|
FOREIGN businessmen in the Philippines expressed
concern Monday over the slow pace of economic reform, warning the
country was being left behind in the race to attract foreign
investment.
Foreign direct investment (FDI)
in the Philippines reached $2.9 billion last year, according to
central bank data, compared with $8.8 billion in Thailand and $7.5
billion in Indonesia.
“The Philippines is under
performing in the region in attracting FDIs,” the Joint Foreign
Chambers of Commerce said in a letter posted on their web site
Monday.
While the Chambers gave the
government of President Arroyo good marks for clearing its backlog
of paperwork, it said it was falling behind in transparency and
fighting corruption.
“Much harder work will be
required to catch up with Malaysia, Thailand and Vietnam,”
American Chamber executive director Robert Sears said in the letter,
which was also sent to the Trade and Investment Secretary Peter
Favila.
Sears said that the required
changes were “perhaps too challenging given the slow pace of
reform” but added that “the private sector is ready to work
hard” to ensure the reforms are successful.
The chambers cited key areas
where reforms are needed, based on a study made in 2006 aimed at
attracting $36 billion in FDI from 2007 to 2010.
The progress report, made in
March, warned the government was “backsliding” in areas like
making labor more competitive, making procurement contracts more
transparent, promoting merit in the civil service and cracking down
on tax evaders, smugglers and corrupt officials.
It also said the government had
made “limited progress” in areas like setting a legislative
agenda, clearing up red tape and road traffic and opening up the
mining and energy sectors.
--AFP
|
