By CHINO S. LEYCO
The Department of Finance (DOF) wants to abandon the “one-size-fits-all” incentives approach as part of the country’s efforts to reenergize the economy and create more jobs under a post-quarantine environment.
In a statement, Finance Secretary Carlos G. Dominguez III said the government will adapt a more proactive and targeted investment promotion strategy to entice foreign investors to relocated in the Philippines.
Dominguez said they will offer a set of tax and non-tax incentives tailor-fit to foreign investors needs, noting this demand-driven approach will identify the types of industries that the economy needs to flourish. The incentives can be granted based on the specific requirements of the industry players that it wants to set up shop in the country, the finance chief said.
These industries include those that are labor-intensive and thus create stable, decent-paying jobs; provide excellent technology transfers that improve the skills of the country’s workforce; and have stable markets.
“What we should be doing is identifying these industries and then going to each of the companies – each of the leading companies in those industries around the world – and asking them: what do you need for you to come to the Philippines?” Dominguez said. “Instead of waiting for them to apply, we should be going to them and offering them a package,” he added.
Dominguez noted, for instance, that companies manufacturing microchips have a different set of needs from businesses that grow flowers for export, hence the need to tailor-fit incentives for specific industries.