MANILA, Philippines - The huge potential of the country’s infrastructure sector will remain one of the biggest draws for investors next year, a high-ranking financial executive said.
Former Finance Secretary Jose Isidro N. Camacho, who is now chairman of Sun Life of Canada (Philippines) Inc. and managing director and vice chairman of Credit Suisse Asia Pacific, said domestic and foreign players will likely step up investments in power, transport systems, utilities and other infrastructure-related areas.
“There is a lot of demand in the infrastructure and infra-related sector and so far, there is a lot on the table for investors,” he said.
He added that there has also been a lot of interest in “green technology” in infrastructure and property development.
He cited the recent spate of merger and acquisition bids and heavy fund-raising activities of big corporate players such as San Miguel Corp., PLDT and Metro Pacific, Ayala Corp., Ashmore Group, Aboitiz Group, SM Group and JG Summit Holdings specifically involving infrastructure projects.
At the same time, Camacho said these activities are igniting the regional and domestic capital markets as domestic firms and foreign players tap into the fund market for expansion.
He said the regional capital markets have been establishing itself as an alternative source of funding to support longer-term investments, as the global economy emerges from recession.
“There is always an appetite for mergers and acquisitions in the region,” he added.
Camacho led the groundbreaking last week of the new P2-billion Sun Life Financial-Philippines building at the Bonifacio Global City. The 14-storey structure was designed in accordance with requirements of LEED (Leadership in Energy and Environment Design for Core and Shell Development), an internationally-recognized green building certification system developed by the US Green Building Council.
Sun Life and its various subsidiaries, including Customer Care Center/Sun Link, a dedicated call center, will occupy 50 percent of the building while the remaining half will be leased out.
Sun Life Financial Asia regional head Stephan Rajotte said the Canadian insurance giant is aggressively expanding in Philippines as it aims to be the leading insurer within the next five years as it openis more branches, customer centers, sales and business offices.