Philippine Embassy, Kuala Lumpur

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The Philippine Trade & Investment Center (PTIC) in Kuala Lumpur, is the representative in Malaysia of the Philippine Department of Trade & Industry (DTI).

Its mission is focused on the following:

• the promotion of Philippine exports of products and services to Malaysia;
• the promotion of Malaysian investments into the Philippines;
• commercial intelligence for the Philippine private sector; and
• assistance in bilateral and multilateral trade and economic negotiations

Office Suite 19-8-5 UOA Centre

19 Jalan Pinang, 50450 Kuala Lumpur

telephone no. : (603) 2164.3861

fax no. : (603) 2164.3863

E-mail: dtikl@streamyx.com

 

Mr. Eric C. Elnar Commercial  Attaché

Ms. Louie Brigida R. Quero-Lee

Trade Assistant

The Philippine Trade & Investment Center (PTIC) Kuala Lumpur offers information, assistance and advice on doing business with and in the Philippines.

• Priority Export Products & Services
• Identification of Prospective Philippine Suppliers
• Trade Policies
• Trade Statistics
• Trade Events in the Philippines
• Import Facilitation
• Organization of Buying Missions to the Philippines

• Priority / Preferred Areas for Foreign Investments
• Investment Policies, Regulations & Procedures
• Incentives for Foreign Investments
• Identification of Potential Filipino Partners
• Industrial Estates, Export Processing Zones
• Operating Costs in the Philippines
• Investment Missions to the Philippines
• Investment Facilitation

• Trade Policies, Regulations & Procedures in Malaysia
• Identification of Potential Malaysian Buyers and Business Partners
• Commercial & Investment Intelligence
• Trade Fairs, Exhibitions & Missions to Malaysia
• Export Facilitation

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Quality Manpower and Resources

The Filipino workforce is one of the most compelling advantages the Philippines has over any other Asian country. With higher education priority, the literacy rate in the country is 94.6% - among the highest. English is taught in all schools, making the Philippines the world's third largest English-speaking country. Every year, there are some 350,000 graduates enriching the professional pool.

Strategic Business Location

The Philippines is located right in the heart of Asia - today the fastest growing region. It is located within four hours flying time from major capitals of the region. Sited at the crossroads of the eastern and western business, it is a critical entry point to over 500 million people in the ASEAN market and a gateway of international shipping and air lanes suited for European and American businesses.

Liberalized and Business-Friendly Economy

An open economy allows 100% foreign ownership in almost all sectors and supports a Build-Operate-Transfer (BOT) investment scheme that other Asian countries emulate. Government corporations are being privatized and the banking, insurance, shipping telecommunications and power industries have been deregulated. Incentive packages include the corporate income tax, reduced to a current 32%, with companies in the Special Economic Zones are subject to only 5% overall tax rates. Multinationals looking for regional headquarters are entitled to incentives such as tax exemptions and tax and duty-free importation of specific equipment and materials.

Developing Infrastructure for Global Growth

A well-developed communication, transportation, business and economic infrastructure links the three major islands and distinguishes the Philippine economy. Highly accessible by air, water and cyberspace, liberalization of inter-island shipping and domestic aviation further sparked improved facilities and services. The container terminals are suited to handle cargo traffic at the highest levels of efficiency.

Communication provides redundant international connectivity 24/7 with fiber optic cable as primary backbone network and satellite as backup. Economic reforms emphasize regional growth, converting remote areas into business centers. The landmark BOT legislation allows private investors to build and operate infrastructure, then turn it over to the Philippine government after a set period of time.

Hospitable Lifestyle

Discover the best of sun, sea, sand and style in the tropical setting teeming with the best of western amenities. The Philippines is second home to expatriates who enjoy the company of the warmest people in the region, the country's openness to varied cultures and a decidedly global outlook. Expats enjoy accessible and affordable luxuries - business centers, housing, schools, hospitals, shopping malls, hotels and restaurants, beach resorts, and recreation centers.

Unlimited Business Opportunities

As Asian economies integrate within the vast framework of the ASEAN Free Trade Agreement (AFTA), the Philippines is the natural and most strategic location for firms that want access to the large ASEAN market and its vast trade opportunities. The Philippines has enhanced and primed up various areas for investors and offers a dynamic consumer market accustomed to an array of product choices created by a competitive domestic economy.

A Checklist of Business Requirements

This is a general guide for investors on the requirements for doing business in the Philippines.

For a particular requirement, the checklist specifies and links the website of the agency concerned. For quick assistance, contact the Board of Investments' One Stop Action Center (BOI-OSAC) at tel (63-2) 897 5582 or at OSAC@boi.gov.ph.

General Registration Requirements
Operational Requirements
Special Permits / Clearances for Selected Export Businesses
Special Permits / Clearance / Registration

General Registration Requirements

Investors setting up business in the country have to comply with the following general requirements:

Registration of corporations and partnerships
Securities and Exchange Commission (SEC)

Registration of business name/single proprietorship
Department of Trade and Industry

Registration for availing of incentives under Executive Order 226 or the Omnibus Investment Code.
Board of Investments (BOI)

Registration with other Investment Promotion Agencies for availing of incentives
Philippine Economic Zone Authority (PEZA)
Subic Bay Metropolitan Authority (SBMA)
Clark Development Corporation (CDC)
Cagayan Economic Zone Authority
Phividec Industrial Authority
Zamboanga Economic Zone Authority

Registration of foreign investments for purposes of capital repatriation and profit remittances
Bangko Sentral ng Pilipinas (BSP)

Securing Tax Identification Number (TIN)
Bureau of Internal Revenue (BIR)

Securing locational clearance/business permit for firms locating in Metro Manila
Metro Manila Development Authority (MMDA)
/City Hall/Municipal Offices in the localities where the business will be set up

Securing an employer's SSS number
Social Security System (SSS)

Securing membership in the government health care benefits system
Philippine Health Insurance Corporation

Securing electric services connection
Manila Electric Co. (MERALCO) for business in MERALCO franchise area; local electric utility firms for companies locating in non-MERALCO franchise area

Securing Water services
Maynilad Water Company and/or Manila Water Company for firms locating in Metro Manila and Local Water Utilities Administration (LWUA) for firms locating outside Metro Manila

Securing Telephone services connection
Philippine Long Distance Telephone Co. (PLDT), Bayantel, Digitel, Smart and Globelines

Investment Incentives

Two agencies under DTI, the Board of Investments (BOI) and the Philippine Economic Zone Authority (PEZA) give separate incentives to investors as long as they meet a number of criteria.

Board of Investments (BOI)

The BOI, the lead investment promotion agency of the government issues the Investment Priority Plan (IPP) annually. Under Book I of the Omnibus Investments Code, an investor may enjoy certain benefits and incentives provided he invests in preferred areas of investments found in the current IPP. Incentives include tax exemptions and concessions. An enterprise may still be entitled to incentives even if its business activity is not listed in the IPP as long as it has:

• At least 50% of its production is for exports, if Filipino owned
• At least 70% of its production is for exports, if majority foreign-owned (or more than 40% equity)

Philippine Economic Zone Authority (PEZA)

The PEZA was established under Republic Act 7916 or the Special Economic Zone Act of 1995. Its main mission is to spur the growth and diversification of exports by attracting foreign investors to locate their manufacturing plants, their regional warehouses or their IT companies in the country's economic zones. Currently, there are 150 economic zone locations in different sites all over the country.

BOI Incentives
PEZA Incentives

Source:  http://www.dti.gov.ph

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Importing from the Philippines

Malaysian imports from the Philippines amounted to US$ 1.377 billion in 2000. The top ten (10) imports were as follows:

Electronics	US$ 1,176 M
Coconut products	US$ 32 M
Automotive parts	US$ 18 M
Petroleum	US$ 13 M
Garments	US$ 8 M
Base metal ore & concentrates	US$ 8 M
Paper & paper products	US$ 6 M
Cereal & flour preparations	US$ 6 M
Cosmetics & personal care	US$ 5 M
Chemicals	US$ 5 M

The PTIC intends to promote increased Malaysian imports of the following Philippine  products and services:

• Consumer Manufactures
• Gifts, Toys & Housewares
• Garments
• Fashion Accessories
• Furniture
• Food & Food Preparations
• Industrial Manufacturers
• Machinery & Transport Equipment
• Natural Rubber
• E - Services

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The Philippine economy has been liberalized and allows foreign investors to participate in nearly all aspects of business.

The Philippines invites Malaysian investments particularly in the following areas:

• Electronics (Support Industries)
• Automotive Parts & Components
• Agri-business (including plantations and processing of palm oil) and rubber)
• Processed Food
• Tourism
• Infrastructure
• Construction

The Philippines offers foreign investors a domestic market of 74 million, available English-speaking skilled manpower, competitive incentives, world-class production facilities and a better haven for expatriates. The Filipino worker is the country’s greatest asset. Its quality and availability have been consistently rated as the best in Asia.

Malaysia is the 8^th largest trading partner of the Philippines.

Strategic alliances between Malaysian and Filipino companies are being promoted to strengthen international competitiveness, to expand Philippine exports to Malaysia and to the rest of the world and to preparation for the full implementation of the ASEAN Free Trade Area (AFTA).

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As of 07 Jan 2009
Note: the calendar of events is subject to change

For inquiries, please contact
(+63 2) 8312201 ; 8323956 ; 8312382 or e-mail at info@citem.com.ph

More information on Philippine trade events see  http://www.citem.com.ph

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What publications are available on Philippine exporters / companies?

The following publications, which are available at PTIC – Kuala Lumpur, are useful reference materials for obtaining information on Philippine exporters/ companies:

• The Buyers’ Guide
• PLDT Directories

• Top 5000 Corporations

Background information on companies can be obtained through the industry associations, the Securities & Exchange Commission or through private companies such as the CIBI. The PTIC can assist in obtaining background information particularly on Philippine exporters.

The Tariff & Customs Code of the Philippines is the reference for tariff rates. A copy is available at PTIC. For any inquiry, it is important that the HS code of the product is identified.

The PTIC – Kuala Lumpur maintains a compilation of selected Philippine trade events. Information may also be obtained from  CITEM at http://www.info.com.ph/~infolink.

The Philippines welcomes foreign investments in practically all areas except those activities found in the Foreign Investments Negative List (FINL). The PTIC -Kuala Lumpur can provide detailed information on the  FINL and other basic policies on foreign investments in the Philippines.

What are the guidelines / procedures for setting up a company in the Philippines?

A foreign company intending to do business in the Philippines must register with the Securities & Exchange Commission. The basic requirements for registration include:

• accomplished SEC application form
• name verification slip
• certification or the board resolution authorizing the establishment of a branch/representative office in the Philippines; designated resident agent
• financial statements
• certified copies of articles of incorporation
• proof of inward remittance
• accomplished foreign company information sheet

For further information, contact the PITC or view http://www.sec.gov.ph

The PTIC is the frontline of a network that supports foreign investors in the Philippines. In the Philippines, the network includes the BOI that has established a One Stop Action Center for Investments. The network further extends to the regional and provincial offices of the DTI.

What  incentives are available for investors?

Investments in activities listed in the annual Investment Priorities Plan are entitled to incentives subject to registration with the  BOI. Moreover, investments in export processing zones, special economic zones (such as Subic and Clark) may also avail of incentives.

The incentive package includes, among others:

• income tax holiday
• tax & duty free importation of capital equipment (under PEZA)
• tax credits on domestic capital equipment
• tax credit on taxes and duties on raw materials
• employment of foreign nationals

All foreign investors and enterprises in the Philippines are entitled to basic rights and guarantees which are provided for in the Philippine Constitution.

• Right to Repatriation of Investments
• Right to Remittance of Earnings
• Right to Foreign Loans and Contracts
• Right to Freedom from Expropriation
• Right to Non-Requisition of Investments

Citizens of ASEAN member countries do not need visas when travelling within ASEAN for short business visits.

Please provide indications of operating costs in the Philippines.

The BOI has basic information on Operating Costs in the Philippines. Please see http://www.boi.gov.ph.

What are the sources of information on Malaysian buyers / companies?

The PTIC – Kuala Lumpur can assist in identifying Malaysian importers. Its resources include a compilation of industry directories and a network of contacts in business organizations.

The PTIC – Kuala Lumpur can assist in assessing the market for specific products in the Malaysian market.

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Links

Department of Trade & Industry (Philippines) http://www.dti.gov.ph

Board of Investments of the Philippines http://www.boi.gov.ph

Philippine Export Zone Authority http://www.webquest.com/-peza

Clark Development Corporation (c/o Bases Conversion Development Authority) http://www.bcda.gov.ph

Subic Bay Metropolitan Authority http://www.sbma.com

Cebu Investment Center e-mail: cipc@skyinet.net

Growth with Equity in Mindanao http://www.mindanao.org

Mindanao Investors Assistance Center http://www.dti.gov.ph/Region11/

Center for International Trade Expositions & Missions www.info.com.ph/~infolink

Philippine Exporters Confederation  http://www.philippines1.com/philexport/

Philippine Chamber of Commerce & Industry   http://www.philcham.com.ph

Securities & Exchange Commission http://www.sec.gov.ph

National Economic Development Authority http://www.neda.gov.ph

National Statistical Coordination Board http://www.nscb.gov.ph

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Malaysian Investments in the Philippines

• The Philippines experienced a decline in overall foreign direct investments, including that of Malaysian investment from 1999 to 2000.

• The most recent major Malaysian investor pull-out was that of the Ekran Berhad Casino Resort worth PHP1.2B in Samal Island last July 2000.  Economic reasons were cited for the closing of the casino albeit the political situation prevailing at that time most certainly affected the business activities of the resort.  With the restoration of political and economic stability, Malaysian investors may once again consider the Philippines as an attractive investment destination.  To give emphasis on the new thrust of the present administration to attract foreign investors, President Arroyo sent her special envoys to selected countries.  Mr. Paul G. Dominguez, a prominent Mindanao businessman, was assigned for Malaysia.  He visited Kuala Lumpur on 7-9 March to call on Malaysian officials headed by Prime Minister Dato Seri Dr. Mahathir Mohamad.  He also met with Malaysian investors, including Tan Sri Ting Pek Khiing of Ekran Berhad, the developer of Samal Casino Resort which was put on hold.  As a result, fresh talks were carried out in the third week of March 2001 in Davao between  representatives of Ekran Berhad and Mindanao Economic Development Council (MEDCO) for the possible reopening of the resort.

last updated on 28 January 2009

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