President Benigno Aquino III urged Chinese businessmen Friday to "balance the equation" by investing in the Philippines which he reiterated is now open for business.
In the past, commercial relations between the Philippines and China benefited more the Chinese than Filipinos, Aquino said in a speech at the Philippines-Eastern China Business Forum in Shanghai.
The Philippine President is on a five-day state visit to China.
Philippine foreign direct investments in China total $2.8 billion dollars, while Chinese investments in the Philippines total only to $500 million dollars, Aquino said.
“Now, we have come here to potentially balance the equation. China has the financial and technological capability to be among the major foreign direct investors in the Philippines," Aquino said.
“With your technology and cost-efficient machinery and equipment, China could very well be an even larger source of investments for the Philippines to boost our country’s agricultural production and processing capabilities, energy sourcing, and infrastructure projects," he added.
Chinese businessmen should explore investments in manufacturing, garments and textiles, and motor vehicles and automotives, as well as in tourism, according to the Philippine President.
“The opportunities are there; let us partner together to turn opportunities into reality," Aquino said.
Competitive incentives
Philippine economic managers can explain in detail the many competitive incentives the Aquino administration has opened to investors, he said. “Incentives that make investing in our country an even more viable option, given my government’s commitment to providing a level playing field to all investors," he added.
Aquino clarified that ensuring a level playing field requires undoing the mistakes of the past and, in some instances, means reviewing contracts entered into without careful consideration of due process.
The Aquino administration has stopped a number of projects after discovering that necessary processes were not followed and that laws were broken.
“We are holding accountable errant public officials who encouraged anomalous business deals: because we want to send the message that our government will neither tolerate nor take part in these kinds of practices," the President said.
He expressed hope that the reforms now in place do not raise doubts among Chinese businessmen who are contemplating on investing in the Philippines.
“Let me assure you that we must do these things now in order to create a more equitable business environment, where each contract signed and each project completed will stand firmly on the bedrock of integrity," he said.
There is now an assurance that every contract entered into by the government represents the Five “R’s": Right Project, Right Cost, Right Quality, Right People, and Right on Time, the President said.
“This is the only way to ensure that your projects will not be questioned by the public, or by succeeding administrations," he said.
Reliable workforce
During the forum’s question and answer portion, the President highlighted the benefits of investing in the Philippines and the availability of reliable workers.
“The greatest primary advantage of investing in the Philippines is the quality of our human work force. The labor force is one that is highly adapted, highly educated and with an increasing ability to be adaptable to any conditions in any country," the President said.
Trade Undersecretary Cristino Panlilio echoed the President’s observation saying the Filipino worker is one of the most sought after employees in the international arena.
In his presentation, Panlilio said the 35.92-million Filipino workforce had achieved a 92.3 percent literacy rate, 76 percent fluency in English, with 469,654 college graduates in the fields of engineering, business and medical and allied services.
The labor pool aside, Panlilio said the Philippines is strategically located in the region, with a robust telecom infrastructure, world-class economic zones with zero red-tape. These are the other reasons why the Philippines is a top-rate investment site, he added.
“There is a whole list of incentives for setting up in the Philippines and your idea of labor-intensive industries is in line with our own goal of job generation which is one of the promises we made to the people," President Aquino said.
After the forum, Aquino witnessed the signing ceremony between the chief executive officer of Chinese hotel chain Jinjiang Group and the Filipino-Chinese owner of Liwayway Marketing Corporation, makers of Oishi prawn crackers, details of which are not yet available as of this posting.
The President then went to the Hingham Pica die Hotel for a luncheon hosted by the Shanghai Mayor Han Zhen.
He also met with the Lien Thai Private Group and Hawkweed Business Group executives before visiting the site of Liwayway Marketing’s manufacturing plant in Shanghai. — VS
