The Philippines is still a lucrative destination for foreign investors with its long-term favorable growth prospect being bolstered by a strong recovery in foreign direct investments (FDI), the Department of Finance (DOF) said.

Finance Undersecretary Gil S. Beltran said on Thursday, Jan. 19, noting that the continued recovery in FDI in October last year manifested that the country remains positive in the eyes of investors.

In October 2021, FDI jumped 98.9 percent to $855 million from $430 million a year earlier.

Beltran noted that the October FDI was also 11.9 percent larger than the 2019 level of $764 million.

“The continued year-on-year recovery of FDI during the first 10 months of the year suggests that the Philippines’ long-term prospects remain positive in the eyes of investors,” said Beltran, who is also the DOF’s chief economist.

“Sustaining the pace of our vaccination drive and responding appropriately to risks posed by the virus and its variants will be key in maintaining investor confidence,” he added.

Cumulatively, the FDI level for the first 10-months of 2021 totaled $8.1 billion, 48.1 percent higher than the $5.5 billion recorded in the same period last year.

Beltran said the end-October foreign investment count is close to a quarter, higher than the 2020 full-year FDI of $6.6 billion, and 22.8 percent more than the $6.6 billion in the first ten months of 2019.

Year-on-year increases in reinvestment of earnings and net debt instruments of 11.9 percent and 78.6 percent, respectively, mitigated the 5.2 percent decline in net equity capital investments for the period.

“Net equity capital investments for the period were primarily in the manufacturing, electricity, gas, steam, and air conditioning, financial and insurance, and real estate industries,” Beltran said.

The considerable year-on-year increase in net debt instruments continued to significantly contribute to the growth in FDI observed in the first 10 months of the year, he added.

Meanwhile, Beltran reiterated the need to pass the proposed Capital Markets Development Act, or House Bill No. 9343, citing the measure will increase demand for financial securities and support the continued growth of FDI.

“Additionally, the recently passed amendments to the Retail Trade Liberalization Act, along with other economic liberalization reforms such as the amendments to the Foreign Investment Act (FIA) and the Public Service Act (PSA), if passed, will be instrumental in mobilizing more investments into the country and resume the path to an investment-led growth,” he concluded.