As clock ticks to 2016, business leaders urge Aquino admin to step up reforms

The Aquino administration has less than half of a six-year term left, highlighting the need to step up decision-making and implementation of reforms to generate more jobs and spur inclusive growth, business leaders said Wednesday.

It is imperative to heighten the need for urgency and to make everyone aware of time-based realities starting this year, Philippine Veterans Bank chairman Roberto de Ocampo said during the Third Arangkada Anniversary Forum held in Makati City.

“It would appear that the current administration is on the halfway mark of the six-year term. However, the reality is 1.5 years is left to clinch reforms for more job generation,” he said.

De Ocampo, former Finance Secretary during the Ramos administration, noted half of 2015 and the remaining months in 2016 will be devoted to political campaigns for the next administration.

National Competitiveness Council co-chair Guillermo Luz emphasized the need for on-time execution of reforms and projects.

“It takes too long to get anything done here. It’s not a matter of making some improvement. Others are also growing, we need larger improvement,” he said.

“We cannot be sitting back and taking our time making decisions. On-time execution is the key we need and the discipline we should have to be able to move the country forward,” Luz added.

Last year, business groups sought for speedier passage of business and economic reform bills to attract more investments.

These reforms include the liberalization of the Cabotage and the Foreign Investment Negative List policies, amendments to the economic provisions of the Constitution, amendments to the Government Procurement Act, mining fiscal reform, rationalization of fiscal incentives and transparency and accountability in fiscal incentives.

On foreign investments

Other measures and reforms the groups noted as important were the amendments to the Anti-Money Laundering Act, the Bangsamoro Basic Law, the Bangko Sentral ng Pilipinas Charter amendments, the Fiscal Responsibility Act, the Freedom of Information Act and the National Land Use Act.

Among these, De Ocampo said one area the government should focus on right now is easing up restrictions on foreign investments.

“We need to be able to signal that we are open to change, to make our constitution more hospitable to investors,” de Ocampo said.

“While FDI has already increased, it continues to fall at the bottom of the pack,” he added.

Net foreign direct investment (FDI) rose by 65.9 percent to $254 million in October from $153 million a year earlier, reflecting a hint of investor sentiment toward sound macroeconomic fundamentals, the Bangko Sentral ng Pilipinas said.

FDI will likely reach $2.1 billion in 2013, from $2.033 billion in 2012 and $1.852 billion in 2011.

The agriculture and mining sectors are also major areas that need immediate attention, De Ocampo said.

“We need a general agrarian reform to change our land paradigm, which focuses on land ownership rather than productivity.

“We also need to come to a decision in the mining sector to be able to tap the resources which will provide jobs, growth and basic stage for the manufacturing industry,” he added.

Reform coalitions

For agriculture, World Bank lead economist Rogier Van Den Brink said the government should invest again in rice research, improve irrigation, build farm-to-market roads strategically, assist farmers in marketing to make the country not only self sufficient in rice but to bring higher earnings to farmers.

In 2013, palay production reached 18.44 million tons with only 62 days worth of buffer stock compared with the ideal 90 days.

Rice self-sufficiency, a major goal of the Aquino administration, meets the yearly domestic consumption plus a 90-day buffer stock.

Brink suggested more government-initiated dialog with the business sector and multisectoral groups.

“Government should engage in practical dialog and agree on an agenda for job generation, because we need to seize this opportunity… Let’s face it… there are 856 days left [to the Aquino administration],” he said.

“These reforms are nothing new, but now is the time to form coalitions around them… Because if not now, when?” Brink said. – VS, GMA News