Speaker Martin G. Romualdez on Thursday assured foreign investors and multilateral lenders that the House of Representatives would continue to pass measures to sustain the country’s robust economic performance.
He also welcomed as good news the encouraging remarks made by American and foreign business leaders during the presentation of President Ferdinand Marcos Jr.’s economic team led by Budget Sec. Benjamin Diokno on the state of the Philippine economy in Washington DC.
The team presented to Standard Chartered Bank Global Head of Public Sector and Development Organizations Karby Leggett, World Bank Country Director for Philippines, Malaysia, Thailand, and Brunei Ndiamé Diop, and International Monetary Fund (IMF) Deputy Director, Asia, and Pacific Department Sanjaya Panth.
“We are committed to passing more measures that the Marcos administration may need to further enhance investment in the Philippines aimed at improving the lives of Filipinos. I urge foreign investors to stay the course with us and share the benefits of progress and development,” Romualdez said.
During the briefing held at Fairmont in Washington D.C. Wednesday (US time), Standard Chartered Bank, WB, and IMF officials cited the continued strong and resilient Philippine economy despite global challenges, including the COVID-19 pandemic and inflation.
Romualdez said the event was part of the Marcos administration’s whole-of-government approach to attracting more foreign investments that would create more income and job opportunities for Filipinos. Maricel V. Cruz
“I commend members of the economic team for this briefing. The United States is a major source of investments and funding assistance. The World Bank and IMF are likewise principal development funders,” he said.
The Speaker thanked the World Bank and IMF and several big multinational banks for helping organize the conference, the second held in Washington DC and the third in the US.
Other Philippine officials led by Ambassador to the US Jose Manuel Romualdez attended the event.
Members of the economic team who briefed the multilateral agencies, banks, and prospective investors were Diokno, Bangko Sentral ng Pilipinas (BSP) Gov. Felipe M. Medalla, Budget Secretary Amenah Pangandaman, and National Economic and Development Authority Director General Arsenio Balisacan.
In his remarks, Diokno said the 2022-2028 Medium Term Fiscal Framework, which Congress passed shortly after it convened in July last year, “serves as a compass to steer the economy closely along the patch of fiscal sustainability and economic growth.”
“The targets and measures under this framework are firmly supported not only by the President but also by both houses of Congress,” he said.
The secretary cited economic liberalization measures Congress recently approved to attract more foreign investments, such as the amended Public Service Act, Foreign Investments Act, and Retail Trade Liberalization Act.
Last year, Diokno said the economy posted “a 46-year record-high growth rate of 7.6 percent.”
“This was higher than our full-year target of 6.5 percent to 7.5 percent and exceeded forecasts of local private sector analysts and international financial institutions, placing the Philippines among the best-performing economies in the Asia-Pacific region,” he said.
Diokno said the growth target this year is 6 percent to 7 percent. “And while slightly lower in recognition of the expected global slowdown, this target remains high but doable,” he added.
The finance chief pointed out that the government’s fiscal performance remains strong, with 2022 revenue collections reaching P3.5 trillion or about $65 billion, 18 percent higher than the 2021 level.
“The Philippines’ impressive economic performance is the result of years of interconnected structural reforms. Now, we are unfurling our sails to journal towards shared and sustainable economic prosperity, and our investments will be the wind driving this forward,” he stressed.
Pangandaman told the multilateral lender-funders and potential investors that the government’s priorities and expenditures are aligned with the medium-term development plan and the 8-point socio-economic agenda of President Ferdinand Marcos Jr.
She said the bulk of the budget – roughly 38.1 percent – has been allotted to the social services sector “to ensure revitalized education, quality healthcare, and strengthened social protection.”
A sizable part of the outlay was also allocated for physical, social, and digital infrastructure, she said.
“Here’s the good news: as of last month, the national government has identified 194 high-impact and urgently-needed infrastructure flagship projects. These will be given top priority during the annual preparation of our government’s budget,” the Budget chief said.
She added that physical infrastructure spending is “aimed at improving physical connectivity throughout the country through the construction of accessible road networks, railways, buildings, and flood control infrastructure, among others.”
Pangandaman mentioned school buildings, hospitals, health centers, water supply systems, and housing facilities as among the administration’s social infrastructure projects.
She pointed out that for social infrastructure, P24.13 billion or US434.3 million has been set aside “to accelerate the country’s digital transformation.”
“America is an age-old friend of the Philippines. We hope to strengthen this friendship even more as we continue to nurture our robust people-to-people ties, invigorate our dynamic bilateral relations and pursue economic transformation,” she said.
For his part, Balisacan said the government aims to sustain its annual infrastructure spending at 5 percent to 6 percent of gross domestic product from 2023 through 2028, or between US20 billion and US40 billion a year.
He said a total of 3,770 infrastructure projects with a funding requirement of US317.5 billion had been identified, to be financed through both local resources and investments and assistance from the private sector and development partners.
“Indeed, the Marcos administration has aggressively pursued several initiatives to encourage greater local and foreign investment and private sector participation in infrastructure development…we welcome and urge the investor community to consider placing its resources in the country’s flagship infrastructure projects,” he said.
