PHL needs to liberalize FDIs to attract more investment

Hailing the country’s economic growth as “phenomenal,” famed economist Nouriel Roubini stressed the need for more structural and institutional reforms to sustain the country’s economic gains.
“The country has shift into an economic model, it has to be more active in integrating with the ASEAN economies,” Roubini said as he lauded the many efforts of the administration in promoting good governance.
Visiting the Philippines for the first time, Roubiniwas the keynote speaker at the Philippine Investment Summit 2013 held at the Makati Shangri La on Wednesday and described the country’s businessmen as “sophisticated in their acumen” and very warm and cordial.
In his assessment of the country’s economy, Roubini explained that the country should liberalized foreign direct investment (FDI) rules and the financial market regulations in order to attract more investments.
“Foreign investment is rather modest…FDIs are source of greater amount of investments but for more foreign investments to pour in, the (government) has to ensure the sanctity of contract and ease on conducting business,” he explained.
”Openness to FDI will increase the competition among the (local) economic powers and would break the monopolies,” he stressed.
He added “there should be stronger competition policies, put more emphasis on multilateral trade and open up for more investments.”
At the same time, Roubini stressed the importance of the present administration’s thrust to provide the small and medium enterprises (SMEs) more access to capital and financing and encourage more private investments to meet the demands of strong consumption. [PNA]