ECCP: Weak infra dulls upbeat economic outlook

CEBU, Philippines — The European Chamber of Commerce of the Philippines (ECCP) has kept a bullish outlook on the Philippine economy but cited infrastructure as still one of its challenges.

ECCP president Nabil Francis, in a recent interview, expressed his optimistic prospects for the Philippines, having one of the youngest populations in the region.

“This economy has fantastic potential especially with its young demographics,” the foreign business leader said.

Francis pointed out the Philippine government needs to work more to improve the country’s infrastructure which is one of the things foreign investors look at when investing in the country.

He said the country’s economy registered robust growth in recent years. This year, the country’s gross domestic product (GDP) is projected to expand by 7-8%.

The ECCP president also cited the need for the economy to be more open.

“It is easier to come to the Philippines if there is liberalization of some of the businesses,” he said, noting the business group supports easing of restrictions for foreign businesses.

The government is proposing modifications in the Foreign Investment Act to reduce the threshold for foreign investors investing US$100,000 in SMEs (small and medium enterprises) from 50 to only 15 direct employees.

It also proposes to exclude ‘practice of professions’ from the coverage of the Foreign Investment Act.

Florian Gottein, executive director at ECCP, said foreign investors are also looking at the cost of doing business in the Philippines.

Apart from infrastructure, he said investors are keen on the “energy prices, the telecommunication services in terms of quality, speed and pricing” when investing.