Finance Secretary Benjamin Diokno announced to investors the full-year gross domestic product (GDP) growth of 7.6 percent––the highest the Philippines has seen in almost half a century during the Philippine Economic Briefing (PEB) at the UBS Auditorium, London, United Kingdom on January 26, 2023.
“Just a few hours ago, we announced the Philippines’ fourth quarter and full-year GDP growth for 2022, and I am proud to announce that we beat our own target. Our stellar performance reflected strong domestic demand driven by household consumption and investments,” he said.
The PEB was attended by about 150 foreign direct investors, fixed income investors, equities market investors, and infrastructure players.
Alistair White, Deputy Ambassador to the British Embassy in Manila regarded the Philippines’ 7.6 percent whole-year growth as a phenomenal indicator of the country’s trajectory.
“[W]e’re here to do all we can as a British government to support the fine work we’ve heard this morning. And this is an important moment in UK-Philippines relationship,” he said.
According to Deputy Ambassador White, the bilateral trade between the two countries have returned to pre-pandemic levels, which is about £2.1 billion.
The Philippines has been identified as a priority country for British investment partnerships, and with that, the UK government will be one of the first partners to work on the Philippines’ New Clark City for a sustainable and inclusive design. Together with the Bases Conversion and Development Authority (BCDA), they will explore partnerships on how to make the city into a mega metropolis.
Meanwhile, Honorable Richard Graham, Member of Parliament for Gloucester and Prime Minister’s Trade Envoy of the UK Department for International Trade highlighted the high level of trust between the Philippines and the UK when it comes to investment and trade.
MP Graham also shared the partnerships that the UK plans to enhance through the UK-Philippine Economic Dialogue. Some of the sectors under discussion include renewable energy, science and research, and trade and policy.
He cited the recent partnership between British multinational alcoholic beverage company Diageo and Philippine rum company Don Papa, which he estimates to be about a £65 million investment, as well as the partnership between British automotive company Inchcape and Philippine luxury vehicle distributor CATS Motors, Inc.
Conversely, Richard Graham cited a Philippine investment in the UK with Emperador Inc.’s acquisition of Whyte & Mackay, a producer of alcoholic beverages based in Glasgow, Scotland.
Now that the country has enacted structural reforms that remove barriers to foreign investments, the Philippines is looking to secure investments in the fields of telecommunications, airports, toll roads, agribusiness, renewable energy, and shipping.
All these will be made possible through economic liberalization measures such as the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act; the amendments to the Retail Trade Liberalization Act (RTLA), Foreign Investments Act (FIA), Public Service Act (PSA); and the implementing rules and regulations (IRR) of the Build-Operate-Transfer (BOT) law.
The Philippines has also opened up its renewable energy sector to full foreign ownership, particularly in the exploration, development, and utilization of solar, wind, hydro, and tidal energy.
“[T]he Marcos Jr. administration is determined to zoom forward and take the Philippine economy further than it has ever been. Our goal of inclusive, sustained, and shared prosperity calls for a more ambitious instrument for investments,” said Secretary Diokno in reference to the Maharlika Investment Fund (MIF).
The MIF will be the Philippines’ first-ever sovereign wealth fund that will support the government’s economic and social transformation strategies to reinvigorate job creation and accelerate poverty reduction through inclusive economic growth.
With the future generations in mind, Secretary Diokno said that the Fund will be used to generate consistent and stable investment returns in order to build a more prosperous economy.
On monetary concerns, Bangko Sentral ng Pilipinas (BSP) Governor Felipe Medalla talked about three important pillars, which are price stability, financial stability, an efficient and safe payments and settlements system.
According to Governor Medalla, the payments system is rapidly becoming digital, especially with the rise of InstaPay, which is now approaching the same volume as ATM machines.
On the budget side, Secretary Amenah Pangandaman revealed Education to be the top priority. Apart from this, the country’s spending priorities include Climate change adaptation and mitigation, Energy, Health, Social protection, Agriculture, and Transportation.
National Economic and Development Authority (NEDA) Undersecretary Rosemarie Edillon briefed investors on how the government will ensure fiscal discipline, accelerate poverty reduction, and bring down poverty incidence to single digit by 2028.
Through the PDP, the government will transform the production sectors by modernizing agriculture to make it more productive, thereby ensuring food security. The same goes for the services, tourism, and Information Technology and Business Process Management (IT-BPM) sectors.
She also emphasized the need to transform institutions, modernize bureaucracy, and strengthen the country’s disaster resilience.
The PEB in London is organized in partnership with the Bank of America Securities, British Embassy Manila, Deutsche Bank, Philippine Trade and Investment Center in London, Philippine Embassy London, Goldman Sachs, HSBC, Morgan Stanley, Standard Chartered Bank, UBS, and UK-ASEAN Business Council.
