PRESIDENT RODRIGO ROA-DUTERTES SECOND STATE OF THE NATION

ADDRESS

MANILA, Philippines - "The second State of the Nation Address (SONA) was a showcase
of simplicity," Malacaang Palace said in a press statement.

President Rodrigo Roa Duterte on Monday, July 24, 2017 "spoke from the heart" as he
delivered his SONA, describing the country's present situation and laying down his
future plans and prospects, including his legislative priorities.

"He was frank and outspoken, and went off-script from time to time to emphasize a
point or share a light banter with his audience," the Palace added.

The Chief Executive discussed about his Administration's continued fight against illegal
drugs and all forms of criminality, ending the Marawi rebellion and battling terrorism,
the extension of martial law, stopping destructive mining operations, paying the right
taxes, the Build-Build-Build Infrastructure Plan, among others.

His speech, which took more than two hours to finish, was largely in English, with some
off-the-cuff remarks spoken in Tagalog and a bit of Visayan dialects to resonate well
with the Filipino people.

Towards the end of his speech, the Chief Executive submitted before Congress his
Administration's P3.767-trillion budget proposal for next year.

Prior to the SONA proper, President Duterte arrived 4:00 p.m. at the Batasang
Pambansa Complex on board the presidential chopper. Accompanied by Special
Assistant to the President Christopher Lawrence Bong Go, he was received by Armed
Forces of the Philippines Chief-of-Staff Eduardo Ao, Senate Sergeant-at-Arms Jose
Balajadia Jr., and House Sergeant-at-Arms Rolando Detabali in the landing area.
In contrast to the large group of lawmakers that traditionally greets the President,
PRRD was welcomed by Senate President Aquilino Pimentel Jr. and House Speaker
Pantaleon Alvarez. The two leaders ushered him to the Legislators' Lounge, where he
met with Senate Majority Leader Vicente Sotto III, House Majority Floor Leader Rodolfo
Farias, and Quezon City 4th District Representative Feliciano Belmonte, Jr. before
proceeding to the Plenary Hall.

A Mindanao an staff member of the House of Representatives' Human Resource

Management Service, Monaliza Adam, sang a capella the Philippine national anthem.

Catholic priest Father Alexander Balatbat and Muslim imam Jamel Rombo Cayamodin,
on the other hand, led the invocation.

SONA director Brillante Mendoza, who also directed last year's SONA, used more
cameras to shoot more angles of the President as he was speaking, as well as to
capture the audience's reactions.

About 2,000 invitations were sent for the SONA event, which was attended by top
politicians, foreign diplomats and living past presidents.

Former presidents Fidel V. Ramos, incumbent Manila Mayor Joseph Estrada, and
Pampanga 2nd District Representative Gloria Macapagal-Arroyo graced the occasion.
Vice President Maria Leonor Robredo and Supreme Court Chief Justice Maria Lourdes
Sereno were also present.

Other prominent guests like former House Speaker and now special envoy for the Asia-
Pacific Economic Cooperation Jose de Venecia Jr., erstwhile Duterte's Foreign Affairs
Secretary Perfecto Yasay, Jr., businessman Peter Wallace, Chinese Ambassador to the
Philippines Zhao Jianhua, were spotted in the annual event.
In line with the Administration's avowed austerity mindset, most of the guests complied
with the dress code. Pia-made Filipiniana dresses and simple barong took center stage
as everyone stuck to keeping the event simple. A few political personalities donned
statement attires.

President Duterte came in a traditional Barong Tagalog sans elaborate embroideries.

Davao City Mayor Sara Duterte was dressed in a pink terno. Davao City Vice Mayor
Paolo Duterte wore a nature-inspired barong. The President's youngest son, Sebastian
Duterte, opted for a clean-look barong.

President Duterte's common-law wife Honeylet Avancea, dressed in peach terno, also
attended the occasion.

Cabinet members who attended the SONA to show their support to the President
included Executive Secretary Salvador Medialdea, Foreign Affairs Secretary Alan Peter
Cayetano, Finance Secretary Carlos Dominguez, Socioeconomic Planning Secretary
Ernesto Pernia, National Security Adviser Hermogenes Esperon, Jr., Defense Secretary
Delfin Lorenzana, Presidential Legal Counsel Salvador Panelo, Presidential
Communications Secretary Martin Andanar, Presidential Spokesperson Ernesto Abella,
among others.

Invited guests proceeded to the cocktail reception after the SONA, and were treated to
a very simple menu of food choices. There were assorted canaps, fruit tartlettes,
spring rolls, and popular Filipino merienda like turrones and bibingka. House blend ice
tea, lemonada, coffee, or tea are the choices for beverage. No alcoholic drink was
served.

After the SONA, President Duterte, in another rare move, proceeded outside the
Batasan complex to talk to left-wing protesters. Then, he went back inside the
legislative building to hold a press conference, where he answered queries and clarified
some issues, ranging from terrorism and Martial Law extension to economic growth
concerns, from members of the media.

REACTIONS ON PRESIDENT DUTERTE'S SECOND SONA

The second SONA highlighted the government's accomplishments especially on war

against drugs and criminalities. Duterte during the election campaign period promised
to resolve these in just six months but failed to bust and requested for extension saying
he was shocked by the extent of the drug problem.

Same with previous SONA, thousands of protesters and militant groups rallied near the
Batasan to denounce the recently approved extension of Martial law in Mindanao until
December 31 and to assert that the presidents promise of change has not been
realized. Protests meanwhile was peaceful and orderly.

Some activists claims Duterte's first year was a major flop in addressing the pressing
economic and social imbalances only to be highlighted by blood and gore.

While the president also emphasized his plans for a tax reform program to raise the
national budget, it must be studied thoroughly as it is branded as regressive and anti-
poor by certain groups. For instance, House Bill 5636 for sugar-sweetened beverages
(SSB), will come with a P10-per-liter tax. This will apparently dissuade consumers from
purchasing SSBs. According to the Philippine Association of Store and Carinderia
Owners (PASCO), the imposition of SSB tax will result to 3% to 200% rise in prices.

The president also showed his eagerness to stop violence and rebellion in Mindanao
and said that Mighty Corporation's P25 billion tax settlement can be used for the
rebuilding of Marawi. However, he did not mention the immediate actions to settle the
issue.
It is interesting to note that the Bangsamoro Basic Law (BBL) was certified as urgent by
Duterte administration. "BBL is key to just and lasting peace."

While there's a lot of issues that need to be resolved, Filipinos are hopeful that Duterte
will deliver his promised change during the course of his presidency. This is evident of
the excellent trust rating he received in the latest Pulse Asia Research's June
2017 Ulat ng Bayan survey, 82% nationwide.

"Believe me, it is easier to build from scratch than to dismantle the rotten and rebuild
upon its rubble. Let us work together and lay a new foundation in which a better
Philippines can be reconstructed. Help me build a better tomorrow," Duterte ended his
speech.