The World Bank has upgraded Vietnam and the Philippines to upper-middle-income status following years of strong economic growth, a move that could boost investor confidence in both countries. Vietnam had been classified as a lower-middle-income economy since 2009, while the Philippines had remained in that category since the late 1980s. The World Bank attributed Vietnam's upgrade to its export-led growth model and the Philippines' broad-based expansion across multiple sectors. Both countries surpassed the World Bank's upper-middle-income threshold of $4,636 in gross national income per capita in 2025, with Vietnam reaching $4,970 and the Philippines $4,850. Philippine officials said the new classification reflects the country's sustained economic resilience, while Vietnam is targeting double-digit economic growth in 2026 through business-friendly reforms and infrastructure investment. Jordan, Micronesia and Sri Lanka were also upgraded to upper-middle-income status, while Togo moved from low-income to lower-middle-income. The World Bank said the share of low-income economies has fallen significantly since 1987. The new status could reduce access to concessional development financing, although Philippine officials said stronger economic fundamentals and improved market access are expected to outweigh the impact.

Gulf Development Public Company Limited has successfully closed its US$600 million offshore syndicated term loan facility, a significant milestone in the company's funding strategy. The facility was initially launched in May 2026 at US$400 million with 3-year and 5-year tranches, and received substantial backing from GULF's relationship banks. Strong demand from lenders enabled the company to exercise its greenshoe option and increase the facility by US$200 million to reach the final amount of US$600 million.

The facility drew participation from 33 banks across Japan, Taiwan, Singapore, China, Hong Kong, the Philippines, India, Macau, and France, with peak demand reaching approximately 4 times the initial facility size. The diverse group of international financial institutions reflects GULF's longstanding relationships with partners and suppliers across its projects.

The strong market response demonstrates lenders' confidence in GULF's robust financial position, disciplined capital management, stable cash flow generation, and proven track record in developing and operating large-scale energy and infrastructure projects. It also recognizes GULF's position as a leading infrastructure and investment group capable of capturing future growth opportunities.

Ms. Yupapin Wangviwat, Chief Financial Officer of GULF Group, stated that the successful completion represents an important milestone in GULF's funding strategy, expanding access to international markets and diversifying financing sources. The strong banking community response reflects confidence in GULF's financial strength and operational track record. GULF's achievement of an 'A' credit rating with a Stable outlook from Japan Credit Rating Agency (JCR), equivalent to Thailand's sovereign rating, further reinforces this confidence. The transaction strengthens existing banking relationships, establishes new partnerships with international lenders, and enhances financial flexibility.

DBS Bank Ltd., Mizuho Bank, Ltd., MUFG Bank, Ltd., Natixis Singapore Branch, Sumitomo Mitsui Banking Corporation Singapore Branch, and United Overseas Bank Limited served as Mandated Lead Arrangers, Underwriters, and Bookrunners, with Mizuho Bank also acting as Facility Agent.

The Student Loan Fund (Kor Sor Sor) has addressed concerns raised on social media regarding borrowers whose salaries were deducted for loan repayment but whose debt balances showed no reduction when checked through the Kor Sor Sor Connect application. Some worried that employer-submitted funds might not have entered the system or were lost. The fund explained that it is currently upgrading its debt payment system, temporarily causing slower-than-usual debt balance updates. The fund assured that employer-submitted funds have not been lost and borrowers will not lose any legal rights. Deputy Manager Anchali Purivitdwatana confirmed the system is undergoing payment upgrades, which may temporarily extend the time needed to reduce debt balances. All borrowers in the salary deduction program through employers will not be affected or lose any legal rights, as the system will backdate payment dates to match actual salary deduction dates. During the system update period, borrowers can verify employer payment submissions through the Kor Sor Sor Connect app by selecting Services > Backdated Payment Records, with payment information appearing within three business days of employer submission. The fund assured borrowers that deducted and submitted funds have not been lost and will process all payment updates in order while recording payment dates according to actual salary deduction dates to fully protect borrowers' legal rights. The fund apologized for the inconvenience and thanked borrowers for their cooperation during the system upgrade.

The government is monitoring the 2027 state welfare card budget allocation of 420 billion baht, which is down from the 4.7 billion baht monthly allocation in 2026. Finance Ministry Permanent Secretary Laweron Saengsonit revealed that if the budget proves insufficient, the government stands ready to supplement it with central funds, following established practice. The government is also preparing to overhaul the entire welfare system to prevent duplicate benefit payments.

Saengsonit disclosed that the Public-Private-Benefit Committee for Grassroots Economy and Social Affairs will meet on July 3rd to finalize the number of applicants who passed screening for the 2026 state welfare card. The results will be presented to the Cabinet for approval on July 7 or 14, with beneficiary names announced on July 17.

While the 2027 budget represents a decrease from 2026 levels, Saengsonit noted that whether it will be sufficient depends on the final number of approved applicants from 2026. "If the allocated budget falls short, we will use central funds to cover the gap, which is the standard practice each year," he said.

Saengsonit emphasized that the government needs to understand how much support each Thai citizen receives and ensure it is adequate without duplication. He highlighted that the Finance Ministry is pushing for implementation of a Negative Income Tax system, which will leverage Big Data to ensure citizens receive appropriate welfare benefits efficiently and eliminate overlap.

Regarding the economy, Saengsonit noted that first-half performance remains solid, bolstered by various government measures. He added that third-quarter growth is expected to receive continued support from the Thailand Helping Thailand Plus program, helping sustain economic momentum.

Gulf Development Public Company Limited has successfully arranged a $600 million offshore syndicated term loan facility from international banking groups, a major step in the company's capital management strategy to expand relationships with new foreign financial institutions. The company initially launched a $400 million foreign loan facility split between 3-year and 5-year tranches, attracting interest from 33 financial institutions that offered credit commitments approximately four times the initial amount. GULF exercised its greenshoe option to allocate an additional $200 million, bringing the total facility to $600 million. The strong response from major international lenders across Japan, Taiwan, Singapore, China, Hong Kong, the Philippines, India, Macau, and France reflects their confidence in GULF's financial position, disciplined capital management, consistent cash generation, and experience with large-scale infrastructure development. This underscores GULF's role as a trusted international infrastructure company with significant potential for growth in digital infrastructure and renewable energy sectors.

Yuphapin Wangwiwat, Chief Financial Officer of the GULF Group, stated that the successful overseas loan arrangement represents a crucial step in GULF's financial strategy, allowing the company to expand its banking relationships beyond the Thai baht bond market and increase operational flexibility for business growth. The overwhelming response from foreign financial institutions, offering credit four times higher than initially sought, demonstrates their confidence in the company's financial strength, operational performance, and long-term growth vision. This confidence is further supported by GULF's 'A' credit rating with a stable outlook from Japan Credit Rating Agency (JCR), equivalent to Thailand's sovereign credit rating.

The transaction is managed by leading banks including DBS Bank, Mizuho Bank, MUFG Bank, Natixis (Singapore branch), Sumitomo Mitsui Banking Corporation (Singapore branch), and United Overseas Bank, serving as Mandated Lead Arrangers, Underwriters, and Bookrunners. Mizuho Bank also serves as the Facility Agent overseeing the syndicate.