THE leadership of the House of Representatives assured foreign investors and multilateral lenders that the Philippine Congress will continue to pass measures to sustain the country’s robust economic performance.
Speaker Martin Romualdez made a statement following the presentation of President Ferdinand R. Marcos Jr.’s economic team on the state of the Philippine economy before foreign investors and multilateral lenders in the US.
Romualdez also urged foreign investors to stay the course with the Philippines and share the benefits of progress and development.
The Speaker welcomed as good news the “encouraging remarks” made by Standard Chartered Bank Global Head of Public Sector and Development Organizations Karby Leggett; World Bank Country Director for Philippines, Malaysia, Thailand, and Brunei Ndiamé Diop; and International Monetary Fund (IMF) Deputy Director, Asia, and Pacific Department Sanjaya Panth during the Philippine economic team’s presentation, led by Finance Secretary Benjamin Diokno.
“We are committed to passing more measures that the Marcos administration may need to further enhance investment in the Philippines aimed at improving the lives of Filipinos,” Romualdez said.
During the briefing at Fairmont in Washington, D.C. Wednesday (United States time), Standard Chartered Bank, WB, and IMF officials cited the continued strong and resilient Philippine economy despite global challenges, including the Covid-19 pandemic and inflation.
Romualdez said the event was part of the Marcos administration’s whole-of-government approach to attracting more foreign investments that create more income and job opportunities for Filipinos.
“I commend members of the economic team for this briefing. The United States is a major source of investments and funding assistance. The World Bank and IMF are, likewise, principal development funders,” he said.
He lauded the World Bank and IMF and several big multinational banks for helping organize the conference, the second held in Washington, D.C. and the third in the US.
Other Philippine officials led by Ambassador to the US Jose Manuel Romualdez attended the event.
Members of the economic team who briefed the multilateral agencies, banks and prospective investors were Diokno, Bangko Sentral ng Pilipinas (BSP) Gov. Felipe M. Medalla, Budget Secretary Amenah Pangandaman, and National Economic and Development Authority Director General Arsenio Balisacan.
Diokno said the 2022-2028 Medium Term Fiscal Framework, which Congress passed shortly after it convened in July last year, “serves as a compass to steer the economy closely along the path of fiscal sustainability and economic growth.”
“The targets and measures under this framework are firmly supported not only by the President but also by both houses of Congress,” he said.
He also cited economic liberalization measures Congress recently approved to attract more foreign investments: the amended Public Service Act, Foreign Investments Act, and Retail Trade Liberalization Act.
Last year, Diokno said, the economy posted “a 46-year record-high growth rate of 7.6 percent.”
“This was higher than our full-year target of 6.5 percent to 7.5 percent, and exceeded forecasts of local private sector analysts and international financial institutions, placing the Philippines among the best-performing economies in the Asia-Pacific region,” he said.
He said the growth target this year is 6 percent to 7 percent.
“And while slightly lower in recognition of the expected global slowdown, this target remains high but doable,” he added.
The government’s fiscal performance remains strong, with 2022 revenue collections reaching P3.5 trillion or about US65 billion, 18 percent higher than the 2021 level, Diokno pointed out.
Pangandaman stressed that the government’s priorities and expenditures are aligned with the medium-term development plan and the 8-point socioeconomic agenda of President Marcos Jr.
She said the bulk of the budget—roughly 38.1 percent—has been allotted to the social services sector “to ensure revitalized education, quality health care, and strengthened social protection.”
A sizable part was also allocated for physical, social, and digital infrastructure.
“Here’s the good news: as of last month, the national government has identified 194 high-impact and urgently-needed infrastructure flagship projects. These will be given top priority during the annual preparation of our government’s budget,” she said.
She added that physical infrastructure spending is “aimed at improving physical connectivity throughout the country through the construction of accessible road networks, railways, buildings, and flood control infrastructure, among others.”
Pangandaman cited school buildings, hospitals, health centers, water supply systems, and housing facilities among the social infrastructure projects.
For social infrastructure, P24.13 billion or US434.3 million has been set aside “to accelerate the country’s digital transformation.”
Balisacan said the government aims to sustain its annual infrastructure spending at 5 percent to 6 percent of gross domestic product from 2023 through 2028, or between $20 billion and $40 billion a year.
He said a total of 3,770 infrastructure projects with a funding requirement of US317.5 billion had been identified, to be financed through both local resources and investments and assistance from the private sector and development partners.
