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Flag carrier Philippine Airlines (PAL) is placing aircraft orders one after the other, setting out to buy another nine of its flagship A350-1000 from aerospace giant Airbus.

PAL yesterday signed a memorandum of understanding with Airbus for the procurement of nine A350-1000s, with purchase rights for five more, in yet another boost to its long-range fleet.

The order was placed a day after PAL submitted its initial commitment to buy 15 Boeing 787-10 Dreamliner, with purchase rights also for five more, to expand its widebody fleet.

The new Airbus order will also double PAL’s A350-1000 fleet to 18 once completed. PAL signed an order for nine A350-1000s in 2023, and two have arrived since, with the other seven expected before 2028.

PAL deploys the A350-1000 to some of its longest destinations in North America such as New York and Toronto. It plans to do the same for the second batch of A350-1000s, which are set for delivery from 2034 to 2036.

PAL configures the A350-1000 in three classes: business class, premium economy and economy cabin, totaling 382 seats.

The layout includes 42 suites in business class with privacy doors and fully flat beds, 24 seats in a separate premium economy cabin, and 316 seats in economy class, and PAL equipped all of the cabins with in-flight entertainment and internet access.

The A350-1000 is considered as one of the most cost-efficient long-range aircraft at present, as it is able to fly up to 16,700 kilometers with 25 percent less fuel burn.

PAL Holdings Inc. president and chief operating officer Lucio Tan III said the airline takes pride in being the first Southeast Asian carrier with an A350-1000. He trusts the aircraft would define PAL’s competency for international flights.

‘As the first and currently the only airline in Southeast Asia to operate the A350-1000, PAL has experienced firsthand the aircraft’s exceptional range, fuel efficiency, reliability and its passenger comfort. It has expanded our reach across North America, while delivering the world-class travel experience our customers deserve,’ Tan said.

To ensure its A350-1000 longevity, PAL also signed a memorandum of understanding to buy 18 Trent XWB-97 engines from Rolls-Royce to power up the aircraft.

The airline owned by taipan Lucio Tan also struck a deal with Rolls-Royce for its TotalCare program that covers the health and maintenance of the fleet.

The Philippine National Police recently reported a 20.6-percent decline in the country’s crime rate for the second quarter of 2026 – an encouraging development that reflects the hard work of law enforcement agencies and their partners in maintaining peace and order.

At the same time, several high-profile incidents have understandably drawn significant public attention. Reports involving minors in violent crimes, including stabbing incidents, as well as the killings of motorcycle taxi riders in Caloocan and Cavite, have raised concerns about safety and security. These cases serve as a reminder that progress in public safety is an ongoing effort. Even as crime rates move in a positive direction, every serious incident has a real impact on victims, families and communities. This can also influence public perception – quite strongly if I may say.

A photo of a motorcycle taxi rider wearing a helmet with the message, ‘Buntis po ang asawa ko. Huwag niyo po sana akong saktan,’ quickly went viral on social media following reports of a rider’s killing. The image resonated with many people because it reflected broader anxieties about personal safety and the uncertainties of everyday life.

The decline in crime rates is encouraging- it represents progress and shows that many initiatives to improve public safety produce results. At the same time, the government certainly has their work cut out for them. The challenge now is to ensure that these gains are consistently felt by ordinary citizens in their daily lives, whether they are commuting to work, operating a business, sending their children to school or returning home during the late hours of the evening.

In today’s digital age, public perception is influenced not just by actual incidents on the ground but also by the speed and reach of information online. Social media can be a powerful tool for raising awareness, but it can also amplify fear through disinformation, misinformation and production and amplification of rage-bait content designed to provoke emotional reactions and maximize engagement.

While vigilance is important, it is equally important for the public to be discerning consumers of information and to verify facts before drawing conclusions or sharing content that may unnecessarily heighten anxiety.

Beyond public safety, there is also an important economic factor to this situation. As we know, businesses thrive in environments that are stable, secure and predictable. When a country or a community is perceived to be safe, investors are more confident about expanding operations, opening new facilities and ultimately creating jobs. This benefits not only businesses but also ordinary Filipinos who will be able to have more employment and livelihood opportunities and stronger local economies. Improvements in peace and order therefore translate into not only safer neighborhoods but also into better economic opportunities.

Singapore, for example, has built a global reputation for safety, stability and good governance, helping it become one of Asia’s leading economic hubs. The lesson is clear: when people and businesses feel secure, investments and growth often follow. Conversely, persistent misperceptions can discourage business expansion and limit job creation.

As the country continues to make progress in public safety, it is equally important to promote fact-based discourse so that confidence is built on reality and allow more opportunities, investments and economic growth to benefit Filipinos. This is why perception matters almost as much as reality.

The goal should then be to align improving crime statistics with a corresponding sense of security among the public. This requires continued transparency from authorities, prompt action on reported crimes and effective communication that helps communities understand both the challenges and the progress being made.

Of course, maintaining safe and secure cities is not the responsibility of law enforcement alone. We all have important roles to play in promoting peace and order- families, schools, local governments, businesses, civil society groups and individual citizens alike. Respect for the law, responsible citizenship and active community involvement contribute significantly to safer neighborhoods.

On the part of law enforcement, sustained police visibility and responsive policing can help reinforce public confidence. These efforts should be complemented by practical measures from local government units and barangays, such as ensuring that streetlights are operational, CCTV systems are functioning and public spaces are properly maintained and monitored.

Another issue that deserves attention is the growing visibility of youth involvement in violent incidents. Addressing this challenge requires a broader social response. Parents, educators, community leaders and policymakers must work together to provide young people with guidance, support systems and opportunities that steer them away from violence and criminal activity.

As we continue working together to strengthen public safety, promote responsible and fact-based discussions, we create an environment where businesses can invest and create jobs and we move closer to the kind of communities Filipinos aspire for. I long for the day when people can enjoy a morning walk without worry, when parents can send their children to school with complete peace of mind and when workers can travel safely at any hour of the day or night. This is the future that Filipino families deserve and look forward to: one that is secure, stable and filled with opportunity. In the end, success is measured both by lower crime rates as well as the peace of mind and better quality of life enjoyed by every Filipino.

The Bureau of Internal Revenue (BIR) has issued a clarification on the application of creditable withholding tax (CWT) to top withholding agents (TWA) amid transactions involving manufacturers and direct importers of covered goods intended for wholesale.

The BIR issued Revenue Memorandum Circular (RMC) 79-2026 answering frequently asked questions on the 0.5-percent CWT for covered wholesale purchases, explains when the preferential rate applies and identifies documentary requirements needed to establish a supplier’s status.

The circular also outlines corrective measures when the wrong withholding tax rate has been used.

‘Through these clarifications, the BIR seeks to provide greater certainty for taxpayers while ensuring the proper and consistent application of withholding tax rules,’ the agency said in a statement.

Under the circular, the BIR explained that the 0.5-percent CWT rate applies if the supplier is either a manufacturer or a direct importer of the covered goods. It is not required that the supplier be both.

The agency said a local manufacturer that produces and sells the specified goods, even without import activity and a direct importer that brings in such goods for sale in the Philippines are subject to the preferential rate, provided the goods are covered and intended for wholesale.

It also explains how the phrase ‘intended for wholesale’ should be interpreted, as the 0.5-percent CWT is imposed on gross payments to manufacturers and direct importers of certain goods intended for wholesale.

The BIR explains that this phrase refers to the ‘nature of the sale as ordinarily undertaken by the manufacturer or direct importer in the regular course of its business, where the goods are sold primarily for resale, distribution or further commercial disposition and not for final consumption by the end-user.’

In addition, the RMC said motor vehicles imported or manufactured in completely knocked down (CKD) units are also subject to the 0.5-percent CWT.

BIR said CKD is defined as ‘completely knocked down parts and components, including sub-parts/parts and sub-assemblies/assemblies of motor vehicles for assembly into a complete unit.’

Purchases of this will be slapped with the 0.5-percent CTW, the BIR said ‘provided that the sale of such goods is made in the ordinary course of the seller’s trade or business.’

The circular likewise prescribes appropriate corrective measures when taxpayers or withholding agents apply an incorrect withholding tax rate.

These clarifications would help streamline compliance, reduce disputes and support more efficient tax administration, the BIR said.

Forty-eight distribution utilities (DUs), or local energy providers in the Philippines, charge consumers higher electricity rates than the record-high national average rate of P12.43 per kilowatt-hour (kWh) in June, according to a study by an energy advocacy group.

The Institute for Climate and Sustainable Cities (ICSC) gathered and analyzed the data through its electricity rate monitoring platform, PRESYO-PH, which records and ranks distribution utilities every month based on the actual price their customers pay per kWh.

The group’s analysis followed the Department of Energy’s announcement on Monday, July 20, that the Philippines now has the most expensive power rates in Southeast Asia. The country has already surpassed Singapore’s P0.09 per kWh, which used to be the highest in the region.

ICSC said, however, that the national average rate does not reflect the reality faced by most Filipino consumers, as higher residential charges from DUs indicate that most households are paying more for electricity than the benchmark.

DUs with above-average rates

ICSC records the electricity rates of 116 DUs in the Philippines. Ten of these are off-grid, while 106 are on-grid.

On-grid DUs are connected to a main transmission network and can draw or supply electricity without local battery storage. Off-grid DUs, on the other hand, operate in remote areas and islands independently of the main transmission network.

Generally, on-grid DUs are expected to charge less because they are more cost-effective than off-grid DUs, which are heavily reliant on imported fossil fuels, local generation and battery storage to meet consumer demand.

However, out of the 106 on-grid DUs, nearly half, or 48, charge their customers electricity rates higher than the national average in June.

TARELCO I in Tarlac has the lowest rate among those above the national average at P12.45 per kWh, while Southern Leyte’s SOLECO charges P16.57 per kWh, the highest.

Meralco, the largest private energy company in the country, ranks ninth, charging its customers P14.48 per kWh.

Generation charge

This July, consumers are facing higher electricity charges.

Meralco alone, which holds 80% of the market share, announced on July 10 an upward adjustment of P0.3428 per kWh, bringing the overall rate to P14.8261.

This translates to an increase of P69 in the electricity bills of households consuming 200 kWh.

ICSC said generation charges consistently make up the largest portion of what consumers pay for electricity. Based on its data, generation charges account for at least 46% of the rate mix of distribution utilities, while other costs make up the rest.

The group said this indicates the country’s need to reduce its dependence on imported fuels. According to the US International Trade Administration, liquefied natural gas, a critical transition fuel in the Philippines, accounts for 22% of the country’s power generation in 2026, resulting in increased imports that make up 46% of the natural gas feedstock.

The group further emphasized that, beyond that, diversifying the country’s power mix by using indigenous renewable energy resources is also highly needed.

‘Beyond reducing exposure to imported fuel price volatility, a more diversified power mix can strengthen the country’s long-term economic competitiveness, enhance resilience to external shocks, and improve the well-being of Filipino consumers,’ ICSC’s study read.

A sharper-than-expected minimum wage increase and renewed pressure from a weaker peso and volatile oil prices could keep Philippine inflation elevated for longer, complicating the Bangko Sentral ng Pilipinas (BSP)’s efforts to bring price growth back within target.

In a report, GlobalSource Partners country analyst Diwa Guinigundo said the simultaneous domestic and external inflation shocks could reinforce each other, creating a ‘more complicated policy environment’ for the central bank.

‘These could delay the return of inflation to target, underscoring the importance of maintaining credible monetary policy and keeping inflation expectations well anchored,’ Guinigundo said.

The National Capital Region’s approved minimum wage adjustment reached about 12 percent, twice the six-percent increase assumed in the BSP’s baseline projections.

The P85 daily increase will be implemented in two stages, with P60 taking effect on July 25 and the remaining P25 in January 2027.

The adjustment carries broader economic implications as Metro Manila accounts for the largest share of the country’s output and formal employment, according to Guinigundo.

Based on the BSP’s preliminary estimates, every additional peso in the minimum wage raises inflation by about 0.0047 percentage point. This means the full P85 increase ‘could add roughly 0.4 percentage points to inflation’ through direct or first-round effects alone.

Guinigundo said the bigger risk would come from possible second-round effects, including wage adjustments in other regions, higher production and transport expenses and increases in food and service prices.

Price pressures could become more persistent should households and businesses begin expecting inflation to remain high, prompting workers to demand higher wages and companies to pass additional labor costs on to consumers.

Meanwhile, external developments could add another layer of inflationary pressure.

BMI, a unit of Fitch Solutions, has projected that the peso could weaken to between P61 and P63 against the dollar. Although the effect of currency depreciation on inflation has declined, a sustained peso decline would still increase the local cost of imported fuel and food.

The country is particularly vulnerable to oil price shocks as more than 95 percent of its petroleum requirements are imported. Any prolonged disruption to oil supply could quickly translate into higher fuel, transportation and production costs, eventually feeding into consumer prices.

‘Should these shocks intensify or prove more prolonged than currently anticipated, the return of inflation to the BSP’s target range could be pushed even further into the future,’ Guinigundo said.

The former BSP deputy governor said monetary policy would likely remain cautious as the BSP balances the need to support economic activity with its primary mandate of maintaining price stability.

However, he said monetary policy alone would not be enough to address the country’s inflation problem.

‘Policy coherence, not monetary policy alone,’ he said, would determine how quickly inflation returns to low and stable levels, with the government also needing to strengthen energy security, improve food supply and raise productivity.

In previous import-laden conferences, the San Miguel Beermen had a hard time maintaining a foreign reinforcement.

Since winning the PBA Season 48 Commissioner’s Cup, San Miguel has flipped through numerous imports with 10 different ones in three conferences.

And in each import-laden conference, they failed to make the finals.

Now, with explosive George King at the forefront of the offense, the Beermen may have found an import for keeps.

On Wednesday evening, King erupted for 41 points to go with 11 rebounds, four assists, three steals and a block in a 128-122 win over the Converge FiberXers.

King shot 16-of-32 from the field in 41 minutes and 31 seconds of action to tow the Beermen to their third straight victory in as many games, while dealing Converge its first loss in the conference.

After the game, San Miguel assistant coach Peter Martin said it is ‘very safe to say’ that their import woes are no more.

‘Very safe. Very, very safe,’ Martin told reporters.

The coach stressed that King makes it easy for the entire team, not just on the court but also off it.

‘Minsan alam niyo, kukunin niya yung board, siya yung mag-ano ng play para sa amin. Makes our job really much easier and talks to the players,’ Martin said.

‘At the start, he won’t be so aggressive, the first game, puro pasa nga siya e. Sabi ko nga sa kaniya, it’s up to him, he knows how to play with these guys, he knows how to motivate,’ he added.

Still, there are still a few nicks to fix, but nonetheless, King seems to be a good fit for the squad.

‘So konti pang familiarity siguro. Depensa na lang siguro, maga-adjust kami konti pa.’

King, who was the import of Blackwater Bossing in previous conferences, is averaging 36 points, 10 rebounds and 4.3 assists per game thus far for the Beermen.

King’s production has been big for San Miguel, whose main man, June Mar Fajardo, is still yet to be 100%.

Martin said that Fajardo is ‘slowly getting there.’

‘I think he’s almost there, 80% in shape. Pero masakit yung kanyang elbow, number one. Number two, before he’s able to incorporate what we’ve been doing for the past five weeks, parang nasisira minsan pag pinapasok,’ Martin said.

‘Di naman sa ano, sa dulo, kailangan namin si June Mar. Ngayon pa lang, he’s feeling his way back. Today, 26 minutes, baka next day, baka same 26 minutes again. Palaki nang palaki yung ambag niya sa team.’

The Beermen will take on the still-undefeated NLEX Road Warriors next on July 26th.

Monday’s State of the Nation Address (SONA) of President Ferdinand R. Marcos Jr. should be one of the most substantial speeches of his six-year presidency which ends on June 30, 2028. It should summon time-honored values essential to nation-building – resilience, pride, dignity.

Resilience. Elected with the largest vote (31.6 million or 59 percent) ever for a president, Marcos Jr. has survived the most difficult years of his presidency, from 2024 til today.

The past three years have seen the most active and most blatant attempts to destabilize his government or overthrow him outright, with Vice President Sara Duterte announcing on at least three occasions she wants the President killed – either by strangulation which she imagined she herself would do and through hired assassin/s. Sara’s brother, Davao Mayor Baste Duterte, has publicly declared he wants the President’s head in a killing reminiscent of the end of the Romanovs (the ruling tsar family whose members were shot and bayoneted by the communists to death in 1918).

Resilience and pride. The economy grew by an average of 5.8 percent in the first four years of the Marcos Jr. presidency, one of the best economic growth rates in the region. Growth was broad-based, resulting in the Philippines achieving what it has failed to do in the past 40 years – become an upper-middle income country (UMIC).

The Philippines is now a member of the UMIC Club of 59 countries which make between $4,636 and $14,375 in per capita gross national income (GNI) per year. Our GNI per capita is $4,850 – only $120 below Vietnam’s per capita GNI of $4,970, meaning the Philippines is not that far behind the growth pace of Asia’s growth superstar, Vietnam, despite our rambunctious democracy (Vietnam is a one-party socialist republic and is run by its communist party) and our so-called corrupt governance (Vietnam kills its corrupt officials; in Manila, the big-time thieves and malcontents are given due process and a televised impeachment trial).

Pride and dignity. The Philippines has become an economic, security and strategic partner of world powers. Manila marches with these powers as an equal and a reliable partner.

The Philippines expanded its network of security alliances beyond traditional partners to counter regional maritime threats. On top of its core defensive arrangement under the 1951 Mutual Defense Treaty with the US, Manila has formalized Visiting Forces Agreements with France and Japan, and strategic trilateral partnerships with the United States and Japan.

A historic Status of Visiting Forces Agreement (SOVFA) with France enables joint military training and expanding European security engagement in the Indo-Pacific.

The Philippines elevated its bilateral relations with Japan to a Comprehensive Strategic Partnership, the highest level. The milestone reflects exceptional mutual trust and deepening cooperation amid evolving Indo-Pacific challenges, with key focus on defense, maritime security, economic growth and investments, in strategic areas like AI, green industries and semiconductors.

The Philippines has joined the US-led Pax Silica coalition of 13 countries to secure supply chains for artificial intelligence, semiconductors and critical minerals, and to reduce reliance on Chinese rare-earth tech. For this, the Philippines is building a 1,600-hectare AI industrial hub in New Clark City.

Resilience and pride. Despite the much talked about economic slowdown, the Philippine economy produced its first Filipino trillionaire, Enrique Razon. The college dropout is worth P1.26 trillion ($20.45 billion) because of rising market values of his companies engaged in port operations, casino, utilities and energy.

Resilience and pride. The Philippines has produced its first Filipino global tennis star, Alexander ‘Alex’ Eala, 21. She has a career high singles WTA ranking of World No. 28. She became the first Filipino to reach the fourth round (Round of 16) of a Grand Slam singles tournament. At Wimbledon, she defeated the world No. 1 and defending champion Iga Swiatek.

Not many people realize it but BBM’s presidency has seen the largest ever campaign launched against the most corrupt species of public officials and private contractors ever to strut in the islands of this benighted archipelago.

One popular ex-senator, Bong Revilla, is in jail. Two incumbent senators are in jail – Jinggoy Estrada and Rodante Marcoleta. All three for the non-bailable charge of plunder – defined as a series of acts involving the stealing of P50 million or more, whether the money is tax money or private money. The Office of the Ombudsman is preparing to file non-bailable plunder and money laundering charges against former House Speaker Martin Romualdez, ranking senators and a dozen other lawmakers. The National Bureau of Investigation is looking into fund anomalies that attended the construction of the P50-million cauldron and other facilities for the 2019 SEAGames under then foreign secretary Alan Peter Cayetano. Since the amounts involved reached billions, is Alan destined for jail for plunder too? He feels threatened though he has not been named by the NBI as a suspect.

Not many people realize it but famous people who otherwise would be gallivanting around the world spending stolen money or money tainted with blood are in jail for various offenses. The Philippines’ most popular president Rodrigo Duterte has been in jail in The Hague since March 11, 2025. He is accused of killing between 6,200 and 30,000 civilians in the largest mass execution ever waged by a presidency. Apollo Quiboloy, the self-proclaimed ‘appointed son of God’ is in jail for sex trafficking and other sex offenses. Former Negros Oriental congressman Arnolfo Teves is in jail for the 2023 assassination of Negros Oriential governor Noel Degamo.

What about Sara Duterte? She threatened to kill President Marcos Jr., First Lady Louise Araneta Marcos and former House Speaker Martin Romualdez. That shows character defect and unfitness to be in public office. She accumulated billions in her bank accounts despite having earned only P30 million in her years as a public official. That is unexplained wealth. By law, unexplained wealth is proof of corruption. That shows unfitness to be in public office and to run for the highest position in the land.

Tycoon Manuel V. Pangilinan’s Manila Electric Co. (Meralco) is exploring a potential expansion into Albay, a move that could extend its reach beyond Metro Manila and nearby provinces.

The potential move comes after local officials in Albay sought Meralco’s assistance in addressing persistent power reliability issues that have frustrated consumers in the province.

Meralco chief external and government affairs officer Arnel Casanova said several mayors reached out to the company, citing frequent outages and the challenges these disruptions pose to attracting new investments.

‘They were having difficulty because businesses that are planning to move into their municipalities are unable to invest due to the unreliability of power,’ Casanova said in an interview.

The Albay Electric Cooperative (Aleco) currently serves as the province’s power distributor.

Casanova said Meralco has been encouraged to look into Albay and assist Aleco in improving its services, hinting at the possibility of submitting an investment proposal.

‘Hopefully, Aleco will be welcoming us to provide us with the necessary information so we could make a better proposal,’ he said.

Meralco, the country’s largest power distribution company, serves more than eight million customers within its franchise area comprising Metro Manila and nearby provinces.

As part of its growth and expansion strategy, the company has been pursuing joint venture opportunities with electric cooperatives across the country.

Among its targeted partnerships are electric cooperatives in Batangas and South Cotabato, where Meralco seeks to invest to improve their power distribution services.

Casanova, however, clarified that the company’s proposed partnership would not involve a takeover.

Meralco will enter as an investor with an effective control of the board, while the electric cooperative would continue to manage day-to-day operations within its service area.

‘If the people managing it are already capable, then we will just upgrade their capabilities. We are not taking over the cooperative; we are going to empower them,’ Casanova said.

Smuggled cigarettes valued at P234.3 million have been seized in the waters off Olutanga town in Zamboanga Sibugay, according to the Naval Command Western Mindanao (NCWM).

Meanwhile, in Lanao del Norte, police seized two shipments of illegal cigarettes worth P860,000 in separate operations over the weekend.

The contraband seized in Zamboanga Sibugay was loaded in a Malaysian-styled boat or junkong that was intercepted near Lutangan Island.

NCWM chief Rear Adm. Constancio Arturo Reyes said that members of the Philippine Navy found 1,436 master cases and 55 reams of foreign-branded cigarettes in the boat.

The Navy personnel arrested the crewmembers for failing to present documents for their cargo.

Reyes described the seizure as a major blow to cigarette smuggling activities in Western Mindanao.

In Lanao del Norte, the first shipment valued at P660,000 was found in a truck that was intercepted in Iligan City.

The second, worth P200,000, was in a multicab that was pulled over at a checkpoint in Pantar town.

The drivers failed to show documents for their cargos.

The illegal items were turned over to the Bureau of Customs for proper disposition

The Philippines has finally moved into the upper-middle-income bracket, but global investors are still ranking it behind several of its Southeast Asian neighbors.

That gap showed up in Kearney’s 2026 Foreign Direct Investment Confidence Index, where the Philippines slipped in the emerging-market rankings and trailed Thailand, Malaysia, Indonesia and Vietnam.

Kearney Philippines country head Marco de la Rosa and Southeast Asia managing partner Varun Arora said the country’s new income status gives it a stronger story to tell investors, but the upgrade has not yet translated into stronger investor confidence.

“Unfortunately, in the last two to three years, in the FDI index and the investments, Philippines has dropped rankings a bit vis-a-vis the ASEAN countries, which has also reflected the flow of the money,” Arora told Philstar.com.

The challenge now, they said, is for the Philippines to match its upgraded income status with stronger competitiveness, infrastructure and governance.

Investor confidence gap

Kearney’s FDI Confidence Index is based on an annual survey of global business leaders and ranks markets where investors are likely to place capital in the next three years.

In the 2026 index, the Philippines ranked 18th out of 25 emerging markets, down from 16th place in 2025.

Other Southeast Asian economies ranked higher. Thailand placed sixth, Malaysia seventh, Indonesia 13th and Vietnam 16th.

De la Rosa said the Philippines’ income upgrade should, in theory, help its standing in the index.

“It should improve the ranking of the Philippines in the confidence index because at least the scoring of the Philippines will improve because that one factor of financial performance should be reflected. But it also depends on how the other factors hold up,” De la Rosa said.

According to De la Rosa, global business leaders identified talent and skills availability, natural resources and economic performance as the top factors that attract investment to the Philippines.

But investors rated the country lowest in infrastructure and governance, pointing to gaps that could weigh on long-term competitiveness.

The income upgrade

The World Bank reclassified the Philippines this year after its gross national income per capita reached $4,850, clearing the $4,636 threshold for upper-middle-income status.

The move ended nearly four decades of the Philippines being classified as a lower-middle-income economy.

But de la Rosa noted that the country remains near the bottom of the upper-middle-income bracket, which runs from $4,636 to $14,375 in GNI per capita.

“I mean, we’ve moved up a level in terms of the classification, but we are still actually, from a gross national income standpoint, lower than Vietnam, Thailand, Malaysia, etc,” De la Rosa said.

A tougher league

De la Rosa and Arora likened the country’s new status to a football club being promoted to a higher league.

The Philippines has shown enough progress to move up, they said. But the new status also puts it in a more competitive field, where investors will compare it more closely with stronger and better-prepared markets.

President Ferdinand Marcos Jr. has already used the new income status in his pitch to foreign investors. During his July 14 to 16 working visit to Singapore, Marcos described the Philippines as a newly designated upper-middle-income country with “solid macroeconomic fundamentals.”

“As a newly designated upper middle income country with solid macroeconomic fundamentals, the Philippines offers a secure, transparent and stable environment for businesses to thrive,” Marcos said in his arrival statement.

Kearney said the upgrade should be treated not as a finish line, but as a reason to move faster on infrastructure, governance and economic diversification.

As in competitive sports, moving up means facing stronger opponents and higher stakes, De la Rosa said.

“The stakes will only keep getting higher and higher,” De la Rosa said. “Ultimately we need to compete to win.”