President Ferdinand R. Marcos Jr. highlighted the economic development and the ease of doing business in the Philippines, as a key reform he instituted as he invited foreign investors to put up or expand their businesses in the country.
During the World Economic Forum (WEF) in the Malacañan Palace on Tuesday, the President said now is the right time for foreign investors to invest in the Philippines with the country’s highest gross domestic product (GDP) growth rate, and the legislative measures put in place to streamline business transactions in the country.
“Our economic liberalization measures signal the dawn of a new era of investments here in the Philippines,” he pointed out.
He said all the measures he has put in place in the pipeline are “a mere glimpse into the world of opportunities lying in wait here in one of the fastest-growing economies in this part of the world.”
“Clearly, the Philippines is in a prime position to enter into a sustained period of robust economic expansion over the next couple of years,” President Marcos said.
“I extend an invitation to our guests and partners here today to join us in this exciting new phase. The members of economic team are here today ready to discuss those opportunities that I speak of in greater depth,” he added.
The WEF Country Roundtable on the Philippines is a joint effort of the country and the international body to facilitate frank exchanges with international business leaders and build partnerships to support the country’s vision of becoming a dynamic and resilient economy, driven by innovation, entrepreneurship and strategic collaborations on the global stage.
The event is the first high-level to be convened in the Asia-Pacific region since the end of pandemic. It was attended by members of the President’s economic team and WEF President Børge Brende and several international business leaders.
During the roundtable discussion, highlighting the Philippine economic transformation, programs and policies for seamless business transactions for foreign investors in the country, President Marcos said the Philippines capped the year 2023 off with the highest GDP growth in all ASEAN, including China, “meeting and exceeding expectations of major multilateral organizations such as the IMF, ASEAN+3 Macroeconomic Research Office, and the World Bank.”
He said the country’s stellar growth performance was largely driven by the resiliency of domestic demand, which is “an impressive feat against the backdrop of elevated prices and overlapping crises in the global market.”
President Marcos added that investments, particularly in durable equipment and public construction, emerged as a key driver in the full-year growth of the Philippine economy.
The Chief Executive also stated that the administration was prompted to quickly formulate a vigorous plan for boosting infrastructure development through a pre-selected list of 185 Infrastructure Flagship Projects worth more than PhP9 trillion, or around USD 163 billion.
The 185 Infrastructure Flagship Projects, which offer high rates of return and enjoy streamlined process, strategically target important sectors for sustainable development in the Philippines such as physical and digital connectivity, agriculture, energy, health and climate-resilient infrastructure.
The President also noted that more than 50 percent of the projects are currently ongoing, or approved for implementation while around a quarter are seen to be financed through the public-private partnerships (PPP) schemes.
“Since the early days of this administration, the economic team and I have consistently underscored the pivotal role of PPPs as a potent instrument for harnessing the combined strengths of the public and private sectors for inclusive and efficient nation-building,” President Marcos said.
And to ensure seamless transactions in the government, President Marcos said the administration has revised the implementing rules and regulations (IRR) of the Build-Operate-Transfer Law followed by the revisions of the PPP Code, which provides a stable and predictable policy environment for PPP projects.
He added his administration is actively focusing the policies on “galvanizing foreign investments to generate a broadly beneficial investment boom” in the Philippines.
“International firms are now welcome to invest in a wide range of high-impact sectors, from joint ventures with Filipinos, or even fully own domestic enterprises and select renewable energy projects,” he said.
“We aim to cover every front at every point of our investment journey,” he added.
President Marcos said foreign investors can now count on the government’s expedited processes and improved ease of doing business with the newly established Green Lanes for Strategic Investments, which directly addresses binding constraints to investments that have long impeded the flow of capital into the country.
He also stressed that the Philippine government has also reformed the country’s corporate income tax structure and fiscal incentives system to attract investments in strategically important industries including the Corporate Recovery and Tax Incentives for Enterprises (CREATE Act) and the creation of the Maharlika Investment Fund.
President Marcos also underscored the country’s active participation in fortifying trade and economic ties with its neighboring countries through the Indo-Pacific Economic Framework for Prosperity, the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA), and the Regional Comprehensive Economic Partnership (RCEP) Agreement.
The Philippines hosted the 23rd WEF on East Asia, in which the discussions centered on the glowing promise and potential of the Philippines as the strongest-performing Southeast Asian economy while this year’s event follows the theme, “Forging a Sustainable Future for the Philippines.”
This year’s agenda include a plenary session that will discuss the priorities of creating a favorable investment climate in the Philippines and the two thematic sessions such as the “Energy and Sustainability and Digital Transformation.” |PND
