ANGARA SUPPORTS GOV'T EFFORT TO BOOST INVESTMENT RATES THROUGH FINANCIAL REFORM

Senator Edgardo J. Angara said yesterday that he supports the Aquino government's resolve to increase the investment rates in the Philippines, and outlined his financial reform agenda in the Senate.

This came from yesterday's announcement that the new government hopes to raise the country's investment rates from the current 14 percent to 18 percent in 2011.

"If we compare numbers with our South Eastern neighbors, we can see that our numbers are quite low. We need to pass reforms that will attract more investments and strengthen our capital markets," said Angara.

Other countries in the region have significantly higher investment rates that the Philippines. Indonesia is as 25 percent, Thailand with 28, Singapore with 22 and Vietnam even higher at 38 percent.

"The government should also reevaluate public spending and identify areas which must be prioritized in the future," said Angara who spearheads financial reform in the Senate.

Last Congress, Angara led the passage of Pre-Need code which establishes rules to govern the operations of pre-need companies and provide protection to consumers and Real Estate Investment Trust (REIT) which boosts RP's position as a safe haven of investments in the Asia-Pacific region amid the global credit crunch.

Further, the Senator is continuing to push for the amendment of the BSP charter and urging for the passage of Corporate Recovery and Insolvency Act (CRIA).

Amending BSP's charter will authorize the Central Bank to extend its supervision to subsidiaries and affiliates.

On the other hand, CRIA seeks to establish a more systematic framework for insolvency proceedings and provide equitable treatment to all parties involved in a financial restructuring or rehabilitation and the CISL will establish a comprehensive regulatory framework as a means to develop the Philippine capital market.

"Through these reforms the country will be placed in a better position to attract investments," he said.