Pro-Consumer Policies Anchor Marcos Plan for Philippine Economy

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessPro-Consumer Policies Anchor Marcos Plan for Philippine EconomyPhilippine President Ferdinand Marcos Jr. laid down his economic priorities in his annual address to Congress Monday, focusing on Filipino consumers battered by high prices due to the Iran War.Author of the article:Andreo Calonzo and Ditas B Lopez You can save this article by registering for free here. Or sign-in if you have an account.aj]bwtnzmlus5)t(sfvogkdv_media_dl_3.png Bureau of the Treasury(Bloomberg) — Philippine President Ferdinand Marcos Jr. laid down his economic priorities in his annual address to Congress Monday, focusing on Filipino consumers battered by high prices due to the Iran War.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountMarcos championed tax relief measures and lower electricity bills in his fifth State of the Nation address, vowing to help households that power the consumption-driven economy. He also pledged sustained subsidies to help an import-dependent nation that’s vulnerable to oil price swings caused by the Middle East conflict.“For as long as it takes, you can expect that the government’s support will not stop,” the president said in his speech. “We will redirect our programs toward our fellow Filipinos who are in greater need, so that the assistance can reach a wider scope and a greater number of people.”Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againHe began his address by announcing progress in a long-running graft investigation, which has weighed on growth. He said cases will soon be filed, including against his cousin, the former House speaker.The president received a standing ovation for proposing to end an unpopular charge where power consumers pay for electricity lost during delivery. That could be costly for Manila Electric Co., whose shares closed 4.7% lower Tuesday. In contrast, fast food giant Jollibee Foods Corp. shares ended the session 1.9% higher, even as the broader stock index was slightly lower. The president’s emphasis on consumption highlights how the Marcos government is trying to revive a fragile economy that has stumbled to its weakest growth since the pandemic. It also shows how Marcos is centering his economic agenda on issues directly affecting consumers, after his popularity declined.His plans include raising the ceiling for non-taxable income to 350,000 pesos ($5,675) from 250,000 pesos annually. The government would lose around 53 billion pesos in revenue in 2027 if Marcos’ proposal to raise the personal income tax exemption threshold is enacted, said Domini Velasquez, chief economist at China Banking Corp. The measure could lift economic output by 0.12 percentage point, while only having limited impact on inflation, she added.“Given the Philippines’ sluggish growth momentum, the proposal could serve as a timely pump-priming measure by supporting consumer spending, which accounts for roughly three-fourths of the economy,” she said.The official 2026 growth target was slashed to the 3.5% to 4.5% range in June, from as much as 6% before the Middle East conflict.Marcos’ pitch for relief measures covering middle-income earners should be positive for consumer companies, including Jollibee, Century Pacific Food, Inc., Universal Robina Corp. and Monde Nissin Corp., according to Maybank Securities analysts including Kervin Sisayan.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.Still, some economists are awaiting details of Marcos’ agenda to gauge how it will impact the country’s fiscal health. The president had earlier floated the idea of a supplemental budget to help respond to the Iran war’s fallout.The spending pledges, coupled with tax relief, could stall the government’s quest to bring down its fiscal deficit to 5.4% of gross domestic product this year, from from 5.63% in 2025.“While this could provide a boost to economic activity, it will be important to assess the corresponding impact on government revenues and identify measures that will preserve fiscal sustainability,” said Ruben Carlo Asuncion, chief economist at Union Bank of the Philippines. The American Chamber of Commerce of the Philippines also said that Marcos should sustain reforms, including improving the ease of doing business and promoting the digital economy. It also welcomed the president’s push for energy investments, and his support for the plan to build a US-backed AI hub.Marcos laid down an “economic populist program” in Monday’s speech as he tries to show tangible gains to the public, whose attention has been on the graft scandal and his feud with Vice President Sara Duterte, according to Anthony Lawrence Borja, an associate professor at De La Salle University in Manila.“Overall, he is setting up a tall order for the government — a probable price to pay in order to maintain political stability and control,” Borja said.—With assistance from Cliff Venzon and Claire Jiao.(Updates stock moves, adds more comments from fifth paragraph.)Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.