A year ago, Philippines President Ferdinand Marcos Jr.’s annual address to Congress shocked the nation with revelations of billions of dollars of graft involving flood-control schemes. The disclosure triggered an economic slump as projects slowed and consumers and businesses cut spending.

Now, as the president prepares for his second State of the Nation Address, economists and business leaders say he must use the platform to restore confidence. The Philippines economy has struggled to regain momentum after the corruption scandal stalled infrastructure spending and dampened private sector activity.

Analysts argue that Marcos needs to outline concrete anti-corruption measures and a clear fiscal plan to revive growth. Without a credible roadmap, the country risks prolonged stagnation, undermining the administration’s pledge to reduce poverty and attract foreign investment.