Pres. Duterte’s Pro-reform Administration to Attract More FDIs, Says US Think-tank

President Rodrigo Duterte’s pro-reform administration will likely to attract foreign direct investment (FDI) inflows, US-based think-tank IHS Global Insight said.

IHS Asia-Pacific Chief Economist Rajiv Biswas told the Philippines News Agency through e-mail that Pres. Duterte’s statement highlighting efficiency in government transactions is a positive signal to the business community both here and abroad.

The impending reforms to improve efficiency in government, Biswas said, would definitely ease doing business in the Philippines.

“President Duterte has inherited an economy that is performing strongly. With the incoming economic front bench appointed by President Duterte expected to be pro-reform and likely to give a high priority to attracting foreign direct investment inflows, the Philippines is expected to continue to show strong growth over the medium term,” he said.

In his inaugural speech on Thursday, Pres. Duterte announced his first directive to all Cabinet secretaries and agency heads — to reduce requirements and the processing time of all applications from the time of submission to release; to remove redundant requirements and compliance with one department or agency, shall be accepted as sufficient for all; and to refrain from changing and bending the rules of government contracts, transactions and projects already approved and awaiting implementation.

The Philippines slipped by eight notches to rank 103 from rank 95 in the World Bank-International Finance Corporation Doing Business Report 2016.

“One of the major barriers to the international competitiveness of the Philippines is its relatively low ranking in terms of the ease of doing business,” said Biswas. (PNA) JMC/KMC/EDS