US firms asked to invest in PH infra projects

Photo Courtesy of PCO
Photo Courtesy of PCO

Members of President Marcos’ economic team urged US investors to take part in the government’s massive infrastructure push as overall business outlook in the Philippines remains upbeat despite high inflation and external headwinds, according to a report by Manila Bulletin.

During the Philippine Economic Briefing in Washington D.C., heads of the Department of Finance (DOF), Department of Budget and Management, National Economic and Development Authority (NEDA) and Bangko Sentral ng Pilipinas (BSP) made their pitch before 180 representatives from US companies.

Finance Secretary Benjamin E. Diokno briefed investors on the Philippines’ growth agenda.

“Infrastructure spending is front and center of our growth strategy. We are committed to reverse the decades-long underinvestment in infrastructure: from 2001 to 2015, average infrastructure spending was only at two percent of GDP [gross domestic product],” Diokno told  American businessmen.

The government plans to sustain high infrastructure investment for the next six years through the public-private partnership mechanism, which aims to enhance energy, logistics, transportation, telecommunications, and water infrastructure in the country, he said.

“Now, the spectrum of industries that foreign investors can participate in has grown wider than ever before. The economic liberalization measures that the Philippine government has enacted in recent years have opened up key high-growth sectors to international participation,” Diokno said.

Recently, the government introduced amendments to the Retail Trade Liberalization Act, Foreign Investments Act, and the Public Service Act by relaxing foreign restrictions on investments in the country.

Companies engaged in solar, wind, hydro, and tidal energy are also welcome to invest in the Philippines’ renewable energy sector now that it has been opened to full foreign ownership.

The Philippines also offers a simpler and more effective fiscal incentives system that is perforrmanced-based, time-bound, targeted, and transparent through the Corporate Recovery and Tax Incentives for Enterprises law.

House Speaker Ferdinand Martin G. Romualdez also joined in urging foreign investors to invest in the Philippines and share the benefits of progress and development.

Romualdez then assured foreign investors and multilateral lenders, such as the World Bank, that the House of Representatives would continue to pass measures to sustain the country’s robust economic performance.

“We are committed to passing more measures that the Marcos administration may need to further enhance investment in the Philippines aimed at improving the lives of Filipinos,” Romualdez said.

He explained that the House is part of the Marcos administration’s whole-of-government approach to attract more foreign investments that would create more income and job opportunities for Filipinos.

“The United States is a major source of investments and funding assistance,” Romualdez said.

Meanwhile, BSP Governor Felipe M. Medalla briefed investors on the Philippines’ outlook for 2023 until 2024, where he reported that central bank expects inflation to decelerate by mid-2023 before returning within target range by the end of the year.

Budget Secretary Amenah F. Pangandaman also discussed the priority expenditures in support of the Philippine Development Plan (PDP) 2023-2028 for genuine economic and social transformation.

Socioeconomic Planning Secretary Arsenio M. Balisacan, for his part, updated American investors on infrastructure development and investment in the Philippines.

Through the Medium-Term Infrastructure Program, the government will sustain infrastructure spending at five percent to six percent of GDP annually with  $20 billion to $40 billion per year budget through 2028.

“This is an exciting time to do business in the Philippines. The US and the Philippines have long enjoyed strong partnerships in trade and investment, and I look forward to expanding this even further with you in the years to come,” Diokno said.

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