CEBU, Philippines - At least 500 Japanese firms have expressed interest in locating plants in the Philippines, including Cebu, 200 of which are into manufacturing.
Cebu Investment and Promotions Center (CIPC) managing director Joel Mari S. Yu said that Cebu is now gaining interest for manufacturing-based investments and that it has to direct its effort in re-introducing the attractiveness of Cebu in terms of manufacturing investments.
Although, most FDIs (foreign direct investments) in Cebu are in BPO (Business Process Outsourcing) or KPO (Knowledge Process Outsourcing), Yu said it has noted a strong interest from manufacturing companies abroad, specifically from Japan.
There are at least 107 people now employed in the manufacturing companies in Cebu, while the BPO and IT sector is employing close to 100 thousand.
According to Yu, CIPC is now working strongly at promoting Cebu as the retirement hub specifically for retiring but active Japanese nationals. Because of this, Yu said there are a growing number of Japanese investors who are looking at partnering with local capitalist in establishing retirement facilities specifically in Cebu.
On the other hand, Yu said if Cebu were to attract more manufacturing firms to expand here, more economic zones must be established.
Yu said that the existing economic zones that host mostly industrial companies, are almost full and that the province needs to expand the availability of economic zones, aside from building cyber zones.
The Philippine Economic Zone Authority (PEZA) is now relaxing its requirements to encourage private developers venture into this kind of project.
Thus, aside from developing residential, commercial buildings and projects, it is also good for developers now to venture into other segment in the real estate sector, and investing into ecozone development is also lucrative.
The availability of ecozone locations could invite more investors to open up their plants Cebu, considering the quality and the quantity of work-force here.
Meanwhile, although building more PEZA-registered zones may attract more investors, what is important is for Cebu to show off its friendliness to investors both local and foreign direct investments (FDI), by fixing the problem of problem of increasing power cost, infrastructure, in general make the province’s cost of doing business much competitive.
Bureaucracy is also very important especially for FDIs, improvement in the bureaucratic red tape, of which the Philippines is known for.
In fact, the 62-hectare Cebu Light Industrial Park (CLIP) recently reported that it has noted an increased of inquiries and intent to locate from investors all over the world.
Cebu Chamber of Commerce and Industry (CCCI) president Lito Maderaso said that in order to take advantage the interest of manufacturing sector to locate in Cebu thereby improving employment opportunities, the chamber is encouraging private developers to set up economic zone projects as the existing economic zones here are almost full.
“We would rather encourage private developers that will create economic zones. Ours in Cebu are almost full,†said Maderaso.
“We need manufacturing to aid our growth in BPO, tourism. We can’t continue to soar in ‘one leg’, manufacturing is the key to have a balance economic growth.†Maderaso added. — /JOB (FREEMAN)