Last March 2, 2022, President Rodrigo Duterte signed Republic Act No. 11647, amending Republic Act No. 7042, generally known as the Foreign Investment Act (FIA). This gesture is made to encourage and attract international investors to establish and fully own domestic enterprises in the country for the first time. Due to its relatively stringent foreign investment restrictions, the Philippines has had a difficult time attracting international investors since the beginning. The country’s laws have provided protection for local brands which enable corporations to maintain influence over the country’s economy by expanding their industries to include food services, real estate, manufacturing, and retail.
In addition to the healthcare concerns brought by the pandemic, it has also greatly impacted the country’s economy because of continuous lockdowns and other restrictions. According to news sources, during the height of the pandemic only 29% of businesses in the Philippines were able to operate during the shutdown, among which 78% is functioning only with half capacity or less, and only 4% is allowed to operate at full capacity. Thus, the government has taken the initiative to improve the current situation by amending the current regulations and inviting foreign investors. This will boost economic growth since job opportunities will increase as the number of businesses expands. As a result, the country’s unemployment rate falls, subsequently making way for higher earnings and greater procuring power for the people, and further solidifying the country’s overall economy.
SAPCO Philippines Services Corp (SAPCO PH) helps both local and foreign enterprises establish and operate in the Philippines from start to finish. SAPCO has a proven track record of outstanding performance with company incorporation, business registrations, accounting team setup, and other business solutions. By conveying full-service initiatives, SAPCO assists international companies to begin their business here in the Philippines without having to worry about their accounting and legal compliances. At the same time, in accordance to the FIA, SAPCO is also able to provide executive search, Human Resource (HR) consulting, and recruitment services to these newly established companies. This way, they are not only able to deliver exemplary performance to their clients – the foreign business entities, but they are also able to aid Filipinos attain employment with competitive compensations and support the country’s economic success.