Two laws, designed to further ease doing business in the country and lead us to more economic growth opportunities, were signed by President Ferdinand R. Marcos Jr. on Dec. 5, 2023. These are the Public-Private Partnership (PPP) Code of the Philippines and the Internet Transactions Act (ITA) of 2023. Both are considered “landmark” laws as they are anticipated to have a profound economic impact, not only in the present but more so for the future.
The first law emphasizes the strategic importance of PPPs in addressing complex challenges and enhancing the efficiency of public service delivery. In fact, by combining government resources and regulatory authority with the innovation and efficiency of private businesses, PPPs can lead to improved infrastructure development, service delivery, and economic growth. With the presence of a law, there is a roadmap to see this kind of partnership flourish regardless of the times we are in.
On the other hand, the ITA is not only timely as internet transactions gradually become the norm and not an exception. With internet connectivity and usage becoming widespread and as Filipinos spend more time online, internet transactions are done on a massive scale. With this rise, so does the prevalence of various internet-related fraud. A law, therefore, acts as a “shield” against rising online threats that victimize thousands of Filipinos within each passing second.
The Presidential Communications Office (PCO) announced the President’s signing of these two measures into law. “(The President) said the two bills show the country’s commitment and readiness to accelerate its development and to embrace the digital economy.”
According to the PCO, the PPP Code, signed as Republic Act No. 11966, will “establish a stable and predictable environment for collaboration between the public and private sectors to address the gaps in the infrastructure systems and also free up much-needed resources to enable the government to pursue other equally important projects and initiatives.” It also “incorporates best practices from over three decades of experience in implementing the Build-Operate-Transfer (BOT) Law, ensuring that the country builds better infrastructure projects and mitigates risks during their implementation.”
Meanwhile, the ITA, signed as Republic Act No. 11967, will “provide (people) with the mechanisms to confidently embrace the digital economy.” It also “highlights the government’s efforts to not only protect consumers and merchants, but also harness e-commerce as a tool for growth and development as it upholds fair business practices, fosters innovation, and institutes effective mechanisms for dispute resolution.”
Both laws were lauded by various public and private institutions, noting that these are not only necessary but will become vital as the country pushes toward upper middle-income status by 2025.
“(The PPP Code) will enable much-needed development across various sectors and accelerate the delivery of public services necessary for economic growth and socioeconomic transformation,” the National Economic and Development Authority (NEDA) said. “To sustain rapid economic growth, generate high-quality employment opportunities, and reduce poverty sustainably, we will need massive amounts of investment in physical and human capital. Given the tight fiscal space, the private sector becomes an indispensable partner in building the foundations to propel the economy's medium- and long-term expansion.”
Both laws serve as game-changers, further propelling the trajectory of our economic growth and demonstrating the administration’s genuine commitment to prepare — not only in words — for the next set of economic challenges.