Philippine-based universal bank Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort is optimistic about the rebound of foreign direct investments (FDIs) to the Philippines given the continued recovery of the domestic economy. The chief economist said upticks of interest rates overseas, along with the general trend of elevated inflation rates globally, likely contributed to investors’ worries, thus the drop of inflows going to the Philippines.
Mr. Ricafort said that the Philippine economy is still expected to have one of the faster growth rates in the region due to its demographics, the impact of the reopening of China as well as the investment commitments during the foreign trips of members of the Marcos administration.
The chief economist also said the improved diplomatic relations with developed countries and sources of foreign investments also bode well for the Philippines. Furthermore, the passage of reform measures in recent months, especially the CREATE (Corporate Recovery and Tax Incentives for Enterprises) law that reduces the corporate income tax by at least 5 percentage points (from 30%) and provides greater certainty on investments would also continue to help attract more FDIs to be more decisive and locate in the country.
(Source: Philippine News Agency)