Malacañang has reportedly accepted the resignation of Gregory Domingo and he is set to leave the Department of Trade and Industry by next month. The business community expressed regret yesterday over the looming departure of Domingo, an original member of President Aquino’s Cabinet.
Going by surveys since Domingo took office, he is regarded as one of the better performers in the Aquino administration. If the country has improved in international rankings on ease of doing business, much of the credit goes to Domingo, who has pushed for policies that make the country more attractive for investments.
The secretary of trade and industry, however, can only do so much. Despite earning investment grade from all the major credit rating agencies and even with sustained high business confidence since 2010, the country lags behind all the founding members of the Association of Southeast Asian Nations in terms of foreign direct investment.
Among the biggest hindrances to business, according to investment groups, are red tape and layers of fees, many of them pointless and redundant, imposed by local government units including barangays. President Aquino should review LGU requirements for starting, operating and closing a business before he brags to foreign ministers that his administration has cut red tape.
LGUs, many of which are headed by political dynasts with family businesses and crony interests to protect, often place the biggest roadblocks to investments that can generate meaningful jobs and create sustainable livelihoods.
Whoever replaces Domingo should work closer with the new secretary of the interior and local government to craft measures that can be applied at the local level to cut red tape and generate investments. The new trade and industry chief must also help prepare the nation for the challenges arising from tough foreign competition when the ASEAN Economic Community is created at the end of the year. Among the competitors will be giant state-backed companies that can kill much smaller, fully private Filipino enterprises.
By most assessments, Domingo has done well. With the challenges ahead, President Aquino must pick a replacement who is just as capable if not better.