The BGA Philippines team, led by Managing Director Victor Andres Manhit, wrote an update to clients on President Ferdinand “Bongbong” Marcos Jr.’ fourth state of the nation address (SONA) and domestic priorities.

Context

  • Philippine President Marcos delivered his fourth SONA at the Batasang Pambansa (seat of the House of Representatives) in Quezon City July 28. Marking the midpoint of his six-year term, his one-hour speech focused on the accomplishments of his administration so far and outlined strategic priorities for the remaining half of his term. It served as an opportunity to demonstrate the president’s leadership and commitment to solving the challenges that affect millions of Filipinos every day. As with his previous addresses, this SONA addressed key public concerns such as pressing economic challenges, including hunger and poverty.
  • The address outlined the administration’s policy priorities for the coming years, providing the business sector and potential investors with valuable opportunities to align with national development objectives. Clear policy and investment directions can serve as a road map for areas such as infrastructure and service delivery.

Significance

  • Marcos did not mention that he had just returned from meetings with U.S. President Donald Trump in Washington before the speech. A key topic there was U.S. tariffs on Philippine exports, which Trump lowered only 1 percent to 19 percent from 20 percent. The deal has been criticized back home as causing potential harm for local industries at a time when many U.S. goods are slated to enter the Philippines tariff free. Manila is continuing to talk to U.S. officials to try to lower Philippine tariffs further before Trump’s August 1 deadline.
  • Separately, the two leaders emphasized the countries would continue to work together militarily in the face of China’s assertive actions against Philippine-claimed islands in the South China Sea. Marcos left Washington stressing the “ironclad” character of the U.S.-Philippine partnership.

Implications

  • Controlling inflation was the top issue that Filipinos wanted President Marcos to address in his SONA, according to a survey conducted by Pulse Asia Research Inc. in June. A total of 32.9 percent of respondents cited it as a priority, with 25.8 percent calling for efforts to reduce the prices of goods and services and another 7.1 percent urging the president to fulfill his campaign promise of lowering the price of rice to PHP 20 ($0.35) per kilo.
  • Filipinos are optimistic about several national policy areas after the May midterm elections. A survey by the Social Weather Stations in May found that Filipinos have confidence in access to health care services, food security, agricultural development and infrastructure development.

We will continue to keep you updated on developments in the Philippines as they occur. If you have any comments or questions, please contact BGA Philippines Managing Director Victor Andres Manhit at vmanhit@bowergroupasia.com.

Best regards,

BGA Philippines Team

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Managing Director

Dindo is recognized as one of Manila’s most well-connected and savvy advisors on developments in government and business in the Philippines. Concurrent to his role as managing director for BGA’s operations in the Philippines, he is also the founder and managing director of the Stratbase Group and president of its policy think tank, the Albert del Rosario Institute for Strategic and International Studies. Since 1991, Dindo has served as a member of the faculty and is the former chair of the Political Science Department and a senior fellow of the La Salle Institute of Governance at the De La Salle ... Read More