President Ferdinand Marcos Jr. is scheduled to deliver his second State of the Nation Address (SONA) on July 24, 2023. The SONA is not just a tradition, but a crucial event where the president outlines the legislative priorities to Congress. In his first SONA, President Marcos Jr. emphasized the importance of the economy, which was understandable given the challenges the country faced at the beginning of his term, such as recovering from the economic impact of COVID-19, high inflation rates, and dealing with external conflicts.
As we anticipate the second SONA, let’s take a look at some of the top policies, priorities, and opportunities that emerged during the administration’s first year. Early on, the administration identified its economic goals, including sustaining the GDP growth seen in 2022, creating high-quality jobs, and reducing poverty. To achieve these goals, a team of experienced economic managers was assembled to develop the necessary policies.
Within six months of the first SONA, the Philippine Development Plan (PDP) 2023-2028 was approved, serving as the blueprint for the administration’s socio-economic policies. This swift approval is noteworthy compared to previous administrations. The PDP focuses on human and social development, improved health care and education systems, job creation, and creating an environment for a prosperous and inclusive society.
Although it’s too early to gauge the full impact of the PDP, recent job generation data shows positive signs. The unemployment rate has decreased from 5.7 percent in April 2022 to 4.5 percent in April 2023, and the underemployment rate has also dropped. These developments must be sustained through key policies that align with the administration’s economic goals.
One notable policy is the creation of Green Lanes for Strategic Investments, which expedites processes for projects that create high-value jobs and attract foreign investments. The Philippine Export Development Plan (PEDP) 2023-2028 aims to boost the performance of the export industry. The Ledac has also prioritized legislation, such as the GUIDE Act, which provides financial assistance to pandemic-affected MSMEs, and the E-Governance Act, which improves business processes through online systems.
While significant progress has been made, there are still challenges and opportunities ahead. The administration aims to reduce the poverty rate to single digits by 2028, but current data shows that it stands at 18.1 percent. To address this, the executive leadership and the Senate must align in approving crucial bills. It’s also important to effectively implement policies, such as the Maharlika Investment Fund (MIF) Act, and ensure safeguards against mismanagement.
The President’s efforts in foreign relations have generated investment pledges, and the next step is to turn these pledges into concrete projects that boost business opportunities, improve competitiveness, and create high-quality jobs.
Public policies play a significant role in improving the lives of Filipinos by creating a favorable investment climate, efficient government services, and employment opportunities. As we await the second SONA, we must focus on the administration’s next priority policies, which will shape the country’s future and contribute to inclusive economic growth.
About the author:
Emilio “Jun” Neri Jr. is a lead economist and senior vice president at Bank of the Philippine Islands. He is a highly regarded economist and has been recognized for his accurate GDP projections.
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