If you’re wondering about the economic situation in the Philippines and are considering rekindling roots in the country, understanding the economic landscape is relevant. After the second State of the Nation Address (SONA) Philippine Economic Briefing (PEB) last July 25, 2023, the Philippine Economic Team, members of the private sector, and international financing institutions highlighted the country’s strong economic performance and positive outlook.
The Post-SONA PEB featured a fireside chat between Department of Finance (DOF) Secretary Benjamin E. Diokno and Nomura Southeast Asia Managing Director and Chief Economist Euben Paracuelles, and two panel discussions entitled “A Fast-Growing and Forward-Looking Economy” and “Views on the SONA and the Philippines’ Socioeconomic Agenda.”
But, how does that translate to an overseas-based Pinoy?
During the fireside chat, DOF Secretary Diokno painted the scene, saying that the country’s drivers of growth are primarily infrastructure development, public-private partnerships (PPPs), and the Maharlika Investment Fund (MIF). Department of Budget and Management Principal Economist Joselito R. Basilio discussed the priority sectors under the FY 2024 Proposed National Budget, anchored on the Philippine Development Plan (PDP) 2023 – 2028, noting that the country’s strong economic performance provides for higher allocations for its priority expenditures.
In addition, National Economic and Development Authority Secretary Arsenio M. Balisacan stressed that investments in health, social protection, and education were outlined in the PDP 2023 – 2028 as a testament to the government’s commitment to inclusive development. This means that if you’re planning to set up businesses or establish economic roots back in the country, studying these priority areas may determine the soundness of your investment.
Economic leaders provide their two cents
SM Investments Corporation Vice Chairperson Teresita Sy-Coson expressed that she is “very positive about our growth,” stating infrastructure, technology, consumption, health, and energy as prospective growth sectors in the coming years. She added that “the Philippines is always a country with a lot of potential.” Nomura Southeast Asia Managing Director and Chief Economist Paracuelles also cited that the country’s mining industry will play a crucial role in its economic development, following the trends in other ASEAN countries such as Indonesia.
Is the government landscape supportive of a homecoming Pinoy or homecoming business?
The experts say yes, and one should take advantage of this potential through ease of doing business (EODB) in the country. Management Association of the Philippines (MAP) President Atty. Benedicta Du-Baladad shared that the MAP and the government, through the Anti-Red Tape Authority and the Department of Interior and Local Government, are preparing a Memorandum of Understanding that targets to address pressing concerns on EODB, especially at the local level. Meaning, there are planned measures that supposedly make it easier to set up businesses in the country.
From an outsider’s POV, Asian Development Bank (ADB) Country Director for the Philippines Pavit Ramachandran said that the country’s “reforms are in the right direction,” emphasizing that this ease must come with a significant infrastructure push to provide the springboard for the Philippines to lead the ASEAN region. The infrastructure projects of the government, in partnership with the ADB, focus on transport connectivity, disaster resilience, and ensuring livable communities.
The experts are seeing promise in a brighter future, but of course, the decision will depend on how clear this vision is to you as well.
With reports from the Department of Budget and Mangement
