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.

Seize the moment

“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.

Latest graft controversy

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.