Comments on: A new way to stay!

By: What is SVEG? | Live In The Philippines

What is SVEG? | Live In The Philippines — Mon, 16 Mar 2009 21:04:05 +0000

[...] wrote an article about the new employment visa when it was first announced in November. At the time, we did not know any details about how the [...]

By: Bob

Bob — Thu, 20 Nov 2008 00:14:03 +0000

Hi Francisco San Giorgio- That’s great to hear. There are studies that show that kids who grow up in a multi-lingual environment start talking later than kids who grow up in a uni-lingual environment. However, that’s no big deal to me, much better that they learn as many languages as possible.

Good luck to you!

By: Francisco San Giorgio

Francisco San Giorgio — Thu, 20 Nov 2008 00:10:16 +0000

Bob, I’m doing quite well so far. Sharpening my Bisayan skills little by little, day by day. Now that we have the boy starting to talk it’s quite a chalange.. He doesn’t talk too much but, he’s hearing Tagalog, Bisayan, Taosug and English. Seems to understand most but, I think his hesitation to talk is because he just doesn’t know which language to use yet. Will be interesting, as time goes by, to see how this developes.

I read your web magazine most every day and it’s a constant learning experience for me. Keep up the great work.

By: Bob

Bob — Wed, 19 Nov 2008 13:39:52 +0000

Hi Francisco San Giorgio- I can’t disagree with you one bit!

Hey, it’s a while since we heard from you, I hope you are doing well.

By: Francisco San Giorgio

Francisco San Giorgio — Wed, 19 Nov 2008 13:22:38 +0000

Why in the world would anyone even consider investing 200million PHP when a permanent visa can be had for 500,000PHP to 1 million PHP? The SIRV only requires a remittance of 10,000USD into a USD/TD account and a verifiable pension into a direct deposit account here, of not less then 800USD/month. The SRRV minimum requirement is only 20,000USD into a USD/TD account. Would this new visa also provide for not having to register with the BOI evvery year, exempt you from entry/exit fess, eliminate the need for an ACR card or AEP and exclude you from ECC when you want to leave for a short (or long) time?
Doesn’t make any sense to me. There must be something we’re missing here in Gloria’s great plan!
Doesn’t much matter to me anyway. I came her to retire. Providing two drivers with a livable income is enough investment for me.

By: Martin

Martin — Wed, 19 Nov 2008 12:06:57 +0000

Yes, that’s my sentiments as well, Bob. They can already avail of the SRIV — Special Resident Investor’s Visa — which can be had for any investments over US$75,000.00.

Like you, I believe there should be a visa more focussed on foreign Small and Micro investors. Any business made by a foreigner brings foreign capital into the Philippines, which is good. They pay taxes on their income, no matter if they remain small or grow to be a household name. And they employ Filipinos who might not otherwise be employed. I always counsel people to start as small as possible, as this gives them the best chance to succeed. Going for scale right off the bat in a foreign country can and often does result in a failed business. That’s not a good thing if the goal is to continually get more and more business investment.

It’s frustrating when the realities of obtaining an appropriate visa seem to be out of step with the realities of what it is like on the ground as an investor. In my opinion, the government would be better served trying to hit plenty of singles by making it easy for foreign small and micro investors rather than going for the investor home run every time.

Cheers!

By: Bob

Bob — Wed, 19 Nov 2008 11:34:40 +0000

Hi Martin- The reason I said that the new visa will produce zero investment is because any investments could have already been made under existing visas, so I see no reasons why anybody would now suddenly invest and would not have under existing visas. So, yes, I agree that sometimes big investments are made, but any that would be made could have already been made without this new visa.

Anyway, I think we are mostly in agreement.

By: Martin

Martin — Wed, 19 Nov 2008 11:05:34 +0000

Yup, my sentiments exactly. This is pie-in-the-sky thinking. If big investments are made — which sometimes there are — there will be jobs created. But like you say, the real engine of growth is in SME development.

Just imagine how many small businesses would be created by foreigners, with foreign capital, if such a similar visa existed. The nett inflows would be pretty impressive in relation to the overall numbers of people availing of the visa.

By: Bob

Bob — Wed, 19 Nov 2008 10:29:05 +0000

Hi Martin- As the EO stands now, the number of jobs actually created in the Philippines will be zero, or close to zero. If they opened it up for only small investment, I would estimate that a minimum of 10,000 jobs could be created in the first year alone. Small business is what drives the world economy these days. P200M is not a small business. That is thinking from 50 years ago or more. Time for the GRP to move into the 21st Century.

By: Martin

Martin — Wed, 19 Nov 2008 08:41:36 +0000

I had another thought, Bob.

I also think I should add that the Philippine government wants employment in conjunction with taxes, so if you want to use your pre-existing business from abroad that you have built up and want Filipinos to work for, then the Philippine government will want to have their share of taxes, even off of offshore income, especially if you are earning as a result of Philippine labor. The Philippines and the US are two of the few countries that actually tax worldwide income, not just locally derived income.

Anyways, I wish it would be possible to just be able to emply 10 people for a visa, and it wouldn’t be hard to do that and provide the proper SSS, PhilHealth, Pag-Ibig documentation . . . but in practice I think the Philippine government will want to look at it from multiple angles and multiple objectives, and that would probably mean having a domestically taxable business, with a minimum paid-up capital to prove you can be viable for a year.