Aquino: Philippines ‘more open for business’

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Aquino: Philippines ‘more open for business’
In his 5th SONA, the President urges his ‘bosses’ – the Filipino people – to choose a successor who will continue the economic reforms of his administration

MANILA, Philippines – Most of President Benigno Aquino III’s 5th State of the Nation Address (SONA) on Monday, July 28, covered his administration’s economic achievements to date.

Stressing the government’s thrust of investing in the Filipino people, Aquino said the country’s poverty incidence decreased to 24.9% in the first half of 2013 versus 27.9% in the same period of the previous year.

The 3 percentage points decrease was equivalent to about 2.5 million Filipinos who hurdled the poverty line, Aquino said.

“We are not stopping with what we have achieved. We are continuing our efforts to ensure that those who hurdled the poverty line would not return to their previous state anymore,” Aquino said in Filipino.

The President also cited the economy’s resurgence through prudent fiscal management, and better services rendered to the people without any hike in taxes, except for the Sin Tax Reform Law.

Tax collection was also intensified, shoring up government revenues to P1.536 trillion ($35.42 million*) in 2013 from P1.094 trillion ($25.22 billion) in 2010.

Citing judicious debt management, Aquino said the government was able to reduce the country’s debt to Gross Domestic Product (GDP) ratio, allowing the allocation of more funds for social services.

Obligations that were inherited from previous administrations have also been cleared, the President noted.

The P50-billion ($1.15 billion) recapitalization of the Bangko Sentral ng Pilipinas is now fully paid. The recapitalization was implemented in 1993, but the administration of former President Fidel Ramos only settled P10 billion ($230.58 million).

“We cannot bear to squander whatever funds we have now that we worked hard for,” Aquino said.

He boasted of the 7 public-private partnership projects (PPPs) his administration awarded, versus the 6 solicited PPPs implemented by the previous 3 administrations. (READ: Aquino: More infra projects awarded than past 3 admins)

Investment grade

The President also said that during his administration, the government won investment grade status from international credit ratings agencies Fitch, Moody’s, and Standard and Poor’s (S&P). The rating upgrades were a vote of confidence in the country’s macroeconomic fundamentals.

“S&P recently gave the country another upgrade, boosting our credit worthiness, attracting more investors, and in effect, hastening the benefits deserved by the Filipinos,” Aquino said.

The aviation industry also finally started to take off as the International Civil Aviation Organization cleared the Philippines of significant safety concerns. Also last year, the United States Federal Aviation Administration upgraded the country’s aviation status back to Category 1, allowing local airlines to launch more routes and flights to the world’s largest economy. The European Union also lifted its ban on Philippine Airlines and Cebu Pacific.

With the joint efforts of the Civil Aviation Authority of the Philippines and local carriers, the country should expect more investors and tourists in the coming years, Aquino added.

Ready for the world

The country was also at the center stage as it hosted in May the World Economic Forum on East Asia. In 2015, the country will host the Asia Economic Cooperation Summit.

“There is no doubt: the Philippines is indeed more open for business,” Aquino said.

At the end of his SONA, Aquino reminded his “bosses” – the Filipino people – to choose a successor who would continue the reforms his administration started.

“One basis for choosing my successor: Who will, without a shred of doubt, continue the transformation we are achieving?”  – With a report from Lynda C. Corpuz/Rappler.com

 

 

 

Follow Rappler’s live coverage of the 5th State of the Nation Address of President Benigno Aquino III through our #SONA2014 microsite. Tell the President how you feel about his 5th SONA by voting on Rappler’s SONA 2014 Mood Meter.

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*(41 = P43.37)

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