Businesses push gov't for action amid FDI lag

Federation of Filipino Chinese Chambers of Commerce and Industry Inc. (FFCCCII) President Victor Lim stated that the government must focus on stringent reforms to attract foreign direct investments (FDIs).

- By DEXTER BARRO II

In a report by the United Nations Conference on Trade and Development (UNCTAD), the Philippines was found to lag behind its peers in the Association of Southeast Asian Nations (ASEAN).

Last year, the country saw $8.94 billion in FDI net inflows, only the sixth highest among the 10 countries belonging to ASEAN.

Lim, who heads the prominent Filipino Chinese business group comprising over 170 business and trade associations, said there should also be a focus on improving tourism arrivals by addressing concerns in peace and order, alongside the improvement of infrastructure systems.

For Financial Executives Institute of the Philippines (FINEX) President EJ Qua Hiansen, he said the administration should have a close eye on the country’s increasing fiscal deficit, with the budget shortfall reaching P523.9 billion as of end-May.

He also sounded the alarm amid the rise in public debt from P14.62 trillion at end-2023 to the record-high P16.75 trillion by the end of April, alongside the debt-to-gross domestic product (GDP) ratio which stands at 62 percent.

With this, Hiansen is urging the government to consult more stakeholders in the development of the country’s annual budgets.

In February of this year, FINEX joined the Makati Business Club (MBC) and other influential business organizations in appealing to Marcos to make the budget process more transparent.

The groups, in particular, questioned the allocations for aid programs in the 2025 national budget, which reduced allocations for projects covering healthcare, social services, and education.