Golez: PH pivot to China blamed? "Japan investments plunge 57%" @philstarbiznews https://t.co/iuN1huf9aj Philippine Star INQUIRER.netRappler
This shows the complexity of shifts in foreign policy that can even affect investments. We win some. We lose some. We win investments and loans from China. We lose investments from Japan, as stated in this article, and more, like generating concern about the slowing down of Business Process Outsourcing business from the US.
I wonder how the EU investment situation looks. Japan, US and the EU are the old reliables, and very stable over the decades, unlike newcomer China whose investment policy could fluctuate strongly with the geopolitical situation as shown by experiences in South Asia and Africa.
FDIs or investments are better than credits, since FDIs don't have to be repaid unlike loans that could strain the country's cash flow in case the projects have a long gestation period.
I quote from this article:
"The flow of Japanese investments has started to slow down in the Philippines, blamed partly on certain policy changes such as the government’s pivot to China and Russia.
"Preliminary data from the Japan External Trade Organization (Jetro) showed Japan’s outward foreign direct investments (FDI) in the Philippines plunged 56.6 percent in the first five months of the year to $561 million.
"On the other hand, Japan’s FDI in other Southeast Asian countries like Vietnam, Thailand and Singapore increased by double digits in the same period.
"In 2016, Japan’s FDI in the Philippines surged 52.1 percent to $2.31 billion from $1.52 billion in 2015, Jetro data showed."
Japan investments plunge 57%
Philippine Secretary of Trade and Industry Ramon Lopez said Japanese investor “remains confident of business prospects in the Philippines.” AP Photo/Eugene Hoshiko, File
MANILA, Philippines - The flow of Japanese investments has started to slow down in the Philippines, blamed partly on certain policy changes such as the government’s pivot to China and Russia.
Preliminary data from the Japan External Trade Organization (Jetro) showed Japan’s outward foreign direct investments (FDI) in the Philippines plunged 56.6 percent in the first five months of the year to $561 million.
On the other hand, Japan’s FDI in other Southeast Asian countries like Vietnam, Thailand and Singapore increased by double digits in the same period.
In 2016, Japan’s FDI in the Philippines surged 52.1 percent to $2.31 billion from $1.52 billion in 2015, Jetro data showed.
An industry source told The STAR one of the possible causes of the slowdown was the administration’s foreign policy shift to open up to non-traditional allies such as China and Russia.
The source added it is also likely some Japanese investors were threatened by the planned changes in the incentives currently being enjoyed by locators of the Philippine Economic Zone Authority (PEZA).
Japanese companies are among the biggest investors in PEZA-accredited zones.
Asked for comment, Trade Secretary Ramon Lopez said he has not received any concerns from Japanese investors.
Lopez earlier said Japanese investor “remains confident of business prospects in the Philippines.”
Last March, Lopez said Japan’s seven major trading houses, collectively known as sogo shosha, have expressed interest to invest up to P198.5 billion in various sectors seen essential in the economic development of the Philippines.
Aside from these, investment commitments worth P25 billion from Japanese firms like Tsuneishi Shipbuilding Co. Ltd. and Ichijo Co. Ltd. have been made.
No comments:
Post a Comment