Investment Opportunity in the Philippines: Advocates Highlight Cebu, Economic Reforms, and Growth Potential
Under the leadership of President Marcos, the Philippine government has embarked on a series of economic reforms and initiatives aimed at fostering a more conducive investment environment, particularly in regions like Cebu.
One of the key reforms is the Capital Markets Efficiency Promotion Act (CMEPA), which seeks to make the stock market more attractive to investors. The Act has reduced the Stock Transaction Tax (STT) from 0.6% to 0.1%, making it more cost-effective for investors. Additionally, the removal of the stamp tax on mutual funds and Unit Investment Trust Funds further reduces costs for investors. A standardized 20% tax rate on interest income also aims to simplify tax compliance.
Another significant reform is the Economy, Planning, and Development Act (Republic Act No. 12145), which reorganizes the National Economic and Development Authority (NEDA) into the Department of Economy, Planning, and Development (DEPDev). This reorganization is designed to enhance economic planning and coordination.
The administration also places a strong emphasis on strategic investments in innovation and infrastructure to boost national productivity. These investments, if extended to regions like Cebu, can make the region more competitive as a business destination.
The Marcos government has also made strides in reducing bureaucratic red tape to improve the investment climate.
While specific initiatives targeting Cebu are not detailed in the available information, these national reforms are likely to have a positive impact on the region by creating a more favorable investment environment.
Cebu, being a significant economic hub in the Philippines, can benefit from these reforms by attracting more investors due to the improved investment climate. The reduction in transaction costs and the streamlined regulatory environment can make Cebu more appealing for both domestic and foreign investments. Additionally, investments in innovation and infrastructure can enhance Cebu’s competitiveness as a business destination.
Secretary Frederick Go, who encourages businesses to invest in the Philippines under the Marcos administration, specifically highlights Cebu as a prime location for business growth. The employment rate in the Philippines is currently 96.1%, and 93.4 million Filipinos are now registered in the national ID system, accessible via the eGovPH app, consolidating SSS, GSIS, and other government-issued IDs.
The Philippine economy grew by 5.6% in 2024 and 5.4% in the first quarter of 2025, placing it as the second-best in the region and among the top 10 globally. The Marcos administration is implementing a pipeline of policy reforms and infrastructure programs to make the Philippines more attractive to investors.
The Create More Act offers 14 to 40 years of fiscal incentives for priority projects and restores approval authority to investment promotion agencies. Secretary Go also emphasized the removal of the Philippines from the Financial Action Task Force grey list, enhancing investor confidence, improving the flow of remittances, and lowering transaction costs for international trade and finance.
With these reforms and initiatives in place, the Philippine economy, and particularly regions like Cebu, are poised for significant growth, attracting long-term capital, creating jobs, and improving the lives of all Filipinos.
- The Philippine government, under President Marcos, is prioritizing the Philippines as a business destination, particularly in regions like Cebu, through initiatives like the Capital Markets Efficiency Promotion Act (CMEPA).
- The CMEPA aims to make the stock market more attractive by reducing the Stock Transaction Tax (STT) and removing stamp taxes on mutual funds, making it cost-effective for investors.
- Another key reform is the reorganization of the National Economic and Development Authority (NEDA) into the Department of Economy, Planning, and Development (DEPDev), designed to enhance economic planning and coordination.
- The Marcos government is also focusing on strategic investments in innovation and infrastructure to boost national productivity, which can make regions like Cebu more competitive.
- Secretary Frederick Go encourages businesses to invest in Cebu, highlighting it as a prime location for business growth due to improvements in the investment climate and a accessible national ID system.
- With the implementation of reforms such as the Create More Act and the removal of the Philippines from the Financial Action Task Force grey list, the Philippine economy and regions like Cebu are poised for significant growth, attracting long-term capital, creating jobs, and improving the lives of all Filipinos.
