PRESIDENT Ferdinand Marcos Jr. has signed into law the CREATE MORE Act, a groundbreaking measure aimed at attracting foreign investment, boosting job opportunities, and enhancing protections for Filipino workers. Driven by President Marcos’s insights from the global business arena, this legislation is expected to usher in substantial economic gains for the Philippines while strengthening labor conditions.
In a statement, House Ways and Means Committee Chair Albay Representative Joey Salceda hailed the CREATE MORE Act as a game-changer, describing it as an initiative that will foster a more dynamic labor market by making the Philippines a top destination for foreign investment. Salceda expressed confidence that the Act would generate significant employment opportunities and support sustainable wage growth for Filipino workers.
Salceda highlighted one of the Act’s pivotal provisions: addressing high power costs, a longstanding challenge for foreign investors in the country. Under the Act’s enhanced deduction regime, foreign companies can now benefit from a “double deduction” on power expenses, a move that effectively reduces one of the biggest barriers to foreign direct investment.
“This provision not only attracts foreign investments but also boosts the bargaining power of Filipino workers by broadening their employment options and reducing reliance on a few domestic employers,” Salceda stated.
Studies have shown that foreign investors, especially in export-driven sectors, typically offer wages up to 47% higher than domestic averages. By increasing foreign investments, the Act positions itself as a tool for uplifting Filipino incomes and reducing poverty levels.
Moreover, the CREATE MORE Act secures the right to work from home for employees in the export service industry, with a specific focus on the burgeoning business process outsourcing (BPO) sector. Companies implementing remote work policies will continue to qualify for tax incentives, promoting flexibility and aligning with the global shift toward remote work.
According to Salceda, the Act is projected to directly create 142,000 high-quality jobs, with an additional 860,000 jobs expected to emerge indirectly through enhanced economic activity.
With the signing of the CREATE MORE Act, lawmakers are now turning their attention to further reforms aimed at bolstering the capital market. Planned measures include amendments to the Tax Code to establish a portable, sustainably funded corporate pension scheme for private-sector employees.
“This measure, which could be incorporated into the Capital Market Efficiency Promotion Act, will not only enhance financial security for Filipino workers but also encourage long-term investment growth,” Salceda concluded.
The CREATE MORE Act represents a significant step forward in the Philippines’ economic policy, targeting the twin goals of attracting global investments and uplifting local labor conditions.
