By Aubrey Rose A. Inosante, A reporter
The Philippine government on Friday promised “big, bold reforms” aimed at restoring investor confidence as it tries to stave off an economic downturn stemming from a growing corruption scandal.
Finance Secretary Frederick D. Go said the economic team presented the reforms before big names and private sector groups on Friday, which are expected to improve ease of doing business and build the necessary infrastructure.
“The purpose of the forum is clear, to inspire hope, to renew the confidence of investors, and to encourage greater investment in the Philippines,” said Mr. Go during the “Big Bold Reforms: the Philippines 2026” press conference held in Taguig City.
A corruption scandal over lavish flood control projects has dampened investor sentiment and contributed to slower growth, household consumption and public spending.
One of the major announcements is the restoration of the P4.32 billion funding gap in the Comprehensive Automotive Resurgence Strategy (CARS) program, which provided automakers with consistent investment support and production volume incentives.
“The government finalized the financing solution for the CARS program, therefore, car manufacturers who are registered in this program can now be sure that the government will fulfill its commitment to investors,” said Mr.
President Ferdinand R. Marcos Jr. had previously vetoed funding for the CARS program under the 2026 unscheduled budget, as well as P250 million for the Revitalization of the Automobile Industry to Enhance Competitiveness (RACE) program.
Mr. Go said other changes 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 introduce a digitized, risk-based audit system this year and reduce the frequency of Letters of Authority.
The Bureau of Customs also launched a national platform to facilitate one-stop trade.
Mr. Go also urged private sector stakeholders to take advantage of the Philippines’ chairmanship of the Association of Southeast Asian Nations (ASEAN) this year.
“This is a clear sign that the Philippines is moving forward with determination and is not distracted,” he added.
‘NOT A PIECE OF THE DATE OF WRITING’
The Finance Minister also noted that the government’s current projection of GDP growth of 5-6% this year is still higher than Southeast Asian countries and the rest of the world, rejecting concerns that it reflects a “doomsday scenario.”
“The north’s growth target of 5% or better by 2026 should not be taken as a doomsday scenario. It is not,” he said.
Economy Secretary Arsenio M. Balisacan earlier said that economic growth in the Philippines may drop to 4.8% to 5% in 2025 due to corruption.
Mr. Go said the forecast is still ahead of ASEAN’s average growth of 3.8% and the global growth average of 2.9%.
PUSH OF THE WINDOW
At the same time, government agencies are now mobilizing infrastructure spending in early 2026 after a “difficult” second half in 2025 due to the graft scandal.
Public Works Secretary Vivencio B. Dizon said the department intends to increase spending while ensuring that the funds are used appropriately.
“Our first quarter spending target is between P200 billion to P250 billion in the first quarter,” said Mr. Dizon, noting that this depends on how much the government can raise.
He added that the Department of Public Works and Highways (DPWH) will prioritize “basic things” such as the repair of roads and bridges, as well as unfinished projects including hospitals and classrooms.
Meanwhile, the Department of Transport (DoTr), which has a large budget allocated to foreign-aided projects, said it could commit about R60 billion in the first quarter.
“The DoTr budget for the whole year is currently around P103 billion, and the DoTr agency alone is like P75 billion. But we have an unplanned budget in terms of the loan process,” said Transportation Secretary Giovanni Z. Lopez.
In this forum, Mr. Go announced that the Ministry of Finance will start reporting the general ratio of government debt to GDP, as well as national government debt, in line with International Monetary Fund (IMF) standards.
“Going forward, the data point shared by the media and our private stakeholders will be the general public debt, which currently stands at 54% to 55% of GDP,” he said.
This figure is well below the IMF’s 70% debt-to-GDP limit.
