President Ferdinand Marcos Jr. spoke to the Filipino people on Monday about the state of the country a year after taking office and what needs to be done to build on what has been accomplished.
In his second State of the Nation Address (SONA), Marcos declared that the ”state of the nation is sound and is improving.”
Marcos said inflation, which jumped to a 14-year high of 8.7% in January 2023, has since slowed and is now ”moving in the right direction.”
”What this means is that in spite of all the difficulties, we are transforming the economy. We are stabilizing the prices of all critical commodities,” he told a joint session of Congress at the Batasang Pambansa in Quezon City.
The government expects inflation to decline to within 2–4% by the end of the year.
Gains, priorities
Investments in public infrastructure and in food, education, health, jobs, and social protection remain the government’s top priorities, Marcos said, adding that economic and social services were allocated almost 70% of the national budget this year.
”For strategic financing, some of the nation’s high-priority projects can now look to the newly established Maharlika Investment Fund, without the added debt burden,” he said.
”In pooling a small fraction of the considerable but underutilized government funds, the Fund shall be used to make high-impact and profitable investments, such as the Build-Better-More program. The gains from the Fund shall be reinvested into the country’s economic well-being.”
On education, Marcos said learning recovery following the COVID-19 pandemic would be at the forefront of his administration’s agenda.
”The MATATAG Agenda for basic education has been launched, focusing on relevance of curriculum, rapid and responsive delivery, and the welfare of both learners and teachers,” he said.
”Learners will be made more resilient. Our public schools and facilities are being increased and fortified.”
Marcos also said the government is recalibrating the K to 10 curriculum to ensure that it is always relevant, responsive, and at par with international standards.
”The shortage of classrooms and facilities is being addressed. Aside from new constructions, schools and facilities are being retrofitted to become ready for the future—ready for hybrid and high-tech learning, and also climate-ready and disaster-proof,” he said.
Tertiary education in state universities and colleges will remain free for qualified students, he added.
Marcos also mentioned the Food Stamp Program (FSP), which seeks to supply the nutrition needs of the most food-poor Filipinos.
On healthcare, Marcos said public health facilities are being increased, both in number and in capability.
”Last year, more than 3,400 projects were completed. To improve capacity for specialized medical treatment, specialty centers in various fields are being established and integrated into our government hospitals. In the last year, additional 60 specialty centers have been opened to the public,” he said.
He said 93% of Filipinos now have PhilHealth coverage, and the number of dialysis sessions covered by the government has increased from 90 to 156.
While the employment rate rose to 95.7% in May 2023, Marcos said the government would help generate additional jobs for the remaining 4.3 percent of the country’s workforce, as well as for the 11.7 percent who are classified as underemployed Filipinos seeking better employment opportunities.
He said his economic missions abroad have yielded an estimated total investment value of P3.9 trillion, or $71 billion, with the potential to generate 175,000 jobs.
”Under the banner of our fast-growing economy, we are aggressive in our investment and business promotions and facilitations. For that, we have not limited ourselves to the local economy, but we have looked to the global economy for partnerships and agreements,” he said.
In particular, Marcos said the government wants to ensure that the principles of ethical recruitment, fair employment, and the safe and orderly migration of Filipinos are embodied in the agreements with other countries.
”For example, the deployment issue in the Kingdom of Saudi Arabia has now been resolved. And as of today, 70,000 of our OFWs have already been deployed to Saudi Arabia for employment. Moreover, the unpaid salaries and other related claims of some 14,000 OFWs, who have been put out of work in Saudi Arabia during the pandemic, are now being processed. The Crown Prince of the Kingdom of Saudi Arabia himself personally committed to me that the unpaid claims of Filipino workers would now be paid,” he said.
The President also recognized the resilience of the country’s tourism sector. The Philippines had already received three million international visitors as of July 19, putting the country on track to meet the target of 4.8 million foreign tourists this year.
”Our tourism has always been a reliable pillar of our economic growth through the years, providing a livelihood to more than five million of our citizens. Because of the reopening of the economy, and the phenomenon of ‘revenge travel,’ this sector is headed for a great rebound,” he said.
Acknowledging the role of technology in governance, Marcos said digitalization is the ”greatest, most powerful tool, not just to improve the ease of doing business, but also against many forms of graft and corruption.”
”Data shows that digitalization, in conjunction with government’s streamlining efforts, has significantly boosted efficiency. Notable examples are in the areas of government payments, company and business registrations, issuance of permits and licenses, loan applications, and revenue collection,” he said.
”All our digitalization efforts will be linked to our payment systems, whose digital transformation has been accelerating at a remarkable rate.”
Thanks to the National ID system, which now covers 87% of the population, ”we are now closer to establishing a complete, accurate, and reliable digital database of our own for the entire population,” he added.
Marcos also put emphasis on factoring climate change into decision-making and the implementation of government programs.
”Our evacuation centers are being upgraded to withstand the greater forces of the new normal of extreme weather, as well as other natural and man-made disasters. Furthermore, new evacuation centers are also being built, of which 55 have already been completed,” he said.
”We have adopted the concept of the ‘circular economy,’ using nature as our model. The aim is to keep raw materials in a closed loop. In our world with scarce resources, the circular economy allows us to fully use these resources, minimize waste and reduce the need for new resources—just as it is in nature,” he added.
He said the government was ready to respond the threat of El Niño.
”Nagsimula na tayong maghanda, at ang mga buffer stocks at ang mga kagamitang patubig ay inihahanda na. Kung kinakailangan, magsasagawa pa tayo ng cloud-seeding upang makapagdala ng ulan. Kasabay ng lahat ng ito, hinihimok din natin ang ating sambayanan na magtipid ng tubig para sa malawakang paghahanda sa banta ng tagtuyot,” the President said.
On peace and order, Marcos said the campaign against illegal drugs ”is now geared towards community-based treatment, rehabilitation, education, and reintegration, to curb drug dependence amongst our affected citizenry.”
”We will relentlessly continue our fight against drug syndicates, shutting down their illegal activities – we will shut down their activities and dismantle their network of operations,” he said.
Marcos said he would accept the resignations of law enforcers and other government officers involved in the illegal drug trade.
”In their stead, we will install individuals with unquestionable integrity, who will be effective and trustworthy in handling the task of eliminating this dreaded and corrosive social curse. We cannot tolerate corruption or incompetence in government,” he said.
The President also announced that he would issue a proclamation granting amnesty to rebel returnees.
He also praised the progress of the Marawi rehabilitation and the Bangsamoro Autonomous Region in Muslim Mindanao.
On foreign policy, Marcos said his government would ”protect our sovereign rights and preserve our territorial integrity, in defense of a rules-based international order.”
”With our national interest paramount, we will always pursue constant dialogue and diplomatic approaches to the resolution of any issue that may arise,” he said.
Legislative agenda
Meanwhile, Marcos appealed to the Senate and House of Representatives to pass the following measures:
1) Tax measures under the Medium-Term Fiscal Framework:
Excise tax on single-use plastics
VAT on digital services
Rationalization of mining fiscal regime
Motor vehicle user’s charge/road user’s tax
Military and Uniformed Personnel Pension
2) Amendment of the Fisheries Code;
3) Amendment of the Anti-Agricultural Smuggling Act;
4) Amendment of the Cooperative Code;
5) New Government Procurement Law;
6) New Government Auditing Code;
7) Anti-financial accounts scamming;
8) Tatak-Pinoy Law;
9) The Blue Economy Law;
10) Ease of paying taxes;
11) LGU income classification; and
12) The Philippine Immigration Act.
”I have stated before that my confidence in our future was grounded in our world-class quality workforce—be they the farmers in the field, corporate giants, government officials, school teachers, health workers, or employees. That confidence has been further buoyed by the demonstration of love for the Philippines,” Marcos said.
”And thus, with this in my heart, I know that the state of the nation is sound, and is improving. Dumating na po ang Bagong Pilipinas.”
At least 2,000 guests showed up at the Batasang Pambansa to hear Marcos’ first report to the nation since assuming the presidency in June 2022. The event came two days after Marcos declared an end to the COVID-19 emergency in the country.
Groups critical of Marcos gathered along Commonwealth Avenue Tandang Sora for a ”People’s SONA,” while administration supporters attended a concert near Sandiganbayan.
Thousands of policemen were deployed to maintain peace and order.
