Stop over-relying on foreign investments, government told

Features Philippines Jun 8, 2018 at 3:38 pm

Soon after the enactment of the Ease of Doing Business and Efficient Government Service Delivery Act, research group IBON said that the Duterte government should not depend on foreign investments for economic progress and job generation.

For expediency, the Ease of Doing Business Act or Republic Act (RA) 11032 simplifies the application process for the establishment of businesses in the country. Proponents say that RA 11032 aims to attract more foreign investments.

IBON said however that even after several decades of rising foreign investments, domestic industries and agriculture remain lagging, while the Filipino people continue to be mired in a poor jobs situation.

Foreign direct investments (FDI) have grown by 391% from US$664 million in 2013 to US$3.3 billion in 2017. But most of these investments have gone to foreign export enclave manufacturing, business process outsourcing, commercial and residential real estate, and transport infrastructure. These areas are profitable for foreign and local big business, but not necessarily beneficial to the country’s economic development, said the group.

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