HSBC supports Phl start-up ecosystem

The Hongkong and Shanghai Banking Corporation (HSBC) vowed to promote and support the development of a start-up ecosystem in the Philippines,

“The Philippines is proud to be the Chairman of the 50th anniversary of the ASEAN. We see this as a strategic opportunity to showcase the rise of innovation and the “start-up” ecosystem in the Philippines and the ASEAN region more broadly," said Wick Veloso, HSBC president and chief executive officer for Philippines.

Veloso said this development can also be a platform to demonstrate the ASEAN value chain, knowledge exchange and cross-border investments which will ultimately translate to growth and investment opportunities, benefitting the Philippines and the rest ofASEAN. “The relations between China and the Philippines allow us to play an important part in the Belt and Road Initiative through infrastructure funding and technical support. The opportunities are mutual and we are indeed partnering for change and engaging the world,” he added.

On the other hand, the Philippines is still constructing its platform to make a solid start-up community that is backed up by a law.

Senator Paolo Benigno "Bam" Aquino IV authored Senate bill 2217, otherwise known as the Start-Up Business Bill. This is expected to improve the country's capacity to speed up the growth of innovation-based economy.

The bill also encourages startups to get organized and establish their business operations and market base. It will give these enterprises the proper time to stand on their own.

A proposed two-year tax exemption will apply only to startups that are not an affiliate, a subsidiary, or a franchise of any existing company. They must also not have any other existing registered companies, partnerships or businesses in the case of sole proprietorships.

According to Veloso, the Philippines and the ASEAN big economies pledged to double infrastructure investments to more than US$ 700 billion in a five-year span and this is the beginning of a new era of development and investment growth in the region, and start-up community is expected to take the centerstage in terms of opportunities. —

M. Dagooc

Ehda