Investment green lanes

To make the country more attractive to investors, Malacañang released an order on Feb. 23, creating “green lanes” for so-called strategic investments.

Executive Order No. 18 defines strategic investments as those “which are aligned with the Philippine Development Plan or any similar national development plan, and can be characterized by the significant capital or investment to the country; consequential economic impact; positive impact on the environment; significant contribution to the country’s balance of payments; with complex technical processes and engineering designs; and will bring about improvement in the country’s infrastructure capabilities.”

These include “highly desirable projects” endorsed by the Fiscal Incentives Review Board, foreign direct investments as endorsed by the Inter-Agency Investment Promotion Coordination Committee, and projects or activities “of national significance” under the Strategic Investment Priority Plan drawn up by the Department of Trade and Industry’s Board of Investments.

The EO signed by Executive Secretary Lucas Bersamin on behalf of President Marcos states that it is in line with continuing efforts to enhance ease of doing business. It is directed at national government agencies, government-owned and controlled corporations as well as offices of local government units involved in the issuance of licenses and permits for strategic investments.

It’s not the first time that such special lanes have been created. Previous administrations have set up similar express lanes and one-stop shops, especially for big-ticket FDI. Yet the country continues to lag behind its neighbors in drawing investments. And the same concerns have been raised by investors: inadequate infrastructure, red tape and constraints in ease of doing business, unpredicatable regulatory environment, malleable rules and the weak rule of law.

The concerns persist despite the passage of laws to cut red tape and promote ease of doing business. Rodrigo Duterte, throughout his six years in power, harped on speeding up the processing of public transactions with the government. But complaints about red tape and slow services particularly at the local government level continue – whether micro, small and medium entrepreneurs who account for over 90 percent of businesses in this country, or big-ticket investors.

MSMEs and major investors will welcome any effort to deal with those concerns. President Marcos’ EO No. 18 provides for the establishment by the BOI within six months of a One-Stop Action Center for Strategic Investments. LGUs will be provided software by the Department of Information and Communications Technology to digitize their business permit and licensing systems. The EO is limited to strategic investments. Perhaps this time the objectives in creating the green lanes will be attained.