Japan: Japan's support for the Philippines' growth will 'remain unchanged," the Japanese Embassy in Manila said as it welcomed the country's upgrade to an upper-middle income status. 'Our fundamental policy of supporting the Philippines' growth remains unchanged, and we intend to continue providing strong support by utilizing a variety of tools, such as technical cooperation and the promotion of development and investment in partnership with the private sector,' the embassy said in a text message to the Philippine News Agency on Thursday night.

According to Philippines News Agency, the World Bank reported on Wednesday that the Philippines' gross national income (GNI) per capita was USD4,850, surpassing the USD4,636 threshold required to achieve upper-middle income country (UMIC) status. In light of this development, the Japanese Embassy indicated that if the Philippines maintains this status, 'it is possible that the terms for future ODA (Official Development Assistance) disbursements will be reviewed' in accordance with the Organization for Economic Cooperation and Development (OECD) rules.

The embassy emphasized that this transition is a natural reflection of the Philippines' economic accomplishments. 'As the Philippines further develops as a UMIC and achieves independent growth, Japan will continue to support the country at various levels as a reliable long-term partner,' it stated. Official Development Assistance (ODA) typically includes loans or grants aimed at fostering sustainable social and economic development for the benefit of the populace.

Countries with low- and middle-income status qualify for ODA, but reaching UMIC status might eventually result in reduced access to concessional ODAs. A country is only removed from the ODA-eligible list once it attains a high-income economy status, defined as having a GNI per capita exceeding USD14,375.

The Japanese Embassy highlighted that the Philippines' transition to a UMIC showcases the outcomes of its economic progress and presents an excellent opportunity to elevate the bilateral relationship to a new level. 'Japan is willing to continue its cooperation with the Philippines, taking into account the changing development stage, priorities, roles of the private sector, and other related elements,' it concluded.