The next administration is deemed well positioned to move forward the Philippine economy but it would need to address key challenges in infrastructure, education and business environment to better leverage on the gains achieved under the current leadership.
Rick M. Santos, president of the American Chamber of Commerce of the Philippines (AmCham), said in a briefing on Tuesday that it was important for Filipinos to be able to pick the right leaders in the elections in May as the year 2016 was seen to offer “great opportunities” and present “great challenges” that might hamper growth.
From the perspective of a foreign investor, it would be important for the next administration to be able to push for strong good governance, transparency, accountability; further level the playing field for all investors; continue with judicial reforms; invest heavily in infrastructure and education, and give more emphasis on security, Santos said.
Improving infrastructure is deemed important to support a growing economy like the Philippines while investments in improving the country’s educational system was similarly significant to ensure the competitiveness of the local talent pool, which holds a distinct advantage of being young, highly skilled and English proficient, compared to its peers in the region.
“Another suggestion for the next administration is to look at was the real estate investment trust (REIT) because that’s another implement for democratization in terms of bringing in the larger investors,” added Santos, who is also chair and founder of CBRE Philippines.
REIT gives investors the option to invest directly in finished products that are already earning—such as residential and office units, hotels or shopping malls or even infrastructure ventures like toll roads and power plants.
The REIT Law of 2009 requires the distribution of 90 percent of income annually. Regulatory restrictions, however, continue to hamper the law’s full implementation.
Santos also underscored the need for continuity in policies to help attract more investors in the country, and noted the need for the next administration to “embrace the opportunities” that the Asean Economic Community and other free trade deals could offer.
One of these trade deals is the TransPacific Partnership Agreement (TPP), deemed to be the country’s only opportunity to have a bilateral with one of its biggest markets—the United States.