Japan is in favor of the less restrictive investment regulations in the Philippines, but they are cautious about the overall business environment.
The BoI stated that Japanese investors are drawn to the current liberalization program in the Philippines, but have raised concerns about challenges in conducting business easily.
The BoI announced on Thursday that 15 investors from Japan showed confidence in the growth of key industries in the Philippines, as well as the economic outlook and trade policies discussed at the 10th Consultative Group meeting for the Philippines-Japan Economic Partnership Agreement.
The Embassy of Japan in the Philippines stated that Minister Daisuke Nihei, who oversees economic affairs, referenced the revisions to the Foreign Investment Act, Retail Trade Liberalization Act, Public Service Act, and Renewable Energy Act as key economic developments in the Philippines.
According to the BoI, Mr. Nihei acknowledged the Philippine government’s strong efforts to attract foreign investors.
The Japanese investors expressed worries about the business conditions in the Philippines, specifically regarding the system for refunding value-added tax, the tax incentives provided by the Corporate Recovery and Tax Incentives for Enterprises Act, and the process for transferring assets within an economic zone.
The investors expressed worries about limitations on certifying contractors and export regulations for the mining sector.
In a different declaration, Tereso O. Panga, the Director General of Philippine Economic Zone Authority (PEZA), expressed optimism in luring in additional investors from China.
Mr. Panga stated that our strong economic performance and ambitious investment approach make us optimistic about attracting additional investments from China. We believe that our ecozones offer the most favorable business environment for our investors.
The Philippine Ambassador to China, Jaime A. FlorCruz, reported that numerous Chinese investors have shown interest in establishing their businesses in the Philippines.
“In the last six months since assuming the role of Ambassador, I have interacted with numerous Chinese executives who are actively seeking investment opportunities in various industries within the Philippines. As a result, many are now prepared to invest in the country,” stated Mr. FlorCruz.
As of May, there are 164 Chinese companies and projects registered with PEZA, which have brought in P25.82 billion in investments. These businesses have also created 16,221 direct jobs as of March. – Justine Irish D. Tabile