For progress

With the Philippines working to become an upper middle-income economy in the coming years, it is undeniable that the private sector plays a vital role in pursuing growth initiatives and driving innovation at the national level.

The private sector generates 93 percent of the Philippines’ gross domestic product and employs over 92 percent of the country’s workforce. More than serving as a vehicle for job creation, it must be emphasized that the performance of the private sector is a major economic lifeline, one that can sustain or break the growth momentum.

But despite its significance in the economy, the private sector is often undervalued when it comes to policy-making. The sector’s insights are extremely valuable considering its diverse representation– ranging from multinational corporations to small businesses.

Just recently, the Management Association of the Philippines (MAP), the Makati Business Club (MBC) and the Private Electric Power Operators Association (PEPOA) voiced their support for the renewal of the franchise of Meralco – which serves the country’s major economic and political hubs.

The MAP and MBC are influential business groups in the Philippines, while the PEPOA is an association of privately-owned distribution utilities that service various parts of the country.

According to the MAP, Meralco’s franchise should be renewed because beyond providing reliable electricity, the company also empowers consumers to make sustainable choices.

“Meralco’s impact goes beyond its service area. It actively supports fellow utilities, particularly electric cooperatives, in times of natural disasters. This commitment to mutual aid strengthens the overall resilience of the Philippine power grid. Furthermore, Meralco demonstrates its dedication to national well-being through active collaboration with the government. From initiatives like the Build, Build, Build Program to Public-Private Partnerships (PPP), Meralco plays a vital role in driving the nation’s progress,” the group, which is currently headed by former Energy secretary Rene Almendras, said.

The MAP also called on lawmakers to “favorably consider Meralco’s positive impact and approve its franchise renewal, thereby ensuring stability in the power sector and ultimately serving the best interests of the Filipino people and the Philippine economy.”

For its part, the MBC highlighted the pivotal role Meralco plays in “ensuring reliable and accessible electricity for households and businesses in the country’s key economic regions.” It further noted the need for lawmakers “to prioritize reliable energy provision to sustain economic growth and attract investments” given the significant role Meralco plays in serving crucial industries and households.

The PEPOA , meanwhile , highlighted Meralco’s track record of providing reliable electricity “that served as the backbone of businesses and enhanced the quality of life for millions of Filipinos.”

“Its dedication to operational excellence and resilience demonstrates its firm resolve to reduce system losses and the duration and frequency of power interruptions, which greatly benefitted electricity end-users,” PEPOA president Ranulfo Ocampo said in a letter addressed to Parañaque  2nd District Rep. Gus Tambunting, who chairs the House committee on legislative franchises.

As a pillar of the economy, the views of the private sector should be considered in various government undertakings, particularly policymaking , since their insights and suggestions are based on and inspired by actual industry experiences.

In the case of Meralco’s franchise renewal, the MAP, MBC and PEPOA offer policymakers feedback and perspectives from private industry stakeholders who will also be directly impacted by the policies that the government will implement. The support of these private groups reflects where the private sector stands when it comes to the quality of service provided by Meralco and the positive impact of the company’s service on the economy.

The private sector provides a different perspective—one that often highlights economic impact and implications. This is important in navigating complex landscapes that impact not only the economy but social conditions as well.

By soliciting inputs from private sector groups, policymakers can have a more nuanced view of issues. Ultimately, it must be emphasized that those who will be directly impacted should have a voice in policy-making.