MAP, DTI sign MOU to promote Philippines as investment site

MANILA, Philippines — The Management Association of the Philippines (MAP) has partnered with the Department of Trade and Industry (DTI) to intensify efforts to promote the Philippines as an ideal investment destination.

During the induction of the group’s 2023 board of governors Tuesday, MAP president Benedicta “Dick” Du-Baladad signed a memorandum of understanding (MOU) with Trade Undersecretary and Board of Investments managing head Ceferino Rodolfo for the implementation of an investment promotion campaign.

Under the MOU, MAP and DTI will work together in the conduct of investment missions and briefings, including the DTI-MAP investment briefing to be held within the first quarter.

MAP will also assist the DTI in addressing investment queries on doing business in the Philippines.

Baladad told reporters MAP wants to help in attracting investments to the country following legislative reforms in the previous administration that are intended to entice investors to the country.

“We know they (government) are pushing investments. Last administration, they already passed the (amendments to the) PSA (Public Service Act). They passed the Foreign Investment Act. They have reformed the tax system so, it is now competitive compared to other tax systems in the region. And therefore, investments should now be flowing in,” she said.

The amended PSA allows full foreign ownership in telecommunications, domestic shipping, railways, subways, airlines, airports, expressways and tollways.

Previously, foreign ownership in these sectors was limited to 40 percent.

The amended FIA, meanwhile, allows foreign firms to invest up to 100 percent in a domestic enterprise, unless participation is prohibited or limited by existing laws.

Under the Corporate Recovery and Tax Incentives for Enterprises Act, the corporate income tax rate was reduced, and changes were made to the grant of incentives.

While the MAP has yet to come up with a list of legislative reforms to push for this year, Baladad said the group wants Tax Reform Package 3 covering property valuation and assessment, as well as Tax Reform Package 4 on passive income and financial intermediary taxation to be approved into law.

She said other reforms to be pushed by the group would be those addressing the concerns of businesses.

A quick survey conducted by MAP in November last year identified 10 issues affecting businesses with ease of doing business topping the list.

Other top issues cited are the economy, energy, climate change, competitiveness of local industries, education, agriculture, infrastructure, ESG (environmental, social and governance), and dealing with local government units.