PH One of the Most Restrictive on Health Investments in Asia Pacific

According to the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), the Philippines is considered to be one of the top countries in the Asia Pacific that have restrictive policies regarding health sector investments.

In the ESCAP Asia Pacific Trade and Investment Trends 2022/2023 report, it cited surveys conducted by the United Nations Conference on Trade and Development back in 2021 which showed that the region is among the most restrictive in terms of foreign direct investments (FDI) in the health sector.

Aside from the Philippines, one other country in the region implements FDI restrictions. These other countries include Myanmar, Vietnam, Thailand, Mongolia, Malaysia, the Lao People’s Democratic Republic, Indonesia, India, and China.

Specifically for the Philippines, restrictions come in the form of requirements for conditional entry.

ESCAP says that “Export performance requirements are set on foreign ownership in the health sector in the Philippines,”

Despite the condition for entry given to foreign investors in the country, investors in the health and wellness services continue to benefit from both non-fiscal and fiscal incentives offered by the government which includes, duty-free importation of medical equipment, income tax holidays, and hiring of foreign nationals as staff and special residency visas.

ESCAP also mentioned that aside from the Philippines, Vietnam likewise needs entry requirements in some areas of the health sector.

For countries such as Myanmar, Malaysia, Lao PDR, and Indonesia, bans were imposed on specific sectors of the health industry when it came to FDIs.

Source: Philstar