"The forces of the New Peoples Army (NPA) in the four regions (of North Luzon) have slightly increased and most of them are now concentrating on extortion activities," said Garcia.
The North Luzon Command covers the Ilocos, Cagayan, Cordillera and Central Luzon regions.
Garcia estimated that the NPAs armed guerrillas in the four regions have increased from about 1,200 to 1,300, 800 of whom are in Central Luzon.
Garcia, however, noted that the NPA has become almost "militarily inactive" in his area of jurisdiction.
"In Northern Luzon, we have very much lessened rebel activities compared to other regions, while in Central Luzon, the NPA has been checked militarily," he said.
Garcia, however, said the communist rebels seemed to be preoccupied with raising funds. "This is true particularly in Central Luzon where there are more highly urbanized areas with booming agri-businesses," he said.
He said the NPAs extortion activities target businessmen mostly engaged in fishponds, poultry, livestock and other agricultural enterprises.
Garcia cited intelligence reports that communist rebels also receive financial support from illegal gambling or jueteng lords in Pampanga, Tarlac, Nueva Ecija and Bulacan.
"We estimate that the rebels get from P2 million to as much as P5 million a year from their extortion activities," he said, adding that these are "very conservative" estimates.
Garcia said the NPAs rival communist group, the Rebolusyonaryong Hukbo ng Bayan (RHB), is also engaged in extortion, but it has only about 200 armed guerrillas, mostly in Central Luzon.