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IRAN WAR DRIVES MORE ‘HOT MONEY’ OUT OF PHL www.businessmirror.com.ph
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Friday, June 5, 2026 Vol. 21 No. 234
P25.00 nationwide | 2 sections 20 pages | 7 DAYS A WEEK
By Andrea E. San Juan
ORE short-term foreign investments exited the Philippine market as “hot money” outflows nearly doubled while inflows contracted sharply due to geopolitical tensions and flaring inflation. Latest data from the Bangko Sentral ng Pilipinas (BSP) showed net outflows reached $1.6 billion in April 2026 as total outflows surged by 89.63 percent to $3.11 billion from the $1.64 billion in the same month a year ago. Meanwhile, short-term foreign capital which entered the country in April contracted by 39.6
percent to $1.51 billion from the $2.5 billion in the same period last year. Ruben Carlo Asuncion, chief economist at Union Bank of the Philippines (UBP) said the April data highlight a “clear shift toward risk aversion among foreign investors, driven largely by global See “War,” A2
WORLD BANK: SINGLE-DIGIT POVERTY NOT LIKELY BY 2028 By Justine Xyrah Garcia
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HE Marcos administration is likely to miss its goal of reducing poverty to single-digit levels by 2028, with the World Bank warning that millions of Filipinos remain caught between escaping poverty and attaining the economic security needed to join the middle class. Reducing poverty is one of President Ferdinand R. Marcos Jr.’s key social commitments, with the government aiming to bring the poverty incidence rate down to 9 percent and eradicate hunger before the end of his term. But the Washington-based lender projects poverty incidence to settle at 12.3 percent by 2028, well above the administration’s target despite an improvement from
the 15.5-percent rate recorded in 2023. “It will be above the goal. As of this moment, we’re not projecting poverty in single digits by 2028 and that’s following just what we’ve seen so far,” said World Bank Senior Economist Liliana Sousa at a briefing on Thursday. The bank’s assessment reinforces earlier warnings from economists that the government faces an increasingly difficult path toward achieving its poverty target, as repeated shortfalls in economic growth could weaken job creation and income growth—two key drivers of poverty reduction. (See: https://businessmirror.com. ph/2026/05/12/uphill-climb-to-reachpoverty-goal-by-2028/). See “Poverty,” A2
SAFETY IN NUMBERS Bike enthusiasts gather at the Quezon City Department of Public Order and Safety–Green Transport Division at the launch of the city’s “Bike Bus” program on Thursday, June 4, 2026. The initiative organizes cyclists—particularly workers and daily commuters—into groups that travel together along designated routes and schedules, creating a visible and safer presence on the road through a collective “human shield” in traffic. The program forms part of Quezon City’s efforts to promote active mobility, road safety, and sustainable transportation. NONOY LACZA
PHL industries: What’s basis for new US tariff? By Bless Aubrey Ogerio
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SECURING SUBSEA POWER INFRASTRUCTURE Power transmission network operator National Grid Corporation of the Philippines (NGCP) and the Philippine Coast Guard (PCG) signed a Memorandum of Agreement at the PCG National Headquarters to strengthen security, resilience, and emergency response for critical subsea energy infrastructure, including submarine cables and fiber optic networks vital to national power delivery. The agreement, signed by NGCP President and CEO Anthony L. Almeda and PCG Commandant Admiral Ronnie Gil L. Gavan, reinforces coordination in safeguarding maritime assets and enhancing disaster response, with the PCG designated as a first responder to related incidents. Story in A4 Economy, “PCG to secure power grid facilities.” NGCP PHOTO
HILIPPINE exporters questioned the basis for a proposed United States tariff targeting economies accused of failing to curb the entry of goods produced through forced labor, saying local manufacturers already comply with strict labor regulations and warning that the measure could further erode their competitiveness in the American market. The concern arose after the United States Trade Representative (USTR) proposed imposing additional tariffs from 10 to 12.5 percent on imports from 60 economies,
including the Philippines, following an investigation into the failure of trading partners to prohibit and effectively prevent the entry of goods produced through forced labor. The USTR said it found that the acts, policies and practices of the economies under review were unreasonable and burdened or restricted US commerce, making them subject to action under Section 301 of the US Trade Act of 1974. It is accepting public comments before making a final decision. “The failure of our most important trading partners to address the importation of goods made with
SAMPAGUITA FESTIVAL A6-A7
AMID CHANGING TIMES, SAN PEDRO KEEPS THE SPIRIT OF SAMPAGUITA ALIVE
See “US tariff,” A2
PESO EXCHANGE RATES n US 61.7260 n JAPAN 0.3858 n UK 82.8425 n HK 7.8773 n CHINA 9.1051 n SINGAPORE 48.1257 n AUSTRALIA 43.9983 n EU 71.6022 n KOREA 0.0403 n SAUDI ARABIA 16.4436 Source: BSP (June 4, 2026)