Wednesday, April 18, 2007 Absence of incentives to drive investors away, biz leader warns
CEBU'S booming business climate continues to be a magnet for foreign investors but an official of a business group said the government’s lack of stable and incentive plan might drive investors to other cities and countries instead.
Filipino-Chinese Chamber of Commerce and Industry (FCCCI) president Filomeno Lim said with the Philippines’ good indicators of economic growth now being felt among business players, it is “high time” for the National Government to step up and address problems on high wages, electricity cost and the inability of foreigners to acquire Philippine lands.
“If the government can provide good investment incentives for foreign investors, I do not see a reason why they are not interested to do business in the Philippines,” Lim said.
He said the show of interest among Chinese investors in Cebu is a “good” sign for possible developments in agriculture, mining, automotive, power and water.
Interest
Earlier, Chinese investors and government leaders from Changchun City in Jilin, China have expressed interest in Cebu’s automotive industry.
On the other hand, China-based Share Blossoms Inc., in a joint venture with Cebu Ore Mining and Mineral Resources Corp., said it plans to develop the copper mines in Ming-lanilla town, Talisay City and in Barangays Talamban, Mabini and Kalunasan in Cebu City.
Ownership
However, Lim fears the issue on land ownership by foreigners will hinder them from long-term investments.
Should the government “do something” on these problems, Lim said the Philippines will seize a huge chunk of foreign direct investments especially with China’s huge economic boom.
“China’s labor will eventually go up and so will their standard of living. When this happens, other investors will look for other countries because China will now be expensive (for investors),” Lim said.
Destinations
India, Vietnam and the Philippines, may be prospective business destinations in Asia.
Lim told Sun.Star Cebu that the country needs foreign investors who are willing to put up facilities, like factories or offices that will signify their confidence in the Philippine economy.
He also said foreign direct investments will drum up growth in the export sector as well as tourism and employment. (MMM)
