Japanese investors bullish on Philippine economy, says BOI

MANILA, Philippines — Japanese investors have expressed optimism for the Philippines’ economic outlook, driven by the Marcos administration’s efforts to promote liberalization and fair trade amid growing protectionist sentiment globally.

This was shared by Japanese investors during the 10th Consultative Group meeting for the Philippines-Japan Economic Partnership Agreement (PJEPA) Sub-Committee on Improvement of the Business Environment (SC-IBE) on Sept. 13, according to the Board of Investments (BOI).

“We saw the strong commitment of the Philippine government in attracting foreign investors,” Embassy of Japan in the Philippines (EOJ) Minister for Economic Affairs Nihei Daisuke said during the meeting.

Daisuke commended the Philippines for taking game-changing measures to liberalize the country’s economic policies such as the amendments to the Foreign Investment Act (FIA), Retail Trade Liberalization Act (RTLA), Public Service Act (PSA) as well as the Renewable Energy Act.

For his part, Japanese Chamber of Commerce and Industry of the Philippines, Inc. (JCCIPI) vice president Nobuo Fujii emphasized that they are looking to create more investments and employment opportunities in the Philippines.

On the local front, BOI Investment Assistance Centre (IAC) executive director Bobby Fondevilla pointed out that the meeting was an opportunity for them to adopt measures to simplify the application procedures to accelerate business in the country.

“We highlight the importance of furthering bilateral economic relations through the introduction of improvements through this consultative meeting. The commitments to be made after this meeting will improve two-way business to enable both sides to gain parity or more preferential commitments with each other’s FTA (free trade agreement) partners, this will ultimately translate to commercial gains for both parties,” Fondevilla said.

“In effect, these actions will result in considerable increase in job generation and a market economy that can compete with the international community,” he added.

During the meeting, the representatives from various government agencies addressed the issues and concerns raised by the Japanese investors on value-added tax (VAT) refund system, tax incentives for special economic zones under the CREATE Act, streamlining the application process for the transfer of assets in an ecozone; Green Lane structure and operation, easing regulatory restrictions for the Philippine Contractors Accreditation Board (PCAB), the Mactan-Cebu Airport Expansion Plan, and the Export controls for the mining sector.

On the Green Lane, the BOI told the Japanese investors that the One-Stop-Action-Center for Strategic Investments (OSAC-SI) is now accepting applications for green lanes.

Executive Order 18 signed earlier this year designated the BOI as the (OSAC-SI), which shall serve as the single point of entry for all projects that qualify as strategic investments.

It also mandates the establishment of green lanes across all government agencies to expedite and streamline the processes and requirements for the issuance of permits and licenses of strategic investments endorsed by the OSAC-SI.