Cost-cutting, tech upgrades deemed proper response to trade uncertainty – BusinessWorld Online
THE Philippine Chamber of Commerce and Industry (PCCI) said businesses need to focus on things within their control, like costs and technology adoption, in the face of global trade uncertainty arising from the new US tariffs.
“Attend to your respective businesses. (Focus on) what can be controlled, like costs (and) using technology. I think this is going to be the mindset of the private sector,” PCCI Secretary General Ruben J. Pascual said on the sidelines of a BusinessWorld Economic Forum on May 22.
Philippine companies remain upbeat, he said, as there will be “so many opportunities” in the coming months.
“But whether (US President Donald J.) Trump changes his mind about us, we should not even talk about it,” he said, adding that the upcoming impeachment trial of Vice-President Sara Duterte-Carpio is not worth worrying about.
Mr. Pascual said the removal of value-added tax (VAT) on electricity, as some have proposed, would be a relief.
“Less VAT is better for business, right? Because that’s a cost. That is a policy question. Government has to decide whether it views energy as (a source of competitive advantage) or a source of income,” he said.
He said businesses could manage their power costs by locating in export processing zones, “But the government has to make up its mind about energy.” — Aubrey Rose A. Inosante