MS. OSEÑA-PAEZ: Magandang umaga, Malacañang Press Corps, and welcome ulit sa ating press briefing ngayong Biyernes, January 26.

The 13th National Economic and Development Authority or NEDA Board Meeting chaired by President Ferdinand R. Marcos Jr. discussed and approved projects that are vital to the administration’s goal of social and economic transformation in the country. These include projects that will support infrastructure initiatives, promoting tourism, improving economic activity in Northern Mindanao and supporting the development of enterprises within the agriculture sector. More importantly, NEDA presented the Philippine Development Report for 2023 during the meeting which President Marcos found very encouraging.

And to give us updates on what transpired during the meeting, we have with us NEDA Secretary Arsenio M. Balisacan. Good morning, Secretary Balisacan.

NEDA SEC. BALISACAN: Good morning, Daphne. Good morning, everyone.

We begin 2024 with significant momentum having secured the approval for projects that form part of our journey toward achieving social and economic transformation.

And reporting on our progress in implementing the Philippine Development Plan 2023 to 2028, I am pleased to provide the following updates from the 13th NEDA Board Meeting: First, the NEDA Board approved the negotiated parameters, terms and conditions or PTCs of the upgrade, expansion and operations and maintenance of the Laguindingan International Airport in Northern Mindanao. These PTCs were negotiated between the government represented by the Department of Transportation and the Civil Aviation Authority of the Philippines and the original proponent of the unsolicited Public-Private Partnership or PPP project. Approved in July 2023, the project supports the government’s efforts to enhance regional development and promote tourism in Northern Mindanao and its neighboring regions.

Following the approval of the modified PTCs, this 12.75 billion pesos project, will now undergo the comparative challenge process following the rules under the newly enacted Public-Private Partnership Code. Prospective challengers will be given 90 days from the publication of the invitation for comparative proposals to submit their proposals. The original proponent will be given 30 calendar days to match responsive comparative proposals. If no comparative proposals are received, the project shall be awarded to the original proponent by May 2024.

Second, the NEDA Board approved the request to change the timeline and scope of the Department of Trade and Industry’s Rural Agroenterprises Partnership for Inclusive Development and Growth (RAPID) Growth Project. The RAPID Growth Project amounting to 4.78 billion pesos aims to support 78,000 farming households by expanding both on-farm and off-farm activities and generating employment opportunities in rural areas.

The project seeks to support the growth and development of micro, small and medium enterprises with strong backward linkages to farmers and to provide them access the needed capital to sustain their businesses. It will also create business partnerships with MSMEs and farmers to ensure a steady source of high-quality raw materials for the production needs of agroenterprises.

Finally, the Philippine Development Report (PDR) 2023 was presented to the President and members of the Cabinet. A year ago, the Philippine Development Plan 2023 to 2028, the country’s medium term development roadmap was launched. In line with the Executive Order No. 14, Series of 2023, the National Economic and Development Authority monitored the plan’s implementation with inputs from various government agencies. A year after the launch, we produced the Philippine Development Report.

The PDR contains updates on the major programs, projects and policies implemented in 2023. As an evidence-based report, the PDR evaluates our country’s performance based on the outcome indicators identified in the PDP and tracks the progress of bills under the Marcos administration’s legislative agenda.

At the same time, the PDR is a forward-looking document that considers and anticipates both internal and external developments and challenges or observed scenarios. It identifies the lessons we have learned and this translates into urgent priorities and plans of action to ensure we remain on track to meet our goals by 2028. The PDR 2023 will be released to the public by the end of this month.

In summary, the Philippine economy generally performed well in 2023. Though we recognized the magnitude of the challenges we faced and which continue to persist, our experience the past year has led us to acknowledge the importance of reinforcing further our fiscal position to sustain rapid and inclusive growth in the coming years, expanding the country’s economic pie by attracting more job-generating investments, ensuring food security to temper inflation and keep prices affordable, urgently addressing growth fundamentals and improving access to quality education so that our children are not left behind, building sustainable communities through game-changing infrastructure projects and ensuring a responsive and accessible government through widespread digitalization.

For 2024, we aim to achieve a full year GDP growth rate of six and a half to seven and a half percent to generate economic opportunities, increase employment, raise per capita incomes and elevate our economy to upper middle-income country status by 2025. This growth will be supported by low and manageable inflation, a labor force with access to more and better jobs, stronger fiscal position in the form of lower deficit and debt as a share of gross domestic product, and an increasingly dynamic, innovative and competitive economy.

The Marcos administration remains steadfast in carrying out its transformation agenda as we expedite the approval of game-changing projects and ensure that all of the government’s programs and policies support our unified pursuit of a “Bagong Pilipinas”.

Thank you.

MS. OSEÑA-PAEZ: Thank you, Secretary Balisacan. And now, questions from the press corps. Ivan Mayrina, GMA7.

IVAN MAYRINA/GMA7: Hi, Secretary. Iyong target ho natin na six and a half to seven and a half GDP full year by 2024, saan ho natin nakikita manggagaling ito? Which sector of the economy?

NEDA SEC. BALISACAN: It’s going to be broad-based. We should see already for example the impact of the improvements in access to inputs, infrastructure in agriculture. We should see also a much more improved services sector given that we have fully transitioned already from the restrictions associated with COVID-19. We should also see a revival of our manufacturing, at least start of growth there. We know the challenges, the world economies still is not as good as we wanted but we do think that there are growth opportunities if we can move our… things like, you know, the government has passed a number of reforms and we are now operationalizing these reforms.

For example, we … the Public Services Act IRR is now being implemented, that should spur investments in areas like the tollways, airports, even in the digital and telecom services; the Public-Private Partnership Code or PPP Code was passed by Congress late last year and signed by the President; the implementing rules and regulations of the PPP Code are now being worked out and we hope to release that by March this year.

And with respect to infrastructure, again, despite the challenges we’ll keep expanding our investment there by ensuring that infrastructure development will get at least five to six percent of our GDP to sustain the momentum that we have already started.

MS. OSEÑA-PAEZ: Gerg Cahiles, CNN Philippines. Oh, sorry follow-up? Go ahead, Ivan.

IVAN MAYRINA/GMA 7: Having said all those opportunities for growth, ano naman ho kaya iyong mga new challenges that the economy will be facing this year?

NEDA SEC. BALISACAN: I think the foremost is still with the global economy, while there have been some improvements lately we know that many of the advanced countries are still struggling with the recovery. Of course, the geopolitical tensions are still there – we hope that it will not spread to more areas, you know, what’s happening in the Middle East.

We recognize in our efforts that inflation is still a challenge for us. We have made substantial progress, we’re moving into the target of two to four percent. But there are areas of that headline inflation where we need to work harder – for example, the food inflation. And with the El Niño that is there; fortunately, the El Niño was not as bad as we projected or thought it would be six months ago, our data indicate to us that now the El Niño, the long spells of drought will not extend to the latter part of the second quarter but I think by the first quarter mostly so. There are those challenges that we need to confront both internally and externally.

IVAN MAYRINA/GMA 7: Last na lang promise, Secretary. As Socioeconomic Secretary, sir, what is your position on Charter Change specifically amending the economic provisions?

NEDA SEC. BALISACAN: I have always taken the view and I’ve been consistent with that view for a long time that we need to make the country more competitive, we need to eliminate those restrictions, unnecessary restrictions on foreign investments that we have a better chance of attracting foreign investments because as we have seen by the last couple of decades now most of those big investments are going to our neighbors which you know we could have that opportunity to draw them to our shores but those restrictions are seen as impediments, constitutional restrictions on foreign investments.

So, I think that our President has mentioned that the Constitution was designed for a period that perhaps not responsive to the current states of the world now. So, we need to address those, remove those but also underscoring that apart from eliminating those restrictions we need to do also a lot of other things because that’s not the only problem that we face as a nation when it comes to economic development – we need to address the ease of business issues that are always mentioned, the high cost of certain inputs like energy and the predictability of our policies, regulatory or otherwise.

So, there are things that we need to do at the same time so that we can get the full benefits of removing those economic restrictions in the Constitution.

MS. OSEÑA-PAEZ: Okay. Gerg Cahiles, CNN Philippines.

GERG CAHILES/CNN PHILIPPINES: Sir, good morning. Sir, before I go to my main question, just a follow up on the Charter Change. While since you are pushing or the administration is pushing for the Charter Change and remove the unnecessary restrictions to attract more investments but seems our lawmakers are not agreeing on the mode of changing the Constitution. So if it is very necessary, may we get your reaction to that, sir, because if it is necessary, it will affect our economy and our politicians are not agreeing on the mode so what will be its impact? Thank you.

NEDA SEC. BALISACAN: Well, I hope that they can agree very soon because we don’t also want those uncertainties because one of the factors that inhibit investments, whether it’s domestic or foreign, is the state of uncertainty. So, we hope that our leaders will come to a common position quickly so that we can move on.

GERG CAHILES/CNN PHILIPPINES: Sorry. I’ll go to my main question, sorry. Sir, you’re talking siguro iyong inflation rate to be lower this year but the DTI has recently approved price increases in some goods particularly soap, canned sardines, powdered milk and they are studying the proposal to increase prices sa bottled water, instant noodles, bread and other canned products. So, what will be its impact?

NEDA SEC. BALISACAN: What DTI is referring to is the suggested retail price ‘no. It’s a suggestion, it doesn’t have to be necessarily the actual prices that will prevail there but it’s a guide, a good guide for market players ‘no. But nonetheless, of course you don’t expect prices to remain constant, there’s these some changes, some upticks. Recall that what we are targeting is two to four zero percent, it’s not zero percent. So, you know, two to four percent means that there are increases in prices but not to the extent that it will substantially erode purchasing power of Filipinos particularly the incomes of the poor.

MS. OSEÑA-PAEZ: Thank you. Alvin Baltazar, Radyo Pilipinas.

ALVIN BALTAZAR/RADYO PILIPINAS: Secretary, good morning po.

NEDA SEC. BALISACAN: Good morning.

ALVIN BALTAZAR/RADYO PILIPINAS: Sir, how many jobs do we foresee to generate amid our target na 6.5 percent GDP growth for 2024? How many jobs do we foresee?

NEDA SEC. BALISACAN: Oh, how many jobs? I can’t tell you the exact number now, but we are seeing the unemployment rate decreasing to quite already low levels in the November release of the Philippine Statistics Authority. But what we are aiming to aim at with this faster growth, with this growth of six and a half to seven and a half percent is not just having more jobs. It’s also having better and quality jobs, jobs that are enough to generate sufficient means for meeting basic needs.

So, iyan iyong hinahanap natin but that would require really nothing less than investments because for labor to be paid higher they need to be more productive right? And more productive means we need to have those investments to go along with labor because even if you have laborers if you don’t have those productive investments in manufacturing, in utilities, in services then you don’t get jobs. Hopefully, the informal sector will also diminish as we get all these high-quality jobs.

MS. OSEÑA-PAEZ: Okay. Jean Mangaluz, Inquirer.net.

JEAN MANGALUZ/PDI: So, the President recently stated that he was against the foreign ownership of vital assets like land and media. So, what assets would be favorable for foreign ownership should Charter Change push through?

NEDA SEC. BALISACAN: Education, I think is long overdue from my perspective. I think we have missed a major opportunity to have the country as a base for higher education of many countries that have looked for branch campuses outside of their country. I’m talking about the UK, Europe, America, and Australia, looking for campuses in Asia and Southeast Asia. And where did they go? They go to countries like Malaysia, Singapore, Thailand, and Vietnam and we would have been the best candidate, because our educational system is something very close to the US, very close to the western countries, and we get the language. But we missed it because we won’t allow ownership of foreigners in the area of education. The same is true in the practice of the profession, extremely difficult to employ professors coming from other countries if those professors are bringing in the skills that we lack.

So, you know, we want to tap engineers, the best engineers who can bring to teach in our schools. But could you get them? I have many friends, who have spouses at ADB, who just even want to practice teaching at the University of the Philippines. And we have Ateneo, but they could not, they had difficulty getting that permission because of these restrictions to practice the profession. So, ang dami na natin ano.

Of course, land. I myself, I would not be in favor of opening that foreign ownership because of the obvious reason – once you do that, then ordinary Filipinos like you and me, would have difficulty owning lands because that will jack up the prices of land. And there are some countries especially those that have surplus lands, but we are a country that doesn’t have those conditions.

JEAN MANGALUZ/PDI: A tangent question. What will the transport crisis do to the economy? Can you help us visualize it especially since some groups here says that the modernization plan would lessen the modes of transport?

NEDA SEC. BALISACAN: A bad infrastructure. What we have now, is the very reason why we are launching this Build, Better More program, it’s an attempt, it’s an effort to bring the level of our infrastructure to those of our neighbors, to reduce the cost of doing business. Of course, the traffic congestion makes the cost of operating businesses and in doing our ordinary lives. So, you lose a lot of opportunities, whether these are employment opportunities or even learning opportunities in having those bad, poorly provided infrastructure.

MS. OSEÑA-PAEZ: Secretary Balisacan, the President—I will just repeat it again. He found the Philippine Development Report quite encouraging. He said that, the numbers that you showed, showing that the reforms and the policy changes that were put in place early on in this administration are starting to take effect. We are on the right path, right direction. What do you think is needed to stay on track and to fast-track our path to Bagong Pilipinas?

NEDA SEC. BALISACAN: We have to obviously sustain the momentum. We have had many histories and experiences in the past where we start and then stumble along the way. I don’t think that is something that we want to see this time. We have, as I said earlier, we have missed the boat many times in the past, and we don’t want to miss it again. And so, I think the commitment of the cabinet, the commitment of our President in ensuring that what we have outlined as strategies, programs and projects all the way to 2028 will be consistently pursued. And the reason for our reporting in this annually, providing a report, so that we are able to track where we are and we would know where we are; if we have deficits, we would know where we are making progress and take the lessons of experience in implementing the Philippine Development Plan so that we can ensure that the goals we have set for ourselves – the economic growth, poverty reduction and employment generation will be realized.

And we are pleased to report nga, that the first year of implementation has been quite a success despite the challenges because we have a lot of external and internal challenges, but we did manage to do well, at least comparative to our many neighbors. As you can see the performance of the economy is better than most economies in Asia. We are one of the best-performing economies now in Asia and we need to sustain that to be able to reduce poverty and achieve the ideals of the Bagong Pilipinas that our President is pushing.

MS. OSEÑA-PAEZ: That’s great. Any more questions, no more? We have to end this briefing. Thank you so much for the positive reports and we look forward to the release of the Philippine Development Plan later this month, at the end of the month.

NEDA SEC. BALISACAN: Yeah, you can access that Philippine Development Report by the end of this month in our website, as well as on the website of …

MS. OSEÑA-PAEZ: PCO. Thank you so much, Secretary Balisacan. And maraming salamat, Malacañang Press Corps. This concludes our Press Briefing today. Good afternoon.

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