VILLAFUERTE: FOREIGN INVESTMENT DROP SHOWS SYSTEM IS NOT ATTRACTIVE ENOUGH
Camarines Sur Representative LRay Villafuerte on Sunday mentioned that the continous low foreign direct investments (FDIs) inflows to our country are proof of the current system is not enough to attract foreign investment.
He made the statement after the BSP reported that the FDI inflows dropped to a 20-month low in January to $448 million, or only 45.7% of the $824 million investments that entered the country in the same month last year.
Villafuerte said that although Philippines is one of Asia's economic outperformers the country is still experiencing a low inflow of FDI.
"If we do nothing to reform our 36-year-old Constitution by ridding it of its antiquated protectionist provisions restricting foreign ownership of, or participation in, Philippine businesses, the odds will remain against our country becoming an investment magnet in the region, despite its status as among Asia's fastest-growing economies pre-and post-pandemic," Villafuerte said.
Even the economic managers of President Ferdinand Marcos Jr. expect no significant reversal of the FDI downtrend in the near future as they had reportedly slashed country's 2023 FDI target to $11 billion from the original $12.5 billion.
The House of Representatives has approved on third and final reading Resolution of Both Houses 6 and House Bill 7352, that aims to amend the Constitution via Constitutional Convention (Con-Con).
Both measures are still pending before the Senate.
