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CREATE MORE draws P932B in investments

The Philippines approved 895 projects with P932 billion in committed investments under the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy, or CREATE MORE Act, from November 2024 to June 2026. “These figures are proof that our reforms are attracting investments, creating opportunities, and delivering tangible results for the […]

Context & Analysis

The CREATE MORE Act represents a structural shift in how the Philippines positions itself within regional capital markets. By recalibrating corporate tax rates and streamlining incentive eligibility, the law moves away from fragmented fiscal breaks toward a more transparent, sector-aligned framework. For business owners, this means clearer pathways to qualify for tax holidays, duty exemptions, and expanded deductions without relying on ad hoc negotiations. Companies now must align capital expenditure plans with priority industries such as advanced manufacturing, digital infrastructure, and sustainable energy to capture these benefits.

Investors should treat approved commitments as early signals rather than final outcomes. Historically, the gap between project approval and ground-breaking stretches across multiple fiscal cycles due to permitting delays and local government coordination. The real test will be execution speed and whether these investments translate into measurable job creation and supply chain upgrades. Watch how the Bureau of Internal Revenue and the Board of Investments adjust implementation guidelines, and monitor whether listed firms on the PSE revise capital allocation strategies to match the new incentive landscape.

Broader macroeconomic forces will shape how these projects mature. The BSP’s monetary stance, inflation trends, and peso volatility directly affect financing costs for domestic developers and foreign partners. Global supply chain realignments continue to pressure Philippine exporters to upgrade productivity. Companies that integrate the new framework into long-term planning will likely gain a competitive edge, while those relying on legacy tax structures may face margin compression.

For consumers, downstream effects depend on sectoral focus. Industrial and logistics approvals should gradually improve freight efficiency and retail pricing, while digital and service projects will influence labor markets and technology adoption. Track quarterly completion reports from investment agencies, SEC corporate disclosure filings, and DTI updates on local content requirements to gauge whether policy momentum translates into sustained economic activity.

Analysis by IJE Software — original commentary on the story above.

This is an excerpt. Read the full article at the original source:

Source: bworldonline.com

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