8% growth unlikely, but PBBM touts reforms B S P. M @sam_medenilla
T WALK OF FAITH Colorful sagalas take part in the Santacruzan procession in Barangay San Jose,
Santo Tomas, Batangas, marking the culmination of the month-long Flores de Mayo celebration in late May. The annual religious and cultural tradition honors the Blessed Virgin Mary and commemorates Queen Elena’s search for the True Cross. ROY DOMINGO
ROTARY CLUB OF MANILA JOURNALISM AWARDS
2006 National Newspaper of the Year 2011 National Newspaper of the Year 2013 Business Newspaper of the Year 2017 Business Newspaper of the Year 2019 Business Newspaper of the Year 2021 Pro Patria Award PHILIPPINE STATISTICS AUTHORITY 2018 Data Champion
HE economic shocks caused by the prolonged Middle East crisis have now rendered the 8 percent Gross Domestic Product (GDP) by 2028, unlikely, but the government is still in fighting mode for its current growth targets through the reforms initiated by his administration, according to President Ferdinand Marcos Jr. However, the chief executive said the reforms are at risk of being reversed by Vice President Sara Duterte if she wins in her presidential bid in the 2028 polls. Marcos issued the statement in
an exclusive interview with Bloomberg Television last week, where he changed his stance last March that an 8 percent GDP was still possible. “That’s a tough number to get to,” he said, citing the government is still dealing with the effects of the Middle East conflict, which disrupted global supply chains and resulted in a surge in oil prices. “We were hoping to get to 7 percent by this time. I think we could have managed it, except for these shocks that are coming in,” he added.
Reset relations with China
CONCERNED over the possible public unrest which can result
from high pump prices and other basic necessities, Marcos said the government continued to provide subsidies to target sectors so that “the end consumer feels the rise in fuel prices as little as possible.” He said he is also considering “resetting” relations with China to initiate gas resources in disputed areas in the South China Sea to help reduce the Philippines’s dependence on imported petroleum products. “I think it’s certainly going to happen. I don’t think that it’s like an option. It’s happening now. There’s going to be a very, very serious restructuring,” Marcos said. “That’s something that we’ve
been talking about for a great deal. But the territorial disputes will get in the way of that. Maybe this [Middle East crisis] will provide impetus for both sides to come to an agreement. That’s something that we are, of course, exploring,” he added. Before the tensions in the Middle East started, the Marcos administration had already lowered its projected GDP target to 5 to 6 percent this year, from 6 to 7 percent. GDP in the first quarter was at a mere 2.8 percent, which Marcos attributed to low state spending as S “G,” A
BusinessMirror
EJAP JOURNALISM AWARDS
BUSINESS NEWS SOURCE OF THE YEAR
(2017, 2018, 2019, 2020)
DEPARTMENT OF SCIENCE AND TECHNOLOGY
2018 BANTOG MEDIA AWARDS
A broader look at today’s business
BSP, BANKS: INFLATION IN MAY COULD HIT 7.9% www.businessmirror.com.ph
T
B A E. S J
■
Monday, June 1, 2026 Vol. 21 No. 230
P. | | 7 DAYS A WEEK
@andreasanjuan
HE central bank, alongside bank economists in the Philippines, expect inflation to quicken to as fast as 7.9 percent in May, the highest rate in 39 months or in 3 years and 3 months, on the back of higher prices of rice and other major food items.
In a statement sent over the weekend, the Bangko Sentral ng Pilipinas (BSP) said it projects May 2026 inflation to settle within the range of 7.1 to 7.9 percent. The central bank said upside price pressures were driven by rising prices for rice, vegetables, and meat, as well as the depreciation of the peso. According to the BSP, the recent rollbacks in domestic fuel prices, lower prices of fish, and slightly lower electricity rates “partially offset” the prevailing upside price pressures.
Economists’ May ’26 inflation forecast
WHILE one bank economist’s forecast went be-
yond the central bank’s forecast range, majority of the experts aligned with the BSP’s projection. Meanwhile, one bank economist sees inflation holding steady in May due to lower prices of diesel, kerosene, among others. Emilio S. Neri Jr., Lead Economist of the Bank of the Philippine Islands (BPI), said the universal bank’s “point estimate” is 8.3 percent. The BPI’s lead economist explained that despite the fall in pump prices, increases in rice and other major food items “were more than able to outweigh it.” As such, Neri said: “BSP will likely hike forcefully in their June 18 meeting and might S “I,” A
MOST FILIPINOS PREFER TO BE THEIR OWN BOSS–STUDY B B A O
T
@blessogerio
HE Philippines has emerged among the world’s most entrepreneurial-minded countries, ranking sixth out of 28 nations in a global survey that found a strong preference among Filipinos for self-employment over traditional work arrangements. A new study by Remitly Business showed that 83 percent of respondents in the Philippines said they would rather work for themselves than be employed by someone else. The Philippines’s ranking places it among a group of countries with high levels of entrepreneurial aspiration, led globally by Kenya (98 percent), South Africa (92.7 percent), and Morocco (90.7 percent).
Across all surveyed markets, 74.6 percent of respondents said they would prefer to be their own boss, underscoring a broad global shift in attitudes toward work and independence. According to Remitly Business vice president and general manager Ankur Tiwari, the findings highlight a widening gap between entrepreneurial ambition and actual readiness to start a business. “Many people are drawn to the independence and flexibility that entrepreneurship can offer, but ongoing financial uncertainty is making it harder to make the leap,” Tiwari said. The survey, which covered more than 5,000 respondents across 28 countries, found
ECONOMIC CHILL Ayala Avenue in the Makati City central business district reflects a more cautious corporate outlook as business confidence fell to -35.8 percent in April, marking a second consecutive monthly
decline based on the Bangko Sentral ng Pilipinas Business Expectations Survey; the weaker sentiment points to growing concerns over persistent inflation, elevated operating and financing costs, and geopolitical tensions in the Middle East that continue to raise risks of oil price volatility and supply chain disruptions, prompting firms to scale back expansion plans amid an uncertain economic environment. NONIE REYES
‘RCEF seed plan must have hybrid seeds’ B A P
S “F,” A
@adapelonia
L
OCAL firm TAO Foods Company Inc. (TFCI) urged the government to include hybrid rice seeds in the Rice Competitiveness Enhancement Fund’s (RCEF) seed program, citing yields of up to 12 metric tons (MT) per hectare. With the Congress currently deliberating on the proposed RICE Act, which is yet another amendment to the Rice Tariffication Law (RTL), TFCI called for the inclusion of hybrid rice seeds in the seed component’s allocation. The law earmarks P6 billion to the RCEF seed program, which
stipulates the distribution and promotion of inbred seeds to farmers. Under the local firm’s Rice-toRise (R2R) program, which engages farmers in planting hybrid seeds, yields average 8 MT, up to a high of 12 MT per hectare. The national average yield stands at 4MT per hectare. TFCI, a subsidiary of Tao Corporation, produces and distributes local hybrid rice seeds licensed from the International Rice Research Institute (IRRI) and Central Luzon State University. “There have been efforts to discuss with legislators about [including hybrid seeds in the RCEF]. Unfortunately, nothing has come from it,” TFCI President Laura
Love Guevara told the BM. Meanwhile, the local firm also pointed out that 90 percent of government-procured hybrid seeds were imported, citing potential biosecurity issues. Tao Corporation President Julio D. Sy Jr. attributed this to the lack of incentives for local seed producers. “Sometimes even local companies that are in seed production, they find it cheaper to have it produced outside and then just import their seeds,” Sy told this newspaper. He added that the Philippines, being more susceptible to weatherrelated shocks, poses greater risks
in producing seeds locally than in other countries. “There’s a possible biosecurity issue, and then it can also affect the seed quality’s resilience. It’s proven that those grown locally are more adaptable to local conditions,” Sy said. He cited instances when standing crops from seeds produced abroad lodged or fell over after a shear line, which affected yield. With this, the local firm urged the government to support the development of local hybrid rice seed production. “Encourage more investments in local hybrid rice seed production, which is vital in achieving rice security.”
PESO EXCHANGE RATES US 61.6540 ■ JAPAN 0.3872 ■ UK 82.9061 ■ HK 7.8703 ■ SINGAPORE 48.3447 ■ AUSTRALIA 44.1566 ■ SAUDI ARABIA 16.4297 ■ EU 71.8392 ■ KOREA 0.0412 ■ CHINA 9.0998 Source: BSP (May 29, 2026)