GOVERNMENT regulations and corruption, high utility costs and lack of quality infrastructure have topped the key obstacles faced by business owners in Cebu, a PwC Philippines survey revealed.
Cebu Chamber of Commerce and Industry (CCCI) president Virgilio Espeleta said the business sector is hoping the survey will drum up dialogue between the public and private sectors and ultimately lead to reforms and more progressive policies to drive Cebu’s competitiveness.
Based on the survey, Cebuano businesses have identified linkages, ease of doing business and access to credit as among main enablers for growth.
Aldie Garcia, assurance partner at PwC, said the report is based on feedback from members of the CCCI from June to July 2019 primarily to pinpoint enablers and obstacles directly impacting their competitiveness.
In a press conference Tuesday, Oct. 29, 2019, he said both public and private sectors must work together to push for reforms to reboot and enable a vibrant business environment in Cebu.
Espeleta agreed that competitiveness must be a shared ambition for the both the government and private sectors.
“Against this backdrop that we wanted to get the pulse of the Cebu business community on which areas they think are critical to boost the competitiveness of their businesses and Cebu as a whole,” he said.
Presenting the survey results, Garcia cited one major factor that drives overall competitiveness as the ease and cost of doing business.
According to the World Bank, government regulations can either restrict or facilitate success of business operations and directly impact a country or city’s overall competitiveness.
The survey, Garcia said, showed that this is the top obstacle for Cebu business owners.
Bureaucracy and lack of transparency were cited as subsets of a difficult regulation, together with the unreasonably high number of steps or procedures for business permits and compliance.
Tax regulations and lack of government aid for small and medium enterprises (SMEs) were also mentioned by the respondents.
Despite the challenges cited, the PwC survey also noted that about 53 percent of the 204 Cebu business owners and executives surveyed are confident their business will grow in the next three years while 49 percent are confident about Cebu’s prospects moving forward.
Espeleta asserted that making Cebu competitive calls for strengthening of government institutions and ensuring that regulations and policy directions are turned from obstacles to enablers.
The CCCI eyed a five-point agenda to raise Cebu’s competitiveness. These are the creation the Cebu Investment Concierge Center, establishment of Anti-Red Tape Authority collaboration desk, streamlining and digitizing the business permit and licensing system, expanding incentives and aid for SMEs and startups and creation of Cebu Business Advisory Council.