TO shield investors from local governments, the Department of Trade and Industry (DTI) is pushing for a legislated magna carta for investors as well as the establishment of economic zones for domestic manufacturers.
During the Yearend Philippine Economic Briefing on Wednesday, DTI Secretary Gregory Domingo acknowledged that many investors are deterred by some inconsistencies in the policies of the national government with those of local government units (LGUs).
“There are some business-friendly LGUs . . . [but] some are not business-friendly,” Domingo said.
He said the DTI would craft a bill that shall put in place a magna carta for investors, which would “protect investors’ rights” and shield businessmen from changes in rules or policies whenever a new administration takes over an LGU.
He said the bill would likely be introduced next year.
Also, the DTI would seek the Department of Finance’s go-signal for the possibility of establishing economic zones for manufacturers serving the domestic market.
“The concept is to come up with certain areas not subject to LGU rules and regulations,” Domingo said.
He later told reporters that the incentives to be granted in such ecozones would likely be less generous than the perks given away by the Philippine Economic Zone Authority to exporters.
He said the ecozones for domestic manufacturers could be put up in the poorest provinces and towns that have ready access to ports, in a bid to spur economic activity there.
Such ecozones would be managed by a national agency, Domingo said, adding, “It can be BOI [the Board of Investments] or can be a separate body.”
Search for new sunrise industry
Domingo raised the need for another growth sector that could generate employment for 500,000 Filipinos in the near-term.
“We should have a new sunrise industry, like the BPO [business process outsourcing] and tourism sectors,” he said.
The DTI chief said the government is looking at the potentials of agricultural sectors such as bamboo and coconut production.
The domestic assembly of electric vehicles and other cars for niche markets also presents opportunities for exports and employment, he added.
Domingo said the country’s manufacturing industries would be revitalized once perennial issues such as the high costs of power and labor concerns are addressed.
He said the government is trying to solve these problems so that domestic manufacturers would become competitive again. –BEN ARNOLD O. DE VERA REPORTER, Manila Times
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