Challenge to Noy: Job creation, investments

MANILA, Philippines - As he delivers his fourth State of the Nation Address (SONA) this afternoon, business groups want President Aquino to discuss how the government intends to create more jobs and attract investments to sustain the country’s positive economic performance.

Management Association of the Philippines (MAP) president Melito Salazar Jr. said in a text message to The STAR yesterday that businesses are concerned with how the strong economy can be maintained and improved.

The economy expanded by 7.8 percent in the first three months of the year, faster than the 6.5 percent growth in the same period in 2012.

The first quarter growth was also the highest so far during the Aquino administration.

Salazar said MAP would also like Aquino to report how the country’s economic gains are translating into improvements in the income and quality of life of Filipinos.

“We want to hear how he intends to sustain if not (achieve) better economic growth that is also inclusive,” Salazar said.

Philippine Chamber of Commerce and Industry (PCCI) president Miguel Varela said in a telephone interview that the Aquino administration must identify plans on how to create jobs.

“We want to hear more on employment generation because this is what is needed to make growth inclusive somehow,” he said.

The creation of jobs, he said, will also bring more people out of poverty.

Apart from providing jobs for more Filipinos, Varela said businessmen would also want the Aquino administration to reveal its plans to encourage investors to do business here.

“We should really look at the business environment here and compare it with our neighbors as we are competing with them for investments,” he said.

Varela said amending the economic provisions of the 1987 Constitution could encourage investors to locate here, as the 40 percent foreign ownership limit on certain industries has prevented interested firms overseas from entering the Philippine market.

“If we cannot have constitutional amendments, then maybe we can look at legislative measures that can be passed,” he said.

Among the legislative measures being pushed by business groups is the competition law, which is expected to assure investors of a level playing field.

Varela said businesses are hoping the government will also consider the passage of the Land Use Act and look at how foreign investors which locate here can own the land where their factories are located.

He added that they would also like the government to modernize the Bureau of Customs (BOC).

“By modernizing the Customs, processes and procedures will have to be more defined so as to minimize corruption,” he said.

For his part, Philippine Exporters Confederation Inc. president Sergio Ortiz-Luis Jr. said they would want Aquino to discuss how the government plans to ensure sufficient power supply, which is among the concerns of investors here.

He said businesses are interested in getting a definite schedule for the implementation of the government’s public-private partnership program as infrastructure projects are crucial in improving the country’s competitiveness.

He said an update on the government’s mining policy is also important as mineral products are among the country’s big exports.

Plans to help small and medium enterprises (SMEs) grow, he said, are vital in sustaining the country’s positive economic performance as well.

“Our priority is SMEs because most of our enterprises are SMEs. We want the government to say that they will uphold the law mandating the 10 percent loan portfolio,” he said.

Despite banks being required to allocate eight percent of their loan portfolio for micro and small enterprises and at least two percent for medium enterprises, access to financing remains a challenge for SMEs.