PH economic growth still not inclusive – JFC
March 12, 2015 at 13:41
Bernie Magkilat
March 4, 2015 (updated)
Foreign businessmen cited the country’s economic growth but strongly urged the government to further develop the country’s infrastructure and liberalize the economy to attract more foreign direct investments and achieve a sustainable GDP growth of 8 percent to really make growth truly inclusive.
This was stressed at the 4th Arangkada Anniversary Forum 2015 in Makati spearheaded by the Joint Foreign Chambers (JFC), the country’s largest coalition of foreign investors composed of the American, Australian-New Zealand, Canadian, European, Japan and Korean Chambers in the Philippines as well as the Philippine Association of Multinational Companies Regiona/Operating Headquarters Inc., representing over 3,000 companies and over $200 billion worth of trade and $30 billion investments to the Philippines.
With the theme “Invest NOW for Inclusive Growth,” the business groups noted that inclusive growth, which has been the Aquino administration’s battlecry when it entered office five years ago has remained a challenge.
Speakers at the forum on “Investment and Inclusive Growth” composed of the country’s foreign ambassadors from the US, Japan, Australia, Canada, Korea and Japan, all have echoed the need to open up the prohibition on full foreign ownership and the relaxation of the Negative List which bans full foreign ownership.
To achieve a truly inclusive growth, the 4th Arangkada Assessment has highlighted the following critical areas where reforms are necessary growth: creating a sound investment climate through regulatory and policy coherence; enabling the middle class through equitable participation and larger share in economic activities; promoting trade and investment liberalization and creating a level playing field for investors; providing opportunities for gainful employment especially to the young labor force; and, supporting integrity, transparency, judicial reforms, anti-corruption and peace initiatives.
The Arangkada Assessment of 462 Recommendations showed an overall improvement in the percentage of recommendations that are active/moving to 74.22 percent in the latest 2014 assessment from 51.44 percent in the first assessment in 2011.
American Chamber of Commerce in the Philippines President Rhicke Jennings took note of many significant reforms achieved under the Aquino administration including the country GDP growth of 6.1 percent, rising foreign and domestic investments; credit rating upgrades, BPO, construction, manufacturing and tourism as growth drivers.
While the foreign business groups cited of the lofty achievements, they also stressed the need to ensure a conducive investment environment to help create the growth of seven sectors agri-business, BPO, creative industries, mining, manufacturing, tourism-retirement-medical travel, infrastructure, which have been identified as drivers and winners of economic transformation where a large percentage of the population are expected to benefit from the opportunities derived from enhanced integration with the rest of the world.
Julian Payne, President of the Canadian Chamber of Commerce, pointed out that inclusive growth has remained a challenge considering that growth has been concentrated in Luzon.
Source: https://www.mb.com.ph/ph-economic-growth-still-not-inclusive-jfc/#Im4KPLOf8iZRXtB0.99
