MBC: Red tape making PH less competitive
GOVERNMENT red tape is discouraging foreign investors from doing business in the Philippines and making the country less competitive, the Makati Business Club (MBC) said.
According to MBC Vice-Chairman Robert de Ocampo, the overabundance of documentary requirements that businesses need to meet in order to begin operations in the country are a turn-off and must be addressed immediately.
“Foreign investors may find us less competitive and bring their investments elsewhere. Some may think that the process opens possibilities for graft and corruption,” he said.
The ex-Finance secretary’s remarks are similar to that of former Finance Undersecretary Romeo Bernardo, who said that at least 200 signatories are needed before a power plant can start operations.
Besides the energy industry, the mining sector is also hit by such requirements.
According to Global Ferronickel Holdings President Dante R. Bravo, a group of people paid a visit to one of the company’s mining sites in Surigao del Norte province’s Claver town and introduced themselves as belonging to the Mamanwa tribe, one of the country’s recognized indigenous peoples.
The visit surprised the firm’s top officials, for they did not see any people there during their almost year-long exploration of the site, he said.
Under the law, recognized members of any IP community are entitled to 2-percent royalty in gross revenues.
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