Central bank chief touts strengths of PHL economy before Singapore-based investors

Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno highlighted the strengths of the Philippine economy before Singapore-based investors during the virtual 2^nd Philippines-Singapore Business and Investment Summit.

In a presentation during the event, the BSP Governor said the impact of the COVID-19 pandemic on the Philippine economy will be transitory, citing sound macroeconomic fundamentals and a reform momentum that provide favorable medium-term growth prospects for the Philippines. “The Philippines is a smart investment destination,” Governor Diokno told the audience during the virtual event held 26 March 2021.

He also said: “The reform momentum will help fuel the Philippines’ recovery, address structural issues, and continue to enhance the Philippines’ competitiveness as a leading investment destination. You are welcome to do business with us and be part of our exciting post-COVID narrative.”

The BSP contributes to the Philippines’ reform momentum in part through its efforts toward financial digitalization—punctuated by the Digital Payments Transformation Roadmap launched in October 2020—and its push for vital legislative measures.

The latter includes proposed laws that will lift secrecy of bank deposit; allow banks to expand credit activities that comply with the mandated lending for agriculture development; create a credit risk database for micro, small, and medium enterprises (MSMEs); improve the protection of financial consumers; and strengthen the capacity of government financial institutions to assist MSMEs and other strategically important enterprises, among others.

The BSP also supports the economic agencies of government in pushing for laws that will help open the gates to more foreign direct investments (FDIs), particularly: (i) Amendments to Foreign Investment Act, which seeks to allow “practice of more professions” by foreigners in the Philippines and to reduce the mandatory number of local hires by foreign investors; (ii) Amendments to Public Service Act, which seeks to lift limits on foreign equity in certain sectors currently considered “public utility”; and (iii) Amendments to Retail trade Liberalization Law, which seeks to lower the required minimum paid-up capital for foreign retail investors.

Besides the BSP Governor, other officials who spoke in the event included Finance Secretary Carlos Dominguez III, Trade and Industry Secretary Ramon M. Lopez, Finance Undersecretary Gil Beltran, and Trade and Industry Undersecretary Rafaelita Aldaba.

Now on its second year, the Philippines-Singapore Business and Investment Summit is co-organized by the Philippine Embassy in Singapore and the Philippine Chamber of Commerce and Industry. The maiden event was held in October 2019 in Singapore. The event aims to update Singapore-based investors on Philippine economic developments and to promote the Philippines as an investment destination. The event also aims to nurture the economic ties between the Philippines and Singapore.