By Beatriz Marie D. Cruz, Reporter
START-UP VISAS for foreigners could help generate jobs and increase Philippines competitiveness, but the government should improve the business environment and boost workforce skills to maximize economic benefits, analysts said.
“As we have witnessed how other countries benefitted from granting start-up visas, we expect the same to open up the country to talented innovators,” Divina V. Ilas-Panganiban, a lawyer and partner at Quisumbing and Torres’s IP Data and Technology Practice Group, told BusinessWorld in an e-mailed reply to questions.
“This will lead to the entry of novel ideas, fresh strategies and diverse technologies into the country,” she added.
A start-up visa, which allows a foreigner to set up a business in a host country, is being offered by Canada, Ireland, New Zealand, Singapore and the Netherlands.
Under Republic Act No. 11337 or the Innovative Start-up Act, foreigners who own a start-up may apply for a special visa to operate in the Philippines. The visa is valid for five years and may be renewed for three years.
“What’s good about that is it allows start-ups from other countries to consider the Philippines and it allows the marketplace to become more mature,” according to Alewijn Aidan K. Ong, assistant general manager for investments at National Development Corp. (NDC) “Secondly, it allows the exchange of technology and know-how.”
NDC is working with the Bureau of Immigration in issuing start-up visas.
Similar to a standard visa, a start-up visa facilitates the transfer of skills, knowledge and capital to the country, said Shotaro Akehira, a Master’s candidate at the Hiroshima University in Japan.
“In theory, issuing start-up visas would help attract young and talented entrepreneurs to the country to jumpstart sectors that would otherwise not receive investments,” he said in an e-mail.
Start-ups are also more willing to take risks compared with a traditional business. Its eagerness to innovate allows the economy to explore untapped markets, Mr. Akehira said.
However, allowing more foreign start-ups to enter the country could force local workers to seek opportunities overseas, Ms. Panganiban said.
“If foreign start-ups will be allowed to enter and share the market with local entrepreneurs, there is a risk that Filipino workers will be displaced,” she said. “Some fear that this may lead to a situation where local workers are again constrained to leave the country and look for better opportunities abroad.”
The government should upskill the Filipino workforce by investing in education and training programs, Ms. Panganiban said.
George N. Manzano, who teaches trade at the University of Asia and the Pacific, said developing a start-up culture takes more than issuing special visas.
“There should be a good investment climate, a deep pool of Filipino human resources, perhaps even incentives, good supplier industries and logistics, and more,” he said in a Viber message.
Mr. Akehira said the Philippines lags behind its Southeast Asian neighbors in having an established start-up ecosystem.
“For issuing start-up visas to be economically successful, the Philippines must massively invest in and revamp existing structures to incentivize international talent to enter the country,” he said.
To attract more foreign start-ups, the government should also improve its digital infrastructure and the ease of doing business in the country, Ms. Panganiban said.
“If foreign start-ups find that there are stricter requirements for them here especially compared with other economies, they may be discouraged from pursuing their business in the country,” she added.
