Japan’s Nomura Securities urged to reinvest in RP

Socioeconomic Planning Secretary Romulo Neri urged officials of one of Japan’s biggest investment firms to reinvest in the country and avail themselves of the infrastructure the Arroyo administration has put in place to support their investment initiatives.

Speaking before officials of the Nomura Securities during his recent visit to Japan, Neri announced the achievements that the Arroyo administration has put in place to reduce the cost and risk of doing business in the country.

He said the Arroyo administration has developed various investment sites such as Clark and Subic that are supported by good roads, airports and a seaport.

"Security is not a problem as these areas are safe," Neri pointed out.

He said rather than focus on China as an investment site, Japan should diversify to other Asian countries including the Philippines.

He said among the key structural reforms that will stimulate economic activity and further reduce the cost and risk of doing business in the Philippines include the President’s 8-point agenda; Special Purpose Asset Vehicle (SPAV); Housing Program; Subic-Clark Alliance Development; Visit Philippines 2003; Department of Trade and Industry’s (DTI’s) Small and Medium Enterprise (SME) Program; and the Bangko Sentral ng Pilipinas (BSP) Microfinance Program.

Neri said the stable macroeconomic environment in the Philippines has been auspicious for growth.

He said inflation fell to 3.1 percent in 2002 as the government imported key grains to keep supply adequate.

"Government was able to coordinate with transport groups and the labor sector to hold off transport fare and wage increases to keep business costs down and to preserve employment," Neri noted. He also noted that for the first two months of 2003, inflation rate averaged 2.9 percent.

"This is even below the target 4.5 to 5.5 percent for the year, which already factors in the assumption of higher oil prices arising from the US-Iraq conflict," he said.

Neri also urged officials of Nomura to help the country come up with official development assistance (ODA) financing packages.

He said more innovative financial strategies are needed in the Philippines to finance projects of local government units (LGUs), private sector, government-owned and controlled corporations (GOCCs), and the National Government (NG).

He said the innovative financial strategies should focus on the viability and assured benefits of a project which in turn will ensure repayment to creditors. He said this will minimize government’s exposure of loan guarantees where cash flows is a main guarantor of future projects.