Aquino challenges Chinese firms to invest in the Philippines
A CALL FOR Chinese firms to invest in the Philippines was reiterated on Friday by President Benigno S. C. Aquino III, who offered a commitment to transparency and reforms that would allow deals to withstand public scrutiny and legal challenges.
In a speech at the Philippines-Eastern China Business Forum in Shanghai, Mr. Aquino noted that his administration’s pledge to provide investors a level playing field would require "undoing the mistakes of the past" -- an apparent reference to allegedly anomalous contracts entered into by the previous government.
"It is my hope that these reforms do not raise doubts among some who are contemplating investing in the Philippines. Let me assure you that we must do these things now in order to create a more equitable business environment, where each contract signed and each project completed will stand firmly on the bedrock of integrity," he said on the second leg of a state visit to China that will end on Saturday.
Every contract awarded, said Mr. Aquino, would hew to five "Rs": right project, right cost, right quality, right people and right on time -- "the only way to ensure that your projects will not be questioned by the public, or by succeeding administrations".
"I trust that the businessmen of the world know that no one can afford to be nearsighted in these times. We must take the long view in order to achieve lasting, mutual gains. I am sure that the Chinese, known for always thinking many steps ahead and for appreciating the long-term aspects of business and governance, are with me in this regard," he added.
Chinese firms, Mr. Aquino also said, should take advantage of strong prospects for improved bilateral economic ties despite renewed global worries, noting that a few such as China International Water and Electric Corp. have begun working on major infrastructure projects in the Philippines.
He also reiterated a challenge for Chinese investors to help address an investment gap, saying: "in the past, our commercial relations have been more beneficial to you than to us: Filipino foreign direct investments in China total $2.8 billion while Chinese investments in the Philippines total $500 million."
"Now, we have come here to potentially balance the equation. China has the financial and technological capability to be among the major foreign direct investors in the Philippines," Mr. Aquino added.
He pointed to the long history between the two countries, in particular noting that China’s contributions to the Philippines even extended to the "piedra china" -- ballast stones used by visiting junks -- that were left behind and used to pave roads -- an infrastructure investment, so to speak.
After his Shanghai visit -- Mr. Aquino began his China trip in Beijing where he met with China’s leaders and witnessed the signing of several bilateral agreements -- the president will spend his last day in Xiamen, where he will board a plane for Manila. He is expected to be back in the Philippines by 6:40 p.m. on Saturday.
Aquino challenges Chinese firms to invest in the Philippines | BusinessWorld Online Edition