As survivors of a three-year global pandemic, we must now emerge with the strength and confidence to thrive amid uncertainties and volatilities
The 2nd Philippine Economic Briefing held June 15 in Singapore was the seventh edition of the ongoing roadshow of President Ferdinand “Bongbong” Marcos Jr’s administration aimed at attracting foreign direct investments that would establish long term enterprises that can stimulate and sustain a robust and prosperous economy, which, hopefully, will be inclusive.
The presentations of the Philippine economic team illustrated how the country’s economic performance showed remarkable resilience and dynamism that, despite the deep economic scars caused by the pandemic, the challenges of high inflation and rising debt of government, there is reason for optimism and positive outlook.
Finance Secretary Benjamin Diokno showed how the Philippine’s economic performance continues to be strong as it outperformed other emerging economies in Asia.
Household consumption grew by 6.3 percent and is seen to continue to be a major force for growth while investments grew by 12.2 percent.
Data was presented on the improving labor market, inflation slowing down, and how the normalizing mobility has increased economic activity and resulted in strong fiscal performance.
With more tax reforms and systemic digitization to improve tax administration, Secretary Diokno is confident the administration’s growth objectives will be achieved.
He assured that stable macroeconomic fundamentals will be sustained with fiscal prudence and agile risk management.
Structural reforms will further increase the inflow of investments and volume of trade.
Infrastructure will be a top priority for public investments while the private sector’s will be harnessed for public-private partnerships.
Department of Budget and Management Secretary Amenah Pangandaman spoke of the evident gains as the rising economy pushes forward notwithstanding global challenges and the lingering post-pandemic fallout.
Social services received the bulk of the allocation in the 2023 national budget (P1.8 trillion) while Education, being a top priority, received the largest share. Healthcare has the second largest budget and expectedly lower than pandemic levels.
Ongoing concerns in Food Security will hopefully be addressed with the 29 percent increase for Agriculture amounting to approximately P186 billion. Spending on infrastructure will focus on countrywide improvements in physical connectivity.
More funding for climate change mitigation and adaptation programs anticipates the damaging effects of increasing extreme weather occurrences.
Unlike in former administrations, there is more funding in Digital Infrastructure but still not enough to catch up with other countries in the region.
National Economic and Development Authority Secretary Arsenio Balisacan also emphasized on the expansion and upgrade of infrastructure as a key strategy in the 2023-2028 Philippine Development Plan and development agenda of the government.
The 194 infrastructure flagship projects in the Build Better More program of the Marcos Jr. administration will be funded with an allocation of 5-6 percent of the country’s gross national product which would translate to about US$20-40 billion for each budget cycle.
Financing will be sourced via Official Development Assistance, General Appropriations Act, and Public-Private Partnership.
Appropriately, Secretary Balisacan recognized the private sector as the government’s valuable partner being the driver for growth and innovation and wielding the financial resources, and the technical and managerial expertise that are critical in achieving the government’s socio-economic agenda and enhancing the delivery of public services.
Prof. Victor Andres “Dindo” Manhit, Stratbase Group CEO, Bower Group Asia’s Managing Director, in his speech as representative of the private sector and reactor, stated it will be the growing consumption economy and increasing investments that will drive Philippine economic growth.
The opening of the economy has sparked the rise in opportunities for employment which generates income for consumption.
Prof. Manhit said, “Philippines has a huge consumer base of over 110 million and a population that is young, skilled, and educated. Private consumption buoyed by sustained income growth due to government and private sector investments will be key growth drivers to the growing Philippine economy.”
He explained that “robust consumption supported by remittances and improved job opportunities would drive economic growth.” Adding more capital to the local economy are the Philippine diaspora remittances boosting consumer consumption and investments.
Based on a recent Pulse Asia survey, President Marcos Jr. has gained the people’s trust and support and has the advantage of strong political capital and a very competent economic team that has concrete plans and solutions to address the country’s most urgent concerns.
The President has the opportunity to harness the talents and assets of government and a very able and willing private sector in executing his administration’s 8-point socioeconomic agenda and the Philippine4 Development Plan 2023-2028 to steer the Philippines to a high velocity track towards sustainable and most of all inclusive growth and prosperity.
As survivors of a three-year global pandemic, we must now emerge with the strength and confidence to thrive amid uncertainties and volatilities.
As our government continues to fulfill its duty and mandate to promote and protect our interests as a nation, we must reciprocate by actively participating as responsible citizens contributing the best we can for our collective success.
