Byline: FIL C. SIONIL
The level of foreign direct investments and portfolio investments for this year have been projected to improve substantially, but, only after the presidential election scheduled in May.
According to Bangko Sentral ng Pilipinas (BSP) Deputy Governor for banking services, research and treasury Amando M. Tetangco, Jr., inflows on both foreign direct investments and portfolio investments otherwise known as FDI and hotmoney, respectively, will be bigger after the new leader of the country has been known.
Tetangco stressed, however, that this situation is just as normal, considering that most of the foreign investors, particularly foreign fund managers take the sidelines while there is tension in the political situation in the country due to election.
After the May presidential elections next year, Tetangco disclosed the BSP assumed a recovery in the level of FDI, particularly during the second semester, to grow by more than 800 percent to $943 million from roughly $100 million assumed for 2003.
The inflows are part of the commitments earlier made by existing foreign investors in the country to expand their operations here, Tetangco explained the BSP's assumption.
The estimate includes the expansion programs of Texas Instruments, a locator in the economic zone in Baguio City and Federal Express, a locator in the former Clark Airbase.
"The expectation is there will be continued weakness of portfolio and FDI, particularly in the first semester of 2004, but chances are there will some recovery in the second half," explained BSP Managing Director for research Diwa Guinigundo. …