The Philippines: Marcos names more economic managers

• PRESIDENT-ELECT Ferdinand “Bongbong” R. Marcos, Jr. on Thursday announced he is tapping Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno to be his Finance secretary when he assumes office on 1 Jul 22.
• In a televised briefing, Mr. Marcos said Mr. Diokno will be replaced by Monetary Board member Felipe M. Medalla as governor of the BSP. Mr. Medalla will serve the rest of Mr. Diokno’s unexpired term that is scheduled to end in Jul 23.
• “The first priority is always going to be the economy. That’s why we have been very careful in choosing the economic team. It’s still down to jobs, the increasing prices of commodities, some relief for the business community. We have to streamline the operations of government,” Mr. Marcos said.
• Mr. Diokno, who served as Budget secretary from 2016 to 2019, said he will continue the macro and fiscal policies that have helped the Philippine economy recover from the pandemic.
• “As Finance Secretary, I will strive to continue prudently and carefully balancing the need to support economic growth, on one hand, and to maintain fiscal discipline, on the other,” he said.
• They join incoming Socioeconomic Planning chief Arsenio M. Balisacan in the Marcos administration’s economic team.
• Mr. Marcos also named former University of the Philippines President Alfredo E. Pascual as the head of the Department of Trade and Industry (DTI), and San Miguel Corp Tollways President and Chief Executive Officer Manuel M. Bonoan as the head of the Department of Public Works and Highways (DPWH).
• “He has spent almost his entire professional life in the DPWH,” the president-elect said. “I know him very well so I think he will do a good job.” Mr. Bonoan served as DPWH undersecretary for operations in the Visayas and Mindanao in 1998.
• Philippine Chamber of Commerce and Industry President George T. Barcelon said the appointment of these “seasoned and competent economic leaders” would boost the confidence of local and foreign businesses.
• Meanwhile, Mr. Marcos said an economic recovery plan should be put in place before considering the fiscal consolidation plan of the outgoing Finance Secretary Carlos G. Dominguez III.
• “We have to have an economic recovery plan (first) and fiscal policy will follow,” he said. The Finance department on 25 May 22 presented a fiscal consolidation plan for the next administration, which includes imposing new taxes and deferring personal income tax reductions in order to generate more revenues to pay off the country’s ballooning debt.
• Mr. Marcos said they are considering tax relief for sectors most affected by the pandemic such as micro, small and medium enterprises (MSME) and the agriculture sector.
• “For MSMEs, we can reduce (tax), give tax holiday, tax amnesty, we’re studying it right now, microfinancing. We want them to come back… We want to reduce as much of the tax collections from those who are suffering from the pandemic, MSMEs, agri sector, transport,” he said.
• Mr. Marcos was also cool to the proposal to immediately suspend the excise tax on fuel products, as the government would need funds for its projects. Instead, he said he is considering subsidy programs for the transport sector.
• “In terms of oil excise tax, I think we still have to look at that very well. We can support those areas hit by rising oil prices — number one there was transport,” he said.

External Link : https://www.bworldonline.com/top-stories/2022/05/27/451174/marcos-names-more-economic-managers/

External Link : https://www.reuters.com/world/asia-pacific/philippines-marcos-names-new-finance-chief-cbank-governor-2022-05-26/