& BEAR 'NOYNOYING'
MANILA, MARCH 19,
2012 (INQUIRER) By Gil C. Cabacungan - External
trade survey rates the country 'least problematic'.
The Japanese are back and a euphoric President Benigno Aquino III
says he expects the wave of Japanese investments currently pouring into the
country to continue for some time.
After Japan's power, infrastructure and supply chain were laid waste by the
devastating earthquake, tsunami and nuclear accident exactly a year ago this
month, Japan's businessmen are looking to expand outside their country and are
taking a very strong interest in the Philippines, Mr. Aquino said.
The President's bullish expectations are supported by the country's
businessmen who believe that Japan's renewed interest in the Philippines will
pave the way for other foreign investors to follow.
"Japan has 50 nuclear reactors and of the 50, only three are still operating.
It's no joke to lose almost 50 nuclear plants and that is a major factor in
[businesses] moving some of their operations out of Japan and bringing them
here. I believe Japan will continue to be one of our biggest investors," Mr.
Aquino said in an interview.
The President is anchoring this rosy outlook on Japanese investments on last
year's data on foreign direct investments (FDI) which surged to P256.1 billion,
30.6 percent higher than the P196.1 billion registered in 2010. It was also the
highest since the P241.1 billion notched three administrations ago in 1996.
The National Statistics Coordination Board reported that Japan was the top
source of foreign capital pledges with a 30.2-percent share, ahead of the United
States (27.5 percent) and the Netherlands (11.1 percent).
Mr. Aquino noted that Japanese companies operating in the Philippines were
among the most enthusiastic endorsers of the country.
"For example, a manufacturer of (automotive) wire harnesses has induced cable
manufacturers (from Japan) to move their plants here because of the volume. I
think this is what's happening now not only for small industries but big ones
like steel manufacturing," said the President who hinted that a major steel
maker from Japan was keen to set up shop here.
He said the Philippines was already the fourth-largest shipbuilder in the
world after China, South Korea and Japan, and the establishment of a steel plant
in the country could push the Philippines higher in the rankings in this basic
sector.
The President said his administration's efforts to sell the
Philippines as an ideal foreign investment site had paid off with most Japanese
businessmen rating the country as having the most "hospitable" environment for
business expansion.
He cited a recent survey by Japan External Trade Organization (Jetro) among
Japanese-affiliated businesses in the Asia and Oceania regions.
"Their questions were on the negative side, like what were the problems they
(businessmen) encountered in recruiting labor, recruiting supervisory personnel,
land acquisition or rental. And in all of the business concerns, the Philippines
was practically rated as having the least problems for businessmen. The way to
look at that is that is a positive for us," said Mr. Aquino.
The Jetro survey, which was conducted from August to September 2011, covered
731 Japanese manufacturing and service firms with operations in the Philippines,
Indonesia, Vietnam, Burma (also known as Myanmar), India, Thailand, Malaysia and
China.
PH least problematic
In the survey, the Philippines had the least problems when it comes to
increasing financial costs (China and Malaysia were the worst), rising prices or
shortage of land or office (India and Vietnam were the worst), and skyrocketing
payroll costs (Thailand and Vietnam were the worst).
The Philippines was rated as having the least problems in terms of recruiting
general staff (Vietnam and Malaysia were the worst), recruiting executives
(Burma and Vietnam were the worst), low rate of employment retention (Vietnam
and Malaysia were the worst), problems in workers competency (Burma and Vietnam
were the worst), and difficulty in quality control (India and China were the
worst).
In terms of labor costs, the Philippines had the least problems in salary
base rate (Vietnam and India were the worst) although it ranked slightly higher
in terms of salaries for managers and engineers.
Trade Secretary Gregory Domingo said that the lingering effects of Japan's
triple disasters in 2011 were not the only reason driving Japanese investors to
the Philippines.
"It's our improved competitiveness as well in terms of labor cost and quality
of work force. A lot of Japanese investors are coming in, including the big ones
such as Brother and Canon, and there are a lot who are seriously looking right
now," said Domingo in a text message.
Domingo was one of the Cabinet members who was in Tokyo just a month before
the disaster struck in Japan on March 11, 2011. The Philippine officials were in
Japan for an investor roadshow aimed at highlighting the reforms being done
under the Aquino administration such as a commitment to cut bureaucratic red
tape and clamp down on corruption.
'VIP'
Domingo said the recent visit of the Keidanren (the Japan Business
Federation), considered the most influential of Japan's major economic
organizations, was proof of the strong level of interest in the Philippines.
"Its delegation consisted of the chairs and CEOs of the largest Japanese
conglomerates, there were about 20 of them. That level of participation has not
happened in a long time," he said.
Ramon del Rosario Jr., chair of the Makati Business Club, confirmed the
President's claim that the Philippines was "back on the radar screen of Japanese
investors."
"Just last Thursday, at a farewell lunch for the Mitsubishi country head,
Nobuya Ichiki, who is also a leader of the Japanese Chamber of Commerce in the
Philippines, [he] told us that the present focus of Japanese investors is
VIP—for Vietnam, Indonesia, and the Philippines," Del Rosario said in a text
message.
"This is our best shot at Japanese investments in our manufacturing sector
since we missed out in 1989 because of the tremendously destructive coup attempt
that year. But we need to get our act together and present the best investment
options, with Vietnam and Burma aggressively pursuing Japanese investments as
well," Del Rosario said.
Francis Chua, chair of the Philippine Chamber of Commerce and Industry, said
that the resurgence in Japanese investments was part of the growing trend of
companies exiting from China, which had sucked out most of the manufacturing
jobs in the Philippines more than a decade ago with the globalization of trade
and investments.
With labor costs shooting up in China, foreign investors are looking to
returning to the other countries that they abandoned like the Philippines, said
Chua.
"We're elated by the surge in Japanese investments but we should not lose
sight of getting other foreign investors like the Chinese who also want to
escape China's escalating labor costs," he said in a phone interview.
Not keen on tax perks
Unlike previous administrations, Mr. Aquino said he was not too keen about
making tax perks the main tool in attracting Japanese and other foreign
investors into the country as he had promised to end the government's deficit
spending.
"We're doing it differently now and we are attracting them to come here for
fundamental business reasons like quality labor and less graft and not because
we give the highest incentives," he said.
BISHOP TELLS PALACE TO SIMPLY GRIN AND BEAR
'NOYNOYING' By Philip C. Tubeza
[PHOTO - 'NOYNOYING IN SAIDI': A member
of the militant women group Gabriela in Saudi Arabia looks bored and detached as
she holds a 'noynoying' protest against oil price hike. INQUIRER.net/Migrante Middle East]
MANILA - Stating that the truth hurts, retired Archbishop Oscar
Cruz said Saturday Malacañang should not complain but should simply absorb the
message of the latest protest gimmick of militants: "noynoying."
Cruz, a known Aquino critic, said "noynoying"—a newly coined word that plays
on the President's nickname and is used to describe a passive protest act of
just lying down and doing nothing— was a jab at President Benigno Aquino's
supposedly "do nothing" leadership style which, he said, was "not altogether
false."
"The truth is painful. The new word could be annoying but it is not
altogether false," Cruz said in an interview.
[PHOTO - Youth protesters—looking bored and lazy—lie on the ground in a
latest protest gimmick called 'noynoying.' INQUIRER/MARIANNE
BERMUDEZ]
"The reality in the word is what makes it rather interesting and relevant.
Otherwise, it is not worth the ire or disgust of Malacañang," he added.
Cruz said "noynoying" was "another novel expression in line with KKK" or the
protest term for "kaibigan, kaklase, at kabarilan (friends, classmates, and
fellow gun enthusiasts)" coined by the President's critics to describe close
associates he appointed and retained in power despite controversies surrounding
them.
"Instead of becoming angry, Malacañang should instead get the message behind
the word and the gesture that goes with it," Cruz said.
Chief News Editor: Sol Jose Vanzi
© Copyright, 2012 by PHILIPPINE HEADLINE NEWS ONLINE
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rights reserved
PHILIPPINE
HEADLINE NEWS ONLINE [PHNO] WEBSITE
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