PHL can ride on government 10-point economic agenda to hit 10% GDP growth–British Envoy

by Recto Mercene | September 28, 2016

Despite all the noise being made about the Philippines losing its hard-earned economic edge because of President Duterte’s “unpredictability,” a European envoy on Tuesday said he sees the country potentially registering a 10-percent growth this year.

British Ambassador to the Philippines Asif Ahmad said: “If all the right things happen, I see the economic growth here actually in double digits.” Asked if he means a 10-percent GDP (gross domestic product) growth, Ahmad replied: “Genuinely possible here.”

“You’re touching on a 10-percent growth potential. Now, anybody would say that is superlative, if you can really get that, [but] this is a society that has a lot of investment to do, just imagine you built on Ofw [overseas Filipino worker] remittances, the consumer society here, boosting on real investment infrastructure, and essentials, that in itself will add 2 percent to 3 percent to growth,” said Ahmad, who was guest during China’s 67th National Day celebration at the Shangri-La Bonifacio Global City.

“I’ve met almost everyone now who is in government. The one thing I endorse 100 percent is the 10-point economic agenda. And if you focus on that, that’s the story of the Philippines,” he said.

President Duterte’s economic team presented the 10-point socio-economic agenda during a business forum in Davao City in June. The points presented were to continue and maintain current macroeconomic policies, including fiscal, monetary, and trade policies. Institute progressive tax reform and more effective tax collection, indexing taxes to inflation; increase competitiveness and the ease of doing business; accelerate annual infrastructure spending to account for 5 percent of GDP, with public-private partnerships playing a key role; promote rural and value-chain development toward increasing agricultural and rural enterprise productivity and rural tourism; ensure security of land tenure to encourage investments, and address bottlenecks in land management and titling agencies; invest in human capital development, including health and education systems, and match skills and training; promote science, technology, and the creative arts to enhance innovation and creative capacity;

Improve social-protection programs, including the government’s Conditional Cash Transfer Program; Strengthen implementation of the responsible parenthood and reproductive-health law.

Finance Secretary Carlos G. Dominguez III said although the economy grew under the administration of President Benigno Aquino III, the policies of the previous administration failed to address poverty in the country.

Ahmad believes the fundamental drivers “are there”, and it means a few core decisions to hurry up the economic charter changes, “which requires the liberalization that has been promised to go ahead.”

At the same time, the UK envoy believes that the media reports, here and abroad, about extrajudicial killings and Mr. Duterte’s uncalled-for remarks about the United Nations and the United States are but distractions. “The next 100 days is only that. It’s all political rather than substantive, the new administration is adjusting, the new Cabinet secretaries are getting used to their portfolio,” he added.

To give substance to his positive outlook about the country, Ahmad said a big manufacturing investment is coming from the UK “but the company won’t allow me to say the date it will open.”

“It’s very high-end, you know any country, if they invest in a neighborhood, they create 12,000 jobs. The reason why I always keep talking short is that the company is not quite ready, but when it comes, you know, you’ll recognize it.”

Asked to elaborate on how the country should stick to its 10-point agenda, Ahmad said: “It requires using the credit ratings and ceilings that the Philippines has to raise per capita to just unlock the jam that the last administration did a lot of things to correct, where they had a real difficulty to get the money released.”

He said he talked with Transportation Secretary Arthur P. Tugade and told him to “ram through the good projects and let things to happen.”

Source: www.businessmirror.com.ph