PCCI says PH in urgent need of reforms
The Philippine Chamber of Commerce and Industry (PCCI) recommended various initiatives, from agricultural modernization to establishing an energy reserves market, to boost the country’s competitiveness and drive for inclusive growth.
During the 39th Philippine Business Conference and Expo, PCCI said that the government must speed up the delivery of key economic reform initiatives across business sectors and address concerns such as lack of infrastructure, smuggling, corruption, bureaucratic red tape which hamper ease of doing business, and the high cost of power.
With the Asean integration drawing near, concerns over competitiveness and energy were highlighted during the conference.
To boost competitiveness, PCCI recommended simplified and standardized business licensing/permitting at government agencies; the rolling out of sectoral road maps aligned with the Asean integration; creating a public-private council to oversee the Philippines’ participation in the Asean economic community; “multicultural workplace” training for the labor sector; updated labor regulations; and matching education curricula with industry needs.
International Finance Corp. resident representative Jesse Ang said in a speech that the next World Bank-IFC Ease of Doing Business report “will be reflective of improved business situation.”
However, he said, there is still a lot to be done for job-generating sectors (such as agriculture and tourism), for human development (through access to health and education), and for an investor-friendly environment (through infrastructure investments).
On the energy sector, PCCI said the Office of the President must declare power projects and fuel exploration as “national major strategy programs”—and ensure that permits for such are facilitated “with a sense of urgency.”
The industry body urged the Department of Energy (DOE) to mandate and oversee “a regular international power generation supply bidding” to level the playing field among the 109 small utilities serving millions of consumers. PCCI said this will ensure that energy services and rates are based on transparent and well-coordinated supply, reserves and demand forecast. This will, in turn, ensure accelerated industrialization and consumer benefits, PCCI said.
Also, PCCI asked the DOE to ensure reliable, adequate and reasonably priced power supply in Mindanao. As well, the DOE and the Energy Regulatory Commission must fast-track the establishment of the ancillary reserve market and provide mechanism for transparent ancillary services procurement, PCCI said.
“The ancillary services provider shall be given incentives through inclusion of ancillary services” as a priority activity in the 2014 version of the Board of Investments’ Investment Priorities Plan,” PCCI said.
