The Philippine government has implemented various initiatives to promote foreign direct investment and position the country as a competitive investment destination in Southeast Asia. One major strategy involves providing fiscal and non-fiscal incentives for priority industries. Qualified projects engaged in the manufacturing, information technology-business process management, tourism, agriculture, and infrastructure receive tax holidays on income for four to six years, as well as duty-free importation of equipment. Liberal foreign ownership rules allow up to 100% foreign equity in most business activities of Philippines.
Philippine Government agencies also facilitate applications for incentives through a “one-stop-shop” approach. The Board of Investments serves as the lead investment promotion arm of the government, assisting investors with registration, incentives application processing, and project implementation. Economic zone authorities actively develop special economic zones with ready industrial and commercial land, buildings, utilities and infrastructure. Zones such as the Clark Freeport Zone, Laguna Technopark, and Subic Bay Freeport have attracted multinational factories and international shared service centers in Philippines.
The Philippine government is also upgrading national infrastructure through massive public-private partnership programs. The “Build, Build, Build” initiative involves over $160 billion in infrastructure spending from 2018 to 2022. Projects include modernizing seaports, airports, roads and railways to improve connectivity. Initiatives like Startup PH and the Technology Transfer Act encourage innovation through research collaborations, startup hubs and commercialization programs. The Intellectual Property Office strengthened IP laws and enforcement.
As a founding member of ASEAN and participant in regional free trade agreements, the Philippines enjoys preferential market access to key export destinations under pacts such as the ASEAN Trade in Goods Agreement, ASEAN-China Free Trade Area, and ASEAN-Korea Free Trade Area. The administration of democratic systems and consistent economic policies also provide long-term macroeconomic stability and predictability for investors. Through these wide-ranging initiatives, the Philippine government aims to develop a globally competitive investment environment and attract increased foreign capital to support the country’s growth and development goals.
