By: Elena Grace Flores
It might be the sympathy over Philippines that attract foreign investors to invest in the foreign country rather than support the Association of Southeast Asian Nations or ASEAN bully which is China – that refused the international ruling at the Hague over the South China Sea disputes.China did becomea less attractive destination for investors, Credit Suisse said.
FDI inflow in the Philippines is now at a multi-decade high of $8 billion as of end-April, up from $6 billion in 2015 and $1 billion just five years ago – surpassing the Thailand’s FDI inflows. Japan and the US that are Philippine allies are key drivers for investments in the manufacturing and the finance sectors – though Vietnam remained to be the FDI magnet due to tax incentives and competitive labor force. Malaysia however is likely to sustain their FDI inflows.
On the other hand, the trend in Indonesia, Singapore and Thailand is weakening said Credit Suisse.
The Bangko Sentral ng Pilipinas sees FDI also confirmed that inflows are rising to $6.3 billion this year due to the country’s strong macroeconomic fundamentals plus the implementation of the relevant infrastructure projects made possible under the public – private partnership scheme.