THE Joint Foreign Chambers (JFC), through its industry champions, presented a snapshot of its 400-page recommendations for the seven winning sectors that it believes can deliver to the country $75 billion in foreign direct investments (FDI) and generate 10 million jobs in 10 years.
“It is basically finished already and, at the moment, we are writing the executive summary. I think it will be around 410 pages and should be out by the second week of December,” Henry Schumacher, executive vice president of the European Chamber of Commerce of the Philippines (ECCP), said after the presentation of the “Outlook Philippines 2011: Seven Big Winners” at the Dusit Hotel in Makati.
Schumacher said it is important that the government start working on their recommendations beginning January 2011, especially with the investors in China now looking for alternative destinations, and countries like Vietnam, Cambodia and Bangladesh already positioning themselves to get these FDI.
The seven winning sectors identified by JFC are agribusiness, business-process outsourcing (BPO) and creative industries, infrastructure, manufacturing, mining, power and tourism. Public-private partnership (PPP) was added as an enabler.
Roberto Amores, president of the Philippine Food Processors & Exporters Organization, said the desired reforms for agribusiness include improved credit access for micro-, small- and medium-size entrepreneurs; adequate budget to fully implement the Agriculture and Fisheries Modernization Act; removal of duties on raw-material inputs; restoration of sugar allocation for direct and indirect export-based food processors; more transparent rules and procedures to reduce the cost of doing business; and establishment of analytical and testing laboratories in strategic areas that are internationally accepted.
For information technology-BPO, Oscar Sanez, president and CEO of the Business Process Association of the Philippines, said they need the creation of the Department of Information and Communications Technology; amendments to the Labor Code; a law promoting data privacy; funding support for global-awareness campaign on the Philippines as a center of excellence; policy and resource support to maintain tax-incentive regime; and significantly improve the country’s educational system.
For power, Daniel Chalmers, chairman and CEO of GNPower, said they are pushing the government to be more aggressive in promoting the open access and retail competition, and in encouraging private investors for additional capacity to support demand growth, and create stability both in the grid and in the market.
To improve the country’s ground infrastructure, the government should speed up the right-of-way process in the regulatory, legal and budgetary aspects, according to Ramoncito Fernandez, president and CEO of Metro Pacific Tollways Corp. There should also be access to long-term capital and unified standards for electronic access and ticketing.
For manufacturing, American Chamber of Commerce senior adviser John Forbes said the following are imperative: an industrial master plan; better understanding and use of opportunities presented by free-trade agreements (FTAs), diversification of exports, positioning of the Philippines as an alternative to China, reduction of business costs (corruption, electricity, holidays, labor, red tape, transport); a Philippine branding campaign for the Filipino workers; and engagement in more FTAs.
For mining, Chamber of Mines of the Philippines president Philip Romualdez seeks the resolution of all gaps between national and local government policies in the development of mineral resources, stable investment environment, and transparency and good governance to reduce the cost of doing business.
Jojo Clemente, president of Worldwalker Destinations, listed these reforms for tourism; more resources allocated to tourism, creation of a lasting brand for the Philippines; continued infrastructure development and upgrade of existing facilities; transformation of provinces into potential tourist destinations; increased accessibility; upgrade of skills of tourism industry workers; and the development of Mindanao as another major tourist attraction.
As for PPP, Jon Lindborg, PPP advisor of the Asian Development Bank, said the government should focus on developing a small number of doable and bankable projects, first, to build credibility with the private sector. Domestic and international investors should be mobilized; then the government must ensure a level playing field, bring in world-class technology and management; and address the enabling environment issues.
When asked to trim down further all the recommendations, the industry champions named one each: Open skies, shortlist of doable projects for PPP, right-of-way acquisition, educational reform, redefining of mindset and understand mining, clean and orderly road network and postharvest facilities, and a really good and well-thought-out economic policies.
The JFC will be presenting these policy recommendations to President Aquino once completed. –Max V. de Leon / Reporter, Businessmirror
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