With countries continuing to recover from the impact of the Covid-19 pandemic and struggling to deal with fresh headwinds, including heightened geopolitical tensions, opportunities to move forward should be seized by the Philippines, business groups said.
Strategic reforms and investments, in particular, could lead to significant economic improvements, and President Ferdinand Marcos Jr. should focus on measures to achieve those during his upcoming State of the Nation Address.
The Philippine Chamber of Commerce and Industry (PCCI) has identified legislative reforms that it claims will enhance the country's competitiveness. A key issue is the high cost of electricity, which PCCI President Enunina Mangio said was turning off potential investors.
"Investors are facing issues due to the high cost of power here, leading them to choose other countries over the Philippines," she said, pointing out that "more investors mean more employment and more taxes."
"If we can't zero out the VAT (value-added tax), at least reduce the VAT to lower the cost of electricity," Mangio said, adding that this can be implemented as the country waits for additional baseload capacity and renewable energy sources to come online and lower power rates.
The digitalization of micro, small and medium enterprises (MSMEs), which comprise almost all businesses in the country, and improvements to the country's internet infrastructure were also highlighted by the PCCI.
"We need to improve our infrastructure for this. And only the government can do it. Otherwise, growth won't happen," Mangio said.
The Makati Business Club (MBC), meanwhile, has identified five reform measures that it wants Marcos to tag as priorities.
Earlier this month, the business group acknowledged the administration's efforts to promote the Philippines as a key investment destination, pointing to "significant strides" in the country's diplomatic initiatives that had factored in the government having secured $19 billion in investment pledges.
Still, it said, "Reforms in governance, ease of doing business, skills developmen, and improving power and infrastructure need to be fast-tracked [in order] that the country can become more competitive."
Measures that Marcos and his Cabinet could "consider the acceleration" of, it said, are the proposed National Apprenticeship Program Act, Enterprise-Based Education and Training Framework Act, Philippine Downstream Natural Gas Industry Development Act, People's Freedom of Information Act and amendments to the Right-of-Way Act or Republic Act (RA) 10752.
The proposed apprenticeship law seeks to ensure the availability of a qualified workforce with critical in-demand and technical skills while the education and training measure calls for the enhancement of worker skills with the active involvement of the private sector.
The downstream natural gas bill, meanwhile, seeks to promote the development and use of natural gas in the country and the freedom of information measure aims to enhance citizen participation in governance via the adoption of a policy of full public disclosure of transactions involving public interest.
The changes to RA 10752, lastly, are expected to facilitate the implementation of priority infrastructure projects.
"We believe that these important reforms will help accelerate economic growth, improve investor confidence and create an enabling environment for job-creating investments," the MBC said.