In his meeting with a delegation from the Kansai Economic Federation based in Osaka, Japan, Dominguez emphasized that the domestic economy offers wide business opportunities for foreign investors.
He noted that the country has higher consumer demand, all thanks to tax reforms and the government’s aggressive infrastructure program, and also highlighted improvement in peace and order.
What Can Japanese Investors Expect from the Philippine Economy?
Among the benefits that Dominguez underscored was the second package of President Duterte’s tax reform package, which was designed to cut corporate income tax rate and rationalize investment incentives. Dominguez assured Japanese businesses that this particular tax reform would expand opportunities for them to conduct business in the Philippines.
He also said fiscal incentives under the tax reform program would not be removed. Instead, these would be rationalized or improved to ensure they were transparent, performance-based, time-bound, and targeted.
Dominguez also urged the KANKEIREN members, who were led by their chairman Masayoshi Matsumoto, to look at the big picture.
“Rather than look at the effect of tax reform on some companies, look at the effects of tax reform on the entire economy because it is making it better. Instead of looking at the place where you might lose, look at opportunities in the larger economy,” he said.
Matsumoto, on the other hand, said he was “very satisfied” with Dominguez’ explanation on the need for rationalizing fiscal incentives in the Philippines.
Dominguez also said the Philippine economy is fast-growing and the government is working to ensure investors will feel welcome in the country.
“We’d like to make you feel welcome, but what will make you feel welcome is the improving disposable income of our people, improving infrastructure, improving peace and order, and I’m sure many Japanese companies can certainly benefit here,” he said.