BritCham vows to continue promoting the Philippines
Credit to Author: Tyrone Jasper C. Piad| Date: Thu, 12 Dec 2019 14:30:26 +0000
WITH Southeast Asia becoming an attractive investment destination, the British Chamber of Commerce Philippines (BritCham) vowed that it would continue its efforts to encourage firms in the United Kingdom to invest in the country.
BritCham Executive Director Chris Nelson, in an event on Tuesday in Makati City, said the chamber will further contribute in increasing foreign direct investment in the Philippines.
“UK companies are looking more at Southeast Asia. What we are trying to do is to make sure they look at the Philippines as their primary destination,” he said.
Nelson said the country is attractive because of its large and young population, noting that half of Filipinos are below 25 years old. Also, poverty incidence and unemployment rate have dropped.
The BritCham official also lauded the government’s initiatives relating to ease of doing business (EoDB).
“We are a keen supporter, along with other chambers and embassy. And the reason for that is that when I go to UK, the first questions of SMEs (small and medium enterprises) are about ease of doing business,” Nelson said.
The EoDB law, which aims to simplify government transactions, sets a prescribed processing period: simple business transactions should be completed within three working days; seven for complex transactions; and 20 for highly technical processes.
The law mandated the creation of Anti-Red Tape Authority that is tasked to monitor and implement anti-red tape measures and reforms for EoDB to improve the global competitiveness ranking of the Philippines.
But more is needed to be done, he said, to free up the economy and allow more foreign investments, citing amendments to retail trade liberalization.
One revision seeks to reduce the required minimum paid-up capital for foreign firms upon entry to the local retail sector.
Regarding the concern on the Corporate Income Tax and Incentive Reform Act (Citira) bill, BritCham is seeking for a middle ground with the government.
“[We are] trying to make sure that there is a balanced approach. There is a hope that there could be some efforts there to adjust,” he said.
Citira aims to reduce the corporate income tax rate from 30 percent to 20 percent in 10 years. It also seeks to remove the 5-percent tax on gross income currently enjoyed by select firms.
As of end-September, Philippine exports to UK declined by 10.9 percent to $373.22 million from the year-earlier $418.90 million, according to the Philippine Statistics Authority.