Business Beat

Business as usual

By MELITO SALAZAR JR.
August 1, 2010, 4:45pm

Business groups’ wish list to the P-Noy administration include emphasis on infrastructure development, bringing down the cost of doing business, investing more in education and health services, and policy consistency on all levels of government.

The American Chamber of Commerce hopes that the new administration will create a level playing field for all. The Philippine Association of Meat Processors, Inc. (PAMPU) agreed, citing that bigger players with “huge money to spend for exclusivity” and cheaper brands from other countries are taking over the prime shelves locations in large supermarkets.

The Joint Foreign Chambers (JFC), composed of the American Chamber of Commerce, European Chamber of Commerce, Australian-New Zealand Chamber, Japanese Chamber of Commerce in the Philippines, Canadian Chamber of Commerce, and the Association of Regional Headquarters, has come up with a 300-page roadmap focusing on seven priority areas: Agri-business sector, information technology–business processing centers, creative industry, manufacturing, infrastructure, mining, and tourism. Proper government policy and program support will generate about 10 million jobs and $75 billion in foreign investments by 2020. The Chamber of Commerce of the Philippines Foundation has advocated nuclear energy and more equitable free trade agreements.

While proposals are coming from both the business associations that have consistently highlighted the bad governance of the Arroyo administration and even asked for Gloria’s resignation in July of 2005 (Makati Business Club, Financial Executives Institute of the Philippines, and Management Association of the Philippines) as well as those that have enthusiastically supported GMA and whose leadership even accepted government appointments, the P-Noy administration should address their suggestions without discrimination. Both groups want P-Noy to succeed because his success is also that of Philippine business.

Concerns have also been raised. Federation of Philippine Industries Chairman Jesus L. Arranza was quoted in the papers as saying, “The most important issue should be how to increase the funds of government.” Philippine Exporters Confederation President Sergio B. Ortiz-Luis focused on, “how to balance the budget” while Philippine Chamber of Commerce and Industry Chairman Donald G. Dee wanted, “local governments should respect national legislature…noting differing positions on mining investments.”

The sentiments that all should support is that of American Chamber of Commerce of the Philippines Executive Director Robert M. Sears who hoped that President Aquino’s promised anti-corruption campaign should continue on all levels.

Interestingly, many of these proposals and concerns were also raised during the GMA watch. What should make things different now is that we have a President who will sincerely act on them, especially on the issues of corruption. Business groups should follow the lead of P-Noy and clean up their ranks of those who used their leadership positions to gain influence and money for themselves to the detriment of the rest of the industry and society.

Speaking to the joint meeting of MBC, MAP, and FINEX, Finance Secretary Purisima used the cliché that “It takes two to tango,” referring to the need to stop collusion between business and corrupt government functionaries that leads to tax evasion. The phrase could very well apply to all anomalous transactions in government. Many of the alleged corrupt deals of the previous administration could not have been done without a business partner. As a sign of good faith, those involved should start trooping to the Truth Commission and confess their complicity. Maybe the Filipino people may still forgive them.

Business should “put its money where its mouth is,” meaning bring back the funds stashed or invested abroad to create enterprises and jobs for Filipinos. More importantly, business should adhere to high ethical standards. What should not happen in the second Aquino administration is for businessmen to think and act as if it’s still “business as usual.”

Business Bits. The move to cut incentives to business and subsidies to the riding public should be undertaken conscious of the competitive global environment for business and the paying capacity of the Filipino consumers.