PH turning into investment magnet

MANILA — The Philippines’ reputation for attracting foreign direct investments (FDIs) is “turning for the better,” thanks to continued reforms and economic stability over the past decade, HSBC Global Research said.

In a commentary sent to journalists, HSBC said the “bearish view” on the Philippines may be “dated” and perhaps “incommensurate” with what the country has recently achieved. Such optimism stemmed from the country’s “strong narrative of reform” and “a large sense of macroeconomic stability.”

“If we look at FDI inflows relative to the size of the economy, the Philippines is, in fact, in the middle of the pack in Asean (Association of Southeast Asian Nations),” HSBC said.

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”FDI inflows may not be as robust as say, Malaysia and Vietnam, but they are a sizable improvement from the sluggish inflows seen in the 1990s and the early 2000s. This, we believe, should be enough evidence to show that the country’s reputation [for] attracting FDI is, indeed, turning for the better,” it added.

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The urge to open up the economy to more foreign capital has prompted lawmakers allied with President Marcos to propose amendments to the protectionist provisions of the 1987 Constitution. But similar to past attempts to revise the charter, the move has been met with criticisms amid fears that the incumbent would only extend term limits. INQ