On July 27, President Ferdinand Marcos Jr. delivered his fifth and second to the last State of the Nation Address (SONA), which was both a reflection of his administration's accomplishments over the past four years and an outline of a roadmap for the remaining two years. The President's SONA reinforced his administration's domestic agenda over new policy initiatives. The 4 overarching themes include a high-profile anti-corruption campaign, measures to address economic and energy-related pressures, an emphasis on strategic international partnerships, and a targeted legislative agenda aimed at reducing costs for consumers and stimulating growth.
Overview
Anti-Corruption Enforcement
President Marcos opened his address by referencing the flood-control corruption scandal that dominated political discourse over the past year. He highlighted that investigations had already resulted in cases filed against contractors, senior officials, and legislators, while additional cases were reportedly being prepared by the Ombudsman, including against his cousin, former House Speaker Martin Romualdez. The administration also highlighted the recovery, freezing, and preservation of approximately PHP 25 billion in assets, with over PHP 800 million already returned to the Treasury. President Marcos effectively linked governance failures with the country's growing vulnerability to extreme weather events and natural disasters. The speech suggested that accountability in infrastructure spending is a prerequisite for improving disaster mitigation and adaptation outcomes, particularly as the Philippines continues to face severe flooding, typhoons, and other climate-related risks.
In addition, he also pointed to ongoing reforms at the Department of Public Works and Highways (DPWH), including the recruitment of new graduates as part of efforts to rebuild the agency's capacity and integrity.
Domestic Agenda and Crisis Response
A substantial portion of the SONA focused on the government's efforts to cushion Filipinos from the effects of external shocks, particularly the conflict in west Asia and the resulting energy price volatility. President Marcos outlined a range of near-term relief measures, including fuel subsidies, rice assistance, transport support, cash aid, debt-payment relief, reduced government fees, and other interventions aimed at containing inflation. He also highlighted initiatives to support vulnerable sectors, including expanded assistance for farmers, fisherfolk, and overseas Filipino workers returning from the Middle East.
Energy security emerged as a particularly important theme. The President highlighted discoveries of additional natural gas reserves through the extended Malampaya service contract, the award of 14 petroleum service contracts, and a renewed openness to exploring nuclear energy as part of the country’s long-term energy mix, reaffirming energy resilience as a top priority through the end of his term.
Beyond crisis management, President Marcos also mentioned a shift toward resilience-focused development by prioritizing the completion and repair of key infrastructure projects, advancing agricultural modernization and agrarian reform, and expanding preventive healthcare, affordable medicines, and financial protection for Filipinos.
International Partnerships and Foreign Policy
The SONA portrayed foreign policy as directly linked to economic development and national resilience. President Marcos emphasized that strong international relationships have expanded the Philippines’ trade and investment opportunities, citing the country’s 23 free trade agreements in force or under active negotiation.
He also underscored the U.S.-backed Pax Silica Industrial Hub within the Luzon Economic Corridor as a cornerstone of the administration's economic diplomacy, describing it as an AI-centered industrial ecosystem that will position the Philippines as a regional hub for advanced manufacturing and emerging technologies.
At the regional level, Marcos highlighted the Philippines’ ASEAN leadership through initiatives related to emergency rice reserves, petroleum stockpiling, and digital economic integration. He also emphasized the Philippines’ upcoming ASEAN Chairship and its role in advancing greater solidarity among member states, including through the ASEAN Digital Economic Framework Agreement (DEFA) and the ASEAN Power Grid.
While he avoided extensive discussion of the West Philippine Sea and broader U.S.-China competition, he reaffirmed the 2016 Arbitral Award on its tenth anniversary and pledged to defend it through both peaceful and legal means.
Priority Legislative Agenda:
The priority measures identified in the SONA include:
1. Sariling Kuryente Act: Expanding energy-self generation for improved energy security
2. Amendments to the Electric Power Industry Reform Act (EPIRA): Prohibiting the charging of system losses to consumers
3. Expansion of income tax exemptions: Raising the income tax exemption threshold to PHP 350,000 annually, with corresponding rate reductions for other income brackets.
4. Exemption of small businesses from the minimum corporate income tax: Exempting small businesses from the minimum corporate income tax.
5. Tax amnesty measures: Granting amnesty for unpaid income, estate, donor, and value-added taxes, including associated penalties.
Although online safety was not a central focus of the address, ongoing discussions around cybercrime, online scams, misinformation, digital platforms, and child protection online are likely to remain part of the broader legislative agenda as the Philippines accelerates digital transformation.
Analysis & Reactions
Unlike previous SONAs that emphasized infrastructure and economic recovery, this year's address focused on demonstrating tangible government action and responsiveness to public frustrations over corruption and high costs of living – issues that have become increasingly salient ahead of the 2028 elections.
Business groups and economic observers are likely to welcome several components of the speech, particularly the proposed tax relief package, continued investment promotion efforts, and measures aimed at lowering electricity costs, which remain among the highest in Southeast Asia. On the other hand, opposition figures and civil society groups arguedthat the address provided limited discussion of persistent structural challenges, including poverty, wage growth, governance reforms beyond the flood-control investigations, and broader concerns regarding democratic institutions. Several opposition voices characterized the speech as heavy on accomplishments and promises but lighter on concrete implementation timelines and measurable outcomes.
The SONA highlighted the country's evolving political landscape. House Speaker Faustino “Bojie” Dy III and other congressional leaders signal Congress’ support for the administration’s priority agenda, particularly proposed reforms on energy affordability, tax relief, investment promotion, and economic resilience, while legislative leaders emphasized their commitment to working with Malacañang during the remaining two years of the Marcos administration. The coming legislative sessions will provide an important test of President Marcos' continued political influence during the remainder of his term. On the other hand, roughly half of the Senate was absent from portions of the proceedings or related SONA events, while Vice President Sara Duterte notably skipped the address altogether.
