Neda sees PH catching up with peers in FDI flows

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The National Economic and Development Authority has expressed optimism that the country will soon start catching up with its Southeast Asian neighbors in terms of foreign direct investments.

Neda Director General Arsenio Balisacan said the substantial rise in investments by domestic companies augured well for the country’s efforts to corner more FDIs.

He said rising local investments, an indicator of confidence of domestic firms, was a prerequisite for boosting FDIs.

“In the recent past, even domestic firms were not investing much, so it was difficult to expect more investments from foreign firms,” Balisacan said.

“But now, local companies are finally investing more significantly and this may help attract foreign firms into investing more in the country,” he added.

The Philippines has been a laggard among emerging Asian economies in the area of FDIs. Last year, the country’s about $2 billion in FDIs paled in comparison with Indonesia’s more than $20 billion.

This was despite the Philippines’ favorable macroeconomic indicators, including a robust growth that made it one of the fastest growing Asian economies together with China.

The country grew by 6.8 percent last year, surpassing the official target of 5 to 6 percent.

Balisacan, however, said the country could not expect FDI inflows to match those infused into other Asean countries in the near future. He said substantial growth in FDIs could not happen overnight.

He noted that other emerging Asian economies that were getting more FDIs were those that had been registering robust growth rates for at least a decade.

In the case of the Philippines, he noted, it was only last year that it started registering a rapid economic growth. Prior to last year, the economy was growing by an average of about 5 percent a year.

“We have to sustain the robust growth that we have posted recently to establish credibility,” Balisacan said.

In the first half of the year, the Philippine economy expanded by 7.6 percent. This growth rate, which was partly driven by domestic investments, was the same as China’s and was the fastest in Asia during the period.

Investments in fixed capital formation, including construction and durable equipment, grew by 16.8 percent in the first quarter, faster than the 2.8 percent registered in the same period last year.

In the second quarter, investments in the same rose by 9.7 percent, faster than the 8.7 percent a year ago.

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  • eight_log

    “In the recent past, even domestic firms were not investing much, so it was difficult to expect more investments from foreign firms,” Balisacan said.

    So what does that mean??? IT SPEAKS LOUDLY OF THE FAILURE ON THE PART OF THE GOVERNMENT PLANNERS TO PAINT A CLEAR PICTURE WHICH DIRECTION TO GO … Build the necessary infrastructures … do not wait for the traffic to build up and then start building an over pass … build the roads and businesses will follow!!!!

  • chiefsiop

    change the economic provisions of the constitution.

  • Diablo_III

    $20B ang FDI ng Indonesia pero their growth is lower than us and their economy is unstable. Mas mabuti pa sa atin kahit $2B lang ang FDI but our own businessmen are investing in our economy plus our own OFW are pouring money and these will support a self-sustaining growth. Unlike them they need more investment from the outside and if there is instability of the world economy, Indonesia will be vulnerable.

  • dummier

    Ano kaya iniisip ni Gloria ngayong hinde nya na i level up ang FDI nung term nya?
    Sa kabila ng ‘Ekonomista’ daw sya.
    – pano sa baho ng pamamalakad nya, buong term din syang nakikitransact sa ganid na congress, simbahan etc. para hinde ma impeach.
    – Walang ma implement na progress dahil ayaw banggain mga kaalyado, again para hinde ma impeach.
    – Ngayon, nilalangaw sa veterans. Bat naman didikit mga kaalyado ngayon, eh pangalang Arroyo pa lang siguradong mayayari sila sa election.

  • Ben

    In the case of the Philippines, he noted, it was only last year that it started registering a rapid economic growth. Prior to last year, the economy was growing by an average of about 5 percent a year.

    “We have to sustain the robust growth that we have posted recently to establish credibility,” Balisacan said

    …and what a wonderful way to keep the momentum is to apply the PPP now. You know, we all know that the PPP will increase GNP/GDP further with extensive infrastructures to keep the investors and people alike mobile for more expansions, Infrastructure will streamline delivery of goods and services, road-dike two purposes in one will help clear the roads of gridlock and flooding both can stunt economic gains and multiply losses, connect them internationally as well as domestically which means strictly monitoring and implementing zoning rules. Having a well planned and plentiful infrastructure will lead to the development of new sites of industrial clusters that allow businesses to achieve cost-effective operation, and hence more jobs. Take away the idea of over developing M. Manila, not only a nightmare for congestions but also for disaster in the future. Develop more economic zones in each provinces and inter-connect them with high speed rail system, or efficient airport systems. Our power grid must be inter-connected too through submarine cable to efficiently distribute load capacity in times of any deficits in each major islands that needed power to continue the GDP/GNP growth momentum. We must now implement the PPP.

    • Ben

      I know, and agree with you mapster (try to change s c r e w, so your message will appear) that`s why I am trying to let them know their problem in a way I know I can, so everyone will press for more efficiency and cut the red tape…

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