Category: Business Mirror

An international study, led by University of the Philippines (UP) biologists, found out that the movement and habitats of flying foxes can help in land-use planning and conservation strategies that protect both biodiversity and public health.

Flying foxes are large fruit bats that primarily feed on fruits and flowers. They are highly mobile, traveling long distances in search of seasonal food sources. Some have been recorded flying more than 20 kilometers from their sleeping area in a single night to forage, easily crossing islands and even international borders.

Over a year, flying foxes can travel more than 6,000 kilometers, making them among the most far-ranging bats in the world. They often fly too far and too fast for humans to accurately follow their movements.

To better understand how flying foxes move and use different habitats, biologists from the UP Diliman-College of Science’s Institute of Biology (UPD-CS IB), along with other researchers, captured nine flying foxes from three species and fitted them with lightweight GPS collars to track their movements, said Eunice Jean C. Patron of UPD-CS Science Communications.

The flying foxes were the golden-crowned, Acerodon jubatus; the large flying fox, Pteropus vampyrus; and the small flying fox, P. hypomelanus.

The researchers were Rio Renato Constantino, Czarina Espiritu, Maria Sabrina Tabeta, Simeon Gabriel Bejar, and Dr. Mariano Roy Duya of the UPD-CS IB collaborated with Kirk Taray, Jezryl Jaeger Garcia, Dorothy Mariano, Dr. Mary Grace Dacuma, and Dr. Phillip Alviola of UP Los Baños.

With them were Sophie Borthwick, Dr. Dolyce Low, and Dr. Ian Mendenhall of Duke-NUS Medical School, Singapore; Dr. Eric Laing of Uniformed Services University, Bethesda, USA.

Dr. Catalino Demetria and Dr. Fedelino Malbas of the Research Institute for Tropical Medicine were also among the researchers.

‘There’s just not a lot of data about flying fox movements in the Philippines. There have only been two studies about it so far, and both for the same two species [A. jubatus and P. vampyrus] and in the same place [Subic], which forms a fraction of these species’ range. Meanwhile, no such studies have been done for P. hypomelanus at all, anywhere,’ Constantino shared.

While the flying foxes slept, the researchers quietly approached them with handheld antennas to download the GPS movement data from their collars.

Although the limited sample size makes it difficult to generalize the findings to the wider population, the data suggest that A. jubatus and P. vampyrus may travel farther than P. hypomelanus.

They differ in how consistently they return to the same roosts, often revisit their feeding sites, and use a wide range of habitats-including built-up areas and farmlands heavily modified by humans.

Constantino found the elusive flying foxes’ movement patterns a fascinating area of study.

‘By learning where they go, we learn more about their habitat use, what kinds of places they like to frequent. Do they stay in forests? Do they visit cities often?’ he said. ‘At sunset they fly out of the roost and disappear into the night. Where do they go? That’s what we wanted to answer.’

Understanding how flying foxes move across different environments can help inform their conservation and management.

‘They serve a number of important ecological functions, among them seed dispersal. After a flying fox eats fruit, it poops out the seed, often a considerable distance away from the tree where it obtained its meal. In this way, flying foxes help maintain fruiting tree populations and help forest regeneration,’ Constantino explained.

It is important to protect known flying fox roosts and minimize disturbance whenever possible.

‘If you don’t disturb them, they won’t go away; and if you know where they are, you can avoid them,’ Constantino said.

The study can help inform land-use planning and conservation strategies that protect both biodiversity and public health.

The study, ‘Movement patterns of three species of flying foxes across human-modified landscapes in the Philippines,’ was published in Mammalia, an international, multidisciplinary, bimonthly journal devoted to the inventory, analysis, and interpretation of mammalian diversity.

TEAM North will open its title defense in the International Container Terminal Services Inc. Elite Junior Philippine Golf Tour (JPGT) Finals with a simple formula: Play clean, stay patient and keep the pressure on until host South cracks.

But with South armed with a home-course familiarity, a deeper pool of battle-tested qualifiers and a determined bid to avenge last year’s defeat, North knows it cannot afford to take anything for granted when the Ryder Cup-style championship gets under way Tuesday at Pueblo de Oro Golf and Country Club in Cagayan de Oro City.

Coach Joey Anciano has stressed teamwork and smart decision-making as the keys to North’s campaign, particularly in the opening four-ball and foursomes matches where partnerships and momentum can quickly swing the complexion of the competition.

‘Our main focus is teamwork and keeping the pressure on. In both formats, we want our players to play smart, stay patient, and trust their partners,’ Anciano said. ‘But the goal is to play clean golf and let them make the mistakes.’

That approach will be tested immediately as North faces a South side determined to turn its local knowledge into an early lead.

The defending champion North stormed to a commanding 26 1/2-21 1/2 victory over South in last year’s inaugural showdown at The Country Club, and Anciano’s charges are confident they have enough depth and firepower to reprise that performance.

With points at a premium across all age groups, including the 7-10, 11-14 and 15-18 categories, North knows that depth could prove just as important as star power.

‘The great thing about this team is that every single player is strong, so no matter how we order our pairs, we’re confident we can win points from the very first match to the last,’ Anciano said. ‘We’ll save the final order for game day.’

In the mid-1970s, a distinct rhythm reshaped Philippine airwaves. Known as the Manila Sound, this revolutionary movement swept past foreign hits with a smooth blend of disco, funk, soul, and soft rock.

Pioneered by acts like VST and Co. and Hotdog, the real pull of Manila Sound lay in its natural, everyday Taglish that spoke directly to urban listeners. Vinyl tracks such as ‘Ikaw ang Miss Universe ng Buhay Ko’ and ‘T.L. Ako sa ‘Yo’ turned contemporary city slang into radio gold, while dance floor staples like ‘Awitin Mo at Isasayaw Ko’ showed that homegrown studios could deliver production values as sharp as any album coming from the US or Europe.

Beyond the basslines and brass arrangements, the genre gave young Filipinos an upbeat escape during the Martial Law years. It proved to radio programmers and record labels that Pinoy audiences wanted music reflecting their own lives. While the initial surge eventually paved the way for the broader Original Pilipino Music (OPM) boom of the 1980s, Manila Sound remains the blueprint for modern Philippine pop – capturing a time when the local recording industry truly found its voice.

A Living Legacy: The Reunion Concert Series

This genre’s enduring power was on full display when the Newport Performing Arts Theater mounted Sumayaw, Sumunod: The Manila Sound Reunion a fortnight ago. The milestone concert featured the original architects of Pinoy pop music for one night that bridged generations of OPM fans.

The all-star lineup reads like a directory of Philippine music history: Monet Gaskell and Male Rigor representing the infectious harmonies of VST and Co.; Joey Abando of The Boyfriends delivering disco anthems and signature ballads alongside Nonoy Tan and Rey Magtoto of Wadab, the Davao-based soul group; Jojo Grospe, Joel Macanaya, and Ramon Villanueva of jukebox pop pioneer The Rainmakers.

Adding multi-textured depth to the evening were jazz-funk chanteuse Pat Castillo of the legendary Circus Band, acknowledged ‘Queen of Pinoy Rock’ Sampaguita, pop hitmaker Gino Padilla, folk-rock diva Lolita Carbon of the trailblazing Asin Band, and guitarist-lead vocalist Mon Espia of acoustic-blues exponent Labuyo.

Grooving to the Beat of Vintage Pinoy Pop

From the opening number to the final encore, the Newport theater transformed into a cross-generational disco. Boomers and Gen-Xers who grew up cassette-taping radio broadcasts were dancing the swing. Millennials and Gen-Zees who discovered the retro genre through streaming playlists were singing the lyrics word-for-word. The entire performance was indeed a collective celebration of Filipino identity.

Among the standouts were ‘Sa Jeepney,’ and ‘Pag Tumatagal Lalong Tumitibay’ by the Wadab duo; Labuyo’s ‘Tuloy Pa Rin Ako’ by Mon Espia; ‘Aso’t Pusa’ by Pat Castillo; ‘Closer I Get to You’ by Gino Padilla; The Boyfriends’ ‘Dahil Mahal Kita,’ ‘Nais Ko Malaman Mo’ by Joey Abando; ‘Masdan Mo ang Kapaligiran’ by Lolita Carbon;and ‘Binibini’ by The Rainmakers trio.

What brought the house down toward the concert’s homestretch were Sampaguita’s high-energy renditions of ‘Bonggahan,’ ‘Nosibalasi’ and ‘Laguna,’ as well as the VST duo’s ‘Ipagpatawad Mo’ and their medley of their own Pinoy Disco hits that included ‘Disco Fever,’ ‘Swing’ and later in the finale, ‘Magsayawan’ and ‘Awitin Mo.:

Throwback shows like Sumayaw Sumunod and its sequel – last weekend’s Manila, Manila: The Hotdog Tribute Concert – demonstrate that Manila Sound is not a mere relic of a bygone decade. Its tight grooves and conversational lyrics tap straight into the heart of Filipino pop culture. 50 years after Manila Sound’s inception, it is still prevalent in the nation’s consciousness akin to having a last song syndrome. What started as an urban youth trend has evolved into a timeless cultural institution.

Prelude to the Annie Batungbakal Musical

Sumayaw Sumunod and Manila, Manila served as the grand overture for Newport World Resorts and Viva Communications’ next theatrical co-production debuting in September 2026 titled Bongga Ka, ‘Day!: The Annie Batungbakal Musical. By gathering legendary artists under the spotlight, these twin concerts set a vibrant precedent for the upcoming spectacle centered on the Hotdog Band’s iconic catalog.

‘Annie Batungbakal’ transforms the story of the nightlife-loving department store dispatsadora into a full-scale tribute to Pinoy Pop culture. Just as the nostalgic reunion concerts showcased the ageless appeal of musical classics, this stage adaptation of the eponymous 1979 movie will further boost the post-pandemic resurgence of Philippine theater as the ‘Broadway of Asia.’ It also promises to introduce the gold standard of Manila Sound to a new generation of theatergoers.

Together, such spectacular productions reinforce a singular truth: the groove that defined a golden era continues to inspire and entertain Filipinos half a century later. Bravo!

Alas Pilipinas is emerging from the FIVB Volleyball Girls’ U17 World Championship with a much better idea of what it can become.

The girls are still discovering new dimensions to its game even as its breakthrough campaign comes to a close with Megan Hernandez, Jello Mauricio and Jhenica Sadia, who had seen varying amounts of court time, combining with established scorers Xyz Rayco and Caera Celis to give Alas Pilipinas a different look on offense.

The process had been tough for the recently-reassembled squad, but team manager Karl Chan believes the experience will ultimately make the team better.

‘What matters is that we learn from every game and use those lessons to get better,’ Chan said. ‘Alas Pilipinas has played well despite having so little time to build chemistry.’

‘This team had been together for only about a week before we left for Chile, while you can see that the other teams have had much more time to play and develop together,’ he added.

The latest discovery came in the rematch against Venezuela on Saturday as Mauricio helped provide the needed third-set spark on the right side-the 14-year-old lefty finishing with nine points for her biggest output in the championship.

Hernandez and Sadia also came up with timely contributions in that stretch, although the Philippines’s comeback bid ultimately fell short, 22-25, 15-25, 25-20, 22-25.

Whether those discoveries will translate to another competitive performance will be tested against No. 22 Czechia in the battle for 15th place on Sunday at Parque Estadio Nacional.

Czechia is coming off a five-set loss to Peru and will also try to finish with a flourish.

Still the best finish for Alas

THE Alas Pilipinas Girls have learned that having the firepower to upset some of the best and being prepared to sustain that level in the demanding grind of a world championship are two entirely different things.

Coach Edwin Leyva and the rest of the coaching staff reminded the Alas Pilipinas Girls that they have done what nobody saw coming by reaching the Round of 16-on the strength of victories over No. 8 Mexico and No 20 Tunisia-and that the losses that followed, also against higher-rated foes, don’t diminish what they had accomplished. By making the Round of 16, this Alas Pilipinas squad has achieved the best finish ever by a Philippine volleyball team in any world championship.

The Bryan Bagunas-led squad fell just short of the Round of 16 in the FIVB Volleyball Men’s World Championship last year in the Philippines, while a team placed 18th in the 1974 FIVB Women’s Volleyball World Championship in Mexico.

Entering the tournament No. 25 in the world, the Philippines is the second-lowest-ranked team in the 24-team field, ahead of only No. 27 Spain.

Alas Pilipinas Girls-backed by the Philippine Sports Commission, Philippine Olympic Committee and Asics-have punched well above their weight.

They were determined to turn the tables on Venezuela after losing in five sets in pool play, and even had the edge in blocks, 7-5, and serves, 11-7, in Saturday’s playoff. But the young Filipinas couldn’t match Venezuela’s attacking output, with the South Americans dominating, 59-45.

Rayco, the top scorer for the Philippine team that earned its place in this world championship through the Asian Volleyball Confederation U16 Championship, showed the way for Alas with 15 points on 11 attacks, three aces and a block.

Caera Celis continued her solid play and scored 14 on 13 attacks and a block. Megan Hernandez delivered five points and Jhenica Sadia added three.

Amanda Estefania Pacheco Gonzalez led Venezuela with 17 points, while Colina Lezama Yalesca Lileagne scored 15.

The USA reached the final without dropping a set, sweeping aside No. 1 and defending champion China, 25-13, 25-15, 25-19.

Turkiye earned the other spot in the title match after defeating Chinese Taipei, 25-15, 25-22, 25-22.

‘He’s back for good,’ Wowee Posadas says of Bong Peñera – the esteemed Filipino musician and composer who left the country in 1980 and had been based in the United States for over 30 years.

Posadas will host a homecoming gig for Peñera on Sunday, Aug. 16, at 19 East, which will reunite him with drummer Cesar Yumping and bassist Paul Candelaria of the Batucada, plus young singer Yanni Dee.

Peñera was a top-quality act in the ’70s. If Pinoy rock, folk, and pop comprised the mass-audience firmament of OPM, jazz occupied a special spot with Peñera as one of its purveyors.

He was said to have started tinkering with the piano at age 5, later entering the Centro Escolar University Conservatory of Music in 1968 while forming a jazz band named Shades of Latin, and playing his first gigs at a place called Carbungco’s in Quezon City.

By 1973, he had a new group, the Batucada – named after a percussive style of samba, an Afro-Brazilian dance that became a trend-setting music genre.

Peñera adopted the rhythms of samba and its laid-back cousin, bossa nova, melding the music with a Filipino touch. Pretty soon, the Batucada was going places and drawing audiences at Pension Filipina, Bacchus Pub, and Batik Inn.

And then things got more interesting. In a span of three years, Peñera recorded a trilogy of all-original albums: ‘A Samba Song’ (1976), ‘Batucada sa Calesa’ (’77), and ‘Bong Peñera’ (’78).

Fans loved ‘A Samba Song’ because it was different – not noisy but not too soft either. It introduced the Batucada sound, in which the repetitive beats and rhythms of drums (Ding Poblete), bass (Sonny Nabong), and percussion (Nick Boogie) did not have to be boring, especially if enhanced by the flute (Pete Canzon).

Peñera himself sang intimately on several numbers, as if he were beside you while playing the piano with vibrancy.

The title track featured two versions – one with Portuguese lyrics sung by a Brazilian, Maria Dulce Soares de Silva, and the other with Filipino/English lines by Peñeraand Norma Ramirez. In all instances, the message was simple: Life can be more fun if one danced the samba with a partner.

The other songs were moody, personal reflections, including one on his mother (‘Rosita Maria), the inspiration behind the independently produced album’s label, Penny Rose.

The follow-up release, ‘Batucada sa Calesa,’ bore Vicor Records’ Blackgold imprint, with a CBS Sony logo signifying its international release, which meant Peñera had arrived. The title track captured the mood and spirit of the Filipino fiesta while assimilating a musical branch of Latin America.

At the time, the Batucada (Nabong, Yumping, guitarist Jun Enriquez, and female vocalist Mila Garcia) was one of the live music attractions at the Hyatt Regency’s Calesa Bar – hence the album title.

It also contained a track Peñera wrote for his wife (‘Samba for Luisa’), as well as lyrical explorations of where the music could take him – ‘Beat Contemplation,’ originally from the first album but with vocals; ‘Two Themed Samba,’ a playful romp featuring acoustic and electric piano; ‘Lullaby,’ a modern kundiman take on someone putting a lover to sleep; ‘Go,’ a bittersweet view of splitting up; and ‘Tell Me,’ about the anxieties of a relationship on the rocks.

In his third self-titled album, Peñera went on an adventure – adding flugelhorn and trumpet (Fred Concepcion), saxophone (Rudy Sugcang), and two sets of session players to his basic quartet lineup: Candelaria and Sonny Tolentino alternating on bass; Fred Alidon and Edmond Fortuno on drums; with Dingdong and Totoy Boogie on percussion; and Pat Castillo and Patrice Elaine Balquiedra singing one track each.

Imagine Anak Bayan’s Fortuno and Tolentino switching off their rock ‘n’ roll chops and anchoring the three-part movement of the Latin jazz instrumental ‘Ode,’ and accompanying Castillo in the swinging ‘Love Notes.’

Peñera also includes his interpretation of ‘Sa Dako Pa Roon’ from the stage musical ‘Sinta,’ whose soundtrack in the movie version he arranged.

All told, these lead to a great listening experience, rain or shine. If you don’t have the vinyl records, YouTube is a good alternative.

Better yet, go to 19 East this Sunday night. Entrance is free.

SOME songs begin with a melody. Others start with a memory.

And for Taiwanese singer-songwriter Shi Shi, the starting point for her latest EP was something even more familiar: taste.

Not simply the taste of food, but of moments that linger long after they have passed-the sweetness of childhood, the bitterness of heartbreak, the comfort of lifelong friendships, and the emotions that often exist somewhere in between.

Those contrasts became the foundation of The Taste Of…, a five-track multilingual Extended Play (EP) released on July 10 after nearly two years without a full project.

Featuring songs in English, Mandarin and Korean, the record marks Shi Shi’s first step toward reaching a wider international audience while remaining rooted in the deeply personal stories that have defined her songwriting.

‘The concept is the contrast of feelings,’ Shi Shi said in a recent media roundtable. ‘It is about bitterness and sweetness. It also means there were a lot of emotions that I felt during these past two years.’

Every language finds its place

FOLLOWING her previous album Boomerang in December 2023, Shi Shi resisted the urge to immediately produce another full-length record.

Instead, she spent the past two years exploring new sounds, traveling to Los Angeles and South Korea to collaborate with producers from different musical backgrounds. The result? An EP that reflects not only different emotions but different places.

‘So these five songs are from different countries,’ she explained. ‘I’m still exploring, and this EP includes many different vibes. It also expresses different emotions.’

Yet despite working across cultures, Shi Shi said choosing the language for each song was never a calculated decision. Instead, she lets the music decide. ‘When I write in three languages, I feel they find me,’ she explained.

‘There are moments when I write a verse, and it doesn’t feel right, so I switch to Mandarin or Korean, and suddenly it fits.’

Rather than translating lyrics from one language into another, Shi Shi believes every melody naturally carries the language that best expresses its emotion. ‘I think the melodies find the right language.’

Food as memory

THE EP’s title naturally invites listeners to think about food, and for Shi Shi, that connection is intentional.

Food has always occupied an important place in her life-not only because she enjoys cooking and dining, but because she also owns a restaurant in Taiwan. ‘Food is a big pleasure for me,’ she said with a laugh. ‘I really love food. I love eating.’

But beyond enjoyment, she sees food as something that carries emotions. It becomes part of family traditions, childhood memories, and friendships that people often remember long after individual conversations have faded.

That idea is perhaps most visible in ‘Tteokbokki,’ one of the EP’s tracks, which is named after the popular Korean street food.

Slowing down without stopping

ALTHOUGH ‘The Taste Of…’ arrives after two years without a major release, Shi Shi is quick to clarify that she never truly disappeared.

‘I kept working. I just didn’t release an album,’ she said.

After releasing six full-length records over more than a decade, she felt it was time to approach music differently. Instead of immediately beginning another album, she focused on individual singles before allowing them to come together as an EP.

‘I’ve released six albums now,’ she said. ‘I don’t think I really took a rest for the last 10 or 12 years.’

The slower pace, she explained, allows her to communicate her ideas more intentionally. ‘I’m trying to take it slow,’ she said. ‘I hope I can express what I really want to express.’

Also, with two Golden Melody Awards and multiple nominations already under her belt, Shi Shi has achieved both critical recognition and commercial success.

Yet she insists those milestones are not what keeps her making music. ‘I just want to make music,’ she said. ‘I love to sing.’

The second reason, she added, is just as important. ‘My fans,’ saying ‘There are a lot of people listening to my music, so I cannot stop. I want to make more music for them to listen to.’

A taste of what’s next

ONE country Shi Shi hopes to connect with more closely is the Philippines.

Asked whether she would consider collaborating with a Filipino artist, she immediately turned the question back. ‘Do you have any recommendations?’ she asked with a smile.

She recalled watching Filipino girl group BINI perform at Coachella and said she was impressed by the group’s stage presence. ‘I saw BINI’s show,’ she said. ‘That was so cool.’

For now, however, Shi Shi’s attention remains on introducing ‘The Taste Of…’ to new listeners around the world. And if she hopes listeners remember one thing after hearing it, perhaps it is that some of life’s strongest memories are not only seen or heard.

THE Department of Budget and Management (DBM) is backing calls to open congressional bicameral budget deliberations to greater public scrutiny while seeking to further reduce unprogrammed appropriations below the level proposed for 2027.

At the Economic Journalists Association of the Philippines’ forum on Friday, Budget Secretary Kim Robert C. De Leon said the agency welcomes and supports efforts towards greater transparency in the bicameral process.

‘An open bicam would be consistent with the Department’s continuing push for a more transparent, accountable and participatory budget process,’ De Leon said.

Doing so would enable the public to better understand how decisions involving taxpayers’ money are made, he added. ‘When people can see how public funds are deliberated and allocated, we strengthen accountability and ultimately public trust,’ he said.

Last year, the bicam sessions on the P6.793-trillion 2026 national budget were live-streamed for the first time to the public.

During the sessions, lawmakers from both the House of Representatives and the Senate reconciled differences between the House and Senate versions of the General Appropriations Bill.

This week, the DBM submitted separately to both legislative chambers the proposed P7.2-trillion 2027 National Expenditure Program (NEP).

Next year’s proposed national budget is 6 percent higher than this year’s allocation and is equivalent to 21.7 percent of the country’s gross domestic product.

Nueva Ecija Rep. Mikaela Suansing, House Committee on Appropriations chairman, said the budget process will be transparent as all hearings of the committee and the Budget Amendments Review Subcommittee will be live-streamed.

‘We recognize that the conduct of the Bicameral Conference Committee ultimately rests with Congress, and we fully respect its constitutional authority, rules and procedures,’ De Leon said.

But should Congress decide to open the bicameral proceedings, he said DBM would provide technical information, budget documents and clarifications to ensure that discussions are accurate and accessible to the public.

‘For us, greater transparency strengthens, not complicates, the budget process. We have nothing to gain from making the budget difficult to understand,’ De Leon said.

Budget watchdog Social Watch Philippines has said that the bicam has gained a reputation as a ‘third chamber’ where new budget items are inserted without prior deliberation, including the Ayuda sa Kapos ang Kita Program (Akap) allocations.

Bicam meetings have been notorious for new budget items being inserted without prior deliberation, as well as for inflating the contested unprogrammed appropriations.

De Leon said the DBM is open to further reducing unprogrammed appropriations, which amounts to P111.984 billion, or about 1.6 percent of next year’s proposed budget.

While there is no fixed floor for unprogrammed appropriations, De Leon said the government could bring the amount down further if it has enough fiscal space and if the project pipeline allows it.

‘The lower, the better,’ De Leon said, while stressing that the appropriate level would depend on the purpose and nature of the projects that need to be funded.

Unprogrammed appropriations are standby spending authorities approved by Congress that may only be used if specific legal conditions are met, such as the availability of additional revenues beyond projections or the realization of new loan proceeds. These funds are not automatically released and remain subject to strict rules and validation.

THE Philippines’s efforts to rein in its fiscal deficit are likely to plateau, as ‘ambitious’ revenue targets prove difficult to meet and mounting debt service costs eat up more government resources, according to BMI, a unit of Fitch Solutions.

BMI said in a report on Friday that it forecasts a ‘slow’ fiscal consolidation, with the budget deficit narrowing from 5.4 percent of gross domestic product (GDP) in 2026 to 5.1 percent in 2027-still in line with the government’s target.

‘Risks are tilted towards a wider fiscal deficit,’ it said, noting that revenue targets may prove ‘difficult to achieve’ despite the new tax reforms lobbied by the government.

The Department of Finance has proposed a comprehensive tax reform package, dubbed the ‘Progress Bill,’ which seeks to raise the personal income tax-exempt threshold and remove the minimum corporate income tax on small businesses, while increasing the excise taxes on sin products to offset revenue losses. This is expected to generate a net revenue gain of P47.9 billion annually over 2027 to 2030.

However, the measure has not yet been incorporated into next year’s P4.851 trillion tax revenue target.

‘The government’s tax revenue target appears ambitious at first glance,’ BMI said. ‘While easing inflation and higher Metro Manila minimum wages-which will reportedly benefit over 1.1 million workers-should support consumption and VAT collections in 2027, we doubt that this alone will be sufficient to hit the target.’

Still, the revenue-to-GDP ratio is seen to ease modestly from 15.8 percent of GDP in 2026 to 15.7 percent in 2027-also in line with the government’s target.

At the same time, debt servicing, which is becoming more expensive, is expected to strain government finances further as higher interest rates and a weaker peso push up costs, BMI said.

‘The gradual pace of fiscal consolidation will likely sustain this trajectory, consuming more resources that could otherwise be directed towards more productive spending,’ it added.

Budget documents showed that next year’s proposed allocation for debt servicing increased by 16.8 percent to P1.143 trillion from P978.7 billion under the 2026 enacted budget. This is significantly higher than the 6-percent growth in the overall budget worth P7.2 trillion.

BMI projects total government expenditure to decline to 20.8 percent of GDP in 2027 from 21.3 percent in 2026.

Economic services are proposed to receive the largest increase in the 2027 budget, while social services face a reduction. Defense spending growth is also set to moderate from the double-digit pace of the past three budgets.

‘Escalating tensions with Beijing in the South China Sea, especially with increasingly frequent and intense maritime incidents, strengthen the case for higher military outlays,’ BMI said. ‘Yet, defense spending growth is set to ease further in 2027, underscoring the difficult trade-offs imposed by limited fiscal room.’

‘Nothing wrong with having debts’

At a forum organized by the Economic Journalists Association of the Philippines on Friday, Budget Secretary Kim Robert C. De Leon said the government remains committed to gradually reducing the fiscal deficit.

‘Fiscal discipline does not mean refusing to spend, but knowing where to spend, why we are spending, and what the Filipino people should get in return,’ De Leon said.

Despite debt servicing accounting for 15.9 percent of next year’s total budget, De Leon said, ‘there is nothing inherently wrong with a country having debts.’

‘Until the government can generate sufficient resources to fund investments and close our country’s infrastructure and development gaps, we will need to borrow,’ he added.

The debt-to-GDP ratio rose to 66 percent in the second quarter, the highest since 2004. This comes after public debt reached P19.065 trillion, while GDP grew by 2.3 percent.

‘What matters is that money is used for the right purposes and the government can repay it without compromising other essential programs and services,’ De Leon said. ‘Government programs, activities, and projects are not mere expenses, but investments intended to achieve a minimum required economic return.’

NEARLY two weeks ahead of its fourth rate-setting meeting for the year, the central bank said it is still keeping an eye on an ‘unpredictable opponent’ as it is currently caught in the middle of a weaker-than-expected growth rate and a dubious disinflation path.

At the Economic Forum hosted by the Economic Journalists Association of the Philippines (EJAP) on Friday, Bangko Sentral ng Pilipinas Governor Eli M. Remolona Jr. did not divulge what the Monetary Board intends to do at its upcoming rate-setting meeting as it still looking at several data points, including the price of oil, and sentiments of businesses and consumers.

Asked which data points are still being scrutinized apart from the latest inflation and gross domestic product prints, Remolona told reporters: ‘A lot. Sentiments. [There are several] data points.’

But depending on how strong the price pressure seems to be, the BSP governor said the central bank is looking at expectations, at how the other items in the [consumer price index] CPI respond to the continuing global shocks, adding, ‘that will affect our policy strategy.’

In terms of inflation, Remolona said the central bank cannot do very much about inflation arising directly from global supply shocks.

‘What we can do is try to temper inflation that is found in the second-round goods,’ he said, adding that the second-round effects of supply shocks are ‘very close’ to what core inflation is.

However, with weaker-than-expected growth rate, Remolona dropped a hint that the BSP may become less aggressive in terms of raising the policy rate in order to tame inflation.

‘So with the growth numbers and with the inflation numbers, I think we need a more convincing downard trend for inflation before we can relax,’ the chief of the central bank said.

‘Of course the weaker growth that we’re seeing means we can be less aggressive in trying to tame inflation. But in the face of an unpredictable opponent, oil prices for example, we need to keep our eye on the ball,’ Remolona pointed out.

In his presentation during the forum, Remolona admitted that the central bank was ‘disappointed’ when the 2.3-percent growth print was reported.

‘We were told that GDP growth in the second quarter of 2026 was 2.3 percent. [It was quite low, quite] disappointing and somewhat surprising,’ added Remolona.

The BSP governor bared that the 2.3-percent growth outcome in the second quarter of 2026 was way below the central bank’s 3.2-percent estimate, which, as it is, is ‘still weak’ because the potential growth of the Philippine economy is at 5.5 to 5.8 percent.

‘That means weak growth remains a consideration. I think that’s all I can say. I can’t tell you what we will do,’ added Remolona.

In an earlier interview with reporters, the BSP governor answered in the affirmative when he was asked if the pressure on the central bank to raise the key interest rate was reduced following the 2.3-percent GDP data release.

The BSP has raised the key interest rate by a total of 50 basis points since the start of the conflict in the Middle East on February 28, delivering two separate quarter-point rate hikes at the Monetary Board’s rate-setting meetings held on April 23 and June 18.

These policy actions brought the Target Reverse Repurchase (RRP) rate to 4.75 percent.

At its June 18 meeting, the Monetary Board decided that monetary policy tightening was ‘warranted’ to keep inflation expectations anchored and mitigate the risk of second-round effects.

‘The measured monetary policy action will also complement fiscal measures in supporting steady consumption and strengthening business sentiment,’ the central bank also said in a statement on June 18.

AMID slower second quarter growth and still elevated inflation, the country’s economic managers remain confident that the Philippines has yet to enter a period of stagflation.

The Organisation for Economic Co-operation and Development (OECD) said there is no single definition of stagflation, but it is generally understood as a combination of slow or zero economic growth and high inflation. The condition is also commonly associated with rising or high unemployment.

For Socioeconomic Planning Secretary Arsenio M. Balisacan, calling the slowdown in economic growth over the last three quarters as ‘stagflation’ would be ‘stretching it too far.’

The economy ended 2025 with weaker-than-expected growth of 3 percent in the fourth quarter. Growth then slowed further to 2.8 percent in the first quarter of 2026 and 2.3 percent in the second quarter.

Inflation, meanwhile, eased for the third straight month to 6.2 percent in July from 6.4 percent in June, extending its decline from a 7.2 percent peak in April.

Balisacan stressed that the economy is still posting ‘quite a good growth’ despite the Middle East conflict, while longer-term labor market trends continue to show declining unemployment and underemployment.

He noted that the economy generated around 4 million new jobs between the first half of 2021 and the first half of 2026, despite losing about 166,000 jobs between the first half of 2025 and the same period this year.

‘In the second half of the year, the economy is likely to be better,’ Balisacan said during the Economic Journalists’ Association of the Philippines (Ejap) economic forum on Friday.

Balisacan said the Department of Budget and Management (DBM) has already released funds that could help spur government spending in the second half and, in turn, support faster economic growth.

He noted that weak public spending had weighed on economic growth, with government spending contracting by nearly 30 percent for two consecutive quarters.

He said this weakness is unlikely to persist in the next two quarters.

Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona Jr. echoed Balisacan’s view, saying stagflation is ‘not a useful term’ for policymakers at the moment.

‘We don’t even think, are we in a stagflation or not? We don’t really care,’ Remolona said.

However, the BSP chief acknowledged that the economy is currently growing below its estimated potential of around 5.5 percent to 5.8 percent, resulting in what the central bank calls an output gap.

An output gap measures the difference between the economy’s actual output and its potential output. A negative gap means the economy is operating below potential, while a positive gap can signal stronger demand and greater inflationary pressure.

‘I think the output gap means we’ve become less aggressive in terms of raising the policy rate in order to tame inflation,’ Remolona said. ‘So we take account of both the weakness of our growth as well as our expectations of inflation.’

For 2026, the Development Budget Coordination Committee (DBCC) targets full-year economic growth of 3.5 percent to 4.5 percent, lower than its previous target of 4 percent to 5 percent.

The economy grew by an average of 2.6 percent in the first half of the year.

The Department of Economy, Planning, and Development (DEPDev) earlier said the economy would need to grow by an average of at least 4.4 percent in the second half to reach the lower end of the government’s revised growth target.