Why is there little investments into the Philippines despite its unique stregnths and resources?
October 3rd, 2008 | by admin |Ilustrado ni Rizal asked:
Why is there little investments into the Philippines despite its unique stregnths and resources?
Why is there little investments into the Philippines despite its unique stregnths and resources?
Look at Malaysia even vietnam is beating us in FDI inflows.
Why is this so, when geographicaly we are at the gateway of east and south east asia we also serve as a bridge to the Americas.
We have a liberal economy, english proficiency, young population and high education rate.
Since we are smack in the middle of 4 economically dynamic regions, we have a diverse and versatile culture and posses high quality resources (Natural, Man-power and Intellectual) Why then do we pale in comparison to the rest of our kin?
Where did we go wrong? What happened?
indonesia is more corrupt than the philippines. yet they recieve more FDI’s too.
11 Responses to “Why is there little investments into the Philippines despite its unique stregnths and resources?”
By Zarathustra on Oct 4, 2008 | Reply
THe Philippines is not kind to forighn investors. The government is widely known for being corupt and there are few vehicles to trully protect investment. Unions are rampant and though English is spoken widely, the quality of English is poor. Workers are not as productive as other countries
By daluyong00 on Oct 6, 2008 | Reply
well we just made the mistake of placing corrupt officials to lead the country
5 times in a row
that’s all
By BearyKyut on Oct 9, 2008 | Reply
No. 1 is corruption. have to make lagay here and there i.e. customs , red tape, bureaucracy and a lot of funny administration fees n processing fees. No transparency at all.
2nd, service is not that efficient. Too slow before service is delivered.
3rd absenteeism of employees, too many holidays. This can disrupt businesses. In my location, medical certificates must be certified by company doctor to authenticate “sick leave.”
4th too much strikes. also disruptive in businesses. Also,media had a part of portraying our country in bad light. They always show those unions and rallies scaring investors away
Although we have young population and good english proficiency, the government is a big problem. its too soft on security matters and the mentioned reasons are hindrance to our economy.
By jgykyle on Oct 12, 2008 | Reply
corruption
bribery
unsafe
By pharaoh_102 on Oct 14, 2008 | Reply
simply because they are afraid of the higher wages here, and the threat of unions and other militant organization against them.
Another is proximity to target market, they will incur less cost in transport and the range of potential consumers are just “a stone throw” away. Lastly, it’s the cheaper direct labor cost effect on the commodity there compared to us, also the source of materials from neighboring nation will cost lesser.
By Evocatus on Oct 14, 2008 | Reply
I’d like to add lack of punctuality.
By Aref H4 on Oct 17, 2008 | Reply
Perhaps, a more basic question would be to ask, “Why do we equate the development of the country to the amount of inflow of foreign investments?” The premise of your question ties down all answers to a perpetual dependence on external sources for this sovereign nation of ours to be considered prospering. And then again, perhaps you would count “nationalism” as one of the hindrances for economic growth, and lay praises to the altar of “globalization”?
By oneiloilojeepney on Oct 20, 2008 | Reply
The Philippine constitution is not “foreigner friendly”.
We cannot own any more than 40% of a corperation and are not allowed to own property. We are not allowed to own businesses. With all the cooruption and payoff’s going on the price of doing business here in the Philippines is way too high and way too risky.
It is however a great place to retire because of the low cost of living here.
By MAGpie on Oct 22, 2008 | Reply
in addition to all of the above:
high cost of labor.
labor unions being politicized.
By MAS on Oct 25, 2008 | Reply
Malaysia started to pick up FDIs during the early 90s when big companies started globalization. At that time Philippines was the best destination because of its English speaking labour. However, the Coup led by Honasan made the investors look for alternatives. And I wonder why people vote Honasan as a Senator?
Not too long ago, the International Community was trying to help in that disaster in Visayas. What did the local politicians do? They try to stage a protest to bring the Government down.
Also, Malaysia has a Press that is suppressed by the Government. I was a tourist in Malaysia and was robbed at knife point in Kuala Lumpur few meters away from a Police Station. That did not go to even the local media. In the Philippines, the press would sensationalize that issue sending a negative image for your country. Personally, I think the Philippine Press is so abused.
Corruption? I believe Malaysia has its share. I remember the police and immigration officials were extorting money from foreign workers and even locals. Theirs is worst than the Philippines at that time.
Where did we go wrong? I think most Filipinos don’t have a national pride. Ask the Indons, and they are proud of being Indons even if they are poor – poorer than Filipinos. Ask most Latin Americans, they do the same thing. Malaysians proudly display their nation’s flag in every houses, every churches, almost everywhere you go. Can you see Philippine flags in Manila? I see more Philippine flags in Filipino houses in Toronto than in Manila.
Again, it’s national pride. That hinders the Philippines from reaching its potential.
By annabelle p on Oct 28, 2008 | Reply
Labor is cheap in some parts of Asia which is the foremost reason why foreign investors prefer to put up their manufacturing businesses in these places. Second, the high rate of taxes that our government levies on businesses. Third, laxity in our security. It’s a great turn-off. And lastly, not enough incentives to foreign investors to entice them to do business in our country.