The Philippine Chamber of Commerce and Industry (PCCI) said the Fiscal Incentives Review Board (FIRB), which approves projects worth P1 billion and above, has become the bottleneck for incentives for investors.
In a statement, PCCI said hiking the investment capital threshold to P15 billion would result to quick approvals of projects by investment promotion agencies (IPAs).
Enunina Mangio, PCCI president, was reacting to FIRB Resolution No. 003-24 issued last week to promote ease of doing business in the country.
Mangio said the resolution would not only align certain processes in government but would also empower IPAs to perform as it gives the agency more authority and responsibility in generating investments and granting tax incentives.
“The PCCI welcomes this recent issuance of FIRB. This would mean more projects will have to be decided quickly at the IPA level without going through the approval of FIRB, which became the bottleneck for incentives,” Mangio said.
Mangio hopes such policy will encourage more local and foreign investors to infuse their resources and enter into big-ticket projects of the government through public-private partnerships (PPP).
The FIRB maintained that the revised threshold is aligned with the PPP Code of the Philippines, which states that PPP projects with a cost of P15 billion or higher shall be approved by the inter-agency National Economic and Development Board upon favorable recommendation of the Investment Coordination Committee.
“One of the bottlenecks we have in government is the ease of doing business. We need to streamline our processes and policies so we become an attractive investment destination,” she stressed, adding that the Philippines needs to catch up with her Asean neighbors that have moved fast over the last 10 years.
The PCCI earlier identified some of the major industries that are ideal and attractive for local and foreign investments and could amplify the economic growth and competitiveness of the country. These sectors include agribusiness, information technology-business process outsourcing and creative industries, manufacturing, mining and mineral resources, and tourism, among others.
In a statement, Finance Secretary and FIRB chair said he commended the body for its swift action in improving the Philippines’ global competitiveness with the issuance of the resolution.
“IPAs play a vital role in attracting more productivity-enhancing investments to the country, and we will continue to support them by acting fast on measures that will further promote ease of doing business and cultivate an investment-friendly climate,” Recto said.
