IN every trip abroad, President Marcos Jr. does not miss the window of opportunity to sell the Philippines as an investment destination. The idea is to entice as many foreign investors and convince them to start businesses in the Philippines, and for those who have ongoing ventures, to expand their business activities here. The rationale behind this is to generate more jobs for Filipinos and further ramp up economic growth.
With the trip to Brunei Darussalam this week, the same schedule was followed. One of the highlights of the President’s state visit to this Asean friend is the Philippines Business Forum during which he again talked about merits and advantages of doing business in the country.
Marcos enumerated key fiscal and policy reforms such as the Retail Trade Liberalization Act, Foreign Investments Act, Public Services Act, and the Renewable Energy Act, and stressed that these new laws make the Philippines attractive for business ventures, both local and foreign.
He told Brunei’s business leaders that “the Philippines is making strides as a nation in terms of improving the ease of doing business, demonstrated by our efforts to simplify tax payments and regulatory processes.”
‘President Marcos was persistent in urging them to seriously consider the Philippines as their prime investment destination.’
This presidential rote will not necessarily translate into an investment route for foreigners if they find that the economic data being dished out, along with the physical business environment, do not fit the investment hype.
For one, the Philippine gross domestic product (GDP) in the first quarter of this year reached 5.7 percent, indicating just very little recovery at all. Socioeconomic Planning Secretary Arsenio Balisacan, however, cited the figure as among the highest in Asia.
Just a couple of weeks ago, President Marcos proclaimed that the Philippines will soon be a major contributor to the Indo-Pacific region’s economic activity.
“I am proud to share that our economic achievements have been outstanding. [In 2023], the Philippines’ 5.5 [percent] GDP growth surpassed major economies in Asia based on the latest available data,” the President said in his address at the 6th Indo-Pacific Business Forum in Taguig City.
“Foreign direct investments continue to flow in, with four consecutive months of expansion. Our investment pledges have also soared, reflecting a healthy pipeline of inward FDI,” he said.
Indo-Pacific Economic Framework (IPEF) partner countries play a significant role in the Philippines’ robust economic growth, contributing substantially to its FDI and approved investments, the President said, adding that through these economic strengths, the administration aspires to transform the Philippine economy into a regional hub for smart and sustainable manufacturing and services.
Secretary Balisacan said: “Despite our challenges on both domestic and international fronts, our economy continues to demonstrate remarkable resilience and growth. This performance retains the country’s position as a leading force among Asia’s emerging economies.”
He added that the government is doing all it can to contain the effects of the El Niño that has so far caused almost P6 billion in damage to agriculture as of the first week of May this year.
Both before the business leaders of Brunei and the 14 partner-nations of the Indo-Pacific region, President Marcos was persistent in urging them to seriously consider the Philippines as their prime investment destination. He even mentioned the strategic advantage of the country’s strategic geopolitical location in Indo-Pacific, its economic engagements, and participation in regional agreements.
If these marketing pitches produce sizable foreign direct investments in the months going forward, then we might say the President efforts are making success. If not, it is time for the government to return to the drawing board, review the economic projections and find out where they failed.
