Google

ASEANAFFAIRS
Sign up | Log in

    ASEAN PROFILES

  ASEAN KEY DESTINATIONS

Home  >>   Daily News  >>Philippines>>Economy>>Federalism: More challenges than opportunities
NEWS UPDATES Asean Affairs     February 3,  2017  





Federalism: More challenges than opportunities


PHILIPPINES:The shift to a federal form of government will bring drastic changes to the country's current political and business landscape, presenting both challenges and opportunities but, from the point of view of a business executive, more of the former.

Government services and processes are expected to undergo considerable changes during the transition, said Peter Perfecto, executive director of the Makati Business Club (MBC).

“For example, the central government and the federal states may share powers over taxes, but each federal state may still impose more specific variations of local taxes,” Perfecto noted.

“This can be a challenge, since the process might add another layer of bureaucracy from the perspective of business, and businesses would have to carefully consider the different local laws and regulations of each region or state when doing business there,” he added.

Federalism is a system of government in which several states form a unity but remain independent in internal affairs, with the central government distinguished from the separate units constituting a federation.

'A major concern'

Still, opportunities may emerge for business as each region or state would be compelled to offer competitive environments and adopt innovative systems to attract investment.

“A major concern, of course, is how a federal system would affect the relationship of the national government and the states in terms of avoiding conflict in laws and regulations,” Perfecto said.

The shift also entails a thorough review of the current set-up under the Local Government Code to know if it really has been fully implemented and to what extent its potential has been maximized, according to the business executive.

Ease of doing business

One of the many issues that impede new investment in the Philippines is the ease of doing business, with bureaucratic red tape and tedious process of filing documents discouraging investors.

This is a top concern of the business community, Perfecto noted.

“The main concern of business, at this point, is if the shift to a federal form of government may add another layer of bureaucracy and hinder ease of doing business," he said.

"With regions/states having a more independent hand in determining local laws and managing local resources, we have to ensure that local leaders are committed to offering efficient and transparent operations,” Perfecto emphasized.

Impact on MSMEs
 
The impact on local or regional businesses, especially micro, small and medium enterprises (MSMEs), is also a concern.

“The advantage we are seeing is that regions/states can define and manage support programs specifically designed for the profile of their local MSMEs and not simply rely on national programs – some of which may not address local need,” Perfecto noted.

Economic development beyond the National Capital Region is supposedly one of the main purposes driving the Duterte administration to push for federalism, Perfecto said. “It seems that the plan is driven by the need to provide enterprises an enabling environment to thrive and for businesses to contribute to inclusive growth.”

However, the challenge comes if some states are not equipped and leaders are not driven enough to become enablers of entrepreneurs. “We might see some lag on MSME support in these regions,” Perfecto added.


Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates
Contact: marketing@aseanaffairs.com

Comment on this Article. Send them to  your.views@aseanaffairs.com

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
 
or
submit your comment in the box below



 
Today's  Stories                           February 3, 2017 Subsribe Now !
• 2017 investments likely to remain similar to last year's: EDB Subcribe: Asean Affairs Global Magazine
• Thai-Myanmar talks due
• Government critiques Cambodian cinema 
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

• Federalism: More challenges than opportunities
• Climate change affected soybean farmers get new seeds, technology
Asean Analysis                  January 19,, 2017
• Asean Analysis  January 19, 2017
Engaging Southeast Asia: Economic Recommendations for the New Administration
Advertise Your Brand

Asean Stock Watch   February 2, 2017
• Asean Stock Watch-February 2, 2017
The Biweekly Update
• The Biweekly Update  January 19, 2017

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan

ASEAN  ANALYSIS

This year in Thailand-what next?


AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More

 


Name

Name


Email

Email



1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2020 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand
asean@aseanaffairs.com