The Management Association of the Philippines (MAP) has spearheaded a high-profile investment campaign series that gathered top officials of regulatory government agencies, big industry players and experts to showcase the country’s immense potential as a top-notch investment destination.
The forum, in partnership with the Department of Trade and Industry (DTI) and the Board of Investments (BoI), focused on “Mapping the Investment Ecosystem”. It zeroed in on three priority sectors of the economy, namely Renewable Energy, Electronics, and Creative Industry.
During the event, DTI Sec. Alfredo ‘Fred’ E. Pascual highlighted the pro-business policies, highly skilled workforce, and burgeoning sectors of IT-BPM, manufacturing, and tourism that make the Philippines an ideal trade and commerce hub.
With a projected GDP growth rate of 6% in 2023 and 6.2% in 2024 for the country, the Asian Development Bank (ADB) is optimistic about the country’s economic outlook owing to ongoing efforts to accelerate infrastructure development and implement structural reforms.
Kelly Bird, ADB Country Director of the Philippines Country Office in the Southeast Asia Department, underscored the vital weight of infrastructure development in stimulating foreign investments.
Bird also put emphasis on improving connectivity, reducing logistics costs, and enhancing the overall ease of doing business to create a sustainable businesses environment.
LIBERALIZATION LAWS
During the forum, the Board of Investments (BOI) revealed that total approved investments in Q1 2023 more than doubled at PHP463 billion compared to PHP182 billion in the same period last year. More than PHP165 billion came from foreign investment.
BOI Managing Head Undersecretary Ceferino ‘Perry’ Rodolfo said the first quarter results demonstrate remarkable progress towards achieving the BO’s investment approval target of PHP1.5 trillion for the remainder of the year, with an impressive 30.87 percent of the target already secured.
Rodolfo noted that the high-growth sectors contributed to the significant surge in investments, such as renewable energy, manufacturing, administrative services, transportation and storage, and agriculture.
“We rigorously implement the Ease of Doing Business Act, which aims to streamline the current systems and procedures of government services,” Rodolfo said. He added that the newly signed EO on Green Lane for Strategic Investments will expedite the process and requirements for the issuance of permits and licenses.
Meanwhile, Atty. Dick Du-Baladad, President of MAP, hailed the passage of foreign investment liberalization laws—including the Public Service Act, the Retail Trade Law, and the Foreign Investment Act – saying the country can leverage foreign investors’ entry by empowering MSMEs.
“At the same time, this offers an opportunity to scale-up domestic economic activity by linking our MSMEs comprising 99% of business enterprises, for the supply of goods, services or manpower to these big foreign investors to create a ripple effect that drives growth in the domestic market,” said Du-Baladad.
CREATIVE INDUSTRY
The Department of Trade and Industry recognizes the critical role of the creative sector in driving economic performance in the Philippines.
During a panel discussion moderated by Dr. Karen Remo, CEO & Founder of the New Perspective Media Group, Chairman of Philippine Property & Investment Summit and Expo and MAP Vice Chair for Communications, various speakers highlighted the immense potential of the creative industries in spurring economic growth.
Among the speakers were Juan Miguel del Rosario, President of Animation Council of the Philippines, Inc. (ACPI) and President of Morph Animation / Toon City; Jo-Dann N. Darong, Director III of Competitiveness Bureau of Competitiveness and Innovation Group, DTI; Christopher “Toff” V.P. de Venecia, Representative of the 4th District of Pangasinan and Author of Philippine Creative Industries Development Act (RA 11904); and Allan Tan, Director of Philippine Software Industry Association (PSIA) and Managing Director of Monstarlab Philippines.
De Venecia, the principal author of Republic Act 11904 or the Philippine Creative Industries Development Act, has stated that the new law aims to help the creative industry sector grow and to make the Philippines the leading creative economy in Asia.
Last year, the value of the Philippines’ creative economy rose by 12 percent, reaching P1.60 trillion and contributing 7.3 percent to the country’s GDP.
However, Manila has been ranked as the fifth “least ideal” place for creatives, based on recent data published by Adventrum and Business Name Generator. Manila received an average score of 3.2, significantly lower than other cities like Tokyo, London, Paris, Chicago, and Toronto.
According to Darong, there are various constraints in the growth of the creative sector, such as lack of statistics, limited access to capital, skills mismatch, and limited access to new technology.
To address these issues, he said DTI has launched the Malikhaing Pinoy Program last March 2023, which includes initiatives to establish a Creative Industries Satellite Account, Creative Venture Fund, and ENSAYO Creative Hub to assist in the development of the creative economy.
RENEWABLES
As a nascent industry, the renewable energy sector presents a compelling opportunity for foreign investors looking to capitalize on the immense potential and favorable investment climate, according to industry experts.
Asec. Mylene C. Capongcol of the Department of Energy, the country has awarded 1,002 renewable energy contracts with a capacity of 5,571 MW and a potential of 80,399 MW, as of December 2022.
Capongcol said the Philippines also approved 19 Pre-Determined Areas (PDAs) to be offered under the Open and Competitive Selection Process (OCSP4), [which] is designed to ensure that the selection of RE projects is fair, transparent, and competitive
