Sign up | Log in



Home  >>   Daily News  >>Philippines>>Economy>>Philippines may widen debt borrowings, cut income tax to fuel growth
NEWS UPDATES Asean Affairs    7  June  2016  

Philippines may widen debt borrowings, cut income tax to fuel growth

THE Philippines’ incoming finance minister Carlos Dominguez says he is open to diversifying the country’s borrowings to fund infrastructure projects and will push for a cut in income taxes to keep the Southeast Asian country on track for growth.

Boosting infrastructure spending is among the priorities for the new government of Rodrigo Duterte, the firebrand mayor from Davao city in the south, who won the May 9 election by promising he will go hard against crime and corruption and improving basic government services.

That includes addressing the Philippines’ horrific traffic jams that have weighed on economic growth, and Dominguez told Reuters he will ensure there are enough funds for new infrastructure projects.

Sukuk bonds “are certainly in the menu“, as well as yuan borrowings, in terms of fund-raising.

“It’s not diversification for diversification’s sake, it’s (getting) the best deal. It depends on who gives us a better deal, will it be the local market or the international market?”

The Philippines, which used to be one of Asia’s most active sovereign bond issuers, last went to the debt market in February selling $2 billion of 25-year bonds that drew huge demand.

Dominguez is also planning to impose new taxes on other “unhealthy products” in addition to alcohol and cigarettes to compensate for a planned cut in income taxes as he vows to widen the tax base and make the revenue raising regime more equitable.

The income tax rate for individuals and companies should be slashed to “mid-20s” percent from as high as 32 per cent, but he said he isn’t keen to raise the current 12 per cent sales tax.

“Almost half of your (income goes to) the government. You think that’s smart? I don’t think so,” the 71-year-old businessman and former classmate of Duterte said.

Dominguez, who is returning to the Cabinet after 27 years, plans to review the Philippines’ Real Estate Investment Trust regulations and to rid the internal revenue and customs agencies of massive corruption.

Dominguez served as minister of agriculture and head of the environment and natural resources from 1986 to 1989, during the presidency of the late Corazon Aquino. The Duterte leadership is not shy about planning to copy and expand some of the reform measures instituted by the outgoing government of President Benigno Aquino, Corazon’s son, including a public-private partnership on infrastructure investment.

“We will change the focus on making the economy more inclusive.”

He plans to open up more sectors to foreign ownership, except land, to increase competition and boost services in areas such as telecommunications and power.

At the same time, Dominguez said the unnecessary contractualisation of jobs by big Philippine companies will end.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories                           June 7, 2016 Subsribe Now !
• PM asks Malaysia to take more Cambodian workers Subcribe: Asean Affairs Global Magazine
• Shoppers' paradise lost? Singapore's malls suffer as locals, tourists curb spending
• Ha Noi seeks $115.5 billion to become the second Singaporea
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

• Malaysian investor to build resort, dairy farm in Kepahiang
Philippines may widen debt borrowings, cut income tax to fuel growth
Asean Analysis                  May 27, 2016
• Asean Analysis May 27, 2016
With a Dozen Economic Reform Packages under His Belt, Indonesia’s Jokowi Settles In
Advertise Your Brand

Asean Stock Watch   June 6, 2016
• Asean Stock Watch-June 6, 2016
The Biweekly Update
• The Biweekly Update  May 27, 2016

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2017 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand