THE PHILIPPINE Chamber of Commerce and Industry (PCCI) urged the government to prioritize reforms to develop economic corridors, strengthen energy security and modernize agriculture to boost the country’s competitiveness.
In its resolutions for the 52nd Philippine Business Conference and Expo (PBC&E), the PCCI called for a national business agenda that goes beyond attracting investments “to creating Philippine value, through stronger domestic supply chains, productive enterprises, competitive workers, reliable infrastructure and energy, efficient trade, and a predictable regulatory and tax environment.”
The PBC&E resolutions covered 10 integrated priority areas needed to attract investments and create value for the Philippine economy.
“These priorities must be underpinned by good governance anchored on accountability, transparency and integrity, so that public decisions, investments and programs are implemented fairly, resources are used responsibly, and progress can be monitored against clear commitments and results,” the business group said.
The PCCI emphasized the importance of the Luzon Economic Corridor, alongside the opportunities associated with Pax Silica, as a starting platform for showing how infrastructure, investment, technology and connectivity can be developed as an integrated economic system.
The government should use economic corridors and major investments as platforms for value-chain development, while strengthening targeted sectors, it said.
One of the priority areas is the development of economic corridors and strategic infrastructure.
It urged the government to prioritize connections among ports, airports, industrial areas, agricultural production clusters, tourist destinations, and regional growth centers.
The government should also advance the Greenlane for Contractors in Good Standing, strengthen digital infrastructure, and conduct a regular public-private review of trade-critical projects.
The PCCI also called for reforms to secure reliable and affordable energy, which is a prerequisite for digital infrastructure, manufacturing, and tourism.
The government should resolve generation, transmission and interconnection bottlenecks affecting industrial and economic-corridor development; improve access to distributed generation, renewable energy, storage and energy efficiency; reduce electricity costs; and improve predictability for investments.
The PCCI also pushed for reforms to develop Philippine suppliers for strategic industries to improve domestic value creation and attract investments. Among its suggestions was the launch of strategic industry supply-chain mapping for semiconductors, electronics, and advanced manufacturing.
At the same time, the business group emphasized the need to modernize agriculture production towards integrated agri-food value chains, higher productivity, lower logistics costs, and market access.
The PCCI said trade, logistics and digital trade should be a priority, urging the government to resolve Customs bottlenecks and to advance the National Single Window System. It also called for stronger inter-island logistics capacity, as well as introducing paperless and small business-friendly trade processes and simplified Customs procedures.
TAX REFORM
The business group also said regulations and tax administration should be a facilitator of investment.
“The tax and regulatory environment should be fair, simple, transparent, predictable, taxpayer-centered, risk-based and digitally enabled. Local taxes, fees, and charges should be equally predictable,” it said.
The PCCI called on the government to fully implement risk-based tax audits, rationalize letters of authority, particularly for micro, small, and medium enterprises (MSME) and strengthen taxpayer due process.
It also urged the government to accelerate reliable broadband, common towers, data centers, and cloud facilities.
The PCCI said the government should strengthen national quality infrastructure and standards, address skill mismatch in the job market, and exploit opportunities in tourism and the halal system.
To support the priority areas, the PCCI urged Congress to pass 15 priority measures, including a general tax amnesty, a Customs amnesty, amendments to the Philippine Ports Authority charter, the International Maritime Trade Competitiveness Act, amendments to the Magna Carta for MSMEs, revisions to the Warehouse Receipts law, and the National Quality Infrastructure Development Act.
“The 52nd PBC&E therefore calls for a whole-of-government and whole-of-business approach that combines immediate, implementable reforms with medium-term institutional and legislative measures, and ensures that the benefits of growth reach agricultural production areas, regional centers, tourism destinations, Mindanao and BARMM, and other communities,” PCCI said.
The PCCI’s membership includes 35,000 networks nationwide, including private companies and enterprises, associations, chambers of commerce, organizations, and business groups. — B.M.D.Cruz