The German-Philippine Chamber of Commerce and Industry Inc. (GPCCI) commends President Ferdinand Marcos Jr. for addressing key national issues in his 3rd State of the Nation Address (SONA) on 22 July 2024. The Chamber also stresses the importance of improving several areas of the Philippine economy: education and labor, digitalization, energy, and infrastructure, general economic reforms. Furthermore, GPCCI has emphasized the need for strategic reforms in education, infrastructure, and the overall economic climate to sustain and grow German investments and the bilateral economic partnership with the Philippines.
Education and Labor
The Chamber lauds the government’s plans to integrate technical-vocational education and training (TVET) and support startups and innovation through incentivized research and development. Additionally, reforms on education and labor policies such as the Apprenticeship Program and the Enterprise-Based Education and Training Framework Act are greatly supported by GPCCI.
German enterprises hope the education curriculum will be reformed to reflect an enterprise-based approach, enhancing the skills and economic productivity of the Philippine labor force. The German business community particularly aims to strengthen partnerships that promote the upskilling and reskilling of Filipino workers. Additionally, there is a strong desire for consistent policies that enhance labor cooperation between Germany and the Philippines.
Digitalization, Energy, and Infrastructure
President Marcos Jr. emphasized the need for strategic, sustained, and on-schedule infrastructure projects to address connectivity, power costs, and digitalization. The AHK World Business Outlook Spring 2024 survey shows that German firms are particularly concerned about high energy costs and infrastructure. GPCCI is optimistic that amending the Electric Power Industry Reform Act (EPIRA) will significantly reduce energy costs and improve business efficiency.
GPCCI supports the government’s digitalization and cybersecurity initiatives, including the National Cybersecurity Plan, the Anti-Financial Account Scamming Act (AFASA), and an e-travel system for streamlined tourism. Further policy reforms, such as the Konektadong Pinoy Bill to increase telecom competitiveness, the creation of the Department of Water Resources for sustainable management of water services to consumers, and the Waste-to-Energy Bill for further promotion of a clean and renewable energy, which are crucial for enhancing competitiveness of the Philippines in its bid to attract more foreign investments in the country.
“The Chamber is very supportive of all the efforts to improve infrastructure and enhance the ease of doing business here in the Philippines.” Says GPCCI Policy and Advocacy Chairperson Dr. Marian Majer. “It can make the Philippines more competitive among its peers in the region and help attract more foreign businesses and investments.”
General Economic Reforms
The Chamber commends the government’s efforts to promote the Philippines as a key investment destination, generating jobs and Php 3 trillion in economic value. The recently enacted New Government Procurement Act (NGPA) ensures a competitive, transparent bidding process for government transactions. The Corporate Recovery and Tax Incentives for Enterprises (CREATE MORE) Act reforms on the tax and fiscal system is welcomed by the German business community, provided it will benefit both existing enterprises and new investors. GPCCI supports CREATE MORE and advocates for its clarity and reduced red tape.
While there were priority legislations mentioned in the SONA, key policies such as developments of the EU-Philippines Free Trade Agreement (FTA), action plans to address inflation, and projects on climate change and sustainability are omitted from the focus of the address. These are vital focus areas for the business community and maintaining the competitiveness of the country.
“The various policy reforms and government initiatives are vital to make the Philippines economically productive.” Says GPCCI President Ms. Marie Antoniette Mariano. “Overall, it helps in making the business landscape of the country more competitive and streamlined for businesses and the people alike.”
