Speaking at his third State of the National Address last July 23, a confident and relaxed-looking President Benigno Aquino, Jr. took account of the progress achieved in developing the economy, improving governance, battling poverty, building infrastructure, as well as in various areas of Philippine life like food sufficiency, education, health, and peace and order and credited it all to the Filipino people.
The change dreamed of have been achieved, he said, because “nothing is impossible to a united Filipino people.”
Among the most solid and impressive improvements he reported are in the economic, industrial and business sphere, made more impressive in the backdrop of the country’s erstwhile reputation as “the sick man of Asia.”
“(We) showed the world the Philippines is now open for business under new management,” he said.
The following are highlights of the improved state of the Philippine economy, as gathered from the recent SONA:
- A first quarter growth of 6.4 per cent, the highest growth rate in the South East Asian region and second only to China in the whole of Asia.
- A Philippine Stock Exchange Index hitting numerous record-highs during the year – 44 at last count.
- An international credit rating marked one notch below investment level.
- A declining unemployment rate. In 2010, the unemployment rate was at 8 percent; which dropped to 7.2 in April 2011, and went down further to 6.9 this year.
- A Business Process Outsourcing Sector (BPO) that employs 638,000 people by 2011, up many times from the 5,000 recorded in 2000. The industry has contributed P11 B to the economy and is projected in 2016 to put in P25 B in revenues and generate 1.3 million in jobs.
- Substantial inflow of foreign investments. From practically begging for investors to come in, we now have British, Japanese, American and other companies flocking to the Philippines wanting to set up shop, with some – like Morgan Stanley Emerging Market Equities — putting in billions of dollars.
- Growth in tourism – A year-on-year increase of 1.5 million tourists for the past two years; and a projected 4.6 million tourist arrivals for 2012.
- Reducing the rice shortage – What used to be an annual shortage of 1.3 million metric tons of the grain was reduced to 860,000 last year and further to 500,000 this year. With good weather, there is a possibility the country will be a able to export rice next year.
- The training by TESDA of 434,676 individuals under the Training for Work Scholarship Program and of 5,240 specialists under the Technopreneurship Program.
The President tied up economic growth with good governance, saying the elimination of corruption can ultimately feed the poor.
Doing business in the Philippines was once considered risky, he explained, with rules perceived to be too opaque and constantly changing.
“Now, with a level playing field, and clear and consistent rules, confidence in our economy is growing. Investments are pouring in, jobs are being created, and a virtuous cycle has begun—where empowered consumers buy more products, and businesses hire more people so they can expand to keep up with the growing demand.”
Amidst global turbulence, the Philippine economy has remained not only resilient but dynamic, he said, proving that “the foundations of good governance is the best defense against global uncertainty.”
Click here for another article on the SONA: “SONA 2012 NOT ONLY PNOY’S SCORE CARD BUT OF ALL FILIPINOS.”
Click here for the full text of the 2012 SONA, English translation.
Photo: Wenchie Sabban