MANILA, Philippines - Leaders of the House of Representatives have assured officials of Moody’s Investors Service that the chamber would pass key economic reform measures over the next 18 months to strengthen the country’s fiscal position and attract more investments.
Speaker Feliciano Belmonte Jr. and Marikina City Rep. Romero Quimbo met for two hours last Wednesday senior analyst Christian de Guzman, and associate analyst Shaoyong Beh as part of Moody’s annual due diligence visit. Also at the meeting was Jacob Young, executive director of Goldman Sachs’ finance division.
The Moody’s team was looking into the possibility of upgrading the country’s credit rating to investment grade.
“The impression that I got was that they were impressed about our outstanding progress, transparency in government and they felt that the people have started believing in the government again,†Quimbo said in a telephone interview.
He said the meeting tackled several issues including taxes, fiscal incentives, proposed amendments to the Bangko Sentral ng Pilipinas (BSP) charter, the mining industry, charter change, and pork barrel funds.
Belmonte said the House in the 16th Congress is determined to pass measures to rationalize fiscal incentives and amend the BSP charter.
Quimbo said the said bills have been approved by the House in the 15th Congress but they were not acted upon in the Senate.
“The Speaker said there is an urgent need to withdraw archaic incentives granted to industries that do not create jobs,†he said.
“Many of our initiatives in this 16th Congress are geared to ensure inclusive growth for our constituents,†he quoted Belmonte as saying.
The analysts also wanted to know whether it was possible to amend the restrictive economic provisions even without the support of the sitting president, he said.
Belmonte earlier filed Concurrent Resolution No. 1 that seeks to amend the restrictive economic provisions of the 1987 Constitution via the normal legislative route to allow more foreign investor participation in local industries.
“Legally the consent of the president is not needed. When the amendments are approved, the Comelec (Commission on Elections) automatically should put them through a nationwide plebiscite but the Speaker said the matter needs further discussion with the President,†Quimbo said.
“Without charter change, we cannot grow as fast as we should, especially now that our neighbors are far ahead economically,†he said.
On the pork barrel issue, Belmonte told the visitors that there has been a “dramatic tightening†of rules on the disbursement of the Priority Development Assistance Fund (PDAF) of lawmakers, he said.
He said the abolition of the PDAF is not the solution to problem of corruption but more reforms in the pork barrel system.