'Ease of Doing Business Act of 2018' signed

DAVAO CITY, Philippines — President Duterte signed yesterday Republic Act 11032 or the Ease of Doing Business Act of 2018 in an effort to correct bureaucratic red tape that continues to hound government institutions.

“This addresses the failure of the Anti-Red Tape Act of (2007) to solve the perennial problem of bureaucratic red tape in our government institutions,” he said during the law’s ceremonial enactment at Malacañang yesterday.

The President said RA 11032 enhances business competitiveness and good governance and is long overdue.

He pointed out that this would simplify requirements and streamline procedures to “finally spare our people from the intolerable waiting time and long lines in frontline government agencies.”

One of the most important features of this law, he added, is the standardization of the processing time for government transactions.

“From now on, agencies are required to process simple transactions within three days and complex transactions in seven days and highly technical transactions in 20 days,” Duterte said.

The President said the law would also limit to a maximum of three the number of signatories required in applications for licenses, clearances, permits, certifications and authorizations. Electronic signatures will also be recognized and a zero-contact policy will be implemented to avoid improprieties.

Under RA 11032, local governments are also mandated to automate their business permit and licensing systems, set up the one-stop business facilitation services and use online unified business application forms.

Welcome development

Business groups Makati Business Club (MBC), Management Association of the Philippines (MAP) and the Philippine Chamber of Commerce and Industry (PCCI) welcomed yesterday’s signing of the landmark legislation that seeks to streamline doing business in the country.

They see the law as a welcome development not only to businesses but the entire country as well.

“This is a positive development. Some bureaucrats have ingenious ways in creating red tape that weigh down business and the general public. Simplifying processes and exacting accountability will greatly reduce red tape and opportunities for corruption. This will help unleash the full potential of the private sector in growing the economy,” said Eddie Yap, MAP national issues committee chairman.

PCCI chairman George Barcelon said the new law would put teeth into Duterte’s pronouncement of reducing bureaucracy and corruption.

MBC chairman Edgar Chua said that “in the past, it was handled by the National Competitiveness Council (NCC) which I think was formed by an EO. Now that it is a law, business expects this to have more teeth.”

NCC co-chairman Guillermo Luz said the law would set specific timeframes for government agencies to act on applications for licenses and permits and would “hopefully lead to the re-engineering of government processes and eventual introduction of more online services.”

The NCC and the inter-agency Doing Business Task Force are taking unified action in simplifying government processes to make them more business-friendly, given that competitiveness and ease of doing business are number three in the President’s socio-economic agenda.

In Bulacan, the provincial government has launched its “Invest Bulacan” campaign to attract more businesses.

Cieleto Avanceña, President Duterte’s common law wife, highlighted the importance of small- to medium-scale entrepreneurs as top producers of job opportunities, adding that the government’s campaign to eradicate corruption and criminality should assure businessmen of safety and security. – With Alexis Romero, Richmond Mercurio, Ramon Lazaro