FFCCCII hopes for 7.5% economic expansion

MANILA, Philippines — Business group Federation of Filipino Chinese Chambers of Commerce and Industry Inc. (FFCCCII) expects the economy to recover and post a 7.5 percent growth by next year with the further reopening of more sectors.

“We at the FFCCCII strongly support the country’s approach to gradually reopen our Philippine economy, while still upholding strict observance of health protocols. In fact, we are optimistic that if we are united in our efforts and if global conditions stabilize like the ending of the USA-China trade war, I believe the Philippines can next year (2021) even achieve 7.5 percent economic growth,” FFCCCII president Henry Lim Bon Liong said in a statement.

The FFCCCII recently held a Zoom forum with National Economic and Development Authority director general Karl Chua wherein he discussed growth projections for the Philippine economy next year and in 2022.

FFCCCII’s growth projection is at the higher end of the government’s forecast for next year.

The interagency Development Budget Coordination Committee (DBCC) said the economy is projected to recover with gross domestic product (GDP) growth seen to reach 6.5 to 7.5 percent next year and post faster growth of eight to 10 percent in 2022 with the continued easing of restrictions currently in place.

For this year, the DBCC downgraded its forecast for the economy which it expects to contract by 8.5 to 9.5 percent, from a previous estimate of 4.5 to 6.6 percent, due to the prolonged community quarantine.

Apart from the push for the continued reopening of the economy, FFCCCII  sees the recent passage of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) bill in the Senate, as a positive move as this would help the economy get back up on its feet.

CREATE seeks to reduce the corporate income tax rate to 25 percent from 30 percent, and rationalize fiscal incentives.

Together with Bayanihan I and II and the Financial Institutions Strategic Transfer Act, Lim said CREATE would bolster business confidence.

“Aside from those, I urge government and the private sector to push Spend Spend, Spend to revive economic activities and consumer confidence. Another top priority should be support for higher agricultural productivity,” he said.

Recently, Lim’s SL Agritech Corp., Agriculture Secretary William Dar and GoNegosyo launched the Masaganang Ani 300 to help Filipino rice farmers increase rice production to 300 cavans per hectare through modern hybrid rice technology.

At present, SL Agritech is the country’s biggest hybrid rice seedlings producer and thousands of rice farmers have benefitted from its technology.

The firm has expanded to Indonesia, Myanmar, Bangladesh and India and also exports its Doña Maria rice to the Middle East, North America, Australia and Singapore.

Earlier this year, FFCCCII led 11 major Filipino Chinese business, civic and cultural organizations under the Filipino Chinese Community Calamity Fund (FCCF) to raise P300 million pesos to donate medical supplies to hospitals nationwide and food relief for people affected by the lockdown.

FCCF has also recently donated rice and other food products to typhoon victims in Albay, Camarines Sur, Catanduanes, Isabela, Cagayan, Bulacan and Marikina City.