EU investment in RP can go up but changes needed
EU investment in RP can go up but changes needed
MANILA (AFP): European Union (EU) investment in the
Philippines is ready to shoot up but measures are needed to
improve the business environment, business leaders said in
presentation papers released Saturday.
The Philippines must continue to liberalize trade, cut
bureaucracy, become more competitive and promote more awareness
between the Philippines and Europe, the businessmen and officials
said in the papers which came out of a conference earlier last
week.
"The trade and investment relations are good but there is
definitely room for improvement," Henry Schumacher, executive
vice-president of the European Chamber of Commerce of the
Philippines said in his presentation.
Cielito Habito, former economic planning secretary, said EU
investment in the Philippines rose from 1.6 percent of total
foreign investment in 1990 to 17.4 percent in 1998.
However the EU still only has one-fifth of total foreign
investments in the Philippines, Habito said in his paper.
The Philippines has weathered the Asian currency crisis better
than its neighbors and can boast of "superior human resources" in
such areas as information technology, health care, education and
training, Habito said.
Schumacher added the Philippines' democratic government, a
free press, liberalizing trade and investment policies made the
country competitive as an investment site compared to other Asian
countries.
But he warned a recent failed attempt to impose controls on
petrochemical imports had raised fears protectionism was rising
again.
Infrastructure, particularly in transportation, was also
reaching its limits, he said.
Yet potential investors in infrastructure projects were
blocked by concerns over chronic right-of-way problems and court
orders blocking contractual obligations, he added.
A bill to open the retail industry to foreign investment has
been slow in making progress while a tax reform program that was
suppose to "level the playing field ... burdened business more."
Schumacher added that "awareness of business opportunities in
the Philippines has to be raised in Europe" which still had
largely overlooked the country.
Yves Gazzo, ambassador of the European Commission, said public
governance and flexibility in the labor market also needed to be
improved to attract European investment.
Gazzo said future cooperation between the EU and the
Philippines should focus on providing support to economic policy
reforms that seek to address those issues.
Trade and Industry Undersecretary Melito Salazar said that
many of these issues were being addressed.