Strategic Insights from President Marcos Jr.'s 2025 State of the Nation Address: Implications for Corporate Directors

By: Hanna Arrojo and Nicolie Narce

Intern, Research and Development

Institute of Corporate Directors

Every fourth Monday of July, the Philippine President delivers the constitutionally mandated State of the Nation Address (SONA), offering a comprehensive overview of the country's economic, political, and social landscape, alongside government accomplishments, ongoing initiatives, and future objectives.

In his fourth SONA, President Ferdinand "Bongbong" Marcos Jr. spotlighted critical national issues, outlining current efforts and future strategies to bolster key sectors vital to the nation's progress. This article delves into these pivotal topics, highlighting their significance and impact on members of the Institute of Corporate Directors (ICD).

Key Takeaways from the SONA

Governance

President Marcos Jr. emphasized his administration's drive for improved governance in the remaining years of his term. He called for unity and collective action in national service, pushing for enhanced government performance.

Labor & Enterprise

The President remains focused on strengthening job creation and entrepreneurial endeavors:

• The Department of Labor and Employment (DOLE), Department of Trade and Industry (DTI), and Department of Social Welfare and Development (DSWD) will continue their joint efforts in job creation and livelihood support.

• The government plans to expand low-interest, collateral-free loans for small businesses.

• Free training and funding support will be provided for 2.5 million low-income households to establish microenterprises.

  
  

Agriculture & Food Security

The administration reiterated its commitment to agricultural development and food affordability:

• The PHP 20/kilo rice initiative launched in several areas is backed by a PHP 113 billion allocation to Department of Agriculture (DA) programs for its sustainability and expansion.

• Rice traders were warned against price manipulation, with violators facing prosecution.

• Targets include increased production of pork and other crops through local support and biosecurity measures.

• Over 8.5 million farmers and fisherfolk received aid.

• The government will continue developing farm-to-market roads and providing more irrigation systems, farm equipment, fiberglass boats, and rice processing facilities.

• Plans include planting 15 million hybrid and high-quality coconut seedlings this year to boost the coconut industry, with a broader goal of planting 100 million trees nationwide.

• The Department of Science and Technology (DOST) will promote scientific innovations and modern farming techniques like intercropping and off-season planting to support farmers.

• Emphasis was placed on expanding key industries such as automotive, electronics, biotechnology, pharmaceuticals, critical minerals, textiles, Halal products, construction, and power generation.

• Efforts are underway to fast-track the distribution of land titles (CLOAs, E-Titles, COCROMs) to help farmers own their land and be free from agrarian debt.

Education

The administration reinforced its commitment to improving educational quality and accessibility:

• Expanded school mental health programs received a PHP 1 billion allocation, with more counselors hired.

• Over 300 Barangay Child Development and Bulilit Centers were developed.

• The Yakap Caravan was launched, offering free health checkups, lab tests (including cancer screening), and medicines for students and teachers.

• Digital tools such as smart TVs, free Wi-Fi, and Bayanihan SIM cards with load are being prepared to support digital learning.

• 60,000 new teaching posts were created, and nearly 100 non-teaching tasks were removed to reduce paperwork and support educators. Remaining work processes are being digitized, and laptops are being provided to teachers.

• Teacher overload and overtime are now compensated.

• 22,000 new classrooms have been built, with 40,000 more planned.

• Scholarships and agriculture-focused programs are being introduced to attract youth to farming.

• President Marcos urged DOLE and DSWD to continue internship and pre-employment programs for college students.

• Laptops will be distributed to teachers, with transparency in procurement ensured.

Free Tertiary Education

The President highlighted significant achievements in free tertiary education:

• The Philippines now ranks second in Southeast Asia for youth enrollment in college and TechVoc programs.

• Over 2 million students benefit from the government’s free higher education program annually, with an additional 260,000 pupils supported.

• More than 200,000 TESDA scholarships were awarded in 2024 alone.

• For 2026, the government provided almost PHP 60 billion for free college and technical-vocational education.

• Funding support for tertiary education over the next three years will prioritize students under the Pantawid Pamilyang Pilipino Program (4Ps) and Listahanan.

• The government reaffirmed its long-term vision of having one scholar or TESDA graduate per Filipino family.

Tech-Voc Education Expansion

The President underscored the integration of Technical-Vocational Education and Training (TVET) into the Senior High School curriculum through the TESDA program:

• This program, already implemented in various schools, allows Senior High School students to earn National Certificates (NC I and NC II) through TESDA-accredited training in specialized fields like bookkeeping, agribusiness production, electrical installation and maintenance, computer systems servicing, animation, and graphic design.

• These qualifications are recognized by employers and are improving employability both locally and internationally.

Presidential Merit Scholarships

A new program, the Presidential Merit Scholarships, was established to recognize exemplary academic achievement among graduating high school students, awarded to those who graduate with Highest Honors. While official guidelines are pending, this program signals the government's push to enhance merit-based incentives and promote academic excellence.

Poverty Reduction and Social Protection

The President highlighted remarkable progress in poverty reduction and social protection:

• The 4Ps program has benefited over 5 million families since 2022. Local Government Units (LGUs) were instructed to prioritize the integration of homeless individuals into 4Ps and other DSWD programs.

• The "Walang Gutom" program already reaches 600,000 nutritionally vulnerable families and aims to expand to 750,000 families by 2027.

• The DSWD and Department of Education (DepEd) are sustaining feeding programs in daycare centers and public schools, providing nutritious food and milk to over 3.5 million children. An additional PHP 1 billion has been set aside to increase feeding programs next year.

Promotion of Active Lifestyles

The administration aims to promote active lifestyles:

• The Philippine Sports Commission (PSC) will provide track and field ovals for open public use in Pasig, Manila, and Baguio.

• Engagement in people-oriented health activities like fun runs, Zumba, and grassroots sports competitions is encouraged to address increasing obesity among Filipinos.

• LGUs were encouraged to open parks and plazas and implement Car-Free Sundays to promote physical activity.

• The government will continue to push the development of national sports through competitions like the Palarong Pambansa and Batang Pinoy Games.

• A new national sports program is planned for public schools, emphasizing the revitalization of sports clubs, intramurals, and competitions.

• President Marcos also acknowledged prominent Filipino athletes like Senator Manny Pacquiao, Hidilyn Diaz, Carlos Yulo, EJ Obiena, Alex Eala, and the Philippine Men's Curling Team.

Healthcare

Healthcare remains a top government priority, alongside education and poverty reduction:

• At least one doctor has been deployed to every city and municipality across the country.

• The President declared the upgrading of public hospitals through the opening of 53 Bagong Urgent Care and Ambulatory Service (BUCAS) facilities across 32 provinces. These centers offer free checkups, X-rays, laboratory tests, and outpatient care.

• PhilHealth now covers heart disease treatments (stents, open-heart surgery, valve replacement, post-kidney transplant care) and provides free year-round dialysis treatments, including associated drugs.

• A Cancer Assistance Fund was launched, making funds available for HPV vaccines and allocating PHP 1.7 billion for cancer patient medicines not covered by PhilHealth.

• Increased PhilHealth coverage also includes a maximum of PHP 47,000 for severe dengue in children, an increase from PHP 16,000 to PHP 87,000 for cataract operations, and coverage for therapy and assistive aids for individuals with disabilities (PWDs).

• Procedures for seeking medical aid will soon be integrated into the eGov PH app for greater accessibility.

Infrastructure & Utilities

The administration continues to prioritize access to power, clean water, and modern infrastructure to drive inclusive growth:

• 2.5 million households now have electricity, with 3 million remaining a priority.

• Around 200 new power plants are targeted for completion in the next three years to electrify 4 million households, over 2,000 factories, and about 7,000 offices and businesses.

• The Department of Energy (DOE) and the National Electrification Administration (NEA) will extend power to areas with limited electricity access.

• Plans include electrifying 1 million more homes using solar home systems by 2028.

• The DOE will push the Net Metering Program to help lower electricity costs, and the Lifeline Rate subsidy will be expanded to benefit more low-income families.

• A state of calamity was declared in Siquijor due to power issues; President Marcos Jr. ordered DOE, NEA, and ERC to restore electricity by year-end and implement long-term solutions.

• Government large-scale projects prioritize bulk water supply and access to potable water, especially for island communities, addressing the over six million consumers still facing poor water service.

• The Local Water Utilities Administration (LWUA) is taking strong action against underperforming water districts.

• The Build Better More program continues, including the building and upgrading of roads, bridges, railroads, airports, seaports, irrigation facilities, and public housing.

• Announced enhancements in mass transport include more fare discounts for LRT and MRT passengers.

Free Love Bus Revival and Other Projects

President Marcos Jr. highlighted progress in infrastructure projects:

• The "Love Bus" free public transport service will be brought back, starting in Davao and Cebu, and eventually expanding throughout Visayas and Mindanao.

• Large-scale transportation and infrastructure projects include the completed Nalil-Sikkiat Bridge in Tawi-Tawi, the Bataan-Cavite Interlink Bridge (construction to start before year-end), and the Malassa-Lupa Pula Bridge (expected to open in 2026).

• Rehabilitation efforts are underway for the PNR Bicol Line, Binahan Bridge, and SLEX Toll Road 5.

• The Mindanao Transport Connectivity Improvement Project is under active development, and rehabilitation of Guadalupe Bridge is in progress.

• The President cited the collapse of the PHP 1-billion Cabagan-Sta. Maria Bridge in Isabela, emphasizing that the safety of hanging bridges, particularly in rural regions, is now a top priority.

Internet Connectivity

Significant strides have been made in countrywide internet speed and connectivity:

• Completion of Phases 1, 2, and 3 of the National Fiber Backbone Project has significantly boosted internet infrastructure.

• The administration has fixed 19,000 free Wi-Fi hotspots nationwide.

• Over 1 million SIM cards offering free data were distributed, particularly to schools in disadvantaged areas.

• The government has accelerated the rollout of cellular towers in Geographically Isolated and Disadvantaged Areas (GIDAs).

• The President assured that the entire public school system will be internet-enabled by the end of 2025.

eGovPH App Expansion

Launched in 2023, the eGovPH application has expanded to include over 40 government services, such as driver’s license renewal, PhilHealth, Pag-IBIG, and GSIS management, customs and immigration declarations, OFW document access, bio-data creation, and national/government ID management. Future services include NBI Clearance and Beep Card integration for MRT/LRT and eTIN services from the Bureau of Internal Revenue (BIR).

LTO Backlog Clearance

The Land Transportation Office (LTO) has resolved the motorcycle license plate backlog since 2014. The administration instructed the agency to issue new vehicle plates and registrations within three days.

Peace and Security

The President highlighted progress in peace and security:

• Hundreds of former rebels have been successfully reintegrated into society, receiving livelihood and community development assistance.

• There are no more active guerrilla fronts, and efforts are focused on preventing their return.

• The modernization of the Philippine National Police (PNP) and Armed Forces of the Philippines (AFP) continues with new firearms, vehicles, and equipment.

• The AFP, PNP, and former rebels are now collaborating to achieve peace in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).

Crime and Human Rights

The administration is actively investigating cases of missing individuals connected to illegal sabong syndicates. The President reiterated commitment to uphold human rights and pursue accountability.

Anti-Drug Campaign

The administration confiscated around PHP 83 billion in illegal drugs. More than 153,000 people have been detained, including over 9,600 high-value detainees and 677 government officials.

Foreign Policy

The President reasserted the country's independent foreign policy, declaring, "A friend to all, an enemy to none." Key foreign policy achievements include the release of Filipino hostages by Houthi rebels with assistance from Oman, clemency granted to over 600 overseas Filipinos in UAE, Qatar, and Bahrain, and the Philippines hosting the ASEAN Summit in 2026.

Disaster Preparedness

The government is actively improving disaster preparedness and response to climate change:

• Active use of advanced technology, including Doppler radars, seismic stations, and command cars, is enhancing early warning systems and emergency response.

• Proposals to build modern evacuation centers aim to avoid disrupting school activities.

• The President emphasized discipline, vigilance, and solidarity in saving lives during calamities, calling on citizens to participate in preparedness programs, engage in drills, obey evacuation orders, practice proper waste disposal, and assist others during crises.

Appeal to the People

The President called on the Filipino people to maintain their focus on the country's direction toward progress, promoting patriotism, courage, diligence, and compassion as fundamental Filipino values that foster change. He concluded his speech by saying: "Tayo ito. Tayo ang Bagong Pilipino."

Strategic Implications for Corporate Directors

President Marcos Jr.'s 2025 State of the Nation Address presents a clear roadmap for inclusive growth, digital transformation, and enhanced governance. For board directors, the SONA underscores the critical importance of aligning corporate priorities with these national development goals.

Specifically, boards should consider strategic partnerships that support:

• Micro, Small, and Medium Enterprise (MSME) development: Leveraging government initiatives for loans and training.

• Workforce upskilling and and reskilling: Supporting programs that align with the government's focus on tech-voc integration and digital literacy in schools.

• Agriculture modernization: Exploring investments and collaborations that enhance food security and support farmers.

• Expanded access to education and healthcare: Identifying opportunities to contribute to these vital social sectors.

The administration’s commitment to merit-based programs, TVET integration, and digital tools in schools calls on businesses to strengthen talent pipelines, support scholarship and internship programs, and invest in digital inclusion.

Infrastructure, energy, and connectivity were again emphasized as national enablers. With over 200 power plants, mass transport upgrades, and digital infrastructure projects in the pipeline, corporations in construction, utilities, real estate, and telecommunications can actively engage in public-private partnerships and green investments. The administration's efforts to expand access to clean water, reliable electricity, and affordable internet—especially in rural and underserved areas—offer strategic openings for inclusive innovation and long-term growth.

Finally, the President’s renewed call for unity, ethical leadership, and patriotism places a significant spotlight on corporate governance. Boards are strongly encouraged to lead by example, embedding sustainability, accountability, and and stakeholder responsiveness into their core strategies. As the country enters a critical stage in its post-pandemic recovery, ICD members play a vital role in shaping organizations that not only deliver shareholder value but also contribute meaningfully to the broader vision of a resilient and equitable Philippines.