Business groups say execution of reforms key to regaining investor trust

PHILIPPINE BUSINESS groups view the government's pledge of “big bold reforms” as a credible step to rebuilding investor confidence but warn the real impact will depend on swift and decisive implementation.

- By Aubrey Rose A. Inosante Reporter

Foreign Buyers Association of the Philippines President Robert M. Young said the reforms pledged by the economic team before the business community were “music to the industry’s ears.”

“However, this will all depend on the urgent time of execution and implementation,” he said during a phone call with BusinessWorld over the weekend.

Last Friday, the Marcos administration unveiled reforms aimed at improving the ease of doing business and encouraging more investments in the country.

These include the restoration of P4.32 billion in fiscal support for the Comprehensive Automotive Resurgence Strategy (CARS) program in this year’s budget; visa-free entry for Chinese visitors for up to 14 days; a digitized audit system from the Bureau of Internal Revenue (BIR); and the national single-window trade facilitation platform of the Bureau of Customs.

This came as a corruption scandal over anomalous flood control projects dampened investor sentiment and contributed to slower growth, household consumption, and public spending.

“We say that the ease of doing business in its entirety is the most vital among those mentioned. And nothing will change as long as the old system will prevail,” Mr. Young said.

He also said the reforms signal that Finance Secretary Frederick D. Go, the former president and chief executive officer of Robinsons Land Corp., understands the urgency of change.

The European Chamber of Commerce of the Philippines (ECCP) said the reforms are necessary and “directionally correct,” but the full impact will be realized through strong execution.