Anticipating Long-Term Gains from a Short-Term Challenge
Frederick Go, Special Assistant to the President for Investment and Economic Affairs (SAPIEA), asserts that the Philippines’ ongoing anti-corruption drive will ultimately benefit the country’s investment climate, despite concerns about a temporary dip in foreign investment stemming from a flood-control controversy. Speaking at a Palace press briefing, Go argued that the investigation into alleged irregularities is a catalyst for more efficient government spending and improved project outcomes.
“Negativity is overblown,” Go said, emphasizing that swift actions by President Ferdinand Marcos Jr. to pursue accountability will strengthen the economy in the long run. He framed the anti-corruption push as a mechanism to correct past practices, enabling a budget that is allocated more produtively and with greater oversight.
According to Go, better budget deployment will translate into projects with larger multiplier effects, ultimately supporting job creation and broader economic growth. While acknowledging short-term disruptions, he stressed that the long-term benefits will far outweigh transient concerns.
Transparency, Accountability, and Investor Confidence
Go highlighted the administration’s commitment to transparency as a cornerstone of a healthier investment environment. He pointed to the formation of independent and credible oversight bodies, including the appointment of an Ombudsman with gravitas and the establishment of robust commissions, as proof of the President’s seriousness in addressing corruption.
“This is good for the economy and builds confidence,” he said, indicating that public trust is a key ingredient in attracting and sustaining investments. Go also noted that business chambers have long complained about corruption and red tape, underscoring a government response in the form of targeted reforms.
Policy Measures to Reduce Red Tape
In addressing systemic concerns, Go cited several policy initiatives designed to streamline processes and improve the investment climate. Notable programs include the CREATE MORE Act, which aims to accelerate the domestic corporate tax environment and investment incentives, the PPP (Public-Private Partnerships) code to foster private sector participation in infrastructure, and a green lane for strategic investments to expedite critical projects. These measures reflect a coherent strategy to remove barriers to investment while maintaining rigorous oversight.
Go’s remarks come as the U.S. State Department’s 2025 Investment Climate report noted that corruption remains a pervasive challenge in the Philippines, affecting perceptions of risk among foreign investors. The administration, he insisted, is turning a short-term challenge into an opportunity to reallocate funds toward ventures with greater growth and employment multipliers.
Implications for Investment and Economic Growth
For investors, the key takeaway is a more disciplined, transparent fiscal framework that promises better allocation of resources toward high-impact projects. The expectation is that enhanced governance will reduce waste, improve project execution, and ultimately deliver stronger returns across sectors.
While market reactions may be nuanced in the near term, the administration’s insistence on accountability could reframe the risk-reward equation for foreign investors. By demonstrating a credible anti-corruption stance, the Philippines positions itself as a more stable and predictable investment destination over the long horizon.
Looking Ahead
As the government continues to implement reforms and bolster institutions, the long-run impact on investments will hinge on consistent policy execution and transparent reporting. If the current trajectory holds, the anti-corruption campaign may become a cornerstone of a more dynamic and resilient Philippine economy.
