A BRITISH Chamber of Commerce Philippines (BCCP) official on Tuesday said passing key legislation and critical trade reforms will give signals to global investors that the Philippine economy is moving forward.
The Philippine economy is currently seeing low growth, coupled with rising unemployment rates, a weaker peso, and inflation that is above the government target.
To address these pressures, the Bangko Sentral ng Pilipinas raised interest rates, with some economists forecasting potential further increases.
BCCP Vice Chairman Chris Nelson identified four priority legislations that should be passed by the Congress to foster economic development in the country.
The first one is the Digital Payments Act. The BCCP official noted the massive boost in digital transactions during the pandemic, with some economies having digital payments surpass cash transactions.
According to Nelson, digital transactions allow for faster movement in the economy.
“Passing the legislation will help accelerate transactions, including the payment of government fees,” Nelson said.
The BCCP official also emphasized the need for a Cyber Security Act along with the Digital Payments Act. He said that strong security is necessary as the use of digital payments continues to grow.
Nelson said a law like this would be critical to protecting citizens from phishing, scams, and other security threats.
“If you want digital payments, you’re also going to have to make sure everything is secure — that’s why you need the Cyber Security Act,” he said.
Another piece of proposed legislation is the Open Finance Act. Nelson noted that while the Philippines remains a consumer-driven economy, many of its citizens are still unbanked or have limited access to finance.
He explained that the proposed legislation will help establish credit histories and facilitate borrowing, which will drive economic growth.
He also pushed for a Blue Economy Act, noting that as an archipelago of over 7,000 islands, the Philippines has vast marine wealth and resources. He stated that these resources require structured development.
Nelson noted that some of these bills have already been passed by the House of Representatives. He then urged the Senate to pass its versions of the said legislation so the country can begin implementing them.
The official also talked about strengthening United Kingdom-Philippines trade and investment, saying bilateral trade between the two countries currently stands at £3.1 billion. This places the country as the UK’s 59th top trading partner.
While trade grew modestly due to global pressures such as high oil prices and international conflicts, Nelson said there are potential avenues for expansion.
These include the Developing Countries Trading Scheme, the £5 billion UK export finance, and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership that the country is looking to join.
Ultimately, Nelson stressed that the Philippines is competing with other markets in Asia and Africa for foreign direct investment.
“The government should focus on reducing red tape, shortening approval times, and moving processes online to make the country more attractive to investors,” Nelson said.
He added that passing priority legislation and maintaining clear and predictable rules in terms of trade will provide the necessary push to drive the Philippine economy toward sustainable growth. GISELLE JORDAN
