MANILA, Philippines–The Philippines should lift restrictions on foreign equity and deregulate critical sectors such as infrastructure to enable the country to better capitalize on the gains brought about by sustained robust economic growth, global publishing, research and consultancy firm Oxford Business Group (OBG) said Thursday.
“One of the sectors we’re particularly keen on is infrastructure because (its inadequacy) is holding back a lot growth, especially in the regions. We would like to see removal of the restrictions on equity holding for foreign investors … as many multinational companies are finding it hard to set up operations here,” said OBG managing editor for Asia Paulius Kuncinas said on the sidelines of the OBG launch of the “The Report: The Philippines 2015.”
OBG CEO Andrew Jeffreys said in a statement issued at the press briefing that investors were taking note of the Philippines’ favorable demographics, improving governance and strong economic growth, which is expected to remain close to 6 percent up to 2020.
“While the country’s large, qualified workforce has long been recognized as one of its strengths, our new report indicates that untapped potential is greater than ever, particularly in rapidly developing sectors, such as IT. Public and private efforts to support local technological innovation should increase the sector’s prospects for growth, with anticipated new infrastructure a bonus,” Jeffreys said.
According to Kuncinas, the Philippines is considered one of the “hottest, most attractive investment destinations not just in the region but also globally.”
“It’s all about the Southeast Asia now, which is seen as an alternative to China and India. A very serious proportion of multinational companies are here and they’re looking at the Philippines for an investment opportunity,” Kuncinas noted.