Very Low FDI for the PHL, High Savings Though

An Ateneo Graduate School of Business Advantage

FDI to the Philippines was an all time low.  It is less than a billion and some of them came from reinvested profits.  However, local savings went up.  Rich savers were better than poor people, savings rate of private was better than the government;  the non banks companies were better off than banks in saving money.,

It raises an important issue in entrepreneurship:  which comes first, frugality or the prosperous business.

It is my theory, that savings, frugality comes ahead of everything else.  There could be no financial or capital markets without savings.  Savings comes ahead of others.

What do you think?

 What does the low FDI mean to local entrepreneurs?   Where would growth of PHL come from?  Who will invest in the PHL?

Here are the links to the article on savings
and declining

-data-show-rich-people-better-saving-money-134211324.html

jan-sept-fdis-drop-33-671m-says-bangko-072604283.html

I just came across a Germany website.  They are campaigning hard too for FDI!!

Please read:

Germany Trade and Investment Initiatives

What does this mean for PHL trade and investment missions;  our policy for attracting foreign investments?

How do we relate it to growing number of forum on startups in Asia?

Removing Difficulties/Barriers to Doing Business in the Philippines

The myriad of things that the entrepreneur has to mind prior to putting up the business:  inputs, processes, market, financials, customers, quality, price, delivery concerns, are too many and disheartening enough. And formidable.  Now add difficult and byzantine procedures and regulations of the government especially the local units.. The perception is that they are made difficult and takes long because:  a facilitation resource, or a person is needed.  Certain considerations must be made so that the documents will move to the next station so that somebody will sign.  etc. etc.  PHP for every signature as SOP, CIA etc. ( as for a cell site, certifcate of occupancy)

This is even made worse by the local government code where the barangays are given high authority. Another level of delay and red tape is added. Thats another level of consultation fee; lakbay aral donation. This is how it looks to a Filipino entrepreneur.  This is the reality.

For a foreigner does it look promising and inviting?

Hence, foreign investors flock to other countries where it is easier to do business.  Would we believe that Philippines lag behind ASEAN countries in entrepreneurship?

The President"s honesty and desire to rid the present bureaurcracy of crooks is a good start.  But the real work is in streamlining gov't processes in dealing with businessmen and entrepreneurs.  If not changing the mindset of those who are in those offices.

"Every generation needs a revolution an ENTREPRENEURIAL REVOLUTION."