Global Competitiveness of the Philippines
We in the MANAGEMENT ASSOCIATION OF THE PHILIPPINES (MAP) would like to recommend the following five Key Actions that will bring early wins to enhance the global competitiveness of the Philippines, with MAP members and other business experts working with relevant government champions:
1. Establishment of a National Branding Council
MAP believes that a positive country brand enhances nationhood and strengthens national pride; improves international credibility; serves as a shield from possible reputational risks; increases the value of domestic products, services and destinations; and leads to higher and more sustainable growth for business and enterprise.
The mandate of the proposed Council, to be composed of representatives of key government agencies, private sector and civil society, is to: (a) Establish a compelling Philippine brand; and (b) Positively position the Philippines in terms of investment, tourism, export capabilities, credit worthiness, and international diplomacy and relations.
2. Lower the cost of energy
Simple measures (e.g., reducing the business sector’s energy consumption by 20%, improving the governance of cooperatives so they can charge less) can bring power cost to a more competitive level. Energy cost needs to be addressed because it is among the factors (including labor cost) that bring up the cost of doing business in the Philippines. If energy cost can be tempered, thePhilippines may become the preferred investment destination in the region.
3. Pursue infrastructure strategic to the BIG WINNERS and define 3-4 key policies to improve their competitiveness (8 business product groups)
The government should provide the necessary infrastructure and policies to improve the productivity of priority sectors like the following:
Agribusiness
Tourism
IT-enabled Services (BPO, etc.),
Electronics
Logistics-enabled products (food, soft, hard components, etc.)
Health, Wellness, Retirement
Manufacturing
Mining
There should be appropriate infrastructure and policies to ensure effective linkages from investors’ sources of assets/resources to the processing centers to the distribution centers to domestic/overseas markets. Some policies may require legislation but many only need executive action.
4. Establish a robust Investor Assistance Office
The government should set up a Strong Investors Assistance Office, similar to the PEZA model, to send a strong signal to investors that there will be no hustling of investors.
5. Continue improving the professionalism of key government agencies
The National Competitiveness Council (NCC) should continue its efforts in improving the professionalism of government agencies, specially the following:
Department of Education (DepEd)
Department of Health (DOH)
Department of Public Works and Highways (DPWH)
Department of Transportation and Communication (DOTC)
Philippine National Police (PNP)
Bureau of Internal Revenue (BIR)
Department of Social Welfare and Development (DSWD)
Civil Service Commission (CSC)
Philippine Navy
Philippine Army
Philippine Military Academy (PMA)
National Electrification Administration (NEA).
Dealing with professionalized government agencies will certainly help decrease the cost of doing business in the Philippines.
If handled properly, these four key actions will immediately improve the investment attractiveness of the Philippines.
MAP STATEMENT OF THE WEEK
11 July 2011
Source: Management Association of the Philippines and BWorld Online
To view the original statement, click here.
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