ECC okays creation of investment superbody

The creation of an investment superbody has been approved by the Economic Coordinating Council (ECC), Finance Secretary Jose T. Pardo said.

The investment superbody, Pardo said, will facilitate and prioritize projects worth P5 billion ($100 million) and above.

The investment superbody will be created through an Executive Order that is expected to be signed by President Estrada before the year ends.

According to Pardo the investment superbody is intended to help attract foreign investments which have been staying away due to a number of factors and complaints.

A repeated complaint is the circuitous system investors have to go through before they can invest.

Pardo said the investment superbody will create an express lane that will assist foreign investors.

Being eyed to head the investment superbody on the regulatory side is Finance Undersecretary Lily Gruba, while Macel Fernandez will head the promotions side.

Likewise, Pardo said, the Office of the Investment Ombudsman headed by Florecita Flores would be transferred from the Board of Investments to the Department of Finance.

Pardo explained the reason for the transfer to the need for the investment ombudsman to be near the investment superbody so that "should there be any problems with investments, ombudsman would be within reach."

The ECC has focused on the need to attract more foreign investments which have been going to the Philippines’ neighbors such as Thailand and Malaysia.

Even before the current political crisis, several big multinationals had pulled out of the country because of the increasingly militant labor force.

Another problem is the amount of incentives that the government gives to foreign investments. Foreign investors want more tax perks, while the government is trying to put a cap on the amount of incentives it can give.

The government is tightening up on tax incentives because of the need to raise more revenues for the government.