‘Big, bold reforms’ seen as step in right direction
With the Marcos administration now pushing for “big, bold reforms,” economists said the test now rests on whether these initiatives can effectively attract private investment while remaining fiscally sustainable.
On Friday last week, the government’s key economic agencies presented major initiatives in infrastructure, trade and ease of doing business to tycoons and top private sector leaders in a bid to advance “big, bold reforms” amid waning investor confidence and sluggish economic growth.
Speaking to reporters at a press briefing, Finance Secretary Frederick Go said the private sector was an “indispensable partner in national development,” hence the need to engage the leaders in government reforms.
“The briefing’s objective is clear: we inspire optimism, renew investor confidence, and encourage greater investments in the Philippines. Despite the challenges of the past year, our long-term fundamentals remain strong and intact,” Go said.
For economists, the Marcos administration’s “big, bold reforms” appear fiscally sustainable and point in the right direction, but the government must match ambition with execution to translate policy into growth.
“Investors want predictability, speed, and rules that don’t change mid‑game. Accountability too,” Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., said.
“The government’s next move should be simple: treat the private sector as a real partner, cut friction, honor contracts, and make decisions faster. If we create a stable and reliable environment, capital will follow—and that’s how we bring real life back into the economy,” he added.
Echoing this view, Robert Dan Roces, chief economist at SM Investments, said the reforms were not a “silver bullet” and should demonstrate to the private sector that the government “has skin in the game.”
Reforms
“Growth will revive only if these reforms crowd in private investment rather than rely on public spending alone. The private sector is critical—not just as a source of capital, but as the engine that turns policy intent into actual jobs, output, and productivity gains,” Roces said.
The administration engaged with top private-sector leaders in a three-hour session divided into four panels.
Executives in attendance included SM Investments Corp. vice chair Teresita Sy-Coson, and Ayala Corp. chair Jaime Augusto Zobel de Ayala.
Go highlighted several initiatives, including the recently announced 14-day visa-free entry for Chinese businessmen and tourists through Manila and Cebu airports, and the resolution of the P4.32-billion funding gap for the Comprehensive Automotive Resurgence Strategy program.
He also mentioned a digitized, risk-based audit system for the Bureau of Internal Revenue, and a single digital portal to cut red tape for customs transactions.
Leading the biggest reforms is the Department of Public Works and Highways, which has been at the center of the flood-control corruption scandal that has weighed on economic growth since.
Infrastructure spending is now expected to rebound in the first quarter, with up to P300 billion on the table for long-delayed road maintenance and stalled projects.
The Department of Transportation vowed to expedite big-ticket transport infrastructure projects and address right-of-way issues.
On the agricultural side, the Department of Agriculture plans to target high-poverty areas with production potential but low productivity, increase investment in logistics and post-harvest infrastructure, and strengthen the integrated agricultural extension system, among others.
Meanwhile, the Department of Trade and Industry is working to expand market access through free trade negotiations and empower micro, small, and medium enterprises (MSMEs).
For its part, the Department of Energy is developing a 10-year master plan for the Green Energy Auction Program (GEAP).
The Department of Environment and Natural Resources is pursuing reforms for faster, smarter environmental regulation, including digitalized permitting, stronger monitoring and compliance assurance, and a roadmap for critical materials.
