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Why foreigners don’t invest in Philippines

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“Pedring” was the only typhoon that flooded the seemingly impregnable US Embassy compound on Roxas Boulevard in Manila.

US Embassy staff had to be evacuated by the police and taken to higher ground because of the flood.

Pedring also forced the evacuation of guests of Hotel Sofitel at the Cultural Center Complex, the first evacuation effort in its decades-old existence.

In terms of scaring US Embassy staff and guests of a five-star hotel out of their wits, Pedring packed more wallop than “Ondoy,” which inundated whole villages and drowned some 500 people two years ago.

*   *   *

Pedring struck almost to the day Ondoy pummeled Metro Manila and other parts of Luzon two years ago.

The typhoon’s fury came two years and one day after Ondoy.

The universe is probably giving us a message that we’ve abused Mother Nature so much for so long.

We are now continuously harvesting the bitter fruits of such abuse.

*   *   *

“Marikina watershed reforestation pushed”—headline.

Why only now?

If the reforestation had taken place long before Ondoy and Pedring, Marikina and other areas would not have experienced flash floods that put middle-class villages under water.

We are reactive people—taking action only after a bad experience—and not proactive, which is taking action to prevent a mishap.

Our police are reactive people: They go after criminals after a crime has been committed, when their more important job is preventing a crime before it occurs.

*   *   *

President Noy has been going abroad inviting foreign businessmen to invest in the country.

Only very few investors will answer P-Noy’s invitation.

Ours is not an investor-friendly government and country.

Potential investors will have to reckon with corrupt officials at the Securities and Exchange Commission, Department of Trade and Industry and the Bureau of Customs, which will assess the machinery and equipment to be brought in.

That’s not all.

Potential investors will have to bribe officials of towns and cities where the foreign-owned companies will be set up.

Even barangay officials will have to be bribed for a business permit to be released.

You think that’s the end of it? No sir!

We have one of the highest power rates in the world; so much of the investors’ expenses will be for the payment of electric bills.

What also drives away foreign investments are our militant employees. They stage strikes and walkouts once they see their company is earning.


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Tags: foreign investments , Philippines , Typhoon Pedring


  • http://pulse.yahoo.com/_XZYL65T5BZ6Z3LQYLXUD3VJL6U Snoopy S

    I totally agree in regards to your opinion on “WHY” we scared venture capitalist out from the Philippines..very true..”KUHA MO!”

  • Anonymous

    I agree with mr tulfo in all those red tapes & negative factors for investments in the Ph;  the country should go back to agricultural products and food productions for exports and local consumptions! and all these programs should be decentralized and allow provincial officials to manage their respective programs, not malacanang directly!  those province that could not produce from their resources would starve & impoverish, showing lazy & corrupt people in it!

  • Anonymous

    Dapat may budget din para sa “revolutionary tax”  para iwas sunog.

  • Anonymous

    This is a good starting point. I am an American, married to a Filipina who is an engineer, yes engineer. I will be very direct and to the point on what needs to change.

    1. True foreign investment should be in fields which Filipino employees can excel and grow. Opening a company to take advantage of cheap labor and little or no growth potential is not a win-win situation.
    2. Companies starting up should be given tax hloidays and equipment and supply breaks from customs for start up. Again, proof should be provided for the actual use of these products.
    3. All Filipino’s hired should be given regular work reports and be guaranteed upon proof of profitability, raises based on reports and tenure. Paying minimum wages as a start-up company is fine, but after a few years and proven success is shown, some of the profits have to trickle down to the employees.
    4. Businesses not found following these practices should be somehow sanctioned until compliance is met. Any company (especially Foreign owned) should have to give back to the people and meet or exceed all required minimum pay, safety and discrimination standards.

    The other things Mon covered here are very true. I have met all of the listed problems noted above and have had my competitors even try to entrap me with customs and local government officials. To give you a ideaof how bad it was:
    I was paying my beginning employees 300+ pesos a day in 1995 !!
    I gave quarterly sacks of rice and allowances for travel.
    I gave advances on many cases before work was even completed.
    MY employees only worked 40 hours a week and got overtime for Saturday work.

    Now I know girls who work in Malls, many of the biggest in Davao, Cebu and Manila who make far less than that even today. But are forced to sign for making minimum wage. And when most turn 25-26, are let go of. Yet we keep buying from these crooks who get rich off the discrimination and abuse!!!

    How can we as a society, keep giving in to these abuses without recourse? Why would foreign investors commit money to such a unjust system? When will people wake up and say enough is enough?
    As I said before, the best way to stop these type of abuses is to stop purchasing or using businesses that do this to its people. Hit them where it hurts, their wallet. They can’t stay in business no matter how corrupt if we don’t use them and give them our hard earned money.

  • Anonymous

    The most formidable hurdle is the lack of reliable infra-structures that support a continuous and profitablle operation. Say, the rotating power blackout and power surges result to a very high manufacturing costs  since production has to be scaled down while workers have to be paid in full regardless if they only work half of their shift. As well JIT ( just in time) delivery which is essentially crucial to optimal production is difficult if not impossible to be implemented due to traffic congestion in our highways. In Europe, USA, and Canada, parts can be shipped from their suppliers direct to the production lines without the necessity of storing these parts in warehouses, thus minimizing the handling costs and instead use these savings for workers’ benefits. The last but not the least, traffic police in foreign countries seldom have the habit of earning their mistress, coffee and doughnut allowances from hard working drivers.

  • Hunter Haynes

    Always hitting the nail on the head Mr. Tulfo. I am a long-time reader of yours and a foreign investor/businessman in the Philippines but I love the country so much I push through the difficulties. I also find myself assisting other foreign investor friends through the minefield of getting a business started. Many of these investors, especially one in particular, have products that will help all Filipinos from the upper class to the poor. I do wish there was some sort of fast-lane to get highly beneficial products and services into the country quickly. I was told recently that in Singapore and Australia it takes only one (1) day to setup a company!

  • Anonymous

    You are right Mr. Tulfo. Example is Hongkong. Setup a business in Hongkong you will be done in 5 days time.

  • http://pulse.yahoo.com/_OJWHBJLMWPTRUOZMN6JOMHLO2A Banana Na

    ano kaya tumakbo ka bilang congressman or senator lang man para pasinin mo ang mga ito kapwa congressman or senator kung napanalo ka sa pwesto nito….at least..MR.TULFO..sinasabi mo ang TOTOO kung ano ang mga problema sa BANSA natin…marami dyan nakupo sa CONGRESSMAN or SENATOR di alam kung anong problema sa government at di nagsasalita kung ano ang problema sa BANSA katulad ng FOREIGN INVESTMENT kung bakit palagi KULELAT ang PILIPINAS pagdating sa ganyan TOPICS…1 billion plus dollar lang ang pledges ng US at JAPAN sa pilipinas, masaya na ang Pnoy government…KULELAT talaga palagi ang PILIPINAS….NO HARD FEELINGS YAN ANG TOTOO..

    • http://pulse.yahoo.com/_2BLVKWQR77VJKMEZWS4GIMLGOY Edzel

       Sobrang corrupt ni Mon Tulfo.  Mas malaki pa ang bunganga niyan kay Lolong.  No. 1 AC-DC journalist yan.

  • Anonymous

    In addition if you are a small business….there are so many compliances that you need to do monthly taking away precious time resource from your business. In HK compliance are done every year.

  • ryan andres

    Barangay, Munisipyo, congress, senate, permits, permits, permits, SEC, BOC, etc…

    Everybody wants a piece of the action…

    Is our government THAT greedy? Ganoon na ba sila ka-ganid sa pera??? Oh wait…stupid question…

  • Anonymous

    It is a common knowledge among world Investors how difficult it is to set up a business in RP with all, yes, these corruptions in all sectors public and private. You can’t go thru without putting bribes or suffer long delays and frustrations. Just try setting up a private or business phone system in RP. It takes only few minutes to set up a phone account in the US but try RP without the usual “lagays”. It is so sad to see RP presidents trying to convince investors only to be denied because nothing has been done to curtail graft and corruption in the country.When will the Filipino leaders realize this.

    I have considered in the past retiring to RP but completely lost my interest. On top of corruption, I have grave concern on safety with all these unsolved extrajudicial killings. 

  • http://pulse.yahoo.com/_7ZRFQ4M574FMBX2GJTTTZL6OJQ Dennis Nelson

    As a “foreign”..(USA)..observer to the Philippines,Manilla situation…and as a Christian minister…I don’t percieve the state of the economy there as a curse of God on it all…BUT I do see that the blessing of God-given wisdom and answers come when a Government looks fully to God for answers and begins to do what pleases HIM,not individuals pocketbooks….just a thought….BLESSINGS TO A COUNTRY I HAVE COME TO LOVE..DN

  • http://pulse.yahoo.com/_G4GTZQQTDMHLRJYSXL237LMVHA Boygee

    I’ve been out of my native country for 25+ years and the way it looks things still never change.  The more we have government officials, more laws, more rules and regulations, bawal dito / bawal doon..it’s mean more corruption, more lagay, more padulas…kailan pa kaya magbabago ang Pilipinas?

  • Anonymous

    MON, I’m agree with some of your columns but  not really with your comment about the president bringing few investor in comparisons with your kumpadre FFG & GMA in the first few months of Pnoy in the Govt. the truth is many have pledges of Billions investment to Philippines, USA Japan etc. We should at least appreciate and contented to what we have receive. there will be no perfect president but trying their best is absolute right to say Thank you Sir. Siguro ikaw kahit na busog sigi pa rin ng kain

    • Anonymous

      Yes, just be happy with pledges.  Just like be happy with campaign promises that will never be realized.

  • Anonymous

    Thanks to those who agree, but for those who don’t, please use your head and not just your heart.

    Many companies which come here, USE not employ or empower their workers.
    Many file false earning reports, false BIR reports and even have BIR consultants to show how to pay far less or outright cheat.
    Since the government cannot pay what rich tycoons can, unfortunately officials will take consultation fees and pay tong to these people to avoid paying 10 or 100 fold what they are declaring.

    Which would you do? Pay a collector 100,000 a month to give you a reciept which saves you a million,
    or pay the million knowing that the next one might audit you and harrass you anyway? Costing you millions plus just to defend yourself and prove you were doing right all along !!

    If everything were paid as a flat tax based on either incoming by manufacturers or outgoing as retailers,
    the playing field would be much more transparent and loopholes harder to find. Same with individual taxes; Take the net income, benefits and bonuses paid and pt on a sliding scale which equates to a fair share for everyone to pay. a POOR PERSON WHO CANNOT AFFORD TO EVEN OWN PROPERTY, SHOULD NEVER, EVER HAVE A HIGHER TAX BURDEN PERCENTAGE WISE THAN SOMEONE WHO IS RICH.

    It is time we all just pay our fair share, and that includes government officials and the rich too!!

  • http://pulse.yahoo.com/_6GQ752PZJPHPSBIG53P53TGF7Y Nelson

    the philippines is sinking, any foreign investor who will come and do business here is like committing suicide… only foreign drug lords, smugglers, human traffickers, poachers and sex maniacs like to do business here…

  • Anonymous

    Trees help control flooding but not a sure thing. If there is too much rain, too many garbage clogging the drains and rivers and of course if the water level itself rises, then I don’t think flooding can be prevented. Even the most developed countries experienced it. Many times.

  • http://pulse.yahoo.com/_HX5AXAW64ITWGARCNJXRJVFPBM Cesar

    What we need is a strong leader to minimize corruption and provide direction where the country should be going. Like Lee Kuan Yew.

    We don’t need and vengeful and weak president who is tied up in persecuting the old administration, enjoying foreign trips, giving our our hard earned money to squatters, punishing us with more taxes, etc  but is unable or or incapable of steering us to the right direction.

    Is it an impossible  dream to finally choose a strong leader?

    • http://pulse.yahoo.com/_PPSHX2WQDC664ASRV6X2K5EVEQ Mind Lumayag

      persecuting previous administrations are not an issue of revenge but to to persecute and jailed corrupt officials of the government, and any sitting president will do that because corrupt government must realize that nobody can escape the law of tha land even if they are no longer in the government. Foreign trips are necessary so we can have bussness in the country going on to feed the people including your family.

      • http://pulse.yahoo.com/_HX5AXAW64ITWGARCNJXRJVFPBM Cesar

        There is no issue that corrupt officials should be jailed but not to the point that the other more pressing needs are sidelined. Road maps to progress should have more focus and not persecution. A strong leader need not go abroad to beg, he has subordinates to that, as long as these people are not as incompetent as he is. I can feed my family, even you my friend, without the need of this sitting leaders to go out and spend ( or donate) my money, for this ludicrous trips.

  • Anonymous

    You are right Mr. Tulfo. These are really tough problems plaguing our investment climate.

    1) The power rates can be resolved by identifying Subic-Clark as our manufacturing hub and having their own power plant (there is one already but I’m not sure if it can supply all the firms) which will provide power at its own competitive cost. The cost of power at the national level is just too high, thanks to the Cory-Ramos regimes.2) It’s true what you said about militant labor. They usually target the manufacturing sector which, ironically, employs the poorer sector of the labor force (the middle class work in the call centers and Makati/Fort Boni which hardly have unions). Worker education and labor-management cooperation (e.g., put up labor-management councils at the firm level) is still the solution here. 
    3) The minimum wage unfortunately makes us less competitive, compared to Vietnam and China.  
    4) Regarding corruption, businessmen are actually willing to pay “fees” “huwag lang garapal”. Still corruption can be resolved by jailing the guilty, especially in the cases out in the open. 
    5) What really turns off investors is the slow pace of justice. Cases just last too long. Believe it or not, our national development lies in: a) quickenng the slow pace of justice; b) having our fiscals, judges and CA/SC justice dispense true justice that is blind (not determined by the highest bidder). to resolve this, I would put the full force of lifestyle checking on incumbent and recently retired fiscals, judges and justice, as a warning.

     

  • Anonymous

       The  Philippines progress will always be stalled by  bureaucracy that has plaque  this nation.They have installed computers and other devices to conform with the modern age but still even simple Filipino would have to endure a lengthy process.Three to five days or even two weeks to get a business permits.You have to cough up a thousand to five even more to hasten the process.Sickening  to the bone when this would not could help strengthen the Philippine economy.
        Singapore,Malaysia and Korea have taken great strides to increase valuable business opportunities.They have the lowest salary workers,no strikes that can impede production and above all red tapes have been put on hold.

  • Anonymous

    lots of red tape in the bureaucracy and the high cost of electricity is what drives away the investors. we have talented and cheap labor force but the government officials are driving them away. the present administration should try to lessen  the red tape and reduce corruption in the bureaucracy.

  • http://pulse.yahoo.com/_PPSHX2WQDC664ASRV6X2K5EVEQ Mind Lumayag

    Is there anybody in the Philippines today who can prove that flooding do not occur in the past. The Philippines is an Archipelago and is prone to low depression and rain, naturally flooding is always a possibility. During the time of Rizal or Bonifacio that is in the 19th century or even in the 18th or 17th century, are we sure that the Philippines do not flood during rainy season. 

  • Anonymous

    Kung paniniwalaan  lang natin ang mga comments dito, parang wala ng pag-asa ang pinas, pero bakit ang daming foreigner na nagnenegosyo sa atin, mga koreano, hapon, intsik, mainland china, indian, puti  at iba pa. at mukhang mauunlad pa ang kanila ang buhay, nag-aasawa pa ng pinay huwag lang ma-deport.  tayo naman parang cancer na ang pinas at mag-abroad na lang ang tanging pag-asa para umunlad t. engot ba talaga ang pinoy.

    • http://pulse.yahoo.com/_H3XXQXBVPVUIAWR75IWTLAOTVE Pacific Dragon

      Novaliches, foreigners are here because we have money and cheap lifestyle.  We like it here because no law applies to moneyed people.  We can do whatever we want and everything is “negotiable”.  Main problems in Phil are overpopulation, corruption, uneducated people, expensive basic commodities like electricity and gas.  Country is getting nowhere until an aggressive president kicks butt.

      • alienpatriot

        I will agree with large chunks of what you write PD. I am not Pinoy by birth and so I am here for a range of reasons.
        It is interesting to live in a foreign country that is very different from my European racial heritage. Lifestyle is cheap except for power. That is also useful because incomes here are low. This is a country that is good to retire in but not so great for its citizens to work in.
        I notice that you mentioned both overpopulation and uneducated people separately, PD. In reality they are associated.
        I agree about needing a stong President to make the hard decisions. Whether we are talking about the same decisions I am unsure, but the idea is correct.

      • Anonymous

        Pacific dragon, you are in pinas because you can not do in your country  what youre doing here, and  you know the worst penalty you will get is deportation. just do not abuse our hospitality.  “Moneyed people”  i assume you are not referring to your SSS  benefits.

  • http://pulse.yahoo.com/_PPSHX2WQDC664ASRV6X2K5EVEQ Mind Lumayag

    power rates are high? yes, because the majority are still poor. The Philippine rate compare to other countries are almost the same, the only difference is we don’t earn the money to pay for it, while in other countries they do.

  • http://pulse.yahoo.com/_PPSHX2WQDC664ASRV6X2K5EVEQ Mind Lumayag

    The only way to eliviate poverty is to stop corruption, even third world economy can live better if corruption is not rampant and cronic.

  • http://pulse.yahoo.com/_PPSHX2WQDC664ASRV6X2K5EVEQ Mind Lumayag

    Ours is not an investor-friendly government and country? not an investor-friendly government, yes for now. but as not an investor-friendly country? I don’t think so, because our country has all the resources to be a wealthy nation.

  • http://pulse.yahoo.com/_PPSHX2WQDC664ASRV6X2K5EVEQ Mind Lumayag

    The US embassy was never flooded before, I agree. Does garbage clogging the sewer is the cause of it or does deforestation has something to do with it, of course not because it is located along the sea. But now it had flooded as Mr. Tulfo had stated, haven’t we considered thinking that Pedring might really be just one among the many heavy typhoons that regularly visited the country every year.

  • http://www.facebook.com/people/Jose-Hernani-Parco/100000334088180 Jose Hernani Parco

    that’s correct, even the Mafiosi will not dare investing over here, our “ladrones” are more thief than thieves!

  • alienpatriot

    OK. I think this is my cue. As a foreignor who has invested (in a small way) maybe I can express an opinion on the foreign investment issue. I see many positives but what do I see as the biggest negative?
    I see a country where people proudly declare their love of country but often do little to change the problems. I have commented before on the garbage problem. Dropping your rubbish anywhere seems to be accepted even by people who declare their love for the country that they are creating a mess in. No more needs to be said about that.
    A second issue is a preparedness to tackle poverty. If I am a real estate investor I want people wealthy enough to rent my condominium rooms. If I am selling, I want buyers able to afford what I produce or sell. Is Philippines ready to make the hard decisions to rescue itself from poverty? Frankly, the jury is out on that one. There is a bill in congress here at the moment that is important in two ways. Whether the RH bill passes will firstly have symbolic significance in that it will tell us if the good of the country and its people can triumph over an organisation that puts its own interests before that of its members (parishioners). The RH bill is important for a second reason. It does allow the creation of a more substantial Philippine middle class. It is this middle class who will attract investors.
    I have focussed on smaller investors here. I do not own a large multinational company. Most people don’t. There are large multinationals from my country of birth who have set up call centres here. They do create some jobs. Once again the requirement is middle class, educated people with good English. Once again, the issue is the RH bill for the two reasons that I stated.
    Many investors are watching the RH bill. If it fails it will be a sign that Philippines is not rready for major investment.

    • Anonymous

      I see many positives….
      >>  Nice to hear this from a foreign investor, and as a Filipino, I thank you for that, and when the occasion arises, and not necessarily in this combox, but in comboxes of columnists more dedicated to business and economics, you might want to elaborate on this, as a good, number, I am sure, would be interested to read it. 
      As a foreigner who has invested (in a small way) ….
      >>  I think this is the kind of investments the Philippines need right now, small to medium scale, I hope you feel welcome here and that your business will prosper.  FYI, the Philippines used  to be a major hub of large multinational corporations. Most of them are still here, but 70%, or even more, are just sales offices now; their manufacturing facilities having gone to any of the neighboring countries.  There is, of course, always the debate whether these large multinationals were beneficial to the country because a good part of their earnings is retained or is funneled back to home office.  I have always been on the side that they were beneficial.  We are now, for example, importing from the manufacturing facilities that used to be here, or had plans for expansions here, of Toyota, Ford, 3M, Intel, Kimberly Clark, Johnson & Johnson, just to name a few, when we should be the one exporting if only the country had done something to retain these investors. Instead we allowed events to overtake us instead of anticipating them.  Nothing was done much about the energy sector, for example, and now we are paying the highest electric bills in Asia.  There was nothing done to check the militant labor unions, and by the time they were checked, it was too late, the manufacturing facilities were already on an exodus mood, adding more to the unemployment problem.  But, if the labor situation is a lot better these days, it is not because somebody did something — the militant group simply lost an ideology that used to back them, a good many of the union leaders were exposed that they were more interested in the union dues of members than the actual welfare of members, and more members themselves saw there was actually no benefit to them in joining unions. In the meantime, as a preemptive measure to strike, employers now hire a skeleton force of permanent employees, the rest are hired on a 6-month contractual basis; a worker thus can have only a job every other six months, if the worker is not resourceful enough to find a second company to hire him on the six-month period that he is supposed to out of job from the first. This has not given stability to anybody, but I  guess it has to be done in the face of what happened in the past.  Thus, I guess the better options these days will have to be the small and medium investments, where labor problem tend to be much less.
      Dropping your rubbish anywhere seems to be accepted…..
      >>  No, it is not accepted and is not acceptable, and I have always mulled over this because every Filipino I know does not like it. I, for example, have a bin in my car for my rubbish, or I have my pocket if I can’t find any bin. But, you are right, you see many who just don’t care, and it is frustrating.  I have dropped many a suggestion that there should be shame campaign about this, or somebody has to think of ways if the Singapore style can be done here, but already, I am discouraged by the latter as laws here are implemented in a very arbitrary manner.
      …..an organisation that puts its own interests before that of its members (parishioners).
      >>  That is a bit nasty. I am a Catholic, and I am thinking that you may be referring to bishops who have forgotten they are priests and have become more of a politician or a businessman or whatever.  I too am angry at these ones who I believe no longer see the difference between their elbow and their brain — who needs enemies if we have them.  But, I am neutral to the RH, but I am strongly opposed to contraceptive for various reasons which are both religious and secular.
      Many investors are watching the RH bill.
      >>  Cannot do anything about this, most investments are based on what will impact the P&L statement at the end of the day.  Understandably, the promised USD400 miliion Millenium Fund for the Philippines is tied to the passage of the RH Bill.  There is no question there is a need for family planning, so families can have a size that they could actually manage well.  While this can be taken as purely an economic issue, unfortunately, contraceptives cuts through our convictions that there are critically negative moral and sociological consequences that cannot be ignored.  While we cannot impose our opinion in a pluralistic society, we also cannot just stand by, we have to shout as loud as we can because many will not give it even a thought.  For example, we believe NFP can be as effective as contraceptives.  There is an on-going program in Tondo that can show success, but media keeps on saying it is not an interesting story.  British Medical Assoc reported the successes of NFP in Calcutta, but BBC simply ignored it when it is normally this prestigious organization they run to for medical expertise.  So, who is imposing something on who?  In any case, it is now up to the majority to decide what is best for RH, I think we have done enough to voice our opinion, and my conscience should now not make feel guilty I have not done anything.

  • http://pulse.yahoo.com/_H3XXQXBVPVUIAWR75IWTLAOTVE Pacific Dragon

    Ramon!! You are so so RIGHT.  I have been in the US for 18 years and came back here as an investor!!!  The question is. ….. What are you doing as a journalist!!!!??????  You should be president!!!!!  Contact me. Will work for you for free. 

  • Anonymous

    nuclear energy meron tayo niyan kaso tinakot ang tao ng media at gobyerno, na dahil galing kay marcos ay masama at dangerous. ang nangyari black outs at sobrang mahal ng kuryente. halos malumpo ang economia, naging paurong , walang asenso, dahil napakabigat ng utility cost.  kung delikado ang nuclear, bakit sa fukushima ng meltdown na at lahat pero 2 lang ang direktang namatay sa meltdown. 

  • http://twitter.com/jonting Johnny Ting

    continue mining and cutting trees and you will see waves much higher than coconut trees Mon

  • http://twitter.com/jonting Johnny Ting

    continue mining and cutting trees and you will see waves much higher than coconut trees Mon

  • http://pulse.yahoo.com/_5STEU22AD7YRHQSB6RE56ZDSYA J

    Aray!
    You point out the problem. Any solution from you Manong Ramon?
    Would you want Marcos rise from its refrigerated crypt and redeem himself?
    My POV is that the gov’t leaders must be able to succeed (and I wish and pray they will) on what is going on to reduce if not eliminate corruption. If people see results, not one, not two but very serious results, they will follow the law. There will be loopholes still but much of it would become much smaller and few. The people then have to see to it the next leader would stand-by the same gain.
    I would like to see a police force that has integrity that its crime investigation reports are so true and accurate that even the court is unable to question. I would like to see an army that has more engineers than scout rangers fighting to help build the countryside. I would like to see farm to market roads built according to specs.. To see end of political dynasties and many others.
    If we have a good govt people (except maybe those of criminal minds) will follow. It is an instinct. If you havn’t noticed 99% of OFW’s (I was one of them too) follow the law of where they are anywhere in the world. That’s because they see gov’t’s that is serious. Imagine what 99% of 100M filipinos can do if it has trust on the gov’t.
     

  • Anonymous

    Mismong Pilipino nga dumadaan sa butas ng karayom (may kalawang pa) sa pag-apply ng mga business permits, building permits, etc. Ok lang ang mga yan dahil mga requirements yan kaso mo eh bawat makahawak ng mga papel mo ay dapat may grasa. Kung gusto mong magpakatuwid at idaan sa normal na proseso eh aamagin naman yung mga papel mo! Kaya kawawa yung mga maliliit na mga investors o mga nagsisimula pa lamang sa kanilang business kasi yung maliit na magiging profit nila eh halos napunta na sa “grease funds”.

  • http://www.facebook.com/people/Felimon-Soria/1550111151 Felimon Soria

    Yes indeed Mr. Tulfo. Who would like to invest in the country? I was about to open my business but to my surprise, I was required to complete about 16 forms asking me everything under the sun. Not only that. Every desk you go to, you have to give a bribe. In the USA for instance. To get a license for a business, all you have to do is fill a form, write a check for the necessary fees and you will get your license in a few days. Of course you have to get a permit from the fire department to be sure that the building is not a fire trap and it does not even last an hour for the inspection if the building is OK 

  • Anonymous

    INVEST in the Philippines, we have cheap, talented labor, bleeding edge technology and business opportunities. Here’s one:
    http://www.youtube  .  com/watch?v=3iI9Cv6SRK4

  • http://pulse.yahoo.com/_W6H5DZKUQTUASP4S6CGTK7B3E4 kevin

    NO way to invest in the Philippines……

  • http://www.facebook.com/people/Jose-Hernani-Parco/100000334088180 Jose Hernani Parco

    yes Sir, we have the most expensive electricity rates and sooner or later we will all be back to the dark ages as most of the populace cannot afford such overpriced essentials! the present admn is not doing anything to address this issue because all they want is to collect a lot of taxes specially on the oil based products. and without spending the collected taxes for social requirements, it makes them look good. because after audit they can show to the world (mind you!) that they have surplus of govt. funds! and this is all what they like, to just look good on papers of course, and advertise and flaunt to the “kano” specially to the great black (no pun intended, no offence made!) father in the white house, 1600 pennsylvania avenue, waashington d.c.,

    • http://pulse.yahoo.com/_K2RI3LJVGNNED3XPMG7HVMIIO4 Herbert

      You forgot that Aquinos/Cojuancos and the Lopezes are best of friends.

  • Anonymous

    We have one of the highest power rates in the world; so much of the investors’ expenses will be for the payment of electric bills.

    Is it time to have a nuclear plant? They told me if we have one NP the power rates per month per household is P20.00.

    and then we can sell our power to other countries.

    do you think MERALCO will agree to this? not in a million years.

    • Anonymous

      Only 20 pesos? Wow ! Then what are we waiting for? Lets go Nuclear ! I think the only group opposing this is  Meralco because they would lose profit. The media should stop scaring people about going nuclear. Let us not mind the politicos that squabble and use the nuclear issue to prep their reputations. Its about time we consumers think of our own welfare and do something about it for ourselves. Really? 20 pesos? Lets go !

      • http://twitter.com/riccisan ricci santiago

        totoo yan. nuclear power is a sign of progress.
        Meralco lang naman ang ayaw, kasi meron sila kalaban. Monopoly ba

  • Andy Davis

    Duplicate

  • Andy Davis

    This article is evidence enough of why foreigners don’t invest in the Philippines.  No consultation or interview with any foreigner about their motivation, or lack of, for investing here.  No interest in going to the source (the investor) and actually asking them what problems exist.  

    Stagnant bureaucracy, corruption, bribery and cronyism are a major problem – but such problems do also exist in other Asian countries that do still receive high foreign investments.  It is a major problem here, but the Philippines is not unique in having that problem.

    Typhoons impact upon countries like Taiwan, Vietnam and China.  There’s no shortage of foreign investment capital flooding into those nations.  To think that the inclement weather is a barrier to investment is naivety of the highest order. 

    South Korea remains at threat from major conflict, and yet it is an economic powerhouse due to investment. Laos, Vietnam and Cambodia are poverty stricken also, but investment in those countries now far exceeds that coming to the Philippines. None of these countries has the level of spoken English language, higher education rates or potential accessibility enjoyed by the Philippines. The problem that exists is of mindset, stubborn attitude and prideful resistance to seek advice and make changes as a result of that.

    The difference, in my experience as a foreigner living here in Manila, is that the Philippines doesn’t care to engage with and listen to foreigners, to take advice and consultation from them; or to care about external perspectives.

    Mr Tulfo writes an article about foreign motivation for investment here, but does so from his own perspectives as a Filipino, without any sign of seeking first-hand evidence from the true source – the foreigner.  This is a pattern that is replicated throughout trade, industry and tourism in the Philippines and, in my experience, a major cause for foreign frustration and consequent inertia with willingness to invest here.

    • Anonymous

      I hope all concerned will listen to you. The stubborn and rock-hard predisposition to cling to old ways stand in the way to progress for the Philippines. The inability to set up rational rules and then to follow them consistently is what makes our business environment unpredictable and therefore unattractive. True transparency means that other people could predict what we will do when confronted by a situation because the announced rules for governing them are being followed.

  • antonioluna

    i agree with tulfo on some foreigners will not invest in pinas but he failed to make a distinction, it is only those straight and good investors because they don’t want corruption and they are environment friendly.
    big 3 oil companies are the examples of greedy foreign owned corporation that capitalize in our corrupt bureaucracy, the arithmetic is simple instead of paying  10 million pesos in tax is it cheaper to pay 2 million pesos to a corrupt official who will later clear their records, our rivers also become their dumping sites of waste materials.

  • http://pulse.yahoo.com/_2BCV2YTRFVA3YOVMAN2A4RFHBM markx

    Mr. Tulfo forgot to mention one big mother reason: this country was ravaged by the arroyo’s and her cohorts!

  • http://twitter.com/overseerTD SLZ NDS

    in adding so much overhead cost not related to producing actual products or services, that is not a good sign of PROFITABILITY for prospect companies that would like to invest here. only politicians and their underlings just benefit, but not the constituents. keep this up and we’ll lose investors to other competitive and investor-friendly countries. at the end of the day, or at the end of the fiscal year the question is: did they (investors) invest? or where’s the money?

    if you really want this country to be really, really, really be investor-attractive, then they (you know who you are) should keep those costs down.  and if those investors does invest, please do your job properly and prove to them (the investors) that you’re worth their time and money.

  • DU1VHY Jojo Vicencio

    I totally agree with you about the Philippines not being an investor/business friendly country. The corruption runs deep into the Barangay level. And those in the SK are learning too. Going through the bureaucracy is like doing the process the first time. Consistency and fairness. Ano ba sa atin dyan? Yung for the boys? Are refrains from the mouths of low level functionaries. We are doomed.

  • http://pulse.yahoo.com/_K2RI3LJVGNNED3XPMG7HVMIIO4 Herbert

    Mr. Tulfo forgot the commies who also bled dry businesses. Actually, investors are paying taxes thrice, 1st to the government, 2nd to the government officials/employees, 3rd to the commies.

  • Anonymous

    sinabi mo pa!

  • http://pulse.yahoo.com/_EFCEZXSRJMTMLISDT646J4MEYY omar

    paano ba namang mag  ininvest sa pilipinas eh walang safety and security ang mga investors, puro pangingikil ang ginagawa ng mga pulitiko, tapos papasukan pa ng mga unyon  na ang ginawa lang ay mangolekta ng pera sa mga mangagawa.

  • Anonymous

    And they will also have to contend with AC-DC writers like Tulfo.

  • http://profiles.google.com/mangromy mang romy

    i agree with everything u said mr mon. we already know that as a matter of fact.
    but what we should do, i think,  is to bring back the lost dignity we had. we have been trampled by the oligarchy of the arroyos, marcoses, lopezes, cojuangcos and others. they suck in blood of our country and spit money for their own use. they control big businesses, large utilities that are basically the needs of the common masa. when will we ever wake up as a nation?thank God we have manny pacquiao, chamsey supsup, apl.de.ap, charice, ariel pineda, lea salonga to mention a few, that really standout to the world that we are pinoy, we are proud to be filipinos.

  • http://profiles.google.com/mangromy mang romy

    i agree with everything u said mr mon. we already know that as a matter of fact.
    but what we should do, i think,  is to bring back the lost dignity we had. we have been trampled by the oligarchy of the arroyos, marcoses, lopezes, cojuangcos and others. they suck in blood of our country and spit money for their own use. they control big businesses, large utilities that are basically the needs of the common masa. when will we ever wake up as a nation?thank God we have manny pacquiao, chamsey supsup, apl.de.ap, charice, ariel pineda, lea salonga to mention a few, that really standout to the world that we are pinoy, we are proud to be filipinos.

  • http://twitter.com/judefawley Jude Fawley

    This country is stock in Feudalism while the world has changed rapidly.

  • Anonymous

    alienpatriot
    If you are interested in another reply to your post, I replied.  I just don’t know why it didn’t go under your post when I am sure I push the reply button.  My reply is somewhere in this combox, if you are interested.  Thanks.

    • alienpatriot

      Thanks Karby.
      Even if we disagree on some issues, you tend to be polite in your argument and I respect your views as honestly held.

  • Anonymous

    alienpatriot
    Well, that is what democracy is for, a marketplace of ideas, and hopefully, the best idea is the one chosen.  In any case, good luck to your business here, and hopefully, you can make this, sometimes miserable, sometimes paradise, but basically third-world, place at the edge of the Pacific Ocean your second home. Thanks.

    • alienpatriot

      I can see the third world out of my window. I meet the poor as I walk around. They say “Hi Joe” I have stopped saying “I am not American” because it seems pointless. Clearly I am not Pinoiy by birth. I do not live like them. I visit them but can go home at night. Yes, I do want to change the lives of the poor but, shared across a whole city or even a single barangay, my money is not nearly enough to make a difference. Instead, all I can do is try to get their children educated and better hospital treatment. Let us hope that whatever prevails in the debates that we are engaged in, that the position of those with little education or health care is put first.

  • Anonymous

    alienpatriot
    You are really a newcomer as the whole thing assaults you, but we need people like you to remind us that we should not grow immune to the sight of poverty all around.  Yup, education and health first for the poor. But, don’t worry, they are hearing you, staffs of senators and congressmen go through all the comboxes of major media outlets daily, but I don’t know how they filter them down to make sense of all the varying opinions.

  • Anonymous

    alienpatriot
    I read your post again. Man, be careful.  I hate to say this, but don’t be that charitable as you could be spoiling them, and you might end up losing your shirt.  There are con-artists here, and you are opening yourself to their set-up.  I hope you go to these places with Filipino friend/s, who I am sure you selected already.  I can sense you have been around, but there is no harm in being prudent.  Yes, I know we wish we can help them all, but we simply can’t.  So, take it easy, man.

    • alienpatriot

      Thanks. I visit friends mainly – people whom I know. I appreciate your concern.

  • http://pulse.yahoo.com/_IGBSHQLXDTGWG6N5B6HJRUBBDQ mon

    In the United Sates, one can form a company by filing articles online. In 5-minutes, a company is given birth and employees are ready to be hired.  I set up a corporation in the Philippines four years ago and the first stumbling block is the SEC’s deliberately corrupt protocols which took thirty-days of wasted time. Business applicants are forced to wait for paperwork to come down so they can begin their operations. The initial capital we brought in was taxed which means the government taxed the working capital before we can deploy it to work.  

    There is an inherent flaw in the system and only our people can fix these problems. My business partners got discouraged and decided to invest somewhere else. We cannot just be critical of our broken system, let’s try to make it better. We can attract capital but let’s make it easy and attractive for money to come in.  

    We live in a competitive world, we must provide the edge so we are pursued instead of shunned by the entrepreneurs. Let’s give the world a reason to seek the Philippines instead of skipping it for other friendlier environment. We cannot fix this humongous problem, we can start with our own immediate world that we can personally influence.

    RB

  • http://www.facebook.com/people/Brando-Pascual/100002132017262 Brando Pascual

    Technologies, like nuclear power plants, if they don’t have safety features and due to human errors endanger the lives of the people working on them, so with those in the immediate vicinity.  Even planes, car, cable cars, ships and many more crash because of these factors.  These are the reasons why some Filipinos and politicians have cited for us not to establish nuclear power plant in the country which is why our electric bills is the highest in Asia. It is just like when I was young. People said they would not use the gas stove as its LPG tank may explode if they erred in operating it.  So they remained using the kahoy-gatong system.  They were very old already when they shifted to gas stove, when their kids were already in high school.  But I am convinced, these anti-nuclear power plant people are opposed to the technology because they are anti-Marcos.  Remember it was Marcos idea that the Bataan Nuclear Power Plant was built but was mothballed by the Aquino government because of their hatred to the man.  The Marcos plan was to build also power plants in several other areas in the country so that we can support the power requirements of a growing economy. 

    We are a nation of balasubas, mandurugas, maruming kapaligiran, walang disiplina, magulo, at marami pang ibang dahilan, that is why foreigners don’t choose our country as a good site for investment. Worst, they are afraid their contract with their counterparts here’ be it government or private, would be cancelled because of new state policies.  

    All these make foreign investors not interested in us.

  • Anonymous

    We should not wonder why most of the foreigners are not investing in Philippines because it is not viable for them as they knew for the facts that many defects (corruption, high cost of doing business etc..)  in the Philippines system. Much worst for the Filipino businessmen, who are used to do business in connivance with political leaders and stashed away their profit and hide their assets abroad. It is so obvious that this kind of Filipino culture will perpetuate the Filipinos in poverty throughout eternity. 

  • Anonymous

    As long as we have politicians who are only proactive for the next election, the country will not achieve real progress. Those SOBs only think of how they would perform on their next political endeavor and don’t really focus on doing the right thing in their present position.

  • enrico custodio

    as much as i do not like China, sad to say the Phil government must follow what the Chinese government is doing.          many foreign multinationals are setting up businesses in China which led to China becoming the top manufacturer of almost everything from electronics to clothings, etc.         just talking will not help, the Phil must start changing their policies towards investors.       GISING PINOY !       KULELAT KA NA SA ASIA !

  • Anonymous

    PNoy should talk to African presidents. They know better. 

    Wait, I can see those precious oil and metals of the Philippines. PNoy will just let his country exploited like the diamonds of Africa.

  • Anonymous

    Never mind foreign investors, even to us locals it is not business friendly. 

  • Anonymous

    Look like the Philippine gov’t is getting big bucks in your electricity and oil consumption. Wonder why they are too expensive? Your Philippine government is a vampire.

    • Anonymous

      Pnoy traveled is wasting of money instead use it for for putting HOPIA factory. Pnoy don’t travel anymore I hate your attitude extravanza.

  • Anonymous

    Look like the rich in the Philippines and PH government is working like a gang. Who would like to put up a business wherein you will compete with these gangsters?

  • Anonymous

    Foreign investors will not invest in the Philippines. The country is infested with Mafia like businesses. The Filpino businessmen and the government are the Mafia.

    They just kill the foreign investors, not physical but by economic.

  • http://pulse.yahoo.com/_XO4C5N2KEQZ6D2Q7FGTWB4TCZ4 hammie

    In the Philippines, if you are a businessman you have to pay taxes twice. One for the government and one for the NPA especially if your business is in the countryside. If you do not pay the government you go to jail but if you do not pay the NPA they will burn anything that you possesses and you go to cemetery instead of jail to rest forever.

    • Anonymous

      Your government is a vampire while NPA is a bounty hunter.

  • Anonymous

    On the last topic, I agree with you, Mr. Tulfo. Buwis, socialist laws, corruption from public and private sector, dependence mentality of the people…etc.

  • http://pulse.yahoo.com/_ZWM7C4HJRSM7OADRJMOEVYOSMA Noel Rose

    why would you not invest in the philippines? blue chip companies have shifted their core biz to the most profitable venture – power generation.

  • Anonymous

    And you know what else is driving investors away?  Before you even set foot here, the government will already “NEGOTIATE” for their share.  ZTE?

  • Anonymous

    Getting barangay permit alone is enough reason for a businessman to vomit blood. 

  • Tony B

    Who would really want to invest their hard-earned money in the Philippines? No one – for all the reasons outlined below.

    If a European company wants to discover what it’s like to do business in The Philippines they only have to look at the experience of the German company that built NAIA  3. That experience isn’t going to make others rush to invest their money.

  • Guest

    All these comments make me wonder: “May tao pa ba sa Pilipinas? Bakit nandiyan pa kayo, kasama ni Tulfo?”

  • Anonymous

    Mr.
    Ramon Tulfo: If we have an effective justice system that is not
    protracted, tedious, and expensive, any citizen can easily resolve
    conflict that hampers a business environment and continue with business
    once fastly resolved, from labor disputes, to corruption issues, to
    unfair competition to predatory maneuvers of the greedy!!
     It
    is the very slow dispute resolution in our courts that will assure Us
    our place to the bottom of world ranking in economic development.  No thanks to the Philippine legal system.

  • Anonymous

    Amen to that.  Finally someone is speaking out.  You are correct. The place is rotten to the core.

  • Anonymous

    It’s not only that.  They will try to blackmail you with things like “well, you violated our environmental laws” we need compensation.  what about the labor laws?  things like 13th month pay whether u had a good year or not.  

  • http://twitter.com/Kabooom217 Akoito

    Tinatakot mo lang mga investors Mon. Kaya tayo napapasama at nilalait ng ibang bansa dahil kayo mismong manunulat masyado ninyong pinagsisigawan ang sarili nating kabulukan. Totoo, you are just exposing the truth (trabaho nyo yan eh) but if the truth will hurt your motherland and will drive the investors out, do you think it will do good to you and your country? Masasabitan ka ba ng medalya? Do you think hindi rin tayo maapektuhan bilang mga mamamayan kung walang mamumuhunan dito?

    Tapos pare pareho tayong magrereklamo pag walang trabaho at hirap sa buhay. Wag mo nang idamay ang gustong mamuhunan sa bansa Mon. Alam mo namang kailangan ng Pilipinas yan at hindi lang sa atin nangyayari yang mga sinabi mo kundi pati sa ibang bansa. Masyado mong sini single out ang sarili mong bayang tinubuan. Ang tirahin mo yung pamahalaan na parang anay na sumisira sa sarili nyang pamamahay at hindi yung bahay mismo!

    Pero kung kaya mong bigyan ng hanapbuhay ang mga walang trabaho dito sa bansa, sige pwede mong ipagsigawan yan sa buong mundo. Yung iba naman dyan nakikisawsaw pa at nakikipag piyesta! Mga tinamaan kayo ng Magaling! Imbes na makabuti sa bansa pinagsasasabi ninyo lalo nyo pang nilulugmok! Ang hindi nyo alam, ano mang pag sang ayon nyo sa artikulo patungkol dito ay bumabalik din sa katauhan natin dahil bahagi tayo ng sistema. Maraming magagandang bagay na hindi nyo nakikita kung bakit nananatili pa rin ang ibang mga foreign investors dito sa bansa. Yun ang halughugin ninyo at ikalat at hindi ang kabulukan dahil walang perpekto at matuwid na bansa saan mang lupalop ng planetang ito!

  • Anonymous

    Philippines can’t be rehabilitated, you would have to flatten the whole freaking thing and start over again.   The mentality of most filipinos is to try to get something for nothing especially if u are a foreigner.  They expect you to give them your hard earned money as if you owe them something.

    • Guest

      It’s sad but true. Yet, we are a very religious country. I don’t understand that.

    • Guest

      This is sad but true considering we are a very religious country. Are we taking our religious beliefs to heart, or just for show?

  • http://pulse.yahoo.com/_SFY4Q6R2K5YUZEXXIJO3TLG2UM Aspo resurrection

    i do not completely agree, number one…it is the CEO’s who are the most corrupt and they are connected to most of the politicians.They are the ones who lobbied to the Lolongs and they are the ones whom i supposed to blame…they spoiled the LOLONGS!!!…by the way, not even in the U.S can stop the lobbyist crooks!!!

  • Anonymous

    hindi natin kailangan ang mga foreigner investor, yung lang ofw $20B ang remittance yearly, kung hindi nga ba nakaabang lagi yung mga recipients sa pinas at diretso sa SM mall, ngayon nagagalit tayo bakit si SY ang pinakamayaman.  ang takbo ng pera sa pinas  ay ofw to money agent to kamag-anak to SM mall.
    kahit kalahati lang ng remittance $10b ang mapunta sa small scale business, maganda na yun. and dami pinoy sa US gustong mag-invest natatakot lang, kaya napupunta sa condo units, mas safe nga. tignan niyo ang mga high-rise sold out, walang nakatira, nasa US.

    • Anonymous

      tama ka bro.

  • http://pulse.yahoo.com/_F3OFL2CMHPTPOJ2LSRCKGWJWZ4 Montrealer

    Huling-huli mo sa dunggot ng ilong ang dahilan kung bakit walang dayuhang gustong mag-invest sa Pinas, Tulfo. Puro Kawatan ang dadaanan bago makapagumpisa ng negosyo ang kawawang dayuhan. Yan ang dapat trabahuhin ni PNoy ng todo. Ipakulong ang mga kawatan ng Gobyerno.

  • Anonymous

    kaliwat kanan ang korapsyon at pati na sa itaas, ibaba, harap at likod ay may korapsyon din kaya wala na susulingan ang imbestor……

  • Robert Procopio

    foreigners married to a filipinas whom they’ve picked up from hoar houses invests their money in the wrong places.  significant number of them got ripped off by the kamag anaks of these uneducated pinays and most of them have left this god forsaken country with just a single penny in their pocket.  had our prostitutes been educated, we should have been richer by now.  

    • alienpatriot

      Not all foreignors are married to prostitutes (I think you meant to use the word “whore”). Some of what yoiu say is true, however, I suspect. Nonetheless I do not believe that it applies to me or my fiancee. We are both hard-working tertiary-educated people.
      Today I turned up for a meeting with a potential partner. I was told that, as it was 11:30am, they would not see me. They went to lunch and I returned at 1pm as instructed. They did not appear until 1:30pm. What followed was quite disorganised and cented around my church attendance. My qualifications and abilities were not discussed. Would you invest in a company that was so disorganised and lacked any work ethic?

  • http://www.facebook.com/profile.php?id=682952651 Boaz Luvs Ruth

    you are not exactly on target there tulfo. 
    how about the foreign investors getting killed by their own competitors in the Philippines in broad daylight?
    the idiot who thinks paris hilton is in the Philippines for some attention with a monkey business.  i am not a fan of her but she is no airhead.  do not be fooled by her charm and beauty–she means business.

  • http://profiles.yahoo.com/u/6OF6HR3FCTYCK6FQEQHPJVAUZI b

    I am a foreigner who invested in Phils business.  I had employees doing a lot of monkey business instead of work.  Now I only work with my family and and robots

    • Tyopando

      What kind of business b? If you don’t mind……

    • http://pulse.yahoo.com/_NOE6TSX6VRX7A76ZTMF5AN5NDQ LEO

      I dont believe you. Filipinos are hard workers. You give them a job and they will do it properly. That is why Filipinos are in demand world-wide. We got skills, determination, motivation, resiliency and the capacity to withstand even the hardest conditions.The shipping industry wold-wide is manned mostly by Filipinos. We have lots of chefs, engineers, IT specialists, boxers, singers, Pool champions, chess champions,  you name it we have it. To cite just one,Manny Paquiao is a microcosm of what is a Filipino. Give him the opportunity to rise and he will shine. Don,t focus on the negatives.These negatives are also existing even in other countries.

  • Anonymous

    There are a lot of criminals in the Philippines. The only time most of these criminals are not stealing, or ripping some foreigner off is when they take time-off to go to Church and pray — even then I am not so sure they are not stealing.

  • http://pulse.yahoo.com/_QHGUJ3OJZAOIMBYYWTABNV2EEM Ai

    No country in the world got rich because of foreign investors. The business should start within our own populace to be driven by sooooo many factors….but primarily should start with high quality education. The new tiger economies started with better skilled labor and high-schooled engineers – agriculture, electronics and others. Unfortunately, our education is in deep crisis. Our excellent engineers are being used by other countries, esp. our neighbors – Malaysia, Thailand, Singapore, Vietnam, Taiwan & Korea. Believe me – the investments will not come here – these countries will get them.

  • http://pulse.yahoo.com/_NOE6TSX6VRX7A76ZTMF5AN5NDQ LEO

    Mon, ganitong klaseng balita ang rason kung bakit takot ang investors sa atin. Marami din naman na dayuhan ang nag-invest sa atin at hindi naman lahat ay naging biktima. Kung ganito tayo magbalita, lalong tinataboy natin ang mga investors.Yung title pa lang ng balita mo, parang binayaran ka ng mga kapit-bansa natin para itaboy ang mga investors. Sayang naman ang pinaghirapan ng ibang tao para makumbinsi ang mga negosyante na pumunta sa atin. Sa ibang bansa meron din nagyayari na korupsyon. Pero hindi nila binabalita na tulad nito.Hindi tayo nagiisa dyan. Nakakasira lang sa bansa ang ganitong balita. Tumulong naman tayo para baguhin ang imahe ng ating bansa. Dapat kung magbalita ka ng ganito, meron ka rin magandang suggestion kung paano malunasan ang ganitong problema. PS. Mon, Pilipino na lang ang ginamit ko na salita para di maintindihan ng mga dayuhan.Para sa yo ang mensaheng ito.

  • http://pulse.yahoo.com/_FW35X4G3QIXOAUVF7X2QP46AKE rene

    Mon, you might me talking about the past, and tanong lang with your honest opinion, with the present goverment, is there a chance to overcome all this discouring business climates for investors? Now as what we are watching closely how all out effort is applied i.e. transparancy thru press the all out effort of the goverment to eradicate CORRUPTION and an economic team was formed to work and find ways and means to lower the present rate of Electric Power.

  • Anonymous

    We have one of the highest power rates in the world because there is hardly any competition in the sector – its the same families – Aboitizes. Lopezes, et al. The same thing with our telecommunications. Here in Canada in the listing of the per minute rate in long distance charges to other countries – most countries charge a single digit cents so the few countries that charge more than 10 cents per minute really stand out and guess who is in that list. Aside from the cost, the service is really bad – whenever I call RP (0917 cell no.) , the line gets cut off every 12 minutes or so WITHOUT FAIL – its as if somebody had programmed it to do so in order to make as much money as they can from connection fees. Totally outrageous!!! When talk about opening these sectors are brought up – everybody always becomes nationalistic and the usual left wingers and unreconstucted communists lap it up. However, if you look at who benefits the most, its the very few families that control these companies. Meanwhile, the whole of the country gets screwed. The threat that people will lose employment is pure hogwash – after all, these foreign companies will not mass migrate their citizens to the country – and even if they do, who would really wan to go?

    Don’t even get me started on the corruption thing.

  • http://pulse.yahoo.com/_FAZCFFMOI2ZQP6MHHJGY545KYE Diosdado

    Here we go again.  I think it is good to criticize ourselves so that we can learn and hopefully change as a people.  It is very well-known that we Filipinos are very religious and yet not righteous.  The kind of religiosity that we have does not translate into a just, honest and dependable people.  You can be sure most of those corrupt politicians, businessmen and even ordinary people can be seen in the churches.  They are an avid patron of Santo Nino.  The predominant religion in this country has simply failed to instruct righteousness on the people. 

    • alienpatriot

      The dominant religion has become focussed more on its own power than the practicalities of what Jesus represented. It is a sad state of affairs. As someone who is not Pinoy by birth, it is not for me to judge pinoys in general. What disdado says here is true of many. For most it is a case of Pwede na. Forgiveness is fine but it makes no sense unless those we are forgiving are actually sorry for what they did. I suspect that in most cases they are only sorry to be caught.
      I do not believe that Pinoys are more evil than the citizens of other countries. They look to the RC church in the hope of seeing good role models and they see role models in hypocrisy instead. The problem will never be resolved until the RC church loses some of its power here in the Philippines.

  • Anonymous

    :Why foreigners don’t invest in Philippines”….

    You are wrong Mr. Tulfo. Foreigners invest in the Philippines. They are what we call silent investors.
    They are in the manufacturing business, business of producing babies. And their investment reap good results. They are movie investors.
    Look at fruits of no capital: :Ann Curtis, Da Rossi, Derek Ramsey, Elizabeth Ramsey, Redford White, Black Jack etc etc etc.
    That is what we call long term investment.

  • http://pulse.yahoo.com/_K43CPSNQVAM3664UYNFUBXTOHM Nahhhhh

    Simple, if I as an INVESTOR have to give controlling interest and majority ownership in my business for the priviledge of having to PAY all the bribes to ‘officials’..their SOP then forget it…simple.  Cannot even OWN the land.  Start with LAND REFORM first and then BUSINESS OWNERSHIP reform then your going to see INVESTMENTS OF CASH AND CAPITAL GET SHIPPED IN..Really its that simple.

  • http://pulse.yahoo.com/_BDF54KNEQR7METIUZZI63PB7HA Mauro Magistrado

    You just hit the nail right on its head, Mr. Tulfo!  You just enumerated the causes of why foreign investors shies from investing in the Philippines.  What is the common denominator to all these things including the very tragic experiences of our young women whom our government helped to export as maids to these depraved, sex-starved countries in the Middle East including Singapore?  It is our government’s weakness, incompetence, lack of foresight and screwy attitudes of most public officials who want to make money fast. I was still in college in 1952 when even Japan envied the Philippines for being very rich in natural resources—practically all metals and minerals needed for industrialization.  What did the Philippine government do—nothing.  For fast money, the Phil. government instead of starting small to jump-start true industrialization helped the rich Filipinos exploit our rich mineral resources and export them as raw ores although we were much in the position to process them, an example of which is the old NEC’s disapproval of Marinduque Mining’s application to produce copper metals in Iligan City for MIMAI’s copper ores mined in Samar and Sipalay, Negros Occidental—feed back—10 million pesos bribery by a Japanese interest.  I assisted  a U.N. consultant to use our coking coal resources to put up a blast furnace to produce pig iron and steel in early sixties and the government disapproved.  Later I’ll write a book about our government failures to do something for the good of the Filipino people which include my personal technical solutions to the Mount Pinatubo lahar problems that if the government only heeded my recommendation which required only half a billion pesos, there would not have been a lahar flowing and overflowing the Pasig-Potrero river that inundated many areas down-slope.  The government preferred then to spend an outlay of over 35 billion pesos, because according to a ranking Malacanang official at the time half of the budgetary outlay for Mount Pinatubo goes to the pockets of some public officials.  That’s the fault of the Filipino electorate to put into high government elective offices people who are only popular and rich but without brains and bereft of foresight for the general welfare and well-being.

    • http://pulse.yahoo.com/_WFD4OU7I235BHBVNNJUMWEITBA levi

      so the bottom line is that most pilipinos are tanga. coz they vote for popularity. why. coz most people dont read books of wisdom. they read gossip columns, entertainment, and the likes. and most in the government is corrupt.

      so what do u expect.pwede manalo sa paseksihan kasi yan ang bentaha ng pinoy.

      • alienpatriot

        OK. The bottom line talaga is that lack of education and pwede na mentaliy are hurting the country. What interests me is to what extent a more educated electorate would deal with the latter problem. educated people are less likely to just accept things without question. It has to help … but how much?

  • http://pulse.yahoo.com/_SBG72AYCZX2P6SE23262I2GNBQ fightforphilippines

    yes, you hit the bullseye, we simply can not compete because we have one of the highest power rates in world. bzns PNL will lag behind competitors due to high chunk of expense in power. in many companies like PAL, mgt resort to terminating experienced & skilled labour in favour of neophytes to cut wage costs to counter power expenses but this is grossly not enough and even drives unemployment high. but you missed the rootcause to this which is the onerous govt taxation on oil products that drives the energy costs skyhigh. compare the costs of oil products with others and you will see huge difference. the govt is really sucking the profits of investors. another is that the indebtedness of the Napocor due to graft by its administrators adds up to the higher component in power rates. so, how can we compete when it is govt graft that kills businesses???

  • http://pulse.yahoo.com/_22PRRPV4XKOOIC5TBS2ZLT7PZQ Tirador Ngbuwaya

    You are right Mr. Tulfo, potential investors who plan to set up companies in the Philippines will have to deal with the little tyrants in the local government level. President Noynoy and DILG secretary Jesse Robredo have NOT yet touched these local government units since they assumed power in year 2010. Intact pa rin po ang mga buwayas dyan sa local govt level lalo na sa malalayong probinsya. Papanong papasok ang mga investors?  Many  elected  local govt officials and appointed local officials like building officials and municipal/city engineers see  the potential investors as source of bribe money  instead of source of livelihood for their constituents. President Noynoy is NOT yet aware of the following permits which an investor who is planning to set up a manufacturing plant will have to GET first before constructing the plant : 1. Business permit from mayor   2.  Excavation permit   3. Sanitary permit  4. Electrical permit                5. Mechanical permit  6. Building permit  7. Zoning permit. 8. Fire safety permit from BFP. The firemen will require the investor to buy sub standard fire extiguishers  from them before issuing permit. Many corrupt mayors and Building officials are demanding BRIBES before issuing the above 1 to 7 permits. They can always find defects in submitted plans and design calculations. Sa bandang huli, ang gusto lang pala ay SUHOL NA KWARTA !  I had been suggesting and I am suggesting now that to eliminate extortion activities of local officials, ALL the above permits should be abolished. The role of local officials is to help the police in maintaining a safe and peaceful environment for business to thrive in their areas of jurisdiction. KULANG  PA  YANG PERMITS  NA YAN!  After dealing with these corrupt local officials, the investor will have to get ECC or CNC anti-pollution permits from DENR  and permit to operate from DOLE if he is installing a pressure vessel like boiler.  NOW, after knowing the above requirements, SINO PANG INVESTOR ang gustong magnegosyo sa Pilipinas? SINO ??

    • alienpatriot

      I was explaining to another foreignor in an email the other day what a barangay is. I pointed out that it had its own government and police force. He thought I was joking. Unfortunately I was not. This is a massively over-governed country. Governing and security forces make up a very high proportion of employment here. When I enter a shop, the shop assistants often outnumber customers. None of the shop assitants are paid much so the business can afford to have more than they need. One employee opens the door for customers, normally a security guard. Where else does this apply? The same attitude applies to local Government. There are many employees whose role is unclear. They seem to do little more than collect bribes. Can jobs be created for these people so that their employment has a purpose? There are a shortage of public bins. Can the pointless employees be asked to do this? The footpath is broken but is never fixed. The streets look awful. Why can’t these be fixed for safety reasons at least? The only cost is concrete. The staff are already there.



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