The economic managers on Monday bared plans to persist in making targeted economic missions in the years forward as strategy to sustain not only the economic gains but also to future proof the $404 billion southeast Asian economy.
Acknowledged lead manager and Finance Secretary Benjamin Diokno said such missions, marketed as the Philippine Economic Briefings (PEBs), have thus far generated investment pledges aggregating P1.029 trillion from investors in Singapore, Indonesia and the United States.
These investment pledges are on top of approved investments worth P157 billion from Germany, P293.1 million approved investments from the United Kingdom (UK) and P3.8 billion approved foreign investments from various sources.
These are likewise separate from $600 million infrastructure investment pledges, and P708.2 billion investment deals from Japan.
“Personally engaging with top level investors increases the Philippines’ visibility in the international arena, especially in untapped markets. Establishing bilateral economic relations is in line with the President’s call to form strategic alliances with the international community,” Diokno said.
He noted the importance of conducting regular and targeted briefings that keep global investors and partners updated on the country’s priority areas and latest policy thrusts to improve the investment climate in the country.
According to him, global fund managers, investment houses, and fixed-income investors are particularly interested in knowing the Philippines’ credit story, growth outlook, and priority investment areas.
Only recently, the economic team engaged with Dubai-based funds who expressed interest in co-investment opportunities in infrastructure and fixed-income instruments, such as Environmental, Social, and Governance (ESG)-linked bonds, through the Maharlika Investment Fund, which will be operational by the end of 2023.
By highlighting the Philippines’ fundamental advantages of having a young highly-skilled workforce and enhanced investment environment, the government is able to attract foreign direct investments (FDIs) into the country.
“When visiting a foreign country, we look into areas that will complement the needs of both parties. For instance, our demographic sweet spot is a plus for investors looking to operate in the country. Another area of interest for many investors is our newly-liberalized renewable energy sector, as well as the availability of critical minerals needed for clean technologies,” Diokno said.
Apart from investments, international engagements allow the Philippine government to obtain valuable inputs and feedback from industry leaders on certain issues, as well as recommendations on how to further enhance investment policies to better position the Philippines in the global economy.
Investor roundtables in Japan and the Middle East, for example, prompted the timely review and adjustment of policies in response to private sector concerns on ease of doing business in the Philippines, including issues on value-added tax (VAT) exemptions and refund claims, fiscal incentives granted under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, and double taxation avoidance.
“We should take advantage of this time now that the pandemic is over. We will continue with these targeted economic missions and establish bilateral ties to support our agenda for prosperity for a future-proof and sustainable economy,” Diokno said.
Investors are able to gather insight into the country’s macroeconomic strengths, robust performance, commitment to structural reforms, and sound policy environment as a result of these events, he said.
