Philippine Business and Foreign Chambers Urge President Marcos to Fast-Track 21 Economic Bills

MANILA – In a collective push for economic reform, the Philippine Business Group (PBG) and the Joint Foreign Chambers (JFC) have urged President Ferdinand R. Marcos Jr. to prioritize 21 pending legislative measures, emphasizing their importance for enhancing economic growth and global competitiveness.

According to Philippines News Agency, the PBG-JFC highlighted the urgency of these measures ahead of President Marcos’ State of the Nation Address (SONA). The groups noted that out of an initial list of 24 legislative measures submitted in July 2022, three have already been enacted into law, and three more are recognized in the Legislative-Executive Development Advisory Council (LEDAC) Common Legislative Agenda for passage. The reforms are aimed at making the Philippine economy more inclusive and globally competitive.

Key among the proposed measures is the liberalization of foreign equity restrictions in the Constitution, aimed at encouraging more foreign investment by removing current limitations. Additionally, the business groups are advocating for amendments to the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law and the Philippine Economic Zone Authority (PEZA) Act to allow for hybrid and flexible work schedules.

Other significant proposals include simplifying the taxation of passive income and financial transactions, harmonizing tax rates on interest, dividends, and capital gains, and rationalizing the documentary stamp tax to reduce compliance costs. The groups also support the Holiday Rationalization Act, which aims to reduce the number of non-working holidays, aligning them with other Southeast Asian nations to decrease business costs.

Moreover, the PBG-JFC is calling for the repeal of the Commonwealth Act 138 (FLAG Act), which mandates a 15 percent domestic preference in public works contracts, arguing that its removal will foster more competitive bidding processes.

The business entities have outlined other priorities such as the Freedom of Information Act, the Pandemic Protection Act, the International Maritime Trade Competitiveness Act, and the Satellite-based Technologies Promotion Act. They also advocate for amendments to the Secrecy of Bank Deposits Law, the E-Commerce Act, and the Intellectual Property Code, among others.

Further reforms proposed include promoting digital payments, establishing a National Unemployment Insurance Program, strengthening the Philippine pension system, reforming apprenticeship programs, and easing restrictions on agricultural land ownership. Additionally, they support the creation of the Department of Disaster Resilience and the Philippine Airports Authority.

The PBG-JFC concluded their statement by expressing commitment to collaborating with the Congress and the administration to ensure the passage of these crucial reforms within the year, stating these measures as essential for achieving a shared vision of inclusive growth, job creation, poverty reduction, and enhanced global competitiveness.