Poll shows Philippines an investor pariah

GLOBAL executives are considering investing in Southeast Asia, except in the Philippines, according to a consulting firm’s international survey.

In its 2012 Foreign Direct Investment Confidence Index, A.T. Kearney said the Philippines was excluded from the top 25 economies considered attractive FDI destinations this year.

Neighboring countries like Singapore placed 7th; Indonesia, 9th; Malaysia, 10th; Vietnam, 14th; and Thailand, 16th. The most attractive countries are China, India, Brazil, the US, Germany and Australia.

The FDI index examines future prospects for investment flows as the world seeks to recover from the global recession and continued economic uncertainty in Europe and the United States.

Respondents in the survey include C-level executives and regional and business heads. Participating companies represent 27 countries and span 17 industry sectors and account for more than $1 trillion in annual global sales. The survey was conducted between July and October 2011.

“We find that FDI flows have picked up slightly in the past two years as investors cautiously reenter the markets. However, this modest optimism could quickly revert to retrenchment as investors weigh potential upside opportunities against downside risks,” AT Kearney said.

The report added that the prospects for near-term recovery are still shaky more than three years since the onset of the global economic crisis, and debt crises loom large. With prospects for near-term economic recovery increasingly uncertain, AT Kearney said FDI flows may not see the pickup that the world was hoping for any time soon.

“The timing and location of renewed investment will play a major role in the future global economic landscape. Emerging markets are poised to benefit from an FDI recovery, as they comprise more than half of the FDI Confidence Index’s top 25 countries. They are attracting investment on their own merits, most importantly their large and growing consumer markets,” the report added.

The report, which first appeared in 1998, assesses the impact of political, economic, and regulatory changes on the FDI intentions and preferences of the leaders of top companies around the world. –DARWIN G AMOJELAR senior reporter, Manila Times