SLIDE 1
The Government of the Republic of the Philippines
Secretary Peter B. Favila
Department of Trade and Industry
The Philippines: The Philippines: Rising to the Challenge of Improving the Rising to the Challenge of Improving the Investment Climate Investment Climate
2008 Philippines Development Forum Clark, Pampanga
26 March 2008
SLIDE 2 The Government of the Republic of the Philippines
I.
What do the numbers say?
II.
Reality Check: FDI attractiveness and Philippine competitiveness
III.
Beyond survey results: What investors have to say
IV.
Improving the Philippine Investment Climate
V.
DTI Key Investment Thrusts and S trategies
VI.
National Competitiveness Council Focus Areas
- VII. The PDF Working Group on Growth and Investment
Climate (WG-GIC) S trategic Thrusts
Outline of Presentation Outline of Presentation
SLIDE 3 The Government of the Republic of the Philippines
- I. Key economic numbers paint a picture of a stronger economy
- I. Key economic numbers paint a picture of a stronger economy
1 2 3 4 5 6 7 8 9 2001 2002 2003 2004 2005 2006 2007
GDP GNP
Real GDP and GNP Growth (in % ) 2001 – 2007 Inflation and Interest Rates 2001 - 2007 BOI – PEZA Approved Investments 2001 - 2007
7.3% 7.8% 3.4 %
50 100 150 200 250 300 350 400 2001 2002 2003 2004 2005 2006 2007 BOI PEZA
29% P349 B
32.2 35.2 36.2 41.3 47.4 47.0 39.7
5 10 15 20 25 30 35 40 45
2001 2002 2003 2004 2005 2006 2007
6.1%
Merchandise Exports (US$ B) 2001 - 2007
2.8 %
2 4 6 8 10 12 2001 2002 2003 2004 2005 2006 2007
Inflation Interest Rate
SLIDE 4 The Government of the Republic of the Philippines
2 4 6 8 10 12
2001 2002 2003 2004 2005 2006 2007*
Indonesia Malaysia Philippines Thailand Vietnam
FDI Inflows (in US$ Billions) 2001 – 2007*
* Preliminary data Source: UNCTAD
- II. Reality Check: The Philippines is not attracting
- II. Reality Check: The Philippines is not attracting
comparable FDIs among Southeast Asian countries comparable FDIs among Southeast Asian countries
SLIDE 5 The Government of the Republic of the Philippines
- III. Beyond the numbers and survey results:
- III. Beyond the numbers and survey results:
What investors have to say What investors have to say
Nestle: talent availability and cost efficiency Texas Instruments: strong government support, commitment to further improve business environment “ RP is well-placed to ride
Frederick Neumann, Economist, Asia-Pacific, HS BC (cit ing fiscal consolidat ion, low inflat ion rat e, st able exchange rat e, result ing in a st able macroecon environment )
“ Well-educated, English- speaking labor force is still a competitive advantage.” –
S ameer Goel, Director, Global Markets Research, Deutsche Bank
“ Increased in savings rate has been more pronounced in recent years .” – Thomas Byrne, S
enior VP, Moody’ s Investors S ervice (w/ c has recent ly upgraded RP’ s credit rat ing from posit ive t o st able)
“ Large balance of payment & high level of GIR; overall a positive current account position.” – Reza Baqir, Country Resident Rep, IMF
SLIDE 6
The Government of the Republic of the Philippines
High value investments (billion US dollar investments)
e.g., Texas Instruments, Hanj in Heavy Industries
High end, highly specialized investments
e.g., Knowledge Process Outsourcing (KPO), highly specialized vehicles, high end electronic products
High employment generating investments
e.g., IT and IT-enabled services companies (>10,000 employees per company)
High impact investments
e.g., energy, mining, infrastructure
Beyond the numbers and survey results: Beyond the numbers and survey results: Attracted Attracted “ “ beyond the usual beyond the usual” ” kind of investments kind of investments
SLIDE 7 The Government of the Republic of the Philippines
S tabilizing the economy and promoting growth thru fiscal and financial strength Job generation & global competitiveness S
direct anti-poverty measures Decentralizing development Good governance & national harmony 2008 Targets 6.3 – 7 % GDP growth rate 3 – 5 % inflation rate Balanced budget by 2008 12% BOI-PEZA investment growth 8% export growth
Source: Updated MTPDP 2008 – 2010
Strengthening Macroeconomic Environment Strengthening Macroeconomic Environment
- IV. Improving the Philippine investment climate
- IV. Improving the Philippine investment climate
SLIDE 8 The Government of the Republic of the Philippines
Comprehensive & Integrated Infrastructure Program (CIIP) 2007-2010 amounting to PhP2.03 trillion in support of the Super Regions Framework
Infrastructure Infrastructure
NG 1,090.00 GOCCs 641.83 LGUs 115.40 GFIs 26.95
Total Government 1,874.18
Private Sector 641.83 Others 128.18
TOTAL 2,025.12
Updated CIIP 2007 – 2010
(in PhP Billion)
Improving the Philippine investment climate Improving the Philippine investment climate
SLIDE 9
The Government of the Republic of the Philippines
Good Governance Good Governance
Curbing Corruption
169% Increase in t he number of convict ions in ant i-graft court from 2006 t o 2007 PhP 3 B ant i-corrupt ion fund Procurement Transparency Group Ant i-Red Tape Task Force
Improving the Philippine investment climate Improving the Philippine investment climate
SLIDE 10 The Government of the Republic of the Philippines
- 1. Pursue higher quality investments (growth
boosting, employment creating)
- 2. Investments will be sector-focused and
company-directed
- 3. Continue policy reforms to improve investment
climate and reduce cost of doing business
- 4. Promote investments in infrastructure under
the Super Regions Framework
- 5. Strategic Investment Aftercare Program (SIAP)
- V. DTI Key Investment Thrusts and Strategies
- V. DTI Key Investment Thrusts and Strategies
SLIDE 11
The Government of the Republic of the Philippines
Priority Sectors DTI Key Investment Thrusts and Strategies DTI Key Investment Thrusts and Strategies
Offshoring and Outsourcing (O&O) Infrastructure Tourism, including Health & Wellness Mining Agribusiness
SLIDE 12
The Government of the Republic of the Philippines
Compet it ive Human Resources Efficient public and privat e sect or management Effect ive access t o financing Improved t ransact ion cost s and flows S eamless infrast ruct ure net work Energy cost -compet it iveness and self –sufficiency
National Competitiveness Council National Competitiveness Council Focus Areas Focus Areas
SLIDE 13 The Government of the Republic of the Philippines
- 1. Accelerate and widen investments
- 2. Expand trade
- 3. Strengthen institutions and governance
- 4. Provide adequate financing support
- 5. Raise quality and productivity through
innovation and technology
- 6. Address infrastructure bottlenecks
PDF Working Group on Growth and Investment PDF Working Group on Growth and Investment Climate Strategic Thrusts Climate Strategic Thrusts
SLIDE 14
The Government of the Republic of the Philippines
Secretary Peter B. Favila
Department of Trade and Industry
The Philippines: The Philippines: Rising to the Challenge of Improving the Rising to the Challenge of Improving the Investment Climate Investment Climate
2008 Philippines Development Forum Clark, Pampanga
26 March 2008
