Philippines Tops Foreign Investment Group in the ASEAN Region

The Philippines under the administration of President Rodrigo Roa Duterte was dubbed by the Oxford Business Group (OBG) as the leading or registered the highest rate of foreign direct investment (FDI) growth in the Association of the Southeast Asian Nations (ASEAN) region last year.

According to the ASEAN Investment Report they revealed that FDI to the Philippines grew by 40% between 2015 and 2016 to $7.9 billion. This increase, the largest in the association, saw the country become the fourth-highest recipient of FDI in the 10-nation group, up from sixth in 2015.

The positive trajectory bucked the overall trend in ASEAN, with FDI to the bloc as a whole falling by 20% between 2015 and 2016. Much of this decline was attributed to a drop in investment flows to Indonesia, Thailand and Singapore, which brought down the overall total.

Ambassador Marciano Paynor, Jr, the director-general for operations of the ASEAN 2017 National Organizing Council, told OBG the Philippines’ chairmanship was a chance for the country to showcase its credentials as an emerging economic power, which should open the door to new trade and investment opportunities.

“Our chairmanship during the 50-year anniversary of ASEAN signifies a coming of age for the bloc and a coming of age for the Philippines,” Mr. Paynor said. “As the economies of Southeast Asia continue to grow faster than most other regions, ASEAN will become increasingly important on the world stage. Under the current administration, the Philippines is also seeking a positive leadership role in regional affairs that reflects the growing status of our country.”

Although overall investment in ASEAN declined last year, intra-bloc investment increased by 12% to $23.9 billion, representing the first time intra-bloc trade constituted one-quarter of all ASEAN investment.

As part of the rise in internal ASEAN activity, manufacturing investment increased by two-thirds to $8.3 billion and investment in finance doubled to $5 billion.

This increase in trade comes amid targeted efforts to promote greater ASEAN collaboration, with 2016 representing the first year of implementation of the ASEAN Economic Community (AEC), which aims to establish a highly integrated and cohesive economic bloc by 2025.

Source: Bloomberg

Philippines Tops Foreign Investment Group in the ASEAN Region Philippines Tops Foreign Investment Group in the ASEAN Region Reviewed by Phil Newsome on December 08, 2017 Rating: 5
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