Pinoy youth magnet foreign investors

This is the best investment of his political capital.

Albay Rep. Joey Salceda yesterday expressed confidence in the Philippines luring foreign investors on the back of its young workforce and the ongoing infrastructure and economic reforms.

In a statement, Salceda said Manila is the most generous in Southeast Asia in giving tax breaks, which resulted in P504.2 billion in foregone revenues in 2017. And these are welcome to foreign businessmen.

But the lawmaker suggested the junking of what he called as “forever” tax breaks and making way for new business opportunities to new investors.

The lawmaker disclosed that there are ongoing talks for more foreign investments in the Philippines, including a potential Australian investor in Subic Bay’s Hanjin shipyard that is being negotiated by a US firm.

“Who said it’s about incentives? It’s all about managing the economy and what is your national goal and your capacity to demonstrate your national strategy,” Salceda said.

The Bicol lawmaker — who is also an economist and former economic adviser to former President Gloria Macapagal-Arroyo — explained that incentives will be “conditional” under a House bill, so that job generation will not be an “afterthought” of the program.

The House of Representatives last week passed the second tranche of tax reforms or Corporate Income Tax and Incentive Rationalization Act on third and final reading. It is the backbone of the country’s tax program.

Citing 2015 figures, Salceda said companies in the Philippine Economic Zone Authority (PEZA) zones were granted P235 billion in incentives and generated 1.26 million jobs. In the same year, the semiconductor industry produced 345,000 jobs with P158 billion in incentives, while the business process outsourcing industry (BPO) produced one million jobs with P14 billion in incentives.

“For BPO, they will lose nothing, especially if they will continue hiring,” said Salceda, adding that he is confident the Senate could pass a counterpart measure, given President Rodrigo Duterte’s support from the majority in the chamber.

“This is the best investment of his political capital,” Salceda said.

The lawmaker also said that PEZA no longer accounted for the bulk of foreign investments.

“They are not coming here for incentives. There must be something we are doing right,” said the lawmaker. “Where will you find the single biggest pool of the most young and mobile professionals? Where do you find a culture predisposed to Western culture?”