Business clubs cite 7 issues for economic momentum

Members of three business clubs in Cebu, Makati and Iloilo yesterday called on the national government to  address seven critical issues to maximize the momentum of economic growth.

Cebu Business Club president Gordon Alan Joseph read the group’s letter addressed   to President Benigno Aquino III during  the 2nd National Business Conference of Independent Business Clubs and Chambers held  in Marco Polo Plaza in Cebu City.

The issues ranged from a bigger role in the ASEAN and the need for more public investment in the Visayas and Mindanao to the impact of airline taxes   that affect tourism.

Finance Secretary Cesar Purisima, who attended the forum,  agreed with the call for more cooperation  between the private and public sector.

“This is is our time.  It will only be our time if we work together,” he said.

“Our true assets are the people and President Aquino knows that. That is why the government is starting to invest in the people,” said Purisima who noted that the education budget increased from P225 billion to P300 billion.

By 2015, he said, “when  we become one with ASEAN”  the bulk of the   population will reach the “sweet spot” or ideal stage where most citizens are between 16 or of  hiring age  and 60 years old.

“With that we have a huge potential to unleash the power of our manpower. Of all the countries in ASEAN we are among the biggest and most of us are mobile, and we speak English… We are very fortunate and we are on our way towards progress. We can only maximize that by working together,” he said.

Purisima was referring to the ASEAN Economic Community (AEC 2015), which aims to make ASEAN a single market similar to the European Union by 2015.

Seven key issues were outlined for President Aquino in the forum organized by the CBC, Makati Business Club and Iloilo Business Club.

They called for  more Philippine participation in the global supply production network through the AEC 2015.

“AEC 2015 is designed to make ASEAN a single market and production base and a strong regional economic bloc in the global economy,” said Joseph.

They invited deeper involvement of the business sector especially in coming up with the  roadmap to  prepare stakeholders for the integration.

“We need to create a viable supply chain of reliable products thus we really need to have accessible financing to help rural entrepreneurs. We have a lot of lending programs in theory but they are not working,” said Joseph.

The group also supported  the establishment of a  Department of Information, Communication and Technology  to have more focus in  sustaining the growth of telecoms and ICT sectors.

They also asked for government support for rural enterprises.

“We need to create a viable supply chain of reliable products thus we really need to have accessible financing to help rural entrepreneurs. We have a lot of lending programs in theory but are not working,” said Joseph.

The group  called for substantial public investment in the  Visayas and Mindanao, expecially for infrastructure, to help drive economic growth and for a review of the  structure and role of Regional Development Councils.

“RDCs are tasked to undertake planning and recommend infrastructure programs but actually have little input as to whether a project will be implemented or not,” said Joseph.

Decision-making criteria in identifying key projects should be reviewed especially for big-ticket infrastructure projects.

For tourism, the  business group brought up  the  Common Carriers’ Tax and other tax issues affecting airlines, issues surrounding the Customs, Immigration and Quarantine overtime operations and the US Federal Aviation Administration downgrading and the European blacklisting.

These issues have direct impact on the goal of bringing in 10 million foreign tourists by 2016.

Lastly, the business groups called for immediate efforts to reduce the cost and to improve the ease of doing business in the country because this affects the Philippines’  attractiveness to foreign direct investors.

Sourced: inquirer