The Philippines was the fourth largest recipient of foreign direct investments among countries in Southeast Asia but got a mere 5 percent of total FDIs that flowed into the region in 2020.
In its World Investment Report released yesterday, the United Nations Conference on Trade and Development, (UNCTAD) said FDI inflows to the Philippines plunged 24 percent last year to $6.54 billion, from $8.67 billion in 2019.
Last year’s FDI inflows approximated 2018’s $6.6 billion and the decline was at pace with the region’s.
Southeast Asia received $135.94 billion of FDIs in 2020 from $181.05 billion in 2019.
Singapore cornered bulk of the FDIs with $90 billion followed by Indonesia, $18 billion and Vietnam, $15 billion.
In a statement, UNCTAD said global FDI flows are expected to bottom out and recover some lost ground this year after falling by one third to $1 trillion in 2020, well below the low point reached after the global financial crisis a decade ago.
“Lockdowns caused by the COVID-19 (new coronavirus disease 2019) pandemic around the world slowed down existing investment projects, and the prospects of a recession led multinational enterprises to reassess new projects,” the report said.
It added the fall was heavily skewed towards developed economies although FDI in developing economies was relatively resilient. – Irma Isip
