DTI chief sees ‘good signs’ for RP

Trade and Industry Secretary Cesar Purisima assessed yesterday "good signs" for the Philippine economy for the first half of the year despite being on the brink of a fiscal crisis.

At the 2004 Mid-Year Economic Briefing for investors held at the Dusit Hotel, Purisima cited the 6.35 percent growth in the country’s gross domestic product (GDP), the highest in 16 years.

He also noted growth posted in the agriculture and services sectors at 6.3 and 6.9 percent, respectively for the past six months.

The nation with a growing population that now stands at 84 million is likewise a source of manpower in the global market, the trade secreary said.

He said 650,000 jobs have been created in the first half of the year.

Exports and imports are also up.

Purisima expressed optimism on the growth of exports, which in 2004 grew by 8.5 percent as compared to last year.

The Philippines, he pointed out, exports automobiles with 20,000 cars sold to other Asian countries like Thailand and Indonesia.

China is emerging as our largest export market, he said.

"The US is a very important market, we count on exports and investments on them. But there are more giants around us... we must tackle these opportunities and diversify our markets," Purisima said.

He reported that investments also grew due to increases in projects in the energy and IT sectors.

In the energy sector alone, there was an increase of 78 percent in projects as compared to last year.

He specifically cited the tourism and mining sectors where there are big opportunities for investments.

In line with President Arroyo’s 10-point legacy program, Purisima said the framework of the Department of Trade and Industry’s (DTI) policy thrusts for the next six years will focus on the Philippines’ "competitive strengths."

The trade chief stressed it is in the infrastructure sector that the country needs to make investments in order to "pump prime" the economy.

"The challenge is to find a way to build more infrastructure despite a fiscal crisis," Purisima said, but noted that "infrastructure spending is a good source of pump priming the economy."

The first tranche of funding infrastructure projects, he said, will come from financing of the National Development Co. and Development Bank of the Philippines of some P15 to P20 billion.

The second tranche of funding source, Purisima added, would come from the selling, or getting "leverage" from government assets.

There is a need to promote investments in infrastructure projects such as potential ones in south luzon expressway, Batangas port road, and the completion of Terminal 3 of the Ninoy Aquino International Airport.

Purisima also stressed the importance of promoting entrepreneurship and the development of small medium enterprises for the growth of the economy.

The trade secretary doused fears of what trade liberalization would do to a underdeveloped country like the Philippines and instead expressed optimism on its benefits.

"I am talking about liberalization where we get something in return. my point is we should continue to open up," he said in a television interview.

The DTI’s approach, Purisima said is consistent with that of the President in liberalizing trade further but with "safety nets" for smaller local companies that can be affected.

"We need to integrate with the Asean for the Philippines to become a hub for the Pacific. So the giants will do business with the Philippines," Purisima said.

The Philippines "is not in a vacuum" he said and can be the "gateway to the Pacific" with other "giant countries."

"I am enouraging everyone to look at the glass as half-full at the same time see the problems. Very few people know that we can produce computers, high-tech goods. We need to be more confident and they will become more confident of us," Purisima explained.