Finance Secretary Ralph G. Recto is upbeat on the Philippines’ bright economic outlook supported by a more open and liberalized investment policy landscape, which is part of the government’s growth-enhancing strategies aimed at lifting 14 million Filipinos out of poverty by 2028 and achieving inclusive growth.

“[O]ur growth-enhancing initiatives are meant not only to create an economy that is ready to compete with the rest of the world. These are designed to harness the talents of our young workforce and build a nation where every Filipino can thrive, secure decent jobs, and create better lives for themselves,” he said in his keynote speech at the Philippine Economic Briefing on May 27, 2024 at the Philippine International Convention Center (PICC).

With the theme, “PH On-the-Go: Fast-Tracking Economic Progress,” the 2024 PEB provided a platform for the government to present economic and investment updates to over 800 domestic business leaders as well as members of the diplomatic corps, academe, civil society groups, non-governmental organizations, and the media.

Among the growth-enhancing strategies spotlighted by Secretary Recto include keeping the Philippine economy growing at a higher rate by maintaining price stability, adhering to fiscal discipline, and promoting investments in productivity-enhancing sectors.

He said all of these will put the Philippines on course to becoming an upper-middle income status by 2025, lifting 14 million Filipinos out of poverty by 2028, and positioning the country as the 13th largest consumer market globally by 2030.

The Philippines is expected to become a trillion-dollar economy by 2033 and surpass France to become the 14th largest economy in the world by 2075.

Specifically on investments, the Finance Chief stressed that the current policy landscape for investments in the Philippines has never been more open as the government has been aggressively addressing bottlenecks to realize the USD 72.2 billion worth of investment pledges gathered from President Ferdinand R. Marcos, Jr.’s world engagements alone as of December 2023.

The new game-changing reforms in place are Administrative Order No. 23 which expedites the inspection of all imported commodities entering the Philippines through digital means; Executive Order No. 18 which constitutes Green Lanes for Strategic Investments; the Public-Private Partnership (PPP) Code; and the Ease of Paying Taxes (EOPT) Act.

Among the policy reform measures underway is the amendments to the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, which enhances fiscal and non-fiscal incentives and incentivizes investments in priority industries within the special economic and freeport zones.

Capitalizing on these reforms, Department of Trade and Industry (DTI) Secretary Alfredo E. Pascual said the government has been actively strengthening strategic economic partnerships with different countries, such as the trilateral partnership between the US, the Philippines, and Japan that facilitated the development of the Philippines’ Luzon Economic Corridor.

Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA) Secretary Frederick D. Go has outlined plans for the Luzon Economic Corridor, which will link Subic Bay, Clark, Manila, and Batangas through upgraded ports and railways. He said the government is actively seeking opportunities for businesses and industries to develop along this corridor, particularly in renewable energy, pharmaceuticals, and semiconductors.

Meanwhile, Department of Agriculture (DA) Undersecretary Asis G. Perez emphasized increased investments in the agriculture sector to improve productivity and enhance resilience to climate change, such as the use of more state-of-the-art technology and satellites to better predict weather patterns and improve readiness of farmers.

Department of Public Works and Highways (DPWH) Secretary Manuel M. Bonoan also barred the progress of the game-changing bridge investment projects connecting Luzon, Visayas, and Mindanao, including the Panguil Bay Bridge that will connect Misamis Occidental to Lanao del Norte; Bataan-Cavite Interlink Bridge; the Panay-Guimaras-Negros Link Bridge; and the Davao-Samal Bridge.

Meanwhile, Department of Transportation (DOTr) Secretary Jaime J. Bautista reported on the progress of the Ninoy Aquino International Airport (NAIA) PPP project, which he emphasized demonstrates the President’s strong support for private investments and underscores the government’s commitment to implementing PPPs.

To attract more investments in the energy sector, especially renewable energy, Department of Energy (DOE) Assistant Secretary Mario C. Marasigan emphasized the agency’s commitment to efficiently implement the Energy Virtual One-Stop Shop (EVOSS) and fast-track the certification of projects of national significance to expedite facilitation.

Department of Information and Communications Technology (DICT) Undersecretary Jeffrey Ian C. Dy highlighted the agency’s initiatives to enhance connectivity access and reduce costs through collaboration with the Private Sector Advisory Council (PSAC) in establishing policies on shared infrastructure, particularly in fiber optic cables.

Meanwhile, the economic team comprised of Secretary Recto, Department of Budget and Management (DBM) Secretary Amenah F. Pangandaman, and National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan, joined by Bangko Sentral ng Pilipinas (BSP) Senior Assistant Governor Iluminada T. Sicat was also in full force in assuring the public that the government is proactively managing inflation and on track to achieving growth and fiscal targets.

Specifically, Secretary Recto assured domestic investors that inflation remains manageable despite external challenges, citing the International Monetary Fund (IMF)’s forecast of Philippine inflation settling at 3.6% this year.

This is well within the government’s target of 2% to 4%, and notably lower than the global average of 5.9% and that of developing economies at 8.3%.

The government is also on course to meet its total revenue collection target of PHP 4.3 trillion as the government has already collected a total of PHP 1.5 trillion as of the end of April.

The Department of Finance (DOF) is focusing on growing tax revenues further by plugging tax leaks and improving tax administration, especially in the e-commerce market, through digitalization.

It has also strategically tapped into non-tax revenue streams to generate additional funds without imposing new or increased taxes on our people.