Philippines on path to permanent economic growth - Arroyo

SINGAPORE (via PLDT) — President Gloria Macapagal-Arroyo pitched for more investments in the Philippines as she urged foreign businessmen anew on Monday to infuse their capital in the Philippines and help ensure the sustainability of the country’s economic growth and stability.

In her speech before the officers and members of the Philippines-Singapore Business Council (PSBC) at the Straits Room of the Fullerton Hotel here, the President stressed that the Philippines is now “on a path to permanent economic growth and stability.”

“We’re working to ensure that this will be sustained. How? The short answer to continuing the economic growth is summed in three words: invest, invest, invest,” the Chief Executive said.

The President, who flew to Singapore on Saturday to attend the June 24-25 World Economic Forum on East Asia 2007 and for a one-day state visit to Singapore on Monday, explained that the single biggest act that led to the surge in the economy was the passage by Congress of the Value-Added Tax Law.

“In one bold stroke, the Value-Added Tax raised enormous amount of new revenue” that led to strengthen the country’s economy, she said.

The President said her government is following up “the pain of tax raising measures with the gain that comes from significant investments in people and projects,” adding, “that way, we will truly ensure that the progress cannot be reversed.”

She added that the administration is committed to consolidating the gains in new revenue by making investments in human capital and physical infrastructure, and these include billions of pesos in education, healthcare and training along with billions of pesos in new bridges, roads and ports to upgrade the competitiveness of the Philippines.

According to the President, the Philippines has become an increasingly competitive location for manufacturing, services and high skill jobs along with the booming call center business.

“We are certainly a leader in the outsourcing space, but we cannot underestimate the contribution of other high growth sectors of our economy, for instance, manufacturing, technology, mining, energy, tourism and infrastructure,” she said.

The President cited the reforms initiated by her administration that are succeeding in attracting more foreign investments, saying that these reforms will ensure that these industries grow as drivers of the economy.

“The decisions of Texas Instruments, Hanjin, Marubeni and other world-famous companies to invest in the Philippines are a big validation that our strategy is working,” she said.

The President also cited other positive factors that led to the country’s economic surge such as the stronger peso, the buoyant stock market that has reached all-time highs, the creation of six million jobs in the last six years, the lowest unemployment rate, and the reduced poverty rate, which is the lowest as well.

“We believe the Philippines offers one of the best values in Asia for investors,” she declared.

In her speech, the President also said it is essential to bring the benefits of the country’s macroeconomic gains to the people.

In connection with this, the President said she has initiated an investment strategy focused on four main initiatives, namely:

* Improving the infrastructure to create an environment in which businesses feel confident to expand and employ more people, because more jobs means less poverty.
* Improving social services such as health insurance subsidies for indigent families and school-based nutrition programs.
* Boosting education support in government efforts to reduce poverty by investing in better schoolbuildings, new textbooks and teaching materials, and training programs for teachers and school administrators.
* Cutting red tape and continuing to eliminate corruption from the system.

(OPS) (pinoypress.net)