The US remains one of the country’s top contributors of foreign direct investments.
While the United States has enumerated four sectors— renewable energy, information technology-business process management, semiconductors and agriculture — for priority investments, there are still roadblocks ahead.
Japhet Quitzon, one of the authors of the “Investment in the Philippines: The Next Era of Economic Partnership & Opportunity,” presented key highlights of the study yesterday in Mandaluyong City.
Quitzon said investors often cite bureaucracy, archaic regulations or perceived difficulty in doing business.
Although this has been a key priority of the administration, the study said the Philippines must work to foster a more investor-friendly environment to encourage further development.
Quitzon said investors also face constitutional roadblocks in investing in the Philippines.
However, that was partly been cleared up with the amendment to the Public Services Act allowing for foreign investment in infrastructure.
Quitzon also cited talks on potential constitutional change to allow for future business-friendly amendments.
“But until the 2025 midterm elections are over, we’ll have to wait and see,” Quitzon said.
The Philippines is the sixth largest recipient of US foreign direct investment in Asean and hopes to move up to number two.
The study recommended the diversification of investment locations in the Philippines.
“Traditionally, most investments are funneled into Metro Manila and its surrounding areas, but …that limits the scope. There are so many different urban centers within the Philippines that are just as deserving of investment,” Quitzon said.
One of them, he said, is Davao.
“The opportunity is right for US businesses to go in and find new areas for collaboration,” Quizon said,
But Quitzon noted US investments in the country have generally been underreported.
The study noted the need to create a comprehensive database of US investments. Currently, there are over 400 different special economic zones and 19 investment promotion agencies which all collect their data in very different ways.
“The US-Philippines economic relationship, though under-reported, is quite strong. US investment is a significant contributor to new jobs in the Philippines. The US remains one of the top contributors of foreign direct investments and development assistance to the Philippines,” Quitzon said.
