Time running out, businesses warn Aquino

Joint Foreign Chambers says doing business in the Philippines is getting more costly and difficult, urges economic reforms

THE Joint Foreign Chambers and local business groups on Tuesday warned President Benigno Aquino III that time is running out on the economy because doing business in the country is getting costly and difficult.

They urged the government to amend the Constitution to open up the economy and make the business climate more favorable to foreign and local investors.

House Speaker Feliciano Belmonte Jr. assured the foreign business groups that he and Senate President Juan Ponce Enrile would have a “real talk” with the President to get him to support the “lifting of the restrictive economic provisions.”

“We are grateful, Mr. Speaker, that you are pushing the amendments of certain provisions of the Constitution,” said Hubert d’Aboville, president of the European Chamber of Commerce and Industry.

“While the Senate President appears to be on the same course, President Aquino keeps on saying that this is not on his priority list. What is encouraging is that more and more business groups are supporting an opening of the economy.”

D’Aboville said the foreign direct investments in the Philippines would “remain very low as it has been in the past decades” if the economy wasn’t opened up.

“We are also aware that the elections in 2013 will affect the legislation process sometime in the latter part of 2012,” D’Aboville told House leaders and foreign businessmen during their second dialogue in the House.

“Time is precious but time is running out.”

Another 10 priority bills were added to the 10 priority economic bills that the House leaders agreed to speed in their first meeting with the foreign businessmen in February. Most of the priority bills were approved on third and final reading and transmitted to the Senate.

John Forbes of the American Chamber of Commerce urged Congress to ask the government not to charge the airlines and shipping companies overtime and allowances for Customs, Immigration and Quarantine personnel.

D’Aboville said KLM had pulled out of the Philippines, while Northwest Airlines and Delta Airlines had reduced their flights to 12 a day from 24 previously.

“Without the direct flights, the Philippines is risking to lose 360,000 European tourists a year that spend easily $1,000 a day for two weeks,” D’Aboville said.

He said the Philippines was losing tourists to Japan, Thailand and Cambodia.

“If things improve here, the European tourists could come back,” he said.

D’Aboville also cited the smuggling at Customs. “You have thousands of container vans gone missing,” he said.

Julian Payne, president of the Canadian Chamber of Commerce, said amending the Constitution was “the best way to bring in foreign direct investments.”

“It is not just all about money or cash,” he said.

“The bottom line is, the Aquino government is missing out on foreign direct investments, modern technology, skills management training, trades and employment.”  –Christine F. Herrera, Manila Standard Today