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BusinessWorld 7 MIN READ

Marcos eyes ‘bold reset’ of government

May 23, 2025By BusinessWorld
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Cabinet members, including state economic managers, submitted their courtesy resignations on Thursday as part of President Ferdinand R. Marcos, Jr.’s “bold reset” of the government to better meet the needs of Filipinos.

The move comes following the poor performance of administration-backed senatorial candidates in the May 12 midterm elections, and amid global uncertainties due to trade concerns that could threaten the Philippine economy.

The Presidential Communications Office (PCO) said the request for resignations will give Mr. Marcos “elbow room to evaluate the performance of each department and determine who will continue to serve in line with his administration’s recalibrated priorities.”

“With this bold reset, the Marcos administration signals a new phase — sharper, faster, and fully focused on the people’s most pressing needs,” it said.

“It’s time to realign government with the people’s expectations. This is not business as usual,” Mr. Marcos said in the statement. “The people have spoken, and they expect results, not politics, not excuses. We hear them, and we will act.”

Officials will continue to perform their duties until their resignations are accepted, or new appointments are made by the President.

The President’s allies failed to win a majority of Senate seats contested in the May 12 polls, leaving Mr. Marcos facing a divided political and legislative landscape that could thwart his attempts to have an ally succeed him in 2028.

Candidates aligned with Mr. Marcos’ estranged vice-president, Sara Duterte-Carpio, outperformed expectations in the midterms, which many saw as a proxy battle between Marcos and the Duterte camps.

With less than three years in office left, Mr. Marcos is under pressure to deliver results and groom a successor capable of fending off any potential run by the popular Ms. Duterte-Carpio in the 2028 presidential election.

Over 30 Cabinet-level officials tendered their courtesy resignations, including economic managers Finance Secretary Ralph G. Recto, Department of Economy, Planning, and Development Secretary Arsenio M. Balisacan, Budget Secretary Amenah F. Pangandaman, and Special Assistant to the President for Investment and Economic Affairs Frederick D. Go.

Cabinet members said in separate statements that they resigned as they “serve at the pleasure of the President.”

Mr. Recto said he fully supports the planned revamp, adding that Mr. Marcos “carries the heavy burden of leading the nation through complex global and domestic challenges.”

For his part, Mr. Balisacan said, “If deemed necessary, I stand ready to hand over the leadership to someone the President believes can better drive our nation’s development goals.”

“It’s a prerogative of the President. The President can change his team anytime, but I think it’s a good time because it’s [the middle of his term],” he said on the sidelines of the BusinessWorld Economic Forum 2025 on Thursday, adding that his department is also doing an internal assessment.

PCO Undersecretary and Palace Press Officer Clarissa A. Castro said at a news briefing that Mr. Marcos is frustrated with the performance of some of his Cabinet members, but did not specify anyone.

“The President has made it clear that all pending and ongoing projects will not be affected during this transition,” she said. “Work continues uninterrupted for our Cabinet secretaries and government personnel.”

While she gave no timeline, she said the President is acting with urgency.

Asked what priorities the government will focus on moving forward, Ms. Castro said infrastructure and education are on top of the list.

Political move

The directive drew mixed reactions from stakeholders, with some believing that it may have been driven by political concerns.

Arjan P. Aguirre, assistant professor of political science at the Ateneo de Manila University, said the recent polls likely triggered Mr. Marcos’ decision to revamp his Cabinet.

“Being the incumbent, this is something that we can expect as the most logical response to deliver more of what the people want and/or really need,” he said in a Facebook Messenger chat. “This is what I’m sensing as the response of the Marcos government, but again, we have yet to see if this will really lead to real changes or benefits.”

“The bigger effect that we can expect here is the identification of new priorities of the Marcos government — priority projects that target the concerns of the people,” he added.

Josue Raphael J. Cortez, a diplomacy lecturer at the De La Salle-College of St. Benilde, said this recalibration strategy is a timely political move from the Marcos administration.

“This move can be viewed in two ways: first, as a way of projecting that we have a listening government, and second, an implicit conditioning for the 2028 national elections, which will determine whether the ball will still be on the side of the Marcoses, or it will once again pivot towards the Dutertes, despite the issues surrounding the family,” he said in a Facebook Messenger chat.

IBON Foundation Executive Director Jose Enrique “Sonny” A. Africa said the move may be due to Mr. Marcos’ declining approval and trust ratings.

Mr. Marcos has faced a steep decline in public support, according to a March survey by Pulse Asia, with only 25% of Filipinos approving of his performance, down from 42% previously.

In stark contrast, Ms. Duterte-Carpio enjoyed a significantly higher approval rating of 59%.

Sentiment towards the government has soured due in part to a perceived failure to control inflation, a top concern of Filipino households, even though it has been back within the central bank’s 2% to 4% target range since August.

“The ineffectiveness of government efforts to improve the well-being of the majority is most of all due to the nature of the economic policies themselves, which favor short-term corporate profitability and the wealth of politically connected families rather than universal provision of public social services and aiming for real Filipino industrialization to create jobs,” Mr. Africa said in a Viber chat.

He said the government needs to reset policies and not just the Cabinet. “No matter how many times Cabinet members are changed, the public sector and economy won’t be transformed unless real reforms for social and economic transformation are undertaken.”

Philippine Chamber of Commerce and Industry President Eunina V. Mangio said in a statement that the move is surprising as the government “has been performing relatively well in managing the economy,” although progress has been undermined by political issues.

“We are trying to get more investments for the country, especially with the passage of the CREATE MORE (Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy) Act. We want to continue fostering economic growth and investor confidence, and so we hope that the courtesy resignations will bring in accountable and merit-based appointments and appointments done [as soon as possible] to avoid political instability and so as not to derail economic continuity,” Ms. Mangio said.

“We understand the President’s actions and intentions as this happens in business and the private sector. A CEO (chief executive officer) needs to make difficult calls, such as replacing talents, with the primary objective of improving the performance of the organization,” Management Association of the Philippines President Alfredo S. Panlilio said in a statement. “Difficult as it may be, the call of leadership is to make such hard decisions in the interest of establishing meritocracy and encouraging performance. We hope the President will find the appropriate talents for those he decides to replace — people who can effectively execute his government’s plans.”

“We trust that capable, proactive, and committed individuals will be empowered and work together as a cohesive team to execute the nation’s plans to uplift the lives of all Filipinos and move us closer to the outcomes our people deserve.”

Makati Business Club Chairman Edgardo O. Chua told reporters at an event that they are hoping that the Cabinet revamp would not be major as they are generally satisfied with the performance of the current economic team.

“If many of them are replaced, it will be disruptive,” he said. “We are hoping that the President will be able to maintain the good ones.”

Mr. Marcos’ call for courtesy resignations will “enable him to have a free hand in appointing or reappointing people who he believes will deliver in the second half of his term,” he said.

“So, we just hope that the President will be able to quickly announce who will be appointed or reappointed so that there is minimal disruption,” Mr. Chua added. — Chloe Mari A. Hufana with Reuters

This article originally appeared on bworldonline.com

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