Terror and business

At the Philippine Business Forum in Manila Hotel the other day, Pakistani President Pervez Musharraf’s speech focused mainly on business in Pakistan persuading Filipino businessmen present at the forum to consider his country as a regional investment hub. He said that compared to less populous countries like those in Scandinavia, the percentage of educated and skilled people among Pakistan’s 150-million population is high. He tried to convince us that Karachi is safe when he said that sometimes he would go around at 3 a.m. to have coffee. But most probably, he was trailed by a hundred bodyguards. We have to remember there have been two major attempts on his life. But his main pitch anyway is that Pakistan is making the right business moves despite its being on the forefront of the war against terror.

I asked him at the open forum how he could keep a balance between waging a high-profile war against terrorists at the same time trying to get foreign investments to come in to Pakistan. Initially, he didn’t get the question so I pointed out to him that we seemed to have the same problem here with the American’s concern over Mindanao as a potential terrorist haven and with the travel advisories issued against the country. Like us, Pakistan has been issued a lot of travel advisories, especially in Karachi. He answered that their war against terrorism has been successful because they have been able to control its growth by capturing over 700 Pakistani supporters of the Al Qaeda and the Taliban with good intelligence assets and operations in the city, the countryside, and the mountains. He then followed through by addressing his people’s sense of desperation and by enlisting the aid of moderate Muslims to neutralize their extremist brothers. He maintained it’s much safer today to go to Pakistan and conduct business than it was a year ago.

We shouldn’t really be too sensitive over the travel advisories, strong comments, and suggestions coming from our so-called allies. Travel advisories are a necessary evil that we have to live with. If you really look at it from an objective point of view, there should really be more travel advisories issued on the United States and other European countries because they are the targets of terrorists. Countries like Pakistan, the Philippines, and Indonesia perhaps serve as training and staging grounds. As President Musharraf said, we really have to go on with the business of business. And he feels that for so long as the government does its part in addressing the people’s sense of hopelessness and in creating a climate for business, the investments will come in. Come to think of it, New York City, where over 3,000 people died, in the single biggest terrorist attack in recent history is even more vibrant today than ever. Real estate prices have gone up by over a hundred percent in Manhattan since 9/11. So what do we make of that?

At the Manila Overseas Press Club’s (MOPC) PNP Night, Art Lomibao – the PNP Director-General – confirmed that intelligence is indeed a crucial factor in soundly defeating terrorism. Information and knowledge are power and these are the keys to victory in an asymmetric war. With their advanced technology, sophisticated techniques, and superior training, American support is vital to both Pakistan and the Philippines. But ultimately, business is the best long-term weapon in the fight against terrorism because it propels the economy and generates jobs. For President Musharraf, creating jobs and spreading prosperity among his people are his main strategies against terrorism. Going on a global investment roadshow is a must for him to achieve his objective. Maybe we should start moving in that direction, too.

PLDT Chairman Manny Pangilinan, who founded First Pacific in 1981, spent a lot of time abroad after taking his Master’s in Wharton. He stayed in Hong Kong for 23 years and came back to the Philippines in 1998 with a vengeance. Like his father – Doming Pangilinan, the hardworking president of Traders Royal Bank – Manny is a disciplined technocrat whose patience and vision propelled PLDT to where it is today. He knew that he would ultimately return to the Philippines and contribute to nation-building. In fact at one point, his Indonesian partner Anthony Salim said Manny was more a nationalist than a businessman. But Manny Pangilinan proved he could strike a good balance between nationalism and profitability with the way he charted the course of the PLDT Group of Companies – with revenues of P20 billion last year alone. This year, in the first quarter, they have already hit the P9-billion mark!

PLDT’s operations are expanding into satellite TV business in a joint venture with EchoStar, the Colorado-based all-digital TV network. EchoStar, the largest direct-to-home digital TV network in the US, has 11-million subscribers. Partnership like this certainly proves that the country can attract more investments and create more jobs for Filipinos. Two years ago, PLDT formed Parlance Systems Inc. with EchoStar. Parlance Systems is a $6-million call center facility exclusively dedicated to the Dish Network. President GMA visited the facility recently with EchoStar Chair Charlie Ergen. EchoStar is renewing its contract with PLDT’s multimedia arm: ePLDT. In fact, for practical purposes, Dream TV’s Tonyboy Cojuangco and Manny Pangilinan are now looking at teaming up Dream TV with the PLDT-EchoStar venture.

The other day, the American Chamber of Commerce was urged by US Amb. Frank Ricciardone to continue expanding their business activity. He said the US is committed to support the Philippines to create and secure an environment for business. The Ambassador said that even if actual dollars have gone down for military aid, there still are many areas where the US is committed in helping the Philippine economy and military.

There is a growing indication that businessmen are beginning to have an upbeat mood. Some though, are still a little timid because of the uncertainty over the VAT issue and perceived political instability. But business is business and any businessman who has the confidence and the appropriate vision like Manny Pangilinan and others will find that business will undoubtedly grow in this country. And if you look at countries that have been ravaged by wars and coup attempts like Vietnam and Thailand, you will find that these countries have even pulled ahead by focusing on business and by aggressively pursuing investors. The Philippines could do the same with a good dose of focus and perseverance like Thailand. Even Iraq is starting to move forward with business activity, especially after their elections.

So at the end of the day, it is business that will defeat terrorism and will ultimately improve peoples’ lives. And as the old saying goes – Politicians and terrorists (not necessarily in the same equation) come and go, businessmen are definitely here to stay.

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