According to the Semiconductor and Electronics Industries in the Philippines Foundation Inc. (SEIPI), the Philippines is losing over USD 3 billion worth of investments to manufacture electronic products due to policies.
“There are lots of concerns and what happened is capital flight. We have about 5 companies already to the tune of $3.2 billion that move to Vietnam, Thailand, and China, move means instead of investing in the Philippines. And there is another $400 million for a total of 25,000 workers that we may lose,” said SEIPI President Dan Lachica during the signing of a memorandum of understanding between the Philippine Economic Zone Authority (PEZA) and the Department of Environment and Natural Resources (DENR).
Lachica cites concerns over the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, specifically the rationalization of incentives as the reason the five companies opted to go to other countries.
There were changes under the Act that made the granting of incentives performance-based, targeted, time-bound, and transparent.
Additionally, the Act mandates the interagency Fiscal Incentives Review Board (FIRB) to oversee the grant of incentives for projects with investments of more than PHP 1 billion.
In comparison, agencies including PEZA clear projects below the threshold by investment promotion.
“FIRB basically has reduced the effectiveness of PEZA,” Lachica said.
SEIPI is said to be working on legislative suggestions for the next administration to address the concerns.
Sources 1, 2 | Featured Image
Ram found his love and appreciation for writing in 2015 having started in the gaming and esports sphere for GG Network. He would then transition to focus more on the world of tech which has also began his journey into learning more about this world. That said though, he still has the mentality of "as long as it works" for his personal gadgets.
