‘Weak institutions may dim growth prospects’ By Andrea E. San Juan
P
SENATOR Jinggoy Estrada held a press conference at the Senate on Monday, June 1, 2026 before voluntarily surrendering to the CIDG in connection with the arrest warrant in the plunder case he faces at the Sandiganbayan. In photo, he is seen with Interior SEcretary Jonvic Remulla and Senate President Alan Peter Cayetano (partly hidden). Related stories on pages A3 and A12. 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
@andreasanjuan
OLITICAL instability could eventually affect the longterm economic viability of the Philippines, a former deputy governor of the Bangko Sentral ng Pilipinas (BSP) warned. Former BSP Deputy Governor Diwa Guinigundo raised this concern in a televised interview on Monday as he pointed out that there is a strong correlation between politics “and even the movement of the peso itself.” “When the Senate is perceived to be inconsistent with certain prin-
ciples of the Constitution, issues about credibility would actually crop up,” Guinigundo said. The former BSP official said credibility, as well as loss of confidence, are already weighing on investment decisions. “In terms of issues about governance, can the Philippines provide stability and long-term viability to investors? And therefore, in the process, investor sentiment is also affected, and therefore social cohesion is also affected,” added Guinigundo. As for the local currency, he said the political noise is also affecting financial markets.
“Well, three weeks ago when the Senate drama started, the peso was doing at about 60, 61 pesos [as against the US dollar]. And as the drama unfolds in the next two weeks, we saw the significant depreciation of the Philippine peso,” he said. “So, on that basis alone, we see the strong correlation between politics and even the movement of the peso itself. And you also see that in terms of the risks assigned to Philippine global bonds, and that is shown in the international capital markets,” he added. Still, Guinigundo said the recent situation that transpired in the up-
per chamber of the Philippines’s Legislative branch “is not exactly beyond repair.” “I think there are possible solutions for the Senate to be able to restore its credibility and it should do it fast,” Guinigundo said, adding, for instance, that the upper chamber “can always reaffirm constitutional independence.” “And we have yet to see that today or perhaps in the next few days in the way the Senate conducts itself. Number two is to ensure transparency in their leadership, transparency and consistency with established rules,” he added. See “Institutions,” A2
BusinessMirror A broader look at today’s business
EJAP JOURNALISM AWARDS
BUSINESS NEWS SOURCE OF THE YEAR
(2017, 2018, 2019, 2020, 2021) DEPARTMENT OF SCIENCE AND TECHNOLOGY
2018 BANTOG MEDIA AWARDS
PHL FACTORY OUTPUT RISES ON NEW ORDERS www.businessmirror.com.ph
n
Tuesday, June 2, 2026 Vol. 21 No. 231
P25.00 nationwide | 2 sections 20 pages | 7 DAYS A WEEK
BAYANIHAN BEFORE THE BELL As Brigada Eskwela 2026 runs from June 1 to June 5 ahead of the June 8 start of Term 1 under the theme “Bayanihan sa Paaralan: Nagkakaisa para sa Kaayusan at Kaalaman,” communities across Metro Manila mobilized in preparation for the new school year: faculty and staff of Parañaque Elementary School Unit II in San Dionisio cleaned and readied school premises, parents at Esteban Abada Elementary School in Project 7, Quezon City, worked together to refurbish classrooms, while in Ilaya, Divisoria, Manila, a grandfather was seen fitting a school uniform for his grandchild amid the bustling market known for affordable school needs, collectively reflecting the spirit of shared responsibility in getting learners ready for class. NONIE REYES & NONOY LACZA
T
By Ada Pelonia @adapelonia
HE Philippine manufacturing sector recovered in May as output rose due to new orders, but Standard & Poor’s (S&P) Global Market Intelligence warned of possible disruptions to supply chain caused by geopolitical tensions. The country’s Manufacturing Purchasing Managers’ Index (PMI) rose to 50.8 in May from 48.3 in April, rebounding above the 50-point threshold that separates expansion from contraction. S&P Global Market Intelligence economist Maryam Baluch, however, said the latest PMI data for the Filipino manufacturing sector
presented a mixed picture. “While manufacturers registered renewed growth in output and new orders, supply-chain disruption and cost pressures worsened as the Middle East conflict entered its third month. Both buying and hiring activity declined,” Baluch said. Despite this, she added that See “Orders,” A2
JAPAN FIRMS EXPLORE OVER $1.6B IN PHL TOURISM OPPORTUNITIES By Ma. Stella F. Arnaldo Special to the BusinessMirror
S
OME $1.64 billion (P100.86 billion) in tourism investment pledges and opportunities have been generated by the recent state visit of President Ferdinand R. Marcos Jr. in Japan. The Department of Tourism (DOT) said the investments and leads covered tourism-enabling infrastructure, digital connectivity, wellness and medical tourism, destination retail, mobility and transport support systems, and broader tourism
ecosystem development. Total investment pledges secured by Marcos Jr. during his visit reached $3.4 billion (P209.1 billion). Marcos Jr. was accompanied by Cabinet members including Tourism Secretary-designate Ma. Bernadita Angara-Mathay, who prior to her current appointment, was a member of the Department of Trade and Industry’s Foreign Trade Service Corps. For years she served as the Commercial Counselor at the Philippine Trade and Investment Center in Tokyo, and was See “Tourism,” A2
Adjusted goals basis of ’27 budget–Palace By Samuel P. Medenilla
M
@sam_medenilla
ALACAÑANG said “recalibrated” economic targets based on the impact of the Middle East crisis will be finalized in time for the crafting of the 2027 national budget. Quoting Department of Budget and Management (DBM) Acting Secretary Kim Robert C. De Leon, Palace Press Officer Claire Castro said the Development Budget Coordination Committee (DBCC) has started reviewing the said targets based on the latest developments on economic growth, inflation rates,
foreign exchange and oil prices. The DBCC held its last meeting last week. “The committee has agreed to further study the effects of these variables in the country’s fiscal position in the short- and mediumterm,” she said in a press briefing last Monday. “Recalibrated figures will be finalized to serve as input for the preparation of the 2027 budget,” she added. The House of Representatives usually starts its budget hearings for the succeeding year in August. President Ferdinand Marcos See “Goals,” A2
PESO EXCHANGE RATES n US 61.5010 n JAPAN 0.3860 n UK 82.7680 n HK 7.8478 n CHINA 9.0893 n SINGAPORE 48.1945 n AUSTRALIA 44.1331 n EU 71.7225 n KOREA 0.0408 n SAUDI ARABIA 16.3893 Source: BSP (June 1, 2026)