MANILA - Thirteen of the country's biggest business organizations have asked President Benigno Aquino III to push for the removal of the foreign ownership restrictions in the Philippine Constitution.
This is among the items in a wish list that the 13 groups proposed to the President to sustain his administration's economic gains.
“We strongly urge your administration to consider amending the economic provisions in the 1987 Constitution, which restrict greater private sector participation,” the June 19 letter signed by the 13 organizations read.
“Pending such Constitutional amendments we suggest an initial and immediate course of action: to revise the Foreign Investment Negative List [FINL] by reducing the list of industries where foreign participation is limited,” they said.
The government this year is reviewing the FINL ahead of releasing the 10th edition of the list next year.
The 13 signatories to the letter include Alyansa Agrikultura, American Chamber of Commerce of the Philippines (AmCham), Australia-New Zealand Chamber of Commerce of the Philippines (ANZCHAM), Canadian Chamber of Commerce of the Philippines (CanCham), Employers’ Confederation of the Philippines (ECOP), European Chamber of Commerce of the Philippines (ECCP), Japanese Chamber of Commerce and Industry of the Philippines Inc (JCCIPI), Korean Chamber of Commerce Philippines (KCCP), Makati Business Club (MBC), Management Association of the Philippines (MAP), Philippine Association of Multinational Companies Regional Headquarters Inc (PAMURI), Philippine Chamber of Commerce and Industry (PCCI), and Philippine Exporters Confederation Inc (PhilExport).
The business groups noted that “[s]ince 2010, the Philippines has seen a resurgence in confidence, both in the economic side and in terms of governance, led by your administration’s reforms towards a more transparent, fair and inclusive nation.”
“The impressive economic growth rates, achievement of investment grade ratings, improving national competitiveness, and a palpable optimism and vigilance against corruption within the people are testaments to your leadership and the management of your Cabinet,” they said.
The business groups said the ASEAN economic integration and the country’s hosting of the Asia-Pacific Economic Cooperation (APEC) Summit both in 2015 “present a golden opportunity to further institutionalize the initial efforts leading to inclusive growth.”
Apart from relaxing restrictions to foreign ownership, the 13 organizations proposed the following:
- Acceleration and implementation “at the soonest time” of strategic transportation infrastructure projects. These pertain to projects in the public-private partnership [PPP] pipeline and other strategic transport projects, particularly the development of the Ninoy Aquino International Airport, the de-clogging of the Port of Manila, and the connection of the North Luzon Expressway to the South Luzon Expressway.
- A single, comprehensive anti-trust and competition law. The groups said the law should create “a level playing field that will encourage more productive investments, especially in light of impending Asean integration in 2015.” At present, “[t]here are several laws and issuances which do not address the complexities of the current market conditions, and as well result in overlapping jurisdictions and conflicts," according to them.
- Overhaul in the Bureau of Customs alongside the creation of an oversight body with private sector participation. Such is necessary as business groups noted that “smuggling continues to derail efforts on revenue collection and job generation,” resulting in over P100 billion a year in foregone revenues for the government.
- Passage of a law fulfilling the country’s commitment to the International Convention on the Simplification and Harmonization of Customs Procedures or the Revised Kyoto Convention.
- Rationalization of existing fiscal incentive-giving laws. “[W]e recommend that the grant of incentives be subjected to periodic reviews and [be] time-bound to determine its applicability based on current conditions. On the administrative side, we suggest that the government simplify procedures, delineate functions and responsibilities, and establish a system for coordination, reporting and monitoring for investment agencies,” the business groups said.
- Retention of the Philippine Mining Act. The business groups said the law, if “complemented by the implementation of an internationally competitive fiscal regime” would “provide a stable regulatory environment that will increase investor confidence.” They noted that while the Philippine economy expanded 7.8 percent in the first quarter, the mining and quarrying subsector contracted by 17 percent as the country “remains globally competitive in terms of its geology but has failed to take advantage of this due to inconsistency in policies and implementation.”
- Conformity of local ordinances to national mining policies, as well as respect for vested rights under existing agreements.
- Commitments for additional power capacity nationwide; lower power costs; and putting in place “a favorable investment climate” for potential energy investors.
- Reforms addressing issues of competence and efficiency in the justice system. “We express our concern about the seemingly arbitrary issuances and interpretations, the slow disposition of cases, and the negative impact of these to business perception,” they said.
“Through these measures, the business community is of firm conviction that the Philippines will continue to be among Asia’s fast rising economies, while ensuring that such economic and governance gains benefit the majority of our people that are in need the most,” the business groups said.
Source: Interaksyon (www.interaksyon.com); News; 03 July 2013
In close partnership with government, businesses, civil society, and academia, ECCP passionately works to enhance the business environment for both European and Filipino companies.