The Philippines remains in a sweet spot but a lot more need to be done to deepen governance reforms, scale up infrastructure-building and promote inclusive growth, top officials of property giant Ayala Land Inc. said.
Speaking at a recent Financial Executives Institute of the Philippines (Finex) gathering, ALI chair Fernando Zobel de Ayala said that while the platform of anti-corruption and good governance had unleashed so much growth, led to so much confidence in business and brought access to so many products as a result of lower interest rates, much more would have to be done to support the country’s economic agenda.
“Our major indicators and economic drivers remain solid amid the global slowdown and the political and fundamental headwinds that beset some of our peers in the region,” Zobel said.
The country’s improvement in competitiveness rankings is a welcome news, but Zobel said much still would have to be done in cutting bureaucracy and improving efficiency, specifically in key processes such as starting a business, registering property, getting credit and protecting investors.
“Currently, starting a business in the Philippines entails a gruelling 15 procedures spanning over 35 days. In contrast, Malaysia only requires three steps spanning six days,” he said.
Moving forward, Zobel said it was imperative that the current momentum of structural and governance reforms that the current administration has put in place be continued.
“The highest standards of governance must be maintained and reform measures must be continued in the next administration if we want to sustain our growth momentum,” he said.
“Beyond the country’s governance structure, it is likewise imperative that enterprises create and enforce stronger ethical standards in the governance of business. This will go a long way in building investor confidence, which as we all know, then translates to tangible benefits such as lower cost of capital, better valuations and ultimately, sustained growth,” he said.
The year 2015 marks another pivotal year for the Philippines, which remains one of the fastest-growing economies in Asia, an attribute that puts the country in the right footing with the advent of the Association of Southeast Asian Nations (Asean) integration, ALI chief finance officer Jaime Ysmael said in the same Finex meeting, during which he was inducted as president of the organization.
“All the key economic metrics are up, including the country’s competitiveness, corporate governance and credit-rating rankings. The Apec (Asia-Pacific Economic Cooperation) Summit, which it is hosting, puts the country again in the limelight for the world to see, observe and learn from,” Ysmael said.
“While significant gains have been accomplished, much work still needs to be done to sustain the reforms and growth momentum, solidify its position and allow it to join its more progressive community of neighbors. Sustainable development and inclusive growth remain to be challenges that the country must address,” he said.