Finance Sec. Recto Pitches "Investment Haven PH" To Japanese Firms

Department of Finance (DOF) Secretary Ralph Recto invited Japanese companies to invest in the Philippines as he pitched the country as a 'strategic safe haven' which addresses the concerns of investors.

CREATE MORE is an improved version of the CREATE law that expands and refines fiscal and non-fiscal incentives. I Photo: Department of Finance Philippines

"The Philippines is booming and has all the makings of a tiger economy. This makes us the most strategic safe haven for Japanese investors. We are an economic superstar in ASEAN (Association of Southeast Asian Nations), with GDP growth expanding among the fastest at 6.2 percent since President Marcos, Jr. took office," Recto emphasized.

Investors are assured of enhanced fiscal and non-fiscal incentives under the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE), he stated.

CREATE MORE, he described, is an improved version of the CREATE law that expands and refines fiscal and non-fiscal incentives, clarifies the rules and policies on the grant and administration of incentives, and addresses key issues affecting the country’s investment climate.

It solves Japanese investors’ long-standing concern about value-added tax (VAT) refunds by exempting export-oriented enterprises from paying the latter, he underscored.

The Finance chief also noted that the VAT refund reforms under CREATE MORE will also address investors’ concerns regarding the unreliability of the system, making it timely, efficient, and predictable.

He added that the measure also provides a more attractive incentive package for registered projects or activities with an investment capital exceeding about PHP 15 billion.

Moreover, the doubling of the additional power expense deduction will also help mitigate the impact of high power costs and reduce the overall cost of doing business in the Philippines, given its income tax effect, he stressed.

Recto likewise expressed optimism that CREATE MORE will help entice more Japanese investors to establish roots and expand in the Luzon Economic Corridor, noting that this economic corridor was established during the inaugural Trilateral United States-Japan-Philippines Leaders Meeting last April.

This corridor is a perfect hub for those involved in cutting-edge manufacturing, semiconductor supply chains, and agribusiness as this links Luzon’s major economic centers — Subic Bay in Zambales, Clark in Pampanga, Manila, and Batangas, he pointed out.

Recto also assured that the government is addressing bottlenecks and streamlining processes to make it easier for Japanese investors to engage in high-priority sectors which include clean energy, mining, critical minerals, retail, digital technologies, and many others.