“Addressing these critical issues will reflect his administration’s commitment to economic security and provide a clear policy direction for future growth and prosperity”
Later today, President Ferdinand Marcos Jr. will present his third State of the Nation Address .
An occasion to assess three years of his administration’s performance while anticipating his next actions to address persistent socioeconomic issues.
Reflecting on past pronouncements and achievements, it is evident the Philippines has made notable progress. Addressing challenges and prioritizing them for the remainder of his term will be crucial for ensuring sustained economic growth.
The overarching socio-economic landscape continues to be shaped by the policy agendas of its top leadership.
For President Marcos., realizing sustained economic progress has been a primary focus, adhering to the belief that economic security equates to national security.
His administration has launched initiatives aimed at streamlining regulations, improving infrastructure, and fostering a more business-friendly environment which aim to tackle challenges like bureaucratic hurdles, investor confidence, and sustainable economic development.
The Philippines has seen improvements. The Philippine Statistics Authority reported the Philippine economy expanded by 5.7 percent in the first quarter of 2024.
The Development Budget Coordination Committee anticipates the economy will continue to outperform most emerging economies, with growth projections of 6.0-7.0 percent in 2024 and 6.5-7.5 percent in 2025.
These figures underscore a positive trajectory, reflecting the effectiveness of the administration’s economic strategies.
Despite these gains, the upcoming SONA presents a crucial opportunity for President Marcos Jr. to address persistent socioeconomic issues that could hinder sustained growth.
The latest Business Expectations Survey of the Bangko Sentral ng Pilipinas indicated a slight decline in business sentiment in the second quarter of 2024, with the overall confidence index dropping from 33.1 percent to 32.1 percent.
Concerns among firms regarding lower demand for goods and services, influenced by international conflicts, potential oil price hikes, El Niño-induced extreme weather conditions, and persistent inflationary pressures, have dampened optimism.
This decline in business sentiment is mirrored by consumer sentiment.
The same quarter saw an increase in consumer pessimism, with the overall CI turning more negative at -20.5 percent, compared to -10.9 percent in the first quarter.
Consumers expressed worries about faster price increases, higher household expenses, lower income, fewer job opportunities, and doubts about the effectiveness of government policies on inflation management, traffic, public transportation, financial assistance, and employment.
Moreover, the latest survey by Pulse Asia Research Inc. revealed controlling inflation remains the most urgent concern for Filipinos, cited by 72 percent of respondents, a two-percentage point increase from the previous quarter.
This concern is followed by the need to increase workers’ pay (44 percent), reduce poverty (32 percent), create more jobs (30 percent), and combat graft and corruption in government (22 percent). These statistics highlight the critical issues Filipinos hope the President will address.
It is essential for the President to reiterate his commitment to attaining economic security through policies aimed at controlling inflation, attracting investments, streamlining regulations, and promoting sustainable economic development.
These measures are pivotal in uplifting the lives of Filipinos.
The same Pulse Asia survey found top issues Filipinos want the President to address are controlling inflation (57 percent), improving the national economy (36 percent), and creating more jobs or livelihood opportunities (35 percent). Issues recurring for many administrations.
Addressing inflation is paramount. The rising cost of goods and services has significantly impacted Filipino households, leading to increased financial strain.
Implementing effective inflation management strategies such as revisiting proposed bills to remove the VAT on electricity will help address the cost-of-living crisis which disproportionately impacts poor people by making it harder for them to afford necessities, save money, pay for healthcare, and invest in education, thus limiting their long-term opportunities.
Streamlining regulations and bureaucratic processes will encourage both local and foreign investments, fostering a more dynamic and competitive business landscape.
This will not only boost economic activity but generate employment opportunities, contributing to poverty reduction.
Promoting sustainable economic development is equally important. Ensuring that growth is inclusive and environmentally sustainable will secure the well-being of future generations.
This involves investing in renewable energy, and revitalizing the mining industry to harness our natural endowment of critical minerals to meet global demand to shift to green technologies while enhancing environmental protection measures.
Strengthening transparency and accountability mechanisms within the government will enhance public trust, ensure resources are efficiently utilized, and support effective implementation of socio-economic programs.
Addressing these critical issues will reflect his administration’s commitment to economic security and provide a clear policy direction for future growth and prosperity.
By resolving the challenges of inflation, employment, graft and corruption, and fostering an enabling and stable environment for all business to thrive, economic security will no longer be an elusive dream.
