State of the Nation Address (SONA)

       

    

Below we would like to provide an overview of the SONA, focusing on Economic Status and Development primarily for “Mittel​stand geprägte Weltmarktführer” intending to do or already doing business in the Philippines.

    

In summary, the Philippine economy is on a positive trajectory overall, with declining inflation, low unemployment and growing investor confidence, with GDP growth of 5.7 % in 2024 and projected growth of 6.0 % (2025), 6.4 % (2026) and 6.0 % (2027).​ 

    

This widely positive outlook is also echoed by major institutions such as the Asian Development Bank, World Bank, ASEAN Macroeconomic Research Office etc.

    

To strengthen the country's industrial base, the government plans to prioritize the sectors of semiconductors, mining, and textiles for investment, development, and incentives. In addition, the SONA highlighted several other sectors, such as Agriculture & Agribusiness, Energy & Renewables, Tourism & Transport, Education & Technical-Vocational Training as well as Healthcare & Social Services. 

      

Furthermore, Micro, Small, and Medium-Sized Enterprises (MSMEs) shall receive more support through expanded financing, training, and funding for aspiring entrepreneurs – a segment in which the Philippines undoubtedly has significant potential.

     

The government aims to provide electricity to around one million additional households by 2028. To this end, 200 new power plants are planned, and the Department of Energy (DOE) has been tasked with resolving the ongoing serious challenges in the energy sector.  

     

The government continues to push ahead with major rail and bridge infrastructure projects (e.g., Bataan-Cavite Interlink Bridge, SLEX extension, Mindanao Connectivity) and is rehabilitating key infrastructure to prevent disruptions. Infrastructure will also be safeguarded by improving disaster resilience, with a particular focus on reviewing flood protection projects and utilizing the latest technologies for hazard monitoring.

     

Digital infrastructure remains a key priority for President Marcos and his administration. The government aims to strengthen it by the end of 2025 through improved internet connectivity and expanded access to digital public services—an important development for foreign investors who rely on robust digital ecosystems or who provide the technologies and services that enable such transformation.

    

The domestic political climate in the Philippines has stabilized, but continued reforms in governance remain essential. The President has placed a strong emphasis on fighting​ corruption. Key priorities include stricter audits and greater accountability in infrastructure and flood protection projects.

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He spoke out openly and unequivocally against corruption, particularly in infrastructure development, stressing the need for transparency, accountability, and proper use of public funds.

With key insurgent groups dismantled and the government's anti-drug campaigns showing significant results, the government is now focusing on addressing the remaining areas of conflict in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM)—a region with long-term investment potential once stability is fully achieved.

      

President Marcos reaffirmed the Philippines’ commitment to its principle of “friends to all, enemies to none.” He explicitly invited the international business community to invest in the Filipino workforce, highlighting their natural skills, adaptability, and service orientation—qualities that make them ideal partners for global business.

     

For foreign investors, the Philippines offers a maturing investment landscape characterized by strong demographic dynamics, substantial development potential, and a unique cultural blend of Western and Asian influences. These characteristics make the country a continuously and increasingly attractive destination for long-term strategic engagement. However, the progress achieved through consistent reforms and liberalization over the past 10 to 15 years must be sustained and deepened to fully unlock the nation’s economic potential and maintain investor confidence. Encouragingly, the Philippines is steadily climbing the global rankings on ease of doing business, driven in part by ongoing efforts to reduce red tape, streamline bureaucratic processes and enhance the ​professionalism, transparency and responsiveness of frontline agencies—key factors in improving the overall investment climate.