It’s not fun to do biz in Phl, Business leader calls on government to see the real problem

CEBU, Philippines - Despite claims that the Philippines is now readying itself to big-ticket investments and compete with the rest of the world, business players want the government to be in touch with reality and stop creating policies that make doing business more difficult in the country.

"It’s not fun to do business in the Philippines. The reality is business cost is driven up with more bureaucracy, problem of port congestion and high taxes,” said Cebu Business Club (CBC) president Gordon Alan P. Joseph.

Joseph who runs a large wine importation business said that new rules imposed by the Food and Drugs Authority have introduced more opportunity for bureaucracy and corruption, while they create complicated requirements with only a handful of people being hired to do the job.

"They implement something that even themselves are not capable of implementing," said Joseph.

To import a wine for instance, importer has to pay 300 to 400 Euro per label to get the proper permits and other regulatory requirements.

"Taxes are high. They are treating everyone like everyone is guilty," said Joseph adding that the problem of flooding, and other crazy infrastructure set-up in most urban areas like Cebu and Manila are just one of the obvious examples of the country's unpreparednesss to participate in the global competition.

The most pressing concern is the unresolved problem of port congestions which already discouraged existing manufacturers to expand here and even entertaining possibilities of transferring plants to other ASEAN countries.

"There is a clear disconnect between the bureaucrats and competitiveness. We are still behaving like a third world country, "said Joseph.

Joseph also joined other businessmen in the call for the government to see the reality that the port congestion issue is already hurting the country's industry players.

Now that the "ber" months have already started, the threat of product shortage, price increases in most consumer goods are expected, while port congestion problem worsens.

Some companies (if not all) have already put in additional charges to products and services with the rise of business costs. With more products stuck at the ports resulting to shortage, prices of consumer goods are seen to rise.

The “ber” months –  from September to December – are supposed to be peak season for importers. But, not this year.

Importation of food – like fruits, poultry and other meat products – is unlikely to increase in volume in the “ber” months due to the continuing port congestion, a group of truckers, importers and brokers said in a recent pronouncement.

A drop in the number of imported goods is expected since many shipments from Singapore, China, and Hong Kong have yet to reach Manila ports.

Starting this September, importers intend to get hold of their cargoes ahead of the Christmas holidays. The latter part of the year is one of the busiest periods for businesses, in which the collection shortfall is expected to be offset.

According to Joseph importers like him have to pay at least $220 per container because of the delay. This does not include other bureaucratic red tape fees. (FREEMAN)