Sen. Sherwin Gatchalian. Photo by Cathy Miranda/INQUIRER.net
After the Philippines ranked 50th out of 63 countries in the 2018 World Competitiveness Yearbook, Senator Sherwin Gatchalian has called on the government to take immediate action “to boost the country’s economic competitiveness.”
“The slide in our country’s competitiveness should be a wake-up call for the government to pursue measures that will foster a more productive business environment for MSMEs and spur growth in key domestic industries with a lot of potentials,” Gatchalian said in a statement on Saturday.
Gatchalian, chair of the Senate Committee on Economic Affairs, said that while the country has made economic progress over the years, this was overshadowed by the rapid development of its neighboring countries.
According to the World Competitiveness Yearbook, the Philippines’ ranking dropped by nine points—the sharpest decline among Southeast Asian countries.
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The senator also noted that the country’s ranking worsened in all four categories. The Philippines was 50th in economic performance (from 26th), 44th in government efficiency (from 37th), 38th in business efficiency (from 28th), and 60th in infrastructure (from 54th).
Gatchalian said that even if the current administration’s Build, Build, Build (BBB) program is a “strong step in the right direction,” a lot of policy reforms are still needed to improve the current state of the economy.
To accomplish these, Gatchalian believes that the government should address issues of red tape, level the playing field of all businesses, and entice more foreign direct investments (FDI).
He mentioned several Senate bills, such as the Ease of Doing Business Act of 2018, the Philippine Innovation Act, Public Services Act and the Retail Trade Liberalization Act as possible measures to improve Philippine competitiveness.
“These reforms, among others, are poised to boost our economy’s competitiveness and bring us up-to-par with our regional allies,” Gatchalian said.
“Ultimately, they will result in inclusive economic growth that will be felt by the people, which is why they should be a top priority of the government,” he added. /jpv