Business groups say execution of reforms key to regaining investor trust

By Aubrey Rose A. Inosante, Reporter

PHILIPPINE BUSINESS groups view the government’s pledge of “big bold reforms” as a credible step to rebuilding investor confidence but warn the real impact will depend on swift and decisive implementation.

Foreign Buyers Association of the Philippines President Robert M. Young said the reforms pledged by the economic team before the business community were “music to the industry’s ears.”

“However, this will all depend on the urgent time of execution and implementation,” he said during a phone call with BusinessWorld over the weekend.

Last Friday, the Marcos administration unveiled reforms aimed at improving the ease of doing business and encouraging more investments in the country.

These include the restoration of P4.32 billion in fiscal support for the Comprehensive Automotive Resurgence Strategy (CARS) program in this year’s budget; visa‑free entry for Chinese visitors for up to 14 days; a digitized audit system from the Bureau of Internal Revenue (BIR); and the national single‑window trade facilitation platform of the Bureau of Customs.

This came as a corruption scandal over anomalous flood control projects dampened investor sentiment and contributed to slower growth, household consumption, and public spending.

“We say that the ease of doing business in its entirety is the most vital among those mentioned. And nothing will change as long as the old system will prevail,” Mr. Young said.

He also said the reforms signal that Finance Secretary Frederick D. Go, the former president and chief executive officer of Robinsons Land Corp., understands the urgency of change.

The European Chamber of Commerce of the Philippines (ECCP) said the reforms are necessary and “directionally correct,” but the full impact will be realized through strong execution.

“If execution remains disciplined and reforms are sustained beyond political cycles, these initiatives can meaningfully improve the Philippines’ investment climate and competitiveness,” ECCP President Paulo Duarte said in a statement sent to BusinessWorld.

Mr. Duarte also said the discussions last Friday signaled a clear focus on fiscal discipline, accountability, and predictability, which are core considerations for European investors.

He noted that the government’s commitments under the CARS program were an important signal and helped address uncertainty in the manufacturing sector.

“This assurance underscored the administration’s recognition that honoring long-term incentive commitments is essential to maintaining investor trust across capital-intensive industries,” the chamber official said.

Mr. Duarte also said the European business community hopes the European Union-Philippines Free Trade Agreement negotiations will conclude this year.

‘AUTHENTIC EFFORT’
Meanwhile, British Chamber of Commerce Philippines Executive Vice Chair Chris Nelson described the government’s reforms as an “authentic effort” to improve the business environment.

“It’s great to see that we’re doing these things, we’re working together. We cannot forget that we live in a very competitive environment,” he said during a phone call with BusinessWorld on Jan. 16.

“Other countries are also doing reforms and further liberalizing their economy, that’s not just the Philippines.”

Mr. Nelson said they had hoped to hear more about measures to address food supply concerns and the passage of the proposed Cybersecurity Act.

The group is urging the government to adjust tariffs, including raising the minimum access volume quota for pork imports, to ease supply shortages and help curb inflation.

Mr. Nelson also said the private sector wants to work with the government on reducing red tape.

“We’re very supportive of (Anti-Red Tape Authority) Secretary (Ernesto V.) Perez, and I think the feeling is let’s get that real sense of urgency… Implementing digital payments, digital contact, approvals,” Mr. Nelson said.

The Federation of Philippine Industries (FPI) said one of the reforms, offering visa‑free entry for Chinese businessmen and tourists for up to 14 days, signals that the country is not single-minded in its relations with China.

“Our engagement is not defined solely by disputes — it also encompasses tourism, trade, and investment,” the FPI said in a statement on Sunday.

The move sends a clear signal that the Philippines is intent on building economic bridges while safeguarding national interests, the group said.

“Only by sustaining industrial programs with credibility and pursuing consistent, multi-dimensional diplomacy can the Philippines position itself as a trusted destination for long-term manufacturing and growth,” FPI Chairperson Elizabeth H. Lee said.

Meanwhile, the Federation of Filipino Chinese Chambers of Commerce and Industry, Inc. (FFCCCII) said changes to the issuance of letters of authority (LOAs) will boost investor and business confidence.

“It signals a mature transition from an enforcement-centric model to one built on transparency, fairness, and rational engagement between the state and its economic contributors,” FFCCCII President Victor T. Lim said in a statement on Jan. 17.

After suspending the issuance of LOAs last year amid complaints of misuse, the BIR plans to launch a digitized, risk‑based audit system this year.

Mr. Lim said the reduction in the number of departments authorized to issue the documents, as well as the frequency with which a taxpayer can receive them in any given year, “instills powerful and necessary predictability.”

“Continuous, progressive, and intelligently crafted policies of this caliber are needed to encourage both domestic and foreign investments, providing the stable and equitable environment essential for sustained Philippine economic growth,” he added.