MANILA, Philippines - Investors are now looking at the Philippines as a viable investment destination when compared to its Southeast Asian neighbors, the Bank of Tokyo Mitsubishi UFJ said.
In an interview, Trade Undersecretary Elmer C. Hernandez said Singapore-based Takashi Muraoka, Bank of Tokyo deputy chief executive officer for Asia, visited him to report that investors are bullish on the Philippines.
“He informed me that investors are concentrating on Indonesia and the Philippines right now,” Hernandez said.
Hernandez said they expect more investments from Japan because Japanese firms are seriously considering expanding in Asia.
Hernandez said the political turmoil in Bangkok has resulted in a number of firms reconsidering their decision to infuse money in Thailand.
On Vietnam, Hernandez said the problem has been manpower. “The attrition rate in that country has been high because there is a limited supply of a good work force,” he said. With that, although the production cost in Vietnam is lower, the high turnover of employees means that the training cost for workers is high.
“The Philippines has a quality work force and the turn over rate is manageable,” Hernandez noted.
Hernandez likewise said that the problems the Philippines is experiencing does not bother potential foreign investors. However, he said the investors would like to know how the government is addressing the problem. “Now investors would like to know how the new administration will further enhance the Philippines as a good investment destination,” Hernandez said.