MANILA, Philippines - The Philippines is enhancing the ease of doing business through the streamlining of processes and strengthening of the integrity of public institutions, Socioeconomic Planning Secretary Ernesto Pernia told the business community in Singapore during the recent Philippine Economic Briefing.
“We are enhancing the ease of doing business by streamlining processes in line agencies. We are strengthening integrity of our public institutions, such as through freedom of information beginning with the executive branch, and other anti-corruption initiatives,” he said in a statement.
He added the government is now approving infrastructure projects at a faster rate in keeping with its goal to usher in the so-called golden age of infrastructure in the country.
“The government is now much faster in approving big-ticket infrastructure projects, having rationalized certain procedures. All of these result in an environment that is more welcoming to business,” said Pernia, noting the bulk of infrastructure projects in the pipeline are aimed at decongesting urban areas and attracting more investments in the provinces.
In his presentation, Pernia said the country is on track to meeting the growth target range of 6.5 to 7.5 percent this year.
In the medium term, the economy will be driven by strong consumer confidence, stable inflation, increased government spending, increased public and private investment and growth in exports.
Rice prices are also expected to be lowered through the liberalization of rice trade. Purchasing power of consumers are also expected to get a boost with the passage of the first package of the tax reform which provides for the lowering of income tax and identifies offsetting measures.
This demand is expected to be met by robust construction activity, resurgence of the manufacturing sector, bright prospects in the tourism sector and, increased wholesale and retail trade.
Pernia said the country is also well-positioned against downside risks to growth, both internal and external.
External risks include the slower than expected growth in the US and UK inward looking policies and extended period of policy uncertainties and geopolitical tensions in Qatar and North Korea.
Internal risks include the increased frequency and intensity of natural hazards, delays in infrastructure and reconstruction projects, logistics bottlenecks, political noise, policy differences in subsidies, growing number of Filipinos of reproductive age and political noise.
In an interview on CNBC, Pernia said the economy likely grew stronger in the second quarter from 6.4 percent in the first quarter on the back of the stronger performance of exports and the agriculture sector.
“We have seen exports improving, agriculture also, and government spending is going to be a boost in the second quarter,” he said.