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Malaysian business leaders are highly upbeat on investing in the Philippines despite security issues and other concerns, saying the country faces bright economic prospects with its bullish economy, expanding market and a proposed peace pact with Muslim rebels that can help address law enforcement concerns in Mindanao.
Edward Ling, Malaysia Chamber of Commerce and Industries (MCCI) president, said Malaysian businessmen are eyeing more investments in the country, particularly on 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 in the Philippines.
However, Ling said the government is dealing with those concerns and the volume of Malaysian investment and two-way trade can be considerably expanded in all kinds of industries.
Trade between Malaysia and the Philippines in 2015 reached $4.5 billion or about P218.8 billion, which is 3.6 percent of the country’s 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 that 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.
Despite lingering concerns on security, specifically on Mindanao, MCCI vice president Eric Yam said Malaysian investors continue to see the Philippines as a major investment hub in the region.
“Of course you have Marawi, but we know these are temporary,” Yam said, noting that Mindanao “has a lot of room for growth.”
The Philippine military is currently working to eradicate the remnants of the ISIS-linked Maute group, which laid siege to Marawi City last May 23. Nearly 800 people, including 617 terrorists, have been killed in 101 days of fighting, while the military estimates that the remaining gunmen are holed up in a 500-square-meter area in the city.
Yam believes that once a Bangsamoro autonomous region is put in place, Mindanao will attract more foreign trade and investments.
“A lot of jobs and development could take place in line with the peace process,” he said.
Malaysia has brokered the peace process 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.
Congress has yet to approve the Bangsamoro Basic Law, which aims to establish a more powerful autonomous region for minority Muslims in southern Philippines. Its passage was stalled in 2015 when some MILF fighters got involved in a firefight with elite Philippine National Police (PNP) commandos hunting down Malaysian terrorist Zulkifli bin Hir, alias Marwan, in Mamasapano town.
The Malaysian chamber of commerce is among the first known to be established by an Association of South East Asisan Nations (ASEAN) member state in the Philippines, mirroring Malaysia’s optimistic business outlook in the country. Malaysia’s Minister of Trade Sri Mustapa bin Mohamed will officiate its launch in Manila on September 6. — BM, GMA News