Investments

The government is considering to provide incentives to the opening of the smallest business units such as the operations of sari-sari stores and tricycle services which up to now many are considered part of the so-called underground economy since these do not pay income taxes.

As the retention and continuous generation of local employment becomes the top priority amid these hard times, this year’s Investment Priorities Plan (IPP) would not only give perks to investment-generation activities but would also measure which among these would save jobs, the Board of Investments (BOI) said.

Investments in the country’s business process outsourcing (BPO) industry is expected to reach $60 million this year as the Philippines remains the most stable country in the Southeast Asian region, international property services firm CB Richard Ellis (CBRE) said.

THE Board of Investments (BOI) said it would fast track the approval of the 2009 Investment Priorities Plan (IPP), adding it plans to provide incentives to firms that would generate or save jobs in spite of the global economic slowdown.

The Board of Investments is drawing the framework for the 2009 Investment Priorities Plan that will focus in generating new investments and saving jobs amid the harsh business environment.

Bangko Sental ng Pilipinas (BSP) Governor Amando M.Tetangco Jr. said yesterday that Japanese investors are still largely optimistic on the Philippines as the country’s economic fundamentals held steady in 2008.

HEIGHTENED risk aversion led to net outflows of foreign investments in Philippine listed shares and other financial assets last year, according to the Bangko Sentral ng Pilipinas (BSP).

No new investments investments are expected in the local electronics industry as a result of a sharp cut in demand due to the global economic downturn, the Semiconductors and Electronics Industries of the Philippines (SEIPI) said yesterday.

The government reported over 3,000 workers from 15 electronics and semiconductor companies inside different economic zones across the country have been laid off thus far as a result of the business slowdown triggered by the global financial crisis.

Foreign direct investments (FDIs) dropped by nearly 47 percent in the first 10 months of 2008, reaching only $1.418 billion from $2.653 billion during the first 10 months of 2007.

The Board of Investments plans to give companies flexibility in their fiscal incentives to support them amid the difficult business environment.

Investments at the Clark Freeport Zone are expected to reach $3 billion by 2010, Clark Development Corp. (CDC) president Benigno N. Ricafort said.

Privately held businesses (PHB) in the Philippines ranked third in the optimism/pessimism barometer for the next 12 months of international group Grant Thornton, although the country’s rating slipped to 65 percent.

The bears ruled the local equities market in 2008, crashing down stocks to new lows as investors headed for the exits following the economic crisis in the United States and other developed countries.

The government must give more incentives to encourage local carmakers to manufacture more vehicles locally, Isuzu Philippines Corp. president Keiji Takeda said recently.

During these challenging times, foreign and local investors in the Philippines are looking into ways to cushion the effects of the global financial crisis on their businesses. For some, merger or consolidation of corporations is seen as a viable solution. But to the not so fortunate, closure or dissolution of a corporation is inevitable.

The risk aversion of foreign investors should not be allowed to spill over to local investors whose loss of confidence could trigger a drastic drop in economic activity, the country’s top banker said.

Investment commitments have reached P391 billion, as businessmen remain upbeat on the country’s economy, the Department of Trade and Industry (DTI) said.

Portfolio investments continued to flee the country in November, suffering from tightening global liquidity that persisted despite efforts of central banks to release more funds into the global financial system.

Foreign direct investments (FDIs) tumbled by 45 percent to $1.387 billion during the first nine months of this year from $2.54 billion a year ago as foreign investors held back plans to expand their Philippine operations.

SINGAPORE—The Philippines is perceived as Asia’s most corrupt economy, with Thailand and Indonesia ranked second, a survey of 1,476 expatriates showed.

The government reported a discrepancy of at least P61.5 billion in the amount of tax incentives granted by the Department of Trade and Industry (DTI) and the claims reported by the Bureau of Internal Revenue (BIR).

PHILIPPINE stocks fell by the most in nine years as Tuesday’s plunge in the Chinese stock market triggered a global equities selloff. Philippine Long Distance Telephone Co. and Bank of the Philippine Islands slumped.

The government is intensifying its campaign to promote the Philippines as an ideal retirement destination.

Share prices rose for a third day, lifting the index to its highest close in almost seven years after the government said its deficit in the first quarter was probably lower than earlier forecast.