MANILA - Instead of making business easier, federalism may make it even more difficult for investors to set up shop and operate, the head of a European business group said Wednesday.
Guenter Taus, president of the European Chamber of Commerce in the Philippines, said they welcomed the passage of the Ease of Doing Business Act in May, but are concerned that federalism may counter it.
"If you split it up into 18 different regions, it will be even a lot more difficult to govern and implement laws that are conducive to conducting business," Taus said in an interview with ANC's Market Edge.
"Can we really implement it the way it's designed to be implemented? Because then you have 18 different entities that you have to deal with. They might have their own rules and regulations," he said.
Taus said the the current system of government was "workable" and that it was just a matter of ensuring that the bureaucracy becomes more efficient.
Several business groups have also expressed worries that federalism was being rushed without properly weighing its economic implications.