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Improved Economic Landscape, Inclusive Development

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Improved Economic Landscape, Inclusive Development Page 1 IMPROVED ECONOMIC LANDSCAPE, INCLUSIVE DEVELOPMENT No. 7 Series 2015 IMPROVED ECONOMIC LANDSCAPE, INCLUSIVE DEVELOPMENT FRANKLIN M. DRILON Senate President, 16th Congress of the Senate of the Philippines MBC IMAGES/ R. DELROSARIO INDEED, MUCH HAS CHANGED IN THE PAST FIVE YEARS. The Philippines has become a rising star in Asia. It is now in the radar of the business and financial community because of its remarkable economic growth, investment grade ratings, strong macroeconomic indicators, political stabil- ity, and the earnest pursuit of good governance. The optimism and confidence of the internation- al community are reflected in the significant im- provements in our Global Competitiveness and Ease of Doing Business ratings. Your Congress has been an active partner in the pursuit of difficult but meaningful reforms for the past five years. For the past five years, the Senate has never wavered in its commitment to help lay the foundation of a healthy economy, and create an environment marked by political MBC IMAGES/ R. DEL ROSARIO stability and strong institutions, and equitable dis- tribution of social services. We have always underscored the importance of transparency and accountability, developing our human capital and building world-class infra- structure to attract much needed foreign invest- ments and generate jobs for our people. On 6 August 2015, Senate President Franklin M. Drilon was the INSTITUTIONALIZING GOOD GOVERNANCE guest speaker at the annual membership meeting organized by During the first SONA of the President in 2010, he the Makati Business Club at The Peninsula Manila, Makati City. cited the excesses of the GOCCs. In response, Published here are excerpts from the keynote speech . and on our own initiative, I wrote and worked www.mbc.com.ph Page 2 IMPROVED ECONOMIC LANDSCAPE, INCLUSIVE DEVELOPMENT on the enactment of the GOCC More than 80,000 Filipino seafar- smoking in cigarette packs. Governance Act and made state- ers faced the threat of losing their The Responsible Parenthood and owned enterprises instruments of jobs in European Union-flagged Reproductive Health Law would national progress, instead of being vessels because of our failure to not have been passed if not for milking cows. In 2013, the GOCCs comply with the international con- the active intervention of President remitted a total of P28 billion in div- vention on seafarers. We in Con- Aquino. It was one of the most dif- idends to the national coffers, and gress took it upon ourselves to pass ficult reform measures enacted by last year in 2014, over P32 billion. the MARINA Law. this Congress. The law, as you are Cases in the Sandiganbayan Last year, the European Union aware, provides universal access take five to seven years to resolve. threatened to ban Philippine ma- for medically safe, effective, legal, To enable the speedy disposition rine and fisheries products. This affordable, and quality reproduc- of corruption cases, we amend- threatened the livelihood of our tive health services, information ed the Sandiganbayan Law, with poor fisherfolk. Congress respond- and education. much input from former Ombuds- ed by amending the Fisheries man Sonny Marcelo. Code to comply with internation- ENHANCING EDUCATION We amended the Anti-Money al standards and strengthen our The Enhanced Basic Education Laundering Act to expand the list of laws against illegal, unreported, Act is now the cornerstone of our entities required to report covered and unregulated fishing. This also learning system. The K to 12 pro- and suspicious transactions. We also redounded to the benefit of Filipi- gram— which covers kindergarten, authorized freeze orders and inquir- no traders who can now export to six years of primary education, four ies on bank deposits upon order of EU markets at zero tariff using the years of junior high school, and two the court based on ex parte petition Generalized System of Preferenc- years of senior high school—would by the AMLC. es Plus (GSP+) of more than 6,000 provide our students sufficient time products such as processed fruits, to master concepts and skills and STIMULATING THE ECONOMY textiles, chemicals, and coconut develop stronger fundamentals On the initiative of the Senate and and marine products. I am proud for college education. K to 12 also the House of Representatives, we to say that due to Congress’ swift aligns our basic education pro- passed the Philippine Competi- action in passing the law, the Phil- gram with those of other countries. tion Act. For more than 20 years ippines is the only ASEAN country We passed the Iskolar ng Bayan the bill was stuck in Congress. Fi- to be accepted in GSP+. Act, which accords the top 10 nally, we now have a competition public high school graduates with policy that outlaws and penaliz- IMPROVING HEALTHCARE scholarships to State Universities es anti-competitive agreements, For more than 10 years, our excise and Colleges of their choice. This abuse of dominant position, and taxes on tobacco and alcohol complements the Fast-Tracked anti-competitive mergers and ac- favored certain brands. We re- Science & Technology Scholarship quisitions. sponded with the passage of the Act which we passed in 2013. In 2013, the President asked Sin Tax Reform Law, which, by the This week we also passed the Uni- Congress to “amend the Cabo- way, I sponsored in the Senate fied Student Financial Assistance tage Law in order to foster greater and won by one vote, or a vote of System Act (UNIFAST). This will har- competition and to lower the cost 11 to 10. That one vote made the monize and expand all student of transportation for our agricul- difference in levelling the playing financial assistance programs for tural sector and other industries.” field and in generating an addi- tertiary education in both public We responded by amending the tional excise tax collection of over and private institutions, whether Cabotage Law to achieve these P50 billion last year. P37 billion of nationally or locally funded. goals. this incremental revenue was allo- We also passed the Ladderized On our own initiative, we allowed cated to enroll 15 million indigent Education Act, the Open Learning the Full Entry of Foreign Banks by families in PhilHealth and cover our and Distance Education Act, and authorizing them to acquire and senior citizens, which we required the Open High School System Act invest up to 100% of the voting under the Amendments to the Ex- to enable those who have less in stock of a domestic bank. My re- panded Senior Citizens Act. life to have more access to good cent conversation with Bangko The Graphic Health Warning Act education. Sentral Governor Tetangco indi- compelled cigarette companies I attribute this harvest of remark- cated that there are four foreign to graphically demonstrate in cig- able laws first, to the political will banks which indicated their in- arette packs the deadly effects of of President Aquino, and second, terest, and in fact, are putting up smoking. For years, this legislation, largely to the harmonious rela- branches here. We also enacted again, was stuck in the legislative tions, marked by mutual trust and a law that allowed foreign inves- mill. Finally, we are able to pass this respect, with our counterparts in tors to own up to 60% of the voting law which will require the graphic the House of Representatives. As stock in rural banks. illustration of the deadly effects of you are aware, the leaders of the Page 3 IMPROVED ECONOMIC LANDSCAPE, INCLUSIVE DEVELOPMENT Page 4 IMPROVED ECONOMIC LANDSCAPE, INCLUSIVE DEVELOPMENT Senate and the House have been this will redound to the benefit of ON THE 2016 GENERAL holding regular monthly meetings every Filipino. APPROPRIATIONS ACT to define and push forward our Since we are an archipelag- Next week we will start examining legislative agenda. ic country, we need to improve the 2016 National Budget. We will physical and digital connectivity pass this before December 31 as MOVING FORWARD to minimize transaction costs. The we have done in the past five years However, the time is not ripe to Senate passed on third reading so that the government will not congratulate ourselves and pat the law creating the Department operate on a reenacted budget. each other’s back. The road to our of Information and Communica- I wish to reiterate that pork bar- goal for inclusive development is tions Technology (DICT) to de- rel is a thing of the past. The 2016 long. We must sustain the momen- velop ICT systems and enhance National Budget will be a peo- tum, build on our gains and contin- communication services. ple-centered budget. We would ue the pursuit of reforms. The creation of the DICT will provide the social services sector Even if the economic fundamen- improve the government’s re- its highest budget allocation in the tals are now strong and the out- sponse to the challenges and is- history of our country: P1.1 trilllion, look is favorable, I assure you that sues posed by the rapid develop- or 36.8% of the proposed budget. the Senate remains relentless in ments in ICT, while harnessing the On social protection, we will al- passing reform measures that will sector’s potential to be one of locate P62.7 billion for the Condi- ensure a better business climate. the strongest drivers of economic tional Cash Transfer that will ben- In the last regular session of the growth in the Philippines. efit 4.6 million households. We will 16th Congress, we will pass the For efficiency and a smaller fund the supplementary feeding Customs and Tariff Modernization budget footprint, the DICT will be for 2.15 million daycare children Act that will introduce full auto- created by merging or abolish- and pension for 1.18 million senior mation of customs procedures, ing existing ICT-related agencies.
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