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By Chino S. Leyco, Reporter
The Philippines is one of the most expensive
investment venues among members of the Association of Southeast
Asian Nations (Asean) and other places in Asia surveyed by the
Department of Finance.
The Finance department’s consolidated reports
showed that compared to select Asean countries mentioned in its
report—Indonesia, Malaysia, Thailand, Singapore and Vietnam—the
Philippines has the highest power rates, the second-highest labor
costs in the capital city, and the peso appreciation against the US
dollar last year was also the biggest in the region. Asean has 10
members—the Philippines, Brunei Darussalam, Cambodia, Indonesia,
Lao People’s Democratic Republic, Malaysia, Myanmar, Singapore,
Thailand and Vietnam.
The Philippines was even more expensive than
Asian economic powerhouses China and India.
The power rate in the Philippines, which posted
7.3-percent growth in gross domestic product (GDP) last year, was
$0.081 per kilowatt-hour (kwh). That rate was the highest among the
countries in the report, even more expensive than Malaysia’s
$0.056 per kwh and China’s $0.044 per kwh, which was the lowest.
Because foreign investors hold
dollar-denominated currency, the peso appreciation of 18.8 percent
against the greenback last year is considered as a disadvantage for
the Philippines. The Indian rupee only appreciated 12 percent, and
Indonesia and Malaysia by 7 percent and 6.4 percent, respectively.
In wages in the capital cities, the Philippines
came second with $250 to $500 per day, after Singapore, which ranked
first with more than $500. Wages in the capitals of China, India,
Indonesia, Malaysia, Thailand and Vietnam were lower, ranging from
$100 to $250 per day.
For office rental rates, China with $366 per
square meter per year is the most expensive among the selected
nations, and Indonesia and Malaysia have the cheapest rates with
$143. The Philippines was not far ahead from the cheapest with $145
per square meter per year.
In terms of foreign direct investments, the
Philippines last year lagged behind Singapore, Vietnam, Thailand,
Malaysia and Indonesia. The Philippines’ $2.5-billion investments
was significantly lower than Singapore’s $36.9 billion.
Singapore actually ranked first in terms of
investments, followed by Vietnam ($11.3 billion), Thailand ($10
billion), Malaysia ($9.4 billion) and Indonesia ($5.9 billion).
Sources of the Department of Finance information
include press reports, Japan External Trade Organization, United
Nations Conference on Trade and Development, World Bank and IMD
World Competitiveness Yearbook 2006.
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