Palace bent on hiking infraspend to lift growth By Samuel P. Medenilla
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WORLD » A7
OIL TANKER TRANSITS HORMUZ VIA NEW ROUTE AFTER IRAN THREATENS ‘VIOLATORS’
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HE Marcos administration will double down on its strategy of increasing government spending in the second half of the year with hopes of boosting economic growth, which continues to slow down due to persistent economic effects of the Middle East crisis, unfinished infrastructure projects, and “political noise.” This will be on top of government efforts to generate more economic activity by bringing in more investments in the country. Citing the Department of Bud-
get and Management (DBM), Palace Press Officer Claire Castro said the government needs to continue spending to help the country achieve its growth targets. “Looking ahead, the government intends to pursue strategic, high-quality public investments supported by stronger project preparation, integrated infrastructure master planning and improved budget execution to sustain long-term growth,” she said in Filipino in a press briefing. Gross Domestic Product (GDP) slowed down to 2.8 percent during the first quarter of the year from 3 percent in the last quarter of 2025.
The Department of Economy, Planning, and Development (DEPDev) said the government downgraded for the second time its projected economic growth this year to 3.5 percent to 4.5 percent. The original growth target was 6 to 7 percent before it was revised to 5 to 6 percent by the Development Budget Coordination Committee (DBCC). This, even after the DBM released around P16.5 billion last March to help accelerate infrastructure spending and P43.18 billion for the programs of the Department of Social Welfare and Development (DSWD) in May.
DEPDev also reported that P125.2 billion was released to concerned agencies for their response to those affected by the Middle East conflict last April. President Ferdinand Marcos Jr. has ordered the removal of the P250-billion budget from the budget of the Department of Public Works and Highways (DPWH) this year for new flood control projects after he ordered a crackdown on anomalous public works. The investigation disrupted the construction of DPWH’s flood control projects, which underwent much stricter vetting. Earlier this See “Infraspend,” A2
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Friday, June 26, 2026 Vol. 21 No. 255
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By Reine Juvierre S. Alberto
HE national government swung back to a budget deficit in May, with the gap stretching by 37 percent, as non-tax revenues fell sharply despite improved tax collections. The budget hole widened to P198.5 billion in May from P145.2 billion in the same month last year, according to the latest data from the Bureau of the Treasury. According to Jonathan A. Ravelas, senior adviser at Reyes Tacandong & Co., the widening of the
deficit is more about the revenue mix rather than a deterioration in fundamentals. “This is less about fiscal slippage and more about timing and uneven inflows,” Ravelas told the BusinessMirror. See “Budget,” A2
STEEL CONTROVERSY NEEDS FULL SCRUTINY–BIZ GROUPS By Bless Aubrey Ogerio
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EADING business groups have urged authorities to conduct a comprehensive investigation into issues surrounding Philippine Sanjia Steel Corp., saying allegations involving regulatory compliance, product quality, environmental risks, and national security warrant full scrutiny and, if supported by evidence, appropriate legal action. In a joint statement on Thursday, the Federation of Philippine Industries, Global AI Council Philippines, Institute of Corporate Directors, Management Association of the Philippines, Philippine Chamber of Commerce and Industry, and Philippine Iron and Steel Institute said concerns raised
in connection with the company’s facility inside the Phividec Industrial Estate in Tagoloan, Misamis Oriental, extend beyond an ordinary enforcement case. The groups said what initially emerged as reported regulatory and labor violations has raised broader questions about oversight, governance, and compliance mechanisms that should be examined by the proper authorities. According to the joint statement, reports surrounding a recent government operation at the facility have raised concerns related to environmental compliance, worker safety, public health, product standards, and national security. See “Scrutiny,” A2
MUD, MEMORY, AND DEVOTION Catholic devotees covered in mud and dried banana leaves take part in the annual Mud People Festival in Bibiclat, Aliaga, Nueva Ecija, on the feast day of Saint John the Baptist on Wednesday, June 24, 2026. The tradition is rooted in a local wartime account that residents disguised themselves with mud and foliage to avoid detection by Japanese forces during World War II. Over the years, the ritual has evolved into a distinctive expression of faith, thanksgiving and community devotion honoring the patron saint. AP/AARON FAVILA
Cargo delays disrupt chip supply chain By Bless Aubrey Ogerio
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TOXIC TRADE UNDER FIRE Environmental advocates raise placards demanding an end to the alleged illegal importation of hazardous electronic waste from the United States through the Subic Bay Freeport during the launch of the Environmental Task Force Against Illegal E-Waste Imports to the Philippines (END E-Waste Imports) coalition on Thursday, June 25, 2026. The coalition is calling for stricter enforcement of environmental laws and international agreements governing the transboundary movement of hazardous waste, warning that improperly handled e-waste poses serious risks to public health and the environment. NONOY LACZA
ELAYS in clearing cargo shipments at the country’s main airport are beginning to affect semiconductor manufacturers and other industries that rely on time-sensitive imports, according to the Philippine Chamber of Commerce and Industry (PCCI). PCCI President Ferdinand Ferrer said cargo clearance performance has deteriorated in recent weeks, extending the time needed for shipments to move through the airport and disrupting supply chains dependent on air freight. “The clearance is going beyond
three days,” Ferrer told reporters on Thursday morning in Pasay City. He noted that in 2025, about 95 percent of airport shipments were cleared in less than three days, but the figure has since dropped to around 76 percent. According to Ferrer, who is also the EMS Group chief executive officer, the slowdown is particularly affecting the semiconductor industry, which relies heavily on imported wafers and other components transported by air. The Philippines is a major player in semiconductor assembly, testing and packaging, with imported wafers undergoing processing locally
before being shipped to overseas customers. Ferrer said delays in receiving these inputs could affect manufacturers’ ability to maintain the rapid turnaround times expected by global clients. “We import the wafers, then it goes here in the Philippines for assembly, test and packaging,” he said. “The commitments of a very quick turnaround are being affected.” Aside from semiconductor materials, Ferrer said other storage devices and critical electronic components are also encountering delays. He attributed the bottleneck primarily to warehouse capacity
constraints at the airport. According to Ferrer, airport authorities have already identified potential temporary storage areas, including facilities across from the airport’s existing cargo operations. Further, the PCCI chief said industry groups are currently coordinating with airport authorities and other concerned agencies to identify the specific causes of the congestion and implement corrective measures. “We’re working with the airport authorities on solutions,” he said. However, he declined to estimate the financial impact of the delays, noting that the issue only emerged See “Supply,” A2
PESO EXCHANGE RATES n US 61.5580 n JAPAN 0.3805 n UK 81.0780 n HK 7.8524 n CHINA 9.0404 n SINGAPORE 47.4692 n AUSTRALIA 42.4750 n EU 69.9299 n KOREA 0.0401 n SAUDI ARABIA 16.3967 Source: BSP (June 25, 2026)