Reforms could help RP grow as fast as China

MANILA, Philippines - The Philippines was urged to introduce reforms within the next two years so that it could grow as fast as China, foreign business groups said. In a briefing, the Joint Foreign Chambers of the Philippines said the next two years would be an “ideal" time to begin to introduce reforms to accelerate growth of agri-industrial, business process outsourcing, creative industries, infrastructure and logistics, manufacturing, mining and tourism. The government should set a recovery growth target as high as 10 percent by 2013 or 2014 and design and implement a plan to achieve high growth, the group said. Economic reform legislation should be enacted, Amcham chairman for legislative committee John D. Forbes said. These include the amendment of Customs Brokers Act, rationalization of Investments and Incentives Code, Pre-Need Code, Real Estate Investment Trust, Reproductive Health Act, Residential Free Patent, and Freedom of Access to Information, amendment of laws to avoid Organization of Economic Cooperation and Development (OECD) blacklist of "uncooperative tax haven" and the Revised Kyoto Convention. Barriers to foreign participation should be reduced by reviewing old restrictions on foreign equity and foreign professionals and special taxes and fees on foreigners. "Progress in reducing barriers to foreign participation sends a message that RP is seriously preparing for free trade negotiations with European Union and United States and would facilitate success of such negotiations. The window of opportunity is right now," Hubert d'Aboville, president of the European Chamber of Commerce of the Philippines, said. Nobuo Fujii, vice president of Japan Chamber of Commerce and Industry of the Philippines, said government should take "forceful and effective" actions against corruption and smuglling. As only two percent of the country's gross domestic product was spent on infrastructure last year, Australian-New Zealand Chamber of Commerce Philippines vice president Chris Ward said the government should build modern infrastructure faster. "Projects to improve ground transportation especially in the National Capital Region and central Luzon, should move faster. New toll roads and rail lines are urgently needed. Over 10 major road projects are designed but not implemented," Ward said. The government should prioritize high speed rail line between Manila and Clark and address the growing concern over future supply of electricity for all three grids. "New plants must become operational in time to satisfy future demand for power. Availability and quality of water is a concern, as is continued environmental degradation," Ward added. As education in the Philippines has "deteriorated," Canadian Chamber of Commerce of the Philippines executive director Sean Georget said the Joint Foreign Chambers supports massive increase in education budget and extending basic education by two years. Half a million teachers should have higher salaries and more resources while large investment in school facilities is needed. "English, math, science, logic and technical skills of students entering the workforce should meet requirements of modernizing the economy," Georget added. While the Arroyo administration has initiated policies and programs to raise the country's international rankings into top three, the Joint Foreign Chambers supports all efforts to improve investment climate, which "must be sustained and intensified to produce more positive results sooner." - Ruby Anne M. RUbio, GMANews.TV