The Philippine Board of Investments (BOI) announced the approval of Mitsubishi Motors Philippines Corporation and Toyota Motors Philippines Corporation as participating car makers of the country’s Comprehensive Automotive Resurgence Strategy (CARS) Program.
Trade Assistant Secretary Rafaelita Aldaba said that the CARS Program aims to raise local vehicle manufacturing to expand the country’s auto parts making capabilities. CARS is expected to attract PHP 27 Billion in fresh investments, manufacture 600,000 more vehicles, and add PHP 300 Billion to the domestic economy (equivalent to 1.7 percent of gross domestic product).
Mitsubishi applied to produce 200,000 units of the Mirage/Mirage G4 while Toyota applied for the production of 230,000 units of an all new (full model change) Vios. As participating carmakers, they are required to localize the production of body shell and large plastic parts and components.
Toyota and Mitsubishi’s initial investments totaling P8 billion will create some 14,000 new jobs, salaries and wages of which will also amount to Php8 billion over a six year period. Parts makers who will be working with Toyota and Mitsubishi are expected to generate over Php18 billion fresh investments for the country.
The CARS Program also expects total government revenues to amount PHP408 billion in import duties, VAT, excise tax, income tax, withholding taxes. Direct purchases of raw materials for parts making will amount to Php63 billion.
BOI is continuing its efforts to further strengthen the awareness level of its stakeholders on the latest government investment policies, regulations, and procedures. This year, it plans to conduct about 5 investor awareness seminars throughout the country.
The BOI Investment Awareness Seminar to Strengthen the Investors and STakeholders (BOI ASSIST) BOI-registered and prospective investors are briefed on the latest investment policies and business registration procedures of various government agencies.
Two seminars were already conducted in the first half of the year at the Best Western Plus Antel Hotel in Makati City and at the Development Academy of the Philippines. Three more seminars will be conducted at the second half of the year.
Attended by around 60 participants, the first seminar was specifically geared for companies in the renewable energy sector and in the healthcare facilities and services sector planning to register, expand and/or diversify their business projects with the BOI. Partner government agencies such as the Department Energy, the Department of Health, and the Department of Agrarian Reform, sent resource persons to address the concerns of participants.
The second seminar was attended by around 70 participants. Topics include the agencies’ policies and procedure on availment of incentives. Atty. Euvimil Nina R. Asunsion of the Bureau of Internal Revenue who discussed the Bureau’s policies and procedure on availment of Incentives, Atty. Maria Corazon A. Arancon of the Investment Ombudsman, and Mr. Jose Antonio S. Vilar of the Philippine Stock Exchange who highlighted the benefits of publicly listing a company, which is a requirement for a BOI-registered company.
Investments approved by the Philippine Board of Investments (BOI) in the first four months of the year reached P117.26 billion, up by 64 percent compared to the P71.62 billion posted in the same period last year. These were generated from 101 projects and are expected to create 16,366 additional jobs, once fully operational.
For the month of April alone, a total of P55.33 billion was generated, which recorded a remarkable 225 percent increase compared to the P17 billion generated for the same month in 2015.
Among the big ticket projects approved in April include GMR Megawide Cebu Airport Corporation (with Php16.75 Billion), a PPP project for the Cebu International Airport Project (Phase 2 – operation and maintenance of Terminal 2); Light Rail Manila Corporation (LRMC) (Php15.15 Billion), modernization of the existing system – operations and maintenance of Manila LRT 1 Integrated Railway System Project; and Cordillera Hydro Electric Power Corporation (Php12.18 Billion), renewable energy developer of 60MW Kapangan Hydroelectric Project in Benguet.
On a sector level, electricity, gas, steam and air conditioning supply recorded the largest share of investment commitments at P48.97 billion (42 percent), followed by the construction sector with P31.90 billion (27 percent), real estate activities, specifically, the economic and low-cost housing sub-sector with P19.61 billion (17 percent), transportation and storage with P10.06 billion (nine percent); and manufacturing with P5.97 Billion (five percent).
Major manufacturing sub-sectors, based on their respective shares to total investment approvals in the first four months include food products (P5.16 billion or 86.5 percent share); motor vehicles, trailers and semi-trailers (P122.59 million or 2.1 percent share); leather and other related products (P62.01 million or 1 percent share); wearables and apparel (P24.66 million or 0.4 percent); and other manufacturing products (P593.77 million or 10 percent share).
Of the total investment approvals, 84 percent or P98.54 billion came from local investors and the remaining 16 percent or P18.73 billion from foreign sources.
Singapore was the top foreign investor with P8.22 billion, accounting for 44 percent share of the total investments from foreign nationals, followed by the Netherlands with P5.96 billion (32 percent share); British Virgin Islands with P2.02 million (11 percent share); United States with P604.54 million (3 percent); and United Kingdom with P505.49 million (3 percent share).
BOI and DOF are working at full speed to finish the implementing rules and regulations (IRR) of the Tax Incentives Management and Transparency Act (TIMTA).
The IRR is about 70 percent complete and both agencies continue to meet regularly to thresh out the few remaining issues.
BOI and DOF met yesterday (May 5) to resolve the remaining outstanding issues of the IRR namely, the specific data and information that should be submitted by IPAs to companies, IPAs to BIR, BIR to BOC to DOF, and IPAs to NEDA; BOI’s evaluation of income tax holiday applications of investors; and the conduct of Cost-Benefit Analysis by NEDA.
Investments approved by BOI reached P61.94 billion in the first three months of the year, up by 13 percent from the P54.62 billion generated in the same period last year.
The investment approvals were generated from 73 projects from various sectors and are expected to create at least 12,841 in new jobs when these projects are fully operational. The increase in approved investments can be attributed to big-ticket energy related projects which recorded the largest share of investment commitments in the three-month period at P29.34 billion or 47 percent of the total approved investments. This figure is 113 percent higher than the P13.759 billion energy-related investment projects recorded in the same period last year.
The Netherlands took the lead as the country’s top investors in the first quarter of 2016 with P5.95 billion, accounting for 70 percent share of the total investments, followed by the United States of America with P604.54 million (7 percent share); United Kingdom with P505.49 million (6 percent share); Singapore with P294.13 million (3 percent share); and China PROC with P141.64 million (2 percent share).
OECD launched the book “Investment Policy Review of the Philippines,” in Paris, France. The Review provides a comprehensive approach in strengthening policies and institutions in the Philippines. This review assesses the overall investment climate in the Philippines, looking at investment policy, investment promotion and facilitation, competition policy, infrastructure investment and responsible business conduct. SASC attended the launching.
The Philippines is further sustaining its position as a mature regional hub for information technology and business process management (IT-BPM) as the country’s major industry players recently highlighted the Philippines as a viable investment location for IT-BPM and showcased the competencies and proven track record of the Filipino workforce in delivering world-class services during the CeBIT Fair in Hannover, Germany recently.
IT-BPM is currently the fastest growing industry in the country. In 2015, IT-BPM industry reached $22 billion in revenue, generating around 1.2 million full-time employees. For 2016, the IT-BPM industry is eyeing to surpass the revenue figures earned in 2015 and targets $25 billion in revenue and 1.3 million direct employment opportunities.
CeBIT, a German language acronym for Centrum für Büroautomation, Informationstechnologie und Telekommunikation, is a sought-after global trade fair and event to promote IT services. The Hannover edition is one of the most prominent conventions and attracts the most number of visitors and exhibitors. Over the years, CeBIT has become an important platform for ICT companies from different parts of the regions to explore partnerships and exchange expertise through exhibitions, global conferences, and networking events. In 2016, the fair attracted 100,000 visitors with over 3,300 exhibitor companies from 70 countries.
Over 70 meetings / business queries were facilitated on site. The delegation generated interests in the form of outsourcing possibilities and potential inbound visits in PH, as well as collaboration work with European company leads and industry associations.
After CEBIT, the delegation proceeded to Berlin for the conduct of Business Forum, as well as to hold company meetings and networking receptions.
The forum was followed by a Networking Luncheon, hosted by Amb. Thomeczek, for the promotion of global in-house centers / shared service centers in PH. This was attended by the testimonial speakers during the forum, executives of the German Outsourcing Association and the Association of German Banks.