The Philippines signed the 5th Protocol to amend the ASEAN Comprehensive Investment Agreement (ACIA) at the ASEAN Meeting in Laos in the first week of October 2024 to enhance its investment regime and attract more foreign direct investments.
“This agreement makes it easier for investors to identify sectors open for investment in the Philippines, positioning us as a leader in the global economic and strategic manufacturing hub,” said acting Department of Trade and Industry (DTI) Secretary Cristina Roque in a briefing Monday.
The 5th Protocol aims to enhance certainty and transparency for investors by transitioning from a single-annex reservation list to a two-annex negative list. It also expands the scope of the ACIA and applies the ratchet mechanism to some Member States.
DTI Undersecretary Allan Gepty highlighted the benefits of the protocol, noting that it provides a more stable and predictable business environment for investors.
By submitting a “schedule of reservations”, the Philippines will offer greater certainty and transparency regarding open sectors for investment.
“This is aligned with the country’s policy to pursue an advanced, purposive and forward-looking agreement,” Gepty said.
The ACIA sends a strong signal to the investment community of the Philippines’ readiness to serve as an investment hub in the region, particularly for smart and sustainable manufacturing.
The remaining ASEAN member states are expected to sign the Protocol once they complete their domestic procedures.
