PH Poised to Bounce Back Under “New Normal” Economy 

(Photos courtesy of PTIC)

LOS ANGELES 17 June 2020  – The Department of Trade and Industry (DTI), in collaboration with the Philippine Trade and Investment Centers (PTICs) in Washington, D.C. New York, Los Angeles, San Francisco, Ottawa, and Mexico, organized a webinar for the Americas with the theme “Philippine Business Environment: Post-COVID-19” on 08 June 2020.

The webinar highlighted the improved ease of doing business environment in the Philippines for foreign and domestic investments that is being forged with a new set of incentives.  Combined with new priority and strategic projects, the webinar aimed to drive home the message that the Philippine Economy is in a well position to rebound under the “new normal”.

In his opening remarks, Philippine Ambassador to the United States of America Jose Manuel G. Romualdez brought to the fore the practicality of anticipating the homestays of the new economy in the United States, such as the work-from-home scheme, contact-less interaction, and curbside retail.  The Ambassador lauded the Philippine Government’s decision to suspend the termination of the Visiting Forces Agreement (VFA) with the United States as it strengthens confidence in the Philippines and affirms the long-standing alliance between the two countries.

DTI Secretary Ramon M. Lopez highlighted in his presentation the Philippines’ strong macroeconomic fundamentals pre-COVID-19 and how the country closed 2019 with a six percent  growth rate with historic low levels of unemployment, underemployment, and inflation. The Philippines also saw the largest approvals of investments by the Board of Investments at US$22.8 billion, the highest in the Board’s 52 years of history.

Amidst the pandemic, the Philippines passed legislation on reforms beginning with Republic Act 11469 or the Bayanihan to Heal as One Act. Other reforms are in the pipeline such as the Corporate Recovery and Tax Incentives for Enterprises (CREATE), which will slash corporate income tax in the Philippines from 30 percent to 25 percent, as well as amendments to the Foreign Investment Negative List (FINL), which will allow greater foreign equity in the retail trade and public service industries.

The most recent FINL contained in Executive Order 65 and signed into law by Philippine President Rodrigo Roa Duterte in October 2018, already allowed 100 percent foreign equity participation for internet businesses, teaching in higher education, training centers that are not part of formal education, wellness centers, and insurance adjustment companies, lending companies, and investment houses.

Beyond COVID-19, the Philippines will continue to boast of a competitive salary scheme, greater industrial peace, unrivaled access to key markets, unrestricted exports of critical products, competitive advantages in manufacturing, and creative industries and a promising digital economy.

For Secretary Lopez, the most important competitive advantage of the Philippines is its people. The Philippines has a rich talent pool and a work force that is educated, loyal, English-speaking, results-oriented, and fast-learner. With these advantages, “We believe we can easily bounce back once everything is settled and a vaccine is discovered,” according to Secretary Lopez.

Opening remarks were also given by Philippine Ambassador to Canada Petronila Garcia and Philippine Ambassador to Mexico Demetrio Tuason.

Also present as observers were Philippine Ambassador to Argentina Linglingay F. Lacanlale, Philippine Ambassador to Brazil Marichu B. Mauro, and Philippine Ambassador to Chile Ma. Teresita C. Daza.

Representing the Philippine Consulate General in Los Angeles were Economic Officer Consul Rea G. Oreta, Information Officer Mary Grace “Joss” D. Leaño and PTIC-Los Angeles Trade Commissioner Eric Elnar. END

For more information, visit https://www.philippineconsulatela.org or https://www.facebook.com/PHLinLA/.