An economics expert who have been advocating speedy development of the Philippines yesterday gave seven major reasons why the country is lagging behind its neighbors when it comes to attracting investors.

These obstacles are low Internet connectivity; bad airports; severe lack in infrastructure; very high power cost; unfriendly tax regime; very expensive cost of doing business; and many corrupt local government units.

Dr. Benjamin Diokno, former Secretary of Budget, said unless these obstacles are solved, the Philippines will never be considered to have a growing economy like its neighbors in theAssociation of Southeast Asian Nations (ASEAN).

He said these major weaknesses of the economy are known worldwide. These negative issues are also often tackled in many publications written by known business writers. Recently, Forbes magazine cited these negative issues hampering the Philippines. Forbes’ senior writer Jesse Colombo said no amount of ratings upgrade will equate an effectively-managed economy.

Colombo said most of the legitimate investors, led by UPS, have packed up from the Philippines because of so many negative issues which the national government can’t address.

“I agree. All of the above,” Diokno reiterated to The Daily Tribune in a text message. In an earlier interview, the former Budget secretary said the agony of investors can be lessened if at least the Departments of Trade and Industry and Interior and Local Government will come out with a listing which of the 1,600-plus cities and municipalities in the Philippines have less requirements for investors.

An average of 160 signatures and documents are required for every investor before they can start their business in the country.

Martial Beck, vice president of the European Chamber of Commerce of the Philippines, compared the ease of doing business in the Philippines to Singapore.

In Singapore, all the documents, three to be exact, needed by an investor can be processed within a day.

In the Philippines, all documents and signatures needed will require 35 to 38 calendar days. “It means only Monday to Friday. If there are holidays, you have to add more,” the ECCP offcial said. 

Former lawmaker Rodante Marcoleta, for his part, reminded that another problem is set to plague the already sick state of investment in the country -- brownouts.

“Our power sector is manipulated by big power players and pricing scheme,” Marcoleta said, referring to the wholesale electricity spot market.

He didn’t elaborate what firms are holding the cartel in the power sector.

“What if APEC delegates are holding their meeting then a brownout occurs?” he asked. Several text messages were sent to APEC meet preparations leader Gil Beltran as to what measures the government has been doing to improve the ease of doing business in the country but he didn’t reply. 

Source: The Daily Tribune