Category: Business Mirror

Ancient Mesopotamian farmers borrowed grain, the terms recorded on clay tablets and repaid at harvest. The logic has not changed in 4,000 years: consume today, settle the bill tomorrow. What has changed is the scale, the sophistication of the instruments, and the remarkable creativity with which governments explain why this particular debt, at this particular moment, is entirely manageable.

The Philippines is currently performing that explanation with energy.

National government debt hit a 21-year high at end-March-65.2 percent of gross domestic product, P18.5 trillion, headed for P19 trillion by December. The government’s response has been consistent: the debt is sustainable, trajectory is downward, ratings agencies agree, pandemic made everyone do it. All of that is broadly true but none of it is the complete picture.

The complete picture includes debt service. The government will spend roughly P2 trillion this year on principal and interest payments combined-approximately 30 percent of the entire national budget. Interest payments alone are projected at nearly a trillion pesos for 2026. Fitch Ratings estimates the interest cost-to-government revenue ratio will reach 13 percent this year, against a 9 percent median for the Philippines’ BBB-rated peers. The government is not in crisis. It is, however, spending one peso for every eight of revenue simply to service the cost of past borrowing decisions, before a single classroom gets repaired or a single kilometer of road gets built.

This is the debt trap’s quiet mechanism. It does not announce itself. It works through subtraction-slowly reducing the share of the budget available for anything productive, compressing fiscal space year by year, until the government finds itself borrowing to service borrowing. The Philippines has not reached that point. But the direction is clear.

Debt divides cleanly into two categories regardless of the borrower. Investment debt plants something-a factory, a bridge, a grid connection that generates returns exceeding the cost of the money. Consumption debt buys the meal you have already eaten.

The Philippine record on that distinction is mixed at best. Capital outlays-infrastructure, productive investment-have been falling as a share of the budget since the Duterte years and contracted a further 9 percent in 2026. The increases in government spending over the same period came almost entirely from two sources: debt servicing and personnel costs. The country borrowed aggressively during and after the pandemic. The returns on that borrowing, measured in durable productive capacity, are less obvious than the headline growth numbers suggest.

The economy expanded 2.8 percent in the first quarter of 2026, the weakest performance since the pandemic, as the oil shock drained consumer spending and fueled inflation. Growth at that pace does not reduce a 65 percent debt-to-GDP ratio. It holds it in place while the interest clock runs.

None of this is alarming yet. The World Bank calls the debt sustainable. AMRO, the ASEAN+3 Macroeconomic Research Office, projects the debt ratio declining through 2030. The ratings are stable if cautious. The government’s 77-to-23 domestic-to-foreign borrowing ratio limits direct currency exposure.

These are genuine stabilizers, not public relations. The Philippines has navigated worse debt positions-the ratio touched above 72 percent in the early 2000s and came down. It can do so again.

Fiscal health requires either collecting more revenue or cutting spending-without gutting the infrastructure budget that remains the only credible path to the growth rate that makes the math work.

The Mesopotamian farmer who borrowed grain had a simple accountability mechanism. The harvest either came or it did not. There was no rolling the debt over onto a new clay tablet, no budget realignment, no supplemental appropriation. The lender and the borrower lived in the same village and faced the same season.

Modern sovereign debt does not work that way. The officials who borrow and the citizens who pay live in different worlds entirely. Governments never pay off their loans; people have to.

That nonsense is not unique to the Philippines. It is the defining feature of public finance everywhere. What distinguishes the countries that navigate it from those which default on their debt is the discipline to treat investment debt and consumption debt as two different things.

The harvest still comes and so does the debt payment. The only question is whether the country planted anything with the money it borrowed.

Cystic fibrosis, or CF, is a lifelong genetic condition that affects how the body produces mucus, sweat, and digestive fluids. More than 100,000 people across 94 countries have been diagnosed with this disease, according to the Cystic Fibrosis Foundation, and each patient has had to learn how to adapt with tools, therapies, and support from families and care teams.

Although living with CF can feel demanding at times, ongoing medical advances continue to improve quality of life for many patients. From using a reliable nebulizer kit to directly deliver medication to the lungs to practicing airway clearance techniques that help loosen mucus, there are now more ways to manage the condition.

To better understand why cystic fibrosis requires such consistent care, it helps to look at the changes happening inside the body and how modern treatment approaches respond to them.

How Cystic Fibrosis Changes the Way the Body Produces Mucus

The body naturally produces mucus to protect sensitive tissues and keep organs functioning properly. Under normal conditions, mucus stays thin and slippery enough to trap germs while still moving easily through the body. When you have cystic fibrosis, that process changes dramatically.

The condition develops because of mutations in the CFTR gene, which helps regulate the movement of salt and water in and out of cells. When this gene does not function correctly, mucus loses much of its moisture and becomes unusually thick and sticky. Instead of helping protect the body, the mucus begins clogging narrow passageways in organs such as the lungs, pancreas, and intestines.

Because mucus buildup happens continuously, cystic fibrosis requires ongoing management rather than short-term treatment. Doctors often monitor lung health, digestion, growth, and nutritional status closely to prevent complications from becoming more serious over time.

Why the Lungs and Digestive System Are Most Affected

Breathing problems tend to be common with cystic fibrosis, largely because the lungs are especially vulnerable to mucus buildup. Once the mucus thickens, it can block airways and create an environment where bacteria thrive more easily. Then, infections develop and inflammation follows, which may gradually damage lung tissue if not treated properly.

Many people with CF deal with chronic coughing, chest congestion, shortness of breath, or recurring respiratory infections. Even minor illnesses can become more difficult to recover from because mucus makes it harder for the lungs to clear bacteria. Some individuals also develop sinus infections due to blocked drainage pathways in the nose and sinuses.

The digestive system faces a different but equally frustrating set of challenges because thick secretions can block the pancreas and stop digestive enzymes from reaching the intestines. Without enough enzymes, the body struggles to break down food and absorb nutrients properly. As a result, those with CF may experience poor weight gain, stomach discomfort, greasy stools, or vitamin deficiencies despite maintaining a healthy appetite.

Children with cystic fibrosis sometimes experience delayed growth because their bodies cannot absorb enough nutrients to support development. Adults may also find it difficult to maintain weight during periods of illness or increased lung strain. Thus, nutrition becomes a major part of CF treatment rather than simply a supportive recommendation

Over time, cystic fibrosis may also contribute to complications involving the liver, reproductive system, or blood sugar regulation. Some patients eventually develop CF-related diabetes after years of pancreatic damage.

How Modern Treatments Help Patients Manage Daily Life

Daily treatment routines for cystic fibrosis can feel demanding at times, but they play a central role in protecting lung function and reducing complications. Most care plans combine several therapies that target different aspects of the condition to help the patient manage symptoms as effectively as possible.

Airway clearance therapy remains one of the most important parts of treatment. Chest physiotherapy techniques help loosen mucus so it can leave the lungs more easily through coughing. To make these exercises more effective, many people use inhaled medications that open airways or thin mucus beforehand. Devices such as nebulizers transform liquid medicine into a breathable mist, ensuring treatment reaches deep into the lungs where it’s needed most.

Alongside airway clearance, various medications target specific challenges. Doctors may prescribe antibiotics to treat infections, bronchodilators to improve airflow, or anti-inflammatory medications to reduce irritation. In recent years, CFTR modulator therapies have transformed treatment by addressing the underlying protein defect linked to CF. While these medications do not cure the condition, they can improve lung function and reduce complications for eligible patients.

Nutrition support adds another layer of care. Pancreatic enzyme supplements help the body digest food more effectively, while high-calorie diets and vitamin supplementation maintain weight and energy. Exercise ties the plan together by strengthening endurance and supporting lung health. Physical activity helps move mucus out of the airways more efficiently, complementing medical therapies. Even moderate activities such as walking, swimming, or cycling can provide noticeable benefits when done consistently.

What Long-Term Management Looks Like Today

Living with cystic fibrosis requires daily effort, but treatment advances have changed the outlook for many patients. More people with CF are now reaching adulthood, pursuing careers, traveling, and maintaining active lifestyles than in previous generations.

Consistency often makes the biggest difference in long-term care. Patients who keep regular appointments, follow medication schedules, and maintain good nutrition stay ahead of complications and give their bodies the support they need. Acting quickly when infections appear also helps prevent more serious problems. Over time, these habits become part of routines that fit alongside the demands of everyday life.

Although CF remains complex, growing medical knowledge continues to improve management. Better treatments, personalized approaches, and the right emotional support allow many people with CF to live fuller, more independent lives than ever before.

Understanding cystic fibrosis means recognizing how it affects your body and learning how to manage it step by step. From airway clearance to emotional support, each element of care contributes to a fuller, healthier life. And as treatment options continue to expand, the outlook grows more hopeful. If you or someone you love is navigating CF, remember that knowledge and consistency are powerful allies. With the right strategies, you can regain a sense of control and move forward with clarity and confidence.

DARREN ONG and Ana Marie Aguilar scored stunning last-ditch victories in the International Container Terminal Services Inc. Negros Occidental Junior Philippine Golf Tour (JPGT) Championship at the Negros Occidental Golf and Country Club in Bacold City on Tuesday.

As a result, both secured spots on the South team to the Junior Philippine Golf Tour (JPGT) Elite Finals set August 17 to 20 at the Pueblo de Oro Golf and Country Club.

For Ong, the final round of the boys’ 7-10 division was less of a shootout and more of a victory lap.

Ong held a huge 14-stroke lead after Monday’s opening round and slowed down with an 80 in scorching conditions after a 76 but still won by 22 strokes on a 156 total over 36 holes.

Anthony Avila carded an 88 to finish a distant second at 178, while Joaquin Limjap took third with a 199 after a 98.

Ong’s dominant performance catapulted him from No. 6 to No. 4 in the Visayas-Mindanao Series rankings.

Accumulating 35 points after the six-stage circuit, he dislodged the absent Thomas Ngo (26) to claim the fourth and final qualifying spot.

Ong joined Ethan Lago, Stephen Clementer and Lucas Revilleza to form the South’s youngest squad.

‘I’m so excited to play in the grand finals. I’m going to practice hard to turn my weaknesses into strengths, but my goal is to keep playing pressure-free,’ said the nine-year-old Ong.

‘Everything just clicked today, especially my chipping and putting, though I still feel like I could’ve done better,’ he added.

Aguilar showcased veteran-like composure to secure a gritty one-stroke victory over Vanya Go with a final-round 82 and a 158 total.

Go wound up with an 85 for a 159 while Jia Ho carded an 81 to tie Zoey Mascariñas, who faltered with an 84, at 165.

‘Everything just clicked today, especially my chipping and putting, though I still feel like I could’ve done better,’ he added.

Aguilar showcased veteran-like composure to secure a gritty one-stroke victory over Vanya Go with a final-round 82 and a 158 total.

Go wound up with an 85 for a 159 while Jia Ho carded an 81 to tie Zoey Mascariñas, who faltered with an 84, at 165.

In the boys’ 11-14 division, Cagayan de Oro standout Ken Guillermo primed up for the finals by staging a thrilling comeback.

Trailing by two strokes early on, Guillermo closed with a 79 at the par-70 layout to finish with a 164, securing a two-shot victory and his second leg win following his triumph at Alta Vista.

Metro Manila’s retail sector is stabilizing, but not without headwinds. Total stock reached 7.9 million sq m as of Q1 2026, with new supply moderating sharply versus pre-pandemic highs. Vacancy improved to 10.8 percent, driven by sustained demand from FandB and fashion, although store closures persist. We see vacancy normalizing by H1 2027, but risks are rising. The Middle East crisis could dampen remittances, inflate costs, and temper consumption. Still, premium and experiential malls are leading the recovery. In our view, developers with strong leasing income and curated retail formats are best positioned to navigate volatility and sustain growth.

As of end-Q1 2026, total retail stock in the capital region reached 7.9 million sq meters with about 96,000 sq meters completed from Q4 2025 to Q1 2026. From 2026 to 2028, we project the annual average completion of 113,000 sq metres of new supply, significantly lower than the 332,000 sq meters completed annually from 2017 to 2019.

Colliers data showed that Metro Manila retail vacancy improved to 10.8 percent in Q1 2026 from 11.4 percent in Q3 2025. While Colliers recorded sustained take-up from the FandB and clothing and footwear segments, we also noted closures of several brick-and-mortar stores following the expiry of their leases. Given the geopolitical tensions in the Middle East, Colliers now expects that vacancy will likely return to pre-pandemic levels by H1 2027.

Upscale and premium malls are driving the next phase of retail growth from 2026 onwards, as developers double down on experiential, high value formats. In our view, differentiation and curation will be key in sustaining the retail sector’s recovery post-Covid. More foreign brands are entering the Philippine market, and more premium retail spaces are being developed within and outside the capital region. These should help future-proof retail in the years to come.

Navigating the impact of the Middle East crisis

Philippine property is constantly challenged by domestic and external factors. Right now, we are seeing the emergence of new challenges. The Middle East crisis and the ensuing rise in the price of oil are likely to disrupt supply chain operations, raise prices of construction materials, and temper demand.

Property developers are closely monitoring the Middle East situation as remittances from the region covered nearly a fifth of total remittances in 2025. Remittance-receiving households, especially those depending on remittances from the Middle East, might hold off major big-ticket purchases including property. The retail and leisure sectors could also face headwinds from slower remittances and rising inflation.

The industrial segment is expected to remain relatively resilient. However, rising oil prices are also increasing logistics costs, which could shift demand toward warehouses located near ports, major roads and residential areas. Facilities with strategic access and modern, efficient designs are likely to see stronger demand as companies seek to optimize costs.

Slower economic expansion in Q1 2026 and rise in inflation are major concerns for the Philippine property. But developers with massive retail and office footprint continue to remain cautiously optimistic especially as we see foreign mall tenants and occupants still taking up massive office and retail spaces amid the ongoing Iran conflict. In our view, recurring income derived from key business segments such as leasing are important in shielding developers from the adverse impacts of global economic crises.

THE Philippines and Egypt are exploring ways to deepen trade ties, including the possibility of introducing Egyptian cotton-related investments in the country, as both governments seek to expand economic cooperation despite relatively modest trade volumes between them.

Trade Secretary Ma. Cristina Roque said Egyptian officials and business groups have expressed interest in exploring opportunities involving Egyptian cotton, although discussions remain at an early stage and no firm investment commitments have been made.

‘[What we discussed was] how to strengthen trade between the Philippines and Egypt. They are interested in producing Egyptian cotton. They want to introduce us to some companies that are interested in exploring the opportunity,’ Roque told reporters.

‘Actually, there is nothing definite yet. We are simply exploring the possibility of producing Egyptian cotton from seeds for fabric production,’ she added.

Roque stressed that talks with Egypt are currently focused on broadening trade and business engagement rather than negotiating a free trade agreement.

Asked about the state of bilateral trade, the trade chief said economic exchanges between the two countries remain limited, prompting both sides to identify new areas for cooperation.

‘Not too much. So they’re trying to find ways for us to really strengthen the trade. So it’s really exploratory. Meaning they’ll bring in businessmen here, or we can go there,’ Roque said.

Her remarks came after a meeting with Egyptian Ambassador Nader Zaki last week to discuss preparations for the visit of Egyptian Foreign Minister Badr Abdelatty and explore opportunities to strengthen economic relations between the two countries.

According to the Department of Trade and Industry (DTI), discussions covered a proposed business roundtable, trade and investment opportunities, and potential partnerships in agriculture and the Suez Canal Economic Zone.

The latest engagement builds on efforts by both governments to expand commercial ties. Last year, the country sought deeper agricultural trade cooperation with Egypt, particularly for high-value products such as mangoes and bananas, as well as durian.

Trade data indicated that bilateral commerce remains relatively small. In 2023, Egypt exported about $12 million worth of goods to the Philippines, while imports from the Philippines reached approximately $12.5 million.

Despite strong growth in trade flows in recent years, Egypt has yet to enter the Philippines’ top 40 trading partners, according to the trade chief.

Earlier this year, Egypt proposed the creation of a joint business council with the Philippines to facilitate trade and investment cooperation in sectors such as agriculture, pharmaceuticals, infrastructure and energy.

Abdelatty proposed during a telephone conversation with Foreign Affairs Secretary Maria Theresa Lazaro in February, suggesting that private sector representatives be included to strengthen business-to-business engagement and help identify new commercial opportunities.

AMID the chaos engulfing the Senate that is embroiled in a standoff over leadership, senators have separately called for a pause from the power play to better focus on the Mindanao communities affected by Monday’s magnitude 7.8 earthquake in Mindanao.

Sen. Panfilo M. Lacson on Monday called for a timeout in the power play in the Senate, and instead focus on prayers and assistance for communities.

Lacson said that amid the political noise in the Senate, attention must be directed to the suffering of Filipinos in the South in the aftermath of the disaster.

‘Let’s take a break from the Senate power play and pray for the people of Mindanao, especially the fatalities and the injured, as well as those whose properties were damaged and destroyed by the 7.8 magnitude earthquake this morning,’ he said on X.

On Monday morning, a magnitude-7.8 quake hit offshore Sarangani causing a wide swathe of destruction in Mindanao.

The Office of Civil Defense was reported as saying the death toll from the quake stood at 35 as of Monday evening, with over a hundred injured.

Authorities are still assessing the grave devastation wrought on homes and public infrastructure, including roads, bridges and schoolbuildings which were hit at the time when classes opened on Monday.

Sen. Francis Pangilinan echoed Lacson’s call for a pause and said his office was coordinating with disaster response agencies on the ground.

Pangilinan said they are particularly worried over communities in coastal areas that were hard-hit by the quake and tsunami in Sarangani and other parts of Mindanao.

He is pushing for interventions for schoolchildren who suffered trauma on their first day of school.

Also on Monday, Senate President Alan Peter Cayetano called for a pause from the political turf war, even as he remained in a standoff with the new majority bloc led by acting Senate President Sherwin Gatchalian.

Members of the Senate majority bloc have taken steps to help victims of the magnitude 7.8 quake that devastated parts of Mindanao on Monday and invited their colleagues from the minority to join them in this effort.

‘The Senate New Majority stands with the families and communities in Mindanao who are now facing the painful work of rescue, relief, rebuilding and recovery after the powerful earthquake,’ they said in a statement.

They said that they have agreed to donate one month’s salary to help those affected by the disaster.

‘As a personal contribution to the relief effort, members of the Senate New Majority are prepared to donate one month of our salary to help support affected communities,’ they said in the statement.

‘While this is a small contribution, we hope our colleagues in the minority will join us in this effort. After all, we are senators of all Filipino people. This is a moment when the Senate, whatever its internal divisions, can still speak through one act of shared compassion.’

As of early Tuesday, Office of Civil Defense deputy spokesperson Diego Mariano said that as of 6 a.m., the quake left at least 37 people dead, 456 people were injured, and four were reported missing.

It affected 17,689 families or 77,186 people. At least 5,343 families or 19,365 people are staying in evacuation centers.

Beyond the financial value of the contribution, the Senate New Majority sought to stress the emotional weight of the gesture for communities that are still dealing with fear, loss and uncertainty.

‘What we hope to give is not only financial assistance, but a clear message that Mindanao is not facing this burden alone,’ they said.

‘Naniniwala kami na ang unang hakbang ng sinserong pakikiramay ay ang ipaabot sa mga taga-Mindanao ang mensaheng handa ang pamahalaang tumulong sa oras ng pangangailangan,’ they added.

The group said the assistance should follow the needs identified by those on the ground, particularly in areas where families require basic supplies and temporary support while damage assessments continue.

‘Our contribution should go to immediate needs such as food, clean water, medicine, temporary shelter and other assistance identified by local communities and responders on the ground,’ they noted.

The Senate New Majority also widened its appeal beyond the chamber, urging Filipinos who are able to extend assistance to Mindanao through prayer, donations or other forms of help.

‘We ask the entire nation to keep Mindanao in their prayers and, where able, to give in any way they can, because in moments of calamity, every act of kindness becomes part of the country’s healing,’ they expressed.

The group said coordination with government agencies and local officials will be necessary to ensure that assistance supports both immediate relief and the longer process of restoring communities.

‘We will continue to coordinate with the proper national and local authorities to support relief, reconstruction and the safe restoration of essential services in affected areas,’ they added.

June gets more fun as comedian-musician Tom Franek makes his way back to the Philippines for an exhilarating evening of laughter, performances, and more. Quezon City’s first and only five-star luxury intergrated resort lights up as the three-time Grammy-nominated entertainer brings his signature piano-comedy performance blending his unique musicianship with stand-up comedy all the way to Quezon Club at Solaire Resort North for two weeks of fun starting June 11.

Previously featured as headliner for Disney, Princess Cruises, and known for live appearances on primetime television internationally, Tom Franek shares a new act to look forward to at Solaire Resort North for a memorable experience. Welcome a night of melodical and comical antics as Quezon Club opens its doors for patrons and guests to catch the exclusive shows this June 11, 13, 18, and 19.

Fuel the energy of the night with Quezon Club’s Western-inspired dishes for a savory touch to the evening. Indulge in a delicious meal perfectly paired with expertly crafted cocktails to complete the experience at the luxury integrated resort’s premier entertainment hub, and don’t miss an exciting sneak peek into the entertainer’s unforgettable set at the Solaire Resort North Lobby starting June 10.

Join the fun and be part of this exclusive comedic-musical event at Solaire Resort North this June. Reserve your table at quezonclub.com, call +632 8888 8888, or email snrestaurantevents@solaireresort.com. Admission is complimentary.

THE Philippine Deposit Insurance Corp. (PDIC) announced it will offer two prime commercial lots and other Luzon properties through an electronic public bidding on its ‘Assets for Sale’ microsite from July 8 to 9, 2026, with bid submissions open from 9:00 a.m. on July 8 until 1:00 p.m. on July 9 and the opening of bids at 2:00 p.m. that day.

According to the PDIC, the prime commercial properties are situated along major thoroughfares in Naujan, Oriental Mindoro and San Jose del Monte City, Bulacan. Both properties were previously used as bank premises, and are positioned in strategic growth areas. These assets present an exceptional opportunity for portfolio expansion, business development, and other commercial ventures. With minimum disposal prices of P3.0 million and P6.9 million, respectively, these assets give potential buyers strong long-term value appreciation.

The e-bidding will also offer other Luzon properties, comprising 35 residential lots, 18 agricultural lots, and five mixed residential/agricultural properties with areas ranging from 42 square meters to 4.5 hectares. These properties are located in Metro Manila, Albay, Batangas, Bulacan, Camarines Sur, Isabela, Laguna, La Union, Oriental Mindoro, Pangasinan, Quezon, Rizal, and Zambales, read a statement the PDIC issued last Tuesday.

LATEST data released by the Bangko Sentral ng Pilipinas (BSP) showed that while loans extended by banks to micro-sized, small-scale and medium-sized enterprises (MSMEs) posted growth in the first quarter, it remained flat, reflecting cautiousness by the lenders and borrowers.

Based on the data from the central bank, loans made available to MSMEs climbed to P574.8 billion as of end-March, up 5.12 percent from the P546.82 billion recorded in the same period last year.

The same amount was made available to small merchants in the previous quarter or in the last quarter of 2025, at P574.8 billion.

The industry’s total loan books jumped by 2.71 percent to P12.14 trillion as of end-March 2026 from P11.82 trillion in the same period last year.

Out of the loan portfolio extended by all banks, the percentage compliance by banks to MSMEs grew to 4.73 percent as of end-March 2026, from the 4.63 percent compliance in the same quarter a year ago.

Still, this is less than half the 10 percent required by the law.

Under the Magna Carta for MSMEs, all lending institutions, whether public or private, are required to set aside at least 8 percent for micro and small enterprises and at least 2 percent for medium enterprises of their total loan portfolio.

Broken down, data showed that loans extended to micro and small enterprises only amounted to P238.45 billion as of end-March. This is equivalent to only 1.96 percent of the industry’s loan books, way below the 8 percent required by the law to be earmarked for micro and small merchants.

For medium enterprises, banks were able to extend P336.35 billion. This is equivalent to 2.77 percent of the industry’s loan books, above the 2 percent required by the law for medium-sized businesses.

Ateneo De Manila University Professor of Economics Leonardo A. Lanzona Jr. said that despite economic recovery and expanding loan portfolios, banks continue to allocate less than half of the legally-intended share of credit to the MSME sector.

‘This suggests that banks still perceive MSMEs as relatively risky borrowers and that alternative lending channels, rather than traditional bank financing, may be increasingly serving the sector,’ Lanzona told the BusinessMirror. ‘Unless incentives are provided by the government this situation is unlikely to change.’

Jonathan L. Ravelas, senior adviser at Reyes Tacandong and Co. noted that while MSME lending is still growing, ‘the pace is clearly easing.’

‘That reflects a more cautious environment on both sides,’ Ravelas said.

He noted that higher borrowing costs, tighter bank risk assessments and more conservative MSMEs are all contributing to this slowdown.

Ravelas added that the flat quarter-on-quarter numbers indicate that both lenders and borrowers are in a ‘wait-and-see’ mode, looking for clearer signals on rates and demand.

Moving forward, he said there is a need to ‘unlock’ lending through better risk-sharing mechanisms, stronger credit data, and more incentives for banks to support the sector.

‘But the bigger message is this: MSMEs should not just focus on survival. They need to pivot, adapt, and repurpose their business models to fit the new economic landscape,’ Ravelas said.

‘In today’s environment, adaptability, not just access to credit, is what will drive sustainable growth,’ he added.

The approval of the 2026 Strategic Investment Priority Plan (SIPP) through Memorandum Order No. 47 signed by President Ferdinand Marcos Jr. on May 21, 2026 marks an important step in the government’s continuing effort to attract investments in the Philippines through the grant of the investment incentive system under the Corporate Recovery and Tax Incentives for Enterprises (CREATE MORE) Act.

If an industry or project falls under the SIPP list, it may be eligible for registration with Investment Promotion Agencies (IPAs) such as the Board of Investments (BOI), the Philippine Economic Zone Authority (PEZA), and other investment promotion bodies. Once registered and approved, enterprises may avail themselves of incentives under the Tax Code, subject to compliance with CREATE MORE rules and requirements of the concerned IPAs.

Under the Tax Code, as amended, the Fiscal Incentives Review Board (FIRB) and IPAs may grant tax incentives only to the extent that a registered project or activity is included in the duly approved SIPP. Eligibility for incentives is directly tied to national priority activities and other policy considerations such as capital investment and job creation. The SIPP serves as the central reference point in determining which economic activities may qualify for available tax incentives as provided under the Tax Code, as amended. Projects or activities not listed in the SIPP shall be automatically disapproved.

The 2026 SIPP retains the usual three-tier structure but its content shows a clearer shift toward long-term economic transformation and more targeted industrial policy.

Tier I continues to cover foundational and enabling sectors including modern agriculture, manufacturing, information technology, healthcare services, disaster risk reduction and management services, telecommunications sector, pharmaceuticals, semiconductors and electronics, shipbuilding, housing, and air, water, and land transport. It also includes sustainability-driven industries such as industrial and hazardous waste treatment, bulk water treatment and supply, wastewater treatment and related projects.

The continued inclusion of agriculture is particularly important as we are still facing scarcity of food supply and rising prices of basic commodities. Despite being an agricultural economy, we still import significant volumes of basic food products such as rice, corn, meat, and other agricultural goods. By keeping agriculture within Tier I, the SIPP highlights the need to improve productivity, modernize farming systems, and strengthen food security. It likewise signals government support for investments in farm mechanization, irrigation systems, post-harvest facilities, and agribusiness value chains that can help reduce dependence on imports.

Fisheries and aquaculture carry the same importance. As an archipelagic nation, the Philippines has vast marine resources, yet the fishery and aquaculture industry remains underdeveloped in terms of production capabilities, processing, cold chain logistics, and export competitiveness. The inclusion of fishery and aquaculture activities creates room for investments in fish processing facilities, cold storage systems, and export-oriented aquaculture operations that can raise income in coastal communities and improve our country’s food supply. The inflow of investments in our coastal communities will certainly help improve the lives of our marginalized fishing communities. The Philippines has one of the longest coastlines in the world, so it makes sense to attract more investments in the aquaculture sector.

Tier II shifts the focus to strategic industries including defense-related services, desalination technologies, electric vehicle infrastructure, crude oil refining, renewable energy, sustainable aviation fuel, and health and food security-related services.

The inclusion of renewable energy and electric vehicle infrastructure is particularly significant as it reflects the government’s effort to reduce pollution, lower dependence on imported fuel, and support the transition to cleaner transport systems. Crude oil refining and desalination technologies also highlight practical economic concerns as energy security and water security remain key constraints in many parts of the country particularly in the urban areas.

Tier III focuses on frontier and high-technology sectors such as artificial intelligence, cybersecurity, quantum computing, hydrogen energy, nuclear-related technologies, advanced research and development, aerospace, modern biotechnology, and the production and adoption of new hybrid seeds, among others. The Philippines truly needs to develop these sectors to keep pace with global progress and development.

In fine, the 2026 SIPP is a positive development as it clearly identifies priority sectors that investors may consider in doing business into the Philippine soil. Clear policy direction is important as it allows investors to align their long-term plans with government priorities.

The author is a partner of Du-Baladad and Associates Law Offices (BDB Law) (www.bdblaw.com.ph).

The article is for general information only and is not intended, nor should be construed as a substitute for tax, legal, or financial advice on any specific matter. Applicability of this article to any actual or particular tax or legal issue should be supported, therefore, by a professional study or advice. If you have any comments or questions concerning the article, you may e-mail the author at rodel.unciano@bdblaw.com.ph or call 8403-2001 local 380.