MANILA — The Philippines can expect more foreign investments to flow into industries in the wake of the investment-grade status it had obtained from Fitch Ratings, an economist of the Asian Development Bank (ADB) said.
Nario Usui, ADB country economist, said in a statement that the unprecedented credit-rating upgrade is expected to attract more foreign companies to pour investments on the country.[box type=”default” size=”large”] PHL seen to attract more foreign investments [/box]“Prudent measures to attract investment, an improved business climate and a diversified economy have paved the way for growth. Now it’s up to the authorities to make that growth more inclusive by creating more and better jobs,” Usui said.
Recently, the Philippines finally won its much-coveted investment-grade status from Fitch Ratings, one of the three major international credit rating agencies that assess government’s ability to pay back its debt and the chance of nonpayment of debts.
Budget and Management Secretary Florencio B. Abad said that the upgrade would improve significantly the government’s debt profile, and this, in turn, would lead to lower interest payment for the country’s credit requirements.
“This will ultimately allow us to expand our fiscal space and, consequently, pour more investments into infrastructure, social services and public-private partnerships,” Abad said.
As the government continues to strengthen its bid for rapid, inclusive, and long-term economic growth, Abad said he expects a greater confidence in the Philippines by the global market.
Meanwhile, the government continues to pursue President Aquino’s good governance agenda and establish transparency, accountability and openness in the bureaucracy.
“Ultimately, we intend to facilitate socio-economic growth that is truly inclusive, in which jobs are created and the dividends of improved governance are cascaded to all Filipinos,” Abad said.
He also said that the investment-grade rating by Fitch of the Philippines affirms what the local and international markets have recognized over the past year with the country’s economic climate now suited for investments by the international community.
“In the next three years, we can expect the revival of the country’s manufacturing sector—especially its agriculture-based industries—towards more inclusive and far-ranging growth,” he added. (Manila Bulletin)