To boost bilateral trade and align the nearly 50-year-old pact with the current economic landscape, the Philippines has opened talks with Singapore to update its 1977 double taxation agreement (DTA).

In a Sept. 25 statement, the Department of Finance (DOF) said its move supports efforts to attract more foreign direct investments (FDIs) by improving investor confidence, reducing transaction costs, and promoting trade and technology transfer.

“It’s high time we recalibrate the terms to reflect the realities of today’s rapidly shifting global economy,” Finance Secretary Ralph G. Recto said, adding that the DOF will ensure the deal will be fair and beneficial to both countries, boosting investments and employment in the country.

Recto said the review is timely given global tax changes, strong trade and investment ties, and the presence of over 200,000 Filipinos in Singapore.

According to the agency, the first round of talks on eliminating double taxation and preventing tax evasion and avoidance was completed in the first week of September.

During the talks, Singapore's Ambassador to the Philippines, Constance See, reaffirmed the strengthening of ties between the two nations, following the celebration of 55 years of diplomatic relations last year.

“Renegotiating the DTA will be very important to increase the flow of trade and investment and give a very positive signal to the business community that our governments share a commitment to enhancing the cross-border economic activity,” said See.

Singapore’s FDIs in the Philippines expanded 14 percent in the past five years, showing continued confidence of Singaporean businesses in the country’s growth prospects.