International and local officials agree that broad government reforms are essential for the Philippine economy to regain momentum in the years ahead.

On Tuesday, 9 December 2025, the World Bank convened its Philippine Economic Update at the Makati Shangri-La, gathering prominent figures from both the public and private sectors, along with officials of the UN-affiliated institution, to assess the country’s economic landscape.

Reforms crucial

Their message was unified: sweeping governance reforms in the wake of the floodgate scandal are crucial to restoring economic growth.

Delivering the keynote address, Department of the Interior and Local Government Secretary Jonvic Remulla underscored the role of governance reforms in driving development. He cited his home province of Cavite — under the leadership of his father and namesake, former governor Juanito Remulla Sr. — as a model for transformation.

Cavite once Phl’s capital of crime

“Our province then was known as the smuggling capital of the Philippines, murder capital of the Philippines, carnage capital of the Philippines, kidnap capital of the Philippines, crime syndicate capital of the Philippines. Then my father stepped in,” Remulla said.

“Through the years, under the collective leadership of everybody in Cavite, investments in Cavite outpaced any other province in the country combined. All because of local effort,” he added.

Remulla noted that economic gains achieved during his father’s tenure have endured. “If my statistics still hold true, our poverty incidence in Cavite is at 3 percent,” he said. “We had the right leaders at the right time, pointing the right direction, with the population agreeing to such a direction.”

Probe, governance issues slowed down investment

World Bank Senior Country Economist Jaffar Al-Rikabi echoed Remulla’s points, emphasizing the need for reforms across government to address the current economic slowdown. “In Q3, of course, we have the ongoing probe and governance issues. It has also slowed down investment,” he said.

Presenting the World Bank’s Philippine Economic Update, Al-Rikabi noted that despite the third-quarter deceleration, the Philippines remains one of ASEAN’s fastest-growing economies. Still, he stressed that fiscal, structural, and governance reforms are crucial to unlocking the country’s full economic potential and attracting greater foreign direct investment.

Double down on reforms

“Firstly, governance and institutional reforms that can help restore confidence and increase the growth and jobs impact of public spending [are a must],” he said, highlighting “the criticality of really doubling down on reforms, especially institutional reforms to restore trust and confidence, fiscal reforms to ensure fiscal consolidation is on a credible path, and deepening structural reforms to raise growth potential over the medium term.”

Remulla closed his keynote with a firm commitment that the investigations into the flood control scandal will move forward — an essential step, he said, in rebuilding investor trust.

“It’s going to happen, and it is happening. The charges will be firm. The charges will stick. Those who are charged will be convicted,” he said.

Under Remulla’s leadership, the DILG supports the Philippine National Police in apprehending suspects linked to the scandal.

Ensure accountability among local officials

The Department also helps ensure accountability among local officials, strengthens security, and coordinates with other agencies to promote transparency in uncovering anomalies in flood control projects, particularly issues involving fraud, “ghost projects,” and corruption.

“Tomorrow we will arrest some more contractors. The following weeks, Senators, Congressmen. All of them we are going to arrest. All of them we will put to jail,” he added.