State of the Nation Address 2019

PHILIPPINES - In Brief 22 Jul 2019 by Romeo Bernardo

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The business community should find President Rodrigo Duterte’s fourth State of the National Address (SONA) to its liking. First off, there was no mention of federalism. Second, he promised to push harder with the reform programs started under his administration, stressing especially ease of doing business including speedier granting of clearances and permits at the local government levels. Third, his legislative agenda included calls to pass the remaining tax reform measures as well as a National Land Use plan to encourage more investments in rural areas. With an 85% approval rating, the President’s tone suggests that the second half of his term will see even more political will to bring change to people’s lives, including in reducing corruption and the delivery of various social programs, in implementing the Bangsamoro Basic law and the rice tarriffication law, as well as the Build Build Build program. And he has better odds of success than any of his predecessors at the midpoint of their terms of office.With this backdrop, we will discuss in a conference call on Wednesday, July 24, 2019, at 8:00 AM NY time (Participant dial-in number: + 1 302-607-2001; Passcode: GSP18806) what all this means for economic growth going forward, what are doable and to what extent, what could go wrong, and given the country’s three-year political cycle, how soon before 2022 electoral considerations push economic reforms to the background. Proposed legislation in the SONAPackage 2 (“TRABAHO” bill) of the Comprehensive Tax Reform Program and other tax reform measures, including on tobacco and alcoholSalary Standardization and government right-sizingCreation of three new line agencies: Depa...