Philippines' Marcos pushes more social programmes, jobs to soothe public discontent

The Star

28-07-2025

MANILA (Bloomberg) -- Philippine President Ferdinand Marcos Jr. said recent midterm elections showed the public's discontent over issues ranging from poverty to corruption, pledging to roll out more social programmes, create jobs and attract investment in the second half of his single six-year term.
"If only data will be the basis, the economy is doing well. Inflation has slowed down and employment has increased,' Marcos said in his annual State of the Nation Address to Congress on Monday. "But this is irrelevant if Filipinos are suffering.'
The 67-year-old opened his speech with a call for Filipinos to come together, an acknowledgment of deep divisions within the nation of 113 million people. For more than a year, Marcos has been at odds with Vice President Sara Duterte, who until a court decision Friday was facing the threat of a Senate impeachment trial for allegations including the misuse of public funds and an apparent threat to kill the president.
Duterte has denied the charges, which she said were politically motivated. She skipped the speech for the second year in a row, underlining a chasm with Marcos that deepened this year when he allowed the International Criminal Court to take custody of her father, former President Rodrigo Duterte.
The elder Duterte is fighting charges he committed crimes against humanity during a war on drugs that killed thousands, and his family enjoys strong support in the country's south.
"Let's set aside our differences and agree on three things that unite us: our being Filipino, our nationalism and our sworn duty to the people,' Marcos said.
In his address, which made no mention of the Dutertes by name, Marcos acknowledged having had a setback in May's midterms, where his allies performed worse than expected.
"The message from the election outcome is clear to me. The people are frustrated and disappointed with the government especially in key services,' Marcos said. "The lesson is simple: we need to do better, we need to be faster.'
The president outlined plans to expand the distribution of cheap rice, as well as to provide more scholarships, aid for small businesses and other assistance to lower income people.
"The focus is on expanded programs in education, health, and transportation - initiatives that, hopefully, will be implemented programmatically rather than through patronage,' Cleve Arguelles, CEO at Manila-based research firm WR Numero, said in a written response to questions. "The political state of the nation is revealed in the silences - no talk about the Dutertes as the ground shifts to a messy race among factions for the first to assemble a winning 2028 bloc.'
While Marcos cannot run in the 2028 presidential election, his estranged deputy Sara Duterte is currently eligible.
The emphasis on improving living standards came after the government lowered its 2025 growth forecast to a range of 5.5%-6.5% from a previous goal of 6%-8%, underscoring concerns about the impact of the global trade war. While that pace is among the fastest in Southeast Asia, it's not enough to create the opportunities needed for a relatively youthful population which exports graduates and skilled workers to every corner of the world.
Some of the country's challenges came about due to a worse-than-normal typhoon season in 2024, with parts of the north being hit by strong winds and heavy rains that ruined crops and damaged infrastructure. In the past week, torrential monsoon rains combined with three tropical storms to flood many parts of the main Luzon island, including the capital.
Marcos said that inspections of the damage showed many shortfalls including failed or "imaginary' flood-control projects.
"Let's not pretend - many of these are rackets, sources of kickbacks,' he said. "To those who conspire to steal from government coffers...you should be ashamed,' he added, receiving a standing ovation.
The president said the public works department will give him details of flood control projects started and completed in the past three years and report those which have failed, were unfinished, or are allegedly ghost projects. "We will publish this list,' he said.
The address comes days after Marcos met with President Donald Trump in the White House, where he secured a marginal cut in a threatened tariff to 19% from 20%. Stocks closed 0.5% lower before Marcos spoke and the peso slipped 0.2% against the dollar.
Marcos, whose country is strongly aligned with the US, also made a pitch for more international investment.
"My single, resounding message to the international business community is this: the Philippines is ready.' Marcos said. "Invest in the Filipino. Our cavalcade of dependable and hardworking Filipinos, innately skilled, adaptable and possessed with a heart for service, are here ready to work and succeed with you.'
-- Report by Andreo Calonzo and Cliff Venzon Claire Jiao, Ditas Lopez and Neil Jerome Morales.
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