Lack of transparency deters foreign investments - report

MANILA, Philippines - The lack of transparency in government regulations and laws are big deterrents for foreign investment in the country, a US government report indicated.

In the 2011 National Trade Estimate Report on Foreign Barrier by the US Trade Representative (USTR), it stated that a lack of transparency in regulations and laws hinders foreign investment in the Philippines.

For example, businesses report that their efforts to comply with taxation laws and regulations are frustrated by the lack of clarity and accessibility of tax information.

The seven-page report on the Philippines likewise said the business community has also expressed concern about weak enforcement of anti-smuggling laws and regulations as an obstacle to investment.

The USTR report stated that significant restrictions apply to foreign investment in the Philippines. The February 2010 updated Foreign Investment Negative List enumerates foreign investment restrictions in

two parts – restrictions mandated by the Constitution or specific laws (List A) and restrictions mandated for reasons of national security, defense, public health, safety, and morals (List B).

Collectively, the list outlines sectors in which foreign investment is prohibited like in mass media, practice of professions, small-scale mining or limited.