When the tide of investment rises

It is rare that an Ambassador gets the opportunity to view his own country through the eyes of a foreign investor. I have just returned to Manila after such a trip from London and Glasgow. I suppose, I just treat the United Kingdom as home and seek out the familiar places. This time, I was truly astonished by what I saw and that was reinforced by the reaction of my travelling Filipino companions.

We breezed through the modernised London Heathrow terminal, through immigration and baggage hall within 30 minutes into the long wheel based Range Rovers which were kindly provided to us by the Indian owned but thriving British company, Jaguar Land Rover. Central London was basking in sunlight; tourists and locals were making the most of the opportunity in Hyde Park. Overlooking Westminster Abbey, our Minister of Trade set out why the UK was now the second highest recipient of foreign investment globally: political consensus on keeping an open economy, rule of law, corporation tax of 20% (the lowest in the G20), and access to the world’s biggest single market, the EU.

Minutes away from the City Airport and the heart of the financial district, a new London has emerged. The legacy of the Olympics is there to see — new businesses, housing and infrastructure including the Emirates Air Line cable car soaring over the docks which in bygone years handled the cargo steamships. Siemens showed off its pavilion which houses its innovations, conference centre and offices. French, Malaysian, Chinese investment capital is driving urban regeneration along the tidal River Thames from the East End and the riverbank across from Chelsea. In the mix are new luxury and social housing, hotels, offices, embassies and entertainment centres.

By private jet out of Northolt, or commercial out of all London airports or indeed by train from North London, the overall door to door journey time to Glasgow is more or less the same. We were there to introduce Dr Andrew Tan and his executives from Manila and Madrid to cement the P32 billion acquisition of the whisky maker, Whyte & Mackay, the second largest foreign investment ever made by a Filipino company. A chorus of ‘Mabuhay’ tinged with a Scottish accent greeted the Tan family. The investment fund managers of Edinburgh and London are already a source of capital for all the top conglomerates of the Philippines. BPI and other banks together with PLDT Global have chosen the UK as the HQ for their European outreach.

The appetite for investment by Philippine business is a sure sign of strength. They want foreign currency resources to match their import and loan exposure. Investment in technology, brands and creativity become properties that can be replicated here. A foreign enterprise gives the Philippines an outlet through which goods and services can be sold in new markets. Efficiencies are possible by marrying the BPO capability of the Philippines with the customers of its operations overseas. People exchange knowledge and share talent. New partnerships with British and other foreign investors will widen Filipino horizons further. There is no reason why a stunning Tom Heatherwick designed university building for a partner in Singapore, within the budget of a standard car park, cannot be built in Manila.

For the UK, foreign investment is a success story that we want to sustain. The foodies and shoppers on our trip were a testament to the fact that foreign investment has added to the diversity of the UK. The Hong Kong owned restaurant in the skyscraper, The Shard, is a new thrill providing that essential rice top up whilst Harrods, under Qatari ownership, is still an enduring favourite. If you want a small investment property with rental income or an entirely new township, you have unrestricted rights of ownership. From a venture spinning out an innovation in a university to a full scale nuclear power station, your capital will energise our economies.

There is a fundamental logic to foreign investment, both from the UK into the Philippines, where we are the No. 1 from the EU, and from the Philippines to the UK. The high tide of foreign investment enables the ships of all flags to rise in the water. Those ships move trade, they create jobs and that in turn leads to better lives.

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 (Asif Ahmad is the British Ambassador.)