Economy
From The Report: Philippines 2019
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With strong economic growth, an expanding population and an increasingly sophisticated internal market, the Philippines is one of Asia Pacific’s brightest investment opportunities. Concerted efforts to reform taxes, improve the ease of doing business and shore up capital markets are under way, while inflation is back under control and a major programme of infrastructure development is accelerating. Meanwhile, structural reforms are continuing and significant shifts are being undertaken in key areas such as fuel subsidies and rice imports. Additionally, more sectors of the economy are being opened up to foreign participation as the country moves towards greater integration with its international partners. All these moves are helping the Philippines move up the value chain, diversify its economy and attract greater foreign direct investment. This chapter also contains interviews with Carlos G Dominguez, Secretary of Finance; and Kevin Tan, CEO, Alliance Global Group.

Articles from this Chapter

Overview

Pushing forward: Macroeconomic indicators remain sound, while key sectors can expect to see notable growth
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With strong economic growth, an expanding population and an increasingly sophisticated internal market, the Philippines is one of Asia Pacific’s brightest investment opportunities. Concerted efforts to reform taxes, improve the ease of doing business and shore up capital markets are under way, while inflation is back under control and a major programme of infrastructure development is accelerating. Meanwhile, structural reforms are continuing and significant shifts are being undertaken in key areas…

Interview

Investing in the future: Carlos G Dominguez, Secretary of Finance, on reforming taxation and expanding infrastructure to support inclusive growth
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Interview:Carlos G Dominguez How is a balance being struck between increasing tax revenues and boosting foreign investment? CARLOS G DOMINGUEZ: Fewer than 90 days after assuming office in July 2016 we submitted to Congress the Tax Reform for Acceleration and Inclusion (TRAIN) bill, which was signed into law in December 2017. TRAIN attained 108.1% of its revenue target in 2018 and improved revenue flows to the state. By 2020 we hope that all the tax reform packages will be in place. These…

Analysis

Revenue raise: A series of tax reforms generate substantial funds
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In December 2017 the Philippines reached a major reform milestone when President Rodrigo Duterte officially approved the first of five Tax Reform for Acceleration and Inclusion (TRAIN) packages as part of the Comprehensive Tax Reform Programme (CTRP). Initially planned to roll out in 2019, the second stage of the TRAIN initiative, the Tax Reform for Attracting Better and High-Quality Opportunities (TRABAHO) bill, will target the corporate sector. Prior to the CTRP, tax policy in the Philippines…

Interview

The right way to go: Kevin Tan, CEO, Alliance Global Group, on increasing opportunities for the private sector
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Interview:Kevin Tan What role can public-private partnerships (PPPs) play in meeting the country’s infrastructure needs? KEVIN TAN: The 75 big-ticket projects included in the government’s Build, Build, Build infrastructure programme are to be completed in the short term. However, certain studies argue that the Philippines needs to implement three times that number to meet the requirements and expectations of the population over the next 10-20 years. While GDP has grown at over 6%…