Sign up | Log in



Home  >>  Daily News  >>  ASEAN ANALYSIS


                                                                                                                           Asean Affairs  July 8, 2013  

Philippines lags behind other Asean economies in FDI inflows

By Alito L. Malinao

MANILA, July 6 (Xinhua) -- Despite having glossy economic indicators, the Philippines has lagged behind other member- countries of the Association of Southeast Asian Nations (Asean) in attracting foreign direct investments (FDIs) in the year of 2012, according to a report of the United Nations Conference on Trade and Development (UNCTAD).

The report, released by UNCTAD late last month, showed that the Philippines got a total of 2.8 billion U.S. dollars in FDIs last year, a measly amount compared to those that went into the other top five economies in the region.

Of the total amount of 111.3 billion U.S. dollars in FDIs shared by the Asean 6, Singapore got the biggest chunk of 56.7 billion U.S. dollars, followed by Indonesia with 19.9 billion U.S. dollars, Malaysia with 10 billion U.S. dollars, Thailand, with 8.6 billion U.S. dollars, and Vietnam with 8.3 billion U.S. dollars.

According to UNCTAD's World Investment Report 2013, FDI inflows to East Asia and Southeast Asia in 2012 dropped by 5 per cent to 326 billion U.S. dollars as a result of decline in major economies in the region, including those of China, Hong Kong ( China), Malaysia, and South Korea.

The report said that China continues to be the leading FDI recipient in the region, as well as in the developing world.

FDI inflows to China dropped by only 2 per cent in 2012, remaining high at 121 billion U.S. dollars despite strong downward pressure on FDI in manufacturing caused by rising production costs, weakening export markets, and the relocation of foreign firms to lower-income countries, the report said.

A study made by the global banking giant Citibank said that the Philippines is catching up with its neighbours in attracting FDIs, saying that in fact, the country recorded the highest growth rate of 185 percent as against the 2.11 percent average expansion across the so-called Asean 6 in 2012.

"The Philippines remains the regional FDI laggard but interestingly saw the sharpest year-on-year rise in Asean," Citibank said in its report.

The Citibank said that the 2.8 billion U.S. dollars in FDIs that the Philippines attracted last year were 185 percent higher than 981 million U.S. dollars that it got in 2011.

Officials here said that with the two investment-grade status that the country received from international credit rating agencies early this year, more FDIs will pour into the Philippines this year.

However, lately there have been some negative economic developments that may affect the overall growth of the Philippine economy this year.

For example, on June 25, the Philippine stock market was pushed officially into the bear market when the Philippine Stock Exchange Index tumbled to 5,789.06, the lowest close since Dec. 19.

On June 25, which some analysts called "bloody Tuesday," the index lost 22 percent from a record 7,392.20 set on May 15, wiping about 62 billion U.S. dollars in value from the stocks.

The stocks, however, have recovered quite well during the last few days closing at 6,500 level in Friday's trading.

In June, the country's inflation rate rose to 2.8 percent, which is slightly higher than the 2.6 percent in May.

In a statement released Friday, the National Statistics Office (NSO) said that the average inflation rate for the first semester was 2.9 percent, which is still way below the 3 to 5 percent set by the government for this year and next year.

The NSO said that consumer prices rose last month because of the appreciation of the Philippine peso, an increase in the price of oil in the world market, and higher demand for basic items during the opening of classes.

The Bangko Sentral ng Pilipinas (BSP), the country's central bank, also reported on Friday that the gross international reserves (GIR) of the Philippines dipped to a 10-month low of 81.6 billion U.S. dollars in June.

Data released by the BSP showed that June marked the third consecutive month that the GIR went down. The GIR peaked at 83.95 billion U.S. dollars in March before falling to 83.21 billion U.S. dollars in April, to 81.96 billion U.S. dollars in May and to 81.6 billion U.S. dollars last month.

The BSP said that the decline in the foreign exchange reserves was due to the lower price of gold in the international market and the payment by the national government of its dollar-denominated maturing obligations.

Despite these not-so-encouraging developments, the government is still confident that it can achieve its target of 6-7 percent growth this year

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories    9 July 2013 Subsribe Now !
• SGX welcomes International Healthway to Catalist Subcribe: Asean Affairs Global Magazine
• Indonesia's Tower Bersama gets AA-(idn) rating from Fitch Asean Affairs Premium
• Indonesia to produce 75,000 low-cost green cars this year
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Tourism Malaysia wins award at Korean travel fair
• Household credit lendings get controlled in Malaysia
• ASEAN Sec Gen reiterates urgency on AEC implementation by 2015
• Last border demarcation between Vietnam, Laos nears completion 
Asean Analysis            9 July 2013 Advertise Your Brand
• Asean Analysis- July 9, 2013
• Asean Weekly: The Biweekly Update
Asean Stock Watch     8 July 2013
• Asean Stock Watch-July 8, 2013  

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand