Connect with us

Hi, what are you looking for?

News

Electronics industry seeks review of perks, claims FDI weakening

THE electronics industry called for a review of the fiscal incentives system under Republic Act No. 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, noting that the next government needs to address the weaker-than-expected levels of foreign investment the law has generated.

 “On one hand, CREATE is wonderful. It reduced the corporate income tax. But I think, this is a wish for the new administration is to revisit the rationalization of incentives,” Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) President Danilo C. Lachica said during the second day of the 10th Arangkada Philippines Forum Tuesday.  

Mr. Lachica said the industry is concerned about investment growth, in which CREATE has not lived up to its billing.

“If you look at 2020 numbers, we’ve seen anywhere from 45%-60% growth in Philippine foreign direct investment (FDI). But we’re comparing the Philippines with investments from previous years. What I believe we should be looking at is investment in the Philippines vis-à-vis our ASEAN neighbors,” Mr. Lachica said.

“In 2020, the $2.2 billion that the Philippines got for FDI pales compared to (neighboring countries). Indonesia got 13 times more, Malaysia seven times more, Thailand 7.3 times more, and Vietnam 13.5 times more. We pride ourselves in being an investment destination. But I hope we can do a root cause analysis. We have problems in power and logistics, but our labor is very productive. We have assets,” he added.  

 “I hope the next administration can revisit that, especially the ability to attract investment on the same scale as our ASEAN neighbors. If ever, and this might be going out on a limb, I would like the next administration to revisit the ability of the Philippine Economic Zone Authority (PEZA) to attract and approve investment,” Mr. Lachica said.

Daniel Alexander, Australia – New Zealand Chamber of Commerce of the Philippines president, said in a separate virtual press conference for the 10th Arangkada forum that any change to PEZA should be pursued cautiously.  

“I think any change to PEZA or organizations like it should be really reviewed very carefully. Any change to PEZA or granting them additional power that would help them bring in investment can only be seen as a positive,” Mr. Alexander said.

Trade Secretary Ramon M. Lopez said in his keynote speech during the forum that the Philippines is a top exporter in nearly 200 types of product.

“The Philippines plays an important role in international trade with the country ranking among the top 10 exporters for 194 tariff lines. With our industry development-centric approach to building our export competitiveness, we are optimistic that the number of tariff lines where the Philippines is considered a global leader will increase in the next couple of years,” Mr. Lopez said. 

As our country navigates this fast-changing world amidst the pandemic, we are confident that the Philippines remains a premium investment destination (in the region),” he added.  — Revin Mikhael D. Ochave

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

News

REUTERS By Luisa Maria Jacinta C. Jocson, Reporter FACTORY ACTIVITY in the Philippines expanded for a tenth month in a row in November, although...

News

Passengers wait inside the Ninoy Aquino International Airport Terminal 3 in Pasay City, Oct. 29. The growth in remittances is expected to slow next...

News

Philippine flags are displayed along the streets, June 3. — PHILIPPINE STAR/ EDD GUMBAN By Revin Mikhael D. Ochave, Reporter THE JOINT Foreign Chambers...

News

Workers prepare relief packs in Pasig City, Aug. 13, 2021. — PHILIPPINE STAR/ MICHAEL VARCAS LOCAL GOVERNMENT units (LGUs) should be given more time...

News

IN separate advisories, the Securities and Exchange Commission (SEC) has warned the public not to invest in CashBaka, Hero Mining International Group, and BitBankUps.com...

News

SHIVENDU SHUKLA-UNSPLASH D.M. CONSUNJI, Inc.’s (DMCI) order book declined by 8.1% to P45.3 billion for the past three quarters from P49.3 billion in the...

You May Also Like

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.