Find out NEDA’s lame explanation why FDI fell off a cliff under Duterte
When senators were debating over its P8.9 billion budget in 2018, the National Economic and Development Authority revealed dropped a bomb on the politikos when it revealed that foreign direct investments (FDI) have fallen by a staggering 93 percent in the first six months this year.
Senator Loren Legarda said NEDA blamed the country’s restrictions on foreign investments in select industries as the main reason for the plunge in FDI to $141 million in the first half this year from $1.448 billion during the same period last year (or the final six months in office of the Aquino administration).
But even Legarda, who was tasked to defend the agency’s budget, found NEDA’s explanation unacceptable.
“I am told that it is because of certain restrictions. I do not agree with that answer because these restrictions were already there when there was an increase… I cannot create answers if I am not supplied the justification for the decline in the foreign direct investment,” Legarda said.
“I am candid because I am very concerned. I cannot sugarcoat something because the figure would not lie,” Legarda added.
Senator Franklin Drilon found the steep drop in FDI “very alarming.”
” Why such a huge drop? Is this an indication of anything?” said Drilon who cited the country’s “political climate” as the biggest reason why foreign investors have lost their appetite to invest in the Philippines.