BGA Philippines Managing Director Victor Andres “Dindo” Manhit wrote an update to clients on how the Philippines can transform economic risks into opportunities for reform ahead of the next election.

Context

  • Public opinion surveys conducted by the Pulse Asia Research Inc. in March highlight significant risks to the Philippine economic system as the country nears the midterm elections set for May 12. Persistent inflation, unemployment and underemployment are key concerns that, if addressed, could help reduce inequality and foster a more inclusive economy
  • Rising prices have hit low-income households the hardest, eroding their purchasing power. Widespread dissatisfaction with the government’s efforts to control inflation (79 percent disapproval rating) and create jobs (40 percent disapproval rating) reflects public frustration and a weakening confidence in current economic policies.

Significance

  • Persistent economic challenges deepen inequality and may fuel social unrest, as frustration grows over the lack of effective solutions and declining trust in the system’s ability to deliver change. Regional and class disparities intensify divisions and dissatisfaction.
  • The survey results also reveal critical environmental and agricultural vulnerabilities in the Philippines, providing both challenges and opportunities for improvement. Food insecurity remains a critical threat to the Philippines’ sustainable growth and development.

Implications

  • The preelection period under the administration of President Ferdinand Marcos Jr. presents an opportunity for the Philippines to address persistent economic challenges. Social divisions, political polarization, economic inequality and regional disparities threaten national stability but can be mitigated through inclusive policymaking, expanded livelihood programs and targeted economic reforms.
  • Environmental and agricultural vulnerabilities also underscore the need for modernization and investment in rural development. Future reforms may target technology and infrastructure improvements, as well as training for farmers. Additionally, these reforms could seek to improve the country’s climate resiliency.

We will continue to keep you updated on economic reforms and the midterm elections in the Philippines as they occur. If you have any questions or comments, please contact BGA Philippines Managing Director Victor Andres “Dindo” 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