Eyeing to continue Making it Happen in the Philippines, the Department of Trade and Industry (DTI) presented the Philippines as one of the ideal investment destinations of the world during the Country Business Briefing at the Expo 2020 Dubai in the United Arab Emirates (UAE) on Friday, 11 February 2022.

Aimed at promoting trade and investment opportunities, the Board of Investments (BOI), together with the Philippine Trade and Investment Center (PTIC) Dubai, organized the said Business Briefing on the Philippine National Day.

DTI Secretary Ramon Lopez presenting during the Country Business Briefing at the Expo 2020 Dubai in the United Arab Emirates

In his keynote message, Department of Trade and Industry (DTI) Secretary and BOI Chairman Ramon M. Lopez told the participants reasons why the Philippines remains as a premium investment destination among its neighboring countries, and one of which is a “game changer” passage of the Public Service Act (PSA). Once President Rodrigo Duterte signs the bill into law, the Secretary said, “Foreign equity restrictions will be relaxed, attracting more global players that will modernize key sectors such as telecommunications, shipping, air carriers, railway, and subways.”

With the PSA, the Trade Secretary added, “Increased competition in the Philippine market is expected in terms of services and products which will generate better quality of and competitive pricing to the benefit of the consumers.”

Aside from the PSA, other recently signed measures will bolster the country’s business climate – the amendments to the Retail Trade Liberalization Act (RTLA) and the Foreign Investment Act (FIA), which are both expected to establish reforms and remove barriers for foreign entry.

Also, to make the investment climate in the Philippines more attractive, the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, issued last year, rationalizes, modernizes, and offers more relevant incentives to investors.

Significantly, the trade chief expressed his optimism on the strengthening of the business and trade relationship between the Philippines and the UAE, as he bared that the Investment Promotion and Protection between the two countries has been finalized.  Further, Philippines and UAE have signed the agreement to commence the negotiation on a comprehensive economic partnership agreement (CEPA).

Against the backdrop of the prevailing pandemic, the Philippine GDP posted a growth of 7.7% in the fourth quarter of 2021, with full year GDP growth rate of 5.6%, exceeding the government target of 5-5.5% growth, which is among the highest GDP growth rates in ASEAN and the East Asian region, Sec. Lopez reported.

“While the pandemic remains to be very challenging, we are already seeing signs of recovery, with some indicators even already exceeding pre-pandemic 2019 levels,” said the Trade Secretary.

On the investment part, foreign investors continued to stand by the Philippines and invest in mid- to long-term strategic projects amid the global health crisis. The country’s Central Bank reported a 96% year-on-year uptick in Foreign Direct Investment (FDI) net inflows, amounting to USD 1.1 billion, into the country in November 2021, bringing the year-to-date November 2021 FDI growth rate to a strong 52%.

Meanwhile, the trade chief highlighted key sectors in the Philippines such as electronics, hyperscalers, automotive, copper, nickel, aerospace, agri-business, among others.

Targeted to invite potential investors in the Middle East and other international markets to do business in the Philippines, the briefing featured high level presentation on opportunities in key priority and within complementary sectors with the UAE, such as agriculture, infrastructure, and energy sectors. After the country briefing program, notably, Memorandum of Understanding and Letters of Intent of the Middle East / UAE investors, such as in retail of medical equipment, dairy production, theme park development and renewable energy projects were signed and witnessed by Philippine government officials.

During the event, Ambassador to the UAE Hjayceelyn Quintana delivered the opening remarks while H.E. Hassan Al Hashemi, the Vice President of International Relations Dubai Chamber of Commerce and Industry, gave the closing speech.

In the program, Philippine government officials also discussed core topics about labor regulations and talent availability to support business operations in the country, specifically in the aforesaid sectors. The panel was composed of Agriculture Secretary William Dar, Public Works and Highways Secretary Roger Mercado, Labor Secretary Silvestre Bello III, Communications Secretary Martin Andanar, Energy Senior Undersecretary Jesus Cristino Posadas, and Mr. Ramon Monzon, President and CEO of the Philippine Stocks Exchange, Inc.  Also joining the forum were Congressman Christopher De Venecia and Congresswoman Julliene Baronda.

Before 2021 came to an end, the Philippines participated in the Association of Southeast Asian Nations (ASEAN) Global Business Forum (GBF), which was held at the Dubai Exhibition Center from 08 to 09 December. It aimed to open and encourage dialogue between leaders from Dubai and the ASEAN region in business, government, and finance, nurturing links and identifying opportunities to embolden bilateral trade relations.  Trade Secretary Lopez, Agriculture Secretary William Dar and Science and Technology Secretary Fortunato dela Peña attended the business forum.  The said event gathered other high-level policymakers, CEO-level of key local companies, government agencies, and Investment Promotion Agencies (IPAs) with particular project offerings for promotion to UAE and Middle East investors.

Last year, the Philippine Dubai Expo 2020 Organizing Committee also arranged a virtual business forum on 15 December, followed by a business-to-business matching activity. ♦

Date of Release: 14 February 2022