Liberate The Philippines' Economy ASAP To Save Philippine Peso's Performance

I was reading through Bloomberg and there's bad news -- the Philippine Peso is expected to be Asia's worst performing currency this 2018. From the same article, this should be a reminder that it's time to make economic liberalization a huge priority. Here's what it says:

"The Philippines doesn’t get a lot of investor inflow, and this is one of the biggest problems and why it tends to weaken off more aggressively than its regional peers when sentiment dies," said Stephen Innes, head of trading for Asia Pacific at Oanda Corp. in Singapore. "It is still going to be the local whipping boy in the region."

A forecast of 51 per dollar for year-end 2018 may be a bit optimistic if anything, he said.

Philippine policy makers have been in no rush to raise rates even after the Federal Reserve increased its benchmark this month for the third time this year. Central bank officials have defended their position by saying annual economic growth in excess of 6 percent is unlikely to cause overheating.

Before anyone can say, "It's because the peso is weakening." then one should think that the Japanese yen and Korean won are much weaker than the Philippine peso. They key is actually with the investor inflow to why the Philippines is beaten out by both Japan and South Korea. So why didn't the Philippine economy rise up? It's from a lack of investor inflow which is due to the 60/40 limit -- foreigners will only get 40% and Filipinos will get 60%. Please don't give me the whole nationalism B.S. or that first world countries didn't make FDIs a top priority towards improvement.

How will inviting foreign investors to compete with local investors help save the Philippine peso's performance? It will give the badly needed investor inflow. You can't get investor inflow through the 4Ps program because that's an outflow of money from the government treasury. Foreign investors are under the Philippine government's authority. They get rich but all that money is taxable. That's because when they get approved to do business they must get a Philippine Tax Identification Number from the Bureau of Internal Revenue which in turn -- the richer they get, the more taxes that they have to pay such as paying corporate income tax or taxes paid through purchases. 

How will having more foreign investors increase spending power? It's by giving unemployed Filipinos a steady flow of income by getting them employed. The financial contribution of foreign investors through their income taxes and a wise use of government budget may soon help increase the daily minimum wage. Countries with a high inflow of foreign investment can pay much higher than the current minimum wage of the Philippines. In turn, every payday whether it's weekly or every 15 days -- it means that spending power will increase because more Filipinos now receive their salaries.

It's now or never. Liberate the economy now or let the Philippines go down.