Strategic Insights from President Marcos Jr.'s 2024 State of the Nation Address

President Ferdinand Marcos Jr.'s 2024 State of the Nation Address (SONA) presented a broad and strategic vision for the Philippines, reflecting on the accomplishments over the past year and setting the course for future development. This address highlighted several key initiatives aimed at bolstering various sectors critical to the nation’s progress. This report provides a comprehensive overview of these initiatives and delves into their significance for members of the Institute of Corporate Directors (ICD).

President Ferdinand "Bongbong" Marcos Jr. delivers his State of the Nation Address (SONA) on July 22, 2024. Photo from Rappler.

Key Initiatives and Developments

Food and Water Security

President Marcos Jr. underscored the:

• Ongoing challenge of high food prices, particularly rice.

• Highest rice yield in decades.

• Significant distribution of seeds, seedlings, and fertilizers to farmers.

• Future focus: prioritize local production, enhance technical and financial support, and implement modern farming techniques to ensure food security.

Agrarian Reform

The administration continues to push forward with agrarian reform:

• Over 130,000 land titles distributed to farmers in the past two years.

• Plans to expedite the partitioning of collective Certificates of Land Ownership Award (CLOA).

• Additional financial and technical assistance to farmers through crop insurance and modern agricultural methods.

Climate Change and Disaster Risk Reduction Management (DRRM)

President Marcos Jr. highlighted the country's vulnerability to climate change.

• Emphasized the need for proactive climate responsibility and justice on the global stage.

• The Philippines secured a seat on the Board of the Loss and Damage Fund.

• Built almost 100 evacuation centers in the past two years.

• Initiated operations of a Disaster Response Command Center.

• Completed over 5,500 flood control projects.

• Initiatives like “KALINISAN sa Bagong Pilipinas” to maintain community cleanliness and prevent disaster-related issues.

The Department of Public Works and Highways (DPWH) is currently closing the gaps on the 3.17-kilometer Panguil Bay Bridge Project, set to become the longest sea-crossing bridge in Mindanao. Photo from DPWH.

Infrastructure Development

The President highlighted remarkable progress in infrastructure development:

• Over 12,000 kilometers of roads and more than 1,200 bridges constructed or upgraded.

• Key projects: Panguil Bay Bridge and the Guicam Bridge

• Ongoing railway projects: including the Metro Manila Subway, MRT-7, and the North-South Commuter Railway.

Digital Infrastructure

Significant advancements in digital infrastructure were emphasized:

• Completion of Phase 1 of the National Fiber Backbone.

• Phases 2 and 3 expected to be completed by 2026.

• Implementation of the National Cybersecurity Plan to safeguard systems against cyberattacks.

This comprehensive blueprint aims to protect the country's digital infrastructure and ensure that the speed and quality of IT development mirror the pace and trajectory of the nation's economic aspirations.

Energy

Efforts to address power needs include:

• Development of microgrid and off-grid systems.

• Upgrading key transmission lines like the Mariveles-Hermosa-San Jose transmission line.

• Focus on ensuring reliable power supply to meet growing demand and addressing systemic power shortages.

Education

The administration has prioritized improving the quality of education through:

• Digitalization initiatives, enhancing teacher support, and refining the curriculum.

• Increased budget allocations for education.

• Expanded technical-vocational education and training (TVET).

• Integration of advanced learning systems in fields like robotics and artificial intelligence.
  

TVET has been particularly emphasized, recognizing its high employability rate. The collaboration between DepEd, CHED, DOLE, and TESDA aims to incorporate TVET in the Senior High School curriculum, boosting the employability of students.

Healthcare and Social Protection

• Expansion of PhilHealth benefits, including coverage for serious illnesses and more generic medicines.

• Establishment of new Urgent Care and Ambulatory Service Centers.

• Super Health Centers to provide primary medical services to underserved areas.

Economic Policies and Investment

The President underscored the:

• Promotion of investment-led growth through capital market reforms and green lanes.

• Rationalized incentives scheme under the CREATE Act.

• “Green-lane certified” projects totaling about three trillion pesos.

• Generated investments amounting to over one trillion pesos and more than 100,000 new jobs.

Efforts to reduce unnecessary business costs include the removal of fees and charges by local government units for transporting goods and merchandise on national roads, urging LGUs to refrain from collecting similar fees for local road use.

The OFW Lounge located at NAIA Terminal I serves as a 24/7 VIP lounge for “modern-day heroes.” Photos from PEP/House of Representatives.

Labor and Employment

The administration is focused on generating not just jobs but quality and competitive jobs through aggressive infrastructure development, business-friendly policies, and investment promotions.

• Employment rate increased to 95.9%.

• Notable rise in high-quality jobs and decrease in underemployment to 9.9%.

• Special facilities and services for OFWs like the OFW Lounge at NAIA and the Seafarer’s Hub in Manila.

Efforts have been made to assist OFWs affected by conflicts and disasters and ensure their safe return home.

Tourism

The President emphasized the potential of the tourism sector, highlighting infrastructure and digital reforms aimed at enhancing the overall tourist experience.

• The focus is now on “experiential tourism,” with focus areas: food, culture, heritage, arts, education, halal and Islamic traditions, dive, cruise, farm, eco-tourism, and sports.

• Expanded the “one town, one product” concept to inspire high-quality products and services showcasing community history, traditions, and talents.

A depiction of the maritime dispute in the West Philippine Sea, highlighting the contested areas between Vietnam, the Philippines, and China, with naval vessels from the involved nations navigating the contested waters. Photo from Inquirer.

International Relations

• The Philippines continues to assert its rights and interests through diplomatic channels.

• The country secured a resolution from the United Nations promoting and protecting the enjoyment of human rights of seafarers.

• The administration is committed to strengthening defense through self-reliance and partnerships with like-minded states.

Strategic Opportunities and Insights for Corporate Directors

The President’s focus on food security, infrastructure development, and digital transformation aligns closely with the ICD’s advocacy for sustainability and good corporate governance, offering opportunities for ICD members to promote sustainable practices and support infrastructure projects. The government's initiatives to foster investment-led growth and create a business-friendly environment provide opportunities for ICD members to engage in strategic investments particularly in renewable energy, digital infrastructure, and manufacturing sectors.

The administration’s commitment to enhancing education quality and expanding TVET is crucial for developing a skilled workforce, providing ICD members with the potential to access a more skilled and qualified workforce, which can enhance productivity, innovation, and overall business performance. ICD members can contribute by supporting educational programs and training initiatives that align with industry needs.

The expansion of healthcare benefits and the establishment of new health centers underscore the importance of corporate involvement in healthcare initiatives, where ICD members can advocate for programs that improve community health outcomes and governance in the health industry. Lastly, the emphasis on digital infrastructure and cybersecurity aligns with ICD’s goals of promoting the strategic integration of technology with business objectives, efficient resource and risk management, and continuous innovation.

By aligning their corporate strategies with the government’s vision, ICD members can play a crucial role in fostering sustainable growth, enhancing corporate governance, and supporting the overall development of the Philippines.