Foreign firms push for Philippines reforms

Foreign business groups in the Philippines are urging President Ferdinand Marcos Jr. to fast-track several legislative and regulatory reforms to strengthen the country’s competitiveness and attract more investment. The Joint Foreign Chambers of the Philippines (JFC) outlines a competitiveness agenda ahead of the president’s State of the Nation Address (Sona) on July 27.

The groups call on Marcos to prioritize amendments to the Electric Power Industry Reform Act (Epira) to address electricity costs in the country, which remain among the highest in the region.

The JFC‘s competitiveness agenda includes fast-tracking several bills related to the digitalization of the economy, such as the proposed Cybersecurity Act, Digital Economy Act, and Artificial Intelligence Act.

They are also asking Marcos to push for a National Single Window System to streamline trade processes and amendments to the charters of the Civil Aviation Authority of the Philippines and Philippine Ports Authority.

According to the JFC, consistent implementation and clear regulatory guidance are critical to ensuring that reforms already enacted translate into improvements in the investment climate. Ebb Hinchliffe, executive director of the American Chamber of Commerce of the Philippines, says that continued action on competitiveness-enhancing reforms will help attract more investments, create jobs, and sustain economic growth.

The foreign chambers list several members, including the American Chamber of Commerce of the Philippines, Canadian Chamber of Commerce of the Philippines, European Chamber of Commerce of the Philippines, Japanese Chamber of Commerce and Industry of the Philippines, Korean Chamber of Commerce Philippines, and Philippine Association of Multinational Companies Regional Headquarters. They call for stronger implementation of already-passed legislation.

It remains to be seen how the administration will respond to these calls for reform, as the Philippine leader’s single six-year term ends in 2028.

The latest surveys indicate that President Marcos’ popularity, approval, and trust ratings have dropped significantly, with high inflation and perceptions of widespread corruption among the top public concerns.

They stress that new reforms would hopefully help reinforce the country’s position as an investment destination, strengthen business confidence, and support job creation.

While the Philippines has made meaningful progress in advancing reforms to strengthen investor confidence and improve the business environment, Ebb Hinchliffe says the current administration needs to build on these wins. “Continued action on competitiveness-enhancing reforms and effective implementation of existing laws will help attract more investments, create jobs, and sustain economic growth,” he says.