Moody’s report proof of good governance – Malacañang

MANILA, Philippines - The latest report by a research unit of Moody’s describing the Philippines as “Asia’s rising star” in a “generally gloomy global picture” is one clear solid proof that even the international community is noticing the good governance of President Aquino.

“This is yet another international affirmation of the successful reforms undertaken by the Aquino administration that has buoyed investor confidence and restored public trust in our institutions,” deputy presidential spokesperson Abigail Valte said.

In a statement, Malacañang welcomed the Moody’s report that “underscored the country’s heady economic growth and strong macroeconomic fundamentals.”

“As we continue to reap the benefits of our reform, this further reinforces the principle that good governance is a catalyst for and harbinger of good economics,” Valte added.

Moody’s predicted that the Philippine economy could grow by as much as eight percent by 2016 if reforms in governance and business policies continue.

Philippine economic growth could register between 6.5 percent and seven percent this year and the next, hitting government targets for both years, Moody’s Analytics senior economist Glenn Levine said in a report Wednesday.

“The Philippines has been among the brightest parts of a generally gloomy global picture,” he said.

“The Philippines’ recent performance against a weak global backdrop shows that good governance is far and away the most important driver of growth in emerging markets,” Levine said.

“The crackdown on corruption and (the) encouragement of local and foreign investment, in particular, have worked well,” he added.

Policymakers should, however, treat rising domestic liabilities and asset bubbles as “mild concerns.” The bigger risk is the “complicated” taxation and business processes as well as limitation to foreign ownership. 

“If the government wants to attract more foreign investment, it must ease its restrictions on foreign ownership and streamline the rules for starting businesses, paying taxes and dealing with workers,” Levine said.