New light from the Duterte Administration
It’s still early to conclude whether Rodrigo Duterte is a great president or not, but it’s evident that he is quite different from the usual politicians you see everyday, especially because of his unorthodox ways and non-traditional style even before he ran for presidency. In the first month of his administration, Duterte even received 91% trust rate, the highest rate in history and, according from Pulse Asia survey, he received high rates from all social classes.
When it comes to economy, the previous administration boast of the high GDP growth that the Philippines achieved, which is definitely a good news. From the Sick man of Asia, we are now called the Rising Tiger of Asia. But clearly people want something else, and probably something more tangible.
And right now, businessmen are riding their hopes on his new leadership.
UPROOTING CRIME AND CORRUPTION
Dubbed as The Punisher, Duterte’s main campaign revolved around eradicating crime and corruption. Although this has yet remain to be fulfilled, it would definitely improve the real estate transparency of the country.
Jones Lang LaSalle Philippines categorized our country’s transparency as “semi-transparent” but every step taken to fulfill this campaign will definitely affect and improve our much-needed government transparency.
Duterte has been noting even during his campaigns that before a place can really prosper, order must first be established. This way, investors would be coming comfortably, knowing that there will be no corruption, that they will be safe, and their business will bloom.
After all, as ambitious as it sounds, who wouldn’t invest in a completely crime-free and corrupt-free country?
EASE OF DOING BUSINESS
Before Duterte’s presidential inauguration, his administration laid out the 10-point socio-economic agenda during a business summit in Davao whereas the top three includes the following:
Continuing and maintaining the current macroeconomic policies, including fiscal, monetary and trade policies;
Instituting progressive tax reform and more effective tax collection while indexing taxes to inflation; and
Increasing competitiveness and the ease of doing business.
The country’s economy has been doing and performing well during the previous administration which could serve as proof that Aquino’s policies are effective in the country’s growth.
On the other hand, a tax reform should really be given top priority and utmost attention. In fact, Philippines ranked 2nd in having the highest income tax rate in ASEAN. But despite this, it’s hard to admit that compare to us, lesser-tax-paying countries are more advance. Likewise, the corporate income tax systems of the Philippines has been dubbed as “most uninviting and out of date”.
If we want to attract more foreign investors, and even encourage more Filipinos to start their own trade, ease of doing business should be strictly implemented. Many has been getting “lazy” to invest in our country because the process is too long and arduous.
These agendas, if properly implemented, will definitely root the advancement of real estates in the country.
GOLDEN AGE OF INFRASTRUCTURE
Last July 20 of 2016, Budget Secretary Benjamin Sionko remarked that the next six years will be the Philippines’ Golden Age of Construction.
He said that the administration plans to spend up to P900 Billion for public infrastructures, with infrastructure-to-GDP ratio to increase up to 7%. This will include airports, bridges, farm-to-market roads, post-harvest facilities, and seaports, in all regions simultaneously and not sequentially, which will encourage developers to construct more homes and investors to start trade in provinces.
Also, Duterte and Department of Environment and Natural Resources Secretary Gina Lopez might go with a push for sustainable residential, commercial, and retail projects, with green buildings steadily gaining momentum in the real estate industry.
With Metro Manila being the country’s heart of development, other places in the Philippines are being overlooked despite its potential and richness in resources. And it seems that Duterte plans to decentralize Manila by developing the provinces.
Public-Private Partnerships projects, strict traffic implementations, and building more urban infrastructures, which the administration plans, will open up chances and encourage people to buy properties and invest outside Manila.
More so, Duterte had repeatedly commit to switch the government form to Federal System which would result to promoting impoverished provincial locations.
Decentralization will positively encourage real-estate developers to increase investments in provincial areas. After all, Metro Manila is heavily congested and the remaining places of the Philippines are just waiting to get noticed.
PROSPERITY FOR ALL
With programs leading to regional expansion, real estate would spread out across the country, not just within the concentrated, overcrowded Metro Manila. And with the administration’s plan to encourage more investors and businessmen to start their trade by implementing new policies and economic agendas, it’s not impossible for us to prosper as a nation.
Photographed By Noel Ty