Reforms addressing government corruption and energy security are imperative to restoring overall market confidence, according to Makati Business Club (MBC) Chairman Edgar Chua.

In a Thursday statement following weaker-than-expected gross domestic product (GDP) growth for the first quarter, Chua said the combination of domestic and external shocks facing the Philippine economy presents an opportunity to implement meaningful, long-lasting reforms.

“Amid persistent economic pressures such as rising oil prices, global uncertainty, and corruption issues that continue to erode public trust and constrain productive public spending, the country is once again being reminded of the urgent need for reform,” he said.

“We should seize this moment to pursue meaningful changes that strengthen governance, improve policies, simplify and streamline processes, curb corruption, foster innovation, and build a more resilient and investment-friendly economy.”

On Thursday, the government reported that growth slowed to 2.8 percent in the first quarter, which Economy, Planning, and Development Secretary Arsenio Balisacan attributed to lingering effects of the ‘floodgate’ scandal, as well as the national energy emergency.

GDP growth previously slowed to 4.4 percent in 2025 as probes into the ongoing flood control scandal led to a contraction in public infrastructure investment. Multiple analysts cited the latest graft controversy as weighing on consumer and investor confidence—both of which had already remained subdued prior to the escalation of the Middle East conflict at the beginning of March, according to surveys by the Bangko Sentral ng Pilipinas.

With the release of the first-quarter results, the domestic economy has now slowed for three consecutive quarters. Balisacan said reforms addressing corruption remain critical to restoring trust in the broader business environment.

“Restoring public trust and strengthening institutional credibility remain among the Marcos administration's highest priorities,” Balisacan said. “Addressing corruption fairly and transparently is essential to rebuilding confidence among businesses, investors, and consumers alike.”

Chua also called for reforms in food and energy security—two of the main drivers behind headline inflation rising to a three-year high of 7.2 percent amid the Middle East crisis.

“We also call on the government to act decisively by ensuring transparency, accelerating structural reforms, investing in food and energy security and infrastructure, and creating a more stable and competitive environment for businesses and investors,” he said.

Data released Tuesday by the Philippine Statistics Authority (PSA) showed headline inflation surged to 7.2 percent in April—up 3.1 percentage points from March and four times higher than the end-2025 level of 1.8 percent—as higher fuel and food costs eroded purchasing power. The Philippines’ heavy reliance on oil imports has made it especially vulnerable to the global oil shortage.

Bank of the Philippine Islands Lead Economist Emilio S. Neri Jr. said inflation could reach double digits by the fourth quarter of the year if the Middle East conflict persists and keeps global oil prices elevated. The government has rolled out targeted subsidies and mandated pump price rollbacks to help cushion the impact on consumers.

“Obviously, [growth] slowed down a bit. But we are also undertaking reforms aimed at addressing structural issues—such as infrastructure, connectivity, ease of doing business, and public-private partnerships,” Balisacan said.