Strategic positioning to help boost Phl competitiveness

MANILA, Philippines - The Philippines can adopt strategic positioning in a bid to capture more investments coming in the region brought about by a bigger market in the Asean Economic Community (AEC).

“If Thailand is the kitchen of the world, are we going to be the manufacturing hub of Asean considering factories are here with us? This is something that we should work on together with the private sector,” said Trade Undersecretary and Board of Investments (BOI) managing head Adrian Cristobal Jr.

Cristobal, during the recent Asean Comprehensive Investments Agreement (ACIA) Forum, said that Philippine investments remain marginal and the number of companies in overseas investment is limited compared to other countries.

Asean report 2012 indicated that intra Asean investment flow for the Philippines from 1995 to 2011 reached only $1.6 billion, or roughly about $100 million a year.

Cristobal noted that the free flow of investments is among the five core elements in transforming Asean into a single market and production base.

“...Asean envisions a free and open investment regime, is key to enhancing the region’s competitiveness and intra Asean investments. Likewise, steady and sustained inflow of new and real investments will promote and ensure the dynamic development of Asean progress,” he said.

Philippine Chamber of Commerce and Industry (PCCI) president Alfredo Yao said the business group aims to address issues that will achieve goals of increased competitiveness, economic expansion and jobs creation through quality investments and economically viable industries and enterprises.

Yao said the ACIA targets to create a more conducive business and investment environment and increase intra-Asean investment to encourage greater industrial complementation and specialization.

He underscored the need to establish a robust manufacturing sector to expand its asset base and provide more jobs in the country.

“If we harness and strengthen our manufacturing industry, we will create more jobs, encourage the domestic expansion of our industries in the value chain, and create more niches and value additions for our entrepreneurs to pursue wealth creation,” Yao noted.

The Asean continues to attract foreign investments, generating a record $114 billion in foreign direct investments in 2011, up by 23 percent from $92 billion the previous year.

“Being a region of diverse and different markets, varying economic developments, and diverse cultures, it is one of the most competitive regions in the world today which leads investors to a wide range of opportunities, an expansive list of possibilities, and a long list of industries for their investments whether they are small, medium, or large enterprises,” he added.