Business groups urge gov’t to prioritize infra projects

MANILA, Philippines - The government must prioritize the upgrade of the country’s infrastructure as well as rehabilitation work in areas affected by Super Typhoon Yolanda to sustain and even beat the strong economic growth posted in 2013 this year, business groups said.

Management Association of the Philippines (MAP) president Gregorio Navarro said in a text message yesterday that while the economy posted strong growth last year despite the damage caused by Super Typhoon Yolanda in some parts of the country, the group believes growth should even expand at a faster pace this year.

Data released yesterday showed the economy grew  6.5 percent in the fourth quarter of 2013, which brought the full-year gross domestic product (GDP) growth to 7.2 percent.

The full-year GDP growth posted last year is much higher than the 6.8 Percent posted in 2012.

The country’s economic growth last year was driven by the expansion in the services sector as well as the accelerated performance of the manufacturing sector.

“2014 forecasts vary between 6.9 to 7.2 (percent) but I believe that it should be better with government’s increased infrastructure spending and rehabilitation funding, plus the more efficient deployment of resources in more productive and job generating programs. By this time, the private sector is already more attuned to how the P-Noy administration works,” Navarro said.

For his part, Makati Business Club  (MBC) executive director Peter Perfecto said that while the group welcomes the strong finish in 2013, prioritizing the rollout of the Public-Private Partnership projects and post-Yolanda reconstruction would be necessary to sustain the growth momentum this year.

“Addressing the mining revenue sharing issue and consideration of amendments to economic provisions of the Constitution may help improve further our growth trajectory,” he added.

While there has been interest from mining firms to invest in the country, they have been on a ‘wait-and-see’ with no clear mining revenue sharing scheme in place.

Many foreign firms interested to pour in funds in the country have also raised concerns on the Constitution’s limits on foreign ownership.

Employers Confederation of the Philippines (ECOP) president Edgardo Lacson said that even as the Philippine economy is expected to continue to expand and post impressive performance compared with the rest of the world this year, the bigger challenge for government and employers is how to make it inclusive by creating jobs, reducing poverty, and sustaining the country’s competitiveness.

“There must be a serious program to lower the cost of doing business, ensure stable power supply at competitive cost, food security and accelerate infrastructure upgrade and development,” he said.

“Manufacturing and agriculture, which are the biggest job generators, must be strengthened by creating a policy environment that will attract investments,” he added.

Trade Secretary Gregory Domingo replied that government expects to sustain the economic performance performance in 2013 this year as both the manufacturing and services sectors are seen to continue to expand.

“I think that we should be able to achieve a growth rate similar to 2013 as the factors and conditions that led to that growth continue to exist,” he said.

He noted that the manufacturing sector is expected to continue to grow this year as the government actively promotes the Philippines as an investment destination and as more manufacturing firms are seen to come to the country given incentives offered which are clearly defined by law, a stable inflation rate, as well as low wage costs.