But investors cite weaknesses; Philippines among top investment sites in Asean

CEBU, Philippines - Although the Philippines came out as one of the top preferred investment sites in the ASEAN region for American companies, investors cited few weaknesses that the country has to work on in order to strengthen this position.

In a 2017 ASEAN Business Outlook Survey, American investors cited infrastructure, tax structure, corruption, laws and regulations, and ease of moving products through customs, as among the weaknesses identified by investors that affect the Philippines' attractiveness as favored investment hub in the ASEAN region.

According to the survey, the Philippines is the third country after Vietnam and Indonesia to elicit the biggest jump in interest among U.S. firms.

Respondents of the latest survey are American companies planning to expand or make strong presence in the 600-million consumer-base region.

However, respondents identified at least four areas where the Philippines came out strong compared to its counterparts, these are the availability of low-cost labor, well-trained personnel, and stable government and political system.

Based on a report published by U.S. Chamber of Commerce and the American Chamber of Commerce in Singapore, about 27 percent of the 519 U.S. senior executives polled this year indicate that their companies are thinking of expanding into the Philippines.

Respondents from the consumer goods sector are the least likely to expect their companies to expand, while consulting industries are the most likely to expect the expansion to happen, said the research.

The report revealed that about 70 percent of those polled say they expect to beef up their local operations in the Philippines in the future.

The study also used previous data to see the change in satisfaction between respondents’ answers in 2011 and in 2016.

In the case of the Philippines, the positive changes are in availability of low-cost labor, up 10 percent, and lack of local protectionism, which rose by 12 percent.

Moreover, majority or 43 percent of the respondents expressed optimism of the new administration of President Rodrigo Duterte, saying it could sustain the reforms instituted by the previous administration.

Meanwhile, for U.S. firms with roots in the Philippines in particular, the study found that 19 percent expressed plans to expand, while 55 percent expect their workforce in the country to increase this year.

On the profit outlook, about 79 percent said they expect to reap a profit in 2017, while 11 percent is  anticipating no change, and four percent expect to register a decline. (FREEMAN)