Foreign chambers urge gov’t to intensify efforts to increase FDIs

MANILA -- The Joint Foreign Chambers of the Philippines (JFC) has urged the government to intensify its efforts to have a turnaround on foreign direct investment (FDI) inflows in the second half of the year.

In a statement issued Wednesday, JFC said investors’ confidence toward the Philippines will improve if the country will enact key legislative measures, accelerating infrastructure projects, and efficient regulations.

JFC noted that in the first semester of 2015, net FDI in the Philippines sharply declined by 41 percent to $2.0 billion from $3.4 billion in the first half of 2014, which is higher compared to Indonesia’s and Malaysia’s decrements of 24 percent and 10 percent, respectively.

While the Philippines’ FDI is decreasing, FDI inflows of its competing ASEAN neighbors like Thailand and Vietnam were increasing by 57 percent and 40 percent in H1 2015.

“The Joint Foreign Chambers in the Philippines are hopeful that the reported decline in net FDI in the economy during the first half of 2015 is temporary and that the second half will see higher levels to bring the final 2015 total close to 2014,” it stated.

JFC pushes the legislative branch to enact bills that will attract foreign investments, including Customs Modernization and Tariffs Act, Freedom of Information Act, creation of a Department of Information and Communications Technology, as well as amending the Apprenticeship Act, Build-Operate-Transfer Act, Foreign Investment Negative List, and Right-of-Way law.

The business group also pushed for the improvement of infrastructure through public-private partnership and acceleration of projects’ implementation; avoiding the recurrence of port congestion caused by truck bans; reducing traffic congestion in Metro Manila; reducing delayed flights in main airports; avoiding brownouts; and timely processing of tax refunds for eligible companies.

“The challenge is to increase FDI in the second half of the year and thereafter to even higher levels important for high, sustained, and inclusive growth,” JFC said.

The JFC is composed of local arms of overseas business chambers of America, Australia-New Zealand, Canada, Europe, Japan, Korea as well as the Philippine Association of Multinational Companies Regional Headquarters.

JFC represents 3,000 member companies trading more than $230 billion with the Philippines and investing some $30 billion in the local market.