To address investor confidence and retain existing investors, government shall give priority to key concerns, namely: labor, telecommunications, transport (aviation and domestic shipping), energy, peace and order, and disaster risk-reduction programs. Government shall address the facts and the reality behind the country's lagging competitiveness indices, particularly those pertaining to: (1) international investments, (2) basic infrastructure, (3) scientific infrastructure, (4) education (5) business legislation, (6) energy, (7) exports, (8) ethics, (9) labor, and (10) barriers to entry and exit.

As the world recovers from the global economic crisis, competition for opportunities is bound to tighten. The Philippines is among nations vying for a strategic place in the global market. Considerable challenges confront the country's efforts to compete for tourists, capital, entrepreneurship, and links to global supply chains.

In the medium term, the following policy reforms shall be pursued:

•  Amendments to Executive Order (E.O.) No. 226 or the Omnibus Investment Code of 1987- to strengthen the investment promotion and industrial development functions of the Board of Investment (BOI).

•  Enactment of an Anti-Trust/ Competition Law - to level the business playing field by strengthening the legal and institutional framework to combat unfair trade practices, prohibit cartels and monopolies and sanction key officials of companies that violate fair competition.

•  Amendments to the Export Development Act - to incorporate significant changes in the global trading environment as well as establish lasting solutions to recurring export development issues, with emphasis on sanctions, enforcement, and the privatization of export promotion functions.

•  Reforms in the Aviation Sector- full implementation of E.O. No. 219 providing for an open and competitive international aviation sector that allows local and foreign air carriers to expand their operations, maintain a strong aviation industry, and ensure international connectivity.

•  Land Use Plan - to provide a sound basis for the local tourism development, including the designation of tourism enterprise zones by the Tourism Infrastructure and Enterprise Zone Authority (TIEZA).

•  Amendments to the Tariff and Customs Code of the Philippines- to support fair trade and oppose all unfair trade policies and practices, especially on smuggling and to be compliant to the international standards on customs procedures under the Revised Kyoto Convention to which the Philippines acceded.

•  Amendments to the Local Government Code- to provide an environment conducive to business.

•  Amendments to the Labor Code-to address labor-related issues, and harmonize and strengthen labor force and management and ensure that country's labor policies is aligned with international treaties and ratified International Labor Organization Convention.

•  Reforms in public research and development (R&D) prioritization and funding system and full implementation of the Technology Transfer Act of 2009 (R.A. 10055)-to ensure social return on public R&D investments. Measures to be considered include a systematic national research inventory; a clearinghouse for new major research investments; and a systematic effort to translate outputs of completed research into actionable policy measures or into potential product developments or innovations.

•  Reform of the R&D tax incentive under R.A. 8424- to encourage innovative and collaborative behavior among private firms.

•  Amendments to the Intellectual Property Code- to serve the needs of the copyright-based industries as well as strengthen the enforcement capability of the Intellectual Property Office.

•  Passage of the Data Privacy and Anti-Cybercrime Bills- to ensure the security, integrity, and dependability of the country's information and communications structure.

•  Amendments to the Standardization Law- to strengthen the national standards body.

•  Amendments to the "Barangay Micro Business Enterprises (BMBEs) Act- to support the growth and development of microenterprises.

•  Amending and transferring the function and mandate of the Philippine Council on ASEAN and APEC Cooperation to the Philippine Council on Regional Cooperation.

Government shall formulate a comprehensive national industrial strategy that spells out opportunities, coordinates and promotes the growth of forward and backward linkages in priority areas and high-potential growth sectors as well as prepares other industries to attract investments and generate jobs. This plan entails a regular review of national investment incentives to examine their thrust, adequacy, and consistency with local regulations especially those pertaining to priority sectors i.e., mining, tourism, agribusiness and BPO-IT. The government shall include programs to implement disaster-mitigating measures, sustain socio-political stability, and create necessary conditions to ensure safe and peaceful business environment for investors.

Furthermore, government shall support policies and legislation that shall:

a.  promote a working balance between the interests of labor and capital as well as provide avenues for dialogue and cooperation based on mutual benefit;

b.  pursue anti-corruption, anti-red tape, anti-smuggling and integrity initiatives;

c.  provide a fertile landscape for Philippine domestic and foreign investments (i.e. power regulation, cabotage principle, etc.). The problem of high cost energy must be addressed by achieving a price range comparable to energy costs among ASEAN peers (i.e., Indonesia, Vietnam and Malaysia); and

d.  mainstream Disaster Risk reduction (DRR) and Climate Change Adaptation (CCA) in industry and services sectors by:

•  Establishing compliance mechanisms for business sector on DRR standards.

•  Strengthening implementation of or reform existing laws on land-use and related laws such as building code for disaster-resilient industry and service sectors.

•  Assessing the level of DRR awareness and activities among the private sector and disseminate information, education and campaign (IEC) materials on DRR to ensure their support, participation and cooperation

The following programs will also be pursued to support DRR and CCA:

•  Develop and operate innovative financing schemes to secure sustainable financing for programs on climate change. This can take the form of payment for ecosystem services including collection of fees for water consumption by industries and fees from tour organizers, lodging and other tourist facilities for ecotourism.

•  Design and implement DRR and CCA measures for mining companies. Areas suitable for mineral resources development shall be defined based on scientific information on climate change risks and vulnerability of ecosystems and communities.

•  Develop synergy between small-scale, medium and large-scale mining operations taking climate change and prudent mineral resources development into consideration.