Neda urges further opening up of PH services sector
In light of the economic integration under the Asean community by 2015, the Philippines should further open up its services sector to take advantage of regional opportunities while fostering inclusive growth, according to the National Economic and Development Authority (Neda).
“Overall, the fast growing industry sector, the growing middle-income class, the continued strong inflow of overseas Filipinos’ remittances as well as the increasing number of skilled Filipinos boost the demand for services sector and this bodes well for the growth of our economy,” Neda director general and Economic Planning Secretary Arsenio M. Balisacan said in a statement on Friday.
Balisacan said, however, that the services sector remains challenged with the concentration of the gross value added in Metro Manila and Calabarzon, employment vulnerability in most subsectors as well as low levels of productivity.
The Neda chief expressed optimism that the strategies aimed at strengthening human capital under the Updated Philippine Development Plan 2011-2016 would strengthen the services sector.
“The government shall remain focused on its policy commitments, and shall constantly engage the private sector to help realize substantial gains from available opportunities, including the fast-approaching Asean Economic Community,” he said.
According to Balisacan, “there is a need for a more decisive, innovative, and strategic approach to further open up the Philippine services sector to realize its potential for growth and employment generation.”
At present, “the Philippines is considered as having one of the most restrictive policy regimes for services, with the highest degree in professional services,” Balisacan noted.
Neda deputy director general Emmanuel F. Esguerra said at a recent forum that besides measures limiting market access, there are also restrictive measures such as balance sheet requirements, as well as limits in the number of branches or franchises under the Retail Trade Law of 2000.
