SONA draws mixed views from Cebu business leaders

CEBU, Philippines – The last State of the Nation Address of President Benigno Aquino III drew mixed reactions from Cebu business leaders however they equally took into account the economic gains the country has gained under his term.

Mandaue Chamber of Commerce and Industry (MCCI) President Donato Busa said the chamber has generally admired the Aquino administration for bringing more investments into the country.

"We concur that he is one of the best presidents," said Busa in a phone interview yesterday, quoting the chamber's past presidents. He said he met with the past presidents in a board meeting on Monday night and talked about Aquino's Sona.

When asked to rate Aquino in terms of accomplishing the reforms he promised, Busa said they agreed to give him a near-perfect grade of 9 out of 10.

Cebu Chamber of Commerce and Industry (CCCI) President Ma. Teresa Chan said Aquino’s Sona was “very good” as he was able to report his administration’s significant achievements which were substantiated by figures. For that, she said she would give Aquino a grade of 8.

Chan thought that Aquino’s citing of the previous administrations was aimed at comparing how things such as poverty reduction and economic growth changed in his term.

Chan also hoped the administration’s fight against corruption will continue. “Kung wala talagang corruption, mas marami mapupunta sa investments for the economy,” she said in an interview by phone.

She added that Aquino would be able to leave a good “groundwork” for the next administration to continue reforms and make them sustainable. If reforms are sustained, Chan said the President would be able to make the country “much better” than when started office in 2010.

But for Cebu Business Club (CBC) President Gordon Alan Joseph, President Aquino "did not say anything new" in his two-hour and 15-minute sixth and last Sona on Monday – something that he had expected already.

Joseph made an emphasis on the fundamental issues that the government should have addressed.

"The bottom line is that infrastructure is badly needed and I am not [only] talking about PPPs (public-private partnership)," Joseph told The FREEMAN in a text message on Tuesday.

"We are still poor in attracting foreign investments and in creating jobs. These fundamental issues must be addressed," he added.

He pointed out the Aquino government should focus into the legislative priorities, considering the few months left before the change of the next administration.

The CBC official said: "All the pending legislature really. They are all important and of utmost importance is the revised road right of way law."

Among other legislative priorities include the Customs Modernization and Tariff Act, Bangsamoro Basic Law, Freedom of Information Bill, law amendments of Build-Operate-Transfer (BOT) and the creation of Department of Information and Communications Technology.

Rey Calooy, president of Filipino-Cebuano Business Club (FCBC), noted the reforms that the Aquino government has started should be continued by the next administration.

Aquino's successor must build on the reforms he has started, he noted.

Calooy particularly cited that anti-corruption, being one of Aquino's thrusts in his "Daang Matuwid" platform, should be continued. He said corruption is one of the country's biggest problems for so many years now.

"This [combating corruption] is a continuing effort," Calooy said in a separate phone interview. "This will be a continuing effort."

The businessman also acknowledged that Aquino's anti-corruption efforts have restored the trust of international investors on the Philippine economy.

Busa, for his part, thought that achieving inclusive growth is still going to be a challenge, saying that rapid economic growth in the Philippines in recent years has not trickled to the poorest of the poor.

Although Calooy mentioned that the Philippine economic growth has some of its best years within Aquino's term, he said there's "more to be done" the sustain the momentum.

When Busa was asked on the business sector's biggest concern, he said it's the economic integration which, he said, puts the small and medium enterprises at risk if there is lack of government support.

The chamber official urged the government to work on the development of the SME sector to make its players more competitive amid the Asean (Association of South East Asian Nations) integration.

Marco Nino Velasco, a stock market investor, said: “PNoy did well. Trust is still there as investors are still buying into his anti-corruption campaign. However, the upcoming election is very critical.”

In general, business leaders suggested that reform continuity is what the Philippines need to sustain its growth and even outpace other nations in terms of competitiveness.

In his speech on Monday, Aquino mentioned the investment-grade rating the country received from global credit rating agencies and its improvement in global competitiveness rankings.

"Malinaw ang sinasabi nito sa mga negosyante: Sulit mamuhunan sa Pilipinas; nabawasan na ang peligro sa pagnenegosyo dito," the President said. "Ngayon, mas mababa ang interes at mas mahaba ang panahon ng pagbabayad ng utang, na nakakaengganyo sa mga negosyanteng tumaya sa Pilipinas. Sa pagtatayo at pagpapalawak ng negosyo, sisigla ang kalakalan, lalakas ang kompetisyon at dadami ang oportunidad."

Aquino cited some data to support claims on economic expansion such as that: net foreign direct investments hiked to $6.2 billion last year from $1.97 billion in 2010; approved domestic investments from the third quarter in 2010 to 2014 reached P2.09 trillion compared to P1.2 trillion from 2003 to early 2010; the 8% annual manufacturing growth in 2010-2014 from 3% in 2001-2009; and last year's 6.8% average unemployment rate which was at its lowest in decade.