|
The depressing cascade of front page news about steeply rising rice
and oil prices has drowned out some very good business news.
First, foreign direct investments have risen
impressively and will continue to do so.
Bangko Sentral Governor Amando M. Tetangco Jr.
released a statement, with the latest statistics, that FDI inflows
grew 15.7 percent to $133 million last January. FDI inflows in
January 2007 totalled only $115 million.
More equity capital was injected into the
economy by foreign investors in Philippine banks and investment
houses, manufacturing, shipbuilding and shiprepairing companies,
radio and television studio production services and in hotel and
resort development, real estate, and mining.
Total net equity capital inflows reached $93
million.
Gross foreign equity capital placements
increased to $126 million, more than double the same period’s
figure of $59 million last year.
The good news continues as BSP forecasts FDI to
reach $4.3 billion this year. $1.2 billion of this is seen to go to
mining operations. In 2007, FDI went up to $2.9 billion, a figure
higher by $6 million than the 2006 FDI total.
The result will be a balance of payments surplus
of $4.3 billion this year.
Philippine exports
Second piece of good news. Philippine exports
continued to go North in February when they hit $4.118 billion,
growing by 10.7 percent over the $3.721 export figure of February
2007.
These February export growth rate is higher than
the January 2008 rate of 6.4 percent over January 2007.
This means that the January-February 2008 period
is meeting the government’s target of an 8 percent export growth
for the whole of this year.
The electronics sector, as in previous years,
accounts for more than half of our total exports. It accounts for
59.6 percent of the country’s total export dollar receipts in
February, which is higher by 4.7 percent ($2.456 billion) than last
February’s $2.346 billion. The USA continued being our No. 1
market. Our export receipts from US buyers in February came to
$717.14 million, higher than last February’s $652.11 million
figure. Exports to the US in February accounted for 17.4 percent of
the total increase.
Exports to Japan and the People’s Republic of
China were next in volume and amount to the USA, at $656.35 million
and $406.38 million, respectively.
Some bad news
THE Geneva-based World Economic Forum, whose
annual Davos meetings President Arroyo has been attending, recently
published its 2007-2008 Global Information Technology Report 2007.
It demotes the Philippines from 69th place in the 2005-2006 report
to 81st among the 127 countries surveyed.
Our Networked Readiness Index (NRI), the measure
of the competitiveness of countries in ICT or Information and
Communication Technology, dropped to 3.56 percent from 4.3 percent
in the earlier survey.
The NRI examines how prepared countries are in
using ICT effectively in three basic areas of life. (1) General
business, regulatory and infrastructure environment for ICT. (2) The
readiness of the three key stakeholder groups—individuals,
businesses and governments—to use and benefit from ICT. (3) The
actual use of the latest information and communication technologies
available.
Our fellow Asean members that were found ahead
of us are Singapore in the 5th spot, Malaysia 26th, Thailand 40th,
Vietnam 73rd and Indonesia 76th.
This negative report about our ICT situation
should alarm the government and ICT-engaged private sector
companies.
Apprehensions over Intel
For there are apprehensions that the management
of Intel, the largest ICT investor, manufacturer and exporter in the
Philippines, is in the process of deciding whether to leave the
country or increase its investments and expand its world-class
factories in Cavite. With an investment of about $1.5 billion here,
Intel employs some 5,000 Filipinos. Its presence creates jobs for
about 40,000 other employees of downstream and ancillary local
companies and service suppliers.
Apparently, just like other foreign direct
investors in the Philippines, Intel has several complaints about
doing business here. The high cost of power, the corrupt practices,
the unpleasant traffic, etcetera.
What seems to be crucially negative is the
failure of our national government to help raise the academic,
research and professional conditions of our science and technology
people. World leaders in advanced technology like to be in places
were there is a flourishing and active scientific community whose
members know the state of the art in their fields and are in fact
involved in cutting edge research.
Intel and other high-tech companies do not find
that here. But they do in China, Singapore, Malaysia and Vietnam.
In addition to high-level scientists who have
arrived, and whose research work Intel and its ilk could support or
purchase and co-own, they also wish to see colleges producing
thousands of qualified entrants to their factories and laboratories.
Sadly, we don’t have such young scientists and technicians
marching out by the thousands from our universities.
We urgently have to do something about this
deficiency in our development. The government must do much more than
it does now. Or we will have increased joblessness and poverty in
addition to the rice and oil crises.
|
