THE INFLUX of foreign investments into the Philippines would create more jobs for Filipinos, a congressman said on Monday, following the wake of a five-month high net inflow of Foreign Direct Investments (FDI) in July.
“The surge of FDIs (Foreign Direct Investments)… particularly in manufacturing, which is one of the most important drivers of economic transformation, will help us scale up our output and create higher-value products, meaning there will be more and better jobs for Filipinos,” Rizal Rep. Juan Fidel Felipe F. Nograles, who heads the House of Representatives labor committee, said in a statement.
The central bank last week reported that FDI net inflows increased by 5.5% to $820 million in July from $778 million in the same month last year. This was the highest FDI inflow in five months or since the $1.366 billion FDI recorded in February.
FDI inflow indicates the value of direct investments made by nonresidents into the country. It is a key source of capital for the economy, which could trickle down to the creation of jobs.
The July 2024 FDI figure mainly coursed through the manufacturing and real estate industries, accounting for 71% and 17% of the total inflows, according to the Bangko Sentral ng Pilipinas.
Mr. Nograles urged the government to strengthen efforts in addressing barriers that could discourage foreign investments in the country, including taxes, power rates and bureaucratic processes. — Kenneth Christiane L. Basilio