Sustained reforms urged (Progress noted by ADB chief)

as a very important place to invest. The government should continue fighting corruption and also continue providing the needed infrastructure,” Mr. Nakao told BusinessWorld on Tuesday.

“These issues emerged because of the government’s stronger resolve to combat corruption. They are addressing these issues, and they are having progress,” he added.

President Benigno S. C. Aquino III was overwhelmingly elected into power in 2010, running on a platform of good governance as a strategy to reduce poverty. His Liberal Party’s strong showing in the national and local elections in May was widely seen as a reaffirmation of Mr. Aquino’s mandate.

The President’s popularity has been key to the country’s spell of political stability, observers have said, having allowed for tough reforms such as higher “sin” taxes, a reproductive health law and even public- private partnerships for infrastructure development.

Mr. Aquino’s administration, however, has in recent months been hit by accusations of corruption in its spending programs and lately by reports of inefficiency in the aftermath of super typhoon Yolanda.

Mr. Nakao urged the government not to falter, especially with the Philippines already on the right track. He lauded the harnessing of a “diligent, educated” work force, as well the achievement of “very high growth rates.”

“Our projection for the Philippines this year is 7% ... It is going very well,” he said.

The economy expanded by 7.4% as of September, beating the government’s full-year target of 6-7%.

“I think the Philippines has a lot of potential. If the right policies are passed, especially for governance and infrastructure, the Philippines can attract more investments to both industry and service sector,” Mr. Nakao said.

This is all the more important as the country has been reliant on its service sector, he said. “But if you can promote industry, it can help boost growth and make it more inclusive. I hope the Philippines can pursue this growth path going forward,” Mr. Nakao noted.

The ADB chief also warned that reforms should be sustained beyond 2016, when Mr. Aquino steps down.

“In any democratic country, that is always a challenge. But good policies should be carried on by good successors,” he said.

“I hope the Philippines can continue to push the right policies regardless of who will replace the current administration.”