Daily TribuneThe projected power that the Palayan Bayan binary power plant will generate each year will not only contribute to our energy security agenda but also our important contribution toward the cleaner energy transition goals.
The German-Philippine Chamber of Commerce and Industry Inc. (GPCCI)
The German-Philippine Chamber of Commerce and Industry Inc. (GPCCI) has asked the Philippine government for some reforms, including education and labor, ahead of the upcoming State of the Nation Address (SoNA) on 22 July.
Also, the group underlined the urgent need for strategic reforms to capitalize on German investments.
With Germany recognized by the Department of Trade and Industry-Board of Investments as top foreign investor, bringing in P393.99 billion, in 2023, these reforms are vital for sustaining Philippine-German bilateral economic ties.
Education, labor restructuring
The GPCCI said it is inculcating the importance of critical education and labor policies such as the Apprenticeship Program Reform and the Enterprise-Based Education and Training Framework Act.
Such reforms, the chamber stressed, are crucial for developing a highly skilled Philippine labor force, with training durations tailored to specific skills and curricula needs, enhancing the adaptability and expertise of workers in various industries.
“Germany continues to strongly advocate for the development of the dual-training system in the Philippines, a model of vocational education that combines classroom learning with practical on-the-job training,” says GPCCI Vocational and Dual Training chairperson Tristan Arwen Loveres.
“Emphasizing this policy will reflect the Philippine government’s recognition of the country’s human capital as a fundamental asset,” he said.
Energy, infra
Likewise, the GPCCI proposes crucial reforms to address high energy costs and infrastructure risks as those outlined in the AHK World Business Outlook Spring 2024 survey.
Moreover, it is clamoring for amendments to the Electric Power Industry Reform Act (EPIRA) to lower electricity costs and improve efficiency.
The Konektadong Pinoy Bill is introduced to increase competition in telecommunications, potentially reducing consumer costs.
The creation of a Department of Water Resources would manage water sustainably, while the Waste-to-Energy Bill seeks to convert waste into renewable energy, enhancing environmental sustainability and energy diversity.
General economic reforms
Further, the chamber proposed for lawmakers to pass the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act to enhance incentives for existing and new companies and provide locators with greater flexibility in work arrangements.
Additionally, Amendments to the Government Procurement Reform Act are sought to ensure public procurement processes are more transparent, competitive, and sustainable.
“It is imperative to implement these essential reforms to convert investment pledges into tangible results,” said GPCCI president Marie Antoniette Mariano.
“These reforms not only align with the business partnerships discussed at the Philippines-Germany Joint Economic Committee last March but also are crucial in enhancing the nation’s competitiveness,” he said.
Finally, the GPCCI also highlights the necessity for the Philippine government to bolster the Ease of Doing Business by continuing reforms focused on reducing bureaucratic red tape and combating corruption. It also stresses the need for improving judicial and administrative efficiency to ensure effective law enforcement and streamline tax processes.
Continuing the momentum
Germany’s role as a key economic partner in the Philippines within the European Union has been bolstered by several high-profile engagements in the first quarter of 2024.
These include visits by German and Philippine leaders and the productive 2nd Joint Economic Commission meeting, which have significantly strengthened the bilateral relationship.
Additionally, ongoing support for the EU-Philippines Free Trade Agreement is set to expand economic opportunities and integrate the Philippines further into global supply chains.
“Given the global shifts affecting international supply chains, German companies recognize the strategic importance of diversifying their investments in their China plus 1 production strategy.” says GPCCI Executive Director Christopher Zimmer.
“Advancing these legislative reforms will enhance the Philippines’ image as a prime investment destination within the ASEAN region,” he added.
