Foreign Investment In The Philippines: Recent Developments

Following the recent decision by the Supreme Court of the Philippines in Roy III v. Chairperson Teresita Herbosa (Roy) we take the opportunity to review the foreign investment landscape in the Philippines, the implications of this decision for investors and the foreign investment outlook for 2017.

Background

Historically the Philippines has struggled to keep up with the other large economies in the Association of Southeast Asian Nations (ASEAN) when it comes to foreign direct investment (FDI). According to ASEAN statistics, in 2015 FDI in the Philippines was around US$5.7 billion whereas Indonesia, Thailand and Vietnam attracted FDI of US$16.9 billion, US$8.0 billion and US$11.8 billion respectively in the same period. FDI in the Philippines has also been waning in recent years following an all-time high in 2014. To compound matters, in common with other larger ASEAN nations, the Philippines has also been losing out to the CMLV countries (Cambodia, Myanmar, Laos