The Employers Confederation of the Philippines (ECOP) welcomed the new policy proposals outlined by President Ferdinand Marcos Jr. during his fifth State of the Nation Address (SONA) on Monday.

Among the president's proposals are exempting workers earning up to P350,000 annually from paying income tax, lowering income tax rates for other salaried employees, and abolishing the minimum corporate income tax for small businesses.

ECOP President Sergio Ortiz-Luis Jr. said the proposals would benefit workers but expressed concern over their fiscal impact.

"Our only concern is whether the government can afford to fund all of these," he said in a radio interview.

"These will require enormous spending. If implemented, government revenues will decline because of lower tax collections, while spending on aid, rice assistance, transportation support, and other programs will continue to increase," he said.

Ortiz-Luis added that he hopes the government already has a clear funding source for the proposed measures and will not rely on additional borrowing.

"If they already have a plan for where the funds will come from, I hope it won't involve taking on more loans," he said, noting that the country cannot afford to accumulate more debt.

Despite his concerns, Ortiz-Luis said the proposals would be beneficial, provided the government identifies sustainable funding sources to support them.