Thirty-six countries, including the Philippines, have implemented critical investment policy measures within the year, all aimed at further easing the entry of foreign investments in their respective economies.
This was according to the latest Investment Policy Monitor by the UN Conference on Trade and Development (Unctad), which noted a total of 53 policy measures implemented from May 1 to October 15 this year.
These policies, which were aimed at further liberalizing the investment climate of a particular country or territory, were deemed significant, as boosting “foreign investment was seen as an important means of reviving a stagnant global economy,” the Unctad said.
“Among the most important policy measures are the adoption of new investment laws in Algeria, Myanmar, Namibia, and Tunisia. Other important developments during the reporting period are the adoption of a comprehensive liberalization strategy in India, a partial abolition of the approval system for the establishment of foreign enterprises in China, and opening up policies in various industries in Bahrain, Indonesia, Philippines and Saudi Arabia,” the policy monitor stated.
The Philippines, along with 23 other countries, was found to have adopted new policy measures relating to the entry and establishment of foreign investors.
Most of these countries relaxed restrictions on foreign ownership or opened up new business opportunities.
Of these 24 countries, 12 were found to have among the “most noteworthy investment liberalization measures.”
These are Argentina, Australia, Bahrain, China, India, Indonesia, Kenya, Kuwait, Myanmar, Philippines, Saudi Arabia, and Ukraine.
The Philippines, meanwhile, was noted for allowing “100 percent foreign ownership in insurance adjustment companies, lending companies, financing companies, and investment houses.”
“Investment promotion and facilitation measures also play a significant role. Most measures were taken by developing countries and transition countries,” the policy monitor added.
The policy monitor also noted the conclusion of more international investment agreements (IIAs) and the move by the G20 leaders—representing over two thirds of global foreign direct investments—to adopt the Guiding Principles for Investment Policymaking.
These guidelines aim to promote a better, more coherent policy environment at the global level and promote foreign direct investment for inclusive economic growth and sustainable development.
The Philippine government, since the last administration, has made significant strides in opening up the local economy as seen in retail trade, the liberalization in banking, the passage of the Competition Act, and amendments to the Cabotage Law.
The current administration was seen heading toward the same direction with Trade Secretary Ramon Lopez earlier announcing that the Department of Trade and Industry (DTI) would be pushing for a more liberalized Philippine economy to allow the entry of more players in industries where foreign ownership or participation is currently restricted.