DTI sees investment pledges hitting P393B in ’16

THE DEPARTMENT of Trade and Industry expects total investment commitments to grow by a more modest 7 percent this year to P392.69 billion from P367 billion last year.

Government data obtained by the Inquirer also showed that the government aims to grow investment pledges by another 7 percent in 2017.

Should the target be met, investment commitments will hit P420.18 billion.

These targets reflect the strong investor confidence in the Duterte administration and its planned 10-point economic agenda, as well as the country’s robust economic fundamentals, and high consumer confidence.

“We have a better business environment under the new administration. President Duterte’s 10-point economic agenda is a big factor to attracting investments. Part of this agenda pursues the stability of the policy environment, honoring contracts and not changing the rules midway, a big come-on for many investors,” Trade Secretary Ramon Lopez had said.

To help create an even more attractive investment environment in the Philippines, government agencies are collectively crafting new measures and orders to streamline the processes involved in setting up a business in the Philippines.

The latest of these initiatives was the agreement signed by three departments namely DTI, Department of Interior and Local Government, and Department of Information and Communications Technology, who had targeted to cut the number of days and steps it takes to register a business and secure permits and licenses.

There are also moves to review the country’s fiscal incentive regime and the Investments Priorities Plan to reflect the economic agenda of President Duterte, as well assure investors that existing contracts will be honored by the new administration.

Meanwhile, a trade official said the local manufacturing industry would still benefit from the proposed P257-billion funding for the Department of Public Works and Highways (DPWH), even if this was reclassified for next year under the Transport Infrastructure Program.

The Duterte administration wants the DPWH budget to be used to address the worsening traffic woes in Metro Manila and meet the growing transport requirements of the country.

Roads, airports, seaports and other necessary infrastructure being planned are also expected to help enhance the operations of local manufacturing companies.

Over the past two years, the DPWH budget was looped under the Manufacturing Resurgence Program (MRP).

This year, the MRP has an allocation of P289 billion.

But this was drastically cut to a proposed P16.6 billion in 2017, representing a fraction or only 6 percent of the budget that was set for this year.