DTI: Preps for Spacex PHL biz ongoing

SPACEX is setting up a business entity that will provide internet service through low earth orbit (LEO) satellites in the Philippines, according to the Department of Trade and Industry (DTI).

In a recent meeting with Spacex Government Affairs Senior Manager Rebecca Hunter, Trade Secretary Ramon Lopez affirmed the Philippine government’s support for the establishment of Spacex in the country.

For her part, Hunter laid out the updates on the progress of their investment that will make the Philippines the first location of Spacex in Southeast Asia.

Hunter said the company has started the process of registration and securing permits from the respective government agencies.

Spacex also acknowledged the government’s “phenomenal” assistance throughout the process of its establishment and communicated its plans to continuously grow while ensuring alignment with government priorities, not just commercial priorities.

Spacex first met with the Philippine government in April 2021 to tackle its investment plans and has since been in close coordination with the Board of Investments (BOI), Philippine Trade and Investment Center (PTIC)-NEW York, and other government agencies to process the issuance of the necessary permits and certificates.

Trade Secretary Lopez, for his part, detailed the reforms and other measures undertaken by the Duterte administration to attract foreign investors in industries that have been liberalized to allow more foreign players in the country.

During the meeting, the trade chief discussed more details of the Public Service Act (PSA), which according to him, enabled the company to register as a 100-percent foreign-owned business. Lopez added that DTI assisted in following up its pending applications.

German-philippine Chamber of Commerce and Industry (GPCCI)’S Executive Director Christopher Zimmer, who witnessed President Duterte’s signing of Republic Act 11659 or the Public Service Act last March 21, lauded Duterte for signing the game-changing law, that he said “shall break major economic barriers in the country, and will be beneficial for…economic recovery.”

RA 11659 seeks to ease or lift restrictions on foreign investments in public services by amending the 85-year-old public service law, distinguishing definitions between “public utilities” and “public services,” as it will repeal provisions that limit foreign participation in certain economic activities.

According to the German chamber, amendments will attract global players to help modernize Philippine public services, which include telecommunications, shipping, air carriers, railways, and subways. Increased competition, it added, is seen to generate higher quality of service and competitive pricing for consumers.

Meanwhile, Board of Investments (BOI) Managing Head and DTI Undersecretary Ceferino Rodolfo provided information on the incentives under Corporate Recovery and Tax Incentives for Enterprises (CREATE), including information on the benefits of BOI registration.

Lopez and Rodolfo were also joined by National Economic and Development Authority (Neda) Undersecretary Rosemarie Edillon, Philippine Trade and Investment Center-washington, DC (PTIC-WDC) Commercial Counselor Kenneth Yap, and Philippine Trade and Investment Center-new York (PTIC-NY) Commercial Consul Benedict Uy to address the concerns of Spacex and assure them of sustained government support to investors and political stability amid the May 9 election.