Finance Secretary Benjamin Diokno said that the private sector is welcome to invest in infrastructure development and other industries, as he reassured the public that the country has the enabling business environment and ample fiscal space for key projects.
“[W]e will just provide the environment for the private sector to thrive, and, of course, they are welcome to invest in the country whose growth rate potential is one of the highest in the region,” said Secretary Diokno on Tuesday at the General Economy panel of the post-State of the Nation Address (SONA) Philippine Economic Briefing (PEB).
The PEB is a high-level event, where members of the Cabinet, including Vice President and Education Secretary Sara Duterte, fleshed out the economic priorities mentioned in the first SONA of President Ferdinand “Bongbong” Marcos, Jr.
President Marcos, Jr. said in his SONA that infrastructure development will remain a top priority of his administration to drive employment, agriculture, tourism, and overall economic growth.
The President said that he will build on and expand the infrastructure program of the Duterte administration.
Secretary Diokno is optimistic that, with the potential of the economy to grow rapidly in the near and medium terms, the government can fund the Marcos administration’s infrastructure program and sustain infrastructure spending at 5 to 6 percent of the gross domestic product (GDP).
“[W]e feel that this is our moment. The Philippine economy can move much faster this time. And so a stronger economy means more revenues down the road,” Secretary Diokno explained.
Secretary Diokno said that the structural reforms of the Duterte administration, including the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, reinforced the country’s solid macroeconomic fundamentals, enabling the country to withstand the harsh effects of the pandemic and chart a clear path to recovery.
“[T]he Duterte Administration left this government a sound tax system. It’s a better tax system than he inherited from the previous administration, and we will enhance the improved tax system. So that will give us more revenues,” Secretary Diokno added.
Secretary Diokno said that there are around 200 ready-to-implement infrastructure projects and that there are spaces for private sector participation up to the level of local governments.
In his SONA, President Marcos, Jr. also identified opportunities to develop the country’s rail transport system.
Meanwhile, the Department of Public Works and Highways (DPWH) released on its website a list of priority projects under PPP, which include several expressways across the country.
Secretary Diokno cited the approval of the amendments to the Public Service Act (PSA) as another game-changing reform that would encourage investors to come in and implement some of the projects under the Public-Private Partnership (PPP) arrangement.
“[T]he Public Service Act will open up private sector participation or international investment in telecommunication, toll roads, shipping, etc.,” said Secretary Diokno.
The Marcos administration plans to capitalize on the recently enacted economic liberalization laws, including the amendments to the Retail Trade Liberalization Act and Foreign Investments Act, to make the Philippines an investment destination.
President Marcos, Jr. also vowed to promote productivity-enhancing investments and support ecozones to bring in strategic industries, such as those engaged in high-tech manufacturing, health and medical care, and other emerging technologies. Such investments are also envisioned to facilitate economic expansion in areas outside of Metro Manila.
“As the President said yesterday [Monday], the state of the economy is sound. So, my advice to the private sector is trust your government. We’re behind you,” Secretary Diokno said.
###
