Phl faces challenges in investment growth

DESPITE FATF GRAY LIST EXIT

- KEISHA TA-ASAN

Choon Hong Chua, head of financial crime practice group for Asia-Pacific and Middle East at Moody's, said the removal of the Philippines from the gray list reflects its commitment to strengthening its anti-money laundering (AML) and counterterrorism financing (CTF) frameworks.

Chua said exiting the list of jurisdictions under increased monitoring by the global dirty money watchdog would boost investor confidence and financial stability.

"The Philippines has enhanced inter-agency coordination and has implemented comprehensive reforms. However, money laundering risks are not easy to sweep out entirely. Businesses such as online gaming and cryptocurrency would be areas beyond the financial sector that would require continuous oversight to mitigate potential risks," Chua said.

Citi emerging markets economic research head Johanna Chua said that getting off the gray list is important but it is not a game-changer in terms of attracting large-scale foreign investments.

"It's great to be out of the gray list, but I don't think this is necessarily going to translate to a kind of meaningful diversion of opportunities in manufacturing because clearly it takes a lot more than that," she said.

She added that the Philippines needs stronger infrastructure investments, similar to India, where sustained public capital expenditures, favorable tax reforms and incentive programs have made it a more attractive destination for manufacturers seeking diversification.