Business Christmas wishes

IT’S not only children who have Christmas wishes for the coming year. Businessmen also have a list of wishes. The difference is that if the wishes of businessmen are granted, it will have a significant effect on the Philippine economy and in improving the lives of many Filipinos.

Philippine business depends on sales locally and abroad to fuel enterprise growth. With Filipinos’ savings depleted due to the 2018 high inflation and with the possibility of still high inflation in 2019, there is concern that consumer spending may not go back to pre-2018 levels. That will not happen if the Duterte administration decides to continue imposing higher levels of excise taxes.

Export sales will be affected by the trade war between China and the United States. If the Philippines sells components of products that each country will impose higher tariffs on, the sales effect will cascade down to sales of components. Even if Philippine exports are not imposed additional tariffs, the American consumer will adjust their bundle of purchases considering that some items will have higher prices.

Business wishes that the Duterte administration will prioritize Filipino consumer interests over the need to increase government revenues. Businessmen also hope that the China and US trade differences will be settled soon.

Philippine businessmen look for the full implementation of the “Ease of Doing Business” Act. The problem is that bureaucratic procedures can be decreased or the processing shortened but the real cause is lack of infrastructure. Sometimes the Duterte administration addresses the problems without taking a holistic perspective. Because the Chinese government is donating a bridge linking Binondo and Intramuros over the Pasig river, the government is endangering the historic and UNESCO recognized Intramuros area as well, as the heavy traffic will affect the structural integrity of the Chamber of Commerce of the Philippine Islands building, a declared historical structure by the Philippine Historical Commission. A better integrated solution is to make the Chinese-donated bridge a pedestrian and “calesa” bridge; have a bridge for container vans using Del Pan and expanding both the Jones and Quezon bridges (where there is a daily traffic standstill).

Eventually transferring the container ships docking in Manila to other ports which will be linked to urban centers by a railroad network will greatly improve the logistics management and lower costs for business. The Port of Manila could be transformed into servicing cruise ships and the present warehouses could become a tourist paradise of five-star hotels and shopping malls with the proper ambiance.

Philippine business would wish to produce products locally providing jobs to Filipinos who will not need to go abroad and leave families behind. But imports cost less even if tariffs are imposed. We need to have a competitive environment which includes an incentive regime and tax structure better than our ASEAN neighbors. The penchant just to raise revenues is shortsighted. The Duterte administration can raise more funds by curbing the the propensity of public officials to use wantonly public funds. Businessmen support the non-release of the road users tax, given the COA findings of misuse, especially during the administration of President Gloria Macapagal Arroyo, who is now speaker of the House, that is bent on pressuring Secretary Diokno to release the funds in time for the election campaign.

May the Christmas wishes of Philippine business come true!