DTI Credits Presidential Trips for Surge in Foreign Investments

MANILA — The Department of Trade and Industry (DTI) has attributed the recent growth in foreign investments in the Philippines to the overseas engagements of President Ferdinand R. Marcos Jr., emphasizing the significant impact of these official visits on the country’s economic landscape.

According to Philippines News Agency, the Bangko Sentral ng Pilipinas (BSP) reported a 27.8 percent increase in net foreign direct investments (FDI) inflows for November 2023, reaching USD 1 billion. This upsurge contributed to an 11-month net FDI inflow total of USD 7.6 billion. Additionally, the Philippine Statistics Authority (PSA) revealed a 127.2 percent rise in foreign investment pledges in the fourth quarter of 2023, amounting to PHP 394.45 billion.

Pascual highlighted the success of President Marcos Jr.’s international visits in fostering goodwill and initiating projects that have begun to bear fruit, as evidenced by the latest FDI reports. Notably, there was a marked increase in FDIs in the manufacturing sector and a significant boost in investments from Germany.

The DTI Secretary further commented on the Philippines’ emerging status as a prime investment location in Asia, driven by the government’s dedication to creating a favorable environment for economic growth. He reiterated the goal set by Marcos for the Philippines to become the second top destination for FDIs in Southeast Asia by the end of his term in 2028.

To sustain this momentum, Pascual underscored the importance of converting investment pledges made during presidential visits into tangible projects that will generate employment opportunities for Filipinos. He expressed confidence in the continuous effort to attract more investments to the Philippines through such diplomatic engagements.

In addition, Nicholas Mapa, a senior economist at ING, during a roundtable discussion, pointed out the role of recent legislative reforms in easing foreign investment restrictions across various sectors, contributing to the country’s attractiveness as an investment destination. Mapa advocated for further improvements in efficiency, infrastructure, and power costs to enhance the Philippines’ appeal to foreign investors.

As discussions on amending the Constitution to relax economic restrictions continue, addressing existing business challenges remains a priority for boosting the Philippines’ competitiveness in attracting foreign investments.