This review assesses the overall investment climate in the Philippines, looking at investment policy, investment promotion and facilitation, competition policy, infrastructure investment and responsible business conduct. The Review documents successful reform episodes over the past 25 years in the Philippines, assesses their impact and suggests areas for further reforms. It looks at how to raise investment levels by both foreign and domestic enterprises and at how to ensure that such investment contributes to sustainable and inclusive growth. The current macroeconomic situation in the Philippines is favourable, remittances are high, the business process outsource industry is booming, and the new Competition Act will help to make the domestic market more competitive. The Review argues for one further reform push to ease the many restrictions on foreign investors in the Philippines so as to provide an investment climate where all firms can invest and grow.
- 12 May 2016
Assessment and recommendations
The Philippine economy has been transformed over the past decade into one of the fastest growing in the region, currently outperforming other major ASEAN economies. Growth has been spurred by record remittances from overseas Filipinos which has helped to fuel domestic consumption, as well as by the booming business process outsourcing (BPO) sector. Macroeconomic stability has been accompanied by sound fiscal management and political stability with a stable democracy and regular elections. The Philippine economy received a further vote of confidence in 2013 when credit rating agencies upgraded it to a BBB investment grade status. It has also improved its performance in several international rankings. Inflows of foreign direct investment (FDI) are also at record levels, albeit still low by regional standards.