Legal reforms seen as key to national competitiveness

LAWS ARE often perceived as a set of rules put in place by a government to regulate the behavior of its citizens by establishing standards, maintaining order, and protecting liberties and rights.

- By Jomarc Angelo M. Corpuz

BusinessWorld reporter Chloe Mari A. Hufana (left) moderated the fireside chat with Atty. Nilo T. Divina of DivinaLaw.

However, aside from its regulatory function, legal reforms also play a big hand in stimulating a country's growth and boosting its economy.

This was deeply emphasized during the first Fireside Chat of the recently concluded BusinessWorld Forecast 2026. The conversation, themed "Legal Landscape 2026: Legal Reforms as Catalyst of Growth," was headlined by DivinaLaw Founder and Managing Partner Atty. Nilo T. Divina.

"Legal reforms are not merely a set of new rules and policies. They are economic drivers," Atty. Divina said in his presentation prior to the one-on-one interview. "They can accelerate growth, inspire innovation, attract investment, and create jobs. But, if implemented poorly or unfairly, they can only distort markets, discourage capital, and widen inequality."

He then delved into the strengths and challenges of the country based on its current circumstances. Mr. Divina noted the Philippines' young population and growing digital economy as some of the positives, while mentioning inflationary pressures, infrastructure gaps, and governance accountability issues and concerns as negatives. He concluded, then, that legal reforms with implementation must do the heavy lifting.

According to Atty. Divina, several laws passed in the past five years have positively impacted the country's economy and growth. The first of which is Republic Act No. 11659, or the New Public Service Act. The reform updates the 85-year-old Commonwealth Act No. 146 (Public Service Act) by revising what qualifies as "public services" and allowing increased foreign participation in select industries, while preserving restrictions for key strategic sectors.