The Philippine Institute for Development Studies (PIDS) has urged government to implement market reforms, set up good infrastructure and efficient institutions for local firms to take advantage of the opportunities offered by the regional economic integration by 2015. Rafaelita Aldaba of PIDS made this recommendation in a study titled “Getting Ready for the ASEAN Economic Community (AEC) 2015: Philippine Investment Liberalization and Facilitation”. “If market reforms are to have their intended effects, ‘behind the border’ complementary policies that define the business environment must be addressed including investment in human capital, infrastructure and the quality of governance in the country,” she said. Aldaba said ASEAN countries, including the Philippines, should continue implementing their investment and trade reforms along with reforms to improve their domestic business environment. The PIDS study urged the government to increase investment spending and strengthen its weak institutional and regulatory environment. “There is a need to increase infrastructure investment in power and logistics to reduce the cost of doing business in the country. Modern and efficient air, land and sea infrastructure should be built fast enough,” it said. The study also underscored the need to review the constitutional limitations on foreign equity particularly the 60-40 rule. “The Philippines is already considered relatively open vis-a-vis its ASEAN neighbors. Foreign entry remains restricted in a substantial number of important economic sectors,” it noted.
Continue Implementing Investment, Trade Reforms, PIDS Tells Gov’t
