FIRB identifies 3 barriers to foreign investments
By Chino S. Leyco
The prolonged pandemic, high costs of doing business, and foreign equity restrictions in the Philippines are the main barriers to foreign investments in the country, the Fiscal Incentives Review Board (FIRB) said on Wednesday, Jan. 26.
Citing reports from investment promotion agencies (IPAs), FIRC Secretariat Head and Finance Assistant Secretary Juvy Danofrata revealed that these barriers were the primary issues raised by the IPAs in their recent meetings.
In addition to the three main barriers, some IPAs also stated the lack of basic utilities and quality internet connectivity as a hindrance to investments, Danofrata said.
According to Finance Secretary and FIRB Chairperson Carlos Dominguez III, the top issues raised by the IPAs affirmed 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,” Dominguez said in a statement.
Dominguez explained that these amendments will open up the economy to more foreign investments that will benefit the 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,” Dominguez said.
The Retail Trade Liberalization has already been passed while the two critical economic liberalization bills are in advanced stages of the legislative process.
He added that the government will continue to rapidly implement the 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,” according to Dominguez.
He also said that 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 Dominguez.
As instructed by the FIRB chairperson, the IPAs presented to the FIRB their investment promotion efforts, strategies, and leads and barriers to investments.
The Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law enacted earlier this year mandated the FIRB to oversee the IPAs with regard to the grant of fiscal incentives to big ticket investments.