President Marcos’s Second Report to the Nation

On 24 July 2023, President Ferdinand Marcos Jr. delivered his second State of the Nation Address at the at the House of Representatives in Quezon City. The President enumerated the administration’s achievements in the past year and laid out his priority measures for the future. Below are some key points relevant for the business and investment sector in the Philippines.

“While the global prospects were bleak, our economy posted a 7.6 percent growth in 2022 – our highest growth rate in 46 years."

Inflation has always been a problem, not just in the Philippines but all over the world in the post-pandemic economic recovery. Nevertheless, the President claimed a partial victory from the economic impact of the pandemic through the policies created and stated in the Medium-Term Fiscal Framework that led to the increase of the GDP. As mentioned above, the Philippines has currently one of the highest economic growth rates, not only compared to its own history but also within Asia and the world. The e-commerce industry has boomed, contributing 2 trillion pesos, the equivalent of 9.4 percent of the country’s GDP.

“The Fund shall be used to make high-impact and profitable investments, such as the Build-Better-More program.”

With a 8.3 trillion peso allotted fund for the 194 projects under the Build-Better-More program, this program covers investments in the areas of physical connectivity, water resources, agriculture, health, digital connectivity, and energy. In principal, the program is a continuation of the Build-Build-Build program under the previous administration.

“From January to June this year, we have received 3 million international visitors. The number is already 62 percent of our 4.8 million target for the entire year.”

Philippine tourism has been a great contributor to the country´s economic growth through the years. This has improved the livelihood of more than 5 million citizens, and continuously provides more resource generating opportunities. This also attracts foreign visitors to invest in the Philippines, therefore keeping the business environment in order and governed by the rules of law is a priority.

“I urge the government to enact a new government Procurement Law and a new Government Auditing Code.”

The current Philippine Procurement Law is 10 years old and has ostensibly not prevented issues over the years with regard to the questionable contracts and biddings. The aim is for the law to ensure transparency in the process of procurement and to be more attuned to these changing times.

“A friend to all and enemy of none – has proven effective.”

It is to be noted that the economic missions have yielded an estimated total investment value of 3.9 trillion pesos or 71 billion US dollars with a potential to generate 175,000 jobs.

President Marcos capped off his speech with his administration´s new slogan, “The ‘New Philippines’ has arrived.”

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