ASEAN peers prod RP on ownership restrictions

August 26, 2010

ASEAN members are prodding the Philippines to ease limits on foreign investments to take advantage of increased inflows into the region this year, a senior trade official said.


All ten members of the Association of Southeast Asian Nations also committed to roll out joint promotions to lure investors and consult with the private sector to further realize plans to establish a regional production base, a statement released yesterday showed.

The prescriptions were discussed as officials gathered this week for the 42^nd ASEAN Economic Ministers meeting in Da Nang, Vietnam.

"If we’re going to get into a freer [market for] foreign direct investments (FDI), they want us to work out internally those constitutional barriers," Trade Undersecretary Cristino L. Panlilio said in a telephone interview on Tuesday after an ASEAN Investment Area Council meeting.

The Philippines bars full foreign ownership of several businesses such as media, utilities, and mining under Republic Act 7042 which in turn is based on limits cited in the Constitution. The law directs Malacañang to issue every year a "foreign investment negative list" which specifies how much of a stake a non-Filipino entity can have in a business depending on the industry.

This poses a hurdle to full implementation of the ASEAN Comprehensive Investment Agreement, signed in February 2009 to complement the bloc’s plans for a single market by 2015.
"They’re enjoining us to settle that," Mr. Panlilio said.

He went on to state that the Philippines had attracted just a minor share of FDI inflows. The Philippines has lured only 5.3% of the $36.803 billion in investments that has flowed into the region, according to United Nations data.

"It’s very, very weak. That’s a challenge for the Board of Investments," Mr. Panlilio said, referring to the Department of Trade and Industry-attached agency which he heads.

Moving forward, more FDI flows into the region are expected this year due to a pickup in the global economy, a joint statement released by ASEAN ministers showed.

"[We] anticipate higher foreign direct investment inflows into ASEAN in 2010 and beyond, after a downturn in 2008 and 2009 ASEAN’s share of total global FDI inflows increased to 3.6% in 2009, from 2.8% in 2008, despite the recent economic downturn," the ministers declared.
"This reflects well of the ASEAN region in terms of its ability to continue to attract a higher share of investment flows," they added.

"[And] to further attract FDI flows, [we] agreed to progress work to facilitate greater ASEAN investment flows through joint investment promotions, advancing work on best practices on investment and engaging the private sector in further consultations to obtain feedback on improving the ASEAN investment climate." (Business World Online)

The Philippines’ most livable, highly urbanized cities
August 24, 2010

Quality of living is a major criteria in coming up with this latest list of the most livable highly urbanized cities in the Philippines. Those who either lived or stayed in these cities can best describe how comfortable, worry-free and convenient to be residents. From security, peace and order, booming business activities to adequate healthcare and educational centers – all these are essential components to make a city a great place to live in.

1. Davao City
Who would ever want to live in a city where the monthly crime rate falls below one percent? Without batting an eyelash, Davao City deserves to be on top of this list. This most progressive city in Southern Philippines has been awarded the “Most Peaceful City in East and Southeast Asia for seven years and is home to the “Best Police Office in the Country” for six consecutive years. Going around Davao City even at night is very safe and I’ve personally experienced it. The city is also known to be typhoon-free all throughout the year and has an admirable city health office that offers free clinical and medical services to its less fortunate urban and rural residents. In terms of business, there is no doubt that Davao City is continuously booming. It is home to Mindanao’s largest SM Mall and will soon open Ayala Center’s first lifestyle mall in Mindanao. For four consecutive years, Davao City has also been recognized by Asiaweek as one of the 20 Best Cities in Asia.

2. Bacolod City
Known to be the country’s “City of Smiles”, Bacolod is always beaming with cheers of progress and peaceful living. Unlike other crowded highly urbanized cities, this premiere capital of Negros Occidental is proud for its clean and green surroundings and wide roads. The city’s residential and commercial zones are well-planned, making it the most organized urban planning model for local government units in the country. Bacolod has also made it to the Hall of Fame of the Cleanest and Greenest Highly Urbanized City.The city is home to two major shopping mall chains, SM and Robinsons, and has one of the most modern airports in the country today. With an upbeat local economy, the city became the region’s best performing city in economic development last year. It is also one of the fastest growing BPO and call center hubs in the country today. This is the reason why Bacolod is the second city in Visayas and Mindanao to have its own Starbucks, a visual peg of a progressive city.

3. Makati City
For most senior citizens, living in Makati is a utopian experience because of the VIP privileges accorded to them. Residents who are 60 years and above can watch free movies in any Makati cinemas, receive mid-year cash bonuses, get free cakes during their birthdays and golden wedding anniversaries as well as free vitamins and free out-of-town trips. Moreover, they are also exempted from paying individual income taxes and they enjoy special discounts in almost all business establishments around the city. This successful program for the elderly by the Makati City government has inspired other Metro Manila cities to do the same. As the country’s financial district, Makati is an attractive choice for comfortable cosmopolitan living by many expatriates and transient tourists. The city is home to five 5-star hotels and two popular world-class shopping malls.

4. Mandaluyong City
One of the cities in Metro Manila that remains diligent in ensuring security, peace and order is Mandaluyong City. During the past years, this strategic city right at the heart of the Metro has beefed up its local government security by putting up barangay outposts in almost every corner of the residential areas. Local police has also been establishing checkpoints in the city’s major roads and mobile cluster patrols are regularly roving the city all throughout the day. During the past months, the city enjoyed very low crime rate within its city center compared to other Metro Manila cities. Another remarkable feature of this “Tiger City” is its very convenient location. Being at the center of the metropolis, Mandaluyong City has easy access to Manila (through Kalentong or Sta. Mesa exits), Makati (through Makati-Mandaluyong Bridge), Quezon City and San Juan (through Brgy. Addition Hills) and Pasig (through Shaw Boulevard).

5. Cebu City
As the most progressive city in the South, Cebu City has become an alternate choice to those who want to veer away from the very congested Metro Manila life. As most residents say: “Cebu is like Manila minus the super heavy traffic and pollution.” As the Queen City of the South, Cebu has a good blend of history, culture and a booming economy. Amid its fast-paced economic progress, the city still exudes its rich cultural and historical heritage. It remains to be one of the country’s top business and tourism destinations in terms of the number of visitor arrivals. It has the second busiest airport in the country with regular international flights from South Korea, Hong Kong, Qatar and Singapore. (Manila Standard Today)

*08.26.2010