Rizal Commercial Banking Corp. chief economist Michael Ricafort said the government is on the right track in reducing the prices of goods and services, banning Philippine offshore gaming operators (POGO), and securing foreign investments through sustainability or green policies.
This was his assessment of the government performance report that President Ferdinand “Bongbong” Marcos Jr. presented during his third State of the Nation Address on Monday.
In an exclusive interview, Ricafort said the government’s lowering of the rice tariff from 35 percent to 15 percent could result in a 20-percent reduction in the price of imported rice.
“What is important to discuss are those things that are felt by everyone and that have an immediate, direct impact,” he said.
Ricafort was also glad that Marcos raised farm irrigation projects to boost local rice production which should further ensure a cheaper price for the Filipinos’ staple food.
Marcos said that 45,000 hectares of farmland will be irrigated after the government has repaired irrigation facilities, including about 10,000 hectares in North Cotabato and Maguindanao del Sur once the Malitubog-Maridagao Irrigation Project is completed.
Ricafort especially welcomed Marcos’ ban on POGOs which is expected to cut down on incidents of human trafficking, money laundering and murder.
“It’s investing in the financial and intangible things in the country. There should be no compromise in upholding the law,” he stressed.
Ricafort said the government’s environmental, social, and governance (ESG) policies will help the country attract foreign businesses and mitigate losses from a possible war with China.
ESG policies and investments aim to mitigate climate change that causes extreme floods, wildfires and disease. They also encourage renewable energy to lower energy prices for households and businesses.
“We have seen governments and businesses that comply with ESG standards — that means good business. If there’s a risk of war, would they be able to make money?” he said.
“Of course, they have to partner with other countries so ESG investments will give some assurance. It’s really about planting the seeds and there will be harvests at some point,” he pointed out.
Marcos had said that hydropower from the recently opened facility at the Jalaur River in Iloilo is now being explored.
Areas for improvement
Despite these accomplishments, Ricafort said the government could still improve the ease of doing business in the country to increase foreign investments in critical sectors.
“We’re competing with other countries like China and Indonesia so the ease of doing business is important. But there should be more specific points or actions to resolve longstanding issues,” he said.
Ricafort stressed that the specific measures should align with fundamental investment laws, such as the Public Services Act, which pertains to infrastructure in telecommunications, energy, and railways, and to allow full foreign ownership of businesses in the energy sector.
He said the government must maximize digital technologies to expand the agriculture sector.
“It’s really a matter of building a conducive business environment through incentives, for example, but they may be unsustainable. So, we must tap technologies like in agriculture, along with use of high-yielding seeds,” he said.