Finance Secretary Ralph G. Recto has assured Singaporean investors that the much-anticipated enactment of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) will make doing business in the Philippines smoother than ever.

“The new amendments to the country’s fiscal incentives regime—known as CREATE MORE—are designed to attract even more Singaporean investors to lay down roots and flourish in the Philippines,” he said before over a hundred Singaporean investors at the 4th Philippine-Singapore Business and Investment Summit (PSBIS) held on September 19, 2024 at Shangri-La, Singapore.

Showcasing the Philippines’ more open and liberalized investment landscape, Secretary Recto highlighted that the CREATE MORE bill, which is expected to be passed within the year, will enhance both fiscal and non-fiscal incentives, resolve key investor concerns, and respond to emerging global developments

For instance, it will streamline business compliance by reducing documentary requirements.

A dedicated Registered Business Enterprise Taxpayer Service (RBETS) will be created to provide personalized tax compliance support for investors and serve as a one-stop-shop for the Bureau of Internal Revenue’s (BIR) services.

The bill also directly addresses investors’ concerns about value-added tax (VAT) by exempting export-oriented enterprises from paying it.

It also provides a more attractive incentive package for registered projects or activities with an investment capital exceeding about USD 260 million (PHP 15 billion).

Under the enhanced deductions regime, registered business enterprises (RBEs) will enjoy a 5% reduction in corporate income taxes, from 25% to 20%.

In addition, the maximum duration of tax incentives availment will be extended by 10 more years, from 17 years to 27 years. Another 10-year extension will be allowed for labor-intensive projects.

Meanwhile, RBEs will also benefit from the 100% deduction on power expenses—significantly cutting costs for the manufacturing sector.

The tourism sector will be given an additional 50% deduction for reinvestment allowances on priority tourism projects or activities.

The Finance Chief underscored that CREATE MORE will bolster the country’s investment attractiveness, enticing more Singaporean investors to the Luzon Economic Corridor.

“This will be a perfect nexus for Singaporean investors involved in manufacturing, semiconductor supply chains, renewable energy, and agribusiness,” he said.

“True to the bill’s name, we envision this new policy to CREATE MORE thriving economic corridors in every corner of the Philippine archipelago, with Singapore taking a leading role,” he added.

Apart from this, the Finance Chief highlighted the new Public-Private Partnership (PPP) Code that has made PPP involvements faster and easier.

He encouraged Singaporean investors to submit unsolicited proposals, respond to solicited ones, and explore more joint ventures with the Philippine government through the administration’s 186 flagship infrastructure projects (IFPs).

“As we aggressively enhance our logistics backbone and human capital through productivity-boosting investments, Singapore’s role has never been more crucial. We need more of Singapore’s cutting-edge expertise and technology for our 186 flagship infrastructure projects,” Secretary Recto said.

As the country modernizes major airports across the archipelago to welcome the post-pandemic tourism surge, Secretary Recto also emphasized that the Philippine government is looking for more participation from top-tier partners in Singapore like the Changi Airport Group, which has excelled in managing and operating the Clark International Airport.

“Given Singapore’s world-class expertise in aviation, both of us can lead ASEAN’s transformation into a global travel hub and drive the tourism boom across the region,” he said.

Secretary Recto also sought Singapore’s competitive advantage to help the government build more smart, modern, sustainable, and people-centered cities across the Philippines.

Meanwhile, the Finance Chief highlighted that the government is actively addressing bottlenecks and streamlining processes to clear the way for Singaporean investors’ seamless participation in high-priority sectors.

These include clean energy, critical minerals, retail, digital technologies, food production, financial services, pharmaceuticals, and many more.

With the Philippine Digital Infrastructure Project and the National Broadband Program in place, the Secretary said the Philippines is ready to become the hotspot for technology-driven businesses, from hyper-scale data centers to smart manufacturing and high-tech agriculture.

“We are eager to team up with Singapore’s start-up visionaries to unlock new frontiers in emerging technologies,” he said.

To fuel this digital transformation, Secretary Recto explained that the government has developed an Artificial Intelligence roadmap and strategy to upskill and retool the Filipino workforce.

“We are cultivating a new generation of research scientists, engineers, and R&D innovators who will power up your forward-looking enterprises,” he said.

“These reforms are just a fraction of the transformative changes underway in the Philippines to make us stand out as the most hospitable economy for Singaporean enterprises,” Secretary Recto stressed.

“We are committed to working non-stop until good becomes better and better becomes the best for business,” he added.

The Finance Chief pointed out that these reforms, along with the country’s booming economy and the strategic complementarities of Singapore and the Philippines, make the latter the most strategic haven for Singaporean investors.

“We are very eager to work closely with you and forge new partnerships to shape an exciting shared future for both Filipinos and Singaporeans,” he said.

The Philippines and Singapore have enjoyed 55 years of strong diplomatic ties, with Singapore being the country’s eighth-biggest trading partner; second-largest source of foreign direct investment (FDI) inflows; sixth major investor in the Philippine Economic Zone Authority (PEZA); and ninth top source of tourist arrivals.

The Summit was organized by the Philippine Embassy in Singapore and co-sponsored by BDO Unibank Singapore, BDO Private Banking Singapore, the National Development Company (NDC), and the Aboitiz Infra Capital.

This year’s Summit focused on sustainable infrastructure and green industries, and advancing innovation and manufacturing, to reflect the two countries’ continuing partnership in navigating global shifts in business and economic priorities and landscape.

Aside from Secretary Recto, key Philippine government officials who participated in the Summit were Department of Budget and Management (DBM) Secretary Amenah Pangandaman, National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan, Department of Education (DepEd) Secretary Juan Edgardo Angara, Department of Science and Technology (DOST) Secretary Renato Solidum Jr., and Philippine Ambassador to Singapore Medardo Antonio G. Macaraig.

Also joining the cabinet secretaries were Mindanao Development Authority (MinDA) Secretary Leo Tereso Magno, Bases Conversion and Development Authority (BCDA) President and CEO Joshua M. Bingcang, PEZA Director General Tereso Panga, and National Development Company (NDC) General Manager Antonilo DC. Mauricio.