2014 ‘critical’ for PH, PCCI says

The Philippine Chamber of Commerce and Industry (PCCI), the country’s largest business organization, has urged the government to take “decisive” actions in 2014 to ensure that the country will benefit from the coming economic integration of the 10 member-states of the Association of Southeast Asian Nations.

Such actions should be geared toward building the competitive advantages of local businesses and addressing growth constraints, said PCCI president Miguel B. Varela.

“Next year is a critical year to take decisive action if companies are to satisfy a market of strong consumers with products and services. We could lose out to our competitors if we delay in removing the constraints that have been making us just play catch up. Expanded trade has also an impact on the job-creating capacity of the economy,” Varela said Friday.

Varela added that the government could clear the list of constraints and enable the private sector to maximize the competitive advantages by ensuring the adequacy and cost-competitiveness of fuel and electricity to power the growth of industries; and rehabilitating, expanding and modernizing airports and seaports to accommodate the growing number of tourists and rising volumes of traded goods domestically and internationally.

The government also has to construct roads, rails and bridges with priority given to linking airports and seaports to cities and key destinations and farm-to-market roads; streamline business permits and licenses to facilitate the entry of investments as well as encouraging micro and small industries to be registered into the mainstream economy; and improve customs administration and procedures to facilitate trade while improving border controls.

PCCI also stressed the need to strengthen the country’s capacity to participate in regional trading activities; improve education standards and enhance the curriculum based on market analysis and emerging trends; and promote competition to seize the benefits of liberalizing trade and investment environment.

“Certainly, the rosy picture painted by our economic managers could result in the transformation of the Philippine economy into a powerhouse economy if the government, with the support and partnership of the private sector, is able to address the constraints to growth,” Varela added.

Free trade under the Asean Economic Community will allow foreign firms located within Asean to sell at zero or at most 5 percent tariffs.