Finance Secretary Carlos Dominguez III, one of the economic managers of President Rodrigo Duterte's administration. (File photo)
MANILA -- The Duterte administration’s economic managers will decide on the steps the government must take in relation to the trade war between the United States and China, Malacañang said on Monday.
This after the Foundation for Economic Freedom (FEF), a public advocacy organization, urged the Duterte administration to take advantage of the trade war by luring Chinese factories to the Philippines.
Presidential Spokesperson Salvador Panelo said President Rodrigo Duterte, who has relied on China to fund many of the government's infrastructure projects, would take into consideration the recommendations given by his economic team.
“Whatever the recommendation of the Secretary of Finance and the other economic managers, the President will be evaluating that,” Panelo said in a Palace briefing.
The FEF said luring these factories to the Philippines would greatly boost manufacturing, result in higher paying jobs, technology transfer, and increase and diversify the country’s exports.
It further said that the Philippines, known for its highly skilled English-speaking workforce, could become an alternative destination for factories seeking to avoid the US-China trade war.
According to the FEF, the government should immediately pass the second package of the Tax Reform for Acceleration and Inclusion (TRAIN) or Tax Reform for Attracting Better and High-Quality Opportunities (TRABAHO) Bill to remove uncertainty about the tax regime on fiscal incentives and corporate income taxes.
It urged the government to pass the Public Service Act Amendment to liberalize foreign investment in transportation and telecommunications; to swiftly implement the Ease of Doing Business Act as its implementing rules and regulations (IRR) have yet to be issued; and desist from passing the Security of Tenure bill or ending the end of contract act, which is pending in the Senate, noting that it will hamper the flexibility of firms.
The FEF also encouraged the government to “seriously and quickly” implement the “Build, Build, Build” infrastructure program and shift to Public-Private Partnership. (PNA)
