Manila: Philippine President Benigno Aquino has vowed to attract more foreign investment so that his country can rise higher than half of the 10 member countries of the Association of Southeast Asian Nations (Asean) in development and inclusive growth before the integration of Asean economy in 2015.
Explaining his mission at the Economist magazine’s “The World in 2015 Review” forum, in Singapore on Tuesday, Aquino said it gave him “the chance to mingle with the businessmen [at the forum], spark their interest, and speed up the possibility of them investing in our country.”
He said attending business forums such as the one in Singapore, “instead of going through what is usually a long and costly process” is the best way to attract investments in one place.
He was one of the leaders interviewed at the award-winning conference series hosted by the Economist.
But Aquino’s dream and aim may not translate to business reality in the Philippines.
The country has one of the fastest growing Asean economies but it has remained unattractive to foreign investors because of power shortages, high energy cost, lack of infrastructure, perceived corruption, high cost of doing business, and labour politics.
All these things undermine earnings and profits, despite the attraction offered by an intelligent and English speaking labour pool, critics including local businessmen in the Philippines say.
In reaction to these complaints, Socio-Economic Planning Secretary Arsenio Balisacan told Gulf News before his departure for Singapore: “The best way to attract foreign direct investment (FDI) is to keep growing. We must also continue in getting our house in order.”
He did not give details.
FDI data in Asean showed the Philippines is not moving beyond its sixth ranking from 2013 and 2012.
The Philippines attracted $3.86 billion (Dh14.17 billion) foreign direct investment (FDI) in 2013.
In the same year, Singapore’s FDI was $60.64 billion; Indonesia, $18.44 billion; Thailand, $13 billion; Malaysia, $12.3 billion; Vietnam, $8.9 billion; Cambodia (seventh), $1.27 billion; Brunei, $908.4 million; and Laos, $426.7 million. Myanmar had no visible FDI in 2013.
In 2012, the Philippines attracted FDI amounting to $2.8 billion, and ranked sixth among ASEAN member countries.
In the same year, Singapore’s FDI was $59.81 billion; Indonesia, $19.14 billion; Thailand, $10.7 billion; Malaysia, $9.4 billion; Vietnam, $8.37 billion; Cambodia (seventh) $1.56 billion; Myanmar, $1.15 billion; Brunei, $864.8 million; and Laos, $294.4 million.
In 2011, the Philippines’ FDI amounted to $1.82 billion, and the country ranked between sixth and seventh in attracting FDI compared to other Asean member countries.
At the start of his two-day visit, Aquino paid a courtesy call on Singapore Prime Minister Lee Hsien Loong and was honoured with a luncheon by Singaporean President Tan Keng Yam.
