NEDA Director General Secretary explains the efforts of the Marcos administration to improve the business climate in the Philippines amid the efforts to lure more foreign investors during the Build Better More Infrastrcuture Forum at the New Clark City in Tarlac on Friday, july 12, 2024. 

High power cost in the Philippines remains one of the major concerns by foreign investors as the Marcos administration aspires to lure more investments to fully recover from the adverse effects of the Covid-19 pandemic and eventually improved the country’s economic standing.

National Economic and Development Authority (NEDA) Director General Secretary Arsenio Balicasan said the issue was raised in the country’s road shows abroad as part of the efforts to convince foreign investors to put their money in the Philippines.

“There are issues they raised that we have to pay attention to. Cost of energy for example is a persistent concern, that is why the Department of Energy has to address the issue,” said Balicasan during the Build Better More Infrastructure Forum at the New Clark City in Tarlac organized by the Presidential Communications Office (PCO). 

Balicasan, however, said that while the Energy department is into it, there is a need for a whole-of-government approach to effectively address the high electricity cost in the Philippines.

Power cost in the Philippines is expensive compared to its Southeast Asian neighbors, which means that Filipinos pay considerably higher compared to their neighbors from Indonesia, Vietnam, Thailand and Malaysia.

High energy cost has been a perennial problem in the country and is considered as one of the major reasons why foreign investors would prefer putting their money in other countries.

Aside from the high power cost, Balicasan said another major concern is the ease of doing business in the Philippines, mainly due to bureaucratic rules that cause delays even in securing business permits.

But Balicasan said there has been significant improvements relating to this concern: “About ease of doing business, we are making headway here.”

During the second day of the forum on Friday, July 12, Balicasan stressed the importance of more investments in the Philippines as it serves as a major economic growth driver.

He said the issues raised by foreign investors, including inadequate infrastructure in the country must be addressed in order to catch the interest of the investors to put in their money to the Philippines.

“We need massive investment and that’s why the focus of the Marcos administration is getting the investment community see the Philippines as an important investment destination,” 

Fortunately, Balicasan said the economic roadmap of the Philippines has become clear and was stipulated in the Philippine Development Plan for 2023-2028.