Post on 23-Oct-2015
description
INVEST IN THE PHILIPPINES,
INVEST IN GROWTH
CRISTINO L. PANLILIO DTI Undersecretary and BOI Vice Chairman & CEO
GPCCI ECONOMIC FORUM 26-May-2011
Economic Scorecard
GDP (2010) 7.3%
GNP (2010) 7.2%
Headline inflation (March) 4.3%
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
GDP GNP
Economic Growth Projections
2011
Official Target 7.0 - 8.0%
Poll of Forecasters 4.8%
IMF 5.0%
5.0%
ADB 5.0 %
Philippine Investment Performance
(In Billion Pesos)
Source: National Statistical Coordination Board (NSCB)
231.23
357.00
314.11
464.22
385.80
221.82
542.60
-
100.00
200.00
300.00
400.00
500.00
600.00
2004 2005 2006 2007 2008 2009 2010
73% growth
BOI-PEZA Approved Investments (In Billion Pesos)
-
100.00
200.00
300.00
400.00
500.00
600.00
2006 2007 2008 2009 2010
BOI PEZA
69% growth
Source: National Statistical Coordination Board (NSCB)
Who Are With Us
Maintenance, Repair, Overhaul Services Pharmaceutical
Electronics ICT
Engineering Services Outsourcing Shared Services
Automotive
German FDI (2006-2010)
In Million Pesos
-
500.00
1,000.00
1,500.00
2,000.00
2,500.00
3,000.00
3,500.00
4,000.00
2006 2007 2008 2009 2010
Source: National Statistical Coordination Board (NSCB)
o Germany’s foreign direct investments to
the Philippines in 2010 amounted to
Php1.096 Billion of approved investment.
o The major recipients of German
investments are: manufacturing; finance
and real estate; and private services.
o Notable BOI-PEZA registered companies
with German equity: Continental TEMIC
Electronics, (Philippines) Inc., Lufthansa
Technik Philippines, Inc., Siemens IT
Solutions and Services, Inc., SCA Hygiene
Corporation, Bombardier Transportation
(Shared Services) Philippines, Inc.,
Empress Dental Laboratories, Inc., Global
Collaborative Solutions, Inc., and Farmout
Central Intouch, Inc.
BILATERAL AGREEMENTS BETWEEN
PHILIPPINES AND GERMANY
• AGREEMENT ON THE PROMOTION AND RECIPROCAL PROTECTION
OF INVESTMENTS
• TREATY ON AVOIDANCE ON DOUBLE TAXATION
AREAS OF COMPLEMENTATION ON INVESTMENT
MATTERS BETWEEN PHILIPPINES AND GERMANY
• Encourage the exchange of investment missions that will highlight the
strengths of the two countries.
• Promote more joint venture partnerships between Filipino and German
businessmen. German companies in joint venture with Philippine
companies are encouraged to set up their manufacturing base in the
Philippines to serve the ASEAN market and the rest of the region.
I. Preferred Activities
Regular List:
Agriculture/ Agri-business and Fishery
Ship Building
Mass Housing
Energy
Infrastructure
Research and Development
Green Projects
Strategic Projects
Motor Vehicles
Tourism
PPP Projects
II. Export Activities
III. Mandatory List
Production and Manufacture of Export Products
Services Exports
Activities in Support of Exporters
Proposed Investment Priorities Plan 2011
IV. Export ARMM List
• Focus on infrastructure support facilities for tourism, agriculture, social services and growth centers
• Provide incentives to stimulate private resources
• Ensure competition, fairness and transparency
• Provide assistance in preparation of business case, pre-FS, full FS, detailed engineering, tender document, etc.
• Fast-track project approval process
• 2011 Rollout/Tender: 10 Projects
• 2012 & beyond: 73 projects
Public-Private Partnerships: Cornerstone Strategy of National Development
Project Name Publication of Invitation to
Bid
Project Cost
(in US $ Million)
MRT/LRT Expansion Program: Privatization
of LRT 1 Operation & Maintenance
(DOTC/LRTA)
March 2011 171.11
MRT/LRT Expansion Program: Privatization
of MRT 3 Operation & Maintenance
(DOTC/LRTA)
2nd quarter of 2011 140.0
NAIA Expressway, Phase 2 (DPWH) May 2011 235.3
NLEX-SLEX Connector June 2011 477.0
Daang Hari – SLEX Link Road April 2011 35.5
First Batch of PPP Projects for 2011 Rollout
www.ppp.gov.ph
Project Name Publication of
Invitation to Bid
Project Cost
(in US$ Million)
LRT Line 2 East Extension Project November 2011 251.11
MRT/LRT Expansion Program: LRT 1 South
Extension project July 2011 1,555.55
CALA Expressway – Manila Side Section
(27.5 km) December 2011 262
New Bohol Airport Development August 2011 168.89
Puerto Princesa Airport Development August 2011 97.78
New Legaspi (Daraga) Airport Development August 2011 71.11
Privatization of Laguindingan Airport Operation
and Maintenance June 2011
33.33
Other PPP Projects for 2011 Rollout
www.ppp.gov.ph
Rich Talent Pool
Robust Infrastructure
The Philippine Advantage
• 470,000 tertiary graduates per year
- 21% IT / Computer Science / Engineering
- 24% Business & Accountancy
- 16% Medical & Allied / Natural Sciences
• 39 million labor force
PHYSICAL INFRASTRUCTURE
- Airports: 9 international, 20 domestic
- Connecting Railways: 3 (Metro Manila)
- Roll off / Roll on Ports: 12
- Newly constructed (major) roads
TELECOMMUNICATIONS
- Completely deregulated industry
- International connectivity and expanding
multimedia infra
- Capable of handling volumes of data at 250 Gbps
ECOZONES AND IT PARKS
- Manufacturing (64)
- IT Parks (148)
- Medical Tourism (2)
-Agro Industrial (13)
-Tourism (12) TOTAL: 239
POWER
- Total installed capacity: 15,852 MW
- Level of electrification: 97%
- Presence of privately-owned companies
providing various energy sources
Strategic Business Location
The Philippine Advantage
First-Class Lifestyle
Regional Hub for Logistics
Good access to the important 550 million
ASEAN people
Reachable within 4 hours by plane from
Asian key cities
Friendly people
Value-for –Money housing
Modern recreational activities
First-rate educational institutions
Comparison of Incentives
INCENTIVE
BOI
(Executive Order No. 226, as
amended)
PEZA
(Republic Act No. 7916, as
amended)
CDC / SBMA
(Republic Act No. 7227 – Bases
Conversion Devt Authority
Income Tax Holiday
(ITH) 4 – 6 years (max of 8 years)
Exempted from all local and national
taxes - value-added taxes, franchise
taxes, excise and ad valorem taxes) ITH Bonus 3 years provided the firm meets certain conditions
Special Tax Rate of 5% on
Gross Income Special Tax Rate of 5% on Gross Income
Importation of Capital
Equipment, Spare Parts and
Supplies
Duty-free Tax and Duty-Free
Wharfage Dues and Export
Tax, Duty, Impost and Fees Exempted No exemption
Simplication of Customs
Procedures Available
Employment of Foreign
Nationals
Foreign nationals may be employed in supervisory, technical or advisory positions within 5 years from a
project’s registration, extendible for limited periods. The positions of president, general manager, and treasurer
or their equivalents, of foreign-owned registered firms may be retained by foreign nationals for a longer period.
All foreign employees may bring with them their spouses and unmarried children under 21 years of age.
Attractive Investment Incentives
Due diligence assistance
Information support
Visit program development & investment briefing
Business matching
Business registration facilitation
Networking with IPUs and other government agencies on pre-operational
business requirements
Fast tracking with registration procedures
Assistance with local government requirements
Aftercare service
Presence of government network to quickly respond to concerns
Regular supervision & monitoring
BOI Services