US investor confidence PHL ‘very high’, Filipino diplomat says

WASHINGTON —Investor confidence on the Philippines is “very high” among American businessmen as the Duterte administration pursues business-friendly reforms, a senior Philippine official said Thursday.

Although some challenges in doing business in the country exist, Jose Victor Chan-Gonzaga, economic affairs minister at the Philippine Embassy, said American investors remain bullish on the economy and still see the Philippines as an attractive investment site.

“When President Duterte unveiled his choices for the senior economic positions, there was a huge sigh of relief in Washington because these are people they know. They are confident, with integrity and that has been reinforced by their visits in the course of two to three years then interacting with the US business community,” Chan-Gonzaga said.

The Philippine government, he said, was able to assure the US business community and their counterparts in the US government “about the competence of the economic team and their commitment and dedication to alleviate poverty and continuing the good economic story of the Philippines.”

“We have not seen any lack of commitment on the part of the US government and business community on how they can be of help to the Philippines,” Chan-Gonzaga said, adding some concerns raised by US investors “doesn’t detract at all from their confidence in the economy.”

In a teleconference with Filipino journalists, John Goyer, executive director for Southeast Asia of the US Chamber of Commerce, said they have noted the efforts of the Philippines to further improve its business climate.

Goyer cited the World Bank’s annual Doing Business Report wherein the Philippines jumped 29 notches to 95th this year from the previous 124.

“I think that demonstrates that you see an ongoing effort in the Philippines to improve the business climate, improve the investment environment and so I think that countries are paying attention and that there are business opportunities in that market for sure,” Goyer added.

The Philippines, he said, is also being considered a relocation site for its companies operating in China amid the ongoing trade war between Washington and Beijing.

The US remains the top investor in the Philippines with investments in the sectors of business process outsourcing (BPO), agriculture and high-tech manufacturing.

Despite the high level of interest in the country, the Center for Strategic and International Studies (CSIS) said the Philippines should address constitutional restrictions to foreign ownership, restrictive regulations on building permits and foreign investment approvals, rising domestic interest rates, and bureaucracy.

The quality of infrastructure, including poor transport networks, unreliable energy sources and spotty internet access likewise “hinders economic productivity and social mobility,” it said in its report released to Filipino journalists.

“There might be medium-term goals that the Philippines has to undertake. Infrastructure development doesn’t happen overnight,” CSIS Senior Fellow Romina Bandura told reporters.

US-Philippines Society president John Maisto said economic barriers, like foreign ownership limit of the Constitution, democracy issues, and tax and incentives must be addressed as it faces stiff competition from other countries in the Southeast Asian region that offer better incentives.

“We always tell investors look at the growth factor, look at the dependability of the Philippine work population from all levels, look at the English language advantages,” Maisto said. —NB, GMA News