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Philippines: New law a boon for foreign investments
MANILA, Philippines — Foreign investments are expected to further pick up following the signing into law of a measure that would make doing business easier by promoting efficient government services.
American Chamber of Commerce of the Philippines executive director Ebb Hinchliffe said the new law on ease of doing business would encourage and entice more foreign firms to invest and locate in the country.
“It is also very positive for companies already here as they expand,” Hinchliffe said.
“We hope that with this landmark legislation, more foreign companies will be encouraged to explore the many opportunities in the Philippines and more foreign investments will make their way into the Philippines to pave the way for economic opportunities for all,” European Chamber of Commerce of the Philippines president Guenter Taus said.
Foreign direct investment (FDI) inflows reached a record high $10.05 billion in 2017.
This year, FDI may reach a new record high of about $12 billion, according to the National Economic and Development Authority.
“We also hope that the enactment of this law will improve the ranking of the Philippines in the World Bank Doing Business report, and provide for a more business-friendly and competitive environment. This is a step in the right direction in making the Philippines more competitive, especially against its regional neighbors,” Taus said.
“Having the public sector respond to private sectors request for license and permits quicker can only be a good thing for business,” Hinchliffe noted.
President Duterte on Monday signed Republic Act 11032 or the Ease of Doing Business Act of 2018 in hopes of correcting bureaucratic red tape that continues to hound government institutions.
Under the EODB/Efficient Government Act, the Department of Trade and Industry explained that businesses can expect streamlined processes, reduced processing times from all government agencies, including government-owned and controlled corporations.
Government agencies shall be made to comply with the prescribed processing time: three working days for simple transactions, seven working days for complex transactions and 20 working days for highly technical transactions.
Local government units are mandated to set up Business One Stop Shop to facilitate business permits application.
The law also provides that barangay clearances and permits must be issued at the city or municipality to speed up transactions.
Apart from streamlining, the law also provides for the creation of a Central Business Portal that will receive and capture application data on business-related transactions, while Philippine Business Databank shall provide LGUs and national government agencies access to information to verify validity and existence of businesses.
“We realized that for the EODB reforms to be fully implemented and integrated, a whole-of-government approach was necessary. Thus in full support of the President’s vision, Congress enacted a law that will make doing business in the Philippines easier and more importantly, create a more efficient government,” Trade Secretary Ramon Lopez said.
The law will be implemented by the Anti-Red Tape Authority, an agency under the Office of the President that will monitor compliance of agencies, and implement and oversee national policy on anti-red tape and ease of doing business.
Source: https://www.philstar.com/business/2018/05/30/1819802/new-law-boon-foreign-investments#H7BQz8A73GjpyWvS.99