Chua: Vax Roll Out, Infra Build-Up Key To Recovery
Socioeconomic Planning Secretary Karl Kendrick T. Chua underscored the government’s economic recovery program before over 300 Japanese investors in a virtual briefing held Tuesday where Japan’s keen interest in the country threshed out.
Photo Insert: National Economic and Development Authority (NEDA) Director General Karl Kendrick Chua at the Commission on Appointments.
Chua bore the underpinnings of that economic recovery plan: "the continuous roll-out of our vaccination program, and infrastructure build-up.
These are the keys to driving economic recovery, restoring confidence, and bringing back jobs. We wish to thank Japan, the Philippines' largest bilateral development partner, for its continuous support for the Philippine government’s ‘Build, Build, Build’ program" Chua added.
The Philippine Economic Briefing for Japan was organized by international and Japan-based Sumitomo Mitsui Financial Group (including SMBC and SMBC Nikko Securities), together with the Philippine Embassy in Japan, Bangko Sentral ng Pilipinas (central bank of the Philippines), and the Philippines’ Department of Finance, National Economic and Development Authority, and Department of Trade and Industry.
During the event, officials from SMBC Group cited the benefits of doing business in the Philippines.
Yasuyuki Kawasaki, Chairman Representative Director of SMBC Nikko Securities, said “Even amid the pandemic, Japan Credit Rating Agency (JCR) assigns an A-credit rating to the Philippines, reflecting strength of the Philippine economy.”
At the same time, with SMBC Nikko as arranger, the Philippines successfully issued its first zero-coupon Samurai bonds earlier this year. This shows the confidence of Japanese investors in the country.
“The Philippines aims not only to regain what was lost from the COVID crisis. We want a “post-COVID-19 Economy” that is stronger, more technologically advanced, more sustainable, and more inclusive than ever before,” Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said in his presentation.
Diokno said the BSP is actively pursuing a “post-COVID-19 Economy,” such as by promoting financial digitalization and sustainable finance. He added that the BSP’s commitment to maintaining price stability and a stable financial system helps provide an enabling environment for businesses to prosper. Japanese investors are welcome to do business in the Philippines.
For his part, Finance Secretary Carlos G. Dominguez presented developments in the country’s fiscal sector, including the recent enactment of a landmark law rationalizing the country’s corporate tax and fiscal incentives regime.
The Finance Secretary explained that the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law provides an immediate 10 percentage point cut in the corporate income tax rates of micro, small and medium enterprises, from 30 percent to 20 percent. The rest of the corporations enjoy a 5-percentage point reduction, from 30 percent to 25 percent.
In addition, he added, the CREATE law provides flexibility in granting fiscal and non-fiscal incentives. This introduces an enhanced incentives package that is performance-based, time-bound, targeted, and transparent.