UMIC’s price: Tough fiscal hurdle By Justine Xyrah Garcia
B PASSING THE GAVEL Newly elected officers and members of the board of directors of the Rotary Club of Manila (RCM) pose for a commemorative photo after Manila Mayor Isko Moreno administered their oath during the organization's installation ceremonies at the Rizal Monument in Luneta on Thursday, July 2, 2026. The event began with a wreath-laying ceremony honoring national hero Dr. Jose Rizal, followed by the induction of the trustees and officers of the Rotary Club of Manila Foundation Inc. and the formal turnover of the club presidency from outgoing RCM President Raoul Creencia to incoming President Reginald Yu. ROY DOMINGO
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EIJING, China—THE Philippines’s transition to the upper middle income country (UMIC) category may be a celebratory feat, but economists cautioned that the milestone also ushers in tougher fiscal challenges as access to concessional development financing wanes. On Wednesday evening, the World Bank announced that Manila had finally clinched the long-awaited UMIC status after posting a gross national income (GNI) per capita of $4,850 in 2025, exceeding the $4,636 threshold for upper middle-income economies. The reclassification comes 39 years in the making, with the Philippines having remained in the lower middle income category since 1987.
While the new status is expected to bolster the country’s standing among investors, economists said it also signals a gradual shift away from concessional financing that has long supported the government’s development agenda. De La Salle University (DLSU) economist Maria Ella C. Oplas said the Philippines will increasingly have to rely on market-based financing, commercial borrowing, and domestic capital markets to bankroll its projects as access to concessional funding narrows. “Concessional loans with below-market interest rates and long repayment periods from multilateral development institutions may become less available over time,” Oplas told the BusinessMirror. The shift reflects the World Bank’s lending framework. Lower-income countries have greater access to concessional financing
through the International Development Association (IDA), while higher-income borrowers tap the International Bank for Reconstruction and Development (IBRD), whose loans generally carry higher borrowing costs and less concessional repayment terms. Former Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa C. Guinigundo said the tightening in concessional financing would likely extend beyond the World Bank to other multilateral development institutions. “The concessional loans that we have been getting may not be as forthcoming as before,” he said. Beyond financing, Ateneo de Manila University (ADMU) economist Leonardo A. Lanzona noted that the Philippines could also eventually lose access to certain preferential tariff arrangements, as well as See “Fiscal,” A2
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END-MAY NG DEBT HITS NEW HIGH OF ₱18.546T www.businessmirror.com.ph
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Friday, July 3, 2026 Vol. 21 No. 262
P25.00 nationwide | 2 sections 20 pages | 7 DAYS A WEEK
By Reine Juvierre S. Alberto @reine_alberto
UTSTANDING debt held by the national government climbed to a fresh record high of P18.546 trillion as of end-May, as it continued raising funds to support its budget needs amid the Middle East crisis.
The debt stock grew by 9.62 percent from P16.918 trillion in the same period a year ago, according to data released by the Bureau of the Treasury on Thursday. Compared with the previous month’s level, outstanding debt
was up by 0.41 percent from P18.470 trillion as of end-April. Despite the ongoing Middle East crisis, the government proceeded with its domestic borrowings and issued securities to finance its See “Debt,” A2
AMID RECORD-HIGH PAY HIKE, BSP EXPECTED TO BE HAWKISH By Andrea E. San Juan
C
OST-OF-LIVING pressure in Metro Manila which has triggered a new record-high wage hike will prompt the Bangko Sentral ng Pilipinas (BSP) to be hawkish, as it prioritizes price stability with regional wage boards expected to follow suit in raising labor costs. “Monetary policy will probably stay its course; it will be hawkish expecting copycat wage orders; the wage increase in Metro Manila might be fol-
lowed sooner than later by other regional wage boards,” former Socioeconomic Planning Secretary Dante B. Canlas told the BusinessMirror in a Viber message Wednesday night. In a separate message, Ateneo De Manila University (ADMU) economist Leonardo A. Lanzona Jr. told this newspaper that the “competing” effects of the P85 increase in the daily minimum wage for workers in Metro Manila “complicates” the BSP’s inflation fight and easing-cycle calculus. See “BSP,” A2
LEADING THE CHARGE Makati City has switched 11 of its largest government facilities—including City Hall, the University of Makati and Ospital ng Makati—to 100-percent renewable energy, marking a major milestone in Mayor Nancy Binay’s first year in office and advancing the city’s transition to cleaner power. The initiative, implemented through a renewable energy supply agreement with ACEN Corp., has enabled Makati to achieve nearly 61 percent of its 2026 clean energy target while reducing carbon emissions, lowering electricity costs and providing residents with real-time monitoring of the city’s renewable energy consumption through a public dashboard. City officials said more government facilities will join the program as Makati works toward fully renewable-powered public operations. Story in A8, News. MAKATI CITY INFORMATION AND COMMUNITY RELATIONS DEPARTMENT
DOT chief eyes leaner executive management By Ma. Stella F. Arnaldo Special to the BusinessMirror
T
HE reorganization of the Department of Tourism’s (DOT) key officials contin-
BANKING ON SEEDS Department of Agriculture Secretary Francisco P. Tiu Laurel Jr. and Bureau of Plant Industry Director Glenn Panganiban inspect the newly inaugurated National Seed Reserve Facility at the Bureau of Plant Industry compound in Quezon City on Thursday, July 2, 2026. The facility will serve as a long-term repository of high-quality seeds for regular crop production and post-disaster recovery, strengthening the country’s preparedness against climate-related disruptions and supporting the government’s broader food security agenda. Story on page A2. NONOY LACZA
ues. In her first personal inteview with the BusinessMirror, Acting Tourism Secretary Ma. Bernadita Angara-Mathay said, “I’m not yet done with the organizational structure [of the DOT]. About 15 percent [of the task] remains.” According to DOT Department Order No. 2026-0035 dated June 24, Angara-Mathay designated lawyer Ma. Victoria V. Jasmin as Undersecretary for Tourism Regulation, Coordination, and Resource Generation (TRCRG), a position earlier held by Shahlimar Hofer Tamano. Insiders said Tamano, who was DOT Regional Director for Central Visayas prior to 2022, will be des-
ignated Undersecretary for Special Concerns. “I will keep it to the original [in the law] that’s lean, three to four Undersecretaries that’s the maximum, then a number of assistant secretaries and directors. Keep it simple,” said Angara-Mathay. She also intends to bring in more “creatives” that can help in the promotions, and is looking to “fix” DOT attached agencies. She said what was most urgent was to get the right people in place to oversee the major priorities of the agency, and safeguard the agency’s funds. Two of the key personnel are “old hands”— Jasmin and content creator Ren Sapitan, who had worked under Tourism Secretary Ramon Jimenez Jr.—while another is a well-respected government budget officer, Ma. Dionesia A. Rivera Guillermo. (See, “Seasoned execs tapped for DOT posts,”
TOURISM Secretary Dita Angara-Mathay DOT
in the BusinessMirror, June 8, 2026.) As for the rest of the officials, Angara-Mathay said she submitted all their courtesy resignations to Malacañang, “and it’s up to them [Malacañang] what to do. I just told them what I needed and how many
[of the officials] I required.” The DOT chief also talks about her journey from trade to tourism, how she actually got posted to the agency, and her favorite destinations in the country. (The rest of the interview in “Something Like Life, page B4.)
PESO EXCHANGE RATES n US 61.6070 n JAPAN 0.3791 n UK 81.8018 n HK 7.8547 n CHINA 9.0759 n SINGAPORE 47.5657 n AUSTRALIA 42.4657 n EU 70.1211 n KOREA 0.0397 n SAUDI ARABIA 16.4067 Source: BSP (July 2, 2026)