Key Takeaways from Philippine President Marcos Second State of the Nation Address

On Monday, July 26, 2023, Philippine President Ferdinand Marcos Jr. gave his second State of the Nation Address (SONA), emphasising the accomplishments of his administration over the previous year in an effort to reassure the Filipinos that the country’s economy is improving.

Marcos asserted with assurance in a speech that was a little bit shorter than his first SONA, "I know that the state of the nation is sound and is improving."

Here’s the summary of the issues Marcos Jr tackled in his address.

Independent Foreign Policy

Marcos claimed that his "friend to all, enemy to none" diplomacy tactic worked. He committed to safeguard the country's interests through continual conversation and diplomatic initiatives with foreign countries.

He boasted that his 13 foreign trips to ten countries had resulted in total investment (pledges) of US$71 billion, with the potential to create 175,000 employments.

Apart from existing bilateral and multilateral agreements with neighboring countries in East Asia and Southeast Asia, Marcos promised to build new international alliances. He referred to the country's participation in the Regional Comprehensive Economic Partnership (RCEP).

He said, “Our existing bilateral and multilateral trade agreements, notably within the ASEAN framework, and with Japan, and with Europe, allow us to leverage our competitive advantages and reap economic benefits. We will continue to forge more of these international partnerships that will lead to a more balanced trade strategy and a healthier economic position.”

“The Regional Comprehensive Economic Partnership or RCEP is now in force. It is a multilateral trade arrangement with the ASEAN and other countries, such as Australia, China, Japan, Korea, and New Zealand. We can now have competitive access to a regional market that comprises two billion people.”

“As we address our weaknesses and develop competitiveness in other potential areas, we must also play to our strengths. Our competitive advantage must be leveraged.”

Sovereign Rights

The chief executive stressed that he would continue to defend the Philippines’ sovereignty by diplomatic means in the South China Sea dispute.

In support of an international system based on norms, Marcos declared, "We will defend our sovereign rights and maintain our territorial integrity."

Chinese territorial claims in the South China Sea were denied in a July 2016 arbitration decision in The Hague.

The Philippines' security strategy has focused on strengthening ties with allies like the United States and Japan and actively pursuing international diplomacy. In his statement on Monday, Marcos stated that the country's interests will always come first, "We will always pursue constant dialogue and diplomatic approaches to the resolution of any issue that may arise.”

Improving the Economy

In his first year as president, Marcos claimed "improved" results in inflation, investments, and revenue collection, highlighting a "revived and rejuvenated" economy. According to data from the Philippine Statistics Authority, he claimed the nation's gross domestic product increased by 6.4% in the first quarter of 2023.

A recent survey by a Manila-based firm found that the majority of Filipinos identify inflation as the most pressing issue hurting Marcos’ overall performance.

This was something the president acknowledged in his address, saying that despite headwinds, the Philippines is still among the fastest-growing economies in the world and that inflation is “moving in the right direction.”

He noted that “while global prospects were bleak,” the Philippines posted a 7.6% economic growth in 2022, its highest in 46 years.

“In spite of the difficulties, we are transforming the economy. We are stabilizing the prices of all the critical commodities,” he added.

On Energy Enhancement

Additionally, Marcos elaborated on the government's efforts to increase energy production and promote renewable sources.

His administration aims to increase the proportion of renewable energy in the balance of energy sources to 35% by 2030, and then to 50% by 2040. In order to accomplish this, according to Marcos, the government has opened renewable energy projects to foreign investment, as 126 additional renewable energy contracts were awarded over the past year.

The president also pledged to completely electrify the nation by the conclusion of his term in 2028.

The president also pledged to push for oil and gas exploration in other regions of the nation, directing future exploration efforts towards the Bangsamoro Autonomous Region in Muslim Mindanao.

War on Smugglers

Marcos praised the Kadiwa programme for offering inexpensive agricultural products and pledged to make it a national initiative. Despite the relatively lower prices of the commodities supplied in Kadiwa stores, consumers were still affected by the high inflation rate in the first quarter of the year by higher costs for utilities, housing, and food.

In his discussion of the welfare of farmers and fishermen, he called for the revision of the Fisheries Code and listed the new Agrarian Emancipation Act's passage into law as one of his administration's accomplishments. He also emphasised the government's ongoing efforts to modernise agriculture and supply farmers with biofertilizers and other inputs.

Marcos emphasized that his administration is going after agricultural traffickers, hoarders, and price fixers. He promised to address the issue of skyrocketing commodity prices and aid both farmers and consumers.

The president declared, " We're running after them. The days of those smugglers and hoarders are now numbered.”

Without getting into specifics, Marcos declared that his administration would keep up its agrarian reform efforts.

-Asia Media Centre