With political and economic stability, the Philippines is projected to generate foreign direct investments (FDI) amounting to more than $10 billion this year, the Joint Foreign Chambers of the Philippines (JFC) said.
In a statement Thursday, JFC said foreign multinational and small companies recognize the Philippines’ potential as an investment hub, with the country’s rising economy and per capita income as well as growing middle class.
“The prospects are high that, with continued political and economic stability, FDI will be above $10 billion in 2019,” JFC stated.
“However, the Philippines is just beginning to catch up with the Asian tiger economies that slipped behind during past periods of political instability and weak governance. The Philippine economy has yet to run on all cylinders,” it said.
JFC cited that the “Build, Build, Build” program of the administration has helped in attracting FDIs in the country.
The rising cost in China because of its trade friction with the United States is also an opportunity for the Philippines to attract investors to locate in export zones.
The business process outsourcing (BPO) and tourism sectors will also continue to attract FDI into the country, the JFC said.
“We urge the Congress to pass reforms that will lead to many tens of billions of additional foreign investment, better technology and jobs, and more competition, including amendments to the Foreign Investment Act, Open Access in Data Transmission bill, Public Services Act, Retail Trade Act, constitutional restrictions on foreign investment, and to revisit Comprehensive Tax Reform (TRAIN 2) in a manner not to discourage export-oriented investors,” it added.
“Overall, we are hopeful that with continued politico-economic and regulatory stability, 2019 will be a year of more high growth, tempering inflation, and high FDI for the Philippines,” the JFC said. (PNA)