28-3-2024 (MANILA) The Philippines is experiencing a positive shift in its reputation for attracting foreign direct investments (FDIs), according to HSBC Global Research. Over the past decade, ongoing reforms and economic stability have contributed to this improvement, the bank stated in a commentary shared with the media.
HSBC highlighted that the previous “bearish view” on the Philippines may now be outdated and inadequate given recent achievements. The country’s strong reform agenda and stable macroeconomic environment have fostered optimism.
Comparing FDI inflows to the size of the economy within the Association of Southeast Asian Nations (ASEAN), HSBC noted that the Philippines ranks in the middle. While FDI inflows may not match those of countries like Malaysia and Vietnam, they represent a significant improvement from previous decades.
This progress indicates a notable turnaround in the Philippines’ reputation for attracting FDIs, according to HSBC.
Efforts to open up the economy further to foreign investment have led lawmakers aligned with President Marcos to propose amendments to the protectionist clauses of the 1987 Constitution. However, these proposals have faced criticism, with concerns raised about potential extensions of term limits for incumbent officials, echoing past attempts to revise the charter.
