NEDA says PHL should compare the number of vacations with those of its neighbors

By means of Beatriz Marie D. Cruz, Reporter

THE PHILIPPINES may have to benchmark their numbers holidays compared to other Southeast Asian countries because having “too many” holidays could discourage foreign investors, said Arsenio M. Balisacan, secretary of the National Economic and Development Authority (NEDA).

“We are a country that competes with other countries for investments. So obviously investors will look at productivity as a factor,” he said Business world in an interview on August 15.

“We have to benchmark our holidays against the norm… You can’t… deviate far from it because that will introduce disincentives for our investors.”

The Philippine Chamber of Commerce and Industry (PCCI) claimed that the country has “too many vacation days” with an average of 27 vacation days per year, saying this was not healthy for business and the economy.

The PCCI count includes special holidays declared by the Palace, but excludes other provincial and municipal holidays, as well as work stoppages due to emergencies.

By comparison, Malaysia has 21 public holidays, Indonesia 17, Singapore 11, Thailand 20 and Vietnam six.

“Look at the whole year and if you have many, many more vacation days than the alternative (countries) before, of course you will not attract (foreign investors),” Mr. Balisacan said.

Earlier this month, Senate President Francis Joseph G. Escudero said the Senate plans to limit passage of bills on local holidays to increase the country’s competitiveness. He got a response earlier Foffer the possibility to combine or reduce the number of holidays.

Mr. Balisacan also noted that not all workers will benefit from the so-called “vacation economy.”

“The poor will suffer more from too many holidays,” he said.

In 2022, President Ferdinand R. Marcos Jr. reintroduced the holiday economy policy, moving holidays closer to weekends to encourage travel and boost tourism as the economy opened up after the pandemic. This was first introduced during the Arroyo administration.

For example, this year’s commemoration of Ninoy Aquino Day was moved from August 21 (Wednesday) to August 23 (Friday) and declared a special non-work day.

The American Chamber of Commerce of the Philippines (AmCham Philippines) also supports the reduction of some “hero holidays,” citing additional costs and scheduling difficulties for businesses, AmCham Philippine Executive Director Ebb HinchliFFe said.

For the British Chamber of Commerce of the Philippines (BCCP), the number of vacations is just one of many factors hurting the Philippines’ attractiveness to foreign investors.

“It is a factor, but the key factor, I would say, is legislation, opening up the economy, opening up investment to foreign investors, and also how is the overall economy doing,” BCCP director and trustee Christopher told James Nelson. Business world via telephone.

Existing government laws already allow employees to work on holidays at the discretion of their employers, according to labor attorney and president of the Federation of Free Workers Jose Sonny G. Matula.

“Under current legislation, employers already have the flexibility to require employees to work on public holidays, provided they pay the necessary premium. There is no need to cut back on vacation days when mechanisms already exist to balance the needs of companies with the rights of workers,” he said in a Viber message.

The government must focus on more pressing ‘challenges that have meaningFhave a major impact on the productivity and well-being of our workforce and deserve immediate attention,” said Mr Matula.

For IBON Foundation Executive Director Jose Enrique A. Africa, business productivity is better measured by improving skills, effective management and overall technological capacity.

Mr Matula said the government must tackle the problems of low wages and heavy trafficffic, contract formation and job insecurity.