US businessmen upbeat on RP’s economic prospects

A group of top US businessmen and executives are optimistic on the country’s economic prospects under the Arroyo administration.

However, the visiting US businessmen urged the new government to undertake a few major economic reforms and measures before they make concrete moves to increase their investments in the Philippines.

The US-ASEAN Business Council ended yesterday a three-day mission by senior executives of 30 major US companies.

According to Ernest Bower, president of the US-ASEAN Business Council, there are about 400 US companies doing business in the Philippines and the ASEAN.

The 30 participants in the mission, Bower pointed out, represent some $10 billion worth of investments in the Philippines alone and employs about 75,000 workers.

The mission, Bower said, visited the country to assess the business environment following the change in government.

Following talks with President Arroyo and her various Cabinet secretaries, Bower noted that the new government has an excellent team and has an economic plan that should be implemented.

"If the economic plan is implemented, the Philippines would see the return of foreign direct investments," he said.

However, Bower noted that because of the forthcoming elections and the time needed to implement the economic plan, actual plans to invest by US companies would not be made until late summer or early fall this year.

The major concerns of the US businessmen, he said, include the passage of the power reform bill and the omnibus investment bill. "US businessmen would also like the Philippine government to enhance agricultural productivity and rural development," Bower stressed, adding that others essentials are building a telecommunications infrastructure and a world-class customs regime.

US businessmen, he continued, would also like to see the Philippines to make good on its promise to implement the ASEAN free trade area and to take more concerted action on anti-piracy measures.

Lastly, Bower said, US businessmen want the government to be transparent in dealing with corruption.

He lamented the fact that the Philippines and ASEAN are now getting less foreign direct investments.

Whereas in the past the Philippines and ASEAN attracted about 60 percent of FDIs, that ratio has now shifted in favor or China.

The Philippines and ASEAN, Bower said, should therefore try to fastrack the implementation of AFTA and ensure a 500 million market which would attract investors.

Likewise, Bower elaborated, investors would also like to be assured that the power situation in the country would be stable and that telecommunications facilities are up to international standards. – Marianne Go