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Corruption still worries American firms in PH

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American companies in the country are keen on expanding in the Philippines but still view corruption as a major concern, a recent survey showed.

Results of the Asean Business Outlook Survey showed that 83 percent (58 percent to expand and 25 percent to expand significantly) of the respondents indicated that their companies were planning to increase their operations in the Philippines.

“The top three reasons for expansion in the Philippines are availability of trained personnel/efficient manpower, increasing market share and diversification of customer base,” the report said,

The poll, conducted from June 15 to July 3 this year, also found that the availability of low-cost labor, skilled labors and sentiment toward the United States were identified as strengths by American businesses in the country.

Philippine-specific results showed that satisfaction with the Philippines’ sentiment toward the United States reached a new high in 2012 at 83 percent.

Results of the survey showed that 78 percent of the respondents were satisfied with the availability of trained personnel while 73 percent were satisfied with the availability of low cost labor in the country.

However, 73 percent of the respondents said corruption was a leading concern, followed by ease of moving products through Customs (43 percent), laws and regulations (43 percent) and infrastructure (40 percent).

The survey also said that the percentage of expatriate employee satisfaction in the Philippines was at an all-time high in 2012.

“This may partially be attributed to the fact that space constraints in international schools for expatriate workers have become less of an issue in recent years,” the report said.

The survey was conducted by the United States Chamber of Commerce and the American Chambers of Commerce in Asean and polled 365 senior-level executives from American companies in the Asean region.

In the Philippines, a list of 238 American companies were provided by the American Chamber of Commerce in the Philippines and the response rate was about 17 percent, or 40 companies, at the end of the data collection period.


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Tags: Asean Business Outlook Survey , Business , companies , graft and corruption , Philippines , US

  • http://profile.yahoo.com/VUFRGRCCA5JXOLKEVCJQ3FBW3Y Concerned Citizen

    The Philippines took the risk of standing its ground against China while its ASEAN neighbors (except Vietnam) remained silent.    And while the world thought that the Philippines did not have a chance, the US affirmed the validity of the Mutual Defence Treaty and even announced a pivot in Asia.  Subsequent events led to this verbal war between China and the US and this eventually led to  21% of US Companies in China that are already planning to relocate their manufacturing facilities in South East Asia.  Even before the conflict between the Phils and China, the Philippines is a country of particular interest but there are barriers to entry in the Philippines that made investors choose even non-English speaking nations.  This resulted to the country at the bottom of the FDI list and with Indonesia even surpassing us.     But now, there is this big opportunity to catch up with the investments that went to our neighbors.     But all still depends  on the Philippine  government if it steps up to make the Philippines competitive with the trade laws of our ASEAN neighbors.   The country will gain the most from the liberalization of industries of electronics and technology products that are not produced  locally.  This is more beneficial than importing finished goods because of boosts in the economy, job creation, more taxes collected, local sourcing of raw materials and supply, sub-contract works, possible technology transfers and the multiplier effect.   These investments do not exploit our natural resources such as mining and the oil industry which, on my personal opinion only, must either be Filipino-owned companies or state-owned or a joint venture of these 2.  Anyway, my point is we took the risk and it will be better for the country if we will reap the benefits this time and not our neighbors who are mostly still in silent-mode.

    • Platypus09

      Most Filipinos know this. But they still have questions as to how they are going to help our country to reach those expectations like you said.

      Yes, thanks for the advice or your thoughts but that is not sufficient. We know these ideals.

      You cannot tell us JUST general concepts only, but tell us specific details on how or what to do to get there.

      You are just like us, most of your fellow Filipinos, who are clueless.

      We are not educated in terms of creating something good for our country and others, and running businesses or creating jobs. Most of us are followers, very few like to be business owners, good politicians, or great business leaders who can run business
      empires locally and globally.

      Our children are not raised to grow up to be the best they can be, be real educated, and do the best they can to serve our country, business wise, or becoming military men to defend our country, or raise the reputation of our country in all aspects of our lives.

      This is where good education comes in, be in school or at home with parents who may know better. Good media reporting can be a tool to educate everyone, especially our children. Experts among ourselves can educate or share their expertise with the rest of us to be better persons, better entrepreneurs, better leaders, or better employees in all sorts of fields, at schools or conferences.

      Let us lead others on how to live their lives or work better by sharing expertise with
      each other, for free or affordable fees. Now, I am suggesting, to say the least.

      Having crab mentality is innate among us. We perhaps are raised that way. It originates in unresolved sibling rivalries in our homes and from the bullying that we did to each other when we were children or growing up. We need to show that we love our children and others, so they can also emulate when they go outside and when they grow up and become better and loving persons. We need to care for others and help others for the benefit of our country eventually. We need to unite always, not putting others down.

      There is always favoritism in our homes. We were never advised to love each other as children, respect others as we respect ourselves, help others in need, or simply love others as we love ourselves. Spanking and punishments were rampant which made some of us mean to each other. Most of the time, it is the favorite child in the family who gets the attention from everyone, leaving others in the dark, disappointed and angry. There is something wrong with our family dynamics in our homes.

      Realistically, majority of our children (mostly poor) are only trained on how to survive day by day or how to hustle money to buy food every meal. It is the survival of the fittest most of the time.

      Our children are our future. If we don’t raise or train them to be better than their parents, the cycle will remain and our country will be the same, if not worse.

      Give our children the best care, physical, emotional, psychological; best love; good education; and good guidance on how to make a difference to the lives of others and raise the economy of our country when it is their time to run or manage our lives and our country when we get old.

      • sh1seadad

        I’m glad to see you finally woke up. This is what I was trying to say in this blog yesterday untill you got so rude.I know you are proud and the truth sometimes hurts but that is reality and that is what I ment when I said (Third world country I am not a Raciest or pervert just to let you know. I have many relatives in CEBU!

      • Platypus09

        Now I am rude? 

        I don’t think so. 

        You are the one who called our country, a Third World country to begin with. 

        That is being rude, plain and simple. 

      • http://profile.yahoo.com/VUFRGRCCA5JXOLKEVCJQ3FBW3Y Concerned Citizen

         All these news are concerns that the US Companies want us to address so they may invest in the Philippines and not anywhere else.  I am also advocating the same to convince the Philippine government to work out on the issues raised so that the country will benefit from their relocation.

        So far government seems open now to the idea of liberalization of manufacturing,  In PDI 9-6-12 news : “Manufacturing to hasten poverty alleviation, says PIDS”, it reported that PIDS are undertaking an integrated manufacturing road map and this is the first positive step in getting those investments.

  • http://profile.yahoo.com/VUFRGRCCA5JXOLKEVCJQ3FBW3Y Concerned Citizen

    Baka noong nag-iinquire pa lang sa mga requirements para mag-negosyo sa Pilipinas meron nang nakakaturn-off na options na sinabi sa mga tao ng potential investors on how business is conducted here.

  • thenewpulahan

    They can always go and invest in Vietnam, if that is still their perception. Meanwhile, let the Chinese, Malaysians, Singaporeans, japanese and whoever come here and enjoy the economic development upheaval that’s happening.

  • sh1seadad

    Greed and corruption is the reason the Philippines is still a third world Country. Untill this is stopped it will always be that way. Wake up Philippines.

    • Platypus09

      Where have you been?

      You must be out of the loop for still considering Philippines as a Third World country.

      It’s latest economic successes for the last five years does NOT equate with those very poor countries in different countries of the world.

      You must hate the Philippines much.

      Lots of the racist discriminating non-Filipino citizens of the world usually use the phrase Third World country as DEROGATORY or a plain insult.

      Shame on you.

      • thenewpulahan

         Hold your horses, only a crab Filipino talks like this. This guy is definitely not a foreigner. There are so many Filipinos of these kind here in the Internet who think that they are doing the country a favor when they despise Philippines based on 80s social socio -economic analysis on what the Philippines is.

      • Platypus09

        You could be right.

        But I also heard some insulting and racist Americans and other nationals of different countries of the world call our country and other developing countries as a “Third World countries” even though their economies have greatly improved, which to them means extremely poor. And they said to be DEROGATORY..

      • sh1seadad

        The Philippines is extremely poor just look arround and you can see it

      • Platypus09

        And what is your point? 

        We are trying to help and you are putting our country down. 

        You are NOT helping out. 

        Get off from this blog.. 

      • sh1seadad

        Look up what the term Third world country mean’s it is not a DEROGATORY or an insuilt in any way its just the way you see it

      • Platypus09

        Ow please, give me a break. 

        As if I was only born yesterday. And I was not. 

        Please don’t give me that crappy argument. 

        We know, at least us who are not ignorant, know what you and others meant when you guys use that term “Third World country” and most of the time they use it as DEROGATORY or an insult being the poorest country of the world, in which is not the case of the Philippines anymore. 

        And nothing can change my opinion on how you and others would mean if you call our country, the Philippines, as such. 

      • sh1seadad

        There are many people in the Philippines that are hungry, have no running, water, no electric, and so on. Many must live in shacks because they have no money. Many of the poor cannot even get an education. Many families have to send there son’s and daughters overseas to work so they can send money home to
        help there families. This is a sad way of life for many Filipino’s I know you are proud but you need to go out in the country side of the Philippines even if you have never seen the squatters in Manila and see for yourself. I could go on and on but I won’t if you live in the Philippines look around more if not go vsit and you will see many examples of a third world country.I an not ignorant either I have ties to the Philippines and have been there many times and I know more about the country than you may think.
         If you dont know what i’m talking about maybe you no longer are living in the Philippines

      • Platypus09

        Just to let you know, that I still find you rude, condescending and maybe RACIST, no matter how much you try to justify your rude remarks and behavior. 

        What are you doing in this newpaper blog forum if you are not Filipino? I still find that behavior weird. 

        You sound a typical racist American pig, or whatever your nationality is.

        You should never go back to the Philiipines. Or the Philippines should bar you from coming back or declare you as persona non-grata. 

        You could be a pedophile yourself or a sexual addict using minor Filipino boys or girls, who knows.

      • sh1seadad

        I didnt say it things havent gotten better but it still has a long way to go

    • Platypus09

      You sound like a protectionist American who would use derogatory remark like “Third World country” to any country that poses a threat to its economy for possible relocation of American companies to Emerging Countries like Philippines, Indonesia, etc.

      • sh1seadad

        no wrong again

      • Platypus09

        And you are right? 

        I don’t think so. 

        Talk to my hand Sir..

      • sh1seadad

        Im not going to use up any more time on this subjuct look up the term third world country on the web and you will see.

        Anyway you have a good evening and God bless you.

    • Diablo_III

      The Philippines is Newly Industrialized Country for your brainless information. 

      • sh1seadad

        yes right sure it is LOL

      • Platypus09

        Your mockery is so disgusting..!! 

        It is a shame that you have ties in Cebu..!! 

  • CyberPinoy

    Mga problema kung magtatayo ng business sa Pinas:

    1. Corruption – Sangkatutak na lagay ang babayaran mo para makapag establish ng business at karamihan dyan under the table at binubulsa lang ng mga local officials.

    2. Moving products from custom – di makakalabas kargamento mo pag di ka naglagay sa custom.  Kailan may kilala akong nabiktima dyan sa customs na australian friend ko.

    3. law and regulations – allowed sa constitution natin na pwede magtayo ng labor union na nakakasira sa kompanya at pakana lamang ng mga komunista para masira ang pondasyon ng capitalism. Limited foreign ownerships, sino ba naman magtatayo ng business ng ganitong systema.

    4. Infrastructure – walang kalasadang matino sa countryside and overcrowded ma capital city na puro trapik, mga drainage system hindi gumagana kaya nagbabaha.

    At marami pang ibang, ngunit ang lahat ng ito ay well known facts pero hanggang ngayon hindi padin nabibigyan ng solusyon.. 

    • http://pulse.yahoo.com/_CKBW2BZX34JXQUSVAMZVKCLNAU TagaDumantay

       Idagdag mo pa ang allowed na container para matransport ang producto to overseas and vise versa. Mas mahal pa mag ship ng kargo mula Manila to Cebu kaysa punta US (bulk cargo). Ayaw ng mabigat na kargo kasi mabibistong low quality ang kalsada.

      Ang mga local opisyal kontrolado ang lahat na business legal at illegal. Kahit ofw gustong mag business di makasingit. Pag sa medyo malayong probinsya naman, mga tarantadong NPA ang mangingikil sayo.

    • sh1seadad

      You are correct cyberpinoy



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