BUSINESS groups largely gave President Ferdinand Marcos Jr.’s fifth State of the Nation Address (Sona) a passing grade on Monday, but said the real test begins after the applause, with execution, funding and policy follow-through now under the spotlight.
The Management Association of the Philippines (MAP) said the President touched on many of the priorities long raised by the business community, including job creation, food security, affordable energy, health care, support for micro, small and medium enterprises (MSMEs), and improved government services.
‘We are encouraged that he addressed key priorities such as job creation, food security, affordable energy, health care, MSME support, and improving government services,’ MAP President Donald Patrick Lim said in a statement after the Sona.
‘These are the right priorities and are aligned with many of the concerns consistently raised by the business community,’ he added.
Lim, however, said businesses are now looking for clear implementation timelines, policy consistency and closer collaboration between government and the private sector.
He also noted that tourism-one of the country’s major economic drivers-was absent from the President’s address.
‘We hope this is complemented by a stronger emphasis on long-term economic reforms that improve the investment climate, strengthen MSMEs, accelerate infrastructure and digital transformation, and make the Philippines more competitive globally,’ he said.
Lim added that Congress should promptly translate the administration’s priorities into legislation while the Executive ensures programs are implemented efficiently and their benefits reach ordinary Filipinos.
Philippine Chamber of Commerce and Industry chairman emeritus Sergio Ortiz-Luis Jr. echoed the generally positive assessment but questioned whether the government has the fiscal capacity to deliver on the commitments outlined in the speech.
‘From the business point of view, he answered almost everything we have been asking for-and even added more,’ Ortiz-Luis said in a televised interview after the Sona.
However, he said he did not hear any specific plans to strengthen tourism or expand export promotion and product development.
Ortiz-Luis renewed his call for greater support for MSMEs, saying the sector remains among the most underfunded in Asia despite its significant contribution to the economy.
‘I hope there is a plan to source the funding for all these programs,’ he said.
Also, the Federation of Philippine Industries (FPI) said targeted assistance remains necessary for manufacturers and small businesses as inflationary pressures continue to weigh on operations.
‘Sustaining MSMEs means protecting jobs and keeping local supply chains intact,’ FPI chairman Elizabeth Lee said in a statement.
‘By cushioning enterprises against rising costs, we can soften the blow of weakening demand while preserving employment and production capacity. The dual impact-jobs retained and supply chains stabilized-helps maintain confidence in the domestic market and shields industry from deeper contraction,’ she added.
Lee also said the administration’s emphasis on ease of doing business, Green Lanes and strategic investment initiatives such as Pax Silica provides a clear direction for industry, although businesses will be watching how these policies are carried out.
‘Ultimately, this Sona laid down benchmarks for accountability and competitiveness. The priority now shifts to swift execution-lowering operational costs, cutting red tape, and ensuring reforms translate directly to the factory floor,’ she said.
The Aurora Pacific Economic Zone and Freeport Authority (Apeco) welcomed the administration’s energy agenda, saying more reliable power will strengthen the ecozone’s ability to attract investments.
Apeco President Gil Taway IV said the agency plans to support the government’s energy initiatives by opening the ecozone to investments in renewable energy generation, battery energy storage, power distribution infrastructure and other emerging clean-energy technologies.
Trade, industry agenda
In his address, President Marcos underscored supply chain resilience, trade diversification and industrial upgrading as key components of the administration’s economic strategy.
He highlighted the planned Pax Silica Industrial Hub in New Clark City, describing it as an artificial intelligence-centered manufacturing and logistics ecosystem under the United States (US)-led Pax Silica Initiative and a cornerstone of the Luzon Economic Corridor.
Government projections estimate the project could attract $40 billion to $70 billion in investments, create 130,000 to 190,000 direct jobs, and generate another 500,000 to 800,000 indirect and induced jobs across supporting industries and supply chains.
The chief executive also affirmed the country’s commitment to expanding trade through free trade agreements, citing the implementation of the Regional Comprehensive Economic Partnership (RCEP) and the conclusion of a Comprehensive Economic Partnership Agreement (Cepa) with the United Arab Emirates.
The Philippines now has 23 free trade agreements either in force or under negotiation, which include the recently concluded Cepa negotiations with Chile, alongside ongoing talks with the European Union, Canada and India, as well as the review of the Philippine-Japan Economic Partnership Agreement.
He also said the government’s Green Lanes initiative has facilitated more than P6 trillion worth of strategic investments over the past three years, with projects projected to create over 400,000 jobs.
Since Executive Order 18 took effect in February 2023, at least 239 strategic investment projects worth P6.32 trillion have been certified under the program, per data from the Board of Investments.
Marcos also said the government maintained adequate fuel supplies despite disruptions affecting the Strait of Hormuz by diversifying oil import sources, adding that the country has enough inventory to meet demand for nearly two months.
On manufacturing, Marcos reiterated the administration’s push to accelerate electric vehicle adoption through zero tariffs on electric vehicle (EV) imports until 2028 and a directive requiring government agencies to prioritize EVs in fleet replacement.
He also identified pharmaceuticals, advanced manufacturing, technology, logistics and luxury goods among the industries the government aims to develop further.