PHILIPPINE TRADE & INVESTMENT CENTER (PTIC)

Philippine Embassy, Kuala Lumpur

Organization      Events    
  Services    Links
 Doing Business FAQs
Malaysian Investments in RP

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Organization

Mission

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:

Directory

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

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Services

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

Assistance to Malaysian Importers

Assistance to Malaysian Investors

Assistance to Philippine Businessmen

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Doing Business in the Philippines

(Why the  Philippines)

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:

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:

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Investing in the Philippines

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:

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.

Doing Business in Malaysia

Malaysia is the 8th 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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Events

2009 CITEM CALENDAR OF EVENTS

JANUARY

INTERNATIONAL JEWELLERY TOKYO
Fashion Lifestyle
Tokyo, Japan
21-24 January

FEBRUARY

E-SERVICES PHILIPPINES : 9TH GLOBAL SOURCING CONFERENCE AND EXHIBITIONS
Information and Communications Technology (ICT) Services
SMX Convention Center, Pasay City
9-10 February

GULFOOD
Processed Food
Dubai, U.A.E.
23-26 February

 

MARCH

NATIONAL TRADE FAIR (NTF) *
General Consumer Products
SMX Convention Center, Pasay City
12-15 March

ASIA'S FASHION JEWELLERY &     ACCESSORIES FAIR
Fashion Accessories
Hong Kong
4-8 March

HONG KONG INTERNATIONAL FILM & TV MARKET
Animation
Hong Kong
23-26 March

FOODEX
Processed Food
Chiba, Japan
3-6 March

GAME DEVELOPERS CONFERENCE
Information and Communications Technology (ICT) Services
San Francisco, U.S.A.
23-27 March

APRIL

MANILA F.A.M.E. INTERNATIONAL
Design Driven Products & Services–Giftware/ Holiday Décors, Home Furnishings, Wearables ;  Natural, herbal and organic personal care,  Cosmetics, Spa products and Hilot as a spa  service
SMX Convention Center, Pasay City
15-18 April / 15-18 October
HONG KONG HOUSEWARE FAIR
Homestyle and Living
Hong Kong
20-23 April

MAY

THAIFEX – World of Food ASIA
Food Products
Bangkok, Thailand

13-17 May
INTERNATIONAL FOOD EXHIBITION
(IFEX) PHILIPPINES

Food / Marine Products; Natural, herbal,           
and organic food and food supplements
SMX Convention Center, Pasay City
15-17 May

JUNE

INTERIOR LIFESTYLE EXHIBITION
Homestyle and Living
Tokyo, Japan
3-5 June

 

 

COMMUNICASIA
Information and Communication Technology (ICT) Services
Singapore
17 - 20 June 2008

EXPO ZARAGOZA
Spain
June - September 2008

SEPTEMBER

BIJORHCA
Fashion Accessories
Paris, France
5-8 September

TOKYO INTERNATIONAL GIFT SHOW
Homestyle and Living
Tokyo, Japan
2-5 September

OCTOBER

ANUGA
Food Products
Cologne, Germany
10-14 October

the 6th CHINA - ASEAN EXPO
General Consumer Products
Nanning, China
22-25 October

MANILA F.A.M.E. INTERNATIONAL
Design Driven Products & Services–Giftware/ Holiday Décors, Home Furnishings, Wearables ;  Natural, herbal and organic personal care,  Cosmetics, Spa products and Hilot as a spa  service
SMX Convention Center, Pasay City
15-18 April / 15-18 October

BIO-SEARCH
Natural, herbal and organic food and food supplements; Natural, herbal and organic personal care, Cosmetics, Spa products and Hilot as a spa service
SMX Convention Center, Pasay City
October

NOVEMBER

INDEX DUBAI
Home Furnishings
Dubai, U.A.E.
24-28 November

INTERNATIONAL FURNITURE FAIR TOKYO
Homestyle and Living
Tokyo, Japan
19-22 November

JAPAN HOME & BUILDING SHOW
Construction Services & Materials
Japan
November

 

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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FREQUENTLY ASKED QUESTIONS (FAQs)

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

Who can provide detailed background information on Philippine companies?

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.

 

What are the Philippine tariff rates on my products?

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.

 

Where can we get information on trade events in the Philippines?

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.

 

What are the policies on foreign equity investments in the Philippines?

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

What services are available for foreign investors?

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

Are there basic right and guarantees provided for foreign investments?

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

Is a visa required for a business visit to the Philippines?

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.

 

What are the policies and regulations affecting my products in Malaysia?

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

last updated on 28 January 2009

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