A British trade mission expressed confidence yesterday that the security and peace and order problem are not a hindrance to their investment plans and desire to do business in the Philippines.
In fact, the group said they are keen on investing in at least four areas, namely: electricity and renewable energy, agriculture, information technology outsourcing and environment.
Representatives of 18 British companies pointed out that the security and peace and order concerns are not really a problem as long a they follow the advice of the British Embassy to stay away from certain areas and do business only in areas considered safe.
According to First Secretary Eammon Staunton of the British Embassy, British investors are coming to the Philippines without the British Embassy asking them to come.
"British investors recognize that President Arroyo has a strong economic team," Staunton said, adding that "the upgrade of Philippines’ credit rating to stable has also convinced British businesses to come to the Philippines."
"The British Embassy remains mindful of the security and peace and order situation in the Philippines and regularly issues and country advice," Staunton said.
Staunton said the British Embassy has been able to get the "right balance" in explaining the Philippine security and peace and order situation.
However, he admitted that there have been some observations from some British investors that "some things don’t happen quickly enough. And because of the long gestation period, some (investors) eventually decide to pack up and leave."
According to Staunton, British investors are also keenly watching the government’s privatization plan for the electricity sector.
"Once that finally pushes through, more British investments are likely to come in," he said.
In terms of trade, the two-way trade between the Philippines and the UK amounts to $2 billion annually.
British exports to the Philippines, peaked in 1997 at $981.18 million but dropped to $390 million in 1999 as a result of the Asian financial crisis.
There was a rebound last year when British exports to the Philippines improved to $566.74 million.
This year, British exports are projected to be the same as last year, although figures for the first half of the year have shown a decline.