PHL has best human resource pool in Asia –Lalonde
THE Philippines is the easiest place to be in Asia for start-up businesses mainly because of its competent human resources and easy-does-it business environment, Shore Solutions Managing Director Darcy Lalonde said on Thursday.
“From my perspective, it’s the people [that makes the Philippines an attractive investment destination]. The human-resource pool is very talented, the English [speaking ability] is great, the attitude is great, the loyalty is good,” Lalonde told reporters at the sidelines of the Asia CEO Forum in Makati City.
Considered one of the most successful executives and entrepreneurs in Asia given his track record of building large enterprises from scratch after being acquired by larger entities, he said nowhere else in Asia has such high-quality human resources available, with the cost of doing business so affordable.
“If you were just [a] start-up in the United States, it would definitely cost 10 times what it does cost here,” he cited for instance. “To set up here is very quick. If you have the right experts and advisers with you, you can be up and running in 30 to 60 days.”
With such factors that create a welcoming environment that is conducive for doing business, Lalonde said there is no doubt foreign investments continue to pour in capital to the country over the last few years.
Data from the Bangko Sentral ng Pilipinas showed that foreign direct investments constantly registered net inflows, amounting to $1.3 billion in the first three months of 2013.
“I think the Philippines has historically been very attractive in the last 10 years. Actually, it became less attractive maybe because of the growth of Malaysia and Singapore, and some of the other Southeast Asian group. But right now, we’re seeing that the Philippines is actually coming back on the map as an investment opportunity,” he said.
Among the key sectors that will continue to benefit from foreign capital inflows, he said, are business-process outsourcing, tourism, manufacturing, health and wellness.
The Philippines keeps on dominating the voice sector of the BPO, while in the knowledge process outsourcing (KPO), it comes next to India.
“I think on voice, definitely the Philippines is No. 1. I don’t think anybody argues that anymore from cultural and resource perspectives. I think on the KPO, there’s still need to be more work done around that space to get into the higher value services, higher paying jobs and higher opportunities,” Lalonde said.
Since the real value proposition for the Philippines is the English proficiency of its people with a good accent, which he said is a lot better 10 years ago than today, support for the educational system is highly needed.
“The government really needs to focus on continuing to give decent levels of education for all people. It is not just the top 20 percent. You need to educate all levels of society,” he stressed.
Another area that has been benefited by foreign investments in the country is the manufacturing sector which, according to Shore Solutions’ top executive, China dominated for quite some time. But because of the improving labor situation here than it was two decades ago, he said it is now “shifting a little bit back for the Philippines again.”
Besides the BPO and manufacturing, Lalonde said tourism, health and wellness, and some other niche industries are also the core competitive sectors of the country that create interesting opportunity for investors.
While the Philippines continues to attract capitals from overseas to come in, he cited that there are still barriers that hinder the entry of foreign investments. These include restrictions to foreign ownership of land and property, plus the high cost of power and rental fees. “These are hard dynamics to still work with because cost of people is not the issue.”
In terms of security and political stability, Lalonde suggested that the current administration continue with its programs to foster good governance and to show the world that the Philippines is a safe country from a business perspective.
“I think sometimes our media and our politicians have to make sure they expound that to the outside world ‘coz I get many customers who are almost scared to come to Manila. And I used that analogy that it’s much scarier to go to some big cities in United States than it is to come to Manila,” the managing director of Shore Solutions stressed.
He commended the government for carefully managing the currency, interest rates and inflation. He reminded, however, if the exchange rate goes below P40, it would drive away investments.
BusinessMirror - PHL has best human resource pool in Asia ?Lalonde
