BusinessMirror
  • News
    • News
    • Top News
    • Regions
    • Nation
    • World
    • Asia Today
  • Business
    • Business
    • Agri-Commodities
    • Asean Economic Community
    • Banking & Finance
    • Companies
    • Economy
    • Entrepreneur
    • Executive Views
    • Export Unlimited
    • Harvard Management Update
    • Monday Morning
    • Mutual Funds
    • Stock Market Outlook
    • The Integrity Initiative
  • Sports
  • Opinion
    • Opinion
    • Columns
    • Editorial
    • Editorial cartoon
  • Life
    • Life
    • Art
    • Design&Space
    • Digital Life
    • Journey
    • Motoring
    • 360° Review
    • Property
    • Show
    • Tech
    • Tourism
    • Y2Z
  • Features
    • Biodiversity
    • Education
    • Envoys & Expats
    • Explainer
    • Faith
    • Green
    • Health & Fitness
    • Mission: PHL
    • Our Time
    • Perspective
    • Photo Gallery
    • Science
    • Today in History
    • Tony&Nick
    • When I Was 25
    • Wine & Dine
  • BMPlus
    • BMPlus
    • SoundStrip
    • Live & In Quarantine
    • Bulletin Board
    • Marketing
    • Public Service
    • CSR
  • The Broader Look
Subscribe
BusinessMirror
BusinessMirror
  • News
    • News
    • Top News
    • Regions
    • Nation
    • World
    • Asia Today
  • Business
    • Business
    • Agri-Commodities
    • Asean Economic Community
    • Banking & Finance
    • Companies
    • Economy
    • Entrepreneur
    • Executive Views
    • Export Unlimited
    • Harvard Management Update
    • Monday Morning
    • Mutual Funds
    • Stock Market Outlook
    • The Integrity Initiative
  • Sports
  • Opinion
    • Opinion
    • Columns
    • Editorial
    • Editorial cartoon
  • Life
    • Life
    • Art
    • Design&Space
    • Digital Life
    • Journey
    • Motoring
    • 360° Review
    • Property
    • Show
    • Tech
    • Tourism
    • Y2Z
  • Features
    • Biodiversity
    • Education
    • Envoys & Expats
    • Explainer
    • Faith
    • Green
    • Health & Fitness
    • Mission: PHL
    • Our Time
    • Perspective
    • Photo Gallery
    • Science
    • Today in History
    • Tony&Nick
    • When I Was 25
    • Wine & Dine
  • BMPlus
    • BMPlus
    • SoundStrip
    • Live & In Quarantine
    • Bulletin Board
    • Marketing
    • Public Service
    • CSR
  • The Broader Look
  • Economy

OECD investment policy review backs removal of FDI restrictions

  • Catherine Pillas
  • May 12, 2016
  • 11 views
  • 3 minute read
Total
0
Shares

Foreign investors and local companies, as well, stand to benefit from the removal of barriers to foreign investments, since the removal of such barriers may also resolve domestic underinvestment, according to the Organisation for Economic Co-operation and Development’s (OECD) Philippine Investment Policy Review.

The international policy think tank has released the country’s investment-policy assessment paper with comprehensive review of domestic policies in the areas of investment, investment promotion and facilitation, competition policy infrastructure investment and business conduct.

The long-standing issue of foreign equity restrictions was once again a highlight of the review, saying that the number of restrictions on foreign direct investments (FDI) in the Philippines is generally high on a global scale, as evidenced by OECD’s FDI Regulatory Restrictiveness Index.

“The Philippines is one of the countries with the most statutory restrictions on foreign investment. It has more restrictions than any of the large Asean member-states with a score [on the index] almost as high as Vietnam—a country which is often seen as a close competitor for investment,” the review noted.

The review further pointed out that being enshrined in the Constitution, and unlike other countries whose restrictions to foreign investment are in sectoral legislation or in investment laws, the Philippines’s barriers to FDI are more inflexible, and reform more difficult to enact.

“Regional competitors for foreign investment are not standing still, but are continuing with their own reforms. Vietnam has revised its investment law many times over the past two decades, most recently in 2014, and Cambodia and Lao PDR are also currently doing so. Myanmar has also reopened to foreign investment and are continuing with their reforms,” the OECD said.

As a result, while the Philippines attracted a record-setting level of $6.2 billion in 2014, slightly cooling down to $ 5.7 billion last year, Manila is still considered a “laggard” in FDI inflows compared to its Asean peers.

On the part of local businesses, the review also pointed out that the “persistent problem of underinvestment” as far domestic investment is concerned is still below what it was in the 1990s, notwitstanding a rising economy.

“Policy reform should not aim to give foreign investors special treatment, but a strong argument can be made that removing barriers to foreign investment in the Philippines could help to address issues of underinvestment by domestic firms through the impact that foreign investors might have in improving overall investment climate,” the report stated.

For local firms, the report added, the spill-over effect can be seen in improved efficiency in their production because of the transfer of technology and increased competition in the market.

Liberalizing barriers to foreign investment, moreover, will enhance the impact of the Competition Act as it will be an impetus for new market entry, the think tank said.

“Foreign direct investment is not a panacea but in an open economy with contestable markets, it can have a strong impact on growth. All of the many success stories in Southeast Asia have been built in part on attracting FDI,” the report added.

The OECD report did not espouse specific changes to the Constitution but recommended reviewing the high minimum capital requirement in the Foreign Investment Act and the Retail Trade Liberalization Act. Modernizing the legislative framework for investment, pertaining to the Board of Investments’ Ombinus Investments Code was also recommended.

The Philippine Investment Policy Review was launched last April 26, in Paris France. and was done in collaboration with the Philippine government through the Department of Trade and Industry.

 

 

0
0
0
0
0
0
0
0
Previous Article
  • Economy

PHL widens deployment of e-vehicles—Evap head

  • Philippines News Agency
  • May 12, 2016
Know more
Next Article
  • Economy

Ombudsman files criminal charges vs 6 DBM execs

  • Jovee Marie de la Cruz
  • May 13, 2016
Know more

Know more

Know more
  • 135
  • 3 min
  • Economy
  • Top News
  • Tourism

Tourism players hit choice of Grab ‘guide’

  • Ma. Stella F. Arnaldo
  • June 7, 2023
Philippines-European Union
Know more
  • 38
  • 3 min
  • Economy
  • Top News

PHL spared from Europe’s IP rights watch list for 5th year

  • Andrea E. San Juan
  • June 7, 2023
Know more
  • 125
  • 2 min
  • Economy

DOE finally issues amended rules on RPS program for off-grid areas

  • Lenie Lectura
  • June 6, 2023
Sugar Regulatory Administration (SRA)
Know more
  • 41
  • 2 min
  • Economy
  • Top News

SRA chief reports ‘significant decline’ in refined sugar production this year

  • Raadee S. Sausa
  • June 6, 2023
Camarines Sur Rep. LRay Villafuerte
Know more
  • 41
  • 3 min
  • Agri-Commodities
  • Economy
  • Green
  • Top News

House resolution seeks to gauge impact of fertilizer use on farmers’ income

  • Jovee Marie de la Cruz
  • June 6, 2023
Know more
  • 31
  • 1 min
  • Economy
  • Regions
  • Top News

Polomolok farmers set sights on agripreneurship

  • Jonathan L. Mayuga
  • June 6, 2023
cigarette, tobacco sale
Know more
  • 63
  • 2 min
  • Economy
  • Top News

BIR sees higher take in tobacco-related taxes with hike in number of sellers

  • Jasper Y. Arcalas
  • June 6, 2023
Column box-Integrity Initiative
Know more
  • 80
  • 2 min
  • Column
  • Economy

The purpose of business in society

  • Henry J. Schumacher
  • June 6, 2023
Know more
  • 75
  • 2 min
  • Economy

Release of OSW resources framework to further boost RE investments—DOE

  • Lenie Lectura
  • June 5, 2023
Know more
  • 64
  • 2 min
  • Economy

Petro firms roll back fuel prices at the pump

  • Lenie Lectura
  • June 5, 2023
Know more
  • 72
  • 2 min
  • Economy

Vicoap clarifies roadworthiness, verification test required for vehicle registration renewal

  • Lorenz S. Marasigan
  • June 5, 2023
Know more
  • 90
  • 2 min
  • Economy

DAR, DENR tie up seeks to improve land administration in Cagayan Valley 

  • Jonathan L. Mayuga
  • June 5, 2023
Department of Finance Secretary Benjamin E. Diokno
Know more
  • 128
  • 2 min
  • Economy
  • Top News

PHL could bag elusive ‘A’ rating by 2028—DOF

  • Jasper Y. Arcalas
  • June 5, 2023
Know more
  • 254
  • 2 min
  • Economy
  • Nation
  • Top News

Ilijan natgas plant reopens, starts power delivery to the grid–DOE

  • Lenie Lectura
  • June 2, 2023
Know more
  • 173
  • 1 min
  • Economy
  • Nation
  • Top News

Palace EO seeks to boost integrated financial management system in government

  • Samuel P. Medenilla
  • June 2, 2023
Bureau of Customs headquarters in Manila
Know more
  • 333
  • 2 min
  • Economy
  • Top News

Customs’ annualized collection rate in May grows 17.36% to P77 billion

  • Jasper Y. Arcalas
  • June 2, 2023
Natural rock formation of limestones on the coast with windmills for electric power production. Aerial view of tourist attraction Kapurpurawan Rock Formation in Ilocos Norte Philippines,Luzon.
Know more
  • 172
  • 1 min
  • Economy
  • Top News

118 bidders prequalify for 2nd round of Green Energy Auction program 2

  • Lenie Lectura
  • June 2, 2023
Know more
  • 175
  • 2 min
  • Economy
  • Top News

DTI launches import surge monitoring system as RCEP takes effect in PHL

  • Andrea E. San Juan
  • June 2, 2023
Scenic view of TPLEX on the way to Baguio City.
Know more
  • 336
  • 2 min
  • Economy
  • Nation
  • Regions
  • Top News

Neda Board okays P23.4-B TPLEX Extension Project

  • Samuel P. Medenilla
  • June 2, 2023
Know more
  • 204
  • 2 min
  • Economy
  • Top News

Factory output on rebound in May

  • Jasper Y. Arcalas
  • June 2, 2023

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Subscribe

BusinessMirror
  • About Us
  • Contact Us
  • Advertise with us
  • Privacy Policy
  • Cookie Policy
  • Podcast
  • Text-Only Homepage

Input your search keywords and press Enter.