A robust consumer market will attract a significant influx of direct investment into the Philippines in 2012 which will be the ground for renewed cross-border M&A activity. This forecast is made by Kristine Braden, head of the global banking unit of Citibank Philippines, who claims that an increasing number of investors are interested in investing funds in the local economy, especially in the financial and consumer sectors.
In consumer sectorFor example, Braden argues, at least once a week a new investor would pop in to investigate business opportunities. These investors would like to ride a market that shows great resilience and continues to be buoyed by remittances from abroad and outsourcing revenues.
“If you look at population growth – says Braden – at the continued strength of consumption that drives the economy, well there are few countries in the world with the same characteristics as the Philippines”. Other sectors targeted would be banks, as demonstrated by the interest shown by Malaysian banking group CIMB in Bank of Commerce, infrastructure, tourism and commodities.
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