PHILIPPINE STAR - January 14, 2008

Total investments in RP hit P350B

Combined foreign and domestic investments in the Philippines reached P350 billion in 2007 with Singapore as the top investor, Trade Secretary Peter Favila said over the weekend.

Favila said in the weekly radio program of Vice President Noli de Castro that 54 percent of the total investments last year came from foreign sources and surpassed domestic investments that reached 46 percent.

He noted that the top investors were Singapore, Japan, United States and The Netherlands which is mostly engaged in chip processors, electronics and cellphones.

According to Favila, the power and water sectors benefited most from the investments.

But he said power rates in the country are the second most expensive in the region next to Japan.

"We continue to attract investors. We hope to solve power rates because we are the next highest in Asia next to Japan if there will be investors in the power sector," he said.

Last October, Washington urged the Philippines to be one of the top business destinations in Asia as it acknowledged the significant growth in the Philippine economy bringing the country back on the radar screen of the world.

Ambassador Kristie Kenney said the Philippines, once called the "laggard" in Southeast Asia, is now in a great position because of economic improvements.

Kenney said the country should sustain the economic growth that requires to keep investing in infrastructure, good business practices to ensure that it is easy to do business in the country, respect international laws, protection of intellectual property and working on environmental protection.

She cited infrastructure projects, including construction and improvement of airports, roads and bridges to attract foreign investments.

Kenney said consumers want to buy products that are environmentally friendly and businesses want to invest where there are good environmental protection standards and tourists increasingly want eco-tourism destinations.