Legarda Lauds 21% Increase in FDIs for 2017March 13, 2018
Senator Loren Legarda today hailed the laudable increase in foreign direct investments (FDIs) to the Philippines in 2017 as she urged government to ensure that it would not only result in a more robust economy but also benefit all Filipinos.
Legarda, Chair of the Senate Committee on Finance, made the statement following the report of Bangko Sentral ng Pilipinas (BSP) Governor Nestor Espenilla Jr. that FDI net inflows reached a record high of $10 billion in 2017, up by 21.4 percent from the year-ago level.
According to the BSP, all major FDI components registered increases during the year. In particular, net equity capital investments expanded by 25.9 percent to US$3.3 billion, with gross placements of US$3.7 billion exceeding withdrawals of US$479 million. Equity capital placements originated largely from the Netherlands, Singapore, the United States, Japan, and Hong Kong. By economic activity, equity capital placements were channeled mainly to gas, steam and air-conditioning supply; manufacturing; real estate; construction; and wholesale and retail trade activities.
“We continue to see the positive effect of the administration’s sound economic policies in our growth statistics. More investments in the country would also translate to more jobs for our people,” said Legarda.
Last week, the Senator cited a report on the website of Business Insider, which ranked the Philippines first among the “The 20 best countries to invest in now.”
She also cited statistics from the Department of Trade and Industry’s Board of Investments (DTI-BOI), which showed that committed investments in the country increased to 39.5 percent in 2017 compared to the 2016 figure. In 2017, the BOI posted an all-time high of Php617 billion in committed investments, comprising of 426 projects that are expected to generate around 76,065 jobs upon full operations.
As to foreign investment projects registered with the BOI, Japan is the number one source for the year 2017 with Php8.864 billion, mainly in green ship recycling, chemicals, glass manufacturing, among others. This was followed by Singapore with Php3.497 billion, Australia with Php1.996 billion, British Virgin Islands with Php1.084 billion—all in renewable energy, and The Netherlands with Php1.074 billion (manufacturing).
Meanwhile, in the first two months of 2018, there has been 402.3 percent increase in approved investment projects compared to the same period in 2017.
BOI reported that it approved Php131.6 billion worth of investment projects in January-February 2018. Investment registration performance in January-February 2017 was at Php26 billion.
“All these statistics bring us hope for a better future for our nation, but this would only happen if we are able to bring progress down to our communities, to the farthest barangays in the country, to our most needy and vulnerable citizens. All these investments should translate to actual actions, projects, and programs that will truly impact the poorest of our poor,” Legarda concluded.***