Political noise clouds investor outlook as Marcos faces impeachment bids
By Chloe Mari A. Hufana, Reporter
FOREIGN AND DOMESTIC investors remain wary of impeachment proceedings, which economists said could heighten policy uncertainty and governance risks, as the Philippines’ two highest officials face ouster complaints that may weigh on market sentiment.
“Impeachment proceedings can weigh on confidence in policymaking by distracting attention from execution and reinforcing perceptions of institutional fragility, making stability, transparency and clear economic direction even more critical,” John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, told BusinessWorld in a Viber message.
He noted that credibility shocks often lead companies to delay investment, raise risk premium and soften capital inflows even when fundamentals remain stable.
The Philippine economy grew 4% in the third quarter of 2025, the slowest in more than four years, which Economic Secretary Arsenio M. Balisacan partly attributed to lower infrastructure spending amid the flood control controversy. The country’s full-year gross domestic product report will be released on Jan. 29.
President Ferdinand R. Marcos, Jr. is facing three ouster bids after he was accused of benefiting from the infrastructure projects, though the last two cases were declined by the House of Representatives last week in the absence of its secretary-general.
Vice-President Sara Duterte-Carpio may face renewed calls for impeachment on Feb. 6, when the one-year bar rule lapses. An impeachment complaint filed against her in 2025 alleged betrayal of public trust and corruption.
Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said the recent political noise could derail priority reforms meant to strengthen governance and fiscal management.
“Any resulting political uncertainty could weigh on investor sentiment, prompting a cautious, wait-and-see stance that could slow economic growth,” he said via Facebook Messenger.
“Until the dust settles, political stability remains one of the key considerations for investors to ensure policy predictability, which is critical to their ability to make money in the country — the main motivation to invest,” he added.
The Presidential Palace last week warned that impeachment complaints against the President could hurt economic confidence and damage the country’s image overseas, potentially weighing on investment sentiment and foreign relations.
Palace Press Officer Clarissa A. Castro said such proceedings are viewed negatively by some economists since they signal dissatisfaction with government performance.
The Philippines is grappling with a high-profile flood control controversy involving mismanagement and overpricing in multibillion-peso projects intended to curb seasonal flooding.
Investigations have pointed to possible kickbacks and irregular contracts linking private contractors to government officials, with Mr. Marcos also implicated.
The controversy has turned into a political flashpoint, driving calls for accountability and underpinning impeachment complaints against the President. On Thursday, about 30 activists led by Bagong Alyansang Makabayan tried to file a complaint alleging betrayal of public trust tied to the scandal.
A separate self-described nonpartisan group also sought to lodge its own complaint, but both attempts were rejected on procedural grounds.
Efforts to impeach Mr. Marcos gained momentum after an earlier complaint accused him of benefiting from irregular contracts. That filing is expected to be taken up by the House justice committee once Congress reconvenes.
Complainants have described the alleged infrastructure graft as “systematic” and “brazen,” accusing the President of being the “ultimate recipient and beneficiary” of kickbacks.
Support from minority party-list lawmakers strengthened the leftist complaint, though constitutional limits allow only one impeachment proceeding against the same official within a calendar year, raising questions over the viability of subsequent filings.
Ms. Castro earlier said the President denied any impeachable wrongdoing and challenged the allegations as unsubstantiated.
Under the Constitution, any Filipino may file an impeachment complaint, but it must be endorsed by at least one-third of all congressmen before it can be sent to the Senate, which sits as an impeachment court.
