PRESIDENT Ferdinand Marcos Jr. expressed confidence that the Philippines will become a major contributor to the Indo-Pacific region’s economic activity considering the country’s outstanding economic record and soaring investments.
In his address at the 6th Indo-Pacific Business Forum in Taguig City on Tuesday, May 21, 2024, Marcos touted the Philippines’ 5.5 percent gross domestic product growth in 2023, surpassing major economies in Asia.
He also noted the continuous flow of foreign direct investments (FDI), with four consecutive months of expansion, while investment pledges have also soared, reflecting a healthy pipeline of inward FDI.
“Indo-Pacific Economic Framework (IPEF) partner countries play a significant role in the Philippines’ robust economic growth, contributing substantially to its FDI and approved investments,” said Marcos.
“Through these economic strengths, we aspire to transform the Philippine economy into a regional hub for smart and sustainable manufacturing and [services],” he added.
The chief executive also cited the government “aggressive push” to develop the Luzon Economic Corridor, potentials in the renewable energy (RE) sector, and the ongoing digitalization initiatives.
Marcos noted the essence of upgrading the Luzon island’s infrastructure especially in enhancing and empowering the workforce and facilitating the smooth flow of goods and services.
“We have earmarked key projects to spur growth in the Luzon Economic Corridor, creating strategic connections between Subic, Clark, and the Calabarzon region, a prime location for export-manufacturing firms,” he said.
“These initiatives will enhance freight transport services, mobility, and access to key economic zones, ensuring business continuity and positioning the Philippines as a regional hub for agribusiness and logistics in the Asia-Pacific,” he added.
In terms of the Philippines’ potential in renewable energy, Marcos noted that there are over 491,821 megawatts from sources like geothermal, hydropower, solar, and wind, in the country that are ready to be harnessed.
Following the recent amendments to the Renewable Energy Act, 100 percent foreign ownership of renewable energy sources was enabled, making the country an attractive destination for clean energy investments.
“We intend to tap this vast potential as we target to increase the share of renewables in our power generation mix from the current 22 percent to 50 percent by the year 2040,” he said.
Marcos also reiterated his administration’s push for digital transformation, with a government-led strategy to enhance digital infrastructure, connectivity, and business facilitation.
With micro, small, and medium enterprises (MSMEs) at the heart of the Philippine economy and for the economies in the Indo-Pacific, Marcos said his government is equipping them with necessary tools to become sustainable businesses.
“We believe that Indo-Pacific investors have the potential to contribute significantly to the expansion of such businesses,” the President said.
“The Philippines also offers a strategic location with a robust experience and record in the IT-BPM competencies and a strong direction towards upgrading Business Process Outsourcing into Knowledge Process Outsourcing such as market intelligence, business analytics, legal services, and AI, among others,” he added.
Marcos said the Philippines can serve as a platform for companies to access the more than 600 million-strong Southeast Asian consumer market, creating more opportunities for collaboration and partnerships as he reiterated the country’s commitment to foster economic growth and international cooperation.
“Through our ties with different countries, our nation enjoys access to various markets, including the Asean market, the Regional Comprehensive Economic Partnership (RCEP), [and] the Philippines-Japan Economic Partnership Agreement (PJEPA), among others,” he said.
“These agreements underscore our commitment to fostering economic growth and international cooperation. With RCEP, investors can access other markets from RCEP countries by manufacturing and exporting their products from the Philippines,” he added. (TPM/SunStar Philippines)