Investment promotion agencies (IPAs) have identified the coronavirus pandemic, high costs of doing business and foreign equity restrictions in the Philippines, among others, as the main barriers to foreign investments in the country, according to a statement released by the Department of Finance (DOF) yesterday.
In addition to the three main barriers to investment, some IPAs also stated in their recent presentations to the Fiscal Incentives Review Board (FIRB) the lack of basic utilities and quality internet connectivity as a hindrance to investments.
Carlos Dominguez, DOF secretary and FIRB chairperson, said the top issues raised by the IPAs affirm the direction of government efforts to promote job-generating investments in the country.
“To address the restrictions to foreign equity, the Duterte administration has strongly supported the amendments to the Public Service Act, Retail Trade Liberalization Act, and Foreign Investment Act, which will responsibly open up our economy to more foreign investments that will benefit our people in the form of more quality jobs, products, and services. This, by the way, will also help investors and Filipino families have access to faster and more reliable internet connection. That is why it is critical that we liberalize the telco industry,” he said.
All three economic liberalization bills are in advanced stages of the legislative process.
Dominguez said the government will continue to rapidly implement the coronavirus disease 2019 (COVID-19) vaccination program.
“The vaccination of our people against COVID-19 will allow us to remove the pandemic as a determinant of how the Philippine economy performs and allow more businesses to confidently invest in the country,” he said.
Dominguez also said efforts to simplify government processes to achieve the ease of doing business will continue.
Meanwhile, the sustained implementation of the Build, Build, Build program will help improve access to basic utilities, according to the finance chief.
The Corporate Recovery and Tax Incentives for Enterprises Law enacted earlier this year mandated the FIRB to oversee the IPAs with regard to the grant of fiscal incentives. – Angela Celis
