Philippines is Ripe with Investment Potential

[Aepsilons]

Despite perceived difficulties in doing business in the Philippines, officials of as many as 80 large Japanese enterprises will be arriving in the country in September to scout for investment opportunities in key sectors such as manufacturing, banking, energy and infrastructure.


Tetsuo Tomino, president of the Japanese Chamber of Commerce and Industry of the Philippines Inc. (JCCIPI), said two big business delegations were being organized by the Keidanren (Japanese business federation) and the Kansai Economic Federation (Kankeiren). Each group will bring in officials of 30 to 40 member-companies to the Philippines.

Tomino said the Kankeiren was comprised of companies coming from the Osaka region. The group, based on data from its website, has about 1,400 members.

The Keidanren, on the other hand, is the biggest federation of Japanese companies in Japan. As of March 31, the group’s members included 1,308 companies, 114 nationwide industrial associations and 47 regional economic organizations.

“Many big Japanese enterprises already have factories and offices in China. But with Chinese labor cost increasing, and as the political relationship between Japan and China is not so good, these companies are now looking to spread their manufacturing facilities or office functions to the Asean area,” Tomino explained.

“Of course most big enterprises already have offices in Singapore, Bangkok and Kuala Lumpur. Some also have in the Philippines but these manufacturers are [considering] to make their manufacturing facilities here to be bigger. Some want to expand, maybe double or triple the existing capacity. If that happens, jobs will also increase and they will hire more people. The image of the Philippines in Japan is becoming better so many managers are wanting to come here to see how the Philippines have changed,” he added.

According to Tomino, the Philippines has a number of strong points that would encourage more Japanese companies to consider setting up facilities here. He noted that the Philippines has a young population and an abundant English-proficient labor force.

Among the member-nations of the Association of Southeast Asian Nations, the Philippines is closest to Japan.



2 big Japan investment missions coming | Inquirer Business

@JayMandan , @Cossack25A1 , @Zero_wing , @Pinoy , @Filipino

 

[Cossack25A1]

This would prove a challenge to the current administration as to whether they would remove or lessen the restrictions or not so that more investors will experience no difficulties in investing here in the Philippines as the economic protectionist clause in the constitution is the only thing that makes investing here in the Philippines difficult.

 

[Zero_wing]

Despite perceived difficulties in doing business in the Philippines, officials of as many as 80 large Japanese enterprises will be arriving in the country in September to scout for investment opportunities in key sectors such as manufacturing, banking, energy and infrastructure.


Tetsuo Tomino, president of the Japanese Chamber of Commerce and Industry of the Philippines Inc. (JCCIPI), said two big business delegations were being organized by the Keidanren (Japanese business federation) and the Kansai Economic Federation (Kankeiren). Each group will bring in officials of 30 to 40 member-companies to the Philippines.

Tomino said the Kankeiren was comprised of companies coming from the Osaka region. The group, based on data from its website, has about 1,400 members.

The Keidanren, on the other hand, is the biggest federation of Japanese companies in Japan. As of March 31, the group’s members included 1,308 companies, 114 nationwide industrial associations and 47 regional economic organizations.

“Many big Japanese enterprises already have factories and offices in China. But with Chinese labor cost increasing, and as the political relationship between Japan and China is not so good, these companies are now looking to spread their manufacturing facilities or office functions to the Asean area,” Tomino explained.

“Of course most big enterprises already have offices in Singapore, Bangkok and Kuala Lumpur. Some also have in the Philippines but these manufacturers are [considering] to make their manufacturing facilities here to be bigger. Some want to expand, maybe double or triple the existing capacity. If that happens, jobs will also increase and they will hire more people. The image of the Philippines in Japan is becoming better so many managers are wanting to come here to see how the Philippines have changed,” he added.

According to Tomino, the Philippines has a number of strong points that would encourage more Japanese companies to consider setting up facilities here. He noted that the Philippines has a young population and an abundant English-proficient labor force.

Among the member-nations of the Association of Southeast Asian Nations, the Philippines is closest to Japan.



2 big Japan investment missions coming | Inquirer Business

@JayMandan , @Cossack25A1 , @Zero_wing , @Pinoy , @Filipino

Its good but please invest in the power sector first

 

[NarThoD]

Its good but please invest in the power sector first

do philippines have nuclear reactor?

 

[Zero_wing]

Yes the bataan nuclear power plant but sadly its been shot down due to political stupidity of majority of the politicos led by chinese regime paid political agitators the so called makabayan party alliance (Makabayad) (paid) allaiance of local maoist $cum again if any head way is to made with the Philippine economy the power sector should be first followed by the infastructure both new and existing infastructures.

 

[NarThoD]

Yes the bataan nuclear power plant but sadly its been shot down due to political stupidity of majority of the politicos led by chinese regime paid political agitators the so called makabayan party alliance (Makabayad) (paid) allaiance of local maoist $cum again if any head way is to made with the Philippine economy the power sector should be first followed by the infastructure both new and existing infastructures.

too bad, a nuclear power plant could supply power to entire luzon or mindanao island. Indonesia are also planning to build nuclear reactor in 2015 on Sulawesi Island.

 

[Cossack25A1]

too bad, a nuclear power plant could supply power to entire luzon or mindanao island. Indonesia are also planning to build nuclear reactor in 2015 on Sulawesi Island.

Well fear-mongering and politics shot down any attempts to re-activate it, using Chernobyl and later Fukushima as "excuse" on why not to open Bataan nuke plant.

 

[Zero_wing]

too bad, a nuclear power plant could supply power to entire luzon or mindanao island. Indonesia are also planning to build nuclear reactor in 2015 on Sulawesi Island.

Ya bataan was to design to supply the luzon grid but the maoist and the paid people got their way

Well fear-mongering and politics shot down any attempts to re-activate it, using Chernobyl and later Fukushima as "excuse" on why not to open Bataan nuke plant.

Thats one of their reasons but the truth is they just dont want the Philippines to be better because they cant take over

 

[Nike]

energy sector huh, first you need to revise the lower price set of electricity prices if it's too lower no one will invest in your country. Second, the regulations and law, they need local government commitment too backing their works and investment. Third, infrastructure, more easier access to end customer will give them more incentive.

 

[Cossack25A1]

energy sector huh, first you need to revise the lower price set of electricity prices if it's too lower no one will invest in your country. Second, the regulations and law, they need local government commitment too backing their works and investment. Third, infrastructure, more easier access to end customer will give them more incentive.

This would have been possible, sadly, the lobbying of the oligrachs is strong specially since they own the power distributing franchises and without any competition, they are free to rise the power rates as they please.

This made the Philippines having the highest power rates in Asia but having a very lousy service. Same goes to the internet service providers - you pay $23 every month for an internet service that is only 3.6 MBPS.

 

[Zero_wing]

energy sector huh, first you need to revise the lower price set of electricity prices if it's too lower no one will invest in your country. Second, the regulations and law, they need local government commitment too backing their works and investment. Third, infrastructure, more easier access to end customer will give them more incentive.

Love too but we need more Power plants to do it so far our power grid is old it needs to upgraded since we made a lot of infastructures that need more power and our old power grid simply does not have the capacity to handle it all and that just in Luzon and Visayas. Mindanao is other problem they just lack power plants from the start. So we need more big power plants right now the Government is investing on green energy and green sources of power but we still need more power plants its going to take decades to improve our power problem good thing the government and the private sector is starting so must invite more foriegn (no more chinese) Investors to invest in the power sector.

 

[Nike]

Love too but we need more Power plants to do it so far our power grid is old it needs to upgraded since we made a lot of infastructures that need more power and our old power grid simply does not have the capacity to handle it all and that just in Luzon and Visayas. Mindanao is other problem they just lack power plants from the start. So we need more big power plants right now the Government is investing on green energy and green sources of power but we still need more power plants its going to take decades to improve our power problem good thing the government and the private sector is starting so must invite more foriegn (no more chinese) Investors to invest in the power sector.

I don't think a move to alienate China any further will working in your country favor in long term, you should differentiate between Pride and Economic Needs. There is China investor is has been known for their investment in Energy sector worldwide, something the Philippine needed the most. Your government is too, has been known institutionally and maybe deliberately weakened this sector severely in favor of their own interest.

"Despite the moves to deregulate the country’s energy sector through the passage of the Electric Power Industry Reform Act of 2001 (EPIRA), there remains a cap on foreign ownership and cross ownership, and the congressional franchise requirement on energy transmission and distribution. This casts doubt not only on the effectiveness of EPIRA and but also on the capability Energy Regulatory Board (ERB) to regulate the market and apprehend erring agents. Already a large private electricity distributor has been accused of favoring allied companies essentially subsidizing costly and inefficient firms with consumers ending up paying higher energy prices (SEPO 2009). "


Hmm i will trying to sum the challenges about investment in Phil, as far as i know

- Foreign investors are not permitted to acquire private land in the Philippines.
- Under the Foreign Investments Act of 1991 (Republic Act No. 7042), the term “Philippine national” includes a corporation organized under the laws of the Philippines of which at least 60% of the capital stock outstanding and entitled to vote is owned and held by citizens of the Philippines.
- Lack of transparency in policies and regulations concerning investment (institutional problems)
- Complicated and/or delayed procedures with respect to investment-related regulations (implementation problems)
- Insufficient protection of intellectual property rights
- Labor regulations and related practices excessively favorable to workers
- Underdeveloped infrastructure, shortages of human resources, and insufficient investment
- Restricted competition and price controls

 

[Cossack25A1]

I don't think a move to alienate China any further will working in your country favor in long term, you should differentiate between Pride and Economic Needs. There is China investor is has been known for their investment in Energy sector worldwide, something the Philippine needed the most. Your government is too, has been known institutionally and maybe deliberately weakened this sector severely in favor of their own interest.

"Despite the moves to deregulate the country’s energy sector through the passage of the Electric Power Industry Reform Act of 2001 (EPIRA), there remains a cap on foreign ownership and cross ownership, and the congressional franchise requirement on energy transmission and distribution. This casts doubt not only on the effectiveness of EPIRA and but also on the capability Energy Regulatory Board (ERB) to regulate the market and apprehend erring agents. Already a large private electricity distributor has been accused of favoring allied companies essentially subsidizing costly and inefficient firms with consumers ending up paying higher energy prices (SEPO 2009). "


Hmm i will trying to sum the challenges about investment in Phil, as far as i know

- Foreign investors are not permitted to acquire private land in the Philippines.
- Under the Foreign Investments Act of 1991 (Republic Act No. 7042), the term “Philippine national” includes a corporation organized under the laws of the Philippines of which at least 60% of the capital stock outstanding and entitled to vote is owned and held by citizens of the Philippines.
- Lack of transparency in policies and regulations concerning investment (institutional problems)
- Complicated and/or delayed procedures with respect to investment-related regulations (implementation problems)
- Insufficient protection of intellectual property rights
- Labor regulations and related practices excessively favorable to workers
- Underdeveloped infrastructure, shortages of human resources, and insufficient investment
- Restricted competition and price controls

That is the issue we have and the government has no plans to change it due to the oligarch grip on national interests; to summarize it: too much bureaucracy, corruption and economic restrictions hinder the development.

 

[eazzy]

^ Revolution.

 

[Zero_wing]

I don't think a move to alienate China any further will working in your country favor in long term, you should differentiate between Pride and Economic Needs. There is China investor is has been known for their investment in Energy sector worldwide, something the Philippine needed the most. Your government is too, has been known institutionally and maybe deliberately weakened this sector severely in favor of their own interest.

"Despite the moves to deregulate the country’s energy sector through the passage of the Electric Power Industry Reform Act of 2001 (EPIRA), there remains a cap on foreign ownership and cross ownership, and the congressional franchise requirement on energy transmission and distribution. This casts doubt not only on the effectiveness of EPIRA and but also on the capability Energy Regulatory Board (ERB) to regulate the market and apprehend erring agents. Already a large private electricity distributor has been accused of favoring allied companies essentially subsidizing costly and inefficient firms with consumers ending up paying higher energy prices (SEPO 2009). "


Hmm i will trying to sum the challenges about investment in Phil, as far as i know

- Foreign investors are not permitted to acquire private land in the Philippines.
- Under the Foreign Investments Act of 1991 (Republic Act No. 7042), the term “Philippine national” includes a corporation organized under the laws of the Philippines of which at least 60% of the capital stock outstanding and entitled to vote is owned and held by citizens of the Philippines.
- Lack of transparency in policies and regulations concerning investment (institutional problems)
- Complicated and/or delayed procedures with respect to investment-related regulations (implementation problems)
- Insufficient protection of intellectual property rights
- Labor regulations and related practices excessively favorable to workers
- Underdeveloped infrastructure, shortages of human resources, and insufficient investment
- Restricted competition and price controls

Well sir good opnion but sir china is only one of our investors if America and Japan and Korea pulls out of the country thats a problem but if you look at it we have more investment in terms of 1 billion in china than china meer 500 million invest here and due to the arrogance of chinese imperialism and the chinese government and its nazi party maoist party of china it will be bad for the Philippines to have any economic connections with china they still hurt our economy and giving them any power over our economy will just be bad in the long run heck china has been doing it ever since formal diplomatic relations open they have benefit from us more than we benefit from them in fact our whole manufacturing sector was crippled and thats legal dont get me started on the illegal things china has been doing here and around the world.

And beside i would rader have the Japanese and Koreans here their energy technology is one of the best and also more trade with the west more the Europeans than America to be blunt America is a bit unfair to us since so we better off with Korea, Japan, And the European Union than china.