Finance Secretary Carlos Dominguez III is luring American investors to pour in investments in the Philippines, citing the Duterte administration’s slew of economic liberalization measures.
“Now is the best time to do business in the Philippines,” Dominguez said in his remarks at a virtual economic briefing organized by the Philippine Embassy in Washington DC late Thursday.
“This year, we are well on our way to returning to normal with the Philippine economy expected to expand further between 7 and 9%,” he said.
“Our economy is recovering rapidly. In the last quarter of 2021, our GDP (gross domestic product) grew by 7.7%, making the country’s expansion the highest in the ASEAN (Association of Southeast Asian Nations) region and among our credit rating peers globally,” the Finance chief added.
Dominguez noted that the recent enactment of the amendatory bill to the Retail Trade Liberalization Act (RTLA), along with the Congress-approved amendments to the Public Service Act (PSA) and Foreign Investments Act (FIA) awaiting to be signed into law by President Rodrigo Duterte, complete the set of economic reform initiatives that make the Philippines a premier investment destination in the region.
“These three forward-looking measures widen the horizon for investments. They create numerous opportunities for synergy between local and international firms. There is now enough space for international firms to form joint ventures with Filipino companies, especially those at the cutting edge of information technologies,” Dominguez told about 200 American business leaders and policymakers gathered via teleconferencing during the briefing.
With the Philippines also committing to reduce its greenhouse gas emissions by 75% by 2030, the Finance chief said he also expects a sharp rise in green investments in the country in the years ahead.
He urged American investors to establish or expand their retail trade operations in the Philippines, now that the new RTLA has already lowered the minimum paid-up capital requirement for foreign corporations from $2.5 million to about $500,000.
Foreign retailers who want to open more than one physical store can now expand through a lower minimum investment of $200,000 per store, compared to the previous requirement of $830,000 per store.
The law also simplified the qualification requirements of foreign retailers by removing the required net worth, the number of retailing branches, and retailing track record conditions.
Dominguez said that experienced and strategic investors from the United States (US) can bring in their capital to the Philippines to invest in the fields of telecommunications, media and private transportation vehicles once the PSA is enacted.
Under the amended PSA, public services will be open to 100% foreign ownership, while retaining public utilities as majority owned by Filipinos, subject to the 60-40 ownership rule under the Constitution.
The list of public utilities will be limited to distribution and transmission of electricity; water pipeline distribution system, wastewater, and sewerage pipeline systems; petroleum and petroleum products pipeline transmission systems; seaports; and public utility vehicles (PUVs).
US-based businessmen can also look forward to the amendments to the FIA as this mandates a review of the Foreign Investment Negative List every two years, and liberalizes the practice of certain professions, so that enterprises that would otherwise be unable to do business in the Philippines without foreign talent would now be able to set up shop in the country, according to the Finance chief.
“I invite you to look closely at the Philippine economy in the light of the pro-business policies instituted over the last five and a half years. The Philippines is a growth leader in the region and a reliable host for international partnerships,” Dominguez said.
COVID-19 cases are also subsiding rapidly owing to the Philippines’ accelerated vaccination program, allowing more people to return to work and the unemployment rate to go down, he said.
“Clearly, these bullish signs of recovery are a product of our hard work and preparation before the pandemic hit us,” Dominguez said. —KBK, GMA News