President Ferdinand Marcos Jr. on Thursday invited the private sector to invest in 74 public-private partnership (PPP) projects worth a combined P2.25 trillion that are in the government’s pipeline, as he called for more collaboration to spur his administration’s efforts for a quicker and more sustainable growth.
“The challenge over the last few years was striking a delicate balance between the economy and public health, but always putting an important premium on keeping our communities safe from another outbreak,” he addressed the delegates of the 48th Philippine Business Conference & Expo (PBC&E), organized by the Philippine Chamber of Commerce and Industry (PCCI).
Mr. Marcos highlighted the need for the government and the private sector to work together on more projects for infrastructure, energy, and agriculture, and work for micro, small and medium enterprises (MSMEs).
The government pipeline counts 74 PPP projects as of August 2022, as the President pledged to foster a sound environment where businesses can flourish and continue to be a driver of economic growth.
“I reiterate my vision of improving our business climate and elevating the status of the Philippines as a top investment destination through various endeavors,” he said.
Transportation Secretary Jaime Bautista echoed the Chief Executive’s call, as his department will push for PPP schemes to complete big-ticket transportation infrastructure projects throughout the country amid a limited government budget.
The private sector’s participation in completing such projects will be “crucial,” Bautista said, as other Department of Transportation projects encountered limited budget allocations.
Bautista said the DOTr would invite private sector participation in privatizing projects such as the EDSA Busway, Cebu Bus Rapid Transit, regional airports in Bohol, Laguindingan, Bicol, Iloilo, Puerto Princesa, Davao, Bacolod, Kalibo, Busuanga and Siargao, and seaports.
The government would also build four new regional airports in Dumaguete, Siargao, Zamboanga, and Masbate, as Bautista said completing these projects would increase the efficiency and productivity of Filipinos.
Meanwhile, addressing challenges to food security topped the resolutions passed by the PCCI during its two-day business conference at the Manila Hotel, which the group presented to the Marcos administration.
Among the solutions proposed by the country’s largest business group are amending the Agrarian Reform Law that will increase the land retention limit from five hectares to 24 hectares; implementing a debt condonation program for unpaid amortizations of agrarian reform beneficiaries, and converting Certificates of Land Ownership Award (CLOA) into fee simple titles.
Under resolutions on health issues, the PCCI urged the President to reform the Philippine Health Insurance Corp. into a science-based and transparent healthcare system. It is also pushing for a public-private partnership model in rolling out the Universal Healthcare Law.
Meanwhile, the Philippine Hotel Owners Association (PHOA) said the sector should find creative ways to innovate PH travel to increase traffic, particularly the void Chinese tourists might create after China’s government reportedly encouraged its travelers to avoid the Philippines.
PHOA executive director Benito Bengzon said hotel occupancy is recovering slowly but has not yet reached pre-pandemic rates.
“But for us to go back to pre-pandemic levels, we’re gonna have to find out how to compensate for the reduction in the movement of key markets, particularly China. We attracted about 1.7 million Chinese travelers in 2019, and right now you practically shut off the tap,” he said in a plenary discussion during the 48th PBC.
Right now, Bengzon said hotel occupancy rates varied from 60 percent to 80 percent, while tourism arrivals were at 1.77 million from January to October 2022, down significantly from 8.3 million in 2019.
The government, Marcos said, continues to harmonize efforts of all Investment Promotion Agencies, government agencies, and local government units for greater synergies.
“We also continue to help in the ease of doing business in the country. We are doing this by enhancing our digital infrastructure to streamline application processes of business permits, licenses, and other documentary requirements,” the President said.
The government also reiterated its commitment to developing the renewable energy sector to ensure adequate power supply and alleviate rising electricity costs.
The revision of the Renewable Energy Law’s implementing rules and regulations (IRR) is the key to securing energy supply in the country and attracting foreign investments for renewable energy development, Mr. Marcos said.
“These are just a few of the initiatives that this Administration is pursuing to enhance the business environment allowing the business sector to maximize the contribution to the revitalization of our economy,” the President said.
He expressed his appreciation for the set of resolutions and reform agenda that the PCCI handed over to the President as the event’s highlight.
“I am much gratified that when I heard the enumeration of those 10 resolutions that they are very much in line with the government’s thrust and the government’s directions that we feel will be the most advantageous for the Philippines,” he said.
“And in that regard, I assure you that the concerned agencies will assess the feasibility and probability of success of these recommendations,” he added.
“But we must do more because we need to. I thus invite all of you to take part in the great enterprise of building our nation,” Mr. Marcos said.
The PBC&E is an annual gathering of local businessmen where relevant issues concerning the business community are discussed and recommendations are drafted for consideration by the government.
“We have tried to foster programs and projects that will shift the contribution to gross domestic product (GDP) not so dependent on the service side but perhaps also the manufacturing side. This will help us also in our trade and as we all know no country grew wealthy except for trade,” the President said.
Mr. Marcos said he will take necessary steps to strengthen the relationship of businesses with the government, consumers, and the public.
“Because despite extensive disruptions that we had to endure in the past two years, it has always been the entrepreneurs and the business sector who have steadfastly steered our direction towards economic success. You are the nation’s agents of creativity, innovation, and progress,” he said.
“After today, once deals have been closed, policies have been agreed upon, and bonds have been renewed, and forged, all of us can proudly tell the world, the Philippines is indeed open and ready for business again,” the President added.
On transportation infrastructure projects, Bautista said: “Allow me to emphasize the need to undertake crucial transport infrastructure projects in collaboration with the private sector. We are therefore actively pursuing the Public-Private Partnership scheme to complete a number of these projects.”
Bautista said the government is confident the expertise and capabilities of the private sector can bring such ambitious undertakings to completion.
The PCCI for its part passed resolutions on employment, asking the national government to provide an investor-friendly business environment to encourage companies to invest in the country as well as to continue the government’s support to small businesses that are still recovering from the pandemic.
It said amending “all restrictive and punitive labor laws and enacting laws that will increase productivity” will allow more job generation in the country.
The business groups urged the Marcos administration to create a Philippine Qualifications Authority for the country to establish and maintain qualification standards for all levels of education and training.
It also pushed for the amendment of the Philippine Qualifications Framework.
The PCCI also asked the government to fast-track the integration of Luzon, Visayas, and Mindanao grids to ensure the free flow of electricity in the country.
It added that the Department of Energy must amend the implementing rules and regulations of the Renewable Energy Act by allowing full foreign ownership in solar and wind projects.
On hotels, Bengzon said that beyond occupancy rates, stakeholders should also see revenue recovery.
With the threat of losing the Chinese market, Philippine tourism players are forced to examine other markets and may have to compete with Thailand and Malaysia to get into the Indian market.
The local hotel group also equated the growth of the local airline industry to tourism growth. Restoring the frequency of flights to pre-pandemic level and ensuring positive arrival experiences will make traveling to the Philippines enjoyable, they said.
Hotel owners stressed the need to expand the marketing and promotion footprint of the Tourism Department and tourism stakeholders, “since we are not only competing with ourselves but among different markets in the region.”
“Our neighbors have been very aggressive in the last year and a half. We have to make sure that the Philippines remains top of mind when borders open up at least for some markets and for those that still have some restrictions,” Bengzon said.
“These are the things that we as an industry have to collectively address if we want to bump up the occupancy rate, and more importantly, drive revenue,” he added.
With a new generation of travelers, the group noticed a new set of traveling preferences and new market behaviors. They said developers are now trying to find out what kind of hotel facilities and amenities the new generation of travelers will be looking for.
Bengzon also urged industry players to take note of the changing patterns in consumer behavior and preferences for green technology noting the greater demand for hotels that are into sustainable practices.