Foreign investments to create 3 million new jobs in the Philippines
The Joint Foreign Chambers of the Philippines (JFC) is setting a new target of US$50 billion in FDI, which aims to create 3 million new jobs by 2030.
American Chamber of Commerce of the Philippines (Amcham) president Peter Hayden said this at the 9th Arangkada Philippines Forum, adding that JFC’s 2010 goal of reaching US$10 billion in additional FDI and an additional 1 million jobs had been “achieved”.
“We can achieve this target, but only with the support of our many partners in the government and Philippine business groups. The potential for the Philippines is enormous if realised with the right policies and investments, including foreign investments,” he added.
To realise this potential, investments must be made in technology infrastructure, internet access, broadband technology, power generation and public transport.
Hayden’s remarks came after the Senate approved the Senate Bill 1357, or the “Corporate Recovery and Tax Incentives for Enterprises Act (Create),” the latest version of the second package of the government’s Comprehensive Tax Reform Program.
The Bill cuts the country’s corporate income tax (CIT) rate by 10 percentage points, from 30% to 20% for local businesses with net taxable income equivalent to 5 million pesos (US$252,600) and below, and with total assets (excluding land) not exceeding 100 million pesos (US$5 million). Other corporations will also benefit from their CIT rate being lowered to 25% from 30%.
The JFC is a coalition of the American, Australian-New Zealand, Canadian, European, Japanese and Korean chambers of commerce and Philippine Association of Multinational Companies Regional Headquarters.