Governance, financial inclusion, infra dev’t cited as critical areas for growth

MANILA, Philippines - A top executive of one of the country’s largest conglomerates has identified three key areas that need further improvement to preserve the momentum of the country’s booming economy.

Fernando Zobel de Ayala, Ayala Corp. president and chief operating officer, said  yesterday the Philippines should keep an eye on the areas of governance, financial inclusion and infrastructure development as these would be critical in supporting the country’s economic agenda and sustaining its growth coming into the next few years.

When it comes to governance, Zobel said it is imperative that the current momentum of structural and governance reforms that the Aquino administration has put in place be continued.

Zobel lauded the country’s recent accomplishments, starting with its improvement in the recent World Economic Forum competitiveness ranking up to the recent highs that the Philippine stock market has been enjoying.

However, he said there is still a lot that needs to be done in cutting bureaucracy and improving efficiency, specifically in key processes such as starting a business, registering property, getting credit and protecting investors.

“The highest standards of governance must be maintained and reform measures must be continued in the next administration if we want to sustain our growth momentum,” he said during yesterday’s Finex inaugural meeting and induction ceremonies.

In terms of financial inclusion, Zobel said the country will not be able to achieve sustainability or become a truly progressive country unless it pulls a much larger segment of the country from poverty.

 “While many are benefitting from our country’s growth momentum, economic and social progress has yet to be shared by the vast majority, particularly those who belong to the base of the economic pyramid,” he said.

Lastly, the businessman said the country’s inadequate infrastructure in roads, rail, ports and airports are  potential hindrance to the country’s economic robustness.

 “Although several key infrastructure projects have been bidded out, there is once again so much more that needs to be done. We cannot expect to continue to grow at this pace without a massive increase in infrastructure expenditure. This entails collaborative efforts between the government and the private sector,” he said.

Ayala Corp, as the country’s oldest conglomerate, is into the business of power generation, real estate, banking and financial services, telecommunications, water distribution, electronics manufacturing services, automotive dealerships, and transport infrastructure.