Government seeks to draw investments in priority areas

The Arroyo administration is putting out the welcome mat for foreign investors.

Instead of attracting investors to place their money in priority investment areas, the Arroyo administration will instead pinpoint areas where there are no sufficient producers or manufacturers and ask investors to invest in those areas.

Trade and Industry Secretary Manuel Roxas II said that presently interested investors have to check if their line of investment is included in the Investment Priorities Plan (IPP).

Under the proposed changes to the Omnibus Investments Act, the Arroyo government will make it easier for foreign investors to come to the Philippines.

According to Roxas, the government is now studying the possibility of first determining if something is not sufficiently available domestically. If it is not, Roxas said, then foreign investors are welcome to invest in that area.

Such a change, he said, "reflects greater emphasis in attracting investments to locate here."

Another change the government is contemplating is extending the income tax holiday from the current six to eight years to 10 years plus two more years.

Additionally, Roxas revealed, government is also looking at equalizing the export requirement for Philippine firms and foreign-owned firms.

At present, Filipino firms have a 50 percent export requirement, while foreign-owned firms have a higher export requirement of 70 percent.

Equalizing the export requirement would attract more foreign direct investments, Roxas said.