Makati city: An official of Ayala Corp. on Wednesday emphasized the necessity of a unified position from the private sector to assist the government in formulating policies that would benefit all sectors. Citing his experience in government service, Ayala Corp. Managing Director Karl Chua, a former director general of the National Economic and Development Authority (NEDA) and undersecretary of the Department of Finance, pointed out that while private sector groups have offered numerous policy suggestions, many have not materialized as they were often tailored to benefit the specific sectors those groups represented.
According to Philippines News Agency, Chua articulated the need for business groups to consolidate, resolve their differences internally, balance trade-offs, and approach the government with a singular recommendation. This approach, he suggested, would prevent divergent agendas and promote a more cohesive policy-making process. He remarked on the critical juncture currently faced, emphasizing the importance of not misusing this opportunity.
Chua further highlighted that enhancing productivity by developing human capital is crucial for the economy, a responsibility not solely resting on the government but requiring active participation from the private sector. This sentiment was echoed by Gonzalo Varela, World Bank Group lead economist for Philippines, Malaysia, and Brunei, who also participated in the event. Varela noted the low labor force participation in the Philippines, particularly among women, despite their higher educational attainment compared to men.
Varela argued that the underutilization of educated females constitutes a misallocation of talent and stressed the importance of creating equal opportunities for women in the labor market to foster faster economic growth, particularly in East Asia and the Philippines. He underscored the need for policies that support human capital development and the creation of opportunities by encouraging technological advancements within existing firms without reducing their workforce.
He also highlighted the importance of market contestability and simple business regulations to facilitate the entry of new firms. Varela concluded by emphasizing the challenge of ensuring a virtuous cycle of opportunity creation and capability, urging the leveraging of rapidly advancing technologies to achieve this goal.
