The Philippines has demonstrated its readiness to become an investment hub in the region as it joined other countries in signing an agreement to update the Asean Comprehensive Investment Agreement (ACIA).
“This agreement makes it easier for investors to identify sectors open for investments in the Philippines, signaling a readiness to be a leader in the global economic and strategic manufacturing hub,” said Cristina Roque, secretary of the Department of Trade and Industry (DTI), commenting on the Fifth Protocol to amend ACIA which the country signed in Laos last October 9.
Roque said Asean, as a whole, has made significant progress in several areas of economic integration.
DTI undersecretary Allan Gepty, said the protocol presents a more stable and predictable business environment necessary to attract more investments in the Philippines.
Gepty said the submission of the Schedule of Reservations pursuant to the Fifth Protocol would provide greater certainty and transparency in determining which sectors are open for investments because those sectors with market access restrictions or limitations will be accordingly listed.
“This is aligned with the country’s policy to pursue an advanced, purposive and forward looking agreement,” Gepty said.
He added: The ACIA sends also a strong signal to the investment community of the country’s readiness to serve as an investment hub in the region especially for smart and sustainable manufacturing.”
The Asean secretariat said the Protocol enhances certainty and transparency to investors on the investment regime in Asean.
The amendment aims to ensure the ACIA remains relevant, modern, forward-looking and more adaptive to business landscape.
More specifically, the Protocol provides for the operationalization of the transition of the current single-annex ACIA reservation list to a two-annex negative list, including the reservations against the obligation on Prohibition of Performance Requirements mandated under the 4th Protocol to Amend the ACIA; the expansion of the scope of the ACIA; and the application of the ratchet mechanism to some member-states.
Investments in Asean increased by less than 1 percent in 2023 to $230 billion, another record year, the Asean Investment Report said.
The report said intraregional investment fell 35 percent to $22 billion, with most member-states receiving a declining intra-Asean investment.
