SONA 2024

Unlike in previous years, specific international issues mentioned by the German-Philippine Chamber of Commerce and other chambers in various statements before the SONA, especially economic issues such as the continued positive development and focus on trade agreements and foreign investments, were not explicitly addressed or focused on this year. This may also be due to the fact that good progress was made last year on such strategic partnerships and reforms. 

     

Nevertheless, this remains an important topic. The targeted reforms aim to achieve a sustainable and strengthened bilateral economic partnership between Germany and the Philippines, as trade volume reached almost PH 400 billion last year.

    

In particular, the ongoing tax reforms such as CREATE MORE, Ease of Paying Taxes (EOPT) and Ease of Doing Business as well as the need to improve the efficiency of the judiciary and administration were not particularly targeted by President Marcos Jr. Only in the opening speech of the Speaker of the House of Representatives, Ferdinand Martin Romualdez, the EOPT was mentioned, among others, as a legislative achievement of the House of Representatives. The President himself merely stated that the tax collection system has become more efficient overall.

    

The President rather emphasized national issues. In terms of farmers and agriculture, he emphasized the focus on local production and the decline in rice prices. In order to secure resources and water, irrigation dams will be built and expanded to also focus on solar irrigation and energy projects. In addition, the infrastructure is to be improved through the expansion of roads and bridges. Other topics included government investments in health and nutrition, unemployment, benefits for teachers and the war on drugs, particularly stressing that “extermination” is not part of his government's strategy to combat illegal drugs.

With the legality of the operations of various Philippine offshore gambling operators (POGOs) being questioned and often linked to criminal activities such as crypto scams, torture and human trafficking, Marcos declared that “as of today, all POGOs are banned” and immediately ordered the Philippine Amusement and Gaming Corporation (PAGCOR) to “wind down and cease operations of POGOs by the end of the year”, leading to a standing ovation.

   

The second standing ovation was triggered by the President's clear stance against China's continued attempts to enforce its so-called 10-dash line claim to almost the entire South China Sea, including the Philippines' exclusive economic zone. He emphasized the country's sovereign rights by declaring that the West Philippine Sea belongs to the Philippines and is not just a “figment of imagination”.