The British Chamber of Commerce of the Philippines (BCCP) urged the government to immediately pass the proposed Public Services Act (PSA), Foreign Investment Act and the Retail Trade Liberalization Act to attract more foreign direct investments (FDIs).
“Foreign direct investment (FDI) has many benefits including, of course, economic development, modernization, technological spillovers, income growth, employment which is very important and of course, creating a more competitive atmosphere,” said BCCP Executive Director Chris Nelson during the recent 6th Joint Economic Briefing.
“Here in the Philippines, we strongly support the government’s endorsement of the three bills which they have marked as urgent, and those are of course the Public Services Act, the Foreign Investment Act, and the Retail Trade Liberalization Act,” he added.
“We appreciate they’ve been marked as urgent, and we hope to see the passage of those in 2021, and as early as possible. And I think that would create a very good signal for the Philippines, in terms of its competition and expanding,” he added.
Nelson said more FDIs will enter the country once those bills are enacted.
Data from the Bangko Sentral ng Pilipinas (BSP) showed that net inflows of FDIs went up by 139.5 percent to $808 million from $337 million a year ago.
Year-to-date, net inflows of FDIs increased by 45.1 percent to $2.37 billion.
The National Economic and Development Authority (NEDA) earlier called for the passage of the said bills.
“To maximize the benefits from the enactment of Create, we urge Congress to urgently pass the amendments to the Public Service Act, the Foreign Investment Act, and the Retail Trade Liberalization Act this year. These bills will complement Create by easing restrictions on foreign investments,” said NEDA Secretary Karl Chua.
The Corporate Recovery and Tax Incentives for Enterprises Act or Create, which was earlier signed into law, cuts the corporate income tax and rationalizes fiscal incentives currently being enjoyed by select firms.