Philippines: No. 1 for investment

Despite many positive developments that have been happening, there are still those who continue to peddle negative perceptions about the Philippines simply because they refuse to accept a new era in Philippine politics.

Even in the United States, there are certain individuals/groups that choose to focus on, and propagate, negative – at times exaggerated – news about the country and the president when in fact, there are a lot of uplifting accomplishments that have been happening. For instance, the Free Irrigation Service Act or Republic Act No. 10969 that was signed into law last February, which waives irrigation fees for farmers who own less than eight hectares of land.  In effect, government will be subsidizing the small farmers because the bill – which was a campaign promise of the president – will lower their production expenses.  

It is this “small people first” mindset of the president that is reflected in the administration’s policy of economic inclusivity where economic growth and expansion will trickle down and benefit more Filipinos, especially those in the most marginalized sectors. This is actually embodied in the administration’s development blueprint known as the Philippine Development Plan (PDP) 2017-2022 that has set a target GDP growth of 7-8 percent that would cut the national poverty incidence to 14 percent by 2022 (from 21.6 percent in 2015).

A key component of the PDP blueprint is the ambitious, $180-billion “Build, Build, Build” program with 75 flagship infrastructure projects aimed at attracting investors, creating jobs and spurring economic growth. As the Asian Development Bank has noted, the “Philippines is among the fastest growing economies in Southeast Asia, with upgrades to sovereign investment ratings confirming improvements in the country’s macroeconomic fundamentals. The government has defined its development objectives as driving rapid but inclusive economic growth, accelerating employment on a massive scale, and reducing poverty.”

Many were not surprised that the Philippines emerged as the “best country to invest in” for 2018 in the recent survey conducted by the American firm US News and World Report involving 6,000 “business decision makers” in 80 countries.

This encouraging development certainly confirms that the government is on the right track, with the Philippines poised to become an economic powerhouse in Asia.

In an article titled “4 Things Rodrigo Duterte Did to Make the Philippines the World’s Top Investment Destination,” Adam Garrie notes that “the series of mega-projects known as ‘Build, Build, Build’ have attracted positive attention from global investors… A country with modern infrastructure is simply more attractive than a country ill-equipped to handle the standards of modern commerce. Duterte has brought the country up to do in this way and it is already paying off.”  

Garrie also cited the president’s tough stance against corruption, and the tax reforms initiated by the government which are meant to “lift the burden of ordinary people and medium sized businesses,” proving that the president “has the wherewithal to transform the Philippines from a place that provides opportunities for some, into a place that is opportunity orientated for all.” Inclusivity, in other words.

“This kind of dynamic and reasonable tax reform is as attractive to foreigners as it is to Filipinos, as it shows that the country is one that sees government finance as something that can work with rather than against innovation, all the while increasing purchasing power and living standards,” Garrie wrote.

The administration in fact has assured prospective investors that critical and investment-friendly reforms are underway. The world is starting to notice the government’s efforts to create a more business- and investor-friendly environment, as seen in the move to liberalize the Foreign Investment Negative List (FINL) in order to open up more sectors to foreign investor participation.

During the recent business forum initiated by the US-Philippines Society, Finance Secretary Sonny Dominguez urged American investors to take part in the resurgence of the Philippines as an economic powerhouse, with the country continuing to “gather steam,” pointing to   increased investment flows, tax reform and massive investments in modernizing infrastructure as some of the reasons why the country will do even better.

Senator Loren Legarda, who is also the chair of the Senate Committee on Finance, expressed confidence that the economy of the Philippines will become even more robust. “We are gradually seeing the positive effect of the administration’s sound economic policies. I laud the efforts of both the public and private sector, especially the president and his economic team,” she said, reminding that more also needs to be done to sustain investment inflows that will bring in more jobs especially in the provinces.

This year alone, the government expects to create two million jobs as it aligns the massive infrastructure program with its job generation initiative through a transparency website that will not only inform the people about the status of projects but will also serve as a job-matching portal that will also benefit returning overseas Filipino workers.

Senator Legarda pointed out that last year, the Board of Investments (BOI) posted P617 billion in committed investments – an all-time-high – which prove the growing confidence of both local and foreign investors in the economy. Just like the president, Loren also wants to see that all these efforts to achieve economic growth will result in improved lives for Filipinos.

“We see a very promising future for our country… But all of these should be aimed not only at achieving impressive growth statistics but also, and more importantly, bringing the fruits of these investments to all Filipinos.”

I now hear more Filipino-Americans looking at investing in their home country today.

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