Big changes, bold moves, strong signals
Corruption has always been a theme in Philippine politics, but it has reached a new low in the past few months with the investigations into flood control projects.
No less than President Ferdinand Marcos Jr. occasioned the close attention to flood control infrastructure when he delivered his “mahiya naman kayo!” State of the Nation Address in July.
Since then, public attention has been trained on “flood control.” Revelations that government officials, in cahoots with private contractors set on bagging billions of pesos in deals, have dominated the headlines and exposed the extent of corruption among those who claim to serve the public interest.
There is an attempt to make this a political fight between two camps, but we cannot deny that corruption has plagued our society for many administrations, without respect to political color which has always been changing, anyway.
There is another tragic consequence to all this: the perception of poor governance threatens our country's efforts to attract and keep investments. Our economic future is also being severely compromised.
A Stratbase-commissioned Social Weather Stations (SWS) survey from September 2025 showed that 56% of Filipinos want Marcos to prioritize lowering the cost of rice and food products. At this point, only 31% believed addressing government corruption should be the main focus.
But just one month later, in October, another SWS survey conducted in Mega Manila revealed that 77% of Filipinos believe that corruption is widespread. Filipinos are now concerned, or alarmed, by both economic hardship and the integrity of our leadership.
This is a logical, rational association. Economic progress cannot be divorced from governance. The quality of how a government is run determines the strength of our position to attract new investments and hence achieve sustainable and inclusive economic growth. It will enable us to chart a good economic trajectory for our nation.
These themes were highlighted during the second day of the Stratbase Group’s annual Pilipinas Conference on November 21, centered on “Strengthening Economic Security and Resilience through Inclusive Governance.”
On this second day, we established more clearly and directly the link to governance and economic advancement. We were fortunate to have with us key national personalities in the administration’s fight against corruption, and they shared their insights into the close relationship with governance on one hand, and investments and growth on the other.
The Ombudsman, Jesus Crispin Remulla, despite his busy schedule building cases against numerous individuals involved in the flood control mess, found the time to be with us to talk exactly about this.
“We cannot expect investors to trust us if we are unwilling to trust ourselves,” he said. “We cannot seek international partnerships if our own internal systems are weak.”
He said, further, that transparency builds confidence, confidence attracts investment, investment builds jobs, jobs build stability, stability strengthens resilience. “A nation becomes resilient not only through strong markets or large budgets, but through the character of its institutions and the integrity of its leaders.”
Remulla addressed executives and key decision makers in the private sector by repeating something that plenty of them knew too well in their daily lives: that when investors assess a country, they don’t just look at numbers, charts, or demographic trends.
“They look at whether rules are followed. Whether decisions are fair. Whether public money goes where it should,” he said.
“In other words, they look for trust. And trust is fragile.”
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The recent shakeup in the Cabinet may be viewed as change occasioned by circumstances. While it is true that the movements were brought on by the current corruption scandal, it is also a strong indication that the administration is constantly evaluating whether its officials are truly a good fit and are serving the public good.
The appointment of Secretary Frederick Go, for instance, as the new Finance Secretary solidifies the country’s investment-led growth strategy. It signals a commitment to supporting investor confidence.
Secretary Go has played a central role in promoting investments, improving investor confidence, and aligning economic initiatives across government agencies. With his background as a former special assistant to the president for Investment and Economic Affairs and his extensive private sector experience, Go is well-equipped to manage the government's financial resources for shared prosperity.
Meanwhile, the new executive secretary, Ralph Recto, is known for championing the CREATE MORE law that offers incentives to investors, reinforces the administration’s intention to welcome more investments into the country.
A respected former senator and congressman, Recto served as National Economic and Development Authority chief from 2008 to 2009 and was appointed Secretary of Finance in January 2024.
Given his strong legislative background and experience in economic planning, Recto is well-positioned to oversee the government’s daily operations and advance the administration’s development goals.
The crisis of confidence that has engulfed our country is threatening to erode the modest gains of our economy. We have to stop this erosion. It is crucial to prosecute those who are guilty in order to ensure accountability.
It is equally crucial to institute reform, and not just the cosmetic type, so that processes are more transparent and less susceptible to manipulation. This will be a strong signal to the business community that the Philippines is serious about safeguarding investor confidence.
Our country has encountered too many pitfalls preventing us from reaching our true economic potential. Only if we address these dangers can we truly move forward and upward.
We are fortunate that our own private sector has been steadfast in their support of the government by providing technical expertise and capital to do business here. But more importantly, we must prosecute the guilty based on evidence especially those who have made use of public funds for their personal gains.
We could do better, and we will do better. As Remulla said: “Economic security begins with honest, transparent, and accountable governance.”
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Rupert Paul Manhit is the COO and managing director of think tank Stratbase Group. He is the executive director of Philippine Trade Foundation (Phils Inc.)
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