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Tuesday, August 11, 2026 Vol. 21 No. 301
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LIVES UPENDED BY HABAGAT The enhanced southwest monsoon, or “habagat,” continues to bring heavy rains and widespread disruption across Luzon, leaving communities flooded, families struggling to rebuild and responders racing against time in search-and-retrieval operations. Floodwaters reach the Sto. Niño Parish Church in San Fernando, Pampanga, on Monday, August 10, as rains continue in the area. Churchgoer Efren Cruz said the area has endured 18 consecutive days of rain. In Talon Tres, Las Piñas, residents living beside a creek begin rebuilding after floodwaters destroyed most of their belongings. They recalled fleeing their homes as the waters rapidly rose, taking only their loved ones to safety, and are now seeking assistance from the local government. In Guisad Surong, Baguio City, response teams continue search, rescue and retrieval operations following a landslide. An Incident Command Post has been established at the site, while volunteer groups provide support to responders. Baguio City Mayor Benjamin Magalong said 13 people were involved in the incident, with six still missing. Seven have been recovered—three alive and four dead.
5-MONTH FDI INFLOWS DOWN 33.4% TO $2.178B
PHOTOS BY NONOY LACZA (PAMPANGA), NONIE REYES (LAS PIÑAS) & MAU VICTA (BAGUIO)
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By Andrea E. San Juan
HE amount of long-term investments flowing into the Philippines may remain “subdued” for the rest of the year as foreign investors see mixed signals in the country’s policy execution, infrastructure rollout, and power costs. Analysts pointed this out after the Bangko Sentral ng Pilipinas (BSP) released the data showing Foreign Direct Investment (FDI) net inflows plunged to $2.178 billion in the January to May 2026 period, down 33.4 percent from the $3.27 billion in the five-month period in 2025. In May 2026 alone, data from the
central bank pointed out that the Philippines only secured $210 million in investments from foreign countries—the lowest in 11 years and two months or since March 2015 when the FDI inflows amounted to $200 million. Year-on-year, the $210 million net FDI inflows in May was 64.7
ARSI’S ASSURANCE: ‘PROGRESS’ BILL WILL BE FISCALLY NEUTRAL By Justine Xyrah Garcia
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MID concerns that the proposed tax relief package could stoke inflation, the government has assured the public that it would seek to make the measure “as fiscally neutral as possible.” Department of Economy, Planning, and Development (DepDev) Secretary Arsenio M. Balisacan explained that the proposed comprehensive tax reform package, dubbed the “Progress Bill,” could only add to inflationary pressures if the increase in purchasing power is not accompanied by measures to expand the supply of goods and services.
“We will look for offsetting revenue measures because there will be foregone revenues as a result of that. That will be part of the measures to make it as fiscally neutral as possible,” Balisacan told reporters in a recent interview. Balisacan said the government is also working to strengthen the supply side of the economy by improving competitiveness and productive capacity, particularly by addressing bottlenecks in agriculture, logistics and energy. Under the Promoting Growth, Revenue, Equity toward Socio-economic Sustainability (Progress) Bill, individuals earning no more than P350,000 annually would be See “‘Progress,’” A2
See “FDI,” A2
Slow Q2 growth eases pressure for rate hike
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HE slower growth rate of the Philippine economy in the second quarter has reduced the pressure for the central bank to raise the key interest rate, its governor said Monday. Following the release of the second quarter gross domestic product (GDP) data last August 7, the governor of the Bangko Sentral ng Pilipinas (BSP) was asked if the pressure to hike rates was reduced. BSP Governor Eli M. Remolona Jr. replied to reporters, “Yes.” Prior to his affirmation, however, the central bank governor explained
the balancing act that the BSP—the institution whose primary goal is to keep prices stable—has to consider, against the backdrop of subdued economic activity. “We’re focused mainly on inflation but we also consider the output gap,” Remolona said. Normally, he said inflation weighs heavily on the central bank’s monetary policy decisions given its price stability mandate. However, Remolona emphasized: “Growth is implied by the inflation mandate. If you can maintain price stability, that
tends to sustain growth.” In the short run, however, the BSP governor said, “Sometimes there are problems with growth. And we take that into account. We don’t ignore that.” Last Friday, the Philippine Statistics Authority (PSA) reported that the growth of the Philippine economy in the second quarter slowed to 2.3 percent from the 2.8 percent in the first quarter. The latest reading was the slowest since the first quarter of 2021, when the economy contracted by 3.8 percent. Excluding the pandemic period,
it was the weakest growth recorded since the fourth quarter of 2009, when gross domestic product (GDP) expanded by 1.8 percent. Two days before the release of the growth print or last Wednesday, the PSA reported that headline inflation eased to 6.2 percent in July from 6.4 percent in June. The latest reading extended the downtrend from the 7.2-percent peak in April. Inflation eased to 6.8 percent in May and 6.4 percent in June, bringing the year-to-date average to 5 percent. See “Growth,” A14
Seipi eyes bigger role for Pax Silica in LEC By Bless Aubrey Ogerio
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HE Semiconductor and Electronics Industries in the Philippines Foundation Inc. (Seipi) wants Pax Silica to serve as the manufacturing anchor of the Luzon Economic Corridor (LEC), helping the country move beyond its traditional role in semiconductor assembly and testing.
In a position paper on the initiative, Seipi said Pax Silica should be developed as an integrated manufacturing ecosystem that brings together advanced manufacturing, research and development, logistics, digital infrastructure and supporting industries rather than operate as another standalone industrial estate. See “Seipi,” A2
CELEBRATING FIVE DECADES OF MEMORIES, MILESTONES, AND MEANINGFUL SERVICE.
For half a century, Eternal Gardens has remained a symbol of trust and compassion, creating lasting places of remembrance while helping Filipino families honor the lives of their loved ones.
Congratulations! from
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ALSO INSIDE THIS ISSUE: SPECIAL 50TH ANNIVERSARY SUPPLEMENT » PAGES A6–A11
PESO EXCHANGE RATES n US 60.9680 n JAPAN 0.3867 n UK 82.3190 n HK 7.7721 n CHINA 9.0382 n SINGAPORE 47.7058 n AUSTRALIA 43.0495 n EU 70.4973 n KOREA 0.0433 n SAUDI ARABIA 16.2386 Source: BSP (August 10, 2026)