Taipei, Sept. 22 (CNA) The Manila Economic and Cultural Office (MECO) in Taipei has confirmed that it plans to renew a bilateral investment agreement (BIA) with Taiwan by the end of the year, in line with Taiwan's New Southbound Policy.
"There are only about one or two issues that have to be ironed out," MECO Chairman and Resident Representative Angelito Banayo told CNA in an interview earlier this week.
"I'm quite optimistic that this (agreement) will be signed by the end of the year," he said, adding that it is likely to be completed by the time Taiwan and the Philippines hold their joint economic conference in Manila in the first week of December.
Taiwan's Minister without Portfolio John Deng said in early September that the Taiwan government was planning to renew its bilateral investment agreements with six Southeast Asian countries, namely the Philippines, Vietnam, Thailand, Malaysia, Indonesia and India.
Deng, who is also chief representative of the Cabinet's Office of Trade Negotiations, said the government hoped to renew the agreement with the Philippines because it was a fast-growing market with over 100 million people.
The Philippines also has a stable electricity supply, strong economic growth and an improving investment environment, Deng said.
A bilateral investment agreement establishes the terms for investment between the participating countries, including factors such as most-favored-nation treatment, fair trade treatment and dispute resolution.
Banayo said business ties between the two sides are already warming up, with Taiwanese business groups visiting Manila, and Filipino agricultural machinery importers seeking business opportunities in Taiwan.
There will also be "great demand" for Taiwan's construction equipment and machinery under the Philippine government's big-ticket infrastructure program "Build, Build, Build," he predicted.
In fact, several Filipino construction companies have already made enquiries at MECO and are seeking construction partners in Taiwan, according to Banayo.
The infrastructure program will include the construction of highways, bridges, and roads and the modernization of airports and seaports, he said.
Meanwhile, on the issue of visa fees, Banayo said his office is studying ways to reduce the cost for Taiwanese businesspeople and other nationals who frequently travel to the Philippines.
A final decision is expected "within a year," he said.
The fees, however, will not be reduced soon for tourists, Banayo said, adding that visa fee reduction is an issue that requires careful study because it could affect MECO's finances, which are partly reliant on such fees.
Furthermore, if the Philippines grants visa-free entry to all Taiwanese nationals, it would be expected to extend such privileges to other countries such as China, he said.
"That's not very easy for us to do right now," Banayo said.
With regard to President Tsai Ing-wen's New Southbound Policy, Banayo said that apart from the usual trade and investment promotions, he would like to see greater cooperation in the areas of education and culture to develop closer people-to-people relationships.
He said the Philippines is hoping to send more students to Taiwan to study science, technology, math, applied physics, and Mandarin.
There are fewer than 1,000 Filipino students at Taiwanese universities at the moment, he said, adding he would like to see a big increase in numbers over the next few years.
Taiwan can also send students to the Philippines to enroll in English as a Second Language courses, Banayo suggested.
There could also be more indigenous culture exchanges between Taiwan and the Philippines, as the two sides share a common ancestry, he said.
"Eventually, we'd get to be closer as a people," Banayo said. "I think that's the real thrust of President Tsai Ing-wen's New Southbound Policy -- to make Taiwan closer to its neighbors in the South."
