GMA vows to make life easier for foreign investors

MANILA, Philippines – President Arroyo has vowed to make life easier for foreign investors in the country by eliminating red tape and corruption but this is easier said than done, according to an international business intelligence group.

Speaking with reporters at the sideline of the business roundtable organized by the Economic Intelligence Unit, Justin Wood, the director for the EIU’s corporate network and its Southeast Asia expert, said the President made the right noises about her campaign against corruption but getting the businesses affected by this to report these instances is not that simple.

Wood was referring to the President’s speech where she called on businesses affected by corruption to let the government know about it.

“If there is any doubt that we don’t value any particular company’s investment, including a company experiencing some attempts to make illegal money out of them, we want to know about it,” Mrs. Arroyo said.

“Secretary Favila will take care of your problems and crack the whip. We can assure you that we will do anything we can to address your concerns so we thank you for your interest in the Philippines, we will work hard to help you expand your presence in what we are determined to be, the best investment location in Asia,” she added.

Wood pointed out that many foreign companies have aired their experiences on corruption while doing business in the Philippines but they were reluctant to report these cases to the authorities because “they feel there may be retribution.”

He said the companies felt that reporting these cases would result in limited access to opportunities, resources and contracts.

“It sounds good for the President to say we want to hear about these cases. The reality is not that simple,” Wood said.     

As she had done in previous occasions, Mrs. Arroyo blamed the media for the perception that the Philippines has a corrupt government.

“A lot of their (Transparency International) basis is what they read in the papers. It’s a whole layering of perception indexes. And if you compare the Philippines with the rest of the region, we have to remember that the Philippines has the freest media in the region. Free wheeling and English at that,” the President said.

Mrs. Arroyo said the local media would play up stories and “even rumors and innuendoes end up as fact when they’re in the banner headline.”

“So that’s part of what we have to live with. I don’t think the business community would like to have a clamping down on freedom and liberties in the Philippines because that’s part of our competitiveness, I suppose,” the President said.

According to Wood, the perception on Philippine corruption is very high, but the problem is real based on the feedback received by his organization.

“I think it’s more than just a perception. If you talk to business people privately, they believe that perception is correct and that corruption is high and it’s a problem that needs to be addressed and it’s not an easy one to address,” Wood said.

EIU claims to be the world’s foremost provider of country, industry and management analysis.

Founded in 1946, the Economic Intelligence Unit is now a leading research and advisory firm with more than 40 offices worldwide, according to the organization’s website.