But The Philippines must make greater efforts to sustain its improved FDI performance if it is not to be left behind by its south-east Asian peers. The Philippines has enjoyed a boom in inward FDI under the presidency of Benigno Aquino.
Data from the Asian Development Bank shows that Indonesia, Malaysia, Thailand and Vietnam have attracted large amounts of FDI over the past two to three decades.
A key factor behind this trend has been the offshoring of lower-value-added manufacturing activities by East Asia’s advanced countries, such as Japan, South Korea, Taiwan and Singapore, which created the value chains that today crisscross the region.
A notable absence from these lists, however, is the Philippines.
“The Philippines missed out on this wave of FDI due to political instability, poor governance and inadequate infrastructure,”
says Dr Cielito Habito, a former Philippines economic planning secretary. “The country has suffered from not only a shortage of FDI, but domestic investment too. It is critical to improve the investment climate for all investors.”
Acting vice-president of the Philippine Institute for Development Studies, Adoracion Navarro, adds: “It is only since 2010, when Benigno Aquino became president, that we have seen a sustained rise in inflows of FDI.”
Inward FDI reached an all-time high of $6.2bn in the Philippines in 2014, up from $1.1bn in 2010, according to data from the Bangko Sentral ng Pilipinas, the Philippine central bank.
These investments were made across a range of different industries, including finance and insurance, manufacturing, real estate, mining and quarrying, and wholesale and retail trade. Japan and the US are the most active foreign investors in the Philippines.
4 Reasons to explore the Consumer Market Opportunities in The Philippines
An archipelago state which is home to more than 100 million people, the Philippines is gradually transforming into a burgeoning modern consumer market
Amongst the world’s growth markets, the ASEAN trade bloc is a particularly notable success story. It significantly out-performs many developed territories as well as those which are still developing. (more…)
Duterte Harry, the life and crimes of an elected Philippine president
‘Duterte Harry’ is the first published biography of the Philippine president, and tells of his lifelong addiction to killing. It is a chilling account of what can happen when unbridled populism goes unchecked.
Does Philippine Licensing Problems Offer an Opportunity to Thailand?
This regulatory regime has produced significant income for the country and continues to play a vital role in the Philippines economy.
Philippines has for a number of years found itself in the unique position of being the only country in Asia that licenses online gambling sites, done under the auspices of the Philippine Amusement and Gaming Corporation (PAGCOR), which also runs land-based casinos in the country, along with VIP slots clubs and bingo parlours. (more…)
Thailand approves COVID-19 AstraZeneca vaccine for emergency use
The first lot of 50,000 doses of COVID-19 vaccine developed by AstraZeneca will arrive in Thailand early next month, after...
Interprovincial travel in Thailand amid COVID-19 controls
The State Railway of Thailand (SRT) is suspending 57 additional train services from 26 January, 2021, as part of the...
Covid-19 puts flexible space markets under strain
In the wake of operator defaults, landlords will be forced to re-evaluate the role of flexible space in their portfolios.
Thailand to put world’s largest floating solar farm into use this June
The facility, which generates power on a water surface of 72 hectares, was originally scheduled for operation in December last...
TAT launches virtual tours to 4 top destinations in Thailand
Once inside an attraction, visitors can move around using the cursor, while some of the attractions have information about its...
Thailand’s automotive sector expected to produce 1.4m cars this year
This increase in output is a result of the recovery of domestic and export markets, with the annual output for...
Subscribe via Email
Forex1 week ago
Leverage from Forex Brokers & How Beginners Can Benefit from It
Economics6 days ago
Thai economy to grow 4% in 2021 following 6.5% decline in 2020
National6 days ago
Human trafficking cases in Thailand hit decade low due to COVID-19
Banking1 week ago
Can Fintech drive a strong post-COVID-19 recovery in Asia?