Fil-Chinese companies cite high power costs, red tape as leading deterrents to investment

FILIPINO-Chinese businesses said they continue to view high power costs and red tape as the leading deterrents to expanding their operations.

“There are issues which are of major concern to businessmen. Number one is our cost of electricity… there is also the ease of doing business,” Cecilio K. Pedro, president of the Federation of Filipino Chinese Chambers of Commerce and Industry, told reporters on Thursday.

“Number one is our cost of electricity, one of the highest in Asia-Pacific. Sometimes big industries can’t enter because they can’t get enough power,” he said.

Regarding the onerous process of obtaining business permits, he added: “We need to bring our permits together… You have to go to every department and meet their requirements. Pahihirapan pa sa mga requirements. So, pag-isipan natin kung paano tulungan itong investors (It’s difficult to gather all the requirements. We need to think of how to help investors),”he added.

“Investors create jobs… jobs will be key for the country to move forward,” he said.

Separately, Mr. Pedro said the Philippines will remain reliant on Chinese goods even amid China’s growing assertiveness in the South China Sea.

“Trade between Philippines and China is favoring China because they export a lot to the Philippines, and we cannot replace (their goods),” he added.

Manila and Beijing have repeatedly clashed in the disputed waterway, with both sides accusing each other of raising tensions.

China claims over 80% of the waterway, but the Permanent Court of Arbitration voided its claim in 2016.

“Most of the products we buy from China are still the lowest priced in the world, mahirap sila palitan (they are difficult to replace),” he said.

“China also needs our products, because we have minerals and agricultural products,,” Mr. Pedro said.

China is among the Philippines’ top export destinations for bananas, avocados, and pineapples, among others. It is also the Philippines’ main market for nickel ore.

“What we have to improve on is the relationship between Philippines and China,” he added. — Adrian H. Halili