If one will ask what the previous government administration was known for, most of the answers will probably be the “Build, Build, Build” program. According to the Department of Public Works and Highways (DPWH), through this project, over 6.5 million Filipinos have been provided jobs between 2016 to 2020. Some of the completed projects under this program include the final section of the Tarlac–Pangasinan–La Union Expressway (TPLEX), Plaridel By-Pass Road Phase II, North Luzon Expressway (NLEX) Harbor Link Segment 10 and C3-R10 Section, Skyway Stage 3, and Alabang-Sucat Skyway Extension. According to Dr. Bernardo Villegas, renowned economist in the country, “The Build, Build, Build program which has increased the public investment in infrastructures from below 2 % in the past to an average of 5 to 6% under the past [outgoing] Administration.”
So, what’s next? Dr. Bernardo Villegas asked the same question in his article, “Transitioning to the Next Administration.” There, he stated, “Where will the next Government obtain the long-term capital needed to continue improving Philippine infrastructures by making sure we are investing 5 to 6 % of our GDP in this vital sector? The answer is a no brainer: Foreign Direct Investments.”
The importance of Infrastructure and FDIs is also backed up at the Series of Economic Fora co-organized by the Center for Research and Communication (CRC) together with the Department of Interior and Local Government (DILG). Session 10 particularly focused on infrastructure as an important aspect that needs to be addressed for the Philippines to continue progressing. Speakers DILG Usec. Jonathan Malaya; Prof. Dr. Stefan Jost of Konrad-Adenauer-Stiftung (KAS) Philippines; Hon. Anna Mae Lamentillo, Chairperson of Build, Build, Build – Department of Public Works and Highways (DPWH); and Mr. Rene Santiago, Fellow from the Foundation for Economic Freedom (FEF) expressed in their talks their excitement for the possibilities once the country has been fully opened to Foreign Direct Investors. The guests also shared that the amendment of the Public Service Act will greatly contribute to attracting more FDIs. Doing so will help the country continue the development and production of the much-needed structures such as railways, expressways and more. Dr. Villegas also adds, “Thanks to the passing of the law amending the Public Service Act, foreign equity can flow more freely in some of the most vital infrastructures needed for our next stage of industrialization called Industrialization 4.0. to which the next Government has to devote a great deal of attention.” With public services such as railways, expressways, tollways and the like now being fully opened to 100% foreign ownership, it can be expected that investments in these sectors will come pouring in, especially with the help of the PSA Law.
But what steps should you take to ensure that you, as a Foreign Direct Investor, can seamlessly invest and penetrate the Philippine market? CRC’s partnership with DILG showcases that it is the premiere consultancy firm when it comes to the Public Service Law. Tying up with CRC will give you that competitive edge with its vast knowledge on the topic and processes involved as seen from its successful collaboration with the DILG. CRC is the go-to firm that can help you jumpstart that next level partnership as you plan and venture into investing in the Philippines. Interested to know more? Message us at +639054280727 or email [email protected].
Sources:
- Patinio, Ferdinand, “‘Build, Build, Build’ continues: Building more for better lives”, Philippine News Agency, 24 July 2022: https://www.pna.gov.ph/articles/1179572
- “Series of Economic Fora Session 10: Opening the Economy for Recovery: Harnessing Foreign Direct Investments for Philippine Infrastructure.”, Center for Research and Communication: 1 October 2021: https://www.facebook.com/451710488734964/videos/1267855867062145
- Villegas, Dr. Bernado, M., “Transitioning to the next administration”, Manila Bulletin, 03 May 2022: https://mb.com.ph/2022/05/03/transitioning-to-the-next-administration/
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