Businesses want swift OK of ARISE

MANILA, Philippines — A total of 44 business organizations want Congress to speed up deliberations on the Accelerated Recovery and Investments Stimulus for the Economy (ARISE) bill, formerly the Philippine Economic Stimulus Act, to allow the economy to recover from the effects of the coronavirus disease 2019 or COVID-19 pandemic.

In a statement yesterday, Alyansa Agrikultura, American Chamber of Commerce of the Philippines, Anvil Business Club, Asia Pacific Real Estate Association - Philippines, Australian – New Zealand Chamber of Commerce Philippines, Bangsamoro Federal Business Council, Canadian Chamber of Commerce of the Philippines, Cebu Business Club, Cebu Leads Foundation, Chinese Filipino Business Club Inc., European Chamber of Commerce of the Philippines, Federation of Filipino - Chinese Chambers of Commerce and Industry Inc., Filipino CEO Circle, Financial Executives Institute of the Philippines, Fintech Alliance.

PH, French Chamber of Commerce and Industry in the Philippines, Institute for Solidarity in Asia Inc., Institute of Corporate Directors, Investment House Association of the Philippines, Information Technology and Business Process Association of the Philippines, Japanese Chamber of Commerce and Industry of the Philippines Inc., Korean Chamber of Commerce Philippines, Makati Business Club, Management Association of the Philippines, Mindanao Business Council, National Real Estate Association, Organization of Socialized Housing Developers of the Philippines, People Management Association of the Philippines, Philippine Association of Multinational Companies Regional Headquarters Inc.,  Philippine Center for Entrepreneurship (Go Negosyo), Philippine Chamber of Commerce and Industry, Philippine Council of Associations and Association Executives, Philippine Franchise Association, Philippine Institute of Certified Public Accountants, Philippine Life Insurance Association, Philippine Retailers Association, Philippine Women’s Economic Network, Procurement and Supply Institute of Asia, Semiconductor and Electronics Industries in the Philippines Inc., Shareholders’ Association of the Philippines, Subdivision and Housing Developers Association, Tax Management Association of the Philippines, University of the Philippines School of Economics Alumni Association and Women’s Business Council Philippines said they support the ARISE bill to help protect jobs and businesses, particularly micro and small enterprises (MSMEs) which employ more than 62 percent of the total workforce.

“We appeal to the House of Representatives, the Senate and the administration to have thorough but speedy deliberations to produce a law for this stage of the crisis and recovery. We support the calls for President Duterte to call a special session of Congress to act on this and other similar legislation,” the groups said.

ARISE seeks a P1.3-trillion stimulus package to help the economy regain its strength amid the health crisis.

Under ARISE, funds would be allocated to implement an enhanced Build Build Build program to include projects on health care, education and food security.

Funds would also be earmarked for mass testing, wage subsidies, loans for MSMEs, as well as to provide assistance to tourism, transportation industry, manufacturers, and agriculture and fishery.

The groups said ARISE would be an effective program to build on Bayanihan Law and other measures President Duterte and the Bangko Sentral ng Pilipinas have rolled out in light of the COVID-19 outbreak.

In addition, the groups said ARISE would complement the proposed Corporate Recovery and Tax Incentives for Enterprises Act (CREATE).

CREATE, the repackaged version of the proposed Comprehensive Income Tax and Incentives Rationalization Act, seeks to immediately bring down the corporate income tax to 25 percent from 30 percent by July, as well as provide flexibility in grant of fiscal and non-fiscal incentives.

Passage of ARISE would also bring the country close to or exceed stimulus spending provided by neighboring countries in response to COVID-19.

Data from the Asian Development Bank showed that as of May 18, the Philippines’ total package for COVID-19 measures amounted to $19.82 billion, lower than what other countries in Southeast Asia have implemented such as Thailand with $84.09 billion, Indonesia with $64.27 billion, Singapore with $45.06 billion, Malaysia with $35.47 billion and Vietnam with $26.40 billion.

The Philippines’ package, however, is higher than Cambodia’s $2.06 billion, Brunei Darussalam’s $318 million, Myanmar’s $99 million and Lao People’s Democratic Republic’s $10 million.

“As the country reopens and the economic effects of the pandemic become clearer, a strong new law would provide much-needed support and confidence to COVID-19 frontliners, workers, and businesses,” the groups said.

The groups said wage subsidies would allow workers to provide for their families, let their children continue their education, and help drive the economy.

“Loans, grants, and guarantees will help businesses pay suppliers and banks, strengthening all of them for the challenging months and years ahead,” the groups added.