Experts: Sound fundamentals to entice FDIs By Cai U. Ordinario
E
WORLD » A5
CEASEFIRE IN GAZA LEADS TO INCREASED AID DELIVERIES, HOSTAGE RELEASE PREPARATIONS
ROTARY CLUB OF MANILA JOURNALISM AWARDS
2006 National Newspaper of the Year 2011 National Newspaper of the Year 2013 Business Newspaper of the Year 2017 Business Newspaper of the Year 2019 Business Newspaper of the Year 2021 Pro Patria Award PHILIPPINE STATISTICS AUTHORITY 2018 Data Champion
@caiordinario
FFORTS of nations to attract foreign direct investments (FDIs) should be complemented with initiatives to strengthen the domestic economy and achieve financial stability, according to experts from the Asian Development Bank (ADB). In an Asian Development Blog, ADB economists John Beirne, Donna Faye Bajaro, and Pilipinas F. Quising said this is “crucial” since FDI inflows can be “volatile.” The volatility of these inflows usually depends on global financial conditions. These can then “trigger boom-and-bust cycles” that can be a
challenge for economies. “Sound domestic fundamentals can make economies more resilient to these global shifts. Trade openness and financial development are especially important,” the economists said. “Financial development is equally critical. Strong local banking systems and financial institutions help manage risk, channel funds efficiently, and maintain access to international capital markets,” they added. The economists said countries should institute open trade policies which can signal stability and growth potential which are attractive to attract FDIs. They also said it is crucial for
countries to have a diverse export base to reassure investors that they are making the right decision to invest “even during uncertain trade conditions.” In terms of financial development, the experts said countries also need “robust prudential and regulatory frameworks” which will make global lenders more confident. Policies that promote inclusive economic growth will also be good for FDIs. “Even with solid fundamentals, global financial trends will continue to shape capital movements. Complementing strong macroeconomic policies with prudent financial regulations and tools to manage capital flows can help de-
veloping economies better navigate sudden changes in global liquidity and investment patterns,” the experts said. The latest FDI data released by the Bangko Sentral ng Pilipinas (BSP) showed FDI net inflows declined by 7.5 percent to $1.3 billion in July 2025 from $1.4 billion in July 2024. BSP said the decrease in FDI net inflows during the month resulted from lower nonresidents’ net investments in debt instruments, which fell by 39.4 percent to $711 million from $1.2 billion. In the January to July period this year, FDI net inflows declined by 20 percent to $4.7 billion in JanuaryJuly 2025 from the $5.9 billion posted in January-July 2024.
BusinessMirror A broader look at today’s business
EJAP JOURNALISM AWARDS
BUSINESS NEWS SOURCE OF THE YEAR
(2017, 2018, 2019, 2020, 2021) DEPARTMENT OF SCIENCE AND TECHNOLOGY
2018 BANTOG MEDIA AWARDS
GOCC SUBSIDIES SLIDE BY 19.27% IN JAN-AUG www.businessmirror.com.ph
n
Monday, October 13, 2025 Vol. 21 No. 5
P25.00 nationwide | 2 sections 20 pages | 7 DAYS A WEEK
By Reine Juvierre S. Alberto @reine_alberto
S
UBSIDIES provided by the national government to government-owned and -controlled corporations (GOCCs) declined in January to August. Latest data from the Bureau of the Treasury (BTr) showed that subsidies to state-run firms plunged by 19.27 percent to P70.251 billion as of end-August from P87.025 billion in the same period a year ago. The budgetary support was extended to 39 GOCCs to fund their operations not supported by corporate revenues or to finance their specific programs or projects. During the eight-month period,
major non-financial government corporations received 54.71 percent of the total, or P38.434 billion, while other government corporations obtained 44.56 percent, or P31.308 billion. The remaining 0.72 percent, or P509 million, went to government financial institutions. Based on the data, the National Irrigation Administration (NIA) obtained the highest amount of See “GOCC,” A2
‘GOVT MUST RAISE STANDARDS FOR LOCAL STEEL PRODUCTS’ By Andrea E. San Juan
A
@andreasanjuan
MONG the countries in the Pacific Ring of Fire, the Philippines is the only country implementing “subpar standards” for steel products, according to Philippine Iron and Steel Institute (PISI). “We have to raise the standards for steel. Hindi na puwede iyong puwede na,” PISI President Ronald C. Magsajo told the BusinessMirror on the sidelines of the Federation of Philippine Industries Inc. (FPI) Business
Summit 2025 last week. “Let’s raise the standard, make sure that our products are meant for the zone—Pacific Ring of Fire, earthquakeresistant ‘yung ginagamit natin because not all our standards today are pang-earthquake. We still have low standards,” he added. For steel, he said the country is still implementing minimum standard which had already been delisted from the American Society for Testing and Materials (ASTM) in 1970. “Now, for steel, our minimum See “Govt,” A2
BusinessMirror
Freshly Brewed
SMARTER PHONES, SMARTER LIVING: REALME’S AI REVOLUTION WITH REALME MARKETING DIRECTOR AMELIA LU»B1
WOVEN WONDERS An exhibit coordinator admires the intricate piña textile at the 15th Likhang HABI Market Fair, held at Level 5, SPACE at One Ayala, Makati City. Organized by HABI: The Philippine Textile Council, the three-day event celebrated Filipino craftsmanship and culture through more than 80 exhibitors showcasing locally woven fabrics and artisan products from across the country. Highlights included live weaving demonstrations, the “Kwentong Kultura” lectures, and the Lourdes Montinola Piña Weaving and Eloisa Hizon Gomez Abaca Weaving competitions—underscoring the country’s rich textile heritage and the artistry of its weaving communities. NONIE REYES
PHL adopts creative economy blueprint M
ALACAÑANG has ordered the adoption and implementation of a 10year national roadmap that seeks to transform the Philippines into Asia’s premier creative hub by 2030 through innovation, cultural entrepreneurship and talent development. Executive Secretary Lucas P. Bersamin signed Memorandum Circular No. 103, approving and adopting the Philippine Creative Industries Development Plan (PCIDP) 2025-2034. Under the circular, all government agencies, local government units and government-owned and -controlled corporations are direct-
ed to align their policies, programs and budgets with the roadmap. The circular also stated that the Philippine Creative Industries Development Council (PCIDC) must review the plan every three years from the date of its execution. “In this Plan, we are laying down our strategy in strengthening the foundation of a creative ecosystem where creativity can flourish and Filipino talent can thrive,” President Ferdinand R. Marcos Jr. said in his foreword. The plan, developed by the Department of Trade and Industry (DTI) through the PCIDC, sets out the strategic framework for expanding the country’s creative
economy. It focuses on five priorities: building creative hubs and clusters, boosting entrepreneurship through research and technology, regenerating local economies through sustainable innovation, strengthening the global Filipino brand and nurturing the next generation of creatives. The plan will be guided by the BEAMS framework—Build Creative Ecosystems, Empower Creative Workforce, Accelerate Inclusive Innovation, Mobilize Financing Support and Seize Market Opportunities. The first three years will be focused on strengthening the foun-
dations of the creative ecosystem by creating and refining policies to benefit stakeholders and supporting the workforce by aligning their skills with job market demands. By 2030, the Philippines is expected to emerge as a “beacon of culture-led innovation” and a “preferred partner” in the global creative economy. The plan envisions a creative ecosystem that fosters resilient jobs, knowledge exchange and new investments—transforming the country into a top destination for business, tourism, learning, and innovation. “By 2034, we will have achieved See “PHL,” A2
PESO EXCHANGE RATES n US 57.9540 n JAPAN 0.3787 n UK 77.1773 n HK 7.4475 n CHINA 8.1272 n SINGAPORE 44.6177 n AUSTRALIA 37.9715 n EU 67.0354 n KOREA 0.0407 n SAUDI ARABIA 15.4515 Source: BSP (October 10, 2025)