Amid escalating trade tensions between the giant strategic rivals, the U.S. and China, President Marcos’ chief economic manager remains optimistic about the Philippines’ economic prospects under the Trump 2.0 administration.
“We’re optimistic under a Trump presidency. You have a ceasefire in the Middle East. That's good for inflation. That’s good for lowering oil prices,” Department of Finance (DOF) Secretary Ralph G. Recto said in an interview with CNBC during the 2025 World Economic Forum (WEF) in Davos, Switzerland.
Donald Trump, sworn into the presidency on Jan. 20, stressed in his speech his “drill, baby, drill” campaign to boost fossil fuel production and power projects. This came while announcing that the U.S. would be placed under a “national energy emergency.”
“So with those statements, the strong statement coming from the United States, I think that should be good for the [Asia-Pacific] region,” Recto said.
For the Philippines, Recto remains confident that the country is in a comfortable position despite emerging investment risks stemming from territorial disputes in the West Philippine Sea.
“We don’t expect [many] problems in the West Philippine Sea, or I don't think that China—I think no one wants to go to war, right?” he said. This came after he noted that the Philippines “can be assured of an ironclad commitment to its mutual defense treaty” with the U.S.
According to Recto, another thing that could benefit the Philippines is a scenario where Western companies investing in China relocate to the Philippines, given its status as an ally of the U.S. and its bloc.
Urging global investors
Recto assured international investors of success if they chose to infuse their financial resources to the Philippines.
By choosing the Philippines, Recto promised them “success” through the recently enacted Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act.
“CREATE MORE was designed to address your concerns and tailor fiscal and non-fiscal incentives to meet your specific needs. Simply put, CREATE MORE was carefully crafted to make more money for you and create more high-quality jobs for our people,” Recto said.
“Here’s our promise: The moment you step in [the Philippines], we will let you experience a home that nurtures your long-term growth and success,” he added.
This year’s WEF, an annual convening policymakers around the world, started on Jan. 20 and will conclude today, Jan. 24. Major discussions focused on global and regional challenges, such as boosting growth to enhance living standards, addressing geopolitical shocks, and managing a fair and inclusive energy transition.