GMA hails Metro mayors' agreement

MANILA, Philippines - President Arroyo hailed as monumental and momentous the covenant signed by the Metro Manila mayors to streamline the process for business permit applications as it now “puts the Philippines on the map of attractive destinations for business.”

Speaking at the National Convention of the League of Cities of the Philippines at the EDSA Shangri-La Hotel in Mandaluyong City, the President welcomed the move of the Metro Manila mayors, which she said would reduce red tape as well as the cost of doing business. President Arroyo noted that the initiative would greatly benefit businesses, particularly those that are feeling the strain of the global financial crisis.

The covenant, which was presented by the mayors to the President yesterday, would pave the way for the reduction of the steps needed for securing business registrations from the present 19 to just seven days. A unified, single business permit form would be adopted by the local government units as well as a one-time assessment of business permit related fees and charges.

LCP president Benjamin Abalos Jr. said that the move of the Metro Manila mayors was prompted by the concerns raised by the President and the National Competitiveness Council about the low ranking of the Philippines in the World Bank’s Doing Business Survey. Based on the Doing Business 2009 report, the Philippines ranked 140 out of 181 countries as far as ease of doing business is concerned. The result of the survey was based on several factors such as ease in securing the necessary permits for starting a business.

Foreign and domestic businesses have long complained of red tape as one of the major problems they faced, particularly when securing business permits from the concerned LGUs. The tedious process in securing business permits in the country has discouraged a lot of investors from coming in to the country since they also rely on feedback from the other businesses with experience in the country in making their decisions.

On Aug. 21, the Anti-Red Tape Act went into effect with the approval of the implementing rules and regulations for the law.

Under the law, the processing of business permits should be done within a period of 10 days.

“To be world-class for global competitiveness, we invest in reducing red tape in all agencies to cut business cost,” the Chief Executive said in a previous speech.