Business execs in RP worried that their operations may move to other countries

MANILA, Philippines – Business executives in the Philippines are most insecure that their operations might move to other countries.

“We are not attracting new investments and whatever businesses that remain are threatening to leave,” according to Asian Institute of Management (AIM) Policy Center executive director Lourdes Sereno.

“Our business executives are most insecure that their production facility will relocate to other countries,” she said.

Sereno said this could be a serious issue since business executives in the country are concerned whether their operations could continue under the present circumstances.

John Forbes, legislative committee chairman of the American Chamber of Commerce in the Philippines (AmCham), said multinational firms are looking at the cost of doing business.

Forbes said regionalization and international partnerships have made it possible for firms to produce products in one location.

He said the removal of tariff barriers has made it easier for firms to produce in one country only because there is minimal tax for imported goods.

“Multinational firms are now consolidating their operations and as a result some factories may be closed,” he said.

Forbes said businessmen are looking at three factors before making an investment in the country.

He said these are the incentives given by government, the cost of electricity and the minimum wage.

Forbes said the minimum wage in the Philippines is the highest in the region, six times higher than Vietnam’s.

Worse, he said, the Philippines has twice as many paid holidays.

Trade Secretary Gregory Domingo, on the other hand, said they would be operating a Philippine Business Registry that would be a central registry for all business firms in the country.

Domingo said the central registry could help make setting up businesses in the Philippines easier.

“This will make it easier for businesses to operate,” Domingo said.

He said streamlining business registration would cut down the amount of time needed to register a business.

For single proprietorship, Domingo said that under the new system, the approval would be obtained within the day of registration. –Elisa Osorio (The Philippine Star)