Foreign investment rules easing to boost inflows | Inquirer Business
Close  

Foreign investment rules easing to boost inflows

By: - Reporter / @bendeveraINQ
/ 05:11 AM November 03, 2018
Benjamin Diokno

Budget Secretary Benjamin Diokno. PHOTO BY EARVIN PERIAS

Foreign direct investments (FDI) to the Philippines would likely exceed the record $10 billion posted in 2017, partly as the recent issuance of the 11th Foreign Investment Negative List (FINL) is expected to entice more capital from overseas in sectors previously limited to local investors, Budget Secretary Benjamin Diokno said.

Diokno told reporters Wednesday that during his attendance at the 2018 World Investment Forum in Geneva, Switzerland, last week, economic officials from around the globe noted that global FDIs have been declining.

ADVERTISEMENT

“They were pleasantly surprised that while the whole world is declining, ours has increased,” Diokno said.

As of end-July, inflows of job-generating FDIs jumped 52.1 percent year-on-year to $6.7 billion, the latest Bangko Sentral ng Pilipinas data showed.

FEATURED STORIES

The climb in FDIs during the first seven months came on the back of the expansion in net equity capital investments by over five times to $1.8 billion while gross equity capital placements increased by nearly three times to $2 billion.

“We’re optimistic that FDIs [this year] will be much higher than the $10 billion last year,” Diokno said.

Diokno noted that the manufacturing, real estate and retail trade industries enjoyed the biggest increases in FDI inflows.

The budget chief was optimistic that with the issuance of the latest FINL, coupled with pending bills in Congress aimed at redefining “public service,” these moves “will boost FDIs in the country.”

The 11th FINL contained in Executive Order No. 65 issued by President Duterte on Oct. 29 allowed up to 100-percent foreign participation in the following sectors: internet businesses, teaching at higher education levels provided the subject being taught is not a professional subject or included in a government board or bar examination, training centers that are engaged in short-term high level skills development that do not form part of the formal education system, adjustment companies, lending companies, financing companies and investment houses, as well as wellness centers.

EO 65 also increased to 40 percent the participation of foreigners in the construction and repair of locally funded public works as well as private radio communications networks from 25 percent and 20 percent, respectively, previously.

Every two years, the government releases the FINL, which lists down sectors where foreign investors have only limited participation.

ADVERTISEMENT

The 11th FINL should have been released last year, but was delayed.

Subscribe to Inquirer Business Newsletter
Read Next
Don't miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Benjamin Diokno, foreign direct investments, Investments
For feedback, complaints, or inquiries, contact us.


© Copyright 1997-2020 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.