NEDA: Trade sector needs structural and logistics reforms for recovery

MANILA, Philippines – National Economic and Development Authority (NEDA) acting head Karl Kendrick T. Chua said structural and logistics reforms are needed to help the trade sector of the country recover.

“For faster trade growth recovery, the government needs to intensify its efforts by prioritizing structural and logistics reforms that will serve as the backbone of ongoing efforts to improve the business environment and create development opportunities,” said Chua.

The economist said the reforms will make the country a suitable investment destination for investors who can also bring technological advancements to help in the fight against the coronavirus (COVID-19) pandemic.

He also said the government must prioritize legislation that makes foreign investment easier in some sectors, such as the proposed amendments to the Public Service Act, the Foreign Investment Act and the Retail Trade Liberalization Act.

He supported logistics reforms such as rationalizing the freight system and establishing strategic warehousing and cold chain systems for continuous production.

“While the government is laying the groundwork with improved infrastructure, logistics, regulations and reforms, the business sector also needs to recognize the change in consumer preference. This is now an opportune time for them to re-orient and re-design their production and supplies network accordingly,” Chua added.

He also supported the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE), which gives various incentives to businesses seeking to expand.

The Philippine Statistics Authority (PSA) has reported that the total merchandise trade of the country had its lowest monthly decline since 1991, reaching $6.1 billion in April this year.