DOF exec cites need for reforms to attract more FDIs

MANILA – A ranking official of the Department of Finance (DOF) says reforms should be implemented to encourage more foreign direct investments (FDIs) and improve the country’s investment environment.

In an economic bulletin dated March 13, 2019, Finance Undersecretary Gil Beltran said 2018 FDIs to the Philippines reached USD9.8 billion, a bit lower than the USD10 billion registered in 2017.

This drop is in line with the decline in global FDIs during the past two years, he said.

The lower global FDIs last year were traced to US-China trade issues, Brexit, and slower global growth.

Citing a study by the World Bank (WB), Beltran, who is also the DOF’s chief economist, said “foreign capital should be attracted to enhance more competition and efficiency in the economy.”

He also said that “drop in 2018 FDI is just a temporary phenomenon brought about by the uncertain world economic environment.”

“FDI flows will recover when world conditions are better. Meanwhile, the Philippines should implement reforms for a better investment environment,” he said.

Beltran also brought up the need to “drastically cut” red tape.

“In this regard, TradeNet.ph, among other digital infrastructure, should already be implemented. This will facilitate exports of manufactures,” he said.

The Finance department executive also said that restrictions on foreign ownership “should be eased” since the country is among the countries in Asia that has the most restrictive investment regimes.

Among those to be reformed is the Public Service Act (PSA), he said. “(This) should be amended to redefine public utilities and enhance competition to bring down cost,” he added. (PNA)