Canadian capitalists eye PHL as investment site

CEBU, Philippines - The Philippines remains to be an attractive investment site for Canadian investors, particularly in the fields of mining, agro-food, outsourcing and technology, and financial services.

Canadian Ambassador to the Philippines Christopher Thornley said that the Benigno Aquino III government has strengthened the confidence of Canadian investors to consider the Philippines as market and as an expansion site.

Thornley, who was here in Cebu Tuesday, to give a talk to Rotary Club members at the Radisson Blu Hotel Cebu, said that its growing trade in the Philippines is very promising, although the country “has been a challenging market.”

He said corruption issue inhibits investments and trade to the Philippines. However, the thrust of the PNoy administration to curb the long-standing and rampant corruption issue in the country has given hope to Canadian capitalists or traders.

Thornley said more mining related investments from Canada will pour into the Philippines if and when the government amends the regulatory system in giving foreign investors’ easier requirements in this particular sector.

In the agro-food sector, the Philippines is the second third largest market for Canadian products in Southeast Asia. Thornley mentioned distance and the availability of easier transportation access as one of the barriers in increasing market penetration especially for agro-food products, despite the big consumer-base in the Philippines.

In 2010, Canadian merchandise exports to the Philippines were CAD $683.7 million, while Canadian imports from the Philippines were valued at CAD $889.0 million.

Canada’s trade with expertise in information and communication technology, aerospace and defence, power generation (renewable energy), and natural resource extraction are in a position to take advantage of new opportunities within these sectors.

Also, the market for agricultural products in the Philippines continues to be robust with significant potential for growth within the processed food and beverage sub-sector and franchises.

Meanwhile, the Ambassador said the continued interest of more Filipinos migrating to Canada has strengthened the partnership of both countries. As of 2010, the Philippines is the largest source country for immigrants to Canada, with half-a-million Filipinos now residing and working in Canada.

Approximately, there are only 7,500 Canadians residing in the Philippines.

He said Canada, with only 18 million population, is largely dependent on immigrants to support its economic development and employment requirements.

In fact, Canada targets at least 250,000 immigrants a year, and one of the most active countries to supply manpower is the Philippines. (FREEMAN)