Finance Secretary Benjamin Diokno briefed the Foreign Correspondents Association of the Philippines (FOCAP) on the country’s economic strategies for the next five years during the FOCAP Prospects for the Philippines Forum at the Makati Diamond Residences on March 20, 2023.
In his keynote speech, Secretary Diokno presented an overview of the government’s infrastructure plan, as embodied in the new Infrastructure Flagship Project (IFP) list approved by the National Economic and Development Authority (NEDA) Board on March 9, 2023.
“Most of these flagship projects are aimed at improving physical connectivity and water resources such as irrigation, water supply, and flood management. The list also includes projects on digital connectivity, health, energy, and agriculture infrastructure,” he said.
The list includes 194 high-impact IFPs, 95 of which are already underway.
Secretary Diokno cited the Philippines’ strong macroeconomic fundamentals, marked by its record-high full-year economic growth in 2022, low unemployment, and on-target fiscal performance, as a source of optimism for the country’s medium to long-term outlook.
He also mentioned that the Japan Credit Rating (JCR) Agency recently affirmed its ‘A-minus’ credit rating with a stable outlook for the Philippines, which reflects the country’s high and sustained economic growth performance underpinned by solid domestic demand.
Persistently high inflation, however, remains to be a top concern.
According to the Secretary, the Department of Finance (DOF) is working closely with the relevant agencies to construct a short- to medium-term framework to mitigate inflation by improving every stage of the supply chain.
The Marcos Jr. administration’s comprehensive 8-Point Socioeconomic Agenda tackles immediate on-the-ground concerns such as high inflation to the lingering effects of the pandemic. While for the medium term, the plan focuses on boosting job creation as a recovery strategy.
Secretary Diokno emphasized the need for not just more jobs, but quality and green jobs, which can be achieved through more investments in public infrastructure, human capital development, and digitalization that have high multiplier effects on the economy.
The Marcos Jr. administration’s vision for the country is detailed in the Philippine Development Plan (PDP) 2023-2028, which contains actionable strategies to reinvigorate job creation and accelerate poverty reduction through sustained and inclusive economic growth.
“[L]et us not lose sight of the end goal of all these investments, which is to reduce poverty and raise the standard of living for all Filipinos. This is the be-all and end-all of every plan, project, and effort,” Secretary Diokno emphasized.
To kickstart these massive development projects, the government will seek collaboration with the private sector through the Public Private Partnership (PPP) Act, enhanced by the revised implementing rules and regulations (IRR) of the Build-Operate-Transfer (BOT) Law.
Finally, the government continues to leverage its game-changing reforms, such as the amendments to the Public Service Act, Foreign Investments Act, and Retail Trade Liberalization Act to attract global partners, investors, and innovators.
“There is plenty of room for optimism. To our media partners, I am hopeful that you will tell the Philippine economic story, with both its struggles and achievements, with balance and fairness,” Secretary Diokno said in closing.
FOCAP was formed in 1974 to establish relations between the government and the members of the foreign press.
