Friday, May 3, 2013

Foreign 'investment' in Ph going to 'nonproductive' things! #dearPH

Aren't commies supposedly averse to any kind of foreign intervention (both political and economic)? But then...
Jobs will not necessarily be created even if foreign investors do come into the country. Of late, investors have been increasingly pouring capital into financial markets rather than putting up new factories because they seek higher returns in the shortest time possible. For every P1 in foreign direct investments (FDIs) entering the country, P5 flows in as portfolios. This partly explains why the Philippine stock market is on steroids even as joblessness persists. Moreover, the sparse FDIs are concentrated on nonproductive sectors of the economy, such as mining, real estate, and business process outsourcing, which do not have the same broad labor base potential as manufacturing. Jobs in these sectors also pose serious health and safety risks to workers.

Above is an excerpt taken from the KMU chairman's letter to the published 02 May 2013.

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