Upbeat
No. 03.25.14 No. 2106 10.30.2008
PHL, 2nd in Asia for improved investment climate The Philippines ranked second in Asia for improved investment climate, results of the Economist Corporate Network (ECN) survey showed. Global and multinational companies see marked improvement in the country’s business environment under President Benigno S. Aquino III's administration, the ECN survey added. Based on the survey, 49.1% of the respondents said the investment climate in the Philippines is improving, 44% stated it is the same, with only 6.4% saying it is getting worse.
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“The country’s macroeconomic fundamentals have strengthened, with the Philippines now enjoying one of the highest growth rates in the region, with low and stable inflation, as well as healthy government finances and positive trade balances,” ECN said.
It added that President Aquino has also made progress in tackling corruption, which have traditionally been big deterrents for investment, and promoting transparency and open government. On the other hand, 45% of the respondents said they are maintaining their level of investment in the Philippines. Also, the Asia Business Outlook survey showed corporate expectations for growth is high this year, with 46% of the respondents saying expectations have gone up, and only 12% said their expectations have declined. “Concerns about under-investment are greatest in industries that serve more mature market segments, the sort that flourish as economies get richer, such as financial services, pharmaceuticals and healthcare, and professional services,” ECN-Southeast Asia Director Justin Wood said. “Conversely, executives in more established sectors in Asia, such as core economic infrastructure (construction and logistics),or firstorder market opportunities (consumer and retail) are most likely to feel they have the investment mix right. It could be that markets for higher-end products and services in Asia Pacific are developing more rapidly than companies had anticipated, hence a sense of under-investment to keep up with the opportunity,” he added.
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