WELCOMING REMARKS By Mr.

Ian Porter President, Australian-New Zealand Chamber of Commerce of the Philippines Country Manager, Cardno Ladies and gentlemen, partners in the public and private sectors and media, representatives of our partner business associations, corporate and government sponsors, diplomatic colleagues, friends watching on our live webcast, I have the distinct pleasure this morning on behalf of the Joint Foreign Chambers of the Philippines to welcome all of you to the third annual Arangkada Philippines Forum. My name is Ian Porter. I am president of the Australian-New Zealand Chamber of Commerce of the Philippines. The Joint Foreign Chambers of the Philippines launched Arangkada Philippines three years ago in December 2010 with DTI Secretary Domingo and PEZA Director General de Lima at the DTI offices in Makati. Because Secretary Domingo, who delivered the opening remarks at our two previous fora is abroad today, in his place Director General de Lima is honoring our forum with her opening remarks. We are honored that DTI is so well-represented today by quite a number of senior officials. Each Arangkada Philippines forum has had a different theme. In 2012 it was Move Twice as Fast! In 2013 it was Realize the Potential! And this year the theme is More Reforms = More Jobs! More jobs is the top priority of every government of Prime Minister Abott in Canberra, of President Obama in Washington, of Chancellor Merkel in Berlin, and President Aquino in Manila. In fact President Aquino in his 2013 State of the Nation Address told us that We cannot wait for the trickle-down effect.What we call inclusive growthis the principal that drives every initiative, every action, every decision of your government.
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Inclusive growth means better lives for the middle and lower classes, who comprise the vast majority of the population. Inclusive growth is very difficult to achieve. Even most developed countries do not have it. The high statistics of poverty and unemployment and underemployment in the Philippines stand out in stark contrast to recent high GDP growth, high investment grade ratings, and the fast-accumulating wealth of the few Filipinos on the annual Forbes magazine list of the richest in the land. Low poverty and unemployment levels in neighboring economies demonstrate that they have achieved considerably more inclusiveness than the Philippines. Creating More and Better Jobs, to borrow the title of a very important World Bank report we will hear more about this morning, is easier said than done, but it can be done, as our neighbors have shown. One of the biggest advantages the Philippines has is its large population, the socalled demographic dividend. The Philippines within decades will have a larger population than Japan and Russia, becoming the worlds 10th most populous state with more than 140 million citizens. But without good jobs, this demographic dividend could be a demographic liability. Jobs are created by the private and public sectors working closely together. The private sector brings the investors, capital, technology, training, domestic and foreign markets, and logistics that combine into demand for managers, supervisors, and most of all workers who will receive steady income. The public sector must create an enabling environment for jobs, through supporting an educated and healthy workforce, providing efficient infrastructure, establishing and implementing supportive regulatory regimes, preventing crime and insecurity, and otherwise making the environment stable and welcoming for investment in agriculture, business processing, manufacturing, mining, tourism, and other sectors where the Philippines has high potential.
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The private sector is the great engine of job growth, while the public sector is the great enabler of job growth. The two must move in parallel directions in order to have high economic growth and falling unemployment and underemployment. Unfortunately, in the Philippines today the public and private sectors are not sufficiently moving in parallel to make growth more inclusive. GDP growth at 7.2% is too low. It should be 8-9%. Overall investment at 19% of GDP is too low. It should be 30%. Foreign investment at $4 billion is too low. It should be $8-9 billion. Infrastructure is inefficient and we again face the prospect of electricity shortages. Business costs are unnecessarily high, largely because the public sector has not created a sufficiently competitive and enabling environment. The inescapable conclusion is that the Philippines will not have More Jobs! if it does not have More Reforms! President Aquino has started important reforms, and positive results are beginning to be evident in higher economic growth the highest of the ASEAN-6 in the 2010-2013 period -, increasing foreign investment, the best international credit ratings, fastimproving competitiveness scores, and growing international awareness that the Philippine economy is gaining ground. But we would all agree that there is no reason for complacency and that more reforms are needed. What if the next president is not a reformer? We all know the sad history of poor governance in the Philippines. From the viewpoint of the foreign investor, we want to
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know that current reforms are irreversible and to see an electorate demanding a higher standard from candidates who enter the electoral contest next year. Going back to the bad days would be the worst thing to happen to the future of the Philippines. Today we will learn more about the ongoing reforms from 22 speakers and hear ideas for more reforms, all targeted on the goal of increasing investment, creating more jobs, and achieving more inclusive growth. It is now my pleasure to introduce the speaker who will give our Opening Remarks, one of the great public sector managers of the Philippines, a lady many of us know well, and all of us admire. Please read the details of Director General de Limas biograph y in your program. Suffice it to say that she has spent a life in public service, has enjoyed the confidence of four successive presidents in her current position as the head of the Philippine Export Zone Authority, and that in international business circles her name is synonymous with successful foreign business in the Philippines. Please join me in welcoming Director General Lilia de Lima to address us.

The Arangkada Philippines Project (TAPP)

www.arangkadaphilippines.com

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The Arangkada Philippines Project (TAPP)

www.arangkadaphilippines.com

American

Australian-New Zealand

Canadian

European

Japanese

Korean

Philippine Association of Multinational Companies RHQs/RoHQs