West Philippine Sea not key concern for investors in US

CALIFORNIA – The West Philippine Sea issue is not a top-of-mind concern for investors eyeing expansion in the Philippines, according to a former US trade negotiator and Filipino business executives here.

While the geopolitical tensions with China are among the factors being considered by investors for potential expansion, the issue is not something that is high up on the list, Manny Maceda, CEO and chairman of the board of global management consulting firm Bain & Co., said.

“I would consider it sort of a second order, one of the factors to consider but it’s not a top-of-mind,” Maceda told visiting Filipino journalists at a recent meeting organized by Global Ties San Francisco as part of the United States’ Friends, Partners, Allies program.

The more pressing issues investors look at are ease of doing business, the presence of an investment ecosystem, the strength of the market, the quality of the supply chain and the available talent, said Maceda, son of the late Senate president Ernesto Maceda.

In the case of the Philippines, he said the country remains attractive to US companies because it is one of the fastest growing economies in the region in terms of real economic growth and private consumption.

Maceda said the US is already the number one export destination of Philippine products and among the Philippines’ top three sources of foreign direct investments.

There is also a historical cultural affinity with the Philippines given Filipinos’ English proficiency which helps attract US investors to the country.

Frank Levin, former undersecretary for International Trade at the US Department of Commerce and former US ambassador to Singapore, also said the West Philippine Sea issue is not something that would lead to an economic shock for the Philippines.

“It’s not a convulsion for the nation, or it doesn’t collapse the stock market, or (it’s not like) people are fleeing. It’s bullying so it is a test. But I don’t think there’s a direct economic cost to the test,” Levin told Filipino journalists at a separate meeting.

At the same time, he said, it’s not healthy to have such tension persist especially as it might escalate.

Jose Avelino Flores, co-founder of Silicon Valley-based Plug and Play Tech Center, for his part, said the Philippines needs to market itself versus other countries if it wants to attract more investors..

“I think for the last 10 years what was missing in the Philippines was a unique selling proposition,” Flores said.

Having a “unique story,” Flores said, would encourage investors, particularly venture capitalists to look at Philippine startups.

JR Calanoc, CEO of Dynamico Space and who helps connect Filipino entrepreneurs with Silicon Valley’s resources, meanwhile said it’s good that the Philippines-US relations are now on hyperdrive so that investors would realize the potential of Philippine startups.

“This hyperdrive that is happening is amazing,” he said, citing its likely effect of bringing global attention to Philippine startups and other companies including graphic and web design platforms being developed in the Philippines.