Foreign Filipino workers send money to Philippines is increased in the early month of 2021. According to the latest numbers from the Bangko Sentral ng Pilipinas (BSP), foreign direct investments (FDI) increased by 41.5 percent in January 2021 as the Philippines eased coronavirus restrictions. The 116 percent increase in non-residents’ equity investments in debt instruments, or the amount foreign firms lent to local counterparts, boosted FDI net inflows to $961 million in January 2021 from $679 million in the same month in 2020. In addition, foreign corporations extended $535 million in loans to local affiliates during the month, up from $248 million a year before.
During this time, the majority of online money transfers to Philipines were from Singapore, Japan, and the Netherlands. Financial insurance, manufacturing, and professional, scientific, and technical industries received the majority of them. The BSP expects FDI to reach $7.8 billion in 2021. FDI is the most desirable sort of investment since it creates jobs and improves local industry knowledge.
What Are The Measures Taken By Government To Encourage Foreign Direct Investors?
Legislation liberalizing corporate practices has expanded investment opportunities by providing international investors with the same incentives as other ASEAN members while streamlining procedures. In addition, the administration intends to boost money transfers to Philippines and spending on infrastructure (roads, bridges, trains, health, and education) as well as social services (child vaccinations, support for low-income families, extension of health insurance coverage, primary education).
Foreign companies can now invest 100 percent in internet businesses (not part of the mass media), insurance improvement firms, investment houses, lending, and financial management companies, and wellness centers, as well as 40 percent in construction and repair of locally-funded public works, according to recent changes to the Foreign Investment Negative List (FINL) (the previous cap was at 25 percent).
What Are The Top Sectors In the Philippines For Foreign Investors?
According to the Philippine Statistics Authority, the primary industries targeted by foreign investors in the Philippines in 2019 were information and communication, energy, manufacturing, administrative and support service activities, and real estate.
When compared to other countries in the region, such as Vietnam, Indonesia, and Singapore, the Philippines punches below its weight to attract foreign direct investment. Overseas Filipino workers are a major source of foreign revenues in the country. Filipino workers send money to Philippines online to help households and invest in the country’s emerging sectors.