THE NATIONAL Economic and Development Authority (Neda) is pushing for further removal of investment barriers to facilitate the entry of more foreign capital into the country.
In a position paper it recently submitted to the Senate in line with resolutions looking into the ease of doing business in the country as well as a review aimed at updating the Foreign Investments Act of 1991, Neda urged “liberalization of certain investment areas, except those provided in the Constitution, to increase investments and generate more and decent employment.”
Neda also sought the repeal of laws deemed counter-productive and ineffective to attracting more foreign investors, citing that “excessive or unnecessary regulations are barriers to investment.”
“Proposed regulations that impede innovation, create unnecessary barriers to trade, investment and economic efficiency or duplication between regulatory authorities, or are outdated or poorly designed, must be eliminated or not given force and effect at the outset. On the other hand, existing regulations that are not addressing concerns toward reduction in the cost of doing business in the country need review and amendments, if warranted,” Neda said.
Neda proposed that the Senate review of existing laws should include even implementing rules and regulations (IRR) as well as department orders or memorandum circulars of government agencies.
“We likewise suggest the inclusion of a sunset clause in proposed laws, regulations or other issuances to allow for timely review and recommendation on the applicability and effectivity of the same. This consequently leads to appropriate actions, which include repeal and amendment, among others, initiated by the law-making body or issuing authority,” according to Neda.
To further improve the business climate and jack up the country’s rankings in various ease of doing business surveys, Neda asked the Senate to prioritize the review of the following existing laws as well as proposed legislation:
Amendment of the charters of the Civil Aviation Authority of the Philippines and the Philippine Ports Authority to address conflicts in their operation/operator and regulatory functions;
Amendment of the IRR of the Water Code to strengthen resource regulation and promote more efficient use of water resources;
Amendment of the Tariff and Customs Code of the Philippines as well as the Domestic Shipping Development Act to foster greater competition and lower transportation cost;
Customs modernization by amending the Tariff and Customs Code, consistent with the prescribed standards and recommended practices of the Revised Kyoto Convention;
Harmonization of various incentive-giving laws such as those given by the Board of Investments, Philippine Economic Zone Authority, special economic zones, and other statutes through the Rationalized Fiscal Incentives Act;
Leveling of the business playing field by strengthening the legal and institutional framework to prevent unfair and anticompetitive practices through the enactment of the Anti-Trust/Competition Policy Act;
Rationalization of grains trading sector and restructuring of the National Food Authority by separating its regulatory and proprietary functions through the NFA Reorganization Act, and
Reduction of domestic shipping costs through the review of the sabotage rule and leveling of playing field among domestic and foreign shipping lines.