Business groups urge Congress to prioritize economic reform bills

By Beatriz Marie D. Cruz, Senior Reporter

BUSINESS GROUPS urged Congress to prioritize key economic measures that would boost export competitiveness and support the digital economy.

This as the 20^th Congress is set to open its second regular session on Monday (July 27).

Philippine Exporters Confederation, Inc. (Philexport) President Sergio R. Ortiz-Luis, Jr. asked lawmakers to focus on the passage of bills that would strengthen the local supply chain and streamline cross-border trade.

“Philexport hopes that exports — one of the country’s strongest drivers of investments, jobs, foreign exchange earnings, and inclusive growth — will remain a central pillar of the government’s economic agenda,” he told BusinessWorld in a Viber message.

In particular, Philexport said the proposed International Maritime Trade Competitiveness Act would regulate excessive shipping and logistics charges, promote transparency, and foster competition. The bill has been pending at the Senate Public Services Committee since last year.

Mr. Ortiz-Luis also called for the passage of the proposed Customs Amnesty Act, which is seen to resolve customs disputes, encourage voluntary compliance, improve revenue collection, and provide certainty to legitimate exporters and importers. It has been pending at the House Ways and Means Committee since last year.

Philexport is also seeking the approval of amendments to Republic Act (RA) No. 9501 or the Magna Carta for Micro, Small, and Medium Enterprises (MSMEs). Several bills are still pending at the committee level at both the House and Senate.

Mr. Ortiz-Luis said exporters want more government support for export-oriented MSMEs “through improved access to financing, technology, innovation, capacity-building, digitalization, market intelligence, and international market development.”

He said Congress should also focus on amendments to the charters of the Civil Aviation Authority of the Philippines (CAAP) and the Philippine Ports Authority (PPA), which are pending at the House Transportation Committee.

The proposed reforms to CAAP’s charter focus on modernizing air cargo infrastructure, improving cargo handling efficiency, and strengthening the country’s air logistics competitiveness.

Proposed amendments to the PPA’s charter include the separation of its regulatory and commercial functions, improve port efficiency, and reduce logistics costs, Mr. Ortiz-Luis said.

The group also backed the proposed National Quality Infrastructure Act, which seeks to establish an institutional framework to ensure that Philippine products, services and processes comply with international standards.

The bill has been pending at the House and Senate trade committees.

DIGITAL ECONOMY
American Chamber of Commerce of the Philippines (AmCham) Executive Director Ebb Hinchliffe called for the passage of bills that seek to govern the use of artificial intelligence, boost cybersecurity, and support the digital economy.

The group also backed the proposed National Single Window System Act, which allows traders to submit related documents through a centralized digital portal.

AmCham is also pushing for amendments to the Electric Power Industry Reform Act, the National Land Use Act, the Holiday Rationalization Act, and the Blue Economy Act.

The chamber also supported the Freedom of Access to Information Act, which seeks to give the public wider access to government documents. Both the House and Senate passed their respective measures on third and final reading earlier this year.

AmCham is also pushing for the creation of the Department of Water Resources, as well as amendments to the CAAP and PPA charters.

“The successful implementation of enacted laws is equally important, while continuing to improve regulatory efficiency, streamline visa and trade processes, and review regulations that may unintentionally hinder investments,” Mr. Hinchliffe said in a Viber message.

Foundation for Economic Freedom President Calixto V. Chikiamco said Congress should approve measures to further liberalize foreign equity restrictions under the Constitution.

British Chamber of Commerce Philippines (BCCP) Executive Vice Chairman Chris J. Nelson urged Congress to approve the proposed Open Finance and Consumer Data Empowerment Act.

The bill, pending in the House banks committee, seeks to institutionalize a framework for secure data sharing among banking institutions to help develop tools that drive financial inclusion.

“The Philippines recently has moved to upper-middle income status, but there are a number of unbanked individuals,” Mr. Nelson said in a phone call. “So, [the bill, would] make financial services readily available and move more people into higher [income] brackets.”

Other measures supported by the BCCP include the proposed Digital Payments Act, Cybersecurity Act, and Blue Economy Act.

Meanwhile, Philippine Retailers Association Chairman Roberto S. Claudio asked policymakers to prioritize measures that would level the playing field for the local tourism industry.

Mr. Claudio said they are still waiting for the release of the implementing rules and regulations on the value-added tax refund scheme for tourists.

Republic Act No. 12079, also known as “Act Creating a VAT Refund Mechanism for Non-Resident Tourists,” allows tourists to claim VAT refunds on purchases worth at least P3,000 from government-accredited stores. It was signed into law in December 2024.

Congress’ opening on Monday coincides with President Ferdinand R. Marcos, Jr.’s State of the Nation Address (SONA).

“We hope the President’s SONA will lay down a clear roadmap for reducing the cost of doing business, modernizing our logistics and quality infrastructure, strengthening MSMEs, and expanding market access through trade agreements,” Mr. Ortiz-Luis said.