CEBU, Philippines - Foreign direct investments are seen to fuel Cebu’s economy as these pave the way for the creation of more employment opportunities, thus increasing the purchasing power of locals and achieving inclusive growth for the community.
This according to Cebu Investment Promotions Center Managing Director Joel Mari Yu during the launch of the new promotional video for Cebu as an ideal investment hub last Friday.
Yu compared the performance of the Philippines with the economies of Singapore and Thailand which have been posting good numbers as far as foreign direct investments are concerned.
Over the last three years, he cited, Singapore and Thailand have earned $167.08 billion and $25 billion from FDIs respectively while the Philippines only generated $4.1 billion from 2010 to 2012.
“Thais are twice richer than Filipinos and Singapore is twenty times richer than Filipinos,†he said, adding that in 98% of the businesses in Singapore are FDIs.
He cited that in the Philippines, Manila, CALABARZON and Cebu are the viable locations for FDIs.
He said that in Cebu, 278 locators in six economic zones employ 107,170 employees who get paid with an average monthly salary of P13,000.
For the IT/BPO industry on the other hand, he said that the sector has 139 locators with 95,000 workers employed who earn an average salary of P20,000 per month.
Yu added that the manufacturing sector and IT/BPO industry contribute P1.39 billion and P1.9 billion respectively for the salaries and wages of the employees.
He also said that with the P3.29 billion earned from the salaries plus the maintenance and operating expenses of companies at P3.29 billion, around P6.58 billion could be considered as “new money†pumped from FDI investors into the Cebu economy every month.
He pointed out that these doesn’t include yet the annual direct indirect employment generated which amounts to 202,150 and generates P1.6 billion for monthly payroll.
These come from support industries such as cafes and restaurants, boarding houses, apartments and condos, insurance, banks, bars, massage parlors, education, transport, shopping centers and malls.
To expand domestic consumption and increase purchasing power, Yu said that Cebu has to embark on a strategy of increasing non-Cebuano participation in the economic development through their investments and expenditure in the province in the form of factories, office space, commercial establishments and resorts.
“We should try to be more competitive for direct investments and adopt the same strategy of Thailand and Singapore,†he added.
Aside from attracting more FDIs in the country, he said that Cebu also to promote itself to the global market as a second home destination.
“Our main attraction should be the livability of Cebu. Our target markets should include OFWs, and the ever- increasing retiree communities in Japan, South Korea, Hong Kong, Taiwan and China, as well as the balikbayans and affluent Filipinos outside Cebu,†he stated.
CPIC launched an eight-minute video that highlighted the investment potentials found in Cebu taking into account its skilled workforce, regular flights, accessibility to international ports, manufacturing, tourism and service industries, shipbuilding center, and the South Road Properties which is projected to be the single biggest driver of the local economy.
The new promotion video that Yu unveiled identified Cebu as the Philippines’ best-seller, pointing out the frequent flights to Cebu’s airports and its access to an international port. It also cited the presence of a skilled labor force and highlighted the South Road Properties as an ideal spot for investments.
The new video was produced by IC Productions with funding provided by Globe Telecom, PLDT, Visayan Electric Co. and Cebu City Government.
CIPC introduced its first video in 1994. (FREEMAN)