The first State of the Nation Address (Sona) of President Duterte may have been peppered with ad libs and jokes, but this did not turn off businessmen and economists.
On the contrary, they said they were “impressed” by the President’s plans to grow the economy in the next six years by providing a “more stable” environment where businesses can thrive.
“What really caught my attention was his emphasis on the pursuit of anything that will improve our lives within the bounds of the law. I think that impressed me the most,” University of Asia and the Pacific (UA&P) economist Cid Terosa said.
“What I found lacking in the previous administration—the emphasis on the rule of law in the pursuit of economic prosperity—was strongly stressed this time,” Terosa added.
Ateneo Eagle Watch Senior Fellow Alvin P. Ang commended the efforts of the Duterte administration to achieve lasting peace in the country. Ang said the unilateral cease-fire with the Communist Party of the Philippines-New People’s Army is one of the “best” parts of Duterte’s Sona.
“The effort to achieve peace by declaring a unilateral cease-fire is the best part of the speech. Now, the Left will no longer have a reason not to go back to the negotiating table,” Ang said. The Makati Business Club (MBC) also welcomed the Duterte administration’s declaration of a unilateral cease-fire, to “correct historical injustices,” and its stance against criminality, drugs, and graft and corruption.
“The declaration of a unilateral cease-fire and the call to correct historical injustices is a very bold move and sends a strong signal that the government is serious about ensuring permanent and lasting peace,” MBC Executive Director Peter V. Perfecto said.
The MBC urged the Duterte administration to continue working with the private sector to improve the country’s business climate and to engage civil society and other cause-oriented groups.
Mr. Duterte’s pronouncement that his government will develop Clark International Airport and establish a bullet train system going there was welcomed by Management Association of the Philippines President Perry Pe.
“[The President] connected. His point is loud and clear,” Pe said.
As for his plan to continue the macroeconomic policies of the previous administration, Terosa said President Duterte’s team is aware that the country’s economy is doing well. The President’s pronouncement that he will cut income and corporate taxes and its implications for revenue collection also did not seem to bother economists, like Terosa and Ang. “With greater consumption, business and investment activities, more money can be raised by companies and individuals that may enable the government to pursue its plans. It can spur greater activity that can result to more revenues not necessarily coming from taxes,” Terosa said.
“I’m sure there will be additional taxes to cover some of the losses due to the decrease in income tax and corporate income tax, but these two reforms are very strong indications that he wants to create business activities and create jobs,” he added.
Ang noted that the president did not provide more details about his economic plans, but this may be due to the possibility that he did not want to “offend” the nationalists.
“The President did not say anything about removing economic restrictions. I think Mr. Duterte is careful with his language because the nationalists will not like it,” he said.
Ang also said the Duterte administration’s focus on agriculture and its emphasis on rolling out measures, such as nationwide soil testing, would help boost farmers’ productivity. He said the farm sector suffered because of the previous administration’s fixation on rice self-sufficiency, to the detriment of other crops.
(With Catherine N. Pillas)