Marcos' fifth SONA puts AI, infrastructure and energy security at the centre of PH growth agenda

President Ferdinand Marcos Jr. used his fifth State of the Nation Address (SONA) to position resilience, digital transformation and economic competitiveness as the next phase of the Philippines' growth agenda, signalling opportunities for businesses and investors operating in the country.

While much of the address focused on the government's response to the Middle East crisis, anti-corruption efforts and social protection, Marcos also laid out a roadmap centred on artificial intelligence, infrastructure expansion, energy security, digitalisation and investment reforms - areas likely to shape business confidence and consumer markets over the next two years.

In the remaining two years of this administration, we will complete the work we have begun and fulfil the promises we made to the Filipino people.

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AI moves from emerging technology to national capability

AI emerged as one of the administration's strongest strategic priorities, with Marcos signalling that AI adoption is no longer optional but central to the country's competitiveness.

"AI is here to stay; and so we adopt it to harness its potential to enhance critical sectors, from our educational system to our industries."

According to Marcos, government-led AI readiness programmes have already reached at least 1.8 million people, including students, parents and teachers, with plans to expand AI literacy across sectors.

The president also stressed the importance of nurturing critical thinking, creativity and innovation alongside technical skills, while highlighting scholarship programmes, innovation competitions and funding initiatives designed to develop future talent.

For marketers, the emphasis suggests AI will increasingly become embedded not only across public services but also in workforce development, customer engagement and enterprise productivity.

Digital transformation broadens beyond government services

Digitalisation featured prominently throughout the speech, extending from public services to financial inclusion and disaster preparedness.

Marcos pointed to the growing adoption of the government's eGovPH application, which now has more than 56 million users and serves as a gateway for services such as medical assistance.

He also highlighted continued efforts to equip citizens with digital skills, saying the department of information and communications technology is training Filipinos in high-impact technology capabilities.

The administration further linked digital transformation to regional economic integration, noting that the ASEAN Digital Economy Framework will harmonise digital regulations and facilitate cross-border digital transactions.

According to Marcos, the framework "will accelerate the growth of our local tech sector, enable fintech and digital banking solutions, and support financial inclusion, especially for small enterprises."

The emphasis reinforces the Philippines' ambition to become a more digitally integrated market within Southeast Asia, creating new opportunities for fintech, eCommerce and digital-first brands.

Infrastructure and logistics remain central to growth

Infrastructure remained another key pillar of the government's economic strategy.

Marcos announced progress across rail, bus rapid transit, airports, ports and expressways, while highlighting the recently enacted Accelerated and Reformed Right-of-Way Act as a mechanism to speed up transport development.

He said sections of the North-South Commuter Railway and MRT-7 are scheduled to open next year, alongside continued investment in integrated transport hubs and airport modernisation.

Beyond transport, the administration also outlined investments in nationwide disaster-response infrastructure, including resource centres, logistics hubs and last-mile facilities designed to deliver emergency relief within 24 hours.

We have moved on from the reactive approach. Now, we are not only proactive, but predictive as well, aided by digital tools.

For businesses, the continued focus on logistics and resilience signals efforts to improve supply chain reliability while reducing operational disruption during natural disasters.

Energy security and clean technology take centre stage

Energy dominated a significant portion of the address, reflecting the impact of global oil market volatility following tensions in the Middle East.

Alongside immediate measures to cushion consumers from higher fuel prices, Marcos outlined a longer-term strategy focused on expanding domestic generation capacity, renewable energy and emerging technologies.

The administration is overseeing around 200 energy projects expected to be completed before the end of the current term, representing nearly 10,000 megawatts of capacity.

The president also announced new petroleum service contracts, hydrogen initiatives and renewed discussions around nuclear energy.

"We have begun to embark on the establishment of hydrogen power plants," Marcos said, adding that multiple projects are already in pre-development stages.

He also proposed expanding household solar adoption through the proposed "Sariling Kuryente" Act while calling for amendments to the Electric Power Industry Reform Act (EPIRA) to prevent system losses from being passed on to consumers.

Electric vehicle adoption also featured prominently. Marcos noted that tariffs on EVs have been removed until 2028 while government agencies have been directed to prioritise electric vehicles in fleet replacement.

"This clean and green policy is two-pronged: it shall also spur growth of our domestic local industries across the EV value chain, specifically those involved in the vehicle assembly and manufacturing of batteries and related spare parts."

Investment competitiveness remains a priority

The administration also doubled down on positioning the Philippines as a regional investment destination.

Marcos credited reforms aimed at easing business processes and accelerating digital transformation for attracting investment.

According to the president, more than 6 trillion pesos (US$98 billion) worth of investments have been facilitated through the country's Green Lanes over the past three years, with projects expected to generate more than 400,000 jobs.

He also highlighted expanding economic zones beyond Metro Manila and the government's push into higher-value industries, including pharmaceuticals, advanced manufacturing, logistics, luxury goods and technology.

Among the more ambitious initiatives is the planned Pax Silica Industrial Hub, which Marcos described as an AI-centred manufacturing and logistics ecosystem under the Luzon Economic Corridor.

He said the project will "bring quality jobs to our people, accelerate our industrial competitiveness, and revitalise our economy."

The president also revealed plans to develop the country's first spaceport in Cagayan in partnership with a South Korean aerospace company, with a sounding rocket launch targeted for next year.

Governance and trust remain recurring themes

Beyond economic priorities, Marcos returned repeatedly to governance and transparency, positioning anti-corruption efforts as a prerequisite for growth.

Highlighting investigations into allegedly anomalous flood-control projects, the president said recovered public funds had been redirected towards education, healthcare and social services.

He declared: "I am not the President of my family. I am not the President of my friends. I am President of the Philippines."

For businesses and marketers, the address reinforces an administration seeking to frame economic competitiveness around three interconnected themes: digital capability, infrastructure-led resilience and investor confidence. Together, these priorities are likely to shape the Philippine operating environment - and the narratives surrounding national growth - for the remainder of Marcos' term.

From AI-powered marketing and the friction economy to retention-led growth, DMA Philippines 2026 on 29 September in Manila will bring together marketers to tackle the opportunities and challenges shaping the next phase of digital transformation.

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