“A large portion of our job generation strategy is building sufficient infrastructure.”
The Philippines’ economy seems to have been revatilised on the back of reforms undertaken by President Benigno S. Aquino’s government since 2010. Investors are showing their confidence in the economy by pumping in more funds and infrastructure development is accelerating. The GDP growth for the Philippines in the first quarter of 2012 was 6.4 per cent, when many of the other economies in the world were slowing down. This growth was fuelled by active infrastructure spending, robust private consumption, and a stronger manufacturing segment.
The following are excerpts from the Philippines’ President’s speech at the State of Nation Address (SONA) delivered at the Session Hall of the House of Representatives, Batasan Pambansa Complex,Quezon City, on July 23, 2012.
On public systems reforms and the turnaround in the country’s economic outlook…
Reforms were established as we cut wasteful spending, held offenders accountable for their actions, and showed the world that the Philippines is now open for business under new management.
What was once the sick man of Asian on brims with vitality. When we secured our first positive credit rating action, some said it was pure luck. Now that we have had eight, can it still just be luck? When the Philippines Stock Exchange Index first broke 4,000, many wondered if that was sustainable. But now, with so many record highs, we are having trouble keeping score: for the record, we have had 44, and the index hovers near or above 5,000. In the first quarter of 2012, our GDP grew by 6.4 per cent, much higher than projected, the highest growth in the Southeast Asian region, and second only to China in the whole of Asia. We are second only to China. Once, we were the debtors; now, we are the creditors, clearly no laughing matter. Until recently, we had to beg for investments; now, investors flock to us. Some Japanese companies have said to us, “Maybe you’d like to take a look at us. We’re not the cheapest but we’re number one in technology.” Even the leader of a large British bank recently came looking for opportunities.
Commentators the world over voice their admiration. According to Bloomberg Business Week, “Keep an eye on the Philippines.” Foreign Policy magazine, and even one of the leaders of ASEAN 100, said that we may even become “Asia’s Next Tiger”. Ruchir Sharma, head of Morgan Stanley’s Emerging Market Equities, said, “The Philippines is no longer a joke.” And it doesn’t look like he’s pulling our leg, because their company has invested approximately a billion dollars in our markets. I only wish that the optimism of foreign media would be shared by their local counterparts more often.
On improving airport infrastructure…
And we will not stop there. Before the end of my term, the New Bohol airport in Panglao, New Legaspi airport in Daraga, and Laguindingan airport in Misamis Oriental will have been built. We will also upgrade our international airports in Mactan, Cebu; Tacloban; and Puerto Princesa airport, so they can receive more passengers; in addition to remodelling the airports in Butuan, Cotabato, Dipolog, Pagadian, Tawi-Tawi, Southern Leyte, and San Vicente in Palawan.
