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Business sector's priority legislation list: Fast-tracking economic growth

Published Jul 15, 2024 04:17 pm

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Ahead of President Marcos’ third State of the Nation Address (SONA) on Monday, July 22, the business sector has urged the enactment of five important bills that are deemed critical to accelerating the momentum of economic growth and enabling Filipinos to attain a higher quality of life.

The five priority measures are: Apprenticeship Program Reform (Senate Bill No. 2491); Enterprise-Based Education and Training Framework Act (SB No. 2587); Philippine Downstream Natural Gas Industry Development Act (SB No. 2247);People’s Freedom of Information (SB No. 1006); and Right-of-Way Act Amendments. These span the spheres of employment and education, energy and infrastructure development, and transparency in governance.

According to the Makati Business Club that is composed of senior executives from the largest and most profitable multinational and local companies in the country: “Improvements in governance, ease of doing business, skills development and infrastructure enhancements need to be expedited to enhance our country’s competitiveness.” These critical reforms are key to “bolstering the Philippines’ appeal as an investment hub and translating $19 billion in investment pledges into concrete realities.”

The twin measures on human resource development deserve special emphasis. An enterprise-based, education and training framework is essential in ensuring that apprenticeship and other knowledge- and skills-oriented programs are logically sequenced, thematically related and geared toward achieving synchronized outputs and outcomes.

The measures also envision a more seamless integration of qualified apprentices into the regular workforce. Upon engagement as trainees, they shall receive “an allowance which shall not be below 75 percent of the applicable minimum wage rates plus accident or disability insurance.” An apprentice shall no longer undergo probationary employment if he or she is eventually hired by the company, subject to TESDA’s certification of competency and readiness, that is, in turn, premised upon hurdling the national competency test. The certified apprentices shall be awarded equivalent unit credits that would incentivize them to take tertiary courses leading to college degrees. All these would involve close coordination among TESDA, the Department of Education, and the Commission on Higher Education.

Participating companies shall also enjoy tax incentives, such as deducting from taxable income up to 50 percent or one-half of covered labor training expenses.

Senate President Protempore Jinggoy Estrada, pointed out: “Since 2013, I have been pushing for an enhanced apprenticeship program for the youth so we can have a highly competent and skilled workforce” that is responsive to sectoral needs.

In supporting this bill, the Philippine Business for Education (PBed) emphasized the need for the country to reap the economic dividends from having a young workforce by investing heavily in education and training of the youth. Linkages among the concerned sectors are vitally needed to close existing gaps.

A quick review of the priorities established by the Legislative-Executive Development Advisory Council (LEDAC) in late June shows that the Amendments to the Right of Way Act are in the top priority list; and the Enterprise-Based Education and Training Framework Act is included in the second priority list.

Hopefully, the new inter-chamber dynamics brought on by the Senate reorganization could bring about closer harmony and coordination with the House of Representatives in giving credence to the business sector’s agenda for reform legislation that will hasten economic growth and social progress.

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Roni Santiago
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