HONG KONG—Finance Secretary Carlos Dominguez III has assured the international business community that the Duterte administration’s high–and inclusive–growth program anchored on massive investments in infrastructure and human capital is on track despite the “disruption” caused by the Marawi conflict.

While the government is going ahead with its priority program to reshape the Philippine economy in order to attract investments, create jobs and attack poverty, Dominguez said President Duterte had to deal decisively with the armed assault in Marawi to prevent extremist forces from making Mindanao their “main theater” for terrorism in the region.

“This event is not expected to be a continuing disruption. None of the major projects planned for Mindanao has been delayed. The general economic program is intact. Over the next few weeks, sustained action by our security forces is expected to substantially eliminate the threat posed by extremists,” Dominguez told members of the global business community gathered at the Hong Kong Chinese Enterprises Association and the Bank of China Forum.

President Duterte placed the entire island of Mindanao under martial law last May 23 after members of the Maute Group attacked Marawi City, the capital city of Lanao del Sur province.

“The battle for Marawi is a decisive one. Had government failed to respond firmly, the extremists might have succeeded at establishing a rallying point for the stray bandit factions in the area. The defeat of the militants is a costly one for them. Whatever terrorists designs there might have been for Southeast Asia, the main theater can no longer be Mindanao,” Dominguez said.

Citing the Philippine Constitution, Dominguez also pointed out that “the imposition of martial law can last for only sixty days. Beyond that, an explicit authorization from the Congress is required. President Duterte has indicated he will lift martial law as soon as peace is restored.”

Dominguez also said the government has initiated peace talks with mainline insurgent groups like the Moro National Liberation Front (MNLF) and the Moro Islamic Liberation Front (MILF) to help attain lasting peace in Mindanao.

In the gathering, Dominguez thanked the Bank of China for demonstrating its confidence in the Duterte administration’s economic strategy in being the first to offer credit lines for its fast-track plan to modernize the country’s logistic and infrastructure system.

“Since then, other financial institutions have fallen in line with their own credit line offerings. They will have to contend with the generous rates of the Bank of China when they offer — a measure, I think, of the high esteem you hold for our ability to maintain fiscal discipline and our ability to keep the projects efficient and aboveboard,” Dominguez said.

In congratulating the Bank of China on its 100th anniversary, Dominguez said the Philippine government is proud to partner with an “exemplary institution” whose “excellent management” has made it one of the world’s strongest and largest banks.

The finance chief stressed that alongside an infrastructure development program requiring some US$170 billion or about P8.4 trillion over the next five years, the government’s plan is to also spend big on education, health and other forms of human capital formation “to build a solid fiscal buffer to keep the economy strong amidst the uncertainties in the globe.”

Dominguez said the Philippines’ “demographic sweet spot” provides it with a distinct advantage of having a young, workforce in a region where several mature economies are experiencing rapid population aging.”

“Over the past few years, the Philippines emerged as an increasingly important node of growth for the global economy. We are seeking to sustain a growth rate of at least 7 percent through the medium term. That growth level will be driven, to a large extent, by the massive infrastructure modernization program,” Dominguez said.

To provide an “ample and recurrent” revenue stream to fund this high and inclusive growth agenda, he said the Duterte administration has introduced a Comprehensive Tax Reform Program (CTRP), starting with a first package that was already approved by the House of Representatives.

“The business and NGO [nongovernment organization] communities cheered that achievement. We hope to get this through our Senate and passed into law before the year ends. Enactment of this package will send a strong signal to the investment community that this government means business,” Dominguez said.

“We are honored that our friends, such as the Bank of China, find the economic strategy viable and are willing to invest in it. Helping finance the infrastructure program is a business proposition. It increases the production and trade across our regions and will be the proverbial tide that lifts all ships,” he said.

Dominguez also said “Our whole region will be the most important driver of growth in the global economy long into the future. This will be truly an Asian Century.”

In his speech, Dominguez said that aside from lauding the bank on its anniversary, “It should be fitting as well to congratulate all the residents of the Special Administrative Region of Hong Kong on the 20th anniversary of the historic handover that restored this unique territory to the motherland.”

“That handover, instead of producing the economic meltdown as the pessimists at that time predicted, set firmer grounds for incredible economic progress for both the territory and China,” he said.