Lord Mayor Alan Yarrow PHOTO FROM CITYOFLONDON.GOV.UK
MANILA, Philippines–The visiting Lord Mayor of the City of London on Thursday described the Philippines to be in a demographic sweet spot, with a potential to attract more British investments, but the economy should be opened up further and the country’s tax regime should become more predictable to sustain growth.
“Your country has been successful in the last three to four years, with great economic growth. You’re the country of choice when it comes to back office services. The world is coming to the Philippines,” said Alan Yarrow, Lord Mayor Alderman who heads the City of London Corp.
The City of London Corp., provides local government and policing services to the commercial and financial heart of Britain called the “Square Mile,” the British Embassy in Manila explained in a statement.
The Lord Mayor said the huge Philippine population presents good opportunities to investors.
“You have 100 million people and a high fertility rate. Your demographics are strong,” he said.
However, based on his discussions with Filipino and British firms, there remains a lot of barriers that must be removed to facilitate a much freer flow of investments to the country, Yarrow said.
He noted that as far as financial firms are concerned, taxation must be free from uncertainty.
“If people are going to invest money, they want predictability of returns. Certainty about tax instance is important,” he said.
And since public-private partnership, or PPP, is an area the UK government is familiar with, it can provide technical as well as financial assistance to similar endeavors in the Philippines, Yarrow said.
The economy should also be opened up to allow the entry of more international professionals, and allow greater participation of foreign investors in sectors such as mining, Yarrow said.
The Philippine Constitution limits foreign ownership of businesses.