Presentation by Economy Under Review Philippines
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1 2009/SOM2/013anx3 Agenda Item: V Presentation by Economy Under Review Philippines Purpose: Consideration Submitted by: APEC Secretariat Second Senior Officials Meeting Plenary Session Singapore 19 July 2009
2 THE PHILIPPINES Standing Firm Amidst the Challenges APEC IAP Peer Review Session 15 July 2009, Singapore The Global Economic Challenges The world faces a very serious financial and economic crisis Financial markets remain under stress; trade finance is drying up Advanced economies are suffering deepest recession since WW II Developing and emerging economies are experiencing a serious downturn
3 The Domestic Front The Philippine economy to slow down this year (IMF, February 2009; ADB, March 2009) Growth rates Exports have fallen by 30.8% (as of May 2009). Weak domestic consumption. Remittances posted positive growth but still struggle to boost personal consumption. Prospects and Challenges GDP remains positive. The Philippines is one of two economies in Southeast Asia projected to grow (ADB, March 2009) Pockets of optimism: remittances from abroad, BPOs. mining, energy and tourism sectors and processed foods The challenge: Safeguard the achievements of recent years Protect the most vulnerable groups in society Be first in line when the recovery sets into full swing.
4 Economic Resiliency Plan Objectives Ensure sustainable growth and attain the higher end of the growth targets Save and create as many jobs as possible Protect the most vulnerable sectors the poorest of the poor, returning overseas Filipino workers and workers in export industries Ensure price stability Improve competitiveness in preparation for the global economic rebound Economic Resiliency Plan Strategies: 1. Implement budget interventions 2. Accelerate spending for infrastructure projects 3. Expand social protection programs 4. Save and create jobs 5. Implement off-budget interventions
5 Strategy: Other Measures Closer cooperation with business and labor to save jobs and businesses and to increase productivity Payback package for returning overseas Filipino workers Expand trade, investment and tourism; encourage exporters to diversify, innovate and technologically upgrade their products Accelerate lending to small and medium enterprises Amidst the challenges the Philippines remains committed to the Bogor Goals of free and open trade and investment by 2010/2020
6 Major Reforms AT THE BORDER Reduced applied and preferential tariffs. In 2008, the simple average applied rate is 6.23%. Implemented various trade facilitation measures: Simplified and harmonized customs procedures Payment Abstract Secure System (PASS) for electronic payment of duties and taxes Text broadcast service ( and SMS) for customs clearance and transaction status inquiry Major Reforms BEHIND THE BORDER Strengthened the enforcement of laws protecting IP Established a Procurement Transparency Group, a collaborative effort between the government and civil society E-Procurement through the Philippine Government Electronic System (PhilGEPS) Intensified work to improve judicial competence and integrity, improvements in the administration of justice and expansion of judicial services
7 Major Reforms ACROSS THE BORDER Strong Republic Nautical Highway (SRNH) Roll-on, Roll-off (RoRo) Ports System Sustainable Logistics Development Program Major Reforms ACROSS THE BORDER (continued) Compliant with global security requirements such as the International Ship and Port Facility Security Code (Ports of Manila, Legaspi, Polloc and Davao) Visa Issuance Made Simple (VIMS) program and Special Visa for Employment Generation (SVEG) Bureau of Immigrations Mobile Interpol Network Database
8 The Road Towards Regional Economic Integration The New Frontier Trade in Services Labor Mobility Beyond 2010 and the Global Economic Crisis Capacity Building through Human Resources Development and Education The Road Towards Regional Economic Integration Bridging development gaps through ECOTECH Ease economies into economic integration Win-win solution for all Raison d'être: The Bogor Goals and Shared Prosperity Provide hope to those most in need, so that no one is left behind
9 The Philippines reaffirms its commitment to APEC We will continue to work towards economic progress and development. We will work for sustainable growth, equitable development and national stability. Thank you! Mabuhay!
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