The German-Philippine Chamber of Commerce and Industry, Inc. (GPCCI) is calling on President Marcos to prioritize vital strategic reforms in his State of the Nation Address (SONA) on Monday.
In a statement on Friday, July 19, GPCCI listed some needed reforms to sustain and enhance the bilateral economic partnership between Manila and Berlin, which generated P393.99 billion in trade volume last year.
Topping the list of GPCCI's recommendations are critical education and labor reforms, notably the overhaul of the apprenticeship program and the implementation of the enterprise-based education and training framework act.
GPCCI said these reforms are key for nurturing a highly skilled Philippine workforce with tailored training programs that address specific skill sets and industry requirements.
By enhancing the adaptability and expertise of workers across diverse sectors, GPCCI said these reforms aim to boost competitiveness and innovation in the local and global markets.
“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,” GPCCI Vocational and Dual Training Chairperson Tristan Arwen Loveres said.
“Emphasizing this policy will reflect the Philippine government's recognition of the country’s human capital as a fundamental asset,” Loveres added.
GPCCI has proposed reforms to address high energy costs and infrastructure risks, as outlined in the AHK World Business Outlook Spring 2024 survey. These reforms include amendments to the Electric Power Industry Reform Act (EPIRA) to lower electricity costs and improve efficiency.
The Konektadong Pinoy Bill has been introduced to increase competition in the telecommunications sector, potentially reducing consumer costs.
Additionally, a Department of Water Resources is proposed to manage water sustainably. Furthermore, the Waste-to-Energy Bill seeks to convert waste into renewable energy, enhancing environmental sustainability and energy diversity.
GPCCI alsi supported the proposed Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act.
The business group said CREATE MORE will enhance incentives for existing and new companies and provide locators with greater flexibility in work arrangements.
Additionally, it said amendments to the Government Procurement Reform Act should be prioritized t 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,” GPCCI President Marie Antoniette Mariano said.
"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,” Mariano added.
Finally, GPCCI highlighted the necessity for the government to bolster the Ease of Doing Business by continuing reforms focused on reducing bureaucratic red tape and combating corruption.
Additionally, it stressed the need for improving judicial and administrative efficiency to ensure effective law enforcement and streamline tax processes.
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, GPCCI Executive Director Christopher Zimmer said.
“Advancing these legislative reforms will enhance the Philippines' image as a prime investment destination within the ASEAN region,” Zimmer added.