WANGSALA COMPLEX, Thailand — In a bid to further strengthen its bid as one of the region’s leading business leaders, the Siam Cement Group, Thailand’s largest industrial conglomerate, is eyeing to expand its business interests in the Philippines and hoping to get a piece of its growing market.
Speaking before an audience composed mostly of Filipino journalists here in this commercial complex 100 kilometers west of Bangkok, SCG Paper president Chaovalit Ekabut said the Philippines is now gaining from its past sacrifices and slowly moving closer to economic prosperity.
“The Philippines is currently enjoying one of the biggest GDP in the region and we would like to strengthen our position in the market. There is a lot of things in store for business there,” Chaovalit said.
Asked whether the often shaky political situation in the country could somehow affect their initiatives to bring in their products, Chaovalit said, “There is politics everywhere. Even in our country we have political problems right now, but what is good in your country (Philippines) is that you are gaining grounds. Your GDP is actually one of the highest in the region,” he said.
Latest economic indicators had placed Philippines the third fastest growing country in the region with a 6.6 growth. Regional pacesetters are Cambodia which boasts of a 9.2 percent GDP growth and Vietnam at second, with 8.3 percent GDP growth.
Thailand, considered one of the region’s economic powers, had a GDP growth rate of 4.0 percent.
“Things are looking bright for the Philippines and that is our focus now,” Chaovalit said.
The SCG conglomerate entered the Philippine market when it took over United Pulp and Paper Co. Inc. (UPPC) from Phinma Inc. in 1993. Today, UPPC is a P4.32-billion industry, and is still growing.
Another SCG business interest in the Philippines is Mariwasa, which has a P0.5-billion scale of investment.
“We don’t have any qualms that we will make good in the Philippines. The climate is good for investment and we believe… Mrs. Arroyo is doing her best to improve the market condition and make the Philippines an attractive business destination,” Chaovalit said.
However Chaovalit had indicated that there are still a lot of things to be desired, especially in the area of transportation. For instance, he pointed out that traveling to China costs much lower than bringing a product from Manila to Cagayan de Oro.
The freight cost and the shipping is just too high that it does not make good business sense to go down south,” he said.