With great power comes great responsibility

Prior to the elections, many business organizations, as well as foreign chambers, provided their views and suggestions on the priorities the new administration should have. I think the negative outlook that international banks currently have are valid concerns as there are significant headwinds we are facing that may continue to affect us in the near term, and may have more economic implications rather than political. Weeks leading to the election and up to today, the Philippine capital markets have been moving sideways showing limited trading volume as investors, as seen also in past elections, remained on the sidelines. These concerns seem to have been amplified as details on the incoming administration’s economic team and other key appointees, as well as their economic plans, have yet to be disclosed.

My hope is that in the next few days, the Cabinet will be announced, and the new heads be given a chance to present their general plans to the public without waiting for the formal proclamation. I am sure the new administration has plans already, as both the current and incoming administration work towards a successful transition. As lawmakers, practitioners, and academicians continue to offer suggestions and voice concerns, the incoming administration should welcome them. In this regard, I would like to share my wishlist for the incoming administration.

First, the DOF Secretary choice should be a priority as the appointee will have to balance out the needs to raise revenues in order for us to continue our spending on infrastructure, health, education, agriculture and support for MSMEs. I believe we should continue with the Build Build Build program, and be open to undertaking more projects with the private sector under PPP. This is one way to raise revenues quickly and finance the necessary infrastructures while at the same time managing government debt. We just hope that the risks will be shared equitably between the private and public sectors.

The mining sector is also a possible way to raise government coffers. We hope the new DENR Secretary is open to mining as long as it is done responsibly with all the proper safeguards. I believe this industry can raise our GDP easily by an additional one percent and the revenues earned can, in turn, be put to good use.

DOF Secretary Sonny Dominguez has suggested that the incoming administration capitalize on what has been achieved. New laws have been passed with the aim of improving the business environment, encouraging more investments, lowering taxes, and leveling the playing field. Thus, the new administration will also have to create new revenue streams if it wants to provide fiscal support and to manage our debts. I believe the country’s current debt level is still manageable and these loans were obtained to support the economy during this pandemic.

Second, as of this writing, the presumptive vice president is poised to head the DepEd. We hope bold innovations can be done to make up for the lost years to make our youth competitive and ready for the real world.

Lastly, I hope that the new Energy Secretary finds ways to fastrack new power plants. Brownouts were averted during elections, but in the long-run we need new supply to ensure businesses and industries can grow. Our energy mix will also need to be revisited. While we should prioritize renewable energy and even revisit nuclear energy, there should also be plans on how we can transition from use of fossil fuels.

We pray that the new Cabinet embraces the challenges and ultimately do good for the country and our people. I have heard from friends weeks ago that the Marcos and Duterte camps have agreed to distribute the agencies where their respective appointees will best be able to serve. We hope that these men and women will have the necessary capabilities and will serve and place the interest of the country at the forefront. We also hope the incoming administration will also bridge the income divide and help the MSMEs, farmers, fishermen, and laborers.

The outside world may have preferred a different election outcome, but we must accept the will of the people. The local conglomerates are the best examples of how to survive as they have learned to live and generally prosper whoever the new president is. Even the US government has already signaled willingness to work with the incoming government.

During the campaign period, we witnessed the fervor and passion from our countrymen, with the hope that our country can prosper and I hope that such eagerness will continue. This can still be used to ensure we watch and comment on how the new government will work. I hope we can look instead at current events with optimism, and give positive and constructive criticism and praise as and when needed. While a lot of people still need to heal, I hope we can use this time as we await the formal proclamation for relationships among relatives, classmates, officemates and even neighbors to be mended so as to allow us to laugh and smile together once more, and stand in unity as one country.

While foreign media and investors may be more wary, we Filipinos have more at stake. Some may be considering migrating, but let us still help this country. We have many of our countrymen hoping for a better society and economy. Let us all help to get there.

As Peter Parker said, “With great power comes great responsibility.” The incoming administration is poised to have majority control of both Congress and the Senate, so it is really a great opportunity for them to make significant changes. As the BBM camp has announced, let us judge them for their actions.

I enjoin everyone to support them and help our new leaders succeed.

The author, Eduardo V. Francisco, is the president of BDO Capital & Investment Corp. and serves on the Board of Trustees of SharePHIL.

Learn more about investing and go farther in your personal finance journey by joining the SharePHIL mailing list at https://bit.ly/subscribe20210224.

Like and subscribe to SharePHIL on Facebook at fb.com/SharePHIL and YouTube at youtube.com/c/SharePHILonYT