SONA omissions tagged | The Manila Times

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INITIAL private sector reactions to President Ferdinand Marcos Jr.’s State of the Nation Address (SONA) were generally favorable, but many said that he could have touched on more hot button issues such as US tariffs and online gambling.

Protesters march along Commonwealth Avenue in Quezon City as they air their grievances during President Ferdinand Marcos Jr’s fourth State of The Nation Address. PHOTOS BY J. GERARD SEGUIA

Protesters march along Commonwealth Avenue in Quezon City as they air their grievances during President Ferdinand Marcos Jr’s fourth State of The Nation Address. PHOTO BY ISMAEL DE JUAN

Coming just under a week after Marcos and US President Donald Trump agreed on a 19-percent tariff on Philippine exports, business leaders and analysts said they were surprised that there was no mention of the deal.

Sergio Ortiz-Luis, Philippine Exporters Confederation Inc. president, said he had hoped that Marcos could have said something about trade given continued global uncertainties.

“… I was hoping [he] would. Unfortunately it wasn’t there,” Ortiz-Luis Jr. said.

Philippine Chamber of Commerce and Industry (PCCI) Chairman George Barcelon expressed the same sentiment, saying “I was surprised that … trade policy with the US was not mentioned.”

Still, Ortiz-Luis said that he was satisfied with plans for agriculture, education, connectivity and other issues, and was also glad that Marcos mentioned a foreign policy of the Philippines as “a friend to all.”

Elizabeth Lee, chairman of the Federation of Philippine Industries said she did not expect Marcos to talk about US tariffs as a final deal had yet to be reached, but also said the president could have addressed a broader range of concerns.

She said the SONA was “well-delivered” and added that the decision to spotlight key issues such as food security, floods, electricity supply, public health and education was both strategic and reassuring.

“These fundamental areas speak directly to the everyday fears and hopes of the Filipino people, and addressing them strengthens his goal for a more resilient citizenry and workforce that is key to businesses,” she said.

Fiscal challenge

Barcelon, meanwhile, warned that the health, education and other initiatives announced by Marcos could have a fiscal impact.

“That is something that can only be resolved if our economy would be fast tracked from 5-6 percent [growth], probably to 7-8 percent. Otherwise, this issue of incurring such a huge debt would continue. And that might make all of his promises to the people on free education, free health — everything is almost free … challenging,” he said.

Rizal Commercial Banking Corp Chief Economist Michael Ricafort also pointed this out, saying “better/more medical coverage, free fares on [a returning] Love Bus [service] and other subsidies … could lead to more government spending, wider budget deficit that would fundamentally require more government borrowings/debt.”

Another notable omission, he said, was that the “US-Philippine trade deal [was] not mentioned” and had yet to be finalized with an Aug. 1 overall deadline looming.

Philstocks Financial Inc. research manager Japhet Tantiangco, meanwhile, said the SONA delivered both “hits and misses.”

“The President laid out good plans for the agricultural sector, though I would have wanted to hear more on how science and technology would be applied to our farming,” he said.

He also commended the administration for calling out corruption involving flood control projects, noting that this was a “hot issue” after recent storms inundated Metro Manila.

The expansion of PhilHealth coverage and improved benefits for teachers were described as “positive steps” and Tantiangco also noted moves to increase energy and transportation capacity.

‘Wrong signal’

“[However], there [has] been no mention of how to further upgrade our manufacturing sector, online gaming regulations, research and development (further improving innovation in the country) and fiscal consolidation plans,” he said.

Unicapital Group research head Wendy Estacio-Cruz said the omission of online gambling “seems intentional” with Marcos likely still weighing the economic impacts of any potential restrictions.

“Raising the idea of a ban or stricter controls could have sent the wrong signal to investors and stakeholders,” she added.

On a more positive note, she said the President “was able to touch on key macroeconomic themes relevant to inflation management, infrastructure, and the strict alignment of budget proposals to prevent misuse of funds.”

Support for rice

The Samahang Industriya ng Agrikultura (Sinag), meanwhile, commended Marcos for pushing through with his campaign promise of providing P20 per kilo rice, but said farmers needed more support.

Sinag said it hoped the government would revert import duties on the staple to 35 percent for Association of Southeast Asian Nations members and to 50 percent to nonmember nations.

It also asked for the immediate distribution of cash incentives to rice farmers, a higher palay procurement budget of P50 billion annually from the current P9 billion and a palay floor buying price of P18/kg for fresh and wet palay and P23/kg for dry and clean palay from the current P17-23/kg and P23-30/kg.

“Our farmers need all the encouragement and support to incentivize them to continue farming,” Sinag Executive Director Jayson Cainglet said.

Implementation crucial

Reyes Tacandong & Co. senior adviser Jonathan Ravelas, meanwhile, said the SONA was “by far the most aggressive stance of the government in pushing for food security, electrification and utility support.”

“There was also a boost in education and health, with a strong push on infrastructure spending and disaster response,” he added, also noting a renewed emphasis on governance and accountability amid challenging fiscal conditions.

John Paolo Rivera, senior fellow at the state-owned Philippine Institute for Development Studies, said that while Marcos did not explicitly address emerging risks such the US tariff, a broader push to empower domestic industries and strengthen local capacity was a critical step.

“[The] SONA reflects a clear intent to make growth more inclusive,” he said.

“His strong emphasis on investing in the Filipino through skills, entrepreneurship, and targeted support is a timely message as we navigate a complex global environment.”

A focus on manufacturing, electronics and agriculture, meanwhile, signals a “balanced approach” that looks inward while also keeping an eye on global competitiveness.

However, Rivera said “translating these big-picture goals into tangible outcomes” was crucial.

“With strong inter-agency convergence and follow-through, the goals laid out in the SONA can serve as a solid springboard for sustained and inclusive growth,” he said.

SONA omissions tagged | The Manila Times

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