THE PHILIPPINES needs to ramp up investment in agriculture and fisheries to dampen the impact of heightened tensions with China, the National Economic and Development Authority (NEDA) said.
鈥淲e are linked with China economically through our supply chain directly (and) indirectly through the effects of any tensions in our region,鈥 NEDA Secretary Arsenio M. Balisacan told reporters on the sidelines of a forum.
鈥淥ne of the primary tasks of our government or administration is to improve our food security. And that鈥檚 not just fish, it鈥檚 also vegetables, fruit, rice, and all major commodities. That means that we really have to invest in the areas that will raise productivity,鈥 he said.
When asked about the possibility of the Philippines reducing its import dependence on China for its supply of fish, Mr. Balisacan said: 鈥渋t鈥檚 hard to say, because our population is also growing rapidly.鈥
Last week, a Navy sailor lost a thumb after his boat was rammed by Chinese personnel seeking to block Philippine access to an outpost in the West Philippine Sea, according to the military. The Chinese Coast Guard also disarmed and seized rifles from Philippine personnel.
During the forum, Mr. Balisacan said tensions with China are not the main factor behind weak foreign direct investment (FDI) inflows, citing a decline in FDI globally.
鈥淭he share of FDI from China is quite small. The high was 4.4% in 2015 to 2019. It fell to 0.9% in the last three years, but鈥 I don鈥檛 think that we can directly attribute to that, because overall, global FDI (and) Asia-Pacific FDI have been falling,鈥 Mr. Balisacan said.聽
Loans from China also remain small, with the Philippines seeking to expand its sources of funding, he added.
鈥淥fficial development assistance (ODA) from China is also very small鈥 it鈥檚 about only 5% of the total ODA we receive from other countries,鈥 he said.
Last year, the government withdrew from loan negotiations with China for three major railway projects valued at around P228 billion as tensions worsened over the dispute over territorial waters.
鈥淭he area where we are most exposed to China is in trade,鈥 Mr. Balisacan said. 鈥淲hether (we) like it or not, we are all linked to the same global supply chain.鈥
He said an easing in global trade restrictions would help boost the Philippines鈥 growth prospects.
鈥淥ur economic performance in recent years and the economic outlook in the near and medium term are very robust, keeping us one of the fastest-growing economies in the region. Still, if the global economy is better, if trade restrictions are reduced, then economic growth will be even faster,鈥 he told reporters.
The government is aiming for 6-7% gross domestic product growth this year. 鈥 Beatriz Marie D. Cruz
