Gov't urged to improve logistics, communication

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Sunday, March 16, 2014

IN LIEU with the upcoming Asean economic community (AEC) in 2005, the government should improve and develop its logistics, transportation, and communication sectors to promote and boost competitiveness and productivity, a World Bank-Philippines executive said.

Kendrick T. Chua, World Bank Philippines senior country economist, said the Philippines may fall short in these sectors.

"Now that we are opening up for the AEC in 2015, it might be important for the government to look and review these sectors and see how we can encourage and provide them opportunities," he said.


For instance, he said that improving and developing the logistics sector is important in promoting competition and productivity.

"In the Philippines, compared to other countries, we pay almost 30 percent of our retail price for logistics -- like shipping, poor infrastructure, roads, wastage. If we develop this, it can promote higher competition and can serve as an incentive for companies to be more productive and a form of discipline to ensure they do not have inefficiencies. This would actually benefit a lot of Filipinos," Chua said.

He also said in giving incentives to investors in these sectors, it should be transparent, temporary, and performance driven.

Chua said the government currently gives incentives that are not transparent and performance driven.

Published in the Sun.Star Davao newspaper on March 17, 2014.


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