The Pampanga Chamber of Commerce and Industry, Inc. (PAMCHAM) has raised concerns over the Philippines’ 4.4% GDP growth in 2025, urging the government to implement corrective measures to restore efficiency in public construction, strengthen services, and rebuild public trust.
In a statement, PAMCHAM noted the decline from the previous year’s 5.7% growth and said the latest figure fell below government targets, placing the country behind several regional economies and highlighting challenges in economic management and public sector performance.
The business group pointed to the sharp drop in public construction spending as a major factor in the slowdown. This followed a corruption scandal linked to flood-control projects, which led to stricter scrutiny but also caused hesitation within government agencies, particularly the Department of Public Works and Highways (DPWH).
According to PAMCHAM, the situation resulted in delays in project approvals and payments, affecting not only flood-control works but also other key infrastructure projects essential to economic activity, mobility, and competitiveness.
The chamber said the slowdown in government processes triggered delays in construction timelines, stalled provincial economic activities, and postponed salary releases for affected workers. Many stakeholders believe the slowdown was driven more by administrative caution and indecision rather than the investigations themselves.
Despite assurances from economic managers that the reforms aim to correct systemic weaknesses and strengthen institutional integrity, PAMCHAM said the economic impact has been significant, affecting workers, contractors, families, and small businesses.
PAMCHAM President Atty. Paul Yusi stressed the need to restore confidence and consistency in public processes, noting that the business sector requires predictability in government actions while maintaining accountability.
Meanwhile, PAMCHAM Chairman of the Board Jim Jimenez highlighted the real-world impact of project delays, saying halted projects and delayed salaries place additional burdens on workers and small enterprises.
PAMCHAM Board Director and Infrastructure Development Committee Director-in-Charge Atty. Ryan Tan emphasized that infrastructure development remains critical to national and regional competitiveness, warning that stalled public construction directly affects local economies.
As the country moves into 2026, PAMCHAM is calling for decisive and transparent action to restore confidence, improve public spending efficiency, and sustain economic momentum.
The chamber said it remains ready to work with government agencies, local stakeholders, and private sector partners to support initiatives aimed at strengthening economic resilience, improving governance, and promoting long-term national development.
