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Katrina Domingo, ABS-CBN News
MANILA — President Ferdinand Marcos Jr. on Wednesday highlighted the Philippines’ strategic position in Asia, tax perks, and English-speaking workforce as he courted investors in Singapore.
Philippine “economic expansion is expected to continue this year, with global institutions such as the World Bank and the IMF projecting the Philippines to grow around 6 percent in 2023,” Marcos Jr. said in his speech at the Milken Institute’s 2023 Asia Summit.
“Our growth story is underpinned by a strong domestic demand and increasing fixed capital investment as a result of upbeat domestic activity and improved business confidence,” he told investors and business leaders who attended the gathering in Singapore.
With 110 million consumers, demand in the Philippines “helps fuel our current and future growth,” he said.
“In the face of global economic volatility, the Philippines has demonstrated remarkable resilience. We have sustained consistent GDP (gross domestic product) growth bolstered by prudent fiscal management and monetary policy,” he said.
“Despite high inflation and global market instability, our economy grew by 7.6 percent in 2022— the fastest rate of growth recorded by our country since 1976, coincidentally in the time of my father,” he added.
In August, the Bangko Sentral ng Pilipinas said that the country’s GDP could drop below the 6 to 7 percent target set by economic managers due to economic headwinds and the impact of a string of interest rate hikes.
But the National Economic and Development Authority (NEDA) countered the central bank’s statement, saying that the Philippines could still reach “the lower range of 6 to 7 percent” if the economy grows by at least 6.6 percent in the second half of 2023.
AGRICULTURE
The President, who heads the Department of Agriculture, also told investors about the Philippines’ push to become more self-sustaining when it comes to agriculture and food production.
The COVID-10 pandemic taught the country that reliance on importation “was not a wise choice,” Marcos Jr. said.
“This was one of the hardest lessons we had to learn… We lost totally the connection between source of food to the markets,” he said, noting that the Philippines “unfortunately had to suffer the longest lockdown aside from China.”
“We cannot continue to depend on importation. In the past years, it became the easy way out… The pandemic showed us that this was not a wise choice,” he said.
The Philippines has been developing its agricultural sector, Marcos Jr. said as he told business leaders that the country was welcoming investments in smart agriculture.
“The aspiration is we are able to provide food at prices people can afford,” he said. “We are not there yet but we have made many important steps to put the value chain together all the way from R&D (research and development) to the retail, to the market.”
“There are bits and pieces of it that already exist but they do not work as one system,” he said.
Earlier this month, Marcos Jr. imposed a price cap on two varieties of rice after the government accused some traders of hoarding the staple grain to manipulate its market prices.
The government has distributed a one-time P15,000 cash aid for rice retailers to cushion the impact of the price ceiling.
PH NEEDS MORE INVESTMENTS IN ENERGY, MANUFACTURING
The President also underscored that his administration is working to reduce red tape in government, and increase investments in the renewable energy and manufacturing sectors.
The Philippine government has passed several regulatory reforms to “liberalize many sectors, including public services, retail, and renewable energy, amongst others,” Marcos Jr. said.
These “are expected to encourage private investment and bolster the growth of our economy over the medium to the long term,” he said.
The Marcos Jr. administration is also working to reduce the imbalance of the economic contributions between the Philippines’ services and manufacturing sectors, the Chief Executive said.
“The contribution of services against manufacturing was a little lopsided at 60 percent to 40 percent,” the President said.
To attract more manufacturing companies, the Philippines is “also trying to increase the supply of electricity,” he said.
“We have to move the mix from fossil fuels to renewables. That’s why we are trying to court more investments [in the renewable energy sector],” he said.
As the Philippines is “committed to sustain development in the fight against climate change,” laws were amended to allow “100 percent foreign ownership when it comes to renewable energy,” he said.
“We are actively promoting investments in smart and sustainable agriculture. By investing in our nation, you are investing in a greener, more sustainable, equitable world,” he said, underscoring that the country has sufficient safeguards to protect the intellectual property rights of foreign investors.
GEOPOLITICAL TENSIONS
The President also tried to ease worries about geopolitical tensions that could affect investments in the Philippines.
“Geopolitical stability and regional cooperation are cornerstones of our policy,” he said, noting that the country is always willing to collaborate with other nations to “foster a conducive investment and business climate.”
While the President did not specifically mention the Philippines’ territorial row with China — the world’s second largest economy — he admitted that his country, just like other nations, faced its own challenges.
“Our nation’s resilience and ability to adapt are not just stories, they are lessons that we bring to the table, lessons that we share with our partners who are invested in our shared futures,” Marcos said.
“I invite each one of you to consider the Philippines as a strategic partner in your journey,” he said. “The Philippines is open for business. We invite you to join us in shaping a brighter future for us all.”
Marcos Jr., who is celebrating his 66th birthday, is expected to stay in Singapore until the weekend.
Aside from his appearance at the 2023 Asia Summit, the Palace earlier announced that Singaporean Prime Minister Lee Hsien Loong invited the Filipino leader to watch the F1 Grand Prix finals.
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