FDI AND THE JEEPNEY

Let's take the subject of the jeepney modernization program of the government in the context of Foreign Direct Investments in the country as a subject matter that would resolve partly our FDI low problem in the country.

As an opinion, the recent media information regarding the jeepney modernization is a positive move for the government to bringing mass transportation system in the country to a new level, that is to have zero emmission, and compliant to international standards. The matter is not to be argued for, but the succeeding factors should be considered as advantageous to our situation.

The FDI problem of the country can be related to the jeepney modernization by making this program a manufacturing foothold for the country instead of realizing it for the advantage of foreign companies. It will be a program that will lead FDI here and earn more by gaining technology transfer in the automaking industry in the country through partnerships with a rider for technology transfer. That even though, our inquisitive and curious government should adopt a policy of earning technologies brought about by foreign investors to the country and not only sleep on the products being manufactured and not learning them.

By using the program to the subject of FDI is something that it will move increased investment for our advantage.

It is of information that in first few months, the government will subsidize almost 27 billion pesos for the program. If that is true, such an amount can be directed in that fashion and initialize the concept of car manufacturing in the country and realize FDI. It is also of information that such amount in few years more will result to the programs amount of 250 billion pesos (the varying information is inaccurate in many sources),estimated for this program, and amount satisfactory enough to mobilize car manufacturing at this instant.

Why not? 

The FDI problem shows that it is a self initiative actually, and things will change for our favor if the government is serious and sensitive enough of using people's money for the benefit of the the common good.

The sweet idea of the self-car manufacturing in the country has multiple advantages, that as cited above, its enormous contribution of the economy once realized will solve the ills of our delayed growth and low in FDIs.

This article is just one part of the FDIs that we need right now, and the jeepney modernization program is actually an opportunity.

"Last June, the Department of Finance estimated that the program would cost P417 billion for the next five years, including the P8-billion subsidy for the purchase of the vehicle and P3.9 billion for the Office of Transport Cooperatives."

---PTV NEWS

Other related readings:

Why FDIs are low in the Philippines

Use CARS fund to subsidize purchase of modernized jeepneys: group

Other super Pilipinas related blogs:

jEEPNEY AND TECHNOLOGY TRANSFERS

Transfer of Technology to China:: A Scandinavian and European Perspective

SETTING A CHINA STANDARD

THE LOW FDIs in THE PHILIPPINES

This is to express opinion on the article of the inquirer which shows the negativity of the investments and business atmospheres in the Philippines that our policies, regulations, are found contrary to the development  of the business sector and deprives growth for the economy of the country.

There are a number of complaints of investors regarding our bureaucracy and policies that these things should be addressed in a manner that it should favorable and not opposed to our current stance but be remedial to change the perceptions of investors considering the country.

It is shown that Foreign investors are shunned by the prohibition of land ownership in the Philippines through the constitution, and this makes one of the biggest reason of impediment that makes the Philippines short of investors. 

One of the hardest reason about the issue of foreign land ownership in the country is based on history.  Under our colonial eras, where we have subjugated to diminution of our rights, and those long years of struggle and sad experiences are things that leads us to this issue that foreign land ownership is far to be a reality in the Philippines. 

There were comments that land ownership in the country should be encouraged by the government, or be addressed for amendment in congress, but they cannot be settled by by the reason of history. The possibility is hard and difficult to overcome, and refocusing our energies in FDIs in other attractive means unique with other countries that will offset land ownership controversy.

On the other hand, we can circumvent the situation by introducing means that will offset the problems of FDIs. Incentives, tax holidays, preferences, were things initiated but something more in our force must be taken to make the program more relevant and attractive. We should also built logistic infrastructures that would entice and reconsider investments, and these highways, ports, airports, electrification, and communications shall 
be strong enough that the standards are available.

The other means to resolve the problem of FDIs can be addressed on the matter of Moratorium of the law for some lock in period, says 50 years, and on, to recur the land back to lease. 

Regard to as a mean suggestion, we can use the methods to allay the fears of foreign investors and lend them security over there investments through that land ownership that may resolve something about the situation.

Why FDIs are low in the Philippines

FOXCON AND APPLE, NOT IN THEPHILIPPINES

It is a dream that Foxconn would come to the Philippines and manufacture Iphone and other Apple products, but yet, the news and the mulling of the possibility of putting up a plant in the country went drizzeld.

As we know, Foxconn employs about 1.2 million people in China, and the possibility of making the Philippines as the possible candidate for that manufacturing, is a high regard to solve employment and lessen poverty in the country. But what has turned out was the negative about such reports.

THE REFERENCE ARTICLE

The reason showed that upon their examination and study of the country, some factors arises contrary to the features and atmospheres that would make the manufacturing sector a favorable condition for FOXCONN or APPLE.  We do not need to enumerate and detail those reasons, but strong indicators are there that our economic policies and our behaviour towards business, trade, and commercial conditions do not show such approval.

We were not included as the NEXT FACTORY OF THE WORLD, candidate to be the next China, but rather, the more than 500 CEOs of manufacturers all over the world has not selected the country to be part of the MIGHTY FIVE.

The mighty Five is the MITI-V, which is the acronym of Malaysia, Indonesia, Thailand, India, and Vietnam as the next Factory of the world.

With that selection of the great fives to be next nations that will inherit the throne of China under the predictions of these more than 500 CEOs in concurrence, is already that mark that  sealed the fate of the Philippines, and the benchmark that investors, manufacturers make as guide in their plans and studies for investing abroad.

Where is that now, to make Apple come to the Philippines with our very strong labor demands and regulations that keep investors away.

We know  of us are unemployed in this country, and we need more manufacturing to give jobs under this sector, yet, we fail to address the concerns of investors that we invite. We are first quick to demand the regulations of our labor before we see the and meet the demands and requirements of investors that they may also thrive in our ambiance of commerce.

photo from inquirer

other readings on the miti v

RELATED READINGS, THE MITI V

CHINA AS 3RD TELCO PLAYER

The recent development about admitting China to be the 3rd TELCO player in the country must examined and to be thought carefully. 

First of all, we should only let Filipinos maintain superiority over strategic utility services in the country, while the intention is noble to give better and efficient service to our ailing communication condition in the country, still, the situation is not to be regarded as that simple. Some aspects of strategic and security matters that should be considered.

The video herein presented could have been already known in the halls of the government, and our leaders are fairly aware of it maybe, that its existence of such an information on the plans and intentions of China to do to its own citizens are things that gave us the hint on hold on to the proposal of giving China that opportunity.

If China can do it to their own people, simply, with their touch in the Philippines, could be a very easy hand and position to eaves drop information to our security and vital strategic situations internally.

We do not know of the hidden technology of China. Their character of espionage over the US technology and hacking is a big matter already that should forewarn the country over giving the franchise of Telco in the country.

There are other better and highly advanced countries that can do the job to serve our needs,  and this consideration is very likely.  The US, Japan, south Korea, or in the EU, are far more advanced and secured technologies that is foolproof.

Giving more dependence to China over our sensitive industries can be a serious concern for the government. It is enough on  trade and other bilateral relations via commerce, but putting them in this industry is not deemed perfect.

THE HOTTEST TOPIC IS THE" FACTORY OF THE WORLD"

If you may see, the supposed to be hottest topic in the country nowadays is the "Factory of the World" which is the heated discussions made over by some more than 500 chief executive officers and senior leaders at manufacturing companies throughout the world. These leaders has been talking on the table the budding rise of the MITI-V countries seen that will replace China in the coming years, as indication having them the character of a factory of the world is favored in them.

In that regard, the situation in the Philippines has become very different recently. First of all we were never mentioned in the discussion of the mighty five countries that these experts/leaders are talking about. The situation were obvious made by the loss of our FDIs which the country is not the choice of foreign investors because of very  strong reasons.

In short, our indicators points us to the opposite direction that the Philippines is not a worthy place for investment. If that so, why not make solution to the problem and make the turn around by introducing policies and rules and legislation that will reverse the situation. The job of the congress is to find means to enact laws that should make remedy, under the present and existing rules and regulations, amend, issue moratoriums that would guarantee FDIs inflow. 

When the congress can make a Tax Reform law, why not an Economic Reform Law that would cure the economic problems of the country?

It is understandable that we need National revenues made by the new tax reform law, but on the other hand, why not make revenues by not using or increasing tax rates for the country? It can be done by increasing our Tax base as the more positive means, and forego new tax systems that would further hurt the same size of tax base. Instead of going healthy and fat of this tax base, it will go malnourished.

The MITI-V issue coined by these 500 business leaders is not a joke when they've not included the Philippines in that pack. They are correct by not including the country in the grouping mainly because we don't have that x-factor.

Inside the ASEAN, there is a G-4 country?

It's a shame then if we can ever hear of that terminology, grouping by the effect of the mighty five opinion of economic leaders.

THE MITI-V

THE RISE OF THE MITI-V

The rise of the MITI-V and the fall of the Philippines?

Correctly, many indicators recently, and many times in the past, shows that we have been plagued by our loss of FDIs, and the farther closures of operating plants and investors in the country as reported in news and media outlets. Those were things that were so loud that made the country farther fall to our economic problems, that higher cost, poor performance of our currency, depleting  foreign currency reserve, and the rising BOPs due to peso fall.

While Malaysia, Indonesia, Thailand, India, and Vietnam are already on the rise to become the NEW CHINA , as the factory of the world, the Philippines is rolling down the drains with it business in drugs, corruption, senate and congressional hearings on impeachment cases, and still berating foreign nations of their pressure and intervention to our human rights and political affairs are things that do not make the economy.

All our neighbors in the regions are already bustling with more inputs of  marching foreign investors migrating to their soils, yet, here we are, busy  of going to change our constitution, going back to square one, with all accomplishments and advances on hold.

We must do the reverse. Let the congress find legislation that will address the increase of factories, local and foreign investors, to make business more conducive, favorable and interesting int he country. Demolish regulations unkind to businesses, neither suspend them for moratoriums until a level of wealth for the country is reached.

What is wrong with our country?

We are recently pressuring our Jeepney drivers/operators to modernize their utility vehicles, yet, we are going to import everything these vehicles and components by the use of our dollar reserves?

Jeepney modernization is one advocacy that should start car manufacturing in the country, and not a modernization for the profit of Japan economy. 

Manufacturing is a sign to become a factory of the world as conveyed by the character of China her superpower character.

THE RISE OF THE MITI-V

WE ARE NOT IN THE MIGHTY FIVE

Why there is a mighty five or the "MITI-V" is a wonder, for a selected group that soon to inherit the crown of China as the next manufacturing hub, factory of the world, these  countries which were grouped, is something upsetting for the governance and the people of this country being not selected based on indicators gathered by economic experts.

The pack of mighty five reflects our inefficient economic management with less emphasis on manufacturing.

Malaysia, Indonesia, Thailand, India, and Vietnam are packed together to gather the benefits of new powerful economies in the regions due to their appetite in manufacturing which the country refuses to enter into industrialization, that in this scenario, we are farther lost.

Unless we take the path of full manufacturing and make infrastructures favorable to it, our poverty program, and crime reductions will not be abated, much more farther will grow.

The economic experts who've coined the "MITI-V" has insulted our capacity, it is more or less a look down.

We cannot blame them, it is our makings that we have been very poor in technology that we always refuse car manufacturing. We self-admit that we cannot be into such industry by admission that we are not capable.

Something is very wrong, that congress should inquire the matter immediately.

THE MITI-V ARTICLE