PH should explore market diversification to attract investors, experts say
MANILA, PHILIPPINES — After faring economically well in 2022, the country should begin tapping into diversified markets to attract more investors, according to experts.
“The goal is to be able to expand our investments and trade in services, such as in food, business activities, and health, beyond our borders since economies of scale in the service sector can now be feasible given new technology. Through research and development, we can create niches in agricultural and industrial markets through an expanded service sector,” Ateneo de Manila Economist Leonardo Lanzona, Jr. said.
Similarly, China Banking Corp. Chief Economist Domini Velasquez said, “The Philippines is in a good place to take advantage of the growth momentum from 2022. Given the fiscal constraints brought about by the pandemic, the government has limited budget for investment-led spending. It needs to be able to prioritize investments that create quality jobs and that are climate resilient.”
Furthermore, public investment analyst Terry Ridon said tourism can be a growth driver but will require enhancements to infrastructure.
“In the same manner that the BPO (business process outsourcing) and semiconductor sectors are pillars of economic growth, the tourism sector generates growth due to the inflow of foreign spending… However, it will be difficult to grow the tourism sector without adequate infrastructure supporting tourism areas and facilities, as the country will be competing with world-class infrastructure and tourism facilities in other countries, particularly our ASEAN counterparts,” Ridon said.
Ridon added that the government should identify where it intends to improve tourism infrastructure.
“This includes improving our international airports, such as the Ninoy Aquino International Airport, and expediting the construction of new ones, such as the New Manila International Airport in Bulacan. The government should also determine whether adequate transport options are available for tourists, to bring them to both well-known tourist hubs and developing areas,” he said.
