Political stability, better infrastructure keys to East Asia growth
The South Luzon Expressway Skyway. AFP FILE PHOTO
MANILA, Philippines – Expectations are high for East Asian governments to provide not only better infrastructure but also political stability to spur greater economic growth.
That was one of the things the finance ministers of Philippines and Indonesia agreed upon on Thursday during the World Economic Forum’s session on “East Asia Economic Outlook.”
“The first thing we need to do is to ensure political stability,” Muhamad Chatib Basri, Indonesian Finance Minister, said during the forum held at Makati Shangri-La.
He said political stability will allow reforms to push through and at the same time attract more investors.
Philippine Finance Secretary Cesar Purisima agreed, saying businesses did not want “further complications.” He said these prompt governments to “create a stable platform” for them.
“Growth is something to work. The good thing about Asia is that a lot of good things are going for us…But we need to do many things to make sure that it becomes a reality,” Purisima said.
The Secretary said another challenge for an emerging economy like the Philippines is infrastructure.
Enumerating some of the sectors that government is focusing on, he said ports and roads still need to be improved, in addition to looking for ways to lower the price of electricity.
“The main issue for Indonesia, same with the Philippines, is infrastructure,” Basri said.
Nevertheless, most of the forum speakers agreed that Asia has a bright future amid facing a number of stumbling blocks.
“Fundamentals are definitely going our way. I think there’s a wonderful opportunity,” said Anthony Fernandes, AirAsia’s Group Chief Executive Officer.
However, he added, “Communication has to grow between the private sector and the government.”
The WEF on East Asia is a three-day event held from May 21 to 23 in the cities of Makati and Pasay. It features conferences that tackle a wide range of topics, from economy to climate change.
More than 600 delegates from 30 countries arrived in the Philippines for the forum that has led the government to put its best foot forward. Aquino himself said it was the perfect opportunity to show other nations that “It’s More Fun in the Philippines.”
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