POOR INTERNET connectivity is keeping foreign investors away, as are restrictions on foreign equity and the high cost of doing business, the Department of Finance (DoF) said.
The DoF was citing a report by investment promotion agencies (IPAs) to the Fiscal Incentives Review Board. The IPAs also noted that the effects of the coronavirus disease 2019 (COVID-19) pandemic have also had an impact on business activity in economic zones.
“Some investment promotion agencies also stated the lack of basic utilities and quality internet connectivity as a hindrance to investment,” the DoF said in a statement on Wednesday.
Philippine mobile internet speeds improved in December, climbing one place to 89th out of 138 countries in a global ranking by Ookla, the network testing company behind Speedtest.
Median download speeds for mobile internet increased to 19.20 megabits per second (Mbps) in December from 18.68 Mbps a month earlier. Meanwhile, mobile upload speeds slipped to 5.60 Mbps from 5.64 Mbps.
“To address the restrictions (on) foreign equity, the Duterte administration has strongly supported the amendments to the Public Service Act, Retail Trade Liberalization Act, and Foreign Investment Act, which will responsibly open up our economy to more foreign investment that will benefit our people in the form of more quality jobs, products, and services,” Finance Secretary Carlos G. Dominguez III said.
“This, by the way, will also help investors and Filipino families have access to faster and more reliable internet connections. That is why it is critical that we liberalize the telco industry.”
Mr. Dominguez added that the government will continue to roll out COVID-19 vaccines. The government plans to fully vaccinate 77 million Filipinos by the end of the first quarter.
“The vaccination of our people against COVID-19 will allow us to remove the pandemic as a determinant of how the Philippine economy performs and allow more businesses to confidently invest in the country,” he said.
Foreign direct investment (FDI) net inflows in the first 10 months of last year hit $8.1 billion, up 48.1% from a year earlier, according to the central bank. — Jenina P. Ibañez
