In a series of strategic moves across the first quarter of 2025, President Ferdinand Marcos Jr.’s administration has demonstrated accelerated progress on multiple fronts — from fiscal discipline and digital modernization to infrastructure, energy security, and social protections — reflecting a governance style that balances ambition with pragmatic execution.
Economic empowerment and fiscal discipline
The administration capped Q1 2025 with an impressive 14% surge in tax collections year-on-year, reaching ₱931.5 billion — a testament to more efficient digital tax systems and improved administration by the Bureau of Internal Revenue (BIR) and Bureau of Customs (BOC). While spending rose to ₱1.48 trillion for the quarter, the resulting ₱478.8 billion deficit remains within the annual fiscal target, with Malacañang crediting this to strategic expenditure rollouts and anticipated non-tax revenues.
Key reforms included the digitalization of 96.99% of BOC operations, leading to streamlined customs processes, faster cargo flows, and reduced corruption. Over ₱85 billion worth of smuggled goods were also seized in 2024 — nearly double the previous year — highlighting strengthened enforcement.
Business confidence is on the rise, as a BSP survey indicated higher investor sentiment. The government has since called for more investments to capitalize on this momentum, especially through digital empowerment of micro, small, and medium enterprises (MSMEs) via the Bagong Pilipinas Marketplace.
The President also established an advisory council for the electronics and semiconductor industry — a forward-looking move positioning the Philippines as a competitive player in global tech manufacturing.
Infrastructure, mobility and connectivity
Infrastructure modernization continues under the Build Better More program, with major energy projects completed across the country, including the Mariveles-Hermosa-San Jose 500-kV line in Luzon and the Cebu-Bohol Interconnection Project in the Visayas. The Mindanao-Visayas Interconnection now links the archipelago’s grids, improving nationwide energy reliability.
Urban mobility also improved with the inauguration of the Cavite extension of LRT-1 Phase 1 — adding five new stations and cutting Baclaran-to-Bacoor travel time from 70 to 25 minutes. The line now serves 80,000 additional daily commuters.
Strategic international partnerships
Philippine-Japan relations reached new heights with the visit of Japanese Prime Minister Shigeru Ishiba, culminating in deeper regional security and trade cooperation. Talks progressed on a logistics pact to boost defense ties, and both nations reaffirmed commitments to the RCEP framework.
President Marcos described the seven decades of PH-Japan ties as a “bedrock for an inspiring, resonant future,” vowing to deepen bilateral strategic and economic cooperation.
Energy security and climate-forward policies
Energy security was a top priority in Q1. The signing of the Philippine Natural Gas Industry Development Act (RA 12120) marked a pivotal step in securing post-Malampaya energy supply, while positioning the country as an LNG transshipment hub in Asia.
Aggressive renewables expansion continued, with new service contracts for offshore wind and solar. Policy reforms — including full foreign ownership of renewable projects and preferential dispatch in power markets — are set to increase renewable energy’s share to 35% by 2030 and 50% by 2040.
The administration also advanced geothermal exploration with ADB-backed financing, supported nuclear energy feasibility, and launched a national energy contingency plan to ensure supply during disasters.
Worker welfare
and social protections
Over 97,000 labor inspections were conducted in Q1 to protect workers’ rights. In Cavite, the President launched Trabaho at Serbisyong Pangkalusugan — integrating health and employment services for workers. Meanwhile, the government’s anti-hunger program targeted 750,000 food-insecure families nationwide.
The ₱6.326 trillion 2025 national budget — the largest in Philippine history — underscored this focus on social welfare, prioritizing education, healthcare, agriculture, infrastructure, and disaster resilience.
Education, professional growth, and digital governance
Education reform progressed with a joint circular aligning teacher licensure exams with CHED’s curriculum, and a presidential directive to review the Continuing Professional Development law, addressing sector-wide concerns.
In digital governance, the eGov PH Super App integrated 180+ services, slashing red tape and reducing corruption opportunities. National ID integration reached 87% coverage, while digital payments hit 42% of total retail transactions — nearing the BSP’s 50% target.
Foreign digital platforms are now taxed under the VAT on Digital Transactions Act (RA 12023), helping widen the tax base. Other legislative wins include the Anti-Financial Accounts Scamming Act (RA 12010), Anti-Agricultural Economic Sabotage Act (RA 12022), and CREATE MORE — a competitiveness-boosting incentive law for investors.
Bagong Pilipinas, global readiness
To assert sovereignty in the West Philippine Sea, the administration raised the Philippine flag in Pag-asa Cay 2. At the same time, the President championed Filipino culinary heritage, encouraging investment in food tourism and local food-based enterprises.
The digital nomad visa framework was tightened to attract top-tier foreign talent while safeguarding national security — a signal that openness and protection can co-exist under this administration.
As the Marcos Jr. administration marks this productive quarter, its synchronized progress across economic, digital, infrastructure, energy, and social welfare sectors reflects a governance approach that successfully balances ambition with practical execution. The integration of digital solutions, strategic international partnerships, climate-forward energy policies, and enhanced social protections collectively embody the “Bagong Pilipinas” vision—a new Philippines confidently navigating global complexities while addressing domestic priorities. With fiscal discipline supporting these initiatives and record-breaking budgetary commitments backing critical development areas, the administration has established foundations for sustained growth. The coming months will test the resilience of these strategies, but the administration’s demonstrated ability to advance multiple priorities simultaneously signals a promising trajectory for national development and global competitiveness.
