Marcos Keeps Philippine Economic Team, Replaces Top Diplomat

Ferdinand Marcos Jr., Philippines' president, speaks during a Bloomberg Television interview in Manila, the Philippines, on Tuesday, March 19, 2024. Marcos said the threat to his nation from China's sweeping claims in the South China Sea is growing but argued that his government's efforts to assert sovereignty over disputed areas aren't meant to start a conflict by "poking the bear." Photographer: Veejay Villafranca/Bloomberg Photo by Veejay Villafranca /Bloomberg

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(Bloomberg) — Philippine President Ferdinand Marcos Jr. retained his economic managers in a sign of policy continuity amid a Cabinet shakeup, while replacing his top diplomat as tensions with China linger.

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Finance Secretary Ralph Recto and Special Assistant to the President for Investment and Economic Affairs Frederick Go will keep their posts, Executive Secretary Lucas Bersamin said in a briefing on Friday. The ministers for trade, economic planning and budget will also stay on, he said. 

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Marcos decided to keep his economic team “to enhance our economy in the eyes of the outside world and here in the Philippines,” Bersamin said.

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Keeping his economic team intact should help ease any investor concern about Marcos’ unexpected move Thursday when he asked his entire Cabinet to resign. There were worries the revamp could be disruptive to an economy that’s facing global risks with US tariff talks underway for most nations. Manila’s main stock index rose 1.7% on Friday.

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The fate of the ministers managing the economy was being closely watched, after slower-than-expected growth in the first quarter. Marcos’ call followed a drop in his popularity and his candidates’ underwhelming performance in the midterm Senate election last week. 

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The retention of Go and Trade Secretary Cristina Roque will also help sustain Manila’s efforts to lobby for lower US tariffs, after their recent talks with American officials.

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Meanwhile, the Philippine leader named veteran diplomat Ma. Theresa Lazaro as the new foreign affairs secretary, replacing Enrique Manalo. Lazaro has represented the Philippines in talks with Beijing on the South China Sea dispute. 

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Lazaro’s appointment comes shortly after tensions with China in the contested waters flared anew, with Manila accusing Beijing of once again using water cannon. The Philippines under Marcos has asserted its claims to the resource-rich waterway, while strengthening security ties with the US.

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Marcos also transferred Energy Secretary Raphael Lotilla to helm the environment department. Outgoing top envoy Manalo will become the country’s permanent representative to the United Nations.

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—With assistance from Cliff Venzon.

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