Trade & Investment

Although foreign direct investment (FDI) volumes are smaller than what countries in its peer group attract, the Philippines has been catching up at an impressive pace. FDI rose from $1.1bn in 2010 to $4.9bn in the first nine months of 2014 as economic growth has accelerated and business policies have improved. With seven investment promotion agencies offering a variety of tax exemptions and other benefits, the Philippines provides considerable incentives to attract foreign investment. FDI is likely to continue to grow as low oil prices benefit consumers of the Philippines’ electronics and business process outsourcing services exports. In the long run, the country’s success will depend on whether it tackles the tough issues of institutional reforms and infrastructure investment.

This chapter contains an interview with Alfred M Yao, President, Philippine Chamber of Commerce and Industry; and a roundtable with Arthur P Tugade, President and CEO, Clark Development Corporation; Deogracias G P Custodio, Chairman and Administrator, Freeport Area of Bataan; Lilia B de Lima, Director-General, Philippine Economic Zone Authority; and Roberto Garcia, Chairman and Administrator, Subic Bay Metropolitan Authority.