ASEAN KEY DESTINATIONS
Foreign direct investments up 200% in October
Foreign direct investments (FDI) in the Philippines tripled in October 2017, according to the Bangko Sentral ng Pilipinas (BSP).
Data released by the BSP showed FDI net inflows stood at $2.02 billion in October, up 201.1 percent from $670 million in the same period in 2016.
"The upswing in FDI reflects continued investor confidence in the country’s strong macroeconomic fundamentals and growth prospects," the central bank said.
Malacañang, on Thursday, welcomed the surge in FDI inflows, a report on GMA News' "24 Oras" by Tina Panganiban-Perez said.
"The world bank's forecast, its global economic prospect, cited the Philippines as the fastest growing economy among the ASEAN countries. The infra projects plays a big role on this," presidential spokesperson Harry Roque said.
Financial analyst Astro del Castillo said FDIs help in the creation of jobs.
"Ito ay nakakadagdag empleyo sa ating mga kababayan dahil naglalagay sila ng kapital dito sa kadahilanang gusto nilang mag-invest, kailangan nila ng tao... kailangan nila ng resources," del Castillo said.
Philippine Chamber of Commerce and Industry honorary chairman and COO Donald Dee, for his part, said FDIs could grow even higher if the government's policies were clear.
"Can you make you policy clear? They're also looking at a guarantee that policies will be consistent that no new policies will come in on a retroactive basis," Dee said.
"Are we going to have charter change? If so, when? If so, what are the changes? So that's the reason also why your FDI is not going up where it should potentially be," he added.
The PCCI official said business leaders make investment decisions based on long-term policies.
Del Castillo took note that the infrastructure and the bureaucratic processes should improve to attract more investments.
Central bank data showed that more than three-fourths of FDI net inflows were in the form of equity capital at $1.6 billion from $84 million in 2016.
A significant portion of the equity capital placements were channeled to electricity, gas, steam and air-conditioning supply activities. Other sectors that received investment inflows were manufacturing, construction, real estate, and wholesale and retail trade.
The top country sources were the Netherlands, Singapore, Kuwait, the United States, and Germany.
On a cumulative basis, FDI net inflows for the first ten months of 2017 grew year-on-year by 20.5 percent to $7.9 billion from $6.52 billion in the same comparable period in 2016.
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