GPCCI’s In-Depth Report on the 2026 State of the Nation Address (SONA) by Philippine President Ferdinand Marcos Jr.

President Marcos Jr. reaffirmed food security as a national priority through the continued implementation of the PHP 20 rice program, benefiting more than 12 million Filipinos, alongside over 800 KADIWA outlets nationwide. The government also provided support to nearly 2 million farmers and fisherfolk through the Presidential Assistance to Farmers, Fisherfolk, and Families (PAFFF) during the recent energy crisis. Beyond crop production, the President highlighted efforts to strengthen animal health and livestock resilience as part of broader food security objectives. These initiatives aim to stabilize food prices while enhancing agricultural productivity, domestic food supply, and rural livelihoods. For agribusiness stakeholders, the continued focus on modernization presents opportunities in mechanization, agri-tech, animal health solutions, cold-chain logistics, and food processing.

Government accountability set the tone of the President's address. Pres. Marcos Jr. reported that approximately PHP 25 billion in assets and funds linked to anomalous projects have been recovered, frozen, or preserved, with over PHP 800 million already returned to the National Treasury. The administration also highlighted reforms in project monitoring, procurement oversight, and transparency mechanisms, particularly in public infrastructure projects. These efforts seek to strengthen public trust, improve government efficiency, and create a more predictable business environment for investors. 

The President emphasized the need to strengthen climate resilience and disaster preparedness as the country continues to face increasing natural disaster risks. Key initiatives include the establishment of disaster resource centers, Ligtas Pinoy evacuation facilities, and emergency response hubs, alongside proposed reforms to the National Building Code to incorporate modern resilience standards. These measures highlight growing opportunities in climate-resilient infrastructure, engineering services, disaster-risk management, and sustainable urban development. 

Digital transformation remains a core element of the administration's competitiveness agenda. The President highlighted improvements in internet connectivity and digital government services that support online education, remote work, digital transactions, and public service delivery. The administration also reported that AI-readiness training programs have reached at least 1.8 million individuals, including students, parents, and teachers, reflecting an early push toward broader AI literacy nationwide. These initiatives complement broader efforts to reduce administrative burdens and improve ease of doing business, while creating opportunities in digital infrastructure, cybersecurity, cloud services, and emerging technologies. 

The President identified advanced manufacturing, pharmaceuticals, technology, and logistics as priority sectors for investment and expansion, while continuing to promote investment opportunities beyond Metro Manila. Over the past three years, more than PHP 6 trillion in investments have been facilitated through the government's Green Lanes initiative, estimated to generate over 400,000 jobs, underscoring continued momentum in the Philippines' investment facilitation efforts. 

The President also cited the removal of tariffs on electric vehicles through 2028, alongside efforts to grow domestic EV assembly and battery manufacturing — relevant to stakeholders in sustainable mobility and advanced manufacturing. These efforts are intended to strengthen the Philippines' role in regional and global value chains and support the creation of higher-value economic activity. 

Workforce development was highlighted as a key enabler of long-term competitiveness. The administration continues to support technical and vocational education, workforce upskilling, and the integration of returning overseas Filipino professionals into the domestic labor market. These initiatives aim to address skills gaps and improve the availability of industry-ready talent, reinforcing opportunities for industry-academe collaboration and workforce development partnerships. 

Energy security emerged as one of the most significant business-related themes of the SONA. The President announced that nearly 200 power projects are being monitored through 2028, expected to add almost 10,000 MW of generation capacity and over 1,700 MW of energy storage capacity. He also cited the extension of the Malampaya Service Contract until 2039, the award of 14 petroleum service contracts, and support for hydrogen development and the potential inclusion of nuclear energy in the country's future energy mix. On the legislative front, he urged Congress to amend the Electric Power Industry Reform Act (EPIRA), including the removal of system loss charges and related VAT burdens. These measures seek to improve energy affordability, supply reliability, and long-term energy security while opening opportunities in renewable energy, hydrogen, grid modernization, and energy storage. 

The President underscored the importance of international partnerships in strengthening economic resilience, energy security, and regional cooperation. As the Philippines assumes the ASEAN Chairmanship in 2026, the country is expected to play a greater role in advancing regional economic integration, digital cooperation, trade facilitation, and investment flows within Southeast Asia. The Philippines has also continued to expand its trade network, now maintaining 23 free trade agreements either in force or under active negotiation, including the Regional Comprehensive Economic Partnership and an incoming Comprehensive Economic Partnership Agreement with the United Arab Emirates. This provides an opportunity to further position the Philippines as a strategic hub for regional business and supply-chain diversification. 

The administration reaffirmed its commitment to expanding access to quality and affordable healthcare through enhanced PhilHealth benefits, expanded medical assistance programs, and improved public healthcare services. The President emphasized ensuring greater financial protection for patients while strengthening healthcare delivery nationwide. For the business community, continued investments in healthcare infrastructure, medical technologies, pharmaceuticals, and digital health solutions present opportunities to support the modernization of the Philippine healthcare system and improve access to care. 

Infrastructure modernization remains a key pillar of the administration's development agenda. The President reported that the North-South Commuter Railway is expected to begin partial operations in 2027, while MRT-7 is projected to open 12 new stations during the same year. The government also continues to invest in airports, seaports, logistics facilities, and public transport systems, while supporting the recently enacted Accelerated and Reformed Right-of-Way Act to speed up project implementation. Together, these initiatives aim to improve connectivity, reduce logistics costs, and enhance the country's competitiveness as an investment destination. 

To mitigate the impact of global economic disruptions, the government expanded job fairs, livelihood support, and employment assistance programs. Looking beyond short-term interventions, the administration emphasized job creation through industrial development, investment promotion, and the expansion of high-value sectors such as manufacturing, technology, logistics, and energy. These priorities aim to generate more sustainable and higher-quality employment opportunities while improving workforce productivity. 

Prior to President Marcos Jr.’s 5th SONA, the Second Regular Session of the 20th Congress formally opened under new leadership in both chambers. This transition signals a renewed legislative direction aligned with the administration’s development priorities and the country’s most pressing socioeconomic challenges. 

Senate President Sherwin “Win” Gatchalian outlined a five-point legislative agenda focused on addressing key concerns affecting Filipinos, namely rising commodity prices, declining purchasing power, high electricity costs, infrastructure and transportation deficiencies, and employment insecurity. The Senate’s priorities are designed to support economic growth while improving the everyday lives of citizens through responsive and targeted legislation. 

Meanwhile, House Speaker Faustino “Bojie” Dy III reaffirmed the House of Representatives’ commitment to advancing the President’s priority measures. He emphasized the chamber’s resolve to enact meaningful legislation that will strengthen the economy, expand opportunities for Filipinos, and promote inclusive and sustainable national development. 

In his SONA, President Marcos Jr. called on Congress to fast-track key reforms aimed at providing socioeconomic relief, strengthening economic resilience, and improving the delivery of public services. He underscored the importance of passing measures that would ease cost-of-living pressures, attract investments, create quality jobs, enhance energy and infrastructure development, and support inclusive and sustainable growth for all Filipinos.