RP suffering from 'overdose' of Malaysian investments

RP suffering from 'overdose' of Malaysian investments

MANILA (AFP): Philippine Senate President Ernesto Maceda hailed the voiding of a Malaysian conglomerate's purchase of a historic Manila hotel, saying that the country already had "an overdose of Malaysian investments," the Business Daily newspaper reported yesterday.

"I'm a little bit uncomfortable with that many Malaysian investments here and it seems to me that after the U.S., after the Japanese... we have an overdose of Malaysian investments," the Business Daily newspaper quoted Maceda as saying.

He was referring to the Philippine Supreme Court's decision on Monday to void the sale of a 51 percent stake in the historic Manila Hotel to Renong Overseas Corp. Sdn. Bhd. of Malaysia and its order that the hotel be awarded to a local group led by influential publishing tycoon Emilio Yap.

The court invoked Philippine nationalism in its decision, saying that even though Renong outbid Yap's group in 1995, the Philippine constitution required giving preference to qualified Filipinos over foreigners.

The decision, the latest in a series of reversals or suspensions of winning bids won by foreign firms, was widely assailed by business analysts who said it would further scare foreign investors away from the Philippines.

The Philippine Star newspaper said in its Tuesday editorial that "for a nation posturing as Asia's newest (economic) tiger, too many negative signals are being sent to the investors ... it's as if rules are made in this country only to be broken."

The Malaya (Freedom) newspaper said in its editorial that "the courts should take seriously (the) suggestion that judiciary adopt... the US practice of self-restraint when dealing with economic or business issues."

The Manila Bulletin newspaper, owned by Yap, did not comment editorially on the decision but gave it extensive coverage with the victorious headline, "Supreme Court rules historic Manila Hotel to remain Filipino."

The Philippines has long lagged behind the rest of Southeast Asia in attracting foreign investment but has recently shown signs of improvement due to the government's efforts to liberalize the economy.