TRIBUNE: NOYNOY GETS COLD TREATMENT
MANILA, MAY 30, 2011 (TRIBUNE) It was clear that Noynoy came home empty handed from his recent trip to Thailand, where he supposedly met with the four biggest Thai corporations. What was clearly missing in his return report was a quoted investments figure.
In his past travels, the Palace would usually toss around figures of the supposed investments although most of the time these are mere commitments and are extrapolation of the cost of the projects that are exploring a possible location in the country.
More often than not, it is all propaganda, since so-called intent to invest, or even commitments from businessmen hardly ever translates to real investments.
The fact that foreign direct investments have dropped by 30 percent already shows the failure of Noynoy to get investors interested in the country.
The official Palace release said Noynoy had discussions with executives of Thailand's four biggest corporations that have existing investments in the country and indicated that the companies "raised some concerns."
Reading between the lines, that meant Thai companies are looking elsewhere for new projects and are just making sure that their current investments in the country do not fall to state confiscation or similar business catastrophes.
A good guess on these concerns should be what the German government has been raising recently with the government which is all about honoring business contracts.
There are already so many instances when contracts with the government signed during a previous administration are reviewed and changed if not rescinded altogether by a new administration.
A classic example during the Arroyo administration is the airport Terminal 3 contract that was unilaterally cut off and the project confiscated. Until now, the project remains in government hands and Noynoy is even pursuing the tack of his predecessor which is to pay a token amount for the expropriated project.
Noynoy's appointees at the Bases Conversion Development Authority (BCDA) have also rescinded a contract to operate the South Luzon Expressway (Slex) and is reviewing all other similar contracts signed during Arroyo's watch.
Noynoy himself, in his maiden State of the Nation Address, announced that he was unilaterally cancelling the Belgian firm's Laguna Lake dredging project.
Government contracts in general, in the Philippine setting, have a life span equivalent to the administration in power.
Such uncertainty in business undertakings is among the reasons the country remains a laggard in attracting investments.
More so with Noynoy who had earlier committed to provide businessmen with protection from regulatory risks but makes no serious move to end the dispute at the new airport terminal, which investors are apparently using as a gauge on the Aquino administration's commitment to support the business sector.
Thailand will just be another example of investors who have serious doubts on the state of business stability in the country.
Noynoy apparently failed to assure Thai businessmen that their investments are fully protected in the country or else the Palace would have had counted the billions of dollars that Thai companies will "invest" in the country.
Instead, the Palace needed to highlight trivial matters such as supposed discussions of Noynoy with Thai Prime Minister Abhisit Vejjajiva about climate change, piracy and human trafficking to cover up the bum trip.
Noynoy should realize that the same cold reception from the business sector awaits him anywhere in the world unless he acts fast enough to resolve the issues confronting the credibility of the government under his administration.
The inclination thus far of Noynoy is apportioning government positions and resources to reward political allies rather than taking concrete steps to address the lingering doubts of businessmen, both foreign and local, on the country.
Otherwise, from here on all efforts to woo investments will be a dud.
----------------------------------------------------------
Chief News Editor: Sol Jose Vanzi
© Copyright, 2011 by PHILIPPINE HEADLINE NEWS ONLINE
All rights reserved
----------------------------------------------------------
PHILIPPINE HEADLINE NEWS ONLINE [PHNO] WEBSITE
[Non-text portions of this message have been removed]
Follow us on Twitter: http://twitter.com/phnotweet
This is the PHILIPPINE HEADLINE NEWS ONLINE (PHNO) Mailing List.
To stop receiving our news items, please send a blank e-mail addressed to: phno-unsubscribe@yahoogroups.com
Please visit our homepage at: http://www.newsflash.org/
(c) Copyright 2009. All rights reserved.
-------------------------------------------------------------
