The Department of Finance (DOF) said the conflict happening in Marawi City in Mindanao should not derail the growth program and the government’s push for the buildup of infrastructure in the country.
In Hong Kong Finance Secretary Carlos G. Dominguez III told the international business community that the growth program anchored on massive investments is on track despite the disruption caused by the Marawi conflict.
“This event is not expected to be a continuing disruption. None of the major projects planned for Mindanao has been delayed.
“The general economic program is intact. Over the next few weeks, sustained action by our security forces is expected to substantially eliminate the threat posed by extremists,” Dominguez told the global business community gathered at the Hong Kong Chinese Enterprises Association and the Bank of China Forum.
According to him, the government is forging ahead with the program to reshape the Philippine economy, attract investments, create jobs and lower the poverty rate.
He also said President Duterte has dealt decisively the armed assault in Marawi City to prevent extremist forces from making Mindanao their “main theater” for terrorism in the region.
“The battle for Marawi is a decisive one. Had government failed to respond firmly, the extremists might have succeeded at establishing a rallying point for the stray bandit factions in the area.
“The defeat of the militants is a costly one for them. Whatever terrorists designs there might have been for Southeast Asia, the main theater can no longer be Mindanao,” Dominguez said.
Citing the Philippine Constitution, he said the imposition of martial law could last only 60 days. Beyond that, an explicit authorization from Congress is required.
“President Duterte has indicated he will lift martial law as soon as peace is restored,” he added.
Dominguez also said the government has initiated peace talks with mainline insurgent groups, like the Moro National Liberation Front (MNLF) and the Moro Islamic Liberation Front (MILF), to help attain lasting peace in Mindanao.
At the forum, Dominguez thanked the Bank of China for demonstrating its confidence in the Duterte administration’s economic strategy and in being the first to offer a credit lines to fast-track the plan to modernize the country’s logistic and infrastructure system.
“Since then, other financial institutions have fallen in line with their own credit-line offerings. They will have to contend with the generous rates of the Bank of China, a measure, I think, of the high esteem you hold for our ability to maintain fiscal discipline and our ability to keep the projects efficient and aboveboard,” he said.
Dominguez stressed that alongside an infrastructure-development program requiring some $170 billion, or P8.4 trillion, over the next five years, the plan is to spend big on education, health and other forms of human-capital formation to build a solid fiscal buffer to keep the economy strong amidst the uncertainties.
“Over the past few years, the Philippines emerged as an increasingly important node of growth for the global economy.
“We are seeking to sustain a growth rate of at least 7 percent through the medium term. That growth level will be driven, to a large extent, by the massive infrastructure modernization program,” Dominguez said.