Philippines poised to emerge as premier investment hub in Asia

Finance Secretary Benjamin E. Diokno conveyed his firm belief in the Philippines’ potential to become a leading investment destination in Asia during the Philippine Investment Opportunities forum on August 29, 2023 at the Japan International Cooperation Agency (JICA) Office in Takebashi, Tokyo, Japan. 

He stated, “Indeed, the Philippines today is primed more than ever to become a leading locus of investments in Asia and the Pacific. This is made possible through the establishment of a stable, predictable, and competitive investment environment.” 

Secretary Diokno highlighted the Philippines’ improved framework for public-private partnerships (PPPs), the fiscal incentives offered through the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law, and the newly enacted Maharlika Investment Fund (MIF) to an audience comprising over 130 representatives from Japan-based trading houses, financial institutions, Japanese government agencies, and multilateral development organizations. 

The Philippine government is guided by the 8-Point Socioeconomic Agenda of the Marcos administration and the Philippine Development Plan (PDP) for 2023-2028. 

“To this end, the Philippine government has embarked on the aggressive implementation of reforms to create a conducive environment for PPP-related investments,” Secretary Diokno affirmed. 

These reforms encompass revising the implementing rules and regulations (IRR) of the Build-Operate-Transfer (BOT) Law to enhance the financial viability and bankability of PPP projects, refining the Investment Coordination Committee (ICC) Guidelines for faster processing and approval of PPPs, and aligning the National Economic and Development Authority (NEDA) Joint Venture (JV) Guidelines with the revised BOT Law IRR and the proposed PPP Act. 

Furthermore, the government is actively working toward the passage of the PPP Act, currently nearing approval in the Senate, which aims to streamline regulations and procedures for infrastructure projects.

Secretary Diokno noted, “Our PPP reforms have already resulted in quicker approval of projects in the last seven months.” 

Since the onset of the Marcos administration, four PPP proposals with a combined project cost of P212.8 billion (approximately US$ 3.8 billion) have received expedited approvals. 

Notable achievements include the evaluation and approval of the solicited proposal for the rehabilitation of the Ninoy Aquino International Airport (NAIA) within six weeks and the evaluation and approval of the unsolicited proposal for the Tarlac-Pangasinan-La Union Expressway (TPLEX) Extension Project within 11 weeks. 

Currently, there are approximately 197 Infrastructure Flagship Projects (IFPs) valued at around US$ 155 billion open for partnerships. These projects span various sectors, including energy, water, logistics, transportation, agribusiness, manufacturing, tourism, health, and education. 

Takema Sakamoto, JICA’s Chief Representative in the Philippines, also highlighted the Philippines’ suitability as an investment hub and development partner. He cited the country’s favorable demographics, manageable debt levels, government commitment to PPPs, and abundant opportunities for development collaborations. 

The Philippines holds the position of being JICA’s second-largest beneficiary globally. The agency actively supports 28 ongoing loans with the Philippine Government, including projects like the North-South Commuter Railway Project (NSCR), NSCR Extension Project, and the Metro Rail Transit (MRT) Line 3 Rehabilitation Project. 

The event featured opening remarks by Philippine Ambassador to Japan Her Excellency Mylene J. Garcia-Albano and closing remarks by JICA Senior Vice President Nakazawa Keiichiro. 

Additionally, National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan presented the Philippine socioeconomic agenda, Department of Transportation (DOTr) Secretary Jaime J. Bautista outlined transportation-related PPP projects, Department of Energy (DOE) Secretary Raphael P.M. Lotilla discussed energy investment opportunities, and Bases Conversion and Development Authority (BCDA) President and CEO Joshua M. Bingcang briefed investors on opportunities within New Clark City.