RESTRICTIVE economic policies and political intervention in the last six years under the Aquino administration have resulted in squandered economic opportunities, Vice President Jejomar Binay said Tuesday in a forum organized by the Philippine Chamber of Commerce and Industry.
Among the principle economies in the Association of Southeast Asian Nations, Binay said, the Philippines had the lowest inflow of foreign investments because the country was not equipped to receive such investments.“Our economic policies remain restrictive, discouraging start-ups, and the tax system is punitive for business,” Binay said.
In his speech before the business group, Binay also said poverty and not corruption is the “moral problem” of the country, and vowed to address the problem under his presidency.
He said poverty creates massive human suffering and misery and the moral issue of the time should be taken seriously.
The lack of investment in infrastructure is one of the biggest problems that both prevents the economy from growing and makes poverty in the Philippines even worse, Binay said.
The vice president also renewed his call for lowering income and corporate taxes, which he said are among the highest in the region.
Binay said his administration would focus on “sustainable and shared economic growth” through balanced social and economic policies.
“This administration may lay claim to the country’s economic growth and credit rating upgrades, but the average 6.3 percent per year from 2010-2014 would have been more meaningful if it induced the creation of more stable jobs and opportunities for our people,” Binay said.
“Our economic agenda is simple: sustainable and shared economic growth. I’m convinced that inclusive growth is possible with the right mix of social and economic policies by a government that is sensitive to both the needs of its residents and those who do business in the country,” he added.
He also noted that it would take strong political will from government leaders and the help of the Filipino people to ensure that the effect of the country’s economic gains will be felt by all.
“We need a sustained 7 to 8- percent GDP growth per annum to reduce poverty even faster and to attain more inclusive growth sooner. We can achieve this with the right policies, proper implementation and timely delivery of priority projects. And we shall see to it that economic growth and progress are cascaded to the poor and marginalized,” he said.
“It can be reinforced with a more effective monitoring and supervision of priority programs and projects, and with the continued cooperation and support of the business sector. When government enables businesses to flourish, it also enables itself to help more of its people. It’s a shared responsibility and mutually beneficial situation; it’s a win-win for all,” he added.
Binay expressed his support for the amendment of the economic provisions of the Constitution to encourage foreign investments and create a more vibrant business environment.
“We shall work towards a market-oriented and pro-business environment that will allow local and foreign firms to flourish in the Philippines,” Binay said.
“First, we must amend the economic provisions of the 1987 Constitution that currently restricts the entry of foreign investments in some major sectors of the Philippine economy. This single step serves as the impetus that will help address nagging problems in our country, such as, unreliable and expensive power, poor infrastructure, and lack of jobs,” he added.
Binay also reaffirmed his support for the enactment of the Fiscal Incentives Rationalization Bill; Build-Operate-Transfer Law amendments; Right-of-Way Bill; the creation of a Department of Information and Communications Technology; and the reduction in the high levels of personal and corporate income tax rates.
“These, we believe, are crucial measures to make the Philippines a more competitive business and investment destination,” he said.
Binay said his administration will focus on strengthening mining, manufacturing, and agriculture saying these sectors create more jobs.
“Our program of government covers increasing agricultural productivity, making the manufacturing and export sectors more competitive, and supporting environmentally and socially-responsible mining,” he said.
“These are the industries that can create the most number of jobs,” he added.