GCG Targets Liquidation of Five State-Owned Firms by Year-End

 

The Philippine government is moving to reduce the number of state-owned corporations, with the Governance Commission for GOCCs (GCG) targeting the completion of liquidation proceedings for at least five government-owned and controlled corporations (GOCCs) before the end of 2026.

GCG Chairperson Marius Corpus said the agency is working with other government offices to determine which companies can be fully wound up this year. The specific five firms have yet to be disclosed as the matter remains under review by a technical working group.

The planned closures form part of the Marcos administration’s broader effort to eliminate government entities that have become inactive, redundant or no longer fulfill their original mandates. The objective is to prevent public funds and administrative resources from being tied up in organizations that no longer provide sufficient public value.

Finance Secretary Frederick Go previously estimated that roughly 10 percent of the country’s more than 100 GOCCs could eventually be abolished. The move is intended to streamline the government corporate sector and redirect resources toward more productive priorities.

As of June 30, the GCG had classified 21 government corporations as under abolition. The list spans a wide range of industries, including agriculture, property development, transportation, finance and energy.

Among the corporations slated for abolition are Alabang-Sto. Tomas Development Inc., AFP Retirement and Separation Benefits System, CDCP Farms Corp., Disc Contractors, Builders and General Services Inc., Human Settlements Development Corp., National Agri-Business Corp. and Panay Railways Inc.

The roster also includes the Philippine Agricultural Development and Commercial Corp., Partido Development Administration, Philippine Forest Corp., Philippine Sugar Corp. and Philippine Veterans Investment Development Corp.

Several corporations linked to the Philippine National Oil Co. are likewise included, namely PNOC Alternative Fuel Corp., PNOC Development and Management Corp. and PNOC Shipping and Transport Corp.

Other entities identified for abolition are Quedan & Rural Credit Guarantee Corp., Technology Resources Center, Zamboanga National Agricultural College, Rubber Estate Corp., First Cavite Industrial Estate Inc., Northern Foods Corp. and North Luzon Railways Corp.

Corpus acknowledged that liquidation is a complex and time-consuming undertaking. Government agencies must settle corporate obligations, assets and other outstanding matters while ensuring that the state’s financial and legal interests remain protected.

The scale of the restructuring is significant. The country had 124 active GOCCs as of June 2026, meaning the planned closures represent part of a wider effort to reassess the role and viability of government-owned corporations.

Rather than simply shutting down institutions, the liquidation process is designed to formally conclude their operations and resolve their remaining responsibilities. In that sense, the government’s program functions much like clearing an outdated branch from a large organizational structure, allowing resources and oversight to be concentrated where they remain necessary.