Philippines seeking investors under ‘new normal’

MANILA, Philippines — Philippine officials sent a message to foreign investors that the Philippine economy is in good position to rebound under the “new normal” amid the coronavirus disease 2019 (COVID-19) pandemic.

The Department of Trade and Industry (DTI), in collaboration with the Philippine Trade and Investment Centers (PTICs) in Washington, New York, Los Angeles, San Francisco, Ottawa and Mexico, recently organized a webinar for the Americas with the theme “Philippine Business Environment: Post-COVID-19.”

The webinar highlighted the improved ease of doing business environment in the Philippines for foreign and domestic investments being forged with a new set of incentives. Combined with new priority and strategic projects, the webinar aimed to drive home the message that the Philippine economy is in a position to rebound under the new normal.

Philippine Ambassador to Washington Jose Manuel Romualdez cited the practicality of anticipating innovation in the new economy in the US, such as the work-from-home scheme, contactless interaction and curbside retail.

He lauded the Philippine government’s decision to suspend the termination of the Visiting Forces Agreement (VFA) with the US as it strengthens confidence in the Philippines and affirms the long-standing alliance between the two countries.

Trade Secretary Ramon Lopez highlighted in his presentation the Philippines’ strong macroeconomic fundamentals before the COVID-19 crisis and how the country closed 2019 with a six percent growth rate and historic low levels of unemployment, underemployment and inflation.

The Philippines also saw the largest approvals of investments by the Board of Investments at $22.8 billion, the highest in the board’s 52-year history.

Amidst the pandemic, the Philippines passed legislation on reforms beginning with Republic Act 11469 or the Bayanihan to Heal as One Act.

Other reforms are in the pipeline such as the Corporate Recovery and Tax Incentives for Enterprises (CREATE), which will slash corporate income tax in the Philippines from 30 percent to 25 percent, as well as amendments to the Foreign Investment Negative List (FINL), which will allow greater foreign equity in the retail trade and public service industries.

The most recent FINL contained in Executive Order 65 and signed into law by President Duterte in October 2018 allowed 100 percent foreign equity participation for internet businesses, teaching in higher education, training centers not part of formal education, wellness centers, insurance adjustment companies, lending companies and investment houses.

Beyond COVID, the Philippines will continue to boast of a competitive salary scheme, greater industrial peace, unrivaled access to key markets, unrestricted exports of critical products, competitive advantages in manufacturing and creative industries and a promising digital economy.

For Lopez, the most important competitive advantage of the Philippines is its people.

The Philippines has a rich talent pool and a work force that is educated, loyal, English-speaking, results oriented and fast-learning.

“With these advantages, we believe we can easily bounce back once everything is settled and a vaccine is discovered,” Lopez said.

Opening remarks were also given by Philippine Ambassador to Canada Petronila Garcia and Philippine Ambassador to Mexico Demetrio Tuason.

Also present as observers were Philippine Ambassador to Argentina Linglingay Lacanlale, Philippine Ambassador to Brazil Marichu Mauro and Philippine Ambassador to Chile Ma. Teresita Daza.

Representing the Philippine Consulate General in Los Angeles were Economic Officer Consul Rea Oreta, Information Officer Mary Grace Leaño and PTIC-Los Angeles Trade Commissioner Eric Elnar.