Fake news? NEDA schools Drilon on foreign investments
The investments figure may be down, but it doesn’t mean that foreigners have turned away from the Philippines.
The National Economic and Development Authority (NEDA) was quick on their feet in calling out comments made by Senator Franklin Drilon about the “significant deceleration” in new investments made foreign companies to the country.
In a statement, the NEDA disputed Drilon’s assertion that cited a slump in equity capital which entered the Philippines during the first half of 2017, which dropped to $141 million from $1.448 billion as of end-June 2016.
“While the data on equity placements serve as a gauge of new FDI entry and overall investor confidence, the figure is not complete. The figure does not show the total inward investments made by foreign investors in the country,” NEDA Officer-in-Charge and Undersecretary Rolando Tungpalan said.
Instead, Tungpalan clarified that there are still millions of dollars entering the country this year, although the tally is lower as 2016 saw one-time inflows that for big-ticket transactions.
Tungpalan said business confidence remains solid, which meant no signs of stopping as far as foreign investors are concerned. Moves to pass the tax reform program and relax foreign investment restrictions would also bring more capital in.