Lawmakers told to focus on industry buildup as Congress resumes session

By John Victor D. Ordoñez, Reporter and Kenneth Christiane L. Basilio

PHILIPPINE lawmakers should push measures that will raise farm output, boost local manufacturing and develop the renewable energy (RE) sector as Congress resumes session this week, economists and analysts said at the weekend.

“Congress should focus on enhancing productivity by using science and technology in boosting local industries, modernizing agriculture and pivoting toward renewable energy sources,” John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said in a Viber message.

Senate President Francis G. Escudero on Saturday said the Senate would scrutinize a proposal to amend the Electric Power Industry Reform Act (EPIRA) amid persistent power failures nationwide.

It would also prioritize changes to the Corporate Recovery and Tax Incentives for Enterprises Act. One key feature of the bill is lowering taxes on domestic and foreign companies.

“There should also be a public education program to explain that foreign manufacturing investment in the country and especially those ensconced in low value-added enclaves do not mean Filipino industrialization,” Jose Enrique A. Africa, executive director of think tank IBON Foundation, said in a Viber message.

He said the House of Representatives should fast-track debates on House Resolution 8, which seeks a framework to boost the country’s capacity to enforce renewable energy projects and focus on industry development rather than foreign investment.

“Progressive lawmakers can take the lead in pushing an official declaration of national industrialization as the country’s major strategy for structural transformation and economic development,” Mr. Africa said.

Energy Undersecretary Sharon S. Garin told senators last week her agency is trying to encourage more battery companies to set up shop in the country to fast-track the country’s RE development targets.

“The approach for now shouldn’t be to enact more laws but to ensure current laws impacting the manufacturing sector cohere with one another and align towards the same goal which is to boost the sector’s productivity,” Michael Henry Ll. Yusingco, a fellow at the Ateneo de Manila University Policy Center, said in a Facebook Messenger chat.

He added that proposals against political dynasties are unlikely to prosper in Congress.

“Lawmakers will never kill the goose that lays the golden egg for them,” Mr. Yusingco said. “The status quo keeps their families in power, so they will never be inclined to change it.”

Renato B. Magtubo, a former congressman and chairman of Partido Manggagawa, said in a Viber message that Congress should boost support for farmers through modern machinery.

“The government needs to establish a strong link between agriculture and industry sectors to promote robust agricultural production,” he said.

Hansley A. Juliano, who teaches political science at the Ateneo, said the most pressing issues for ordinary Filipinos remain to be the lack of access to quality, high-paying jobs, the spiraling costs of goods and poverty.

“They should seriously begin considering alternative policies… especially ones that tackle sociocultural inequalities,” he said via Messenger chat. “Addressing these institutional gaps could nominally bolster productivity and opportunities for Filipinos.”

Philip Arnold “Randy” P. Tuaño, dean of the Ateneo School of Government, said the state should look at more long-term reforms in politics and the economy, noting state silence on proposals to strengthen political institutions.

REFORMS
“Proposed legislation on strengthening the political environment… is just as important,” he said via Messenger chat. “Reforms on the political environment include strengthening political parties, further electoral modernization and others are important in laying the foundations for long-term institutional maturity in the country.”

Congress will reopen on Monday after a two-month break, in time for President Ferdinand R. Marcos, Jr.’s third state of the nation address.

The House of Representatives earlier said it would prioritize the proposed 2025 national budget and amendments to laws that reformed farmers’ land ownership and liberalized the power industry before it goes on a break again in September.

Lawmakers should also prioritize measures that seek to boost local industries such as agriculture, address poverty, inflation and food insecurity, said Maria Ela L. Atienza, a University of the Philippines Political Science professor.

“The quality of services like health, education and welfare also needs more attention,” she said in a Viber message.

Speaker and Leyte Rep. Ferdinand Martin G. Romualdez said they would focus on passing the remaining priority bills.

Priority measures identified by the Legislative-Executive Development Advisory Council (LEDAC) do not address issues faced by ordinary Filipinos such as poverty and the lack of quality jobs, Mr. Juliano said.

“The entire package reeks of trickle-down economics, which belies a lot of the failures and missed opportunities of the Philippine economy,” he said.

Most of the priority bills focus on infrastructure, investments and tax administration, ignoring much-needed reforms in education and human capital development, Leonardo A. Lanzona, an economics professor at the Ateneo, told BusinessWorld.

“There is also a need to work on improving the education and health sectors as these crucially affect the future of the country,” he said via Messenger chat. “Investing in people should be the focus of these priorities.”