Businessmen raise nagging concerns at annual meeting

INDUSTRY leaders pressed the new administration to resolve nagging concerns ranging from investment barriers to local government policies at the annual Philippine Business Conference which kicked off yesterday.

Officials from telecommunications, mining, energy and tourism sectors revived familiar issues at the start of the three-day event, which will culminate in the release of policy prescriptions from the Philippine Chamber of Commerce and Industry.

Speakers today, mostly from the public sector, are meanwhile slated to discuss policy priorities at the Trade department, National Economic and Development Authority, the judiciary and Congress.

Vice-President Jejomar c. Binay opened the event with a keynote speech promising more transparent governance. “The road ahead is very much brighter now. There will be no more transactions in the shadows,” he said.

Business leaders then took the opportunity to urge the new administration to act on unresolved concerns including barriers to foreign investment.

Qatar Telcom QSC (Qtel) — San Miguel Corp.’s joint venture partner at Liberty Telecoms Holdings, Inc. — hinted at the importance of a liberal investment regime to industry growth.

Qtel Chairman Abdullah bin Saud Al Thani said the expansion of his firm from a one-country operator to a global player was brought about by the Qatari government’s decision to open up the sector.

“What has caused this transformation of our business? In one word: competition,” he said.

The Philippines limits foreign equity in utilities and other industries to just 40% under its Constitution and bans outright foreign participation in sectors such as media and education.

“A strong relationship with supportive government stakeholders enables companies to better understand the direction of their industries and the challenges and opportunities that will be encountered,” Mr. Al Thani added.

Sagittarius Mines, Inc. President Mark Williams, for his part, said a local government decision to ban open pit mining “remains a major concern.”

The planned operation of $5.2-billion copper-gold prospect of its mother company Xstrata Plc in South Cotabato by 2016 is threatened by the ban.

“We hope open engagement with all parties will [resolve the matter],” Mr. Williams said.

“We appreciate government support for responsible mining. It will significantly contribute to social and economic prosperity and development,” he added.

An energy sector representative similarly urged clearer government directions, saying the private sector is ready to invest.

“We are in a crisis situation,” San Miguel Global Power Holdings Corp. President Alan T. Ortiz said, referring to the country’s looming power supply shortage.

“It’s time to evaluate the Electric Power Industry Reform Act … We are prepared to do our part and build as much capacity [needed] but we need government to say they will remove road blocks.”

Tourism industry players went on to cite the country’s lagging number of international flights and poor showings in US and EU air safety reviews.

Public sector officials at yesterday’s event responded by emphasizing the new government’s strategies.

“Poverty alleviation is foremost in [President Benigno C. Aquino III’s] agenda … through job creation,” Board of Investments managing head Cristino L. Panlilio said.

This aim, in turn, will be met by attracting investments, Mr. Panlilio said.

Tourism Secretary Alberto A. Lim, for his part, said growth strategies for his sector include improving access to the country, building infrastructure to support tourism and “involving local governments and communities.” — J. A. D. Hermosa, Businessworld