#MINDANAO
John Tria
As a new administration takes shape, much discussion on previous government policies and achievements are a normal occurrence, and I believe it is proper to take stock of such policies and how the target sectors benefit (or not) from them. They can come in the form of administrative orders issued by implementing agencies or actual laws passed by Congress as Republic Acts you can download from the Official Gazette.
Those who want to analyze them deeper can attend fora organized by some educational institutions. Such was the case from way back in 1992 with former President Corazon Aquino.
We all read about popular Duterte-era socioeconomic reforms, such as the TRAIN Law, the CREATE Law, the infrastructure push, the amendments to the foreign Investment and the Public Service Acts allowing more foreign ownership of enterprises we need and the access to tertiary education (free State university) and the Universal Health Care Law will definitely be remembered and talked about for the next generations.
Yet there are other reforms not often discussed but will be felt by a larger majority, especially micro, small and medium enterprises that make up 97 percent of all businesses, and form the economic backbone of and residents of the regions outside of Metro Manila. These are reforms that change the game because they allow more to participate in the economy and its continued growth.
The first is the Personal Property Security Act or Republic Act 11057 encourages the financial sector to take in movable assets such as equipment, even receivables as collateral for loans. Having the capability to do so may achieve two things: one, lower the cost of borrowing since such provides security that financial institutions need and in turn, provide lower interest rates.
At the moment, many small businesses have no recourse but to borrow unsecured loans from third party lenders at high interest. Lower cost of borrowing enables small businesses to be more competitive especially in the new normal, as lower debt service allocations can enable them to lower over all costs and increase margins. I urge you to read up on this, click here https://www.dof.gov.ph/advocacies/personal-property-security-act/.
Another law worth promoting and sustaining is Republic Act 11337 or the Innovative Startup Act of 2018. This will help create the startup ecosystem, or support environment in many areas in the country for new and innovative businesses to emerge, capitalizing on unique raw materials available in said areas.
I would encourage incoming DTI Secretary and former UP President Alfredo Pascual to push implementation of this law by creating more interface between state colleges and their research outputs, the business community and local governments to build an innovation agenda and set targets in local areas. I can imagine new enterprises stemming from areas rich in cacao and coffee, making new products, adding value and creating employment and other opportunities in the process.
Another is the digitalization of banks and electronic receipts. What many may not know is that Section 73 of the TRAIN Law (RA 10963) provides for electronic invoices or receipts. This will improve tax administration and collection, and allow many businesses the receipts to record expenses properly and apply input VATs when needed. I also know many small businesses who have difficulty in filling out bank paperwork or have little time to line up in banks. By transacting through phone apps, they can participate in the financial system for their own business growth.
I would encourage you to download copies of these reforms.