Responding to latest reports indicating increased foreign direct investments (FDIs) in the country, Department of Trade and Industry Secretary Alfredo Pascual said that this reflects the trust and confidence placed on the country’s economic potential by the global business community.

“This only strengthens our commitment in further improving the country’s business environment to attract even more foreign investments, which in turn will create more jobs and sustain our economic growth,” Pascual said.

“In particular, we are leveraging our strengths across key sectors such as manufacturing, real estate, construction, and wholesale and retail trade,” he added.

Upward trajectory

The DTI chief said that the upward FDI trajectory is primarily driven by a 173.2 percent increase in nonresidents’ net investments in debt instruments, reaching $820 million from $300 million in January 2023.

Reinvestment of earnings also saw a positive trend, rising by 16.4 percent to $99 million.

Although net equity capital placements, excluding reinvestment of earnings, saw a slight outflow of $11 million compared to net inflows of $93 million in January 2023, the report emphasizes the overall positive aspects.

Equity investments during this period came primarily from Japan and the United States, targeting strategic sectors of the Philippine economy.

Pascual said the DTI remains focused on further attracting significant investments in these essential sectors and other high-growth industries.

By bolstering these foundational industries, he said “the Philippines can create a more robust and resilient economy.”

Trilateral Economic Ministers Meeting

The FDI announcement comes ahead of the Trilateral Economic Ministers Meeting, scheduled for 11 April 2024, in Washington, D.C.

Said milestone meeting will bring together US Commerce Secretary Gina Raimondo, Japan’s Ministry of Economy, Trade and Industry Minister Ken Saito, and DTI Secretary Pascual. The meeting is aimed at exploring new trade and investment avenues that promise to generate business, create jobs, and foster sustainability.

Past engagements, including Secretary Raimondo’s recent successful trade and investment mission to the Philippines and discussions during the ASEAN-Japan Economic Co-Creation Forum, have set the stage for future collaborations.

These efforts underscore the robust economic ties between the Philippines, the United States and Japan.

Under the leadership of President Ferdinand R. Marcos Jr., the Philippines is keen on enhancing its investment climate.

The upcoming trilateral meeting is expected to unlock further trade and investment opportunities, in alignment with the government’s objectives to improve infrastructure, upskill workers, ensure environmental sustainability, and invigorate the private sector with meaningful initiatives.