President Ferdinand Marcos Jr. (2nd from left) and Vice President Sara Duterte (left) lead the lowering of a time capsule during the groundbreaking ceremony for the Samal Island – Davao City Connector bridge in Davao City on October 27, 2022. Assisting Marcos and Duterte are (from right to left) Samal Island Mayor Al David Uy, Davao City Mayor Sebastian Duterte and Department of Public Works and Highways Secretary Manuel Bonoan. MindaNews photo by MANMAN DEJETO
DAVAO CITY (MindaNews / 30 December) – The Marcos administration’s flagship “Build-Better-More Infrastructure Program” is not gaining momentum as anticipated based on the reduction in government investments in public infrastructures here in 2023, a Dabawenyo business leader said.
Arturo Milan, former president of Davao City Chamber of Commerce and Industry Inc. (DCCCII), told MindaNews on Saturday that there are only a few critical infrastructure projects like housing and school buildings that have commenced this year under the new administration.
“The much talked about ‘Build, Better, More Infrastructure Program’ of the Marcos Jr. administration seems not getting off the ground. Not much new roads and other infrastructure projects like government housing and school buildings have started,” he said.
He said that except for the Davao Bypass Road, Davao Coastal Road, and Davao Expressway, most of the major projects, such as the Mindanao Railway Project, Samal Island-Davao City Connector Project, and Davao City High Priority Bus System were either put on hold or have not started yet.
He said the government spending on hard infrastructures may continue to remain sluggish in 2024, although it is also likely that the government will start pouring in funds next year to implement projects in order “to prop administration candidates” in preparation for the 2025 midterm elections.
Milan, also co-chair of the Regional Development Council-Davao, added that 2023 was quite a “challenging year for Davao City.”
He said he is looking at the growth of the city next year with “guarded optimism,” given the prevailing economic conditions such as the high inflation rate and high interest rate.
He said the high inflation dampened consumer spending while the interest rate discouraged private investments.
“The prevailing high inflation has caused the tapering off of consumer spending, the main driver of the economy. Food and fuel prices are the major contributors to the elevated inflation though it has softened a bit towards the last quarter of the year,” he said.
Unless these problems are fixed, he believes they will continue to negatively impact private consumption and investments.
Amid the challenges, he said they expect the continuation of ongoing property development and manufacturing projects, although the city noted few “private investments coming in this year.”
He added the problems on ease of doing business also slowed down the entry of new private investments.
“While we, Dabawenyos, are known to be resilient people, however, the prevailing economic conditions are not favorable and are considered to be strong headwinds that we have to face,” he said.
He said the El Nino may impact the agricultural sector that may lead to higher food prices.
He said the bright prospects for 2024 include continued expansion of the information and communications technology-business process outsourcing industry and strong remittance from the overseas Filipino workers.
“Since 2024 is pre-midterm election year, huge campaign money is expected to trickle in that could help increase disposable income and spur consumer spending,” he said. (Antonio L. Colina IV/MindaNews)
