VALUE-ADDING INVESTMENTS. Department of Trade and Industry Undersecretary Kim Bernardo-Lokin speaks during an interview with Bagong Pilipinas Ngayon on Tuesday (Jan. 9, 2024). Lokin bared the DTI's plan in attracting foreign investments into the country. (Screenshot from PTV 4 Facebook page)
MANILA – The Department of Trade and Industry (DTI), the agency responsible for generating jobs in the country, has vowed to continue attracting investments that produce higher-quality and higher-paying jobs.
DTI Undersecretary Kim Bernardo-Lokin said in an interview at the Bagong Pilipinas briefing Tuesday the investment promotion agencies (IPAs) are strengthening their investment strategies while improving the ease of doing business in the country to lure more foreign investors to establish and expand their businesses in the Philippines.
Lokin added that the IPAs aim to attract foreign investments with higher value in terms of services and jobs.
“It would need placing ourselves more aggressively to become the next manufacturing hubs in certain industries and look at more investments for digitalization,” she said.
She noted that the over PHP4-trillion foreign investments that the country attracted in 2023 will be generating 224,000 jobs over the coming months and years.
These new jobs will help the country sustain its low unemployment rate, which the Philippine Statistics Authority (PSA) reported to be at 3.6 percent in November 2023—the lowest since 2005.
Lokin said as of Dec. 14, 2023, nine projects amounting to USD398.14 million were already in the Stage 6 category of investments, which means they have registered with the IPAs and are operating.
Foreign investments that were categorized in Stage 5 of investment amounted to USD790.58 million. These projects have already registered with the IPAs and operations will begin soon.
Those investments that are in different stages are expected to start their operations in the country this year or in the next three to five years.
Of the 224,000 jobs from the over PHP4 trillion foreign investments that the Marcos administration attracted last year, 91,957 jobs (41 percent) are in the information technology and business process management (ITBPM) and related sectors; 71,899 jobs (32 percent) in manufacturing, particularly cement, integrated steel mill, electronics and semiconductor, automotive, processing, and wire harness, among others; infrastructure, transport, and logistics with 23,452 jobs (10.5 percent); 21,020 jobs (9 percent) in the energy sector—both renewable and traditional energy projects; and agriculture, with 5,760 jobs (2.6 percent) in dairy and agro-processing, among others.
Ease of paying taxes
Meanwhile, the Philippine Chamber of Commerce and Industry (PCCI) lauded the signing of Republic Act (RA) 11976, or the Ease of Paying Taxes, hoping that this would help the country attract foreign investments.
“We need to harmonize and streamline our processes for us to attract investors into the country. Otherwise, we will remain low in the ease of doing business,” PCCI president Enunina Mangio said in a statement Tuesday.
Aside from luring foreign investors, the country’s biggest business group is optimistic that the new law will encourage businesses to pay their taxes on time and raise the government’s revenue collection that should be invested in critical sectors and government programs.
“The passage of RA 11976 is certainly a welcome development to the business community. I hope this law, coupled with proper implementation and monitoring, will significantly ease the paying of taxes in the country,” Mangio added. (PNA)
