Phl needs to cut power rates to lure high-end investments

CEBU, Philippines - While the Philippines is looking at reviving its attraction to labor-intensive investments, specifically the manufacturing sector, it has to work on fixing the high rates of power and cost of doing business, in order to attract investors.

Employers Confederation of the Philippines (ECOP-Cebu) president Jose Ng said that if the Philippines were to sustain its attraction for manufacturing investors, it has to focus on high-end related services, rather than labor intensive companies.

With manpower cost in the Philippines still considered higher compared to some regions in China, it is still difficult for the country to lure big-ticket and high labor-intensive manufacturing investments, unless it has to work on reducing the rates of power, and cost of doing business.

“Take note, that the Philippines has the most expensive power rates in the world,” he said although this report has only identified power rates in Metro Manila, Ng said Cebu power rate is also getting expensive.

However, he said the Philippines has the potential to grow in the manufacturing sector by attracting the high-end level such as electronics, among others.

On the other hand, manufacturing investments such as handicraft, furniture and similar sub-sectors are still on fragile state, while China is still more attraction as site location, compared to the Philippines.

Meanwhile, Department of Trade and Industry (DTI-7) regional director Asteria Caberte said that the Philippines, including Cebu is seen to regain its attractiveness in the manufacturing investments.

Caberte said that Cebu in particular has to prepare for the influx of manufacturing related investments beginning this year that would bring in more employment opportunities, and further boost the economy. (FREEMAN)