Direct Foreign Investment

Highlights
According to an article by Business Mirror, our country has what it takes to hit $8.2
billion Foreign Direct Investment (FDI) target for 2018. Here are the highlights: First,
Bangko Sentral ng Pilipinas (BSP) reported a significant rise in FDI, amounting to $2
billion alone in October 2017. Second, FDI—or the nonresidents’ investment to the
Philippines in search for longer-term yield—grew by about 200 percent, from the $670
million seen in the same month in 2016. The month’s inflow is also significantly higher
than September’s $754 million. Third, FDI inflows to the Philippines in January to October
2017 hit $7.86 billion, only $140 million shy of the BSP’s $8-billion FDI projection by end-
2017. Fourth, upswing in FDI reflects continued investor confidence in the country’s
strong macroeconomic fundamentals and growth prospects. Fifth and last, optimism is
high for the Philippines’s foreign direct investments (FDI) this year.
In another article by Rappler, our country already exceeded the Foreign Direct
Investments target for 2017. Here are the highlights: First, FDI net inflows amounted to
$869 million in November 2017, higher by 16.9% than the $744-million level posted in the
same month in 2016. Second, net equity capital inflows grew by 38.7% to $210 million,
as equity capital placements of $228 million more than offset the $18 million in
withdrawals. Third, bulk of gross equity capital investments came from Singapore, Hong
Kong, Luxembourg, China, and the United States. Fourth, reinvestment of earnings
amounted to $56 million in November 2017. Fifth and last, sustained FDI inflows reflected
investor confidence given the Philippine economy's solid macroeconomic fundamentals
and growth prospects.
 Direct Foreign Investment

Critique
The strong performance by the Bangko Sentral Performance (BSP) last year
towards the Foreign Direct Investment shows that our country can be competent once
again or even reclaim our title as the most trusted and progressive nation in South East
Asia. As stated in the article, the inflows from January to October rose to almost 7 billion
dollars which means that investors are pouring in from different countries all over the
world. This was a good way to end the year 2017 because it can be carried on in 2018
and this could provide many opportunities to our fellow countrymen and potentially to our
economy that could put us on top once again. Also, this positive news could greatly
counter the burden brought to us by the Tax Reform for Acceleration and Inclusion
(TRAIN) because of its side effects which is an increase in the prices of certain
commodities.
Now, with this tax reform the Philippines greatly needs aid from our neighbors or
from other countries and thanks to this performance by our Central Bank, a progressive
and greater Philippines for 2018 can be foreseen. What does it imply for the investors?
The statistics published by the Bangko Sentral ng Pilipinas or BSP together with their
valiant efforts attracts many investors in the future. This means that the country will once
again be considered as a haven for resilient investors who wants to establish a company
or business. In line with this, I would highly suggest to our administration to further
strengthen our relations with other nations because as stated in the article by Rappler, a
part of the country’s positive performance in Foreign Direct Investment is our neighboring
countries and as well as other countries, so we must be more active in trading and
investment activities between nations and extend an effort to emphasize the essence of
investment to young individuals. As a business student and a future professional, I can’t
wait for the changes and transformation in our country, in terms, of agriculture, job
opportunities, etc. as this would help in fulfilling our dreams of having a competitive and
strong country.
 Direct Foreign Investment

Sources:
Cuaresma, B. (2018, January 13). PHL has what it takes to hit $8.2-billion FDI target for
2018. Retrieved from https://businessmirror.com.ph/phl-has-what-it-takes-to-hit-8-2-
billion-fdi-target-for-2018/
Dela Paz, C. (2018, February 12). Philippines exceeds foreign direct investments target
for 2017. Retrieved from https://www.rappler.com/business/195851-philippines-exceeds-
foreign-direct-investments-target-2017-bsp