Finance Secretary Ralph G. Recto has underscored that the Philippines’ strong economic momentum is in place and that the country must do everything to take advantage of it.
“The Philippine economy has already doubled its size since 2013 in terms of nominal GDP. And by 2030, our projections show that we can grow by another two-fold,” he said in his keynote address at the Stratbase Pilipinas Conference on November 7, 2024.
Stratbase ADR Institute for Strategic and International Studies (ADRi) is an independent, international research organization focused on the in-depth analysis of economic, social, political, and strategic issues influencing the Philippines and the Indo-Pacific region.
The conference, organized by Stratbase, aims to advance multi-sectoral collaboration to shape policies that address the complex social, political, and economic challenges impacting the Philippines and the broader Indo-Pacific region.
It gathered over 400 leaders from the government, business sector, diplomatic community, think tanks, civil society organizations, and the media.
From being the world’s 34th largest economy in 2023, the International Monetary Fund (IMF) projects that the Philippines will climb to the 28th spot by 2029, while Goldman Sachs expects the country to become the world’s 14th largest economy by 2075.
Moreover, an HSBC study revealed that the Philippines has the most favorable demographics in ASEAN. The country’s share of the working-age population is projected to grow by as much as 15% from 2025 to 2035, the fastest in the region.
The country’s demographic dividend is expected to boost its GDP per capita, not only driving up demand for consumer goods but also boosting investments, as households gain the ability to allocate more funds toward savings and investment.
“This golden moment is one we are committed to taking full advantage of to strengthen our already dynamic labor force,” Secretary Recto stressed.
“It is only then right that we take it as our collective duty as a nation to invest in the skills and education of our young population to fully capitalize on this demographic dividend,” he added.
With this, the Finance Chief underscored the critical role of the private sector in shaping the country’s future as a catalyst for growth.
“[W]e recognize that the private sector’s role is indispensable in this quest. For you are our major economic lifeline. You have the power to accelerate or break our growth momentum,” he said.
True to this, Secretary Recto said among President Ferdinand R. Marcos, Jr.’s first initiatives was the creation of the Private Sector Advisory Council (PSAC), which meets twice a month to offer strategic insights and industry expertise that shape government policies.
This strong collaboration between the government and the public sector is grounded in core principles of transparency, innovation, adherence to the rule of law, and good governance.
“Together, we have designed reforms that will ensure investments work best for the economy. Because when businesses flourish and investors succeed, the benefits ripple out to uplift more Filipino lives,” he said.
Among the products of this good teamwork is the enactment of the Public-Private Partnership (PPP) Code last year, which has made PPP involvement faster and easier. This allows the government to build massive infrastructure projects that enhance both physical and intellectual assets.
The Finance Chief urged the private sector to not only participate in physical connectivity projects but also in developing the digital infrastructure required for the new economy, such as data centers.
The government also needs help in rolling out its Artificial Intelligence Strategy Roadmap to cultivate a new generation of research scientists, engineers, and research and development innovators.
Secretary Recto also shared that aside from the many business-friendly policies in place, the government is in the process of passing yet more game-changing reforms within the year.
This includes the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE), which will help bring in more capital-intensive investments and generate quality jobs, especially in higher value-added sectors like Business Process Outsourcing (BPO), Information Technology (IT), construction, accounting, and healthcare through attractive fiscal and non-fiscal incentives.
The bill directly addresses investor concerns and is aligned with current global developments.
The Finance Chief said the CREATE MORE will fast-track the entry of more foreign investors into the Philippines as evidenced by the bullish and strong interest shown by nearly a thousand investors who attended the recent Philippine Economic Briefings (PEB) in the US, Japan, and London.
Other reforms underway are the proposed reduction of the tax on stock transactions to 0.1%; the amendments to the charters of the Land Bank of the Philippines (LBP) and the Development Bank of the Philippines (DBP) to tap into private capital and publicly offer a portion of their shares; the amendments to the Right of Way Act; and the creation of the Department of Water Resources, among others.
“[T]he list of transformative reforms in motion is very extensive—from liberalizing key economic sectors, enhancing our capital market, and modernizing water resources development, to establishing green lanes. I say extensive because these are reflective of the voices from different sectors. We all heard you loud and clear,” he said.
Secretary Recto stressed that the Marcos, Jr. administration is fully committed to doing everything in its power to help businesses succeed so that they can help the nation prosper.
“We are doing all of these to achieve our ultimate goal: to lift 8 million more Filipinos out of the poverty line by 2028. This is the be-all and end-all of our efforts. Because this is the true measure that will define our inclusive growth, economic and national security, and shared prosperity,” he said.
