Reforms, infra buildup to boost PH image as investment haven

A combination of tough bureaucratic and economic reforms, a longdue tax system overhaul and an unprecedented infrastructure buildup is guaranteed to enhance the country’s image as an investment haven at a time when advanced industrial economies are adjusting to their aging populations, according to Finance Secretary Carlos Dominguez III.

With President Duterte’s firm leadership and strong political will to push reforms to grow an inclusive economy, Dominguez told a gathering of economists there is “reason to be optimistic” that the government has what it takes to capitalize on the country’s “demographic dividend” in having among Asia’s youngest-and skilled--workforces.

Under the President’s leadership, he said the government is dramatically raising investments not only in infrastructure to sharpen the country’s global competitiveness, but also in education and skills training to spell jobs for millions of young Filipinos and thus avoid shutting them out of a domestic economy that is targeted to expand about 7 percent into the medium term.

“Achieving our goals requires firm leadership and the political will to see through the reforms. We are fortunate to have that in abundance,” said Dominguez in a speech read for him by Finance Undersecretary Gil Beltran at a recent forum.

“Because of that, there is reason to be optimistic about our economy’s sustained performance. The targets will be met; the goals will be achieved,” Dominguez added.

Led by its current president, Jose Camacho Jr., the PES gathers the Philippines’ best economic

minds and aims to improve the standards of economic research and instruction in the country.

Dominguez said achieving a truly inclusive economy with a strong manufacturing base that would provide meaningful jobs for Filipinos is “not unreachable goal” but an “eminently achievable outcome of doing the practical things we need to do.”

In this practical to-do list is ensuring quality governance through a series of bureaucratic reforms that aim to curb corruption and adjustments in the economic policies, Dominguez said.

“Corruption and poor governance are a heavy lag on our growth. They create costs where there should be none. They penalize our consumers. They result in substandard public works. They create inefficiencies everywhere. If we want our economy to be competitive, we should reduce corruption by reinventing administrative processes. We need to build a world-class bureaucracy,” Dominguez said.

Along with such reforms, Dominguez said the Duterte administration is also pushing a comprehensive tax reform program that would make the current system fairer, simpler and more efficient so that the government can broaden the tax base and guarantee ad “robust and reliable” flow of revenues for its public investment program.

Tax reform in turn, will support the government’s massive “Build, Build, Build” infrastructure program that would provide the country the base for a “dynamic and competitive economy.”

“Combined with bureaucratic reforms and adjustments in our economic policy, tax reform and the infra program should enhance our investment attractiveness at about the time the advanced industrial economies adjust to their aging populations,” Dominguez said. (For full story visit www.sunstar.com.ph/davao/)