MANILA, Philippines — The Philippines is wooing more Singaporean firms to put their resources and invest in the country’s public-private partnership (PPP) projects, particularly those that will boost tourism and manufacturing.
During the 4th Philippine-Singapore Business and Investment Summit in Singapore, Finance Secretary Ralph Recto said Singapore’s role has never been more crucial as the Philippines moves to enhance its logistics backbone and human capital through various investments.
Recto said the country needs more of Singapore’s expertise and technology for the 186 flagship infrastructure projects especially after the passage of the PPP Code.
“We invite you to submit unsolicited proposals, respond to solicited ones or explore more joint ventures with us,” Recto said.
Specifically, the finance chief emphasized that the Philippines wants more participation from top-tier partners in Singapore like the Changi Airport Group as the country modernizes major airports across the archipelago.
This is aimed at addressing the post-pandemic tourism surge.
“Given Singapore’s world-class expertise in aviation, both of us can lead Southeast Asia’s transformation into a global travel hub and drive the tourism boom across the region,” Recto said.
Singapore also helped the Philippines craft a smart, modern and sustainable urban and infrastructure blueprint for the New Clark City.
As such, Recto is hoping that the country can rely on Singapore’s competitive advantage to more people-centered cities across the Philippines.
As the government transforms the Luzon Economic Corridor into a logistics and manufacturing hub, Recto said this can be a perfect link for Singaporean investors involved in manufacturing, semiconductor supply chains, renewable energy and agribusiness.
Recto noted that the new amendments to the country’s fiscal incentives regime, through the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE), aims to further attract Singaporean investors to do business in the country.
Expected to be passed within the year, CREATE MORE targets to enhance both fiscal and non-fiscal incentives, resolve key investor concerns and respond to emerging global developments.
It will also streamline business compliance by reducing documentary requirements and exempt export-oriented enterprises from paying value-added tax.
Likewise, the bill provides a more attractive incentive package for registered projects or activities with an investment capital exceeding $260 million (P15 billion).
Under the enhanced deductions regime, registered business enterprises will see a five-percent reduction in corporate income taxes from 25 percent to 20 percent.
Singapore is the country’s eighth biggest trading partner, second-largest source of foreign direct investment inflows and sixth major investor in the economic zones.
The Southeast Asian neighbor is also the country’s ninth top source of tourist arrivals.