Why invest in the Philippines? by Sec. Mar Roxas II
Why invest in the Philippines? by Sec. Mar Roxas II
The very recent one is the congressional approval of the Retail Trade Act allowing foreign investors to do retailing activities in the country.
Expanding Infrastructure - Though major concern lies on the inadequacy of infrastructure such as roads, railroads, airports, seaports and other utilities, programs/projects are underway to rapidly expand transportation, communications and other support facilities. The implementation of the Build-Operate-Transfer (BOT) scheme that attracts private development capital was very successful, especially in the area of power generation.
Business-Ready Regional Investment Sites - Under its policy of industrialization or regionalization, the government has been establishing Regional Growth Centers, Economic Zones and Industrial Zones equipped with full infrastructure support by way of road networks, power, telecommunications and other utilities that effectively direct job-creating projects to the countryside.
Competitive Investment Incentives- The government has lined up incentive packages for investors covering fiscal and non-fiscal incentives. Foreign investors, as a general rule, can own up to 100 percent of the equity except in areas included in the Negative List. Major investment incentives consist of a combination of tax breaks and customs duty exemptions depending on what government entity one applies with (i.e., Board of Investments, Philippine Economic Zone Authority, Clark Special Economic Zone and the Subic Bay Freeport Zone). Government is also planning to unify investment incentives in the future.
Sectoral opportunities
Electronics - On the manufacture of "high value added" products (i.e., Wafer Fabrication, Flip chip technology).
Regional Service Centers (RSCs) - A new area of job growth with lots of potential. The RSCs centralize back-office administrative functions from Asian locations or act as service bureaus to assist in meeting customer needs. The Centers generally employ skilled professionals from finance, treasury and accounting fields. Data flows utilizing specialized software through leased lines and the Internet.
Information Technology Services - This is a relatively new area of investments utilizing the abundant supply of Filipino software engineers and programmers. Activities are focused on application system/software development, IT-enables services, Support and Knowledge-based activities and Business Outsourcing.
Parts and Components - This is basically in the automotive, machines and equipment, infrastructure sector. The Philippines has also become one of the major world exporters of wire harness.
Banking - Under existing law, foreign banks are eligible to purchase up to 60 percent of the capital stock of an existing local bank.
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