Business groups cite gains under Marcos administration

President Ferdinand "Bongbong" Marcos Jr.'s economic agenda is emerging as a bright spot, according to the country's most influential business groups, who cite strong leadership in driving growth and curbing inflation in the first three years of the administration.

Marcos, son of the late President Ferdinand Marcos Sr., assumed office on June 30, 2022, following a landslide victory with over 31 million votes, more than double his closest rival's tally. Campaigning on a message of unity, he inherited the daunting task of reviving an economy battered by the COVID-19 pandemic.

In his first State of the Nation Address on July 25, 2022, Marcos laid out an economic vision centered on sound fiscal management, inflation control, and sustained growth. Three years later, business leaders interviewed by Manila Bulletin say the administration has largely followed through on its economic commitments.

The Makati Business Club (MBC), composed of top business executives, credited the Marcos economic team for tackling urgent priorities, especially inflation management.

MBC Executive Director Rafael Ongpin noted in a phone interview that the economic team successfully controlled inflation, which is vital due to its disproportionate impact on the poor. He also commended their management of the currency.

Inflation eased to 1.3% in June, the lowest since November 2019, according to the Bangko Sentral ng Pilipinas. When Marcos took office in mid-2022, inflation was at 6.1%, driven by higher food and beverage prices. The latest figure falls below the government's revised inflation target of 2% to 3%—down from the previous 2% to 4% range.

Ongpin added that bringing inflation below 2% was a significant achievement, effectively earning the president a "passing grade," particularly as the previous administration had set a low benchmark.

The Financial Executives Institute of the Philippines (FINEX) also acknowledged the administration's steady economic momentum.

FINEX President EJ Qua Hiansen stated in an email interview that the economy has consistently grown since 2022, with a 5.7% GDP increase last year, alongside moderated inflation.

Although the 2023 growth rate missed official targets, the Department of Finance noted it was still the second-fastest in Southeast Asia, next to Vietnam. Hiansen said newly enacted legislation such as the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities to Reinvigorate the Economy (CREATE MORE) could accelerate growth.

CREATE MORE builds on the Duterte-era CREATE Act and overhauls the tax incentives regime to attract more investors. Marcos pushed for the bill's passage following complaints from foreign investors—especially Japanese firms in ecozones—over value-added tax (VAT) refund issues under the old system.

The Federation of Filipino Chinese Chambers of Commerce and Industry Inc. (FFCCCII) also praised Marcos for laying a stable foundation for the economy.

FFCCCII President Victor Lim stated that reforms like the amended Public Service Act (PSA), which allows full foreign ownership in key sectors, and the Ease of Paying Taxes Act could boost investor confidence and economic activity.

The PSA amendments were signed into law by former President Rodrigo Duterte, alongside further liberalization of retail trade and foreign investment restrictions. Marcos followed up with a law liberalizing the renewable energy sector to further attract foreign capital.

Lim concluded that while the administration's economic direction merits a "passing grade," there remains "room for improvement."