Cebu Chamber of Commerce and Industry
April 19, 2018
(Pleasantries)
CCCI President Consul Antonio Chiu; the officers and trustees of the CCCI; the past presidents of CCCI; fellow workers in government; friends in media:
On behalf of the Secretary of Finance, it is both an honor and pleasure for this opportunity to speak to you today, the movers and shakers of Cebu.
There was a time, not too long ago, when Cebu’s economy was growing spectacularly while the rest of the country stagnated. The province’s excellent craftsmen and gritty entrepreneurs defied the odds. Because of that, the province earned the nickname “Ceboom.”
Such was the contrast between Cebu and the rest of the country that the province’s tourism campaign tried to dissociate itself, describing an “island in the Pacific” away from the chaos that afflicted the other areas.
Today is a different time. The entire national economy has collected itself, posting high and inclusive growth, and we have put things in better order.
Today, the country is one of the fastest growing Asian economies. We have improved on the ease of doing business, and we look forward to heftier investment inflows. Beyond that, we are seeking to transform towards investments-led growth. This will ensure more inclusive economic development for our people.
There are two key programs that will drive our exemplary economic growth in the immediate term.
The first program is the comprehensive tax reform. This seeks to make our tax system simpler, fairer and more efficient. It will improve public revenues while helping make our economy more competitive. Since the first package of reforms was passed late last year, we have seen significant improvement in revenue flows even as we assured lower personal income tax rate to benefit our wage earners.
I’m glad to announce that based on the reports of the BIR, they are ahead of their targets. And on a year-on-year basis, we’re actually doing much better.
The second package, which will bring down corporate income tax rates closer to the region’s average, we expect to pass later this year. Along with this, we seek to reform the incentives system to create greater transparency and ensure a level playing field for businesses to flourish in.
The second program is the ambitious Build, Build, Build infrastructure program. This is highlighted by 75 strategic big-ticket infrastructure projects that will develop growth corridors and help our economy’s competitiveness. Complemented by an extensive road building program undertaken by the Department of Public Works and Highways (DPWH), this infrastructure program will bring all areas of the archipelago into the growth mainstream. Because investments in infrastructure have the highest multiplier effects, this program will provide a strong stimulus to sustain a high growth regime. We anticipate that the sustained growth of 7 percent or better will enable us to bring down poverty rates in the country to only 14 percent by 2022.
Our investment-grade credit ratings and robust revenue flows create the fiscal space to support massive investments in infrastructure. Over and above our budgetary allotments, we are receiving strong support from our friends in the region in the form of grants and soft loans. Official development assistance (ODA) is the best it has ever been, and this allows us to employ hybrid public-private partnerships to hasten the infrastructure buildup and lower costs.
Twenty-three (23) of the flagship infrastructure projects have passed the approvals process and are ready for execution. We expect the rest of the projects to clear the approvals process this year, and we aspire to complete the majority of these projects before President Duterte’s term ends in 2022.
Cebu stands to benefit from the Build, Build, Build program. This year, supported by Korean ODA, we begin construction of the New Cebu International Container Port. We expect to complete this project by 2020.
We will also build a number of large bridges in Cebu. Among these projects to be submitted to the Investment Coordination Committee (ICC) is a monumental 24.5-kilometer Cebu to Bohol Link Bridge that will dramatically enhance connectivity between the two islands. Another project is the 5.5-kilometer Cebu to Negros Link Bridge. This will enhance again the movement of people and goods between two of our most productive islands.
We will likewise push hard for the new roads and the rapid bus transit system that will dramatically reduce congestion in the Queen City and its environs. These infrastructure investments are being made with the expectation that Cebu will continue playing a strong role as one of the reliable growth drivers of the national economy.
I trust that the members of the Cebu Chamber of Commerce and Industry will sustain the entrepreneurship that has brought so much development to this area. We have, as the Asian Development Bank (ADB) put it, entered the Golden Age of Growth.
The growth is certain. The challenge is to make it inclusive so that all of our communities benefit from the fruits of national prosperity.
Once again, I’d like to personally congratulate CCCI on its 150th anniversary. Congratulations as well to the newly-inducted directors and officers of CCCI. Thank you and more power to all of you.
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