Malaysian business leaders bullish on Philippines despite security issues

August 31, 2017

Malaysian business leaders are upbeat on investing in the Philippines despite security issues and other concerns, saying the country faces bright economic prospects , expanding market and a proposed peace pact with Muslim rebels in Mindanao.

Edward Ling, Malaysia Chamber of Commerce and Industries (MCCI) president, said businessmen are eyeing more investments in information technology, construction, energy, manufacturing, and retail.

“Everyone knows the Philippines is coming up,” Ling told a group of journalists Thursday. “The Philippines is so promising especially with the current leadership they have much confidence all over.”

Security problems, including Muslim and communist insurgencies, a lack of infrastructure and bureaucratic red tape and corruption have long been a concern of current and potential investors.

Ling said the government is dealing with those concerns and the volume of Malaysian investment and two-way trade can be considerably expanded.

Trade between Malaysia and the Philippines in 2015 reached $4.5 billion or about P218.8 billion, which is 3.6 percent of total foreign trade. Exports to Malaysia amounted to $1.2 billion or about P58.3 billion, while imports reached #3.4 billion or P165.3 billion.

Ling is optimistic the Duterte administration’s commitment to address corruption, law and order and to develop more infrastructure would usher in more foreign investments.

“Outsiders can see there is real political will. Confidence is in the air,” he said.

MCCI vice president Eric Yam said Malaysian investors continue to see the Philippines as a major investment hub.

“Of course you have Marawi, but we know these are temporary,” Yam said, noting that Mindanao “has a lot of room for growth.”

Yam believes once a Bangsamoro autonomous region is put in place, Mindanao will attract more foreign trade and investments.

Malaysia has helped forge peace between the Philippine government and the Moro Islamic Liberation Front, which led to the signing of a final peace agreement in 2014, ending more than four decades of Muslim rebellion in the southern Philippines.

The Philippine congress has yet to approve the Bangsamoro Basic Law, which aims to establish a more powerful autonomous region for minority Muslims in Southern Philippines.

“A lot of jobs and development could take place in line with the peace process,” Yam said. DMS