The Philippine Chamber of Commerce and Industry (PCCI) said the private sector is bearing the consequences of the corruption scandal in flood control projects, with some businesses reporting decreased productivity.

PCCI President Ferdinand Ferrer said the billions of pesos allegedly pocketed by corrupt officials have disrupted business operations nationwide by undermining confidence in the economy and weakening morale in the workforce.

“We continue to run our businesses as resilient and as cautious as possible, but our people, the people in the operations, have really been affected and dismayed over this massive corruption issue that has, at times, affected their productivity and ultimately, our overall operations,” he said in a statement.

Ferrer acknowledged that the government is taking the necessary steps to quell corruption, such as by making the budget process more transparent and conducting investigations.

But he stressed that these measures must “go beyond putting people in jail and bringing them to courts.”

According to Ferrer, the government must institute corrective reforms to prevent the massive abuse of power and the theft of people’s money from happening again.

“The [PCCI] is urging the Marcos administration to undertake decisive action through procedural and policy reforms that go beyond prosecution to address the systemic corruption and abuses in government,” he said.

Ferrer, who leads the country’s largest business group, said all the billions in pesos that were lost to corruption could have been used by the government to improve the country’s digital connectivity and infrastructure.

Investing in the digital ecosystem could have made the country a more attractive investment destination, he said.

He added that it could also have served as a lifeline for many micro, small, and medium enterprises (MSMEs) that lack reliable internet connection.

“We need to ensure they are connected and can use e-commerce faster and efficient,” said Ferrer. “If we improve their economic standing, the country improves.”

As the corruption scandal continues to unfold, Ferrer urged the government to focus on digitalization to improve the ease of doing business in the country and help restore investor confidence.

This is seen to bring much-needed transparency and efficiency in establishing businesses in the country while reducing human intervention and aligning the country’s policies with global benchmarks.

To this end, Ferrer said cybersecurity is another concern that the government should address next to ensure that MSMEs operate safely and efficiently in the digital space.