GMA back from Davos, says foreign investors upbeat on RP

President Arroyo returned from Switzerland yesterday, visibly tired but elated by the prospect of bigger investments from global business groups and individuals including Britain’s Prince Andrew who have expressed renewed confidence in the Philippine economy.

Mrs. Arroyo told reporters on her return flight to Manila from Zurich on Philippine Airlines Flight PR 001 that a leading Indian conglomerate plans to invest in the country’s deregulated oil industry while others are interested in the power sector.

The President met on different occasions with the businessmen on the sidelines of the annual meeting of the World Economic Forum in Davos sponsored by the investors themselves. Mrs. Arroyo said Hans Schwab of the WEF was impressed with the "quality" of the businessmen who met with her.

She said Prakash Hinduja, chairman of the Indian conglomerate Hinduja Group and AMAS Bank, also wanted to expand his company’s investment in the business process outsourcing industry by buying two call centers in the Philippines.

"They are very upbeat," she said, adding the Indian firm would soon be making representations to the Philippines to explore investments in other areas including agricultural transportation and logistics.

A Swiss company, Societe Internacional des Produits Amon (SICPA), had also announced plans to expand investments in the Philippines by providing technology for tax enhancement and for curbing counterfeiting and smuggling.

The President also met with major Philippine investors Kenneth Tuchman, chairman and CEO of Teletech, and Craig Barret, chairman of computing products firm Intel Corp. Mrs. Arroyo said Teletech is eyeing investments in the tourism sector.

She said the Duke of York, Prince Andrew, was interested in Mirant but she advised him to consider other privatization projects because a Japanese firm had already bought the power firm.

Mrs. Arroyo said she assured the businessmen she met in Davos that the government would institute more power reforms because the high power rates in the Philippines had always been a concern among prospective investors.

She advised them to take advantage of the subsidies local governments extend to companies that put up businesses in their jurisdictions.

Trade Secretary Peter Favila, who accompanied the President to the WEF, said the business leaders were impressed with the President’s handling of the economy despite the political problems she had to deal with.

"They said they could understand the political structure in the country and were glad that economic reforms were still instituted by the President," Favila said.

Mrs. Arroyo said she talked with business leaders about her administration’s fiscal reforms and other pro-business initiatives to assure them that businesses would thrive in the country.

At an earlier dinner with international business leaders, Mrs. Arroyo invited them to invest more in the Philippines, particularly in infrastructure under the country’s Medium Term Philippine Development Plan.

"Vast opportunities exist, given the requirements of the Philippine Medium Term Investment Program, and these should be taken advantage of by the private sector," the President said.

Top executives from 20 leading global companies responded warmly to Mrs. Arroyo’s invitation. The companies were involved mostly in energy development, banking, finance, information technology and infrastructure.

"Today, we honor a great President and the achievements of her nation. We have gathered to manifest heightened business interest and optimism in the Philippines," Maurice Amon, co-executive chairman of SICPA, said.

"SICPA takes pride in being a partner of the Philippine government for over 28 years and we intend to further deepen that relationship through expanded investments in the Philippines," Amon said.

Aside from SICPA, the other global institutions at the meeting were Citibank N.A., Deutsche Bank, Saudi Arabian General Investment Authority, Coca-Cola Co., Fluor Corp., Morgan Stanley, Tokyo Electron Ltd, Holcim Ltd., SAS, Royal Dutch Shell Plc., Nestle S.A., AIG, WPP Plc., IBM Japan, Merril Lynch, Pepsico International, Japan Bank for International Cooperation, Harvard Business School, and International Monetary Fund.

Mrs. Arroyo also expressed pride in the progress achieved by the Association of Southeast Asian Nations or ASEAN, even as she stressed the regional bloc’s commitment to become a single market by 2015.

In a related development, Favila said Credit Suisse is gearing up for greater participation in the country’s infrastructure projects.

Favila said Credit Suisse chairman Walter Kielholz, made known his firm’s plan during a breakfast meeting he hosted for Mrs. Arroyo on Friday at the Casty Wohnen AG Promenade.

The Swiss firm plans to put up a $500 million developmental fund for infrastructure projects, a significant portion of which would be allotted for the Asia-Pacific.

Favila said the President took time out to brief Credit Suisse officials of her super regions program, a new development approach that factors in the strengths of each region or province.

Under the super regions concept, which forms part of the Medium-Term Public Investment Program (MTPIP), the country’s 16 regions are grouped into four "mega-regions," plus another region that cuts across the four mega-regions, to create an enlarged economic landscape based on the natural competitive advantage of these areas.

The mega-regions include the North Luzon Mega-Region, the Metro Luzon Urban Beltway, the Central Philippines Mega-Region, the Mindanao Mega-Region and the cyber corridor that serves as the cyber link between these four regions.

The President’s chartered PAL flight arrived at Villamor Airbase in Pasay City at around 4:30 p.m. She was met by Vice President Noli de Castro Executive Secretary Eduardo Ermita and Armed Forces chief Gen. Hermogenes Esperon. - with Paolo Romero