By Caesar Vallejos
Eagle News Service
European companies and Filipino businessmen engaged with the country’s top cabinet officials at the EU-Philippines Business Summit which was highlighted by discussions on Philippine competitiveness held at the Solaire Grand Ballroom last October 18, 2018.
Organized by the EU-Philippines Business Network (EPBN), the forum carried the theme “Jointly Pursuing Competitiveness for Inclusive Growth”, which centered on how Philippine trade and investment regulations and policies impact to the creation of a competitive business environment “in the spirit of inclusive growth for all.”
“Competitiveness is the hallowed benchmark that we must all be measured against,” Deputy Speaker Arthur Yap, said in his speech on the Forum’s Infrastructure track.
Yap underscored the importance of competitiveness “in a world driven by innovation, integration, inefficiencies, continuing volatilities,” in any sector, “be it in banking , agriculture, healthcare, shipping” and other industries.
Stagnant construction industry
He cited the latest Word Economic Forum report which ranks the Philippines in 92nd place out of 140 countries in terms of infrastructure. The Philippines is behind Vietnam, Thailand, Brunei and Malaysia.
Yap stressed that the Philippine construction industry must be competitive as the Duterte Administration is “taking its entire development efforts on the Build Build Build program” of the government.
The Deputy Speaker updated the delegates that there is a review on the reasons of the “stagnation of the construction of the industry as a whole.”
He emphasized the need to not only look at the concerns of foreign investors in the construction industry but also at the plight of the local construction players.
“Further investigation is needed on the general issue of bidding procedures and participation in local infrastructure projects,” Yap said.
He identified lagging issues such as “bureaucratic red tape, anti-competitive measures, right of way issues that and other factors that hinder the participation of the local contractors in bidding for projects.”
“Measures should be taken to minimize if not eradicate questionable practices such as the borrowing of licenses for qualified contractors which is a prevalent practice today,” he said.
Yap will recommend the review of the Implementing Rules and Regulations of Republic Act 4566, the Act creating the Philippine Licensing Board for Contractors, and to amend it after proper consultation with stakeholders to ensure “the removal of the distinction in the granting of a license to Filipinos and foreign-based contractors.”
Clean government
Meanwhile, on the IRR of the Anti-Red Tape Act (ARTA), Department of Trade and Industry Secretary Ramon Lopez said that “the only problem is that we don’t have the Director General (DG) of the ARTA.”
“We will pass the IRR once we have the DG to be appointed by the President – a leader with the stronger hand that can really orchestrate different departments to continuously improve various processes.”
Lopez emphasized that “it is a harsh law” because government employees who violate it “can be suspended, terminated, imprisoned up to 5 years and fined up to 5 million and all his benefits will be forfeited.”
“We project that we might run out of government employees in the future with this law when it will be implemented,” the Secretary quipped.
Lopez echoed President Duterte’s assurance to foreign businesses that “your investments will be protected here, and the government will be clean.” Lopez mentioned that this is the reason why the President rushed the passing of the Ease of Doing Business bill, “the law that will ensure getting rid of corruption in government.”
Competitive destination for EU businesses
The Forum aimed to further improve the country’s position as a competitive destination for EU businesses in the areas of infrastructure, environment and water, healthcare, tax reform, and the liberalization of economic activities. It also showcased the presentation of the EU Advocacy Papers, a collection of position papers detailing action points and joint priorities by the private sector and government.
According to EPBN Steering Committee Chairman and ECCP President Guenter, the Philippines is home to more than 30,000 European citizens and over 600 European companies that generate more than 550,000 jobs locally.
Other speakers at the Forum were EU Ambassador Franz Jessen, House Speaker Gloria Macapagal-Arroyo (video-recorded message), NEDA Secretary Dr. Ernesto Pernia, Senate Committee on Economic Affairs Chairperson Senator Sherwin Gatchalian, Congressman Dakila Cua, PEZA Director General BGen Charito Plaza, Former Presidential Spokesperson Atty. Harry Roque, and DOF Asec. Teresa Habitan.
