Filipino and foreign businessmen have asked President Benigno S. Aquino III to prioritize key economic reforms and measures that will make the Philippines more competitive and attractive to investors.
A letter sent to Malacañang on June 19 but posted by the Joint Foreign Chambers on its website early this week outlined key initiatives “which we strongly believe [the] administration should focus on the remainder of [its] term.”
“We believe that these issues will generate the greatest impact in achieving our shared vision of inclusive growth through job generation, poverty reduction, and global competitiveness,” the letter read.
Included in the list are:
• implementing and accelerating infrastructure projects;
• creating an anti-trust and competition law;
• the overhaul of Bureau of Customs including the establishment of an oversight committee with private sector participation;
• rationalization of fiscal incentives including the possibility of providing time-bound perks and periodic reviews;
• simplifying procedures and establishing a system coordinating monitoring of investment agencies;
• retention of the current Mining Act to be complemented by an internationally competitive fiscal regime;
• ensuring the conformity of local ordinances with national policies especially in relation to mining policies;
• enticing investments for additional power supply;
• amending to the foreign ownership limitations of the Constitution or in its absence the reducing sectors included under the Foreign Investment Negative List (FINL); and
• encouraging efficiency in the Judiciary.
The groups noted these issues are important in order to “further institutionalize the initial efforts leading to inclusive growth.” Palace officials could not be reached for comment.
Several of the measures recently named by businessmen were at the forefront of the previous Legislative-Executive Development Advisory Council's (LEDAC) list of priority bills, but did not prosper in the 15th Congress.
For example, both Customs Modernization and Rationalization of Fiscal Incentives bills failed to pass the Senate, while both chambers did not green-light the Anti-Trust bill.
A new version is the Fiscal Incentives bill is being drafted by both the Finance and Trade departments for submission to Congress.
The government is finalizing its own amendments to Philippine Mining Act of 1995 for consideration of the Chamber of Mines, a key private sector stakeholder in the minerals industry, before submitting it in Congress.
The 16th Congress will formally open on July 22, even if new legislative leaders have assumed office on July 1.
The FINL, which limits which sectors are available for foreign equity, is expected to be reviewed by the Trade and Finance departments along with the National Economic and Development Authority before a new version will be released next year.
The groups in the appeal include the Makati Business Club, the Employees Confederation of the Philippines, the Philippine Chamber of Commerce and Industry, Alyansa Agrikultura, Philippine Exporters’ Confederation, the Management Association of the Philippines, the American Chamber of Commerce of the Philippines, Inc., the Australia-New Zealand Chamber of Commerce of the Philippines, the Canadian Chamber of Commerce of the Philippines, the European Chamber of Commerce of the Philippines, the Japanese Chamber of Commerce and Industry of the Philippines, Inc., the Korean Chamber of Commerce Philippines, Inc., and the Philippine Association of Multinational Companies Regional Headquarters, Inc. — BM, GMA News
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