Philippines unveils ‘big bold reforms’ to shore up investor confidence

By Aubrey Rose A. Inosante, Reporter

The Philippine government on Friday pledged “big bold reforms” that are aimed at restoring investor trust as it tries to contain the economic fallout from a widening corruption scandal.

Finance Secretary Frederick D. Go said the economic team unveiled reforms before the largest names and groups in the private sector on Friday, which are expected to improve the ease of doing business and build the needed infrastructure.

“The briefing’s objective is clear, to inspire optimism, renew investor confidence, and encourage greater investments in the Philippines,” Mr. Go said during the “Big Bold Reforms: the Philippines 2026” press briefing held in Taguig City.

A corruption scandal over anomalous flood control projects has dampened investor sentiment and contributed to slower growth, household consumption and public spending.

One of the biggest announcements was the restoration of the P4.32 billion funding gap for the Comprehensive Automotive Resurgence Strategy (CARS) program, which had offered car manufacturers fixed investment support and production-volume incentives.

“The government finalized a funding solution for the CARS program, and therefore, car manufacturers enrolled in the program can now be assured that the government will fulfill its commitment to investors,” Mr. Go said.

President Ferdinand R. Marcos Jr. had earlier vetoed the CARS program funding under the unprogrammed appropriations of the 2026 budget, along with P250 million for the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program.

Mr. Go said other reforms include visa‑free entry for Chinese businessmen and tourists for up to 14 days, as well as plans by the Bureau of Internal Revenue to roll out a digitized, risk‑based audit system this year and to reduce the frequency of Letters of Authority.

The Bureau of Customs is also rolling out a national single‑window trade facilitation platform.

Mr. Go also urged private sector stakeholders to capitalize on the Philippines’ chairship of the Association of Southeast Asian Nations (ASEAN) this year.

“This is a clear signal that the Philippines is moving forward decisively and not being distracted,” he added.

‘NOT A DOOMSDAY SCENARIO’
The Finance Chief also noted that the government’s current projection of 5-6% gross domestic product (GDP) growth this year remains above both the Southeast Asian and global averages, rejecting concerns that it signals a “doomsday scenario.”

“The growth target of north of 5% or better in 2026 should not be dismissed as a doomsday scenario. It’s not,” he said.

Economy Secretary Arsenio M. Balisacan earlier said the Philippines’ economic growth may have slowed to 4.8% to 5% in 2025 due to corruption.

Mr. Go said this forecast still outpaces the ASEAN growth average of 3.8% and the global growth average of 2.9%.

INFRASTRUCTURE PUSH
At the same time, government agencies are now ramping up infrastructure spending in early 2026 after a “rough” second half in 2025 due to the graft scandal.

Public Works Secretary Vivencio B. Dizon said the department aims to boost spending while ensuring funds are used wisely.

“Our target spend for the first quarter is anywhere between P200 billion to P250 billion in the first quarter,” Mr. Dizon said, noting that this depends on how much the government can raise.

He added the Department of Public Works and Highways (DPWH) will prioritize “basics” such as road and bridge maintenance, along with unfinished projects spanning hospitals and classrooms.

Meanwhile, the Department of Transportation (DoTr), which has most of its capital outlay allocated for foreign-assisted projects, said it can obligate around P60 billion in the first quarter.

“The budget for DoTr for the entire year right now is around P103 billion, and the DoTr center alone is like P75 billion. But we have unprogrammed appropriations so far as the loan process is concerned,” Transportation Secretary Giovanni Z. Lopez said.

In the same briefing, Mr. Go announced that the Department of Finance will begin reporting the general government debt-to-GDP ratio, along with national government debt, in line with International Monetary Fund (IMF) standards.

“Going forward, the data point shared with the media and our private stakeholders will be the general government debt, which currently stands at 54% to 55% of GDP,” he said.

This figure is well below the IMF’s 70% debt-to-GDP threshold.