Why I see more investments coming (Sabong News)
Author
John Tria
Date
APRIL 18 2022
The amount of foreign direct investment received in a year is a metric often cited by analysts to show investor interest in a particular economy.
The recent report that 10.5 billion dollars in foreign direct investment was gained by the country in 2021 is higher than the previous record of 10.2 billion in 2017, and the 5.6 billion in 2015. Looking at the BSP data, i was frankly surprised that total foreign direct Investment in 2020 during the pandemics first year was 6 billion dollars, still higher than 2015. These figures and trends show heightened interest in the Philippine economy as a venue for investment.
Many have opined that these FDI figures would have been higher if barriers against foreign ownership in many sectors were relaxed. But with the amended foreign investments, public service act and RTLA that opens more sectors to foreign investors, we will expect more investments coming in.
Why are these higher foreign direct investment figures important? This is because investments bring jobs and technology that can supercharge the economy, boost our recovery.
As i have written last week, investments in sectors like responsible mining, modern agriculture and manufacturing will add value to the local products and resources and therefore, create downstream industries making them more competitive and expanding the capability to generate jobs. This broadens the economy, making it more inclusive especially for the regions outside Metro Manila where these sectors are. In addition to this, having more manufacturing and agroprocessing makes our economy resilient to external shocks and even calamities.
With heightened investor interest a clear imperative for local communities therefore is to capture and expand investments . This can be done through a partnership between national and local governments and the private sector.
A concrete suggestion is to activate an investment generation committee in each regional development council (RDC) where private sector groups and public sector agencies can collaborate to mount investment promotion and capture activities such as webinars showcasing local investment priority plans, local incentives and areas for investment.
Investsments such as manufacturing create oportunities for local economies, from employment generarion and supply arrangements for local businesses like canteen concessions, uniforms and facility maintenance contracts. Growing employment also boosts a demand for construction and housing.
Investment promotion and capture activities can also gain buyers for local and export products and investors in the larger MSME sector in areas such as tourism, hotels and restaurants as higher demand makes investment more viable.
Such a committee can set targets to attract more of the investments every year. The constantly updated Investment Priorities Plans (IPPs) can serve as a useful guide, and the regional physical framework and land use plans can identify specific locations that are ready for investment and can easily access key infrastructure such as ports, highways, airports, cold storage and warehouse complexes.
Investment generation in local communities is thus a very important aspect of strengthening local economies. It is a partnership between government and the private sector.
This positively affects the local business climate, creating an encouraging situation for new investors to come in previous ones, and former residents to return, and existing ones to expand.
Where this partnership is strong, investments and opportunities are also high.
For history buffs, an upcoming virtual book launch of “Guerrilla Days in the Philippine South” by Drs. Cesar P. Pobre and Ricardo T. Jose on Wednesday, April 27, 2022 at 1 p.m. via Zoom (Meeting ID: 990 4030 9143/ Passcode: 802117) will ooen many eyes to Mindanao history.
