The goings-on at the Subic Bay Metropolitan Authority (SBMA) have been deemed anti-business, threatening the country's economic progress. SBMA Chairman and President Johnson D. Tan's policies have rankled many businesses in the port area, leading to higher costs of doing business and the revocation of certificates without due process. This goes against the principle of due process enshrined in the Constitution. The government's vision to move the country to upper middle-income status and reduce poverty incidence relies on a vibrant economy with more jobs and income. The country's debt is approaching P13 trillion, and any additional economic shock could push it beyond repair. The SBMA should not be allowed to let businesses stagnate, and the government needs to ensure that all government bureaucrats align with the economic vision. The Philippines has earned investment grade ratings from Moody's, Standard and Poor, and Fitch Ratings, but the Covid pandemic has weakened the country's economic and fiscal strength. The burden of fiscal instability is a concern due to the country's debt and potential increase in interest rates.
The challenges faced by the SBMA highlight the importance of streamlining business processes and creating a business-friendly environment. Efforts to promote entrepreneurship and innovation, as seen in Penang and the Philippines, are crucial in driving economic growth and development. However, it is equally important to address issues that hinder business growth, such as anti-business policies and lack of due process. By addressing these challenges, the government can ensure a conducive environment for businesses to thrive and contribute to the country's economic progress.
The National Economic and Development Authority (NEDA) believes that lifting restrictive economic provisions of the constitution would help accelerate the Philippine economy. NEDA Secretary Arsenio Balisacan stated that removing these restrictions, particularly constitutional ones, would be beneficial for the economy as they have hindered its growth. The Philippines has missed out on opportunities in education and foreign investment due to these restrictions. President Marcos has mentioned the government's study on amending the constitution to attract more investments, and House Speaker Martin Romualdez has expressed support for changes in the constitution's economic provisions. Foreign business groups have called for the lifting of the 40 percent limit on foreign ownership of local firms. The government has made piecemeal reforms to make the country more attractive to investors, such as amendments to the Public Service Act and the Retail Trade Liberalization Act. The NEDA will consider the issue when it arises.
The challenges at the SBMA and the push for lifting economic provisions in the constitution are two significant factors that could impact the country's economic progress. Streamlining business processes and creating a business-friendly environment, along with removing restrictive economic provisions, can contribute to a vibrant economy with more jobs and income, ultimately helping the Philippines achieve its goal of becoming an upper middle-income country and reducing poverty incidence [7d484182][abc1021d].