Investors now eyeing Philippines

China wage inflation drives business to Manila

1:26 am | Wednesday, November 23rd, 2011

The Philippines is benefiting more and more from China’s increasing wage inflation as companies in the region turn to other countries with their investments.

According to Trade Secretary Gregory Domingo, even native Chinese companies are keen on locating in the Philippines.

“There have been movements from China to the Philippines. We have gotten increased queries from Chinese, Japanese and Korean firms,” he told reporters in a recent interview.

Domingo declined to give specific names, saying only that these potential investors were a mix of medium and large companies, some of them multinationals.

A survey conducted by Chinese media group Caixin a few months ago showed that labor costs in China continued to increase due to higher demand for labor and rising salaries.

Labor-intensive companies, such as those in the garments and textile sectors, are now feeling the pinch from this accelerated wage inflation, the Caixin survey found.

Some garments factories in China have already transferred their operations to the Philippines due to increasing labor costs in the mainland, Domingo said.

Meanwhile, the Philippine Economic Zone Authority (PEZA) is expecting to increase its investment haul for the year, and looks forward to another good year in 2012.

According to PEZA director general Lilia de Lima, the PEZA board has further increased its investment growth target for the year to more than 11 percent.

Initially set at 10 percent, PEZA has revised the target to 11 percent, due to the expected increase in investments, exports, and employment for the year, she said.

And given the success of recent investment missions, de Lima said PEZA’s investment pledges for the year could grow by more than 11 percent.

PEZA last year registered a little over P201 billion in investments, $40.47 billion in exports, and 735,672 in employment.

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Tags: Business , China , companies , Investments , Philippines

http://pulse.yahoo.com/_5STEU22AD7YRHQSB6RE56ZDSYA J

Philippines is No. 4 among the Worst Countries to do business…
(http://sg.finance.yahoo.com/news/World-Worst-Countries-cnbcwp-3990848173.html?x=0)
Until we overcome this problem investor will easily come and easy go.

…..
4. Philippines
2010 GDP: $199.6 billion
2010 FDI: $1.7 billion

The Philippines is the lowest ranked Asian country on the list of the most difficult places to do business in. It attracted just 2.5 percent of the $76.5 billion of foreign direct investment that flowed to the 10 members of the Association of South East Asian Nations (ASEAN) in 2010.

Despite having massive untapped mineral wealth, a key geographical location between Southeast and North Asia and a large, growing English-speaking population, the country has fallen behind its neighbors in economic growth.

Foreign businesses are wary of the Philippine’s unstable legal system, violence, and bureaucracy. Its ease of doing business ranking from the World Bank fell a further two spots this year from 2010. The country also ranks among the lowest when it comes to starting a business, and resolving insolvency, with the latter taking more than five and half years, compared with an average one year and seven months in OECD countries.

Last month, Philippine President Benigno Aquino made trips to the U.S., China, and Japan to push for investments, as well as to send a message that things are changing in the country, after two previous administrations were dogged by corruption allegations. Aquino’s trip to China resulted in $7 billion to $9 billion of potential investments.

The Philippines also jumped 10 places to 75th in the World Economic Forum’s global competitiveness index this year.

expatparin ramos

Kabayan, this was acknowledged by the current government and explained that in the next WEF surveys, the reforms would have settled to all government office and make investing in the country better. Rome was not built overnight. During the mid term of the government, you will see the difference.

http://pulse.yahoo.com/_5STEU22AD7YRHQSB6RE56ZDSYA J

Since Corruption Perception Index (CPI) was established for each country in 1998, PH scored 55. Good it went down by one notch the next year at 54. Since then it went worst every year up to 141 in 2008 along with Iraq, Afghanistan and some African countries. In 2009 to 2010 it went down a one notch. 54 to 139 in 13 years. Getting back the country’s CPI back to 54 or lower is not a question but it is a question of When. 2016? Nah… next question.. Who is next President… Binay?
What I was trying to say is people must wake up. Speak up to unearth the worst for others to know as well as emphasize what we are up against to. It is not only the leaders who are at fault but us as well. One can only hope that this govt would not budge to get rid of corruption until their term ends. Bottomline without the people’s help there is no way of going up. We are rebuilding a Rome by the way.

Investors now eyeing Philippines

China wage inflation drives business to Manila

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