Aquino bats for foreign investment in PH at Burma forum
President Aquino. FILE PHOTO
NAYPYITAW, Burma—Now is the perfect time to come and invest in the Philippines, with the recipe for sustained inclusive growth that benefits investors and public alike practically in place, President Benigno Aquino said here on Friday.
Speaking at a luncheon meeting hosted by Ayala Corp. for 300 CEOs and foreign businessmen at the 22nd World Economic Forum (WEF) on East Asia at Myanmar International Convention Center here, the President cited the following “come-ons” for investors: political stability, low inflation and low borrowing rates, opportunities for growth in almost all sectors, a government committed to integrity and empowerment, and the renowned Filipino hospitality.
“All that is left is for us to engage each other and work together, and this is precisely why we are here today,” he said.
Aquino arrived here before noon Friday for the closing plenary of the three-day WEF East Asia and for separate meetings with President Thein Sein and opposition leader Aung San Suu Kyi.
He was also set to have a brief meeting with Klaus Schwab, founder and chair of the WEF, the Swiss-based nonprofit which brings together top world business, political and economic leaders as well as selected intellectuals and academics in its annual and regional meetings to discuss pressing issues facing the world.
This year’s WEF East Asia, which is being held in the new capital of Burma (also called Myanmar), focuses on themes of regional transformation, highlighting the opportunities and challenges for Burma as it opens up to the world after decades of isolation and its neighbors in the Association of Southeast Asian Nations, including the Philippines, as they prepare for integration into a single market in 2015.
The Philippines will be hosting the next WEF East Asia in 2014 and Mr. Aquino’s participation in this year’s meetings and the message of economic and political progress in his country that he brought are part of the preparations for next year’s event.
The Philippines’ takeover as successor host of the forum was formally announced by Schwab at the close of the three-day conference here yesterday.
Mr. Aquino said the dialogues on development that each participating economy must join were long and complex but that the Philippines was grateful for the opportunity to showcase what it can offer to the world in the 23rd WEF East Asia.
He said the WEF was as good an environment as any to come together and flesh out solutions to the challenges that confront the world today.
“We are hopeful that we can match the standards set by Myanmar and duplicate their success,” he told Schwab.
Ricky Carandang, the presidential communications development and strategic planning secretary, said that owing to logistics and accessibility, Manila would be the top choice and the most prepared venue for the holding of the WEF forum in the Philippines.
The President cited agriculture and tourism as two priority sectors for investment because they create jobs, complement existing livelihoods and ignite rural development.
Lack of infrastructure and support to farmers, among others, hampered the growth of the agriculture sector in the past, he said. To remedy this, the government went back to basics, improving irrigation systems and constructing and rehabilitating farm-to-market roads, he said.
Mr. Aquino said Philippine tourism was also in high demand, with 4.3-million tourist arrivals reported in 2012 and possibly 10-million target arrivals in 2016.
“Whatever it is that you may be looking for—business opportunities in the sectors I have mentioned, or in manufacturing, shipbuilding, and information technology and business process management, a secluded and beautiful beach in Palawan, or the most lively street dancing in any of our festivals—I am certain that you will find it in our country, and find it more fun at that,” he said.
In his speech, Mr. Aquino thanked the WEF for paving the way for greater economic and political inclusiveness and for inspiring other countries to pursue and institute meaningful social reforms.
He recalled that when he assumed the presidency three years ago, he was faced with the enormous task of uprooting a long-entrenched culture of corruption and impunity in government.
In his first week in office, he said, the government uncovered new and bigger problems that seemed to have been, in large part and for the longest time, ignored.
“But we did not allow ourselves to be daunted. The Filipino people had elected us into office for a reason, and so we rolled up our sleeves and went straight to work,” he said.
He said he set about reforming the procurement and budgeting processes by taking funding away from programs that did not work and pouring resources into those that would benefit the people the most, from social services to health and education, to key reforms and infrastructure development.
All this was done while adhering to strict standards of accountability and transparency, the same standards that led to improvements in revenue-collection mechanisms, he said.
He said the Bureau of Internal Revenue collections grew by 28 percent, without even having to raise taxes.
His government’s reform agenda, according to the President, was guided by the belief that “corruption breeds waste.”
Today, good governance has created a climate of confidence in the Philippines, Mr. Aquino said. The stock market has soared and analysts the world over have given different names to Philippine economic success, he said.
“I have heard our country called a hot spot, Asia’s Rising Tiger, or the brightest spark in Southeast Asia, just to name a few. These accolades are not unwarranted,” he said.
For the first time in history, he said, the Philippines has been rated investment-grade by two international credit-rating agencies which cited the robust growth as well as the low and stable inflation rate in the country.
He said the economy has consistently surpassed all expectations so far: full-year growth for 2012 was at 6.8 percent—higher than the government’s growth assumption of 6 percent—while in the first quarter of 2013, it expanded by 7.8 percent.
The first-quarter growth was the result of the expansion of all major sectors: agriculture expanded 3.3 percent; services, by 7.0 percent; and industry, by 10.9 percent, the President said.
The key drivers of industry were manufacturing, which grew by 9.7 percent, and construction, which grew by 32.5 percent, he said.
Manufacturing increased despite an 8.4-percent decline in exports, and this implies large domestic demand—large enough to offset lowered international demand, Mr. Aquino said.
In infrastructure, the President said the government has increased its budget from $4.86 billion in 2012 to $5.94 billion in 2013. This more than $1billion increase will go towards paving all unpaved sections of thenational road network, and developing airports and other transport hubs in the country, he said.
He cited the government’s engagement with the private sector in accelerating infrastructure development—from the construction of classrooms, and the rehabilitation and operation.
He said his government has taken steps to secure the country’s future, with key legislation on responsible parenthood and sin taxes have been enacted, even as a framework peace agreement was signed between the government and the main Muslim insurgency, paving the way for a final, enduring peace in Mindanao.
Finally, the victory of administration candidates in the May 2013 elections was an affirmation of the mandate that he won in 2010 and a vote for continuity, the President said.
“If the public continues to share my vision for the country, as they have done in the past years, then anyone who aspires to succeed me would do well to continue down the path we have taken—and continue the tradition of good governance and public service, as well as the reform agenda that has brought the country so much success,” he said.
