Hits and Misses of PBBM’s 5th State of the Nation Address
28 July 2026 — President Marcos Jr. set an important tone of accountability at the outset of his address, reflecting a year of sustained investigations into flood control projects and renewed calls for better governance. We also welcome his firm reaffirmation of Philippine sovereignty under international law and support the administration’s focus on workforce readiness, agricultural development, ease of doing business, and energy security.
To translate these commitments into sustained economic growth, however, consistent and long-term policy implementation and crucial reforms remain essential. We urge the administration to advance key policies, including the Right to Information Act, institutionalization of bicameral budget transparency and limits to unprogrammed discretionary funds, structural BIR audit safeguards, and bank secrecy reforms, to build strong foundations for effective governance, strengthen investor confidence and ensure long-term competitiveness.
Here is our summary and analysis of President Ferdinand R. Marcos Jr.’s 5th State of the Nation Address, highlighting key sectors involved in MBC’s advocacy initiatives.
- Strengthening cropping intensity for key crops (e.g. sugar and palay) through continuous irrigation and mechanization infrastructure.
- Established 145 rice processing systems and 3 cold storage facilities to address post-harvest losses.
- Emphasized the benefits of farmer consolidation (cooperatives and associations), to improve smallholder farmers access to farm inputs and technology.
- Expanded crop insurance payouts to cover damage/losses of machinery, livestock, and life insurance for farmers and fisherfolks while stressing the need for broader information awareness on available crop insurance mechanisms.
- Highlighted price reduction for imported rice but offered no concrete safety nets for local rice farmers struggling against low farmgate prices.
- A P113B budget for DA programs including farm-to-market roads, irrigation projects, and investments on machineries were mentioned in the 2025 SONA. However, no update shared on completed road kilometers, priority locations, or accountability metrics for the farm-to-market roads.
- Absence of a comprehensive, long-term strategy for the agricultural sector and the country’s food security.
- BSP efforts to promote digital transactions have reduced transaction costs to financial services.
- Satellite-mobile communication initiatives were highlighted as tools for disaster risk reduction and management efforts (especially in connectivity and communication improvements).
- Emphasized the commitment of DICT to focus training programs on high-impact technology skills such as AI readiness, digital literacy and workforce upskilling for developing tech, which are necessary for PH to remain globally competitive.
- AI was identified as a key enabler for transformation in critical sectors such as education and key industries .
- Commended commitment to the ASEAN digital economy framework to accelerate growth of the local tech sector, including fintech and digital banking.
- Lacked a coherent policy and legislative framework for AI regulation to support national implementation (preferably a risk-based regulatory approach)
- Missed discussing long-term plans for effective digital infrastructure expansion.
- Shifted DRRM from reactive to predictive, framing energy security and zero-tariff EV value chains as clean, green resilience.
- Proposed modernizing waste management by updating the 25-year-old RA 9003 to enable waste-to-energy and treatment technology (modeled after MMDA’s recovery, processing, upcycling, and nature park projects)
- Commend PBBM for tying flood mitigation directly to systemic waste management reform (RA 9003) rather than viewing it solely through a corruption lens.
- Implementation Caveat: While framing flooding as more than a corruption issue is commendable, genuine RA 9003 reform must go further to address weak LGU capacity and misaligned agency mandates (DOE/DENR/DILG), requiring honest waste profiles and harmonized laws.
- Lack of climate accountability follow-through: Though PBBM lauded the Loss and Damage Board and PH’s hosting in 2024, there’s been little progress on these engagements delivering climate finance for the Philippines.
- No mention of support for key legislation (CLIMA Bill, Low Carbon Economy Act, and Carbon Rights Bill) or establish high-integrity rules for carbon pricing, verification, and carbon rights needed to mobilize private capital for climate resilience.
- Kept education as a top priority with emphasis on strengthening learning outcomes, improving access, and preparing Filipinos for evolving workforce demands
- Promoted lifelong learning/education, upskilling and reskilling for workforce adaptability.
- Higher education competitiveness: In 2026, 140 PH schools entered the World University Rankings with nearly half from state universities and colleges.
- Emphasized Technical and vocational education and training (TVET) success: 81% graduate placement rate, inter-agency coordination for industry needs, and use of National Certificates for continuing education pathways.
- Supported teacher development and career growth through the Expanded Career Progression System
- Advanced student welfare through provision of learning materials/devices and construction of 16,000 classrooms with support from PPPs.
- PBBM was not able to highlight effective implementation of the Enterprise-Based Training Act to bridge industry-academe gaps and strengthen pathways for workforce development
- Overlooked complementarity and educational vouchers as a way to tap private sector support beyond PPP for classrooms.
- Mentioned the Lifelong Learning Development Framework (LLDF), but missed to highlight and ensure effective implementation of Life-long Learning Development Act and strengthen the Philippine Qualifications Framework.
- Missed opportunity to articulate a broader basic education reform agenda to address learning crisis anchored on the National Education and Workforce Development Plan (NatPlan) 2026–2035 presented by EDCOM II last January.
- Welcomes the provision of learning materials and construction of classrooms but lacked clarity on the 166,000 classroom backlog despite Php 67.9 billion budget allocation.
- Implemented emergency energy relief by securing fuel supply, supported price rollbacks, allowed installment payment of electricity bills, and temporarily suspended disconnections.
- Emphasized the development of indigenous energy sources, with 200 projects being monitored to provide approximately:
- 10,000 megawatts of additional capacity.
- More than 1,700 megawatts of energy storage
- 45 of these. projects are completed, 31 will be completed by the end of 2026 while 124 will be completed by 2028.
- Extended the Malampaya service contract and resumed drilling activities after eight years to reduce dependence on more expensive imported liquefied natural gas.
- Called for updating the Ecological Solid Waste Management Act to reflect modern waste-management technologies, including use of Waste-to-Energy.
- Initiated steps to develop hydrogen and nuclear energy.
- The President called for amendments to EPIRA, particularly on reforms to system-loss charges passed on to consumers.
- Called for the passage of the Sariling Kuryente Act to expand consumer access to rooftop solar and distributed generation.
- Lacking measurable updates on the 35% renewable-energy target by 2030 and 50% by 2040.
- Lacked timelines for delayed transmission projects and measures addressing grid congestion, right-of-way, permitting, financing, and interconnection.
- No coordinated offshore-wind infrastructure and auction roadmap.
- Did not present a transition from temporary emergency relief toward structural reforms reducing exposure to future global energy shocks.
- No clear national plan on reducing energy costs for consumers.
- No clarification on exact parts of EPIRA the President wishes to amend besides system loss charges.
- Reaffirmed an uncompromising stance on national sovereignty and maritime rights in the West Philippine Sea, emphasizing full adherence to UNCLOS and the 2016 Arbitral Award to safeguard territorial integrity through peaceful, rules-based diplomacy.
- Further discussed/clarified Pax silica and Luzon Economic Corridor rationale from a foreign policy angle.
- Addressed the national energy emergency by reprioritizing government expenditure and providing targeted support for affected households and businesses.
- Called for broader personal income-tax relief, tax abatement and amnesty for MSMEs, and reduced corporate income-tax obligations for qualified small enterprises.
- Noted merchandise exports increased by 10.6% to US$37.87 billion from January to May 2026.
- Highlighted 23 existing and prospective free trade agreements and more than ₱6 trillion in projects facilitated through the Green Lanes projected to generate 400,000 jobs.
- Positioned Pax Silica and the proposed AI-native hub as platforms for advanced manufacturing, logistics, semiconductors, artificial intelligence, and higher-quality employment.
- Facilitated investment commitments were not distinguished from actual capital inflows. Net FDI declined by 26.4% to US$1.97 billion from January to April 2026.
- No concrete Pax Silica roadmap covering investors, governance, infrastructure, power, skills, local supply chains, and safeguards.
- Distinguishing the function of LEC and Pax Silica from typical PEZA zones was not discussed.
- Export growth was not accompanied by a strategy to improve productivity, diversify export products and markets, and increase domestic value added.
- No mention of structural safeguards following audit suspensions—specifically risk-based audit selection, independent reporting channels for audit irregularities, and prosecution of unsubstantiated/inflated tax assessments.
- Thanked the public and civil society organizations for active monitoring via transparency portals (eg. Integrity Chain portal) to curb corruption.
- DPWH projects are being reviewed to ensure that projects are necessary, with proper material standards and aligned with the market to prevent overpricing.
- Noted that the Ombudsman is preparing to file multiple charges regarding flood control irregularities, including against a former House Speaker asserting that no family or political allies are above the law.
- Shared plans to redirect recovered flood control funds back to education, health and essential public services.
- Accelerated digital EODB initiatives to streamline government services and curb corruption.
- Key Priority Legislation: Omitted backing swift bicameral passage of the Right to Information (RTI) Act (HB 9397 / SB 1432) and anti-political dynasty legislation.
- Lacked commitments to institutionalize bicameral conference transparency, limit unprogrammed/discretionary funds, and mandate public access to procurement tracking data.
- Praised cash assistance programs TUPAD, AICS, PAFF, MAIFIP, e-MAIFIP) rather than prioritizing long-term structural policy solutions to reduce dependency and curb political patronage.
- No mention of amending the Bank Secrecy Law to allow regulators and courts to track financial crimes, curb tax evasion, and align with global anti-money laundering standards.
- Provided timelines for major transport projects, including the opening of the Valenzuela–Malolos segment of the North–South Commuter Railway and 12 MRT-7 stations next year, as well as the completion of the railway to Clark by the end of the administration.
- Identified the Accelerated and Reformed Right-of-Way Act as a key measure for addressing delays in mass-transit development.
- Continued emergency transport support through service contracting, fare discounts, free rides, diesel subsidies, and reduced toll, terminal, airport, port, and Ro-Ro fees.
- Emphasized infrastructure resilience through the repair of damaged bridges, construction of evacuation centers, and proposed modernization of the National Building Code.
- Lacking update on the progress, revised cost, and completion timeline of the Metro Manila Subway.
- There was no long-term funding and implementation framework for service contracting, fare discounts, and public-transport modernization after the emergency measures expired.
- The address did not discuss broader reforms to improve port, airport, and freight-logistics efficiency beyond temporary fee reductions.
EXECUTIVE INSIGHTS
Commenting on this year’s address, MBC Executive Director Julia Abad emphasized both the promising milestones and the critical work ahead for the business sector:
“President Marcos Jr. set a crucial tone of accountability at the outset of his address after a year of investigations into flood control and calls for governance reform. We also laud his reaffirmation of national sovereignty through international law and support the administration’s focus on workforce readiness, agricultural development, ease of doing business, and energy security.
However, turning these commitments into sustained economic growth requires further reforms with a view to sustained, long-term implementation. We urge the administration to advance key policies, including the Right to Information Act, institutionalization of bicameral budget transparency and limits to unprogrammed discretionary funds, structural BIR audit safeguards, and bank secrecy reforms, to build strong foundations for effective governance, strengthen investor confidence and ensure long-term competitiveness.”
JULIA ABAD, MBC Executive Director
NEXT STEPS AND FULL REPORT
As MBC approaches its 45th year of advocating for principled business leadership, we remain dedicated to working alongside government and private sector partners to turn these priority policies into actionable legislation.
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