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The Vicente Sotto Memorial Medical Center (VSMMC) is seeking a ?2.2-billion budget for 2027 to strengthen its services as an Apex hospital and expand its capacity to provide specialized medical care.

The proposed allocation will support priority projects, including the development of specialty centers that aim to give patients in Central Visayas access to advanced medical services without having to travel to Manila.

VSMMC chief Dr. Gerardo M. Aquino Jr. said the proposed budget represents an increase from the hospital’s nearly ?2-billion allocation for the current year.

He said the additional funding would help advance the hospital’s priority and pipeline projects as it works to fulfill its mandate as an Apex hospital.

Aside from providing general hospital services, VSMMC has been designated a Level 3 Apex hospital and tasked with establishing 17 specialty centers.

These include cancer, orthopedic and heart centers, which are among the facilities being developed to provide patients with more specialized treatment.

Aquino said ongoing construction projects within the hospital are part of preparations to strengthen its specialized medical services.

The expansion is expected to improve access to advanced treatment, particularly for patients who would otherwise have to seek specialized medical care outside Cebu.

“So these are all mandates sa amo so makakita mo naay mga construction diha because that is really in preparation nga ang Sotto, if you need kuan cardiac, no, you don’t have to go to Manila,” Aquino said.

The development of these centers is part of the hospital’s efforts to expand its services beyond general medical care and provide more specialized treatment locally.

Aquino also cited the government’s Zero Balance Billing (ZBB) program as a major source of financial assistance for patients admitted to the hospital.

Under the Department of Health (DOH) policy, qualified patients admitted to basic or ward accommodation in DOH hospitals are exempt from covered out-of-pocket hospital charges and professional fees.

The program aims to ensure that eligible patients can receive medical treatment without shouldering covered hospital expenses.

Aquino said the subsidy provided through the program has significantly helped the hospital support patients requiring medical care.

“Dako kaayo ang subsidy nga amo pong nakuha on the zero balance billing,” he said.

As a national government-owned hospital under the DOH, VSMMC follows the national budget preparation and approval process.

The hospital prepares its proposed annual operating and capital expenditures, which the DOH reviews and consolidates before submitting them to the Department of Budget and Management (DBM).

The DOH’s consolidated budget proposal is then incorporated into the National Expenditure Program (NEP), which the President submits to Congress for deliberation.

The House of Representatives and the Senate review the proposed spending plan and may introduce amendments before passing their respective versions. The two chambers then reconcile differences through a Bicameral Conference Committee.

The final budget measure is submitted to President Ferdinand “Bongbong” Marcos Jr. for approval. Upon signing, it becomes the General Appropriations Act (GAA).

Meanwhile, the proposed ?7.2-trillion national budget for 2027 secured approval from the House of Representatives on October 12, 2026. The proposed budget is now under Senate review, after which the two chambers will reconcile their respective versions before submitting the final measure to Malacañang for the President’s signature.

Simply electric.

Following his visit to the Philippines, basketball content creator Matt Kiatipis reveled on the environment the country showcased during his stay here.

Kiatipis, also known as MK, had several one-on-one games with local players in the country.

‘Every place is electric is nowadays, but I was very surprised by Asia. We have been to Singapore, Indonesia, Malaysia, and now the Philippines, all of them. Asia is just so passionate about basketball. They love it,’ said Kiatipis, who has more than 9 million followers on social media.

‘I was not expecting this many people to show up, this many people to be excited, this culture to be so deep; it is an amazing surprise. So much passion and so much skill,’ he continued.

Hundreds of people watched MK’s matches, which showcased the content creator’s brash on-court personality and aggressive style.

‘The Philippines, they love basketball, and I love basketball, but I got to love it as much as them.’

Joe Gomez de Liaño, who faced MK, said that such initiatives ‘offer an opportunity to bring basketball enthusiasts together and build stronger connections within the local basketball community.’

‘It was very nice putting the community together; it is good for the crowd they loved watching it. SportsPlus, keep continuing to grow and have more events. You guys are doing well, and for MK, keep up your vlogging. It is a hit everywhere in the world,’ said Gomez de Liaño.

There is another Chino Roces restaurant that has successfully cracked the coveted One Star list of Michelin Guide Philippines, and it is a restaurant that promises an experience of good food and good wine that draws influences from Peru.

Flow in Green Sun Hotel offers a tasting menu that in the words of its two young chefs, Kevin Uy and Gabriel ‘Gato’ Ong, is an ‘experience in itself.’ The other two restaurants along Chino Roces are Toyo Eatery and Inato.

Michelin describes its food as an extension of the chef’s globetrotting culinary journey who use ‘extensive use of local ingredients, creating varied textures and layered sauces to craft flavors that are innovative and harmonious. From forests to coastlines, the distinctive terroir of the Philippines is a treat both for the eye and the palate.’

‘We hope to take you on an adventure, on an experience like no other, but at the end of the day, we hope to give you an experience that’s really memorable, and really, according to what you’d like to have. We want to welcome you to our home because Flow is our home. And we’re there more than our actual home. So, welcome to our home. We’re here to feed you. We’re here to nurse you, and we’re here to make you happy. So, please come through,’ Ong said to a group of reporters during the interviews after the Michelin unveiling last Thursday, October 29, in Marriott Hotel.

Ong and Uy may seem young but they have been to the best kitchens in the world.

Uy spent five years in Peru training under Chef Virgilio Martinez and Pia Leon at Central, one of The World’s Best 50 Restaurants. He also spent time at the Basque Culinary Center in San Sebastian and did reasearch in the Andean mountains.

His record speaks for himself but Uy strikes as a chef with a knack for humor.

‘I’m still processing the fact that I am even wearing this jacket right now, mainly because it doesn’t fit me,’ he told the reporters, eliciting laughter.

He continued, ‘But honestly, the prestige and the honor that comes with this, I, I don’t know if it’s the same for you because you were the number one guy in back in school [referring to Ong], but when I was in school, I was not always the best student, but we always wanted to do things our way and we ended up reconnecting and I think what made, you know, apart from our team is the fact that we complemented each other perfectly. So that’s something that’s really important to us.’

Ong, meanwhile, worked at Two-star Alain Ducasse in Morpheus in City of Dreams in Macau and in Three-Star Amber at the Landmark Mandarin Oriental in Hong Kong.

The chefs take pride in their tasting menu, culled from years overseas, and their hardworking team. But apart from these, they underscore one aspect that defines dining at their restaurant.

‘I think apart from our team is the intentionality that we give to our dishes. We work with so many ofmany potters and artists to create an experience like no other. So that’s something that we’re very proud, proud of,’ Uy said.

Ong added, ‘We’re very excited for everyone to try our cocktail pairing, our wine pairing. It’s a full experience. The food is there, but the beverage brings it full circle – everything, the design of the restaurant, full of intention. It’s all for our guests.’

Filipinos are observing Undas on November 1 and 2 as families visit cemeteries and memorial parks to remember their departed loved ones.

Cemeteries across the country are expected to draw large crowds as Filipinos observe All Saints’ Day and All Souls’ Day. Authorities are also monitoring traffic and the movement of travelers heading to their home provinces for the holidays.

Bookmark this live blog for real-time updates on Undas 2026, including cemetery developments, crowd conditions, road closures and traffic advisories.

Halfway through the -ber months but as Zara Larsson said, summer isn’t over yet.

The Swedish pop star returned to the Philippines for her first solo concert, bringing her ‘Midnight Sun’ tour to the Araneta Coliseum last October 30.

Dubbed the “Queen of Summer,” Larsson danced to local classic “Bongga Ka Day!” backstage before facing her fans, exciting everyone ahead of the show.

She then let the Filipino crowd experience a never-ending midnight sun as she performed the tour’s titular song.

Beyond the music and performances, Larsson also shared her ambitions and expressed hopes of returning to the Philippines for a stadium show.

“My ambition is the reason why I’m here today in Manila, on a sold-out show. But the ambition is a blessing and a curse ’cause you always want more,” she told the audience. “Next time when I come back, I want to be in a stadium. I have a lot of ambition and you should too ’cause you can do anything.”

The singer also took a moment to reflect on how far she had come in her music career before performing “Saturn’s Return,” which she described as one of her favorite songs she has ever written.

“I’ve been doing this for a very long time. I released my first song when I was 15 and now I’m 28, and this right here, this is my dream,” Larsson shared. “You guys are making my dream come true. So thank you so, so much.”

The Filipino crowd also finally got to experience “Lush Life” as Larsson invited a fan named Louise onstage to dance and perform the song’s iconic choreography.

Louise then revealed that they had taught the singer the word “bakla,” the Tagalog word for “gay,” during her South Korea stop in early October. They also asked the pop star to write the word on a custom T-shirt.

“I love that. I love bakla… I will be nothing without my baklas,” Larsson – a vocal ally of the queer community – exclaimed, drawing loud screams from the crowd.

The interaction did not end there, as the singer offered Louise a chance to drink from her personal tumbler, making the fan experience even more memorable.

Larsson also treated attendees to a mix of nostalgic hits and newer collaborations. Among the songs on the setlist were “I Would Like,” “Ain’t My Fault,” “Ruin My Life,” and “Symphony,” as well as “She Did It Again” and “Stateside.”

The artist closed the show with another performance of “Midnight Sun,” with fans joining the “dolphin lift” trend – one of her concert traditions in which attendees lift one another into the air, recreating the song’s choreography.

The singer first performed in the country at the “In the Mix” music festival in 2017 at the Mall of Asia Arena, alongside other international artists including Dua Lipa and 5 Seconds of Summer.

The “Midnight Sun” tour marks the singer’s fifth concert tour, which kicked off in Germany a year ago. The pop star will next head to Thailand for the final stop of the tour’s Asia leg.

It’s the spookiest time of the year once more!

Filipinos love a good scare, especially inside a dark theater accompanied by friends. In fact even sharing screams with a person you don’t know can feel like a good release whenever a frightening moment pops up onscreen.

This Halloween season gathers a number of scary and horror-adjacent movies in cinemas in the days leading up to October 31. Philstar.com lists some of them here:

Sine Sindak

SM Cinemas bring back its special series of horror films where tickets to screenings cost only P100.

Movies for this edition at participating cinemas include:

“App the Horror”

“Cerita Lila”

“Crawlers”

“The Influencer Project”

“Never After Dark”

“Phi Phong: The Blood Demon”

“VHS: Viva Horror Stories”

Thrill Fest: Zombie Outbreak

Ayala Cinemas also stages its own line of curated Halloween films revolving around projects with zombies in them. Tickets here will cost P150 per screening.

Selected by the cinema chain are:

“Colony”

“My Daughter is a Zombie”

“This Is Not a Test”

“Train 2 Busan: Peninsula”

“Train to Busan” (extended)

“We Bury the Dead”

Horrorkada Film Fest

Select cinemas under Robinsons Movieworld will screen classic horror films for just P250 (P200 in other participating theaters).

Making up the list here are:

“The Sixth Sense

“The Silence of the Lambs”

“The People Under the Stairs”

Fear Factory

Megaworld Cinemas meanwhile has its own horror film festival where a single pass costs P200, but a ticket to see all five films is P500.

These are the films to choose from:

“Maligno”

“Invisible Half”

“V/H/S Halloween”

“The Legend”

“Madeline’s Curse”

“Clayface”

DC Studios’ newest franchise entry is about the titular Batman villain capable of transforming his apperance into any individual or weapon.

Tom Rhys Harries plays Matt Hagen, a rising actor who gets on the wrong side of a powerful Gotham mob boss, resulting his face getting disfigured and his stardom practically finished.

He desperately approaches doctor Caitlyn Corr (Naomi Ackie) willing to volunteer as a human test subject for her nanite treatment capable of healing damaged tissue and nerves.

The treatment begins well but when things go awry, Hagen injects himself with more nanites which on the surface heals him from any injury, but in reality also gives him the ability to alter his physical and vocal appearance.

Revenge seeps into the fallen actor’s mind against all who turned on him, risking the trust of an engaged Corr who he finds himself falling for.

“Clayface” is R-18 and will only be available in select theaters. Viewer discretion is advised.

“Whalefall”

Daniel Kraus’ book about a man attempting to escape the stomach of a sperm whale is adapted for the big screen by Brian Duffield.

Jay Gardiner (Austin Abrams) goes diving in the ocean to search for the remains of his estranged father Mitt (Josh Brolin), a year after the latter’s death.

The underwater search turns sideways – or rather goes even deeper – when Jay witnesses a giant squid fighting a sperm whale and in the encounter gets swallowed by the cacholot.

With limited oxygen literally left in the tank, Jay tries to escape the whale’s belly before getting digested while dealing with memories of Mitt.

“Other Mommy”

Jessica Chastain stars in Rob Savage’s adaptation of Josh Malerman’s 2024 novel “Incidents Around the House.”

The Oscar winner plays a mother who does everything to protect her seven-year-old daughter from a supernatural entity that looks just like her.

Jay Duplass, Dichen Lachman, Arian Moayed, Karen Allen and Arabella Olivia Clark also star.

“Resident Evil”

Zach Cregger breathes life into the live-action adaptation of the popular video game series after a number of failed attempts.

Austin Abrams plays a medical courier who comes across a zombie outbreak while making his way to Raccoon City.

Zach Cherry, Kali Reis, Paul Walter Hauser, Will Merrick, Karel Dobry and Jo Martin also star.

“Verity”

Anne Hathaway is in a roll in 2026 with her fifth film of the year, an adaptation of Coleen Hoover’s novel of the same name.

Dakota Johnson is a ghostwriter for the titular best-selling author played by Hathaway and the former finds Verity’s notes, which lead to a potential conspiracy.

Josh Hartnett, Ismael Cruz Córdova, Brady Wagner and Irina Dvorovenko also star

“Red Crown”

Beauty queens and established actors come together in “Red Crown,” where winning the competition may mean survival.

25 contestants compete in the silver anniversary of the Queen of the Islands pageant where the contest takes a dark turn.

Among those in the cast are Sanya Lopez, Shuvee Etrata, Michelle Marquez Dee, Ahtisa Manalo, AZ Martinez, Ashley Ortega, Gazini Ganados, MJ Lastimosa, Herlene Budol, Faith da Silva, Ara Arida, Yana Aduana, Tarah Valencia and Alethea Ambrosio.

“The Fisher”

Paul Soriano’s new movie sees Mon Confiado play a fisherman who must decide the fate of a stranger he discovered lost at sea.

The said individual is a suspect in the fisherman’s teen daughter getting pregnant as well as a fish-rotting plague in the community.

Enchong Dee, Mercedes Cabral, Heaven Peralejo, Eula Valdez, Apollo Abraham and Buboy Villar also star.

“Pee Mak”

Wilbert Ross and Bea Binene star in the Philippine adaptation of the Thailand’s highest-grossing movie of all time that featured Mario Maurer and Davika Joorne.

Ross’ Mak returns to his village from a war with four of his soldier friends, eager to meet his wife and newborn child, but find everyone terrified of a ghost among them.

Vandolph Quizon, Jairus Aquino, Candy Pangilinan, TJ Valderrama, Janno Gibbs, Jerome Ponce and Gian Bernardino also star.

“Multwoh”

A queer college becomes a ghost after dying in their dorm room – but instead of seeking revenge, they only wish to say “I love you.”

Sassa Gurl, Joao Costancia, John Lapus, Iyah Mina, Phi Palmos and Mina Paner make up the main cast.

“The Cycle”

Deborah Ann Woll plays a forensic anthropologist whose long-missing father’s body somehow pops up at a crime scene, forcing her to confront his dark past.

Jeffrey Donovan, Gretchen Corbett, Phillip Botello, Will Hochman, Jack Doolan and Don Keith Opper also star.

“Vampire Carnival”

Nell Verlaqu’s grieving Gemma is drawn to a mysterious traveling carnival that comes to town. She later learns of an underground world that feeds on despair and demands a costly price for escape.

Paulina Chávez, Kieron Moore, Eoin Macken and Jason Isaacs also star.

October finally comes to a close, but not without leaving a few frights on it way out the door.

Filipinos around the country will be preparing their costumes for Halloween this Saturday, and the next couple of days pay their respects to their dearly departed.

Halloween events will be ringing around the Philippines, plus some other fun activities on the side.

Tricks and treats

Just in time for Intramuros allowing the use of cameras again, the night walks of “Echoes in the Shadows” take place on October 30 and 31 for people to experience Old Manila during the spookiest time of year.

On Halloween proper within the walled city, the “Intramumu” street party will turn Magallenes Drive into a massive night of music, costumes and scary fun.

One can expect similar parties at The Palace, Spirits Library, Uma Nota, Nokal, 12 Monkeys, McKinley Whisky Park and Manila Yacht Club

Visitors will get 50% off admission to Museo Pambata in Manila this October 30 if they dress up as a character from Philippine folklore, as part of the museum’s “Mumuseo” initiative to celebrate local myths and legends.

The cinema club of Sari Sari Bar in Makati is hosting “Twi-night” on the same day, where fans can enjoy the films about Edward Cullen, Bella Swan and Jacob Black.

McDonald’s will have a two-part “Aura Maxxing Grand Halloween Party” at Makati’s The Space at One Ayala as the fast food chain gets into the spooky spirit.

Around Araneta City is a series of Halloween events like the “Eternal Guardians” costume contest and course, trick-or-treating, though the Parolan continues to welcome customers at the Expo Centro Parking.

Who said Halloween ends when the clock strikes midnight? The “Run For Your Life” zombie marathon will take place in Intramuros in the early hours of November 1 where “the undead” chase racers to the finish line.

Outside of the scares, Janine Berdin leads the special guest line-up at Pixel Loot Fair creator marketplace this October 31 in Mandaluyong’s Podium Hall, offering opportunities to meet creators and score limited edition merchandise.

Shows continue

Pop star Zara Larsson takes her “Midnight Sun” tour to the Araneta Coliseum on October 30, returning to the Philippines in nearly a decade, while Korean actor Hwang In-youp hosts a fan meeting in the nearby New Frontier Theater on the same day.

Local rock band Autoletic marks the 10th anniversary of its debut album “Papunta Pabalik” with a show in Mandaluyong’s 123 Block Mandala Park on October 31, celebrating the release that introduced hits like “Languyin” and “Laro.”

Also doing a Halloween gig this year is Rob Deniel at the Viva Cafe in Quezon City, as well as Thai artist Charlotte Austin at Taguig’s Maybank Performing Arts Theater.

“Harry Potter: A Yule Ball Celebration” and Repertory Philippines’ “Cinderella: The Tale of the Glass Slipper” continue their runs at The Space at Solaire and REP Eastwood Theater in Quezon City, respectively.

Gary Valenciano closes his “Back at the Museum” series at the Music Museum in Greenhills on October 30 and 31 while “Bongga Ka, ‘Day!: The Annie Batungbakal Musical” end its run at the Newport Performing Arts Theater.

Bea Millan-Windorski is directing all her focus to represent the Philippines the best away possible at Miss Universe as the pageant’s organization navigates concerns among rivaling executives.

The beauty queen from La Union was crowned Miss Universe Philippines last May and has preparing for the diamond edition of Miss Universe the last six months.

Officials within the pageant’s mother company however have been at a war of words in recent weeks over who has authority to speak on organizational matters and properly represent the Miss Universe brand.

The dispute has resulted in six Southeast Asian countries withdrawing from the 75th Miss Universe this November, including Vietnam, which one side has announced as the host of the next edition in 2027.

Philstar.com spoke to Bea on the sidelines of a Halloween party held in a Makati hotel on October 29 and asked how she is blocking out the noise to focus on her pageant journey.

The beauty queen shared about a conversation with Secretary Robert E. A. Borje of the Philippines’ Climate Change Commission ahead of the 2026 UN Climate Change Conference, or COP 31 in Turkey, next month.

Bea and Borje discussed how events like COP31 and Miss Universe are opportunities for the world to come together, as well as for the Philippines to show what it has to offer.

“More than anything going on, I’m just focusing on what I can control and representing the Philippines to best of my ability,” Bea said.

She does so in her talks about climate change, its root causes, and how to protect Filipino, given that the Philippines is among the most climate-vulnerable countries in the world.

Bea also said she is focusing on telling the Filipino story through other avenues like her wardrobe.

“I already feel like I’m highlighting the beauty of our country to an international audience and that’s enough for me,” the national titleholder ended.

The coronation night of Miss Universe 2026 will take place in Puerto Rico on November 25 (Philippine time) as Bea vies to take home the country’s fifth crown.

Raf Dionisio wanted to be a rich man, because he had set his sights on working for a multinational, being a corporate executive, using his penchant for Math and making a lot of money. Until a friend nudged him and said: you have to do something for the world. You have to make a difference. That woke him up and so Making A Difference or MAD travel was born.

He admitted to me that after college he had gone into as many as seven attempts to found a business that would survive. Some were purely commercial like buying and selling of cars, another was supplying vegetables door-to-door, another was investing in a social enterprise and even copying the ube jam of Good Shepherd, among many other attempts. But what got him deep into purpose, mission and what seems to be a sustainable business model is MAD travel. He established an adventure company. In this day and age when tourists look for experience and not things to buy or to just pose for a photo at a scenic spot, MAD travel became relevant.

Raf realized it had to be a little different and one had to be a little crazy. He designed his tours to allow people to ‘make a difference’ like teach in a school, help reforest and care for the environment by avoiding waste. To roll all of these things together, he zeroed in on his niche market: school field trips and company corporate social responsibility (CSR) and ESG events. After all, which company has not yet done a tree planting exercise? Almost every volunteerism event asks you to plant a tree.

But he first had to learn how to deal with the Aetas or any indigenous tribe because they have their respected rules such as running every plan with their elders. They have a leader called the IPMR or Indigenous People Management representative and he or she must tell the community about plans to reforest or whatever activity must happen. Raf had to take lessons from a reforestation project in Bukidnon with similar conditions. He asked for the advice of John Perrine of Hinelaban Foundation who had experience in reforestation with the Tala-andigs. So John asked him to bring his community elders over to learn in situ.

The similarity ended there. Bukidnon had the support of multinational corporations while Raf’s Zambales site only had start up businesses. But he carried on, learning which tree species could be planted in his area in Zambales which had lahar (volcanic flow) soil from Mount Pinatubo’s eruption. Over time he learned that he could plant kupang, a species where bats roost as they grow up to 30-40 meters high, the balete for fruits, agoho and narra. He learned about native species also from University of the Philippines Los Baños (UPLB)and transformed from being a math whiz to being a forester. He learned that the community elders are the ultimate foresters.

He takes pride in having planted 148,000 trees over a few years through the business model he evolved into – and it is called Impact Tourism. He has a handful of tour guides who know the forest, and he now knows the seasons of when it is hot and when there are floods. They also have a mountain development framework where tall trees are planted at the very top, fruits trees at lower elevations so they can be easy to harvest (e.g. cashew) and at the bottom would be root crops for food.

MAD travel will soon be renamed MAD Earth but the mission has stayed the same: protect the environment while having a sustainable economy in these parts. And companies can very well support Raf while doing their CSR and ESG initiatives or even just compliance because some creditor requires them to do so. Raf does not mind the reason, he cares that you choose to plant the right trees in the right environment. So MAD Earth can handle school field trips, company excursions and even ‘barkada’ treks. As he said: travel is the how and Earth is the why. Thus, it is now MAD Earth and appropriately so.

Raf has seven locations in and around Zambales for every trekker’s flavor profile. He has Tribes and Treks; Feast in the Forest and Heights in Harmony as some of the well-named tours his company has been developing. So if you wish to help reforest while making your staff feel excited, a MAD trek is what you should take. Already many of his trekkers belong to the younger generations – Gens Y, Z and Alpha. And that is good news. The younger ones are taking it into their own hands, literally. Digging the soil and planting those trees.

I wish Raf could replicate these tours in other places like Mount Apo, Mount Kitanglad and Mount Matutum. The same formula of Indigenous People plus mountain and the drive to reforest our denuded areas. It takes a madman, who was nudged into mission, to do something like this, keep at it for years and see it through. With Raf’s experience in Zambales, a hot and humid area, anywhere else that is cooler or higher might even be easier.

This is a good time to address our domestic tourism development with Impact Tourism projects such as MAD Earth. One man’s entrepreneurial dream may be the solution to climate change and sustainable development. Big words that can be solved by a crazy idea of an entrepreneur who has shown success in his pilot run in Zambales. Imagine that replicated across the country.

We hope your tribe increases, in a literal way. From one tribe to another, our indigenous people may be the solution to our climate change challenges. Reforest with the ultimate foresters. And throw in a Math whiz with determination and grit. That’s the MAD formula.

Moody’s Ratings has further trimmed its Philippine growth forecast for 2026 to 3.3 percent from 3.6 percent previously as elevated energy prices and weak investment continue to weigh on economic activity.

In a report, the debt watcher said real gross domestic product (GDP), the broadest measure of economic output, is expected to grow by 3.3 percent this year before recovering to 5.1 percent in 2027 as confidence improves and investment strengthens.

The new forecasts are lower than Moody’s August projections of 3.6 percent for 2026 and 5.3 percent for 2027.

Moody’s attributed the weaker near-term outlook to higher energy prices amid the conflict in the Middle East and ‘still-subdued investment activity.’

Still, it said Philippine growth dynamics remain stronger than those of similarly rated economies, supported by infrastructure spending, remittance inflows and reforms aimed at attracting greater private and foreign investment.

Remittances from overseas Filipino workers, equivalent to around eight percent of GDP, continue to support household consumption and provide a stable source of external financing.

Moody’s said progress in project execution, investment liberalization and public-private partnership reforms should help lift investment and productivity over the medium term.

However, ‘implementation delays or weaker-than-expected investment could weigh on confidence, constrain private investment and slow medium-term growth potential,’ it said.

The rating agency also flagged lingering governance weaknesses that could hamper public investment.

It said recent reviews of infrastructure planning, budgeting and procurement ‘exposed governance weaknesses that led to significant project delays and weighed on investor confidence.’

The Philippines also ranked below the 30th percentile globally in both rule of law and control of corruption based on the World Bank’s Worldwide Governance Indicators, according to Moody’s.

Despite these challenges, Moody’s said the government has maintained broad policy continuity and continued to pursue structural, fiscal and business environment reforms.

On the fiscal side, Moody’s expects consolidation to remain broadly on track despite weaker growth and uncertainty surrounding proposed revenue measures.

The general government deficit is projected to narrow to around four percent of GDP this year from 4.1 percent in 2025 as economic activity recovers, revenue administration improves and spending efficiency gains materialize.

However, Moody’s said weaker revenue growth, implementation challenges and pre-election spending pressures could slow the pace of deficit reduction.

It also noted that recent fiscal consolidation has partly reflected restrained capital spending, while improvements in revenue mobilization have remained gradual.

Government debt is expected to stabilize at around 58 percent of GDP over the next two years before declining gradually.

Debt affordability, however, remains the key constraint to fiscal strength, with interest payments projected to stay above 14 percent of government revenue compared with the roughly nine-percent median among similarly rated sovereigns.