BEYOND BUDGET

Assalamu alaikum wa Rahmatullahi wa Barakatuh.

I am honored to have joined the Philippine delegation led by President Ferdinand R. Marcos Jr. (PBBM) to the 2023 Asia-Pacific Economic Cooperation (APEC) Economic Leaders' Week (AELW) last Nov. 14 to 17 in San Francisco, California. 

APEC, as you may know, is one of the most important regional economic forums, bringing together 21 member economies to better facilitate trade and investment, economic growth, and regional cooperation. In its 30th year, with United States (US) as chair, over 1,200 global CEOs and 30,000 delegates from businesses and organizations around the world, aside from the heads of state of member economies, gathered for the AELW to discuss policy priorities. Themed “Creating a resilient and sustainable future for all”, discussions focused on interconnectivity, innovation and inclusivity.

These are issues that are close to my heart so I was pleased to see at the various meetings and forums that our Agenda for Prosperity, especially the priorities under the Philippine Development Plan 2023-2028 to which our national budget caters, aligns with the policy directions of our neighbors in the Asia-Pacific region and the international community.

I was able to discuss these priorities at the Philippine Economic Briefing (PEB) held on Nov. 15: In line with the theme of creating a sustainable future, the national government has allocated some $9.78 billion for climate change adaptation and mitigation for 2024, higher by 17.0 percent compared to the 2023 allocation. Towards the goal of interconnectivity, we are improving our digital infrastructure nationwide, pouring in some $696.74 million and prioritizing the digitalization of all government systems and processes, with the end in mind of making the Philippines a viable investment destination. And in pursuit of our inclusive economic growth agenda, some $18.13 billion will be provided to our local government units, including $1.45 billion in financial assistance to the Bangsamoro Autonomous Region in Muslim Mindanao.

The PEB, which is the 12th that we have held around the world and the 4th in the United States, was a resounding success, especially because the keynote was delivered by PBBM himself. For the economic team composed of Finance Secretary Benjamin Diokno, National Economic and Development Authority Secretary Arsenio Balisacan and myself, with Bangko Sentral ng Pilipinas Governor Eli Remolona Jr., this was a true moment of unity towards our Agenda for Prosperity as PBBM announced, "We are confident that the country will post a full year economic growth that is close to the 6.0 to 7.0 percent target for 2023." 

PBBM truly championed our economy before investors as he said, "Over the past year, we embarked on a journey towards economic transformation grounded on sound macroeconomic fundamentals, a favorable business climate, and agile risk management. More than one year on, in an uncertain global environment beset by slower growth, supply chain disruptions, and geopolitical tensions, the Philippines has continued to rise above the tide. In 2022, the Philippines registered its highest full-year GDP growth in nearly five decades. Just last week, we announced that the Philippine economy grew strongly by 5.9 percent in the third quarter of 2023, bringing our growth for the first three quarters of the year to 5.5 percent. This is the fastest growth amongst major economies in Asia, outpacing Vietnam, Indonesia, China, and Malaysia."

Other members of the Cabinet who were also part of the Philippine delegation echoed the message of PBBM at the PEB and spoke in further detail about our progress in terms of infrastructure building and innovation. The audience of approximately 300 guests comprised of businessmen and organizations around the world, especially the US, were also given an overview of the 197 infrastructure flagship projects of the PBBM Administration as well as efforts to boost trade and investments. 

Most notable, however, was the insight from private sector panelists at the PEB. Aboitiz Group CEO Sabin Aboitiz, lead of the Private Sector Advisory Council of PBBM, joined one of the panels, where he shared that the PBBM Administration has exemplified real cooperation between the private and public sectors towards the common goal of economic development: "This is the highest level of cooperation between the government and private sector that I have ever seen." Meanwhile, Jaime Augusto Zobel de Ayala, in the final panel, summed up our economic outlook best: "The Philippines is outperforming its peers." 

APEC 2023 concluded with the Golden Gate Declaration wherein, building upon the work of previous APEC hosts, the member states pledged to "move our region towards new ways of bringing resiliency, sustainability, interconnection, innovation and inclusion directly into our priorities and working together to respond to our most pressing economic challenges."

PBBM then came home with $672.3 million worth of investment pledges from various sectors, as confirmed by the President Communications Office, including $400 million for the telecommunications sector; $250 million for semiconductor and electronics; $20 million for pharmaceutical and healthcare; $2 million for artificial intelligence for weather forecasting; and $0.3 million in renewable energy.

More than these investment pledges, PBBM and all of us have come home with the best memories, thanks to the warm and energetic welcome and hospitality of all the Filipinos in the US. I was present at the Philippine community welcome for PBBM in San Francisco and it was electric! At the end of the day, while we strive to meet our economic targets, it’s really our encounters with our kababayans across the nation and around the world that fuel us to bring the economy to greater heights.

 Congratulations to our President, PBBM, on the very successful participation at APEC 2023. You continue to make all of us proud and motivated to work harder for our Bagong Pilipinas. 

Beyond budget, here's to staying focused, meeting our economic targets and achieving our Agenda for Prosperity!

(Amenah F. Pangandaman is the current Secretary of the Department of Budget and Management.)