In his second State of the Nation Address (SONA), President Bongbong Marcos reiterated his commitment to build upon former President Duterte\u2019s “Build Build Build” program with his own “Build Better More”. With a total budget of P8.3-trillion over his six-year presidency, the program would average around P1.4-trillion of annual infrastructure spending and represent 5-6% of the nation\u2019s GDP. <\/p>\n\n\n\n
Finance Secretary Benjamin Diokno said last month that this could further be boosted to 10-12% by the implementation of public-private partnerships through the newly legislated Maharlika Investment Fund. However, with an initial funding of P125-Billion, it is unlikely that new sovereign fund will be able to make such big contributions immediately.<\/p>\n\n\n\n
Infra to complement focus on global partnerships<\/strong><\/p>\n\n\n\n The President\u2019s other stated goal is to forge more foreign partnerships and lure foreign direct investment into the country. The boost in infrastructure should allow the Philippines to attract more foreign investors, as the lack of roads, rail, and ports have previously been cited as one of the reasons why foreign investors have preferred neighboring countries like Thailand and Vietnam. During the SONA, BBM said that physical connectivity projects will comprise 83% of the total infra spend, with notable projects such as the Luzon Spine Expressway Network and the Mega-Bridge Program. Seaport and airport upgrades, as well as railway projects, are also planned to take a big chunk of the budget. <\/p>\n\n\n\n Construction, materials, and real estate to benefit<\/strong><\/p>\n\n\n\n Construction firms are likely to benefit, such as Megawide Construction Corp. (MWIDE), EEI Corp. (EEI) and DMCI Holdings, Inc.\u2019s (DMC) as they are already the government\u2019s contractors in various projects. <\/p>\n\n\n\n While cement manufacturers and distributors should also benefit, there is now a dearth of listed cement firms with EAGLE being absorbed by San Miguel Corp. (SMC) early this year, and HLCM currently in the midst of a messy delisting process. The main cement plays would now be Cemex Holdings Philippines, Inc. (CHP), and conglomerates with cement businesses such as SMC, Aboitiz Equity Ventures (AEV), and Phinma Corp. (PHN). <\/p>\n\n\n\n Property developers with projects and landbanks outside of Metro Manila should also see a boost in their land values as adjacent (and even far-flung) areas become more connected to the country\u2019s economic heartland. Notable names would of course be Ayala Land, Inc. (ALI), SM Prime Holdings (SMPH), Robinsons Land Corp. (RLC) and Megaworld Corp. (MEG).<\/p>\n\n\n\n