Infra, tourism, and tech set to drive more foreign investments in PH
The Philippine Statistics Authority released data earlier this month that states a total of P241.89 billion worth of foreign investments were approved by investment promotion agencies (IPAs) last year, higher than the P192.55 billion recorded in 2021. In the fourth quarter last year, approved foreign investments reached P173.61 billion, up from the P133.47 billion in the same quarter in 2021.
According to Presidential Adviser for Jobs and MSMEs and non-profit organization Go Negosyo founder Joey Concepcion, these figures are set for further improvement as the national government puts into place programs that are designed to attract more foreign investors.
READY TO GROW
Concepcion says the economy is headed back to pre-pandemic levels.
“In terms of mobility, we are back there. In terms of spending, Christmas and the first two months of the year, it’s pretty good. With the prices of commodities, some of them are still up there but we are seeing some of them go down,” he adds.
Foreign investors will help the economy to grow even stronger, says Concepcion, who is also the president and CEO of RFM Corporation. “Whether foreign investors partner with local businesses or come here on their own, it generates more expansion of businesses or develop new businesses in new sectors, and as this expansion happens, they are hiring more people.”
According to Concepcion, two of the industries that can help attract more foreign investment are agriculture and tourism.
“Agriculture is one of the areas with the biggest opportunities. This is why we are launching KALAP or the Kapatid Angat Lahat for Agriculture Program with President Ferdinand ‘Bongbong’ Marcos Jr. This brings together Big Brothers who are established in agri businesses such as contract growing and contract farming. This has a huge opportunity for foreign investors, together with local businesses to expand the agricultural sector.”
He looks at the Bali, Indonesia model as an inspiration to grow the tourism industry, which he describes as an “unpolished gem.”
“I look at the number of planes landing every hour in Bali and the number of big hotels and international chefs that are setting up there and hope that we can do the same in places like Bohol. There’s no reason why the Philippines cannot attract them. Here, we have the most amazing beaches in the region and we have the Filipino culture of being friendly to our guests,” he adds.
PRESENTING THE PHILIPPINES
In Concepcion’s opinion, President Marcos has delivered effective roadshows in other countries, presenting what the country has to offer to potential investors. “It is the same thing as what a CEO like myself does. We travel to other countries and bring in our investors. The President clearly lays out programs on the ease of doing business, the future of our industries, and what they can invest in here.”
According to Concepcion, the reaction has been very good and the President’s global audience is impressed with his clarity on what he wants the Philippines to be.
“He clearly drives the point that whatever road blocks there may be, his government is open to correcting this immediately. His message resonates quite well,” he says.
The private sector contingent on these trips, he adds, helps to bring in investors and opportunities, as they are in the best position to talk about doing business from a local entrepreneur’s standpoint. “The business sector, which is basically running the economy talk about how business is doing, and through this, investor confidence goes up. From this, we can also open up to partnerships and joint ventures, because they find a local partner to navigate their industry with.”
And yes, there is still more work to be done.
“Now we need to see the follow through. After you present your mission-vision they are convinced through the execution part. Follow through doesn’t happen overnight. You need to continue to grow in order to be attractive for investments,” h e says.
FPATHWAYS TO PROGRESS
or Concepcion, everything is in place as far as legislation goes, which helps in the ease of doing business. “The Philippines also has a really good roadmap for infrastructure development, as a continuation of the past administration’s programs such as farm-to-market roads and the subway project,” he adds. “When we establish roads, those areas will boom and there will be more economic growth in the entire Philippines.” He also hopes for further improvement in the country’s airports to try and bring in more foreign tourists.
The LGUs also play a huge role in economic development, and establishing stronger partnerships between the governors or mayors and the private sector, with the help of the Department of Interior and Local Government under Sec. Benhur Abolos is very important.
“We have seen this in the case of Winston Uy, who is one of the biggest tobacco producers in the country. He is able to grow the business to the point of exporting his products with the support given to him by the local government, which was under former Mayor Eduardo Guillen who is now the head of the National Irrigation Administration,” notes Concepcion.
Adaptation to technology is another aspect that is helping the Philippines develop at a more rapid pace. He has seen the migration to digital in the past two years brought about by the pandemic, and many Filipino entrepreneurs are reaping the benefits.
One app that has helped to support the grassroots growth is Growsari, which connects sari-sari stores to big distributors.
OFWs are now also able to own businesses while working out of the country through franchises that they can monitor online. Each person or each household has an e-wallet account, and even the banks are now expanding digital services.
“We have a growing young Filipino techpreneur community that is attracting foreign investors as well,” Concepcion says. “Digitalization is disruptive, but in the end, it makes our economy more inclusive. Businesses have a greater chance of success, and that will help our country become more attractive to investors.”