With the friendlier investment and economic policy that the Philippines is implementing, evident economic achievements such as new investments from foreign and local companies will continue according to Department of Trade and Industry (DTI) Secretary Fred Pascual.

The Trade Chief also attributes this growth to the growing global partnerships. “We in the DTI have been exerting effort to attract investments to our country. The moment the interest has been expressed and pursued by foreign investors, they encounter obstacles in implementing their projects,” Pascual affirmed.

One of the DTI’s flagship achievements is the facilitation of 83 strategic investment projects worth PHP 2.45 trillion through the Green Lane initiative. These projects, spanning renewable energy, digital infrastructure, food security, and manufacturing, are expected to create thousands of jobs and reinforce investor confidence in the Philippines.

“We proposed to the President that we institutionalize the green lanes, which will be the system by which we can speed up the implementation of projects, starting with the approval, permitting and licensing phases dealing with local governments and national governments,” DTI Secretary Fred Pascual added.

Efforts to expedite project implementation include the One Stop Action Center, established in the DTI’s Board of Investments. These initiatives have been successful in attracting investments PHP 3 trillion in aggregate investments, encompassing more than 100 projects.

This success aligns with President Marcos recent SONA, where he emphasized the country’s focus on promoting investment-led growth. He highlighted the DTI’s enactment of policies and programs to create an environment conducive for businesses to thrive, such as reforms in the capital market and fast-tracking green projects.

“We have green-lane certified around a hundred projects with a total investment of three trillion pesos across the sectors of renewable energy, digital infrastructure, food security, and manufacturing,” said President Marcos Jr. as he lauded the green lane certification of approximately 100 projects in key sectors such as renewable energy, digital infrastructure, food security, and manufacturing.

As of May 21, 2024, the DTI is monitoring 231 investment leads or projects worth more than USD 76 billion or PHP 4 trillion from foreign visits. Of these, 12 projects worth USD 327.92 million have already started their operations, while 21 more (USD 1.64 billion) have been registered.

Building on these efforts, the Philippines’ active participation in international trade agreements and economic forums—such as the Indo-Pacific Economic Framework for Prosperity and the Regional Comprehensive Economic Partnership—has further strengthened the country’s economic ties with global partners.

These partnerships, coupled with a recently signed free trade agreement with South Korea and ongoing negotiations with other countries, diversify markets and opportunities for Filipino businesses and workers.

Beyond trade agreements, Secretary Pascual also highlighted the launch of the Luzon Economic Corridor (LEC) during the Philippines-US-Japan Trilateral Leaders’ Summit in April 2024. The LEC is a flagship infrastructure development and connectivity project that aims to boost economic activity and enhance food security in the region.

The DTI has launched its own initiatives to further bolster food security. These include the national food fair,  a platform for micro, small, and medium enterprises (MSMEs) in the crucial food and beverage industry, which accounts for nearly half of all MSMEs in the Philippines.

Additionally, the DTI has established the National Food Hub in Clark, Pampanga, as part of the administration’s “farm-to-fork” strategy outlined in the Three-Year Food Logistic Action Agenda. This seeks to revolutionize the food distribution network in the country, particularly in Northern and Central Luzon.

Recognizing MSMEs as the backbone of the Philippine economy, the DTI’s strong support is also evident through programs like the Pondo Para sa Pagbabago at Pag-asenso. Through this program, the Department has released PHP 8.16 billion in loans to over 154,423 micro-entrepreneurs from July 2022 to May 2024. Furthermore, the DTI’s digitalization efforts have onboarded 47,591 MSMEs onto e-commerce platforms, significantly boosting their market reach and operational efficiency.

“The success of our MSMEs is a testament to the resilience and ingenuity of Filipino entrepreneurs. By providing them with the necessary resources and digital tools, we are empowering them to thrive in a competitive market,” said Secretary Pascual.

Consumer Protection has been another key focus for the DTI, with diligent monitoring firms for compliance with fair trade laws and product standards. The establishment of Task Force Kalasag in April 2024 has further intensified these efforts, aiming to safeguard both consumers and legitimate businesses.

To further enhance the business landscape, the DTI led the passage of the Internet Transactions Act, creating a comprehensive legal framework for e-commerce, promoting trust and fair competition in online transactions. This, coupled with the streamlined business processes through digital initiatives like the Business Name Registration System Next Generation and the Philippine Online Dispute Resolution System, has significantly improved the ease of doing business in the country.

“These accomplishments collectively demonstrate the DTI’s dedication to fostering a conducive business environment, supporting MSME development, protecting consumers, and enhancing the country’s overall economic competitiveness,” said Pascual.

“The DTI is committed to driving initiatives that transform the vision of a ‘Bagong Pilipinas’ into a reality, where economic growth is inclusive, sustainable, and beneficial to all Filipinos,” the trade chief added.

However, the evolving business landscape also necessitates a reevaluation of certain sectors to ensure continued alignment with national interests and economic priorities. Following President Marcos Jr.’s announcement to ban Philippine offshore gaming operators and his directive to facilitate job placements and assist displaced workers, the DTI has pledged its full support in ensuring a smooth transition for affected workers while minimizing any adverse economic impact. 

As the IPU-Network Secretariat, BOI convened the 36-member agency to discuss recurring issues faced by local and foreign investors. The agenda included various concerns about the business environment, particularly business registration, tax-related issues, import procedures, consistency of the investment framework, developments in the industrial sector, and other relevant matters aimed at improving the business environment in the Philippines.

In his opening remarks, BOI Executive Director Bobby G. Fondevilla emphasized the critical need for ongoing collaboration and coordination among the agencies to ensure policy improvements and alignment.

“The Board of Investments, as the Secretariat of IPU-Net, convenes the 36-member agency semi-annually to tackle recurring issues and address the complex challenges within the business environment. This continuous dialogue is essential for fostering a more conducive and streamlined investment climate in the Philippines,” Executive Director Fondevilla stated.

Facilitated by the BOI Investments Assistance Service, the meeting addressed several key issues, including the registration of juridical entities, value-added tax (VAT) refund applications, customs procedures and requirements, applications for licenses to operate and product registrations, the process of land conversion, tree-cutting permit applications, securing favorable endorsements from local government units, an overview of Executive Order No. 59 (Infrastructure Flagship Projects), and energy transmission concerns.

“The commitments we make following this meeting will enhance the business environment, attracting more investments, creating jobs, and improving the perception of investors in our country,” Executive Director Fondevilla added.

Significantly, the concerned agencies responded to the issues, provided policy updates, and recommended ways forward to ensure no unnecessary delays in government processes. Proposals included the adoption of strategies aimed at the digitalization of government operations, streamlining business registration and land conversion applications, and securing favorable endorsements from LGUs, among others.

Additionally, the agencies assured continued updates and coordination with relevant government bodies to expedite the resolution of issues raised during the meeting.

Agencies were also recognized for their initiatives to address investor issues, such as the passage of the Ease of Paying Taxes Act, the integration of government services into the e-Gov super application, and the designation of Green Lane focal units for Executive Order No. 18. A proposal to institutionalize the IPU-Network through the execution of a Joint Memorandum Circular was also discussed, and a proposition to rename the IPU-Network to Investment Facilitation Unit Network.

BOI’s Investment Assistance Service (IAS) Director Ernesto C. Delos Reyes, Jr. concluded the meeting by emphasizing that the achievements from this meeting would remain theoretical unless efforts are made to implement the commitments. He called on all agencies to stay fully engaged and committed to supporting the streamlining and expediting of government processes for the country.

Among the agencies present were the Anti-Red Tape Authority (ARTA), Bangko Sentral ng Pilipinas (BSP), Department of Environment and Natural Resources (DENR), DENR-Environmental Management Bureau (EMB), DENR-Forest Management Bureau (FMB), DENR-Land Management Bureau (LMB), Department of Agrarian Reform (DAR), Department of Agriculture (DA), Department of Energy (DOE), Department of Finance (DOF), Department of Foreign Affairs (DFA), Department of Health (DOH), Department of Information and Communications Technology (DICT), Department of Labor and Employment (DOLE), Department of Public Works and Highways (DPWH), Department of Science and Technology (DOST), Department of Interior and Local Government (DILG), Department of Tourism (DOT), Department of Transportation (DOTr), Bureau of Fire and Protection (BFP), Bureau of Customs (BOC), Bureau of Internal Revenue (BIR), Security and Exchange Commission (SEC), Food and Drug Administration (FDA), Department of Justice-Bureau of Immigration (DOJ-BI), Manila International Airport Authority (MIAA), Public-Private Partnership (PPP) Center, Department of Human Settlements and Urban Development (DHSUD), National Commission on Indigenous People (NCIP), National Economic and Development Authority (NEDA), National Intelligence Coordinating Agency (NICA), Energy Regulatory Commission (ERC), and Bureau of Fire and Protection (BFP).

The Inter-Agency meeting served as a platform for fruitful discussions and exchange of information among the participating agencies, all working towards improving the business environment in the country.

Through a whole-of-government approach, IPU-Net remains committed to sustaining government efforts in facilitating issues and concerns with immediate actions, speeding up procedures, and ensuring seamless coordination among its members to address all investment-related transactions.