MANILA, Philippines – The Philippines has the potential to lure more foreign direct investments (FDI) this year to a level at par with other Southeast Asian economies, a top executive of the US business chamber in the country said.

American Chamber of Commerce of the Philippines senior advisor John Forbes told The STAR that FDI flowing into the Philippines in 2017 could hit the $10-billion mark on the back of several key reforms.

“FDIs could approach $10 billion in 2017 with better infrastructure, more foreign manufacturers entering the country, and an end to the moratorium on new mining, among others,” Forbes said.

“The mining sector is greatly underachieving its potential. We hope that after  the current Department of Environment and Natural Resources (DENR) inspections are completed, responsible mining will be encouraged and the moratorium on new mines will be lifted under the leadership of DENR Secretary Lopez. For labor policy, we encourage the endo policy to be clarified soon and recognize the need for seasonal, temporary, and outsourced employment. A strict policy on endo will certainly keep some new foreign investors away and may cause some here already to leave,” he added.

Despite the country’s growing FDI inflows, foreign business groups have lamented the Philippines continues to lag behind most of its Southeast Asian neighbors which are already receiving over $10 billion annually.

Latest data from the Bangko Sentral ng Pilipinas (BSP) showed FDI inflows expanded 25.3 percent to $5.87 billion in the nine months ending September 2016 from $4.69 billion in the same period the previous year.

The BSP said continued FDI inflows reflect investors’ confidence in the country’s economy on account of sustained growth prospects and strong macroeconomic fundamentals.

Source: https://www.philstar.com/business/2017/01/04/1659317/key-reforms-lure-10-b-fdi-year