“Reviving Global Trade through Strengthening Regional Economic Partnership”
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Ladies and Gentlemen, good afternoon!
I wish to thank our friends and partners in Indonesia, especially Minister Muhammad Lutfi of the Ministry of Trade, for inviting the Philippines as one of the speakers in the Trade, Tourism, and Investment Forum of this year’s digital edition of Trade Expo Indonesia.
It is encouraging to see that despite the limitations due to the pandemic, both our countries have maximized the benefits of going digital particularly in trade promotion activities like the Trade Expo Indonesia. In the Philippines, the same is being done in our export promotion signature events such as the Manila FAME and IFEX Digital Edition.
Although separated by seas, Indonesia and the Philippines are very close neighbors with similar culture and values, and together we account for more than half of ASEAN’s population, which clearly provides an impetus for more collaboration and cooperation on areas of mutual interest such as e-commerce, digital economy, and halal.
The Philippine trade and investment policies are basically people-centered and aimed at promoting inclusive growth. We adhere to an open market policy and sustainable development, and will remain a strong mover of an open, free, fair, transparent, inclusive, rules-based, and non-discriminatory trading system.
We are one of the few countries that did not impose any export restrictions and even removed import licensing requirements and lowered tariff rates in key agricultural products (like rice and meat) in the time of the global pandemic because we are deeply committed to keeping our market open for trade and investment. Thus, we continue to strengthen initiatives that ensure unhampered flow of goods and services.
We are also working towards the full implementation of the Regional Comprehensive Economic Partnership or RCEP as it is now with our Senate for concurrence. Our President Rodrigo Roa Duterte has already ratified the RCEP, he also highlighted the significance of RCEP in his talk before the ASEAN Summit, saying the Agreement will bolster regional economic integration and strengthen supply chain connectivity to boost our post-pandemic economic recovery.
Our vision toward economic recovery is anchored on a strategy called REBUILD— or “Revitalizing Businesses, Investments, Livelihoods, and Domestic Demand”—revitalizing consumption to boost demand, and empowering production capacities such as those in agriculture, industry, and services to meet the recovery in demand. This strategy provides interventions in the demand and supply sides of the economy, targeting consumers, industries, micro, small, and medium enterprises (MSMEs).
One of the growth engines of our country’s economy today is e-commerce. Amid the pandemic, e-commerce adoption in the Philippines has grown from 70% in 2019 to 76% in 2020 and 80.2% in 2021. Our country’s data center market has also grown considerably, and this has led us to launch a campaign highlighting the Philippines as the next strategic hyperscaler hub in the Asia Pacific region.
Domestically, the Philippines has been working to facilitate greater adoption of the digital economy through initiatives that include the development of an e-commerce roadmap, as well as current legislative efforts such as an Internet Transactions Act; the ratification of the UN Convention on Electronic Communications in Electronic Contracts; partnerships with the private sector to facilitate onboarding programs; and capacity-building activities for our micro, small and medium enterprises (MSMEs). Our key government services have likewise gone digital, such as the Integrated Registration and Information System, and Business Name Registration Next Generation System.
In line with economic recovery efforts, we have recently passed the Corporate Recovery and Tax Incentives for Enterprises or CREATE Law which, among others, reduces Corporate Income Tax rate from 30% to 25%. Reforms are also underway to further enhance the investment regime in the country, as President Rodrigo Roa Duterte certified as urgent the proposed amendments to the Retail Trade Liberalization Act, Public Service Act, and Foreign Investments Act.
The Philippines recognizes that Halal is a must in entering the Indonesian market and is aware that Indonesia is currently implementing the Halal Law No. 33/2014 which requires products entering the country to be Halal-certified. Thus, we wish to express our appreciation to Indonesia’s Halal Product Assurance Organizing Agency for your support and participation in a number of halal-related webinars we have conducted to inform PH exporters of the halal regime in Indonesia.
Meanwhile, the tourism sector in many countries has been one of the worst hit sectors in this pandemic. Our tourism sector is no exception, and we have implemented recovery strategies that include a vaccination program for tourism workers and a tourism response and recovery program. Just recently we have eased our quarantine guidelines for fully vaccinated individuals coming from green or yellow list countries.
Lastly, the Philippines stands committed to the Memorandum of Understanding we have signed with Indonesia on Investment Promotion Cooperation in 2020. The memorandum of understanding (MOU) includes the exchange of investment information such as policies, regulations and, investment licensing procedures as well as potential investment opportunities, including the realization of foreign investment from each country. It also covers promotional cooperation and investment facilities from the Philippines to Indonesia and vice versa, as well as working together in conducting business meetings such as seminars, roadshows, and business match-making meetings.
Together, let us work to build a more vibrant and responsive economic partnership.
Thank you and mabuhay tayong lahat! ♦
Date of Release: 21 October 2021