Philippine Finance Secretary Benjamin Diokno recently showcased the country’s fast-growing economy and investment opportunities during a briefing in San Francisco. The event, organized by the Bangko Sentral ng Pilipinas-Investor Relations Group (BSP-IRG) and supported by various partner banks, aimed to attract US-based investors to explore the Philippines as an attractive investment destination.
Sec. Diokno emphasized that the Philippine economy is thriving despite the ongoing global challenges posed by the COVID-19 pandemic. He highlighted the country’s position as one of the fastest-growing nations in the ASEAN region and emphasized the government’s efforts in opening up sectors of the economy to drive growth. He also mentioned that the Philippines’ debt-to-GDP ratio has fallen, demonstrating the country’s commitment to fiscal consolidation.
One of the key initiatives discussed during the briefing was the Philippines’ first-ever Medium-Term Fiscal Framework (MTFF), which aims to reduce the deficit-to-GDP ratio to 3 percent by 2028 and the debt-to-GDP ratio to less than 60 percent by 2025. The government plans to sustain high infrastructure spending at 5 to 6 percent of GDP annually to support economic growth.
Sec. Diokno explained that the Philippines adopts a borrowing mix of 30 percent foreign and 70 percent domestic to minimize foreign exchange risk. He emphasized the importance of growing the economy to reduce deficits and debt, stating that robust economic growth is key to achieving these goals.
The Department of Finance (DOF) will collaborate with Congress to pass key reforms crucial to accelerating economic development. These reforms include tax revenue measures such as the Passive Income and Financial Intermediary Taxation Act (PIFITA), value-added tax (VAT) on digital service providers, taxes on pre-mixed alcohol and single-use plastics, and improved tax administration through digitalization.
During the briefing, the Philippines also launched its first sovereign wealth fund, the Maharlika Investment Fund (MIF). The MIF will provide additional funding for the country’s infrastructure projects, aiming to improve physical and digital connectivity throughout the Philippines.
The event gathered around 200 senior executives of US-based funds and corporates, as well as representatives from business groups, industry associations, the financial community, and the public sector. The audience had the opportunity to engage in panel discussions and conversations with government officials and industry leaders.
Overall, the briefing aimed to highlight the Philippines’ solid reform agenda, infrastructure flagship projects, and investment opportunities. The Finance Secretary, along with other government officials, invited US-based investors to explore priority investment areas in the Philippines, promising a wealth of opportunities and sustained economic growth.
The event showcased the Philippines’ dedication to achieving economic growth, social progress, and sustainable development. It also reinforced the deepening economic ties between the Philippines and the United States, with both parties expressing a clear intention to strengthen their alliance and foster mutual growth and prosperity.
