New year, same challenges

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And just like that, it’s a new year. Unfortunately, we still face the same challenges – low investor confidence, with the stock market dropping by 0.21percent on the last trading day at the Philippine Stock Exchange, and closing at 6,052.92 – a 7.29 percent decline compared to 2024.

Net inflows of foreign direct investments into the country declined by 25.9 percent to $320 million in September from the $432 million recorded in the same period in 2024, based on figures released by the Bangko Sentral ng Pilipinas.

While foreign tourists continue to flock to our neighbors in the ASEAN community, the Philippines was able to attract only 5.235 million tourists from January to November last year.

The Department of Tourism (DOT), it seems, is even too ashamed about our tourism arrival figures that a check on their website for updated arrival figures resulted in an unresponsive search.

What gives? Is the DOT that ashamed that it does not even want to show  historical tourist arrival data? Or because it is the holiday, the website is not active?

A search on crime rate statistics, which is a factor that deters tourists, also showed  doubtful figures, with the latest report  of a 14 percent decline per official release of the Philippine National Police for the three-month period from July to September.

Come on now, is data gathering so difficult for the DOT and the PNP?  I thought there are police blotters to record crime incidences?

No wonder foreign tourists continue to avoid the Philippines. Do our government and law enforcement officials think that by hiding the data, tourists will be assured that it is safe to visit the Philippines?

Reality is, even the Japanese business community that is still trying its hardest to support the Philippines, has been the latest target of criminals in the usually safe Makati district. The Little Tokyo restaurant and entertainment area has had to request for a special dedicated police detachment and roving patrol to safeguard their Japanese clientele.

The flood corruption scandal probe has still not resulted in any significant charges. In fact, as I had previously written, the Independent Commission for Infrastructure or ICI appeared doomed from the start with its lack of funding and proper investigators and lawyers.

Even the bedrock of local business, the Filipino-Chinese community, is urging the government to take action.

In a statement on the first day of this new year, the Federation of Filipino Chinese Chambers of Commerce and  Industry Inc. or FFCCCII warned that “the risks facing the Philippine economy are real and persistent. Governance lapses, political fragmentation, and the escalating threats posed by climate change and natural disasters continue to undermine long-term investor confidence. Recent calamities have starkly demonstrated the urgent need for transparent, timely, science-based, and resilient infrastructure planning and reconstruction.”

They highlighted that “the Philippine economy stands at a decisive crossroads. While the country retains fundamental strengths – demographic vitality, entrepreneurial energy, and robust domestic demand – these alone will not suffice amid intensifying global uncertainty and persistent domestic constraints. The year ahead calls not for complacent optimism, but for disciplined, coordinated, and reform-driven action across government, business and civil society.”

The Filipino-Chinese business chamber acknowledged that while projected economic growth remains positive, “it is increasingly constrained by serious headwinds: unresolved governance weaknesses that erode public trust, geopolitical conflicts that disrupt supply chains and capital flows, and a volatile global financial environment. These external pressures magnify the cost of inaction at home and underscore the urgency of decisive structural reform.”

The FFCCCII underscores the following interdependent priorities: Economic competitiveness and investor confidence are inseparable from institutional integrity. The FFCCCII urges the decisive establishment of a genuinely independent anti-corruption body, benchmarked against proven international models such as Singapore and Hong Kong, alongside the full and enforceable implementation of a Freedom of Information regime.

They also urge systemic and technology-driven reforms to eliminate leakages in public finance, such as the adoption of advanced digital platforms for real-time budget tracking, open contracting standards, and mandatory transparency mechanisms that actively involve civil society and the private sector in auditing and infrastructure oversight, with every public peso accounted for and directed toward measurable national outcomes.

They also suggested a  comprehensive digitalization of government transactions that is overdue and  no longer optional. The FFCCCII calls for the strict, uniform, and non-negotiable enforcement of the Ease of Doing Business Act across all local government units, complemented by the expanded and accelerated use of green lanes for strategic and job-generating investments.

Likewise, they seek a reduction in bureaucratic friction, compliance costs, and regulatory uncertainty to attract investments, empower micro, small and medium enterprises, and create more quality employment nationwide. Predictable rules and efficient processes, they insists, are needed to  unleash the Philippines’ untapped competitive advantages.

Philippine foreign policy, the FFCCCII said, must remain principled, consistent, and firmly anchored in national economic interest. The FFCCCII advocates an independent and pragmatic foreign policy that actively promotes increased trade, foreign direct investment, tourism revival, technology sharing, infrastructure development, and strategic cooperation with all major economies.

They point out that diplomatic coherence and policy predictability are vital economic assets as the Philippines host the ASEAN Summit and preside over high-level engagements with the world’s leading economies. Stability, openness, and balance in international relations directly translate into investor confidence and long-term growth.

Economic growth, they said, must be inclusive, resilient, and anchored on fair competition, urging a faster functional rollout of PhilSys to expand financial inclusion, fully implementing the Universal Health Care Act, and upgrading national infrastructure to reduce logistics and energy costs.

The organization also cited the need to  modernize agriculture and aquaculture to strengthen food security and rural incomes. At the same time, strengthening domestic manufacturing and export capacity – through measures such as CREATE MORE – to be matched by rigorous enforcement of anti-smuggling and anti-dumping laws to protect legitimate local industries.

Such reforms, they argue, are vital to generating quality jobs, narrowing the trade deficit, and building long-term economic resilience.