The Asian Development Bank (ADB) has approved a $400 million policy-based loan to support the Philippines in improving its business climate and attracting more foreign investment.
Although the Philippines is among Asia’s fastest-growing economies, it continues to lag behind regional peers in FDI due to bureaucratic red tape, high power costs, and weak infrastructure.
ADB Country Director Andrew Jeffries emphasized the importance of private-sector growth, saying:
“We are committed to helping the Philippines build an enabling environment that fosters a more dynamic business sector.”
🔹 Where the Philippines Stands
According to the World Bank’s Business Ready 2024 assessment (50 economies):
- 16th in regulatory framework
- 24th in public services
- 36th in operational efficiency
Still, the country trails ASEAN peers in FDI inflows (UNCTAD 2025):
- Philippines: $8.9B
- Malaysia: $11B
- Indonesia: $24B
- Vietnam: $20B
🔹 What the ADB Loan Will Support
The loan will help strengthen legal and regulatory frameworks, making it easier to start and operate businesses — particularly in high-growth areas like renewable energy and digital infrastructure.
However, the effort comes at a challenging moment: the Philippines is confronting a major corruption scandal tied to flood-control projects, involving billions of pesos in alleged “ghost infrastructure.” The controversy has shaken public trust and slowed infrastructure spending, weighing on investor confidence.