Connect with us

Hi, what are you looking for?

News

Philippine competitiveness lags ASEAN due to high business costs

THE cost of doing business is causing the Philippines to lag in regional competitiveness, the Management Association of the Philippines (MAP) said on Thursday.  

Mary Jade Roxas-Divinagracia, MAP Ease of Doing Business Committee vice chairperson, told BusinessWorld Live on One News Channel that the decline in competitiveness comes despite the passage of measures in the previous administration seeking to attract more investors.

She said some of the measures include Republic 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law, which lowered the corporate income tax, and amendments to the Public Service Act, the Retail Trade Liberalization Act, and the Foreign Investment Act. 

“We are still losing competitiveness in ASEAN, because we are facing a lot of challenges (such as) the high cost of doing business, high power cost,” Ms. Roxas-Divinagracia adding that issues with human capital are also a factor, like availability of talent, the workforce’s aptitude for innovation, critical thinking, and business and digital skills.

Ms. Roxas-Divinagracia also cited the need to improve infrastructure and connectivity.

“It used to be that having a pool of young English-speaking workers was enough. But not anymore because our neighbors are also leveling up when it comes to that. We need to address the other areas where we are falling behind,” Ms. Roxas-Divinagracia said.  

“We also need to improve our quality of infrastructure and logistical services, including connectivity and digital infrastructure. We also need to invest more on research and development, transparency, respect for sanctity of contracts, and overall ease of doing business,” she added.

Ms. Roxas-Divinagracia said business executives are concerned about corruption, citing the PwC Philippines-MAP 2022 CEO survey. The study found that 67% of business executives cited corruption as a factor that may delay the economic recovery.

“The problem of corruption has been there for so long. Unfortunately, we’ve not made significant progress… This is a very valid concern that chief executive officers are facing as corruption scares away investors,” she said.

“(Corruption) can complicate doing business in the country. It can lead to unfair competition, delay some of the business processes. It will increase costs. Overall, it can hurt business viability. Whether corruption is perceived or real, it is making the country unattractive to investors both foreign and domestic,” she added. — Revin Mikhael D. Ochave

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

News

PHILIPPINE STAR/ MICHAEL VARCAS WASHINGTON D.C. — The United States is seeking to form a coalition of countries to drive negotiations on a global...

News

Buildings are seen along EDSA in Quezon City. — PHILIPPINE STAR/ MIGUEL DE GUZMAN By Diego Gabriel C. Robles  THE WORLD BANK (WB) upgraded...

News

Heavy traffic is seen on the southbound lane of EDSA in Cubao, Quezon City. — PHILIPPINE STAR/ MIGUEL DE GUZMAN THE PHILIPPINE auto industry’s...

News

REUTERS THE BANGKO SENTRAL ng Pilipinas (BSP) may deliver a second off-cycle rate hike in early November when the US Federal Reserve is expected...

News

Vendors arrange their goods at a public market in Manila. — PHILIPPINE STAR/ RUSSEL A. PALMA THE ASIAN Development Bank (ADB) is planning to...

Editor’s Pick

With the reversal of the 1.25% rise in National Insurance Contributions happening on the 6th of November, employers across the nation have an opportunity...

You May Also Like

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.