Technocrats
The president-elect continues to surprise us, defying the caricatures his critics try to paint. Shortly after Congress, in the most anti-climactic fashion, proclaimed him winner of the lopsided presidential contest, he announced his economic team. It is very likely the best team anyone could hope for.
Bangko Sentral Governor Benjamin Diokno was named the next finance secretary. He is a most credible choice, having served government with excellence the past few decades. This includes two stints as budget secretary.
Felipe Medalla will replace Diokno as governor of the Bangko Sentral. In professional circles, Phillip is known as the economists’ economist. No one matches his insights in fiscal and monetary policymaking.
Arsenio Balisacan, chair of the Competition Commission entrusted with fighting monopolies, returns as head of the National Economic and Development Authority (NEDA). Arsi is the nation’s poverty reduction expert and an architect of our medium-term development plan.
I have known, and worked, with these brilliant men for decades. They are men of great technical expertise and probity. They share a profound insight into the policymaking process. With them in charge, we can be sure our economic policy will be the best possible.
Complementing the A-team of economic experts, are other truly credible technocrats.
Former UP president Alfredo Pascual will head the DTI. Currently serving as president of the Management Association of the Philippines (MAP), he is well respected in the business community.
Benny Laguesma is returning as secretary of labor and employment. He has the wisdom of many decades working for government. He correctly understands his role as one focused on creating employment opportunities for our people rather than performing as mouthpiece for the frequently petulant trade unions.
No one can raise any issue against the appointment of Susan “Toots” Ople, incoming secretary of the newly formed agency looking after the interests of our overseas workers. Shunting aside her health issues, she has taken on the challenge of serving our modern-day heroes. Looking after our workers is in her genes.
President-elect Marcos takes after his father in the most positive way. He gathers the best and the brightest to serve government in these challenged times. He collects around the policymaking table technocrats who know how to make things work.
The business community is quite happy about the selections. The 31 million who invested their vote in Marcos, hoping for a leader bringing forth the best in us, will be happy as well.
Rebound
We may have the best economic policies conceivable, but this will amount to nothing if the private sector does not deliver on boldness, insight and skill.
The Philippine economy exceeded expectation, posting an 8.3 percent growth rate in the first quarter of this year. This makes us the fastest growing economy in East Asia, notwithstanding strong headwinds posed by a lingering pandemic and the war in Ukraine.
Our economy has a lot of latent energy. It is for private enterprise to catalyze the underlying strength to produce growth.
Fortunately, we do not lack for young executive talent to lead our companies. Among the more remarkable is Tristan Las Marias, newly appointed CEO of Filinvest Land Incorporated (FLI).
The country has a backlog of about 6 million housing units. The private sector, helped by powerful new financing instruments such as the REIT, plays the major role in addressing the gap.
FLI is a dynamic new player in our residential business segment. In the first quarter of this year, the company amassed P2.69 billion in residential revenues, representing a 9 percent growth.
Through 2021, despite the challenges posed by the pandemic, FLI’s revenues from its residential business increased by 15 percent to P11 billion. Reservation sales grew by 5 percent to P16 billion, driven principally by OFW sales. OFW sales rose 7 percent last year and accounts for 22 percent of total sales. With improving remittances expected this year, the performance could be stronger.
FLI properly positioned for the rebound by accelerating construction completions and rolling out new projects, especially in emerging markets with a large but under-served housing demand. Correct anticipation of how the market evolves is key to strong corporate performance.
Tristan Las Marias masterminded FLI’s strong performance. He served as the company’s business group head for the Visayas and Mindanao before being elevated to be the company’s chief strategy officer.
As business group head for the Visayas and Mindanao, he pioneered the company’s midrise condo business in these regions. Under his leadership, he grew the business by a compounded annual growth rate of 30 percent.
Las Marias is responsible for the City di Mare, in joint partnership with the City of Cebu. This is a 50-hectare master-planned coastal township designed to be home to residential, commercial, office and sociocivic components.
Last April, FLI chose Las Marias to be its new CEO. With him at the helm, we expect even stronger performance from a company that contributes immensely to closing the nation’s housing gap.
Other companies should dig deeper into their talent pool. The economy, notwithstanding the challenges, faces a period of rapid growth. Our enterprises need to play more creative roles in the new emerging economy.
We are, pleasantly, facing a political transition with much less discontinuities than usual and with steady hands at the helm. The conditions for growth are good. We need the best executive talent to unlock what is potential.
Government can only do so much. The private sector remains the main driver of productivity and efficiency in an emerging economy like ours.
Let business lead the way.