Manila: President Ferdinand R. Marcos Jr. has expressed confidence that the Philippine economy would remain resilient and continue to expand despite global headwinds, citing investor confidence and government measures to cushion the impact of the Middle East crisis. Speaking to Japanese media at Malaca±an Palace on Monday, Marcos said the government is recalibrating its approach to augment and stabilize the country's fuel supply.
According to Philippines News Agency, the Philippines is working with Southeast Asian nations and international partners to enhance energy security mechanisms, including emergency security mechanisms, supply coordination, and potential joint stockpiling arrangements. Marcos emphasized the sustained engagement with fellow Association of Southeast Nations (ASEAN) member-states and major economies to ensure a stable energy supply. 'We will continue to do so, because we are really redefining the way that we do things when it comes to oil, when it comes to petroleum, when it comes to petroleum products. The effects are, as everybody knows, are widespread,' Marcos said.
He highlighted concerns about economic stagnation, where GDP growth remains stagnant while inflation increases. The government is trying to control inflationary pressures, particularly in food and fuel, by focusing on containing price increases in essential commodities. Marcos mentioned interventions such as efforts to keep prices of basic goods stable, implementing a price cap on imported rice, and providing targeted subsidies for vulnerable sectors like public transport workers.
Marcos underlined the necessity of instituting new measures to keep the transport sector operational amid global oil volatility. 'The transport sector is the largest user of fuel. And so that is very important because we want to keep the system, the economic system, continuing to function,' he noted. Despite challenges in controlling inflation driven by external factors such as oil, government efforts are concentrated on food affordability and direct assistance to vulnerable sectors.
The importance of sustaining public spending to support economic growth was stressed by Marcos, who stated that government expenditures are being accelerated and redirected toward direct support for citizens and infrastructure programs. Fiscal adjustments, including cost-saving measures across agencies, are being implemented to fund subsidies and social support programs without disrupting overall economic activity. 'With all the spending that we are doing for providing benefits for people who need assistance, for providing subsidies, for providing discounts, the fuel discounts, we have tried very, very hard,' Marcos said.
Marcos expressed optimism that economic performance will improve in the coming quarters as government spending accelerates and stabilization measures take effect. Despite global challenges, investor interest in the Philippines remains strong, supported by economic policy reforms and better incentives to attract foreign investments. He noted, "Luckily, I suppose, or at least as I said, we are still continuing to see marked interest in investment in the Philippines. And perhaps this is why."
The government is also prioritizing micro, small, and medium enterprises, which account for a significant share of employment in the country, as part of efforts to keep the economy resilient.
