GAINS. RCBC chief economist Michael Ricafort eyes the possibility of greater cooperation between the Philippine goverment and the private sector with those of their counterparts around the world during the five-day World Economic Forum (WEF) that started on Jan. 16, 2023. The event is also seen to boost foreign direct investments (FDIs) and foreign portfolio investments into the Philippines. (Screengrab from PTV)
MANILA – The attendance of the Philippine delegation to the World Economic Forum (WEF) annual meeting in Davos, Switzerland will likely attract foreign direct investments (FDIs) and portfolio investments to the country, an economist said Wednesday.
Aside from business-related opportunities, Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort said opportunities to further improve technological innovations in the country are also expected to open up for the country through the WEF.
“Ito po ay talagang pagkakataon na hindi dapat pinapalagpas when it comes to ties, linkages and relationships with the most powerful country, the biggest businesses and also iyong mga eksperto (This is an opportunity that should never be missed when it comes to ties, linkages and relationships with the most powerful country, the biggest businesses and also the experts),” he said in a Laging Handa briefing.
Ricafort said the Philippines’ potential cooperation with advanced economies is in terms of FDIs and foreign portfolio investments, otherwise known as hot money due to the speed it comes in and out of an economy.
He said the second factor is linkages with the biggest multinational companies, which can place their funds into the Philippines or expand existing operations here.
He said officials of multilateral agencies are also expected to attend the event and the Philippines is seen to benefit from this since these agencies are among the country’s sources of financing, such as for concessional loans that have lower interest rates and longer term, for various projects such as on infrastructure.
He said possible technical assistance from these agencies benefits the country, such as those related to technology transfer and productivity improvements eyed to address, among others, inflation, food security and increased productivity.
“Bihira lang po ito, at least once a year, at kari-resume lang po ngayon. Ang trabaho po talaga ng pamahalaan ay manghikayat pa po ng maraming investment para maglikha po ng maraming trabaho, iyon po kasi ang bottom line ng lahat ng iyon. (This is a rare opportunity, (the event is being held) at least once a year, and it has just resumed. The government’s job is to encourage more investments to create more jobs. That’s the bottomline),” he said.
President Ferdinand R. Marcos Jr. is currently in Davos to attend his first WEF annual meeting.
Prior to his departure, Marcos said he would cite what the country is doing to address fragmentation such as those involving the government and its bid to partner with its counterparts around the globe. (PNA)
