Outdated policies continue to dampen investors interest

CEBU, Philippines - As the Canadian manufacturing investors are beginning to take strong interest to consider the Philippines as their priority site for offshore expansion, outdated foreign direct investments (FDI) policies and restrictions, however, discouraged some to pursue investing in the country.

Canadian Chamber of Commerce in the Philippines (CanCham) Julian Payne said that Philippines should amend policies for FDIs that are no longer applicable, and that strict restrictions should be avoided in order for the Philippines to take off in its bid to tap the huge manufacturing investments worldwide.

Without these "unfriendly" policies and the existence of bureaucracy, the Philippines has great advantage over other Asian countries in terms of luring manufacturing investors because of the manpower's excellent command in English, relatively low cost of doing business, and the Filipinos' good reputation as employees or good workers.

"We are beginning to see interest from the manufacturing sector investors from Canada to the Philippines. But there are things that the Philippines should do in order to make this happen," said Payne in an interview.

Some Canadian investors, who decided to put their businesses in the Philippines, reportedly have to struggle before getting permits and other documentary requirements from the government.

Despite the government's pronouncements of implementing friendly business and investor environment, Payne said foreign investors still have to "maneuver" some requirements to accelerate approval.

The CanCham president added that aside from the strict and stringent requirements for FDIs to come, the issue on accessibility is also equally important.

He mentioned that the Philippine government should "champion" the "open skies" policy to pave the way for international airlines to open up routes to the Philippines. In Canada, for instance, availability of direct flights is not enough.

"Good transportation link is very important to boost your tourism and investment sectors," said Payne.

At present, Canadian investors are also inclined to open up businesses in neighboring Asian countries like Thailand, Vietnam and Indonesia, although there is a growing interest to consider the Philippines.

Meanwhile, the National Economic and Development Authority (NEDA-7) assistant regional director EfrenCarreon said in a separate interview that the province has seen a "renaissance" of manufacturing sector.

According to Carreon, there are growing inquiries from foreign investors to set up plants in Cebu starting last year.

However, Carreon said aside from attracting the manufacturing FDIs, Cebu is also urged to maximize its potential to encourage local capitalists to invest in processed agricultural products making.

"Aside from attracting huge semi-conductor and other type of manufacturing companies, local investors are also encouraged to invest in the agri-based manufacturing businesses, as these products are also becoming an in-demand commodity in the world," said Carreon.

Cebu's position as the center of trade, with good logistical infrastructure, is a strategic location for this type of investment, Carreon added. /JMD (FREEMAN)