President Aquino Attends Forbes Global CEO Conference

President Benigno S. Aquino III on Wednesday said good governance gave the Filipino people a renewed outlook that paved the way for the country’s booming economy.

“We have shown them how government, run properly, can really affect changes in their lives and then this has enabled us to push reforms in a previously sacrosanct sectors of our economy,” President Aquino said in “A Meeting of Minds”, a one-on-one dialogue with Forbes Media Editor-in-Chief Steve Forbes at the closing of the 15th Forbes Global CEO Conference at the Grand Ballroom of Solaire Resort and Casino in Parañaque City.

“For instance, our Bureau of Internal Revenue—the tax collection agency—has been collecting more than double without any new tax laws from that which was previously gathered in the nine and a half years of my predecessor. This in turn has enabled us to embark on very ambitious programs like, for instance, the growth in spending in infrastructure. We project it will be about five percent of GDP by next year. It’s at four percent currently. That has opened up so much in the countryside and delivered a lot of various services to our people,” he said, adding that there have been “massive investments” in social services, including education and health.

He said his administration has this theme in the campaign “where there is no corruption, there will be no poor”.

“In essence, the people gave us a mandate; that mandate was used efficiently,” said the President.

“So it becomes a virtuous cycle of us delivering on the promises, the expectations rising, and then the optimism generating a more positive activity within the economy—both in terms of the growth of the middle class and also the confidence of those who have the economic clout to effect changes in our country,” he added.

The President also talked about the country’s business process outsourcing (BPO) industry, which he said is “currently worth US$19 billion” and “will reach US$25 billion by next year”.

“The beauty of it is, to a large degree, it is fueled by a very young and dynamic population and the only requirement for the BPO industry to a large degree is availability of talent and that means primarily where there are schools, they tend to be able to grow their industries… We have been very supportive primarily because these jobs that are created are inducing a lot of development in the countryside and at far greater rates than what was previously done by various other interventions,” said the Chief Executive.

“So, it seems that the Philippines has identified a niche and that we have the talent to be able to really populate and to really grow. So we are getting higher and higher up in the value chain, various other bank office functions are being transferred to us, we are getting in turn known by other countries that did not see us on their maps. So we think that this is an industry that has grown tremendously but still has so much potential, especially for all the other outlying areas besides the current hotspots of Manila, Davao, and a lot of other urban areas,” said the President.

President Aquino also discussed the government’s effort to fight corruption, even citing the impeachment of a Supreme Court chief justice.

“I think our people are convinced that where previously there were people or sectors or groups beyond the pale of the law, now everyone is being made to account for their actions—or whether it was incorrect or illegal or unlawful. Now, that was considered not a possibility previously, so we are very serious,” he said.

On the security side, President Aquino admitted that the country has problems like other countries but the government is not stopping efforts to make the Philippines as crime-free as possible.

“We admit, we have problems, but I don’t think our problems are disproportionate to any other country of our size and our particular status. Most of the kidnappings happen in the part of the country, the southern part of the Philippines, where we are in the process of trying to forge a peace agreement with the major secessionist group. And it has already reached a stage that there is a law that will implement all of the agreements, which is pending before our legislature. Hopefully, it gets to be passed soon, so that they can demonstrate a difference of governance that can be wrought—a difference of system that they want to implement there,” he explained.

“We are in the process of modernizing both our armed forces and our police and getting them the equipment, the training, and the necessary personnel to effect the security considerations for this country. So, again, it will be wrong to say that there is no crime in the Philippines. But I think our crime situation is being addressed,” said the President.

“There has been quite a substantial reduction of what they call ‘index crimes’, but we are not stopping our efforts to make us as crime-free as possible. But we do have the same threats as anybody else—drug cartels trying to penetrate our country, either to sell it to us or as transshipment points; the new white collar crimes of identity theft,” he added.

President Aquino said that with the country’s improving economy, there are many opportunities for foreign companies to invest in.

“Well, we started out about a billion; it is now about six billion—the last time of reckoning—a 600 percent growth. And I think I keep hearing comments from investors, especially foreign ones, who are saying ‘we should have joined you when you started.’ So, it is not too late. There are so many opportunities in this country. We have so many potentials that have yet to be tapped in so many different sectors. So, I guess, in a sense there will be less risks, optimism, hope rather than more actual figures that will say that it is really more fun, not just to visit the Philippines, but to do business in the Philippines,” said the President.

After the interview, President Aquino received the book, “Money: How the Destruction of the Dollar Threatens the Global Economy and What We Can Do About It”, written by Forbes.

About 400 of the world’s top business leaders participated in the three-day conference, which was held in Manila for the first time.

Carrying the theme, “Toward a Winning Vision”, this year’s conference focused on visionary leadership — how leaders at the helm of great companies conceive and articulate vivid visions that capture the imagination of their teams, inspire confidence among investors, and win the hearts and minds of consumers.

Some 50 speakers from around the world took part in the panel discussions. The sessions covered such topics as outlook for the global financial markets, prospects in emerging markets and investment opportunities in finance, technology, retail and real estate. Panels also discussed the best strategies for building a winning brand, leadership and philanthropy.

Other cities that have hosted the Forbes Global CEO Conference include Singapore, Hong Kong, Dubai, Kuala Lumpur, Sydney, Shanghai, and Bali. PND (jm)