MANILA, Philippines — The Philippine Economic Zone Authority (PEZA) is encouraging American companies to invest in the country’s economic zones amid ongoing initiatives to improve the business environment.
In a statement, the investment promotion agency (IPA) said PEZA acting group manager Rowena Naguit highlighted the promising investment prospects in ecozones to American firms and the compelling reasons to do business in the country during the recent 2024 US-Philippines trade mission.
Naguit discussed the expected improvements in the business climate following the ratification of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) bill.
CREATE MORE seeks to clarify ambiguities in the implementation of the CREATE Act, which introduced changes in the grant of incentives to investors.
Special Assistant to the President for Investment and Economic Affairs Frederick Go earlier said CREATE MORE is expected to improve the ease of doing business, reduce cost of doing business and make the country more competitive in attracting investments.
One of the proposed changes under CREATE MORE is to authorize IPAs like PEZA to approve investments within a P15-billion threshold without the need to go to the Fiscal Incentives Review Board (FIRB) to speed up the approval process.
Under the CREATE Act, IPAs can only approve investments worth up to P1 billion.
While the FIRB back in February issued a resolution increasing the investment capital threshold of projects seeking incentives to be approved by IPAs up to P15 billion, Go said “that is temporary and can always be taken back by the FIRB.”
By including it in the CREATE MORE, the new threshold for IPA approvals will become permanent once the bill is approved into law.
CREATE MORE just needs the signature of President Marcos to become a law.
Naguit said enhanced policies would lead to a more attractive environment for foreign investment and pave the way for closer economic ties between the Philippines and the US, as well as other international partners.
The 2024 US-Philippines trade mission was spearheaded by Filipino American Chamber of Commerce of Greater Houston chairman Loloy Reyes and president Noemi Frias.
During the trade mission, Houston City council member Edward Pollard emphasized the importance of strengthening US-Philippine ties and exploring diverse economic opportunities.
The conference for the trade mission was attended by 37 delegates from the US and the Philippines that are engaged in the energy, health, import or export, aerospace, manufacturing and technology sectors.
PEZA currently hosts 320 locator companies with American equity, generating about P125 billion in investments. These locator companies also generate exports worth over $4 billion and directly employ around 330,000 Filipinos.