SINGAPORE has become a “vital source” of foreign direct investments (FDI) to the country in 2021, as its investments to the Philippines has “more than tripled” during the year.
Speaking at the Third Philippines-Singapore Business and Investments Summit on Wednesday, BSP Governor Benjamin Diokno said 44.3 percent of the total FDI to the country last year came from Singapore.
FDI are investments made by foreign players to the Philippines in the hopes of long-term return.
Since these are in the country for a longer-term compared to their short-term counterpart, the foreign portfolio investments (FPI), FDI usually create jobs for Filipinos and have a multiplier effect on the economy.
Singapore’s FDI to the country hit $761 million in 2021, rising from the $237 million seen in the previous year.
Following Singapore’s 44.3-percent share to the Philippines’s FDI is Japan with 33.8 percent and USA with 8.7 percent. Hong Kong’s FDI to the country hit a 3.9-percent share to the total during the year, followed by Germany at 1.9 percent, Taiwan at 1.6 percent and Malaysia at 1.1 percent.
China’s FDI to the Philippines contributed 1 percent to the country’s total in 2021.
“Notably, Singapore is a leading source of foreign direct investments, injecting more than $761 million to the Philippines in 2021. The city-state also ranked as the top source of approved investments into the Philippines in 2021,” Diokno said.
“We invite you to continue working with us as we move into the next chapters of our economic development,” the governor added, addressing Singapore investors.
BSP data also showed that Singapore was the top source of approved investments in 2021 with a total of P80.2 billion followed by the Netherlands, Japan, UK, and the United States.
In November 2021, the BSP and the Monetary Authority of Singapore (MAS) signed an enhanced FinTech Cooperation Agreement.
The agreement aims to deliver benefits to the Philippines with Singapore as a key trading partner and a major source of remittances.
Remittances from Overseas Filipinos in Singapore accounted for 7 percent of total remittances last year. “This move is also a step toward linking our domestic payments system with our regional peers,” the governor said.