Innovation is the central issue in economic prosperity.
—Michael Porter
Education remains the key to both economic and political empowerment.
—Barbara Jordan
Philippine STAR reader, realty investor, indie film producer and actor Piolo Pascual recently told this writer over lunch that it’s not true that he paid P55 million in annual personal income tax; that the Bureau of Internal Revenue’s (BIR) list of top taxpayers on the Internet was mistaken. He told me: “That is not true, I’m not like Willie Revillame in terms of that high annual income. I didn’t want to question the BIR, but actually they declared higher than what I had actually paid.”
Piolo said that The Philippine STAR has a lot of readers and invites the public to watch his Valentine’s concert with musical maestro Ryan Cayabyab on Feb. 14 at the PICC Plenary Hall. He added that the reason he pays taxes honestly is due to his Christian faith; he is a born-again Protestant and member of Victory Christian Fellowship.
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Former Tourism Secretary Mina Gabor told this writer she just opened a non-stock, non-profit school called International School of Sustainable Tourism in Subic, which will teach tourism industry trainers and seek to boost the Philippine tourism industry. It was under Gabor’s proactive and dynamic leadership that the Philippines breached the two-million-tourist-arrivals goal, and she also attributes that success to “the hard work and strong leadership of then President Fidel V. Ramos.”
When asked to comment on President Noynoy Aquino, Gabor said, “Noynoy is one leader whom we could all go to sleep soundly and we can be sure there’s not a part of the country or government already being sold off or stolen. His honest nature can no longer be changed. I wish him success. He is a very courteous person and used to address me as Tita Mina whenever I saw him. I used to see him assisting his mother, ex-President Cory Aquino, in gardening; he’d wear shorts and a T-shirt at their home and carry the flowerpots for President Cory. He is a good and honest person.”
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Despite the threats of high world oil and food prices and other lingering uncertainties in Europe and elsewhere, our business leaders in general seem unanimously optimistic about positive Philippine economic prospects this year, although it is also the consensus that economic growth will slow down compared to last year.
What can be done to strengthen Philippine economic growth and accelerate progress?
This writer attended a small, exclusive but high-powered and elegant birthday dinner of IT tycoon Myla Villanueva on the unique date of 1-1-11 in a luxury condo in Makati. A number of mostly young business leaders attended, like Smart Communications and PLDT top executives Napoleon Nazareno and Eric Alberto, Globe Telecom CEO Ernest Cu, Kevin Belmonte of The Philippine STAR, Miguel Aboitiz, Francisco R. Elizalde and wife, Sofia Zobel Elizalde, Alfonso Yuchengco III, Marcos son-in-law Gregorio “Greggy” Araneta III, Bank of the Philippine Islands (BPI) president Aurelio “Gigi” Montinola III (who is expected to become the next candidate for Bangko Sentral governor if the very capable Governor Tetangco retires), and many others.
Several government bigwigs and President Noynoy Aquino’s key economic managers also attended, led by political archrivals Senator Chiz Escudero and ex-Senator Mar Roxas (who coincidentally left just before Chiz arrived), Trade and Industry Secretary Cesar Purisima (who told me he always reads The STAR), Energy Secretary Jose Rene D. Almendras (who told me another newspaper’s headline that day claimed he and Purisima wouldn’t be confirmed by Congress after I said he was one of the most brilliant guys in the Cabinet), PCGG chairman and STAR columnist Dean Andy Bautista, Information and Communications Technology Secretary Atty. Ivan Uy.
Here are some of the suggestions of the various business leaders to ensure a better Philippine economy, as told to this writer in between red wine, Cibo-catered food and exquisite music from a talented singer in the background:
Gigi Montinola III, president of the Bank of the Philippine Islands, said, “To have a better economy, we need to turn optimism into action. Also, with bank interest rates now very low, people should go into more businesses that they know. I think it is best people put money into businesses they understand well. 2011 will be good for Philippine economic growth, but not as good as last year, because 2010 was exceptional.”
Myla Villanueva, multi-awarded IT tycoon and boss of Microwarehouse, said, “To improve the economy, I suggest we loosen up the rules for entrepreneurs, so that business people can invest more and help create more jobs. It is also important to improve education. We also need to promote innovation in the Philippines.”
Atty. Duane Santos, executive vice president and general manager of Greenfield Development Corp., said, “The Philippines should improve the perceptions of security of this country, because there’s so much potential to attract tourists and foreign investors as long as we seriously improve the peace-and-order situation. Without improving the security situation, we’ll not be able to attract more tourists.”
Miguel Aboitiz, senior vice president of Aboitiz Power, said, “I think the Philippine economy will continue to do well, as long as the Bangko Sentral manages the money supply well, like preventing inflation and too much liquidity, etc. I believe Governor Tetangco is very good.”
Ambassador Joey Antonio of Century Properties said, “For better economic growth, we have to invest more, we have to strengthen business confidence. We need better infrastructure. Let’s liberalize foreign investments, let’s develop tourism well because there’s a lot of trickle-down effect in that industry, which will benefit ordinary people, from tricycle drivers to many others.”
Marcel Crespo, brother of birthday celebrant Myla Villanueva and CEO of the BPO firm Open Legal, said, “The Philippines should open up investments to foreigners like the rest of Asia. That’s it, that’s the way to ensure progress. We have too many rules and are too restrictive on foreign investments, from corporate ownership to land ownership. Open up asset ownership rules; foreign investors are not going to take homelands anywhere. Even China is more liberal to foreign investors with regards to land.”
Ernest Cu, CEO of Globe Telecom, said, “Continue the great sense of confidence in the government by continuing this sort of perception and the reality of good governance.”
Francisco R. Elizalde, managing director of Elro Commercial and Industrial Corp., said, “I hope that there will be less foreign money in the Philippine stock market and I wish that more local money by our businesspeople would be invested in more businesses that would make the Philippine economy better.”
Craig Ehrlich, chairman of Novare Technologies Limited (Hong Kong) and Carmel Ventures Asia (HK), as well as business partner of Myla Villanueva and Roberto “Bobby” Ongpin in three publicly listed firms like ISM Communications and Philweb Group, said, “My advice for the Philippines? Cozy up to China and get lots of Chinese investments; that’s what I and other international businessmen of the world are doing. That’s my advice to help make the Philippine economy better. I go to China all the time looking for business opportunities.”
Eric Ongpin Recto, president of Petron and owner of Makati’s Masseto resto, said, “To help the economy, I encourage people to spend more; businesspeople should invest more.”
Mylene Abiva, from the Abiva publishing family and president and CEO of Felta Multi-Media, Inc., said, “I hope government will invest more in education. We need better educational infrastructure in the Philippines and technology-based education, too, because we’re so far behind in these areas compared to our East Asian neighbors.”
Foreign investor Raj Gagoomal said, “I hope the Philippine government cuts a lot of the bureaucratic red tape and that various sectors of the economy would open up to foreign investors. Rules on foreign ownership of corporations, land and others should be more liberalized, similar to those of other Asian countries so that foreign investors need not use local law firms or dummies. Therefore, all foreign investments will be legitimate and more will be encouraged to invest in the Philippines.”
Alex Lichaytoo, president of Bacchus, said, “To help improve the Philippine economy, it is important for everyone to be more positive-thinking and aggressive in investments.”
Ernesto “Bong” Sta. Maria, chairman and CEO of Cinemabuhay and producer of Manny V. Pangilinan’s Rosario movie, said, “To have better economic progress, it all boils down to lessening corruption so that government funds can go to more social services instead of the pockets of corrupt leaders.”
Monchu Garcia of K-Line shipping said, “The economy will get better if we promote competitiveness and civic pride through sports like soccer, basketball, etc. I’m ethnic Spanish; I suggest we learn from the late Spanish leader Generalissimo Franco, who promoted sports to boost Spain. The key to good economics is good national leadership. We need good leaders.”
Elbert Cuenca, owner of Elbert’s Steak Room resto in Makati, said, “I believe in our president, but I think he has to be more proactive in his leadership. I think the Philippines needs a proactive president.”
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