Drilon worries over drop in foreign direct investment

SENATE Minority Leader Franklin Drilon has expressed concern over the huge drop in new foreign investments in the first half of this year.

Citing data from the Bangko Sentral ng Pilipinas, Drilon said foreign direct investments (FDI) shows a significant deceleration in the influx of new investments with foreign equity placements other than reinvestments of earnings decreased by 90.3 percent during the first six months of 2017 ($141 million) in relation to the same period in 2016 (US$1.448 billion).

At the hearing on National Economic and Development Authority's (Neda) proposed 2018 budget, Drilon asked why the amount of new foreign investments has declined this year.

“We note from the reports that there is a deceleration in new investment. This is very alarming. Why such a huge drop? Is this an indication of anything?” Drilon asked.

Senate committee on finance chair Loren Legarda said Neda has told the panel that the 90.3 percent plunge in FDI was caused by some restrictions.

Even Legarda admitted that she does not agree on the answer, “I am told that it is because of certain restrictions.