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By Likha C. Cuevas-Miel, Reporter
AMID the slowdown in the world’s largest
economy, more American firms are investing here to take advantage of
local growth prospects, according to the US ambassador to the
Philippines.
Amb. Kristie Kenney told reporters during a
visit to the Philippine Stock Exchange last Friday that the US
slowdown has fueled investment interest in the Philippines. Many
American firms may continue to do business here if the government
would continue its economic reforms, she said.
“It’s a difficult time [in the US] as you
know. There are certain issues that need to be addressed and
Congress has passed an important stimulus package which I think will
allow for things to turn around. And I think for countries like the
Philippines [it is important] to keep moving with your economic
performance. It’s a global world but there is a lot of competition
for where to invest or where to go. The Philippines has a strong
economic growth last year and you want to keep focusing on the
things that happen to attract investors,” she said.
The ambassador cited the recent expansion of
Wachovia Bank’s customer care services—through call center firm
Genpact—in the country as proof of increased investor interest.
Kenney said the Philippine branch is the first call center the
lender established outside the US.
The local business process outsourcing (BPO)
industry is among those that would greatly benefit from a possible
US recession as firms continue to cut costs, especially in their
back office operations. The Business Process Association of the
Philippines (BPAP) said the smaller US-based call centers may shut
down due to economic difficulties so local firms should play their
cards right by luring their’ back office operations.
Property consultant CB Richard Ellis (CBRE)
Philippines Inc. said belt-tightening of US companies would force
them to outsource and offshore back office jobs this year. Growth
for the call center or voice segment of the BPO industry would be
smaller but this would be compensated by the rise in the non-voice
component
Moreover, emerging markets, especially in South
East Asia, would experience a rush of funds seeking higher yields as
the volatility of the US dollar will push investors to consider
alternatives like investment grade real estate. This would then
boost the local property industry, which is enjoying better times
after the Asian crisis.
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