More aggressive push for reforms in 2015 sought

MANILA, Philippines–Local and foreign business groups want a more aggressive push for reforms in the last year and half of the Aquino administration and the fast-tracking of crucial infrastructure projects, to sustain the country’s economic growth.

Henry J. Schumacher, vice president for external affairs of the European Chamber of Commerce of the Philippines (ECCP), noted that while the local “economy behaved pretty well in 2014, inclusive growth and infrastructure development remained elusive.”

“Let’s hope that at least the last two items will aggressively be addressed in 2015. 2015 will hopefully see reforms still being pushed,” Schumacher added.

Employers Confederation of the Philippines (Ecop) president Edgardo G. Lacson also pointed out that while 2014 ended with many remarkable milestones for the Philippines, underlying problems and challenges persisted.

“Investment grade ratings were sustained. GDP (Gross Domestic Product) growth may have dipped but [the Philippines] remained one of Asia’s stellar performers. Bank interest rates at 5 percent favored business activities and expansions; overseas Filipino workers’ remittance at more than $25 billion is matched by the business process outsourcing (BPO) sector earnings; and business confidence is high. But the twin and interlinked problem of poverty and unemployment continued to elude solution despite the pleasing economic growth indicators,” Lacson explained.

It would thus be crucial for the government to accelerate infrastructure spending next year to generate employment. Lacson also stressed the need to “increase agricultural productivity, address smuggling and port congestion, and ensure stable supply and competitive power cost to attract investments.”

For Management Association of the Philippines (MAP) president Gregorio Santillan Navarro, the Philippine economy was able to perform well despite the controversies surrounding the Priority Development Assistance Fund (PDAF) and the “paralyzing” consequence of the Supreme Court decision on the unconstitutionality of the Disbursement Acceleration Program (DAP).

“Hopefully the fourth-quarter results will be much better than the third quarter; and 2015 should be much better after learning from the lessons and experience of the past five and a half years. I hope that the Aquino government can really fast-track programs and projects in 2015 and institutionalize all the good governance policies, processes, standards and best practices, rules and regulations to ensure their sustainability,” Navarro added.