MANILA, Philippines – The Philippine Chamber of Commerce and Industry (PCCI) is hoping that President Aquino will implement in the first 100 days of his administration various measures to create an environment conducive to increased investments in the country.
“Improve transparency and predictability of investment policies. Transparency — openness — in all public transactions must become the key reform,” the business group said in its 100-day proposal for the new government.
It cited the World Bank identifying hidden barriers and unofficial payments reducing Philippine trade by as much as 25 percent.
“Similarly, the sanctity of contracts should be respected. This lends credibility on the stability of the business environment,” the group noted.
The PCCI raised the need to reduce discriminatory treatment between domestic and foreign investors particularly regarding foreign direct investments (FDI) restrictions, screening and approval procedures.
To this end, it also urged the new administration to establish a “well-defined business investment arm” with a clear focus on delivering specified outputs within a framework of accountability to the Office of the President.
Among the deliverables of such an agency would be a full range of national and local government approvals, business registration; permits and clearances; environment, health and safety approvals and other regulatory requirements.
It should also ensure that all government agencies and departments are in lock-step with priority to grow the economy and attract foreign investment.
“Government should make sure that embassies, consulates and other Filipino commercial groups abroad embrace a strong business focus and work with influential figures from the overseas Filipino community to press the Philippines’ case as an attractive investment destination,” said the PCCI.
Likewise, the national and local governments should work together to foster an investor-friendly business environment.
“Local governments, in turn, should prime their respective constituents in welcoming these projects by communicating their social and economic benefits to the community. An informed public is key to the acceptability of projects,” it noted.
The business group also urged the new administration to develop an investment-focused agenda with the private sector playing a key role, organize an ad hoc committee on competitiveness, and stage a road show meant to restore confidence in the country as an investment destination.
It should focus its investment and promotion and facilitation efforts on a few priority strategic sectors.
“These priority industries should be chosen on the basis of the Philippines’ clear comparative advantage and their multiplier effects to other sectors of the economy,” it said. “… of particular interest and urgency would be projects pertaining to infrastructure, tourism, knowledge-based industries, crop diversification, and agricultural production, mining, shipbuilding, etc.
Apart from improving the country’s image as an investment haven, the PCCI likewise proposed to the government to fast track privatization efforts, pass some important bills and enhance the competitiveness of the tourism industry.
It also raised the need to mobilize the private sector to facilitate the flow and access to credit of micro and small-scale enterprise, including smallholder farmers and agribusinesses.
“Since banks consider lending to this sector as too risky, a modified credit supervision scheme with the affluent within a community to serve as a “Big Brother” and a virtual co-maker of the lending process. The intervention will be institutionalized with the local Chambers and Commerce serving as lead resource conduits,” the group said.
These measures are needed in order for the government to achieve fiscal stability, stamp out corruption, improve the country’s competitiveness and create more employment, it added. –Philexport News and Features (The Philippine Star)
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