PH gears up for surge in investments

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By  JOCELYN MONTEMAYOR and IRMA ISIP

The government is gearing up for the entry of billions of dollars worth of foreign direct investments (FDIs).

Starting off with the issuance on February 23 of Executive Order (EO) No. 18 which creates green lanes that would facilitate strategic  projects, the government is poised to address labor-skills mismatch, high energy costs and demand for industrial sites like economic zones.

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In an interview over RTVM’s Bagong Pilipinas on Saturday,  Secretary Bienvenido Lagusesma of  the Department of Labor and Employment (DOLE) said the agency is leading government efforts in ensuring  the Filipino workforce is well-educated and highly-skilled to meet the locally available jobs as well demands of foreign investors.

Laguesma said industry-led, and demand-and market-driven upskilling programs initially identified would include  job fairs and improvement of  labor information systems, especially in the regions.

The Presidential Communication Office (PCO) said job opportunities will be available with the entry of  $4.349 billion (P239 billion) worth projects.

PCO said data from the Department of Trade and Industry (DTI) and the Office of the Presidential Assistant on Investment and Economic Affairs, said included in the investments $29.712 billion (P1.7 trillion) that are in the form of Memoranda of Understanding and Letters of Intent  while $28.863 billion (P1.5 trillion) are in the planning stages.

PCO said the government  is also focused on ensuring the availability of  affordable and stable energy supply that could sustain manufacturing industries.

In the same interview, Undersecretary Felix William Fuentebella of the Department of Energy (DOE), said the agency part of the government’s initiative to lower electricity prices is diversification of energy sources.

The DOE targets to have 35 percent of the country’s supply coming from renewable energy sources by 2030, and 50 percent by 2040.

Fuentebella said  the shift to renewable energy is timely because of the very high fuel prices that add burden to power generating plants, adding the potential for offshore wind power  is so ideal and can sustain the country’s future energy demand.

Trade Secretary Alfredo Pascual, in the same episode, said the administration has been regularly following-up on the investment pledges secured during the foreign trips of the President.

Marcos has gone on 10 foreign trips to nine countries since becoming president in June last year.

“The marching order of the President is to sustain the following up of the pledged from those that made the promise to investment in the country,” Pascual said.

He said the government is also working on easing procedures such as for the application of permits and licenses to make it easier for investors to do business in the country “because such delays turn off investors, so we need it fixed.”

Green lanes

The DTI’s premier investment arm, the Board of Investments (BOI) is expected  to  establish within the next six months the One Stop Action Center-Strategic Investments (OSAC-SI) to serve as a single point of entry for all projects that qualifiy as strategic investments.

This is in line with the issuance EO 18 which creates green lanes that would facilitate strategic  projects. The OSAC-SI which will help address investor concerns and issues. It will also facilitate the endorsement of strategic investments to concerned government agencies so they can assist them in processing the licenses and documentary requirements they need.

The BOI is tasked to produce and regularly update a manual or guidebook for investors, which shall contain the list of government requirements for the establishment of strategic investments per sector.

Dedicated ecozones

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Another IPA, the Philippine Economic Zone Authority (PEZA) is pushing for the creation of smart eco-townships and eco-industrial parks that are inclusive, resilient and sustainable.

In his message on PEZA’s 28th anniversary,  PEZA officer-in-charge Tereso Panga credits the 420 ecozones – which host 4,346 locator companies and employ 1.8 million – for their contribution to the country’s total annual exports of goods and services which stands at 80 percent.

Panga sees a resurgence in its ecozone program following   its inclusion in the Philippine Development Plan 2023- 2028.

“We remain committed in performing our mandate to expand the ecozone program,” said Panga, adding one of the strategies is to set up dedicated technology parks to host specific industries.

He cited as an example the creation of  pharma park will help strengthen the  pharmaceutical ecosystem under Health and Life Science cluster.

He said  multinational companies continue to seek ways to manufacture medicines faster and cheaply.

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