How others perceive us

I recently went to Amsterdam for a board meeting. During an excellent flight on Singapore Airlines, I read an article written by a senior writer of the Singapore Straits Times, Mr. Bruce Gale. I found his views painfully embarrassing and I am reproducing most of his column.

“According to legend, the Roman emperor Nero played his fiddle while Rome burned. Are Filipinos guilty of something similar? Last month, when officials announced unexpectedly poor first-quarter growth figures that showed the economy teetering on the brink of recession, the country hardly blinked.

The nation seemed far more interested instead in the proceedings of the Senate as the august chamber investigated a sex video scandal involving a local actress and her doctor. Amid the blow-by-blow coverage by television, radio and Internet news websites, one could have been forgiven for thinking that nothing of any significance was going on elsewhere.

Even politicians who did manage to tear themselves away from the show seemed more interested in trading barbs about the implications of a recent merger of the country’s two biggest political parties ahead of the 2010 presidential elections.

Nobody seemed interested in the economy. This was despite the announcement that gross domestic product (GDP) had risen a mere 0.4 percent year-on-year, the slowest in a decade, and much lower that most economists had expected.

The government’s finances may also be in difficulty. According to Economic Planning Secretary Ralph Recto, the 2009 budget deficit may exceed a record P250 billion (S$7.7 billion) as the government attempts to spend its way out of a possible recession ahead of the elections. Government borrowings rose by a quarter in the first four months of this year as the fiscal situation deteriorated with lower tax collections and higher expenditure.

The disappointing economic news came not long after the release of the annual World Competitiveness yearbook, which placed the Philippines 43rd out of 57 countries. ……... The Philippines has regressed steadily in the international tables after being ranked 36th in 2005.

Yet last month’s preoccupation with sex scandals and political maneuvering suggests that few of the nation’s legislators are particularly concerned. New measures – some designed to stimulate the economy by cutting taxes and other aimed at raising revenue from alternative sources – either await formal approval by Congress or languish in various legislative committees. One Bill designed to rationalize fiscal incentives has been passed by the House of Representatives and sent to the Senate. But it may not be approved by the President because the House version contains income tax holidays for some industries, thus preventing most of the expected windfall of P10 billion from being realized.

Indeed, it is revenue-raising measures which are having the most difficulty getting legislative approval…….

Congress was adjourned on June 3, meaning that none of the above measures can be considered again until July 27, when it begins its final session before the elections. Such an apparently lackadaisical approach does not encourage confidence in the ability of the country’s leaders to steer it through the global economic downturn.

That said, there are some positive things to be noted. Unlike some of its neighbors, the Philippines has not yet entered a technical recession. The fiscal deficit as a proportion of GDP also remains manageable, having declined significantly in the years leading up to the economic downturn late last year. Even now – with a projected increase to almost three percent of GDP this year – the ration is still better than Malaysia’s eight percent. And while the Philippines scores badly in international competitiveness rankings when it comes to issues such as corruption, infrastructure and education, the efficiency of its labor force and the quality of its private sector management are still widely recognized.

As for that sex scandal, it has at least illustrated the need to improve legislation regarding cybercrime. Philippine National Police Director of Community Relations told the Senate last week that the lack of suitable legislation means that the police can do little to stop the spread of obscene materials online. Hopefully, one or more of the bills on this subject currently languishing in the Senate will now receive greater attention.

The point about the Philippines is not so much how bad things are, but how much better they could be if the nation were to focus its energies on the things that are really important.”

Fortunately, Mr. Gale did not know about the legislators’ (House of Representatives) equally embarrassing obsession with con-ass.

Kota Kinabalu, Sabah

Last week I was on a brief business visit to Kota Kinabalu. I brought a small business delegation to determine whether there was any business potential for Filipinos. The visit was organized by the Malaysian Ambassador Dato’ Ahmad Rasidi Hazizi and economic counsellor Vimala Murugan. Our Ambassador Vic Lecaros was our efficient coordinator in Kuala Lumpur and in KK. Both the Malaysian embassy and the Philippine embassy staff deserve our gratitude for making this a meaningful and informative visit to KK.

Kota Kinabalu has a yearly tourist arrival of two million plus. Moreover, they have a brand new airport capable of receiving eight million visitors annually. In fact there are two Shangri-La hotels: one five minutes from the airport and another 40 kilometers away with a championship golf course.  Another 400 acre hotel is in the heart of the city with another golf course. Their statistics are very close to ours in tourism and their airport is definitely superior to ours. Food for thought!!!.

We called on the Chief Minister of Sabah Datuk Seri Panglima Musa Haji Aman who assured us that he welcomed Filipino investment. On the following day we met with the Minister of Industrial Development Datuk Raymond Tan and the Sabah Economic Development and Investment Authority. The three government visits were most informative.

My business partner has decided to invest in KK. It is my further understanding that another delegation member will also come back to pursue his agricultural interests. I urge other businessmen to visit and explore business opportunities. There are amazing similarities with the Philippines, good and bad.