$5 billion in investments at stake in Noynoy's state visits

MANILA, Philippines - The Philippines will probably generate some $5 billion in new foreign investments should president-elect Benigno “Noynoy” Aquino III decide to go on state visits, contrary to his previous pronouncements that he doesn’t intend to travel often.

This was the projection of lone Catanduanes Rep. Joseph Santiago, who favors the private sector’s plan to tap some P160 million in government subsidy to help “sell” the abilities of the country’s knowledge workers.

The plan to help boost the economy is “expected to draw in up to $5 billion in new foreign investments, mostly in information technology-enabled ser-vices,” the administration lawmaker said in a statement.

“We are absolutely behind the plan, which is essential to protecting and advancing our gains in the global markets for IT-backed services, particularly software development and engineering design,” said Santiago, chairman of the House committee on information and communications technology.

At the same time, he urged the Semiconductor and Electronics Industries of the Philippines (SEIPI) and the Business Processing Association of the Philippines (BPAP) to combine forces in lobbying the new president to support the planned global marketing campaign.

The plan involves the placement of high-impact advertisements in leading international cable TV channels and newspapers that cater to the business community.

Santiago said the ads and roadshows for potential investors should be synchronized with Aquino’s foreign trips, which are expected to attract ample global publicity.

Aquino’s highly credible pledge to fight corruption is also expected to help pull in new investors.

“We don’t see any reason why SEIPI and BPAP can’t ask the new administration to set aside P160 million out of the ESF to finance the global marketing drive,” he said.

The ESF refers to the P1-billion Export Support Fund, established to prop up exporters at the onset of the global financial crisis and recession in 2008.

Knowledge workers refer to personnel valued for their ability to interpret and analyze information within a specific subject area. Their skills help companies identify problems and work out solutions through innovation, design and development.

As a result, companies are able to create new products, enhance processes, and increase productivity.

The country’s IT-enabled industries, which Santiago said are “basically exporting services,” are on track to sustaining growth in the years ahead.

Besides software development and engineering design, the services also encompass animation, digital content, customer care, back offices, and medical, legal and other data transcription.

Still driven mainly by contact centers, the services are expected to generate $12.2 billion in revenues this year and are projected to directly employ more than one million Filipinos by yearend.

Noynoy only has expired passport

To emphasize that he will not be a globe-trotting head of state that his predecessors were, Aquino does not have a valid passport at present, and doesn’t intend to renew his old one.

“In fact, at the present time, I don’t have a passport because I don’t really enjoy traveling outside of the country. But if it is necessary, then I will do it,” the incoming president told ABC-5 correspondent Roices Sibal and anchors Cheri Mercado and Paolo Bediones.

Already, Aquino – only son of martyred Sen. Benigno “Ninoy” Aquino Jr. and the late President Cory Aquino – has invitations from no less than the most influential leader of the free world, US President Barack Obama, although this will be done at the appropriate time.

“I intend to travel when it is clearly beneficial to the people and as much as possible, I would rather send lower level delegations that are smaller, more efficient for the country’s interest,” the low-key, down-to-earth president-elect stressed.

Aquino nonetheless acknowledged that there are heads of state who may send invitations that cannot be rejected.

The last time he traveled was during the time of President Joseph Estrada, in 1998.

Unlike his predecessors who traveled often and with huge delegation at the expense of taxpayers, Aquino assured the public that his administration has the daunting task of reviving an economy saddled with huge budget deficits.

The Liberal Party stalwart earlier disclosed to a panel of editors and reporters of The STAR that he does not intend to travel often once he is elected into office, and that he has no particular state that he wants to visit.

“Foreign trips will not be my priority. Maybe I will just visit those countries that have extended an invitation. But that will not be the priority in the first 100 days. We have so many problems to solve,” he said.

He reiterated this right after he won, telling reporters, “As a general rule I don’t want to travel outside the Philippines. The last time I traveled was when Estrada was still president. My point is that negotiations can be done at the lower level so we can save money,” Aquino explained.

“It would be cheaper for the country whose deficit is big. We must be thrifty in spending.”

Encouraging signs

The commitment of president-elect Aquino to address corruption and simplify bureaucratic procedures is an encouraging sign for investors and a more business friendly environment.

British Ambassador Stephen Lillie said the UK welcomed Aquino’s pronounce-ment during a call by European Union ambassadors at his home in Times St., Quezon City before his formal proclamation by Congress.

He said the UK is hopeful that Aquino will fulfill the commitment to address corruption and red tape.

“I think there is a lot of interest in the Philippines as an East Asian economy. I think there would be more investments but that is in the hands of the Philippines to create a more business friendly environment here,” Lillie said.

Prior to the May 10 election, the ambassador said that addressing corruption should be a priority in electing the country’s leaders to achieve the country’s full potential in terms of economic growth and poverty reduction.

He added that the issue of corruption matters hugely to foreign investors, just as it does to ordinary citizens, so the central government will need to continue to keep counter-corruption high on its policy agenda, before and after the elections.

“And Sen. Aquino said he is going to tackle corruption which is something investors care a lot about. He said he is to simplify bureaucracy. Again it is very important to people doing business here to cut the red tape so we are encouraged by what Sen. Aquino said and we hope he does it,” Lillie said.   – With Pia Lee-Brago