Clark Freeport -- The president of the Clark Investors and Locators Association (CILA) is batting for more fiscal incentives to investors in Clark in order to boost more foreign investments and enable domestic investors to benefit from the economic growth in the Freeport.
"Government should give more, not remove, incentives to draw more foreign direct investment in Clark and in the country,” Frank Villanueva, CILA president, said during last Friday's forum of the Capampangan In Media, Inc. (CAMI) at the Bale Balita.
Villanueva noted that the Philippines lags behind her neighbors in terms of FDI as the latter offer higher tax incentives to foreign investors.
"In addition, these countries have other advantages like infrastructure, efficiency and ease in doing business," he said.
Villanueva said the government's Train 2 law (Tax Reform for Acceleration and Inclusion) has created a climate of uncertainty among foreign investors particularly, and it has stymied the flow of FDIs and expansion in Clark.
“There is at least one foreign investor Clark has put on hold its expansion plan because of the uncertainty caused by Train 2,” he added. He declined to name the company.
Meanwhile, Japanese investors had reportedly threatened to move their investments outside the Philippines if tax incentives will be removed as a result of Train 2.
Villanueva, at the same time, expressed regret over the junking of a bill authored by Senator Richard Gordon creating a regional investment hub in Central Luzon and providing more incentives to investors.
"It would have attracted more investments in Clark and Central Luzon,” he said.
Villanueva stressed that removing tax barrier and red tape in doing business for Clark locators will also benefit local businesses which can supply their substantial requirements instead of importing them.
"This idea is consistent with the vision of R.A. (Republic Act) 7227 for the local economies to benefit from the gains of the Clark Freeport,” he said, adding that more investments in Clark mean more job opportunities.
Villanueva, meanwhile, said that the New Clark City will create a first world type of environment in Central Luzon.
"It will be global in class such that it can be compared to the so-called smart cities in other countries,” he said.
He said this will further boost the Clark International Airport which he said is expected to reach three million passengers this year.
Villanueva expressed optimism that the country's economic managers will have a second look at Train 2.
"At the very least, we are glad that they are reviewing it,” he said.
As this developed, CILA has embarked on a project that will create an ecosystem that will encourage digital and technological innovations in Clark.
"What we are into is the establishing of a sort of incubating system for business apps and other digital creatives that draw more people, especially the young, into innovative projects to help domestic businesses, even foreign investors here,” Christian Manalac, CILA executive director, said. (NCS)