Policy Response to Slumping Business Sentiment

PHILIPPINES - In Brief 19 Jan 2026 by Diwa Guinigundo

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Amid declining confidence in the business community—reflected in various opinion polls following the flood control scandals—the Philippine government’s economic managers convened around 300 top business leaders on Friday, January 16, 2026. The meeting sought to reassure investors of the government’s resolve to pursue what it called “big, bold reforms” aimed at strengthening good governance and driving sustainable development. Several economic agencies outlined reform commitments. The Department of Tourism, Department of Agriculture, and Department of Agrarian Reform pledged initiatives to modernize tourism and agriculture. The Department of Trade and Industry, the Board of Investments, and the Department of Information and Communications Technology committed to measures designed to attract high-impact investments and accelerate digital transformation. Meanwhile, regulatory agencies—the Securities and Exchange Commission, Food and Drug Administration, Philippine Competition Commission, and the Department of Environment and Natural Resources—promised to streamline processes and reduce regulatory bottlenecks. This outreach to the private sector is a necessary step. Nurturing government–business partnerships and signaling reform intent are appropriate responses to weakening investor confidence. It is also correct to acknowledge that the high cost of doing business in the Philippines—driven partly by regulatory inefficiencies—remains a structural constraint. Streamlining procedures and reducing red tape are therefore welcome and overdue. However, these initiatives do not fully address the core of the problem. As one broadsheet aptly bannered, “corruption puts investors on e...