‘PHL top choice of U.S., European investors’

Image credits: Nonie Reyes

FOR European and American investors, the Philippines remains to be the top choice for foreign investments in the Southeast Asian region, according to a study by Standard Chartered Bank (SCB).

The British financial institution noted in its study that investors from the US, United Kingdom, Germany and France still see overseas markets’ growth potential, including the Philippines, despite the ongoing global economic slump.

More respondents, from 37 percent to 42 percent, expressed increased business confidence for growth opportunities outside their countries, it noted. “It is apparent that businesses are beginning to pay greater attention to overseas growth and investing for the future,” SCB CEO of Europe and Americas Torry Berntsen said.

In fact, companies in Europe and US named the Philippines among the top 5 Southeast Asian countries for opportunities to establish or expand their sourcing, selling or operations over the next six to 12 months,” SCB said.

However, the bank said these companies have some worries over the regulatory environment, highlighting the need to further raise awareness about ease of doing business.

Understanding the regulatory requirements in overseas markets remains to be the biggest deterrent for foreign companies to expand operations in another country, SCB said. Building relationships with suppliers and adapting to supply chain logistics is also a primary concern.

“With regulations noted as the number one concern amongst respondents looking to expand overseas, it could suggest an opportunity for Philippines to increase foreign investment through greater awareness of the ease of doing business locally,” SCB said.

Meanwhile, the study also noted a greater focus on digital technology investment and environmental, social and governance matters relating to trade and supply chains.

“Sustainability, digitization, and the need to understand regulation are not just key to how business will be conducted, they are also opportunities for companies to increase operational efficiency, grow internationally and stay ahead of the competition,” Berntsen explained.

Across the globe, SCB noted that Asia is deemed a major growth region.

Data from Bangko Sentral ng Pilipinas showed that foreign direct investment net inflows for January to November last year declined by 10.8 percent to $5.8 billion from $6.5 billion in the same period in 2019.

For the period, equity capital placements came mostly from Japan, Netherlands, US and Singapore, and were invested in manufacturing, real estate and financial and insurance industries.

Image credits: Nonie Reyes