President Ferdinand Marcos Jr. is scheduled to deliver his second State of the Nation Address (SONA) on July 24, 2023. The SONA is an important event where the president proposes legislative priorities to Congress. In his first SONA, President Marcos Jr. identified the economy as one of his priority areas due to the challenges faced at the start of his term, including the impact of COVID-19, high inflation rate, and other issues. As we await the second SONA, it is important to review the administration’s policies, priorities, and opportunities from its first year.
The administration set economic goals early on, including sustaining the rapid expansion of the GDP, generating high-quality jobs, and reducing poverty. To achieve these goals, a team of economic managers was assembled, consisting of experienced technocrats. 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. The approval of the PDP was relatively fast compared to previous administrations. The plan aims to promote human and social development, create more quality jobs, and foster a prosperous and inclusive society.
While it is still early to measure the results of the PDP, job generation data from April 2023 shows positive developments. The unemployment rate declined from 5.7 percent in April 2022 to 4.5 percent in April 2023, and the underemployment rate also dropped. These are encouraging signs that need to be sustained in the coming years through key policies aligned with the government’s economic goals.
One notable policy is the creation of Green Lanes for Strategic Investments, which streamlines processes for strategic projects that create high-value jobs and attract foreign investments. The Philippine Export Development Plan (PEDP) 2023-2028 has also been approved to boost the performance of the export industry. Additionally, the Legislative-Executive Development Advisory Council (Ledac) has included important policies in its priority legislation, such as the GUIDE Act and the E-Governance Act.
However, there are challenges that the current administration must address. The poverty rate in the Philippines is still high, and the government aims to reduce it to single digits by 2028. This requires a concerted effort to ensure that potential investments result in tangible improvements for Filipinos. The approval and proper implementation of proposed policies, such as the Maharlika Investment Fund (MIF) Act, will be crucial.
On the other hand, there are promising opportunities due to investment pledges from foreign relations efforts. The President’s foreign trips have generated a significant amount of investment projects, and the next step is to translate these pledges into concrete projects that can create business opportunities and generate high-quality jobs.
In conclusion, public policies play a significant role in shaping the country’s economic trajectory. As we anticipate President Marcos Jr.’s second SONA, it is important to look beyond past accomplishments and focus on the administration’s next priority policies. These policies will determine the country’s course and contribute to inclusive economic growth that benefits every Filipino.
