The business community is now more optimistic over the prospects of the economic recovery as it grapples with the effects of the pandemic following President Duterte’s call to Congress for the immediate passage of three key economic bills as well as his statements of a renewed emphasis on infrastructure, ease of doing business and continued support to micro, small and medium enterprises (MSMEs).
But businesses also see challenges in these same economic issues mentioned by Duterte in his last State of the Nation Address (SONA) yesterday.
Francis Chua, chairman emeritus of the Philippine Chamber of Commerce and Industry (PCCI) said the Duterte administration can be credited for completing infrastructure projects started in previous administrations but this is due in large part to private sector partners.
A number of these infrastructure projects are still in the pipeline.
According to Chua, doing business in the country remains a challenge despite the passage of the Ease of Doing Business Act and the implementation of several measures that would have improved the country’s global ranking.
Duterte urged Congress to immediately pass the amendments to the Foreign Investments Act, the Public Services Act and the Retail Trade Liberalization Act, measures long been clamored by the business sector to attract more investments.
“These key legislations are most welcome as they would help restore the economy,” Chua said.
Duterte also assured the government will continue to monitor the relevance and impact of the country’s tax laws for individuals and corporations to prevent serious damage on their financial health.
The American Chamber of Commerce welcomed inclusion of priority legislation of Philippine business groups and the Joint Foreign Chambers in Duterte’s SONA.
“We see this as strong signals that the bills mentioned are being prioritized for passage soon. They will support economic recovery in the years ahead,” commented AmCham executive director Ebb Hinchliff.
Chua said while the country’s credit rating — which is important when seeking government loans — has been good, this is challenged due to the prolonged pandemic.
Duterte also hinted on possible restrictions if and when cases of the Delta variant of the new coronavirus disease 2019 surge which business feel can further detail the economic recovery.
The president also cited the role of MSMEs in job creation especially in the light of the unemployment in the country.
Duterte also mentioned that among the legacies of his administration in the sector of agriculture includes free irrigation as well as the passage of laws that will finally utilize the coconut levy and the enactment of rice tariffication.
For the Federation of Free Farmers, “there is little” for farmers to thank the government for when it comes to efforts on agriculture.
“The Rice Tariffication Act and Coco Levy Act were rammed through Congress over the objections of farmers. There is little for farmers to be happy about during his administration,” said Raul Montemayor, the group’s national manager.
