Investment pledges to PHL seen to grow 10%

Investment pledges to the Philippines could grow to as much as 10 percent this year owing to the country's strong economy, labor force, and the recent investment grade status, Trade Secretary Gregory Domingo said Friday. “It’s safe to say that investments could go up by 10% this year. But it’s really difficult to give a percentage for that, but it will definitely be higher,” Domingo said in an interview at the sidelines of the Ease of Doing Business Summit held at the Sofitel Philippine Plaza. Domingo said while there are still many issues that need to be resolved to attract more investors, the investment grade rating will lead to more interest. The Philippines got its second investment grade rating Thursday when Standard & Poor’s upgraded the country to BBB- from BB+. The first was on March 27 when Fitch Ratings gave the country the same upgrade. Domingo said higher investment grade rating “will lead to investments. A lot of funds are restricted in investing in non-investment grade countries, all those will be available to the Philippines.” “Also, certain companies will not invest in non-investment grade ones,” he added. Investment pledges for all investment promotion agencies grew 12 percent in 2012 to P289.1 billion from P258.2 billion in 2011,  according to data from the National Statistical Coordination Board. — KBK, GMA News