OPENING STATEMENT

 Carlos G. Dominguez

Secretary of Finance

            It is an honor to welcome Your Excellency, Foreign Affairs Minister Toshimitsu Motegi, and your delegation to the Department of Finance. We look forward to every meeting with senior cabinet members of our development partners. Our economy is moving at a fast pace and we are eager to keep this momentum through increased cooperation with Japan.

            Over the many years, Japan has been the Philippines’ leading source of official development assistance. This assistance has helped us complete some of the most vital infrastructure projects, beginning with the  Japan-Philippines Friendship Highway that links the whole archipelago.

            We appreciate Japan’s steadfast commitment to the Philippines’ development. Japan’s support, in fact, increased significantly over the past few years. Since President Rodrigo Roa Duterte assumed the presidency in July 2016, we have signed ten loan agreements with the Government of Japan. These loan agreements are to finance big-ticket infrastructure projects crucial to our country’s competitiveness.

        I am happy to inform Your Excellency that we have recently held an extremely productive high-level meeting in Hakone with our Japanese counterparts. This unique high-level mechanism for infrastructure development and economic cooperation expedites Japanese assistance to our Build, Build, Build program.

        Since 2017, this high-level committee has held nine meetings. Dr. Hiroto Izumi, Special Advisor to Prime Minister Shinzo Abe, chairs the Japanese panel. Through this mechanism, we have been able to fast-track Japanese assistance consistent with the “Fast and Sure” approach we have taken on the infrastructure modernization program.

       The high-level committee has shortened the approval process of our loan agreements to an average of 3 to 4 months. This demonstrates our shared commitment to work closely to ensure that the Filipino people get the benefit of these projects at the lowest possible costs and the soonest possible time. We are looking forward to the tenth meeting of this high-level committee in the island of Bohol in the Central Philippines where we have completed the Bohol-Panglao International Airport through Japan’s assistance.

        I would like to thank the Government of Japan for its support in the formulation of a master plan for the Subic Bay area and its surroundings. With the Memorandum of Cooperation for this commitment signed last month in Hakone, we look forward to Japan’s swift creation of the action plan for this project. Given what we have achieved in developing the Clark special economic zone, I am confident that the full development of Subic Bay will provide another important node for knowledge-based industries serving the whole of East Asia.

        As our ambitious Build, Build, Build infrastructure program accelerates this year, we see more opportunities for financing and technical support from the Government of Japan. We likewise look forward to continuing our comprehensive partnership with the Asian Development Bank with the support of incoming president Masatsugu Asakawa.

     The relationship between the Philippines and Japan has always been strong. We are proud of the economic gains we have achieved through this partnership. The Duterte administration has put in place game-changing policy reforms to fully unleash our economic potentials, including a comprehensive tax reform program, establishment of the national ID system, universal health care program, rice trade liberalization, among others. These reforms will further strengthen our fiscal and economic position.

    Our efforts have been rewarded by a BBB plus credit rating upgrade last year—the highest rating we have ever enjoyed. The implementation of our reforms to improve the country’s business climate also bore fruit with the Philippines’ 29-notch jump in the latest World Bank’s Ease of Doing Business report.

     We likewise have a demographic sweet spot—a very young and very well-educated population. In this sense, the Philippines and Japan can be demographic partners. With the median age of the Japanese population moving up to 48 years old while the median age of the Philippines stands at 24 years old, our young, technology-savvy workers complement Japan’s forward-looking enterprises, advanced research and marketing programs.

    We have also recently reduced the poverty incidence at a pace faster than our own expectation. Poverty incidence has already dropped to 16.6 percent in 2018 from 23.3 percent in 2015. We are on track to achieve our goal of bringing this down further to 14 percent by the end of the President Duterte’s term.

    The economic performance and exemplary governance are reflected in the approval rating of our decisive leader. In a recent opinion survey conducted by an independent research firm, President Duterte received an 87 percent approval rating—unprecedented for a head of state during the second half of his term.

       As we mark our own economy’s rapid progress, I look forward to more frequent consultations with the Government of Japan in the coming period.

       Thank you for the opportunity to meet with you and to discuss new areas for expanding our robust partnership. Again, I thank the people and the Government of Japan for being a steady force in our economic and development journey.