President Ferdinand Marcos Jr. has instructed government agencies to bolster support for the middle class and protect an estimated 6.5 million Filipinos who recently escaped poverty from slipping back, Executive Secretary Ralph Recto announced Monday.
The directive follows recent data from the Philippine Statistics Authority showing that national poverty incidence dropped to a record 9.7 percent, down from 15.5 percent in 2023. The significant decline translates to approximately 11 million poor individuals, down from 17.5 million.
Despite the breakthrough, Recto stressed that the government cannot relax its efforts amid lingering economic threats. Unresolved geopolitical tensions in the Middle East and severe climate disruptions like El Niño pose risks to food and fuel prices, trade, employment and overall economic growth.
To protect household purchasing power and cushion against global volatility, Malacañang is advancing structural programs that accelerate high-impact infrastructure projects to generate local jobs, lower logistics costs and stimulate regional economies.
The executive branch is also backing legislative measures designed to boost disposable income and lower essential living expenses. Key initiatives under consideration include raising the annual personal income tax exemption to P350,000, offering a general tax amnesty, and exempting small businesses from the Minimum Corporate Income Tax.
Additionally, the administration is pushing for power sector and transport cost reductions, such as amending the Electric Power Industry Reform Act to prevent passing system loss charges to regular consumers, passing the Sariling Kuryente Act and abolishing the travel tax.
To address immediate welfare needs, the government continues targeted social relief initiatives, including the Expanded UPLIFT program, which provides direct financial aid to 7.5 million low-income households, and the Bawat Bayan Makikinabang Rice Program, which delivers 10 kilograms of rice every two months to eight million families.
Recto noted that long-term public investments will concentrate heavily on education, healthcare, and modern digital infrastructure to help the workforce capitalize on job opportunities in artificial intelligence and the global digital economy.