggastos ng gobyerno ay dapat nakaayon sa malinaw na layunin, proyekto, at inaasahang resulta. Bago isalang sa Kongreso, kailangang aprubado ng mga ahensya ng gobyerno ang kanilang panukalang badyet.

Kadalasan, ang mga budget insertion ay nangyayari sa mga pagdinig sa House at Senate Appropriations Committees, at sa bicameral conference committee kung saan pinagtutugma ang mga bersyon ng badyet ng dalawang kapulungan.

Bakit nagkakaroon ng problema at kontrobersya sa Budget Insertion?
Kapag ang mga insertion ay ginawa nang walang sapat na konsultasyon o pag-aaral, nagkakaroon ng mga proyektong hilaw, mahirap ipatupad, o hindi tugma sa pangangailangan ng mga tao. Kaya mahalaga ang maayos na pagpaplano at pakikipag-ugnayan sa mga ahensiya ng gobyerno.

Pagkatapos maipasa ang badyet bilang General Appropriations Act (GAA), may kapangyarihan pa rin ang Pangulo na aprubahan o harangin ang pagpapalabas ng pondo para sa ilang inserted projects. Ito ang paraan ng Executive Branch para tiyaking ang mga proyektong ito ay nararapat, handa, at kapaki-pakinabang.

Sa huli, ang batas ay nagbibigay-diin sa transparency (kaliwanagan) at accountability (pananagutan). Lahat ng budget insertions ay kailangang sumunod sa tamang proseso—mula sa pag-apruba, hanggang sa paglalabas at paggamit ng pondo.

Michael Eric Castillo, president and CEO of local think tank CAPS and Partners Inc. (CAPS), said illicit trade threatens maritime security in Southeast Asia.

“Enforcement agencies in Indonesia, Malaysia, Thailand, and the Philippines must strengthen collaboration by sharing intelligence and coordinating responses to identify suspicious activities and block the entry of illicit goods,” said Castillo, who is a former undersecretary and deputy director general for operations of the National Security Council.

Strengthen cross-border cooperation to fight illicit trade, experts urge - Journal News Online fight

CAPS and Partners Inc. has formally submitted the Philippine Infrastructure Development Transparency and Accountability Act of 2025 to Congress.

The bill aims to end ghost projects, strengthen public trust, and ensure that every peso for infrastructure—especially flood control—translates into real, high-quality projects.

It introduces reforms such as open and competitive bidding, real-time public monitoring, milestone-based fund releases, whistleblower protections, and active citizen participation in oversight.

This is a step toward transparent, accountable, and resilient infrastructure that truly serves the Filipino people.

Michael Eric Castillo, former undersecretary and deputy director general for operations of the National Security Council and currently president and CEO of the think tank CAPS and Partners Inc. (CAPS), said illicit trade poses a threat to maritime security in Southeast Asia.

“Enforcement agencies in Indonesia, Malaysia, Thailand and the Philippines should work together, share information and coordinate response to detect suspicious activities and prevent the entry of illicit goods,” Castillo said.

Illicit trade poses threat to Southeast Asian maritime security: experts MANILA, Philippines — International policy experts are calling for tougher cross-border controls to stop the flow of illicit goods which poses a threat to Southeast Asian maritime