FOR AS LONG as the administration doesn’t make true on its promise to send crooks behind the so-called flood control scandal to jail, there is no way to reverse the negative public perception of how untrustworthy the government has become.
Taking cue from recent surveys, President Ferdinand Marcos Jr. became the first Philippine President to register a negative three percent trust rating.
Aside from Marcos Jr., the surveys also showed declining trust ratings on Marcos’ economic managers, cabinet officials and allies in both the Senate and the House of Representatives.
BIZMEN IN DOUBT
With the corruption issue blown beyond proportion, even the business sector seemed to be having second thoughts, even as the Bangko Sentral ng Pilipinas reported a 0.9 percent business confidence, as of January 2026.
Though still in the positive realm – as optimists still outpaced pessimists– it marked a sharp decline from 29.7 percent in the last quarter of 2025, reported Inquirer.
The result was culled from BSP’s inaugural monthly business expectations survey, part of a shift away from quarterly polling aimed at effectively capturing any shifts in sentiment amid rapidly changing domestic and external developments.
Each monthly round now covers about 500 firms nationwide, roughly a third of the 1,500 companies surveyed under the previous quarterly format.
DRASTIC MEASURES
Businesses appeared less confident as the economy faces a high-profile corruption scandal that has implicated several public officials and stalled government spending.
The confidence shock prompted the BSP to lower its key rate to an over three-year low of 4.25 percent, though the central bank acknowledged that its capacity to support the sluggish economy may be reaching its limits, the Inquirer explained.
This despite BSP’s efforts to spur bank lending and economic activity, still those surveyed expected tight cash positions and credit access in January. The financial condition index and the credit access index came in at -19.2 percent and -0.6 percent, respectively.
Respondents likewise cited stiff domestic competition, insufficient demand and sticky interest rates as major constraints to business activities in the first month of the year.
MODEST OPTIMISM
The survey noted that companies found modest optimism in higher consumer demand for select products and services—including garments, education, loan products, mailing and shipping services and motor vehicle parts—as well as in ongoing business process improvements.
Looking forward, businesses expect improvements for the near and medium term. The three-month-ahead confidence index (CI) rose to 33.3 percent, while the year-ahead gauge climbed to 38.6 percent, signaling stronger confidence for the next quarter and over the next 12 months.
Hiring intentions also remained positive as 14.1 percent of industry firms plan expansion next quarter and 24.3 percent expect growth over the next year.
Businesses anticipate inflation to rise in January, in the second quarter, and over the next 12 months, though still within the BSP’s 2 to 4 percent target range, the BSP said.