Push Admin

Cutting incentives not a deal-breaker for investors, says AmCham official

Article (news)

ABS-CBN News

<figure class="op-interactive"><div id="IVS_ABS_Body_Video_1_Container"> <ivs-player id="IVS_ABS_Body_Video_1" data-ivs-spid="3001339" data-ivs-key="e8c22c015ca9eafa76f1e3edfa03c603" data-ivs-vid="1394910" data-ivs-floating="1"></ivs-player> <script src="https://player.ivideosmart.com/ivsplayer/v4/dist/js/iframe-parent.js"></script> <script src="https://player.ivideosmart.com/ivsplayer/v4/dist/js/loader.js"></script> </div></figure><div class="iwantbar">Watch more in <a href="//www.iwantv.com.ph/">iWantv</a> or <a href="//tfc.tv/">TFC.tv</a></div><p>MANILA - Fiscal incentives are good but many foreign investors can also live without them as long as infrastructure improves at a faster pace, an official of the American Chamber of Commerce of the Philippines (AmCham) said Wednesday. </p><p>AmCham board member and 3M country manager Ariel Lacsamana said a lot of companies choose to invest in the Philippines because of the country&#x27;s growth prospects and its labor force. </p><p>And removing fiscal incentives would not necessarily drive them away from the Philippines, Lacsamana said in an interview with ANC&#x27;s Market Edge. <br/> <br/>&quot;It makes it less attractive but not unattractive,&quot; Lacsamana said. </p><p>The government is looking to &quot;modernize&quot; fiscal incentives in the proposed Tax Reform for Attracting Better and High-quality Opportunities or <a href="https://news.abs-cbn.com/video/news/08/08/18/alamin-ano-ang-nilalaman-ng-trabaho-bill">TRABAHO Bill</a>.</p><p>Some business groups have warned that removing the incentives may lead firms to <a href="https://news.abs-cbn.com/business/08/01/18/euro-chamber-sees-potential-challenges-with-train-2">relocate </a>their operations to other Southeast Asian countries. </p><p>Lacsamana, however, said many firms will choose to stay because of the Philippines&#x27; growth prospects. </p><p>&quot;If we want to grow, this is the place where we can have a good chance of growing. Plus we&#x27;ve got a great labor force.&quot;</p><p>Filipinos, he said, have an advantage over other countries because of their proficiency in English and their ability to quickly adapt to new technologies. </p><p>&quot;Absorption of new technology, new knowledge was baffling,&quot; he said. </p><p>But Lacsamana also said the country&#x27;s infrastructure remains a problem. </p><p>While he lauded the government&#x27;s efforts to roll out new infrastructure, this was not happening fast enough, he said. For one, port congestion remains a problem, he cited. </p><p>During the Christmas season, Lacsamana said firms were encountering delays of three to four weeks before they could get their raw materials released. </p><p>&quot;We were hoping that that decongestion would at least start showing in the middle of last year. That didn&#x27;t happen.&quot;</p><p>Logistics also remained very expensive, with shipping from Manila to Cebu or Davao reaching two-thirds of the cost of international freight.</p><p>Lacsamana said firms in export processing zones near ports were doing better as they could avoid congestion. </p><p>Electricity was also a concern for foreign investors as the cost of power in the Philippines remains one of the most expensive in the region. </p>

<p>Fiscal incentives are good but many foreign investors can also live without them as long as infrastructure improves at a faster pace, an official of the Amercian Chamber of Commerce of the Philippines said Wednesday. </p>

Fiscal incentives are good but many foreign investors can also live without them as long as infrastructure improves at a faster pace, an official of the Amercian Chamber of Commerce of the Philippines said Wednesday.