The Philippines has slipped by one notch in terms of attractiveness to foreign investors among emerging economies, according to a report by global consultancy firm Kearney.
In Kearney's 2024 Foreign Direct Investment (FDI) Confidence Index for emerging markets, the Philippines now holds the 13th position, down from 12th place in the previous year.
However, the Philippines still ranks higher than Vietnam, which dropped from 13th place in 2023 to 18th place this year.
In ASEAN, Thailand emerged as the most attractive destination for foreign investors, securing the 9th spot, followed by Malaysia at 10th place, with Indonesia ranking 12th.
Singapore is not on the emerging markets list because it is considered a developed market. The city-state is ranked 8th in Kearney's global 2024 FDI Confidence Index.
The Philippines' drop in Kearney's ranking was in line with the recent FDI report by the Bangko Sentral ng Pilipinas (BSP), showing a decline for the second consecutive year.
According to the BSP, the country's FDI net inflow decreased by 6.6 percent to $8.86 billion from January to December 2023 from $9.49 billion in the previous year.
Former Finance Secretary Margarito B. Teves attributed the slow FDI inflow in the Philippines to Constitutional restrictions on foreign ownership.
Teves pointed out that the country falls behind its Southeast Asian neighbors like Indonesia, Vietnam, Malaysia, and Thailand in attracting foreign direct investments.
Teves said that the Philippines is unique in the Asian region for having constitutional barriers to foreign ownership.
He recommended revising the 1987 Constitution to allow foreign companies full ownership in key sectors, stating that this change would send a positive signal to foreign investors.