Finance Secretary Ralph Recto on Monday assured American officials of the Philippines’ commitment to welcoming American investors with “red carpet” to boost economic and investment cooperation between the two nations.
Recto met with US Treasury Department deputy assistant secretary for Asia Robert Kaproth to discuss efforts to further strengthen ties and boost economic and investment cooperation between the Philippines and the US.
He said the government would act faster in addressing investor concerns as he laid out the country’s economic liberalization laws that would further facilitate ease of doing business in the country.
These laws include the amendments to the Retail Trade Liberalization Act (RTLA), the Foreign Investments Act (FIA) and the Public Service Act (PSA).
Recto said the Philippines recently improved its public-private partnership (PPP) framework through the enactment of the PPP Code, which would open up massive investment opportunities in the infrastructure sector.
He said the infrastructure flagship projects (IFPs) under President Ferdinand Marcos Jr.’s “Build Better More” infrastructure program consists of 198 projects with an indicative total investment requirement of P8.78 trillion ($157 billion).
Recto said that among the priority sectors for infrastructure investments include renewable energy, water, airports, seaports, roads, tollways and railways.
He said the government is also studying the amendments to the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) to improve the law and further tailor-fit the interests of investors in strategic investments.
Recto also assured the US that their partnership with the Philippines would be a two-way street and emphasized the importance of consistent dialogue. He broached the potential of having a free trade agreement (FTA) with the US and further enhancing security and military ties between the two nations.
US officials welcomed these developments and expressed optimism about further deepening partnership with the Philippines, pointing out that the country’s young, English-speaking population and strong macroeconomic fundamentals underscore its attractiveness as a viable investment destination.
The US also expressed interest in helping the Philippines establish an investment mechanism to help the country screen foreign direct investments (FDIs) for national security purposes.
A high-level delegation from the US government is expected to visit the Philippines in March to further strengthen bilateral ties between the two countries.