by Louella Desiderio | The Philippine Star | December 14, 2020 12:00am
MANILA, Philippines — The British Chamber of Commerce Philippines (BCCP) is pushing for the further easing of travel restrictions, as well as the immediate passage of the amendments to the Retail Trade Liberalization Act, to attract more foreign investments to help revive the economy.
BCCP executive director Chris Nelson said that while the group recognizes the need for restrictions to be in place for safety given the pandemic, it wants to see the restrictions to continue to be relaxed to allow potential investors to enter the Philippines.
“Obviously, we will observe the safety protocols but within that, if there can be further movement particularly on the 9g which is the regular working visa, and also for people that are looking to invest in the country, we think it will be a very good signal,” he said.
The Inter-Agency Task Force for the Management of Emerging Infectious Diseases issued a resolution in October allowing the entry of foreigners with investor visas issued under Executive Order 226 or the Omnibus Investments Code.
Following a request from business groups to clarify which investors can enter the country, the Bureau of Immigration said last month, holders of the Special Investor’s Resident Visa (SIRV) issued under EO 226 would also be allowed.
Visas under EO 226 are issued to foreign personnel employed as executives of regional or area headquarters of multinational companies, as well as to their spouse and unmarried children below 21 years old.
The SIRV program, which is intended to attract foreign investments to the country, requires investors to pour in capital in economic activities.
Apart from further easing of travel restrictions, Nelson said the BCCP also wants the government to pass the amendments to the Retail Trade Liberalization Act as this would help bring in foreign investments.
Last September, the Senate Committee on Trade, Commerce and Entrepreneurship approved the bill which seeks to amend the Retail Trade Liberalization Act by reducing the minimum paid-up capital for foreign retail investors to $300,000 from $2.5 million.
The House of Representatives’ version, which aims to lower the minimum paid-up capital to $200,000 and remove the $830,000 per store investment requirement for foreign retail investors, was passed on third and final reading earlier.
If the bill is approved into law, Nelson said it would send a message to foreign investors the country is open for investments.
He said passage of the amendments to the Foreign Investments Act, as well as the proposed Corporate Recovery and Tax Incentives for Enterprises (CREATE), would also encourage foreign investments into the country.
Amendments to the Foreign Investments Act will bring down the capital requirements for foreign investors, while the CREATE bill, if approved into law, will cut the corporate income tax rate and rationalize incentives given to investors.
“We want to get more foreign direct investments and we look at the Philippines as a gateway to Southeast Asia, not solely for the Philippine market,” Nelson said.
He said the BCCP is committed to continue to present the Philippines as an attractive location for investments, as well as to encourage businesses and companies to come to the country to support economic recovery.
“That’s our primary goal because if the Philippine economy picks up, it’s a benefit to our members,” he said.
