SONA(State Of the Nation Address) Assignment #7 In MIS
Investment and Trade

Investment. The investment climate created by the Arroyo Administration’s fiscal consolidation and establishment of strong macroeconomic fundamentals continued to support investment inflows in the country.

In 2001, the institution of the Investments Relations Office (IRO) under the Bangko Sentral ng Pilipinas (BSP) developed and improved a coordinated approach to the dissemination of timely and comprehensive economic information for the use of analysts and investors in making investment recommendations and decisions.

Additionally, the Administration’s policy to simplify investment registration procedures, such as the establishment of the National Economic Research and Business Assistance Centers (NERBACs), helped improve investment transactions in the country. From 2007 to May 2009, fifteen (15) NERBACs were established nationwide to facilitate investment promotion in the regions and assist Investment Promotion Units (IPUs). It also enhanced the system of linkages and networking between and among government agencies in tackling investment-related issues and concerns affecting foreign and local investors in the Philippines, among others.
As a crucial component to improve industry competitiveness and reduce cost of doing business, investors’ concerns on modernizing infrastructure facilities in the country were addressed by prioritizing projects in the construction and rehabilitation of toll roads (e.g. Daang Hari-SLEX Link Road Project), expressways, among others.

Cyber Corridor

The Cyber Corridor, which aims to create an information and technology-based knowledge economy through facilities that enhance interconnectivity and research and development initiatives, traverses all four geographic super regions from Baguio to Cebu to Davao.
The Cyber Corridor is being developed through public and private investments in the areas of ICT, education, and training.
The pilot-testing of a major ICT project, the Bureau of Internal Revenue’s (BIR) Revenue Watch Dashboard prototype system, was completed in May 2009. This web-enabled revenue monitoring tool aims to provide real time collection figures from the national level down to the Revenue District Office level.

Aside from the priority infrastructure projects in the Cyber Corridor, the Government also pursued other Information and Communication Technology-related projects that supported the development theme of the Cyber Corridor. The Government has established public calling stations, telecenters and community e-centers to address the uneven distribution of fixed telephone lines in the regions.
By 2008, the Administration has installed facilities to areas without communication channels yet, such as 875 telegraph stations for telegraphic transfer and social telegram; digital telephone exchanges in 103 localities; 538 public calling stations which serves people who cannot afford to subscribe telephone services and areas not covered by fixed line facilities; 1,422 Telepono sa Barangay (TSB) stations; and a Regional Government Telephone Service in Cauayan, Isabela.

Cyber Corridor is one of the Administration’s priority projects in which under the super regional development strategy of the Administration. This aimed at linking up the nation’s countryside with its growth centers through Information and Communication Technology (ICT) and the knowledge economy.

The Administration has been harnessing information and communications technology through the Cyber Corridor to promote e-governance to simplify and expedite transaction of frontline services.

BOI-PEZA Approved Investments
(Board of Investments-Philippine Economic Zone Authority)

• Investments approved by the Board of Investments-Philippine-Export Zone Authority (BOI-PEZA) grew almost three-fold from PhP182.84 billion in 2001 PhP443.15 billion in 2008. Some of the top investors from 2001 to 2008 include GN Power Ltd. Co., Masinloc Power Partners Co. Ltd., Globe Telecom, Emerald Energy Corporation, PNOC Petrochemical Development, JG Summit, Smart Communications Inc., Global Business Power Corp., Cebu Air, and Texas Instruments Philippines. The Manufacturing Sector remained to be the leading source of employment opportunities.



• The telecommunications industry gained momentum in 2001 when telecom giants such as Globe Telecom, Smart Communications and Digitel Communications poured in their investments which ventured towards Short Message Service (SMS) or commonly known as text messaging.


• In 2007, Texas Instruments (TI), considered as the world’s biggest mobile chip maker, invested US$1 billion worth of expansion project in the country. Described as one of the single biggest investments in the Philippine’s economic history, this gave signal that the country had found its niche as one of the best investment destinations in Asia.


• The continued expansion of the services sector is largely due to the rising investments in the call/contact centers and business process outsourcing (BPO) particularly in the areas of Software Development, Animation, Medical Transcription, and outsourcing services in Human Resources, Customer Service and Procurement, among others.

• From four (4) call centers operations with 2,400 employees in 2000, the industry remarkably grew in 2008 to 191 call centers in major areas in the country, generating 227,000 in local employment. Top contact centers in the country include Sykes, Convergys, Ambergis, and People Support. Moreover, companies that have set-up internal BPO operations in the country include HSBC, AIG Business Processing Services, Chevron Texaco, Procter and Gamble Asia Pt. Ltd., Shell Services, among others.

• Being significant drivers to growth and employment, the BPO and information technology-enabled services (ITES) sectors were prioritized in the government’s Investment Priorities Plan (IPP). Under the IPP, investors enjoy fiscal incentives such as income-tax holidays, exemption from taxes and duties on spare parts, among others.

The government also provided non-fiscal incentives to ICT investors, which include employment of foreign nationals in supervisory, technical, or advisory positions; simplified customs procedures; and, duty-free importation of consigned equipment.