On April 19, 2023, the Chinese Filipino Business Club, Inc. hosted a successful open forum attended by the Department of Finance Secretary, Hon. Benjamin E. Diokno. The said event was held at Kachina Room, Century Park Hotel, Malate Manila where at most 150 individuals coming from various sectors such as trade, banking, finance, and media among others, have attended.
The responses of Secretary Diokno during the open forum are summarized below.
Q: One of the main goals of your administration as the current Finance Secretary is the reduction of the poverty incidence in the Philippines. How can our economic relations with China help in obtaining this agenda?
A: Focus on micro, small, and medium enterprises and help them digitalize. We must also enhance our connections with China and tap new investors.
Q: Amid the recent Silicon Valley Bank collapse, you have emphasized that the Philippine banking system is “sound and well-capitalized” and is thus unaffected by the crisis. How can CFBCI or the Sino-Filipino community help in preserving this bank stability?
A: The Philippines’ banking system is in “a pretty good shape” because we have learned so much from the Asian Financial Crisis. The Sino-Filipino community can help in preserving this stability by educating Filipinos on how to manage their finances properly.
Q: As the inflation rate eases in February this year, there is an immediate call to re-calibrate government strategies to alleviate the impact of higher commodity prices. How can CFBCI or the Chinese Filipino community assist the Department of Finance in building a strong economy with stable prices?
A: The Filipino-Chinese community can help the DOF in maintaining stable prices by reporting hoarders. Give information to the government where primary agricultural goods are being hidden and it will take immediate action.
Q: How is the government managing the economy in terms of fiscal stimulus, inflation, national debt, interest rates, and new tax laws? What long-term measures is the Philippine government taking to boost the economy, and what are the key drivers of growth?
A: The present administration has gone around the world to sell the Philippines and foreign countries are interested in us because we have a good story to tell. I’ve seen the ups and downs of the PH economy and I must say that “this is our moment.” We encourage foreign investors to take advantage of the current economic status of the Philippines.
Q: How is the Philippines’ current balance of payment situation, and has it improved or worsened over the past five years? What steps is the government taking to maintain a healthy balance of payment, given the significant negative consequences of having a deficit balance of payment?
A: The Philippines’ balance of payments is declining. The current administration focuses on expanding the size of our economy. At present, the Philippines enjoys a steady inflow of overseas remittances contributing to a total of 100.2B dollar reserves. We also have a comparative advantage in the business process outsourcing (BPO) industry.
All in all, the Finance Secretary has expressed impressive and positive data about the country’s financial system. All attendees of the open forum enjoyed the discussion led by the Secretary as well as his generous sharing of insights during the open forum. ###
