CEBU, Philippines - The Philippines need to take a serious stance in addressing its low competitiveness issue, otherwise, foreign investors will continue to have a negative impression about the country’s attractiveness as investment site.
Canadian Chamber of Commerce in the Philippines (CanCham) president Julian Payne made this statement, following the declining ranking of the Philippines in terms of competitiveness compared to its other Asian neighbors.
Payne said although domestic investors is getting stronger now, the Philippines still need to attract FDIs, because of technology, and investment they bring in to the country, as well as employment and huge revenues.
Despite the pronouncements made by the current government administration to address the bureaucracy and some complicated business processes, doing business in the Philippines is still more difficult compared to other countries.
“The Philippines has incredible potential, but competitiveness should improved. Make the country more accessible to foreign investors,” Payne said.
Unlike the foreign portfolio inflows, which dominates the countries foreign investments now, the FDIs are serious in putting businesses here, and ‘they are here to stay.”
Moreover, what disturb most foreign investors is the government’s unstability policies, which most of the time policy makers change the rules in the “middle of the game.”
On the other hand, Canadian Ambassador to the Phliippines Christopher Thornley in an earlier interview said that 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.
Although, the country has gained interest from foreign investors, specifically Canadian, Thornley said the government should be sincere in its thrust in curbing the long-standing problem and rampant corruption in the country.
The commitment of President Aquino however, in curbing corruption has given hope to Canadian capitalists or traders to consider the Philippines as its expansion site in Asia.
The Ambassador said that the strong interest of Canadian business organizations and investors to investment in mining for instance, will enhance if the government will change the regulatory system in giving foreign investors’ easier requirements in this particular sector.
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. (FREEMAN)