By ONLINE BALITA NEWS
Finance Secretary Ralph G. Recto has invited Australian investors to be part of the Philippines’ ‘blockbuster’ growth story, emphasizing that the country has rolled out the red carpet and reserved the best seat for them during the Philippine Business Forum in Melbourne, Australia.
“This is an exciting opportunity that Australian investors should certainly not miss out on,” he told around 100 Australian business and investment leaders and government officials during his speech on March 4, 2024 at the Ritz Carlton in Melbourne, Australia.
Secretary Recto laid out that the Department of Finance (DOF) has a comprehensive plan to drive investments-led growth through its Growth-Enhancing Actions and Resolutions (GEARs), which works in tandem with the government’s fiscal consolidation plan––the Medium-Term Fiscal Framework (MTFF).
“A key aspect of this strategy is welcoming investors with open arms to achieve investments-led growth through improvements in the regulatory regime, reduction in the cost of doing business, and addressing constraints,” he said.
The Finance chief emphasized that President Ferdinand Marcos Jr.’s swift enactment of the Public-Private Partnership (PPP) Code of the Philippines is a resounding testament to the government’s commitment to fostering stronger collaboration with the private sector.
Signed into law on December 5, 2023, the PPP Code offers a stable, predictable, and competitive environment where high-quality PPP investments can thrive.
It leverages over three decades of experience with the Build-Operate-Transfer (BOT) Law and integrates best practices to streamline processes, reduce transaction costs, and enhance the ease of doing business for PPPs.
Recto urged Australian investors to invest in the country’s flagship infrastructure projects primed and ready for PPP investments under the President’s Build Better More program.
The program features 185 big-ticket infrastructure projects worth PHP 9.14 trillion (about USD 163 billion) ranging from power, physical connectivity, rural development, water resources, digitalization, sustainable initiatives, and healthcare.
The Finance secretary said the government’s swift approval of the solicited PPP proposal to rehabilitate the Ninoy Aquino International Airport (NAIA), which was the fastest approved PPP project in history evaluated in an unprecedented six weeks, is a testament to how quickly and efficiently the Philippine government acts on investments.
Apart from the Build Better More program, Recto likewise pitched that investors have the option to invest in other big-ticket projects through the Maharlika Investment Fund (MIF)––the Philippines’ first sovereign wealth fund.
Moreover, the Philippines also warmly welcomes expanded investment opportunities, particularly in telecommunications, transportation, banking, mining, and energy sectors, following the recent implementation of its liberalization laws and other pro-business policies.
The amendments to the Retail Trade Liberalization Act (RTLA) lowered the minimum paid-up capital requirement for foreign corporations from about USD 2.5 million to around USD 500,000 as well as streamlined the qualification requirements for foreign retailers.
Meanwhile, 100% foreign ownership of public services is now possible through the amendments to the Public Service Act (PSA).
The amendments to the Foreign Investments Act (FIA), on the other hand, improved the Philippines’ openness to foreign direct investments (FDIs) and liberalized the practice of professions.
The country is also now open to full foreign ownership of renewable energy projects through the amendments in the implementing rules and regulations of the Renewable Energy Act of 2008.
The government is also refining the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) Act to further tailor fit incentives to investor interests and encourage investment in strategically important sectors.
With the Philippines’ very young and well-educated population (median age of 25) which stands in contrast to Australia’s aging population (median age of 41), Secretary Recto also broached a proposal for the two countries to become demographic partners.
Aside from the business-friendly policies, Secretary Recto showcased the Philippines’ promising growth story, which makes it the most strategic choice for investments and partnerships in the ASEAN region.
The Philippine economy grew the fastest in the ASEAN region in 2023, expanding by 5.6%.
OnlineBalita news 