Marcos’ foreign trips and their possible implications on FDIs
MALACAÑANG INSISTS NINE OFFICIAL TRIPS IN PBBM’S FIRST SEVEN MONTHS IN OFFICE WILL BENEFIT PH
The Philippines’ readiness to do business with the rest of the world and the importance of partnerships dominated President Ferdinand “Bongbong” Marcos Jr.’s speeches in the nine official foreign trips he made in his first seven months in office. These were engagements that officials said have attracted investments.
Last year, Marcos undertook state visits in Indonesia and Singapore and working visits in the United States to join the 77th session of the United Nations General Assembly, in Cambodia to participate in the Association of Southeast Asian Nations (ASEAN), Thailand to join the Asia Pacific Economic Cooperation (APEC), and Belgium to take part in the ASEAN-European Union (EU) Commemorative Summit.
He also made a state visit to China, a working visit in Switzerland to participate in the World Economic Forum, and a state visit to Japan earlier this year.
During his trips, Marcos repeatedly cited policies designed to make the Philippines an attractive investment destination, including the amendments to the Foreign Investments Act, which made it easier for foreign investors to invest in the country, and the amended Public Service Act, which permits foreign investors to gain 100 percent ownership of public services, such as telecommunications, airports, railways, shipping, and expressways.
In his more recent travels, he also touted the Philippines’ strong economic fundamentals, including the 7.6 percent growth in gross domestic product last year. He likewise mentioned measures aimed at promoting fiscal discipline, investment opportunities in the fields of renewable energy, agroprocessing, transportation, and infrastructure development; boosting the agriculture sector and improving food production; and harnessing the Philippines’ young, well-trained, and English-speaking work force.
SMART INVESTMENT CHOICE
“With the efforts we have made towards maintaining a sound macroeconomic profile, providing business-enabling policies, and investing in big-ticket infrastructure projects, I hope we are sending the clear message that the Philippines is open for business and that the Philippines means business,” Marcos said during the Philippine Business Opportunities Forum in Tokyo last Feb. 10.
“When you think growth, think Philippines, so that together, we will reap the benefits of robust, sustainable, and inclusive growth for our businesses and for our peoples,” he added.
Marcos also acted as the Philippines’ salesman to investors, calling the country “Asia’s fastest rising economic star” in one of his speeches in New York.
“It is our belief that the Philippines is the smart investment choice and the best time to do business with us is now. We have grand opportunities, the timing, the window of opportunities for investment, and especially in capital intensive investments in the Philippines which is what we need now. We believe the time is now,” he said during the Philippine Economic Briefing last Sept. 22.
PARTNERSHIPS AND ALLIANCES
Another frequent message in Marcos’ speeches abroad is the need to create partnerships and reaffirm alliances as the world recovers from the pandemic.
In a roundtable meeting with business leaders in Phnom Penh last November, Marcos said the government “cannot do the recovery alone” and needs partners from the private sector.
“We have changed many of the policies and many of the procedures and regulations when it comes to public-private partnerships. And not only public-private partnerships but even government-to-government partnerships, purely commercial joint ventures, all these changes we have made to encourage those partnerships because we believe those partnerships are necessary,” the President said.
“The government can take care of (the) social aspect of service—public service and of course the areas in which there is no profit to be made ... However, private investment has a very clear field in the Philippines ... As we further discuss the different opportunities and the details of what are the possibilities, I am very confident that we will find areas that are in fact suitable for these partnerships,” he added.
According to Marcos, the Philippines is seeking partnerships in many areas of its development agenda including public infrastructure, digitalization initiatives, energy development, agriculture modernization, and programs aimed at strengthening industries.
“As we slowly rebuild the Philippine economy for rapid growth, we have created an even wider space for mutually beneficial investments. The Philippines is a reliable host for international partnerships,” he said in New York.
Recent geopolitical issues, Marcos argued, should also prod governments to forge publicprivate partnerships. “There is a growing need for the public sector to collaborate with private institutions, especially now that ASEAN member states are in a post-pandemic economic recovery and are facing new challenges brought about by recent geopolitical tensions, problems in the supply side, problems also with food prices,” Marcos said during the 10th ASEANEU Business Summit in Brussels last December.
The foreign trips also allowed Marcos to affirm the Philippines’ policy of being a “friend to all” and an “enemy to none.” In his meeting with Chinese President Xi Jinping in Bangkok last November, Marcos said the Philippines will adopt a “Cold War mindset” in its ties with other countries.
Marcos echoed the view during the APEC CEO Summit also in Bangkok, saying prosperity and progress “is only possible in a world that is at peace.”
“As nations of the world can never achieve our fullest potential unless we do it together,” he said.
INVESTMENT PLEDGES
While critics question the importance of Marcos’ trips—the Makabayan bloc at the House of Representatives even called for a probe on who shouldered the expenses of the Philippine delegation to Switzerland—officials insist that the country will benefit from the foreign travels.
According to an accomplishment report by the Department of Trade and Industry (DTI), Marcos’ foreign trips in Indonesia, Singapore, the United States, Cambodia, and Thailand have yielded $23.6 billion in investment pledges. The Board of Investments (BOI) and the Philippine Economic Zone Authority had a combined approved investment of P402 billion, which could create some 54,217 local jobs.
Under the Corporate Recovery and Tax Incentives for Enterprises Act, the BOI’s approved projects as of August amounted to P46.7 billion. It has also generated 90 foreign investment leads with an estimated value of P204.9 billion that could generate 98,393 local jobs.
Marcos said he expects to make fewer overseas trips this year to allow the government to follow up on the agreements discussed during his previous travels.
Malacañang has yet to release the costs of Marcos’ foreign travels but the President has argued that the success of the overseas trips is measured by the “return on investment.”
“Let’s say we get actual out of that one billion, the costs of all the eight trips will be compensated ... That’s the idea. And we did not only go to China. We went to Davos. We went to the EU, we went to ASEAN, we went to APEC. So in each of those, many pledges were signed,” he said in an interview with television anchors in Malacañang last month.
“Now, the measure of success will be, you know, cost benefit, very simple. How much effort did you put into it? It’s not just the money. It’s the time that you put into it. It’s the time and the effort that goes into (it).”