MANILA, Philippines - The Philippines has emerged as a leading magnet for foreign direct investments in Asia.
The assessment was made by the independent Japan External Trade Organization (JETRO) in a study of seven competing countries for foreign investments in the region. JETRO presented its findings to the Board of Investments recently.
In its presentation, JETRO compared situations between seven countries that included China, Malaysia, Thailand, India, Vietnam, Indonesia and the Philippines.
On foreign investors’ problem of rising financial costs, it found the Philippines with the most moderate financing cost among the seven countries. Financing costs in China and Malaysia are now the highest.
The Philippines was also found to have the least problem in the region in the availability of providing reasonably priced office spaces and land for building new factories. India and Vietnam found themselves the most problematic in this area.
The old myth that labor cost in the Philippines is one of the highest was blasted off by the JETRO study which found that the cost of labor here is the lowest in the region.
Besides the low cost of Philippine labor, the country also has the highest supply of general staff workers and second only to Malaysia in its pool of available executives.
The country was also found to have the biggest pool of competent workers in the region and with the lowest rate of worker turn-overs or resignation.
JETRO listed four major challenges to investors in the Philippines. These included the frequent fluctuation of the local currency against the US dollar, the difficulty of buying local raw materials, inadequate infrastructure and the ability and awareness of local workers.
It found bigger obstacles to hurdle in most of Asia.