Paeng sees rise in foreign investments

Bangko Sentral ng Pilipinas (BSP) Gov. Rafael B. Buenaventura expects a substantial increase in foreign investments this year.

Buenaventura was able to test the investment climate for the Philippines while meeting business leaders and fund managers at the World Economic Forum in Davos, Switzerland.

He said participants of the World Economic Forum are optimistic on the prospects of the global economy which would then translate to more investments worldwide, including the Philippines.

"People are quite bullish on the economy," Buenaventura said, adding that "foreign direct investment this year will look good."

He said the country is bound to attract its share of foreign investment as "our macroeconomic numbers look good."

Earlier, Buenaventura belied reports that the Philippines is not attractive to foreign investors, saying that it was only the local analysts who claim that the country is not an attractive investment site. "Let's be fair to ourselves," Buenventura appealed.

On the other hand, he said, when he passed by London, "they were very impressed (with) the Philippines."

The inflow of more foreign investment would result in less borrowings for the government. And less borrowings would help keep interest rates down.

Buenaventura said that the government is also trying to attract certain types of investment such as on information technology-related industries.

He cited the investments of Citibank and Bank of America which have decided to make Manila the hub of their backroom services.

Buenaventura said he has assured foreign investors that the political situation in the country is stable.

Analysts, however, said boosting investment flows to the country will depend heavily on the passage of a number of bills to reform the country's retail, banking, securities and power sectors.