{
  "id": 5363411,
  "title": "Why we need FDI",
  "url": "https://urgent.news/2026/09/03/why-we-need-fdi",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-03T16:00:00.000Z",
  "source": {
    "name": "Philippine Star Business",
    "slug": "philippine-star-business",
    "url": "https://www.philstar.com/business/2026/09/04/2553817/why-we-need-fdi"
  },
  "original_language": "en",
  "account": "Governor Eli Remolona Jr. emphasized during a Senate hearing the need for the country to increase exports to bring in more dollars required to purchase goods imported. He highlighted that remittances and BPOs are insufficient, and stressed the requirement for investments in manufacturing products sought by foreign markets. However, he noted a lack of investor interest in the Philippines. This situation is largely due to the country's \"consumption culture,\" which hampers organic growth of domestic savings and leaves the economy structurally reliant on borrowing for major expansions. The Governor's statement is based on the economic principle that the savings-to-investment ratio gap indicates a nation's capacity to fund its investment requirements. When domestic savings are insufficient to cover localized infrastructure and business investments, a country must rely on foreign capital, FDI, or external debt. The left argues that domestic capital exists but is controlled by the economic elite who would rather invest in protected industries such as property, retail, and banking. China and Vietnam have opted to direct private domestic capital towards priority industrial projects, resulting in export success. The Philippines should adopt a similar approach to generate higher GDP growth and strengthen the manufacturing base. Unfortunately, Philippine conglomerates prefer safe domestic investments, such as real estate, shopping malls, and banking, over high-tech manufacturing for export. Despite this, FDI is necessary due to inadequate domestic capital, which cannot provide global supply chains, proprietary technologies, and management systems that multinational corporations offer.",
  "summary": "BSP Governor Eli Remolona Jr., in a Senate hearing last week, cited the need for the country to have more exports to bring in more dollars we need to buy the increasing amount of goods that we now import. Remittances and BPOs are not enough.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}