Frederick D. Go
Secretary of Finance
Thank you for the kind introduction.
To our valued partners in the private sector;
My colleagues in government;
Friends from the media;
Distinguished guests, good morning.
It is a pleasure to see familiar faces here today, several of whom I last met in many similar events. I apologize in advance if you have seen my presentation recently before.
Today, I will share the current state of our nation’s economy, as well as the key reforms we are implementing to help uplift the lives of every Filipino.
This government remains steadfast — now more than ever — in its commitment to fiscal discipline and smart spending. Reducing the fiscal deficit is the cornerstone of our economic strategy. This is the DOF’s constant refrain.
This is not optional. It requires a whole-of-government effort – to cut inefficiencies and ensure that every peso is directed to productive, high-impact, and high-multiplier programs that create jobs, drive growth, and deliver real benefits to every Filipino.
At the same time, we remain focused on enhancing the ease of doing business, reducing the cost of doing business, and promoting greater predictability in the business environment. These are priorities I carried over from my previous role as Special Assistant to the President for Investment and Economic Affairs.
Let me assure everyone: the long term fundamentals of the Philippine economy remain intact and on solid footing – strong GDP growth, manageable inflation, a robust labor market, and prudent fiscal management.
Even amid extraordinary challenges in the second half – external shocks, war, tariffs, natural calamities, and the President’s flood control exposé – growth moderated to 4.4 percent for the year. This is well above the global average of 2.9 percent.
Last week, I met with Kristalina Georgieva, the Managing Director of the International Monetary Fund (IMF). She expressed support for our policy on fiscal discipline and shared a positive outlook on our economic growth, noting that it continues to outperform the global average.
According to PSA and leading multilateral institutions such as the ADB and the World Bank, our economy is expected to regain momentum and bounce back to a 5 percent level of growth or higher in 2026.
Inflation remained controlled at an average of 2.2%, within the government’s target range of 2-4%, demonstrating continued price stability. Precautionary measures are also ready to address ongoing price pressures caused by the Iran war. I will discuss these later.
On the fiscal side, National Government debt stood at 63.2 percent of GDP in 2025. The latest data for General Government debt is as of 2024 – which is at 53.88 percent of GDP. Way below the 70 percent international threshold for general government debt-to-GDP ratio.
Our strong macroeconomic and fiscal position is reflected in the country’s triple B plus and A- investment-grade credit ratings, with stable and positive outlooks from major international rating agencies.
Further reflecting the economy’s momentum, the Philippines’ S&P Global Manufacturing Purchasing Managers’ Index rose to 54.6 in February.
This is the highest in eight years. This means stronger confidence in our manufacturing sector. At the same time, the three pillars of growth remain solid and reliable. In 2025, remittances from Overseas Filipinos totaled 35.63 billion USD. Export goods revenue reached 114.89 billion USD and the business process outsourcing sector generated 40 billion USD. Together, these pillars continue to anchor the resilience and momentum of our economy.
With the administration’s clear focus on encouraging private sector participation and enabling businesses to thrive, the Philippines now has the most open and liberal investment environment in its history.
Through progressive reforms and decisive steps, we are positioning the Philippines as the destination of choice for investments. Let me highlight five key initiatives from my time as SAPIEA.
First, enacting the CREATE MORE Act, which offers up to 40 years of fiscal and non-fiscal incentives;
Last year, this legislation became a living, working reality when Samsung Electro-Mechanics availed of the 40-year incentive. With a one-billion-dollar investment, they will establish a multilayer ceramic chip capacitor factory in Laguna.
Second, implementing the new PPP Code to promote better public-private sector collaboration;
Third, amending the Investors’ Lease Act, extending lease terms to as much as 99 years, giving non-Filipinos and Filipinos an option to secure land for long-term investments. This is a practice that is at par with the best in Asia.
Fourth, the Accelerated and Reformed Right-of-Way Act, which helps push critical infra projects forward. We had identified this as the main reason for delays in infra projects in the past, and have acted upon it.
Fifth, the implementation of CMEPA, which reduces the stock transaction tax (STT) from 0.6% to 0.1%. This practice is now aligned with Hong Kong, Singapore, Thailand, Indonesia, Vietnam, and Malaysia whose stock transaction taxes are either 0.05 or 0.1%, while PH was at 0.6%.
Now, at the Department of Finance, l continue to pursue initiatives that make life easier for our countrymen and enable businesses to thrive. Let me highlight a few.
Two weeks ago, we launched the Registered Business Enterprises Taxpayer Service, or RBETS —a key reform under the CREATE MORE Act.
RBETS gives registered businesses, under Investment Promotion Agencies, a single point of contact and one clear set of rules to follow.
When the rules are clear and predictable, businesses can focus on investing and creating jobs for Filipinos.
At the Bureau of Customs, the National Single Window – Integrated Trade Facilitation Platform (NSW-ITFP) PPP was signed last December.
This new platform will consolidate all trade requirements into a single digital portal. No more running from one agency to another because everything businesses need will now be accessible in one place.
Countries that have implemented a national single window have seen dramatic improvements in clearance times, stronger export competitiveness and increased government tax revenues.
Beyond mere efficiency, our reforms prioritize predictability, which is essential for high-potential sectors like mining to thrive.
Last September, the President signed the Enhanced Mining Fiscal Regime Act. The law establishes a fairer and simpler fiscal regime for the mining sector, creating a more predictable environment to attract investors and encourage tax compliance.
We have recently issued its IRR. We are also working closely with the BIR in the issuance of the revenue regulations for the law’s tax provisions.
Circling back to PPP, I’d like to highlight that the Marcos Jr. administration has successfully awarded three major airport projects, including the main gateway—Manila International Airport, the New Bohol International Airport in Visayas, and Laguindingan International Airport in Mindanao.
When we first said we would privatize the Manila airport – nobody believed us. Today, we have done three in just the first half of the admin. I hope you are convinced. Despite the distractions, this government means business and will continue to pursue the right reforms and programs.
And the momentum continues. Several flagship projects are available for PPPs. At the last Economic Development Council, we approved the 105.7 billion pesos PPP for public school infra projects aimed at closing classroom gaps and providing better learning environments for our youth.
Together, these investments will expand access to education, healthcare, ease daily commutes, and build a more connected, more resilient Philippines.
We currently have 209 infrastructure flagship projects, 49 of which are under PPP. We are actively inviting you to submit unsolicited proposals and participate in solicited bids. The PPP Center and DepDev have a complete list of these projects.
In addition, the whole of government continues to pursue Big, Bold Reforms to inspire optimism, strengthen partnerships, and renew investor confidence.
Some of these include:
The Government, just recently, finalized a funding solution to ensure that government obligations under the CARS Program will be fulfilled.
This is proof that the Government stands by its commitments and remains fully supportive of long-term investments in the Philippines.
We have relaxed visa requirements for India and China, two of the most populous countries in the world.
Indian and Chinese nationals may now enter Manila and Cebu visa-free for stays of up to 14 days, and up to 21 days for holders of valid AJACSSUK (America, Japan, Australia, Canada, Schengen, UK) visas.
This move is expected to strengthen tourism, trade, and investments in the country.
Last November, we supported the suspension of all field audits and other related operations, including the issuance of Letters of Authority and Mission Orders, after hearing concerns from taxpayers and businesses.
The pause allowed the BIR to review its audit framework, consult stakeholders, and design reforms.
The review is now completed. In January, the BIR released RMO 1-2026 which prescribes revised policies, controls and procedures for tax audit and assessment under its new policy approach, the Single-Instance Audit Framework.
Under this framework, key reforms are being implemented to make audits fairer, more predictable, and more accountable.
First, instead of receiving letters from multiple BIR departments, taxpayers will now receive only one, issued by a single department.
Second, only one letter of authority will be issued per taxable year, replacing the previous practice of multiple letters for the same tax type.
Finally, we are digitizing the process to reduce discretion, strengthen accountability, and prevent arbitrary or abusive audits.
As audit resumes, we urge tax payers and the public to actively participate in implementing these reforms. Your engagement is critical to ensuring these improvements succeed.
I’m also very happy to share three new digital tools of the BIR that make tax services easier, more accessible and more transparent.
One, we have the LOA verifier embedded in BIR’s Chatbot REVIE where you can verify if your letter of authority is indeed authorized or not.
Second, there’s now the COR Verifier, which allows instant online verification of taxpayer registration and business legitimacy.
Taxpayers can now avoid falling into the trap of buying fake receipts. With this tool, you can quickly check if the company you are transacting with, or your sales invoice, is indeed legal.
And third, the BIR has launched the Interactive Digital Tax Calendar which is very easy to use. You can monitor all the tax payments that need to be made and their respective deadlines. And in a few clicks, you can see the actual tax forms for filing on those dates.
So all of these three digital solutions I think are commendable, new tools of the BIR that make paying taxes more convenient for you.
To protect government revenue, we must curb corruption. We are strengthening the cooperation between the Revenue Integrity Protection Service and the Revenue Operations Group. This means more lifestyle checks and rigorous investigations to ensure no BIR or BOC official acquires wealth beyond their lawful income. This is how we will improve the government’s top revenue generators.
We are steadily expanding our economic partnerships. We have four bilateral trade agreements, eight ASEAN trade agreements, and we are exploring nine more free trade or economic cooperation agreements, including the much-anticipated EU FTA.
Our direction is clear. We are keeping Philippine trade policy open, relevant, and future-oriented.
We continue to see strong interest in the Philippines—from both domestic and foreign investors. IPAs and BOI approvals stand at 1.9 trillion pesos in 2024.
With the Philippines chairing the ASEAN this year, we are hosting leaders from government, business, and media from across the region and the globe. The spotlight is on us right now. Meetings are already ongoing and momentum is building fast. This is a huge business opportunity we cannot afford to waste or take for granted. We must demonstrate why the Philippines is the premier choice for investment and trade.
I encourage you to stay prepared and continue putting your best foot forward. Showcase the best of yourselves and our nation. Together, we are establishing the Philippines as a top-tier destination for global investors and organizations.
You can see that oil prices have been rising and volatility is expected in the short term.
In response to this, the government has interventions ready.
The primary focus is providing immediate relief to the most vulnerable sectors. This includes expediting fuel subsidies for transportation, farmers, and fisherfolk. The Libreng Sakay Program will also be reintroduced to ease commuting costs.
In addition, the budget for the Assistance to Individuals in Crisis Situations or AICS will be aggressively released to the public.
The government is also working with oil companies to stagger pump price hikes, similar to past successful interventions.
To promote energy conservation, the DOF and its attached agencies are adopting a work-from-home arrangement every Friday. We are campaigning energy saving practices across the public and private sector.
The bill granting the President emergency powers to reduce fuel excise taxes contingent upon certain conditions being met has been approved on the third reading in the Lower House and we are optimistic as the Senate takes it up. The President certified this bill urgent last Thursday.
Just yesterday, Congress also approved on final reading the proposed amendment to the Biofuels Act and we anticipate the Senate version of the bill which is aligned with the Department of Finance.
The measure aims to allow the oil industry to purchase biofuels from global sources if blended fuel prices are at least five percent higher than pure fuel. The passage of both bills will help mitigate the impact of fuel price increases on consumers. Also, PNOC-EC will be procuring 2 million barrels of oil from the global market as a precautionary measure to add to our oil buffer stock.
We recognize that there are things beyond our control. But we will not be defined by what we cannot change. Our focus is on what we can influence— the reforms we implement, the programs we launch, and the decisions we make domestically.
I want to assure you: this government is never on pause. We operate with a singular focus on concrete results, carefully calculating every move. We aim to protect Filipinos from external shocks without compromising essential services.
Our ultimate goal remains clear: We will continue to balance immediate relief with long-term fiscal stability, ensuring that the Philippines emerges stronger and more self-reliant.
Let’s continue working together, keeping our focus on what matters – the welfare of our country and our people.
Thank you everyone.
