NATIONAL COMPETITIVENESS COUNCIL

1. NATIONAL COMPETITIVENESS COUNCIL Presentation to the Australia-New Zealand Chamber of Commerce Ambassador Cesar B. Bautista NCC Co-Chair 17 April 2007 Oakwood Premier, Makati City

2. Executive Order 571 • Created the National Competitiveness Council (Public-Private Sector Task Force on Philippine Competitiveness) • Objectives: • Improve Philippine competitiveness by implementing the Action Agenda resulting from the National Competitiveness Summit • Follow through continuous improvement efforts to reach the top third ranking in the World Competitiveness Report by 2010 • Secure public-private partnerships as a development engine

3. The Council is now actively engaged in addressing the areas of Competitiveness National Competitiveness Council Private Sector Amb. CBBautista (Co-chair) Amb. DGDee Amb. RRRomulo Dr. FMMacaranas Mr. Gil Salazar Public Sector DTI (Co-Chair) DOF DOTC DepEd NEDA Secretariat Working Groups: Competi-tive Human Resources Efficient Public & Private Sector Mgt. Effective Access to Financing Improved Transaction Flows and Costs Seamless Infra-structure Network Energy Cost Competi-tiveness and Self Sufficiency Special Concerns -Legislative Matters Special Concerns – Ombudsman and Judiciary Infrastructure Monitoring Task Force EDC NC on Financing Anti-Red Tape Task Force

4. Supported by a Private-Public Secretariat National Competitiveness Council Directly reports to the Council Secretariat Continuous consultations to keep the Action Agenda updated Private Sector Director Public Sector Director Coordinates with the Private Sector Champions Advocates Action Agenda Links for logistics & projects needs Policy research and development Executes communication plan Development Partners Other Non-TF Agencies Working Groups Citizenry Academe

5. Private Sector Champions have been mobilized to be the lead advocates - Human Resources - Management - Financing - Transaction Flows & Costs - Infrastructure - Energy - Special concerns (legislature) - Special concerns (judiciary, ombudsman) • Atty. Emerico de Guzman, PMAP • Mr. Baltazar Endriga, MAP • Mr. Sergio Ortiz-Luis, Jr., PHILEXPORT • Mr. Dave Balangue, FINEX • Mr. Meneleo Carlos, FPI • Mr. Antonio del Rosario, Sr., MBC • Mr. Francis Chua, FFCCCII • Atty. Miguel B. Varela, PCCI

6. 6 Priority Projects Competitive Human Resources • Improve the education system, targeting proficiencies in English, Science and Math. Identify metrics/indices for 2010 (e.g., 30% improvement by high school seniors) • Enhance the country’s basic education track • Address mismatch in skills and labor market demands. Implement the National Manpower Summit Action Agenda • Pursue various projects on OJT components of education and determination of reasonable metrics for 2010 • Develop competencies in every school - joint effort between DepEd and private sector in 2008 • Address damaged value system - Institutionalization of Governance Standards in the Professions

7. 6 Priority Projects Reducing Transaction Costs and Improving Transaction Flows • Improve the procedures for the entry and exit of business persons (Short Term - BI) • Enhance the procedures for the entry and exit of goods (Short Term-BOC) • Consistency in the implementation of business rules at the national and local levels (Long Term) • Improve the processes in starting, maintaining and closing a business • Institutionalize regulatory impact assessment on present and/or revised government requirements (Long Term – DTI, NEDA, DBM) • Harmonize incentives (Long Term – DTI, DOF, DILG/ULAP/ Leagues)

8. 7 Priority ProjectsEfficient Public and Private Sector Management • Implement a Quality Management System for government offices to achieve ISO 9000 Certification (20% of offices to be certified by 2010) • Fast track the implementation of the Government Rationalization Program • Institutionalize a system of cross-posting between senior public and private sector officials • LGUs: Achieve world-class performance of cities in 2008 (20% of municipalities by 2010) • Private sector volunteerism: • Big-Brother Small Brother Program including volunteers (Bayanihan for Productivity) • CHARM Project – enhance frontline services in government • Adopt the use of governance scorecards for companies by 2010 • E-governance in all government offices

9. 6 Priority Projects Seamless Infrastructure Network • NAIA Terminal 3 opening • Lighting of airports • Reduce shipping/transport costs a) prioritize legislation that will make PPA more an agent for competitiveness b) increase highway network by encouraging the fast track development of the central nautical system - RORO • Fast track operations of Subic and Batangas Ports • Upgrade NLEX, Star, Subic-Clark-Tarlac Road, etc. a) SLEX 2 – road widening between Alabang & Calamba b) Subic-Clark-Tarlac road c) CIAC Radar d) EDSA rehabilitation e) Alabang Viaduct upgrading, etc. • Develop clear policies on pocket open skies

10. 8 Priority Projects Energy Cost-Competitiveness and Sufficiency Real open access in distribution of power (how to tackle lack of competition issue vis-à-vis privatization) Temporary reduction in royalties from Malampaya for four years Direct purchase of fuels by IPP Review and update EPIRA law to remove defects Need to provide new capacity Renewable energy policy – define to hasten development Government/private sector support for Electric Cooperatives Undertake a no-nonsense energy savings drive

11. 2 Priority Projects Special Concerns - Legislative Matters Initiate the lobbying, prior/subsequent to the May elections, in support of the creation of an adhoc unified Committee on Competitiveness from both chambers of Congress Ensure continuity of support for priority bills identified in the competitiveness agenda.

12. 3 Priority Projects Financing 1) Conduct awareness campaign of financing programs a)Update the publication “How to Approach Banks”  b) Use Mass Media, i.e. TV, Radio, Print, Internet   2) Increase lending to SMEs a)  Review the SBCorp charter, Magna Carta for SMEs and Agri-Agra Law b)     Expand further the SULONG program to reach more SMEs in the regions c)     Assist MSMEs to qualify as borrowers * Enhanced Trainings * Business Nucleus/SME Centers • * MBA candidates to help SMEs in coming up with concrete business plans and in setting up an efficient accounting system as part of their academic requirements 3) Enhance the role of micro- financing regulators and practitioners to strengthen its effectiveness (e.g. India/South America banking models)

13. 3 Priority Projects Special Concerns - Ombudsman, Judiciary Orientation of judiciary through courses on economic issues – Work through SC and Philippine Judicial Academy. Encourage arbitration/alternative dispute resolution as a vehicle for expeditious settlement of business issues. Work with PAGC to improve effectiveness and business competitiveness

14. Early Harvest • Adoption of NCC agenda by development partners • Appointment of an Investment Ombudsman • Infrastructure projects on schedule (EDSA Rehabilitation, Subic Bay Port, SCTEP, Manila Bulk Water, Aqueduct 5&6) • Implementation of the plan to institutionalize Quality Management Systems (QMS) in government agencies; ISO 9000 certification • Highest priority on Energy Cost Reduction • Metrics in improving English, Math, Science being developed with DepEd • Extension of ACR I-card validity to 5 years (from 1 year)

15. Commitments by International Development Partners • Deutsche Gesellshaft für Technische Zussamenarbeit (GTZ) is proposing to fund multiple areas: • Public-Private consultation processes that will be identified in the six areas’ action plans including travel costs • Planning, evaluation and monitoring systems of the Secretariat that include scorecard development, hardware, software and training • Knowledge management and communication plan

16. Commitments by International Development Partners • Canadian International Development Agency (CIDA) is proposing to fund a coordinator-liaison between the NCC and international development partners • Work with the program officers to identify resource gaps in the priority projects • Package project proposals and work with specific development partners for quick mobilization of resources • (New) Funding and resources for the setting up of the Regulatory Impact Assessment systems

17. Commitments by International Development Partners • Partnership for Advocacy on Competitiveness and Trade (PACT [USAID]) is proposing to fund a supplementary program officer • Assigned to the EDC as full-time secretariat support of the Anti-Red Tape Task Force • Support the NCC program officer and complement efforts in the Transactions Costs and Flows action plan • (New) Funding and resources for the setting up of the Regulatory Impact Assessment systems

18. Moving Forward • Meetings with heads of key government agencies such as CHED, TESDA, PNOC, NPC and members of the Council (DOE, DepEd and DOTC) regarding progress on the Summit issuances • Development and implementation of detailed work programs for each priority projects, including identification of capacity building needs and resources • The NCC is more than just a lobby group. It will have its own action agenda and will be engaged with regulatory/policy bodies towards improved competitiveness

19. Government ENABLES; Business DRIVES the economy • NCC is a Private-Public Sector Partnership model and its success depends on the commitment of the partners

20. Thank You!