NEWS

By Mayvelin U. Caraballo

Photo: Philippine Embassy in Singapore

Singaporean companies should consider investing in the Philippines, which remains resilient despite the economic impact of the coronavirus disease 2019 (Covid-19).

This is the main message of Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno, Finance Secretary Carlos Dominguez 3rd and Trade Secretary Ramon Lopez during Friday’s 2nd Philippines-Singapore Business and Investment Summit.

“The Philippines is a smart investment destination,” Diokno noted, as he cited sound macroeconomic fundamentals and a reform momentum that provide favorable medium-term growth prospects for the Philippines.

In particular, he said amid a sea of credit-rating downgrades and negative rating outlooks, the Philippines has retained its investment grade credit ratings, all of which are assigned a “stable” outlook.

“And, as far as the BSP is concerned, we continue to implement measures that enhance the Philippines’ competitiveness as an investment destination,” Diokno pointed out.

These measures, he added, include financial digitalization, legislative agenda, and monetary and financial sector reforms.

The central bank chief further said the reform momentum will help fuel the Philippines’ recovery, address structural issues, and continue to build up its competitiveness as a leading investment destination.

“You’re all welcome to do business with us and be part of our exciting post-Covid narrative,” he concluded.

For his part, Dominguez expressed hope that the Philippines’ strong fundamentals, fiscal stamina, pro-business environment, and effective governance will continue to make the country a promising investment destination for Singaporean investors.

“I urge the Singaporean business community to take a much closer look at the investment opportunities in the Philippines,” he said.

The Finance chief added the government is confident that the strong economic stimulus provided by its infrastructure program will keep creating new jobs and opening new investment opportunities.

“Private sector participation not only in our country’s Build, Build, Build program, but also in investments that would open up as a result of this infrastructure modernization which should be highly considered by our Singaporean investors,” he emphasized.

This year, the government is expecting the economy to recover by 6.5 to 7.5 percent by ramping up its expenditures, particularly in infrastructure. Under the P4.5 trillion national budget, P1.1 trillion was allotted for infrastructure.

Dominguez added the Corporate Recovery and Tax Incentives for Enterprises Act, which was signed into law on Friday, “will create an enhanced incentives package that is performance-based, time-bound, targeted, and transparent just like Singapore’s.”

He also said “conditions for partnerships and joint ventures with Singaporean investors will rapidly improve” with the passage proposed amendments to the Foreign Investments Act, the Public Service Act, and the Retail Trade Liberalization Act.

Meanwhile, Lopez said Singaporean companies can explore investment and/or business opportunity in the Philippines in the areas of manufacturing, startup and innovation, services, research and development, and infrastructure and public-private partnership projects.

On manufacturing, he added, Singaporean companies could explore diversification and/or expansion opportunities in high tech or smart manufacturing.

Lopez said Singapore, on the other hand, could help the Philippines in adopting the Fourth Industrial Revolution best practices and new technologies.

On services, he added, the country could be an offshore location to some Singaporean companies, like health information management services and/or telemedicine by banking on the country’s abundant supply of English-proficient and medical healthcare professionals.

On research and development (R&D), alternatively, the Philippines could also be an R&D center and/or a product design hub Singaporean companies as they expand their operations, the Trade chief stressed.

“Singapore and Philippines can also explore partnerships and opportunities in technology and innovation. For one, Philippines houses young, proficient and thriving ecosystem that needs funding to grow and expand,” he also underscored.

Lastly, Lopez said there are also opportunities in the telecommunications infrastructure to address the limited digital infrastructure and growing demand for high-speed and high-quality internet connectivity.

“There is obviously a wide scope of complementation and industry collaboration between the Philippines and Singapore. And we invite our potential and existing partners in Singapore to explore these business opportunities,” he emphasized.

Source: The Manila Times