Do we have what it takes to hit 8%?

Do we have what it takes to hit 8%? | Daily Tribune

The Federation of Filipino Chinese Chambers of Commerce and Industry Inc. (FFCCCII) has issued a clarion call, urging the Philippines to aim for a sustained annual growth rate of at least 8 percent to ensure that economic expansion is sufficiently inclusive.

The Marcos government, urges FFCCCII president Victor Lim, should “choose ambition over accommodation” and “reject the notion that these targets — 5 percent to 6 percent in 2026, scaling up to 6 percent to 7 percent by 2028 — should be the limit of our national economic ambition.”

Lim points at Vietnam’s recorded 8 percent growth last year, a level, he underscored, that should be “the minimum viable ambition for a nation of our potential. The 8 percent goal is the ideal benchmark of transformative progress, because a steadfast and collective drive toward 8 percent is the critical, immediate step that will change our momentum and define this decade.”

Can the government, challenged as it is, hit that target?

This ambitious target might be dismissed as unrealistic, given current headwinds: inflation, geopolitical tensions, infrastructure gaps, and the chilling effect of corruption.

But the FFCCCII’s argument is precisely that accommodation of these challenges guarantees mediocrity. Achieving 8 percent is not about ignoring reality, but about fundamentally altering it through a collective, disciplined, and aggressive reform agenda. While extraordinarily difficult, it is achievable if met with strong-willed decisiveness.

The benchmark is not arbitrary. Vietnam’s consistent high growth, targeting 10 percent this year, demonstrates that rapid, inclusive expansion is possible within the region.

Vietnam’s success stems from its being perceived as a dynamic, disciplined, and reformist destination for global capital. This perception is built on tangible pillars — the very pillars the Philippines must reinforce and accelerate.

First, governance and investor confidence require a radical overhaul. The lingering shadow of corruption must be dispelled.

This means not just prosecuting the corrupt, but installing a systemic digitization of government processes (permits, tax filings, customs) to reduce discretionary human intervention.

The Anti-Red Tape Authority, for instance, must be empowered to genuinely crush bureaucratic hurdles.

Second, investment attraction must be the central macroeconomic strategy. This requires passing long-pending game-changing reforms to open key sectors fully to foreign direct investment (FDI), including retail, logistics, and renewable energy.

Matching Vietnam’s FDI necessitates competitive fiscal incentives, but more crucially, superior connectivity. Thus, the administration’s Build-Better-More program must shift into hyperdrive, prioritizing not just megaprojects but strategic linkages that lower logistics costs for all businesses, particularly MSMEs. Public-Private Partnerships (PPPs) should be streamlined to unlock massive private capital for infrastructure.

Third, human capital and productivity demand rigorous attention. An 8 percent growth rate cannot be sustained by cheap labor alone. It requires a workforce equipped for Industry 4.0.

This mandates a tripartite compact: the government aligning education curricula with future skills (digital literacy, advanced manufacturing); businesses massively investing in employee upskilling; and academia fostering innovation and research & development.

Simultaneously, health and social protection systems must be strengthened to build a resilient, productive populace.

Fourth, sectoral champions must be aggressively cultivated. The Philippines cannot rely solely on consumption-driven growth. It needs to become a powerhouse in high-value services (IT-BPM, finance, healthcare), agile manufacturing (electronics, electric vehicles), and sustainable agriculture.

This requires targeted industry roadmaps with substantive R&D support, export facilitation, and credit access. Tourism, a low-hanging fruit, needs a cohesive and world-class marketing strategy, coupled with improved airport and provincial connectivity.

The government must, once and for all, be serious about easing the country’s struggle with competitiveness in the regional tourism market due to high costs, logistical challenges, and relatively low returns on tourism investment compared to such neighbors as Thailand, Indonesia and Vietnam.

For 2026 and 2027, the path is clear but steep. The government must lead with a unifying, ambitious vision, translating the 8 percent goal into a detailed, inter-agency implementation plan with strict accountability.

Congress must be a partner with urgent legislative reform. The private sector must move beyond criticism and commit to large-scale, jobs-creating investments, embracing higher standards of corporate governance and productivity.

Labor and civil society must engage in constructive dialogue to ensure that growth translates into equitable gains.

The FFCCCII’s prescribed 8 percent target will be a test of the national will. Shall the Philippines be defined by its headwinds or its potential?

By choosing ambition over accommodation — by forging a disciplined, reformist, and collaborative path — the nation can shift its economic momentum.

The goal is not just a statistical target, but the transformative progress it represents: the rapid eradication of poverty, jobs creation, and the Philippines taking its rightful place as a dynamic leader in Asia.

Big question this. But seriously, can the Marcos government, particularly as it takes a leadership role as ASEAN chair this year, do it? Does it have a choice?