Cebu's competency ranking tumbles due to lack of infra

Cebu must consider putting in investments on major infrastructure to revive its vibrancy, as it is no longer considered as one of the top five most competitive metro cities in the country.

This was tackled during the Midyear Economic briefing yesterday conducted by economist Cayetano W. Paderanga Jr.. The latest Asian Institute of Management (AIM) survey was bared showing that Cebu was not among the five most competitive metro cities in the country in 2005.

Cebu ranked last of 12 metro cities in infrastructure, although it is ranked first of 12 cities in linkages and accessibility.

Paderanga said there must be collaboration between the private sector and the government in starting to implement large investments in fixing infrastructure, as this has brought down Cebu's competitiveness ranking.

He said Cebu must have grown too fast in the last few years, that it was not able to prepare its infrastructure layout thus resulting to major road congestion, water shortage, as well as higher power cost.

Top five most competitive metro cities in the country include; Davao, Las Piñas, Makati, Marikina, and Muntinlupa.

He suggested that if the government cannot afford to fund the fixing of the needed infrastructure at the soonest possible time, the private sector can help out.

According to Paderanga, the water shortage should be given immediate and serious attention as it signals negative impressions to the investing community.

The AIM survey tapped the businessmen's impression on City Competitiveness in the Philippines.

Because Cebu or the Central Visayas is relatively growing faster, among few other regions in the country, it must be complemented with improved infrastructure developments.

In 2005, Central Visayas grew by six percent, a little bit slower than the 6.9 percent growth posted in 2004.

On the other hand, based on the Institute for Development and Econometric Analysis, Inc. (IDEA) projection, Paderanga said the economic prospect in the Philippines is getting better, although it is still on the low side.

Gross National Products (GNP) is seen to grow between 4.5 to 5.1 percent level this year, compared to last year's actual growth of 5.6 percent.

"The oil price movement will continue to haunt us, but we would like to see pleasant surprise," he said.

Although, the political issues in Middle East, Iran, North Korea, is seen not to stabilize in the short term, he said fuel price is expected to stay close to where it is now, however, he warned that possibility of fuel reaching to US$80 per barrel can not be discounted.

Further jack up of oil price in the next few months would threaten the rather improving prospects of inflation rate and export market in the next two quarters, he said.

He said in order for the Philippines to insist good growth figure amid external problems like fuel prices, it has to work on doubling the growth of investments at least 15 percent.

"Investment growth in the country has been very low, it should grow at a double digit figure," he said.

He said the OFW (Overseas Foreign Workers) remittances has largely helped the country's economic performance, and bring about better prospects, as increased remittances coursed through the banking sector is expected.

In fact, in the last two years, per OFW remittance is calculated at US$150 to US$200 every two weeks, this amount has increased compared to past years, as the Philippines is no longer sending domestic helpers, but exporting large number of professionals who are paid handsomely in order countries.