June 15, 2023 – The National Economic and Development Authority (NEDA) assured Asian investors that the Philippine government will continue to prioritize infrastructure development in the country, while also maximizing the benefits of a large consumer base and demographic dividend. 

NEDA Secretary Arsenio M. Balisacan emphasized the importance of funding and investing in the 194 ‘Build-Better-More’ Infrastructure Flagship Projects (IFP) of the Marcos Administration. He further encouraged businessmen to become invaluable partners in achieving development goals. 

“The private sector serves as the engine of growth and innovation in the Philippines and by leveraging its financial muscle, technological expertise, and managerial capacities, we can deliver better public services, lower consumer prices, and improve the quality of life for all Filipinos,” said Balisacan during the Philippine Economic Briefing in Singapore on June 15, 2023. 

The nation’s chief economist also stated that President Ferdinand R. Marcos Jr. recognizes the immense potential of engaging the private sector. Thus, he has instructed the economic managers to pursue Public-Private Partnerships (PPPs) as a means of financing the development of critical infrastructure in the country. 

“The Marcos Administration is promoting PPPs as a mode of financing the IFPs and other high-impact projects in physical, digital, and social infrastructure. These PPP opportunities encompass investments in transport and road projects, property development, health, water and sanitation, ICT, solid waste management, energy, and tourism,” said Balisacan. 

Furthermore, the Marcos Administration has committed to sustaining annual spending on infrastructure at around 5 to 6 percent of GDP from 2023 to 2028. This is equivalent to approximately USD20 billion to USD40 billion per year. Many of these projects will focus on fundamental infrastructure that serves as a growth driver, enabling economic opportunities and job generation.  

During the fourth meeting of the NEDA Board, the government approved 194 IFPs worth approximately USD148 billion or PHP8.3 trillion. Most of these projects focus on enhancing physical and digital connectivity, as well as managing water resources. More than half of the projects will be funded through Official Development Assistance (ODA), while 30 percent will be financed through PPPs.  

Balisacan said that these projects will enable the government to achieve its goal of addressing both short-term challenges and long-term constraints to job creation and poverty reduction. These projects are aligned with the Philippine Development Plan 2023-2028, which underscored the importance of infrastructure in addressing the obstacles to business investment and the creation of high-quality jobs.  

Furthermore, the NEDA chief encouraged the business sector to finance these projects by highlighting the advantages of investing here in the Philippines. He emphasized that the Philippines’ vast consumer base of 110 million people and its country’s demographic dividend are crucial factors to consider when investing.  

Balisacan also noted that the country has been included in the Regional Comprehensive Economic Partnership, which is the world’s largest free trade agreement. This agreement enables businesses access to more sources of inputs, thereby promoting economic growth. 

“The Philippines is indeed more open for business than ever before, and we eagerly anticipate working with you to create a more prosperous, inclusive, and resilient economy,” he said. 

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