PH Expects Over 22,000 Jobs from USD14.36B Investment Deals in Indo, Singapore State Visits

MANILA—The USD14.36 billion (PHP804.78 billion) in investments secured from the state visits to Indonesia and Singapore is estimated to generate more than 22,000 jobs in the Philippines, Department of Trade and Industry (DTI) Secretary Alfredo Pascual said Thursday.

The trade chief also presided over two roundtable meetings with select business associations and chambers of the two countries. In these meetings, the Philippines enumerated the potential trade and investment opportunities in the country.

Secretary Pascual, together with the country's economic officials, accompanied Philippine President Ferdinand Marcos Jr. on his state visit to Indonesia and Singapore from September 4 to 7, 2022.

The President said the Philippine delegation managed to seal a total of 10 Letters of Intent (LOI) and 12 Memorandums of Understanding (MOU) with 22 Indonesian and Singapore investors in the sectors of renewable energy, data centers, e-commerce, broadband technology, start-ups, government housing, and agriculture.

Describing his back-to-back visits to Indonesia and Singapore as worthwhile, the President said, “These investments, if we put it all together, value USD14.36 billion or PHP804.78 billion. This will support our country's economic recovery efforts and create more jobs for Filipinos here in our country.”

On behalf of the country, Secretary Pascual signed the MOU for Cooperation in the Development and Promotion of the Creative Economy with Indonesia. Among others, the MOU is positioned to generate and develop more jobs in the Philippines’ creative sector.

In his speech at the Philippine Economic Briefing in Singapore yesterday, September 7,Secretary Pascual highlighted the new administration’s vision of an economy driven by science, technology, and innovation (STI).

“We will build a dynamic industry ecosystem that would generate quality and higher-paying jobs, advance environmental sustainability, and ensure shared prosperity for all,” the trade chief told bankers and businessmen in Singapore.

Likewise, Secretary Pascual underscored the DTI’s strategic economic priorities driven by industrialization and digitalization. He cited measures that will further boost the Philippines’ foreign direct investments (FDIs): the Corporate Recovery and Tax Benefits for Enterprises (CREATE Law), the potential ratification of the Regional Comprehensive Economic Partnership (RCEP), and the earnest negotiation efforts of DTI’s foreign-based trade service officers.

“The Philippines is open for business. Recent policy reforms, particularly on foreign investment ownership and other restrictions, as well as on incentives, have made the Philippines more conducive for foreign businesses. Together, we will make it happen in the Philippines,” Secretary Pascual underscored.

The state visits updated the international business and financial communities in Indonesia and Singapore on the Philippines' economic performance, investment opportunities, and the administration's socio-economic agenda.

DTI Chief Pushes for Pragmatic Direction in RCEP Deal

Trade and Industry Secretary Ramon M. Lopez urged his fellow ministers to be more realistic to conclude the Regional Comprehensive Economic Partnership or RCEP.

Sec. Lopez represented the Philippines (PH) during the 5th RCEP Intercessional Meeting in Tokyo on June 30 to July 2, 2018, where he joined Japan Prime Minister Shinzo Abe, ASEAN Secretary-General Dato Lim Jock-Hoi, and trade ministers from the 16 RCEP Participating Countries (RPC), namely the ASEAN 10 and ASEAN free trade partners: Australia, China, India, Japan, South Korea, and New Zealand. The group targets to finish negotiations this year to finalize the agreement by next year.

“It is about time that we shift gears and lean towards being more realistic than idealistic. While we attend to our own interests, we should also remember that a mutually-beneficial agreement requires trade-offs,” said Sec. Lopez.

“We should also keep in mind that this mega-regional trade pact should be inclusive and progressive and should cater not only to today's generation but also of the future,” he added.

The free trade agreement that began negotiations in 2013 covers trade in goods, trade in services, investment, economic and technical cooperation, intellectual property, competition, dispute settlement and other issues. On trade in goods, some countries' submissions were still below the targeted 92% for tariff elimination. RPCs committed to submit improved offers by the middle of July.

Meanwhile, Sec. Lopez commended the progress on e-commerce for closing several articles in the RCEP Key Elements Paper. He said that e-commerce significantly lowers the barriers to entry and operating costs for businesses, particularly Micro, Small and Medium Enterprises (MSMEs), which comprise 99.6% of all registered businesses in PH.

The RPCs will meet again in Singapore this August to assess the outcome of the 23rd round of negotiations in Bangkok, Thailand.

Once concluded, RCEP will be one of the biggest free trade agreements with the 16 participating countries accounting for almost half of the world population, 31.6% of global output, 28.5% of global trade, and a fifth of the global foreign direct investment inflows as of 2016.