Senate Bill No. 2282 under Committee Report No. 56
Otherwise known as the
Fair Competition Act of 2014

Senator Paolo Benigno Aquino IV
16th Congress, Senate of the Philippines
Sponsorship Speech, 30 July 2014

Mr. President, distinguished colleagues, good afternoon.

It is my honor and privilege to stand before you today to sponsor Senate Bill No. 2282 under Committee Report No. 56 otherwise known as the Fair Competition Act of 2014.

In a country where 99% of the economy and 66% of all jobs in the labor force are powered by micro, small, and medium enterprises, it is our duty to create an environment where local businesses of all types will thrive.

A fair competition policy will level the playing field for Filipino businesses and allow more Filipinos to exercise their entrepreneurial spirit. It will encourage competition, innovation, and the creation of better products and services.

It will drive production efficiencies and better supply chain management; and, ultimately, give the Filipino public a wider range of products and services to choose from while driving down prices.

A fair competition policy, in tandem with our recently enacted Go Negosyo Act, will open the gates for more Filipinos to make a living out of their own businesses, generate employment, strengthen more Filipinos' purchasing power, and help drive inclusive growth.

We also see that an effective fair competition policy would lead to economic development not only in our urban centers but also in our struggling agricultural and fisheries sectors, which are the sources of livelihood for millions of our countrymen in the rural areas.

And in light of an increasingly connected global economy and the integration of the ASEAN Economic Community in 2015, a fair competition policy will also promote standards of quality and excellence among our local businesses, promote a sustained increase in production, and advance domestic and international trade.

With fair competition, everyone--businesses and the consuming public alike--wins.

We, therefore, submit to this august chamber the Fair Competition Act of 2014, which will pave the way for the establishment of a Competition Commission that will:

• Promote and enhance economic efficiency and competition;

• Ensure that industrial concentration would not limit economic power to a few;

• And prohibit anti-competitive agreements and abuses of dominant position that distort, manipulate, or constrict the operations of markets in the Philippines.

The Organisation for Economic Co-operation and Development (OECD) Global Forum on International Investment, in a paper published as far back as 2008, entitled, "Competition Policy Enforcement: Experiences from Developing Countries and Implications for Investment", illustrated the effects of an effective competition regime as such:

• An effective competition policy will eliminate barriers to entry and exist of new business entities,

• While a strong competition law will curb anti-competitive practices.

• Both will lead to increased competition in the market, and, therefore, to greater investment.

For the Philippines, which still lags behind in the region in terms of foreign direct investments (FDI), more investments coming in will mean greater production in the market that will lead to lower prices and higher quality of goods and services for the Filipino consumers.

Unfortunately, Mr. President, distinguished colleagues, the Philippines still does not have a competition policy and law that will protect its consumers and private industries.

For our information, the US had its first competition policy with its US Sherman Act in 1890 . Australia followed suit with its Australian Industries Preservation Act in 1906 .

Then, after World War II, Japan passed its Original Antimonopoly Law in 1947 and the United Kingdom passed its Monopolies and Restrictive Practices (Inquiry and Control) Act in 1948 .

Moreover, in the ASEAN Economic Community Blueprint, each member country is called upon to introduce a competition policy by 2015.

Our neighbors have passed their competition laws already: Indonesia and Thailand in 1999, Singapore in 2004, Vitenam in 2005, and Malaysia in 2012.

It is imperative that we catch up if we seek to be a contender in an increasingly integrated and global economy.

Panahon na po talaga na maipasa natin ang napakahalagang panukalang ito. Ang pagkakaroon po ng Fair Competition Act ay para sa ikabubuti ng mga negosyo sa Pilipinas--maliit man o malaki--at para rin sa kapakanan ng mga mamimiling Pilipino.

Mr. President, noong ako po'y estudyante pa lamang noong 1990s, unang naibenta ang pampersonal na cellphone sa merkado. Naaalala ko pa, ang unang type ng cellphone noon ay medyo malaki, analog ang operating system, at may kamahalan pa. Hindi pa colored ang mga screen noon, at lalong hindi ka pa makakakuha ng litrato o video.

Pagkatapos ng ilang taon, pumasok sa merkado ang iba't ibang uri ng cellphone - at ang mga ito'y may iba't-ibang kulay at hugis, at may makabagong teknolohiyang nagbigay ng pagkakataong gamitin ang cellphone 'di lamang para pang-text at pantawag, kundi para na rin sa mga video calls, para sa gaming, para sa negosyo, pang-Internet sa eskuwelahan, at, siyempre, pati na rin para sa social media at sa pagkuha ng mga nauusong selfie.

Sa pagdami ng mga kumpanyang nagtitinda ng cellphone sa bansa, nagkaroon ng mas maraming mapagpipilian ang mga mamimili, tumaas ang kalidad ng mga cellphone, at nagkaroon ng mga murang produkto na mabibili ng mas nakararaming Pilipino.

Ngayon po, ang mga cellphone ay abot-kaya na pati para sa ating mga aling tindera, mamang drayber-- at maski mga estudyante sa mga pampublikong paaralan. Kahit sino ngayon--basta ba't magtipid ka lang at mag-ipon nang kaunti--ay kaya nang bumili ng cellphone pati 'yung mas advanced na smartphone.

Pati ang ilang mga lokal na kumpanya ay gumagawa na rin ng mga mahuhusay na smartphone na kayang makipagsabayan sa mga features ng mga imported brands.

Ang ganitong pag-usad ng merkado ang ating ninanais hindi lang sa larangan ng mga cellphones, kundi pati na rin sa ibang mga industriya, para mas maraming mga Pilipino ang makinabang sa mas magagandang mga produkto't serbisyo, mas murang mga bilihin, at--higit sa lahat--mas maraming mga trabaho dulot ng mas maraming mga investments at bagong kumpanya dito sa bansa.

Noong 1997, mahigit sa sampung libong piso ang isang Nokia 5110, na text at call lang ang puwedeng gawin sa analog nitong system, at ang puwedeng laruin lang ay snake.

Ngunit ngayon, ang sampung libong piso, makakabili na ng isang Nokia Lumia, na isang smartphone, na hindi text at call lang ang puwedeng gawin, kundi makapaglaro ng mas maraming games, makapag-Internet, makanood ng videos, makatugtog ng music at makapagselfie.

Noong 1997, iilan lang ang makabibili ng Nokia 5110 dahil sa kamahalan nito. Ngayon, sa halagang isang libo lang o mas mababa pa may mabibili ng cellphone na Cherry Mobile o MyPhone.

Ibig sabihin, dahil sa innovation at techonology dulot ng kumpetisyon, ang mga kumpanya ng cellphone ay nakalikha ng mga produkto para sa mas malaking merkado, para sa mas magandang serbisyo at para sa mas mababang presyo.

Mr. President, noong 1980s, napakamahal pong lumipad pauwi ng Davao para bisitahin ko ang aking mga kamag-anak noon sa aking ina. Marahil, kakaunti lang din ang available flights sa buong bansa kaya madalang ang aming pag-uwi.

Sa isang kapuluang bansa, mahalaga ang transportasyong panghimpapawid hindi lang para sa pagpapatibay ng relasyon ng magkakapamilya, kundi para rin sa mas mabilis na transportasyon ng mga produkto at serbisyo, at sa patuloy na pagpapa-unlad ng bansa.

Noong nagkaroon ng ibang players sa airline industry, dumami ang flights sa buong bansa. Naintroduce ang promo fares at nagbagsakan ang presyo ng airfare. Ngayon, mas marami na ang mapagpipiliang flights sa kung saanman sa bansa, sa mas mababang presyo. Dahil sa kumpetisyon, mas naging innovative at creative ang ating mga airline carriers. Napalawak ang merkado, napababa ang presyo, napataas ang kalidad ng serbisyo, para sa mga Pilipino.

Kung itataguyod po natin ang kapakanan ng mga negosyo--maliit man o malaki--sa pamamagitan ng Fair Competition Act, mabibigyan natin sila ng pagkakataong gamitin ang kanilang likas na pagiging malikhain at madiskarte sa paggawa ng mga bagong produkto, serbisyo, at inobasyon na papatok sa merkado.

Lahat tayo, panalo.

Mr. President, we believe that a Fair Competition Act is all at once pro-poor, pro-people, and pro-business. It safeguards the welfare of businesses, large and small, and protects honest, hard-working entrepreneurs against abuse of dominance and position, and other unfair practices that put both Filipino businesses and their consumers at risk.

The Fair Competition Act, moreover, promotes a culture of healthy competition that inspires ingenuity, creativity, and innovation in addressing market needs.

We recognize that we will definitely need more than just the Fair Competition Act to enable such a culture to take root, but we believe that this is the first necessary step.

Dalawang dekada na po nating tinatangkang maipasa ang panukalang ito. Ngayong patuloy na umaarangkada ang ekonomiya ng Pilipinas, lalagyan pa ba natin ng balakid ang tunay na pag-unlad dahil hindi natin maitaguyod ang kapakanan ng ating mga negosyo't mamamayan?

This puts us, our Philippine industries--especially our MSMEs and our people--at a grave disadvantage in light of the integration of the ASEAN Economic Community next year.

As the Philippines works to level up from four years of sustained economic growth, fiscal reforms and good governance, and heightened investor confidence, it is now time to work on strengthening our local industries, promoting a culture of competition and innovation, and boosting our potentials for serving the global market with outstanding products and services.

We have said repeatedly that our key challenge in this half of the Aquino administration is achieving inclusive growth and making true progress felt by each and every Filipino.

To reiterate, The Fair Competition Act, in conjunction with the recently enacted Go Negosyo Act, will give government the mandate and the tools that it needs to boost local productivity and global competitiveness.

Nabanggit din ng Pangulo ang pagkakaroon ng fair competition sa ating bansa. Ika nga niya sa kanyang State of the Nation noong isang araw,

I quote: "Pinapanday na natin ang sistema kung saan talagang patas ang laban; kung saan ang sumusunod sa patakaran ay nakakarating sa nais niyang paroonan; kung saan may tunay na kumpetisyong nagbubukal ng pagkakataon at malawakang kaunlaran; kung saan ang lahat ay may kakahayang panghawakan ang sariling kapalaran..." (end quote).

In light of next year's ASEAN Economic Community integration, in light of the entry of more global brands and businesses onto our shores, and in light of our thrust to make the country more globally competitive and make doing business "more fun in the Philippines", this representation deems it urgent that a Fair Competition Act be passed in order to give our people the support that they need to succeed.

Sa tulong ninyong lahat, mabibigyan natin ng pantay na pagkakataon ang mga negosyong Pilipino na lumago at makipagsabayan sa buong mundo.

Dahil po sa isang bansang umuunlad, nararapat na tayong lahat, walang maiiwan at sama-samang umaangat.

Maraming salamat po at magandang hapon.